They way I understand this is similar to when an employee is vested and qualifies for the portion of the employees company match in their 401Ks. Mr. Cragun is vested 13.3K shares as of August of 2018 and he will become vested for another 13.3K this upcoming August and the cycle will continue until August of 2022.

Does he keep getting vested shares if he steps down or is retired as a BoD member? I can't answer that as I do not know the details of his contract terms but if ai had left my current company before being fully "vested" then I would have only received a percentage of the company's match based on time served.

With all that being said Mr. Cragun currently owns 13.3K shares today that he could sell if he wanted to but would take a significant lose being they were issued based on the $7.50 exercise price.

Hope this helps.