King Washington Cash Award is a compensation plan offered to holders of non-exercisable stock options upon a merger or consolidation. This award serves as a financial incentive provided to employees who possess stock options in a company undergoing a merger or consolidation process. It allows them to receive monetary compensation for their non-exercisable stock options, which would otherwise remain exercised due to the corporate restructuring. The King Washington Cash Award is designed to recognize and reward the contribution of employees who hold non-exercisable stock options, ensuring that they are not left empty-handed during a merger or consolidation. By offering this cash payment, the company aims to motivate and maintain employee loyalty, as well as retain key talent through uncertain times. This type of cash award can vary depending on the specifics of the merger or consolidation, and different scenarios may apply, including: 1. King Washington Cash Award for Non-Exercisable Stock Options: This refers to the standard cash award provided to employees holding non-exercisable stock options. It offers them a predetermined monetary compensatory amount based on the value of their non-exercisable options. 2. King Washington Cash Award for Non-Exercisable Stock Options with Extra Benefits: In some cases, the company may enhance the cash award by providing additional benefits or incentives to the employee. These extras could include stock grants, bonus payouts, or other financial rewards, based on negotiated terms. 3. King Washington Cash Award for Non-Exercisable Stock Options in Equity Swap: Another type of cash award may be offered when the merger or consolidation involves an equity swap. In such cases, instead of receiving cash directly, eligible employees may have the opportunity to exchange their non-exercisable stock options for shares or equity in the acquiring or consolidated company. 4. King Washington Cash Award for Non-Exercisable Stock Options with Deferred Payment: In certain merger or consolidation deals, employees with non-exercisable stock options may have their cash award paid out over a specific time frame. This deferred payment structure allows the company more financial flexibility while still compensating employees for their non-exercisable stock options. Overall, the King Washington Cash Award Paid to Holders of Non-Exercisable Stock Options Upon Merger or Consolidation is a valuable compensation plan that recognizes and financially supports employees during periods of significant corporate change. The specific type and structure of the cash award can vary depending on the circumstances and negotiations involved in each merger or consolidation transaction.