This excerpt taken from the PRVT DEF 14A filed Nov 3, 2009.
Types of Awards
The 2009 EIP provides for the grant of incentive stock options intended to qualify under Section 422 of the Code, nonstatutory stock options, restricted stock, unrestricted stock and other equity-based awards, such as stock appreciation rights, phantom stock awards, and restricted units, which we refer to collectively as Awards.
Incentive Stock Options and Nonstatutory Stock Options. For each option granted under the 2009 EIP, our Board will determine the number of shares of our common stock covered by the option, the exercise price (which may not be less than 100% of fair market value of the share subject thereto at the time of grant), the duration (which may not exceed ten years), and the conditions and limitations applicable to the exercise of the option and the common stock issued thereunder, including vesting provisions, repurchase provisions and restrictions relating to applicable securities laws. Option grants intended by the Board to qualify as incentive stock options shall be subject to and construed consistently with the requirements of Section 422 of the Internal Revenue Code of 1986 (the Code). The 2009 EIP permits the following forms of payment of the
exercise price of options: (i) cash, check or wire transfer of funds; (ii) shares of common stock owned by the participant valued at fair market value (as determined by the Board or as determined pursuant to the applicable option agreement); (iii) cashless exercise or net issuance; and (iv) arrangements with a broker or other financial institution for the prompt payment of the exercise price to the Company.
The Board may, without shareholder approval, (i) amend any outstanding option granted under the 2009 EIP to provide an exercise price per share that is lower than the then-current exercise price per share of such outstanding option and (ii) cancel any outstanding option under the 2009 EIP and grant in substitution therefor new options covering the same or a different number of shares of our common stock and having an exercise price per share lower than the then-current exercise price per share of the cancelled option. No option granted under the 2009 EIP shall contain any provision entitling the optionee to the automatic grant of additional options in connection with any exercise of the original option.
Stock Awards and Restricted Stock Awards. The Board will determine the terms and conditions of any stock award granted under the 2009 EIP entitling recipients to acquire shares of our common stock. The Board may provide that a stock award is subject to forfeiture should the conditions in the applicable award not be satisfied before the end of the applicable restriction period.
Other Stock-Based Awards. The Board will have the right to grant other awards based on or with reference to our common stock or its trading price having such terms or conditions as the Board may determine.