Common use of Exercising the Option Clause in Contracts

Exercising the Option. The Optionee may incur regular federal income tax liability upon exercise of the Option. The Optionee 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 Exercised Shares on the date of exercise over their aggregate Exercise Price. If the Optionee is an Employee or a former Employee, the Company has certain withholding obligations as described in Section 11 of this Agreement.

Exercising the Option. The Optionee may incur regular federal income tax liability upon exercise of the a Nonstatutory Stock Option. The Optionee 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 Exercised Shares exercised shares on the date of exercise over their aggregate Exercise Price. If the Optionee is an Employee or a former Employee, the Company has certain withholding obligations as described in Section 11 of this Agreement.