Ohio 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 Ohio Eligible Directors' Stock Option Plan of Kyle Electronics is a unique compensation program designed specifically for directors serving on the board of Kyle Electronics in Ohio. This stock option plan aims to incentivize and reward eligible directors by granting them the opportunity to purchase company stock at a predetermined price. Under this plan, eligible directors are given the right to acquire a specified number of company shares over a certain period. The option price is typically set at the fair market value of the stock on the date of grant, ensuring a fair and equitable distribution of benefits. One type of option available under the Ohio Eligible Directors' Stock Option Plan is the non-qualified stock option (NO). Non-qualified stock options provide directors with more flexibility in terms of exercising and selling their acquired shares. The income generated from exercising SOS is typically subject to regular income tax rates. Another type of option that may be part of the plan is the incentive stock option (ISO). Incentive stock options have certain tax advantages over SOS as they qualify for favorable tax treatment under the Internal Revenue Code. SOS provide directors with the potential to receive capital gains treatment upon selling their shares if specific holding period requirements are met. Directors participating in the Ohio Eligible Directors' Stock Option Plan may have different vesting schedules and exercise periods depending on the terms specified in their individual agreements. Vesting schedules often require directors to stay on the board for a specific period before they can exercise their options. The exercise period represents the timeframe in which directors can purchase the granted shares. The Ohio Eligible Directors' Stock Option Plan plays a pivotal role in attracting and retaining skilled board members for Kyle Electronics. By offering directors the opportunity to become shareholders and benefit from the company's growth, the incentive plan aligns the interests of directors with those of the shareholders. This, in turn, fosters a stronger sense of corporate governance and accountability among the board members. Overall, the Ohio Eligible Directors' Stock Option Plan of Kyle Electronics serves as a powerful tool to attract and motivate talented directors who can contribute to the long-term success of the company. Through the issuance of stock options, Kyle Electronics ensures that its board members have a vested interest in the company's growth and financial results.