Is an amendment to a plan to extend the term of an option considered a material amendment?
Generally, extending the term of an option is not considered a material amendment, provided that the extension is not beyond the maximum term permissible under the plan. For example, consider a plan that authorizes the plan administrator to grant awards with a term of up to ten years. If an option is granted with a term of 5 years, and the plan administrator subsequently changes the term to 10 years, it is not a material amendment to the plan. The same analysis would also apply to the extension of a post-termination exercise period.
Related Questions
- If a plan is silent on repricings, would it be a material amendment if the company were to reprice outstanding stock options?
- Is an amendment to a plan to extend the term of an option considered a material amendment?
- Is the addition of a "cashless exercise" feature to an option plan a material amendment?
