Common use of ISO Value Limit Clause in Contracts

ISO Value Limit. If, as indicated on the cover page of this Option Agreement, the Option is intended to qualify as an “incentive stock option” (an “ISO”) within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), and if the aggregate Fair Market Value (as defined below) of the shares with respect to which ISOs (whether granted under the Option or other incentive stock options under all other plans of the Corporation or any of its Affiliates) first become exercisable by the Optionee in any calendar year exceeds $100,000, as measured on the applicable grant dates, to such extent the Option will be rendered a nonqualified stock option. For this purpose, the Fair Market Value of the stock subject to options will be determined as of the date the options were awarded. In reducing the number of options treated as incentive stock options to meet the $100,000 limit, the most recently granted options will be reduced (recharacterized as nonqualified stock options) first. To the extent a reduction of simultaneously granted options is necessary to meet the $100,000 limit, the Administrator may, in the manner and to the extent permitted by law, designate which shares of Common Stock are to be treated as shares acquired pursuant to the exercise of an incentive stock option.