If You Agree That Stock Issuance Was Not "Compensation, Salary, Or Income", You May Want To Think Carefully Before Issuing A Form 1099
By EsqSocial Corporation 24/04/25
Ten years ago, Hovik Nazaryan sued Femtometrix, Inc. claiming that the company had issued shares to him than it had promised. The parties settled the lawsuit. The settlement agreement provided that the stock issued to Mr. Nazaryan "is not ‘compensation,’ ‘salary,’ or ‘income’ for services performed by [Nazaryan]." The settlement agreement further provided "The Settlement Stock, and any other stock issued by way of this Agreement, is being provided to [plaintiff] as ‘Founder’s Stock’ for his...
By: Allen Matkins