Oregon Stock Option Plan of Hayes Wheels International, Inc., which provides for grant of Incentive Stock Options and Nonqualified Stock Options

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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 Oregon Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive employee benefit program that offers both Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS) to eligible employees of the company. These stock options provide employees with the opportunity to purchase company stock at a predetermined price within a specified time frame. Incentive Stock Options (SOS) are a type of stock option that can offer valuable tax advantages to employees. Under this plan, employees are granted the right to purchase company stock at a discounted price, known as the exercise price. SOS typically have certain requirements and restrictions, such as a limit on the number of shares that can be granted to an individual and a minimum holding period before the shares can be sold without incurring additional tax liabilities. Nonqualified Stock Options (SOS) are another form of stock option granted under this plan. SOS do not offer the same tax advantages as SOS but may be more flexible in their terms and conditions. Like SOS, SOS provide employees with the right to purchase company stock at a predetermined price. However, SOS are typically subject to immediate taxation on the difference between the exercise price and the fair market value of the stock at the time of exercise. The Oregon Stock Option Plan of Hayes Wheels International, Inc. aims to incentivize and reward employees by allowing them to participate in the company's growth and success. By granting stock options, the company aligns employee interests with shareholder interests and provides an opportunity for employees to share in the potential future value of the company's stock. In conclusion, the Oregon Stock Option Plan of Hayes Wheels International, Inc. comprises both Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS). SOS offer tax advantages, while SOS provide more flexibility but are subject to immediate taxation. These stock options are designed to reward and incentivize eligible employees, fostering a sense of ownership and alignment with the company's goals.

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  • Preview Stock Option Plan of Hayes Wheels International, Inc., which provides for grant of Incentive Stock Options and Nonqualified Stock Options
  • Preview Stock Option Plan of Hayes Wheels International, Inc., which provides for grant of Incentive Stock Options and Nonqualified Stock Options
  • Preview Stock Option Plan of Hayes Wheels International, Inc., which provides for grant of Incentive Stock Options and Nonqualified Stock Options
  • Preview Stock Option Plan of Hayes Wheels International, Inc., which provides for grant of Incentive Stock Options and Nonqualified Stock Options
  • Preview Stock Option Plan of Hayes Wheels International, Inc., which provides for grant of Incentive Stock Options and Nonqualified Stock Options
  • Preview Stock Option Plan of Hayes Wheels International, Inc., which provides for grant of Incentive Stock Options and Nonqualified Stock Options

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Incentive stock options, or ISOs, are a type of equity compensation granted only to employees, who can then purchase a set quantity of company shares at a certain price, while receiving favorable tax treatment. ISOs are often awarded as part of an employee's hiring or promotion package.

What is a Qualified Stock Option? A qualified stock option confers special tax benefits on the employees of a corporation. This stock option is not reportable as taxable income to the employee at the time of grant, nor when the employee later exercises the option to buy stock.

Stock options grant employees the right to purchase shares, but it's not an obligation for them to do so. ISOs have the potential for favorable tax treatment. If a stock option isn't an ISO, it's typically referred to as a nonqualified stock option. NQOs don't qualify for special tax treatment.

Non-qualified Stock Options (NSOs) are stock options that, when exercised, result in ordinary income under US tax laws on the difference, calculated on the exercise date, between the exercise price and the fair market value of the underlying shares.

What Is a Non-Qualified Stock Option (NSO)? A non-qualified stock option (NSO) is a type of employee stock option wherein you pay ordinary income tax on the difference between the grant price and the price at which you exercise the option.

Employee Stock Purchase Plan: Qualified or Non-qualified This means that there is more flexibility in how a non-qualified plan can be designed, but a qualified plan is treated more favorably on taxation as there's no taxable event when shares are purchased.

An incentive stock option (ISO) is a corporate benefit that gives an employee the right to buy shares of company stock at a discounted price with the added benefit of possible tax breaks on the profit. The profit on qualified ISOs is usually taxed at the capital gains rate, not the higher rate for ordinary income.

Nonqualified: Employees generally don't owe tax when these options are granted. When exercising, tax is paid on the difference between the exercise price and the stock's market value. They may be transferable. Qualified or Incentive: For employees, these options may qualify for special tax treatment on gains.

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Oregon Stock Option Plan of Hayes Wheels International, Inc., which provides for grant of Incentive Stock Options and Nonqualified Stock Options