Maricopa Arizona Eligible Directors' Stock Option Plan of Wyle Electronics

• Category: Corporations - Public - Stock Options
• State: Multi-State
• County: Maricopa
• 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 Maricopa Arizona Eligible Directors' Stock Option Plan of Kyle Electronics is a comprehensive program designed to provide eligible directors of the company with the opportunity to acquire stock options. This plan is specifically tailored for directors residing in Maricopa, Arizona, and aims to align their interests with the long-term growth and success of Kyle Electronics. By offering stock options, the company encourages directors to actively contribute to the strategic decision-making process and share in the potential financial rewards. Under the Maricopa Arizona Eligible Directors' Stock Option Plan, there are various types of stock options available to directors. These options may include: 1. Non-Qualified Stock Options: These options allow eligible directors to purchase company shares at a predetermined price, known as the exercise price, within a specified time frame. Non-qualified stock options are typically offered at a discount to the current market price and offer potential capital appreciation if the stock price rises. 2. Incentive Stock Options: This type of stock option provides certain tax advantages to eligible directors. It allows them to purchase company shares at the exercise price, which is typically the fair market value of the stock on the grant date. Incentive stock options are subject to specific holding periods and tax rules to qualify for favorable tax treatment upon exercise and eventual sale of the shares. 3. Restricted Stock Units (RSS): RSS represent a form of compensation where directors are awarded a certain number of company shares. These shares are subject to a vesting schedule, which means they cannot be sold or transferred until specific conditions are met, such as the passage of a certain period of service. Once the RSS vest, directors have the opportunity to exercise their shares and potentially benefit from any increase in the stock price. 4. Performance-Based Stock Options: This type of stock option is linked to the achievement of certain performance targets established by the company. Eligible directors are granted options that can be exercised if the predetermined performance criteria are met. Performance-based stock options align director's interests with the company's objectives and provide an added incentive for them to contribute to the overall success of Kyle Electronics. Through the Maricopa Arizona Eligible Directors' Stock Option Plan, Kyle Electronics aims to attract and retain talented directors, motivate them to act in the best interest of the company, and strengthen their commitment to the long-term growth and profitability of the organization. It serves as a valuable component of director compensation packages, promoting a collaborative and aligned approach towards company objectives in Maricopa, Arizona.