Treatment of Outstanding Director Stock Options Clause Samples

Treatment of Outstanding Director Stock Options. (i) Immediately prior to the Effective Time, each Leidos Option held by any Leidos Director (a “Director Option”) shall be deemed bifurcated into two options, the first (a “New SAIC Director Option”), representing the right to purchase a number of shares of New SAIC Common Stock calculated by multiplying (A) the number of shares subject to the Director Option by (B) the New SAIC Value Ratio, and with an exercise price equivalent to the exercise price of the Director Option and the second (an “Adjusted Leidos Director Option”), representing the right to purchase a number of shares of Leidos Common Stock calculated by multiplying (A) the number of shares subject to the Director Option by (B) the Leidos Value Ratio, and with an exercise price equivalent to the exercise price of the Director Option. (ii) At the Effective Time, each Adjusted Leidos Director Option shall be adjusted in the same manner as the Leidos Options as set forth in Section 4.3(b)(i), and each New SAIC Director Option shall be adjusted in the same manner as the New SAIC Employee Options as set forth in Section 4.3(b)(ii).