San Diego California Eligible Directors' Stock Option Plan of Wyle Electronics

• Category: Corporations - Public - Stock Options
• State: Multi-State
• County: San Diego
• 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 San Diego California Eligible Directors' Stock Option Plan of Kyle Electronics is a comprehensive program tailored specifically for the company's eligible directors, granting them stock options as a part of their compensation package. By offering these stock options, Kyle Electronics aims to align the interests of the directors with those of the shareholders, ensuring a vested interest in the long-term success of the company. Under this plan, eligible directors of Kyle Electronics are offered the opportunity to acquire company stock at a predetermined price, known as the exercise price. These stock options typically have a specific vesting period, during which the director must wait before exercising their options. Once vested, the options can be executed, allowing the director to purchase shares of the company's stock at the exercise price. The San Diego California Eligible Directors' Stock Option Plan of Kyle Electronics may consist of various types, each designed to cater to the unique needs and objectives of the directors. Different types of stock option plans offered by Kyle Electronics may include: 1. Non-Qualified Stock Options: These options offer flexibility to the eligible directors as they are not subject to the strict regulations of Incentive Stock Options (SOS). Non-qualified stock options typically have a nominal exercise price set at the fair market value of the stock on the grant date. 2. Incentive Stock Options: This type of stock option plan is subject to rules and regulations outlined in the Internal Revenue Code. It provides potential tax advantages to eligible directors, as the gain on the exercised options may be taxed at a lower rate if certain holding period requirements are met. 3. Performance-Based Stock Options: Kyle Electronics may choose to offer performance-based stock options that provide directors with an incentive to achieve specific performance targets or goals. These options are contingent upon the company meeting predetermined performance metrics, such as revenue growth, profitability, or market share. 4. Restricted Stock Units (RSS): In addition to traditional stock options, Kyle Electronics may include RSS as part of the Eligible Directors' Stock Option Plan. RSS grant directors the right to receive shares of company stock at a predetermined future date, often tied to the completion of a vesting period or the achievement of specified performance goals. The San Diego California Eligible Directors' Stock Option Plan of Kyle Electronics serves as an attractive compensation vehicle, enabling the company to attract and retain qualified directors while promoting long-term growth and shareholder value. By aligning the interests of the directors with those of the company and its shareholders, this stock option plan fosters a sense of ownership and responsibility among the key decision-makers, ultimately benefiting the overall success and profitability of Kyle Electronics.