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Litigation Over Unexercised Options that Expired
Winston & Strawn LLP Link to more items from this source
Feb. 8, 2012

Regardless of the outcome of [recent] cases, the moral(s) of the story for companies are as follows: (1) Address option expiration issues and blackout period in the plan or award agreement. Even Code Section 409A allows an option period to be extended during a blackout period. (2) Clearly communicate the expiration and other terms of equity awards with terminating employees. (3) Take extra care in drafting the plan and agreement terms governing employment termination, vesting, forfeiture and expiration.

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