· How To Record An Option Exercise In The Platform

Introduction

This article will cover how to upload a completed option exercise in your account. For more information about how to exercise your options in the platform and generate this documentation, see our article here. For more detailed information about the steps in the Exercise (Upload Only) workflow, please select a step below:

• Getting Started
• Upload Exercise
• Proof of Payment
• Certificates
• Checkpoint

The Exercise (Upload Only) Workflow

Getting Started

The first step of this workflow will ask you to specify the option holder whose options were exercised. The next step will ask you to specify the grant affected by the exercise. 

Upload Exercise

Upload the exercise document. You will need to specify the date of purchase, confirm the number of shares purchased, select a payment type (check, cash, wire transfer), specify the fair market value price per share, and list the exercise price for these shares. 

Proof of Payment

The next step of the flow will require you to provide proof of payment for these shares and confirm that they have been paid for in whole. Proof of payment can take the form of a photo or scan of a check, etc. You can also choose to waive this document.

Certificates

At this point, you will be given the option to create stock certificates for the stockholder or you can upload them (or defer them for a later date). You'll want to have the certificate number and legends handy for this step. You can read more about generating certificates on the platform here.

Checkpoint

At the Checkpoint step, you can review all uploaded documents and generated certificates, if applicable. You can send these documents to your legal team for review at this point. Moving past this step will execute this exercise, meaning that stock certificates will be sent out for signature (if applicable) and the option holder will be able to view their stock certificate in the platform at any point. They will also be notified of any new stock certificates in their name, if they were generated.

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Screenshots are for illustrative purposes only.

Fidelity Private Shares LLC provides cap table management and other administrative services to private companies and their equity compensation plans.

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