Common use of Cash Payment Election Clause in Contracts

Cash Payment Election. Effective on the Hold Period Expiration Date, the Director may elect to receive either 22% or 37% of the fair market value of the aggregate number of shares of Common Stock to be delivered to the Director on the Hold Period Expiration Date in cash, with the remainder paid in shares of Common Stock. Example: • assume that on the Hold Period Expiration Date, the Director will be entitled to receive 2,000 shares of Common Stock, • assume that the 2,000 shares have an aggregate fair market value of $200,000 (2,000 times an assumed $100.00 FMV per share on the Hold Period Expiration Date), and the Director has made an election to receive up to 22% in cash, • maximum cash is $44,000 ($200,000 times 22%), • on the Hold Period Expiration Date, the Director will receive: (a) 1,560 shares of Common Stock ($200,000 times 78% = $156,000, divided by $100.00 FMV/sh = 1,560 shares), (b) cash in the amount of $44,000, and (c) cash in an amount equal to the cash value of the Dividend Equivalent Award.

Cash Payment Election. Effective on the Hold Period Expiration Date, the Director may elect to receive either 22% or 37% of the fair market value of the aggregate number of shares of Common Stock to be delivered to the Director on the Hold Period Expiration Date in cash, with the remainder paid in shares of Common Stock. Example: • assume that on the Hold Period Expiration Date, the Director will be entitled to receive 2,000 1,750 shares of Common Stock, • assume that the 2,000 1,750 shares have an aggregate fair market value of $200,000 175,000 (2,000 1,750 times an assumed $100.00 FMV per share on the Hold Period Expiration Date), and the Director has made an election to receive up to 22% in cash, • maximum cash is $44,000 38,500 ($200,000 175,000 times 22%), • on the Hold Period Expiration Date, the Director will receive: (a) 1,560 1,365 shares of Common Stock ($200,000 175,000 times 78% = $156,000136,500, divided by $100.00 FMV/sh = 1,560 1,365 shares), (b) cash in the amount of $44,00038,500, and (c) cash in an amount equal to the cash value of the Dividend Equivalent Award.