Orange California Eligible Directors' Stock Option Plan of Wyle Electronics

• Category: Corporations - Public - Stock Options
• State: Multi-State
• County: Orange
• 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

Orange California Eligible Directors' Stock Option Plan of Kyle Electronics is a comprehensive program aimed at providing stock options to the eligible directors of Kyle Electronics, a company based in Orange, California. This plan enables eligible directors to purchase company stock at a predetermined price within a specified period, offering them a potential financial advantage. Under this plan, eligible directors are granted stock options that give them the right to buy a specific number of company shares at a predetermined price, known as the exercise price. These options typically vest over a certain period, meaning they become available for the director to exercise and purchase company stock gradually. The exercise price is usually set at the fair market value of the stock on the date of the option grant. The Orange California Eligible Directors' Stock Option Plan may include different types of stock options, each with its own terms and conditions. Two common types are: 1. Non-Qualified Stock Options (Nests): These stock options do not qualify for special tax treatment. Nests offer flexibility in terms of exercising and may allow directors to exercise options at any time during the option's lifespan. However, the difference between the exercise price and the market price at the time of exercise is subject to ordinary income tax. 2. Incentive Stock Options (SOS): These stock options offer potential tax advantages for eligible directors. SOS must meet specific requirements outlined by the Internal Revenue Code. If held for a specified period, the difference between the exercise price and the market price at the time of exercise may be subject to capital gains tax instead of ordinary income tax. The Orange California Eligible Directors' Stock Option Plan provides a variety of benefits for eligible directors. By granting stock options, Kyle Electronics aims to align the interests of directors with the company's long-term success and increase their motivation to drive shareholder value. Directors may participate in the plan as a form of compensation, allowing them to potentially benefit from any appreciation in the company's stock price. It is important to note that the specifics of the Orange California Eligible Directors' Stock Option Plan may vary, and interested parties should refer to the official plan documents and consult with tax and legal professionals for accurate and up-to-date information regarding its terms, conditions, and potential tax implications.