Common use of Exercise of Nonqualified Stock Option Clause in Contracts

Exercise of Nonqualified Stock Option. If the Option does not qualify as an ISO, there may be regular U.S. federal and applicable state income tax liability upon the exercise of the Option. The Participant will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price. If the Participant is a current or former employee of the Company, the Company may be required to withhold from the Participant’s compensation or collect from the Participant and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise.

Exercise of Nonqualified Stock Option. If the Option does not qualify as an ISO, there may be a regular U.S. federal Federal income tax liability and an applicable state income tax liability upon the exercise of the Option. The Participant Purchaser will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price. If the Participant Purchaser is a current or former was an employee of the Company, the Company may be required to withhold from the ParticipantPurchaser’s compensation or collect from the Participant Purchaser and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise.

Exercise of Nonqualified Stock Option. If the Option does not qualify as an ISO, there may be a regular U.S. federal and applicable or state income tax liability upon the exercise of the Option. The Participant will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the Fair Market Value fair market value of the Shares on the date of exercise over the Exercise Price. If the Participant is a current or former employee of the Company, the The Company may will be required to withhold from the Participant’s 's compensation or collect from the Participant and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise.