Award of Incentive Stock Option and Non-Qualified Stock Option Clause Samples

The 'Award of Incentive Stock Option and Non-Qualified Stock Option' clause defines the granting of two types of stock options to an employee or service provider: incentive stock options (ISOs), which may qualify for favorable tax treatment under IRS rules, and non-qualified stock options (NSOs), which do not. This clause typically specifies the number of shares subject to each option, the exercise price, and the vesting schedule, clarifying the terms under which the recipient can purchase company stock. Its core function is to formally document the award of these options, ensuring both parties understand the type of equity compensation being granted and the associated rights and obligations.
Award of Incentive Stock Option and Non-Qualified Stock Option. The Corporation hereby grants to the Participant on Award Date an Incentive Stock Option to purchase [ISOs] (ISOs) shares of the Corporation's Common Stock and a Non-Qualified Stock Option to purchase [NQSOs] (NQSOs) shares of the Corporation's Common Stock, both at a price of $[Share_Price] per share, which is equal to the higher of (i) the Fair Market Value or (ii) the Closing Market Price of the Corporation's Common Stock on the Award Date. For purposes of this Agreement, the term "Closing Market Price" means the price at which the Corporation's Common Stock was last sold in the principal United States market for such Common Stock as of the Award Date. The Non-Qualified Stock Option shall not be treated as an Incentive Stock Option.
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Award of Incentive Stock Option and Non-Qualified Stock Option. The Corporation hereby grants to the Participant on Award Date an Incentive Stock Option to purchase <ISO> (ISOs) shares of the Corporation's Common Stock and a Non-Qualified Stock Option to purchase <NQSO> (NQSOs) shares of the Corporation's Common Stock, both at a price of $<Share Price> per share, which is equal to the Fair Market Value of the Corporation's Common Stock on the Award Date. The Non-Qualified Stock Option shall not be treated as an Incentive Stock Option.
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Related to Award of Incentive Stock Option and Non-Qualified Stock Option

  • Nonqualified Stock Option The Option is a nonqualified stock option and is not, and shall not be, an incentive stock option within the meaning of Section 422 of the Code.

  • Non-Qualified Stock Option This Option is not intended to be an “incentive stock option” within the meaning of Section 422 of the Internal Revenue Code and will be interpreted accordingly.

  • Nonqualified Stock Options If the Shares are held for more than twelve (12) months after the date of purchase of the Shares pursuant to the exercise of an NQSO, any gain realized on disposition of the Shares will be treated as long term capital gain.

  • Exercise of Nonqualified Stock Option If the Option does not qualify as an ISO, there may be a regular federal and California income tax liability upon the exercise of the Option. Participant will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price. If Participant is a current or former employee of the Company, the Company may be required to withhold from Participant’s compensation or collect from Participant and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise.

  • Nonstatutory Stock Option If the Grant Notice so designates, this Option is intended to be a Nonstatutory Stock Option and shall not be treated as an Incentive Stock Option within the meaning of Section 422(b) of the Code.