Common use of Options Granted to Outside Directors Clause in Contracts

Options Granted to Outside Directors. Your stock options will expire on the earlier of (i) the Option Expiration Date and (ii) the date and time of your removal as a director for cause under the Company's By-laws. To qualify for the favorable tax treatment accorded to incentive stock options, you (or, in the event of your death, your estate or designated beneficiaries) must exercise any stock options that are designated as ISOs within three months after you terminate service as a common-law employee of the Company and its subsidiaries for any reason other than death or disability and within one year after you terminate service as common-law employee due to your death or disability. If they are exercised later, they will be subject to tax as if they were designated as NQSOs.