Common use of Exercise of Nonqualified Stock Option Clause in Contracts

Exercise of Nonqualified Stock Option. If the Option does not qualify as an incentive stock option, there may be a regular federal income tax liability and a California income tax liability upon the exercise of the Option. Purchaser will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the fair market value of the Shares on the date of exercise over the Purchase Price Per Share. The Company will be required to withhold from Purchaser's compensation or collect from Purchaser and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise.

Exercise of Nonqualified Stock Option. If the Option does not ------------------------------------- qualify as an incentive stock option, there may be a regular federal income tax liability and a California income tax liability upon the exercise of the Option. Purchaser will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the fair market value of the Shares on the date of exercise over the Purchase Price Per Share. The Company will be required to withhold from Purchaser's compensation or collect from Purchaser and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise.

Exercise of Nonqualified Stock Option. If the Option does not qualify as an incentive stock option, there may be a regular federal income tax liability and a California income tax liability upon the exercise of the Option. Purchaser will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the fair market value Fair Market Value of the Shares on the date of exercise over the Purchase Price Per ShareExercise Price. The Company will be required to withhold from Purchaser's compensation or collect from Purchaser and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise.

Exercise of Nonqualified Stock Option. If the Option does not qualify as an incentive stock option, there There may be a regular federal income tax liability and a California income tax liability upon the exercise of the Option. Purchaser will may be treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the fair market value of the Shares on the date of exercise over the Purchase Price Per Share. The Company will be required to withhold from Purchaser's compensation or collect from Purchaser and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise.

Exercise of Nonqualified Stock Option. If the Option does not qualify as an incentive stock option, there There may be a regular federal income tax liability and a California income tax liability upon the exercise of the Option. Purchaser will Participant may be treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the fair market value of the Shares on the date of exercise over the Purchase Price Per ShareExercise Price. The Company will be required to withhold from PurchaserParticipant's compensation or collect from Purchaser Participant and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise.

Exercise of Nonqualified Stock Option. If the Because this Option does not qualify as is an incentive unqualified stock option, there may be a regular federal income tax liability and a California income tax liability upon the exercise of the this Option. Purchaser Participant will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the fair market value of the Shares on the date of exercise over the Purchase Price Per ShareExercise Price. The Company will be required to withhold from PurchaserParticipant's compensation or collect from Purchaser Participant and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise.