Compensatory Stock Awards. Upon the commencement of your employment, the Board of Directors agrees to grant to you a stock option to acquire two hundred thousand (200,000) shares of the Company's common stock under the Company's 1989 Stock Option Plan (the "Option Plan"). In the event you are promoted to serve as the Company's Chief Executive Officer and you have completed at least twelve months of employment with the Company, the Board of Directors also agrees to grant to you, as soon as practicable following January 1, 1996, an additional stock option to acquire one hundred thousand (100,000) shares of the Company's common stock under the Option Plan. The exercise price per share of these options shall be equal to one hundred percent (100%) of the fair market value of the Company's common stock as determined under the Plan on the date of grant and in any case not to exceed $30.00 per share. Each option shall vest as to 24% of the shares subject to such option following twelve continuous months of service with the Company beginning on the date of grant (or in the case of your initial option, the day you start work with the Company) and as to an additional 2% for each subsequent month of completed service. Both of these options shall have substantially the same terms and conditions as provided in the standard forms of option agreement for options granted under the Option Plan, except as expressly provided in this agreement.
Compensatory Stock Awards. Subject to the Compensation Committee’s approval, on or as soon as administratively practicable following the Effective Date, (but in no event later than 30 days after the Effective Date), the Company will grant you an equity award to be valued at $1,600,000 on the date of grant, with the award divided by value into (i) 75% stock options, and (ii) 25% restricted stock units, each with respect to the Company’s common stock, par value $0.50 (the “Common Stock”), with such awards designed to qualify for either (a) the short term deferral exemption from Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) or (b) the exemption from Section 409A of the Code for certain stock options or other equity-based compensation. The value for the options will be determined using the Company’s standard Black-Scholes assumptions applied as of the date of grant and the value for the restricted stock units will be determined by dividing the target value for the restricted stock units by the Common Stock’s fair market value on the date of grant. The equity grants will either be under a Company equity plan or under a special arrangement for you (in any case, referred to as a “Stock Plan”). Assuming continued employment, the options under the grant will vest in equal amounts on an annual basis over a three year period following the date of grant (beginning with one-third on the first anniversary), and otherwise will contain the Company’s customary terms and conditions for such grants, except as modified by this Agreement. Assuming continued employment, the restricted stock units under the grant will vest in equal amounts on an annual basis over a four year period following the date of grant (beginning with 25% on the first anniversary) and otherwise will contain the Company’s customary terms and conditions for such grants, except as modified by this Agreement. The Compensation Committee at its sole discretion will consider the grant of additional compensatory stock awards to you.
Compensatory Stock Awards. Subject to the Compensation Committee’s approval, on or as soon as administratively practicable following the Effective Date, the Company will grant you an equity award to be valued at $1,200,000 on the date of grant, with the award divided by value into (i) 75% stock options, and (ii) 25% restricted stock units, the latter two with respect to the Company’s common stock, par value $0.50 (the “Common Stock”). The value for the options will be determined using the Company’s standard Black-Scholes assumptions applied as of the date of grant and the value for the restricted stock units will be determined by dividing the target value for the restricted stock units by the Common Stock’s fair market value on the date of grant. The equity grants will either be under a Company equity plan or under a special arrangement for you (in any case, referred to as a “Stock Plan”). Assuming continued employment, the options under the grant will vest in equal amounts on an annual basis over a three year period following the date of grant (beginning with one-third on the first anniversary), and otherwise will contain the Company’s customary terms and conditions for such grants, except as modified by this Agreement. Assuming continued employment, the restricted stock units under the grant will vest in equal amounts on an annual basis over a four year period following the date of grant (beginning with 25% on the first anniversary) and otherwise will contain the Company’s customary terms and conditions for such grants, except as modified by this Agreement. The Compensation Committee at its sole discretion will consider the grant of additional compensatory stock awards to you.
Compensatory Stock Awards. Subject to the Compensation Committee’s approval, on or as soon as administratively practicable following the Effective Date, the Company will grant you an equity award to be valued at $1,300,000 on the date of grant, with the award divided by value into (i) 75% stock options, and (ii) 25% restricted stock units, with respect to the Company’s common stock, par value $0.50 (the “Common Stock”). The value for the options will be determined using the Company’s standard Black-Scholes assumptions applied as of the date of grant and the value for the restricted stock units will be determined by dividing the target value for the restricted stock units by the Common Stock’s fair market value on the date of grant. The equity grants will either be under a Company equity plan or under a special arrangement for you (in any case, referred to as a “Stock Plan”). Assuming continued employment, the options under the grant will vest in equal amounts on an annual basis over a three year period following the date of grant (beginning with one-third on the first anniversary), and otherwise will contain the Company’s customary terms and conditions for such grants, except as modified by this Agreement. Assuming continued employment, the restricted stock units under the grant will vest in equal amounts on an annual basis over a four year period following the date of grant (beginning with 25% on the first anniversary) and otherwise will contain the Company’s customary terms and conditions for such grants, except as modified by this Agreement. The Compensation Committee at its sole discretion will consider the grant of additional compensatory stock awards to you.
Compensatory Stock Awards
