North Carolina Non Employee Director Stock Option Agreement

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Multi-State
Control #:
US-TC0913
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Description

This non-employee director option agreement grants the optionee (the non-employee director) a non-qualified stock option under the company's non-employee director stock option plan. The option allows optionee to purchase shares of the company's common stock up to the number of shares listed in the agreement.

The North Carolina Non-Employee Director Stock Option Agreement is a legal document outlining the terms and conditions between a company and a non-employee director regarding the granting of stock options. These stock options provide the director with the right to purchase company shares at a predetermined price within a specified time frame. Under this agreement, the non-employee director is typically not a full-time employee of the company but serves on its board of directors. The purpose of granting stock options to non-employee directors is to align their interests with those of the company's shareholders, fostering a stronger commitment to the company's success. There are several types of North Carolina Non-Employee Director Stock Option Agreements, including: 1. Standard Non-Employee Director Stock Option Agreement: This is the most common type of agreement, granting the non-employee director a specific number of stock options at a predetermined exercise price. The exercise price is usually set to the fair market value of the company's stock on the date of grant. 2. Non-Qualified Stock Option (NO) Agreement: This agreement grants the non-employee director the right to purchase company shares at a fixed price, either immediately or after a vesting period. Non-qualified stock options are subject to ordinary income tax upon exercise. 3. Incentive Stock Option (ISO) Agreement: This type of agreement grants the non-employee director the right to purchase company shares at a fixed price, subject to certain tax advantages. To qualify as an incentive stock option, specific rules mandated by the Internal Revenue Code must be followed. 4. Performance-Based Stock Option Agreement: In certain cases, a North Carolina Non-Employee Director Stock Option Agreement may include performance-based criteria that the director must meet in order to exercise the stock options. This allows the director to reap the benefits of stock ownership only if predetermined performance targets are achieved. It is important to note that these types of agreements may vary based on the specific terms negotiated between the company and the non-employee director. Furthermore, prior to entering into any agreement, it is advisable to consult legal and tax professionals to ensure compliance with North Carolina state laws and relevant federal regulations.

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FAQ

Stock options allow you to save cash instead of spending money on high salaries. It can also motivate employees to stay and make your company a success so that it will eventually be acquired or have an initial public offering, which will provide value to their shares.

A stock option provides an employee with the opportunity to purchase a set number of shares of company stock at a certain price within a certain period of time. The price is called the ?grant price? or ?strike price.? This price is usually based on a discounted price of the stock at the time of hire.

Stock options allow employees to buy a piece of your company at a discount in exchange for their dedication and commitment. As a small business, you can consider offering stock options as a great way to compensate employees and help build a hardworking and innovative staff. What are stock options?

Qualified stock options, also known as incentive stock options, can only be granted to employees. Non-qualified stock options can be granted to employees, directors, contractors and others. This gives you greater flexibility to recognize the contributions of non-employees.

There are two typical outcomes if you have employee stock options and an M&A occurs, the acquiring company can cash you out or give you company shares. If the acquiring company cashes you out, your outcome is simple: you receive cash and pay taxes on the gains.

A stock option is the right to buy a specific number of shares of company stock at a pre-set price, known as the ?exercise? or ?strike price.? You take actual ownership of granted options over a fixed period of time called the ?vesting period.? When options vest, it means you've ?earned? them, though you still need to ...

The stock options plan is drafted by the company's board of directors and contains details of the grantee's rights. The options agreement will provide the key details of your option grant such as the vesting schedule, how the ESOs will vest, shares represented by the grant, and the strike price.

Holders of share purchase rights may or may not buy an agreed number of shares of stock at a pre-determined price, but only if they are an existing stockholder. Options, on the other hand, are the right to buy or sell stocks at a pre-set price called the strike price.

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Effective as of [Date of Grant] (the “Date of Grant”), the Company hereby grants to the Optionee, an option (the “Option”) to purchase [Number of Shares] Shares ... 1. Grant of Option. The Corporation hereby grants to Optionee, as of the Grant Date, an option to purchase the Option Shares under the Plan. The number of ...Standard Non-Employee Director Stock Option Agreement: This agreement sets out the essential terms and conditions of the stock options ... This Option shall entitle the Participant to purchase BB&T Common Stock from its authorized, unissued and registered share reserve, such Shares being the ... Exhibit 10.2 NONQUALIFIED STOCK OPTION AGREEMENT THIS AGREEMENT is made as of the date (the “Grant Date”) stated on the last page hereto (the “Grant Award”) ... (11) Any interest in an employees' stock or equity purchase, option, savings, pension, profit-sharing or other similar benefit plan;. (12) Any bond or note ... A comprehensive collection of sample company policies and selected related agreements, including policies related to employment, employee benefits, ... A plan amendment permitting option transfers does not generally require shareholder approval. Tradeability of Shares. Form S-8 is the standard SEC registration ... (22) "Shareholder" means the person in whose name shares are registered in the records of a corporation or the beneficial owner of shares to the extent of the ... Pursuant to Treasury Regulation § 1.83-7, if an employee is granted a nonqualified stock option that does not have a readily ascertainable fair market value at ...

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North Carolina Non Employee Director Stock Option Agreement