Hawaii 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 Hawaii Eligible Directors' Stock Option Plan is a program established by Kyle Electronics that aims to incentivize and reward the company's board members through stock options. This plan provides eligible directors in Hawaii the opportunity to purchase a specified number of company shares at a predetermined price within a particular time frame. These stock options can be exercised when the market value of the company's shares rises above the predetermined price, enabling directors to profit from the difference. The Hawaii Eligible Directors' Stock Option Plan is designed to attract and retain talented directors, aligning their interests with the long-term success and profitability of Kyle Electronics. By offering stock options, the company provides directors with a direct stake in its performance, encouraging them to make strategic decisions that enhance shareholder value. There are different types of stock options available under the Hawaii Eligible Directors' Stock Option Plan of Kyle Electronics, including non-qualified stock options and incentive stock options. Non-qualified stock options are typically offered to directors and provide more flexibility in terms of exercise and taxation. On the other hand, incentive stock options come with certain tax advantages and are subject to specific rules outlined by the Internal Revenue Service. Directors eligible for participation in the Hawaii Eligible Directors' Stock Option Plan are selected based on predetermined criteria established by Kyle Electronics. Once selected, directors are granted a specific number of stock options, which can vest over a period determined by the company. Vesting refers to the gradual acquisition of ownership rights in the stock options. As directors continue to serve on the board, they gain additional rights to exercise their stock options, typically within a predetermined schedule. The Hawaii Eligible Directors' Stock Option Plan of Kyle Electronics plays a crucial role in attracting experienced individuals to its board, fostering a strong governance structure, and aligning the interests of the directors with the company's shareholders. This stock-based compensation method provides a valuable tool to motivate and retain qualified directors who play a key role in shaping the strategic direction and decision-making of Kyle Electronics.