Restriction on transferability.
(j) Restriction on transferability. An employee stock purchase plan or offering must, by its terms, provide that options granted under the plan are not transferable by the optionee other than by will or the laws of descent and distribution, and must be exercisable, during the optionee's lifetime, only by the optionee. For general rules relating to the restriction on transferability required by this paragraph (j), see 1.421-1(b)(2). For a limited exception to the requirement of this paragraph (j), see section 424(h)(3).