### How to manage vesting schedule templates in Carta LLC

The _Vesting_ library supports two kinds of vesting criteria that can be created as a template to easily use when issuing new interests:

- **Time** (or Service): Vests after an amount of time has elapsed. For example, 10,000 units vest 1/48 each month for 48 months.

- **Performance**: Vests after an event has taken place. For example, 5,000 units vest when the enterprise value has been increased by 2x.

### How do I create a new performance condition?

**Navigate** to _Cap Table > Vesting_.

Click **Define condition +**.

Define **condition type.**

**_Condition type_:** Representation of the restrictive conditions and used when selecting the additional vesting condition.

- **_Event-based performance condition_:** A firm-wide condition that is satisfied after an event that affects the company as a whole such as an IPO or an acquisition.

- **_Market-based performance condition_:** A condition that becomes satisfied upon a market event such as the company reaching a valuation of $500 million or the stock price reaching a value of $50 per share.

- **_Non-market based performance condition_**: An individual-focused event. For example, Ted Baker, the company's Director of Sales, achieved a sales goal of 1,000 subscription licenses sold in his first 100 days of employment.

Add **condition details.**

- **_Condition name_**

- **_Condition details_:** Enter the company/legal language specifying the conditions to be achieved.

- **_Variable payouts (Minimum and Maximum):_** Performance awards can be configured to allow for payouts at greater than or less than 100% of target. _Carta will initially reserve shares from the plan’s share pool at the maximum payout amount._

- **_Vesting post-termination_:** Indicate whether awards that have time vested will pay out upon performance achievement if the stakeholder is terminated between time vest and performance achievement.

- **_No_:** Participants forfeit the award if they have not met both the time vesting and performance condition upon termination.

- **_Yes_:** Allow stakeholders that have met the time vesting criteria to keep the award if they are terminated before the performance condition has been met.

Click **Save** to create the new performance condition.

### How do I create a vesting plan template?

Navigate to _Cap Table > Vesting_.

Click **Add template +**.

#### Creating a new Standard vesting schedule template

Input the vesting schedule details, such as the length of the schedule (in number of months) and when the vesting occurs.

#### Creating a new Custom vesting schedule template

Click into the _Custom Template_ tab.

To add a new _Tranche_, click the **+** to the right of the row.

To modify the _Vesting Conditions_ of a tranche, click the row tools button to the right of the vesting condition and select **Edit conditions**.

In the modal, _Time-based vesting_ can be toggled off and on, and one or more _Performance Conditions_ can be applied. Click **Save** to apply the modifications.

When the details have been completed, click **Save** to make the vesting plan template available for use when issuing new interests.