employee stock ownership plan
(6) Definitions For purposes of this subsection— (A) Employee stock ownership plan The term “employee stock ownership plan” has the meaning given such term by section 4975(e)(7). (B) Employer securities The term “employer security” has the meaning given such term by section 409(l). (C) Synthetic equity The term “synthetic equity” means any stock option, warrant, restricted stock, deferred issuance stock right, or similar interest or right that gives the holder the right to acquire or receive stock of the S corporation in the future. Except to the extent provided in regulations, synthetic equity also includes a stock appreciation right, phantom stock unit, or similar right to a future cash payment based on the value of such stock or appreciation in such value.