Dallas Texas Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc.

• Category: Corporations - Public - Stock Options
• State: Multi-State
• County: Dallas
• 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 Dallas Texas Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc. is a compensation plan designed to incentivize nonemployee directors of the company. This plan aims to provide these directors with the opportunity to acquire stock in the company, thereby aligning their interests with those of the shareholders and promoting long-term growth. Under the Dallas Texas Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc., eligible nonemployee directors are granted stock options, which allow them to purchase a specified number of shares of the company's common stock at a predetermined price. These options typically have a vesting period, during which the options cannot be exercised, encouraging continuity in the director's service. Once the options are vested, directors can exercise them and acquire shares of the company's stock at the predetermined price. The plan may include different types of stock options, such as: 1. Nonqualified Stock Options (Nests): These are stock options that do not qualify for special tax treatment. When the nonemployee directors exercise Nests, the difference between the exercise price and the fair market value of the stock becomes taxable as ordinary income. 2. Incentive Stock Options (SOS): These stock options may qualify for special tax treatment under the Internal Revenue Code. If certain conditions are met, nonemployee directors may be able to exercise SOS without incurring immediate tax liability. However, when the acquired shares are eventually sold, capital gain or loss taxes may apply. 3. Performance-based Stock Options: These stock options have additional performance criteria that need to be met before the options can be exercised. These criteria are typically tied to the company's financial performance, stock price, or other predetermined goals. Performance-based stock options aim to motivate and reward nonemployee directors for achieving specific targets. The Dallas Texas Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc. demonstrates the company's commitment to attracting and retaining exceptional directors. By offering stock options, the plan aligns the interests of the nonemployee directors with the long-term success of the company and fosters a sense of ownership among the board members.

The Dallas Texas Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc. is a compensation plan designed to incentivize nonemployee directors of the company. This plan aims to provide these directors with the opportunity to acquire stock in the company, thereby aligning their interests with those of the shareholders and promoting long-term growth. Under the Dallas Texas Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc., eligible nonemployee directors are granted stock options, which allow them to purchase a specified number of shares of the company's common stock at a predetermined price. These options typically have a vesting period, during which the options cannot be exercised, encouraging continuity in the director's service. Once the options are vested, directors can exercise them and acquire shares of the company's stock at the predetermined price. The plan may include different types of stock options, such as: 1. Nonqualified Stock Options (Nests): These are stock options that do not qualify for special tax treatment. When the nonemployee directors exercise Nests, the difference between the exercise price and the fair market value of the stock becomes taxable as ordinary income. 2. Incentive Stock Options (SOS): These stock options may qualify for special tax treatment under the Internal Revenue Code. If certain conditions are met, nonemployee directors may be able to exercise SOS without incurring immediate tax liability. However, when the acquired shares are eventually sold, capital gain or loss taxes may apply. 3. Performance-based Stock Options: These stock options have additional performance criteria that need to be met before the options can be exercised. These criteria are typically tied to the company's financial performance, stock price, or other predetermined goals. Performance-based stock options aim to motivate and reward nonemployee directors for achieving specific targets. The Dallas Texas Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc. demonstrates the company's commitment to attracting and retaining exceptional directors. By offering stock options, the plan aligns the interests of the nonemployee directors with the long-term success of the company and fosters a sense of ownership among the board members.