District of Columbia 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 District of Columbia Eligible Directors' Stock Option Plan is a program implemented by Kyle Electronics to provide eligible directors with an opportunity to purchase company stock at a predetermined price within a specified timeframe. This plan aims to align the interests and incentives of directors with those of the company's shareholders, promoting long-term value creation and shareholder returns. Under this plan, eligible directors in the District of Columbia have the opportunity to receive stock options as part of their compensation package. These stock options allow directors to purchase a specific number of company shares at a predetermined price, known as the exercise price, within a defined period of time. The exercise price is typically set based on the fair market value of the company's stock at the time the options are granted. The District of Columbia Eligible Directors' Stock Option Plan may have different variations or types based on the terms and conditions set by Kyle Electronics. These variations may include: 1. Standard Stock Option Plan: This is the most common type of stock option plan wherein eligible directors are granted stock options that vest over a specified period. Once vested, directors can exercise their options and purchase company stock at the predetermined exercise price. 2. Incentive Stock Option Plan: This type of plan is designed to provide additional tax benefits to eligible directors. If certain criteria are met, such as holding the stock for a minimum period, the gains from exercising the options may qualify for preferential tax treatment. 3. Non-Qualified Stock Option Plan: This plan does not meet the specific requirements of the Internal Revenue Code for incentive stock options. Therefore, the gains from exercising non-qualified stock options are typically subject to ordinary income tax rates. 4. Performance-Based Stock Option Plan: This plan links the grant and exercise of stock options to the achievement of predetermined performance targets. Directors may earn additional stock options or have restrictions lifted based on the company's performance metrics, ensuring alignment with corporate objectives. 5. Restricted Stock Option Plan: This variation involves granting restricted stock units (RSS) instead of traditional stock options. RSS represents a promised future delivery of company shares, subject to vesting conditions. Once the RSS vest, directors receive actual company stock. The District of Columbia Eligible Directors' Stock Option Plan of Kyle Electronics provides directors with an opportunity to participate in the company's success, aligning their interests with those of shareholders. It incentivizes long-term commitment, promotes performance-based rewards, and aligns directors' interests with the creation of shareholder value.