Wisconsin 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 Wisconsin Eligible Directors' Stock Option Plan is a program offered by Kyle Electronics, a renowned company in Wisconsin, to its eligible directors. This plan provides an opportunity for directors to acquire stock options as a part of their compensation package. Under this plan, eligible directors are granted the option to purchase a specific number of shares of Kyle Electronics' common stock at a predetermined price, known as the exercise price. These stock options typically have a fixed expiration date, encouraging directors to make timely decisions regarding exercising their options. The Wisconsin Eligible Directors' Stock Option Plan serves as a valuable incentive for the directors, aligning their interests with the company's success and encouraging them to contribute to its growth. By giving directors the opportunity to become shareholders, this plan fosters a sense of ownership and commitment to Kyle Electronics' long-term goals. In addition to the main Wisconsin Eligible Directors' Stock Option Plan, Kyle Electronics may offer variations or supplementary programs tailored to the specific needs and objectives of different directors. These additional plans may include: 1. Performance-Based Stock Option Plan: This plan ties the exercise of stock options to predetermined performance goals and targets. Directors are given the opportunity to acquire additional shares based on the company's achievement of these performance milestones. 2. Restricted Stock Option Plan: In this plan, directors are granted stock options that come with certain restrictions, such as a vesting period or performance conditions. These restrictions ensure that directors remain committed and engaged over a specified period, ultimately benefitting both the individual and the company. 3. Non-Qualified Stock Option Plan: This plan offers stock options that do not meet the requirements for favorable tax treatment under the Internal Revenue Code. Non-qualified stock options can be granted at a discount to the fair market value of the company's stock, providing a potential financial advantage to directors. 4. Stock Appreciation Rights Plan: Rather than granting stock options, this plan gives eligible directors the right to receive the value of the appreciation in the company's stock over a specified period. This plan allows directors to benefit from the increased value of the stock without having to purchase shares outright. The Wisconsin Eligible Directors' Stock Option Plan and its various iterations are essential components of Kyle Electronics' comprehensive compensation strategy. By recognizing the valuable contributions of directors and providing them with opportunities to participate in the company's success, these plans promote long-term loyalty and alignment with the organization's overall objectives.