Common use of Qualification as an Incentive Stock Option Clause in Contracts

Qualification as an Incentive Stock Option. The Option Holder understands that, subject to the terms of Section 2 of this Agreement, this Option is intended to qualify as an “incentive stock option” within the meaning of section 422(b) of the Code. The Option Holder understands, further, that the Option Price for the Option Shares subject to this Option has been set by the Committee at a price that the Committee has determined to be not less than 100% (or, if the Option Holder owns more than 10% of the combined voting power of all classes of stock of the Company on the Date of Grant, 110%) of the Fair Market Value of the Option Shares on the Date of Grant. The Company believes that the methodology by which the Committee valued the Option Shares at such time represented a good faith attempt, as defined in the Code, at reaching an accurate appraisal of the Fair Market Value of the Option Shares. The Option Holder understands and acknowledges, however, that the Company shall not be responsible for any additional tax liability incurred by the Option Holder in the event that the Internal Revenue Service is to determine that this Option does not qualify as an incentive stock option, for any reason, including without limitation a determination that the Committee’s valuation did not represent a good faith attempt to value the Option Shares.

Qualification as an Incentive Stock Option. The Option Holder understands that, subject to the terms of Section 2 of this Agreement, this Option is intended to qualify as an “incentive stock option” within the meaning of section Section 422(b) of the Code. The Option Holder understands, further, that the Option Price for the Option Shares subject to this Option has been set by the Committee at a price that the Committee has determined to be not less than 100% (or, if the Option Holder owns more than 10% of the combined voting power of all classes of stock of the Company on the Date of Grant, 110%) of the Fair Market Value of the Option Shares on the Date of Grant. The Company believes that the methodology by which the Committee valued the Option Shares at such time represented a good faith attempt, as defined in the Code, at reaching an accurate appraisal of the Fair Market Value of the Option Shares. The Option Holder understands and acknowledges, however, that the Company shall not be responsible for any additional tax liability incurred by the Option Holder in the event that the Internal Revenue Service is to determine that this Option does not qualify as an incentive stock option, for any reason, including without limitation a determination that the Committee’s valuation did not represent a good faith attempt to value the Option Shares.