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Accelerating Securities During Stakeholder Termination
Accelerating Securities During Stakeholder Termination

This guide explains how to record accelerations in Pulley when a stakeholder is being terminated.

Tyler Martin avatar
Written by Tyler Martin
Updated over a week ago

Accelerations may occur due to provisions in an agreement (e.g. acceleration triggered by termination without cause) or at the company's discretion.

Supported Securities

Security Type

Equity Cap Table

Token Cap Table

Unvested RSUs/RTUs

No

No

Unvested Shares/Tokens

Yes

Yes

Unvested RSAs/RTAs

Yes

Yes

Unvested Options

Yes

Yes

Note: Unsupported securities (RSUs and RTUs) must be accelerated at the security level BEFORE terminating the stakeholder as discussed here.

Acceleration Method

1. Number of Days Method

Accelerate securities that would vest during a specified period.

  • System calculates Accelerated Quantity based on number of securities that would vest during a specific period starting from the Termination Date

  • Shows both the Accelerated Quantity and number of affected vesting tranches

  • When using "Apply to All", you can optionally accelerate To Next Tranche if they would not otherwise vest any tranches during the specified period

2. To Next Tranche Method

Accelerates securities in the next upcoming vesting tranche.

  • System calculates which securities would be accelerated in the next tranche

  • Shows both the Accelerated Quantity and number of affected tranches

  • Always affects exactly one tranche

3. Manual Entry Method

Directly input the Accelerated Quantity

  • Provides full control over acceleration quantity

Special Considerations

Early Exercise Handling

When dealing with securities from early exercised options:

  • Acceleration must be applied to the original option grant

  • Accelerating the original option flows through to all early exercised securities

  • System automatically accelerates early exercised unvested shares in the order they were exercised

Security ID

Security Type

Description

Initial Status (prior to Acceleration)

Accelerated Quantity

Final Status (after Acceleration)

OPT-1

Option

Original Grant

400/1000 vested

200

600/1000 vested

CS-1

Common Stock

First Exercise

400/500 vested

100

500/500 vested

CS-2

Common Stock

Second Exercise

0/200 vested

100

100/200 vested

Milestone Vesting

  • Not included in "To Next Tranche" or "Number of Days" calculations

What happens after an acceleration

  • Time-based vesting schedules are automatically adjusted for accelerations. Any accelerated amounts will appear as vested.

  • Milestone-based vesting schedules must be manually adjusted for accelerations at the security level. Any accelerated amounts will need to be manually marked as vested.

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