Common use of Granting of Options Clause in Contracts

Granting of Options. The Committee may from time to time at its discretion, subject to the provisions of the Plan, determine those eligible individuals to whom Options will be granted, the number of Shares subject to such Options, the dates on which such Options are to be granted and the expiration of such Options. The Committee may, at its discretion, with respect to any Option, impose additional terms and conditions which are more restrictive on the optionee than those provided for in the Plan. Each Option will be evidenced by a written agreement between, and executed by, Summo and the individual containing such terms and conditions established by the Committee with respect to such Option and will be consistent with the provisions of the Plan. Options shall be granted to directors only according to the following formula: (i) Each director who was a member of the Board of Directors prior to January 1, 1996, shall upon adoption of this Plan be issued Options for that number of Shares necessary to bring the aggregate number of Shares underlying incentive options issued to such director to 150,000 Shares. The exercise price of such Options shall be determined as provided in Section 6 hereof. (ii) Each director who becomes a member of the Board of Directors after January 1, 1996, shall be granted Options for 50,000 Shares upon his or her election or appointment to the Board. The exercise price shall be determined as provided in Section 6 hereof. (iii) Upon the expiration date of any Options issued to a director (regardless of whether such Options were exercised on or prior to the expiration date), such director shall be issued Options for an additional 50,000 Shares. The exercise price shall be determined as provided in Section 6 hereof. The provisions of this paragraph (iii) shall also apply upon the expiration date of any other incentive stock options issued to a director if at the time of such expiration date, the director holds incentive options, including Options, for fewer than an aggregate of 50,000 Shares underlying such options, in which case the director shall be issued that number of Options necessary to bring the aggregate number of Shares underlying incentive options issued to such director at such time to 50,000 Shares. The calculation of incentive options held by any director shall not include any warrants to purchase Summo shares held by a director provided such warrants were issued by Summo in connection with securities offered by Summo. (iv) The foregoing formulas shall not be amended more than once every six months other than to comport with changes in the Internal Revenue Code, the Employee Retirement Income Security Act, or the rules thereunder. (v) Additional options may be granted to directors at the discretion of the Committee, provided that no director may receive additional options while serving on the Committee if the receipt of such options would cause him to cease to be a Disinterested Person.

Granting of Options. The Section 3.1 Eligibility Any key Employee, other than an Officer, shall be eligible to be granted Options under the Plan, as provided in Section 3.2. Section 3.2 Granting of Options (a) Upon the recommendation of the chief executive officer of the Company, the Committee may shall from time to time at time, in its absolute discretion, subject to the provisions of the Plan, determine those eligible individuals to whom Options will be granted, the number of Shares subject to such Options, the dates on which such Options are to be granted and the expiration of such Options. The Committee may, at its discretion, with respect to any Option, impose additional terms and conditions which are more restrictive on the optionee than those provided for in the Plan. Each Option will be evidenced by a written agreement between, and executed by, Summo and the individual containing such terms and conditions established by the Committee with respect to such Option and will be consistent with the provisions of the Plan. Options shall be granted to directors only according to the following formula: (i) Each director who was a member Determine which Employees are key Employees and select from among the key Employees (including those to whom Options have been previously granted under the Plan) such of the Board of Directors prior to January 1, 1996, shall upon adoption of this Plan them as in its opinion should be issued Options for that number of Shares necessary to bring the aggregate number of Shares underlying incentive options issued to such director to 150,000 Shares. The exercise price of such Options shall be determined as provided in Section 6 hereof.granted Options; and (ii) Each director who becomes a member Determine the number of the Board of Directors after January 1, 1996, shall shares to be subject to such Options granted Options for 50,000 Shares upon his or her election or appointment to the Board. The exercise price shall be determined as provided in Section 6 hereof.such selected key Employees; and (iii) Upon Determine the expiration date of any Options issued to a director (regardless of whether such Options were exercised on or prior to the expiration date), such director shall be issued Options for an additional 50,000 Shares. The exercise price shall be determined as provided in Section 6 hereof. The provisions of this paragraph (iii) shall also apply upon the expiration date of any other incentive stock options issued to a director if at the time terms and conditions of such expiration date, the director holds incentive options, including Options, for fewer than an aggregate of 50,000 Shares underlying such options, in which case consistent with the director shall be issued that number of Options necessary to bring the aggregate number of Shares underlying incentive options issued to such director at such time to 50,000 Shares. The calculation of incentive options held by any director shall not include any warrants to purchase Summo shares held by a director provided such warrants were issued by Summo in connection with securities offered by SummoPlan. (ivb) The foregoing formulas shall not Upon the selection of an Employee to be amended more than once every six months other than to comport with changes in the Internal Revenue Codegranted an Option, the Committee shall instruct the Secretary to issue such Option and may impose such conditions on the grant of such Option as it deems appropriate. Without limiting the generality of the preceding sentence, the Committee may, in its discretion and on such terms as it deems appropriate, require as a condition on the grant of an Option to an Employee Retirement Income Security Act, that the Employee surrender for cancellation some or all of the rules thereunder. (v) Additional options may be unexercised Options which have been previously granted to directors at such Employee. An Option the discretion grant of which is conditioned upon such surrender may have an option price lower (or higher) than the option price of the Committeesurrendered Option, provided that no director may receive additional options while serving on cover the same (or a lesser or greater) number of shares as the surrendered Option, may contain such other terms as the Committee if deems appropriate and shall be exercisable in accordance with its terms, without regard to the receipt number of such options would cause him to cease to be a Disinterested Personshares, price option period or any other term or condition of the surrendered Option.