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Underwater Stock Options

Underwater Stock Options. Mark Poerio - of - The Paul Hastings Law Firm (Washington, DC 202.508.9582). Underwater Stock Options:. How to Recover Without –. Underwater Stock Options:. How to Recover Without – * Violating the Securities Laws. Underwater Stock Options:.

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Underwater Stock Options

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  1. Underwater Stock Options Mark Poerio - of - The Paul Hastings Law Firm (Washington, DC 202.508.9582)

  2. Underwater Stock Options: How to RecoverWithout –

  3. Underwater Stock Options: How to RecoverWithout – * Violating the Securities Laws.

  4. Underwater Stock Options: How to RecoverWithout – * Violating the Securities Laws. * Creating Accounting Disasters.

  5. Underwater Stock Options: How to RecoverWithout – * Violating the Securities Laws. * Creating Accounting Disasters. * Triggering Tax Problems.

  6. Alternative #1 Veneer: Grant more options

  7. Alternative #1 Veneer: Grant more options Art: Strings! Biz Goals

  8. Alternative #1 Veneer: Grant more options Art: Strings! Sunsets Biz Goals

  9. Better Wood?

  10. Alternative #2 Cancellation Program:

  11. Alternative #2 Cancellation Program: Either New grants in 6 months

  12. Alternative #2 Cancellation Program: or Restricted Stock Now

  13. Alternative #2 Example: Restricted Stock 100K underwater options. 10% exchange ratio. $4 per share current FMV. 20% vesting for 5 years.

  14. Vesting: Best Practice * Longer Years of Service * Performance Accelerates

  15. Vesting: Best Practice * Longer Years of Service * Performance Accelerates Golden Parachute!

  16. Deferred Share Twist * Vesting ~ Restricted Stock * Better Golden Handcuff

  17. Deferred Share Twist * Vesting ~ Restricted Stock * Better Golden Handcuff Director Fees/ Retainers

  18. Conclusions Manage Financial Expense Craft Terms of New Awards

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