Common use of Special Tax Provisions Clause in Contracts

Special Tax Provisions. 3.1 Section 83(b) Election. Individual understands that under Section 83 of the Internal Revenue Code of 1986, as amended (the "Code"), the excess of the fair market value of the Shares on the date any forfeiture restrictions applicable to such Shares lapse over the Purchase Price for such Shares will be reportable as ordinary income on such lapse date. For this purpose, the term "forfeiture restrictions" includes the right of the Corporation to repurchase the Shares pursuant to the Repurchase Right provided under Article 5 of this Agreement. Individual understands that he/she may elect under Section 83(b) of the Code to be taxed at the time the Shares are acquired hereunder, rather than when and as such Shares cease to be subject to such forfeiture restrictions. Such election must be filed with the Internal Revenue Service within thirty (30) days after the date of this Agreement. Even if the fair market value of the Shares on the date of this Agreement equals the Purchase Price paid (and thus no tax is payable), the election must be made to avoid adverse tax consequences in the future. The form for making this election is attached as Exhibit B hereto. Individual understands that failure to make this filing within the thirty (30)-day period will result in the recognition of ordinary income by Individual as the forfeiture restrictions lapse.

Special Tax Provisions. 3.1 Section 83(bSECTION 83(B) ElectionELECTION. Individual The Participant understands that under Section 83 of the Internal Revenue Code of 1986, as amended (the "Code"), the excess of the fair market value of the Shares on the date any forfeiture restrictions applicable to such Shares shares lapse over the Purchase Price for such Shares will be reportable as ordinary income on such lapse date. For this purpose, the term "forfeiture restrictions" includes the right of the Corporation to repurchase the Shares pursuant to the Repurchase Right provided under Article 5 V of this Agreement. Individual Participant understands that he/she may elect under Section 83(b) of the Internal Revenue Code of 1986, as amended (the "Code") to be taxed at the time the Shares are acquired hereunder, rather than when and as such Shares cease to be subject to such forfeiture restrictions. Such election must be filed with the Internal Revenue Service within thirty (30) days after the date of this Agreement. Even if the fair market value of the Shares on the date of this Agreement equals the Purchase Price paid (and thus no tax is payable), the election must be made to avoid adverse tax consequences in the future. The form for making this election is attached as Exhibit B D hereto. Individual Participant understands that failure to make this filing within the thirty (30)-day period will result in the recognition of ordinary income by Individual the Participant as the forfeiture restrictions lapse.

Special Tax Provisions. 3.1 Section 83(bSECTION 83(B) ElectionELECTION. Individual The Purchaser understands that under Section 83 of the Internal Revenue Code of 1986, as amended (the "Code"), the excess of the fair market value of the Shares on the date any forfeiture restrictions applicable to such Shares shares lapse over the Purchase Price for such Shares will be reportable as ordinary income on such lapse date. For this purpose, the term "forfeiture restrictions" includes the right of the Corporation to repurchase the Shares pursuant to the Repurchase Right provided under Article 5 V of this Agreement. Individual Purchaser understands that he/she may elect under Section 83(b) of the Internal Revenue Code of 1986, as amended (the "Code") to be taxed at the time the Shares are acquired hereunder, rather than when and as such Shares cease to be subject to such forfeiture restrictions. Such election must be filed with the Internal Revenue Service within thirty (30) days after the date of this Agreement. Even if the fair market value of the Shares on the date of this Agreement equals the Purchase Price paid (and thus no tax is payable), the election must be made to avoid adverse tax consequences in the future. The form for making this election is attached as Exhibit B D hereto. Individual Purchaser understands that failure to make this filing within the thirty (30)-day period will result in the recognition of ordinary income by Individual the Purchaser as the forfeiture restrictions lapse.

Special Tax Provisions. 3.1 Section 83(bSECTION 83(B) ElectionELECTION. Individual The Participant understands that under Section 83 of the Internal Revenue Code of 1986, as amended (the "Code"), the excess of the fair market value of the Shares on the date any forfeiture restrictions applicable to such Shares shares lapse over the Purchase Price for such Shares will be reportable as ordinary income on such lapse date. For this purpose, the term "forfeiture restrictions" includes the right of the Corporation to repurchase the Shares pursuant to the Repurchase Right provided under Article 5 V of this Agreement. Individual Participant understands that he/she may elect under Section 83(b) of the Internal Revenue Code of 1986, as amended (the "Code") to be taxed at the time the Shares are acquired hereunder, rather than when and as such Shares cease to be subject to such forfeiture restrictions. Such election must be filed with the Internal Revenue Service within thirty (30) days after the date of this Agreement. Even if the fair market value of the Shares on the date of this Agreement equals the Purchase Price paid (and thus no tax is payable), the election must be made to avoid adverse tax consequences in the future. The form for making this election is attached as Exhibit B C hereto. Individual Participant understands that failure to make this filing within the thirty (30)-day period will result in the recognition of ordinary income by Individual the Participant as the forfeiture restrictions lapse.