Document:

exv10w15

 

Exhibit 10.15

SECOND AMENDMENT OF THE

2003 NON-QUALIFIED STOCK OPTION PLAN

FOR

RELIANCE BANCSHARES, INC.

     THIS SECOND AMENDMENT of the 2003 Non-Qualified Stock Option Plan dated January 15, 2003 (the
“Plan”) for Reliance Bancshares, Inc. (herein called the “Company”) hereby deletes paragraph 9 of
the Plan and adopts a new paragraph 9 of the Plan which reads in its entirety as follows:

     9. Assignments. Any option granted under this Plan shall be exercisable only by the
participant to whom granted during his or her lifetime and shall not be assignable or transferable
otherwise than by will or by the laws of descent and distribution, provided, however, that any
participant may assign to or designate that the option shares or a portion of the same shall be
titled in the name of a trust, employee benefit plan, individual retirement account or other entity
in which the participant is the sole beneficiary, owner or designee or in joint names with a
spouse.

     The foregoing Second Amendment of the Plan was approved by the Board of Directors of the
Company on and is effective as of July 21, 2004 and shall automatically amend and revise all 2003
Non-Qualified Stock Option Agreements executed with Directors or Advisory Directors who are covered
by the Plan.exv10w16

 

EXHIBIT 10.16

2004 NON-QUALIFIED STOCK OPTION PLAN

FOR

RELIANCE BANCSHARES, INC.

STATEMENT of the 2004 Non-Qualified Stock Option Plan dated July 21, 2004 for Reliance
Bancshares, Inc (herein called the “Company”).

     1. Purpose. This 2004 Non-Qualified Stock Option Plan (the “Plan”) is intended to advance
the interests of the Company and its subsidiary banks by rewarding the directors and advisory
directors of each of the Company and its subsidiary banks for past service and to induce said
directors upon whose judgment, initiative and effort the Company is partially dependent for its
successful operation, to continue to serve in that capacity and to make themselves available for
re-election or reappointment as directors and advisory directors and to encourage their attendance
at meetings and other functions of the Company and its subsidiary banks. The Board of Directors of
the Company has increased the frequency of its meetings and is aware of the increased
responsibilities and duties of the Company directors and the bank directors, all resulting from the
rapid expansion of the Company and its subsidiary banks. For these reasons, the Board has
concluded that additional compensation should be provided the directors and it is of the opinion
that stock options are the most desirable means of accomplishing this objective. Options granted
under the Plan are intended to be options which do not meet the requirements of Section 422 of the
Internal Revenue Code of 1986.

     2. Option Stock. Options under this Plan shall pertain to authorized and unissued shares of
$0.50 par value, Class A common stock of the Company (hereinafter sometimes called “option
shares”). The total number of shares available for options under this Plan shall not exceed
120,000 in the aggregate. The limitations established by the preceding sentence shall be subject
to adjustment as provided in paragraph 8. The Company shall at all times while this Plan is in
force reserve such number of shares of $0.50 par value, Class A common stock as will be sufficient
to satisfy the requirements of this Plan.

     3. Participants. Each director of the Company on September 1, 2004 is hereby granted an
option to purchase 5,000 shares of $0.50 par value, Class A common stock of the Company; each
director of Reliance Bank on September 1, 2004 is hereby granted an option to purchase 3,000 shares
of $0.50 par value, Class A common stock of the Company; each director of The Bank of Godfrey on
September 1, 2004 is hereby granted an option to purchase 1,000 shares of $0.50 par value, Class A
common stock of the Company; and each advisory director of any subsidiary bank of the Company on
September 1, 2004 is hereby granted an option to purchase 500 shares of $0.50 par value, Class A
common stock of the Company. The Board of Directors of the Company (the “Board”) shall have the
right to grant options to new legal directors and new advisory directors upon terms, conditions
and prices as determined by the Board from time to time.

     4. Price. The option price of the Company’s $0.50 par value, Class A common stock granted to
initial participants under this Plan as described in paragraph 3 shall be $14.50 per share. Later
grants may have different option prices as determined by the Board.

     5. Time of Exercise. There shall be a delay in vesting of any options initially granted
under this Plan until the following conditions are satisfied, including (a) any participant shall
have served as a director or advisory director for a minimum of two (2) years after election or
appointment as a director or advisory director or after the Company obtains control of a subsidiary
bank; (b) the participant holds $0.50 par value Class A common stock equal to the number of option
shares granted hereunder in his or her name or in joint names or in the name of an affiliate or
with a beneficial interest in the participant, in addition to qualifying shares applicable to the
Company’s 2001 and 2003 Non-Qualified Stock Option Plans, if any; and (c)

 

 

the participant achieves an attendance record over a two-year period, namely the two-year period
starting September 1, 2004 and ending August 31, 2006 that complies with the following:

	 	(i)	 	Reliance Bank and The Bank of Godfrey – Legal directors may miss not
more than two (2) regularly scheduled directors meetings in either period of twelve
(12) consecutive months; if a third meeting is missed in either period, then 25% of
the options shall not vest; and if a fourth meeting is missed in either period, then
100% of the options shall not vest;
	 
	 	(ii)	 	Reliance Bank  — Advisory directors may miss no more than two (2)
regularly scheduled advisory directors meetings in either period of twelve (12)
consecutive months; since only nine (9) meetings are scheduled, if a third meeting is
missed in either period, then 100% of the options shall not vest;
	 
	 	(iii)	 	Reliance Bancshares, Inc. – Legal directors may miss no more than
two (2) regularly scheduled directors meetings in either period of twelve (12)
consecutive months; if a third meeting is missed in either period, then 25% of the
options shall not vest; and if a fourth meeting is missed in either period, then 100%
of the options shall not vest; and
	 
	 	(iv)	 	Other Subsidiary Banks – The Board may impose similar attendance
requirements as it deems appropriate for any options granted legal or advisory
directors under this Plan.

Attendance for purposes of vesting shall begin September 1, 2004 and only the Board may grant
excused meetings under the Plan. When fully vested, the options may be exercised in whole or in
part at any time, or from time to time thereafter until the expiration or termination of the
options. All options hereunder shall expire on July 21, 2014.

     6. Transfer of Ownership. In the event that there is a transfer of ownership of the
Company, the limitations provided in paragraphs 5(a) and 5(c) shall become null and void and all
options shall become immediately exercisable in full, provided the limitations imposed in paragraph
5(b) have been met. A transfer of ownership shall occur upon the change in ownership or control of
at least 51% of the issued and outstanding shares of Class A common stock, $0.50 par value, of the
Company, or upon the execution of an agreement by the Company or its controlling shareholders
providing for the merger, consolidation, reorganization or other form of business combination of
the Company, or the sale or exchange of all or substantially all of the assets of the Company
unless the current business of the Company is continued following any such transaction by a
resulting entity (which may be, but need not be, the Company) and the shareholders of the Company
immediately prior to such transaction hold directly or indirectly at least two-thirds of the voting
power of the resulting entity. There is also a transfer of ownership if the shareholders of the
Company adopt a plan of complete or substantial liquidation or an agreement providing for the
distribution of all or substantially all of its assets.

     7. Method of Granting. The Secretary or President of the Company shall forthwith send notice
thereof to each of the participants, in such form as the Board of Directors shall approve, stating
the number of shares optioned to such participant and the price per share, and attaching a copy of
this Statement of the 2004 Non-Qualified Stock Option Plan. The date indicated in the notice shall
be the date of granting the option to such participant for all purposes of this Plan. The notice
may be accompanied by an option agreement to be signed by the Company and by the participant if the
Board shall so direct, which shall be in such form and shall contain such provisions as the Board
shall deem advisable.

 - 2 - 

 

     8. Adjustments of the Option Stock.

     (a) If, at any time, or from time to time, after the grant but prior to the exercise of all
the or any part of an option under this Plan, the Company shall effect a subdivision or
combination of its $0.50 par value, Class A common stock, or other option shares as that term is
used below, into a greater or smaller number of shares, or a reclassification of such $0.50 par
value, Class A common stock or other option shares into shares of another class or into securities,
or the Company shall be consolidated or merged with any other corporation, then there shall be
thereafter deliverable by the Company, or by the corporation surviving a merger or consolidation,
upon any exercise of such option, in lieu of each $0.50, par value Class A common stock or other
option shares and for the same price, such shares or securities as shall have been substituted for
such $0.50 par value, Class A common stock or other option shares in connection with such
subdivision, combination, reclassification, consolidation, or merger. Such substituted shares or
securities shall be deemed option shares for the purpose of this Plan.

     (b) Notwithstanding anything stated above to the contrary, upon the occasion of a merger or
consolidation of the Company with any other corporation, any options previously granted under this
Plan which shall not have been exercised in the manner described below shall be deemed canceled,
unless the surviving corporation shall assume the options under this Plan or shall issue substitute
options in place of them.

     (c) If at any time, or from time to time, after the grant but prior to the exercise of all or
any part of the options under this Plan, the Board shall declare in respect of the Company’s $0.50
par value, Class A common stock or other option shares any dividend payable in shares of the
Company of any class or any stock split, then there shall be deliverable upon any exercise
thereafter of any option under this Plan, in addition to each option share and for no additional
price, such additional share or shares as shall have been distributable as a result of such share
dividend or split in respect of an option share; except that fractional shares shall not be so
deliverable. Any such share dividend or split shall be deemed part of the option shares for the
purposes of this Plan.

     9. Assignments. Any option granted under this Plan shall be exercisable only by the
participant to whom granted during his or her lifetime and shall not be assignable or transferable
otherwise than by will or by the laws of descent and distribution, provided, however, that any
participant may assign to or designate that the option shares or a portion of the same shall be
titled in the name of a trust, employee benefit plan, individual retirement account or other entity
in which the participant is the sole beneficiary, owner or designee or in joint names with a
spouse.

     10. Severance, Death.

     (a) In the event that a participant shall cease to be a director or advisory director of the
Company or of a subsidiary bank of the Company for any reason except death or dismissal for cause,
any vested option granted to him or her under this Plan which shall not have been then exercised in
the manner described below, shall be exercisable by the participant within one (1) year after
severance, or until the expiration of the option as provided in paragraph 5, if that be sooner
except that the Board may in its absolute discretion extend the privilege to such participant to
exercise any options previously granted to him or her which have not then expired.

     (b) In the event that a participant shall die while a director or advisory director of the
Company or of a subsidiary bank of the Company, any vested option granted to him or her under this
Plan which shall not have been exercised in the manner described below, at the time of his or her
death, shall be exercisable by the estate of the participant or by any person who acquired such
option by bequest or inheritance from the participant, within three (3) years after the death of
the participant, or until the expiration of the option as provided in paragraph 5, if that be
sooner. References to the “participant” that follow shall be deemed to include any person entitled
to exercise the option after the death of the participant under the terms of this paragraph. Upon
death an option shall be deemed fully vested.

 - 3 - 

 

     (c) In the event that a legal director of the Company or of a subsidiary bank of the Company
shall cease to be such a director and shall immediately become an advisory director of the Company
or of a subsidiary bank of the Company or if an advisory director of either shall become a legal
director of either, such a participant shall not forfeit his or her stock options granted under
this Plan, whether fully or partially vested under this Plan and such participant shall continue to
have or own said stock options in his or her new capacity as a legal or advisory director
regardless of the number of options, subject to the terms and conditions of this Plan and prior
service and attendance as a legal or advisory director shall carry over to the new position of said
participant with regard to vesting.

     11. Manner of Exercise. Any option shares granted under this Plan may be purchased by
written notice of election delivered prior to the expiration of the option to the Company at its
principal office by hand delivery, telecopier, electronic messaging system or certified mail,
stating the number of shares with respect to which the option is being exercised and specifying a
date, not less than five nor more than 15 days after the date of such notice, on which the shares
will be taken and payment made for them.

     12. Closing. On the date specified in the notice of election referred to above, or an
adjourned date provided for later in this paragraph, the Company shall deliver or cause to be
delivered to the participant certificates for the number of shares with respect to which the option
is being exercised, against payment for them and delivery to the Company of the certificate
described in paragraph 13 below. Delivery of the shares may be made at the principal office of the
company or at the office of a transfer agent appointed for shares of the Company. Shares shall be
registered in the name of the participant unless the participant otherwise directs in his or her
notice of election. No shares shall be issued until full payment for them has been made by cash or
certified check; and a participant has none of the rights of a shareholder until shares are issued
as herein provided. In the event of any failure to take up and pay for the number of shares
specified in the notice of election on the date stated on it, or an adjourned date, the option
shall become inoperative as to such number of shares, but shall continue with respect to any
remaining shares covered by the option and not yet acquired pursuant to it. If any law or any
regulation of the Securities and Exchange Commission or of any other body having jurisdiction shall
require the Company or the Participant to take any action in connection with the shares specified
in a notice of election, then the date specified therein for the delivery of the shares shall be
adjourned until the completion of the necessary action.

     13. Securities Registration. At the closing provided for above, the participant shall agree
to hold the shares acquired by his exercise of the option for investment and not with a view to
resale or distribution thereof to the public, and he or she shall deliver to the Company a
certificate to that effect. In the event that the Company shall nevertheless deem it necessary to
register under the Securities Act of 1933 or other applicable statutes any shares with respect to
which an option shall have been exercised or to qualify any such shares for exemption from the
Securities Act of 1933 under regulations of the Securities and Exchange Commission, then the
Company shall take such action at its own expense before delivery of such shares. In the event
the shares of the Company shall be listed on any national stock exchange at the time of the
exercise of an option under this Plan, then, whenever required, the Company shall register the
shares with respect to which such option is exercised under the Securities Exchange Act of 1934 and
shall make prompt application for the listing on such shares at the sole expense of the Company.

     14. Use of Proceeds. The proceeds from the sale of option shares shall be used exclusively
for the general corporate purposes of the Company and shall not be used for other purposes.

     15. Amendment and Discontinuance. The Board may alter, amend, suspend or discontinue this
Plan; provided, however, that the Board shall not, without the written consent of

 - 4 - 

 

the holders of the options, alter or impair unexercised options that may have been previously
granted under this Plan, except insofar as a merger or consolidation of the Company, or a
termination of employment of a participant, or a liquidation or dissolution shall affect a
cancellation of an option under the terms of paragraphs 8(b), 10 or 16, hereof.

     16. Liquidation. Upon the complete liquidation of the Company, any options previously
granted under this Plan shall be deemed canceled, except as otherwise provided in paragraph 8(b)
above on the occasion of a merger or consolidation.

     17. Concurrent Operation. This Plan shall operate concurrently with the 2003 Non-Qualified
Stock Option Plan of the Company for the period through December 31, 2004 and the fulfillment of
the attendance requirements described herein shall satisfy the requirements of both Plans.

     18. Director Approval. This Plan has been approved by the Board of Directors of the Company
and is effective as of September 1, 2004.

 - 5 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]