South Dakota 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 South Dakota Eligible Directors' Stock Option Plan of Kyle Electronics is a comprehensive program designed to incentivize and reward eligible directors of the company. This plan offers a range of benefits and opportunities for directors to acquire and benefit from stock options. One type of the South Dakota Eligible Directors' Stock Option Plan is the Nonqualified Stock Option (NO). Under this provision, participating directors have the right to purchase company stock at a predetermined price within a specified period. This option allows directors to acquire stock at a potentially lower price, enabling them to benefit from future growth in the company's value. Another type of the plan is the Incentive Stock Option (ISO). Directors who opt for this type of option enjoy certain tax advantages as the gains from exercising SOS are subject to favorable tax treatment. SOS are subject to specific holding periods and other requirements outlined in the plan. The South Dakota Eligible Directors' Stock Option Plan comes with various eligibility criteria and allocation procedures. Directors who meet the established standards are granted specified numbers of stock options depending on their level of contribution and tenure with the company. These options usually vest over a predetermined period, incentivizing director retention and long-term commitment to Kyle Electronics. The plan is carefully structured to ensure fairness and alignment with shareholder interests. The exercise price and vesting schedules are determined in accordance with market conditions and industry benchmarks. This strategy encourages directors to actively contribute to the company's success, as their stock options will only become valuable when the company's stock price increases. Furthermore, the plan safeguards against any potential conflicts of interest in imposing strict guidelines and disclosure requirements. Directors must comply with applicable regulations and disclose any conflicts or potential conflicts of interest to the company and its shareholders. Overall, the South Dakota Eligible Directors' Stock Option Plan of Kyle Electronics provides a means for eligible directors to align their interests with those of the company and its shareholders. It incentivizes long-term commitment, fosters loyalty, and encourages active participation in driving the company's growth and success. Keywords: South Dakota, Eligible Directors' Stock Option Plan, Kyle Electronics, Nonqualified Stock Option, Incentive Stock Option, stock options, incentive, rewards, directors, acquisition, growth, value, eligibility, allocation, vesting, shareholder interests, conflicts of interest, disclosure, commitment, loyalty, participation, success.