Create and manage vesting schedule templates

Vesting schedules (VS) are created the same way for both restricted stock and for option grants. In Diligent Equity you can create templates for the company's most commonly-used VS, and customize them as you enter individual grants with non-standard vesting.

A VS in Diligent Equity is composed of multiple rows, with each increment of vesting on a separate row. As you build the new VS, Diligent Equity automatically adds a blank row after each line is completed, until 100% of the shares are vested.

• When you create a new template, you must enter the percentage of shares that will become vested.

• When you create a customized VS for an individual grant with non-standard vesting, you can type in the number of shares that will become vested on a specific date.

For the purposes of demonstration we will create VS templates under an existing option plan in the Options section.

View a vesting schedule

1. Go to the Securities section in the navigation sidebar, select Options and choose an option plan.

   For information on how to create an option plan, go to Create a stock option plan and plan share reserve.

2. Select Settings from the toolbar.

   The Option Plan Settings window opens.

3. Select the Vesting schedules tab.

   • A Standard (Default) VS is populated.

   • If the company's settings are different to the one provided, either create a New Schedule or modify the one provided by Diligent Equity.

Create a new template

1. Select + New Schedule.

2. The name New vesting template will be populated for the template, enter your own title here.

3. Leave the Use as default check box unchecked if this is not the default VS.

4. Complete the percentages and select the appropriate options for your VS.

   Continue to make as many VS templates as needed. Diligent Equity saves your selections and templates as you go along.

5. Select Close to save changes to your Option Plan Settings.

Modify an existing template

1. Select an existing template from the drop down menu.

2. Edit the name field if desired.

3. Change the percentages and timelines as needed. Diligent Equity will recalculate your percentages.

4. If it applies, enter the percentage of shares that will vest on an accelerated basis on a liquidation event.

5. Select Close to save changes to your Option Plan Settings.