California Eligible Directors' Stock Option Plan of Wyle Electronics

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-CC-18-362C
• Format: Word; Rich Text

Description

18-362C 18-362C . . . Eligible Directors' Stock Option Plan under which (a) each outside director who was in office on October 1, 1996 was granted, subject to stockholder approval of Plan, option to purchase 4,000 shares of stock and each outside director who first takes office after October 1, 1996 will receive a one-time initial option to purchase 10,000 shares of stock, and (b) each outside director in office on October 1, 1996 will be granted an option on April 1 of each year commencing in 1997 to purchase 4,000 shares of stock provided he or she is in office on date of grant, and each outside director who takes office after October 1, 1996 will be granted an option on April 1 of each year to purchase 6,000 shares of stock provided he or she is in office on date of grant. Exercise price of all options is fair market value on date of grant. All options are exercisable six months after date of grant The California Eligible Directors' Stock Option Plan of Kyle Electronics is a comprehensive compensation program designed specifically for directors of the company who meet the eligibility criteria in California. This plan serves as a valuable tool to attract and retain highly qualified directors and align their interests with those of the company and its shareholders. This detailed description will provide an in-depth overview of the plan's key features, benefits, and potentially different types of stock option plans that may exist. The California Eligible Directors' Stock Option Plan of Kyle Electronics grants eligible directors the opportunity to purchase company stock at a predetermined price, known as the exercise price or strike price. This purchase option is usually offered as an incentive to encourage directors to contribute their expertise towards the long-term success of the company. By holding stock options, directors have the potential to benefit from the appreciation in the company's stock value over time. One type of stock option plan under this program may be the Non-Qualified Stock Option (NO) plan. Non-Qualified Stock Options allow eligible directors to purchase company stock at a predetermined price, which is often the fair market value of the stock on the grant date. These options can be exercised at any time within a specified period, typically up to ten years from the grant date. Upon exercise, the director pays the exercise price and acquires the shares, which can then be held or sold depending on their preference. Another type of stock option plan could be the Incentive Stock Option (ISO) plan. Incentive Stock Options offer eligible directors certain tax advantages compared to Non-Qualified Stock Options. To qualify for these tax advantages, SOS must adhere to specific requirements set forth by the Internal Revenue Service (IRS). For instance, the exercise price of SOS must be equal to or higher than the fair market value of the stock on the grant date. Additionally, SOS generally have a longer exercise period, typically up to ten years. The California Eligible Directors' Stock Option Plan aims to provide directors with the flexibility to choose the timing of exercising their options based on their individual financial goals and market conditions. It offers a valuable opportunity to participate in the company's growth and success, serving as a long-term incentive mechanism. By linking directors' compensation to the company's stock performance, it encourages them to make decisions that enhance shareholder value and aligns their interests with those of the shareholders. It is important to note that the specific details and provisions of the California Eligible Directors' Stock Option Plan may vary depending on the version adopted by Kyle Electronics and any amendments made over time. Directors who qualify for participation in this plan should refer to the official plan documents and consult with legal and tax professionals to fully understand the specifics and implications of their stock option grants.

The California Eligible Directors' Stock Option Plan of Kyle Electronics is a comprehensive compensation program designed specifically for directors of the company who meet the eligibility criteria in California. This plan serves as a valuable tool to attract and retain highly qualified directors and align their interests with those of the company and its shareholders. This detailed description will provide an in-depth overview of the plan's key features, benefits, and potentially different types of stock option plans that may exist. The California Eligible Directors' Stock Option Plan of Kyle Electronics grants eligible directors the opportunity to purchase company stock at a predetermined price, known as the exercise price or strike price. This purchase option is usually offered as an incentive to encourage directors to contribute their expertise towards the long-term success of the company. By holding stock options, directors have the potential to benefit from the appreciation in the company's stock value over time. One type of stock option plan under this program may be the Non-Qualified Stock Option (NO) plan. Non-Qualified Stock Options allow eligible directors to purchase company stock at a predetermined price, which is often the fair market value of the stock on the grant date. These options can be exercised at any time within a specified period, typically up to ten years from the grant date. Upon exercise, the director pays the exercise price and acquires the shares, which can then be held or sold depending on their preference. Another type of stock option plan could be the Incentive Stock Option (ISO) plan. Incentive Stock Options offer eligible directors certain tax advantages compared to Non-Qualified Stock Options. To qualify for these tax advantages, SOS must adhere to specific requirements set forth by the Internal Revenue Service (IRS). For instance, the exercise price of SOS must be equal to or higher than the fair market value of the stock on the grant date. Additionally, SOS generally have a longer exercise period, typically up to ten years. The California Eligible Directors' Stock Option Plan aims to provide directors with the flexibility to choose the timing of exercising their options based on their individual financial goals and market conditions. It offers a valuable opportunity to participate in the company's growth and success, serving as a long-term incentive mechanism. By linking directors' compensation to the company's stock performance, it encourages them to make decisions that enhance shareholder value and aligns their interests with those of the shareholders. It is important to note that the specific details and provisions of the California Eligible Directors' Stock Option Plan may vary depending on the version adopted by Kyle Electronics and any amendments made over time. Directors who qualify for participation in this plan should refer to the official plan documents and consult with legal and tax professionals to fully understand the specifics and implications of their stock option grants.