Common use of Option Percentage Clause in Contracts

Option Percentage. For each year of Employee's employment during the Term, Employee shall accrue a 1% Option Percentage (pro-rated for each month during a year of employment) so that at the end of Term, assuming Employee remains employed through the end of the Term, Employee will have accrued a total 5% Option Percentage. For purposes hereof, "Option Percentage" is a percentage used to determine the number of Bonus Shares that Employee is entitled to based upon the total number of issued and outstanding shares of the Issuer on the date of the date of the execution of this Agreement (the "Pre-Public Offering Outstanding Shares"). For example, if a public offering of the Issuer occurs in November 2006, Employee will have accrued a total 2.5% Option Percentage.