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STOCK OPTION CHECKLIST

In a typical stock option program, there are three sources of loss on employment termination:

  1. Acceleration of expiration dates for options currently held
  2. Forfeitures, in full or part, of currently held options that are not completely vested
  3. Loss of future options that are anticipated from the employer.

In order to properly value all the elements of this category of loss, the following items are needed:

  1. Documentation of the stock option program, including expiration dates and vesting schedule
  2. Three year history of actual options received from the employer
  3. A recent valuation statement of current options held
  4. Any additional information regarding the continuation of the option program or estimated size of option grants awarded to remaining employees subsequent to the employment termination.


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