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Stock Option Plan

This is the place where you will find all the information regarding our Stock Option Plan.

What are options?

An option is a contract that gives someone the right, but not the obligation, to buy a share at a specified price (strike price) within a specific time range or at a specific event.

How do options work at source{d}?

At source{d} you receive options when you join the company as a way of making clear that you as well are an owner of this venture.
source{d} options can be exercised in the case of a liquidity event.
Depending on when you join, a strike price is defined, which will define how much you’ll need to “pay” to buy source{d} stock when you exercise your options.

What is a strike price?

The strike price is the price that you will agree to pay to exercise your options in the future. We currently set the strike price by applying a 20% discount over last round’s valuation, but this will change once we redomesticate to the U.S. There you need to perform a yearly valuation of the company by an external party to set this price.
To be clear, whenever you’ll execute your options you won’t actually need to pay anything. On the contrary, you will receive the difference between your strike price and the share price of the liquidity event.

What is a liquidity event?

A liquidity event could be an IPO or an acquisition by another party.
An IPO (Initial Public Offering) means becoming a publicly traded company, listed on a stock exchange like Nasdaq. The share price to which the strike price would be compared would be that at which the company would start to trade.
In the case of an acquisition the share price would be determined by the amount paid for the acquisition, divided by the total number of shares + options.

How many options have been given out?

Category Absolute Share
Total Vested 572 2.34%
Total Grantes 1,421 5.83%
Total Outstanding 347 1.42%
Total Options 1,768 7.25%
Total Shares 22,626 92.75%
Total Shares + Options 24,394 100.00%

How are options allocated?

We follow a formula that we apply to all positions in order for the allocation to be fair and scalable as we grow. It looks the following way:

options as a % of 'Total Shares + Options' = (Team / Stage + Role)

To understand the # of options on your offer letter, you need to calculate the following:

# of options = ((Team / Stage + Role) / 100) * (Total Shares + Options)

Team stands for which team you'll be working in. The weights are distributed this way:

Team Weight
Data Science 0.12
Developer Community 0.12
Engineering 0.1
Product 0.1
Operations 0.05

Stage stands for when you joined source{d}. Those who joined earlier had more risk than those who joined later:

Stage Weight
Seed 2
Series A 4

Role represents how senior your position is. The more senior, the more responsibilities, the more options:

Role Weight
VP 0.37
Head 0.27
Lead 0.17
Senior 0.07
Normal 0.02
Junior 0.00

Here is a table with the resulting number of options for each position on Series A stage.

Team Role # Options
Data Science VP 98
Data Science Head 73
Data Science Lead 49
Data Science Senior 24
Data Science Normal 12
Data Science Junior 7
Developer Community VP 98
Developer Community Head 73
Developer Community Lead 49
Developer Community Senior 24
Developer Community Normal 12
Developer Community Junior 7
Engineering VP 96
Engineering Head 72
Engineering Lead 48
Engineering Senior 23
Engineering Normal 11
Engineering Junior 6
Product VP 96
Product Head 72
Product Lead 48
Product Senior 23
Product Normal 11
Product Junior 6
Operations VP 93
Operations Head 69
Operations Lead 45
Operations Senior 20
Operations Normal 8
Operations Junior 3

Award letter

When you start working with us you will receive an award letter which grants you the options that are ruled by our Stock Option Plan. You can find a template of it here.

Stock Option Plan

Here you can find a template of our Stock Option Plan.

Vesting explained

When you join source{d} your options start vesting on the first day you start working. However if you leave source{d} or are fired within 12 months of starting, you will retain 0 options. This is called a "cliff". After 12 months of being at source{d} you will have vested 25% of your total options granted. This means, they are now yours, and no matter if you resign or are fired, they will be yours. After those 12 months, there is 3 more years of vesting on a monthly basis, that means every month you gain 1/36th (36 months == 3 years) more of your options.

Acceleration explained

If a liquidity event happens, no matter how long you've been at source{d}, could be 3 months, or 2 years, 85% of your total options are instantly vested, and the remaining 15% are vested over the course of 12 months after the company IPO's or joins the acquirer. This is to benefit everyone equally in case of a liquidity event.

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