Connecticut Nonemployee Directors Stock Plan of TJ International, Inc.

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-CC-18-361A
• Format: Word; Rich Text

Description

18-361A 18-361A . . . Non-employee Directors Stock Option Plan under which Board can grant, during first year of Plan, options to purchase up to 2,000 shares of stock exercisable one year after grant and options to purchase 1,667 shares of stock exercisable 3 years after grant. Each year beginning with the 2nd year of Plan, Board can grant options for up to 2,000 shares of stock which are exercisable in 3 equal annual installments beginning 1 year after grant

Connecticut Nonemployee Directors Stock Plan is a program devised by TJ International, Inc. for its nonemployee directors based in Connecticut to receive compensation in the form of stock options. This plan is designed to incentivize and retain qualified individuals on the company's board of directors. Under the Connecticut Nonemployee Directors Stock Plan, nonemployee directors are granted stock options as a form of compensation, allowing them to purchase shares of TJ International's stock at a predetermined price within a specific time frame. These stock options are generally subject to certain vesting restrictions to ensure alignment with the company's long-term goals and the director's continued service. The plan aims to align the interests of the nonemployee directors with those of the shareholders by motivating directors to make decisions that enhance the value of the company's stock. By offering stock-based compensation, TJ International promotes a sense of ownership among its directors, driving them to actively contribute towards the company's growth and success. Some key features of the Connecticut Nonemployee Directors Stock Plan include: 1. Granting of Stock Options: Nonemployee directors are awarded stock options, offering them the right to purchase company shares at a predetermined price known as the exercise price. These options can be exercised within a specified time period, typically subject to vesting requirements or other performance-based conditions. 2. Vesting Schedule: The stock options granted to nonemployee directors usually follow a vesting schedule, which defines the time or performance milestones that must be met for the options to become exercisable. This ensures directors remain engaged with the company and its long-term objectives. 3. Exercise Price: The exercise price of the stock options is determined at the time of the grant and remains fixed until the options are exercised. Directors can benefit from the increase in the company's stock price by exercising options at a lower price, potentially realizing a capital gain. 4. Non-transferability of Options: In most cases, the stock options granted under the Connecticut Nonemployee Directors Stock Plan are non-transferable. This means that directors cannot sell, transfer, or assign their options to anyone else and are intended solely for their benefit. 5. Director Eligibility: The plan is designed exclusively for the nonemployee directors of TJ International based in Connecticut. It offers these directors an opportunity to participate in the company's growth and align their interests with those of the shareholders. It is important to note that while the focus of this content is on the Connecticut Nonemployee Directors Stock Plan of TJ International, Inc., it is always advisable to refer to the official plan documents, as they provide the most accurate and up-to-date information regarding the specifics of the program.