Can my non-qualified stock options be taken away?
July 20, 2001
Subject: NQSO question
Date: Tue, 29 May 2001
I have a question about NQSOs. Back in March, the company I worked for granted me a few shares of NQSOs as a method of compensation for underwater strike prices of my original ISOs. I have since been laid off from the company and none of my options have vested. In my severence letter, it stated that any unvested stock options would not be retained, but can they retract the NQSOs? Since those could be issued to a non-employee, it seems that they could still be completely valid even though I haven’t hit the vesting date yet. Can you help explain this to me?
Date: Mon 9 Jul 2001
I’m not sure why you are confused.
Different non-qualified stock options can have different terms. Not all of them have a vesting schedule, but yours did.
You didn’t fulfill the service requirements under your vesting schedule, so your options lapsed.
Read your option agreement carefully for any exceptions to the vesting requirements in the event of early termination.