How is compensation from the exercise of nonstatutory stock options reported on Form W-2 if compensation is NOT recognized on the date of the grant? The spread between the:

1) Grant price of the stock over the fair market value at the time of vesting is shown as a "V" in box 12.

2) Grant price of the stock over the exercise price at the time of vesting is shown as a "V" in box 12.

3) Fair market value of the stock over the exercise price at the time of exercise is shown as a "V" in box 12.

4) Grant price of the stock over the exercise price at the time of exercise is shown as a "V" in box 12.