Business Pitch Dictionary by pitch.dog
Founder & employee equity · Working

Exercise window

Also called: post-termination exercise period

ELI5

The time available to use an option.

Used in conversation

“A short exercise window can create a cash and tax burden.”

Definition

The period during which an option holder may exercise after an event such as termination.

Here “Exercise window” means: The period during which an option holder may exercise after an event such as termination.

Pitch context

You will see “Exercise window” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches founder & employee equity.

Why it matters: In founder & employee equity, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 5

Direct term-level sources and supporting source families.