VALLEY NATIONAL GASES (VLG)

 

Awards of stock options under the Company’s stock option plan are designed to closely tie the long-term interests of the Company’s executives and its shareholders and to assist in the retention of executives. The Nominating and Compensation Committee selects the executive officers, if any, to receive stock options and determines the number of shares subject to each option. However, all grants of stock options are ultimately authorized by the Company’s Board of Directors. The Nominating and Compensation Committee’s determination of the size of option grants is generally intended to reflect an executive’s position with the Company and his or her contributions to the Company. Options generally have a three-year vesting period to encourage key employees to continue in the employ of the Company. The Committee reviews the outstanding unvested options of the key executives from time to time and may grant additional options to encourage the retention of key executives. No options were granted to any executive officer during the 2006 fiscal year.