Hawaii Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc.

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-CC-18-185C
• Format: Word; Rich Text

Description

18-185C 18-185C . . . Non-employee Directors Stock Option Plan under which Class II Non-employee directors receive options for 5,000 shares, all fully vested; Class II Non-employee directors receive options for 7,500 shares, of which 5,000 are fully vested and 2,500 vest on date of 1997 annual stockholders meeting; and Class I Non-employee directors receive options for 10,000 shares, of which 5,000 are fully vested, 2,500 vest on date of 1997 annual stockholders meeting, and 2,500 vest on date of 1998 annual stockholders meeting. Thereafter, each Non-employee director automatically receives an option on his or her election or re-election as director. Each such option is for 7,500 shares if director is elected to full three year term, of which 2,500 is vested, 2,500 vests on first anniversary of grant, and 2,500 vests on second anniversary of grant. If director is elected to fill term of less than three years, number of shares is equal to 2,500 for each full year of his or her term

The Hawaii Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc. is a comprehensive program that outlines the benefits and terms associated with stock options granted to nonemployee directors in the company. This plan aims to incentivize and reward these directors for their contributions to the business's success while aligning their interests with those of the shareholders. Under this stock option plan, eligible nonemployee directors are granted the opportunity to purchase a specified number of shares at a predetermined price, known as the exercise price. These stock options typically have a vesting period, meaning they become available for exercise gradually over a specified timeframe, encouraging directors to remain with the company for a longer duration. The Hawaii Nonemployee Directors Stock Option Plan offers several distinct types of stock options: 1. Nonqualified Stock Options (SOS): These stock options provide nonemployee directors with the flexibility to exercise their options at any time after they have vested. SOS are subject to ordinary income tax upon exercise, with the difference between the exercise price and the fair market value of the stock being treated as taxable compensation. 2. Incentive Stock Options (SOS): SOS are another type of stock option available under this plan. They offer potential tax advantages, as they are not subject to ordinary income tax upon exercise. However, to qualify for these tax benefits, SOS must comply with specific Internal Revenue Service (IRS) guidelines, such as holding the stock for a minimum period after exercise. National Surgery Centers, Inc. has designed the Hawaii Nonemployee Directors Stock Option Plan to provide flexibility, attract experienced directors, and promote long-term commitment. By offering stock options, the company ensures that its directors have a vested interest in the company's success, thereby fostering a culture of alignment and encouraging the pursuit of shareholder value.