A “102 trustee” is a person or entity appointed by an Israeli company to administer its employee share option plan in accordance with Section 102 of the Israeli Income Tax Ordinance. The trustee is responsible for managing the plan and ensuring compliance with the tax rules and other legal requirements. In particular, the trustee is responsible for holding the shares issued under the plan in trust for the benefit of the plan participants until the options are exercised.
The trustee may also be responsible for exercising certain rights on behalf of the plan participants, such as voting rights and dividend rights. The role of the 102 trustee is important for ensuring that the plan operates smoothly and that the tax benefits associated with 102(b)(2) options are fully realized.