Travis Texas Eligible Directors' Stock Option Plan of Wyle Electronics

• Category: Corporations - Public - Stock Options
• State: Multi-State
• County: Travis
• 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 Travis Texas Eligible Directors' Stock Option Plan is a stock option plan offered by Kyle Electronics to its eligible directors based in Travis, Texas. This plan provides directors with the opportunity to purchase company stock at a predetermined price within a specified period. The eligibility criteria for this stock option plan may vary, but typically it is offered to directors who meet certain tenure requirements or are actively serving on the board of directors. By offering stock options, Kyle Electronics aims to align the interests of its directors with those of the company's shareholders, motivating them to make decisions that drive long-term value and growth. The Travis Texas Eligible Directors' Stock Option Plan provides directors with the flexibility to exercise their options at their discretion, allowing them to buy company stock at a favorable price, particularly if its market value increases over time. This provides a potential financial benefit for directors while also promoting loyalty and retention within the company. The plan may include different types of stock options, each with its own terms and conditions. These options may include: 1. Incentive Stock Options (SOS): SOS are often granted to directors as a tax-advantaged form of compensation. When exercised, the difference between the stock's fair market value and the exercise price is taxed as a capital gain or loss. To qualify for favorable tax treatment, SOS must be held for a specific duration before being sold. 2. Non-Qualified Stock Options (Nests): Nests are a more flexible type of stock option that can be granted to both employees and directors. When exercised, the difference between the stock's fair market value and the exercise price is taxed as ordinary income. Unlike SOS, there is no holding period requirement for Nests, providing directors with more flexibility in managing their stock options. 3. Restricted Stock Units (RSS): While not technically stock options, RSS are often considered part of executive compensation packages. RSS represents a promise to deliver company stock upon vesting, typically tied to specific performance or tenure milestones. After vesting, directors can receive the equivalent value of stock or opt to convert RSS into actual stock shares. It is important for directors participating in the Travis Texas Eligible Directors' Stock Option Plan to review and understand the specific terms and conditions associated with their stock options. These terms may include the vesting schedule, expiration period, exercise price, tax implications, and any additional restrictions or provisions set by Kyle Electronics. By offering this stock option plan, Kyle Electronics aims to attract and retain talented directors in Travis, Texas, and incentivize them to contribute to the company's success through long-term value creation.

Travis Texas Eligible Directors' Stock Option Plan is a stock option plan offered by Kyle Electronics to its eligible directors based in Travis, Texas. This plan provides directors with the opportunity to purchase company stock at a predetermined price within a specified period. The eligibility criteria for this stock option plan may vary, but typically it is offered to directors who meet certain tenure requirements or are actively serving on the board of directors. By offering stock options, Kyle Electronics aims to align the interests of its directors with those of the company's shareholders, motivating them to make decisions that drive long-term value and growth. The Travis Texas Eligible Directors' Stock Option Plan provides directors with the flexibility to exercise their options at their discretion, allowing them to buy company stock at a favorable price, particularly if its market value increases over time. This provides a potential financial benefit for directors while also promoting loyalty and retention within the company. The plan may include different types of stock options, each with its own terms and conditions. These options may include: 1. Incentive Stock Options (SOS): SOS are often granted to directors as a tax-advantaged form of compensation. When exercised, the difference between the stock's fair market value and the exercise price is taxed as a capital gain or loss. To qualify for favorable tax treatment, SOS must be held for a specific duration before being sold. 2. Non-Qualified Stock Options (Nests): Nests are a more flexible type of stock option that can be granted to both employees and directors. When exercised, the difference between the stock's fair market value and the exercise price is taxed as ordinary income. Unlike SOS, there is no holding period requirement for Nests, providing directors with more flexibility in managing their stock options. 3. Restricted Stock Units (RSS): While not technically stock options, RSS are often considered part of executive compensation packages. RSS represents a promise to deliver company stock upon vesting, typically tied to specific performance or tenure milestones. After vesting, directors can receive the equivalent value of stock or opt to convert RSS into actual stock shares. It is important for directors participating in the Travis Texas Eligible Directors' Stock Option Plan to review and understand the specific terms and conditions associated with their stock options. These terms may include the vesting schedule, expiration period, exercise price, tax implications, and any additional restrictions or provisions set by Kyle Electronics. By offering this stock option plan, Kyle Electronics aims to attract and retain talented directors in Travis, Texas, and incentivize them to contribute to the company's success through long-term value creation.