Exercise of Nonstatutory Stock Option. There may be a regular federal income tax liability upon the exercise of a Nonstatutory Stock 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 an Employee or a former Employee, the Company will be required to withhold from the Participant's compensation or collect from the Participant and pay to the applicable taxing authorities an amount in cash equal to a percentage of this compensation income at the time of exercise, and may refuse to honor the exercise if such withholding amounts are not delivered at the time of exercise.
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Samples: Employment Agreement (Aerobic Creations, Inc.), Employment Agreement (Aerobic Creations, Inc.), Indemnification Agreement (Aerobic Creations, Inc.)
Exercise of Nonstatutory Stock Option. There may be a regular federal income tax liability and local income tax liability upon the exercise of a Nonstatutory Stock Option. The Participant Optionee 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 Optionee is an Employee or a former Employee, the Company will be required to withhold from the ParticipantOptionee's compensation or collect from the Participant Optionee and pay to the applicable taxing authorities an amount in cash equal to a percentage of this compensation income at the time of exercise, and may refuse to honor the exercise if such withholding amounts are not delivered at the time of exercise.
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Samples: Stock Option Agreement (Peregrine Systems Inc), Stock Option Agreement (Peregrine Systems Inc)
Exercise of Nonstatutory Stock Option. There may be a regular federal income tax liability upon the exercise of a Nonstatutory Stock Option. The Participant Optionee 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 Optionee is an Employee or a former Employee, the Company will be required to withhold from the ParticipantOptionee's compensation or collect from the Participant Optionee and pay to the applicable taxing authorities an amount in cash equal to a percentage of this compensation income at the time of exercise, and may refuse to honor the exercise and refuse to deliver Shares if such withholding amounts are not delivered at the time of exercise.
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Exercise of Nonstatutory Stock Option. There may be a regular federal income tax liability upon the exercise of a Nonstatutory Stock Option. The Participant Optionee 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 Optionee is an Employee or a former Employee, the Company will be required to withhold from the ParticipantOptionee's compensation or collect from the Participant Optionee and pay to the applicable taxing authorities an amount in cash equal to a percentage of this compensation income at the time of exercise, and may refuse to honor the exercise and refuse to deliver Shares if such withholding amounts are not delivered at the time of exercise.,
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