Definition of the Option and Option Exercise Price Sample Clauses

Definition of the Option and Option Exercise Price. The "Option" is the option of each Key Employee to sell to the Buyer the entire right, title and interest of that Key Employee in and to all (but not less than all) of the KE Partnership Interest of that Key Employee, as that term is defined in the New Partners Agreement, in consideration for the payments described below in this Section 10 by Buyer and Newmark: (a) For each of the two Calculation Years beginning on January 1, 1998, and ending on December 31, 1999: (i) the amount equal to 1.98% of the Net Income, as defined in Section 2.2(b), for the respective Calculation Year; plus (ii) $200,000; if Cumulative Net Income (as determined in accordance with the provisions of Section 2.2(b)) has been achieved, or if the last sentence in Section 2.2(b)(1) with respect to such Calculation Year applies; plus (iii) an amount equal to the interest rate calculated, during the calculation period commencing on April 30, 1999 and continuing through the date or dates of payment of the sums due under this Subsection 10.2(a), on the sum of the amounts determined under Sections 10.2(a)(i) and (ii) for the Calculation Year beginning on January 1, 1998 and ending December 31, 1998, at the lowest federal mid-term rate under Section 1274 of the IRC that is effective on April 30, 1999. (b) For each Calculation Year commencing after December 31, 1999 and ending December 31, 2002: (i) the amount equal to 2.00% of the Net Income for the respective Calculation Year; plus (ii) $200,000 if Cumulative Net Income (as determined in accordance with the provisions of Section 2.2(b)) has been achieved, or if the last sentence in Section 2.2(b)(1) applies to such Calculation Year.