Exercise of Option Clause Example from Business Contracts

Exercise of Option. (a) Right to Exercise. This Option shall be exercisable during its term in accordance with the Vesting Schedule set out in the Notice of Grant and with the applicable provisions of the Plan and this Award Agreement. (b) Method of Exercise. This Option shall be exercisable by delivery to the Company of a notice of exercise (the "Exercise Notice") which shall state the election to exercise the Option, the number of Shares with respect to which the Option is being exercised (the "Exercised Shares")..., and such other representations and agreements as may be required by the Company. The Exercise Notice shall be accompanied by payment of the aggregate Exercise Price as to all Exercised Shares. This Option shall be deemed to be exercised upon receipt by the Company of such fully executed Exercise Notice accompanied by the aggregate Exercise Price. No Shares shall be issued pursuant to the exercise of an Option unless such issuance and such exercise complies with Applicable Laws. Assuming such compliance, for income tax purposes the Shares shall be considered transferred to the Optionee on the date on which the Option is exercised with respect to such Shares. (c) Method of Payment. The Optionee may pay the aggregate Exercise Price by any of the following methods, or any combination thereof: (i) cash or cashier check; (ii) consideration received by the Company under a formal cashless exercise program adopted by the Company in connection with the Plan; or (iii) surrender of other Shares provided that, (i) such Shares have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price of the Exercised Shares and (ii) accepting such Shares will not result in any adverse accounting consequences to the Company, as determined by the Administrator in its sole discretion. View More