NSO Clause Samples
An NSO, or Non-Statutory Stock Option, clause defines the terms under which a company grants stock options to employees or other service providers that do not qualify for special tax treatment under the Internal Revenue Code. This clause typically outlines eligibility, vesting schedules, exercise price, and the process for exercising the options. Unlike Incentive Stock Options (ISOs), NSOs may be granted to non-employees and are subject to ordinary income tax upon exercise. The core function of the NSO clause is to provide a flexible equity compensation tool for companies to incentivize and retain talent, while clearly specifying the tax and administrative implications for recipients.
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NSO. It is intended that this Option shall be a non-qualified stock option and shall not constitute an incentive stock option for purposes of Section 422 of the Internal Revenue Code of 1986, as amended.
NSO. The Optionee will realize capital gain to the excess of the amount realized from disposition of NSO Shares over the Optionee’s tax basis in the NSO Shares. An Optionee’s tax basis in the NSO Shares generally is the fair market value of the NSO Shares on the date the Optionee exercises the NSO. The capital gain will be long-term or short-term depending on the length of time the Optionee held the NSO Shares.
NSO. If the Optionee holds NSO 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.
NSO. The Company shall grant to the Executive a non-qualified stock option (the “NSO”) to acquire a number of shares of the Company’s common stock (“Common Shares”) with a grant date fair value for accounting purposes of $270,000, at an exercise price per Common Share equal to the closing price of the Common Shares on the Nasdaq Capital Market on January 5, 2022. Subject to continued service with the Company, the Common Shares subject to the NSO shall vest in four equal annual installments, with vesting subject to acceleration in full upon the termination of Executive’s employment (a) by Chembio without Cause (as defined in Section 6.1.1) or by the Executive for Good Reason (as defined in Section 6.1.3) within twelve months following a Change in Control (as defined in Section 6.1.2) or (b) due to Permanent Disability (as defined in Section 6.1.4) or death. The NSO shall expire on January 5, 2029.
NSO. Upon disposition of the NSO Shares, the Optionee will recognize a capital gain or loss equal to the difference between the selling price and the sum of the amount paid for the NSO Shares plus any amount recognized as ordinary income upon exercise of the NSO. If the Optionee holds NSO Shares for at least one year, any gain (or loss) realized on disposition of the NSO Shares will be treated as long-term capital gain (or loss) for federal income tax purposes.
NSO. The Option, granted hereunder shall be deemed to be a Non-Statutory Stock Option ("NSO'"). The Option may be exercised only to the extent it has vested. The Option may be exercised only to the extent it has vested.
NSO. The parties hereto understand and agree that the option represented hereby is not intended to qualify and shall not be treated as an “incentive stock option” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended from time to time (the “Code”).
NSO. Data on recruitment effort and progress
i. This data will contain the following information on all Potential Clients who are referred to the Implementing Agencies:
a. Referral sources
b. Zip code
▇. ▇▇▇▇ referred
d. NFP disposition code of recruitment and consent
e. Characteristics of Potential Clients if available at referral, such as age, gestational age, Medicaid enrollment, etc. (NFP currently collects DOB, estimated delivery date, language)
f. A Study identifier if the Potential Client consented to the Study
NSO. Upon disposition of the Shares, any gain or loss will be treated as capital gain or loss for U.S. Federal income tax purposes.
NSO. If You hold NSO Shares for at least one year, any gain realized on disposition of the Shares over fair market value of the Exercised Shares at time of exercise will be treated as a long-term capital gain for federal income tax purposes.