Document:

ex99-1015.htm

    Exhibit
10.15

     

     

    TierOne
Corporation

    AMENDED
AND RESTATED 2003 STOCK OPTION PLAN

    

    ARTICLE
I

    ESTABLISHMENT
OF THE PLAN

    

    TierOne Corporation (the “Corporation”)
hereby amends and restates its 2003 Stock Option Plan (as amended and restated,
the “Plan”) upon the terms and conditions hereinafter stated, with the amendment
and restatement effective as of December 17, 2008.

    

    ARTICLE
II

    PURPOSE
OF THE PLAN

    

    The purpose of this Plan is to improve
the growth and profitability of the Corporation and its Subsidiary Companies by
providing Employees and Non-Employee Directors with a proprietary interest in
the Corporation as an incentive to contribute to the success of the Corporation
and its Subsidiary Companies, and rewarding Employees and Non-Employee Directors
for outstanding performance.  All Incentive Stock Options issued under
this Plan are intended to comply with the requirements of Section 422 of the
Code and the regulations thereunder, and all provisions hereunder shall be read,
interpreted and applied with that purpose in mind.  Each recipient of
an Option hereunder is advised to consult with his or her personal tax advisor
with respect to the tax consequences under federal, state, local and other tax
laws of the receipt and/or exercise of an Option hereunder.

    

    ARTICLE
III

    DEFINITIONS

    

    The following words and phrases when
used in this Plan with an initial capital letter, unless the context clearly
indicates otherwise, shall have the meanings set forth
below.  Wherever appropriate, the masculine pronouns shall include the
feminine pronouns and the singular shall include the plural.

    

    3.01           “Bank”
means TierOne Bank, the wholly owned subsidiary of the Corporation.

    

    3.02           “Beneficiary”
means the person or persons designated by an Optionee to receive any benefits
payable under the Plan in the event of such Optionee’s death.  Such
person or persons shall be designated in writing on forms provided for this
purpose by the Committee and may be changed from time to time by similar written
notice to the Committee.  In the absence of a written designation, the
Beneficiary shall be the Optionee’s surviving spouse, if any, or if none, his
estate.

    

    3.03           “Board”
means the Board of Directors of the Corporation.

    

    3.04           “Change
in Control” shall mean a change in the ownership of the Corporation or the Bank,
a change in the effective control of the Corporation or the Bank or a change in
the 

     

    
      
        
        

      

      
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    ownership
of a substantial portion of the assets of the Corporation or the Bank, in each
case as provided under Section 409A of the Code and the regulations
thereunder.

    

    3.05           “Code”
means the Internal Revenue Code of 1986, as amended.

    

    3.06           “Committee”
means a committee of two or more directors appointed by the Board pursuant to
Article IV hereof, each of whom shall be (i) a Non-Employee Director as defined
in Rule 16b-3(b)(3)(i) of the Exchange Act or any successor thereto, and (ii) an
outside director within the meaning of Section 162(m) of the Code or any
successor thereto.

    

    3.07           “Common
Stock” means shares of the common stock, $0.01 par value per share, of the
Corporation.

    

    3.08           “Director”
means a member of the Board of Directors of the Corporation or a Subsidiary
Corporation or any successors thereto, including Non-Employee Directors as well
as Officers and Employees serving as Directors.

    

    3.09           “Director
Emeritus” and “Advisory Director” means a person appointed to serve in such
capacity by the Board of either the Corporation or the Bank or the successors
thereto.

    

    3.10           “Disability”
means in the case of any Optionee that the Optionee: (i) is unable to engage in
any substantial gainful activity by reason of any medically determinable
physical or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months, or (ii) is,
by reason of any medically determinable physical or mental impairment which can
be expected to result in death or can be expected to last for a continuous
period of not less than 12 months, receiving income replacement benefits for a
period of not less than three months under an accident and health plan covering
employees of the Corporation or the Bank (or would have received such benefits
for at least three months if he had been eligible to participate in such
plan).

    

    3.11           “Effective
Date” means the day upon which the Board originally adopted this Plan, which was
February 28, 2003.

    

    3.12           “Employee”
means any person who is employed by the Corporation or a Subsidiary Company, or
is an Officer of the Corporation or a Subsidiary Company, but not including
directors who are not also Officers of or otherwise employed by the Corporation
or a Subsidiary Company.

    

    3.13           “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

    

    3.14           “Exercise
Price” means the price at which a share of Common Stock may be purchased by an
Optionee pursuant to an Option.

    

    3.15           “Fair
Market Value” shall be equal to the fair market value per share of the
Corporation's Common Stock on the date an Option is granted.  For
purposes hereof, the Fair Market Value of a share of Common Stock shall be the
closing sale price of a share of Common 

     

    
      
        
        

      

      
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    Stock on
the date in question (or, if such day is not a trading day in the U.S. markets,
on the nearest preceding trading day), as reported with respect to the principal
market (or the composite of the markets, if more than one) or national quotation
system in which such shares are then traded, or if no such closing prices are
reported, the mean between the high bid and low asked prices that day on the
principal market or national quotation system then in use.  Notwithstanding the
foregoing, if the Common Stock is not
readily tradable on an established securities market for purposes of Section
409A of the Code, then the Fair Market Value shall be determined by means of a
reasonable valuation method that takes into consideration all available
information material to the value of the Corporation and that otherwise
satisfies the requirements applicable under Section 409A of the Code and the
regulations thereunder.

    

    3.16           “Incentive
Stock Option” means any Option granted under this Plan which the Board intends
(at the time it is granted) to be an incentive stock option within the meaning
of Section 422 of the Code or any successor thereto.

    

    3.17           “Non-Employee
Director” means a member of the Board (including advisory boards, if any) of the
Corporation or any Subsidiary Company or any successor thereto, including an
Advisory Director or a Director Emeritus of the Board of the Corporation and/or
any Subsidiary Company, or a former Officer or Employee of the Corporation
and/or any Subsidiary Company serving as a Director, Advisory Director or
Director Emeritus, who is not an Officer or Employee of the Corporation or any
Subsidiary Company.

    

    3.18           “Non-Qualified
Option” means any Option granted under this Plan which is not an Incentive Stock
Option.

    

    3.19           “Offering”
means the offering of Common Stock to the public during 2002 in connection with
the conversion of the Bank from the mutual to the stock form of organization and
the issuance of the capital stock of the Bank to the Corporation.

    

    3.20           “Officer”
means an Employee whose position in the Corporation or Subsidiary Company is
that of a corporate officer, as determined by the Board.

    

    3.21           “OTS”
means the Office of Thrift Supervision.

    

    3.22           “Option”
means a right granted under this Plan to purchase Common Stock.

    

    3.23           “Optionee”
means an Employee or Non-Employee Director or former Employee or Non-Employee
Director to whom an Option is granted under the Plan.

    

    3.24           “Retirement”
means:

    

    (a) A termination of employment which
constitutes a “retirement” at the “normal retirement age” or later under the
TierOne Bank Savings Plan or such other qualified pension benefit plan
maintained by the Corporation or a Subsidiary Company as may be designated by
the Board or the Committee, or, if no such plan is applicable, which would
constitute “retirement” under the TierOne Bank Savings Plan, if such individual
were a participant in that 

     

    
      
        
        

      

      
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    plan,
provided, however, that the provisions of this subsection (a) will not apply as
long as an Optionee continues to serve as a Non-Employee Director.

    

    (b)  With respect to
Non-Employee Directors, retirement means retirement from service on the Board of
Directors of the Corporation or a Subsidiary Company or any successors thereto
(including service as a Director Emeritus or Advisory Director to the
Corporation or any Subsidiary Company) after reaching age 65 and having served
as a member of the Board Directors of the Corporation and/or the Bank for a
period of 10 years or more.

    

    3.25           “Subsidiary
Companies” means those subsidiaries of the Corporation, including the Bank,
which meet the definition of “subsidiary corporations” set forth in Section
424(f) of the Code, at the time of granting of the Option in
question.

    

    ARTICLE
IV

    ADMINISTRATION
OF THE PLAN

    

    4.01           Duties of
the Committee.  The Plan shall be
administered and interpreted by the Committee, as appointed from time to time by
the Board pursuant to Section 4.02.  The Committee shall have the
authority to adopt, amend and rescind such rules, regulations and procedures as,
in its opinion, may be advisable in the administration of the Plan, including,
without limitation, rules, regulations and procedures which (i) address matters
regarding the satisfaction of an Optionee's tax withholding obligation pursuant
to Section 12.02 hereof, (ii) to the extent permissible by applicable law and
regulation, include arrangements to facilitate the Optionee's ability to borrow
funds for payment of the exercise or purchase price of an Option, if applicable,
from securities brokers and dealers, and (iii) subject to any legal or
regulatory restrictions or limitations,  include arrangements which
provide for the payment of some or all of such exercise or purchase price by
delivery of previously owned shares of Common Stock or other property and/or by
withholding some of the shares of Common Stock which are being
acquired.  The interpretation and construction by the Committee of any
provisions of the Plan, any rule, regulation or procedure adopted by it pursuant
thereto or of any Option shall be final and binding in the absence of action by
the Board.

    

    4.02           Appointment
and Operation of the Committee.  The members of
the Committee shall be appointed by, and will serve at the pleasure of, the
Board.  The Board from time to time may remove members from, or add
members to, the Committee, provided the Committee shall continue to consist of
two or more members of the Board, each of whom shall be a Non-Employee Director,
as defined in Rule 16b-3(b)(3)(i) of the Exchange Act or any successor
thereto.  In addition, each member of the Committee shall be an
“outside director” within the meaning of Section 162(m) of the Code and
regulations thereunder at such times as is required under such
regulations.  The Committee shall act by vote or written consent of a
majority of its members.  Subject to the express provisions and
limitations of the Plan, the Committee may adopt such rules, regulations and
procedures as it deems appropriate for the conduct of its affairs.  It
may appoint one of its members to be chairman and any person, whether or not a
member, to be its secretary or agent.  The Committee shall report its
actions and decisions to the Board at appropriate times but in no event less
than one time per calendar year.

    

    
      
        
        

      

      
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    4.03           Revocation
for Misconduct.  The Board or the
Committee may by resolution immediately revoke, rescind and terminate any
Option, or portion thereof, to the extent not yet vested, previously granted or
awarded under this Plan to an Employee who is discharged from the employ of the
Corporation or a Subsidiary Company for cause, which, for purposes hereof, shall
mean termination because of the Employee's personal dishonesty, incompetence,
willful misconduct, breach of fiduciary duty involving personal profit,
intentional failure to perform stated duties, willful violation of any law,
rule, or regulation (other than traffic violations or similar offenses) or final
cease-and-desist order.  Options granted to a Non-Employee Director
who is removed for cause pursuant to the Corporation's Articles of Incorporation
or Bylaws or the Bank’s Charter and Bylaws or the constituent documents of such
other Subsidiary Company on whose board he serves shall terminate as of the
effective date of such removal.

    

    4.04           Limitation
on Liability.  Neither the
members of the Board nor any member of the Committee shall be liable for any
action or determination made in good faith with respect to the Plan, any rule,
regulation or procedure adopted by it pursuant thereto or any Options granted
under it.  If a member of the Board or the Committee is a party or is
threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative, by
reason of anything done or not done by him in such capacity under or with
respect to the Plan, the Corporation shall, subject to the requirements of
applicable laws and regulations, indemnify such member against all liabilities
and expenses (including attorneys' fees), judgments, fines and amounts paid in
settlement actually and reasonably incurred by him in connection with such
action, suit or proceeding if he acted in good faith and in a manner he
reasonably believed to be in the best interests of the Corporation and its
Subsidiary Companies and, with respect to any criminal action or proceeding, had
no reasonable cause to believe his conduct was unlawful.

    

    4.05           Compliance
with Laws and Regulations.  All Options
granted hereunder shall be subject to all applicable federal and state laws,
rules and regulations and to such approvals by any government or regulatory
agency as may be required.  The Corporation shall not be required to
issue or deliver any certificates for shares of Common Stock prior to the
completion of any registration or qualification of or obtaining of consents or
approvals with respect to such shares under any federal or state law or any rule
or regulation of any government body, which the Corporation shall, in its sole
discretion, determine to be necessary or advisable.  Moreover, no
Option may be exercised if such exercise would be contrary to applicable laws
and regulations.

    

    4.06           Restrictions
on Transfer.  The Corporation
may place a legend upon any certificate representing shares acquired pursuant to
an Option granted hereunder noting that the transfer of such shares may be
restricted by applicable laws and regulations.

    

    4.07           No
Deferral of Compensation Under Section 409A of the Code.  All
Options granted under the Plan are designed to not constitute a deferral of
compensation for purposes of Section 409A of the
Code.  Notwithstanding any other provision in this Plan to the
contrary, all of the terms and conditions of any Options granted under this Plan
shall be designed to satisfy the exemption for stock options set forth in the
regulations issued under Section 409A of the Code.  Both this Plan and
the terms of all Options granted hereunder shall be interpreted in a manner that
requires compliance with all of the requirements of the exemption for stock
options 

     

    
      
        
        

      

      
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    set forth
in the regulations issued under Section 409A of the Code.  No Optionee
shall be permitted to defer the recognition of income beyond the exercise date
of a Non-Qualified Option or beyond the date that the Common Stock received upon
the exercise of an Incentive Stock Option is sold.

    

    ARTICLE
V

    ELIGIBILITY

    

    Options may be granted to such
Employees or Non-Employee Directors of the Corporation and its Subsidiary
Companies as may be designated from time to time by the Board or the
Committee.  Options may not be granted to individuals who are not
Employees or Non-Employee Directors of either the Corporation or its Subsidiary
Companies.  Non-Employee Directors shall be eligible to receive only
Non-Qualified Options.

    

    ARTICLE
VI

    COMMON
STOCK COVERED BY THE PLAN

    

    6.01           Option
Shares.  The aggregate
number of shares of Common Stock which may be issued pursuant to this Plan,
subject to adjustment as provided in Article IX, shall be
2,257,508.  None of such shares shall be the subject of more than one
Option at any time, but if an Option as to any shares is surrendered before
exercise, or expires or terminates for any reason without having been exercised
in full, or for any other reason ceases to be exercisable, the number of shares
covered thereby shall again become available for grant under the Plan as if no
Options had been previously granted with respect to such
shares.  During the time this Plan remains in effect, the aggregate
grants of Options to each Employee and each Non-Employee Director shall not
exceed 25% and 5% of the shares of Common Stock available under the Plan,
respectively.  Options granted to Non-Employee  Directors in
the aggregate may not exceed 30% of the number of shares available under this
Plan.

    

    6.02           Source of
Shares.  The shares of
Common Stock issued under the Plan may be authorized but unissued shares,
treasury shares or shares purchased by the Corporation on the open market or
from private sources for use under the Plan.

    

    ARTICLE
VII

    DETERMINATION
OF

    OPTIONS,
NUMBER OF SHARES, ETC.

    

    The Board or the Committee shall, in
its discretion, determine from time to time which Employees or Non-Employee
Directors will be granted Options under the Plan, the number of shares of Common
Stock subject to each Option, and whether each Option will be an Incentive Stock
Option or a Non-Qualified Stock Option.  In making all such
determinations there shall be taken into account the duties, responsibilities
and performance of each respective Employee and Non-Employee Director, his
present and potential contributions to the growth and success of the
Corporation, his salary or other compensation and such other factors as the
Board or the Committee shall deem relevant to accomplishing the purposes of the
Plan.  The Board or the 

     

    
      
        
        

      

      
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    Committee
may but shall not be required to request the written recommendation of the Chief
Executive Officer of the Corporation other than with respect to Options to be
granted to him.

    

    ARTICLE
VIII

    OPTIONS

    

    Each Option granted hereunder shall be
on the following terms and conditions:

    

    8.01           Stock
Option Agreement.  The proper
Officers on behalf of the Corporation and each Optionee shall execute a Stock
Option Agreement which shall set forth the total number of shares of Common
Stock to which it pertains, the exercise price, whether it is a Non-Qualified
Option or an Incentive Stock Option, and such other terms, conditions,
restrictions and privileges as the Board or the Committee in each instance shall
deem appropriate, provided they are not inconsistent with the terms, conditions
and provisions of this Plan.  Each Optionee shall receive a copy of
his executed Stock Option Agreement.  Any Option granted with the
intention that it will be an Incentive Stock Option but which fails to satisfy a
requirement for Incentive Stock Options shall continue to be valid and shall be
treated as a Non-Qualified Option.

    

    8.02           Option Exercise
Price.

    

    (a)            
 Incentive
Stock Options.  The per share
price at which the subject Common Stock may be purchased upon exercise of an
Incentive Stock Option shall be no less than one hundred percent (100%) of the
Fair Market Value of a share of Common Stock at the time such Incentive Stock
Option is granted, except as provided in Section 8.09(b).

    

    (b)           
  Non-Qualified
Options.  The per share
price at which the subject Common Stock may be purchased upon exercise of a
Non-Qualified Option shall be no less than one hundred percent (100%) of the
Fair Market Value of a share of Common Stock at the time such Non-Qualified
Option is granted.

    

    8.03           Vesting and Exercise of
Options.

    

    (a)           
  General
Rules.  Incentive Stock
Options and Non-Qualified Options granted hereunder shall become vested and
exercisable at the rate of 20% per year over five years, commencing one year
from the date of grant and an additional 20% shall vest on each successive
anniversary of the date the Option was granted, and the right to exercise shall
be cumulative.  Notwithstanding the foregoing, except as provided in
Section 8.03(b) hereof, no vesting shall occur on or after an Employee's
employment or service as a Non-Employee Director (which, for purposes hereof,
shall include service as a Director Emeritus or Advisory Director) with the
Corporation or any of the Subsidiary Companies is terminated.  In
determining the number of shares of Common Stock with respect to which Options
are vested and/or exercisable, fractional shares will be rounded down to the
nearest whole number, provided that such fractional shares shall be aggregated
and deemed vested on the final date of vesting.

    

    (b)            
 Accelerated
Vesting.  Unless the Board
or the Committee shall specifically state otherwise at the time an Option is
granted, all Options granted under this Plan shall become 

     

    
      
        
        

      

      
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    vested
and exercisable in full (1) on the date an Optionee terminates his employment
with the Corporation or a Subsidiary Company or service as a Non-Employee
Director (including for purposes hereof service as a Director Emeritus or
Advisory Director) because of his death or Disability or (2) as of the effective
date of a Change in Control.  All Options hereunder shall become
immediately vested and exercisable in full on the date an Optionee terminates
his employment with the Corporation or a Subsidiary Company due to Retirement if
as of the date of such Retirement (i) such treatment is either authorized or is
not prohibited by applicable laws and regulations, or (ii) an amendment to the
Plan providing for such treatment has been approved by the shareholders of the
Corporation at a meeting of shareholders held more than one year after the
consummation of the Offering.

    

    
      8.04          
Duration of
Options.

    

    

    (a)            
 General
Rule.  Except as
provided in Sections 8.04(b) and 8.09, each Option or portion thereof granted to
Employees and Non-Employee Directors shall be exercisable at any time on or
after it vests and becomes exercisable until the earlier of (i) ten (10) years
after its date of grant or (ii) six (6) months after the date on which the
Optionee ceases to be employed (or in the service of the Board of Directors) by
the Corporation and all Subsidiary Companies, unless the Board of Directors or
the Committee in its discretion decides at the time of grant or thereafter to
extend such period of exercise to a period not exceeding three (3)
years.  In the event an Incentive Stock Option is not exercised within
90 days of the effective date of termination of Optionee's status as an
Employee, the tax treatment accorded Incentive Stock Options by the Code may not
be available.

    

    In
addition, the accelerated vesting of Incentive Stock Options provided by Section
8.03(b) may result in all or a portion of such Incentive Stock Options no longer
qualifying as Incentive Stock Options.

    

    (b)           
  Exception
for Termination Due to Disability, Retirement, Change in Control or
Death. Unless the
Board or the Committee shall specifically state otherwise at the time an Option
is granted: (i) if an Employee terminates his employment with the Corporation or
a Subsidiary Company as a result of Disability or Retirement without having
fully exercised his Options, the Employee shall have the right, during the three
(3) year period following his termination due to Disability or Retirement, to
exercise such Options, and (ii) if a Non-Employee Director terminates his
service as a director (including service as an Advisory Director or Director
Emeritus) with the Corporation or a Subsidiary Company as a result of Disability
or Retirement without having fully exercised his Options, the Non-Employee
Director shall have the right, during the three (3) year period following his
termination due to Disability or Retirement, to exercise such
Options.

    

    Subject to the provisions of Article IX
hereof, unless the Board or the Committee shall specifically state otherwise at
the time an Option is granted, if an Employee or Non-Employee Director
terminates his employment or service with the Corporation or a Subsidiary
Company following a Change in Control without having fully exercised his
Options, the Optionee shall have the right to exercise such Options during the
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    five (5) year term for Options
subject to Section 8.09(b) hereof) of the Option from the date of
grant.

    

    If an Optionee dies while in the employ
or service of the Corporation or a Subsidiary Company or terminates employment
or service with the Corporation or a Subsidiary Company as a result of
Disability or Retirement and dies without having fully exercised his Options,
the executors, administrators, legatees or distributees of his estate shall have
the right, during the one (1) year period following his death, to exercise such
Options.

    

    In no event, however, shall any Option
be exercisable more than ten (10) years (five (5) years for Options
subject to Section 8.09(b) hereof) from the date it was
granted.

    

    8.05           Nonassignability.  Options shall not
be transferable by an Optionee except by will or the laws of descent or
distribution, and during an Optionee's lifetime shall be exercisable only by
such Optionee or the Optionee's guardian or legal
representative.  Notwithstanding the foregoing, or any other provision
of this Plan, an Optionee who holds Non-Qualified Options may transfer such
Options to his immediate family or to a duly established trust for the benefit
of one or more of these individuals.   For purposes hereof,
“immediate family” includes but is not necessarily limited to the Optionee's
spouse, children (including step children), parents, grandchildren and great
grandchildren.  Options so transferred may thereafter be transferred
only to the Optionee who originally received the grant or to an individual or
trust to whom the Optionee could have initially transferred the Option pursuant
to this Section 8.05.  Options which are transferred pursuant to this
Section 8.05 shall be exercisable by the transferee according to the same terms
and conditions as applied to the Optionee.

    

    8.06           Manner of
Exercise.  Options may be
exercised in part or in whole and at one time or from time to
time.  The procedures for exercise shall be set forth in the written
Stock Option Agreement provided for in Section 8.01 above.

    

    8.07           Payment
for Shares.  Payment in full
of the purchase price for shares of Common Stock purchased pursuant to the
exercise of any Option shall be made to the Corporation upon exercise of the
Option.  All shares sold under the Plan shall be fully paid and
nonassessable.  Payment for shares may be made by the Optionee (i) in
cash or by check, (ii) by delivery of a properly executed exercise notice,
together with irrevocable instructions to a broker (which shall be unrelated to
the Corporation or the Optionee) to sell the shares and then to properly deliver
to the Corporation the amount of sale proceeds to pay the exercise price, all in
accordance with applicable laws and regulations and all applicable accounting
guidance, including Emerging Issues Task Force Issue No. 00-23, Financial
Accounting Standards Board Statement No. 123R and any successors thereto, or
(iii) at the discretion of the Board or the Committee, by delivering shares of
Common Stock (including shares acquired pursuant to the previous exercise of an
Option) equal in fair market value to the purchase price of the shares to be
acquired pursuant to the Option, by withholding some of the shares of Common
Stock which are being purchased upon exercise of an Option, or any combination
of the foregoing.  With respect to subclause (iii) hereof, the shares
of Common Stock delivered to pay the purchase price must have either been (x)
purchased in open market transactions or (y) issued by the Corporation

     

    
      
        
        

      

      
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    pursuant
to a plan thereof more than six months prior to the exercise date of the Option
(or one year in the case of previously exercised Incentive Stock
Options).

    

    8.08           Voting
and Dividend Rights.  No Optionee shall
have any voting or dividend rights or other rights of a shareholder in respect
of any shares of Common Stock covered by an Option prior to the time that his
name is recorded on the Corporation's shareholder ledger as the holder of record
of such shares acquired pursuant to an exercise of an Option.

    

    8.09           Additional
Terms Applicable to Incentive Stock Options.  All Options
issued under the Plan as Incentive Stock Options will be subject, in addition to
the terms detailed in Sections 8.01 to 8.08 above, to those contained in this
Section 8.09.

    

      
(a)           Amount
Limitation.  Notwithstanding
any contrary provisions contained elsewhere in this Plan and as long as required
by Section 422 of the Code, the aggregate Fair Market Value, determined as of
the time an Incentive Stock Option is granted, of the Common Stock with respect
to which Incentive Stock Options are exercisable for the first time by the
Optionee during any calendar year, under this Plan and stock options that
satisfy the requirements of Section 422 of the Code under any other stock option
plans maintained by the Corporation (or any parent or Subsidiary Company), shall
not exceed $100,000.

    

      
(b)           Limitation
on Ten Percent Stockholders.  The price at
which shares of Common Stock may be purchased upon exercise of an Incentive
Stock Option granted to an individual who, at the time such Incentive Stock
Option is granted, owns, directly or indirectly, more than ten percent (10%) of
the total combined voting power of all classes of stock issued to shareholders
of the Corporation or any Subsidiary Company, shall be no less than one hundred
and ten percent (110%) of the Fair Market Value of a share of the Common Stock
of the Corporation at the time of grant, and such Incentive Stock Option shall
by its terms not be exercisable after the earlier of the date determined under
Section 8.04 or the expiration of five (5) years from the date such Incentive
Stock Option is granted.

    

      
(c)           Notice of
Disposition; Withholding; Escrow.  An Optionee shall
immediately notify the Corporation in writing of any sale, transfer, assignment
or other disposition (or action constituting a disqualifying disposition within
the meaning of Section 421 of the Code) of any shares of Common Stock acquired
through exercise of an Incentive Stock Option, within two (2) years after the
grant of such Incentive Stock Option or within one (1) year after the
acquisition of such shares, setting forth the date and manner of disposition,
the number of shares disposed of and the price at which such shares were
disposed of.  The Corporation shall be entitled to withhold from any
compensation or other payments then or thereafter due to the Optionee such
amounts as may be necessary to satisfy any withholding requirements of federal
or state law or regulation and, further, to collect from the Optionee any
additional amounts which may be required for such purpose.  The
Committee may, in its discretion, require shares of Common Stock acquired by an
Optionee upon exercise of an Incentive Stock Option to be held in an escrow
arrangement for the purpose of enabling compliance with the provisions of this
Section 8.09(c).

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    ARTICLE
IX

    ADJUSTMENTS
FOR CAPITAL CHANGES

    

    9.01           General
Adjustments. The aggregate number of
shares of Common Stock available for issuance under this Plan, the number of
shares to which any Option relates, the maximum number of shares that can be
covered by Options to each Employee, each Non-Employee Director and Non-Employee
Directors as a group and the exercise price per share of Common Stock under any
Option shall be proportionately adjusted for any increase or decrease in the
total number of outstanding shares of Common Stock issued subsequent to the
Effective Date of this Plan resulting from a split, subdivision or consolidation
of shares or any other capital adjustment, the payment of a stock dividend, or
other increase or decrease in such shares effected without receipt or payment of
consideration by the Corporation.

    

    9.02           Adjustments
for Mergers and Other Corporate Transactions. If, upon a merger,
consolidation, reorganization, liquidation, recapitalization or the like of the
Corporation, the shares of the Corporation's Common Stock shall be exchanged for
other securities of the Corporation or of another corporation, each Option shall
be converted, subject to the conditions herein stated, into the right to
purchase or acquire such number of shares of Common Stock or amount of other
securities of the Corporation or such other corporation as were exchangeable for
the number of shares of Common Stock of the Corporation which such Optionee
would have been entitled to purchase or acquire except for such action, and
appropriate adjustments shall be made to the per share exercise price of
outstanding Options, provided that in each case the number of shares or other
securities subject to the substituted or assumed stock option and the exercise
price thereof shall be determined in a manner that satisfies the requirements of
Treasury Regulation §1.424-1 and the regulations issued under Section 409A of
the Code so that the substituted or assumed option is not deemed to be a
modification of the outstanding Options.  Notwithstanding any
provision to the contrary herein, the term of any Option granted hereunder and
the property which the Optionee shall receive upon the exercise or termination
thereof shall be subject to and be governed by the provisions regarding the
treatment of any such Options set forth in a definitive agreement with respect
to any of the aforementioned transactions entered into by the Corporation to the
extent any such Option remains outstanding and unexercised upon consummation of
the transactions contemplated by such definitive agreement.

    

    ARTICLE
X

    AMENDMENT
AND TERMINATION OF THE PLAN

    

    The Board may, by resolution, at any
time terminate or amend the Plan with respect to any shares of Common Stock as
to which Options have not been granted, subject to regulations of the OTS and
any required shareholder approval or any shareholder approval which the Board
may deem to be advisable for any reason, such as for the purpose of obtaining or
retaining any statutory or regulatory benefits under tax, securities or other
laws or satisfying any applicable stock exchange listing
requirements.  The Board may not, without the consent of the holder of
an Option, alter or impair any Option previously granted or awarded under this
Plan except as provided by Article IX hereof or except as specifically
authorized herein.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    
 

    Notwithstanding anything to the
contrary herein, in no event shall the Board of Directors without shareholder
approval amend the Plan nor shall the Board of Directors or the Committee amend
an Option in any manner that effectively allows the repricing of any Option
previously granted under the Plan either through a reduction in the Exercise
Price or through the cancellation and regrant of a new Option in exchange for
the cancelled Option (except as permitted pursuant to Article IX in connection
with a change in the Corporation’s capitalization).

    

    ARTICLE
XI

    EMPLOYMENT
RIGHTS

    

    Neither the Plan nor the grant of any
Options hereunder nor any action taken by the Committee or the Board in
connection with the Plan shall create any right on the part of any Employee or
Non-Employee Director of the Corporation or a Subsidiary Company to continue in
such capacity.

    

    ARTICLE
XII

    WITHHOLDING

    

    12.01         Tax
Withholding.   The
Corporation may withhold from any cash payment made under this Plan sufficient
amounts to cover any applicable withholding and employment taxes, and if the
amount of such cash payment is insufficient, the Corporation may require the
Optionee to pay to the Corporation the amount required to be withheld as a
condition to delivering the shares acquired pursuant to an
Option.  The Corporation also may withhold or collect amounts with
respect to a disqualifying disposition of shares of Common Stock acquired
pursuant to exercise of an Incentive Stock Option, as provided in Section
8.09(c).

    

    12.02         Methods
of Tax Withholding.  The Board or the
Committee is authorized to adopt rules, regulations or procedures which provide
for the satisfaction of an Optionee's tax withholding obligation by the
retention of shares of Common Stock to which the Employee would otherwise be
entitled pursuant to an Option and/or by the Optionee's delivery of previously
owned shares of Common Stock or other property.

    

    ARTICLE
XIII

    EFFECTIVE
DATE OF THE PLAN; TERM

    

    13.01         Effective
Date of the Plan.  This Plan as
originally adopted was effective as of the Effective Date, and Options may be
granted hereunder no earlier than the date this Plan was approved by
shareholders and no later than the termination of the Plan.  The
shareholders of the Corporation approved this Plan as originally adopted at a
meeting held on April 23, 2003 pursuant to Article XIV hereof.  The
amendment and restatement of this Plan was adopted effective as of the date set
forth in Article I above.

     

    
      
        
        

      

      
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    13.02        
Term of
Plan.  Unless sooner
terminated, this Plan shall remain in effect for a period of ten (10) years
ending on the tenth anniversary of the Effective Date.  Termination of
the Plan shall not affect any Options previously granted and such Options shall
remain valid and in effect until they have been fully exercised or earned, are
surrendered or by their terms or the terms hereof expire or are
forfeited.

    

    ARTICLE
XIV

    SHAREHOLDER
APPROVAL

    

    The shareholders of the Corporation
approved this Plan as originally adopted at a meeting of shareholders of the
Corporation held on April 23, 2003 within twelve (12) months following the
Effective Date in order to meet the requirements of (i) Section 422 of the Code
and regulations thereunder, (ii) Section 162(m) of the Code and regulations
thereunder, and (iii) the Nasdaq Stock Market for continued quotation of the
Common Stock on the Nasdaq National Market.

    

    ARTICLE
XV

    MISCELLANEOUS

    

    15.01         Governing Law.  To
the extent not governed by federal law, this Plan shall be construed under the
laws of the State of Nebraska.

     

     

    13ex99-1019.htm

    Exhibit
10.19

    
 

    TierOne
Corporation

    AMENDED
AND RESTATED 2003 RECOGNITION AND RETENTION PLAN

    AND
TRUST AGREEMENT

    

    ARTICLE
I

    ESTABLISHMENT
OF THE PLAN AND TRUST

    

    1.01           TierOne
Corporation (the “Corporation”) hereby amends and restates its 2003 Recognition
and Retention Plan (as amended and restated, the “Plan”) and Trust (the “Trust”)
upon the terms and conditions hereinafter stated in this amended and restated
2003 Recognition and Retention Plan and Trust Agreement (the “Agreement”), with
the amendment and restatement effective as of December 17, 2008.

    

    1.02           The
Trustee hereby accepts this Trust and agrees to hold the Trust assets existing
on the date of this Agreement and all additions and accretions thereto upon the
terms and conditions hereinafter stated.

    

    ARTICLE
II

    PURPOSE
OF THE PLAN

    

    The purpose of the Plan is to retain
personnel of experience and ability in key positions by providing Employees and
Non-Employee Directors with a proprietary interest in the Corporation and its
Subsidiary Companies as compensation for their contributions to the Corporation
and the Subsidiary Companies and as an incentive to make such contributions in
the future.   Each Recipient of a Plan Share Award hereunder is
advised to consult with his or her personal tax advisor with respect to the tax
consequences under federal, state, local and other tax laws of the receipt of a
Plan Share Award hereunder.

    

    ARTICLE
III

    DEFINITIONS

    

    The following words and phrases when
used in this Agreement with an initial capital letter, unless the context
clearly indicates otherwise, shall have the meanings set forth
below.  Wherever appropriate, the masculine pronouns shall include the
feminine pronouns and the singular shall include the plural.

    

    3.01           “Bank”
means TierOne Bank, the wholly owned subsidiary of the Corporation.

    

    3.02           “Beneficiary”
means the person or persons designated by a Recipient to receive any benefits
payable under the Plan in the event of such Recipient's death.  Such
person or persons shall be designated in writing on forms provided for this
purpose by the Committee and may be changed from time to time by similar written
notice to the Committee.  In the absence of a written designation, the
Beneficiary shall be the Recipient's surviving spouse, if any, or if none, his
estate.

    
      
        
           

           

        

         

      

      
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    3.03           “Board”
means the Board of Directors of the Corporation.

    

    3.04           “Change in Control” shall
mean a change in the ownership of the Corporation or the Bank, a change
in the effective control of the Corporation or the Bank or a change in the
ownership of a substantial portion of the assets of the Corporation or the Bank,
in each case as provided under Section 409A of the Code and the regulations
thereunder.

    

    3.05           “Code”
means the Internal Revenue Code of 1986, as amended.

    

    3.06           “Committee”
means the committee appointed by the Board pursuant to Article IV
hereof.

    

    3.07           “Common
Stock” means shares of the common stock, $0.01 par value per share, of the
Corporation.

    

    3.08           “Director”
means a member of the Board of Directors of the Corporation or a Subsidiary
Company or any successors thereto, including Non-Employee Directors as well as
Officer and Employees serving as Directors.

    

    3.09           “Director
Emeritus” and “Advisory Director” means a person appointed to serve in such
capacity by the Board of either the Corporation or the Bank or the successors
thereto.

    

    3.10           “Disability” means
the Recipient (i) is unable to engage in any substantial gainful activity
by reason of any medically determinable physical or mental impairment which can
be expected to result in death or can be expected to last for a continuous
period of not less than 12 months, or (ii) is, by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or can be expected to last for a continuous period of not less than 12
months, receiving income replacement benefits for a period of not less than
three months under an accident and health plan covering employees of the
Corporation or the Bank (or would have received such benefits for at least three
months if he had been eligible to participate in such plan).

    

    3.11           “Effective
Date” means the day upon which the Board originally adopted this Plan, which was
February 28, 2003.

    

    3.12           “Employee”
means any person who is employed by the Corporation or a Subsidiary Company or
is an Officer of the Corporation or a Subsidiary Company, but not including
directors who are not also Officers of or otherwise employed by the Corporation
or a Subsidiary Company.

    

    3.13           “Employer
Group” means the Corporation and any Subsidiary Company which, with the consent
of the Board, agrees to participate in the Plan.

    
      
        
           

           

        

         

      

      
        2

        
          

        

      

      
         

      

    

    3.14           “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

    

    3.15           “Non-Employee
Director” means a member of the Board (including advisory boards, if any) of the
Corporation or any Subsidiary Company or any successor thereto, including an Advisory
Director or a Director Emeritus of the Board of the Corporation and/or any
Subsidiary Company or a former Officer or Employee of the Corporation and/or any
Subsidiary Company serving as a Director, Advisory Director or Director
Emeritus, who is not an Officer or Employee of the Corporation or any Subsidiary
Company.

    

    3.16           “Offering”
means the offering of Common Stock to the public during 2002 in connection with
the conversion of the Bank from the mutual to the stock form of organization and
the issuance of the capital stock of the Bank to the Corporation.

    

    3.17           “Officer”
means an Employee whose position in the Corporation or a Subsidiary Company is
that of a corporate officer, as determined by the Board.

    

    3.18           “Performance
Share Award” means a Plan Share Award granted to a Recipient pursuant to Section
7.05 of the Plan.

    

    3.19           “Performance
Goal” means an objective for the Corporation or any Subsidiary Company or any
unit thereof or any Employee of the foregoing that may be established by the
Committee for a Performance Share Award to become vested, earned or
exercisable.  The establishment of Performance Goals are intended to
make the applicable Performance Share Awards “performance-based” compensation
within the meaning of Section 162(m) of the Code, and the Performance Goals
shall be based on one or more of the following criteria:

    

    (i)           
net income, as adjusted for non-recurring items;

    (ii)          
cash earnings;

    (iii)          earnings
per share;

    (iv)          cash
earnings per share;

    (v)           return
on average equity;

    (vi)          return
on average assets;

    (vii)         assets;

    (viii)        stock
price;

    (ix)           total
stockholder return;

    (x)           
capital;

    (xi)           net
interest income;

    (xii)          market
share;

    (xiii)         cost
control or efficiency ratio; and

    (xiv)         asset
growth.

    

    3.20           “Plan
Shares” or “Shares” means shares of Common Stock which may be distributed to a
Recipient pursuant to the Plan.

    
      
        
           

           

        

         

      

      
        3

        
          

        

      

      
         

      

    

    3.21           “Plan
Share Award” or “Award” means a right granted under this Plan to receive a
distribution of Plan Shares upon completion of the service requirements
described in Article VII hereof, and includes Performance Share
Awards.

    

    3.22           “Recipient”
means an Employee or Non-Employee Director or former Employee or Non-Employee
Director who receives a Plan Share Award or Performance Share Award under the
Plan.

    

    3.23           “Subsidiary
Companies” means those subsidiaries of the Corporation, including the Bank,
which meet the definition of “subsidiary corporations” set forth in Section
424(f) of the Code, at the time of the granting of the Plan Share Award in
question.

    

    3.24           “Trustee”
means such firm, entity or persons approved by the Board to hold legal title to
the Plan and the Plan assets for the purposes set forth herein.

    

    ARTICLE
IV

    ADMINISTRATION
OF THE PLAN

    

    4.01           Duties of
the Committee.  The Plan shall be administered and interpreted
by the Committee, which shall consist of two or more members of the Board, each
of whom shall be a Non-Employee Director, as defined in Rule 16b-3(b)(3)(i) of
the Exchange Act.  In addition, each member of the Committee shall be
an “outside director” within the meaning of Section 162(m) of the Code and the
regulations thereunder at such times as is required under such
regulations.  The Committee shall have all of the powers allocated to
it in this and other Sections of the Plan.  The interpretation and
construction by the Committee of any provisions of the Plan or of any Plan Share
Award granted hereunder shall be final and binding in the absence of action by
the Board.  The Committee shall act by vote or written consent of a
majority of its members.  Subject to the express provisions and
limitations of the Plan, the Committee may adopt such rules, regulations and
procedures as it deems appropriate for the conduct of its
affairs.  The Committee shall report its actions and decisions with
respect to the Plan to the Board at appropriate times, but in no event less than
once per calendar year.

    

    4.02           Role of
the Board.  The members of the Committee and the Trustee shall
be appointed or approved by, and will serve at the pleasure of, the
Board.  The Board may in its discretion from time to time remove
members from, or add members to, the Committee, and may remove or replace the
Trustee, provided that any directors who are selected as members of the
Committee shall be Non-Employee Directors.

    

    4.03           Revocation
for Misconduct.  Notwithstanding
anything to the contrary herein, the Board or the Committee may by resolution
immediately revoke, rescind and terminate any Plan Share Award, or portion
thereof, to the extent not yet vested, previously granted or awarded under this
Plan to an Employee who is discharged from the employ of the Corporation or a
Subsidiary Company for cause, which, for purposes hereof, shall mean termination
because of the Employee's personal dishonesty,

    
      
        
           

           

        

         

      

      
        4

        
          

        

      

      
         

      

    

    incompetence,
willful misconduct, breach of fiduciary duty involving personal profit,
intentional failure to perform stated duties, willful violation of any law,
rule, or regulation (other than traffic violations or similar offenses) or final
cease-and-desist order.  Unvested Plan Share Awards to a Non-Employee
Director who is removed for cause pursuant to the Corporation's Articles of
Incorporation or Bylaws or the Bank’s Charter and Bylaws or the constituent
documents of such other Subsidiary Company on whose board he serves shall
terminate as of the effective date of such removal.

    

    4.04           Limitation
on Liability.  No member of the
Board or the Committee shall be liable for any determination made in good faith
with respect to the Plan or any Plan Shares or Plan Share Awards granted under
it.  If a member of the Board or the Committee is a party or is
threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative, by
reason of anything done or not done by him in such capacity under or with
respect to the Plan, the Corporation shall, subject to the requirements of
applicable laws and regulations, indemnify such member against all liabilities
and expenses (including attorneys' fees), judgments, fines and amounts paid in
settlement actually and reasonably incurred by him in connection with such
action, suit or proceeding if he acted in good faith and in a manner he
reasonably believed to be in the best interests of  the Corporation
and any Subsidiary Companies and, with respect to any criminal action or
proceeding, had no reasonable cause to believe his conduct was
unlawful.

    

    4.05           Compliance
with Laws and Regulations.  All Awards
granted hereunder shall be subject to all applicable federal and state laws,
rules and regulations and to such approvals by any government or regulatory
agency or shareholders as may be required.   The Corporation
shall not be required to issue or deliver any certificates for shares of Common
Stock prior to the completion of any registration or qualification of or
obtaining of consents or approvals with respect to such shares under any federal
or state law or any rule or regulation of any government body, which the
Corporation shall, in its sole discretion, determine to be necessary or
advisable.

    

    4.06           Restrictions
on Transfer.  The Corporation
may place a legend upon any certificate representing shares issued pursuant to a
Plan Share Award noting that such shares may be restricted by applicable laws
and regulations.

    

    ARTICLE
V

    CONTRIBUTIONS

    

    5.01           Amount
and Timing of Contributions.  The Board shall
determine the amount (or the method of computing the amount) and timing of any
contributions by the Corporation and any Subsidiary Companies to the Trust
established under this Plan.  Such amounts may be paid in cash or in
shares of Common Stock and shall be paid to the Trust at the designated time of
contribution.  No contributions by Employees or Non-Employee Directors
shall be permitted.

    
      
        
           

           

        

         

      

      
        5

        
          

        

      

      
         

      

    

    5.02           Investment
of Trust Assets; Number of Plan Shares.  Subject to
Section 8.02 hereof, the Trustee shall invest all of the Trust's assets
primarily in Common Stock.  The aggregate number of Plan Shares
available for distribution pursuant to this Plan shall be 903,003 shares of
Common Stock, subject to adjustment as provided in Section 10.01 hereof, which
shares shall be purchased (from the Corporation and/or, if permitted by
applicable regulations, from shareholders thereof) by the Trust with funds
contributed by the Corporation.  During the time this Plan remains in
effect, Awards to each Employee and each Non-Employee Director shall not exceed
25% and 5% of the shares of Common Stock available under the Plan,
respectively.  Plan Share Awards to Non-Employee Directors in the
aggregate shall not exceed 30% of the number of shares available under this
Plan.

    

    ARTICLE
VI

    ELIGIBILITY;
ALLOCATIONS

    

    6.01           Awards.  Plan
Share Awards and Performance Share Awards may be made to such Employees and
Non-Employee Directors as may be selected by the Board or the
Committee.  In selecting those Employees to whom Plan Share Awards
and/or Performance Share Awards may be granted and the number of Shares covered
by such Awards, the Board or the Committee shall consider the duties,
responsibilities and performance of each respective Employee and Non-Employee
Director, his present and potential contributions to the growth and success of
the Corporation, his salary or other compensation and such other factors as
deemed relevant to accomplishing the purposes of the Plan.  The Board
or the Committee may but shall not be required to request the written
recommendation of the Chief Executive Officer of the Corporation other than with
respect to Plan Share Awards and/or Performance Share Awards to be granted to
him.

    

    6.02           Form of
Allocation.  As promptly as practicable after an allocation
pursuant to Section 6.01 that a Plan Share Award or a Performance Share Award is
to be issued, the Board or the Committee shall notify the Recipient in writing
of the grant of the Award, the number of Plan Shares covered by the Award, and
the terms upon which the Plan Shares subject to the Award shall be distributed
to the Recipient.  The Board or the Committee shall maintain records
as to all grants of Plan Share Awards  or Performance Share Awards
under the Plan.

    

    6.03           Allocations
Not Required to any Specific Employee or Non-Employee
Director.  No Employee or Non-Employee Director shall have any
right or entitlement to receive a Plan Share Award hereunder, with such Awards
being at the total discretion of the Board or the Committee.

    
      
        
           

           

        

         

      

      
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    ARTICLE
VII

    EARNING
AND DISTRIBUTION OF PLAN SHARES; VOTING RIGHTS

    

    7.01           Earning
Plan Shares; Forfeitures.

    

    (a)           General
Rules.  Subject to the terms hereof, Plan Share Awards granted
shall be earned by a Recipient at the rate of twenty percent (20%) of the
aggregate number of Shares covered by the Award as of each annual anniversary of
the date of grant of the Award. If the employment of an Employee or service as a
Non-Employee Director (including for purposes hereof service as a Director
Emeritus or Advisory Director) is terminated prior to the fifth (5th) annual
anniversary of the date of grant of a Plan Share Award for any reason (except as
specifically provided in subsection (b) below), the Recipient shall forfeit
the right to any Shares subject to the Award which have not theretofore been
earned.  In the event of a forfeiture of the right to any Shares
subject to an Award, such forfeited Shares shall become available for allocation
pursuant to Section 6.01 hereof as if no Award had been previously granted with
respect to such Shares.  No fractional shares shall be distributed
pursuant to this Plan.

    

    (b)           Exception
for Terminations Due to Death, Disability or Change in
Control.  Notwithstanding the general rule contained in Section
7.01(a), all Plan Shares subject to a Plan Share Award held by a Recipient whose
employment with the Corporation or any Subsidiary Company or service as a
Non-Employee Director (including for purposes hereof service as a Director
Emeritus or Advisory Director) terminates due to death or Disability shall be
deemed earned as of the Recipient's last day of employment with or service to
the Corporation or any Subsidiary Company (provided, however, no such
accelerated vesting shall occur if a Recipient remains employed by or continues
to serve as a Director (including for purposes hereof service as a Director
Emeritus or Advisory Director) of at least one member of the Employer Group) and
shall be distributed as soon as practicable thereafter.  Furthermore,
notwithstanding the general rule contained in Section 7.01(a), all Plan Shares
subject to a Plan Share Award held by a Recipient shall be deemed earned as of
the effective date of a Change in Control.

    

    7.02           Distribution
of Dividends.  Any cash dividends (including special large and
nonrecurring dividends and including any that has the effect of a return of
capital to the Corporation's shareholders) or stock dividends declared in
respect of each unvested Plan Share Award (excluding any unearned Performance
Share Awards) then held by the Trust will be paid out proportionately by the
Trust to the Recipient thereof as soon as practicable after the Trust’s receipt
thereof to the Recipient on whose behalf such Plan Share is then held by the
Trust.  Any cash dividends, stock dividends or returns of capital
declared in respect of each unvested Performance Share Award will be held by the
Trust for the benefit of the Recipient on whose behalf such Performance Share
Award is then held by the Trust, and such dividends or returns of capital,
including any interest thereon, will be paid out proportionately by the Trust to
the Recipient thereof as soon as practicable after the Performance Share Awards
become earned.

    
      
        
           

           

        

         

      

      
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    7.03           Distribution
of Plan Shares.

    

    (a)           Timing of
Distributions:  General Rule.   Subject to the
provisions of Section 7.05 hereof, Plan Shares shall be distributed to the
Recipient or his Beneficiary, as the case may be, as soon as practicable after
they have been earned.

    

    (b)           Form of
Distributions.  All Plan Shares, together with any Shares
representing stock dividends, shall be distributed in the form of Common
Stock.  One share of Common Stock shall be given for each Plan Share
earned and distributable.  Payments representing cash dividends shall
be made in cash.

    

    (c)           Withholding.  The
Trustee may withhold from any cash payment or Common Stock distribution made
under this Plan sufficient amounts to cover any applicable withholding and
employment taxes, and if the amount of a cash payment is insufficient, the
Trustee may require the Recipient or Beneficiary to pay to the Trustee the
amount required to be withheld as a condition of delivering the Plan
Shares.  The Trustee shall pay over to the Corporation or any
Subsidiary Company which employs or employed such Recipient any such amount
withheld from or paid by the Recipient or Beneficiary.

    

    (d)           Restrictions
on Selling of Plan Shares.  Plan Share Awards may not be sold,
assigned, pledged or otherwise disposed of prior to the time that they are
earned and distributed pursuant to the terms of this Plan.  Upon
distribution, the Board or the Committee may require the Recipient or his
Beneficiary, as the case may be, to agree not to sell or otherwise dispose of
his distributed Plan Shares except in accordance with all then applicable
federal and state securities laws, and the Board or the Committee may cause a
legend to be placed on the stock certificate(s) representing the distributed
Plan Shares in order to restrict the transfer of the distributed Plan Shares for
such period of time or under such circumstances as the Board or the Committee,
upon the advice of counsel, may deem appropriate.

    

    7.04           Voting of
Plan Shares.  After a Plan Share Award (other than
a  Performance Share Award) has been made, the Recipient shall be
entitled to direct the Trustee as to the voting of the Plan Shares which are
covered by the Plan Share Award and which have not yet been earned and
distributed to him pursuant to Section 7.03, subject to rules and procedures
adopted by the Committee for this purpose.  All shares of Common Stock
held by the Trust which have not been awarded under a Plan Share Award and
shares subject to Performance Share Awards which have not yet vested and shares
which have been awarded as to which Recipients have not directed the voting
shall be voted by the Trustee in its discretion.

    

    7.05           Performance
Awards

    

    (a)           Designation
of Performance Share Awards.  The
Committee may determine to make any Plan Share Award a Performance Share Award
by making such Plan Share Award contingent upon the achievement of a Performance
Goal or any

    
      
        
           

           

        

         

      

      
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    combination
of Performance Goals.  Each Performance Share Award shall be evidenced
by a written agreement (“Award Agreement”), which shall set forth the
Performance Goals applicable to the Performance Share Award, the maximum amounts
payable and such other terms and conditions as are applicable to the Performance
Share Award.  Each Performance Share Award shall be granted and
administered to comply with the requirements of Section 162(m) of the Code, or
any successor thereto and with OTS Regulatory Bulletin 27a and Thrift Activities
Handbook Section 310, or any successors thereto.

    

    (b)           Timing of
Grants.  Any Performance Share Award shall be made not later
than 90 days after the start of the period for which the Performance Share Award
relates and shall be made prior to the completion of 25% of such
period.  All determinations regarding the achievement of any
Performance Goals will be made by the Committee.  The Committee may
not increase during a year the amount of a Performance Share Award that would
otherwise be payable upon achievement of the Performance Goals but may reduce or
eliminate the payments as provided for in the Award Agreement.

    

    (c)           Restrictions
on Grants.  Nothing
contained in the Plan will be deemed in any way to limit or restrict the
Committee from making any Award or payment to any person under any other plan,
arrangement or understanding, whether now existing or hereafter in
effect.

    

    (d)           Rights of
Recipients.  Notwithstanding
anything to the contrary herein, a Participant who receives a Performance Share
Award payable in Common Stock shall have no rights as a shareholder until the
Common Stock is issued pursuant to the terms of the Award
Agreement.

    

    (e)           Nontransferable.  Plan
Share Awards and Performance Share Awards and rights to Plan Shares shall not be
transferable by a Recipient, and during the lifetime of the Recipient, Plan
Shares may only be earned by and paid to a Recipient who was notified in writing
of an Award by the Committee pursuant to Section 6.02.  No Recipient
or Beneficiary shall have any right in or claim to any assets of the Plan or
Trust, nor shall the Corporation or any Subsidiary Company be subject to any
claim for benefits hereunder.

     

    (f)           Distribution.  No
Performance Share Award or portion thereof that is subject to the attainment or
satisfaction of a condition of a Performance Goal shall be distributed or
considered to be earned or vested until the Committee certifies in writing that
the conditions or Performance Goal to which the distribution, earning or vesting
of such Award is subject have been achieved.

    
      
        
           

           

        

         

      

      
        9

        
          

        

      

      
         

      

    

    ARTICLE
VIII

    TRUST

    

    8.01           Trust.  The
Trustee shall receive, hold, administer, invest and make distributions and
disbursements from the Trust in accordance with the provisions of the Plan and
Trust and the applicable directions, rules, regulations, procedures and policies
established by the Committee pursuant to the Plan.

    

    8.02           Management
of Trust.  It is the intent of this Plan and Trust that the
Trustee shall have complete authority and discretion with respect to the
arrangement, control and investment of the Trust, and that the Trustee shall
invest all assets of the Trust in Common Stock to the fullest extent
practicable, except to the extent that the Trustee determines that the holding
of monies in cash or cash equivalents is necessary to meet the obligations of
the Trust.  In performing its duties, the Trustee shall have the power
to do all things and execute such instruments as may be deemed necessary or
proper, including the following powers:

    

    (a)           To
invest up to one hundred percent (100%) of all Trust assets in Common Stock
without regard to any law now or hereafter in force limiting investments for
trustees or other fiduciaries.  The investment authorized herein may
constitute the only investment of the Trust, and in making such investment, the
Trustee is authorized to purchase Common Stock from the Corporation or from any
other source, and such Common Stock so purchased may be outstanding, newly
issued, or treasury shares.

    

    (b)           To
invest any Trust assets not otherwise invested in accordance with (a) above, in
such deposit accounts, and certificates of deposit, obligations of the United
States Government or its agencies or such other investments as shall be
considered the equivalent of cash.

    

    (c)           To
sell, exchange or otherwise dispose of any property at any time held or acquired
by the Trust.

    

    (d)           To
cause stocks, bonds or other securities to be registered in the name of a
nominee, without the addition of words indicating that such security is an asset
of the Trust (but accurate records shall be maintained showing that such
security is an asset of the Trust).

    

    (e)           To
hold cash without interest in such amounts as may in the opinion of the Trustee
be reasonable for the proper operation of the Plan and Trust.

    

    (f)           To
employ brokers, agents, custodians, consultants and accountants.

    

    (g)           To
hire counsel to render advice with respect to its rights, duties and obligations
hereunder, and such other legal services or representation as it may deem
desirable.

    
      
        
           

           

        

         

      

      
        10

        
          

        

      

      
         

      

    

    

    (h)           To
hold funds and securities representing the amounts to be distributed to a
Recipient or his Beneficiary as a consequence of a dispute as to the disposition
thereof, whether in a segregated account or held in common with other assets of
the Trust.

    

    Notwithstanding anything herein
contained to the contrary, the Trustee shall not be required to make any
inventory, appraisal or settlement or report to any court, or to secure any
order of court for the exercise of any power herein contained, or give
bond.

    

    8.03           Records
and Accounts.  The Trustee shall maintain accurate and detailed
records and accounts of all transactions of the Trust, which shall be available
at all reasonable times for inspection by any legally entitled person or entity
to the extent required by applicable law, or any other person determined by the
Board or the Committee.

    

    8.04           Expenses.  All
costs and expenses incurred in the operation and administration of this Plan
shall be borne by the Corporation or, in the discretion of the Corporation, the
Trust.

    

    8.05           Indemnification.  Subject
to the requirements of applicable laws and regulations, the Corporation shall
indemnify, defend and hold the Trustee harmless against all claims, expenses and
liabilities arising out of or related to the exercise of the Trustee's powers
and the discharge of its duties hereunder, unless the same shall be due to its
gross negligence or willful misconduct.

    

    ARTICLE
IX

    DEFERRED
PAYMENTS

    

    9.01           Deferral
of Plan Shares.  Notwithstanding any other provision of this
Plan, any  Recipient may elect on or before December 31, 2004 to defer
the receipt of Plan Shares granted hereunder in accordance with the Bank’s
Amended and Restated Deferred Compensation Plan.

    

    9.02           Timing of
Election.  The election to defer the delivery of any Plan
Shares must be made no later than the last day of the calendar year preceding
the calendar year in which the Recipient would otherwise have an unrestricted
right to receive such Shares.  Deferrals of eligible Plan Shares shall
only be allowed for Plan Share Awards for which all applicable restrictions
lapse while the Recipient is in active service with the Corporation or one of
the Subsidiary Companies. Any election to defer the proceeds from an eligible
Plan Share Award shall be irrevocable as long as the Recipient remains an
Employee or a Non-Employee Director.

    

     9.03          Share
Award Deferral.  The deferral of Plan Share Awards may be
elected by a Recipient subject to the rules and regulations established by the
Committee.

    
      
        
           

           

        

         

      

      
        11

        
          

        

      

      
         

      

    

    Any
shares covered by such deferred Plan Share Awards may be transferred from this
Plan to any trust created by the Bank.

    

     9.04           Accelerated
Distributions.  The Committee
may, at its sole discretion, allow for the early payment of a Participant’s
deferred Plan Share Award account in the event of an “unforeseeable emergency”
or in the event of the death or Disability of the Recipient. An “unforeseeable
emergency” means an unanticipated emergency caused by an event beyond the
control of the Recipient that would result in severe financial hardship if the
distribution were not permitted. Such distributions shall be limited to the
amount necessary to sufficiently address the financial hardship. Any
distributions under this provision shall be consistent with the Code and the
regulations promulgated thereunder.

    

    9.05            Assignability.  No rights to
deferred Recipient accounts may be assigned or subject to any encumbrance,
pledge or charge of any nature except that a Recipient may designate a
beneficiary pursuant to any rules established by the Committee.

    

    9.06            Unfunded
Status.  No Recipient or
other person shall have any  interest in any fund or in any specific
asset of the Corporation or any of its Subsidiary Companies by reason of any
amount credited pursuant to the provisions hereof. Any amounts payable pursuant
to the provisions hereof shall be paid from the general assets of the
Corporation or one of its Subsidiary Companies and no Recipient or other person
shall have any rights to such assets beyond the rights afforded general
creditors of the Corporation or one of its Subsidiary Companies. However, the
Corporation or one of its Subsidiary Companies shall have the right to establish
a reserve or trust or make any investment for the purpose of satisfying the
obligations created under this Article IX of the Plan; provided, however, that
no Recipient or other person shall have any interest in such reserve, trust or
investment.

    

    ARTICLE
X

    MISCELLANEOUS

    

    10.01         Adjustments
for Capital Changes.  The aggregate number of Plan Shares
available for distribution pursuant to the Plan Share Awards and the number of
Shares to which any unvested Plan Share Award relates shall be proportionately
adjusted for any increase or decrease in the total number of outstanding shares
of Common Stock issued subsequent to the effective date of the Plan resulting
from any split, subdivision or consolidation of shares or other capital
adjustment, the payment of a stock dividend or other increase or decrease in
such shares effected without receipt or payment of consideration by the
Corporation.  If, upon a merger, consolidation, reorganization,
liquidation, recapitalization or the like of the Corporation or of another
corporation, the
shares of the Corporation’s Common Stock shall be exchanged for other securities
of the Corporation or of another corporation, each
Recipient of a Plan Share Award shall be entitled, subject to the conditions
herein stated, to receive such number of shares of Common Stock or amount of
other securities of the Corporation or such other corporation as were
exchangeable for the number of shares of Common Stock of the Corporation which
such Recipients would have been entitled to receive except for such
action.

    
      
        
           

           

        

         

      

      
        12

        
          

        

      

      
         

      

    

    

    10.02                      Amendment
and Termination of Plan.  The Board may, by resolution, at any
time amend or terminate the Plan, subject to any required shareholder approval
or any shareholder approval which the Board may deem to be advisable for any
reason, such as for the purpose of obtaining or retaining any statutory or
regulatory benefits under tax, securities or other laws or satisfying any
applicable stock exchange listing requirements.  The Board may not,
without the consent of the Recipient, alter or impair his Plan Share Award
except as specifically authorized herein.  Notwithstanding any other
provision of the Plan, this Plan may not be terminated prior to such time as all
outstanding Plan Share Awards granted to Recipients have been earned or
forfeited in accordance with the Plan.

    

    10.03                      Employment
or Service Rights.  Neither the Plan nor any grant of a Plan
Share Award, Performance Share Award or Plan Shares hereunder nor any action
taken by the Trustee, the Committee or the Board in connection with the Plan
shall create any right on the part of any Employee or Non-Employee Director to
continue in such capacity.

    

    10.04                      Voting
and Dividend Rights.  No Recipient shall have any voting or
dividend rights or other rights of a shareholder in respect of any Plan Shares
covered by a Plan Share Award or Performance Share Award, except as expressly
provided in Sections 7.02, 7.04 and 7.05 above, prior to the time said Plan
Shares are actually earned and distributed to him.

    

    10.05                      Governing
Law.  To the extent not governed by federal law, the Plan and
Trust shall be governed by the laws of the State of Nebraska.

    

    10.06                      Effective
Date.  This Plan as originally adopted was effective as of the
Effective Date, and Awards may be granted hereunder no earlier than the date
this Plan was approved by the shareholders of the Corporation and prior to the
termination of the Plan.  Notwithstanding the foregoing or anything to
the contrary in this Plan, the implementation of this Plan was subject to the
approval of the Corporation's shareholders, which occurred at a meeting held on
April 23, 2003.  The amendment and restatement of this Plan shall
be effective as of the date set forth in Section 1.01 above.

    

    10.07                      Term of
Plan.  This Plan shall remain in effect until the earlier of
(i) ten (10) years from the Effective Date, (ii) termination by the Board, or
(iii) the distribution to Recipients and Beneficiaries of all the assets of the
Trust.

    

    10.08                      Tax
Status of Trust.  It is intended that the trust established
hereby be treated as a Grantor Trust of the Corporation under the provisions of
Section 671 et
seq. of the
Code, as the same may be amended from time to time.

    

    
      
        
           

           

        

         

      

      
        13

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
Corporation has caused this Agreement to be executed by its duly authorized
officers and the corporate seal to be affixed and duly attested, and the
Trustees of the Trust established pursuant hereto have duly and validly executed
this Agreement, all on this 17th day of December 2008.

    

    

    
      	
              TIERONE
      CORPORATION

            	
              TRUSTEES:

            

    

    

    

    

    
      
        	
                By:

              	
                /s/ Gilbert G.
      Lundstrom

              	
                /s/ Joyce Person
      Pocras

              	 

      

    

    
      	
               
      

            	
              Gilbert
      G. Lundstrom

            	
              Joyce
      Person Pocras

            

    

    Chairman of the Board and

       Chief Executive
Officer

    

                                                                                                                   
              
/s/ Campbell R.
McConnell

                                                                                                                                  
 Campbell
R. McConnell

     

     

    14

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