Common use of Extended Exercise Period Clause in Contracts

Extended Exercise Period. As an additional severance benefit, the exercise period for all of your vested options will be extended until the date that is three (3) years from the termination of the Consulting Agreement; provided that in the event a Conflict arises during the extended exercise period, the extended exercise period will end and you must exercise any vested options within ninety (90) days of the occurrence of the Conflict. You understand and agree that amending your option grants to provide for an extended exercise period may convert any options that were granted as “incentive stock options” under Section 422 of the Internal Revenue Code of 1986 (as amended) to no longer be “incentive stock options.” The loss of “incentive stock options” status has tax implications that you should discuss with your own tax and legal advisors. If you do not wish to extend the post-termination exercise window of the options, the options will retain “incentive stock options” status as long as you exercise the options within three (3) months following ceasing of vesting.