RealNetworks Announces Inducement Awards Pursuant to NASDAQ Listing Rule 5635(c)(4)

Rhea-AI Summary

RealNetworks (RNWK) announced on December 23, 2020, the granting of approximately 1.1 million restricted stock units (RSUs) to a new employee under its 2020 Inducement Equity Plan. This plan allows equity awards for new hires as an incentive for joining the company. The RSUs include a sign-on bonus of 135,005 shares, which will vest on August 17, 2021, and a new-hire equity award of 1 million shares, vesting 40% on August 17, 2022, another 40% on August 17, 2024, and 20% on August 17, 2025, contingent on continued employment and performance metrics related to stock price.

Positive

• Granting of approximately 1.1 million RSUs may enhance employee retention and motivation.
• Inducement Equity Plan aims to attract talent by offering significant equity awards.

Negative

• None.

SEATTLE, Dec. 24, 2020 /PRNewswire/ -- RealNetworks, Inc. (Nasdaq: RNWK) today announced that on December 23, 2020, the Compensation Committee of the RealNetworks Board of Directors granted approximately 1.1 million restricted stock units, or RSUs, to one new employee under RealNetworks' 2020 Inducement Equity Plan.

The 2020 Inducement Equity Plan is used exclusively for the grant of equity awards to individuals who were not previously an employee or non-employee director of RealNetworks (or following a bona fide period of non-employment), as an inducement material to such individual's entering into employment with RealNetworks, pursuant to Rule 5635(c)(4) of the NASDAQ Listing Rules.

The RSUs are comprised of two awards, one representing a sign-on bonus and the other representing a new-hire equity award. The 135,005 shares underlying the RSUs representing a sign-on bonus was determined based on a value of $200,000 divided by the average price of the Company's common stock over the 30-calendar-day period ending August 3, 2020, and will fully vest and become exercisable on August 17, 2021. The new-hire equity award of 1.0 million RSUs will vest as to 40% on August 17, 2022, another 40% on August 17, 2024, and the remaining 20% on August 17, 2025, subject in all cases to the recipient remaining an employee of the Company through the applicable vesting date. The new-hire award is subject to accelerated vesting in the event of the attainment of certain pre-established objectives related to the trading price of the Company's common stock.

The equity awards are subject to the terms and conditions of the RealNetworks 2020 Inducement Equity Plan, and the terms and conditions of equity award agreements covering the grants.

About RealNetworks
Building on a legacy of digital media expertise and innovation, RealNetworks has created a new generation of products that employ best-in-class artificial intelligence and machine learning to enhance and secure our daily lives. SAFR (www.safr.com) is the world's premier facial recognition platform for live video. Leading in real-world performance and accuracy as evidenced in testing by NIST, SAFR enables new applications for security, convenience, and analytics. For information about our other products, visit www.realnetworks.com.

RealNetworks is a registered trademark of RealNetworks, Inc. All other trademarks, names of actual companies and products mentioned herein are the property of their respective owners.

For More Information:

Investor Relations for RealNetworks
Kimberly Orlando, Addo Investor Relations
310-829-5400
IR@realnetworks.com
RNWK-F

 

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SOURCE RealNetworks, Inc.

FAQ

What RSUs did RealNetworks grant on December 23, 2020?

RealNetworks granted approximately 1.1 million restricted stock units (RSUs) to a new employee.

What is the vesting schedule for RSUs granted by RealNetworks?

The RSUs include a sign-on bonus that vests on August 17, 2021, and a new-hire equity award vesting 40% on August 17, 2022, 40% on August 17, 2024, and 20% on August 17, 2025.

What is the purpose of the 2020 Inducement Equity Plan at RealNetworks?

The 2020 Inducement Equity Plan is designed to grant equity awards to attract new employees as an inducement for joining the company.

How is the value of the sign-on bonus RSUs determined?

The sign-on bonus RSUs are valued at $200,000, based on the average price of the company's common stock over a 30-day period ending August 3, 2020.

Are the RSUs granted by RealNetworks subject to performance metrics?

Yes, the new-hire award is subject to accelerated vesting if certain pre-established objectives related to the stock price are achieved.