Non-statutory Stock Option (Nonqualified Stock Option) Option is NOT Fully Transferable or Subject to Risk of Forfeiture

Applicable Option Date Federal (Nonqualified) Pennsylvania Federal Treatment Employee Federal Treatment Employer Pennsylvania Personal Income Tax Treatment Employee Pennsylvania Personal Income Tax Treatment Employer Option has readily ascertainable fair market value on date of grant (Option NOT transferable or subject to risk of forfeiture) Grant Date The value of the option less any amount paid for the option will be taxed as compensation Compensation (ordinary) deduction equal to income amount recognized by employee No tax impact No tax impact Exercise Date No tax impact No tax impact No tax impact No tax impact Lapse Date The value of the option less any amount paid for the option will be taxed as compensation. Compensation deduction equal to income subject to withholding or federal Form 1099 issued to employee or independent contractor. Stock Disposition Date Capital gain equal to difference between sale price and fair market value at the date of exercise option No tax impact Gain or loss on the sale of the stock is the difference between the sale price and the taxpayer's basis in the stock which equals the exercise price of the option plus any compensation recognized as a result of exercising the option No tax impact Option does not have readily ascertainable fair market value on date of grant (Option not transferable or subject to risk of forfeiture) Grant Date No tax impact No tax impact No tax impact No tax impact Exercise Date The value of the option less any amount paid for the option will be taxed as compensation Compensation (ordinary) deduction equal to income amount recognized by employee No tax impact No tax impact Exercise Date No tax impact No tax impact No tax impact No tax impact Lapse Date The value of the option less any amount paid for the option will be taxed as compensation Compensation deduction equal to income subject to withholding or federal Form 1099 issued to employee or independent contractor Stock Disposition Date Capital gain equal to difference between sale price and fair market value at the date of exercise option No tax impact Gain or loss on the sale of the stock is the difference between the sale price and the taxpayer's basis in the stock which equals the exercise price of the option plus any compensation recognized as a result of exercising the option No tax impact