Mississippi 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 Mississippi Eligible Directors' Stock Option Plan of Kyle Electronics is a comprehensive compensation plan designed exclusively for directors of the company who meet the eligibility criteria specified by the state of Mississippi. This plan allows eligible directors to receive additional remuneration in the form of stock options, providing them the opportunity to purchase company stock at a predetermined price within a specified time frame. The plan aims to align the interests of the directors with those of shareholders, providing them with a stake in the company's success and encouraging their active involvement in the company's operations. By granting stock options, the plan incentivizes directors to contribute their expertise, experience, and knowledge toward enhancing Kyle Electronics' performance and creating long-term shareholder value. There are several types of Mississippi Eligible Directors' Stock Option Plans available to Kyle Electronics directors, tailored to meet their specific needs and objectives. These include: 1. Nonqualified Stock Options (Nests): Nests offer directors the opportunity to purchase company stock at a predetermined price, known as the grant price, within a specific time period. The grant price is typically set at the fair market value of the stock on the date of grant. Directors who choose to exercise their options can benefit from any price appreciation by selling the stock at a higher price in the open market. 2. Incentive Stock Options (SOS): SOS provide directors with favorable tax treatment compared to Nests, as they may be eligible for a lower capital gains tax rate on the stock's appreciation. However, SOS come with certain restrictions, including a $100,000 annual limit on the value of stock options that can be exercised in any given year. 3. Restricted Stock Units (RSS): RSS are another form of equity compensation offered to directors, where they receive a promise to receive a specific number of shares of company stock at a future date. These units usually vest over a predetermined period, during which directors must satisfy specific performance or time-based criteria to unlock the shares. Once vested, directors may opt to receive the shares or their cash equivalent. 4. Stock Appreciation Rights (SARS): SARS entitle directors to receive a cash payment or an equivalent number of shares based on the increase in the company's stock price over a specified period. Unlike stock options, SARS do not require directors to purchase the stock at a predetermined price; instead, they can profit from the appreciation directly. These various types of stock options aim to provide flexibility to Kyle Electronics directors, allowing them to choose the compensation structure that best aligns with their individual financial goals and tax planning needs. It is important for directors to carefully consider their options and the associated terms and conditions before making decisions regarding exercise, sale, or retention of stock or its equivalent.

The Mississippi Eligible Directors' Stock Option Plan of Kyle Electronics is a comprehensive compensation plan designed exclusively for directors of the company who meet the eligibility criteria specified by the state of Mississippi. This plan allows eligible directors to receive additional remuneration in the form of stock options, providing them the opportunity to purchase company stock at a predetermined price within a specified time frame. The plan aims to align the interests of the directors with those of shareholders, providing them with a stake in the company's success and encouraging their active involvement in the company's operations. By granting stock options, the plan incentivizes directors to contribute their expertise, experience, and knowledge toward enhancing Kyle Electronics' performance and creating long-term shareholder value. There are several types of Mississippi Eligible Directors' Stock Option Plans available to Kyle Electronics directors, tailored to meet their specific needs and objectives. These include: 1. Nonqualified Stock Options (Nests): Nests offer directors the opportunity to purchase company stock at a predetermined price, known as the grant price, within a specific time period. The grant price is typically set at the fair market value of the stock on the date of grant. Directors who choose to exercise their options can benefit from any price appreciation by selling the stock at a higher price in the open market. 2. Incentive Stock Options (SOS): SOS provide directors with favorable tax treatment compared to Nests, as they may be eligible for a lower capital gains tax rate on the stock's appreciation. However, SOS come with certain restrictions, including a $100,000 annual limit on the value of stock options that can be exercised in any given year. 3. Restricted Stock Units (RSS): RSS are another form of equity compensation offered to directors, where they receive a promise to receive a specific number of shares of company stock at a future date. These units usually vest over a predetermined period, during which directors must satisfy specific performance or time-based criteria to unlock the shares. Once vested, directors may opt to receive the shares or their cash equivalent. 4. Stock Appreciation Rights (SARS): SARS entitle directors to receive a cash payment or an equivalent number of shares based on the increase in the company's stock price over a specified period. Unlike stock options, SARS do not require directors to purchase the stock at a predetermined price; instead, they can profit from the appreciation directly. These various types of stock options aim to provide flexibility to Kyle Electronics directors, allowing them to choose the compensation structure that best aligns with their individual financial goals and tax planning needs. It is important for directors to carefully consider their options and the associated terms and conditions before making decisions regarding exercise, sale, or retention of stock or its equivalent.