If you are a non-public company granting stock options or other compensatory equity awards, you need to be familiar with Rule 701 Math and in particular its mathematical limitations. Fortunately, they are pretty simple. Unfortunately, many entrepreneurs overlook them with sometimes disastrous consequences. To save you some time, we wrote you a step-by-step guide toContinue reading “The Rule 701 Math: How to do it”
Author Archives: James Graves
How to Form a Washington Corporation
[Update: the Washington legislature updated RCW 23B in 2020. This post, Washington Corporation, is out of date in some respects and was updated here.] Introduction If you are going to form a Washington corporation, you need to exercise care and you probably want to hire a lawyer to help you. The reason for this isContinue reading “How to Form a Washington Corporation”
Repricing Stock Options: The Rule 701 Math
By: James Graves and Joe Wallin There may be times during the life of your company in which you will want to reprice underwater stock options. Depending on your cap table, however, this may not be as easy as you think. As you know, Rule 701 sets forth mathematical limitations you must follow when issuingContinue reading “Repricing Stock Options: The Rule 701 Math”