Document:

exv10w8

 

Exhibit 10.8

SOVEREIGN BANCORP, INC. 1997

NON-EMPLOYEE DIRECTORS’ STOCK OPTION PLAN

FORM OF STOCK OPTION AGREEMENT FOR

NONQUALIFIED STOCK OPTION

BETWEEN

SOVEREIGN BANCORP, INC.

AND

                      

(the Optionholder)

     Date of Grant:

     Number of Shares:

     Purchase Price:

     Option Expires:

 

 

NONQUALIFIED STOCK OPTION AGREEMENT

Number of shares subject to option:                      shares.

     This Agreement dated                                         , between Sovereign Bancorp, Inc. (the “Corporation”) and
                                         (the “Optionholder”),

WITNESSETH:

1. Grant of Option

     Pursuant to the provisions of the Sovereign Bancorp, Inc. 1997 Non-Employee Directors’ Stock
Option Plan (the “Plan”) the Corporation hereby grants to the Optionholder, subject to the terms
and conditions of the Plan and subject further to the terms and conditions herein set forth, the
right and option to purchase from the Corporation for cash, or for common stock of the Corporation
subject to the approval of the Committee (as defined in the Plan), all or any part of an aggregate
of                     shares of Common Stock (without par value) of the Corporation (“Common Stock”) at the
purchase price of $
                     per share; such option to be exercised as hereinafter provided.

2. Terms and Conditions

     It is understood and agreed that the option evidenced hereby is subject to the following terms
and conditions:

	 	(a)  	Expiration Date. Subject to the provisions of Paragraph 2(d), the
option granted hereby shall expire on                                          [not more than ten years and one
month from the date of grant].
	 
	 	(b)  	Exercise of Option. Except in the case of a “Change in Control” (as
defined in the Plan), no part of this option may be exercised until the Optionholder
has remained in the continuous service of the Corporation or of a Subsidiary of the
Corporation (as defined in the Plan) for a period of ___years after the date hereof.
	 
	 	   	This option may be exercised in whole at any time, or from time to time in part,
prior to the expiration date specified in Paragraph 2(a). Any exercise shall be

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accompanied by a written notice to the Corporation specifying the number of shares
as to which the option is being exercised. If a Change in Control occurs, the
option granted hereby shall become immediately exercisable.

	 	(c)  	Payment of Purchase Price Upon Exercise. At the time of any exercise
the purchase price of the shares as to which this option shall be exercised shall be
paid in cash (or, subject to the conditions and limitations described in the Plan, by
delivering shares of Common Stock of the Corporation or by delivering a combination of
such Common Stock and cash equal to the price per share set forth in Paragraph 1
hereof) to the Corporation.
	 
	 	(d)  	Exercise Upon Death, Disability or Termination of Service.

	 	(1)  	In the event of the death of the Optionholder while a director
of the Corporation or of a Subsidiary, this option may be exercised (whether or
not exercisable by the Optionholder immediately prior to death) by the person
or persons to whom the Optionholder’s rights under this option pass by will or
applicable law, or if no such person has such right, by the estate’s executors
or administrators, in whole at any time, or from time to time in part, within
three years after the Optionholder’s death, but in no event later than the
expiration date specified in Paragraph 2(a).
	 
	 	(2)  	If the Optionholder’s service as a director of the Corporation
or a Subsidiary terminates because of total and permanent disability, then the
Optionholder may exercise this option, to the extent that the Optionholder was
entitled to do so at the date of termination of employment due to such cause,
in whole at any time, or from time to time in part, within three years after
the date of such termination, but in no event later than the expiration date
specified in Paragraph 2(a).
	 
	 	(3)  	If the Optionholder’s service as a director of the Corporation
or a Subsidiary terminates because of retirement, then the Optionholder may
exercise this option (whether or not exercisable by the Optionholder
immediately prior to retirement), in whole at any time, or from time to

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time in part, within three years after the date of such retirement, but in
no event later than the expiration date specified in Paragraph 2(a).

	 	(4)  	If the Optionholder resigns from service as a director of the
Corporation or a Subsidiary (other than for retirement), or is removed from
office for cause, then the option will expire on the date of such termination
of service. Notwithstanding the foregoing, an Optionholder who resigns from
service as a director of the Corporation or a Subsidiary after attainment of
age 65 and the accumulation of at least ten (10) years of service as a director
of the Corporation or a Subsidiary may exercise this option (whether or not
exercisable by the Optionholder immediately prior to such resignation) in whole
at any time, or from time to time in part, within three years after the date of
such resignation, but in no event later than the expiration date specified in
Paragraph 2(a).

	 	(e)  	Transferability. This option shall not, except as provided in the
Plan, be transferable other than by will or by the laws of descent and distribution.
During the lifetime of the Optionholder, this option shall be exercisable only by the
Optionholder.
	 
	 	(f)  	Adjustments. In the event of any change in the Common Stock of the
Corporation by reason of any stock dividend, recapitalization, reclassification,
merger, consolidation, split-up, combination or exchange of shares, or of any similar
change affecting the Common Stock, then in any such event the number and kind of shares
subject to this option and their purchase price per share shall be appropriately
adjusted consistent with such change. If any other change in the number or kind of the
outstanding shares of stock of the Corporation occurs, an adjustment may be made to the
number and kind of shares subject to this Option and their purchase price per share in
such manner as a majority of the disinterested members of the Board of Directors may
deem equitable to prevent substantial dilution or enlargement of the rights granted to
the Optionholder hereunder. Any adjustment so made shall be final and binding upon the
Optionholder.

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	 	(g)  	No Rights As Stockholder. The Optionholder shall have no rights as a
stockholder with respect to any shares of Common Stock subject to this option prior to
the date of issuance of a certificate or certificates for such shares.
	 
	 	(h)  	No Right to Continued Service. This option shall not confer upon the
Optionholder any right with respect to continuance of service with the Corporation or
any Subsidiary.
	 
	 	(i)  	Compliance with Law and Regulations. This option and the obligation
of the Corporation to sell and deliver shares 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 (1)
the listing of such shares on any stock exchange on which the Common Stock may then be
listed and (2) the completion of any registration or qualification of 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.

3. Investment Representation

     The Committee appointed pursuant to Section 1 of the Plan may require the Optionholder to
furnish to the Corporation, prior to the issuance of any shares upon the exercise of all or any
part of this option, an agreement (in such form as such Committee may specify) in which the
Optionholder represents that the shares acquired upon exercise are being acquired for investment
and not with a view to the sale or distribution thereof.

4. Optionholder Bound By Plan

     The Optionholder hereby acknowledges receipt of a copy of the Plan and any amendments thereto,
and agrees to be bound by all the terms and provisions thereof, which, to the extent relevant, are
incorporated herein by reference.

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5. Notices

     Any notice hereunder to the Corporation shall be addressed to it at its office, 1130 Berkshire
Boulevard, Wyomissing, Pennsylvania 19610; Attention: Corporate Secretary, and any notice
hereunder to Optionholder shall be addressed to him or her at the address below, subject to the
right of either party to designate at any time hereafter in writing some other address.

     IN WITNESS WHEREOF, Sovereign Bancorp, Inc. has caused this Agreement to be executed by a duly
authorized officer and the Optionholder has executed this Agreement, both as of the day and year
first above written.

	 	 	 	 	 
	SOVEREIGN BANCORP, INC.	 	OPTIONHOLDER
	 
	 	 	 	 
	By

	 	 	 	 
	    

	 	 	 	 
	

	 	By	 	 
	

	 	 	 	 
	 
	 	 	 	 
	Jay Sidhu
	 	 	 	 
	President and
	 	 	 	 
	Chief Executive Officer
	 	 	 	 

5exv10w9

 

Exhibit 10.9

SOVEREIGN BANCORP, INC. 1996 STOCK OPTION PLAN

FORM OF STOCK OPTION AGREEMENT FOR

INCENTIVE STOCK OPTION

BETWEEN

SOVEREIGN BANCORP, INC.

AND

                                     

(the Optionholder)

	 	 	 	 	 
	Date of Grant:
	 	______________
	 
	 	 	 	 
	Number of Shares:
	 	______________
	 
	 	 	 	 
	Purchase Price
	 	$_____________
	 
	 	 	 	 
	Option Expires:
	 	______________

 

 

INCENTIVE STOCK OPTION AGREEMENT

Number of shares subject to
option:             shares.

     This
Agreement
dated                                  , between SOVEREIGN BANCORP, INC. (the
“Corporation”) and                                             (the “Optionholder”),

WITNESSETH:

     1. Grant of Option.

     Pursuant to the provisions of the Sovereign Bancorp, Inc. 1996 Stock Option Plan (the “Plan”)
the Corporation hereby grants to the Optionholder, subject to the terms and conditions of the Plan
and subject further to the terms and conditions herein set forth, the right and option to purchase
from the Corporation for cash, or for common stock of the Corporation subject to the approval of
the Committee (as defined in the Plan), all or any part of an
aggregate of             shares of Common
Stock (without par value) of the Corporation (“Common
Stock”) at the purchase price of $                       
per share; such option to be exercised as hereinafter provided.

     2. Terms and Conditions.

     It is understood and agreed that the option evidenced hereby is subject to the following terms
and conditions:

     (a) Expiration Date. Subject to the provisions of Paragraph 2(d), the option granted
hereby shall expire
on                                                                    [not more than 10 years from the date
of grant, except for an option granted to a 10% shareholder, which shall be limited to 5 years].

     (b) Exercise of Option. Except in the case of a “Change in Control” (as defined in
the Plan), no part of this option may be exercised until the Optionholder has remained in the
continuous employ of the Corporation or of a Subsidiary of the Corporation (as defined in the Plan)
for a period of                        years after the date hereof.

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         This option may be exercised in whole at any time, or from time to time in part, prior to the
expiration date specified in Paragraph 2(a). Any exercise shall be accompanied by a written notice
to the Corporation specifying the number of shares as to which the option is being exercised. If a
Change in Control occurs, the option granted hereby shall become immediately exercisable.

     (c) Payment of Purchase Price Upon Exercise. At the time of any exercise, the
purchase price of the shares as to which this option shall be exercised shall be paid in cash (or,
subject to the conditions and limitations described in the Plan, by delivering shares of Common
Stock of the Corporation or by delivering a combination of such Common Stock and cash equal to the
price per share set forth in Paragraph 1 hereof) to the Corporation.

     (d) Exercise Upon Death, Disability or Termination of Employment.

         (1) In the event of the death of the Optionholder while an employee of the Corporation or of a
Subsidiary, this option may be exercised, to the extent that the Optionholder was entitled to do so
at the date of termination of employment due to such cause, by the person or persons to whom the
Optionholder’s rights under this option pass by will or applicable law, or if no such person has
such right, by the estate’s executors or administrators, in whole at any time, or from time to time
in part, within one year after the Optionholder’s death, but in no event later than the expiration
date specified in Paragraph 2(a).

         (2) If the Optionholder’s employment with the Corporation or a Subsidiary terminates because
of total and permanent disability, then the Optionholder may exercise this option, to the extent
that the Optionholder was entitled to do so at the date of termination of employment due to such
cause, in whole at any time, or from time to time in part, within one year after the date of such
termination, but in no event later than the expiration date specified in Paragraph 2(a).

         (3) If the Optionholder’s employment with the Corporation or a Subsidiary terminates because
of normal or deferred retirement as defined in the Sovereign Bancorp, Inc. 401(k) Retirement Plan,
then the Optionholder may exercise this option, to the extent that the Optionholder was entitled to
do so at the date of normal or deferred retirement, in whole at any

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time, or from time to time in part, within three months after the date of such termination of
employment, but in no event later than the expiration date specified in Paragraph 2(a).

         (4) If the Optionholder’s employment with the Corporation or a Subsidiary is voluntarily
terminated by the Optionholder (other than for normal or deferred retirement as defined in the
Sovereign Bancorp, Inc. 401(k) Retirement Plan), then the option will expire on the date of such
termination of employment.

         (5) Except as otherwise provided in (6) below, if the Optionholder’s employment is terminated
at the election of the Corporation or a Subsidiary, then the Optionholder may exercise this option,
to the extent the Optionholder was entitled to do so at the date of such termination of employment,
in whole at any time, or from time to time in part, within three months after the date of such
termination of employment, but in no event later than the expiration date specified in Paragraph
2(a).

         (6) Notwithstanding anything herein to the contrary, if the Optionholder’s employment is
terminated by the Corporation or a Subsidiary “for cause” (as such term is defined in the Plan),
all rights to exercise this option shall terminate at the date of such termination of employment.

     (e) Nontransferability. This option shall not be transferable other than by will or
by the laws of descent and distribution. During the lifetime of the Optionholder, this option
shall be exercisable only by the Optionholder.

     (f) Adjustments. In the event of any change in the Common Stock of the Corporation by
reason of any stock dividend, recapitalization, reclassification, merger, consolidation, split-up,
combination or exchange of shares, or of any similar change affecting the Common Stock, then in any
such event the number and kind of shares subject to this option and their purchase price per share
shall be appropriately adjusted consistent with such change. If any other change in the number or
kind of the outstanding shares of stock of the Corporation occurs, an adjustment may be made to the
number and kind of shares subject to this option and their purchase price per share in such manner
as a majority of the disinterested members of the Board of Directors may deem equitable to prevent
substantial dilution or enlargement of the rights

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granted to the Optionholder hereunder. Any adjustment so made shall be final and binding upon
the Optionholder.

     (g) No Rights as Stockholder. The Optionholder shall have no rights as a stockholder
with respect to any shares of Common Stock subject to this option prior to the date of issuance of
a certificate or certificates for such shares.

     (h) No Right To Continued Employment. This option shall not confer upon the
Optionholder any right with respect to continuance of employment by the Corporation or any
Subsidiary, nor shall it interfere in any way with the right of the Corporation or any Subsidiary
to terminate the Optionholder’s employment at any time.

     (i) Compliance with Law and Regulations. This option and the obligation of the
Corporation to sell and deliver shares 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 (1) the listing of such shares on any stock exchange on which the
Common Stock may then be listed and (2) the completion of any registration or qualification of 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.

     3. Investment Representation.

         The Committee appointed pursuant to Article 3 of the Plan may require the Optionholder to
furnish to the Corporation, prior to the issuance of any shares upon the exercise of all or any
part of this option, an agreement (in such form as such Committee may specify) in which the
Optionholder represents that the shares acquired upon exercise are being acquired for investment
and not with a view to the sale or distribution thereof.

     4. Optionholder Bound by Plan.

         The Optionholder hereby acknowledges receipt of a copy of the Plan and any amendments thereto,
and agrees to be bound by all the terms and provisions thereof, which, to the extent relevant, are
incorporated herein by reference.

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     5. Notices.

         Any notice hereunder to the Corporation shall be addressed to it at its office, 1130 Berkshire
Boulevard, Wyomissing, Pennsylvania 19610; Attention: Executive Compensation Manager, and any
notice hereunder to Optionholder shall be addressed to him or her at the address below, subject to
the right of either party to designate at any time hereafter in writing some other address.

         IN WITNESS WHEREOF, Sovereign Bancorp, Inc. has caused this Agreement to be executed by a duly
authorized officer and the Optionholder has executed this Agreement, both as of the day and year
first above written.

	 	 	 	 	 
	SOVEREIGN BANCORP, INC.	 	OPTIONHOLDER
	 
	 	 	 	 
	By
	 	 	 	 
	

	 	 
	 	 
	

	 	     (Signature)
	 	(Signature)
	

	 	     Jay S. Sidhu	 	 
	

	 	     President and Chief Executive Officer	 	 
	

	 	 	 	 
	

	 	 	 	(Print Address)

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