Ohio 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 Ohio Nonemployee Director Stock Option Plan is a compensation program offered by U.S. Ban corp to its nonemployee directors residing in the state of Ohio. It provides these directors with the opportunity to receive stock options as part of their total compensation package. The plan aims to align the interests of directors with those of the company's shareholders, encouraging them to make decisions that benefit the long-term growth and success of U.S. Ban corp. Key features of the Ohio Nonemployee Director Stock Option Plan include: 1. Eligibility: The plan is available to nonemployee directors who serve on the board of directors of U.S. Ban corp and are residents of Ohio. It is designed to reward these directors for their commitment and contributions to the company. 2. Stock Options: Under the plan, eligible directors have the opportunity to receive stock options, which grant them the right to purchase a specified number of shares of U.S. Ban corp stock at a predetermined price, known as the exercise price. Stock options typically have a vesting period, during which directors must wait before exercising their options. 3. Vesting Schedule: The plan may specify a vesting schedule, which outlines the timeframe over which directors become eligible to exercise their stock options. For example, the plan may allow options to vest over multiple years in increments, motivating directors to remain engaged and committed to the company's success. 4. Exercise Period: Once the stock options have vested, directors have a specified exercise period in which they can purchase the shares at the predetermined exercise price. This period might be several years or until a specific date, depending on the terms of the plan. 5. Exercise Price: The exercise price is the price at which directors can purchase the U.S. Ban corp shares when exercising their stock options. It is typically set at or above the fair market value of the company's stock on the grant date, ensuring that directors have an opportunity for financial gain if the stock price increases over time. 6. Tax Considerations: The plan may address the tax implications of stock options for directors. It may outline the timing and method of taxation, as well as any withholding requirements. Directors are encouraged to consult with their tax advisors to fully understand the tax consequences of participating in the plan. It is important to note that the Ohio Nonemployee Director Stock Option Plan may have variations or different types based on specific terms and conditions that U.S. Ban corp establishes for different cohorts of nonemployee directors. These variations may include differences in the number of stock options granted, the vesting schedules, exercise periods, or other provisions aimed at aligning director compensation with the company's performance and long-term goals.

Ohio Nonemployee Director Stock Option Plan is a compensation program offered by U.S. Ban corp to its nonemployee directors residing in the state of Ohio. It provides these directors with the opportunity to receive stock options as part of their total compensation package. The plan aims to align the interests of directors with those of the company's shareholders, encouraging them to make decisions that benefit the long-term growth and success of U.S. Ban corp. Key features of the Ohio Nonemployee Director Stock Option Plan include: 1. Eligibility: The plan is available to nonemployee directors who serve on the board of directors of U.S. Ban corp and are residents of Ohio. It is designed to reward these directors for their commitment and contributions to the company. 2. Stock Options: Under the plan, eligible directors have the opportunity to receive stock options, which grant them the right to purchase a specified number of shares of U.S. Ban corp stock at a predetermined price, known as the exercise price. Stock options typically have a vesting period, during which directors must wait before exercising their options. 3. Vesting Schedule: The plan may specify a vesting schedule, which outlines the timeframe over which directors become eligible to exercise their stock options. For example, the plan may allow options to vest over multiple years in increments, motivating directors to remain engaged and committed to the company's success. 4. Exercise Period: Once the stock options have vested, directors have a specified exercise period in which they can purchase the shares at the predetermined exercise price. This period might be several years or until a specific date, depending on the terms of the plan. 5. Exercise Price: The exercise price is the price at which directors can purchase the U.S. Ban corp shares when exercising their stock options. It is typically set at or above the fair market value of the company's stock on the grant date, ensuring that directors have an opportunity for financial gain if the stock price increases over time. 6. Tax Considerations: The plan may address the tax implications of stock options for directors. It may outline the timing and method of taxation, as well as any withholding requirements. Directors are encouraged to consult with their tax advisors to fully understand the tax consequences of participating in the plan. It is important to note that the Ohio Nonemployee Director Stock Option Plan may have variations or different types based on specific terms and conditions that U.S. Ban corp establishes for different cohorts of nonemployee directors. These variations may include differences in the number of stock options granted, the vesting schedules, exercise periods, or other provisions aimed at aligning director compensation with the company's performance and long-term goals.