Illinois 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 Illinois Eligible Directors' Stock Option Plan of Kyle Electronics is a comprehensive equity compensation program designed specifically for eligible directors working for Kyle Electronics in the state of Illinois. This plan provides an opportunity for directors to receive stock options as a means of incentivizing and rewarding their contributions to the company's growth and success. Under this plan, eligible directors of Kyle Electronics are granted the right to purchase a specified number of shares of the company's stock at a predetermined price, known as the exercise price. These stock options typically have a specific vesting period during which the director must remain in their position to fully exercise their options. One of the main advantages of this stock option plan is that it aligns the interests of directors with those of the company's shareholders. By providing directors with the opportunity to own a stake in Kyle Electronics, they are motivated to make decisions that will drive the company's performance and increase shareholder value. Additionally, the Illinois Eligible Directors' Stock Option Plan may have different types or variations, depending on the specific terms and conditions set by Kyle Electronics. These variants could include: 1. Non-Qualified Stock Options: These stock options are granted to eligible directors and do not meet the requirements for special tax treatment. Upon exercise, the director will be subject to ordinary income tax on the difference between the exercise price and the fair market value of the stock. 2. Incentive Stock Options: These stock options meet certain requirements outlined in the Internal Revenue Code, providing potentially favorable tax treatment to eligible directors. If the director meets the required holding periods, they may be eligible for long-term capital gains tax rates upon the sale of the stock acquired through the options. 3. Performance-Based Stock Options: Kyle Electronics may establish a performance-based component to the stock option plan, whereby the directors must achieve specific performance targets or milestones in order to exercise their options fully. 4. Restricted Stock Units (RSS): In addition to traditional stock options, Kyle Electronics may offer RSS to eligible directors. RSS represents a promise to deliver a specified number of shares at a predetermined future date or upon the satisfaction of certain conditions. These units often have a vesting schedule similar to stock options. In conclusion, the Illinois Eligible Directors' Stock Option Plan of Kyle Electronics is a robust compensation program designed to reward eligible directors with stock options, providing them with the opportunity to participate in the company's success. The plan may include different types of options, such as non-qualified, incentive, or performance-based, and may also incorporate restricted stock units as part of the director's overall compensation package.

The Illinois Eligible Directors' Stock Option Plan of Kyle Electronics is a comprehensive equity compensation program designed specifically for eligible directors working for Kyle Electronics in the state of Illinois. This plan provides an opportunity for directors to receive stock options as a means of incentivizing and rewarding their contributions to the company's growth and success. Under this plan, eligible directors of Kyle Electronics are granted the right to purchase a specified number of shares of the company's stock at a predetermined price, known as the exercise price. These stock options typically have a specific vesting period during which the director must remain in their position to fully exercise their options. One of the main advantages of this stock option plan is that it aligns the interests of directors with those of the company's shareholders. By providing directors with the opportunity to own a stake in Kyle Electronics, they are motivated to make decisions that will drive the company's performance and increase shareholder value. Additionally, the Illinois Eligible Directors' Stock Option Plan may have different types or variations, depending on the specific terms and conditions set by Kyle Electronics. These variants could include: 1. Non-Qualified Stock Options: These stock options are granted to eligible directors and do not meet the requirements for special tax treatment. Upon exercise, the director will be subject to ordinary income tax on the difference between the exercise price and the fair market value of the stock. 2. Incentive Stock Options: These stock options meet certain requirements outlined in the Internal Revenue Code, providing potentially favorable tax treatment to eligible directors. If the director meets the required holding periods, they may be eligible for long-term capital gains tax rates upon the sale of the stock acquired through the options. 3. Performance-Based Stock Options: Kyle Electronics may establish a performance-based component to the stock option plan, whereby the directors must achieve specific performance targets or milestones in order to exercise their options fully. 4. Restricted Stock Units (RSS): In addition to traditional stock options, Kyle Electronics may offer RSS to eligible directors. RSS represents a promise to deliver a specified number of shares at a predetermined future date or upon the satisfaction of certain conditions. These units often have a vesting schedule similar to stock options. In conclusion, the Illinois Eligible Directors' Stock Option Plan of Kyle Electronics is a robust compensation program designed to reward eligible directors with stock options, providing them with the opportunity to participate in the company's success. The plan may include different types of options, such as non-qualified, incentive, or performance-based, and may also incorporate restricted stock units as part of the director's overall compensation package.