Qualified Stock Option. The Grantee 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 Shares on the date of exercise over the Exercise Price. If Grantee is an employee or a former employee, the Company will be required to withhold from Grantee's compensation or collect from Grantee and pay to the applicable taxing authorities an amount in cash equal to a percentage of this compensation income at the time of exercise, and may refuse to honor the exercise and refuse to deliver the Shares if such withholding amounts are not delivered at the time of exercise.
Qualified Stock Option. 2. In the event that the employment or service of the Holder shall be terminated prior to the Expiration Date (otherwise than by reason of death or disability), the Option may, subject to the provisions of the Plan, be exercised (to the extent that the Holder was entitled to do so at the termination of this employment or service) at any time within three months after such termination, but not after the Expiration Date, provided, however, that if such termination shall have been for cause or voluntarily by the Holder and without the consent of the Company or any subsidiary corporation thereof, as the case may be (which consent shall be presumed in the case of normal retirement) or voluntarily by the Holder and Holder accepts employment with a competitor of the Company, the Option and all rights of the Holder hereunder, to the extent not theretofore exercised, shall forthwith terminate immediately upon such termination. Nothing in this Agreement shall confer upon the Holder any right to continue in the employ or service of the Company or any subsidiary of the Company or affect the right of the Company or any subsidiary to terminate his employment or service at any time.
Qualified Stock Option. If Shares purchased under an Incentive Stock Option are disposed of prior to the expiration of such one-year or two-year periods, any gain realized on such disposition will be treated as compensation income (taxable at ordinary income rates) to the extent of the difference between the Exercise Price and the lesser of (i) the Fair Market Value of the Shares on the date of exercise, or (ii) the sale price of the Shares.
Qualified Stock Option. In the event that an Option granted hereunder is exercised by the legal representative of a deceased or disabled Grantee, written notice of such exercise must be accompanied by a certified copy of letters testamentary or equivalent proof of the right of such legal representative or legatee to exercise such Option.
Qualified Stock Option. The parties acknowledge and agree that, as additional incentive to Executive, Executive shall be granted, immediately upon execution of this Agreement, a qualified stock option (the "Option") to purchase one million (1,000,000) shares of Common Stock of the Company at an exercise price of One and Eleven-Sixteenths Dollars ($1-11/16) per share pursuant to an option agreement on the Company's standard form under its 1998 Stock Option Plan (the "Plan"). Subject to the forfeiture provision and repurchase right of the Company described below, the option agreement shall provide that:
Qualified Stock Option. The Committee may provide in any Option or Formula Option, as the case may be, which it grants that a condition to the exercise of such Option or Formula Option, as the case may be, shall be the grantee's agreement to remain an employee of and/or to otherwise render services to the Company or any of its Subsidiaries for a specified period of time following the date of grant. This condition shall not impose on the Company or any Subsidiary any obligation to employ the grantee or otherwise retain the grantee as a director for any period of time or otherwise constitute a contract of employment.