1/11/2006: Further IRS Guidance on 409A with IRS Notice 2006-4 (Orrick, Herrington & Sutcliffe LLP)

Excerpt: On December 23, 2005, the Internal Revenue Service issued Notice 2006-4. Notice 2006-4 provides transition relief from the valuation rules applicable to private company stock option and stock appreciation rights ('Stock Rights'). Notice 2006-4 will be applicable until the effective date of the final regulations under Section 409A (which are expected to become effective on January 1, 2007).