The New Mexico Stock Option Agreement of Quantum Effect Devices, Inc., is a legally binding document that outlines the terms and conditions for granting stock options to employees or key individuals within the company. This agreement provides an opportunity for qualified individuals to purchase company stock at a predetermined price, known as the exercise price, within a specified time frame. Quantum Effect Devices, Inc. is a technology company based in New Mexico that specializes in developing innovative devices utilizing quantum principles. Their cutting-edge technology and potential for growth make the stock options offered through this agreement an attractive incentive for employees and key individuals. The New Mexico Stock Option Agreement of Quantum Effect Devices, Inc. offers several types of stock option plans to cater to different needs and objectives. Some common types include: 1. Incentive Stock Option (ISO): This type of option is typically reserved for employees and comes with certain tax benefits. SOS have specific eligibility requirements and must be granted at or above the fair market value of the stock on the date of the grant. 2. Non-Qualified Stock Option (NO): Unlike SOS, SOS are not subject to the same tax advantages. These options can be granted to both employees and consultants, providing more flexibility in terms of eligibility and exercise price. 3. Restricted Stock Units (RSS): RSS are a form of equity compensation that represents a promise to deliver company stock at a future date. They are subject to vesting conditions and are often granted as an alternative to stock options. 4. Performance Stock Options: These options are granted based on achieving specific performance goals or milestones. They incentivize individuals to contribute significantly to the company's growth and success. The New Mexico Stock Option Agreement of Quantum Effect Devices, Inc. includes important clauses and provisions such as vesting schedules, terms of exercising options, and restrictions on transferability. It establishes a clear framework for employees and key individuals to benefit from the company's success through stock ownership and encourages alignment of interests between the shareholders and option holders. By offering different types of stock option plans, Quantum Effect Devices, Inc. ensures that its employees and key individuals have a variety of options tailored to their needs and objectives. This helps attract and retain talented individuals, fostering a culture of innovation and long-term commitment within the company.