Virginia Amended and Restated Stock Option Plan of Continental Materials Corp.

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-CC-18-208H
• Format: Word; Rich Text

Description

18-208H 18-208H . . . Non-qualified Stock Option Plan under which committee can award reload stock options (Non-qualified Stock Options which (i) are awarded automatically upon exercise of stock option granted under Plan where option price is paid by optionee's delivery of previously owned shares of common stock, and (ii) entitle such optionee to purchase number of shares so delivered for option price equal to fair market value of a share of common stock on date original option was exercised). Plan provides that if optionee or any other person who acquires options by bequest or inheritance or by reason of his or her death proposes to sell, transfer, or otherwise dispose of shares acquired upon exercise, corporation shall have prior right to purchase all or any part of such shares at market price

The Virginia Amended and Restated Stock Option Plan is a comprehensive compensation program implemented by Continental Materials Corp., a leading company in the construction and heating industry. This plan aims to attract, motivate, and retain talented employees by offering them stock options as a valuable form of remuneration. Under this plan, employees are granted the opportunity to purchase a specific number of shares in Continental Materials Corp. at a predetermined price, usually at a discount. These stock options are generally awarded to employees based on their performance, position within the company, or a combination of both. One type of stock option available under the Virginia Amended and Restated Stock Option Plan is the Incentive Stock Option (ISO). SOS provide employees with tax advantages as they may qualify for special tax treatment under the U.S. Internal Revenue Code. Employees who are granted SOS can exercise their options at a future date and potentially benefit from any increase in the company's stock price. Another type of stock option offered is the Non-Qualified Stock Option (NO). Unlike SOS, Nests do not have the same tax benefits but offer greater flexibility in terms of exercise and payment options. Employees who receive Nests have the liberty to exercise their options whenever they choose, regardless of their employment status. The Virginia Amended and Restated Stock Option Plan ensures that there is a fair and equitable distribution of stock options across the board. It sets clear guidelines for eligibility, vesting schedules, exercise periods, and other relevant terms. The plan may also include provisions for stock option repricing, allowing the company to adjust the exercise price in response to market conditions or other factors. Furthermore, the plan may have rules and restrictions regarding the transferability of stock options, preventing employees from transferring their options to third parties. It may also outline provisions related to the termination of stock options in the event of an employee's retirement, resignation, or termination. In summary, the Virginia Amended and Restated Stock Option Plan of Continental Materials Corp. is a comprehensive compensation program that grants eligible employees the opportunity to purchase company stocks at a predetermined price. The plan includes various types of stock options, such as SOS and Nests, each offering different benefits and tax implications. By implementing this plan, Continental Materials Corp. aims to incentivize and reward its employees, thereby fostering their loyalty and commitment to the company's success.