by

Stock Option Plan Agreement

If you continue with the example above, we say that you exercise 25% of the ESo if it is Western after one year. This means that you will receive 250 shares of the company`s action at the strike price. It should be noted that the record share price is the exercise price or exercise price indicated in the option agreement, regardless of the actual market price of the stock. 2.16.2. full agreement; The application of rights. This agreement, together with the notification attached to this agreement and the plan, includes the overall agreement and understanding of the parties as to the purpose of this agreement and, in this context, and brings together all prior discussions between the parties. Unless the plan provides for it, no amendment or amendment to this agreement or a waiver of the rights of this agreement is effective, unless the parties to this agreement have signed in writing. The inability of one of the parties to enforce the rights of this agreement should not be construed as a waiver to the right of that party. As discovered after the bankruptcy of dotcom in the 1990s, when many technology companies went bankrupt, counterparty risk is a valid subject that is hardly taken into account by those who receive EsOs. With options listed in the United States, option Clearing Corporation serves as a clearing house for options contracts and guarantees their performance. Therefore, there is no risk that the counterparty will not be able to meet the obligations arising from the option contract for options trading. However, since the counterpart to your EOS is your business that does not have an intermediary in between, it would be wise to monitor its financial situation to ensure that you do not hold inconsistent options or even worse and worthless shares. For employees, the main advantages of any type of capital repayment plan are: 2.3.2.

Exercise method. This option must be implemented by written notification to the company (in the form attached to Schedule A) (the “exercise note”). The exercise notification indicates the number of shares for which the option is exercised, as well as other common stock insurance and arrangements that the company requires in accordance with the provisions of the plan. The exercise notification is signed by Optionee and sent, in person or by authenticated mail, to the company secretary or any other authorized representative of the company. The notice of exercise is accompanied by the payment of the exercise price, including the payment of the applicable withholding tax. No shares are issued on the basis of an option, unless such an issue and such exercise comply with all applicable legal provisions and the requirements of a stock exchange where the shares can then be listed. Provided the shares are transferred for income tax purposes on the day of the exercise of the option for those shares. The benefits of a capital compensation plan for employers are: exercise or strike price. The price at which the employee can buy shares during the exercise period.