Alaska 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 Alaska Eligible Directors' Stock Option Plan of Kyle Electronics is a comprehensive incentive program designed specifically for directors serving within the company. This plan offers eligible directors the opportunity to purchase company stock at a predetermined price for a specified time period, providing them with the potential to reap financial benefits based on the company's performance and stock value. Under this plan, eligible directors of Kyle Electronics have the ability to acquire stock options, granting them the right to purchase a set number of company shares at a predetermined exercise price. These options typically have a vesting period, incentivizing directors to remain committed to the company over the long term and aligning their interests with those of the stockholders. The Alaska Eligible Directors' Stock Option Plan aims to attract and retain highly qualified directors by offering various types of stock options. These may include: 1. Non-Qualified Stock Options (Nests): These options allow directors to purchase shares at a specified price, typically the market value on the date of grant. Nests can be exercised over a set period, usually within ten years from the grant date. 2. Incentive Stock Options (SOS): SOS are another type of stock option available to eligible directors. These options offer potential tax advantages, as any profit made upon exercise and sale of the stock may be subject to long-term capital gains tax rates instead of ordinary income tax rates. SOS also have strict requirements, such as a maximum exercise price and specific holding periods, which must be met to retain their favorable tax treatment. 3. Restricted Stock Units (RSS): In addition to stock options, the plan may also include RSS, which are units representing the right to receive company stock at a future date. RSS often have vesting conditions, such as continued service or achievement of performance targets, and are typically settled in company shares rather than cash. 4. Performance Stock Units (Plus): Plus are another potential component of the Alaska Eligible Directors' Stock Option Plan. These units tie the ultimate grant of company stock to certain predetermined performance criteria, such as financial targets or market share goals. Directors may only receive the shares if these objectives are achieved, further aligning their interests with the company's success. Overall, the Alaska Eligible Directors' Stock Option Plan of Kyle Electronics provides eligible directors with a powerful incentive to contribute to the company's growth and long-term success. It enables them to share in the potential financial rewards associated with increasing the value of the organization's stock while aligning their interests with those of the stockholders.