Maryland Stock Option Agreement of Full House Resorts, Inc.

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-CC-18-363D
• Format: Word; Rich Text

Description

18-363D 18-363D . . . Stock Option Agreement under which corporation grants to optionee a Non-qualified Option to acquire 50,000 shares of stock immediately and an additional 50,000 shares on each of the next four anniversaries of the date of grant. The options become fully exercisable upon a change of control and they expire 5 years from the date of grant or 90 days after the optionee ceases to be a director Title: Maryland Stock Option Agreement of Full House Resorts, Inc.: Explore Types and Features Introduction: The Maryland Stock Option Agreement of Full House Resorts, Inc. is a legal document that outlines the terms and conditions of stock options granted to employees and directors of the company. This agreement enables eligible individuals to purchase company stocks at a predetermined price within a specified period. In this article, we will delve into the various types and features of the Maryland Stock Option Agreement offered by Full House Resorts, Inc. Types of Maryland Stock Option Agreements by Full House Resorts, Inc.: 1. Non-Qualified Stock Options (Nests): Non-Qualified Stock Options refer to stock options that do not meet specific criteria set by the Internal Revenue Service (IRS). These options provide employees and directors with the opportunity to purchase company stocks at a predetermined price, known as the exercise price, regardless of their fair market value at the time of grant. Recipients of Nests are subject to ordinary income tax on the difference between the exercise price and the stock's fair market value on the date of exercise. 2. Incentive Stock Options (SOS): Incentive Stock Options are stock options that meet the requirements defined by the IRS. These options are provided exclusively to employees and offer potential tax advantages. SOS allow employees to purchase company stocks at a predetermined price, usually lower than the fair market value at the time of grant. Additionally, employees can potentially qualify for long-term capital gains tax rates when they sell the SOS, provided specific holding periods and other conditions are met. Key Features of Maryland Stock Option Agreements: 1. Grant Price: Also known as the exercise price, this is the predetermined cost at which individuals can purchase the company's stock under the stock option agreement. The price is typically specified in the agreement and is subject to change depending on the terms outlined. 2. Vesting Schedule: The vesting schedule determines when employees or directors can exercise their stock options. It typically outlines a specific period (e.g., four years) before individuals become eligible to exercise their options fully. Vesting schedules are crucial for incentivizing employee loyalty and retaining key talent. 3. Exercise Period: The exercise period refers to the duration within which an individual can exercise their stock options. It is vital for individuals to be aware of the exercise period's expiration date to ensure they do not miss the opportunity to purchase the stock. 4. Conditions and Restrictions: The stock option agreement may include specific conditions and restrictions, which could include provisions related to the employee's continued employment with the company, temporary lock-up periods, or limitations on transferring the stock options. Conclusion: Maryland Stock Option Agreements by Full House Resorts, Inc. provide employees and directors with opportunities to acquire company stocks at a predetermined price. Understanding the different types of agreements, such as Non-Qualified Stock Options (Nests) and Incentive Stock Options (SOS), enhances individuals' comprehension of the potential tax implications and benefits. By considering factors like grant price, vesting schedule, exercise period, and any conditions and restrictions, employees and directors can make informed decisions regarding their stock option benefits.

Title: Maryland Stock Option Agreement of Full House Resorts, Inc.: Explore Types and Features Introduction: The Maryland Stock Option Agreement of Full House Resorts, Inc. is a legal document that outlines the terms and conditions of stock options granted to employees and directors of the company. This agreement enables eligible individuals to purchase company stocks at a predetermined price within a specified period. In this article, we will delve into the various types and features of the Maryland Stock Option Agreement offered by Full House Resorts, Inc. Types of Maryland Stock Option Agreements by Full House Resorts, Inc.: 1. Non-Qualified Stock Options (Nests): Non-Qualified Stock Options refer to stock options that do not meet specific criteria set by the Internal Revenue Service (IRS). These options provide employees and directors with the opportunity to purchase company stocks at a predetermined price, known as the exercise price, regardless of their fair market value at the time of grant. Recipients of Nests are subject to ordinary income tax on the difference between the exercise price and the stock's fair market value on the date of exercise. 2. Incentive Stock Options (SOS): Incentive Stock Options are stock options that meet the requirements defined by the IRS. These options are provided exclusively to employees and offer potential tax advantages. SOS allow employees to purchase company stocks at a predetermined price, usually lower than the fair market value at the time of grant. Additionally, employees can potentially qualify for long-term capital gains tax rates when they sell the SOS, provided specific holding periods and other conditions are met. Key Features of Maryland Stock Option Agreements: 1. Grant Price: Also known as the exercise price, this is the predetermined cost at which individuals can purchase the company's stock under the stock option agreement. The price is typically specified in the agreement and is subject to change depending on the terms outlined. 2. Vesting Schedule: The vesting schedule determines when employees or directors can exercise their stock options. It typically outlines a specific period (e.g., four years) before individuals become eligible to exercise their options fully. Vesting schedules are crucial for incentivizing employee loyalty and retaining key talent. 3. Exercise Period: The exercise period refers to the duration within which an individual can exercise their stock options. It is vital for individuals to be aware of the exercise period's expiration date to ensure they do not miss the opportunity to purchase the stock. 4. Conditions and Restrictions: The stock option agreement may include specific conditions and restrictions, which could include provisions related to the employee's continued employment with the company, temporary lock-up periods, or limitations on transferring the stock options. Conclusion: Maryland Stock Option Agreements by Full House Resorts, Inc. provide employees and directors with opportunities to acquire company stocks at a predetermined price. Understanding the different types of agreements, such as Non-Qualified Stock Options (Nests) and Incentive Stock Options (SOS), enhances individuals' comprehension of the potential tax implications and benefits. By considering factors like grant price, vesting schedule, exercise period, and any conditions and restrictions, employees and directors can make informed decisions regarding their stock option benefits.