Maine 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 Maine Nonemployee Directors Stock Option Plan is a comprehensive compensation program implemented by National Surgery Centers, Inc. for its nonemployee directors based in the state of Maine. This plan offers several types of stock options and benefits to attract and retain talented individuals serving on the company's board of directors. Here is a detailed description of the Maine Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc., along with the different types of options it offers: 1. Stock Options: The Maine Nonemployee Directors Stock Option Plan provides nonemployee directors with the opportunity to purchase company stock at a predetermined price within a specified time frame. These stock options are typically granted as an incentive for their service on the board. 2. Incentive Stock Options: Under this plan, nonemployee directors can be granted Incentive Stock Options (SOS). SOS offer tax advantages, where any profit gained from the exercise of the options may be subject to long-term capital gains tax rates rather than ordinary income tax rates. 3. Non-Qualified Stock Options: Another type of stock option available is Non-Qualified Stock Options (Nests). Nests do not meet the specific requirements outlined by the Internal Revenue Code for Incentive Stock Options. They are more flexible regarding exercise and taxation, but any profit is typically subject to ordinary income tax rates. 4. Vesting Schedule: The Maine Nonemployee Directors Stock Option Plan usually includes a vesting schedule, which dictates when nonemployee directors can exercise their stock options. Vesting schedules can be time-based, performance-based, or a combination of both, ensuring directors remain dedicated to the company's long-term growth and success. 5. Stock Option Grants: The plan outlines the process of granting stock options to nonemployee directors, including the number of options, exercise price, and the conditions for vesting. These grants are typically made at the discretion of the board or compensation committee. 6. Exercise Period: The Maine Nonemployee Directors Stock Option Plan stipulates a specific exercise period during which nonemployee directors can purchase the company's stock at the predetermined price. This period is set to incentivize directors to align their interests with those of the shareholders and promote the company's continued growth. 7. Change of Control Provisions: The plan may include provisions addressing stock options in the event of a change of control, such as a merger or acquisition. These provisions ensure that nonemployee directors' stock options are protected and appropriately valued during such corporate actions. 8. Termination or Retirement: The plan may specify the treatment of stock options upon the termination or retirement of nonemployee directors. It outlines the timeline within which options must be exercised, considering any applicable post-termination or post-retirement provisions. In summary, the Maine Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc. is a comprehensive compensation strategy that offers various types of stock options to incentivize and reward nonemployee directors. By granting stock options with specific terms and conditions, the plan aligns the interests of directors with those of the company and its shareholders, fostering long-term commitment and driving growth.

Maine Nonemployee Directors Stock Option Plan is a comprehensive compensation program implemented by National Surgery Centers, Inc. for its nonemployee directors based in the state of Maine. This plan offers several types of stock options and benefits to attract and retain talented individuals serving on the company's board of directors. Here is a detailed description of the Maine Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc., along with the different types of options it offers: 1. Stock Options: The Maine Nonemployee Directors Stock Option Plan provides nonemployee directors with the opportunity to purchase company stock at a predetermined price within a specified time frame. These stock options are typically granted as an incentive for their service on the board. 2. Incentive Stock Options: Under this plan, nonemployee directors can be granted Incentive Stock Options (SOS). SOS offer tax advantages, where any profit gained from the exercise of the options may be subject to long-term capital gains tax rates rather than ordinary income tax rates. 3. Non-Qualified Stock Options: Another type of stock option available is Non-Qualified Stock Options (Nests). Nests do not meet the specific requirements outlined by the Internal Revenue Code for Incentive Stock Options. They are more flexible regarding exercise and taxation, but any profit is typically subject to ordinary income tax rates. 4. Vesting Schedule: The Maine Nonemployee Directors Stock Option Plan usually includes a vesting schedule, which dictates when nonemployee directors can exercise their stock options. Vesting schedules can be time-based, performance-based, or a combination of both, ensuring directors remain dedicated to the company's long-term growth and success. 5. Stock Option Grants: The plan outlines the process of granting stock options to nonemployee directors, including the number of options, exercise price, and the conditions for vesting. These grants are typically made at the discretion of the board or compensation committee. 6. Exercise Period: The Maine Nonemployee Directors Stock Option Plan stipulates a specific exercise period during which nonemployee directors can purchase the company's stock at the predetermined price. This period is set to incentivize directors to align their interests with those of the shareholders and promote the company's continued growth. 7. Change of Control Provisions: The plan may include provisions addressing stock options in the event of a change of control, such as a merger or acquisition. These provisions ensure that nonemployee directors' stock options are protected and appropriately valued during such corporate actions. 8. Termination or Retirement: The plan may specify the treatment of stock options upon the termination or retirement of nonemployee directors. It outlines the timeline within which options must be exercised, considering any applicable post-termination or post-retirement provisions. In summary, the Maine Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc. is a comprehensive compensation strategy that offers various types of stock options to incentivize and reward nonemployee directors. By granting stock options with specific terms and conditions, the plan aligns the interests of directors with those of the company and its shareholders, fostering long-term commitment and driving growth.