Double Trigger Acceleration
Definition
An acceleration provision requiring two events to trigger accelerated vesting: (1) a change of control (acquisition) AND (2) an involuntary termination of employment (usually within 12-24 months of the acquisition). Both triggers must occur for unvested equity to vest immediately.
Real-World Example
Your company is acquired. Trigger 1 is met. You continue working at the acquirer for 8 months, then are laid off. Trigger 2 is met. All your unvested equity immediately vests. If you had voluntarily resigned instead, trigger 2 would not be met and no acceleration would occur.
Common Mistake
Assuming voluntary departure counts as trigger 2. In almost all double-trigger provisions, you must be involuntarily terminated (fired, laid off, or constructively dismissed through material role/compensation changes). Quitting after an acquisition does not trigger acceleration.
Why It Matters
Double-trigger acceleration is the standard protection against "acqui-hire and fire" scenarios where acquirers buy the company and then lay off employees before their equity vests. This is the most important protection to have in your equity agreement.
Related Terms
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