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biomaven0

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biomaven0

Re: LongRun8 post# 175209

Saturday, 03/08/2014 9:47:25 PM

Saturday, March 08, 2014 9:47:25 PM

Post# of 253650
Granting options while the company is in the possession of material positive information is called spring-loading.

The SEC doesn't prohibit it, but some courts have held that it could be a deceptive practice:

The Delaware Court of Chancery Speaks on Option Backdating and Spring-Loading

http://www.gelaw.com/wp-content/uploads/2011/05/ART_016A_de_court_speaks.pdf

Best practice is to award stock options on pre-determined dates (whether annually or quarterly).

Peter

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