KLA-Tencor Violates 409A; Takes Charge Relating to Backdating; Reimburses Employees for 409A Penalties

KLA-Tencor takes big charge relating to backdating stock options, reimbursing employees for 409A penalty taxes, and related costs.

Press Release (see footnotes)

Stock option backdating; $65 million payout; $400 million in restatements.

Tender Offer to replace bad options

CFO Resigns

Tech Blogger Relentlessly Discusses 409A

Widely-read technology blogger, Brad Feld, has been blogging relentlessly about 409A for years. His blogs provide great insight about how 409A is having a real effect on technology and start-up companies.

His Post About 409A Dismay

409A Humor

Much appreciated 409A humor from Kevin B. Segal.

$50 Million in 409A Additional Taxes Incurred by Lam Research

http://www.bizjournals.com/eastbay/stories/2008/03/31/daily19.html

Lam (NASDAQ: LRCX) expects to record cash expenses for the quarter ended in March of $50 million to $55 million "to assume responsibility for the 409A tax liabilities of employees."

Lam Research 8-K

Lam Research Tender Offer to Optionees