West Virginia 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 West Virginia Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc. is a comprehensive equity compensation program designed specifically for nonemployee directors of the company. This plan aims to attract and retain experienced individuals with exceptional skills in the field of corporate governance. Under this plan, nonemployee directors are granted stock options as part of their compensation package, allowing them to purchase company stock at a predetermined price, typically referred to as the exercise price. These stock options provide directors with a unique opportunity to align their interests with those of shareholders and participate in the company's long-term growth and success. The West Virginia Nonemployee Directors Stock Option Plan offers various types of stock options, including: 1. Nonqualified Stock Options (Nests): These stock options provide nonemployee directors with the flexibility to exercise their options at any time after they have vested. Upon exercise, the difference between the exercise price and the fair market value is subject to ordinary income tax. 2. Incentive Stock Options (SOS): These stock options offer potential tax advantages to nonemployee directors. SOS have specific rules regarding exercise, holding periods, and tax treatment. If held for a required period, the difference between the exercise price and the fair market value at the time of exercise is taxed as a capital gain. 3. Restricted Stock Units (RSS): While not technically stock options, RSS are another form of equity compensation provided to nonemployee directors. RSS represents the right to receive company shares at a predetermined future date or upon the occurrence of certain triggering events. 4. Performance Stock Options: National Surgery Centers, Inc. may also offer performance-based stock options to nonemployee directors. These options are contingent upon the achievement of specific performance goals, such as revenue targets or share price milestones. Once the performance criteria are met, directors can exercise their options. It is important to note that the West Virginia Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc. is subject to specific terms and conditions outlined in the plan's documentation. Nonemployee directors should review these documents carefully to understand their rights, obligations, and the potential value of their stock options. In conclusion, the West Virginia Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc. provides a valuable means for nonemployee directors to share in the company's success and enhance corporate governance. The flexibility of different stock option types allows directors to choose the option that best suits their individual financial needs and goals.