Roxy,Inc,Grants 1,000 NQSO to an Employee,Carol,entitling Her to Purchase Roxy

question 91

Essay

Roxy,Inc.,grants 1,000 NQSO to an employee,Carol,entitling her to purchase Roxy stock at $10 per share (the current price of the stock).Roxy simultaneously grants 1,000 ISOs to another employee,Donna,entitling her to buy 1,000 shares of Roxy at $10 per share over a two-year period.One year later,2012,the stock has risen to $20 per share,and Carol and Donna both exercise their options in full,receiving stock not subject to an SRF.

---

Definitions:

C.O.D.

C.O.D. stands for Cash on Delivery; it is a transaction where payment is collected at the time of delivery rather than in advance.

Misrepresentation

The act of providing false, misleading, or incorrect information, typically with the intention to deceive.

Incidental Damages

Additional expenses incurred by one party due to another's breach of contract, above and beyond the direct damages or loss suffered.

Swimsuits

Clothing designed for people to wear while swimming.