An employee stock option is vested when it can be exercised by the holder. In a typical grant of stock options, a portion of the grant is exercisable immediately and the remainder of the award vests (becomes exercisable) on a pre-determined schedule. For example, an award might consist of 30,000 options of which 1,500 options are exercisable immediately and an additional 1,500 options become exercisable every three months for a period of 4.75 years.
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