Common use of Minimum Share Ownership Requirement Clause in Contracts

Minimum Share Ownership Requirement. (a) If the Director owns fewer than 4,000 shares of Common Stock as of the date of this Agreement, the Director must retain ownership of at least 600 of the Awarded Shares, once vested, until the date that the Director owns at least 4,000 shares of Common Stock. Following the date that the Director owns at least 4,000 shares of Common Stock, the Director shall not be required to retain any of the Awarded Shares, once vested, so long as the Director at all times thereafter continues to own at least 4,000 shares of Common Stock during the period that he or she is a director of Calavo. Awarded Shares that are owned by the Director shall be counted toward the satisfaction of the share ownership requirement that is described in this Section 5(a) and in Section 5(b) below, but shares of Common Stock that may be acquired by the Director upon the exercise of a stock option shall not be treated as being owned by the Director for purposes of the satisfaction of the share ownership requirement until the stock option is exercised.