Cashless Exercise Method definition
Cashless Exercise Method means the method by which Employee shall have the ability to receive shares upon exercise of his Stock Rights through the withholding from the common stock payable upon the exercise of the Stock Rights that number of shares which have a fair market value equal to the exercise price of such Stock Rights and the amount of such federal, state, and local taxes required to be withheld or collected with respect to the exercise of the Stock Rights, and as to which written notification is provided to Employee regarding the adoption, implementation and procedures applicable to such method.
Examples of Cashless Exercise Method in a sentence
As discussed below, there are currently three ways to exercise your Stock Options: the Cash Purchase Method; the Cashless Exercise Method; and the Share Tender Method.
To exercise your Stock Options using the Cash Purchase or Cashless Exercise Method, you must first open a brokerage account with SSB and then submit a Stock Option exercise request to SSB in accordance with its procedures.
The Cashless Exercise Method allows you to exercise your Stock Options without paying out any cash of your own.
If you use the Cashless Exercise Method, you must pay SSB a brokerage commission for selling shares of Delta common stock on your behalf and certain administrative charges.