Kentucky 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

Keywords: Kentucky, Eligible Directors' Stock Option Plan, Kyle Electronics, types The Kentucky Eligible Directors' Stock Option Plan is a comprehensive program offered by Kyle Electronics to its eligible directors, providing them with the opportunity to acquire shares of the company's stock at a predetermined price within a specified period. It is an attractive benefit that aligns the interests of the directors with those of the company's shareholders, fostering long-term commitment and incentivizing performance. This stock option plan is designed exclusively for directors who meet the eligibility criteria set forth by Kyle Electronics and are based in the state of Kentucky. It offers a range of benefits and flexibility to suit the varying needs and preferences of the directors. There are two main types of Kentucky Eligible Directors' Stock Option Plans available to Kyle Electronics directors: 1. Standard Stock Option Plan: The standard plan offers directors the opportunity to purchase a specified number of company shares at a predetermined exercise price, which is usually set at the market price of the stock on the date of grant. These options may have a vesting period, during which directors need to fulfill specific conditions, such as remaining on the board for a certain period or meeting performance targets. Once vested, directors can exercise these options and acquire company shares at the predetermined price, subsequently benefiting from any increase in the stock's value. 2. Performance-based Stock Option Plan: The performance-based plan is designed to reward directors based on the company's performance or specific financial targets. Under this plan, directors may be granted stock options that become exercisable only when predetermined performance goals are achieved. These goals can be related to financial metrics, such as revenue growth or profit margins, or other strategic objectives set by the company. The performance-based stock options provide an additional incentive for directors to actively contribute to the company's success and create value for shareholders. Both types of Kentucky Eligible Directors' Stock Option Plans are carefully structured to comply with relevant laws, regulations, and corporate governance principles. They aim to attract and retain talented directors while aligning their interests with those of the company and its shareholders. These stock option plans reflect Kyle Electronics' commitment to promoting long-term growth and success while rewarding directors for their dedication and contributions to the company's strategic objectives.