Pima Arizona 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: Pima
• 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 The Lima Arizona Stock Option Plan is a comprehensive compensation program designed for executive officers of corporate entities. This plan offers two types of stock options: Incentive Stock Options (SOS) and Nonqualified Stock Options (Nests). SOS are stock options granted to executives, allowing them to purchase company stock at a predetermined price, known as the exercise price. These options provide potential tax advantages for the executive, as they may be subject to long-term capital gains taxes upon selling the acquired stock. To qualify for SOS, certain criteria established by the Internal Revenue Service (IRS) must be met, ensuring that the executive holds the stock for a designated period of time. On the other hand, Nests are stock options that do not meet the specific requirements set by the IRS for SOS. Unlike SOS, Nests are subject to ordinary income tax rates upon exercising the options. However, Nests offer more flexibility in terms of eligibility requirements, vesting schedules, and exercise prices, making them a popular choice for executive compensation plans. The Lima Arizona Stock Option Plan is designed to attract and retain top executive talents by providing them with a valuable equity stake in the company. Executives have the opportunity to acquire company stock, thereby aligning their interests with those of the shareholders and fostering a sense of ownership and dedication towards the organization's success. By implementing the Lima Arizona Stock Option Plan, companies can motivate and incentivize their executives to drive superior performance and contribute to the company's long-term growth. The plan helps align the interests of executives with those of the shareholders, reducing agency problems and promoting accountability. It is important to note that the Lima Arizona Stock Option Plan may have variations or additional subplans, such as a Stock Appreciation Rights (SARS) plan or an Employee Stock Purchase Plan (ESPN). These subplans can provide further opportunities for executives to participate in the company's success and growth. In summary, the Lima Arizona Stock Option Plan is a comprehensive compensation program that provides executive officers with the opportunity to acquire company stock through Incentive Stock Options (SOS) and Nonqualified Stock Options (Nests). These options aim to incentivize and retain top talents, align executive interests with shareholders, and drive long-term growth and success for the organization.

The Lima Arizona Stock Option Plan is a comprehensive compensation program designed for executive officers of corporate entities. This plan offers two types of stock options: Incentive Stock Options (SOS) and Nonqualified Stock Options (Nests). SOS are stock options granted to executives, allowing them to purchase company stock at a predetermined price, known as the exercise price. These options provide potential tax advantages for the executive, as they may be subject to long-term capital gains taxes upon selling the acquired stock. To qualify for SOS, certain criteria established by the Internal Revenue Service (IRS) must be met, ensuring that the executive holds the stock for a designated period of time. On the other hand, Nests are stock options that do not meet the specific requirements set by the IRS for SOS. Unlike SOS, Nests are subject to ordinary income tax rates upon exercising the options. However, Nests offer more flexibility in terms of eligibility requirements, vesting schedules, and exercise prices, making them a popular choice for executive compensation plans. The Lima Arizona Stock Option Plan is designed to attract and retain top executive talents by providing them with a valuable equity stake in the company. Executives have the opportunity to acquire company stock, thereby aligning their interests with those of the shareholders and fostering a sense of ownership and dedication towards the organization's success. By implementing the Lima Arizona Stock Option Plan, companies can motivate and incentivize their executives to drive superior performance and contribute to the company's long-term growth. The plan helps align the interests of executives with those of the shareholders, reducing agency problems and promoting accountability. It is important to note that the Lima Arizona Stock Option Plan may have variations or additional subplans, such as a Stock Appreciation Rights (SARS) plan or an Employee Stock Purchase Plan (ESPN). These subplans can provide further opportunities for executives to participate in the company's success and growth. In summary, the Lima Arizona Stock Option Plan is a comprehensive compensation program that provides executive officers with the opportunity to acquire company stock through Incentive Stock Options (SOS) and Nonqualified Stock Options (Nests). These options aim to incentivize and retain top talents, align executive interests with shareholders, and drive long-term growth and success for the organization.