What is a vesting period? What is a waiting period? 

The vesting period is the period of time you must stay with a company before you outright own the stock. This is very common with equity compensation. A company will award shares of stock on a given date, but you must remain with the company to fully vest the shares and own them outright. 

The SPP does not have a vesting period. You purchased the shares with your commission income and own them outright. However, the SPP is subject to a waiting period. This is a period of time where you cannot transact shares. This is because we want agents to invest in the long-term growth of the company and not sell shares immediately after they receive them. 

SPP Bonus Awards, Capping Awards, and Attracting Shares are subject to a vesting period, according to the programs described in How do I earn equity (stock)? For these programs, you will need to remain with Real for a period of time after the stock was awarded to fully vest the stock (own the shares outright). 

Here is a summary:

• SPP (No Vesting. One Year Waiting Period): For stock you purchased through the SPP, there is a one year waiting period. If you leave Real before the stock vests, you will keep the stock in your Shareworks account, but you will not be able to sell the stock until 1 year after you received the shares. 

• SPP Bonus Awards (One Year Vesting Period): SPP Bonus Awards (the amount Real matches) have a 1 year vesting period. You must remain licensed with Real for one year (from the award date) to fully vest (receive) these stock awards. If you leave Real before the stock vest, you will lose the shares. 

• Stock Award for Capping (3 Year Vesting Period): Stock awarded for capping has a 3 year vesting period. You must remain licensed with Real for three years (from the award date) to fully vest (receive) these stock awards. If you leave Real before the stock vest, you will lose the shares. 

• Elite Agent Production Award & Elite Agent Cultural Award (3 Year Vesting): All shares in the Elite agent program are Restricted Stock Units (RSUs) and have a 3-year vesting period. If you leave Real before the stock vests, you will lose the shares.
• Attracting Shares (3 Year Vesting Period): Stock awarded for attracting has a 3 year vesting period. You must remain licensed with Real for three years (from the award date) to fully vest (receive) these stock awards. If you leave Real before the stock vest, you will lose the shares. 

Your Shareworks account will show the date the stock was granted and when it will vest. 

SPP Example:

• On January 15th 2022, you close a transaction with $10,000 GCI. Because you are opted in to the SPP at this time, Real sets $500 aside to purchase stock via SPP.
• The shares are purchased January 31st, 2022 (always the end of the month). 
• Your shares will be awarded by February 15th, 2022 and will be visible in your Shareworks Account. 
• You own these shares outright (vested). They are yours to keep. 
• However, you may not transact (sell, trade, move) these shares until February 15th, 2023 - one year after they were purchased. This is the waiting period. 

SPP Bonus Awards

• You receive $100 of stock via SPP Bonus Award in January. 
• Your shares are awarded by February 15th, 2020 and you receive the shares in your Shareworks Account. 
• These shares are not vested yet. You will not own them outright until the vesting period is satisfied. 
• On February 15th, 2021, the vesting period is satisfied and you own the shares outright. 
• There is no waiting period on these shares, so you may sell them on February 15th, 2021, if you would like.