Initial Phantom Option Grant Clause Samples

Initial Phantom Option Grant. Employer shall grant Employee, after the execution and delivery of this Agreement, phantom stock options representing the value of the right to acquire 100,000 shares of Employer’s stock at a strike price equal to the fair market of Employer’s common stock on the date of grant. The phantom stock options granted pursuant to this Agreement shall vest one-half (1/2) on the first anniversary of the Effective Date and 1/2 on the second anniversary of the Effective Date, conditioned on Employee’s continued employment with Employer. Employer retains the right, in its sole discretion, to convert the 100,000 phantom stock options granted pursuant to this Section 4.5(a) to 100,000 stock options granted pursuant to Employer’s 2002 Stock Incentive Plan, or such other arrangement that receives approval of the shareholders of Employer (the “Plan”), with such stock options having the same strike price as the phantom stock options granted pursuant to this Section 4.5(a).