Franklin Ohio 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: Franklin
• 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 The Franklin Ohio Stock Option Plan is a comprehensive program designed to incentivize and reward employees by offering them a variety of stock options and stock appreciation rights. This plan allows eligible individuals to receive grants for Incentive Stock Options (SOS), Nonqualified Stock Options (SOS), and Stock Appreciation Rights (SARS). Each type of stock option has its own set of rules and regulations, allowing employees to choose the option that best suits their financial goals and tax implications. Incentive Stock Options (SOS) are a type of stock option that can only be granted to employees and not to non-employee directors or consultants. These options provide certain tax advantages by allowing employees to delay paying taxes on the exercise of the options until they sell the underlying stock. ISO grants are subject to specific limitations, such as a maximum grant value and a required option exercise period. Nonqualified Stock Options (SOS), on the other hand, can be granted to both employees and non-employee directors or consultants. SOS do not offer the same tax advantages as SOS since employees are required to pay income tax on the difference between the exercise price and the fair market value of the stock at the time of exercise. However, SOS provide more flexibility in terms of grant amounts and exercise periods since they are not subject to the same limitations as SOS. Lastly, the Franklin Ohio Stock Option Plan also includes Stock Appreciation Rights (SARS). SARS is a form of cash or stock bonus that allows employees to receive the appreciation in value of a specified number of shares of company stock over a predetermined period. Unlike stock options, SARS do not require employees to purchase the underlying stock at a specific exercise price. Instead, employees receive the equivalent value in cash or stock. Overall, the Franklin Ohio Stock Option Plan aims to provide employees with a means of participating in the company's success and growth. By offering different types of stock options and stock appreciation rights, employees have the flexibility to choose the option that aligns with their financial goals and tax preferences.

The Franklin Ohio Stock Option Plan is a comprehensive program designed to incentivize and reward employees by offering them a variety of stock options and stock appreciation rights. This plan allows eligible individuals to receive grants for Incentive Stock Options (SOS), Nonqualified Stock Options (SOS), and Stock Appreciation Rights (SARS). Each type of stock option has its own set of rules and regulations, allowing employees to choose the option that best suits their financial goals and tax implications. Incentive Stock Options (SOS) are a type of stock option that can only be granted to employees and not to non-employee directors or consultants. These options provide certain tax advantages by allowing employees to delay paying taxes on the exercise of the options until they sell the underlying stock. ISO grants are subject to specific limitations, such as a maximum grant value and a required option exercise period. Nonqualified Stock Options (SOS), on the other hand, can be granted to both employees and non-employee directors or consultants. SOS do not offer the same tax advantages as SOS since employees are required to pay income tax on the difference between the exercise price and the fair market value of the stock at the time of exercise. However, SOS provide more flexibility in terms of grant amounts and exercise periods since they are not subject to the same limitations as SOS. Lastly, the Franklin Ohio Stock Option Plan also includes Stock Appreciation Rights (SARS). SARS is a form of cash or stock bonus that allows employees to receive the appreciation in value of a specified number of shares of company stock over a predetermined period. Unlike stock options, SARS do not require employees to purchase the underlying stock at a specific exercise price. Instead, employees receive the equivalent value in cash or stock. Overall, the Franklin Ohio Stock Option Plan aims to provide employees with a means of participating in the company's success and growth. By offering different types of stock options and stock appreciation rights, employees have the flexibility to choose the option that aligns with their financial goals and tax preferences.