(USA) Stock options available only to full time employees that are entitled to special tax treatment under the USA Internal Revenue Code. The employee who exercises the option does not have to pay tax until the employee actually sells the stock. However, the employee may be subject to alternative minimum tax. The company does not get a tax deduction. Similar arrangements exist in other jurisdictions, subject to local and tax and legal requirements. See 'Non-qualified Stock Options' and 'Combination Stock Option Plan' for comparison.