Indiana 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 Indiana Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program designed to offer employees the opportunity to acquire company stock through the grant of Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS). These stock options serve as a valuable form of compensation and incentivize employees to contribute to the long-term growth and success of the company. Under this plan, eligible employees may be granted Incentive Stock Options, also known as qualified stock options. SOS provide several tax advantages as they are subject to special tax treatment upon exercise and sale. To qualify for SOS, employees must meet specific criteria outlined by the Internal Revenue Service (IRS). Alternatively, the Indiana Stock Option Plan also provides for the grant of Nonqualified Stock Options. SOS are not subject to the same IRS requirements as SOS, making them more flexible in terms of eligibility and taxation. While SOS do not offer the same tax benefits as SOS, they are still a valuable tool for employee compensation and provide an opportunity to participate in the company's success. The Indiana Stock Option Plan of Hayes Wheels International, Inc. ensures that employees have the ability to acquire company stock at a predetermined price, known as the exercise price. This price is typically set at the fair market value of the stock on the grant date, ensuring that employees have the potential to benefit from any future increase in the company's stock price. Stock options granted under this plan may vest over time, meaning that employees have the ability to exercise their options and purchase company stock gradually. This helps to align the interests of employees with the long-term performance of the company. Overall, the Indiana Stock Option Plan of Hayes Wheels International, Inc. provides a valuable mechanism for attracting, retaining, and motivating talented employees. By offering both Incentive Stock Options and Nonqualified Stock Options, the plan caters to the diverse needs and circumstances of employees. This comprehensive approach ensures that employees have the opportunity to participate in the company's growth and success, while also providing valuable tax benefits for those who qualify for SOS.

The Indiana Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program designed to offer employees the opportunity to acquire company stock through the grant of Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS). These stock options serve as a valuable form of compensation and incentivize employees to contribute to the long-term growth and success of the company. Under this plan, eligible employees may be granted Incentive Stock Options, also known as qualified stock options. SOS provide several tax advantages as they are subject to special tax treatment upon exercise and sale. To qualify for SOS, employees must meet specific criteria outlined by the Internal Revenue Service (IRS). Alternatively, the Indiana Stock Option Plan also provides for the grant of Nonqualified Stock Options. SOS are not subject to the same IRS requirements as SOS, making them more flexible in terms of eligibility and taxation. While SOS do not offer the same tax benefits as SOS, they are still a valuable tool for employee compensation and provide an opportunity to participate in the company's success. The Indiana Stock Option Plan of Hayes Wheels International, Inc. ensures that employees have the ability to acquire company stock at a predetermined price, known as the exercise price. This price is typically set at the fair market value of the stock on the grant date, ensuring that employees have the potential to benefit from any future increase in the company's stock price. Stock options granted under this plan may vest over time, meaning that employees have the ability to exercise their options and purchase company stock gradually. This helps to align the interests of employees with the long-term performance of the company. Overall, the Indiana Stock Option Plan of Hayes Wheels International, Inc. provides a valuable mechanism for attracting, retaining, and motivating talented employees. By offering both Incentive Stock Options and Nonqualified Stock Options, the plan caters to the diverse needs and circumstances of employees. This comprehensive approach ensures that employees have the opportunity to participate in the company's growth and success, while also providing valuable tax benefits for those who qualify for SOS.