Document:

Form of Non-Qualified Stock Option Agreement for Employees

    Exhibit
      10.3

    

     

    [Date]

     

    FORM
      OF NON-QUALIFIED STOCK OPTION AGREEMENT

    UNDER
      THE LINCOLN BANCORP

    2005
      STOCK OPTION PLAN

    FOR
      EMPLOYEES

     

    [Name
      of
      Optionee:]

     

    You
      are
      hereby granted the option to purchase a total of _______ shares of the Common
      Stock, without par value (“Common Stock”), of Lincoln Bancorp (the “Holding
      Company”) over the next ten years and one day pursuant to the Holding Company’s
      2005 Stock Option Plan (the “Plan”), on the following terms and
      conditions:

     

    1. The
      purchase price of the shares of Common Stock subject to this option is
      $___________ per share. You must pay this purchase price in cash at the time
      this option is exercised; provided, however that, with the approval of the
      Holding Company’s Stock Option Plan Committee (the “Committee”), you may
      exercise your option by tendering to the Holding Company whole shares of the
      Holding Company’s Common Stock owned by you, or any combination of whole shares
      of Holding Company Common Stock owned by you and cash, having a fair market
      value equal to the cash exercise price of the shares with respect to which
      the
      option is exercised by you. For this purpose, any shares so tendered shall
      be
      deemed to have a fair market value equal to the mean between the highest and
      lowest quoted selling prices for the shares on the date of exercise of the
      option (or if there were no sales on such date the weighted average of the
      means
      between the highest and lowest quoted selling prices on the nearest date before
      and the nearest date after the date of exercise of the option), as reported
      in
      The Wall Street Journal or a similar publication selected by the Committee.
      To
      exercise this option, you must send written notice to the Holding Company’s
      Secretary at the address noted in Section 10 hereof. Such notice shall state
      the
      number of shares in respect of which the option is being exercised, shall
      identify the option exercised as a non-qualified stock option, and shall be
      signed by the person or persons so exercising the option. Such notice shall
      be
      accompanied by payment of the full cash option price for such shares or, if
      the
      Committee has authorized the use of the stock swap feature provided for above,
      such notice shall be followed as soon as practicable by the delivery of the
      option price for such shares. Certificates evidencing shares of Common Stock
      will not be delivered to you until payment has been made. Under certain
      circumstances, the Plan permits you to deliver a notice to your broker to
      deliver the cash to the Holding Company upon the receipt of such cash from
      the
      sale of the Holding Company Common Stock. Contact the Secretary of the Holding
      Company for further information about this procedure if you are interested
      in
      it.

     

    2. The
      term
      of this option (the “Option Term”) shall be for a period of ten years and one
      day from the date of this letter, subject to earlier termination as provided
      in
      paragraphs 3 and 

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4
      hereof.
      The option may be exercised at any time, or from time to time, in whole or
      in
      part, until the Option Term expires, but in no case may fewer than 100 such
      shares be purchased at any one time, except to purchase a residue of fewer
      than
      100 shares.

     

    3. If
      you
      cease to be an employee of the Holding Company or any of its subsidiaries for
      any reason other than retirement, permanent and total disability, or death,
      this
      option shall terminate 30 days after your termination of employment. If your
      employment by the Holding Company or any of its subsidiaries is terminated
      by
      reason of retirement (which means such termination of employment as shall
      entitle you to early or normal retirement benefits under any then existing
      pension plan of the Holding Company or one of its subsidiaries), you may
      exercise this option to the extent it was exercisable at the date of your
      retirement in whole or in part within three years after such retirement, but
      not
      later than the date upon which this option would otherwise expire; provided,
      however, that if you are a director or a director emeritus of the Holding
      Company at the time of your retirement, the option shall continue to vest while
      you serve as director or director emeritus and you may exercise this option
      in
      whole or in part until the later of (a) three years after your date of
      retirement or (b) six months after your service as a director and/or director
      emeritus of the Holding Company terminates, but not later than the date upon
      which this option would otherwise expire. If you cease to be an employee of
      the
      Holding Company or any of its subsidiaries because of your permanent and total
      disability, you may exercise this option in whole or in part at any time within
      one year after such termination of employment by reason of such disability,
      but
      not later than the date upon which this option would otherwise
      expire.

     

    4. If
      you
      die while employed by the Holding Company or any of its subsidiaries, within
      three years after the termination of your employment because of retirement
      (or,
      if later, six months following your termination of service as a director or
      director emeritus of the Holding Company), or within one year after the
      termination of your employment (or termination of service as a director or
      director emeritus) because of permanent and total disability, this option may
      be
      exercised in whole or in part by your executor, administrator, or estate
      beneficiaries at any time within one (1) year after the date of your death
      but
      not later than the date upon which this option would otherwise
      expire.

     

    5. This
      option is non-transferable otherwise than by will or the laws of descent and
      distribution or pursuant to a qualified domestic relations order. It may be
      exercised only by you or your guardian, if any, or, if you die, by your
      executor, administrator, or beneficiaries of your estate who are entitled to
      your option.

     

    6. All
      rights to exercise this option will expire, in any event, ten years and one
      day
      from the date of this letter.

     

    7. Certificates
      evidencing shares issued upon exercise of this option may bear a legend setting
      forth among other things such restrictions on the disposition or transfer of
      the
      shares of the Holding Company as the Holding Company may deem consistent with
      applicable federal and state laws.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    8. Nothing
      in this option shall restrict the right of the Holding Company or its
      shareholders to terminate your service as a director at any time with or without
      cause.

     

    9. This
      option is subject to all the terms, provisions and conditions of the Plan,
      which
      is incorporated herein by reference, and to such regulations as may from time
      to
      time be adopted by the Committee. A copy of the Plan has been furnished to
      you
      and an additional copy may be obtained from the Holding Company. In the event
      of
      any conflict between the provisions of the Plan and the provisions of this
      letter, the terms, conditions and provisions of the Plan shall control, and
      this
      letter shall be deemed to be modified accordingly.

     

    10. All
      notices by you to the Holding Company and your exercise of the option herein
      granted, shall be addressed to Lincoln Bancorp, 925 Southfield Drive,
      Plainfield, Indiana 46168, Attention: Secretary, or such other address as the
      Holding Company may, from time to time, specify.

     

    11. This
      option may not be exercised until the Holding Company has been advised by
      counsel that all other applicable legal requirements have been met.

     

    

     

    
      	 	
              Very
                truly yours,

            
	 	 
	 	
              LINCOLN
                BANCORP

            
	 	 	 
	 	
              By:

            	 
	 	 	
              Jerry
                R. Engle, President and Chief Executive
                Officer

            

    

    

     

    
      	
              Accepted
                on the date above written:

               

            	 
	 	 
	
              [Name
                of Optionee]

               

            	 

    

     

     

     

     

    3Form of Non-Qualified Stock Option Agreement for Directors

    

      Exhibit
        10.4

      

      [Date]

       

      FORM
        OF NON-QUALIFIED STOCK OPTION AGREEMENT

      UNDER
        THE LINCOLN BANCORP

      2005
        STOCK OPTION PLAN

      FOR
        DIRECTORS

       

      [Name
        of
        Optionee:]

       

      You
        are
        hereby granted the option to purchase a total of _______ shares of the Common
        Stock, without par value (“Common Stock”), of Lincoln Bancorp (the “Holding
        Company”) over the next ten years and one day pursuant to the Holding Company’s
        2005 Stock Option Plan (the “Plan”), on the following terms and
        conditions:

       

      1. The
        purchase price of the shares of Common Stock subject to this option is
        $___________ per share. You must pay this purchase price in cash at the time
        this option is exercised; provided, however that, with the approval of the
        Holding Company’s Stock Option Plan Committee (the “Committee”), you may
        exercise your option by tendering to the Holding Company whole shares of
        the
        Holding Company’s Common Stock owned by you, or any combination of whole shares
        of Holding Company Common Stock owned by you and cash, having a fair market
        value equal to the cash exercise price of the shares with respect to which
        the
        option is exercised by you. For this purpose, any shares so tendered shall
        be
        deemed to have a fair market value equal to the mean between the highest
        and
        lowest quoted selling prices for the shares on the date of exercise of the
        option (or if there were no sales on such date the weighted average of the
        means
        between the highest and lowest quoted selling prices on the nearest date
        before
        and the nearest date after the date of exercise of the option), as reported
        in
        The Wall Street Journal or a similar publication selected by the Committee.
        To
        exercise this option, you must send written notice to the Holding Company’s
        Secretary at the address noted in Section 10 hereof. Such notice shall state
        the
        number of shares in respect of which the option is being exercised, shall
        identify the option exercised as a non-qualified stock option, and shall
        be
        signed by the person or persons so exercising the option. Such notice shall
        be
        accompanied by payment of the full cash option price for such shares or,
        if the
        Committee has authorized the use of the stock swap feature provided for above,
        such notice shall be followed as soon as practicable by the delivery of the
        option price for such shares. Certificates evidencing shares of Common Stock
        will not be delivered to you until payment has been made. Under certain
        circumstances, the Plan permits you to deliver a notice to your broker to
        deliver the cash to the Holding Company upon the receipt of such cash from
        the
        sale of the Holding Company Common Stock. Contact the Secretary of the Holding
        Company for further information about this procedure if you are interested
        in
        it.

       

      2. The
        term
        of this option (the “Option Term”) shall be for a period of ten years and one
        day from the date of this letter, subject to earlier termination as provided
        in
        paragraphs 3 and 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      4
        hereof.
        The option may be exercised at any time, or from time to time, in whole or
        in
        part, until the Option Term expires, but in no case may fewer than 100 such
        shares be purchased at any one time, except to purchase a residue of fewer
        than
        100 shares.

       

      3. If
        you
        are no longer a director or director emeritus of the Holding Company or its
        subsidiaries because of any reason other than death or disability, you may
        exercise this option, to the extent it was exercisable at the date you ceased
        to
        be a director, in whole or in part at any time within six (6) months after
        such
        date, but not later than the date upon which this option would otherwise
        expire.
        If you cease to be a director or director emeritus of the Holding Company
        or its
        subsidiaries because of your disability, you may exercise this option in
        whole
        or in part at any time within one (1) year after the date you ceased to be
        a
        director or director emeritus by reason of such disability, but not later
        than
        the date upon which this option would otherwise terminate.

       

      4. If
        you
        die while serving as a director or director emeritus of the Holding Company
        or
        its subsidiaries, within six months after you are no longer a director or
        director emeritus of the Holding Company or its subsidiaries for reasons
        other
        than disability, or within one (1) year after the date you ceased to be a
        director or director emeritus by reason of your disability, this option may
        be
        exercised in whole or in part by your executor, administrator, or estate
        beneficiaries at any time within one (1) year after the date of your death
        but
        not later than the date upon which this option would otherwise
        expire.

       

      5. This
        option is non-transferable otherwise than by will or the laws of descent
        and
        distribution or pursuant to a qualified domestic relations order. It may
        be
        exercised only by you or your guardian, if any, or, if you die, by your
        executor, administrator, or beneficiaries of your estate who are entitled
        to
        your option.

       

      6. All
        rights to exercise this option will expire, in any event, ten years and one
        day
        from the date of this letter.

       

      7. Certificates
        evidencing shares issued upon exercise of this option may bear a legend setting
        forth among other things such restrictions on the disposition or transfer
        of the
        shares of the Holding Company as the Holding Company may deem consistent
        with
        applicable federal and state laws.

       

      8. Nothing
        in this option shall restrict the right of the Holding Company or its
        shareholders to terminate your service as a director at any time with or
        without
        cause.

       

      9. This
        option is subject to all the terms, provisions and conditions of the Plan,
        which
        is incorporated herein by reference, and to such regulations as may from
        time to
        time be adopted by the Committee. A copy of the Plan has been furnished to
        you
        and an additional copy may be obtained from the Holding Company. In the event
        of
        any conflict between the provisions of the Plan and the provisions of this
        letter, the terms, conditions and provisions of the Plan shall control, and
        this
        letter shall be deemed to be modified accordingly.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      10. All
        notices by you to the Holding Company and your exercise of the option herein
        granted, shall be addressed to Lincoln Bancorp, 925 Southfield Drive,
        Plainfield, Indiana 46168, Attention: Secretary, or such other address as
        the
        Holding Company may, from time to time, specify.

       

      11. This
        option may not be exercised until the Holding Company has been advised by
        counsel that all other applicable legal requirements have been met.

       

      

       

      
        	 	
                Very
                  truly yours,

              
	 	 
	 	
                LINCOLN
                  BANCORP

              
	 	 	 
	 	
                By:

              	 
	 	 	
                Jerry
                  R. Engle, President and Chief Executive
                  Officer

              

      

      

       

      
        	
                Accepted
                  on the date above written:

                 

              	 
	 	 
	
                [Name
                  of Optionee]

                 

              	 

      

      

       

       

       

      3

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