Subject:   Question about NQ Stock Options
Date:   Fri, 03 Feb 2006
From:   Virginia

After our marriage, my ex-husband started to work at eBay. He was granted an NQO for 2,000 shares. The stock split, leaving an option for 4,000 shares. After the split, he sold 1,500 shares.

He should have options for 2,500 shares left, but his attorney is calculating the available shares to be 4,000 – 3,000 = 1,000 shares.

Shouldn’t the total number of shares be based on the sale transaction and not doubled?

Please advise. Thanks.

Answer

Date:   Wed, 08 Feb 2006

Hello Virginia,

It sounds like you and your husband’s attorney disagree about the facts of what happened. If the options weren’t exercised, eBay should know how many are left. That would be an easy way to confirm the balance.

If the options were exercised, your ex-husband should be able to show with his brokerage statements what the sequence of transactions was.

Good luck!

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Mike Gray