Term Clause Example from Business Contracts

Term. You may not exercise your Option before the commencement of its term or after its term expires. The term of your option commences on the Date of Grant and expires upon the earliest of the following: (a) immediately upon the termination of your Continuous Service for Cause; (b) three months after the termination of your Continuous Service for any reason other than Cause, you become Disabled or death; (c) 12 months after the termination of your Continuous Service if you become Disabled; (d) 12 mon...ths after your death if you die during your Continuous Service; 1 (e) immediately upon a Change in Control if the Board has determined that the Option will terminate in connection with a Change in Control, (f) the Expiration Date indicated in your Grant Notice; or (g) the day before the 10th anniversary of the Date of Grant. Notwithstanding the foregoing, if you die during the period provided in Section 3(b) or 3(c) above, the term of your Option shall not expire until the earlier of (i) 12 months after your death, (ii) upon any termination of the Option in connection with a Change in Control, (iii) the Expiration Date indicated in your Grant Notice, or (iv) the day before the 10th anniversary of the Date of Grant. Additionally, the Post-Termination Exercise Period of your Option may be extended as provided in the Plan. To obtain the federal income tax advantages associated with an ISO, the Code requires that at all times beginning on the date of grant of your Option, and ending on the day three months before the date of your Option's exercise, you must be an employee of the Company or an Affiliate, except in the event of your death or if you become Disabled. If the Company provides for the extended exercisability of your Option under certain circumstances for your benefit, your Option will not necessarily be treated as an ISO if you exercise your Option more than three months after the date your employment terminates. View More