Common use of Exercise of NSO Clause in Contracts

Exercise of NSO. There may be a regular federal income tax liability upon the exercise of an NSO. The 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 Optionee is an employee of the Company, the Company will be required to withhold from the Optionee’s compensation or collect from the Optionee and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise. If the Optionee is subject to Section 16 of the Securities Act of 1934, as amended, the date of income recognition may be deferred for up to six months.

Exercise of NSO. There may be a regular federal income tax --------------- liability upon the exercise of an NSO. The 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 fair market value of the Shares on the date of exercise over the Exercise Price. If the Optionee is an employee of the CompanyEmployee, the Company will be required to withhold from the Optionee’s 's compensation or collect from the Optionee and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise. If the Optionee is subject to Section 16 of the Securities Act of 1934Exchange Act, as amended, then the date of income recognition may be deferred for up to six months.

Exercise of NSO. There may be a regular federal income --------------- tax liability upon the exercise of an NSO. The 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 fair market value of the Shares on the date of exercise over the Exercise Price. If the Optionee is an employee of the CompanyEmployee, the Company will be required to withhold from the Optionee’s 's compensation or collect from the Optionee and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise. If the Optionee is subject to Section 16 of the Securities Act of 1934Exchange Act, as amended, then the date of income recognition may be deferred for up to six months.