1540

LAWS OF MARYLAND

[Ch. 311

appears as Art. 23, §19(c). The section is
placed here because it deals with the penalty
for nonpayment. For a definition of the ten
"mailed" see §1—101 of this article. The
tern, as defined, is somewhat more specific
than the language of present §19(c).

Subsection (d) presently appears as Art. 23,
§22 (b).

The only other changes are in style.

2-207. INSTALLMENT PAYMENTS FOR STOCK PURCHASED UNDER
STOCK OPTION PLAN.

(A)   INSTALLMENT PAYMENTS PERMITTED.

THE OBLIGATION FOR FUTURE PAYMENT OF AN OFFICER,
DIRECTOR, OR EMPLOYEE OF A CORPORATION OR ITS DIRECT OR
INDIRECT SUBSIDIARY MAY CONSTITUTE PAYMENT FOR STOCK OF
THE CORPORATION PURCHASED UNDER A RIGHT OR OPTION ISSUED
TO HIM UNDER A STOCK OPTION PLAN IF:

(1)   THE PLAN OR AN AMENDMENT TO IT AUTHORIZES
THIS METHOD OF PAYMENT; AND

(2)   THE PLAN OR AMENDMENT WAS APPROVED BY THE
STOCKHOLDERS OF THE CORPORATION BY THE AFFIRMATIVE VOTE
OF A MAJORITY OF ALL THE VOTES ENTITLED TO BE CAST ON THE
MATTER.

(B)   CONDITIONS.

UNTIL THE OBLIGATION IS FULLY PAID IN CASH, THE FACT
THAT FUTURE PAYMENTS ARE REQUIRED TO BE MADE SHALL BE
NOTED CONSPICUOUSLY ON THE FACE OR BACK OF THE STOCK
CERTIFICATE WHICH REPRESENTS THE SHARES, AND THE
CORPORATION SHALL RETAIN PHYSICAL POSSESSION OF THE
CERTIFICATE.

REVISOR'S NOTE: This section presently appears as
Art. 23, §22 (d) .

The provision making this section specifically
applicable to option plans established prior
to 1970 is deleted as obsolete. This section,
as drafted, covers these plans if they were
approved in the required manner.

The only other changes are in style.

2-208. RECLASSIFICATION OF UNISSUED STOCK BY BOARD.

(A) POWER IN GENERAL.