Good Reason

“Good reason” is often defined in a double trigger vesting provision that accelerates an employee’s vesting if the company is acquired and the acquiring company does something that gives the employee “good reason” to leave and to receive the accelerated vesting of unvested shares.

A “good reason” definition typically defines actions that might impact an employee’s ability to go to the acquiring company, for example, if following the acquisition the workplace will move more than 50 miles.