Vesting period: minimum requirement for employee stock options, adjustable on transferred options and waived on death or permanent incapacity. A minimum one-year vesting period applies to ESOS grants, subject to adjustment where substituted options from a transferor company are involved; the minimum does not apply on employee death or permanent incapacity, when options vest on that date as per the regulations and the company must adopt a compliant policy; the company may also specify a lock-in period for shares issued on exercise.