Blumberg

FACTS

I.

BLUMBERG’S STOCK OPTIONS

In June 2012, Blumberg began working as a consultant for Stroma, a start-up medical device company developing a technology to change the color of people’s eyes from dark to light. Blumberg’s consultancy was governed by a written agreement (Consulting Agreement) specifying he would be paid for his work with an option to purchase 27,235 shares of Stroma stock, which would vest during the period of the Consulting Agreement. Between June 1, 2013 and September 30, 2016, the Consulting Agreement was amended six times. With each amendment, the amount of the stock option grant increased. In total, as compensation for his consulting work, Blumberg received an option to purchase 130,905 shares of Stroma’s common stock. By the terms of the Consulting Agreement, the option had a term of “10 years, subject to earlier expiration in the event of the termination of [Blumberg’s] services hereunder (provide [sic] that the term of the Option shall be no less than two years unless [Blumberg’s] services hereunder are terminated for cause).” The option also was subject to the terms of Stroma’s 2009 stock plan and standard form stock option agreement, which gave…