Stock-for-Stock Exercise definition

Stock-for-Stock Exercise means the exercise by a Participant of an Eligible Stock Option by actually delivering to the Company whole shares of Stock with a Fair Market Value on the date of exercise equal to the aggregate exercise price of the Eligible Stock Option in the manner contemplated by the Internal Revenue Service's Revenue Ruling 80-244. If the aggregate exercise price would require the payment of a fractional share, such fractional share shall be paid in cash and not in Stock. Stock used for this purpose shall be either (i) Stock which was not acquired by the Participant from the Company, with a loan or other extension of credit by the Company or otherwise in a transaction involving the Company, or (ii) Stock acquired by the Participant in a transaction involving the Company and which has been held by the Participant for a period of more than six (6) months prior to the date of exercise; provided, however, that if the Participant delivers to the Company Stock acquired through the exercise of an "incentive stock option" as defined in Section 422 of the Code, such Stock shall have been held by the Participant for a period of more than (i) twenty-four (24) months after the date on which such incentive stock option was granted to the Participant and (ii) twelve (12) months after the date on which such incentive stock option was exercised by the Participant.
View Source
Stock-for-Stock Exercise means the exercise of a Stock Option in the manner described in Section 3.4.
View Source
Stock-for-Stock Exercise means the payment of the exercise price of the Eligible Stock Option with Common Stock owned by the Participant for at least six months (and for which the Participant has good title free and clear of any liens and encumbrances and has represented that he has owned the shares of Common Stock for at least six months) based on the fair market value of the Common Stock on the exercise date. The Committee (or its delegate), in its sole discretion, shall determine whether payment of the exercise price of the Eligible Stock Option with Common Stock may be accomplished through attestation or by physical tender of the shares.
View Source

Examples of Stock-for-Stock Exercise in a sentence

  • Purchaser hereby delivers payment of the Exercise Price: [ ] in cash (by check) in the amount of $_________, receipt of which is acknowledged by the Company; [ ] by a broker assisted cashless exercise procedure that has been approved by the Company; [ ] by tender (including by attestation) of _______ shares of the Company's Common Stock that has been owned for at least six months in a Stock-for-Stock Exercise, subject to pre-approval by the Administrator, in its sole discretion.

  • In a Stock-for-Stock Exercise, in lieu of actually surrendering to the Company a certain number of Payment Shares, the Exercising Person may elect to submit to the Company a statement affirming ownership by Optionee of such number of shares and request that such shares, although not actually surrendered, be deemed to have been surrendered by the Exercising Person to the Company in payment of the exercise price (any such payment, a "Deemed Payment").

  • In the event that the holder of the Option intends to exercise the Option, in whole or in part, in a Stock-for-Stock Exercise, Optionee may request, prior to such exercise, that the Committee award Optionee a Reload Option, as defined below, upon such exercise, and the Committee, in its sole discretion, will determine whether or not to do so.

  • Any shares surrendered in payment of the exercise price in a Stock-for-Stock Exercise ("Payment Shares") shall be valued at the fair market value thereof, (determined as provided in the Plan) on the Exercise Date.

  • Payment shall be in cash or, if authorized by the committee of the Board of Directors of the Company that administers the Plan (the "Committee"), may be made at the discretion of the Exercising Person in whole or in part by surrender to the Company of shares of Common Stock owned by Optionee and acceptable to the Committee (a "Stock-for-Stock Exercise").