Delaware 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 The Delaware Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program that offers employees of the company the opportunity to receive stock options as a form of compensation. This plan includes both Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS) to cater to different employee needs and circumstances. Incentive Stock Options (SOS) are a type of stock option that provides certain tax advantages to employees. They are granted with the intention of encouraging long-term commitment and loyalty within the company. SOS can only be granted to employees and must meet specific requirements outlined by the Internal Revenue Service (IRS). With SOS, employees have the potential to receive favorable capital gains tax treatment, provided they meet certain holding requirements. Nonqualified Stock Options (SOS), on the other hand, are stock options that do not meet the criteria outlined by the IRS to qualify as SOS. SOS are typically more flexible in their granting and can be offered to employees, directors, consultants, or anyone deemed eligible by the company. Unlike SOS, SOS do not receive the same tax advantages and are subject to ordinary income tax rates upon exercise. The Delaware Stock Option Plan of Hayes Wheels International, Inc. comprises these two types of stock options to cater to the diverse needs and requirements of its employees. It is designed to incentivize and reward employees for their contributions to the company's growth and success. By offering both SOS and SOS, Hayes Wheels International, Inc. aims to provide various avenues for employees to participate in the company's financial success and align their interests with the organization's long-term goals.

The Delaware Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program that offers employees of the company the opportunity to receive stock options as a form of compensation. This plan includes both Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS) to cater to different employee needs and circumstances. Incentive Stock Options (SOS) are a type of stock option that provides certain tax advantages to employees. They are granted with the intention of encouraging long-term commitment and loyalty within the company. SOS can only be granted to employees and must meet specific requirements outlined by the Internal Revenue Service (IRS). With SOS, employees have the potential to receive favorable capital gains tax treatment, provided they meet certain holding requirements. Nonqualified Stock Options (SOS), on the other hand, are stock options that do not meet the criteria outlined by the IRS to qualify as SOS. SOS are typically more flexible in their granting and can be offered to employees, directors, consultants, or anyone deemed eligible by the company. Unlike SOS, SOS do not receive the same tax advantages and are subject to ordinary income tax rates upon exercise. The Delaware Stock Option Plan of Hayes Wheels International, Inc. comprises these two types of stock options to cater to the diverse needs and requirements of its employees. It is designed to incentivize and reward employees for their contributions to the company's growth and success. By offering both SOS and SOS, Hayes Wheels International, Inc. aims to provide various avenues for employees to participate in the company's financial success and align their interests with the organization's long-term goals.