Document:

EXHIBIT
10.5

 

TENNESSEE COMMERCE BANK

Common Stock Option

Number 1

 

1.             General Provisions. 
Tennessee Commerce Bank, a Tennessee corporation (herein called the “Company”),
for value received, and other good and valuable consideration, receipt of which
is hereby acknowledged, hereby certifies that Arthur F. Helf, or his/her/its
registered assigns (herein called the “Option Holder”) is entitled to purchase
shares of the fully paid and nonassessable Common Stock, $1.00 par value per
share, of the Company (such number and character of such shares being subject
to adjustment as provided in paragraph 4 below), at Exercise Price set forth
herein by surrendering this Option executed by the Option Holder and by paying
in full the Exercise Price for the number of shares of Common Stock as to which
this Option is exercised.  No fractional
shares shall be issued hereunder, and instead, any fractional shares created by
exercise hereunder shall be purchased by the Company at the rate of the
Exercise Price then in effect.

 

2.             Expiration Date.  This Option shall expire and all rights hereunder shall cease
on the tenth anniversary of the date of this Option, subject to any early
termination date set forth in his employment agreement with the Company.

 

3.             Number of Shares
Covered by Option; Exercise Price.  The number of shares of the Company’s  Common Stock for which this Option may be
exercised shall be a number of shares equal to 5% of the number of shares sold
in the Company’s initial offering of stock, 
subject to adjustment as provided in paragraph 4 below, which may be purchased as a whole or in part any
time upon vesting.  The price per share
for the shares purchased upon exercise of this Option shall be $10.00 per
share, subject to adjustment as provided in paragraph 4 below (the “Exercise
Price”).  The number of shares for which
this Option may be exercised shall be vested in 1/3  increments on each of the first three
anniversary dates of the Option.  The
Option Holder’s employment agreement will govern vesting in the event of
termination of employment by disability or death; otherwise, no further shares
shall vest after any other termination of service with the Company.

 

4.             Adjustments in
Number of Shares and Exercise Price.  If at any time during the period when this Option
may be exercised, the Company shall declare or pay a dividend or dividends
payable in shares of its  Common Stock
(or any security convertible into or granting rights to purchase shares or such  Common Stock) or split the then outstanding
shares of its  Common Stock into a
greater number of shares, the number of shares of  Common Stock which may be purchased upon the
exercise of this Option in effect at the time of taking of a record for such
dividend or at the time of such stock split shall be proportionately increased
and the Exercise Price proportionately decreased as of such time; and
conversely, if at any time the Company shall contract the number of outstanding
shares of its  Common Stock by combining
such shares into a smaller number of shares, the number of shares which may be
purchased upon the exercise of this Option at the time of such action shall be
proportionately decreased and the Exercise Price proportionately increased as
of such time.

 

Appropriate and similar
adjustment of the number of shares which may be purchased upon the exercise of
this Option and of the Exercise Price shall also be made in the event of any
other capital adjustment, recapitalization, reorganization, or reclassification
of the Company’s  Common Stock, or any
consolidation of the Company with, or a merger of the Company into, any other
Company, or a sale, lease or other transfer of all or substantially all of the
assets of the Company, or a distribution by the Company of its assets with
respect to its  Common Stock as a
liquidating or partial liquidating dividend, or the happening of any other
similar event affecting the  Common
Stock.  In any such event, the Option
Holder shall have the right thereafter to exercise this Option for the
acquisition of any kind and amount of shares of stock and other securities and
property to which the Option Holder would have been entitled if the Option
Holder had purchased  Common Stock of the
Company by the full exercise of this Option immediately prior to such capital
adjustment, recapitalization, reorganization, reclassification, consolidation,
merger, sale, lease, transfer, distribution or other similar event, and the
Company shall make lawful provision therefor as a part of such event.  The Company shall not effect any such
consolidation,  merger, sale,  lease or  similar transfer  involving  another Company unless, upon or prior to the
consummation thereof, 

 

 

the successor Company or the Company to which
the property of the Company has been consolidated, merger, sold, leased or otherwise
transferred shall assume by written instrument the obligation to deliver to the
Option Holder such shares of stock, securities, cash or property as in
accordance with the foregoing provisions of the Option Holder shall be entitled
to receive.  All provisions of this
Section 4 are limited to the vested portion of any such options affected at the
time such options are exercised.

 

5.             Reservation of
Shares.  The Company shall
at all times reserve and keep available a number of its authorized but unissued
shares of its  Common Stock sufficient to
permit the exercise in full of this Option.

 

6.             Sale of Option or
Shares.  Neither this
Option nor the shares to be issued hereunder have been registered under the
Securities Act, or under the securities laws of any state.  Neither this Option nor such shares to be
issued hereunder, when issued, may be sold, transferred, pledged or
hypothecated in the absence of an effective registration statement for this
Option, or the shares to be issued hereunder, as the case may be, under the
Securities Act, and such registration or qualification as may be necessary
under the securities laws of any state, or an opinion of counsel satisfactory
to the Company that such registration or qualification is not required.

 

This Option shall be
registered on the books of the Company, which shall be kept by it at its
principal office for the purpose and shall be transferable only on said books
by the registered owner hereof in person or by duly authorized attorney upon
surrender of this Option properly endorsed, and only in compliance with the
provisions of the preceding paragraph. 
In case of the exercise hereof in part only, the Company will deliver to
the Option Holder a new Option of like tenor in the name of the Option Holder
evidencing the right to purchase the number of shares as to which this Option
has not been exercised.

 

7.             Capital Call.  The Company’s primary federal regulator may
direct the Company to require the Option Holder to exercise or forfeit his
rights under this Option if the Company’s capital falls below the minimum
requirements, as determined by the Company’s state or primary federal
regulator.

 

8.             Governing Law.  This Option is to be construed and enforced
in accordance with and governed by the laws of the State of Tennessee.

 

IN WITNESS
WHEREOF, the Company
has caused this Option to be issued in its corporate name by its duly appointed
officer.

 

	
  Effective:
  January 1, 1999

  	
  TENNESSEE COMMERCE BANK

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:EXHIBIT
10.6

 

TENNESSEE COMMERCE BANK

Common Stock Option

Number 2

 

1.             General Provisions.  Tennessee Commerce Bank, a Tennessee
corporation (herein called the “Company”), for value received, and other good
and valuable consideration, receipt of which is hereby acknowledged, hereby
certifies that Michael R. Sapp, or his/her/its registered assigns (herein
called the “Option Holder”) is entitled to purchase shares of the fully paid
and nonassessable Common Stock, $1.00 par value per share, of the Company (such
number and character of such shares being subject to adjustment as provided in
paragraph 4 below), at Exercise Price set forth herein by surrendering this
Option executed by the Option Holder and by paying in full the Exercise Price
for the number of shares of Common Stock as to which this Option is
exercised.  No fractional shares shall be
issued hereunder, and instead, any fractional shares created by exercise
hereunder shall be purchased by the Company at the rate of the Exercise Price
then in effect.

 

2.             Expiration Date.  This Option shall expire and all rights
hereunder shall cease on the tenth anniversary of the date of this Option,
subject to any early termination date set forth in his employment agreement
with the Company.

 

3.             Number of Shares
Covered by Option; Exercise Price.  The number of shares of the Company’s  Common Stock for which this Option may be
exercised shall be a number of shares equal to 5% of the number of shares sold
in the Company’s initial offering of stock, 
subject to adjustment as provided in paragraph 4 below, which may be
purchased as a whole or in part any time upon vesting.  The price per share for the shares purchased
upon exercise of this Option shall be $10.00 per share, subject to adjustment
as provided in paragraph 4 below (the “Exercise Price”).  The number of shares for which this Option
may be exercised shall be vested in 1/3 increments on each of the first three
anniversary dates of the Option.  The
Option Holder’s employment agreement will govern vesting in the event of
termination of employment by disability or death; otherwise, no further shares
shall vest after any other termination of service with the Company.

 

4.             Adjustments in
Number of Shares and Exercise Price.  If at any time during the period when this Option
may be exercised, the Company shall declare or pay a dividend or dividends
payable in shares of its  Common Stock
(or any security convertible into or granting rights to purchase shares or such  Common Stock) or split the then outstanding
shares of its  Common Stock into a
greater number of shares, the number of shares of  Common Stock which may be purchased upon the
exercise of this Option in effect at the time of taking of a record for such
dividend or at the time of such stock split shall be proportionately increased
and the Exercise Price proportionately decreased as of such time; and
conversely, if at any time the Company shall contract the number of outstanding
shares of its  Common Stock by combining
such shares into a smaller number of shares, the number of shares which may be
purchased upon the exercise of this Option at the time of such action shall be
proportionately decreased and the Exercise Price proportionately increased as
of such time.

 

Appropriate and similar
adjustment of the number of shares which may be purchased upon the exercise of
this Option and of the Exercise Price shall also be made in the event of any
other capital adjustment, recapitalization, reorganization, or reclassification
of the Company’s  Common Stock, or any
consolidation of the Company with, or a merger of the Company into, any other
Company, or a sale, lease or other transfer of all or substantially all of the
assets of the Company, or a distribution by the Company of its assets with
respect to its  Common Stock as a
liquidating or partial liquidating dividend, or the happening of any other
similar event affecting the  Common
Stock.  In any such event, the Option
Holder shall have the right thereafter to exercise this Option for the
acquisition of any kind and amount of shares of stock and other securities and
property to which the Option Holder would have been entitled if the Option
Holder had purchased  Common Stock of the
Company by the full exercise of this Option immediately prior to such capital
adjustment, recapitalization, reorganization, reclassification, consolidation,
merger, sale, lease, transfer, distribution or other similar event, and the
Company shall make lawful provision therefor as a part of such event.  The Company shall not effect any such
consolidation,  merger,  sale, lease or similar transfer involving
another  Company  unless,  upon or prior to the consummation thereof, 

 

 

the successor Company or the Company to which
the property of the Company has been consolidated, merger, sold, leased or otherwise
transferred shall assume by written instrument the obligation to deliver to the
Option Holder such shares of stock, securities, cash or property as in
accordance with the foregoing provisions of the Option Holder shall be entitled
to receive.  All provisions of this
Section 4 are limited to the vested portion of any such Options affected at the
time such Options are exercised.

 

5.             Reservation of
Shares.  The Company shall
at all times reserve and keep available a number of its authorized but unissued
shares of its  Common Stock sufficient to
permit the exercise in full of this Option.

 

6.             Sale of Option or
Shares.  Neither this
Option nor the shares to be issued hereunder have been registered under the
Securities Act, or under the securities laws of any state.  Neither this Option nor such shares to be
issued hereunder, when issued, may be sold, transferred, pledged or
hypothecated in the absence of an effective registration statement for this
Option, or the shares to be issued hereunder, as the case may be, under the
Securities Act, and such registration or qualification as may be necessary
under the securities laws of any state, or an opinion of counsel satisfactory
to the Company that such registration or qualification is not required.

 

This Option shall be
registered on the books of the Company, which shall be kept by it at its
principal office for the purpose and shall be transferable only on said books
by the registered owner hereof in person or by duly authorized attorney upon
surrender of this Option properly endorsed, and only in compliance with the
provisions of the preceding paragraph. 
In case of the exercise hereof in part only, the Company will deliver to
the Option Holder a new Option of like tenor in the name of the Option Holder
evidencing the right to purchase the number of shares as to which this Option
has not been exercised.

 

7.             Capital Call.  The Company’s primary federal regulator may
direct the Company to require the Option Holder to exercise or forfeit his
rights under this Option if the Company’s capital falls below the minimum
requirements, as determined by the Company’s state or primary federal
regulator.

 

8.             Governing Law.  This Option is to be construed and enforced
in accordance with and governed by the laws of the State of Tennessee.

 

IN WITNESS
WHEREOF, the Company
has caused this Option to be issued in its corporate name by its duly appointed
officer.

 

	
  Effective:
  February 13, 1999               

  	
  TENNESSEE COMMERCE BANK

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

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