Termination of Option Clause Example from Business Contracts
This example Termination of Option clause appears in
8 contracts
from
1 company
Termination of Option. Any unexercised portion of the Option shall automatically and without notice terminate and become null and void at the time of the earliest to occur of the following: (i) unless the Committee otherwise determines in writing in its sole discretion, three months after the date on which the Optionee' s Continuous Service is terminated by the Company or Related Entity for (a) Cause, (b) a Disability of the Optionee as determined by a medical doctor satisfactory to the Committee, or (c) the death of ...the Optionee; (ii) immediately upon the termination of the Optionee' s Continuous Service by the Company or a Related Entity for Cause; (iii) twelve months after the date on which the Optionee' s Continuous Service is terminated by reason of a Disability as determined by a medical doctor satisfactory to the Committee; (iv) twelve months after the date of termination of the Optionee' s Continuous Service by reason of the death of the Optionee; or (v) the fifth anniversary of the date as of which the Option is granted (or, if a different date is shown on Schedule I hereof beside the caption "Termination Date", such date). (b) Cancellation. To the extent not previously exercised: (i) the Option shall terminate immediately in the event of (a) the liquidation or dissolution of the Company, or (b) any reorganization, merger, consolidation or other form of corporate transaction in which the Company does not survive or the Shares are exchanged for or converted into securities issued by another entity, or an affiliate of such successor or acquiring entity, unless the successor or acquiring entity, or an Affiliate thereof, assumes the Option or substitutes an equivalent option or right; and 7 (ii) the Committee in its sole discretion may by written notice cancel ("cancellation notice"), effective upon the consummation of any transaction that constitutes a Change in Control, the Option (or portion thereof) that remains unexercised on such date. The Committee shall give written notice of any proposed transaction referred to in this Section 6(b) a reasonable period of time prior to the closing date for such transaction (which notice may be given either before or after approval of such transaction), in order that the Optionee may have a reasonable period of time prior to the closing date of such transaction within which to exercise the Option if and to the extent that it then is exercisable (including any portion of the Option that may become exercisable upon the closing date of such transaction). The Optionee may condition their exercise of the Option upon the consummation of a transaction referred to in this Section 6(b).View More
