Texas Employee Stock Option Plan of Vivigen, Inc.

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Multi-State
Control #:
US-CC-18-148
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Word; 
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18-148 18-148 . . . Employee Stock Option Plan which recognizes eight levels of responsibility within corporation and which provides that each eligible employee shall receive stock option to purchase that number of shares of corporation common stock that is equal to number derived by dividing option value corresponding to his or her level of responsibility by initial grant price (fair market value on date of grant) according to schedule which ranges from technical and administrative personnel levels one through four with option values from $1,250 through $5,000 to Chief Executive Officer level eight with option value of $100,000. Options are exercisable for up to (a) 50% of shares covered by option at any time after corporation's gross revenues meet or exceed a 30% increase for each of two consecutive calendar years ending following grant of option and (b) 100% of shares covered by option at any time after corporation's gross revenues meet or exceed a 40% increase for each of two consecutive calendar years following grant of stock option

Texas Employee Stock Option Plan of Vivien, Inc. is a comprehensive employee benefit program offered by the company to its employees in the state of Texas. This plan aims to reward and incentivize employees by providing them with the opportunity to own a share in the company and participate in its growth and success. The plan offers various types of stock options, enabling employees to acquire Vivien, Inc. shares at a predetermined price within a specified time period. The primary type of stock options offered under the Texas Employee Stock Option Plan includes: 1. Non-Qualified Stock Options (SOS): Vivien, Inc. grants SOS to employees that do not meet specific tax requirements set by the Internal Revenue Service (IRS). SOS offer the flexibility of setting exercise prices at or above the current market value of the company's stock. This allows employees to potentially profit from the difference between the exercise price and the market price when they exercise their options. 2. Incentive Stock Options (SOS): SOS are another type of stock option available to eligible employees under the Texas Employee Stock Option Plan. SOS have specific tax advantages if certain requirements are met, such as holding the shares for a certain period of time. The exercise price of SOS must be at least equal to the fair market value of the company's stock on the date of grant. 3. Restricted Stock Units (RSS): Vivien, Inc. may also offer RSS as part of its employee stock option plan. RSS provide employees with the right to receive company stock at a predetermined future date, often subject to performance-based or time-based vesting conditions. Once the vesting criteria are met, employees receive the shares without any purchase requirement. 4. Performance Stock Units (Plus): This type of stock option is performance-based and granted to employees based on specific performance goals outlined by Vivien, Inc. Plus offer employees the opportunity to receive shares if certain performance metrics, such as revenue targets or stock price goals, are achieved. The number of shares granted depends on the level of goal attainment, providing employees with additional motivation to contribute towards the company's success. By implementing the Texas Employee Stock Option Plan, Vivien, Inc. aims to align employee interests with the company's performance, fostering increased dedication, commitment, and productivity. Employees who participate in the plan have the opportunity to share in the growth and financial success of Vivien, Inc., as well as potentially benefit from favorable tax treatment associated with certain stock options.

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Making ESO Offers Declare the type of stock options employees will receive (ISOs or NSOs). Explain the value in terms of the number of shares rather than the percentage of the company. State that the board must approve all stock option grant amounts before the offer letter becomes valid.

A stock option plan is a mechanism for affording selected employees and executives or managers of a company the opportunity to acquire stock in their company at a price determined at the time the options are granted and fixed for the term of the options.

Employee Stock option plan or Employee Stock Ownership Plan (ESOP) is an employee benefit scheme that enables employees to own shares in the company. These shares are purchased by employees at price below market price, or in other words, a discounted price.

An employee stock purchase plan allows you to buy company stock at a bargain price. Discounts usually range from 5% to 15%. For example, if you work and participate in Hilton's ESPP, you can buy Hilton stock at a 15% discount. If Hilton's stock is trading at $130/share, they'll buy it at $110.50/share for you.

With stock-based compensation, employees in an early-stage business are offered stock options in addition to their salaries. The percentage of a company's shares reserved for stock options will typically vary from 5% to 15% and sometimes go up as high as 20%, depending on the development stage of the company.

An employee stock option (ESO) is a form of financial equity compensation that is offered to employees and executives by their organization. The stock options offered come in the form of regular call options and allow the employee or executive to purchase their organization's stocks at a specified price and time.

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.

Weighing your options Ultimately, it's best to remember that stock options are just that: Options. They don't compel anyone to do anything, but they can, in some cases, prove extremely valuable and help significantly increase an employee's wealth. If they're fortunate enough to be at a strong, growing company, that is.

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Texas Employee Stock Option Plan of Vivigen, Inc.