How to record an early exercise

Some option grants allow shareholders to early exercise, or in other words, exercise unvested shares. By default option grants in Capshare are marked as not being early exercisable. You can follow the steps below to record one.

Step 1. First, change the originating option to be early exercisable. You can either do this from Primary Issuances, or directly on the option’s page. Both ways are shown below:

Primary Issuances:

Option Page:

Step 2. Once you make the option early exercisable, simply record an exercise like normal, and the option to exercise unvested shares will appear:

That’s it! The resulting common stock will inherit the option’s vesting schedule and continue vesting as a Restricted Stock Award (RSA).

Note: Most shareholders prefer to file an 83(b) election after an early exercise. You can issue them pre-filled out elections directly in Capshare: How to issue 83(b) forms to your shareholders

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