Type of option: Nonstatutory Option
This option may be exercised with respect to the first 25% of the Shares subject to this option when the Optionee completes 12 months of continuous Service after the Vesting Commencement Date set forth below. This option may be exercised with respect to an additional 1/48th of the Shares subject to this option when the Optionee completes each month of continuous Service thereafter.
Vesting Commencement Date: January 1, 2013
So far, what I understand is that I will have immediate access to 25% of shares shown below on January 1, 2014 (a year later after vesting commencement date):This option expires earlier if the Optionee's Service terminates earlier, as provided in Section 6 of the Option Agreement.
And then additional 1/48 of those shares for every month thereafter as long as I am employed.2,800 Series B Common Shares
600 Tier 1 Incentive Shares
600 Tier 2 Incentive Shares
1) Does this mean I will continue to get 1/48 of those shares for every months thereafter, even after year 5 after the vesting commencement date, or does it stop once 100% of those shares shown above is reached?
2) Unless I am mistaken, I think most does not exercise anything until certain events occur (like going public) and they then sell shares right away. Why not just exercise it on January 1, 2014 and own shares (without selling), and continue to accumulate 1/48 for each month thereafter (exercising every month, without selling shares)? I know it probably doesn't work that way, that's why I'm asking for Boglehead-type help.
By the way, assumption is that right now the shares aren't really worth anything right now anyway if I wanted to exercise the option.