Puerto Rico 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 Puerto Rico Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc. is a unique compensation program designed specifically for nonemployee directors of the company who serve on its board of directors in Puerto Rico. This plan offers a variety of stock options as a form of remuneration to these directors. The primary objective of the Puerto Rico Nonemployee Directors Stock Option Plan is to align the interests of the nonemployee directors with those of the company and its shareholders. By providing stock options, the plan aims to motivate and incentivize directors to contribute to the long-term success of National Surgery Centers, Inc. It allows them to share in the company's growth and financial performance through the potential appreciation of the stock options. The plan provides nonemployee directors with the opportunity to acquire stock options at a predetermined exercise price within a specified timeframe. The exercise price is usually based on the fair market value of the company's stock on the date of grant. The options granted under the plan may vest over a certain period or be subject to specific performance criteria established by the board of directors. These stock options can be exercised by nonemployee directors at their discretion, allowing them to purchase company stock at the predetermined exercise price. This enables directors to benefit from any increase in the company's stock price above the exercise price. The Puerto Rico Nonemployee Directors Stock Option Plan may have different types or variations, depending on the specific terms and conditions established by National Surgery Centers, Inc. Some potential variations of the plan could include: 1. Standard Stock Options: Directors receive a specific number of stock options, and these options vest based on a predetermined schedule or performance criteria. 2. Performance-Based Options: Directors are granted stock options that vest based on the achievement of specific performance targets, such as revenue, earnings growth, or other financial metrics. 3. Director Stock Purchase Plan: This plan allows directors to purchase company stock directly at a discounted price, rather than through stock options. It provides an alternative way for directors to acquire company stock and participate in its growth. 4. Restricted Stock Units (RSS): Instead of stock options, directors may be granted RSS that convert into actual shares of company stock after a specified vesting period. RSS offers a simpler form of equity compensation where no exercise price is required. It's important to note that the specific details and variations of the Puerto Rico Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc. may differ from those mentioned above. The plan's design and implementation are subject to the company's discretion, as well as compliance with applicable laws and regulations in Puerto Rico.