3 ms·
Happens all the time, let's say as in this example: 1. initial stock agreement promises acceleration of vesting upon acquision. 2. later on, an acquirer comes
by sgustard 12y ago
Happens all the time, let's say as in this example:
1. initial stock agreement promises acceleration of vesting upon acquision.
2. later on, an acquirer comes along. They want the employees to stay. So, their merger agreement nullifies the stock provision and issues new stock with reset vesting. Don't like it? Don't accept the acquisition, but you can't pretend that your initial contract is going to help you any.
- bsder 12y ago> Don't like it? Don't accept the acquisition, but you can't pretend that your initial contract is going to help you any. Not true, actually. The acceleration occurs before the acquisition. You are now a minority shareholder with a dissident vote--most states have corporation law provisions for making sure that minority, dissident shareholders are statutorily required to be paid fair market value for their shares. The acquiring company is required to buy you out, and the acquisition price establishes a de facto fair market value.