Legal Question in Employment Law in California
Vesting of Stock for Terminated Employee
On August 1st, I was terminated from a hi-tech software company that went public in March of 2000. I came to this company by way of an acquisition in Nov. '99. My 25,000 options were to vest over a three year period 12/36th after year one, 12/36th after year two...
The clock began ticking at the time of the acquistion (nov. '99). Based on this, no options are due.
My stock plan does include an "acceleration" clause (only those with acquired company have this clause): "1/3 of the total number of shares granted shall be vested in full and immediately exercisable if optionee is terminated without "cause" (cause defined herein to mean ...breach of employment agreement...willful misconduct....felony...fraud...).
I was terminated (along with the President of Sales, VP of Sales, in the West, Asia, and Europe) for not meeting the expectations of the ceo.
What do you think???
1 Answer from Attorneys
Re: Vesting of Stock for Terminated Employee
Is not meeting the expectations of the CEO good cause? It's impossible to answer this question without reviewing the paperwork including the agreement, a memo of what happened, etc. A lot will depend on the definition of good cause. If you worked in LA or Ventura Counties and would like to discuss further, call my office at 818-990-1340.
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