Qualifying Gain

Qualifying Gain. Means the net value accrued upon a stock-for stock exercise of an Eligible Stock Option (i.e., the amount by which the total value of the shares exercised exceeds the value of the shares used to pay the exercise price, where both the shares paid and the shares exercised are valued at the Closing Price on the date of exercise). For example, an Eligible Employee elects to defer the Qualifying Gain accrued upon exercise of an Eligible Stock Option to purchase 1,000 shares at an exercise price of... $20 per share. The Closing Price of the Common Stock on the date of exercise is $25. The Eligible Employee delivers 800 shares of Common Stock (worth $20,000) to pay the exercise price. In return, the Eligible Employee receives 800 shares of Common Stock worth $20,000 and his or her Account is credited with a Qualifying Gain of $5,000. View More