This isn’t the first time I’ve seen a stock option plan like this. I actually worked for a company once that used the same mechanism. I dug up the clause from that agreement, which I kept because it was so audacious. Here’s the relevant clause – it says much the same as the Skype documents but in slightly more understandable language: Michael Arrington shows just how important experience is, and why lawyers are a good idea for any contract. I’m sure that second lesson will kick in soon.