Cook Illinois Nonqualified and Incentive Stock Option Plan of Intercargo Corp.

• Category: Corporations - Public - Stock Options
• State: Multi-State
• County: Cook
• Control #: US-CC-18-463B
• Format: Word; Rich Text

Description

This is a multi-state form covering the subject matter of the title. The Cook Illinois Nonqualified and Incentive Stock Option Plan is a compensation program implemented by Intercargo Corp. that offers its employees the opportunity to purchase company stock at a predetermined price. This plan is designed to motivate and reward employees for their contributions to the company's success, while also allowing them to potentially benefit from the growth of Intercargo's stock value. Under the Cook Illinois Nonqualified and Incentive Stock Option Plan, there are two types of options available to employees: nonqualified stock options (Nests) and incentive stock options (SOS). 1. Nonqualified Stock Options (Nests): Nests are stock options that do not meet the requirements of the Internal Revenue Code to qualify for special tax treatment. Employees who are granted Nests have the flexibility to exercise their options at any time, subject to certain vesting schedules and expiration dates. When exercising Nests, employees usually realize taxable income equal to the difference between the option price and the fair market value of the stock at the time of exercise. 2. Incentive Stock Options (SOS): SOS are stock options that meet specific IRS criteria and, therefore, qualify for favorable tax treatment. Employees who are granted SOS may have the opportunity to purchase company stock at a predetermined price, which is usually set at the fair market value at the time of grant. To qualify for the preferential tax treatment, SOS must be held for a certain period of time, typically one year after the exercise date and two years after the grant date. When employees exercise SOS, they usually realize no taxable income at the ordinary income tax rate. However, any gain realized upon the sale of the stock is subject to capital gains tax. The Cook Illinois Nonqualified and Incentive Stock Option Plan is a valuable tool for Intercargo Corp. to attract and retain talented employees. By offering employees the opportunity to become shareholders, the plan aligns their interests with the company's long-term success. Additionally, the plan provides a potential additional source of income for employees and encourages a sense of ownership and commitment towards Intercargo's overall goals.

The Cook Illinois Nonqualified and Incentive Stock Option Plan is a compensation program implemented by Intercargo Corp. that offers its employees the opportunity to purchase company stock at a predetermined price. This plan is designed to motivate and reward employees for their contributions to the company's success, while also allowing them to potentially benefit from the growth of Intercargo's stock value. Under the Cook Illinois Nonqualified and Incentive Stock Option Plan, there are two types of options available to employees: nonqualified stock options (Nests) and incentive stock options (SOS). 1. Nonqualified Stock Options (Nests): Nests are stock options that do not meet the requirements of the Internal Revenue Code to qualify for special tax treatment. Employees who are granted Nests have the flexibility to exercise their options at any time, subject to certain vesting schedules and expiration dates. When exercising Nests, employees usually realize taxable income equal to the difference between the option price and the fair market value of the stock at the time of exercise. 2. Incentive Stock Options (SOS): SOS are stock options that meet specific IRS criteria and, therefore, qualify for favorable tax treatment. Employees who are granted SOS may have the opportunity to purchase company stock at a predetermined price, which is usually set at the fair market value at the time of grant. To qualify for the preferential tax treatment, SOS must be held for a certain period of time, typically one year after the exercise date and two years after the grant date. When employees exercise SOS, they usually realize no taxable income at the ordinary income tax rate. However, any gain realized upon the sale of the stock is subject to capital gains tax. The Cook Illinois Nonqualified and Incentive Stock Option Plan is a valuable tool for Intercargo Corp. to attract and retain talented employees. By offering employees the opportunity to become shareholders, the plan aligns their interests with the company's long-term success. Additionally, the plan provides a potential additional source of income for employees and encourages a sense of ownership and commitment towards Intercargo's overall goals.