Opinion ID: 2273298
Heading Depth: 1
Heading Rank: 3

Heading: The Booz Allen Stock Rights Plan

Text: Throughout their tenure, Nemec and Wittkemper, along with all other officers of the Company, were partially compensated with annual grants of stock rights that were convertible into common stock of the Company. Those rights were granted under the Booz, Allen & Hamilton Inc. Officers Stock Rights Plan. Under the Stock Plan, each retired officer had a put right, exercisable for a period of two years from the date of his or her retirement, to sell his or her shares back to the Company at book value. [1] After that two-year period expired, the Company then had the right to redeem, at any time, part or all of the retired officer's stock at book value. [2] When they retired in March 2006, Nemec owned 76,000 shares of Booz Allen stock (representing about 2.6% of the Company's issued and outstanding common shares), and Wittkemper owned 28,000 shares (representing almost 1% of those shares). Nemec retained all of his Booz Allen stock during the two-year period following his retirement; Wittkemper sold most of his shares but retained some of them.