A Puerto Rico Cash Award Paid to Holders of Non-Exercisable Stock Options Upon Merger or Consolidation is a form of compensation provided to individuals who hold non-exercisable stock options in a company that undergoes a merger or consolidation in Puerto Rico. This specific type of cash award is designed to compensate stock option holders for the potential loss of value that may arise from the merger or consolidation. In such situations, non-exercisable stock options refer to stock options that have not yet reached their vesting period or are not currently exercisable due to certain restrictions. These restrictions may include specific timeframes, performance conditions, or other contingencies that must be met before the stock options can be exercised. When a merger or consolidation occurs, the value and terms of the stock options may be affected. If the stock options become unexorcisable or lose their potential value as a result of the merger or consolidation, the company may offer a Puerto Rico Cash Award as a form of compensation to the stock option holders. This cash award aims to provide a fair and reasonable financial benefit to the holders of non-exercisable stock options who would have otherwise lost the opportunity to benefit from the potential increase in stock value resulting from the merger or consolidation. Different types of Puerto Rico Cash Awards Paid to Holders of Non-Exercisable Stock Options Upon Merger or Consolidation may include: 1. Merger-related Cash Award: This type of cash award is offered when a company merges with another entity, resulting in a change in ownership or control. It compensates stock option holders for the loss of potential value due to the merger. 2. Consolidation-related Cash Award: This type of cash award is provided when a company consolidates with one or more entities, forming a new entity. It compensates stock option holders for the potential loss of value resulting from the consolidation. 3. Value Protection Cash Award: This type of cash award is offered to protect the value of non-exercisable stock options in situations where the merger or consolidation would have otherwise negatively impacted the stock option holders' financial interests. The specific terms and conditions of the Puerto Rico Cash Award Paid to Holders of Non-Exercisable Stock Options Upon Merger or Consolidation may vary based on the company's policies, the nature of the merger or consolidation, and the individual circumstances of the stock option holders. It is essential for stock option holders to review the details provided by the company to understand the exact terms and benefits of the cash award as it applies to their situation.