Opinion ID: 3013985
Heading Depth: 2
Heading Rank: 3

Heading: Corporate Changes

Text: Effective December 31, 1996, CPF and MetPath, Moses’ employers under the 1994 Employment Agreement, ceased being subsidiaries of Corning. Under the explicit language of the agreements containing the option programs, Moses’ unexpired options to purchase Corning stock would have terminated on December 31, 1996. To alleviate this result, Corning, by two memos authored by A. John Peck and dated November 15, 1996 (“The Peck Memos”), notified the option holders that the options would not terminate but that the options would be “tied to future employment and will be forfeited if your employment with Quest Diagnostics (instead of Corning) is terminated for any reason after the [spin off].” App. at 105. The Peck Memos also explained changes in the number of options and the exercise price of those options due to changes in the number of Corning shares outstanding as a result of the spin off. Moses 5 admits that he received these memos and he signed and returned the accompanying consent form. Moses’ 1994 Employment Agreement expired on May 25, 1997. By the terms of the various stock option agreements and by the terms of the Peck Memos, the options terminated as of that date. Moses then entered into negotiations with Kurt Fischer to arrange the terms of his departure. These negotiations ran until November when an agreement was reached. In a letter dated March 26, 1999, Moses attempted to exercise the remaining options, which, as a result of the adjustments described in the Peck Memos, were now to purchase 5,989 shares of Corning stock. He tendered the amount of $141,878.05 but was notified by Peck that his options had expired. Moses then brought this action to recover damages caused by Corning’s alleged wrongful action in denying his exercise of the options.