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

Qualification as an Incentive Stock Option. The Optionee understands that this Incentive Option is intended to qualify as an "incentive stock option" within the meaning of Section 422 of the Code. The Optionee must meet certain holding periods under Section 422(a) of the Code to obtain the federal income tax treatment applicable to the exercise of Incentive Stock Options and the disposition of shares acquired thereby, The Optionee further understands that the exercise price of the Shares subject to this Incentive Option has been set by the Committee of the Board of Directors at a price that such Committee determined to be not less than 100% (or, if the Optionee, at the date of grant of this Incentive Option, owned more than 10% of the total combined voting power of the Company's outstanding voting securities, 110%) of the Fair Market Value, as determined in accordance with the Plan, of a share of Common Stock on. the date of grant. The Optionee further understands and agrees, however, that the Company shall not be liable or responsible for any additional tax liability incurred by the Optionee in the event that the Internal Revenue Service for any reason determines that this Incentive Option does not qualify as an Incentive Stock Option within the meaning of the Code.

Qualification as an Incentive Stock Option. The Optionee understands that this Incentive Option is intended to qualify quality as an "incentive stock option" within the meaning of Section 422 of the Code. The Optionee must meet certain holding periods under Section 422(a) of the Code to obtain the federal income tax treatment applicable to the exercise of Incentive Stock Options and the disposition of shares acquired thereby, . The Optionee further understands that the exercise price Exercise Price of the Shares subject to this Incentive Option has been set by the Option Committee of the Board of Directors at a price prices that such Committee committee determined to be not less than 100% (or, if the Optionee, at the date of grant of this Incentive Option, owned more than 10% of the total combined voting power of the Company's outstanding voting securities, 110%) of the Fair Market Value, as determined in accordance with the Plan, of a share of Common Stock on. on the date of grant. The Optionee further understands and agrees, however, that the Company company shall not be liable or responsible for any additional tax liability incurred by the Optionee in the event that the Internal Revenue Service for any reason determines that this Incentive Option does not qualify as an Incentive Stock Option within the meaning of the Code.