I currently work at company A and we use a start-up company B as a product provider. The product provider approached me to do some advisory services in order to extend their business further into my industry. They would like me to introduce them to other companies in the industry with the hope of driving more sales and services. I haven't seen anything specific in writing yet but the general offer was as options out of a company option pool to convert to common stock. The requirements being that I bring in X amount of business to convert my options to non expiring options which I can exercise any time. The total options would convert to 1% company equity. The company is a start-up that is growing fast with millions in sales & services.
I have never dealt with anything like this before so I am looking for some general advice on whether this is something I should consider. It seems fairly straightforward and I should be able to meet my obligations in order to get the options. What sorts of things could pop up in the contract that I should look out for? Is this a common way to grow a business? Any general advice here or questions I should be asking?
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