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Equity Compensation 101
By Gary T. Moyer, April 11, 2000
ISO Requirements (con’t)
- Employment at Time of Exercise
- The optionee must exercise the option while employed by the Company, or within three months after employment terminates
- If employment terminates due to disability, the exercise period is one year
- If employment terminates because of death, the successor may exercise it during the same time the employee/decedent could have exercised it
- Limit on Option Value
- The fair market value of the shares (determined on the option grant date) that may be purchased for the first time in any calendar year may not exceed $100,000 (the excess is treated as a non-qualified stock option)
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