Incentive stock option agreements (SOS) are contracts between a company and its employees that allow the employee to purchase the company's stock at a pre-determined discounted price. SOS are a type of compensation for employees, and the discounted price is meant to incentivize employees to remain with the company. There are two main types of incentive stock option agreements: non-qualified incentive stock options (SOS) and qualified incentive stock options (SOS). SOS are not subject to tax at the time of grant or vesting, but are taxed when the option is exercised. SOS are subject to taxation at the time the option is exercised, and are subject to special tax regulations.
Incentive Stock Option Agreement
Category:
State:
Multi-State
Control #:
US-C-P-SO-9110081-1
Format:
Word;
Rich Text
Instant download
Description
This is a sample Incentive Stock Option Agreement. An incentive stock option (ISO) is a corporate benefit that gives an employee the right to buy shares of company stock at a discounted price with the added benefit of possible tax breaks on the profit. The profit on qualified ISOs is usually taxed at the capital gains rate, not the higher rate for ordinary income. The form may be customized to suit your needs.
Incentive stock option agreements (SOS) are contracts between a company and its employees that allow the employee to purchase the company's stock at a pre-determined discounted price. SOS are a type of compensation for employees, and the discounted price is meant to incentivize employees to remain with the company. There are two main types of incentive stock option agreements: non-qualified incentive stock options (SOS) and qualified incentive stock options (SOS). SOS are not subject to tax at the time of grant or vesting, but are taxed when the option is exercised. SOS are subject to taxation at the time the option is exercised, and are subject to special tax regulations.
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