Qualified Options Clause Samples
The Qualified Options clause defines the specific conditions under which options, such as stock options or purchase rights, are considered to meet certain legal or contractual standards. Typically, this clause outlines eligibility requirements, vesting schedules, or performance criteria that must be satisfied for the options to be granted or exercised. For example, it may specify that only employees who have completed a probationary period or achieved certain milestones are entitled to receive qualified options. The core function of this clause is to ensure that options are only granted or exercised under predefined, compliant circumstances, thereby managing risk and maintaining fairness in the allocation of such benefits.
Qualified Options. The Executive shall be entitled to receive Incentive Stock Options ("ISOs") (as that term is defined in Section 422 of the Internal Revenue Code of 1986, as amended (the "Code")) for 16,000 shares (or such greater or lesser amount then allowed under the Code) (the "1999 Options") of the Company's common stock, $.001 par value per share ("Common Stock") with an exercise price equal to the fair market value of the Common Stock as of July 21, 1999 pursuant to the Company's 1999 Stock Option Plan (the "Option Plan") and the execution of an Incentive Stock Option Agreement dated the date hereof between the Company and the Executive (as provided to the Executive); provided, that, the issuance of 1999 Options is subject to shareholder approval of the Option Plan. Any ISOs issued under this Section 5(d) shall vest equally over two years from the date hereof.
Qualified Options. An optionee is not subject to Federal income tax upon grant of a non-qualified Option. At the time of exercise, the optionee will realize compensation income (subject to withholding) to the extent that the then fair market value of the stock exceeds the Option exercise price. The amount of such income will constitute an addition to the optionee's tax basis in the optioned stock. Sale of the shares will result in capital gain or loss (long-term or short-term depending on the optionee's holding period). The Company is entitled to a Federal tax deduction at the same time and to the same extent that the optionee realizes compensation income. Incentive Stock Options Options under the Plan denominated as Incentive Stock Options are intended to constitute incentive stock options under Section 422A of the Code. An optionee is not subject to Federal income tax upon either the grant or exercise of an Incentive Stock Option. If the optionee holds the shares acquired upon exercise for at least one year after issuance of the optioned shares and until at least two years after grant of the option, then the difference between the amount realized on a subsequent sale or other taxable disposition of the shares and the option price will constitute long-term capital gain or loss. To obtain favorable tax treatment, an Incentive Stock Option must be exercised within three months after termination of employment (other than by retirement, disability, or death) with the Company or a 50% subsidiary. To obtain favorable tax treatment, an Incentive Stock Option must be exercised within three months of retirement or within one year of cessation of employment for disability (with no limitation in the case of death), notwithstanding any longer exercise period permitted under the terms of the Plan. The Company will not be entitled to a Federal tax deduction with respect to the grant or exercise of the Incentive Stock Option. If the optionee sells the shares acquired under an Incentive Stock Option before the requisite holding period, he or she will be deemed to have made a "disqualifying disposition" of the shares and will realize compensation income in the year of disposition equal to the lesser of the fair market value of the shares at exercise or the amount realized on their disposition over the exercise price for the Option. (However, if the disposition is by gift or by sale to a related party, the compensation income must be measured by the value of the shares at exercise over the e...
Qualified Options. Number of Shares Exercisable on or after ---------------- --------------------------------------- 129,286 One year from date of this Agreement 29,286 Two years from date of this Agreement 24,286 Three years from date of this Agreement
Qualified Options. The Executive has been granted stock options by the Board pursuant to the Term Sheet equal to 4.9% of outstanding shares of Common Stock as of January 27, 2012, to be issued as a qualified stock option under a Company Incentive Plan (the “CEO Qualified Options”). The CEO Qualified Options have been authorized to be issued by the Board pursuant to the Term Sheet at an Exercise Price of fair market value as determined by the volume weighted average price per share with respect to the twenty (20) trading days prior to January 27, 2012. The CEO Qualified Options vest 25% at signing and 25% on each anniversary on which the Executive is employed by the Company, until vested in full, exercisable for five (5) years if the Executive remains employed with the Company as of the respective dates of exercise of such options. The vested CEO Qualified Options have a ninety (90) day exercise period after termination of employment of the Executive, and include cashless exercisable provisions and customary stand-down on trading during financings and public offerings (the CEO Qualified
Qualified Options. The Executive shall be entitled to receive Incentive Stock Options ("ISOs") (as that term is defined in Section 422 of the Internal Revenue Code of 1986, as amended (the "Code")) for 37,208 shares (or such greater or lesser amount then allowed under the Code) (the "1999 Options") of the Company's common stock, $.001 par value per share ("Common Stock") with an exercise price equal to the Fair Market Value (as defined in the Option Plan (as defined below)) of the Common Stock as of the date hereof pursuant to the Company's 1999 Stock Option Plan (the "Option Plan") and the execution of an Incentive Stock Option Agreement dated the date hereof between the Company and the Executive (as provided to the Executive). Any ISOs issued under this Section 5(e) shall vest equally over two years from the date hereof, with 50% of the ISOs vesting one year from the date hereof and the remaining 50% vesting two years from the date hereof.
Qualified Options. The Executive shall be entitled to receive Incentive Stock Options ("ISOs") (as that term is defined in Section 422 of the Internal Revenue Code of 1986, as amended (the "Code")) for 25,000 shares (or such greater or lesser amount then allowed under the Code) (the "1999 Options") of the Company's common stock, $.001 par value per share ("Common Stock") with an exercise price equal to the fair market value of the Common Stock as of May 5, 1999 pursuant to the Company's 1999 Stock Option Plan (the "Option Plan"); provided, that, the issuance of 1999 Options is subject to shareholder approval of the Option Plan. Any ISOs issued under this Section 5(d) shall vest in accordance with the terms of the Option Plan, subject to any earlier vesting as provided for hereunder.
Qualified Options. The Executive shall be entitled to receive Incentive Stock Options ("ISOs") (as that term is defined in Section 422 of the Internal Revenue Code of 1986, as amended (the "Code")) for 25,000 shares (or such greater or lesser amount then allowed under the Code) (the "1999 Options") of the Company's common stock, $.001 par value per share ("Common Stock") with an exercise price equal to the fair market value of the Common Stock as of May 5, 1999 pursuant to the Company's 1999 Stock Option Plan (the "Option Plan") and the execution of an Incentive Stock Option Agreement dated the date hereof between the Company and the Executive (as provided to the Executive); provided, that, the issuance of 1999 Options is subject to shareholder approval of the Option Plan. Any ISOs issued under this Section 5(d) shall vest in accordance with the terms of the Option Plan, subject to any earlier vesting as provided for hereunder.