Exercise Loan definition
Examples of Exercise Loan in a sentence
Those terms and provisions as the Board or the Committee shall determine shall be incorporated into the promissory note evidencing the Option Exercise Loan.
The term of the Option Exercise Loan shall be a period not to exceed ten years, as determined by the Board or the Committee, and the proceeds of the Option Exercise Loan shall be used exclusively by the Optionee for purchase of Shares from the Company at a purchase price equal to the option price set forth in the Optionee's Share Option Agreement.
The Company shall release and deliver to each Optionee certificates for the Shares purchased by the Optionee with an Option Exercise Loan and then held by the Company at such time as the Optionee has paid or otherwise satisfied in full the balance of the Option Exercise Loan and any accrued but unpaid interest thereon.
An Option Exercise Loan shall bear interest at such rate as the Committee shall determine (but not in excess of the maximum rate permissible under applicable law), payable in a manner and at such times as the Committee shall determine.
Each Option Exercise Loan shall be evidenced by a promissory note of the Optionee.
The share certificates for the Shares purchased by an Optionee with an Option Exercise Loan shall be issued in the Optionee's name, but shall be held by the Company as security for repayment of the Optionee's Option Exercise Loan together with a stock power executed in blank by the Optionee (the execution and delivery of which by the Optionee shall be a condition to the issuance of the Shares).
On each anniversary date of an Option Exercise Loan, the Company may release and deliver to each Optionee certificates for Shares purchased by an Optionee with an Option Exercise Loan, in such amounts and on such terms and conditions as the Board or the Committee shall determine, which shall be set forth in the Option Exercise Pledge Agreement.
The Option Exercise Loan shall be secured by a pledge of the Common Stock received upon exercise of the Option (the "Pledged Shares") and shall contain customary terms and conditions assuring the repayment of the Option Exercise Loan from any proceeds of the sale of the Pledged Shares.
The Board or the Committee may determine that an Optionee may pay all or a portion of the purchase price of Shares being purchased by an Optionee pursuant to the exercise of an Option through a loan made by the Company to the Optionee (an "Option Exercise Loan") as set forth in this Article 4.
The Company maintains the Stock Option Exercise Loan Program under which holders of exercisable stock options may obtain interest-free and interest-bearing loans from the Company to facilitate their exercise of stock options.