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Change in Control Question


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Guest Guy Incognito
Posted

Company X and Company Y decide to combine under a new Holding Company. Holding Company acquires both Company X and Company Y via a share exchange. After the acquisition, Company X shareholders hold 70% of Holding Company and Company Y shareholders hold 30% of Holding Company.

Company X executives vest in certain benefits upon a CIC as defined under 409A. Has Company X experienced a CIC under 409A?

Given the stock attribution rules of 318(a), I am inclined to say no, but was looking for some feedback.

Posted

That happened at my firm, and our counsel said it wasn't a CIC.

 - There are two types of people in the world: those who can extrapolate from incomplete data sets...

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