Overview

The in-platform exercise workflow enables stakeholders to submit requests to exercise their stock options and allows company administrators to review, process, and approve these requests. Once approved, the system automatically updates the cap table by creating new share certificates and consuming the exercised options.

Workflow Overview

Key Participants

• Stakeholders (Optionholders): Employees or other parties who hold stock options and wish to exercise them

• Company Administrators: Personnel responsible for reviewing and processing exercise requests

• Exercise Admins: Designated users who receive notifications about new exercise requests

Main Stages

1. Draft: Stakeholder initiates and prepares exercise request

2. Submitted: Stakeholder submits request for company review

3. Reviewed: Company admin reviews request and calculates exercise amounts

4. Payment Sent: Stakeholder indicates payment has been sent

5. Payment Received: Company admin confirms payment receipt

6. Approved: Company admin approves exercise and updates cap table

7. Rejected: Company admin rejects the request (alternative terminal state)

Stakeholder Experience

Viewing Available Options to Exercise

Accessing Your Options

1. Navigate to your portfolio in the platform

2. View your list of stock options (option grants)

3. Each option grant displays:

   • Grant name and ID (e.g., "OP-123")

   • Number of vested options available

   • Exercise price per option

   • Total value to exercise

   • Issue date and vesting schedule

Understanding Exercisable Options

• Only vested options can be exercised

• The system calculates how many options are available based on:

  • Your vesting schedule

  • Previously exercised options

  • Any options that have been withheld for taxes

Initiating an Exercise Request

Step 1: Start the Exercise Process

1. From your option grant details, click "Exercise Options"

2. The system opens a multi-step form to guide you through the process

   
   

Step 2: Specify Exercise Details On the first screen, you'll provide:

• Number of options to exercise: Enter how many vested options you want to exercise

• Exercise date: Select the date for the exercise (typically today)

• Exercise cost calculation: The system automatically calculates:

  • Exercise price per option

  • Total cost before taxes

  • Any applicable tax withholding (if configured)

  • Total cost after taxes

Step 3: Provide Your Location Information The second screen requests your address details:

• Street address

• Address line 2 (optional)

• City

• State/Province

• Country

• Postal/ZIP code

This information is required for tax purposes and legal documentation.

Step 4: Attach Supporting Documents (Optional) The final screen allows you to upload relevant documents:

• Payment confirmation

• Wire transfer receipts

• Any other supporting documentation

For each document you can:

• Upload new files (drag and drop or click to browse)

• Mark documents as visible or hidden from your view

Step 5: Save or Submit You have two options:

• Save as Draft: Save your progress and return later to complete

• Submit for Review: Send the request to company administrators

Once submitted, you cannot edit the request. If changes are needed, the company admin must send it back to draft status.

Tracking Your Exercise Request

Viewing Request Status After submission, you can track your request's progress:

1. Navigate to your portfolio

2. Find the option grant you're exercising

3. View the exercise request status

Status Meanings for Stakeholders

• Drafted: Your request is saved but not yet submitted

• Submitted: The company has received your request and will review it

• Reviewed: The company has reviewed your request and is awaiting payment

• Payment Sent: You've indicated payment was sent (if applicable)

• Payment Received: The company has confirmed receiving your payment

• Approved: Your exercise is complete, and shares have been issued

• Rejected: The company declined your request (see rejection reason)

Receiving Notifications

You'll receive email notifications at key stages:

• Payment Requested: When the company reviews your request and requests payment

• Approved: When your exercise is approved and shares are issued

• Rejected: If your request is declined, with an explanation

• Reverted: If the company sends your request back to draft for corrections

Completing Payment

After Review When the company reviews your request, you'll receive an email with:

• Payment amount required

• Payment instructions

• Payment deadline (if applicable)

Indicating Payment Sent If your company uses the payment tracking feature:

1. After sending payment, access your exercise request

2. Click "Mark Payment as Sent"

3. Optionally add notes about the payment method

4. Upload payment confirmation documents

This notifies company admins that payment is complete and moves the process forward.

Receiving Confirmation

Approval Notification When your exercise is approved, you'll receive:

• Email confirmation

• Details of your new share certificate

• Certificate ID (e.g., "SCP-456")

• Number of shares issued

• Exercise date confirmation

Viewing Your New Shares After approval:

1. Navigate to your portfolio

2. View your updated holdings

3. Find your new share certificate under "Common Stock" or the appropriate share class

4. The exercised options are marked as consumed on your option grant