NEW PERFORMANCE OPTION Clause Samples

NEW PERFORMANCE OPTION. Effective as of the Effective Date, the Company shall also grant to Executive an option (the "New Performance Option") representing the right to purchase 665,000 shares of Company Common Stock. The New Performance Option shall be exercisable at an exercise price equal to the closing price of the Company Common Stock on the Effective Date. The New Performance Option shall become fully vested and exercisable on the eighth anniversary of the date of grant, and shall vest and become exercisable prior to such date upon the achievement of objective performance targets to be determined in accordance with this Section 3.3(b). As soon as reasonably practicable following the Effective Date, Executive shall propose to the Board objective performance targets, the achievement of which shall result in the vesting of the New Performance Option. The Board and Executive shall each negotiate in good faith and use their reasonable best efforts to mutually agree to the terms and conditions of the objective performance targets to be achieved, and the portions of the New Performance Option to be vested upon the achievement of such objective performance targets. The Board and Executive shall enter into such agreement not later than December 31, 1999 (or, if later, forty-five (45) days following the Effective Date), and such agreement shall provide that the objective performance targets are to be achieved during the period ending two (2) years from the date of such agreement.