Company: GEF
Filing Date: 2025-01-10
Form Type: DEF 14A
Source: 0000043920-25-000004
Chunk: 13

Company: GREIF, INC
Filing Date: 2025-01-10
Form: DEF 14A
Chunk 13
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centive Stock Option, by itself, will result in income to the optionee if the optionee is an employee at all times during the period beginning on the date the Incentive Stock Option is granted and ending three months before the date the optionee exercises the option or ending one year before the exercise date if the optionee's employment terminates due to their disability; however, the excess of the fair market value of the Company’s shares at the time of exercise or, if later, when the optionee's rights in the shares are transferable or no longer subject to a substantial risk of forfeiture over the exercise price or, if later, the share price when the optionee's rights in the shares are transferable or no longer subject to a substantial risk of forfeiture is (unless there is a disposition of shares acquired upon exercise of an Incentive Stock Option in the taxable year of exercise) includable in alternative minimum taxable income which may, under certain circumstances, result in an alternative minimum tax liability to the optionee.

(b) If shares acquired upon exercise of an Incentive Stock Option are disposed of in a taxable transaction after the later of two years from the date on which the Incentive Stock Option is granted or one year from the date on which such shares are transferred to the optionee, long-term capital gain or loss will be realized by the optionee in an amount equal to the difference between the amount realized by the optionee and the optionee’s basis which, except as provided in (e) below, is the exercise price.

(c) Except as provided in (e) below, if the shares acquired upon the exercise of an Incentive Stock Option are disposed of within the two-year period from the date of grant or the one-year period after the transfer of the shares to the optionee upon exercise of the Incentive Stock Option (a “disqualifying disposition”):

(i) Ordinary income will be realized by the optionee at the time of the disqualifying disposition in the amount of the excess, if any, of the fair market value of the shares at the time of such exercise over the exercise price, but not in an amount exceeding the excess, if any, of the amount realized by the optionee over the exercise price.

(ii) Short-term or long-term capital gain will be realized by the optionee at the time of the disqualifying disposition in an amount equal to the excess, if any, of the amount realized over the fair market value of the shares at the time of such exercise