Harris Texas Stock Option Plan of Hayes Wheels International, Inc., which provides for grant of Incentive Stock Options and Nonqualified Stock Options

• Category: Corporations - Public - Stock Options
• State: Multi-State
• County: Harris
• Control #: US-CC-18-345E
• Format: Word; Rich Text

Description

18-345E 18-345E . . . Stock Option Plan which provides for grant of Incentive Stock Options and Non-qualified Stock Options and (b) initial option grants to certain named officers, employees and consultants which contain specific Time Conditions and Performance Conditions as follows: number of shares underlying each option grant is divided into five equal portions which are designated Tranche A through Tranche E. Twenty percent of shares included in each of Tranches A through E shall satisfy Time Condition if optionee is employee or consultant on January 31, 1997 and on each January 31 thereafter. One hundred percent of shares included in each of Tranches A through E satisfy Performance Condition if average per share price of common stock for any consecutive twenty trading days on principal exchange on which common stock is traded equals or exceeds following prices: Tranche A - $16 per share, Tranche B - $32 per share, Tranche C - $48 per share, Tranche D - $64 per share, Tranche E - $80 per share. Notwithstanding above, Initial Grants become fully exercisable on ninth anniversary of date of grant The Harris Texas Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program designed to provide employees of the company with the opportunity to acquire company stock through the granting of stock options. These options include both Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS). SOS are a type of stock option plan that is granted to employees in a tax-advantaged manner. Under this plan, employees have the right to purchase company stock at a predetermined price, known as the exercise price or strike price. The SOS are subject to certain requirements set by the Internal Revenue Service (IRS), such as having a maximum exercise price and a limited term of exercise. If these requirements are met, the employees can benefit from favorable tax treatment when they exercise their options and sell the stock. On the other hand, SOS are stock options that do not qualify for the tax advantages provided by SOS. They are typically offered to employees who do not meet the eligibility criteria for SOS or to non-employees such as consultants or directors. SOS are not subject to the IRS requirements for SOS and can have a more flexible exercise price and term. However, the employees who exercise SOS may be subject to ordinary income tax on the difference between the exercise price and the fair market value of the stock at the time of exercise. The Harris Texas Stock Option Plan of Hayes Wheels International, Inc. aims to provide employees with a valuable incentive to contribute to the company's success by aligning their interests with those of the shareholders. By offering both SOS and SOS, the plan caters to employees of various eligibility levels and roles within the company. In summary, the Harris Texas Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program that offers employees the opportunity to acquire company stock through Incentive Stock Options and Nonqualified Stock Options. The SOS provide tax advantages to eligible employees, while the SOS offer flexibility to a broader range of participants. This plan aims to motivate and reward employees for their contributions while promoting the long-term growth and success of the company.

The Harris Texas Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program designed to provide employees of the company with the opportunity to acquire company stock through the granting of stock options. These options include both Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS). SOS are a type of stock option plan that is granted to employees in a tax-advantaged manner. Under this plan, employees have the right to purchase company stock at a predetermined price, known as the exercise price or strike price. The SOS are subject to certain requirements set by the Internal Revenue Service (IRS), such as having a maximum exercise price and a limited term of exercise. If these requirements are met, the employees can benefit from favorable tax treatment when they exercise their options and sell the stock. On the other hand, SOS are stock options that do not qualify for the tax advantages provided by SOS. They are typically offered to employees who do not meet the eligibility criteria for SOS or to non-employees such as consultants or directors. SOS are not subject to the IRS requirements for SOS and can have a more flexible exercise price and term. However, the employees who exercise SOS may be subject to ordinary income tax on the difference between the exercise price and the fair market value of the stock at the time of exercise. The Harris Texas Stock Option Plan of Hayes Wheels International, Inc. aims to provide employees with a valuable incentive to contribute to the company's success by aligning their interests with those of the shareholders. By offering both SOS and SOS, the plan caters to employees of various eligibility levels and roles within the company. In summary, the Harris Texas Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program that offers employees the opportunity to acquire company stock through Incentive Stock Options and Nonqualified Stock Options. The SOS provide tax advantages to eligible employees, while the SOS offer flexibility to a broader range of participants. This plan aims to motivate and reward employees for their contributions while promoting the long-term growth and success of the company.