Oregon 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 Oregon Nonemployee Directors Stock Option Plan is a comprehensive program initiated by National Surgery Centers, Inc. (SCI) to offer valuable stock options to its nonemployee directors based in Oregon. This incentive aims to attract and retain talented individuals to serve on the board of SCI while aligning their interests with the company's growth. Under this plan, nonemployee directors of SCI who reside in Oregon are eligible to receive stock options, which grant them the right to purchase a specific number of SCI shares at a predetermined price within a specified timeframe. These stock options serve as a means of rewarding and motivating nonemployee directors for their contributions to the overall success of the company. The Oregon Nonemployee Directors Stock Option Plan offers various types of stock options to suit the specific requirements and circumstances of SCI's nonemployee directors. These encompass: 1. Standard Stock Options: These are the most common type of stock options granted to nonemployee directors in accordance with the Oregon Nonemployee Directors Stock Option Plan. Nonemployee directors receive a fixed number of options, allowing them to buy SCI shares at a predetermined price, typically set at the market value on the date of grant. 2. Incentive Stock Options (SOS): SCI may also introduce SOS as part of its Oregon Nonemployee Directors Stock Option Plan. SOS offer potential tax advantages by allowing nonemployee directors to defer the tax on the stock option's exercise until the shares are sold. 3. Nonqualified Stock Options (SOS): SCI may provide nonqualified stock options to its nonemployee directors depending on their eligibility. These options function similarly to standard stock options but do not adhere to specific tax regulations applicable to SOS. 4. Performance-based Stock Options: SCI might extend performance-based stock options to its nonemployee directors as an extra incentive. These options have specific performance criteria, such as reaching certain revenue targets or achieving specified milestones, which need to be met before the options can be exercised. It is important to note that the Oregon Nonemployee Directors Stock Option Plan is designed solely for nonemployee directors of SCI residing in Oregon. The plan operates within the legal framework established by Oregon state regulations and ensures compliance with relevant corporate governance practices. Overall, the Oregon Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc. bolsters board member engagement, fosters loyalty, and encourages participation in the company's long-term success by offering various types of stock options tailored to Oregon-based nonemployee directors.