Common use of Material Tax Consequences Clause in Contracts

Material Tax Consequences. for Employees Who are Tax Residents in Hong Kong. The following is a general summary of the tax consequences of the exchange of options under the offer for Hong Kong tax residents. This discussion is based on Hong Kong tax law as of the date of the offer, which is subject to change, possibly on a retroactive basis. This summary does not discuss all of the tax consequences that may be relevant to you in light of your particular circumstances, nor is it intended to be applicable in all respects to all categories of option holders. You will not be subject to tax when the new option is granted. When you exercise the option, you will be subject on tax on the difference between the fair market value of the shares on the date of exercise and the exercise price. You will not be subject to tax when you sell shares.