This excerpt taken from the MENT 10-Q filed Sep 7, 2007.
10. LIMITED STOCK APPRECIATION RIGHTS.
10.1 Each option granted under the Plan shall include a related limited stock appreciation right.
10.2 Limited stock appreciation rights shall be exercisable only during the 60 calendar days immediately following a Change in Control and only if the immediate resale of shares acquired upon exercise of the related option would subject the optionee to liability under Section 16(b) of the 1934 Act, provided, however, that a limited stock appreciation right may not be exercised within six months of its date of grant. Upon exercise of a limited stock appreciation right, the option or portion thereof to which the right relates must be surrendered. The shares subject to an option or portion thereof that is surrendered upon exercise of a limited stock appreciation right shall not be available for future option grants under the Plan.
10.3 Each limited stock appreciation right shall entitle the holder to receive from Mentor Graphics an amount equal to the excess of the fair market value at the time of exercise of one share of Mentor Graphics Common Stock over the option price per share under the related option, multiplied by the number of shares covered by the related option or portion of the related option.
10.4 Payment upon exercise of a limited stock appreciation right by Mentor Graphics may be made only in cash.
10.5 Limited stock appreciation rights may not be assigned or transferred except on death, by will or operation of law and may be exercised only by the holder or by a successor or representative after death.
This excerpt taken from the MENT DEF 14A filed Apr 30, 2007.