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Lesson 16. Frequently Asked Questions > Vesting Issues - Pg. 83

Frequently Asked Questions 83 Some plans may allow vesting to continue during this period, while other plans do not. Almost all companies consider your employment terminated when you are completely disabled. Companies often use the definitions from their insurance plans to specify what a complete disability is. Tip Companies are more generous with disabled former employees regarding how long they will allow you to wait before exercising. The options plan may have different rules for nonqualified stock options and incentive stock options. This is another good reason to keep a copy of the options grant in a safe place with your will and other important papers. Bought and Sold What happens if you wake up one morning to find that another company has bought your employer? You will have a lot of questions about your benefits. Following are some questions and answers about your options. Question: What happens to my options if another company buys my employer? Answer: That depends on many factors, but you might get options on the acquiring company stock in exchange or you might get cash for your existing vested options. Unvested options are almost always canceled. It will be up to the new owner to either continue the options' grants or not. Question: What are the tax consequences on my options of another company buying my company?