Vermont 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 Vermont Eligible Directors' Stock Option Plan offered by Kyle Electronics is a comprehensive compensation program specifically designed for eligible directors of the company. This plan provides various benefits and incentives to directors aimed at aligning their interests with the long-term success of Kyle Electronics. The plan offers directors the opportunity to purchase company stock at a predetermined price, known as the exercise price. Stock options granted under this plan are generally subject to a vesting schedule, which outlines the timeframe over which directors can exercise their options. This encourages directors to remain invested in the company's growth and performance. One type of Vermont Eligible Directors' Stock Option Plan offered by Kyle Electronics is the Non-Qualified Stock Option (NO) plan. Under this plan, eligible directors are granted stock options that do not qualify for special tax treatment. Although these options may be subject to ordinary income tax upon exercise, they offer greater flexibility in terms of vesting and exercise price. Another type of plan offered is the Incentive Stock Option (ISO) plan. SOS provide eligible directors with potential tax advantages, as gains from exercising these options may qualify for favorable capital gains tax rates. However, SOS have strict statutory requirements, including a limit on the total value of options that can be granted in a given year, and specific holding periods. Kyle Electronics' Vermont Eligible Directors' Stock Option Plan is designed to attract and retain talented individuals who can contribute to the company's growth and success. By offering stock options, Kyle Electronics aims to incentivize directors to make decisions that are in the best interest of shareholders, as they directly benefit from the appreciation of the company's stock. This plan aligns the interests of directors with the overall financial performance of Kyle Electronics, fostering a long-term commitment to shareholder value creation. Keywords: Vermont Eligible Directors' Stock Option Plan, Kyle Electronics, compensation program, stock options, exercise price, vesting schedule, Non-Qualified Stock Option (NO), Incentive Stock Option (ISO), tax advantages, capital gains tax rates, retention, talent, shareholder value.