Tennessee 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 Tennessee Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc. is a program designed to provide nonemployee directors of the company with stock options as a form of compensation. This plan is applicable to the specific state of Tennessee and is implemented by National Surgery Centers, Inc., a renowned healthcare organization. Under this stock option plan, nonemployee directors receive the opportunity to purchase company shares at a predetermined price, known as the exercise price. These options usually have a vesting period, during which the directors must fulfill certain requirements or meet specific conditions before exercising their right to buy the underlying stock. By offering stock options, National Surgery Centers, Inc. aims to attract and retain experienced and knowledgeable individuals to serve as directors on its board. This compensation strategy aligns the interests of the directors with those of the company, as they have a vested interest in seeing the stock price rise, which ultimately benefits both parties. The Tennessee Nonemployee Directors Stock Option Plan helps to create a sense of ownership and motivation among the directors, as they have the potential to share in the company's success. It serves as an additional incentive for directors to contribute their expertise and play an active role in the company's strategic decision-making process. To cater to different scenarios or requirements, there might be different types of Tennessee Nonemployee Directors Stock Option Plans within National Surgery Centers, Inc. These variations could include: 1. Performance-based Stock Option Plan: This plan ties the stock options' exercise price or vesting schedule to certain performance goals or milestones set by the company. For instance, a director might be granted stock options with accelerated vesting if the company achieves a specific revenue target or successfully completes a major acquisition. 2. Time-based Stock Option Plan: In this type of plan, stock options vest over a predefined period, encouraging directors to remain on the board for an extended duration. For example, a director might receive stock options that vest incrementally over four years, with 25% vesting after the first year and the remaining 75% vesting monthly over the subsequent three years. National Surgery Centers, Inc. carefully structures their Tennessee Nonemployee Directors Stock Option Plan(s) to adhere to state and federal regulations, ensuring its fairness and compliance with applicable laws. The effective implementation of this plan ensures that the company can attract and retain highly qualified nonemployee directors who play a vital role in shaping the organization's future.