Franklin Ohio Stock Option Plan which provides for grant of Incentive Stock Options and Nonqualified Stock Options to executive officers

• Category: Corporations - Public - Stock Options
• State: Multi-State
• County: Franklin
• Control #: US-CC-18-210C
• Format: Word; Rich Text

Description

18-210C 18-210C . . . Stock Option Plan which provides for grant of Incentive Stock Options and Non-qualified Stock Options to executive officers of corporation and (b) Non-qualified Stock Options to outside directors on following basis: an initial grant of option to purchase 10,000 shares of the stock plus annual grants of options to purchase 5,000 shares, provided outside director continues to serve as outside director. Each outside director also receives annual option grant of 2,000 shares for each committee on which he or she serves. Outside directors' options are not exercisable during first 12 months of their term. After 12 months they become exercisable as to 24% plus 2% for each complete month of continuous service in excess of 12 months until fully vested. Options may also be granted to executive officers residing in foreign jurisdictions. Board of Directors may adopt such supplements to Plan as may be necessary to comply with applicable laws of such foreign jurisdictions and to afford participants favorable treatment under such laws A Franklin Ohio Stock Option Plan is a comprehensive program offered to executive officers that allows them to receive various types of stock options as part of their compensation package. The plan provides for the grant of both Incentive Stock Options (SOS) and Nonqualified Stock Options (Nests). Incentive Stock Options, also known as statutory stock options, are typically granted to executive officers as a way to incentivize and reward their performance. These options come with certain tax advantages, as the gains made from exercising SOS are usually taxed at a lower rate compared to other forms of stock options. However, there are specific requirements that must be met for SOS to retain their favorable tax treatment. On the other hand, Nonqualified Stock Options are a more flexible type of stock option that do not qualify for the same tax advantages as SOS. Nests are often granted in addition to SOS, providing executives with additional opportunities for equity participation. While the gains from exercising Nests are subject to regular income tax rates, they offer more flexibility in terms of vesting and exercise periods. The Franklin Ohio Stock Option Plan recognizes the importance of providing executives with diversified compensation options and tailors the grants of SOS and Nests to meet their specific needs. By offering both types of stock options, the plan enables executive officers to maximize their financial benefits while aligning their interests with the long-term success of the company. Overall, the Franklin Ohio Stock Option Plan is designed to attract and retain top-tier executive talent by providing them with a comprehensive and flexible stock option program. By granting both Incentive Stock Options and Nonqualified Stock Options, the plan recognizes the unique needs and preferences of executive officers, allowing them to benefit from the potential value appreciation of the company's stock.

A Franklin Ohio Stock Option Plan is a comprehensive program offered to executive officers that allows them to receive various types of stock options as part of their compensation package. The plan provides for the grant of both Incentive Stock Options (SOS) and Nonqualified Stock Options (Nests). Incentive Stock Options, also known as statutory stock options, are typically granted to executive officers as a way to incentivize and reward their performance. These options come with certain tax advantages, as the gains made from exercising SOS are usually taxed at a lower rate compared to other forms of stock options. However, there are specific requirements that must be met for SOS to retain their favorable tax treatment. On the other hand, Nonqualified Stock Options are a more flexible type of stock option that do not qualify for the same tax advantages as SOS. Nests are often granted in addition to SOS, providing executives with additional opportunities for equity participation. While the gains from exercising Nests are subject to regular income tax rates, they offer more flexibility in terms of vesting and exercise periods. The Franklin Ohio Stock Option Plan recognizes the importance of providing executives with diversified compensation options and tailors the grants of SOS and Nests to meet their specific needs. By offering both types of stock options, the plan enables executive officers to maximize their financial benefits while aligning their interests with the long-term success of the company. Overall, the Franklin Ohio Stock Option Plan is designed to attract and retain top-tier executive talent by providing them with a comprehensive and flexible stock option program. By granting both Incentive Stock Options and Nonqualified Stock Options, the plan recognizes the unique needs and preferences of executive officers, allowing them to benefit from the potential value appreciation of the company's stock.