Hii Leetcode Community
I have doubt regarding how ESOPS work .

What I understood is that a company allocates option to buy some shares on a pre determined price.

Like if they give 10k shares each having exercise price 100 vested for 1 year. So after one year , we will have an option to buy share at that price that is 100 even though whatever the current value of that share is and also we need to pay taxes according to fair market value of that shares at present.

Now my doubt is that if someone gave you a 20 lakhs base + 10 lakhs esops vested for one year. After one year there value become 15 lakhs.
Now what it means ? That after one year I have to pay 10 lakhs from my pocket to exercise those options into share?? and taxes on 15-10 =5 lakhs according to tax bracket.
Or company has given me the 10 lakhs esops , I am only required to pay taxes only when I exercise them after my vesting period gets over.

Thank you for your time .......