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Corporate

Stock Option Agreement

New York

Asked on Jan 19, 2022

ESOP - employee share option plan

Hello! My company provide me a fixed amount ($10,000) of equity within 4 years, with 25% vested after 12 months and said "The options will have a “strike price” which is based on the market value of the Company at the time your options are issued to you." What does it mean? Will i need to pay the different price every year?

1 Attorney answer

Answer

Corporate

New York

Answered 247 days ago

Michelle F.

ContractsCounsel verified

Business Lawyer
Licensed in New York
Free Consultation

Would really need to see the documents to properly answer this question. Is the value of the equity fixed at $10,000? Typically you get a number of shares that vest (become available to you) over x amount of time. The strike price is the amount you will pay to the company to exercise the option. (Disclaimer: This is not legal advice.)

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