Wake North Carolina 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: Wake
• 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 Wake North Carolina Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program designed to provide employees with the opportunity to acquire ownership in the company through the grant of Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS). These stock options serve as a means to incentivize and reward employees for their valuable contributions to the company's success. SOS are a type of stock option that may only be granted to employees and are governed by specific rules and regulations outlined in the Internal Revenue Code (IRC). This type of stock option offers potential tax benefits to employees, as any gain realized from exercising the options is generally treated as long-term capital gain if certain holding requirements are met. On the other hand, SOS are stock options that can be granted to both employees and non-employees, such as consultants or directors. Unlike SOS, SOS do not have to comply with the strict rules set forth by the IRC and, therefore, do not offer the same tax advantages. However, SOS have greater flexibility in terms of grant conditions and exercise price. The Wake North Carolina Stock Option Plan may include various types of SOS and SOS, including: 1. Vesting Schedule: This type of stock option plan may incorporate a vesting schedule, which determines the timeframe in which employees become eligible to exercise their options. Vesting schedules are often based on the employee's length of service with the company and are designed to retain employees over the long term. 2. Performance-Based Options: In some cases, the Wake North Carolina Stock Option Plan may include performance-based stock options. These options are granted based on achieving certain predefined performance metrics, such as revenue targets or profitability goals. This type of stock option plan aligns the interests of employees with the overall success of the company. 3. Option Exercise Price: Another aspect that may vary within the Wake North Carolina Stock Option Plan is the exercise price. The exercise price is the predetermined price at which employees can purchase the stock underlying their options. The plan may allow for options to be granted at a discount to the fair market value or set at the current market price of the company's stock. Overall, the Wake North Carolina Stock Option Plan of Hayes Wheels International, Inc. provides a mechanism for employees to participate in the company's growth and success. Through the grant of SOS and SOS, employees can potentially benefit from the appreciation of the company's stock while aligning their interests with those of the shareholders. The plan may offer various types of stock options, such as those based on vesting schedules, performance metrics, and different exercise prices, ensuring flexibility and customization to suit the company's specific needs.

The Wake North Carolina Stock Option Plan of Hayes Wheels International, Inc. is a comprehensive program designed to provide employees with the opportunity to acquire ownership in the company through the grant of Incentive Stock Options (SOS) and Nonqualified Stock Options (SOS). These stock options serve as a means to incentivize and reward employees for their valuable contributions to the company's success. SOS are a type of stock option that may only be granted to employees and are governed by specific rules and regulations outlined in the Internal Revenue Code (IRC). This type of stock option offers potential tax benefits to employees, as any gain realized from exercising the options is generally treated as long-term capital gain if certain holding requirements are met. On the other hand, SOS are stock options that can be granted to both employees and non-employees, such as consultants or directors. Unlike SOS, SOS do not have to comply with the strict rules set forth by the IRC and, therefore, do not offer the same tax advantages. However, SOS have greater flexibility in terms of grant conditions and exercise price. The Wake North Carolina Stock Option Plan may include various types of SOS and SOS, including: 1. Vesting Schedule: This type of stock option plan may incorporate a vesting schedule, which determines the timeframe in which employees become eligible to exercise their options. Vesting schedules are often based on the employee's length of service with the company and are designed to retain employees over the long term. 2. Performance-Based Options: In some cases, the Wake North Carolina Stock Option Plan may include performance-based stock options. These options are granted based on achieving certain predefined performance metrics, such as revenue targets or profitability goals. This type of stock option plan aligns the interests of employees with the overall success of the company. 3. Option Exercise Price: Another aspect that may vary within the Wake North Carolina Stock Option Plan is the exercise price. The exercise price is the predetermined price at which employees can purchase the stock underlying their options. The plan may allow for options to be granted at a discount to the fair market value or set at the current market price of the company's stock. Overall, the Wake North Carolina Stock Option Plan of Hayes Wheels International, Inc. provides a mechanism for employees to participate in the company's growth and success. Through the grant of SOS and SOS, employees can potentially benefit from the appreciation of the company's stock while aligning their interests with those of the shareholders. The plan may offer various types of stock options, such as those based on vesting schedules, performance metrics, and different exercise prices, ensuring flexibility and customization to suit the company's specific needs.