Qualified Stock Option Plans . . .

are a form of tax-advantaged incentive stock option plan used by growing companies to attract and retain important employees. By adopting a qualified stock option plan and following its requirements, company employees can be granted options that are not taxed when they are granted or exercised. This defers the tax consequences of the investment until the shares purchased under the option are actually sold. See: ISO’s (Incentive Stock Options) for a more complete discussion of qualified stock option plans.