Utah 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 Utah Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive employee benefit program that offers two types of stock options: Incentive Stock Options (SOS) and Nonqualified Stock Options (Nests). It is designed to reward and incentivize employees by allowing them to purchase company stocks at a predetermined price, known as the exercise price. Under the Incentive Stock Option (ISO) program, eligible employees are granted the right to purchase company stocks at a discounted price. SOS come with certain tax advantages, as any potential gains made from selling the stocks are subject to long-term capital gains tax rates. To qualify for SOS, employees must meet specific IRS requirements, including being an employee of the company granting the options for at least one year. On the other hand, the Nonqualified Stock Option (NO) program provides employees with the right to purchase company stocks at market value or a slightly discounted price. Nests are not subject to the same tax benefits as SOS. Upon exercising the options, employees are required to pay ordinary income tax on the difference between the exercise price and the fair market value of the stocks. Utah Stock Option Plan's ultimate goal is to provide employees with an opportunity to share in the company's success and align their interests with the organization's overall performance and growth. By granting stock options, Hayes Wheels International, Inc. aims to attract, retain, and motivate talented individuals while fostering a sense of ownership and accountability among employees. As always, it is important for employees to thoroughly review the terms and conditions of the Utah Stock Option Plan, including vesting schedules, exercise periods, and any applicable restrictions, to fully understand the benefits and potential implications associated with participating in the program.

The Utah Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive employee benefit program that offers two types of stock options: Incentive Stock Options (SOS) and Nonqualified Stock Options (Nests). It is designed to reward and incentivize employees by allowing them to purchase company stocks at a predetermined price, known as the exercise price. Under the Incentive Stock Option (ISO) program, eligible employees are granted the right to purchase company stocks at a discounted price. SOS come with certain tax advantages, as any potential gains made from selling the stocks are subject to long-term capital gains tax rates. To qualify for SOS, employees must meet specific IRS requirements, including being an employee of the company granting the options for at least one year. On the other hand, the Nonqualified Stock Option (NO) program provides employees with the right to purchase company stocks at market value or a slightly discounted price. Nests are not subject to the same tax benefits as SOS. Upon exercising the options, employees are required to pay ordinary income tax on the difference between the exercise price and the fair market value of the stocks. Utah Stock Option Plan's ultimate goal is to provide employees with an opportunity to share in the company's success and align their interests with the organization's overall performance and growth. By granting stock options, Hayes Wheels International, Inc. aims to attract, retain, and motivate talented individuals while fostering a sense of ownership and accountability among employees. As always, it is important for employees to thoroughly review the terms and conditions of the Utah Stock Option Plan, including vesting schedules, exercise periods, and any applicable restrictions, to fully understand the benefits and potential implications associated with participating in the program.