- In the top menu, select Options in the Who Owns What dropdown.
- Select Option Pools in the menu on the left.
- Click Start Option Pool in the top corner on the right.
- Enter the data in the fields; Option Pool Name: Give your option pool a name so it's easy to identify it if you add another pool later on. Exercise Expire: The length of the exercise window. How many years/months do your options holders have to exercise (buy) their options after they have been granted. Share Type: The share type that the options convert to when they are exercised. Number of Options: Enter the total number of options for this option pool. Option Price: Enter the price per option. Note! Most ESOP's don't require the option holder to pay for the options. Exercise Price: Enter the exercise price per option. This is the price the option holder has to pay to convert the options into shares.
- Now that you have created your option plan, click Add Offer to add the offers for each of your option holders.
- Enter the data in the fields; Add or select an Investor: You can either add a new investor or select an existing investor, just start typing and select from the dropdown. Grant Date: Enter the date that you granted or issued the options. Start Date: Enter the date that the options should start vesting.
- Now it's time to create the vesting schedule. There are two types of vesting available; time-based vesting and milestone-based vesting.
- In time-based vesting you can create a cliff and/or periodic vesting. To add a cliff click Add Cliff Vesting and complete the fields; Number of Options: Enter the number of options you want to vest at the end of the cliff (this can be left at 0). Cliff Period: Enter the time (in month) that you want the cliff to run for. Now for the periodic vesting. If you want a portion of the options to vest on a regularly basis over a period of time then click Add Periodic Vesting and complete the fields; Number of Options: Enter the total number of options that you want to allocate to periodic vesting. The system will automatically divide this number by the number of vesting events in your periodic vesting schedule. Vest Frequency: Enter how often you want the options to vest (in months) as an example it could be every 3 months. Vest Period: Enter how long you want the periodic vesting to run for (in months) as an example it could vest every 3 months for 36 months in total. Please note, that if you have added a cliff, the periodic vesting will not start until the end of the cliff.
- To add milestone-based vesting click Add Milestone and complete the fields; Number of Options: Enter how many options you want to allocate to this milestone. Description: Describe the criteria that has to be met in order to earn these options.
- Once you are happy with everything click Add Offer.
Repeat steps 5 to 9 for every option holder that you want to add to your option pool.
The system will automatically vest the time-based vesting schedules when the vesting dates arrive and send an update to your option holders. However, you have to trigger the vesting mile-stone based vesting events yourself from the Option Holders list.