Stock option plan it is the right to acquire the shares allocated by the company to its employees on certain terms. In the case of termination of employment relationship, when the employee has failed to meet the set conditions, the employee loses his/her right to acquire the shares. Consequently, the company does not need to reacquire (buy back) the stock option plan.
Let us give an example: an employee joined the company. Having worked for the company for a year, he was granted a stock option plan to acquire the company's shares under the following conditions: the employee was obliged to work for the company for three years and bring 10 new customers. Having worked for two and a half years with the company and having brought ten new clients, the employee decided to resign. In this case, the employee lost his right to purchase the shares, as all the set conditions were not met.
For more detailed information, please book a consultation via email: firstname.lastname@example.org or phone: +371 67373020, 371 67373021.