Common use of Special Tax Consequences Clause in Contracts

Special Tax Consequences. The Employee acknowledges that, to the extent that the aggregate fair market value of stock with respect to which "incentive stock options" (within the meaning of Section 422A of the Code, but without regard to Section 422A(d) of the Code), including the Option, are exercisable for the first time by the Employee during any calendar year (under the Plan and all other incentive stock option plans of the Company, any Subsidiary and any Parent Corporation) exceeds $100,000, such options shall be treated as not qualifying under Section 422A of the Code but rather shall be taxed as nonqualified options. The Employee further acknowledges that the rule set forth in the preceding sentence shall be applied by taking options into account in the order in which they were granted. For purposes of these rules, the fair market value of stock shall be determined as of the time the option with respect to such stock is granted.

Special Tax Consequences. The Employee acknowledges that, to the extent that the aggregate aggregate, fair market value of stock with respect to which "incentive stock options" (within the meaning of Section 422A of the Code, but without regard to Section 422A(d) of the Code), including the Option, are exercisable for the first time by the Employee during any calendar year (under the Plan and all other incentive stock option plans of the Company, any Subsidiary and any Parent Corporation) exceeds $100,000, such options shall be treated as not qualifying under Section 422A of the Code but rather shall be taxed as nonqualified non-qualified options. The Employee further acknowledges that the rule set forth in the preceding sentence shall be applied by taking options into account in the order in which they were granted. For purposes of these rules, the fair market value of stock shall be determined as of the time the option with respect to such stock is granted.