Harris Texas 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: Harris
• 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 Harris Texas Stock Option Plan is a comprehensive stock option plan that offers various types of options to eligible employees. This plan allows for the grant of Incentive Stock Options (SOS), Nonqualified Stock Options (Nests), and Exchange Options. Incentive Stock Options, often referred to as SOS, are a type of stock option granted to employees that provide numerous tax advantages. These options are usually granted at a discounted exercise price and are subject to specific holding periods and other requirements outlined by the Internal Revenue Service (IRS). SOS are designed to incentivize employees to hold onto the stock and benefit from any potential increase in value. Nonqualified Stock Options, also known as Nests, differ from SOS as they do not offer the same tax advantages. However, Nests provide more flexibility in terms of exercise timing and use. These options can be granted at market value or a discounted price and can be exercised at any time, regardless of employment status. Exchange Options, on the other hand, offer employees the opportunity to exchange existing stock options or other forms of equity compensation for different types of stock options. This allows for a more tailored approach to employee stock option grants and can accommodate specific employee preferences or changes in company circumstances. The Harris Texas Stock Option Plan strives to provide a comprehensive and flexible framework for employee stock option grants. By offering a range of options — including Incentive Stock Options, Nonqualified Stock Options, and Exchange Options — the plan allows employees to benefit from potential stock price appreciation, while also considering individual tax implications and personal preferences.

The Harris Texas Stock Option Plan is a comprehensive stock option plan that offers various types of options to eligible employees. This plan allows for the grant of Incentive Stock Options (SOS), Nonqualified Stock Options (Nests), and Exchange Options. Incentive Stock Options, often referred to as SOS, are a type of stock option granted to employees that provide numerous tax advantages. These options are usually granted at a discounted exercise price and are subject to specific holding periods and other requirements outlined by the Internal Revenue Service (IRS). SOS are designed to incentivize employees to hold onto the stock and benefit from any potential increase in value. Nonqualified Stock Options, also known as Nests, differ from SOS as they do not offer the same tax advantages. However, Nests provide more flexibility in terms of exercise timing and use. These options can be granted at market value or a discounted price and can be exercised at any time, regardless of employment status. Exchange Options, on the other hand, offer employees the opportunity to exchange existing stock options or other forms of equity compensation for different types of stock options. This allows for a more tailored approach to employee stock option grants and can accommodate specific employee preferences or changes in company circumstances. The Harris Texas Stock Option Plan strives to provide a comprehensive and flexible framework for employee stock option grants. By offering a range of options — including Incentive Stock Options, Nonqualified Stock Options, and Exchange Options — the plan allows employees to benefit from potential stock price appreciation, while also considering individual tax implications and personal preferences.