Transferability of Stock Option Clause Example from Business Contracts

Transferability of Stock Option. This stock option is personal to the optionee and is not transferable by the optionee in any manner other than by will or by the laws of descent and distribution. The stock option may be exercised during the optionee's lifetime only by the optionee (or by the optionee's guardian or personal representative in the event of the optionee's incapacity). The optionee may elect to designate a beneficiary by providing written notice of the name of such beneficiary to the company, and may revoke or chang...e such designation at any time by filing written notice of revocation or change with the company; such beneficiary may exercise the optionee's stock option in the event of the optionee's death to the extent provided herein. If the optionee does not designate a beneficiary, or if the designated beneficiary predeceases the optionee, the legal representative of the optionee may exercise this stock option to the extent provided herein in the event of the optionee's death. 28 5. RESTRICTIONS ON TRANSFER OF SHARES. The shares acquired upon exercise of the stock option shall be subject to certain transfer restrictions and other limitations including, without limitation, the provisions contained in section 9 of the plan. View More