Amendment No. 2 to Walgreen Co. Nonemployee Director Stock Option Plan

Contract Categories: Business Finance › Stock Agreements
Summary

This amendment updates Section 10.7 of the Walgreen Co. Nonemployee Director Stock Option Plan. It clarifies how the plan will adjust the number and price of stock options and deferred stock units if there are changes in the company's capitalization, such as stock splits, mergers, or reorganizations. The goal is to ensure that participants' rights are not diluted or unfairly increased due to such corporate events. The committee overseeing the plan will make these adjustments, and its decisions are final.

Read More Arrow
EX-10.6 7 ex10f.htm NONEMPLOYEE DIRECTOR STOCK OPTION AMENDMENT Nonemployee Director Stock Option Amendment
Exhibit 10(f)

AMENDMENT NUMBER TWO TO THE WALGREEN CO. NONEMPLOYEE DIRECTOR STOCK OPTION


Effective October 11, 2006, Section 10.7 of the Plan is amended in its entirety to read as follows:

"10.7 Changes in Capitalization. In the event of any change (increase or decrease) in the outstanding shares of the Company by reason of a stock dividend, recapitalization, merger, consolidation, stock split, split up, spin off, combination or exchange of shares, reorganization, liquidation, or other change in corporate capitalization, the aggregate number and class of Shares available under this Plan and the number and unit price of Deferred Stock Units that are outstanding under the Plan shall be appropriately and proportionately adjusted by the Committee to prevent dilution or enlargement of rights and preserve the value of outstanding awards; provided that fractional Shares shall be rounded to the nearest whole Share. The Committee’s determination shall be final and conclusive."