Delaware 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 Delaware Eligible Directors' Stock Option Plan of Kyle Electronics is an incentive program designed to provide eligible directors with stock options as a form of compensation. This plan aims to align the interests of directors with those of the company by offering them the opportunity to acquire shares and benefit from the company's long-term success. Under this plan, eligible directors are granted the right to purchase a specified number of shares of Kyle Electronics' common stock at a predetermined price, known as the exercise price. The exercise price is usually set at the fair market value of the stock on the date of grant, ensuring that directors have a vested interest in the company's performance. The stock options granted through this plan are subject to certain vesting requirements. Vesting refers to the time period or conditions that must be fulfilled before the options become exercisable. Vesting schedules can range from immediate vesting upon grant to gradual vesting over a defined period. This encourages directors to remain committed to the company for the long term and actively contribute to its growth and success. One of the variations of the Delaware Eligible Directors' Stock Option Plan of Kyle Electronics is the Performance-Based Stock Option Plan. This type of plan incorporates performance goals and milestones that must be achieved for the options to vest. By linking the stock options to the company's performance, this plan further incentivizes directors to drive positive results and enhance shareholder value. Another variant is the Restricted Stock Unit (RSU) Option Plan. Instead of granting traditional stock options, this plan awards RSS to eligible directors. RSS represents the right to receive a specified number of shares of common stock, typically subject to vesting conditions. Once the RSS vest, directors receive the equivalent number of shares or the cash value of those shares. It is important to note that the Delaware Eligible Directors' Stock Option Plan of Kyle Electronics is subject to applicable securities laws, corporate governance guidelines, and the discretion of the board of directors. The specific terms and conditions of the plan may vary and should be carefully reviewed to understand the rights, restrictions, and benefits associated with participating in this program.