Document:

exv10w4

 

Exhibit 10.4

FORM OF

STOCK OPTION GRANT

(Nonqualified Stock Option)

     This STOCK OPTION GRANT (“Stock Option Grant”), dated as of _________, _________(the “Date
of Grant”), is delivered by Cash Systems, Inc. (the
“Company”) to _________ (the “Grantee”).

RECITALS

     A. The Cash Systems, Inc. 2001 Stock Option Plan (the “Plan”) provides for the grant of
options to purchase shares

     B. The Company has decided to make a stock option grant to the Grantee as an inducement for
the Grantee to promote the best interests of the Company and its stockholders.

     C. It is the intention of the Company that the stock option being issued hereunder be
considered as being issued in a transaction to which Section 422 of the Internal Revenue Code of
1986, as amended (the “Code”) applies.

     NOW THEREFORE, the Company, intending to be legally bound hereby, agrees as follows:

     1.  Grant of Option.

     Subject to the terms and conditions set forth in this Stock Option Grant and in the Plan, the
Company hereby grants to the Grantee a stock option (the
“Option”) to purchase ______ shares of
common stock of the Company (“Shares”) at an option price
of $ ______ per share. The Option shall
become vested and exercisable according to Paragraph 2 below.

     2.  Vesting of Option. The Option shall become vested and, except as set forth below,
exercisable as of the following vesting dates (as defined in the Plan) as of the applicable vesting
date.

	 	 	 	 	 
	Vesting Date	 	Vested Shares	 
	 
 
	 	 

     3.  Term of Option.

	 	(a)	 	The Option shall expire on _________, _________(the “Expiration
Date”), unless it is terminated at an earlier date pursuant to the provisions
of this Stock Option Grant or the Plan

 

 

	 	(b)	 	The Option shall automatically terminate upon the happening of
the first of the following events:

	 	(i)	 	The expiration of a 90-day period after termination of Grantee’s employment, if the
termination of employment is for any reason other than disability (as defined in the Plan), death
or cause (as defined in the Plan);
	 
	 	(ii)	 	The expiration of a one-year period after the Grantee ceases to be an employee of the
Company on account of the Grantee’s disability (as defined in the Plan);
	 
	 	(iii)	 	The expiration of a one-year period after the Grantee ceases to be employed by the
Company, if the Grantee dies while so employed by the Company or dies within 90 days after the
Grantee ceases to be employed or provide such services on account of a termination described in
Subparagraph (i) above; or
	 
	 	(iv)	 	The date on which the Grantee ceases to be an employee of the Company for cause (as
defined in the Plan).

Notwithstanding the foregoing, in no event may the Option be exercised after the Expiration Date.
Any portion of the Option that is not vested at the time the Grantee ceases to be employed by the
Company shall immediately terminate.

In the event a Grantee ceases to be employed by the Company, for cause (as defined in the Plan),
the Grantee shall automatically forfeit all shares underlying any exercised portion of an Option
for which the Company has not yet delivered the share certificates upon refund by the Company of
the exercise price paid by the Grantee for such shares.

     4.  Exercise Procedures.

	 	(a)	 	Subject to the provisions of Paragraphs 2 and 3 above, the Grantee may exercise part or
all of the vested Option by giving the Company written notice of intent to exercise in the manner
provided in Paragraph 13 below, specifying the number of Shares as to which the Option is to be
exercised. On the delivery date, the Grantee shall pay the exercise price (i) in cash, (ii)
subject to the limitations described in the Plan, by delivering Shares of the Company (duly
endorsed for transfer or accompanied by stock powers signed in blank) which shall be valued at
their fair market value on the date of delivery or, (iii) by such other method as the committee
established by the Company’s board of directors to administer the Plan (the “Committee”) may
approve, including payment through a broker in accordance with procedures permitted by Regulation T
of the Federal Reserve Board. The Committee may impose from time to time such limitations as it
deems appropriate on the use of Shares of the Company to exercise the Option.
	 
	 	(b)	 	The obligation of the Company to deliver shares upon exercise of the Option shall be
subject to all applicable laws, rules, and regulations and such approvals by governmental agencies
as may be deemed appropriate by the Committee, including such actions as Company counsel shall deem
necessary or appropriate to comply with relevant securities laws

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	 	 	 	and regulations. The Company may require that the Grantee (or other person exercising the Option
after the Grantee’s death) represent that the Grantee is purchasing Shares for the Grantee’s own
account and not with a view to or for sale in connection with any distribution of the Shares, or
such other representations as the Committee deems appropriate. All obligations of the Company
under this Stock Option Grant shall be subject to the rights of the Company as set forth in the
Plan to withhold amounts required to be withheld for any taxes, if applicable. Subject to
Committee approval, the Grantee may elect to satisfy any income tax withholding obligation of the
Company with respect to the Option by having Shares withheld up to an amount that does not exceed
the applicable withholding tax rate for federal (including FICA), state and local tax liabilities.

     5.  Change of Control. In the event of a Change of Control (as defined in the Plan), the
Option shall automatically vest and become exercisable in full.

     6.  Restrictions on Exercise. Only the Grantee may exercise the Option during the Grantee’s
lifetime. After the Grantee’s death, the Option shall be exercisable (subject to the limitations
specified in the Plan) solely by the legal representatives of the Grantee, or by the person who
acquires the right to exercise the Option by will or by the laws of descent and distribution, to
the extent that the Option is exercisable pursuant to this Stock Option Grant.

     7.  Grant Subject to Plan Provisions. This grant is made pursuant to the Plan, a copy of
which is attached hereto, and the terms of which are incorporated herein by reference, and in all
respects shall be interpreted in accordance with the Plan. The grant and exercise of the Option
are subject to the provisions of the Plan and to the interpretations, regulations and
determinations concerning the Plan established from time to time by the Committee in accordance
with the provisions of the Plan, including, but not limited to, provisions pertaining to (i) rights
and obligations with respect to withholding taxes, (ii) the registration, qualification or listing
of the shares, (iii) capital or other changes of the Company and (iv) other requirements of
applicable law. Shares issued upon exercise of the Option may be subject to transfer and other
restrictions as described in Paragraph 14. The Committee shall have the authority to interpret and
construe the Option pursuant to the terms of the Plan, and its decisions shall be conclusive as to
any questions arising hereunder.

     8.  No Employment Rights. The grant of the Option shall not confer upon the Grantee any
right to be retained by or in the employ of the Company and shall not interfere in any way with the
right of the Company to terminate the Grantee’s employment at any time. The right of the Company
to terminate at will the Grantee’s employment at any time for any reason is specifically reserved.
No policies, procedures or statements of any nature by or on behalf of the Company (whether written
or oral, and whether or not contained in any formal employee manual or handbook) shall be construed
to modify this Stock Option Grant or to create express or implied obligations to the Grantee of any
nature.

     9.  No Stockholder Rights. Neither the Grantee, nor any person entitled to exercise the
Grantee’s rights in the event of the Grantee’s death, shall have any of the rights and privileges
of a stockholder with respect to the Shares subject to the Option until certificates for Shares
have been issued upon the exercise of the Option.

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     10.  No Disclosure. The Grantee acknowledges that the Company has no duty to disclose to
the Grantee any material information regarding the business of the Company or affecting the value
of the Shares before or at the time of a termination of the Grantee’s employment, including without
limitation any plans regarding a public offering or merger involving the Company.

     11.  Assignment and Transfers. The rights and interests of the Grantee under this Stock
Option Grant may not be sold, assigned, encumbered or otherwise transferred except, in the event of
the death of the Grantee, by will or by the laws of descent and distribution. In the event of any
attempt by the Grantee to alienate, assign, pledge, hypothecate, or otherwise dispose of the Option
or any right hereunder, except as provided for in this Stock Option Grant, or in the event of the
levy or any attachment, execution or similar process upon the rights or interests hereby conferred,
the Company may terminate the Option by notice to the Grantee, and the Option and all rights
hereunder shall thereupon become null and void. The rights and protections of the Company
hereunder shall extend to any successors or assigns of the Company and to the Company’s parents,
subsidiaries, and affiliates. This Stock Option Grant may be assigned by the Company without the
Grantee’s consent.

     12.  Applicable Law. The validity, construction, interpretation and effect of this
instrument shall be governed by and determined in accordance with the laws of the State of Nevada.

     13.  Notice. Any notice to the Company provided for in this instrument shall be addressed
to the Company in care of the Chief Financial Officer at the Company’s headquarters and any notice
to the Grantee shall be addressed to such Grantee at the current address shown on the payroll of
the Company, or to such other address as the Grantee may designate to the Company in writing. Any
notice shall be delivered by hand, sent by telecopy or enclosed in a properly sealed envelope
addressed as stated above, registered and deposited, postage prepaid, in a post office regularly
maintained by the United States Postal Service.

     14.  Transfer Restrictions. The Grantee hereby acknowledges and agrees that upon exercise
of the Option, the Company may require the Grantee to execute one or more shareholders agreements
or other agreements with respect to the Shares acquired upon exercise which may, among other
things, restrict the Grantee ability to transfer the Shares.

     15.  Designation as Incentive Stock Option. The following shall apply with respect to this
Option:

     (a) This Option is designated an incentive stock option under Code Section 422. If the
aggregate fair market value of the stock on the date of the grant with respect to which incentive
stock options are exercisable for the first time by the Grantee during any calendar year, under the
Plan or any other stock option plan of the Company or a parent or subsidiary, exceeds $100,000,
then the Option, as to the excess, shall be treated as a nonqualified stock option that does not
meet the requirements of Section 422. If and to the extent that the Option fails to

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qualify as an incentive stock option under the Code, the Option shall remain outstanding according
to its terms as a nonqualified stock option.

     (b) The Grantee understands that favorable incentive stock option treatment is available only
if the Option is exercised while the Grantee is an employee of the Company or a parent or
subsidiary or within a time specified in the Code after the Grantee ceases to be an employee. The
Grantee should consult with his or her tax adviser regarding the tax consequences of the Option.

     IN WITNESS WHEREOF, the Company has caused its duly authorized officer to execute and attest
this Stock Option Grant, effective as of the Date of Grant.

	 	 	 	 	 
	 	CASH SYSTEMS, INC.

 	 
	 	By:  	 	 
	 	Its:  	 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	 

 	 
	 	Accepted:  
	 	 
	 	 	Grantee 
	 	 	 	 
	 

5exv4w1

 

Exhibit 4.1

U.S. BANCORP

Up to $309,278,375 5.875% Junior Subordinated Debentures due 2035

Officers’ Certificate Pursuant

to Section 3.1 of the Indenture

          Pursuant to authority expressly delegated by the Board of Directors of U.S. Bancorp (the
“Company”) by resolutions duly adopted by the Board of Directors, and pursuant to the Indenture
referred to below, there is hereby established a series of Securities (as that term is defined in
the Indenture) pursuant to Section 3.1 of the Junior Subordinated Indenture, dated as of April 28,
2005, as supplemented by the First Supplemental Indenture dated as of August 3, 2005, between the
Company and Delaware Trust Company, National Association, as Trustee (the “Indenture”), , the terms
of which shall be as follows (capitalized terms not defined herein shall have the meanings assigned
to them in the Indenture):

     (1) The Securities of this series shall be known and designated as the “5.875% Junior
Subordinated Debentures due 2035” of the Company (the “Debentures”). The Debentures
initially shall be issued to USB Capital VII, a Delaware statutory trust (the “Trust”). The
Trust Agreement for the Trust shall be the Second Amended and Restated Trust Agreement,
dated as of August 15, 2005, among the Company, as Sponsor, Delaware Trust Company, National
Association, as Delaware Trustee and Property Trustee, and the Administrative Trustees named
therein (the “Trust Agreement”). The Guarantee will be issued pursuant to the Guarantee
Agreement, dated as of August 15, 2005, between the Company and Delaware Trust Company,
National Association, as Guarantee Trustee.

     (2) The aggregate principal amount of Debentures which may be authenticated and
delivered under the Indenture is $309,278,375 (except for Debentures authenticated and
delivered upon registration of transfer of, or exchange for, or in lieu of, other Debentures
pursuant to Section 3.4, 3.5, 3.6, 9.6 or 11.6 of the Indenture).

     (3) The Debentures will be issued only in fully registered form and the authorized
minimum denomination of the Debentures shall be $25 principal amount and any integral
multiple thereof.

     (4) The principal amount of the Debentures shall be payable in full on August 15, 2035
subject to and in accordance with the provisions of the Indenture.

     (5) The rate at which the Debentures shall bear interest will be 5.875% per annum; the
date from which such interest shall accrue is August 15, 2005; the Interest Payment Dates
(as defined in the Indenture) on which such interest shall be payable are August 15,
November 15, February 15 and May 15 of each year, commencing November 15, 2005. Interest
payments not paid when due will themselves accrue additional interest at the annual rate of
5.875% on the amount of unpaid interest, to the extent permitted by law, compounded
quarterly. The amount of interest payable for any period will be

 

 

computed on the basis of a 360-day year comprised of twelve 30-day months. The amount
of interest payable for any period shorter than a full quarterly period will be computed on
the basis of a 30-day month and, for periods of less than a month, the actual number of days
elapsed per 30-day month.

     (6) Interest will be payable to the person in whose name a Debenture (or one or more
Predecessor Debentures) is registered at the close of business on the Regular Record Date
(as defined in the Indenture) next preceding the Interest Payment Date, except that,
interest payable on the Stated Maturity of the principal of a Debenture shall be paid to the
Person to whom principal is paid.

     (7) Interest on the Debentures shall be subject to deferral to the extent and in the
manner provided in Section 3.11 of the Indenture at any one time or from time to time for a
period not exceeding twenty (20) consecutive quarterly periods.

     (8) Payment of the principal of (and premium, if any) and interest on the Debentures
will be made at the corporate trust office of Delaware Trust Company, National Association,
in the City of New York, New York, in such coin or currency of the United States of America
as at the time of payment is legal tender for payment of public and private debts; provided,
however, that at the option of the Company payment of interest may be made (i) by check
mailed to the address of the Person entitled thereto as such address shall appear in the
Securities Register or (ii) by wire transfer in immediately available funds at such place
and to such account as may be designated by the Person entitled thereto as specified in the
Securities Register. The office where Debentures may be presented or surrendered for
payment and the office where Debentures may be surrendered for transfer or exchange and
where notices and demands to or upon the Company in respect of the Debentures and the
Indenture may be served shall be the corporate trust office of Wilmington Trust Company in
the City of New York, New York. The Trustee shall act as Paying Agent.

     (9) The Debentures are redeemable at the option of the Company, subject to the terms
and conditions of Article XI of the Indenture, at 100% of their principal amount plus
accrued and unpaid interest:

	 	•	 	in whole or in part, on one or more occasions at any time on or after August
15, 2010 or
	 
	 	•	 	in whole at any time if certain changes occur in tax or investment company
laws and regulations, or in the treatment of the Trust’s 5.875% Trust Preferred
Securities (the “Capital Securities”) for bank regulatory capital purposes
(each such event, a “Special Event”).

     If a Special Event has occurred and is continuing, and the Company cannot cure that
event by some reasonable action, then the Company may redeem the Debentures within 90 days
following the occurrence of the Special Event. A “Special Event” means the occurrence of a
“Tax Event”, a “Regulatory Capital Event” or an “Investment Company Event”.

 

 

     “Tax Event” means the receipt by the Company or the Trust of an opinion of tax counsel
(which may be the Company’s counsel or counsel of an Affiliate but not an employee and must
be reasonably acceptable to the Property Trustee) experienced in such matters, to the effect
that, as a result of:

	 	•	 	any amendment to, or change (including any announced prospective change) in,
the laws (or any regulations thereunder) of the United States or any political
subdivision or taxing authority thereof or therein; or
	 
	 	•	 	any court, governmental agency or regulatory authority interpreting or
applying such laws or regulations,

there is more than an insubstantial risk that:

	 	•	 	the Trust is, or will be within 90 days of the date of such opinion, subject
to United States federal income tax with respect to income received or accrued
on the Debentures;
	 
	 	•	 	interest payable by the Company on the Debentures is not, or within 90 days
of the date of such opinion will not be, deductible, in whole or in part, by
the Company, for United States federal income tax purposes; or
	 
	 	•	 	the Trust is, or will be within 90 days of the date of such opinion, subject
to more than a de minimis amount of other taxes, duties or other governmental
charges.

     “Regulatory Capital Event” means the reasonable determination by the Company that, as a
result of:

	 	•	 	any amendment to, or change (including any announced prospective change) in,
the laws or any applicable regulation of the United States or any political
subdivision; or
	 
	 	•	 	any official or administrative pronouncement or action or judicial decision
for interpreting or applying such laws or regulations, which amendment or
change is effective or pronouncement or decision is announced on or after the
date of original issuance of the Capital Securities,

there is more than an insubstantial risk of impairment of the Company’s ability to treat the
Capital Securities (or any substantial portion thereof) as Tier 1 capital (or its then
equivalent) for purposes of the capital adequacy guidelines of the Federal Reserve in effect
and applicable to the Company.

     “Investment Company Event” means the receipt by the Company and the Trust of an opinion
of an independent counsel experienced in matters relating to investment companies, to the
effect that, as a result of any:

	 	•	 	change in law or regulation; or

 

 

	 	•	 	change in interpretation or application of law or regulation by any
legislative body, court, governmental agency or regulatory authority (a “Change
in 1940 Act Law”),

the Trust is or will be considered an “investment company” that is required to be registered
under the Investment Company Act of 1940, which Change in 1940 Act Law becomes effective on
or after the date of original issuance of the Capital Securities.

     (10) The Debentures shall not be subject to any sinking fund or analogous provisions.

     (11) The Debentures shall be substantially in the form of Annex A attached hereto, with
such modifications thereto as may be approved by the authorized officer executing the same.
The Trust Agreement shall be substantially in the form of Annex B attached hereto, with such
modifications thereto as may be approved by the authorized officer executing the same. The
Guarantee Agreement shall be substantially in the form of Annex C attached hereto, with such
modifications thereto as may be approved by the authorized officer executing the same.

     (12) The subordination provisions of Article XIII of the Indenture shall apply.

     (13) With respect to the Debentures, the following amendment to the Indenture shall
apply:

          The following language shall be added to the end of the definitions of “Senior and
Subordinated Debt”:

“provided however, that Senior and Subordinated Debt shall not be deemed to
include any obligations in respect of debt securities issued to any trust,
or a trustee of such trust, partnership or other entity affiliated with the
Company that is a financing entity of the Company in connection with the
issuance by such financing entity of securities that are similar to the
Capital Securities.”

 

 

          IN WITNESS WHEREOF, the undersigned have executed this Officers’ Certificate as of the 15th
day of August, 2005.

	 	 	 	 	 
	 	 	 
	 	By:  	                     /s/ Daryl N. Bible
 	 
	 	 	Name:  	Daryl N. Bible 	 
	 	 	Title:  	Executive Vice President and Treasurer 	 
	 
	 	 	 
	 	By:  	                /s/ Kenneth D. Nelson
 	 
	 	 	Name:  	Kenneth D. Nelson 	 
	 	 	Title:  	Senior Vice President

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