102 Stock Option – means a Stock Option that the Administrator intends to be a "102 Stock Option", which shall only be granted to Employees of the Company who are not Controlling Shareholders, and shall be subject to and construed consistently with the requirements of Section 102. The Company shall have no liability to a Participant or to any other party, if a Stock Option (or any part thereof), which is intended to be a 102 Stock Option, is not a 102 Stock Option. Approved 102 Stock Options may either be classified as Capital Gain Stock Options or as Ordinary Income Stock Options.
Each Option Agreement shall specifically state the type of Option granted thereunder and whether it constitutes a 102 Stock Option, 3(9) Stock Option, Incentive Stock Option, Nonqualified Stock Option or otherwise.
In the case of a 102 Stock Option, a 3(9) Stock Option or a Nonqualified Stock Option granted to any Grantee, the per Share exercise price shall be equal to the amount determined by the Committee or the Board, as the case may be, subject to all applicable law.
Award Shares shall not be issued pursuant to the exercise of an Award unless the exercise of such Award, the method of payment and the issuance and delivery of such Award Shares shall comply with Applicable Laws (i.e., for Incentive Stock Options, comply with Section 422 of the Code and for Non Trustee 102 Stock Option and Trustee Stock Options, comply with the Section 102) and shall be further subject to the approval of counsel for the Company with respect to such compliance.
Subject to Section 3 and to the foregoing, the Committee may reduce the Exercise Price of any outstanding 102 Stock Option, 3(9) Stock Option or Nonqualified Stock Option.
Each Option Agreement shall specifically state the type of Option granted thereunder and whether it constitutes a Incentive Stock Option, Nonqualified Stock Option, 102 Stock Option and the relevant track, 3(9) Stock Option, Incentive Stock Options or otherwise, and in the absence of such specification such options shall be deemed Nonqualified Stock Options.