Equity Compensation 101
By Gary T. Moyer, April 11, 2000

ISO Requirements

• Option Plan
  • Must be a written plan specifying the number of shares to be issued and the class of recipients
  • Must be approved by shareholders within one year of adoption
  • Options must be granted within 10 years from adoption of plan

• Option Term
  • The recipient of the option must exercise the option within ten years from its date of grant (or option lapses)
    • For ISOs granted to persons owning 10% or more of Company’s outstanding stock, the exercise period is limited to five years

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