exv10w81



 







Exhibit 10.81




	 	 	 
	 
	 
	 	 
	 

	 	CapitalSource Inc.
	 

	 	ID: 35-2206895
	NOTICE OF GRANT OF STOCK OPTIONS

	 	4445 Willard Avenue
	 

	 	Twelfth Floor
	 

	 	Chevy Chase, MD 20815
	 
	 	 
	 
	 
	 	 
	[Name]

	 	Option Number:
	[Address]

	 	Plan:
	 	 	ID:

	 
	 	 
	 
	 
	 	 




Effective [DATE], you have been granted a(n) Non-Qualified Stock Option to by [NUMBER] shares of
CapitalSource Inc. (the Company) stock at [NUMBER] per share.



The total option price will become fully vested on the date shown




	 	 	 	 	 	 	 
	Shares	 	Vest Type	 	Full Vest	 	Expiration
	 
	 	 	 	 	 	 





	 	 	 
	 
	 
	 	 
	By your signature and the Company’s signature below, you and the Company agree that these options
are granted under and governed by the terms and conditions of the Company’s Third Amended and
Restated Equity Incentive Plan and the Option Agreement, all of which are available on the
company’s intranet.
	 
	 	 
	 





	 	 	 	 	 
	 
	 

	 	 	 	 
	CapitalSource Inc.

	 	 	 	Date
	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	Date







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CAPITALSOURCE INC.

THIRD AMENDED AND RESTATED EQUITY INCENTIVE PLAN




NON-QUALIFIED OPTION AGREEMENT




	 	 	 
	Non-qualified Option

	 	This Agreement evidences an award
of a Stock Option exercisable for
that number of shares of Stock set
forth on your Notice of Grant of
Stock Options to which this
Agreement is attached (“Grant
Notice”) and subject to the
vesting and other conditions set
forth herein, in the Plan and on
the Grant Notice. This option is
not intended to be an incentive
option under Section 422 of the
Internal Revenue Code and will be
interpreted accordingly.
	 
	 	 
	Transfer of Stock Option

	 	During your lifetime, only you
(or, in the event of your legal
incapacity or incompetency, your
guardian or legal representative)
may exercise the Stock Option.
The Stock Option may not be sold,
assigned, transferred, pledged,
hypothecated or otherwise
encumbered, whether by operation
of law or otherwise, nor may the
Stock Option be made subject to
execution, attachment or similar
process.
	 
	 	 
	 

	 	If you attempt to do any of these
things, this Stock Option will
immediately become forfeited.
	 
	 	 
	 

	 	Notwithstanding these restrictions
on transfer, the Board or the
Committee may authorize, in its
sole discretion, the transfer of a
vested Stock Option (in whole or
in part) to a member of your
immediate family or a trust for
the benefit of your immediate
family.
	 
	 	 
	Vesting

	 	Your Stock Option shall vest in
accordance with the vesting
schedule shown in the Grant Notice
so long as you continue in Service
on the vesting dates set forth on
the Grant Notice and is
exercisable only as to its vested
portion. The Stock Option may be
exercised, in whole or in part, to
purchase a whole number of vested
shares of Stock of not less than
100 shares, unless the number of
vested shares purchased is the
total number available for
purchase under the option, by
following the procedures set forth
in the Plan and in this Agreement.
	 
	 	 
	 

	 	Notwithstanding your vesting
schedule, the Stock Option will
become 100% vested upon your
termination of Service due to your
death or Disability if you have
provided Services by the Company
for at least one (1) year at the
time your Service terminates.
	 
	 	 
	Forfeiture of Unvested Stock Options /
Term

	 	Unless the termination of your
Service triggers accelerated
vesting of your Stock Option
pursuant to the terms of this
Agreement, the Plan, or any other
written agreement between the
Company (or any Affiliate) and
you, you will automatically
forfeit to the Company those
portions






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	 	of the Stock Option that
have not yet vested in the event
your Service terminates for any
reason.
	 
	 	 
	Expiration of Vested Options After
Service Terminates

	 	If your Service terminates for any
reason, other than death,
Disability or Cause, then the
vested portion of your Stock
Option will expire at the close of
business at Company headquarters
on the 90th day after your
termination date.
	 
	 	 
	 

	 	If your Service terminates because
of your death or Disability, or if
you die during the 90-day period
after your termination for any
reason (other than
Cause) , then the vested
portion of your Stock Option will
expire at the close of business at
Company headquarters on the date
twelve (12) months after the date
of your death or termination for
Disability. During that twelve
(12) month period, your estate or
heirs may exercise the vested
portion of your Stock Option.
	 
	 	 
	 

	 	If your Service is terminated for
Cause, then you shall immediately
forfeit all rights to your entire
Stock Option and the Stock Option
shall immediately expire.
	 
	 	 
	 

	 	In all events, your Stock Option
will expire on the Expiration Date
shown on the Grant Notice. Your
Stock Option will expire earlier
if your Service terminates, as
described herein.
	 
	 	 
	Forfeiture of Rights

	 	If you should take actions in
violation or breach of or in
conflict with any non-competition
agreement, any agreement
prohibiting solicitation of
employees or clients of the
Company or any Affiliate thereof
or any confidentiality obligation
with respect to the Company or any
Affiliate thereof or otherwise in
competition with the Company or
any Affiliate thereof, the Company
has the right to cause an
immediate forfeiture of your
rights to this Stock Option and
the Stock Option shall immediately
expire.
	 
	 	 
	 

	 	In addition, if you have exercised
any options during the two year
period prior to your actions, you
will owe the Company a cash
payment (or forfeiture of shares)
in an amount determined as
follows: (1) for any Shares that
you have sold prior to receiving
notice from the Company, the
amount will be the proceeds
received from the sale(s), less
the option exercise price, and (2)
for any Shares that you still own,
the amount will be the number of
Shares owned times the Fair Market
Value of the Shares on the date
you receive notice from the
Company, less the option exercise
price (provided, that the Company
may require you to satisfy your
payment obligations hereunder
either by forfeiting and returning
to the Company the shares or any
other shares or making a cash
payment or a combination of these
methods as determined by the
Company in its sole discretion).







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	Leaves of Absence

	 	For purposes of this
Agreement, your Service does not
terminate when you go on a bona
fide employee leave of absence
that was approved by the Company
in writing if the terms of the
leave provide for continued
Service crediting, or when
continued Service crediting is
required by applicable law. Your
Service terminates in any event
when the approved leave ends
unless you immediately return to
active employee work.
	 
	 	 
	 

	 	The Company determines, in
its sole discretion, which leaves
count for this purpose, and when
your Service terminates for all
purposes under the Plan.
	 
	 	 
	Notice of Exercise

	 	When you wish to exercise this
Stock Option, you must exercise in
a manner required or permitted by
the Company.
	 
	 	 
	 

	 	If someone else wants to exercise
this Stock Option after your
death, that person must prove to
the Company’s satisfaction that he
or she is entitled to do so.
	 
	 	 
	Form of Payment

	 	When you exercise your Stock
Option, you must include payment
of the option price indicated on
the Grant Notice for the shares
you are purchasing. Payment may be
made in one (or a combination) of
the following forms:
	 
	 	 
	 

	 	    •     Cash, your personal check,
a cashier’s check, a money order
or another cash equivalent
acceptable to the Company.

	 
	 	 
	 

	 	    •     Shares of Stock which have
already been owned by you for more
than six months and which are
surrendered to the Company. The
Fair Market Value of the shares as
of the effective date of the
option exercise will be applied to
the option price.

	 
	 	 
	 

	 	    •    To the extent a public
market exists for the shares of
Stock as determined by the
Company, delivery (in a form
prescribed or accepted by the
Company) of an irrevocable
direction to a licensed securities
broker acceptable to the Company
to sell shares and to deliver all
or part of the sale proceeds to
the Company in payment of the
aggregate option price and any
withholding taxes.

	 
	 	 
	Evidence of Issuance

	 	The issuance of the shares upon
exercise of this Stock Option
shall be evidenced in such a
manner as the Company, in its
discretion, will deem appropriate,
including, without limitation,
book-entry, registration or
issuance of one or more share
certificates.






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	Withholding Taxes

	 	You agree as a condition of this
grant that you will make
acceptable arrangements to pay any
withholding or other taxes that
may be due as a result of the
Stock Option exercise or sale of
Stock acquired under this Stock
Option. In the event that the
Company determines that any
federal, state, local or foreign
tax or withholding payment is
required relating to the exercise
of this Stock Option or sale of
Stock arising from this Stock
Option, the Company shall have the
right to require such payments
from you, or withhold such amounts
from other payments due to you
from the Company or any Affiliate
(including withholding the
delivery of vested shares of Stock
otherwise deliverable under this
Agreement).
	 
	 	 
	Retention Rights

	 	This Agreement and this Stock
Option do not give you the right
to be retained by the Company (or
any Affiliate) in any capacity.
Unless otherwise specified in an
employment or other written
agreement between the Company (or
any Affiliate) and you, the
Company (and any Affiliate)
reserve the right to terminate
your Service at any time and for
any reason.
	 
	 	 
	Stockholder Rights

	 	You, or your estate or heirs, have
no rights as a shareholder of the
Company until the Stock has been
issued upon exercise of your Stock
Option and either a certificate
evidencing your Stock has been
issued or an appropriate entry has
been made on the Company’s books.
No adjustments are made for
dividends, distributions or other
rights if the applicable record
date occurs before your
certificate is issued (or an
appropriate book entry is made),
except as described in the Plan.
	 
	 	 
	 

	 	Your Stock Option shall be subject
to the terms of any applicable
agreement of merger, liquidation
or reorganization in the event the
Company is subject to such
corporate activity.
	 
	 	 
	Applicable Law

	 	This Agreement will be interpreted
and enforced under the laws of the
State of Delaware, other than any
conflicts or choice of law rule or
principle that might otherwise
refer construction or
interpretation of this Agreement
to the substantive law of another
jurisdiction.
	 
	 	 
	The Plan

	 	The text of the Plan is
incorporated in this Agreement by
reference. Certain capitalized
terms used in this Agreement are
defined in the Plan, and have the
meaning set forth in the Plan.
	 
	 	 
	 

	 	This Agreement, the associated
Grant Notice and the Plan
constitute the entire
understanding between you and the
Company regarding this Stock
Option. Any prior agreements,
commitments or negotiations
concerning this grant are
superseded; except that any
written employment,
confidentiality, non-competition
and/or severance agreement between
you and the Company (or any
Affiliate) shall






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	 	supersede this
Agreement with respect to its
subject matter.
	 
	 	 
	Data Privacy

	 	In order to administer the
Plan, the Company may process
personal data about you. Such
data includes, but is not limited
to, information provided in this
Agreement or the Grant Notice and
any changes thereto, other
appropriate personal and financial
data about you such as your
contact information, payroll
information and any other
information that might be deemed
appropriate by the Company to
facilitate the administration of
the Plan.
	 
	 	 
	 

	 	By accepting this grant, you
give explicit consent to the
Company to process any such
personal data.





By signing the Grant Notice, you agree to all of the terms and conditions described above and in
the Plan.




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