New York 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 New York Eligible Directors' Stock Option Plan is a compensation program specifically tailored for directors serving on the board of Kyle Electronics, a prominent company in New York. This comprehensive plan aims to motivate and reward eligible directors by granting them stock options, allowing them to purchase company shares at a predetermined price in the future. The plan comprises different types of option grants, each serving a specific purpose. Some common types of New York Eligible Directors' Stock Option Plan options may include: 1. Non-Qualified Stock Options (Nests): These options grant directors the right to purchase company shares at a predetermined price, usually known as the exercise or strike price. Nests offer flexibility in terms of pricing and tax implications, as they are not subject to specific tax advantages. 2. Incentive Stock Options (SOS): SOS are another type of option granted to eligible directors. They provide tax advantages, as any potential gains from exercising SOS are taxed as capital gains, rather than ordinary income. SOS typically come with specific requirements, such as a set exercise price and holding period, which must be met to receive favorable tax treatment. 3. Stock Appreciation Rights (SARS): In addition to stock options, the plan may also include SARS. SARS grant directors the opportunity to receive cash or stock value equal to the appreciation in the company's stock price. Unlike options, SARS do not require directors to purchase shares but still offer the benefit of gaining from stock price appreciation. 4. Performance Stock Options (SOS): Kyle Electronics may also utilize performance-based stock options as a part of their eligible directors' stock option plan. These options are tied to predetermined performance metrics and goals, such as company-wide targets, financial achievements, or individual performance goals. Directors receive the option to purchase shares only when the specified performance criteria are met. Overall, the New York Eligible Directors' Stock Option Plan of Kyle Electronics provides a comprehensive framework for compensating and incentivizing directors through stock ownership. This aligns the interests of the directors with those of the company's shareholders, encouraging active participation, prudent decision-making, and value creation.