Addendum to Nonqualified Stock Option Award Agreements under 2006 and 2014 Long-Term Incentive Plans
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Summary
This addendum notifies recipients of nonqualified stock options granted by the Company before March 4, 2019, that the terms of their outstanding, unexercised options have been modified to allow for net settlement starting April 1, 2019. Net settlement enables option holders to pay the exercise price by having shares withheld, rather than selling shares to cover the cost, which may reduce commission fees. Use of net settlement is optional, and all previous exercise methods remain available. The addendum applies only to options granted before March 4, 2019.
EX-10.4 5 a104_addendumxformxofxnqso.htm EXHIBIT 10.4 Exhibit
EXHIBIT 10.4
Addendum to Form of Nonqualified Stock Option Award
Pursuant to the 2006 and 2014 Long-Term Incentive Plan
For Awards Granted Prior to March 4, 2019
March 29, 2019
The Company has modified the terms of the unexercised and outstanding nonqualified stock options granted to you prior to March 4, 2019 to permit net settlement beginning April 1, 2019. Under the net settlement exercise method, shares of stock which would otherwise be delivered upon exercise are withheld to pay the exercise price of the option. Exercising using the net settlement method allows for fewer shares to be sold, as compared to the exercise and sell to cover method, typically resulting in lower sales commission fees. You are not required to use the net exercise method—the existing exercise methods under the applicable award documents remain available to you.
This notification is an addendum to your award documents for any such unexercised and outstanding options, and you should retain a copy of it for your records. Note, if you were granted nonqualified stock options on March 4, 2019, your award documents for that grant include net settlement provisions.
