Unexercised Options. At the Effective Time, each outstanding stock option (an "Outstanding DSNC Option") under the Option Plan (as hereinafter defined in Section 2.2) shall be assumed by Tek. Each Outstanding DSNC Option shall thereafter be converted into an option, which option shall be deemed to be vested as of the Effective Time, to purchase the same number of shares of Tek Preferred Stock as such Outstanding DSNC Option would have been exchangeable for pursuant to Section 1.6 had such Outstanding DSNC Option been exercised prior to Closing. The exercise price for each such converted Outstanding DSNC Option shall be the quotient obtained by dividing the exercise price of such Outstanding DSNC Option by the following exchange rate: the number of shares of DSNC Common Stock that are issued and outstanding three (3) days prior to the Closing Date which are converted at the Effective Time into one share or Tek Preferred Stock in accordance with the Exchange Ratio.
Unexercised Options. All Unexercised Options previously granted to the Executive are forfeited, and the Executive shall have no further rights in such Unexercised Options.