8x8 2009 Annual Report Download - page 91

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6.4 Effect of Termination of Service.
(a) Option Exercisability. Subject to earlier termination of the Option
as otherwise provided herein and unless otherwise provided by the Board in the grant of an
Option and set forth in the Option Agreement, an Option shall be exercisable after a Participant’ s
termination of Service to the extent it is then vested only during the applicable time period
determined in accordance with this Section 6.4 and thereafter shall terminate:
(i) Disability. If the Participant’ s Service terminates because
of the Disability of the Participant, the Option, to the extent unexercised and exercisable on the
date on which the Participant’ s Service terminated, may be exercised by the Participant (or the
Participant’ s guardian or legal representative) for a minimum period of six (6) months to the
extent required by applicable law (or such other legal period of time as determined by the Board,
in its discretion) after the date on which the Participant’ s Service terminated, but in any event no
later than the date of expiration of the Option’ s term as set forth in the Option Agreement
evidencing such Option (the “Option Expiration Date”).
(ii) Death. If the Participant’ s Service terminates because of
the death of the Participant, the Option, to the extent unexercised and exercisable on the date on
which the Participant’ s Service terminated, may be exercised by the Participant’ s legal
representative or other person who acquired the right to exercise the Option by reason of the
Participant’ s death for a minimum period of six (6) months to the extent required by applicable
law (or such other legal period of time as determined by the Board, in its discretion) after the
date on which the Participant’ s Service terminated, but in any event no later than the Option
Expiration Date. The Participant’ s Service shall be deemed to have terminated on account of
death if the Participant dies within three (3) months (or such longer period of time as determined
by the Board, in its discretion) after the Participant’ s termination of Service.
(iii) Other Termination of Service. If the Participant’ s
Service terminates for any reason, except Disability or death, the Option, to the extent
unexercised and exercisable by the Participant on the date on which the Participant’ s Service
terminated, may be exercised by the Participant for a minimum period of thirty (30) days to the
extent required by applicable law (or such other legal period of time as determined by the Board,
in its discretion) after the date on which the Participant’ s Service terminated, but in any event no
later than the Option Expiration Date.
(b) Extension if Exercise Prevented by Law. Notwithstanding the
foregoing, if the exercise of an Option within the applicable time periods set forth in
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