Connecticut 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 Connecticut Eligible Directors' Stock Option Plan of Kyle Electronics: Detailed Description and Types The Connecticut Eligible Directors' Stock Option Plan is a comprehensive compensation program specifically designed for directors serving on the board of Kyle Electronics, a prominent company operating in Connecticut. This plan aims to provide eligible directors with stock options as part of their overall compensation and incentivize participation in the company's long-term growth and success. Under this plan, eligible directors are typically granted the right to purchase a specific number of shares of Kyle Electronics' common stock at a predetermined price, known as the exercise price. The exercise price is often set at the fair market value of the company's stock on the date the stock options are granted. The stock options granted under the Connecticut Eligible Directors' Stock Option Plan usually have a vesting period, which refers to the duration an eligible director must wait before being able to exercise their stock options. This encourages long-term commitment and engagement from the directors, aligning their interests with those of the company and its shareholders. Upon the completion of the vesting period, eligible directors can exercise their stock options by purchasing the designated number of shares at the previously established exercise price. The obtained shares can then be held or sold, depending on the director's preference and market conditions. Different types of stock option plans may exist within the Connecticut Eligible Directors' Stock Option Plan of Kyle Electronics. These variations may include: 1. Non-Qualified Stock Options (Nests): Non-Qualified Stock Options are a type of stock option that does not qualify for preferential tax treatment. The spread between the exercise price and the stock's fair market value will generally be subject to ordinary income tax upon exercise. 2. Incentive Stock Options (SOS): Incentive Stock Options are stock options that meet specific requirements outlined by the Internal Revenue Code. If the requirements are met, the taxable event is typically deferred until the shares acquired through exercising the options are sold. This potentially allows for more favorable tax treatment for eligible directors. 3. Restricted Stock Units (RSS): While not technically considered stock options, restricted stock units may also be included in the Connecticut Eligible Directors' Stock Option Plan. RSS are typically awarded as a promise to deliver shares of stock at a future date. The vesting schedule and other terms are established at the time of grant. By implementing the Connecticut Eligible Directors' Stock Option Plan, Kyle Electronics aims to attract and retain highly skilled directors while aligning their interests with the long-term success of the company. This program serves as a valuable component of the company's overall compensation strategy and reinforces a collaborative and mutually beneficial relationship with its directors.

Connecticut Eligible Directors' Stock Option Plan of Kyle Electronics: Detailed Description and Types The Connecticut Eligible Directors' Stock Option Plan is a comprehensive compensation program specifically designed for directors serving on the board of Kyle Electronics, a prominent company operating in Connecticut. This plan aims to provide eligible directors with stock options as part of their overall compensation and incentivize participation in the company's long-term growth and success. Under this plan, eligible directors are typically granted the right to purchase a specific number of shares of Kyle Electronics' common stock at a predetermined price, known as the exercise price. The exercise price is often set at the fair market value of the company's stock on the date the stock options are granted. The stock options granted under the Connecticut Eligible Directors' Stock Option Plan usually have a vesting period, which refers to the duration an eligible director must wait before being able to exercise their stock options. This encourages long-term commitment and engagement from the directors, aligning their interests with those of the company and its shareholders. Upon the completion of the vesting period, eligible directors can exercise their stock options by purchasing the designated number of shares at the previously established exercise price. The obtained shares can then be held or sold, depending on the director's preference and market conditions. Different types of stock option plans may exist within the Connecticut Eligible Directors' Stock Option Plan of Kyle Electronics. These variations may include: 1. Non-Qualified Stock Options (Nests): Non-Qualified Stock Options are a type of stock option that does not qualify for preferential tax treatment. The spread between the exercise price and the stock's fair market value will generally be subject to ordinary income tax upon exercise. 2. Incentive Stock Options (SOS): Incentive Stock Options are stock options that meet specific requirements outlined by the Internal Revenue Code. If the requirements are met, the taxable event is typically deferred until the shares acquired through exercising the options are sold. This potentially allows for more favorable tax treatment for eligible directors. 3. Restricted Stock Units (RSS): While not technically considered stock options, restricted stock units may also be included in the Connecticut Eligible Directors' Stock Option Plan. RSS are typically awarded as a promise to deliver shares of stock at a future date. The vesting schedule and other terms are established at the time of grant. By implementing the Connecticut Eligible Directors' Stock Option Plan, Kyle Electronics aims to attract and retain highly skilled directors while aligning their interests with the long-term success of the company. This program serves as a valuable component of the company's overall compensation strategy and reinforces a collaborative and mutually beneficial relationship with its directors.