Document:

Exhibit 10.13

 

NEXTCURE, INC.

NON-EMPLOYEE DIRECTOR COMPENSATION PROGRAM

 

This NextCure, Inc. (the “Company”) Non-Employee Director Compensation Program (this “Program”) sets forth the arrangements for compensation for members of the Board of Directors of the Company (the “Board”) who are not employees or consultants of the Company (the “Non-Employee Directors”).  All compensation paid pursuant to this Program is subject to the terms and provisions of the NextCure, Inc. 2019 Omnibus Incentive Plan (the “Plan”), including, but not limited to, the requirement under the Plan that all compensation paid by the Company to any Non-Employee Director in any calendar year shall not exceed $750,000, or $1,000,000 in the calendar year in which the applicable Non-Employee Director is elected or appointed to the Board.

 

Cash Compensation

 

Non-Employee Directors shall be entitled to receive the following annual cash compensation, payable quarterly in arrears:

 

·                  A $35,000 retainer for each member (non-Chair)

·                  A $65,000 retainer for the Chair of the Board

·                  A $7,500 retainer for each member of the Audit Committee (non-Chair)

·                  A $15,000 retainer for the Chair of the Audit Committee

·                  A $5,000 retainer for each member of the Compensation Committee (non-Chair)

·                  A $10,000 retainer for the Chair of the Compensation Committee

·                  A $4,000 retainer for each member of the Nominating and Corporate Governance Committee (non-Chair)

·                  An $8,000 retainer for the Chair of the Nominating and Governance Committee

 

Retainers shall be paid promptly after the conclusion of the applicable calendar quarter, but in no event later than 30 days after the end of the applicable calendar quarter.  In the event a Non-Employee Director does not serve as a Non-Employee Director, or in the applicable positions described above, for an entire calendar quarter, the retainer paid to such Non-Employee Director shall be prorated for the portion of such calendar quarter actually served as a Non-Employee Director, or in such position, as applicable.

 

Equity Compensation

 

Each Non-Employee Director shall be entitled to receive the following awards under the Plan, to be granted annually, in connection with the Annual Meeting of the Stockholders:

 

·                  An annual stock option award for each Non-Employee Director that is exercisable for 11,000 shares of the Company’s common stock, that vests on the earlier of one year from the grant date of the award or the day of the next Annual Meeting of the Stockholders, subject to the Non-Employee Director’s continued service on the Board until such vesting date; and

 

 

·                  An initial stock option award for each Non-Employee Director newly elected to the Board that is exercisable for 22,000 shares of the Company’s common stock, that vests in three equal, annual installments commencing on the grant date of the award, subject to the Non-Employee Director’s continued service on the Board through the applicable vesting date.

 

All stock option awards under this Program will be non-statutory stock options, with an exercise price per share equal to 100% of the Fair Market Value (as defined in the Plan) of the underlying common stock on the date of grant, and shall have a fixed term of 10 years (subject to earlier termination in connection with a termination of service as provided in the Plan, provided that upon a termination of service other than for cause, the post termination exercise period will be 12 months from the date of termination). Annual stock option grants for Non-Employee Directors who were initially elected in the 12 months preceding the annual grant date will be pro-rated on a monthly basis for time in service.

 

Expenses

 

The reasonable expenses incurred by Non-Employee Directors in connection with attendance at Board or committee meetings will be reimbursed upon submission of appropriate substantiation in accordance with the Company’s policies and practices.

 

Effectiveness

 

This Program is effective upon the closing of the Company’s initial public offering and may be amended at any time in the sole discretion of the Board.hstm-ex1018_250.htm

 

EXHIBIT 10.18

HealthStream, Inc. 

Board of Directors 

Compensation Committee

2019 Executive and Corporate Management Cash Incentive Bonus Plan 

 

Overview:

 

Pursuant to the HealthStream, Inc. 2016 Omnibus Incentive Plan, the Compensation Committee (the “Committee”) of the Board of Directors of HealthStream, Inc. (the “Company”) hereby establishes this 2019 Executive and Corporate Management Cash Incentive Bonus Plan (the “Plan”).  The Plan is the cash-based, short-term incentive portion of HealthStream's incentive compensation structure for certain executive officers, as well as the vice presidents, associate vice presidents, and directors who are assigned to a corporate function, as opposed to a business unit specific function (such individuals referred to collectively as “Management”).  The purpose of the Plan is to specify appropriate opportunities to earn a cash bonus with respect to the Company’s 2019 fiscal year in order to reward Management for the Company’s financial performance during fiscal year 2019 and to further align their interests with those of the shareholders of the Company.

 

Definitions:

 

	
 
	
•
	
Actual Operating Income before bonuses – The Company’s Operating Income achieved in fiscal 2019, excluding bonuses. 

 

	
 
	
•
	
Annual Bonus – The annual bonus paid to Management after the Committee determines the applicable financial measure has been achieved.

 

	
 
	
•
	
Incremental Operating Income - Actual Operating Income before bonuses less Target Operating Income.

 

	
 
	
•
	
Operating Income – The Company’s operating income for the 2019 fiscal year calculated in accordance with generally accepted accounting principles under ASC 606 and consistent with the Company’s past practice and presented in the Company’s audited financial statements, provided the following are excluded from the calculation of Operating Income: (i) acquisition and divestiture expenses incurred within the calendar year to the extent such expenses are in excess of the amount originally allocated to such purpose in the Company’s 2019 budget; and (ii) operating income (loss) from acquisitions and divestitures consummated during the calendar year (the “Excluded Expenses”).  The Committee has the negative discretion to include the Excluded Expenses in the calculation of Operating Income. 

 

	
 
	
•
	
Target Operating Income – Operating Income for the 2019 fiscal year in an amount established by the Committee by resolution within the first 90 days of the Company’s 2019 fiscal year.

 

 

2019 Financial Measure and Plan Principles:

 

	
 
	
1.
	
The financial measure for 2019 is Operating Income - Operating Income will be the financial measure for 2019.

 

	
 
	
2.
	
The Annual Bonus is funded by Incremental Operating Income - The Annual Bonus will be earned from the amount of Incremental Operating Income. 

 

The Plan

 

Eligibility

 

Three groups are eligible for participation in the Plan:

 

	
 
	
•
	
Executive Team – The maximum Annual Bonus that Executive Team members, other than the Chief Executive Officer of HealthStream and the President & Chief Operating Officer of HealthStream, shall be eligible to receive under the Plan shall be an amount equal to 30% of such member’s base salary; provided the CEO and the President & COO shall be eligible to receive an amount equal to 40% of their 

 

 

	
 
		
base salary.  Unless otherwise excluded below, the Executive Team eligible for participation includes the Chief Executive Officer, President & Chief Operating Officer, and Senior Vice Presidents of the Company.

 

	
 
	
•
	
      Leadership Team (Vice Presidents and Associate Vice Presidents) – The   

      maximum Annual Bonus that Vice Presidents and Associate Vice Presidents of     

      the Business Unit shall be eligible to receive under the Plan shall be an amount 

      equal to 16% of such Vice President or Associate Vice President’s base salary.

 

	
 
	
•
	
Directors - The maximum Annual Bonus that Directors of the Business Unit shall be eligible to receive under the Plan shall be an amount equal to 4% of such Director’s base salary.  For purposes of clarity, Directors do not include members of the Board of Directors, but are management-level employees of the Company.

 

	
 
	
•
	
      Employment Requirements – Participants in the Plan who were employed with   

the Company through December 31, 2019 shall be eligible to receive bonus payments, if any, under the Plan regardless of whether such employees are employed on the date such payments are actually made.  Notwithstanding the foregoing, in the case of death or disability, the participant’s pro rata share from January 1, 2019 through the date of participant’s death or disability shall be awarded.

 

	
 
	
•
	
Exclusions - Members of the Executive Team with a commission based incentive compensation plan shall not be eligible to participate in the Plan.  Additionally, members of the Executive Team who are eligible to participate in any one of the following shall not be eligible to participate in the Plan:  (i) the 2019 Workforce Development Cash Bonus Incentive Plan, or (ii) the 2019 Provider Solutions Cash Bonus Incentive Plan,.

 

Payout 

 

Payouts under the Plan shall be determined as follows:

 

	
 
	
1.
	
Incremental Operating Income will be determined by subtracting the Target Operating Income from Actual Operating Income before bonuses.  The Incremental Operating Income will then be multiplied by 30% of base salary for each member of the Executive Team other than the Chief Executive Officer and the President & COO, 40% of base salary for the CEO and the President & COO, 16% of base salary for each member of the Leadership Team, and 4% of base salary for each Director.

 

	
 
	
2.
	
Any Annual Bonus payouts made to the Executive Team, Leadership Team, or Directors pursuant to the Plan shall be payable at such time as bonuses are paid generally to executive officers of the Company.

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