Need pointers into the right direction please.
I was employed by a Shenzhen-based IT company(in China) between Feb/2010-June/2011.During my employment period, I was awarded "incentive stock options" that covered up to 60,000 shares of the company's common stock. According to an agreement signed by the CEO of the company, I was entitled to exercising 15,000 shares by the time I quit the job (but actually did not exercise them). Recently, the company was acquired by a Nasdaq-listed European company. I contacted them on this issue but was told that the agreement became null and void as I am not its employee anymore. However, I did not see any terms in the agreement stating that the right to exercise the stock options is related to my employment status with the same company in any way. I would like to seek advice on this matter (for myself as well as a group of ex-coworkers). Below was what the agreement looked like.
Another question is what stake the acquiring company holds on this issue. Can we contact them for the matter?
Thank you very much.
Hans Lu
on behalf of a group of ex-coworkers
------------
Dear XXX(employee's fullname),
In recognition of your outstanding work at XXX(company name) to date, and in appreciation and expectation of your future contributions to XXX(company name), we are pleased to inform you that you have been awarded an "incentive stock option" covering up to 60,000 share of XXX's common stock (the "Option Shares" at an exercise price of HK$0.01.
One-sixth of the Option Shares will vest and become exercisable 180 days from the date of this letter(September 9, 2010). The remainder will vest and become exercisable in 30 consecutive, equal, monthly installments and will be fully vested within three years from today provided you remain a XXX employee continuously throughout this period.
When the Option Shares are exercised, you will be entitled to receive an amount representing the fair market value of the Option Shares on the day the option is exercised less the exercise price. Details of the plan, including when the Option Shares can be exercised and how their fair market value will be determined, will be explained in the XXX Incentive Stock Plan, which we will be sending to all eligible employees before the end of October.
Thank you XXX(employee name), for all of your hard work. We look forward to your continued contributions as we build an exceptional company together.
Best regards,
CEO's name and signature here
CEO
XXX Company
I was employed by a Shenzhen-based IT company(in China) between Feb/2010-June/2011.During my employment period, I was awarded "incentive stock options" that covered up to 60,000 shares of the company's common stock. According to an agreement signed by the CEO of the company, I was entitled to exercising 15,000 shares by the time I quit the job (but actually did not exercise them). Recently, the company was acquired by a Nasdaq-listed European company. I contacted them on this issue but was told that the agreement became null and void as I am not its employee anymore. However, I did not see any terms in the agreement stating that the right to exercise the stock options is related to my employment status with the same company in any way. I would like to seek advice on this matter (for myself as well as a group of ex-coworkers). Below was what the agreement looked like.
Another question is what stake the acquiring company holds on this issue. Can we contact them for the matter?
Thank you very much.
Hans Lu
on behalf of a group of ex-coworkers
------------
Dear XXX(employee's fullname),
In recognition of your outstanding work at XXX(company name) to date, and in appreciation and expectation of your future contributions to XXX(company name), we are pleased to inform you that you have been awarded an "incentive stock option" covering up to 60,000 share of XXX's common stock (the "Option Shares" at an exercise price of HK$0.01.
One-sixth of the Option Shares will vest and become exercisable 180 days from the date of this letter(September 9, 2010). The remainder will vest and become exercisable in 30 consecutive, equal, monthly installments and will be fully vested within three years from today provided you remain a XXX employee continuously throughout this period.
When the Option Shares are exercised, you will be entitled to receive an amount representing the fair market value of the Option Shares on the day the option is exercised less the exercise price. Details of the plan, including when the Option Shares can be exercised and how their fair market value will be determined, will be explained in the XXX Incentive Stock Plan, which we will be sending to all eligible employees before the end of October.
Thank you XXX(employee name), for all of your hard work. We look forward to your continued contributions as we build an exceptional company together.
Best regards,
CEO's name and signature here
CEO
XXX Company
