Common use of Disqualifying Disposition Clause in Contracts

Disqualifying Disposition. Optionees who make a "disposition" (as defined in the Code) of all or any of the Stock acquired through the exercise of Stock Options within two years from the date of grant of the Stock Option, or within one year after the issuance of Stock relating thereto, must immediately advise the Company in writing as to the occurrence of the sale and the price realized upon the sale of such Stock; and each Optionee agrees that he or she shall maintain all such Stock in his or her name so long as he or she maintains beneficial ownership of such Stock. A "disposition" within two years from the date of grant of the stock option or within one year after the issuance of the stock upon exercise of the option, will cause Employee to recognize income in the year of the disqualifying disposition.