Harris Texas Stock Option Grants and Exercises and Fiscal Year-End Values

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This sample form, a detailed Stock Option Grants and Exercises and Fiscal Year-End Values document, is a model for use in corporate matters. The language is easily adapted to fit your specific circumstances. Available in several standard formats.

Harris Texas Stock Option Grants and Exercises refer to the stock options granted to employees or executives of Harris Corporation, a company located in Texas. These stock options provide the opportunity for individuals to purchase a specified number of company shares at a predetermined price within a specific timeframe. One type of stock option grant offered by Harris Texas is the "Incentive Stock Option" (ISO). This type of grant is typically reserved for employees and allows them to enjoy potential tax advantages. SOS are subject to certain eligibility criteria and must be held for a specific period before they can be sold. Another type of stock option grant available is the "Non-Qualified Stock Option" (NO). Nests can be granted to both employees and non-employees, such as consultants or directors. Unlike SOS, Nests do not qualify for special tax treatment. However, they offer more flexibility in terms of exercise and sale timing. When employees or executives decide to exercise their stock options, they purchase the company's shares at the predetermined price (also known as the grant price or strike price). After exercising, they can either hold onto the shares or sell them in the open market, depending on their investment and financial goals. Fiscal year-end values pertain to the value of Harris Corporation's stock options held by employees and executives at the end of a fiscal year. The value is determined by various factors, including the stock price of the company and the number of vested options. These stock option grants and exercises play a crucial role in employee compensation and incentivizing performance within Harris Corporation. They serve as powerful tools to attract and retain talent by giving employees a stake in the company's success. It is important for individuals who receive stock option grants to carefully consider their unique financial situations, tax implications, and market conditions before exercising their options. Seeking professional advice regarding stock options and their potential impact on personal finances is strongly recommended. In summary, Harris Texas Stock Option Grants and Exercises and Fiscal Year-End Values are integral components of Harris Corporation's compensation structure. By offering various types of stock options and providing employees an opportunity to participate in the company's growth, Harris aims to align employee interests with the company's overall success.

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FAQ

Definition: Exercise date refers to the date on which a trader decides to exercise an option (Call/Put) on an exchange or with a brokerage whether bought or written/sold where 'exercise' means making use of the actual right specified in the contract.

FINRA reminds members that option holders who hold expiring options have until p.m. Eastern Time (ET) on the day of expiration to make a final exercise decision to exercise or not exercise the option.

Restricted stock that vests with time: While the GDFV for stock options is derived from a sophisticated calculation, the GDFV of restricted stock reported in proxies is simply equal to the value of the restricted stock on the date of grant (i.e., the number of shares multiplied by the stock price at grant).

Exercising a stock option means purchasing the issuer's common stock at the price set by the option (grant price), regardless of the stock's price at the time you exercise the option.

The FMV is the price per share that startup employees pay when they "exercise" their stock options (ISO, NSO). The FMV is determined on the day stock options are issued. This date is called the "Grant date".

Option Grant Date means the date upon which an Option is granted to a Non-Employee Director.

The quick way of calculating the value of your options is to take the value of the company as given by the TechCrunch announcement of its latest funding round, divide by the number of outstanding shares and multiply by the number of options you have.

Fair Value Awards For restricted stock with time-based vesting, the fair value equals the stock price on grant date. For stock options or stock-based stock appreciation rights with time-based vesting, the fair value is generally estimated using a Black-Scholes or similar model.

The first important part of the vesting schedule is your Cliff Date. This is the first date that any of your options will become eligible for exercise. The Cliff Date is typically 1 year after the issue date of the grant or the Vesting Calculation Date.

Exercise date: The date stock options are exercised to purchase stock at the grant price. Exercise price: See Grant Price. Grant date: The date stock options are given to the recipient. Grant price: The price an employee must pay the company for shares purchased when exercising options.

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Harris Texas Stock Option Grants and Exercises and Fiscal Year-End Values