Fairfax Virginia Stock Option Agreement between Northern Bank of Commerce and Cowlitz Bancorporation

• Category: Corporations - Public - Stock Options
• State: Multi-State
• County: Fairfax
• Control #: US-EG-9341
• Format: Word; Rich Text

Description

Stock Option Agreement between Northern Bank of Commerce and Cowlitz Bancorporation dated September 14, 1999. 26 pages. Fairfax Virginia Stock Option Agreement is a legal contract between Northern Bank of Commerce and Cowling Ban corporation that outlines the terms and conditions of stock options granted by Northern Bank of Commerce to Cowling Ban corporation. This agreement provides Cowling Ban corporation with the right but not the obligation to purchase a certain number of shares of Northern Bank of Commerce's stock at a predetermined price within a specified time period. The stock option agreement encompasses various important elements such as the grant date, vesting schedule, exercise price, expiration date, and exercise period. The grant date signifies when the stock options are awarded to Cowling Ban corporation, while the vesting schedule determines when the options become exercisable, typically based on the employee's length of service. The exercise price, also known as the strike price, establishes the predetermined price at which Cowling Ban corporation can purchase the stock options. This price is often set at or above the market price of the underlying stock on the grant date to provide an incentive for Cowling Ban corporation to exercise the options in the future when the stock price has hopefully increased. Furthermore, the agreement specifies an expiration date, which signifies the last date on which Cowling Ban corporation can exercise the stock options. It is crucial for Cowling Ban corporation to exercise the options within the exercise period, as failure to do so will result in the options being forfeited. In addition to the standard Fairfax Virginia Stock Option Agreement, there may be several variations depending on specific factors such as the type of stock options granted or additional conditions imposed. Some types of stock option agreements that may exist between Northern Bank of Commerce and Cowling Ban corporation include Non-Qualified Stock Options (Nests) and Incentive Stock Options (SOS). Non-Qualified Stock Options are typically more flexible and have fewer restrictions than Incentive Stock Options. They can be granted to employees, directors, or consultants and are subject to income tax upon exercise. In contrast, Incentive Stock Options are governed by strict requirements outlined in the Internal Revenue Code. They offer potential tax advantages but must meet specific criteria related to the employee's status, holding periods, and exercise limits. In conclusion, the Fairfax Virginia Stock Option Agreement between Northern Bank of Commerce and Cowling Ban corporation is an essential agreement that governs the issuance and exercise of stock options. It provides Cowling Ban corporation with the opportunity to acquire Northern Bank of Commerce's shares at a predetermined price within a specific timeframe. Different types of stock option agreements, such as Non-Qualified Stock Options and Incentive Stock Options, can be employed depending on various factors and requirements.

Fairfax Virginia Stock Option Agreement is a legal contract between Northern Bank of Commerce and Cowling Ban corporation that outlines the terms and conditions of stock options granted by Northern Bank of Commerce to Cowling Ban corporation. This agreement provides Cowling Ban corporation with the right but not the obligation to purchase a certain number of shares of Northern Bank of Commerce's stock at a predetermined price within a specified time period. The stock option agreement encompasses various important elements such as the grant date, vesting schedule, exercise price, expiration date, and exercise period. The grant date signifies when the stock options are awarded to Cowling Ban corporation, while the vesting schedule determines when the options become exercisable, typically based on the employee's length of service. The exercise price, also known as the strike price, establishes the predetermined price at which Cowling Ban corporation can purchase the stock options. This price is often set at or above the market price of the underlying stock on the grant date to provide an incentive for Cowling Ban corporation to exercise the options in the future when the stock price has hopefully increased. Furthermore, the agreement specifies an expiration date, which signifies the last date on which Cowling Ban corporation can exercise the stock options. It is crucial for Cowling Ban corporation to exercise the options within the exercise period, as failure to do so will result in the options being forfeited. In addition to the standard Fairfax Virginia Stock Option Agreement, there may be several variations depending on specific factors such as the type of stock options granted or additional conditions imposed. Some types of stock option agreements that may exist between Northern Bank of Commerce and Cowling Ban corporation include Non-Qualified Stock Options (Nests) and Incentive Stock Options (SOS). Non-Qualified Stock Options are typically more flexible and have fewer restrictions than Incentive Stock Options. They can be granted to employees, directors, or consultants and are subject to income tax upon exercise. In contrast, Incentive Stock Options are governed by strict requirements outlined in the Internal Revenue Code. They offer potential tax advantages but must meet specific criteria related to the employee's status, holding periods, and exercise limits. In conclusion, the Fairfax Virginia Stock Option Agreement between Northern Bank of Commerce and Cowling Ban corporation is an essential agreement that governs the issuance and exercise of stock options. It provides Cowling Ban corporation with the opportunity to acquire Northern Bank of Commerce's shares at a predetermined price within a specific timeframe. Different types of stock option agreements, such as Non-Qualified Stock Options and Incentive Stock Options, can be employed depending on various factors and requirements.