Iowa 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 Iowa Nonemployee Directors Stock Option Plan is a compensation program offered by National Surgery Centers, Inc. to its nonemployee directors based in Iowa. This plan provides an opportunity for nonemployee directors to acquire stock options in the company. Under this plan, nonemployee directors are granted the right to purchase company stock at a predetermined price, known as the exercise price. These stock options typically have a vesting period, during which the nonemployee director must wait before being able to exercise their options. Once the options have vested, the director can choose to exercise them by purchasing the company stock at the exercise price. The purpose of the Iowa Nonemployee Directors Stock Option Plan is to align the interests of the nonemployee directors with those of the company's shareholders. By offering stock options, National Surgery Centers, Inc. aims to incentivize nonemployee directors to contribute to the company's growth and success, thereby increasing shareholder value. This plan can offer various types of stock options to nonemployee directors, including: 1. Nonqualified Stock Options (SOS): These stock options do not qualify for special tax treatment and are subject to regular income tax upon exercise. Nonemployee directors have flexibility in exercising SOS, as they can choose the timing of exercise within the terms of the plan. 2. Incentive Stock Options (SOS): These stock options are generally reserved for employees but may be extended to nonemployee directors in certain circumstances. SOS provide potential tax advantages, as the gains from exercising and selling the stock may be taxed at a lower rate if specific requirements are met. 3. Restricted Stock Units (RSS): While not technically stock options, RSS are another form of equity compensation that may be included in the Iowa Nonemployee Directors Stock Option Plan. RSS represents a promise to deliver company shares at a future date, typically upon vesting. The nonemployee director does not need to purchase the shares but receives them as compensation. It is important to note that the specifics of the Iowa Nonemployee Directors Stock Option Plan may vary based on company policies and legal requirements. Therefore, interested parties should refer to the official plan documents and consult legal and financial advisors for accurate and up-to-date information.