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DewDiligence

01/07/15 10:01 AM

#809 RE: guyschmid #808

The rationale is to reduce the portion of his gain that is taxed at the ordinary-income rate and increase the proportion of his gain that will (eventually) be taxed at the (lower) long-term-capitals-gains rate. I.e., the lower the share price when one exercises the options, the more favorable the tax treatment.