Common use of Share Grant Clause in Contracts

Share Grant. Employee will be entitled to receive an amount equal to the excess of the "fair market value" (as defined in the 2001 Plan) of a share of Common Stock on the Effective Date and $22, multiplied by 1,000,000. Such amount shall be payable in five installment payments as of each anniversary of the Effective Date occurring during the Term in the form of a direct grant of shares of Common Stock, the number of which is determined by dividing the annual installment payment by the fair market value of a share on the applicable anniversary date, rounded down to the nearest whole share. Notwithstanding the foregoing, the first installment payment shall be payable on the day following the first anniversary of the Effective Date. As of the Effective Date, the Company and Employee shall enter into a registration rights agreement, substantially in the form attached hereto as Exhibit B.