This Option. Our Board of Directors granted you this option on _____, 19__. The exercise (or purchase) price of this option is $_____ per share. (This is what it will cost you per share to exercise this option.) You are never obligated to exercise this option. You can only exercise this option after the shares have vested (vesting is the rate at which your shares become available to exercise). The shares for this option vest as follows: _____ shares will be available to exercise on the ___ day of each month starting on _____, 19__ until 100% of this option has vested, or until the option has been terminated, whichever comes first. You cannot exercise this option until we have registered these shares under the Securities Act of 1933. You may exercise this option, even if those shares have not been registered, if we have determined that they do not need to be registered. To the best of our knowledge, we have registered these shares under the Securities Act of 1933. This option qualifies for tax purposes as an "incentive stock option" as stated in Section 422A of the Internal Revenue Code of 1986. You cannot transfer this option to someone else, except after death through a will or by the laws of descent and distribution. This means that you are the only person who can exercise this option during your lifetime, but your estate may exercise it per these terms and conditions following your death.
This Option o is intended to be an Incentive Stock Option o is not intended to be an Incentive Stock Option Notwithstanding the above, if designated as an Incentive Stock Option, if the Shares subject to this Option (and all other incentive stock options granted to Optionee by the Company or any “parent” or “subsidiary” (within the meaning of Code Sections 424(e) and (f), including under other plans) that first become exercisable in any calendar year have an aggregate Fair Market Value (determined for each Share as of the date of grant of the option covering such Share) in excess of $100,000, the Shares in excess of $100,000 shall be treated as subject to a nonstatutory stock option. For purposes of this Option, incentive stock options shall be taken into account in the order in which they were granted, and the Fair Market Value of the Shares subject to an incentive stock option shall be determined as of the date of the grant of such stock option.