Nebraska Nonemployee Director Stock Option Plan of U.S. Bancorp

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-CC-18-209A
• Format: Word; Rich Text

Description

18-209A 18-209A . . . Outside Director Stock Option Plan under which, in addition to initial grants at fair market value on date of grant, each outside director may elect to receive deferred compensation option in lieu of all or specified portion of any directors fees. Such deferred compensation options shall be for number of shares equal to dollar amount specified in optionee's deferral election divided by difference between (a) fair market value of a share and (b) greater of 40% of fair market value of a share as of grant date or $5.00; and exercise price shall be equal to greater of (x) 40% of fair market value of a share as of grant date or (y) $5.00

The Nebraska Nonemployee Director Stock Option Plan is a program designed specifically for nonemployee directors of U.S. Ban corp, a leading financial services company headquartered in Nebraska. This plan is aimed at incentivizing and rewarding the contributions made by nonemployee directors towards the organization's growth and success. By offering stock options to these directors, U.S. Ban corp aims to align their interests with long-term shareholder value and create a sense of ownership among them. Under the Nebraska Nonemployee Director Stock Option Plan, eligible nonemployee directors are granted the opportunity to purchase a certain number of shares of U.S. Ban corp's common stock at a predetermined exercise price. These stock options generally have a vesting period during which the options cannot be exercised, encouraging directors to remain on the board for a specific duration. Once the vesting period has passed, directors can exercise their stock options, potentially becoming stockholders themselves. The Nebraska Nonemployee Director Stock Option Plan of U.S. Ban corp offers various types of stock options to cater to different needs and preferences. These may include: 1. Nonqualified Stock Options (SOS): Nonqualified stock options are one type of stock option commonly offered under this plan. They allow directors to purchase shares of U.S. Ban corp's common stock at a predetermined price, regardless of their market value at the time of exercise. SOS are subject to certain tax implications and are not eligible for special tax treatment. 2. Incentive Stock Options (SOS): Another type of stock option that may be available under the plan is the incentive stock option. SOS provide favorable tax treatment, as the potential gains from the exercise and sale of the underlying stock can be treated as long-term capital gains. However, SOS require compliance with specific Internal Revenue Service (IRS) regulations regarding exercise price, holding periods, and other criteria. 3. Time-Vested Options: Time-vested stock options are granted to nonemployee directors upon joining the board or at regular intervals during their tenure. These options typically vest over a predetermined period of time, encouraging continued service and alignment with long-term goals. 4. Performance-based Options: In addition to time-based options, U.S. Ban corp may also offer performance-based stock options that are tied to specific performance criteria, such as financial targets or shareholder return. These options provide incentives for directors to actively contribute to the company's growth and achievement of key objectives. The Nebraska Nonemployee Director Stock Option Plan of U.S. Ban corp is a valuable tool for attracting and retaining talented nonemployee directors, fostering their commitment to the company's success, and aligning their interests with those of shareholders. The specific terms, conditions, and types of stock options may vary based on individual director agreements and overall corporate objectives.