Massachusetts 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 Massachusetts Nonemployee Directors Stock Option Plan is an integral component of National Surgery Centers, Inc.'s compensation package for its nonemployee directors. This plan offers a unique opportunity for these directors to acquire stock options, enabling them to become shareholders of the company. Under this comprehensive plan, nonemployee directors are granted stock options, allowing them to purchase shares of National Surgery Centers, Inc. at a predetermined price. These options typically vest over a specified period, motivating directors to continue contributing their expertise and overseeing the company's operations long-term. The Massachusetts Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc. encompasses several types of options, including: 1. Incentive Stock Options (SOS): These options provide favorable tax treatment to eligible directors, allowing them to potentially reap greater financial benefits upon exercising their options. 2. Nonqualified Stock Options (SOS): SOS are an alternative to SOS and do not possess the same tax advantages. However, they offer greater flexibility by allowing nonemployee directors to exercise their options at any time, regardless of employment status. 3. Performance-Based Options: This type of stock option is contingent upon the achievement of predetermined performance goals set by National Surgery Centers, Inc. The directors' ability to exercise these options depends on the company meeting specific milestones or financial targets. 4. Restricted Stock Units (RSS): While not technically options, RSS are another form of equity compensation often included within this stock option plan. RSS grant nonemployee directors the right to receive shares of company stock once specified vesting conditions are met, such as continued service or meeting performance goals. By offering the Massachusetts Nonemployee Directors Stock Option Plan, National Surgery Centers, Inc. aims to align the interests of its nonemployee directors with shareholders, fostering a sense of ownership and motivation to drive the company's growth and success. This comprehensive plan serves as a pivotal component of the company's overall compensation strategy, attracting top talent to its board of directors and promoting long-term value creation.