• The right (not obligation) to purchase a share in the company
(= “exercising your options”)
• The price gets fixed when you join (= your “strike price”)
• Purchasing becomes possible after a certain time (“vesting”)
• You can sell the stock immediately (some rules/exceptions)
• Or you can hold them
• Potentially, the stock’s value will increase and you can sell shares for a higher price than you purchase them
• Exercising means buying your shares
• In theory, you can do it anytime (once the options are vested)
• The price you pay is fixed (the income tax you pay can vary)
• Vesting means you earn the right to buy your shares
• You first get a right to exercise after 1 year at KONUX (1/4 of your grant) – this is called a "cliff"
• From there, your options vest monthly over 3 more years (fully vested after 4 years at KONUX)
• KONUX shares are not (yet) traded in a public market, so you basically make your own deal
• First right of refusal: KONUX and its investors have the right to buy back your shares at the same price you would be paid by a 3rd party, so notify the company first
• Capital gains tax will be charged on your earnings
• Offer option you selected: You can choose between 3 options, each containing a different amount of basic salary and stock options
• Point in time you joined the company
• Point in time you exercise
• Point in time you sell
Above all: The success of the company. So let’s all work to make KONUX really successful!
• We all invest a lot in KONUX – time, passion, thought, effort,… If we manage to make the company successful, we could get a considerable financial reward later
• The ESOP is one way of showing we are all in this together – we all win, or we all lose
• The ESOP is one way we live our culture – we expect ownership and great performance, and we offer a share of the company’s success in return
• A part of your salary that you should count on or plan with
• Any guarantee in terms of a future valuation or a resulting gain
• Any one success formula for how to best deal with your equity – it all depends on your personal preferences as well as the further development of the company, which no one can predict