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How do I exercise vested options on Clara?
How do I exercise vested options on Clara?
Updated over a week ago

Once options have vested, the option holder can choose to exercise the option. To exercise a vested option, an exercise notice should be created and sent for signature to the grantee.

This article explains how you can exercise a vested option on Clara.

1. Click on Options (ESOP)

This can be found on the Equity tab

Click on Options (ESOP)

2. Review your existing option plan and grants

On this tab you will find any options plans you have set up, and any options associated with that plan. In this screenshot, the option plan is called 'Acme HoldCo Sip - 2023' and there is one employee with an option.

Review your existing option plan and grants

3. Click on the vested option

Click on the blue text of the vested option to view in more detail

Click on the vested option

4. Click on Manage and Exercise

Click on the manage drop down button and select exercise

Click on Manage and Exercise

5. Fill out the exercise option form

You will be prompted to input the number of options you want to exercise, the price paid per share, board and shareholder approval date, and attach any supporting documents (if any).

Fill out the exercise option form

6. Click on Save

Click on Save

7. Review the Exercise Notice

Your exercise notice will automatically be saved as a draft in the transactions section. You can review, edit and delete the exercise notice while it is in draft.

Review the Exercise Notice

8. Click Create Exercise Notice

When you are ready to create the exercise notice and send it to the option holder for signing, use this button

Clicl Create Exercise Notice

9. Create Exercise Notice

Input the option holders email address, this is the address the DocuSign request will be sent to. You will also be asked to confirm that you are authorised to create the exercise notice on behalf of the company.

Create Exercise Notice

10. Send Notice for Signature

If you have set up your ESOP using Clara's documents, the system will automatically generate an exercise notice that you can send for signature.

If you have created your ESOP without the Clara platform, you will be prompted to upload a signed exercise notice instead.

Send Notice for Signature

11. Exercise Notice - Pending Signature

Once the notice has been sent for signature, it will appear in the Transactions section as pending signature

Exercise Notice - Pending Signature

12. Exercise Notice - Published

Once the option holder has signed the exercise notice the transaction will automatically update to published. The exercised shares will also be marked as fully exercised (in orange).

Exercise Notice - Published
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