Common use of Restrictions on Transferability of Option Clause in Contracts

Restrictions on Transferability of Option. This Option may not be transferred by the Grantee other than by will or the laws of descent and distribution and may be exercised during the Grantee's lifetime only by the Grantee or the Grantee's guardian or legal representative. However, if this Option is not intended to be treated as an incentive stock option under Section 422 of the Internal Revenue Code (see Section I above) it may during the Grantee's lifetime also be transferred to and may thereafter be exercised by members of the Grantee's immediate family, or a partnership whose members include only the Grantee and/or members of the Grantee's immediate family, or a trust for the benefit of only the Grantee and/or members of the Grantee's immediate family; but (a) any such permitted transfer shall not prevent termination of the Option following the Grantee's termination of employment as provided in Section 3 above, and (b) this Option shall terminate immediately if it has been transferred to a partnership or trust as permitted above and any person who is not a member of the Grantee's immediate family becomes a member of such partnership or a beneficiary of such trust, As used herein, the Grantee's immediate family includes only the Grantee's spouse, parents or other ancestors, and children and other direct descendants of the Grantee or of the Grantee's spouse (including such ancestors and descendants by adoption).

Restrictions on Transferability of Option. This Option These Options may not be transferred by the Grantee other than by will or the laws of descent and distribution and may be exercised during the Grantee's lifetime only by the Grantee or the Grantee's guardian or legal representative. However, if this Option is while these Options are not intended to be treated as an incentive stock option under Section 422 of the Internal Revenue Code (see Section I 1 above) it they may during the Grantee's lifetime also be transferred to and may thereafter be exercised by members of the Grantee's immediate family, or a partnership whose members include only the Grantee and/or members of the Grantee's immediate family, or a trust for the benefit of only the Grantee and/or members of the Grantee's immediate family; but (a) any such permitted transfer shall not prevent termination of the Option Options following the Grantee's termination of employment as provided in Section 3 above, and (b) this Option these Options shall terminate immediately if it has they have been transferred to a partnership or trust as permitted above and any person who is not a member of the Grantee's immediate family becomes a member of such partnership or a beneficiary of such trust, . As used hereinxxxxx, the Grantee's immediate family includes only the Grantee's spouse, parents or other ancestors, and children and other direct descendants of the Grantee or of the Grantee's spouse (including such ancestors and descendants descandants by adoption).