Franklin Ohio Stock Option Plan Stock Option Plan which provides for grant of Incentive Stock Options, Nonqualified Stock Options, and Exchange Options

• Category: Corporations - Public - Stock Options
• State: Multi-State
• County: Franklin
• Control #: US-CC-18-219B
• Format: Word; Rich Text

Description

18-219B 18-219B . . . Stock Option Plan which provides for grant of Incentive Stock Options, (b) Non-qualified Stock Options, and (c) Exchange Options under which employees of the corporation or any of its subsidiaries can exchange (i) all of their options for shares of a subsidiary that were granted under that subsidiary's stock option plan and are outstanding as of the date of adoption of this Plan and all their awards under that subsidiary's Restricted Stock Plan for restricted shares of that subsidiary's stock that are outstanding as of the date of adoption of this Plan and receive therefor non-qualified options for shares under this Plan, (ii) all of their restricted shares of a subsidiary that were issued under the subsidiary's Performance Restricted Stock Plan and receive therefor non-qualified options for shares under this Plan, and (iii) all of their stock appreciation rights with respect to shares of a subsidiary that were granted under that subsidiary's Stock Appreciation Rights Plan and receive therefor non-qualified options for shares under this Plan The Franklin Ohio Stock Option Plan is a comprehensive program that allows eligible employees and key personnel of Franklin Ohio, a prominent company located in Ohio, to receive various types of stock options as part of their compensation package. This plan is designed to motivate and reward employees for their dedication and contribution to the growth and success of the company. The Stock Option Plan includes three main types of stock options: Incentive Stock Options (SOS), Nonqualified Stock Options (Nests), and Exchange Options. Each type offers unique benefits and conditions, catering to different needs and goals of employees. 1. Incentive Stock Options (SOS): SOS are stock options granted to employees that provide significant tax advantages. These options give employees the right to purchase company stocks at a predetermined price, known as the exercise price, within a specific timeframe. The exercise price of SOS is usually set at or above the current market price when the options are granted. If certain requirements are met, employees may enjoy favorable tax treatment upon exercising these options. 2. Nonqualified Stock Options (Nests): Nests are another type of stock option granted to employees, but they do not offer the same tax advantages as SOS. Nests allow employees to purchase company stocks at a predetermined price within a specified timeframe. However, the exercise price of Nests can be set below the current market price at the time of grant. When employees exercise Nests, the difference between the exercise price and the fair market value is subject to ordinary income tax. 3. Exchange Options: Exchange Options provide employees with the opportunity to exchange previously granted stock options for new options with modified terms. The terms may include adjustments to the exercise price, the number of shares, or the expiration date. Exchange Options can be beneficial to employees who wish to align their stock options with their changing financial goals or company circumstances. The Franklin Ohio Stock Option Plan aims to create a comprehensive framework to provide employees with valuable stock options that align with their interests, financial objectives, and tax considerations. It also ensures the retention and motivation of talented individuals who contribute to the company's growth and success.

The Franklin Ohio Stock Option Plan is a comprehensive program that allows eligible employees and key personnel of Franklin Ohio, a prominent company located in Ohio, to receive various types of stock options as part of their compensation package. This plan is designed to motivate and reward employees for their dedication and contribution to the growth and success of the company. The Stock Option Plan includes three main types of stock options: Incentive Stock Options (SOS), Nonqualified Stock Options (Nests), and Exchange Options. Each type offers unique benefits and conditions, catering to different needs and goals of employees. 1. Incentive Stock Options (SOS): SOS are stock options granted to employees that provide significant tax advantages. These options give employees the right to purchase company stocks at a predetermined price, known as the exercise price, within a specific timeframe. The exercise price of SOS is usually set at or above the current market price when the options are granted. If certain requirements are met, employees may enjoy favorable tax treatment upon exercising these options. 2. Nonqualified Stock Options (Nests): Nests are another type of stock option granted to employees, but they do not offer the same tax advantages as SOS. Nests allow employees to purchase company stocks at a predetermined price within a specified timeframe. However, the exercise price of Nests can be set below the current market price at the time of grant. When employees exercise Nests, the difference between the exercise price and the fair market value is subject to ordinary income tax. 3. Exchange Options: Exchange Options provide employees with the opportunity to exchange previously granted stock options for new options with modified terms. The terms may include adjustments to the exercise price, the number of shares, or the expiration date. Exchange Options can be beneficial to employees who wish to align their stock options with their changing financial goals or company circumstances. The Franklin Ohio Stock Option Plan aims to create a comprehensive framework to provide employees with valuable stock options that align with their interests, financial objectives, and tax considerations. It also ensures the retention and motivation of talented individuals who contribute to the company's growth and success.