North Carolina 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 North Carolina Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program designed to offer employees of the company with favorable stock option grants. This plan includes two main types of stock options: Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS), both of which provide unique benefits and advantages. Incentive Stock Options (SOS) are one type of stock option offered under the North Carolina Stock Option Plan. These options are intended to incentivize employees by granting them the right to purchase company stock at a predetermined price, known as the exercise price. SOS have certain tax advantages, as any potential gains realized from exercising these options are typically treated as long-term capital gains. To qualify for SOS, employees must meet specific eligibility requirements and fulfill holding periods before selling the acquired stock for favorable tax treatment. Nonqualified Stock Options (SOS) are the other type of stock option available through the North Carolina Stock Option Plan. Unlike SOS, SOS do not come with the same tax advantages. When exercising SOS, employees are typically subject to ordinary income tax rates on the difference between the exercise price and the fair market value of the stock at the time of exercise. Although SOS lack the tax incentives of SOS, they offer greater flexibility in terms of eligibility and are not subject to strict holding periods. The North Carolina Stock Option Plan of Hayes Wheels International, Inc. aims to provide employees with opportunities to benefit from the company's growth and success by granting them stock options. By offering both Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS), employees have the flexibility to choose the option type that best fits their individual financial goals and circumstances. These stock options serve as a valuable tool for attracting and retaining talented employees, aligning their interests with the company's performance, and fostering a sense of ownership and loyalty within the organization.

The North Carolina Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program designed to offer employees of the company with favorable stock option grants. This plan includes two main types of stock options: Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS), both of which provide unique benefits and advantages. Incentive Stock Options (SOS) are one type of stock option offered under the North Carolina Stock Option Plan. These options are intended to incentivize employees by granting them the right to purchase company stock at a predetermined price, known as the exercise price. SOS have certain tax advantages, as any potential gains realized from exercising these options are typically treated as long-term capital gains. To qualify for SOS, employees must meet specific eligibility requirements and fulfill holding periods before selling the acquired stock for favorable tax treatment. Nonqualified Stock Options (SOS) are the other type of stock option available through the North Carolina Stock Option Plan. Unlike SOS, SOS do not come with the same tax advantages. When exercising SOS, employees are typically subject to ordinary income tax rates on the difference between the exercise price and the fair market value of the stock at the time of exercise. Although SOS lack the tax incentives of SOS, they offer greater flexibility in terms of eligibility and are not subject to strict holding periods. The North Carolina Stock Option Plan of Hayes Wheels International, Inc. aims to provide employees with opportunities to benefit from the company's growth and success by granting them stock options. By offering both Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS), employees have the flexibility to choose the option type that best fits their individual financial goals and circumstances. These stock options serve as a valuable tool for attracting and retaining talented employees, aligning their interests with the company's performance, and fostering a sense of ownership and loyalty within the organization.