Opinion ID: 418100
Heading Depth: 1
Heading Rank: 3

Heading: status and conversion of securities

Text: .... 2 2. Assumption of Mayer Options. Mayer represents that it has established a Stock Option Incentive Plan (the Option Plan), approved by its stockholders in 1965, under which options for 9,500 shares of Mayer Common Stock are outstanding to Mayer employees. On the Effective Date, the Surviving Corporation shall cause Warnaco to assume each option (Mayer Stock Option) outstanding on the Effective Date granted pursuant to the Option Plan, subject only to the approval of the stockholders of Warnaco at or before its 1970 Annual Meeting in accordance with Section 33-344 of the Connecticut Stock Corporation Act.... [N]otwithstanding any other provisions of the Mayer Stock Options to the contrary, such options shall not be exercisable prior to the 1970 Annual Meeting of Warnaco. Warnaco Subsidiary will cause Warnaco to (x) present to its stockholders at the 1970 Annual Meeting a proposal to approve the assumption of the Mayer Stock Options, and (y) recommend the adoption of such proposal. If the stockholders of Warnaco do not approve the assumption of the Mayer Stock Options at or prior to their 1970 Annual Meeting, the Mayer Stock Options shall terminate and be of no further force and effect, and Warnaco Subsidiary shall pay within 30 days after said meeting to each holder of a Mayer Stock Option an amount in cash value equal to $8 for each share of Mayer Common Stock represented by such Option ....