Company: PAYC
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0000950170-25-024136
Chunk: 223

Company: Paycom Software, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 9B
Chunk 223
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Us that will vest and be converted into shares of common stock will be based on the achievement of a total revenues performance target, as follows:

    Performance Level
     
    Vested PSUs

    Below Threshold
     
    0%

    Threshold
     
    50%

    Target
     
    75%

    Maximum
     
    100%

The 2025 PSU Awards will be eligible to vest following the end of the Performance Period, but no later than March 1, 2026, provided that the executive officer is employed by, or providing services to, the Company or a subsidiary on the vesting date. Furthermore, the 2025 PSU Awards will (i) become fully vested upon the executive officer’s death or Total and Permanent Disability (as defined in the 2023 LTIP), (ii) remain eligible for vesting following Retirement (as defined in the applicable PSU Award Agreement) based on actual performance, and pro-rated for the number of days employed during the Performance Period, (iii) remain eligible for vesting following a termination of employment by the Company without Cause (as defined in the applicable PSU Award Agreement) or by the executive officer for Good Reason (as defined in the applicable PSU Award Agreement) based on actual performance, and pro-rated for the number of days employed during the Performance Period, and (iv) become fully vested upon a termination of employment by the Company without Cause or by the executive officer for Good Reason in connection with or following a Change in Control (as defined in the 2023 LTIP) of the Company, in each case as provided in the respective PSU Award Agreement.

Time-Based RSU Awards

Each award of RSUs (each, a “2025 RSU Award” and, collectively, the “2025 RSU Awards”) was granted pursuant to the terms of the 2023 LTIP and the Company’s standard form of Restricted Stock Unit Award Agreement - Time-Based Vesting (Executive). Each RSU represents a notional share of the Company’s common stock. The 2025 RSU Awards will vest in three substantially equal tranches on February 5, 2026, February 5, 2027, and February 5, 2028, provided that the executive officer is employed by, or providing services to, the Company on the applicable vesting date. In addition, the 2025 RSU Awards will become fully vested upon the executive officer’s death or Total and Permanent Disability.