Iowa 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 Iowa Eligible Directors' Stock Option Plan of Kyle Electronics offers eligible directors of the company the opportunity to participate in a stock option program. This plan allows directors to receive stock options as an additional form of compensation. The purpose of this plan is to align the interests of directors with those of shareholders by incentivizing directors to contribute to the long-term success of the company. By granting stock options, directors have the opportunity to benefit directly from the company's performance and share in its growth. Under this plan, eligible directors can receive stock options at a predetermined price, known as the exercise price. These options typically have a vesting period, during which the director must fulfill certain requirements, such as serving a specific term or achieving certain performance goals, to become eligible to exercise the options and purchase company stock. The Iowa Eligible Directors' Stock Option Plan of Kyle Electronics may have different types or variations, depending on the specific terms and conditions approved by the company's Board of Directors. Some possible variations may include: 1. Non-Qualified Stock Options: These options do not meet the requirements of Section 422 of the Internal Revenue Code and may have different tax implications for the director upon exercise or sale of the stock. 2. Incentive Stock Options: These options meet the requirements of Section 422 of the Internal Revenue Code and may have certain tax advantages for the director, such as potentially qualifying for favorable long-term capital gains tax rates upon the sale of the stock. 3. Performance-Based Stock Options: In this variation, the exercise of options is tied to the achievement of specific performance targets set by the company. This type of option may provide additional motivation for directors to drive company performance and achieve predetermined goals. 4. Restricted Stock Units (RSS): Instead of options, the plan may offer RSS, which represent a promise to deliver company stock upon meeting certain conditions, such as continued service or achieving specific milestones. RSS can provide directors with a direct stake in the company's success without the need to purchase stock through exercising options. It is important for eligible directors to thoroughly review the specific terms and conditions of the Iowa Eligible Directors' Stock Option Plan of Kyle Electronics to determine their rights and obligations under the plan. Professional financial advice may also be sought to fully understand the tax implications and potential benefits of participating in the plan.