-4- exercise, as determined in good faith by the Plan Administrator, equal to the exercise price. 1995 Stock Incentive Compensation Plan The stock options granted by the three stock option letter agreements were granted pursuant to the 1995 Plan, and each of those agreements incorporated the 1995 Plan by reference. Section 7.4 of the 1995 Plan states that an optionee may exercise his or her stock options “by written notice to the Company, in accordance with procedures established by the Plan Administrator, setting forth the number of shares with respect to which the Option is being exercised and accompanied by payment in full as described in Section 7.5 of the Plan.” Section 7.5 of the 1995 Plan states that payment in full may be made by the following means: The exercise price for shares purchased under an Option shall be paid in full to the Company [Primus] by delivery of consideration equal to the product of the Option exercise price and the number of shares purchased. Such consideration must be paid in cash, except that the Plan Administrator may, either at the time the Option is granted or at any time before it is exercised and subject to such limitations as the Plan Administrator may determine, authorize payment in cash and/or one or more of the following alternative forms: (i) Common Stock already owned by the Holder for at least six months (or any shorter period necessary to avoid a charge to the Company’s earnings for financial reporting purposes) having a Fair Market Value on the day prior to the exercise date equal to the aggregate Option exercise price; (ii) a promissory note authorized pursuant to Section 11 of the Plan; (iii) if the Common Stock is publicly traded, delivery of a properly executed exercise notice, together with irrevocable instructions, to (a) a brokerage firm designated by the Company to deliver promptly to thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011