Common use of Time-Vested Option Clause in Contracts

Time-Vested Option. On the IPO Date, the Executive shall be granted an option (the "Time-Vested Option") under the Company's Executive Stock Incentive Plan to purchase a number of shares of Common Stock (rounded to the nearest whole share) equal to 2.5 percent of total number of outstanding shares of all classes of the common stock immediately prior to the IPO Date. The Time-Vested Option shall vest based on the continued employment of the Executive in equal quarterly installments of 1/16 of the number of subject shares on the last day of each of the 16 consecutive calendar quarters ending following the IPO Date. The exercise price of the Time-Vested Option shall be the price per share to the public of the Common Stock in the initial public offering (the "IPO Price"). The Time-Vested Option shall have a 10-year term of exercise and, except as otherwise provided in this Agreement, shall remain exercisable following vesting for the full term without regard to the employment status of the Executive. The Time Vested Option shall be intended to qualify as an "incentive stock option" to the maximum extent permissible under Section 422 of the Internal Revenue Code of 1986, as amended (the "Code").