Exercise Loan definition

Exercise Loan means a loan made by the Company or a Subsidiary to a Participant under Rule 10 for the purpose of acquiring a Share by the exercise of an Option.
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Examples of Exercise Loan in a sentence

  • In addition, the Corporation shall at the same time lend to the Participant (an "Option Exercise Loan"), without the payment of any interest, the other one-half of the taxes payable with respect to the amount includible in income as a result of such exercise.

  • The term of the Option Exercise Loan shall be a period not to exceed ten years, as determined by the Board or the Committee, and the proceeds of the Option Exercise Loan shall be used exclusively by the Optionee for purchase of Shares from the Company at a purchase price equal to the option price set forth in the Optionee's Share Option Agreement.

  • Each Option Exercise Loan shall be evidenced by a promissory note of the Optionee.

  • The Company shall release and deliver to each Optionee certificates for the Shares purchased by the Optionee with an Option Exercise Loan and then held by the Company at such time as the Optionee has paid or otherwise satisfied in full the balance of the Option Exercise Loan and any accrued but unpaid interest thereon.

  • In the event the balance of the Option Exercise Loan is not repaid, forgiven or satisfied on (i) the date repayment of the Option Exercise Loan is due (whether in accordance with its term, by reason of acceleration or otherwise), or (ii) such later date as the Board or the Committee, in its discretion, shall provide for repayment or satisfaction, the Company shall foreclose upon, retain or sell those Shares then held by the Company in accordance with the Option Exercise Pledge Agreement.

  • An Option Exercise Loan shall bear interest at such rate as the Committee shall determine (but not in excess of the maximum rate permissible under applicable law), payable in a manner and at such times as the Committee shall determine.

  • The interest on an Exercise Loan shall equal the applicable federal interest rate as set forth in Section 1274(d) of the Code at the time such Exercise Loan is made to the Optionee.

  • On each anniversary date of an Option Exercise Loan, the Company may release and deliver to each Optionee certificates for Shares purchased by an Optionee with an Option Exercise Loan, in such amounts and on such terms and conditions as the Board or the Committee shall determine, which shall be set forth in the Option Exercise Pledge Agreement.

  • Those terms and provisions as the Board or the Committee shall determine shall be incorporated into the promissory note evidencing the Option Exercise Loan.

  • The Option Exercise Loan shall be secured by a pledge of the Common Stock received upon exercise of the Option (the "Pledged Shares") and shall contain customary terms and conditions assuring the repayment of the Option Exercise Loan from any proceeds of the sale of the Pledged Shares.