FRACTIONAL OPTION SHARES Clause Samples
The 'Fractional Option Shares' clause defines how a company handles situations where the exercise of stock options would result in the issuance of a fractional share. Typically, this clause specifies that instead of issuing partial shares, the company will either round down to the nearest whole share or provide a cash payment equivalent to the value of the fractional share. This ensures administrative simplicity and avoids complications associated with managing fractional ownership, thereby streamlining equity transactions and maintaining clarity in the company's share structure.
FRACTIONAL OPTION SHARES. The Company shall not be required to issue fractions of Option Shares upon exercise of this Option or to distribute certificates that evidence fractional Option Shares. All fractions of Option Shares to which Holder would otherwise be entitled shall be aggregated and in lieu of such remaining fractional Option Share, there shall be paid to Holder at the time this Option is exercised as herein provided an amount in cash equal to the stated fraction of the fair market value of an Option Share as determined in good faith by the Board of Directors of the Company.
FRACTIONAL OPTION SHARES. No fractional shares or scrip representing fractional shares of Common Stock shall be issued upon the exercise of this Option, but the Company shall issue one additional share of its Common Stock in lieu of each fraction of a share otherwise called for upon any exercise of this Option.
FRACTIONAL OPTION SHARES. Until the closing date of the IPO, LLC shall be required to transfer fractional Option Shares on the exercise of the Option. On or after the closing date of the IPO, if any fraction of an Option Share would, except for the provisions of this Section 4.05, be issuable on the exercise of the Option (or specified portion thereof), the number of shares to be transferred will be rounded up to the nearest whole number.
FRACTIONAL OPTION SHARES. 17 SECTION 4.06. Reservation of Option Shares.................................. 17 SECTION 4.07. Compliance with Law........................................... 17