ISO Grant/Exercise Period

[Guest enelson]

With regards to the 10 year grant and exercise requirements for Incentive Stock Options, do the 10 years expire the day before the 10 year anniversary or do they expire the day of the 10 year anniversary? For example, if an ISO was granted to an individual on January 1, 2003, does the option period expire on December 31, 2012 or does it expire on January 1, 2013? Thanks.

[mbozek]

reg. 14a-422A-1 Q/A-2©(3) states that the option must be exerciseable by its terms only within 10 years of the date it is granted. It depends on whether you count the day the option is granted as the first day of the 10 year period or begin counting on the following day.