Michigan 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 Michigan Eligible Directors' Stock Option Plan offered by Kyle Electronics is a unique program designed to incentivize and reward eligible directors for their contributions to the company's growth and success. This comprehensive stock option plan is specifically tailored to comply with the regulations set forth by the state of Michigan. Under this plan, eligible directors of Kyle Electronics are granted the opportunity to purchase company stocks at a predetermined price, typically lower than the market value. These options serve as a form of compensation that aligns the interests of the directors with those of the shareholders, encouraging them to actively participate in the company's long-term prosperity. The Michigan Eligible Directors' Stock Option Plan facilitates a mutually beneficial relationship by providing directors with an incentive to maximize shareholder value through their expertise, insight, and decision-making capabilities. By rewarding directors with stock options, Kyle Electronics establishes a direct link between their performance and financial gain, fostering a culture of strategic thinking and accountability. When it comes to the different types of Michigan Eligible Directors' Stock Option Plans offered by Kyle Electronics, the company may have various variations. Some common types include: 1. Non-Qualified Stock Options: This variation provides flexibility in terms of taxation and often allows for a wider range of exercise prices. Non-qualified stock options are typically subject to ordinary income tax rates upon exercise. 2. Incentive Stock Options: These options are more tax-advantageous, as they provide potential capital gains tax treatment upon the sale of the acquired stocks. However, strict eligibility criteria must be met, including holding the options for a specified period and remaining an eligible director throughout. 3. Restricted Stock Units (RSS): In some instances, Kyle Electronics may also offer RSS as part of the Michigan Eligible Directors' Stock Option Plan. Instead of granting immediate stock options, RSS award directors with a promise of future stock units upon the satisfaction of specific vesting conditions, such as tenure or achieving predetermined performance goals. 4. Performance-Based Stock Options: This variation links the acquisition of stock options to the achievement of specific performance metrics. Directors must meet or exceed predetermined targets to exercise their options fully, ensuring their contributions directly impact the company's overall success. Overall, the Michigan Eligible Directors' Stock Option Plan of Kyle Electronics demonstrates the company's commitment to attracting and retaining top-tier leadership talent. By aligning the directors' personal financial interests with the company's objectives, this program incentivizes strategic decision-making and promotes long-term value creation.