San Jose California Nonemployee Directors Stock Option Plan of National Surgery Centers, Inc.

• Category: Corporations - Public - Stock Options
• State: Multi-State
• City: San Jose
• 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 San Jose California Nonemployee Directors Stock Option Plan is a compensation program allotted to non-employee directors of National Surgery Centers, Inc. It enables these directors to purchase shares of the company's stock at a predetermined price, known as the exercise or strike price. This plan is implemented to attract and retain competent directors who play a vital role in overseeing the company's operations, decision-making processes, and long-term strategic initiatives. Under the San Jose California Nonemployee Directors Stock Option Plan, participating directors are granted the right to purchase a specified number of company stocks within a designated time frame. The stock options awarded to nonemployee directors can be exercised after a predetermined vesting period, during which the director must wait before fully owning the purchased shares. This way, the plan aligns the interests of nonemployee directors with the shareholders, as it encourages them to contribute to the company's growth and profitability. The San Jose California Nonemployee Directors Stock Option Plan offers multiple types of stock options to suit the needs of different directors. These options include: 1. Incentive Stock Options (SOS): SOS provide favorable tax treatment to recipients, allowing them to defer any tax liability until they exercise the options and sell the acquired shares. However, SOS must comply with specific requirements outlined in the Internal Revenue Code. 2. Non-Qualified Stock Options (Nests): Nests do not meet all the requirements set by the Internal Revenue Code, resulting in less favorable tax treatment compared to SOS. With Nests, the difference between the exercise price and the fair market value at the time of exercise is subject to ordinary income tax. 3. Restricted Stock Units (RSS): RSS grant nonemployee directors the right to receive company stock upon achieving predetermined milestones or completing a specified vesting period. RSS represents a promise to deliver company shares in the future, without the requirement of an exercise price. 4. Performance Stock Units (Plus): Plus link the receipt of company stock to the attainment of specific performance goals established by the company. Directors must meet or exceed these objectives to be eligible for the stock units. By offering these various types of stock options, the San Jose California Nonemployee Directors Stock Option Plan promotes a flexible and customizable approach to compensating nonemployee directors, taking into account individual circumstances and preferences. It serves as a valuable tool for attracting talented directors, aligning their interests with long-term company growth, and incentivizing their contributions to National Surgery Centers, Inc.'s success.

San Jose California Nonemployee Directors Stock Option Plan is a compensation program allotted to non-employee directors of National Surgery Centers, Inc. It enables these directors to purchase shares of the company's stock at a predetermined price, known as the exercise or strike price. This plan is implemented to attract and retain competent directors who play a vital role in overseeing the company's operations, decision-making processes, and long-term strategic initiatives. Under the San Jose California Nonemployee Directors Stock Option Plan, participating directors are granted the right to purchase a specified number of company stocks within a designated time frame. The stock options awarded to nonemployee directors can be exercised after a predetermined vesting period, during which the director must wait before fully owning the purchased shares. This way, the plan aligns the interests of nonemployee directors with the shareholders, as it encourages them to contribute to the company's growth and profitability. The San Jose California Nonemployee Directors Stock Option Plan offers multiple types of stock options to suit the needs of different directors. These options include: 1. Incentive Stock Options (SOS): SOS provide favorable tax treatment to recipients, allowing them to defer any tax liability until they exercise the options and sell the acquired shares. However, SOS must comply with specific requirements outlined in the Internal Revenue Code. 2. Non-Qualified Stock Options (Nests): Nests do not meet all the requirements set by the Internal Revenue Code, resulting in less favorable tax treatment compared to SOS. With Nests, the difference between the exercise price and the fair market value at the time of exercise is subject to ordinary income tax. 3. Restricted Stock Units (RSS): RSS grant nonemployee directors the right to receive company stock upon achieving predetermined milestones or completing a specified vesting period. RSS represents a promise to deliver company shares in the future, without the requirement of an exercise price. 4. Performance Stock Units (Plus): Plus link the receipt of company stock to the attainment of specific performance goals established by the company. Directors must meet or exceed these objectives to be eligible for the stock units. By offering these various types of stock options, the San Jose California Nonemployee Directors Stock Option Plan promotes a flexible and customizable approach to compensating nonemployee directors, taking into account individual circumstances and preferences. It serves as a valuable tool for attracting talented directors, aligning their interests with long-term company growth, and incentivizing their contributions to National Surgery Centers, Inc.'s success.