Rhode Island 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 Rhode Island Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc., is an intricate compensation program designed specifically for non-employee directors of the company residing in Rhode Island. This plan is established to provide these directors with an additional form of compensation in the form of stock options. Under this plan, eligible non-employee directors of National Surgery Centers, Inc., are granted stock options that allow them to purchase company shares at a predetermined price, also known as the exercise price. These stock options are awarded to directors as an incentive and are meant to align their interests with the long-term goals and success of the company. The plan reflects the company's commitment to rewarding and retaining talented directors by offering them a stake in the company's growth. National Surgery Centers, Inc. may offer different types of stock options under the Rhode Island Nonemployee Directors Stock Option Plan to cater to various director preferences and needs. These types could include: 1. Non-qualified Stock Options (Nests): This type of stock option allows non-employee directors to purchase company shares at the exercise price. Upon exercise, the difference between the exercise price and the market value of the shares is subject to ordinary income tax. 2. Incentive Stock Options (SOS): Unlike Nests, SOS enjoy special tax advantages. Non-employee directors who receive SOS have the opportunity to purchase company shares at the exercise price without incurring immediate tax consequences. However, to qualify for these tax advantages, certain conditions, such as holding the stock for a specific period, must be met. 3. Restricted Stock Units (RSS): While not technically options, RSS represent an alternative form of equity compensation. Under this plan, non-employee directors are issued RSS that convert into company shares upon meeting certain vesting conditions. These conditions could be based on tenure, performance metrics, or other predetermined criteria. 4. Performance Stock Options: This type of stock option is linked to the achievement of specific company performance goals. Non-employee directors may be granted performance stock options in addition to regular stock options. These options only become exercisable if the company reaches predefined milestones, ensuring directors are rewarded based on the company's overall success. By implementing the Rhode Island Nonemployee Directors Stock Option Plan, National Surgery Centers, Inc. aims to attract experienced outside perspectives, align the interests of directors with shareholders, and drive long-term value for the company. This compensation program serves as a tool to incentivize non-employee directors and foster a sense of ownership, ultimately enhancing corporate governance and contributing to the company's growth trajectory.

The Rhode Island Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc., is an intricate compensation program designed specifically for non-employee directors of the company residing in Rhode Island. This plan is established to provide these directors with an additional form of compensation in the form of stock options. Under this plan, eligible non-employee directors of National Surgery Centers, Inc., are granted stock options that allow them to purchase company shares at a predetermined price, also known as the exercise price. These stock options are awarded to directors as an incentive and are meant to align their interests with the long-term goals and success of the company. The plan reflects the company's commitment to rewarding and retaining talented directors by offering them a stake in the company's growth. National Surgery Centers, Inc. may offer different types of stock options under the Rhode Island Nonemployee Directors Stock Option Plan to cater to various director preferences and needs. These types could include: 1. Non-qualified Stock Options (Nests): This type of stock option allows non-employee directors to purchase company shares at the exercise price. Upon exercise, the difference between the exercise price and the market value of the shares is subject to ordinary income tax. 2. Incentive Stock Options (SOS): Unlike Nests, SOS enjoy special tax advantages. Non-employee directors who receive SOS have the opportunity to purchase company shares at the exercise price without incurring immediate tax consequences. However, to qualify for these tax advantages, certain conditions, such as holding the stock for a specific period, must be met. 3. Restricted Stock Units (RSS): While not technically options, RSS represent an alternative form of equity compensation. Under this plan, non-employee directors are issued RSS that convert into company shares upon meeting certain vesting conditions. These conditions could be based on tenure, performance metrics, or other predetermined criteria. 4. Performance Stock Options: This type of stock option is linked to the achievement of specific company performance goals. Non-employee directors may be granted performance stock options in addition to regular stock options. These options only become exercisable if the company reaches predefined milestones, ensuring directors are rewarded based on the company's overall success. By implementing the Rhode Island Nonemployee Directors Stock Option Plan, National Surgery Centers, Inc. aims to attract experienced outside perspectives, align the interests of directors with shareholders, and drive long-term value for the company. This compensation program serves as a tool to incentivize non-employee directors and foster a sense of ownership, ultimately enhancing corporate governance and contributing to the company's growth trajectory.