Employee option tax laws are complex and if Larry is living in the US they would be even more complex.. I am guessing there is a provisional tax component that he may have to pay when he exercises which would mean he would have to sell a whole lot of stock on the market. Banks do not normally lend against options in the money or out. This way he may not of had to pay the provisional tax component and was able to finance the the first tranche all in all I think Larry is smiling.
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