Guam 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 Guam Eligible Directors' Stock Option Plan is a specialized program established by Kyle Electronics, a prominent electronic components' distributor. This plan is designed to incentivize and reward eligible directors serving on Kyle Electronics' board by granting them stock options. These options provide directors with the right to purchase a predetermined number of shares of Kyle Electronics' stock at a specified price, typically referred to as the exercise price. The stock options are a valuable tool for eligible directors as they allow them to benefit from the company's future growth and success. The Guam Eligible Directors' Stock Option Plan aims to align the interests of the directors with those of the shareholders, encouraging the directors to act in the best long-term interest of the company and its shareholders. By granting stock options, Kyle Electronics provides its directors with a financial incentive to work towards enhancing the company's performance, profitability, and shareholder value. These options serve as a powerful motivator for the directors to contribute their expertise, skills, and experience to drive the company's growth and success. Under the Guam Eligible Directors' Stock Option Plan, there may be different types of stock options available to eligible directors. These options can vary depending on certain factors such as the timing of their availability, the exercise price, and the vesting period. For instance, Kyle Electronics may offer both non-qualified stock options (NO) and incentive stock options (ISO) to eligible directors. Non-qualified stock options (Nests) typically offer greater flexibility, allowing directors to exercise their options at any time after they have vested. Upon exercising their options, directors will realize the difference between the fair market value of the stock at that time and the exercise price as taxable income. On the other hand, incentive stock options (SOS) provide potential tax advantages for the director. If certain conditions are met, such as holding the stock for a specified period, the director may be eligible for favorable long-term capital gains tax treatment upon exercising their options. It is essential for eligible directors to thoroughly review the terms and conditions of the Guam Eligible Directors' Stock Option Plan to understand the specifics of their stock option grants. By participating in this plan, directors have the opportunity to align their interests with the company's, potentially reap financial rewards, and contribute to the growth and prosperity of Kyle Electronics.

The Guam Eligible Directors' Stock Option Plan is a specialized program established by Kyle Electronics, a prominent electronic components' distributor. This plan is designed to incentivize and reward eligible directors serving on Kyle Electronics' board by granting them stock options. These options provide directors with the right to purchase a predetermined number of shares of Kyle Electronics' stock at a specified price, typically referred to as the exercise price. The stock options are a valuable tool for eligible directors as they allow them to benefit from the company's future growth and success. The Guam Eligible Directors' Stock Option Plan aims to align the interests of the directors with those of the shareholders, encouraging the directors to act in the best long-term interest of the company and its shareholders. By granting stock options, Kyle Electronics provides its directors with a financial incentive to work towards enhancing the company's performance, profitability, and shareholder value. These options serve as a powerful motivator for the directors to contribute their expertise, skills, and experience to drive the company's growth and success. Under the Guam Eligible Directors' Stock Option Plan, there may be different types of stock options available to eligible directors. These options can vary depending on certain factors such as the timing of their availability, the exercise price, and the vesting period. For instance, Kyle Electronics may offer both non-qualified stock options (NO) and incentive stock options (ISO) to eligible directors. Non-qualified stock options (Nests) typically offer greater flexibility, allowing directors to exercise their options at any time after they have vested. Upon exercising their options, directors will realize the difference between the fair market value of the stock at that time and the exercise price as taxable income. On the other hand, incentive stock options (SOS) provide potential tax advantages for the director. If certain conditions are met, such as holding the stock for a specified period, the director may be eligible for favorable long-term capital gains tax treatment upon exercising their options. It is essential for eligible directors to thoroughly review the terms and conditions of the Guam Eligible Directors' Stock Option Plan to understand the specifics of their stock option grants. By participating in this plan, directors have the opportunity to align their interests with the company's, potentially reap financial rewards, and contribute to the growth and prosperity of Kyle Electronics.