Vesting schedules are the company’s timelines that dictate when an employee(s) or participant(s) in the company’s financial arrangement gains ownership of certain assets, typically stock options, retirement account contributions, or other forms of compensation provided by the company… The company’s “Vesting Schedules” for “Assets,” will be issued to the employee(s) or participant(s) at the time the company grants the assets, as such:

•  Stock Options: The company’s stock vesting schedule is based on a five-year graded vesting schedule as such: Will provide 20 percent ownership after the first year, then 20 percent more each year until the employee gains full ownership after five years. If the employee leaves (resigns or is terminated) before five years have passed, he or she only gets to keep the percentage of stock that has been vested. The “Stock’s Vesting Time-Period” will commence at “IPO” providing that the employee has held the “Stock” for at least a year.
  The employee’s “Stock” also carries a “Term” and “Exercise Condition Policy” (“First Option” to “Buy-Back”) of ZE CAT, Inc. When an employee decides to exercise an option to sell, he or she must first give “Notice” to the company of the exercise option intent. Thereafter, the company must execute its option to “Buy Back” the Stock within “Seven Days” of an “Exercise Option Notice of Sell,” provided by the employee. After seven days, the employee has the “Right” to sell the Stock in the “Open Market.”
• Equity Stake: Each “Co-founder” will be issued .5% of “Dilutable Equity Stake” at the time of signing on for employment… The “Equity Stake’s Vesting Time-Period” is the same as the “Stock” above and will commence at “IPO” providing that the employee has held the “Equity Stake” for at least a year.
  The employee’s “Equity Stake” also carries a “Term” and “Exercise Condition Policy” (“First Option” to “Buy-Back”) of the company. When an employee decides to exercise an option to sell, he or she must first give “Notice” of “First Option” to the company of the exercise option intent. Thereafter, the company must execute its option to “Buy Back” the Equity Stake within “Seven Days” of an “Exercise Option Notice to Sell,” provided by the employee. After the seven days, the employee has the “Granted Right to Sell” the Equity Stake in the “Open Market.”
•  Incentive Stock Options’ Safe: At times, more often than not, the company will issue employees earned “Incentive Stock Options” (ISO) that will exceed the “IRS’ ISO $100k rule limit” per year. However, when this occurs, the company through its “Policies” and “Procedures,” will “Defer” paying out the ISO amount that exceeds $100k until the employee has a “cumulative year” of less than $100k and/or the company will exercise and execute the employees’ following options:
  
  1.  The company will issue an “Equal Amount of Employees’ ISO Overage” to the “Public Market,” and “Direct Deposit” the “Raised Funds” into the employees’ “Individual Retirement Account” (IRAs or 401k) accounts.
  2.  If the company’s employee seeks their “ISO’s Overage” for “Other Investment Purposes,” the company will “Issue a Check” for the ISO Overage Amount to the employee’s named “Investment Entity” vehicle with the employee as the “Beneficiary.”
  3. If the company’s employee chooses to access the “ISO’s Safe,” to “Activate Deferred ISOs,” the employee must first give “Notice” to the company as to the exercise option intent of the employee. Thereafter, the company must execute the optionee request within “Seven Days” of an “Exercise Option Notice.”
  4. Also, the company will “implement” a “Deferred Equity Grant Policy” (“HOP” or “Hold on Principal”) for the “Sole Purpose” of allowing employees to “Defer Equity Grants,” to allow any “Equity Grants” to “HOP” direct into “401(k)’s Retirement Accounts” and/or “529 College Saving Plans,” etc. The “HOP’s” plan will allow tax savings from “ISOs’ Overages” (long-term capital gains) and allow “Tax-Free Earnings” in “Qualified Higher Education Expenses.”

401(k): The company’s 401(k) vesting schedule is based on a five-year 2 phase “Graded” and “Cliff” vesting schedules as such: After the employee’s first year of employment, the company will provide 100% matching contribution (1st phase “Graded Vested”) to the amount contributed by the employee to his or her 401(k), up to 6% of the employee’s salary amount. The employee is required to maintain employment with the company for five years before the company’s contribution portion of their 401(k) has been fully vested (2nd phase “Cliff Vested”). This vesting schedule will “Renew” and “Repeat” every five years.

401(k) Clause’s Subsection: The “401(k) Clause’s Subsection” outlines the company’s “Terms and Conditions” attached to and hereof, the 2 phase “Vesting Schedules” (“Graded” and “Cliff”) timeline that dictates, “The 401(k) Agreement” between the company and its employees:

i. The 1st Phase Vesting Schedule (“Graded”) is the vesting schedule’s timeline that dictates when the employee’s 401(k) benefit becomes available and will commence after the employee has completed a full year of employment with the company.

• (1) If the date of the employee’s full year of employment falls on a weekday, the employee’s vesting option begins, and his or her salary amount can be applied that week to the 401(k)-contribution scheme as outlined.
• (2) If the date of the employee’s full year of employment falls on a weekend, the employee’s vesting option begins the payday before that weekend, and his or her salary amount can be applied that week to the 401(k)-contribution scheme as outlined.

ii. The 2nd Phase Vesting Schedule (“Cliff”) is the vesting schedule’s timeline that dictates when the employee’s 401(k) is fully vested (100%) and will commence after the employee has completed a full five years of employment with the company. The “Cliff’s” commencement timeframes will follow the outlined schedules above in 401(k) “Subsection i.”

iii. These “Vesting Schedules” will follow as such: Every “Five Years” the outlined “Vesting Schedules” will “Renew” and “Repeat” the “Cliff’s” requirements (in ii above). This will and does “Applies to all Employees.”

iv. If for any reason, other than what the company has outlined, the employee does not meet the requirements of the company’s 401(k) “Terms” and “Conditions (as stated above in 401(k) “Subsection i, ii” and here: resign for unjustifiable means or terminated for breaking the company’s “Rules” or “Policies”) the employee will have forfeited the company’s 401(k) contribution portion of the employee’s 401(k).

v. Other Reasons “that Will” Cause and Lead to an Employee’s “Termination:” Incompetence, including lack of productivity or poor quality of work. Not sharing information with the company or co-workers that is critical to the company’s goals or milestones including collaboration, early notification of errors or mistakes, etc. Insubordination and related issues such as dishonesty, not getting along with other employees, acting in an unjustifiable authoritarian manner, being condescending, or breaking company rules. Attendance issues, such as frequent absences or chronic tardiness. Theft or other Criminal Behavior including revealing trade secrets. Also, the company will at “NO TIME” tolerate any “Sexual Harassment,” “Bigotry” (in terms of race, religion, sexuality, political affiliation, or other ways), or “Racism” of any kind (of nationalities, ethnic, religious, or linguistic, etc.), on the job or in your private lives.