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Date:   Thu, 06 Apr 2006
From:   Horace

Mr. Gray,

I was laid off from a high tech company in December, 2002. I never exercised options granted during 2000 and 2002. Can I still exercise them, or were they cancelled?

Thanks in advance,
Horace

Answer

Date:   Wed, 14 Jun 2006

Hello Horace,

You need to talk to the people at the company responsible for administering the employee stock option plans. Most options lapse shortly after leaving an employer, but some don't. Also, look at the option agreement paperwork you received when the options were granted. You should find the answer in the agreement.

Good luck!

Mike Gray

For more information about incentive stock options, request our free report, Incentive Stock Options - Executive Tax and Financial Planning Strategies.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.