Common use of Limitation on Exercisability; Disposition of Option Shares Clause in Contracts

Limitation on Exercisability; Disposition of Option Shares. If and to the extent the Option remains unexercised more than one year after Optionee’s termination of employment by reason of death or Disability, or more than 3 months after Optionee’s termination for any reason other than death or Disability, the Option shall be deemed to be a non-statutory stock option. In addition, if a disposition (as defined in Section 424(c) of the Code) of shares of Common Stock acquired under the exercise of the Option occurs before the expiration of 2 years after the Date of grant, or the expiration of one year after Optionee’s exercise and acquisition of shares acquired under this Option (a “disqualifying disposition”), the Option will, to the extent of the disqualifying disposition, be treated in a manner similar to a non-statutory stock option.