Orange California 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: Orange
• 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 Orange California Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program that offers employees the opportunity to receive stock options as part of their remuneration package. This plan is designed to provide various types of stock options, including Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS). Incentive Stock Options (SOS) are stock options that are granted to employees with certain tax advantages. Employees who are awarded SOS have the opportunity to purchase company stock at a predetermined price, known as the exercise price, within a specific timeframe. The exercise price for SOS is typically set at or above the market price of the stock on the grant date. If employees choose to exercise their SOS and hold the shares for a specific period, any appreciation in the stock's value may be subject to favorable capital gains tax rates upon eventual sale. Nonqualified Stock Options (SOS) are another type of stock option available under the Orange California Stock Option Plan. SOS provide employees with the right to purchase company stock at a predetermined price, similar to SOS. However, SOS do not offer the same tax advantages as SOS. When an employee exercises SOS, the difference between the exercise price and the fair market value of the stock at the time of exercise is subject to ordinary income tax rates. Hayes Wheels International, Inc. understands the importance of providing flexibility to its employees. As such, the Orange California Stock Option Plan may offer different vesting schedules for both SOS and SOS. Vesting refers to the period of time an employee must wait before being able to exercise their stock options. This approach ensures that employees have a vested interest in the company's long-term success, as they will only benefit from the options once certain conditions, such as a specific employment tenure, are met. Overall, the Orange California Stock Option Plan of Hayes Wheels International, Inc. serves as a valuable tool for incentivizing and rewarding employees. By offering both Incentive Stock Options and Nonqualified Stock Options, the plan caters to employees with different tax situations and provides them with the opportunity to share in the company's growth and success.

The Orange California Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program that offers employees the opportunity to receive stock options as part of their remuneration package. This plan is designed to provide various types of stock options, including Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS). Incentive Stock Options (SOS) are stock options that are granted to employees with certain tax advantages. Employees who are awarded SOS have the opportunity to purchase company stock at a predetermined price, known as the exercise price, within a specific timeframe. The exercise price for SOS is typically set at or above the market price of the stock on the grant date. If employees choose to exercise their SOS and hold the shares for a specific period, any appreciation in the stock's value may be subject to favorable capital gains tax rates upon eventual sale. Nonqualified Stock Options (SOS) are another type of stock option available under the Orange California Stock Option Plan. SOS provide employees with the right to purchase company stock at a predetermined price, similar to SOS. However, SOS do not offer the same tax advantages as SOS. When an employee exercises SOS, the difference between the exercise price and the fair market value of the stock at the time of exercise is subject to ordinary income tax rates. Hayes Wheels International, Inc. understands the importance of providing flexibility to its employees. As such, the Orange California Stock Option Plan may offer different vesting schedules for both SOS and SOS. Vesting refers to the period of time an employee must wait before being able to exercise their stock options. This approach ensures that employees have a vested interest in the company's long-term success, as they will only benefit from the options once certain conditions, such as a specific employment tenure, are met. Overall, the Orange California Stock Option Plan of Hayes Wheels International, Inc. serves as a valuable tool for incentivizing and rewarding employees. By offering both Incentive Stock Options and Nonqualified Stock Options, the plan caters to employees with different tax situations and provides them with the opportunity to share in the company's growth and success.