ER_Hopeful
Recycles dryer sheets
I'm about to join a small start up company and it offers an employee stock option plan. some of its terms & conditions is as follow, can someone explain it to me in English.
it says I'm entitled to 100,00 shares of Series A common stock at an exercise price of 45 cents/share. 1/4 of the shares shall vest on the one year anniversary of my commencement date. 1/36 of the rest will vest after each full month.
I've never had ESO before so I'm clueless. Did some quick googling but want to pick the brains here. some of my questions:
1. say after 1 yr, I'd like to sell the 1/4 vested shares, who do I sell it to? back to the company ? how do you determine the market value of the shares since it's not publicly traded?
2. say after yr 1, the value of the stock is 50 cents, does that mean I can buy at 45 cents and pocket the 5 cents profit(subject to tax, of course) ?
it says I'm entitled to 100,00 shares of Series A common stock at an exercise price of 45 cents/share. 1/4 of the shares shall vest on the one year anniversary of my commencement date. 1/36 of the rest will vest after each full month.
I've never had ESO before so I'm clueless. Did some quick googling but want to pick the brains here. some of my questions:
1. say after 1 yr, I'd like to sell the 1/4 vested shares, who do I sell it to? back to the company ? how do you determine the market value of the shares since it's not publicly traded?
2. say after yr 1, the value of the stock is 50 cents, does that mean I can buy at 45 cents and pocket the 5 cents profit(subject to tax, of course) ?