This excerpt taken from the FL 10-K filed Mar 27, 2006.
INCENTIVE STOCK OPTION AWARD AGREEMENT
Stock Option Grant
Effective (the Date of Grant), pursuant to action taken by the Compensation and Management Resources Committee [or the Stock Option Plan Sub-Committee] of the Board of Directors of Foot Locker, Inc. (the Company), a New York corporation, the Company hereby grants to you an incentive stock option (the Option), as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the Code), under the Foot Locker Stock Option and Award Plan (the Plan), to purchase, in accordance with the terms of the Plan, that number of full shares of common stock of the Company (Common Stock) set forth below at the purchase price per share of US $ (the Exercise Price), which is 100 percent of the Fair Market Value (as defined in the Plan) of a share of Common Stock on .
The Option has been granted to you for a period expiring on unless, prior to that time, the Option is exercised in full, is cancelled, or expires due to your death, retirement or other termination of employment, as provided in the Plan. Except as otherwise provided in the Plan, the Option will become exercisable in annual installments over a three-year vesting period according to the vesting schedule set forth below.
If the Option, or other incentive stock options granted to you under the Plan or any other stock option plan of the Company or its parent (if any) or subsidiary corporations, first become exercisable during any calendar year and those options represent shares of Common Stock having an aggregate Fair Market Value (determined as of the Date of Grant of each option) in excess of US $100,000, then those options (or portions thereof) representing the amount of the aggregate Fair Market Value exceeding US $100,000 shall automatically be converted (in reverse order of their Date of Grant) into Nonstatutory Options (as defined in the Plan).
The Option is subject to the terms of the Plan, the Prospectus covering the Plan dated , any subsequently issued Prospectus or Appendix covering the Plan, and the terms and conditions set forth above. All of these documents are incorporated herein by this reference and made a part of the Option.
Non-Competition [Optional provision, as determined by the Compensation and Management
Resources Committee or the Stock Option Plan Sub-Committee]