Memo to SpinCo Employees Explaining Effect of Spin-Off on Equity Compensation Awards (Portfolio Approach) | Practical Law
A sample memorandum to explain to employees of a spun-off entity the implications of the spin-off on the employees' outstanding equity compensation awards. This memorandum assumes the parent company and spun-off entity are following the portfolio approach, meaning equity compensation awards are converted into equity compensation awards covering both the parent company and the spun-off entity. This Standard Document has integrated notes with important explanations and drafting tips.