SSG Cycles manufactures and distributes motorcycle parts and supplies. Employees are offered a variety of share-based compensation plans. Under its nonqualified stock option plan, SSG granted options to key officers on January 1, 2021. The options permit holders to acquire 22 million of the company’s $1 par common shares for $13 within the next six years, but not before January 1, 2024 (the vesting date). The market price of the shares on the date of grant is $15 per share. The fair value of the 22 million options, estimated by an appropriate option pricing model, is $3.90 per option.

Determine the total compensation cost pertaining to the incentive stock option plan.