New Jersey 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

The New Jersey Nonemployee Directors Stock Plan is a robust incentive program introduced by TJ International, Inc. for its nonemployee directors based in New Jersey. This stock plan aims to attract experienced and accomplished individuals to serve on the company's board of directors while incentivizing their dedication, contribution, and aligning their interests with those of the company and its shareholders. Under the New Jersey Nonemployee Directors Stock Plan, eligible nonemployee directors are granted stock options or restricted stock units (RSS) representing shares of TJ International, Inc.'s common stock. These options or RSS are granted at specified intervals and are subject to specific terms and conditions determined by the company. Directors can benefit from the potential appreciation of the company's stock value during their tenure or vesting period. The plan recognizes the significance of nonemployee directors in driving the company's long-term growth and fostering a strong governance structure. By providing these individuals with an opportunity to directly participate in the company's success, the plan enhances the alignment of their interests with those of the shareholders and promotes a sense of ownership and accountability. The New Jersey Nonemployee Directors Stock Plan is designed to provide flexibility to the company in structuring the equity grants, taking into account various factors such as a director's experience, qualifications, and involvement in board committees. This allows the company to tailor the rewards to each director's contributions and responsibilities. Typically, the plan outlines the maximum number of shares that can be granted to nonemployee directors and provides guidelines for the exercise or sale of these shares. Moreover, it may specify the conditions under which the stock options or RSS may be forfeited, canceled, or accelerated based on certain events like a change in control, retirement, or the termination of a director's service. The New Jersey Nonemployee Directors Stock Plan is beneficial not only in attracting and retaining talented directors but also in promoting stability, commitment, and mutual growth within TJ International, Inc. By implementing this plan, the company demonstrates its commitment to utilizing a competitive compensation structure for its nonemployee directors, thereby reinforcing its corporate values and further enhancing its corporate governance practices. In summary, the New Jersey Nonemployee Directors Stock Plan of TJ International, Inc. is an effective equity compensation program that aims to retain, motivate, and reward nonemployee directors based in New Jersey. Through the granting of stock options or RSS, this plan aligns directors' interests with those of shareholders, reinforces a sense of ownership, and ensures a robust governance structure within the company.