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

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-CC-18-345E
• Format: Word; Rich Text

Description

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 Texas Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program designed to reward and incentivize employees through the grant of stock options. This plan specifically offers two main types of stock options: Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS). Both options provide employees with the opportunity to purchase company stock at a predetermined price, known as the exercise price or strike price. SOS are granted to employees with certain tax advantages, as they are treated favorably under the Internal Revenue Code. Employees who are granted SOS have the potential to enjoy long-term capital gains if they hold the stock for a specified period. This means that any profit made upon the sale of the stock may be subject to lower tax rates. On the other hand, SOS are not subject to the same tax advantages as SOS. The exercise of SOS may trigger ordinary income tax rates on the difference between the exercise price and the market value of the stock at the time of exercise. Despite the absence of preferential tax treatment, SOS can still be an attractive option for employees seeking to participate in the company's growth and potentially generate profits. Hayes Wheels International, Inc. understands the importance of providing both types of stock options to accommodate the varying needs and preferences of their employees. The Texas Stock Option Plan aims to align the interests of employees and shareholders while promoting loyalty, motivation, and a sense of ownership within the company. It's worth noting that the specifics of the Texas Stock Option Plan may vary depending on the individual circumstances and restrictions imposed by Hayes Wheels International, Inc. For a more comprehensive understanding, employees are urged to review the plan documentation and consult with their financial advisors or legal professionals. In summary, the Texas Stock Option Plan of Hayes Wheels International, Inc. offers employees the opportunity to participate in the company's success through the grant of Incentive Stock Options and Nonqualified Stock Options. These options provide employees with the chance to purchase company stock at a predetermined price, with SOS offering potential tax advantages, while SOS do not. This plan supports a culture of ownership and motivation, ultimately benefiting both the employees and the company as a whole.

The Texas Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program designed to reward and incentivize employees through the grant of stock options. This plan specifically offers two main types of stock options: Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS). Both options provide employees with the opportunity to purchase company stock at a predetermined price, known as the exercise price or strike price. SOS are granted to employees with certain tax advantages, as they are treated favorably under the Internal Revenue Code. Employees who are granted SOS have the potential to enjoy long-term capital gains if they hold the stock for a specified period. This means that any profit made upon the sale of the stock may be subject to lower tax rates. On the other hand, SOS are not subject to the same tax advantages as SOS. The exercise of SOS may trigger ordinary income tax rates on the difference between the exercise price and the market value of the stock at the time of exercise. Despite the absence of preferential tax treatment, SOS can still be an attractive option for employees seeking to participate in the company's growth and potentially generate profits. Hayes Wheels International, Inc. understands the importance of providing both types of stock options to accommodate the varying needs and preferences of their employees. The Texas Stock Option Plan aims to align the interests of employees and shareholders while promoting loyalty, motivation, and a sense of ownership within the company. It's worth noting that the specifics of the Texas Stock Option Plan may vary depending on the individual circumstances and restrictions imposed by Hayes Wheels International, Inc. For a more comprehensive understanding, employees are urged to review the plan documentation and consult with their financial advisors or legal professionals. In summary, the Texas Stock Option Plan of Hayes Wheels International, Inc. offers employees the opportunity to participate in the company's success through the grant of Incentive Stock Options and Nonqualified Stock Options. These options provide employees with the chance to purchase company stock at a predetermined price, with SOS offering potential tax advantages, while SOS do not. This plan supports a culture of ownership and motivation, ultimately benefiting both the employees and the company as a whole.