Nebraska 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 Nebraska Eligible Directors' Stock Option Plan of Kyle Electronics is a compensation program designed specifically for directors who serve on the board of Kyle Electronics in the state of Nebraska. This plan offers eligible directors the opportunity to purchase company stock at a predetermined price within a specified timeframe. Under the Nebraska Eligible Directors' Stock Option Plan, directors are granted stock options as a form of incentive and reward for their service and contribution to the company. These stock options provide directors with the right to purchase a certain number of shares of Kyle Electronics stock at a set price, known as the exercise price or strike price. One of the key benefits of the Nebraska Eligible Directors' Stock Option Plan is that it aligns the interests of directors with those of the company's shareholders. By offering directors the ability to become shareholders through stock options, they have a vested interest in the company's success, as the value of their stock options increases with the performance of Kyle Electronics. The Nebraska Eligible Directors' Stock Option Plan also serves as a retention tool, encouraging directors to remain on the board by providing them with a valuable financial incentive. This helps to ensure continuity and stability within the leadership of Kyle Electronics. There may be different variations or types of the Nebraska Eligible Directors' Stock Option Plan offered by Kyle Electronics, depending on the specific terms and conditions outlined by the company. Some potential variations could include: 1. Standard Stock Option Plan: This type of plan offers directors the right to purchase company stock at a fixed price over a predetermined period. Generally, the exercise price remains constant, and directors can exercise their options at any time within the specified timeframe. 2. Incentive Stock Option Plan: This plan may provide tax advantages for directors if certain conditions are met. Incentive stock options typically have more stringent requirements, such as a maximum exercise price and holding period before the stock can be sold. 3. Restricted Stock Unit (RSU) Plan: Instead of granting options, Kyle Electronics may choose to grant restricted stock units to eligible directors. RSS represents the right to receive company shares at a future date, subject to certain conditions like tenure or performance goals. 4. Performance-Based Stock Option Plan: This plan ties the exercise of stock options to specific performance targets set by Kyle Electronics. Directors may be required to meet certain financial or operational goals before they can exercise their options. It is important for directors and potential participants in the Nebraska Eligible Directors' Stock Option Plan to review the specific terms and conditions of the plan provided by Kyle Electronics to understand the eligibility criteria, exercise periods, vesting schedules, and any additional provisions that may be applicable.