[tastyham]

I worked for a moderately successful startup that got acquired and I had both options and grants. All vested options and existing shares were paid out as cash. Unvested options and grants were then paid out as a cash bonus on the vest dates if you were still working there.

Options were valued at sale price - exercise price. I had grants at different prices, but on average the cash value was about double the original grant values. I had been working there about 3 years. Also got a two year retention bonus worth 60% of my salary at the time of acquisition. Didn't make me rich, but it was a nice chunk of change. People who had been there longer had lower grant prices and made a LOT or money.

There isn't really anything you can do besides exercise early to try to get long term cap gains, but that's more risky than it's worth IMO, because the shares could end up valueless and you're screwed.