nonlapse restrictions

(iv) Regardless of whether the stock offered under an option is publicly traded, a good-faith attempt to meet the option price requirements of this paragraph (e) is not demonstrated unless the fair market value of the stock on the date of grant is determined with regard to nonlapse restrictions (as defined in 1.833(h)) and without regard to lapse restrictions (as defined in 1.833(i)).

Source

26 CFR § 1.422-2


Scoping language

None
Is this correct? or