Extract to table

The exercise price of the option must not be less than the fair market value of the underlying stock on the date of grant

For stock that is not readily tradable on an established securities market (as was the case for AHT common stock prior to the IPO), fair market value must be determined by the reasonable application of a reasonable valuation method

The option must cover stock of the "service recipient" (or a corporation in a chain of corporations connected through 50% ownership with the service recipient)

The election must be filed with the Internal Revenue Service within thirty (30) days after the date of the transfer of the property

The election must include the information specified in Treasury Regulation § 1

83-2(e), including the name, address, and taxpayer identification number of the service provider; a description of the property; the date of transfer; the taxable year for which the election is made; the nature of the restriction; the fair market value of the property at the time of transfer (determined without regard to any restriction other than one that by its terms will never lapse); the amount paid for the property; and a statement that copies of the election have been furnished to all persons for whom the service provider is required to perform services