Montana 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 Montana Eligible Directors' Stock Option Plan is a comprehensive program implemented by Kyle Electronics to reward and incentivize its eligible directors. This plan allows directors to purchase company stock at a predetermined price within a specified timeframe. Under the Montana Eligible Directors' Stock Option Plan, Kyle Electronics grants stock options to eligible directors as a means of aligning their interests with those of the company's shareholders. These options provide directors with the opportunity to acquire shares of Kyle Electronics stock at a set exercise price, usually determined based on the market price at the time of grant. The plan is designed to provide a long-term incentive for eligible directors to contribute to the growth and success of Kyle Electronics, as their vested options gain value over time. This aligns the directors' interests with those of shareholders, as they directly benefit from the company's performance. There may be different types of Montana Eligible Directors' Stock Option Plans offered by Kyle Electronics. These variations could include: 1. Non-Qualified Stock Options (SOS): These stock options are typically available to all eligible directors and provide the flexibility to customize the terms of the option grants. SOS are subject to taxation upon exercise at the ordinary income tax rate. 2. Incentive Stock Options (SOS): Offered exclusively to eligible directors, SOS provide potential tax advantages. They are generally subject to fewer tax implications, as long as certain holding requirements are met. SOS often have stricter eligibility criteria and limits on the number of options that can be granted. 3. Performance-Based Stock Options: These options are typically tied to the achievement of specific performance goals or financial targets set by Kyle Electronics. Directors can earn additional stock options based on the company's performance, motivating them to drive growth and enhance shareholder value. It is important for eligible directors to carefully review the terms and conditions of the Montana Eligible Directors' Stock Option Plan, as each variation may have unique features and implications. Directors should assess their investment objectives, risk tolerance, and individual tax considerations before exercising their stock options. Overall, the Montana Eligible Directors' Stock Option Plan provides a powerful tool for Kyle Electronics to attract and retain talented directors. By offering stock ownership opportunities, this plan aligns the interests of directors with the company's success, ultimately driving long-term shareholder value.