Pima Arizona 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: Pima
• 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 Lima Arizona Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program designed to provide employees with various types of stock options. This enables them to purchase company shares at a predetermined price within a specified timeframe. This plan plays a vital role in incentivizing and retaining talented employees while aligning their interests with the company's overall performance. By offering both Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS), Hayes Wheels International, Inc. caters to different employee groups and maximizes the benefits of a diverse workforce. 1. Incentive Stock Options (SOS): Incentive Stock Options are a type of stock option exclusively available for eligible employees. They provide certain tax advantages compared to SOS, making them a popular choice for employees. SOS are usually granted at a discounted price, known as the exercise price, which allows employees to purchase company shares in the future. To qualify for favorable tax treatment, SOS must comply with specific Internal Revenue Service (IRS) regulations, including holding periods and exercise price limits. 2. Nonqualified Stock Options (SOS): Nonqualified Stock Options are available to a broader group of employees, including consultants, directors, and non-employee service providers. Unlike SOS, SOS do not have to meet the strict IRS requirements for favorable tax treatment. SOS typically have a predetermined exercise price that employees can pay to acquire company shares. Upon exercise, employees will receive ordinary taxable income on the difference between the exercise price and the fair market value of the stock. By offering both SOS and SOS, the Lima Arizona Stock Option Plan of Hayes Wheels International, Inc. provides flexibility and accommodates the varied needs and circumstances of its employees. The plan enables eligible employees to participate in the company's growth and success by purchasing stock at a favorable price, fostering a sense of ownership and loyalty. Additionally, the different types of stock options allow for strategic compensation planning and the retention of key talent within the organization.

The Lima Arizona Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program designed to provide employees with various types of stock options. This enables them to purchase company shares at a predetermined price within a specified timeframe. This plan plays a vital role in incentivizing and retaining talented employees while aligning their interests with the company's overall performance. By offering both Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS), Hayes Wheels International, Inc. caters to different employee groups and maximizes the benefits of a diverse workforce. 1. Incentive Stock Options (SOS): Incentive Stock Options are a type of stock option exclusively available for eligible employees. They provide certain tax advantages compared to SOS, making them a popular choice for employees. SOS are usually granted at a discounted price, known as the exercise price, which allows employees to purchase company shares in the future. To qualify for favorable tax treatment, SOS must comply with specific Internal Revenue Service (IRS) regulations, including holding periods and exercise price limits. 2. Nonqualified Stock Options (SOS): Nonqualified Stock Options are available to a broader group of employees, including consultants, directors, and non-employee service providers. Unlike SOS, SOS do not have to meet the strict IRS requirements for favorable tax treatment. SOS typically have a predetermined exercise price that employees can pay to acquire company shares. Upon exercise, employees will receive ordinary taxable income on the difference between the exercise price and the fair market value of the stock. By offering both SOS and SOS, the Lima Arizona Stock Option Plan of Hayes Wheels International, Inc. provides flexibility and accommodates the varied needs and circumstances of its employees. The plan enables eligible employees to participate in the company's growth and success by purchasing stock at a favorable price, fostering a sense of ownership and loyalty. Additionally, the different types of stock options allow for strategic compensation planning and the retention of key talent within the organization.