Alabama Stock Option Plan of Hayes Wheels International, Inc., which provides for grant of Incentive Stock Options and Nonqualified Stock Options

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-CC-18-345E
• Format: Word; Rich Text

Description

18-345E 18-345E . . . Stock Option Plan which provides for grant of Incentive Stock Options and Non-qualified Stock Options and (b) initial option grants to certain named officers, employees and consultants which contain specific Time Conditions and Performance Conditions as follows: number of shares underlying each option grant is divided into five equal portions which are designated Tranche A through Tranche E. Twenty percent of shares included in each of Tranches A through E shall satisfy Time Condition if optionee is employee or consultant on January 31, 1997 and on each January 31 thereafter. One hundred percent of shares included in each of Tranches A through E satisfy Performance Condition if average per share price of common stock for any consecutive twenty trading days on principal exchange on which common stock is traded equals or exceeds following prices: Tranche A - $16 per share, Tranche B - $32 per share, Tranche C - $48 per share, Tranche D - $64 per share, Tranche E - $80 per share. Notwithstanding above, Initial Grants become fully exercisable on ninth anniversary of date of grant Alabama Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program that offers various types of stock options to eligible employees, aiming to align their interests with the company's success. This plan encompasses both Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS). SOS are granted to key employees and provide favorable tax treatment under the Internal Revenue Code Section 422. These options allow employees to purchase company stock at a predetermined price, known as the exercise price, within a specific timeframe. To qualify for SOS, employees must meet certain criteria, such as being employed by the company for a minimum period and holding the acquired shares for a specified holding period. SOS, on the other hand, are granted to employees who may not meet the eligibility requirements for SOS or for strategic reasons determined by the company. SOS give employees the right to purchase company stock at a set exercise price, but the tax treatment differs from SOS. Upon exercise, employees are subject to ordinary income tax on the difference between the exercise price and the fair market value of the stock. The Alabama Stock Option Plan of Hayes Wheels International, Inc. recognizes the importance of providing both SOS and SOS to offer flexible incentives to employees across different levels within the organization. This ensures motivation and retention of valuable talent, while also serving as a tool to attract new employees. The plan includes clear guidelines on the administration, vesting schedules, and exercise procedures for both SOS and SOS. It outlines the maximum number of shares available for option grants, the exercise price determination process, and any restrictions on the transferability of options. The plan also addresses situations such as disability, retirement, or termination of employment, specifying the treatment of outstanding stock options during these circumstances. Through the Alabama Stock Option Plan, Hayes Wheels International, Inc. aims to align the interests of its employees with the company's long-term success, encourage loyalty, and provide attractive incentives to drive exceptional performance. It enables employees to share in the company's growth and success by becoming partial owners, fostering a sense of ownership and commitment towards furthering the organization's goals.

Alabama Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program that offers various types of stock options to eligible employees, aiming to align their interests with the company's success. This plan encompasses both Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS). SOS are granted to key employees and provide favorable tax treatment under the Internal Revenue Code Section 422. These options allow employees to purchase company stock at a predetermined price, known as the exercise price, within a specific timeframe. To qualify for SOS, employees must meet certain criteria, such as being employed by the company for a minimum period and holding the acquired shares for a specified holding period. SOS, on the other hand, are granted to employees who may not meet the eligibility requirements for SOS or for strategic reasons determined by the company. SOS give employees the right to purchase company stock at a set exercise price, but the tax treatment differs from SOS. Upon exercise, employees are subject to ordinary income tax on the difference between the exercise price and the fair market value of the stock. The Alabama Stock Option Plan of Hayes Wheels International, Inc. recognizes the importance of providing both SOS and SOS to offer flexible incentives to employees across different levels within the organization. This ensures motivation and retention of valuable talent, while also serving as a tool to attract new employees. The plan includes clear guidelines on the administration, vesting schedules, and exercise procedures for both SOS and SOS. It outlines the maximum number of shares available for option grants, the exercise price determination process, and any restrictions on the transferability of options. The plan also addresses situations such as disability, retirement, or termination of employment, specifying the treatment of outstanding stock options during these circumstances. Through the Alabama Stock Option Plan, Hayes Wheels International, Inc. aims to align the interests of its employees with the company's long-term success, encourage loyalty, and provide attractive incentives to drive exceptional performance. It enables employees to share in the company's growth and success by becoming partial owners, fostering a sense of ownership and commitment towards furthering the organization's goals.