South Carolina 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 South Carolina Eligible Directors' Stock Option Plan is a specific type of compensation plan offered by Kyle Electronics to its eligible directors residing in South Carolina. It provides an opportunity for directors to purchase company stock at a predetermined price within a specified timeframe. This plan is designed to incentivize and reward directors for their service and commitment to the company's growth and success. Keywords: South Carolina, Eligible Directors' Stock Option Plan, Kyle Electronics, compensation plan, directors, company stock, predetermined price, timeframe, incentivize, reward, service, commitment, growth, success. Types of South Carolina Eligible Directors' Stock Option Plan (if applicable): 1. Non-Qualified Stock Option Plan: This type of plan offers stock options to eligible directors but does not meet the requirements set by the Internal Revenue Service (IRS) for favorable tax treatment. Directors who exercise their options under this plan may be subject to ordinary income tax on the difference between the exercise price and the fair market value of the stock at the time of exercise. 2. Incentive Stock Option Plan: An incentive stock option plan is a tax-advantaged plan that meets the criteria defined by the IRS. It allows eligible directors to purchase company stock at a predetermined price without incurring immediate tax liability. If certain holding period and other requirements are met, directors may qualify for favorable capital gains tax treatment upon selling the stock. 3. Restricted Stock Unit Plan: In addition to stock options, Kyle Electronics may also offer a restricted stock unit (RSU) plan to its eligible directors. Under this plan, directors receive units that represent promised future delivery of company shares. These units typically vest over a predetermined period or upon the achievement of certain performance goals. 4. Stock Appreciation Rights Plan: Another possible type of plan that Kyle Electronics may offer is a stock appreciation rights (SARS) plan. SARS provides eligible directors with the opportunity to receive cash or stock-based compensation equal to the appreciation in the company's stock price over a specified period. It is important to note that the specific types and details of the South Carolina Eligible Directors' Stock Option Plans offered by Kyle Electronics may vary, and further information should be obtained from the company's official documentation and disclosures.