Common use of Payment of Option Price Clause in Contracts

Payment of Option Price. To exercise the Option, the Participant must pay the Option Price by one of the following methods: (1) (i) check or wire transfer, (ii) surrender of Common Stock that has been held by the Participant for at least six months, or (iii) a combination of both (i) and (ii); (2) subject to the prior written approval of the Committee, a recourse promissory note; or (3) subject to the prior written approval of the EVP HR, the administrator of the stock option program may pay the Option Price on behalf of the Participant subject to such terms and conditions as the administrator may impose. For purposes of an exchange of Common Stock in subsection (b)(1), above, the value of a share of Common Stock used to pay the Option Price shall be equal to the average of the high and low sales prices of shares of Common Stock traded on the New York Stock Exchange (or any other exchange or reporting system selected by the Committee) on the date the Option is exercised, or if there are no sales of Common Stock reported for that date, on the date or dates that the Committee determines, in its sole discretion, to be appropriate for purposes of valuation. The Participant may be charged an administrative fee or fees in connection with the exercise of the Option.