A period that an employee must wait in order to be liable for a certain asset (usually stocks). The employee rights are given over time or the Completing of certain events (that are determined by the company in a vesting schedule), which encourage the employee to perform well and to remain with the company. Once the vesting period is completed, the vested right is absolute. For example: Yossi is the founder of “Banana”. According to his contract with the company, Yossi will get 100 vested shares, regarding the vesting schedule Proposed below: First investment in the company, or 3 months from effective date of the contract (The early of the two) – 25%. Release to the public or 6 months from effective date of the contract (The early of the two) – 25% (50% in total). Revenues over 100,000$ or 9 months from effective date of the contract (The early of the two) – 25% (75% in total). One year from effective date of the contract (The early of the two) – 25% (100% in total). In case of selling the company to a third party – 100% of the shares will be vested.