Maine 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 Maine Eligible Directors' Stock Option Plan is a comprehensive and lucrative compensation program designed specifically for the directors of Kyle Electronics, a leading electronics manufacturer and distributor. This unique plan offers eligible directors the opportunity to acquire stock options, which can result in substantial financial gains and align their interests with those of the company. Under the Maine Eligible Directors' Stock Option Plan, directors are granted the right to purchase a specified number of company shares at a predetermined price, known as the exercise price, for a defined period. This price often reflects the fair market value of the company's stock at the time of grant. The primary objective of this plan is to incentivize and reward directors by providing an ownership stake in the business, thereby fostering their dedication to the long-term success of Kyle Electronics. There are different types of stock options available under this plan: 1. Non-Qualified Stock Options (Nests): These options are the most common type granted to directors. Nests offer flexibility in terms of exercise price and timing. Directors can elect to exercise the options at any time after they vest, regardless of the stock price at that time. When exercised, the difference between the exercise price and the current market price is subject to taxation as ordinary income. 2. Incentive Stock Options (SOS): SOS have special tax advantages that can be appealing for directors. These options may only be granted to directors who meet certain eligibility criteria, including serving on the board of directors for a specific period. SOS offer potential tax benefits, as the difference between the exercise price and the sale price may be treated as long-term capital gains rather than ordinary income, resulting in lower tax rates. 3. Restricted Stock Units (RSS): While technically not considered stock options, RSS are a popular variation of equity compensation. Directors receive a grant of hypothetical shares that will be converted into actual shares in the future once certain conditions are met, usually vesting criteria or the passage of time. RSS provides an opportunity for directors to accumulate ownership in the company over time, aligning their interests with shareholders. It is important to note that the specific terms and conditions of the Maine Eligible Directors' Stock Option Plan may vary depending on the individual director's agreement and the company's discretion. These variations reflect factors such as the director's tenure, performance, and contributions to the success of Kyle Electronics. Overall, the Maine Eligible Directors' Stock Option Plan serves as a powerful incentive and compensation tool, attracting and retaining talented directors who can contribute to the growth and prosperity of Kyle Electronics, while also enhancing shareholder value.

Maine Eligible Directors' Stock Option Plan is a comprehensive and lucrative compensation program designed specifically for the directors of Kyle Electronics, a leading electronics manufacturer and distributor. This unique plan offers eligible directors the opportunity to acquire stock options, which can result in substantial financial gains and align their interests with those of the company. Under the Maine Eligible Directors' Stock Option Plan, directors are granted the right to purchase a specified number of company shares at a predetermined price, known as the exercise price, for a defined period. This price often reflects the fair market value of the company's stock at the time of grant. The primary objective of this plan is to incentivize and reward directors by providing an ownership stake in the business, thereby fostering their dedication to the long-term success of Kyle Electronics. There are different types of stock options available under this plan: 1. Non-Qualified Stock Options (Nests): These options are the most common type granted to directors. Nests offer flexibility in terms of exercise price and timing. Directors can elect to exercise the options at any time after they vest, regardless of the stock price at that time. When exercised, the difference between the exercise price and the current market price is subject to taxation as ordinary income. 2. Incentive Stock Options (SOS): SOS have special tax advantages that can be appealing for directors. These options may only be granted to directors who meet certain eligibility criteria, including serving on the board of directors for a specific period. SOS offer potential tax benefits, as the difference between the exercise price and the sale price may be treated as long-term capital gains rather than ordinary income, resulting in lower tax rates. 3. Restricted Stock Units (RSS): While technically not considered stock options, RSS are a popular variation of equity compensation. Directors receive a grant of hypothetical shares that will be converted into actual shares in the future once certain conditions are met, usually vesting criteria or the passage of time. RSS provides an opportunity for directors to accumulate ownership in the company over time, aligning their interests with shareholders. It is important to note that the specific terms and conditions of the Maine Eligible Directors' Stock Option Plan may vary depending on the individual director's agreement and the company's discretion. These variations reflect factors such as the director's tenure, performance, and contributions to the success of Kyle Electronics. Overall, the Maine Eligible Directors' Stock Option Plan serves as a powerful incentive and compensation tool, attracting and retaining talented directors who can contribute to the growth and prosperity of Kyle Electronics, while also enhancing shareholder value.