The employee needed more cash to 1) exercise the options, and 2) pay the taxes on the income from the discount of the option. They weren't able to exercise at a

The employee needed more cash to 1) exercise the options, and 2) pay the taxes on the income from the discount of the option. They weren't able to exercise at all without this extra money, so they necessarily need either immediate income or a loan. Also, private companies typically restrict an employee from transferring their stock. That's why employees are stuck waiting on an IPO, acquisition, etc. in the first place.