Acceleration clause

A provision that is most commonly part of a vesting schedule. The clause entitles an individual (typically an executive) to an accelerated vesting of their equity upon the occurrence of a specified triggering event. Generally, the triggering event is the sale of the company. There are two basic types of acceleration clauses:

1. Single-trigger acceleration: Acceleration of vesting based on the occurrence of a single, specified event, most commonly the sale of the company.
2. Double-trigger acceleration: Acceleration of vesting contingent on the occurrence of two specified events. Typically, the two triggering events are the sale of the company and termination without cause. A double-trigger clause is intended to protect executives who remain with the company following an initial sale and are subsequently terminated without cause.