Compensation – Equity

Vesting

Seneca Systems has a one year cliff with a four year vesting schedule. All equity follows the same schedule, including founders and any advisors we may bring on board.

We believe employees are more valuable the longer they remain with the company. To reflect this, our vesting schedule is progressively weighted towards the later years.

• Month 12: 17.5% (cliff)
• Months 13-24: 22.5% (1\/12th, monthly)
• Months 25-36: 27.5% (1\/12th, monthly)
• Months 37-48: 32.5% (1\/12th, monthly)

In exchange for the risk the employee takes on by weighting the vesting schedule as such, we are committed to offering at least 110% of market rate in equity for a given position\/timeframe.

Example

This is much easier to see in an example.

In terms of shares vested per month, the chart below shows the difference versus a traditional plan with a 12 month cliff and a 4 year vesting period.

Let's assume a 4800 option grant under a traditional plan (12 month cliff, 4 year vest) and compare with a 5280 option grant (110% of "market rate") under the Seneca Equity Plan.

The break-even point—the point at which you would have vested the same amount of options—comes at month 38.

After 3 years and 1 month (37 months), the traditional plan will have vested 3600 options, while the Seneca equity plan would have vested 3564 options. After month 38, the traditional plan would have vested 3700 options while the Seneca equity plan would have vested 3707 options.