Cashless Exercise Method Sample Clauses

Cashless Exercise Method. The Cashless Exercise Method allows you to exercise your Stock Options without paying out any cash of your own. That is why it is called "cashless." In effect, you pay the Option Exercise Price, required withholding taxes and other costs by using your "gain" -- the excess of the fair market value of the Delta common stock acquired on the date of exercise over the Option Exercise Price. There are two types of Cashless Exercises: Exercise and Sell; and Sell-to-Cover. - Under the Exercise and Sell Method, you instruct SSB to sell all shares of Delta common stock acquired from the exercise of your Stock Options. The proceeds of this sale will be used to pay the Option Exercise Price, required withholding taxes and other applicable costs. SSB will send you a check for the net proceeds. - Under the Sell-to-Cover Method, SSB will (1) estimate the number of shares of Delta common stock that needs to be sold to pay the Option Exercise Price, required withholding taxes and other costs; (2) sell on your behalf that estimated number of shares from the Delta common stock you are acquiring pursuant to the Stock Option exercise; and (3) use the proceeds from that sale to make the required payments. SSB will credit your brokerage account with the remaining shares of Delta common stock, and any remaining cash proceeds.