Legal Question in Business Law in Florida

Re: Can I be forced to exercise stock options?

Well, because of the mechanics of LawGuru, your question was just posted (6/5) so my input may be of limited use. However, here are my thoughts.

The fact that the stock is not listed on an exchange (and probably is not SEC registered) does not prevent the company from selling it to you through exercise of stock options or otherwise provided the company is doing so in (proper) relaince on one of the several exemptions available. If you were an insider and your stock option plan stated that you were acquiring the stock as an investment, etc. etc., and not with the intent of resale, they are probably in compliance.

Next, you need to be sure of the precise terminology the company used. Were they telling you that you had to exercise the options or lose them, or were they telling you that you must purchase (pay for) some options that were not fully vested at the time of your layoff?

If you resigned or were fired for cause, it is perhaps more likely that you would be forced to exercise. If it was a layoff because of force reduction, perhaps they were not requiring you to EXERCISE the options, but only to PURCHASE some not-yet-vested options.

Finally, you need to read all of the promotional material and disclosures the company gave you. You probably were required to sign a contract regarding plan participation. Often there are several documents an option grantee has to sign to participate. Read them carefully; they delineate your rights.

Finally, if you think you were wronged, see a securities lawyer. Florida law will probably govern, especially if you signed the agreements and were employed in Florida.