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How is Unvested Shares defined in a legal contract?

• Unvested Shares means shares that have not yet vested or are subject to a right of repurchase in favor of . Seen in 415 SEC filings
• Unvested Shares means the number of shares of stock acquired upon exercise of the option which exceed the vested shares determined as of such date. Seen in 46 SEC filings
• Unvested Shares means for all purposes of the unvested share repurchase option with the same force and effect as the unvested shares immediately prior to the ownership change event. Seen in 27 SEC filings
• Unvested Shares means Shares that have not yet vested or are subject to a right of repurchase in favor of the . Seen in 27 SEC filings
• Unvested Shares means the total number of shares multiplied by the applicable percentage at the time the purchase option becomes exercisable by the [organization]. The applicable percentage is a specific rate that varies based on a set schedule. Seen in 25 SEC filings
• Unvested Shares means shares that have not yet vested according to the terms specified in a certain section of the agreement. Seen in 21 SEC filings

How is Unvested defined in a legal contract?

• Unvested means an award or part of an award that hasn’t been vested yet.
  Seen in 8 SEC filings.
• Unvested means restricted shares that haven’t been vested.
  Seen in 6 SEC filings.
• Unvested means employee shares that may need to be converted into deferred shares.
  Seen in 6 SEC filings.
• Unvested means that on a specific date for a Class A Unit, Management Incentive Unit or other Unit, said Unit hasn’t vested yet in accordance with the respective award agreement or other documents.
  Seen in 5 SEC filings.
• Unvested means an option that can’t yet be exercised.
  Seen in 5 SEC filings.
• Unvested means relating solely to the determination of the purchase price for call shares if the company decides to exercise a call due to terminating an employee’s employment for cause or the employee’s resignation without good reason. This shouldn’t limit any ownership, voting, or other rights of the employee with regards to the employee’s stock.
  Seen in 4 SEC filings.
• Unvested means any Class D Unit which hasn’t been vested.
  Seen in 3 SEC filings.

Note: pulled this data out of the SEC EDGAR Database of 500,000 records from the past 22 years of filings. We regularly update this page as new filings and definitions come in.

yourself to verify these results. We are always keen to point people to source documents.

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Which definition should you use?

🤔 has combined and improved the above descriptions to create market-standard 'Genie definitions' below, with guidance on which documents and which industry to use for each.

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Genie Definition 1

• Unvested Shares means shares not yet vested and subject to repurchase by [Organization].

Relevant Contract Types

• Employee Equity Plans
• Stock Option Agreements
• Shareholder Agreements
• Investment Agreements

Relevant Circumstances

• Establishment of employee equity incentive programs
• Granting of stock option plans to executives or other employees
• Upon making investments into a company receiving equity stakes
• Establishment of company shareholder agreements

Relevant Sectors

• Technology
• Finance
• Manufacturing
• Healthcare
• Retail

Genie Definition 1

Unvested means any award, shares or options not yet eligible for use or conversion.

Relevant Contract Types

• Employment Contract
• Shareholders Agreement
• Stock Option Agreement
• Profit-Sharing Agreement
• Real Estate Investment Agreement

Relevant Circumstances

• Employee compensation packages involving stock options or share grants
• Business partnerships where sharing of profits or assets is based on certain conditions
• Real estate investments where ownership or profit-sharing is subject to specific conditions

Relevant Sectors

• Technology Startups
• Real Estate
• Finance and Banking

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Genie Definition 2

• Unvested Shares means shares exceeding vested ones, acquired upon option exercise.

Relevant Contract Types

• Employee Stock Option Plans
• Stock Purchase Agreements

Relevant Circumstances

• Employee exercises their stock option grants
• Acquisition of a company where stocks are being purchased

Relevant Sectors

• Technology
• Real Estate
• Manufacturing

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Genie Definition 3

• Unvested Shares means shares by [Applicable Percentage], upon [Purchase Option] activation by [Organization].

Relevant Contract Types

• Investment Agreements
• Shareholder Agreements
• Stock Purchase Agreements

Relevant Circumstances

• Investments into a company where equity stakes are being received
• Interpreting shareholder agreements with complex vesting plans

Relevant Sectors

• Technology
• Manufacturing
• Finance

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