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What are incentive stock options?

Incentive stock options (ISOs) are popular measures of employee compensation received as rights to company stock. These are a particular type of employee stock purchase plan intended to retain key employees or managers. ISOs often have more favorable tax treatment than other types of employee stock purchase plan.

What is an incentive stock option (ISO)?

ISOs are also called statutory or qualified stock options. Incentive stock options (ISOs) are a popular means of employee compensation for corporate management, granting rights to company stock at a discounted price at a future date. This type of employee stock purchase plan is intended to retain key employees or managers.

Is the option evidenced by this agreement an incentive stock option?

It is intended that the option evidenced by this agreement shall be an incentive stock option as defined in Section 422 of the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder (the “Code”).

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