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III. EMPLOYMENT CASES IN WHICH STOCK OPTIONS ARE AN ELEMENT OF DAMAGES
  A. Claims of Fraudulent Inducement
    1. These claims generally allege fraudulent or negligent inducement during the interview/hiring process by the offer of stock options that are not received upon hire or which vest on a schedule contrary to that promised to the prospective employee.
  B. Breach of Employment Contract and/or Breach of Stock Option Agreement
    1. These claims are generally based on the termination of the employment contract, resulting in the loss of future options and/or a forced early exercise of options within a defined period after termination, or a failure to honor the terms of a stock option agreement.
  C. Claims Arising From the Exercise of Options
    1. Disputes sometimes arise over whether the employee properly notified the employer of the exercise of options and/or whether the employer properly complied with the request.
  D. Wrongful Termination or Failure to Promote
    1. In such cases, the employee generally argues that he or she lost options that would otherwise have vested, were forced to exercise options early, and/or suffered the loss of the stock option appreciation as a result of the adverse employment action.
  E. Fall Out From Corporate Mergers or Acquisitions
    1. These cases generally involve a forfeiture of options as a result of the corporate transaction at issue.
  F. Disputes Involving "Claw-Back" Provisions
    1. "Claw-Back" provisions in stock option agreements generally provide that the optionee forfeits the proceeds of any stock options exercised within a defined period of time before leaving employment to work for a competitor.

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