Fairfax Virginia Stock Option Plan which provides for grant of Incentive Stock Options, Nonqualified Stock Options and Stock Appreciation Rights

• Category: Corporations - Public - Stock Options
• State: Multi-State
• County: Fairfax
• Control #: US-CC-18-217D
• Format: Word; Rich Text

Description

18-217D 18-217D . . . Stock Option Plan which provides for grant of Incentive Stock Options, (b) Non-qualified Stock Options (c) Stock Appreciation Rights, and (d) Limited Rights (which become exercisable upon (i) expiration of a tender offer, (ii) approval by stockholders of an Acquisition Transaction (as defined), (iii) date on which corporation is provided a copy of a Schedule 13D indicating that any person or group has become the holder of 25% or more of the outstanding shares of the corporation, or (iv) a change in composition of the Board of Directors such that individuals who served on the Board one year prior to such change no longer constitute a majority of the directors Fairfax Virginia Stock Option Plan is a comprehensive program designed to provide employees of participating companies in Fairfax, Virginia, with various types of stock options and stock appreciation rights. These plans are aimed at motivating and rewarding employees for their contributions to the company's growth and success. The Fairfax Virginia Stock Option Plan offers three main types of stock options and rights: Incentive Stock Options (SOS), Nonqualified Stock Options (SOS), and Stock Appreciation Rights (SARS). 1. Incentive Stock Options (SOS): SOS are a type of stock option granted to employees that offer certain tax advantages. These options are typically awarded at a specific exercise price, which is usually lower than the stock's fair market value at the time of the grant. Employees can exercise SOS after a specific vesting period, allowing them to purchase company stock at the exercise price. If certain holding requirements are met, the employee may be eligible for long-term capital gains tax treatment upon selling the acquired stock. 2. Nonqualified Stock Options (SOS): SOS are stock options that do not meet the eligibility criteria for SOS. These options are granted to employees and often have a higher exercise price equal to the fair market value of the stock at the time of grant. SOS are more flexible in terms of who can receive them, as they can be awarded to consultants, directors, and other non-employee service providers. Upon exercise, employees typically incur ordinary income tax on the difference between the fair market value of the stock and the exercise price. 3. Stock Appreciation Rights (SARS): SARS provide employees with the opportunity to benefit from the appreciation in the company's stock value without requiring a stock purchase. When SARS are exercised, employees receive the amount of the stock appreciation in cash or company stock, depending on the plan's terms. This type of stock option is particularly useful when employees want to avoid using their own funds to exercise options or if they prefer not to hold company stock directly. The Fairfax Virginia Stock Option Plan offers these options and rights as part of a comprehensive approach to reward and incentivize employees within participating companies. By providing employees with the opportunity to share in the company's success, these plans aim to align the interests of employees with those of the company, driving overall performance and fostering a positive work environment.

Fairfax Virginia Stock Option Plan is a comprehensive program designed to provide employees of participating companies in Fairfax, Virginia, with various types of stock options and stock appreciation rights. These plans are aimed at motivating and rewarding employees for their contributions to the company's growth and success. The Fairfax Virginia Stock Option Plan offers three main types of stock options and rights: Incentive Stock Options (SOS), Nonqualified Stock Options (SOS), and Stock Appreciation Rights (SARS). 1. Incentive Stock Options (SOS): SOS are a type of stock option granted to employees that offer certain tax advantages. These options are typically awarded at a specific exercise price, which is usually lower than the stock's fair market value at the time of the grant. Employees can exercise SOS after a specific vesting period, allowing them to purchase company stock at the exercise price. If certain holding requirements are met, the employee may be eligible for long-term capital gains tax treatment upon selling the acquired stock. 2. Nonqualified Stock Options (SOS): SOS are stock options that do not meet the eligibility criteria for SOS. These options are granted to employees and often have a higher exercise price equal to the fair market value of the stock at the time of grant. SOS are more flexible in terms of who can receive them, as they can be awarded to consultants, directors, and other non-employee service providers. Upon exercise, employees typically incur ordinary income tax on the difference between the fair market value of the stock and the exercise price. 3. Stock Appreciation Rights (SARS): SARS provide employees with the opportunity to benefit from the appreciation in the company's stock value without requiring a stock purchase. When SARS are exercised, employees receive the amount of the stock appreciation in cash or company stock, depending on the plan's terms. This type of stock option is particularly useful when employees want to avoid using their own funds to exercise options or if they prefer not to hold company stock directly. The Fairfax Virginia Stock Option Plan offers these options and rights as part of a comprehensive approach to reward and incentivize employees within participating companies. By providing employees with the opportunity to share in the company's success, these plans aim to align the interests of employees with those of the company, driving overall performance and fostering a positive work environment.