Formula Option definition
Examples of Formula Option in a sentence
Formula Options shall be subject to such additional terms as may be set forth in a Non-Qualified Formula Stock Option Agreement (the "Formula Option Agreement") complying with Section 5 hereof, approved by the Committee and used to evidence the grant of a Formula Option.
Notwithstanding any other provision of this Plan, the provisions of this Section 7 and of the Formula Option Agreement may not be amended more than once every six months, other than to conform it with changes in the Code, the Employee Retirement Income Security Act of 1974, or any rules promulgated under either of the foregoing.
Each holder shall, prior to the exercise of an Option or Formula Option, deliver to the Company such information, representations and warranties as the Committee may reasonably request in order for the Committee to be able to satisfy itself that the Shares to be acquired pursuant to the exercise of an Option or Formula Option are being acquired in accordance with the terms of an applicable exemption from the securities registration requirements of applicable federal and state securities laws.
Notwithstanding anything to the contrary herein, the Committee may in its sole discretion disapprove and give no effect to any Withholding Election for an Option or Formula Option and no Option or Formula Option to which any Withholding Election relates may be exercised prior to one year after the Company has been subject to the reporting requirements of Section 13 of the Exchange Act and has filed all reports and statements required to be filed pursuant to that Section during that year.
The Committee may provide in any Option or Formula Option, as the case may be, which it grants that a condition to the exercise of such Option or Formula Option, as the case may be, shall be the grantee's agreement to remain an employee of and/or to otherwise render services to the Company or any of its Subsidiaries for a specified period of time following the date of grant.
A holder of an Option or Formula Option may purchase Shares pursuant thereto only upon receipt by the Company of a notice in writing from such holder of his intent to purchase a specific number of Shares, which notice contains such representations regarding compliance with the federal and state securities laws as the Committee may reasonably request.
Except as Section 5 of this Plan permits or the terms of the Option or Formula Option Agreement permit, no Option or Formula Option or any of the rights and privileges thereof accruing to an optionee shall be transferred, assigned, pledged or hypothecated in any way whether by operation of law or otherwise, and no Option or Formula Option, or right or privilege shall be subject to execution, attachment or similar process.
No Option or Formula Option shall be exercisable prior to the receipt of such shareholder approval.
Until the Option or Formula Option has been exercised and payment of the exercise price for, and any withholding tax obligations with respect to, all Shares purchased pursuant to the exercise of the Option or Formula Option has been received by the Company in accordance with the terms of the applicable Agreement or Formula Option Agreement, the holder shall have no rights as a shareholder with respect to the Shares the Option or Formula Option covers.
If any Option or Formula Option is cancelled, expires or terminates without the respective optionee exercising it in full, the Committee may grant Options with respect to those unpurchased Shares to that same optionee or to another eligible individual or individuals.