Kansas 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

Kansas Eligible Directors' Stock Option Plan of Kyle Electronics The Kansas Eligible Directors' Stock Option Plan is a comprehensive compensation program offered by Kyle Electronics to its eligible directors. This plan aims to provide directors with an opportunity to acquire company stock at a predetermined price, promoting their interests as they contribute to the growth and success of Kyle Electronics. The plan operates in compliance with the state of Kansas regulations and ensures that eligible directors are granted stock options that align with their roles and responsibilities. By offering stock options, Kyle Electronics aims to incentivize and retain talented individuals who can contribute to the long-term development of the company. The Kansas Eligible Directors' Stock Option Plan includes various types of stock options, each with its own unique features and benefits. Some different types of options that may be included in the plan are: 1. Non-Qualified Stock Options (Nests): These options allow eligible directors to purchase company stock at a specified price, known as the exercise price, which is typically lower than the market value at the time of grant. Nests provide flexibility in terms of taxation, as they are subject to ordinary income tax rates upon exercise. 2. Incentive Stock Options (SOS): These options are designed to provide additional tax advantages to eligible directors. SOS can only be granted to directors who meet specified criteria outlined by the Internal Revenue Service (IRS). If all requirements are met, SOS can be exercised at a later date with potentially favorable tax treatment upon the sale of the acquired stock. 3. Restricted Stock Units (RSS): RSS represent a promise to deliver company stock to eligible directors at a future date, subject to certain vesting conditions. Unlike stock options, RSS do not grant an immediate right to purchase stock, but instead entitle the director to receive shares based on the predetermined vesting schedule. The Kansas Eligible Directors' Stock Option Plan also outlines eligibility criteria, such as the minimum tenure required by directors before they become eligible for stock options. It further specifies the maximum number of options that can be granted per director, as well as any limitations or restrictions that may apply. In summary, the Kansas Eligible Directors' Stock Option Plan of Kyle Electronics is a comprehensive compensation program that offers various types of stock options to eligible directors. These options provide a means for directors to acquire company stock, aligning their interests with the success of Kyle Electronics and promoting corporate governance.