AGENT GROWTH INCENTIVE PROGRAM
U.S. STOCK AWARDS
A stock award (Restricted Stock Units - RSU) is a promise to deliver shares of company stock in the future if the vesting conditions are met.
All agents (including brokers) in good standing with their applicable eXp brokerage (“eXp”) are eligible[1] to earn stock awards under the Agent Growth Incentive Program (the “Program”). Stock awards (issued in the form of restricted stock units) are a promise to deliver shares of eXp World Holdings, Inc. (Nasdaq: EXPI) common stock (“EXPI stock”) in the future if certain vesting conditions are met. Shares acquired through the Program will be issued to the individual agent and corresponding tax ID. eXp cannot issue shares to non-natural persons (e.g., a legal entity).
[1] Subject to applicable law and at the discretion of the Board of Directors. The Program may not be available in all jurisdictions.
AWARD VALUE
FIRST CLOSED
When a participant completes their first sale, lease, or referral transaction (full unit) in each anniversary year with eXp, the participant will be granted a stock award valued at $200 of EXPI stock.
CAPPED
Upon fulfillment of a non-reduced cap (company commission cap paid to eXp) during each anniversary year, agents will be granted a stock award valued at $400 of EXPI stock.
SPONSOR
When an eXp agent (sponsoring agent) directly attracts another agent (sponsored agent) to eXp, and upon the sponsored agent’s first completed transaction (full unit) with eXp, the sponsoring agent will be granted a stock award valued at $400 of EXPI stock.
NUMBER OF SHARES
The number of EXPI shares granted under an Agent Stock Award is determined by using the closing market price of EXPI stock on the last trading day in the qualifying month and is set forth on the participant’s Notice of Agent Stock Award.
VESTING
A participant does not own the EXPI stock granted under an Agent Stock Award until the award has vested. Each of the Agent Stock Awards described above vests over a three-year vesting period ending on the Vesting Date (as defined in the Agent Stock Award Terms and Conditions). In order to satisfy the vesting requirements, a participant must remain with eXp and in good standing (as defined in the participant’s Independent Contractor Agreement with eXp) during the vesting period. For Sponsor Awards, the sponsoring agent and the sponsored agent who joins and closed their first transaction must both remain with eXp and in good standing during the vesting period. Any failure to achieve the vesting requirements will result in the forfeiture of the stock award.
ICON AWARDS
In any year that an agent achieves ICON status, agents can earn up to $16,000 USD worth of eXp World Holdings common stock.
NUMBER OF SHARES
The number of EXPI stock granted under an ICON Agent Stock Award is determined by using the closing market price of EXPI stock on the 15th day of the month following the qualifying month (or preceding trading day).
VESTING
A participant does not own the EXPI stock granted under an Icon Agent Stock Award until the award has vested. Each of the ICON Agent Stock Awards vests over a certain vesting period ending on the Vesting Date. In order to satisfy the vesting requirements, a participant must remain with eXp and in good standing (as defined in the participant’s Independent Contractor Agreement with eXp) during the applicable vesting period; However, the Event Attendance Awards are not subject to vesting and are deemed owned by the participant once granted.
PROGRAM DEFINITIONS
Granted: Once an agent satisfies the requirements to earn a stock award under eXp’s Agent Growth Incentive Program, the award is then granted to them. The award, along with the associated terms and conditions, will be provided through the agent’s Shareworks account.
Awarded: Another term for Granted.
Vested: Once the agent has satisfied the vesting condition (specified amount of time) associated with an award, the award is then considered “vested”. eXp’s Agent Growth Incentive Program requires that the agent remains active and in good standing for the duration of the vesting period.
Issued: Once a stock award is vested, the underlying shares will be issued upon approval (typically within five business days of becoming vested). Issued shares are then available for sale or transfer.
AWARD QUALIFICATION & NOTIFICATION
eXp will calculate the new Agent Growth Incentive Program awards achieved by agents once all transactions have been "closed" from the qualifying month. This typically occurs towards the end of the following month. Grant notifications will be sent once the award(s) have been uploaded to the individual's Shareworks accounts.
ISSUANCE OF SHARES
Upon vesting, all shares issued under the Program will be held in the individual agent’s Shareworks account, the online platform used to manage eXp’s equity plans. Agents can access their Shareworks account through Enterprise by clicking on the Shareworks tile under Technology Solutions. Agents outside of the U.S. and Canada can access their account through Okta.
TAX TREATMENT OF STOCK AWARDS
You will find the U.S. tax treatment information about shares acquired through the Agent Growth Incentive Program on the Tax Treatment - Equity Compensation page.