Double-Trigger Acceleration

Double-Trigger Acceleration is a provision commonly included in employee stock option or restricted stock agreements, especially for startup executives and key employees. It accelerates the vesting of unvested equity upon the occurrence of two specific events:

1. A change in company control (e.g., acquisition or merger).

2. Termination of the employee without cause or resignation for good reason within a set time after the change in control.

This provision protects employees from losing the value of their unvested equity if a company is sold and the new owners restructure leadership or staffing. It is favored by investors and acquirers as it avoids immediate dilution while retaining critical talent during transitions.