Termination of Option Clause Example with 4 Variations from Business Contracts
This page contains Termination of Option clauses in business contracts and legal agreements. An example clause is provided at the top of the page, followed by clauses with minor variations. You can view the text differences by selecting the "Show Differences" option.
Termination of Option. Except as otherwise provided in Section 4 of this Agreement, unless the Option terminates earlier as provided in this Section 6, the Option shall terminate and become null and void on the tenth anniversary of the Date of Grant (the "Option General Expiration Date"). Except as otherwise provided in Section 4 of this Agreement, if the Participant incurs a Termination of Service for any reason, the Option shall not continue to vest after such Termination of Service. (a)If the Participant incurs a T...ermination of Service due to the Participant's death or Total and Permanent Disability, the Option shall remain exercisable for, and shall otherwise terminate and become null and void at the end of, a period of one year from the date of such death or Total and Permanent Disability, but in no event after the Option General Expiration Date. (b)If the Participant incurs a Termination of Service upon the occurrence of the Participant's Retirement, (i) the portion of the Option that was exercisable on the date of Retirement shall remain exercisable for, and shall otherwise terminate and become null and void at the end of, a period of up to three years after the date of Retirement, but in no event after (x) the Option General Expiration Date or (y) the day before the date the Participant begins engaging in Competition (as that term is defined in Section 22) during such three-year period, unless he or she receives written consent to do so from the Board or the Committee, and (ii) the portion of the Option that was not exercisable on the date of Retirement shall be forfeited and become null and void immediately upon such Retirement. (c)If the Participant incurs a Termination of Service due to Cause, all of the Option shall be forfeited and become null and void immediately upon such Termination of Service, whether or not then exercisable. For purposes of this Section 6(c) the term "Cause" means the occurrence of one of the following events: (i) commission of fraud, embezzlement, theft, felony or an act of dishonesty in the course of his employment by the Company or an Affiliate which conduct damaged the Company or an Affiliate, (ii) disclosure of trade secrets of the Company or an Affiliate, or (iii) violation of the terms of any non-competition, non-disclosure or similar agreement with respect to the Company or any Affiliate to which the Participant is a party. (d)If the Participant incurs a Termination of Service for any reason other than death, Total and Permanent Disability, Retirement or Cause, (i) the portion of the Option that was exercisable on the date of such Termination of Service shall remain exercisable for, and shall otherwise terminate and become null and void at the end of, a period of up to 90-days after the date of such Termination of Service, but in no event after (x) the Option General Expiration Date or (y) the day before the date the Participant begins engaging in Competition during such 90-day period, unless he or she receives written consent to do so from the Board or the Committee, and (ii) the portion of the Option that was not exercisable on the date of such Termination of Service shall be forfeited and become null and void immediately upon such Termination of Service. In the event the Participant has entered into an employment contract with the Company, the termination provisions of the employment contract will supersede the terms stated in Section 6(d) herein. (e)Upon the death of the Participant prior to the expiration of the Option, the Participant's executors, administrators or any person or persons to whom the Option may be transferred by will or by the laws of descent and distribution, shall have the right, at any time prior to the termination of the Option, to exercise the Option with respect to the number of shares of Common Stock that the Participant would have been entitled to exercise if he or she were still alive. (f)Notwithstanding anything to the contrary contained herein, in the event the Participant fails to comply with the confidentiality and non-solicitation provisions of Exhibit A, or the non-solicitation and/or confidentiality provisions contained in any written agreement by and between the Participant and the Company, then all of the Option shall be forfeited and become null and void immediately upon such Termination of Service, whether or not then exercisable, and this Agreement (other than the provisions of this subsection (f) and the provisions of Exhibit A) will be terminated on the date of such violation.View More
Variations of a "Termination of Option" Clause from Business Contracts
Termination of Option. Except as otherwise provided in Section 4 of this Agreement, unless Unless the Option terminates earlier as provided in this Section 6, 6 the Option shall terminate and become null and void at the close of business at the Company's principal business office on the day before the date of the tenth anniversary of the Grant Date of Grant (the "Option General Expiration Date"). Except as otherwise provided in Section 4 If Optionee ceases to be an employee of this Agreement, if the Participant incurs... a Termination of Service Company for any reason, reason the Option shall not continue to vest after such Termination cessation of Service. (a)If service as an employee of the Participant incurs a Termination Company. (a) If Optionee ceases to be an employee of Service the Company and any Subsidiary Corporation due to the Participant's death or Total and Permanent Disability, (i) the portion of the Option that was exercisable on the date of such cessation of employment shall remain exercisable for, and shall otherwise terminate and become null and void at the end of, a period close of one year from business at the Company's principal business office on the day that is, twelve (12) months after the date of such death or Total and Permanent Disability, but in no event after the Option General Expiration Date. (b)If the Participant incurs a Termination of Service upon the occurrence of the Participant's Retirement, (i) the portion of the Option that was exercisable on the date of Retirement shall remain exercisable for, and shall otherwise terminate and become null and void at the end of, a period of up to three years after the date of Retirement, but in no event after (x) the Option General Expiration Date or (y) the day before the date the Participant begins engaging in Competition (as that term is defined in Section 22) during such three-year period, unless he or she receives written consent to do so from the Board or the Committee, and (ii) the portion of the Option that was not exercisable on the date of Retirement shall be forfeited and become null and void immediately upon such Retirement. (c)If the Participant incurs a Termination of Service due to Cause, all of the Option shall be forfeited and become null and void immediately upon such Termination of Service, whether or not then exercisable. For purposes of this Section 6(c) the term "Cause" means the occurrence of one of the following events: (i) commission of fraud, embezzlement, theft, felony or an act of dishonesty in the course of his employment by the Company or an Affiliate which conduct damaged the Company or an Affiliate, (ii) disclosure of trade secrets of the Company or an Affiliate, or (iii) violation of the terms of any non-competition, non-disclosure or similar agreement with respect to the Company or any Affiliate to which the Participant is a party. (d)If the Participant incurs a Termination of Service for any reason other than death, Total and Permanent Disability, Retirement or Cause, (i) the portion of the Option that was exercisable on the date of such Termination of Service shall remain exercisable for, and shall otherwise terminate and become null and void at the end of, a period of up to 90-days after the date of such Termination of Service, but in no event after (x) the Option General Expiration Date or (y) the day before the date the Participant begins engaging in Competition during such 90-day period, unless he or she receives written consent to do so from the Board or the Committee, Date; and (ii) the portion of the Option that was not exercisable on the date of such Termination cessation of Service employment shall be forfeited and become null and void immediately upon such Termination of Service. In the event the Participant has entered into cessation. (b) If Optionee ceases to be an employment contract with the Company, the termination provisions employee of the Company or a Subsidiary Corporation for any reason other than death or Disability (i) the portion of the Option that was exercisable on the date of such cessation of employment contract will supersede shall remain exercisable for, and shall otherwise terminate and become null and void at the terms stated close of business at the Company's principal business office on the day that is three (3) months after the date of such cessation of employment, but in Section 6(d) herein. (e)Upon no event after the Option General Expiration Date, and (ii) the portion of the Option that was not exercisable on the date of such cessation of employment shall be forfeited and become null and void immediately upon such cessation. (c) Upon the death of the Participant Optionee prior to the expiration of the Option, the Participant's Optionee's executors, administrators or any person or persons to whom the Option may be transferred by will or by the laws of descent and distribution, shall have the right, at any time prior to the termination of the Option, Option to exercise the Option with respect to the number of shares of Common Stock that the Participant Optionee would have been entitled to exercise if he or she were still alive. (f)Notwithstanding anything to the contrary contained herein, in the event the Participant fails to comply with the confidentiality and non-solicitation provisions of Exhibit A, or the non-solicitation and/or confidentiality provisions contained in any written agreement by and between the Participant and the Company, then all of the Option shall be forfeited and become null and void immediately upon such Termination of Service, whether or not then exercisable, and this Agreement (other than the provisions of this subsection (f) and the provisions of Exhibit A) will be terminated on the date of such violation.View More
Termination of Option. Except as otherwise provided in Section 4 of this Agreement, unless the Option terminates earlier as provided in this Section 6, 6 the Option shall terminate and become null and void on the tenth anniversary of the Grant Date of Grant (the "Option General Expiration Date"). Except as otherwise provided in Section 4 of this Agreement, if Optionee ceases to be an employee of the Participant incurs a Termination of Service Company for any reason, reason the Option shall not continue to vest after s...uch Termination cessation of Service. (a)If service as an employee of the Participant incurs a Termination Company. (a) If Optionee ceases to be an employee of Service the Company and any Subsidiary due to the Participant's death or Total and Permanent Disability, Disability as provided for in Section 4(c), or as provided for in Section 4(d), the unexercised portion of the Option that was previously exercisable or 3 became exercisable on the date of such death or Disability or employment cessation shall remain exercisable for, and shall otherwise terminate and become null and void at the end of, a period of one year two years from the date of such death or Total and Permanent Disability, Disability or date of such employment cessation as provided for in Section 4(d), but in no event after the Option General Expiration Date. (b)If the Participant incurs a Termination of Service upon the occurrence (b) If Optionee voluntarily ceases to be an employee of the Participant's Company on account of Retirement, (i) with or without Board approval, as provided for in Sections 4(e) and (f), the unexercised portion of the Option that was previously exercisable or became exercisable on the later of the date of Optionee's Retirement or the date Optionee's membership on the Board terminated shall remain exercisable for, and shall otherwise terminate and become null and void at the end of, a period of up to three years after from the date later of Retirement, such Retirement or Board termination, but in no event after (x) the Option General Expiration Date or (y) the day before the date the Participant begins engaging in Competition (as that term is defined in Section 22) during such three-year period, unless he or she receives written consent to do so from the Board or the Committee, and (ii) the portion of the Option that was not exercisable on the date of Retirement shall be forfeited and become null and void immediately upon such Retirement. (c)If the Participant incurs a Termination of Service due to Cause, all of the Option shall be forfeited and become null and void immediately upon such Termination of Service, whether or not then exercisable. For purposes of this Section 6(c) the term "Cause" means the occurrence of one of the following events: (i) commission of fraud, embezzlement, theft, felony or an act of dishonesty in the course of his employment by the Company or an Affiliate which conduct damaged the Company or an Affiliate, (ii) disclosure of trade secrets of the Company or an Affiliate, or (iii) violation of the terms of any non-competition, non-disclosure or similar agreement with respect to the Company or any Affiliate to which the Participant is a party. (d)If the Participant incurs a Termination of Service for any reason other than death, Total and Permanent Disability, Retirement or Cause, (i) the portion of the Option that was exercisable on the date of such Termination of Service shall remain exercisable for, and shall otherwise terminate and become null and void at the end of, a period of up to 90-days after the date of such Termination of Service, but in no event after (x) the Option General Expiration Date or (y) the day before the date the Participant begins engaging in Competition during such 90-day period, unless he or she receives written consent to do so from the Board or the Committee, and (ii) the portion of the Option that was not exercisable on the date of such Termination of Service shall be forfeited and become null and void immediately upon such Termination of Service. In the event the Participant has entered into an employment contract with the Company, the termination provisions of the employment contract will supersede the terms stated in Section 6(d) herein. (e)Upon Date. (c) Upon the death of the Participant Optionee prior to the expiration of the Option, the Participant's Optionee's executors, administrators or any person or persons to whom the Option may be transferred by will or by the laws of descent and distribution, shall have the right, at any time prior to the termination of the Option, to exercise the Option with respect to the number of shares of Common Stock that the Participant Optionee would have been entitled to exercise as if he or she were still alive. (f)Notwithstanding anything to the contrary contained herein, in the event the Participant fails to comply with the confidentiality and non-solicitation provisions of Exhibit A, or the non-solicitation and/or confidentiality provisions contained in any written agreement by and between the Participant and the Company, then all of the Option shall be forfeited and become null and void immediately upon such Termination of Service, whether or not then exercisable, and this Agreement (other than the provisions of this subsection (f) and the provisions of Exhibit A) will be terminated on the date of such violation.View More
Termination of Option. Except as otherwise provided in Section 4 of this Agreement, unless Unless the Option terminates earlier as provided in this Section 6, 6 the Option shall terminate and become null and void at the close of business at the Company's principal business office on the day before the date of the tenth anniversary of the Grant Date of Grant (the "Option General Expiration Date"). Except as otherwise provided in Section 4 If Optionee ceases to be an employee of this Agreement, if the Participant incurs... a Termination of Service Company for any reason, reason the Option shall not continue to vest after such Termination cessation of Service. (a)If service as an employee of the Participant incurs a Termination Company. (a) If Optionee ceases to be an employee of Service the Company and any Subsidiary Corporation and other Affiliate due to the Participant's death or Total and Permanent Disability, (i) the portion of the Option that was exercisable on the date of such cessation of employment shall remain exercisable for, and shall otherwise terminate and become null and void at the end of, a period close of one year from business at the Company's principal business office on the day that is, twelve (12) months after the date of such death or Total and Permanent Disability, but in no event after the Option General Expiration Date. (b)If the Participant incurs a Termination of Service upon the occurrence of the Participant's Retirement, (i) the portion of the Option that was exercisable on the date of Retirement shall remain exercisable for, and shall otherwise terminate and become null and void at the end of, a period of up to three years after the date of Retirement, but in no event after (x) the Option General Expiration Date or (y) the day before the date the Participant begins engaging in Competition (as that term is defined in Section 22) during such three-year period, unless he or she receives written consent to do so from the Board or the Committee, and (ii) the portion of the Option that was not exercisable on the date of Retirement shall be forfeited and become null and void immediately upon such Retirement. (c)If the Participant incurs a Termination of Service due to Cause, all of the Option shall be forfeited and become null and void immediately upon such Termination of Service, whether or not then exercisable. For purposes of this Section 6(c) the term "Cause" means the occurrence of one of the following events: (i) commission of fraud, embezzlement, theft, felony or an act of dishonesty in the course of his employment by the Company or an Affiliate which conduct damaged the Company or an Affiliate, (ii) disclosure of trade secrets of the Company or an Affiliate, or (iii) violation of the terms of any non-competition, non-disclosure or similar agreement with respect to the Company or any Affiliate to which the Participant is a party. (d)If the Participant incurs a Termination of Service for any reason other than death, Total and Permanent Disability, Retirement or Cause, (i) the portion of the Option that was exercisable on the date of such Termination of Service shall remain exercisable for, and shall otherwise terminate and become null and void at the end of, a period of up to 90-days after the date of such Termination of Service, but in no event after (x) the Option General Expiration Date or (y) the day before the date the Participant begins engaging in Competition during such 90-day period, unless he or she receives written consent to do so from the Board or the Committee, Date; and (ii) the portion of the Option that was not exercisable on the date of such Termination cessation of Service employment shall be forfeited and become null and void immediately upon such Termination of Service. In the event the Participant has entered into cessation. (b) If Optionee ceases to be an employment contract with the Company, the termination provisions employee of the Company or a Subsidiary Corporation or any other Affiliate for any reason other than death or Disability (i) the portion of the Option that was exercisable on the date of such cessation of employment contract will supersede shall remain exercisable for, and shall otherwise terminate and become null and void at the terms stated close of business at the Company's principal business office on the day that is three (3) months after the date of such cessation of employment, but in Section 6(d) herein. (e)Upon no event after the Option General Expiration Date, and (ii) the portion of the Option that was not exercisable on the date of such cessation of employment shall be forfeited and become null and void immediately upon such cessation. (c) Upon the death of the Participant Optionee prior to the expiration of the Option, the Participant's Optionee's executors, administrators or any person or persons to whom the Option may be transferred by will or by the laws of descent and distribution, shall have the right, at any time prior to the termination of the Option, Option to exercise the Option with respect to the number of shares of Common Stock that the Participant Optionee would have been entitled to exercise if he or she were still alive. (f)Notwithstanding anything to the contrary contained herein, in the event the Participant fails to comply with the confidentiality and non-solicitation provisions of Exhibit A, or the non-solicitation and/or confidentiality provisions contained in any written agreement by and between the Participant and the Company, then all of the Option shall be forfeited and become null and void immediately upon such Termination of Service, whether or not then exercisable, and this Agreement (other than the provisions of this subsection (f) and the provisions of Exhibit A) will be terminated on the date of such violation.View More
Termination of Option. Except as otherwise provided in Section 4 of this Agreement, unless the Option terminates earlier as provided in this Section 6, 6 the Option shall terminate and become null and void on the tenth anniversary of the Grant Date of Grant (the "Option 2 General Expiration Date"). Except as otherwise provided in Section 4 of this Agreement, if Optionee ceases to be an employee of the Participant incurs a Termination of Service Company for any reason, reason the Option shall not continue to vest after... such Termination cessation of Service. (a)If service as an employee of the Participant incurs a Termination Company. (a) If Optionee ceases to be an employee of Service the Company and any Subsidiary due to the Participant's death or Total and Permanent Disability, the Option shall remain exercisable for, and shall otherwise terminate and become null and void at the end of, a period of one year from the date of such death or Total and Permanent Disability, but in no event after the Option General Expiration Date. (b)If (b) If Optionee ceases to be an employee of the Participant incurs a Termination of Service Company and any Subsidiary upon the occurrence of the Participant's Retirement, (i) Optionee's Retirement (as that term is defined in Section 21), (A) the portion of the Option that was exercisable on the date of Retirement shall remain exercisable for, and shall otherwise terminate and become null and void at the end of, a period of up to three years after the date of Retirement, but in no event after (x) the Option General Expiration Date or (y) the day before the date the Participant Optionee begins engaging in Competition (as that term is defined in Section 22) 21) during such three-year period, period unless he or she receives written consent to do so from the Board or the Committee, and (ii) (B) the portion of the Option that was not exercisable on the date of Retirement shall be forfeited and become null and void immediately upon such Retirement. (c)If (c) If Optionee ceases to be an employee of the Participant incurs Company or a Termination of Service Subsidiary due to Cause, all of the Option shall be forfeited and become null and void immediately upon such Termination of Service, cessation, whether or not then exercisable. For purposes of this Section 6(c) the term "Cause" means the occurrence of one of the following events: (i) ) commission of fraud, embezzlement, theft, felony or an act of dishonesty in the course of his employment by the Company or an Affiliate which conduct damaged the Company or an Affiliate, (ii) (b) disclosure of trade secrets of the Company or an Affiliate, or (iii) (c) violation of the terms of any non-competition, non-disclosure or similar agreement with respect to the Company or any Affiliate to which the Participant Optionee is a party. (d)If party, (d) If Optionee ceases to be an employee of the Participant incurs Company or a Termination of Service Subsidiary for any reason other than death, Total and Permanent Disability, Retirement or Cause, (i) the portion of the Option that was exercisable on the date of such Termination of Service cessation shall remain exercisable for, and shall otherwise terminate and become null and void at the end of, a period of up to 90-days after the date of such Termination of Service, cessation, but in no event after (x) the Option General Expiration Date or (y) the day before the date the Participant Optionee begins engaging in Competition during such 90-day period, period unless he or she receives written consent to do so from the Board or the Committee, and (ii) the portion of the Option that was not exercisable on the date of such Termination of Service cessation shall be forfeited and become null and void immediately upon such Termination of Service. cessation. In the event the Participant Optionee has entered into an employment contract with the Company, the termination provisions of the employment contract will supersede the terms stated in Section section 6(d) herein. (e)Upon (e) Upon the death of the Participant Optionee prior to the expiration of the Option, the Participant's Optionee's executors, administrators or any person or persons to whom the Option may be transferred by will or by the laws of descent and distribution, shall have the right, at any time prior to the termination of the Option, Option to exercise the Option with respect to the number of shares of Common Stock that the Participant Optionee would have been entitled to exercise if he or she were still alive. (f)Notwithstanding anything to 3 7. Tax Withholding. To the contrary contained herein, in extent that the event receipt of the Participant fails to comply with Option, this Agreement, the confidentiality and non-solicitation provisions of Exhibit A, or the non-solicitation and/or confidentiality provisions contained in any written agreement by and between the Participant and the Company, then all vesting of the Option or the exercise of the Option results in income to Optionee for federal, state or local income, employment or other tax purposes with respect to which the Company or its Subsidiaries or any Affiliate has a withholding obligation, Optionee shall be forfeited and become null and void immediately upon deliver to the Company at the time of such Termination receipt, vesting or exercise, as the case may be, such amount of Service, whether money as the Company or not then exercisable, and this Agreement (other than its Subsidiaries or any Affiliate may require to meet its obligation under applicable tax laws or regulations, and, if Optionee fails to do so, the provisions of this subsection (f) and Company or its Subsidiaries or any Affiliate is authorized to withhold from the provisions of Exhibit A) will be terminated shares subject to the Option (based on the date Fair Market Value of such violation. shares as of the date the amount of tax to be withheld is determined) or from any cash or stock remuneration then or thereafter payable to Optionee any tax required to be withheld by reason of such taxable income, sufficient to satisfy the withholding obligation. 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