Quiz
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A
Anti-Alienation Provision
A restriction in a stock plan that prohibits the transfer of vested or unvested grants to a third party. For example, the stock plan may prohibit the transfer of stock options or restricted stock to creditors or, in a divorce, to the nonemployee-spouse. This type of stock plan clause is not required by ERISA, though ERISA does have specific anti-alienation requirements for tax-qualified retirement plans (e.g. 401(k) plans).
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