Summary
Imperial Oil Ltd. (IMO) filed an 8-K on February 1, 2007, to disclose an amendment to its 2002 Restricted Stock Unit Plan. This amendment, effective February 1, 2007, provides holders of Restricted Stock Units granted in 2002 with an option to receive either one common share of the company or a cash payment equal to the average closing share price over a specific five-day trading period in the year of the seventh anniversary of the grant. Previously, recipients of these 2002 grants only had the conditional right to receive a cash payment. The amendment allows for the settlement of the remaining 50% of the 2002 grants, with the first 50% having been exercised on the third anniversary. This change offers flexibility to the plan participants and may impact the company's share structure or cash reserves depending on the election made by the recipients.
Key Highlights
- 1Amendment to the 2002 Restricted Stock Unit Plan effective February 1, 2007.
- 2Recipients of 2002 Restricted Stock Units now have an option to receive either a common share or a cash payment upon exercise.
- 3The cash payment option is based on the average closing share price over five trading days ending December 4th of the seventh anniversary year.
- 4Prior to the amendment, only a cash payment option was available for these grants.
- 5The amendment impacts the remaining 50% of the 2002 Restricted Stock Unit grants.
- 6The first 50% of 2002 Restricted Stock Units were exercised on their third anniversary (December 31, 2005).