Company: NSP
Filing Date: 2025-04-15
Form Type: DEF 14A
Source: 0001000753-25-000013
Chunk: 84

Company: INSPERITY, INC.
Filing Date: 2025-04-15
Form: DEF 14A
Chunk 84
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 Termination
The Board may amend, alter or discontinue the Plan, except that no amendment or alteration that would impair the rights of a holder of any Award shall be made without the holder’s consent, and no amendment or alteration shall be effective

#### Insperity602025 Proxy Statement
prior to approval by the stockholders to the extent the Board determines such approval is required by applicable laws, regulations or exchange requirements.

#### Federal Income Tax Consequences
The following is a general summary of current U.S. federal income tax treatment of non-cash awards, which are authorized to be granted under the Plan, based upon current provisions of the Internal Revenue Code and regulations promulgated thereunder. The statutory rules and interpretations are subject to change, and may vary in individual circumstances.

#### Stock Options
The Internal Revenue Code provides that a participant receiving a nonqualified stock option ordinarily does not realize taxable income upon the grant of the option. A participant does, however, realize compensation income taxed at ordinary income tax rates upon the exercise of a nonqualified stock option to the extent that the fair market value of the common stock on the date of exercise exceeds the option price. When the participant sells the shares acquired pursuant to a nonqualified stock option, any gain or loss will be short-term or long-term capital gain or loss.

The grant of an ISO does not result in taxable income to a participant. The exercise of an ISO also does not result in taxable income, provided that the circumstances satisfy the requirements in the Internal Revenue Code. However, the exercise of an ISO may give rise to alternative minimum tax liability for the participant. In addition, if the participant does not dispose of the common stock acquired upon exercise of an ISO during the statutory holding period, then any gain or loss upon subsequent sale of the common stock will be a long-term capital gain or loss. The statutory holding period lasts until the later of two years from the date the option is granted or one year from the date the common stock is transferred to the participant pursuant to the exercise of the option.

If the statutory holding period requirements for an ISO are satisfied, the Company may not claim any federal income tax deduction upon either the exercise of the ISO or the subsequent sale of the common stock received upon exercise. If these requirements are not satisfied (a “disqualifying disposition”), the amount of ordinary income taxable to the participant is the lesser of: (a) the fair market value of the common stock on the date of exercise minus the option price; or, (b) the amount realized on disposition