By filing an election under Section 83(b)of the Internal Revenue Code within thirty days of exercising an option to purchase shares subject to a restricted plan

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By filing an election under Section 83(b) of the Internal Revenue Code within thirty days of exercising an option to purchase shares subject to a restricted plan, an employee elects to pay tax at the time the stock is purchased in an amount equal to what would be due if the stock were not subject to vesting. This allows the employee to potentially realize long-term capital gains when the shares are sold in the future.

By Filing an Election Under Section 83(b)of the Internal Revenue