Fairfax Virginia Stock Option Agreement of Key Tronic Corporation

• Category: Corporations - Public - Officer and Employee
• State: Multi-State
• County: Fairfax
• Control #: US-CC-15-186
• Format: Word; Rich Text

Description

This is a multi-state form covering the subject matter of the title. Fairfax Virginia Stock Option Agreement of Key Ironic Corporation is a legal agreement between Key Ironic Corporation and its employees or other individuals, granting them the right to purchase company stock at a specific price, within a specified time period. This agreement is commonly used as a form of employee compensation, aligning their interests with the performance and success of the company. Key terms and conditions included in the Fairfax Virginia Stock Option Agreement may cover the following aspects: 1. Grant of Options: This section outlines the number of stock options granted to the individual, typically expressed as a fixed number or a percentage of salary or position. The agreement may specify whether the options are granted as non-qualified stock options (SOS) or incentive stock options (SOS). 2. Exercise Price: The exercise price, also known as the strike price, is the predetermined price at which the option holder can purchase the company's stock. The agreement will define how the exercise price is determined and whether there is any flexibility or adjustment mechanism. 3. Vesting Schedule: Stock options are often subject to a vesting schedule, which determines when the options can be exercised. This schedule typically includes a cliff period, after which a portion of the options vest, followed by gradual vesting over a specific period. The agreement will outline the vesting terms and any acceleration or forfeiture provisions. 4. Expiration Date: The expiration date sets the deadline by which the options must be exercised. This date is usually several years from the grant date, providing the option holder with ample time to exercise their options. 5. Termination and Change of Control: The agreement may include provisions related to the termination of options upon certain events such as the option holder's resignation, retirement, or termination for cause. Additionally, it may outline the treatment of options in the event of a change of control, like a merger or acquisition of the company. Different types of Fairfax Virginia Stock Option Agreements offered by Key Ironic Corporation may include variations or additional terms to meet specific employment agreements or legal requirements. These could include: 1. Non-Qualified Stock Option Agreement: This type of option agreement does not meet the requirements for favorable tax treatment under the Internal Revenue Code. SOS are often granted to employees or consultants and are subject to ordinary income tax upon exercise. 2. Incentive Stock Option Agreement: SOS are tax-advantaged options granted to employees that meet certain IRS criteria. They offer potential tax advantages when exercised if specific holding periods and other requirements are met. 3. Restricted Stock Unit Agreement: Instead of traditional stock options, restricted stock units (RSS) grant individuals the right to receive stock at a predetermined value or upon specific performance milestones. RSS may have different terms, including vesting schedules and taxation. In conclusion, the Fairfax Virginia Stock Option Agreement of Key Ironic Corporation is a legally binding document that grants employees or other individuals the right to purchase company stock at a predetermined price within a specific time frame. The agreement covers essential terms like the number of options, exercise price, vesting schedule, expiration date, and termination provisions. Key Ironic Corporation may offer different types of stock option agreements, including non-qualified stock options, incentive stock options, and restricted stock unit agreements.

Fairfax Virginia Stock Option Agreement of Key Ironic Corporation is a legal agreement between Key Ironic Corporation and its employees or other individuals, granting them the right to purchase company stock at a specific price, within a specified time period. This agreement is commonly used as a form of employee compensation, aligning their interests with the performance and success of the company. Key terms and conditions included in the Fairfax Virginia Stock Option Agreement may cover the following aspects: 1. Grant of Options: This section outlines the number of stock options granted to the individual, typically expressed as a fixed number or a percentage of salary or position. The agreement may specify whether the options are granted as non-qualified stock options (SOS) or incentive stock options (SOS). 2. Exercise Price: The exercise price, also known as the strike price, is the predetermined price at which the option holder can purchase the company's stock. The agreement will define how the exercise price is determined and whether there is any flexibility or adjustment mechanism. 3. Vesting Schedule: Stock options are often subject to a vesting schedule, which determines when the options can be exercised. This schedule typically includes a cliff period, after which a portion of the options vest, followed by gradual vesting over a specific period. The agreement will outline the vesting terms and any acceleration or forfeiture provisions. 4. Expiration Date: The expiration date sets the deadline by which the options must be exercised. This date is usually several years from the grant date, providing the option holder with ample time to exercise their options. 5. Termination and Change of Control: The agreement may include provisions related to the termination of options upon certain events such as the option holder's resignation, retirement, or termination for cause. Additionally, it may outline the treatment of options in the event of a change of control, like a merger or acquisition of the company. Different types of Fairfax Virginia Stock Option Agreements offered by Key Ironic Corporation may include variations or additional terms to meet specific employment agreements or legal requirements. These could include: 1. Non-Qualified Stock Option Agreement: This type of option agreement does not meet the requirements for favorable tax treatment under the Internal Revenue Code. SOS are often granted to employees or consultants and are subject to ordinary income tax upon exercise. 2. Incentive Stock Option Agreement: SOS are tax-advantaged options granted to employees that meet certain IRS criteria. They offer potential tax advantages when exercised if specific holding periods and other requirements are met. 3. Restricted Stock Unit Agreement: Instead of traditional stock options, restricted stock units (RSS) grant individuals the right to receive stock at a predetermined value or upon specific performance milestones. RSS may have different terms, including vesting schedules and taxation. In conclusion, the Fairfax Virginia Stock Option Agreement of Key Ironic Corporation is a legally binding document that grants employees or other individuals the right to purchase company stock at a predetermined price within a specific time frame. The agreement covers essential terms like the number of options, exercise price, vesting schedule, expiration date, and termination provisions. Key Ironic Corporation may offer different types of stock option agreements, including non-qualified stock options, incentive stock options, and restricted stock unit agreements.