JCPenney 2015 Annual Report Download - page 140
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“Exercise Price” means $3.35, which is the Fair Market Value of the
Common Stock on June 11, 2015.
“Fair Market Value” of the Common Stock on any date will be the
closing price on such date as reported in the composite transaction
table covering transactions of New York Stock Exchange
(“Exchange”) listed securities, or if such Exchange is closed, or if the
Common Stock does not trade on such date, the closing price
reported in the composite transaction table on the last trading date
immediately preceding such date, or such other amount as the Board
may ascertain reasonably to represent such fair market value;
provided however, that such determination will be in accordance with
the requirements of Treasury Regulation section 1.409A-1(b)(5)(iv), or
its successor.