Maryland 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 Maryland Eligible Directors' Stock Option Plan is an incentive program offered by Kyle Electronics to its eligible directors in the state of Maryland. This plan provides an opportunity for the directors to acquire stock options, giving them the right to purchase company stock at a predetermined price within a specified timeframe. This stock option plan aims to align the interests of directors with those of the company's shareholders, incentivizing them to contribute to the long-term success and growth of Kyle Electronics. By offering stock options, the company enables directors to share in the potential financial gains and benefits resulting from their contributions to the organization. The Maryland Eligible Directors' Stock Option Plan at Kyle Electronics may have various types or provisions tailored to meet specific objectives and requirements. These variations can be categorized as follows: 1. Standard Stock Option Plan: Under this plan, eligible directors are granted options to purchase a specific number of shares of Kyle Electronics' common stock at a predetermined price (the exercise price) within a fixed timeframe. Once the stock options are vested, directors have the flexibility to exercise their options and acquire the underlying shares based on their individual investment decisions. 2. Performance-Based Stock Option Plan: This variation of the plan ties the vesting or exercise of stock options to performance-based criteria, such as the achievement of specific financial targets, revenue goals, or other predetermined metrics. By linking stock option grants to performance, Kyle Electronics aims to motivate directors to actively contribute to the company's success, aligning their interests with shareholder value creation. 3. Long-Term Incentive Plan (TIP): The Maryland Eligible Directors' Stock Option Plan may extend beyond just stock options and include other long-term incentives, such as restricted stock units (RSS) or performance shares. These awards may have their own vesting conditions, restrictions, and valuation methods, allowing directors to benefit from the company's performance and value appreciation over the long term. In conclusion, the Maryland Eligible Directors' Stock Option Plan of Kyle Electronics is designed to reward eligible directors in the state of Maryland by granting them stock options or other equity-based compensation. Through various iterations of this plan, the company aims to motivate, retain, and align the interests of its directors with the long-term success of Kyle Electronics.