Common use of Mandatory Terms Clause in Contracts

Mandatory Terms. Each option agreement shall contain such provisions as the Board or the Committee shall from time to time deem appropriate, and shall include provisions relating to the method of exercise, payment of exercise price, adjustments on changes in the Company's capitalization and the effect of a merger, consolidation, liquidation, sale or other disposition of or involving the Company. Option Agreements shall clearly identify whether the option is an Incentive Option or a Non-statutory Option and if an Incentive Option, explicitly state that such Option is only exercisable by the Optionee during his lifetime. Option agreements need not be identical, but each option agreement by appropriate language shall include the substance of all of the following provisions: