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  1. #1
    Join Date
    Feb 2018
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    1

    stock option grant

    What is the name of your state (only U.S. law)? California

    2 part question

    Part 1:
    I started my job March 5th 2017. I was granted shares in the company, 25% vested after 1st year. My vesting start date is listed as Feb 13th, 2017. The language says "the Option vests with respect to the first 25% of the Shares when the Optionee completes 12 months of coninuous Service after the Vesting Start Date." Does this mean my first 25% vesting starts Feb 13th 2018? Or March 5th 2018? If I were to quit before March 5th, do I not get the 25% vested?

    Part 2:
    Part of the agreement reads: "If your Service terminates for any reason except death or Disability, the vested portion of your Option will expire at the close of business at Company headquarters on the date three (3) months after your termination of Service. During that three (3) month period, you may exercise the portion of your Option that was vested on your termination date." My company only allows employees to exercise options twice a year, in January (which has passed) or in July (which would be more than 3 months away after May). In this case, upon quitting soon, would I be unable to exercise, given these conditions?


  2. #2
    Join Date
    Nov 2005
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    in the ether
    Posts
    41,183
    started my job March 5th 2017. I was granted shares in the company, 25% vested after 1st year. My vesting start date is listed as Feb 13th, 2017. The language says "the Option vests with respect to the first 25% of the Shares when the Optionee completes 12 months of coninuous Service after the Vesting Start Date." Does this mean my first 25% vesting starts Feb 13th 2018? Or March 5th 2018? If I were to quit before March 5th, do I not get the 25% vested?
    it says you must complete 12 months of continuous service after the vesting start date. Think about this real hard now.

    You must complete 12 months of continuous service after the vesting start date.

    When is the first date where you will have completed 12 months of continuous service after the vesting start date?

    Your employment anniversary.

    You have not completed 12 months of continuous service until you’ve worked there for 12 months regardless of when your vesting start date is.

    You are correct; if you quit before March 5 you would not have earned the stock options.

    Part 2:

    The rule for employees differs than the rule for former employees. Employees are only allowed to exercise their options twice per year. Former employees must exercise their options within 3 months of the end of their employment.


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