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Graded Vesting

A vesting schedule under which a certain percentage of options vest and are exercisable each year, month, or quarter. For example, 25% of the options in your grant may vest on the yearly anniversary of your employment. Thus, 25% vest on the year-one date, 50% on the year-two date, 75% on the year-three date, and 100% on the year-four date. Compare cliff vesting.

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