NQSO Clause Samples
An NQSO, or Non-Qualified Stock Option, clause defines the terms under which an employee or service provider may purchase company stock at a set price, but without the tax advantages of incentive stock options. This clause typically outlines eligibility, vesting schedules, exercise periods, and the tax implications for the option holder, such as ordinary income tax upon exercise. Its core function is to provide a flexible form of equity compensation that can be granted to a broader range of recipients, while clearly specifying the rights and obligations associated with the options.
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NQSO. Only with respect to the grant of the NQSO, the following provisions apply:
NQSO. The terms and conditions of this Agreement are subject to the terms and provisions of the Plan, as amended, of which the Participant acknowledges receiving a copy.
NQSO. A Non-Qualified Stock Option, which is an Option that does not qualify as an ISO.
NQSO. If prior to the Executive's termination of employment, a Change in Control of the Company occurs, as that term is defined in the CIC Agreement, the NQSO shall be fully exercisable.
NQSO. Optionee further understands that the Option(s) granted hereunder shall expire and become un-exercisable as provided in Section 5(c) below.
NQSO. In addition to such other conditions as may be established by the Committee in its sole discretion, in consideration of the granting of an award under the terms of the ▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇ 2022 Long-Term Incentive Plan, as amended from time to time (the “Plan”), you agree as follows:
NQSO. If the Participant holds NQSO Shares for at least one year, any gain realized on disposition of the Shares will be treated as long-term capital gain for federal income tax purposes.
NQSO. This is a Nonqualified Stock Option whose grant is intended not to fall under the provisions of Internal Revenue Code Section 422.