Document:

forms8_postamend1exh4-2.htm

    Exhibit
4.2

    STATE
BANCORP, INC.

    

    2006
Equity Compensation Plan Restricted Stock Award Agreement

    

    This
agreement (the “Award Agreement”) dated as of _________ ___, ____ (the “Award
Date”), is entered into by and between State Bancorp, Inc., a New York
corporation (the “Company”) and ___________________________________ (the
“Grantee”). All capitalized terms used and not otherwise defined herein shall
have the meanings ascribed to them by the State Bancorp, Inc. 2006 Equity
Compensation Plan (the “Plan”).

    

    1.        General. The Restricted Stock
granted under this Award Agreement (the “Restricted Stock Award”) is granted as
of the Award Date pursuant to and subject to all of the provisions of the Plan
applicable to Restricted Stock granted pursuant to Section 8 of the Plan, which
provisions are, unless otherwise provided herein, incorporated by reference and
made a part hereof to the same extent as if set forth in their entirety herein,
and to such other terms necessary or appropriate to the grant hereof having been
made. A copy of the Plan is on file in the offices of the Company.

    

    2.        Grant. In consideration of the
Grantee’s past service to the Company or its Subsidiaries, the Company hereby
awards to Grantee a total of __________ shares of Restricted Stock (the
“Restricted
Stock”), subject to the restrictions set forth in Section 3 hereof and in the
Plan.

    

    
      	
              3.

            	
              Restrictions.

            

    

    

    
      	
               
      

            	
              a.

            	
              During
      the period commencing as of the Award Date and until such time as the
      Restricted Stock shall have fully vested in accordance with Section 3d
      (the “Restricted Period”), the Restricted Stock shall remain subject to
      forfeiture and other restrictions set forth
  below.

            

    

    

    
      	
               
      

            	
              b.

            	
              During
      the Restricted Period and during the additional period (if any) commencing
      at the expiration of the Restricted Period and ending on the later of the
      first anniversary of the date on which the Restricted Stock fully vests or
      the first anniversary of the Grantee’s termination of employment with the
      Company and its Subsidiaries and affiliates for any reason (the
      “Supplemental Period”), the Restricted Stock shall remain subject to the
      provisions of Section 17 hereof.  If the Grantee violates the
      restrictions of Section 17 hereof during the Restricted Period or the
      Supplemental Period, the Company shall have the right, but not the
      obligation, to declare the Restricted Stock forfeited; in such event, the
      Company shall repurchase the Restricted Stock from the Grantee in
      consideration for a cash payment equal to the monetary payment (if any)
      made by the Grantee to the Company to acquire the Restricted Stock or $.01
      per share.  Such right shall be exercised no later than thirty
      days after the expiration of the Restricted Period and the Supplemental
      Period.

            

    

    

    
      	
               
      

            	
              c.

            	
              None
      of the shares of Restricted Stock may be sold, exchanged, transferred,
      pledged, hypothecated, assigned or otherwise encumbered or disposed of
      until they shall have fully vested in accordance with Section
      3d.

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

       

       

    

    
      	
               

               
      

            	
              d.

            	
              Subject
      to the Grantee’s continued employment with the Company (or a Subsidiary
      thereof), and except as provided below, the Restricted Stock shall vest
      one third after the expiration of the third year after the Award Date, one
      third after the expiration of the fourth year after the Award Date and the
      remainder to vest after the expiration of the fifth year after the Award
      Date (each a “Vesting Date”).

            

    

    

    
      	
               
      

            	
              e.

            	
              In
      the event of the Grantee’s death or Disability while the Grantee remains
      employed by the Company (or a Subsidiary thereof), the Restricted Stock
      shall become vested on a pro rated basis based upon the number of months
      of the Grantee’s employment since the Award Date. In the event the
      Grantee’s employment with the Company (or a Subsidiary thereof) terminates
      for any reason other than by death or Disability prior to the Vesting
      Date, the Restricted Stock shall be forfeited
  immediately.

            

    

    

    
      	
               
      

            	
              f.

            	
              Notwithstanding
      anything to the contrary herein, if the Company is not the surviving
      corporation following a Change in Control, and the Acquiror does not
      assume the Restricted Stock or does not substitute equivalent equity
      awards relating to the securities of such Acquiror or its affiliates for
      the Restricted Stock, then the Restricted Stock shall become fully vested
      and all restrictions will immediately
lapse.

            

    

    

    
      	
               
      

            	
              g.

            	
              Notwithstanding
      anything to the contrary herein, if the Company is the surviving
      corporation following a Change in Control, or the Acquiror assumes the
      Restricted Stock or substitutes equivalent equity awards relating to the
      securities of such Acquiror or its affiliates for the Restricted Stock,
      then the Restricted Stock or such substitute therefore shall remain
      outstanding and be governed by their respective terms and the provisions
      of the Plan, except, however, if the Grantee’s employment with the Company
      (and its Subsidiaries) is terminated for any reason other than “cause”
      within eighteen (18) months following a Change in Control, then the
      Restricted Stock shall immediately become fully vested and all
      restrictions will immediately lapse.  For this purpose, “cause”
      shall have the meaning assigned to such term under an employment agreement
      or change in control agreement between the Company and the Grantee in
      effect on the date of this Award Agreement and, in the absence of such an
      employment agreement or change in control agreement, shall
      mean:

            

    

    

    
      	
               
      

            	
              (i)

            	
              fraud,
      misappropriation or intentional material damage to the property or
      business of the Company or any Subsidiary,
or

            

    

    

    
      	
              (ii)  

            	
              commission
      of a felony whose determination is final and non-appealable, or entry of a
      plea of guilty or no contest to the commission of a felony,
    or

            

    

    

    
      	
              (iii)  

            	
              material
      violation of any material law, rule or regulation applicable to the
      Company or any Subsidiary or its respective
  business.

            

    

    

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    

    
      	
               
      

            	
              For
      purposes of this provision, no act or failure to act, on the part of the
      Grantee, shall be considered “intentional” unless it is done, or omitted
      to be done, by the Grantee in bad faith or without reasonable belief that
      the grantee’s action or omission was in the best interests of the
      Company.  Any act, or failure to act, based upon authority given
      pursuant to a resolution duly adopted by the Board or upon the
      instructions of the Chief Executive Officer or a senior officer of the
      Company or based upon the advice of counsel for the Company shall be
      conclusively presumed to be done, or omitted to be done, by the Grantee in
      good faith and in the best interests of the
  Company.

            

    

    

    
      	
               
      

            	
              h.

            	
              Within
      thirty (30) days following the vesting of the Restricted Stock and the
      expiration of the Supplemental Period, the vested portion of the
      Restricted Stock will be distributed to the Grantee or his or her legal
      representative. Notwithstanding the foregoing, distribution of the
      Restricted Stock shall be made in compliance with Section 409A of the
      Internal Revenue Code of 1986, as amended, and the regulations promulgated
      thereunder. By signing this Award Agreement, the Grantee specifically
      acknowledges that the foregoing sentence may result in a six (6) month
      delay in the distribution of the Restricted Stock Award
      hereunder.

            

    

    

    
      	
               
      

            	
              i.

            	
              During
      the Restricted Period and the Supplemental Period, the Restricted Stock
      shall be recorded in a book entry account in the name of the
      Grantee.

            

    

    

    4.        Rights as Stockholder. The Grantee shall
be entitled to receive dividends and shall have the right to vote the Restricted
Stock granted hereunder and shall have all other shareholders’ rights with
respect to the Restricted Stock, with the exception that (i) the Grantee will
not be entitled to delivery of the stock certificate representing the Restricted
Stock during the Restricted Period and the Supplemental Period, (ii) the Company
will retain custody of the Restricted Stock during the Restricted Period and the
Supplemental Period, (iii) failure to attain any vesting conditions established
by the Committee and set forth in this Award Agreement shall cause the
forfeiture of the Restricted Stock in exchange for the payment of the cash
purchase price, if any, paid by the Grantee and (iv) if any dividends are paid
in shares of Stock or any other adjustment is made upon a change in the capital
structure of the Company, any new, substituted or additional securities or other
property (other than normal cash dividends) to which the Grantee is entitled by
reason of his or her Restricted Stock Award will be immediately subject to the
same restrictions as the Restricted Stock with respect to which they were
issued.

    

    5.       
Other Terms and Conditions.
The Committee shall have the discretion to determine such other terms and
provisions hereof as stated in the Plan.

    

    6.        No Right to Employment.
Nothing herein shall be deemed to (a) create any obligation on the part
of the Company or any Subsidiary to retain the Grantee in the employ of, or
continue the provision of services to, the Company or any Subsidiary or (b) be
evidence of any agreement or understanding, express or implied, that the Grantee
has a right to continue as an employee for any period of time or at any
particular rate of compensation.

    

    

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    

    7.       
Governing Law. The
validity, construction, interpretation and enforceability of this Award
Agreement shall be determined and governed by the laws of the State of New York
without regard to any conflicts or choice of law rules or principles that might
otherwise refer construction or interpretation of this Award Agreement to the
substantive law of another jurisdiction.

    

    8.        Waiver. The waiver by the
Company of a breach of any provision of this Award Agreement by Grantee shall
not operate or be construed as a waiver of any subsequent breach by
Grantee.

    

    9.        Binding Effect. The provisions
of this Award Agreement shall be binding upon the parties hereto, their
successors and assigns, including, without limitation, the Company, its
successors or assigns, the estate of the Grantee and the executors,
administrators or trustees of such estate and any receiver, trustee in
bankruptcy or representative of the creditors of the Grantee.

    

    10.      Severability. The provisions
of this Award Agreement are severable and if any one or more provisions may be
determined to be illegal or otherwise unenforceable, in whole or in part, the
remaining provisions, and any partially unenforceable provision to the extent
enforceable in any jurisdiction, shall nevertheless be binding and
enforceable.

    

    11.      No Impact on Benefits.
Restricted Stock Awards are not compensation for purposes of calculating a
Grantee’s rights under any employee benefit plan that does not specifically
require the inclusion of Restricted Stock Awards in calculating
benefits.

    

    12.      Beneficiary Designation. Each
Grantee may name a beneficiary or beneficiaries to receive any Restricted Stock
that is vested at the Grantee’s death by executing and delivering to the Company
a Beneficiary Designation Form in the form attached hereto. Each designation
will revoke all prior designations made by the same Grantee and will be
effective only when filed in writing with the Committee. If a Grantee has not
made an effective beneficiary designation, the deceased Grantee’s beneficiary
will be the Grantee’s surviving spouse or, if none, the deceased Grantee’s
estate. The identity of a Grantee’s designated beneficiary will be based only on
the information included in the latest Beneficiary Designation Form completed by
the Grantee and delivered to the Company and will not be inferred from any other
evidence.

    

    13.      Tax Withholding. The grant of
the Restricted Stock Award hereunder does not result in any immediate tax
liability for the Grantee. However, the Grantee will have taxable income at the
time the Restricted Stock Award becomes vested. The Company shall have the power
and the right to deduct or withhold, or require a Grantee to remit to the
Company, the minimum statutory amount to satisfy federal, state and local taxes
required by law or regulation to be withheld as a result of the vesting of the
Restricted Stock acquired under this grant. In the event that the Company
determines that any federal, state, local or foreign tax or withholding payment
is required relating to the vesting of shares arising from this grant, the
Company shall have the right to require such payments from Grantee, or withhold
such amounts from other payments due Grantee from the Company or any
Subsidiary.

    

    14.    
Compliance with Securities Laws.

    

    
      	
               
      

            	
              a.

            	
              No
      Restricted Stock Award may be exercised or shares of Stock issued pursuant
      to a Restricted Stock Award unless (1) a registration statement under the
      Securities Act of 1933, as amended (the “Securities Act”), shall at the
      time of exercise or issuance be in effect with respect to the shares
      issuable pursuant to such award or (2) in the opinion of legal counsel to
      the Company, the shares issuable pursuant to such award may be issued in
      accordance with the terms of an applicable exemption from the registration
      requirements of the Securities Act.

            

    

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

       

       

    

    
      	
               
      

            	
              b.

            	
              The
      Company may place upon any stock certificate for shares of Stock issued
      pursuant to a Restricted Stock Award the following legend or such other
      legend as the Board may prescribe to prevent disposition of the shares in
      violation of the Securities Act or other applicable
  law:

            

    

    

    “THE
SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933 (‘ACT’) AND MAY NOT BE SOLD, PLEDGED,
HYPOTHECATED, OR OTHERWISE TRANSFERRED OR OFFERED FOR SALE IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT WITH RESPECT TO THEM UNDER THE ACT, AND/OR
COMPLIANCE WITH RULE 144 OF THE ACT OR A WRITTEN OPINION OF COUNSEL FOR STATE
BANCORP, INC. THAT SUCH REGISTRATION OR COMPLIANCE IS NOT
REQUIRED.”

    

    
      	
               
      

            	
              c.

            	
              The
      inability of the Company to obtain from any regulatory body having
      jurisdiction the authority, if any, deemed by the Company’s legal counsel
      to be necessary to the lawful issuance and sale of any shares hereunder
      shall relieve the Company of any liability with respect to the failure to
      issue or sell such shares as to which the requisite authority shall not
      have been obtained. As a condition to the issuance of any Stock, the
      Company may require the Grantee to satisfy any qualifications that may be
      necessary or appropriate to evidence compliance with any applicable law or
      regulation or to make any representation or warranty with respect thereto
      as may be requested by the Company.

            

    

    

    15.            
Gender and Number.
Except where otherwise indicated by the context, any masculine term used
herein also shall include the feminine, the plural shall include the singular,
and the singular shall include the plural.

    

    16.             
Severability. In the event any
provision of this Award Agreement shall be held illegal or invalid for any
reason, the illegality or invalidity shall not affect the remaining parts
hereof, and this Award Agreement shall be construed and enforced as if the
illegal or invalid provision had not been included.

    

    17.             
Restrictive
Covenants.  The Company and its Subsidiaries conduct a consumer
and business banking business (the “Company’s Business”).  For all
purposes of this Section 17, the Company’s Geographic Market shall be any town,
county, village or other municipal unit by which the Company or any Subsidiary
maintains an office, and any contiguous town, county, village or municipal unit
(the “Company’s Geographic Market”).  The Grantee agrees to the
following covenants:

    

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    

    
      	
              (i)  

            	
              Confidential
      Information.  Unless he obtains the prior written consent
      of the Company, the Grantee shall keep confidential and shall refrain from
      using for the benefit of himself, or any person or entity other than the
      Company and its Subsidiaries (the Company and such Subsidiaries
      collectively, the “Company’s Affiliated Group”), any material document or
      information obtained from a member of the Company’s Affiliated Group in
      the course of his employment with any of them concerning their current or
      planned future properties, operations or business, including but not
      limited to information concerning the Company’s customers (the
      “Confidential Information”) unless and until such document or information
      is readily ascertainable from public or published information or trade
      sources or has otherwise been made available to the public through no
      fault of his own; provided, however, that nothing in this Section 17(a)(i)
      shall prevent the Grantee, with or without the Company’s consent, from
      participating in or disclosing documents or information in connection with
      any judicial or administrative investigation, inquiry or proceeding to the
      extent that such participation or disclosure is compelled under applicable
      law; in such event, the Grantee shall, to the extent practicable under the
      circumstances, notify the Company in advance of and afford the Company an
      opportunity, at its own expense, to take action to prevent or limit the
      scope of such participation or
disclosure.

            

    

    

    
      	
              (ii)  

            	
              Proprietary
      Information.  The Grantee acknowledges that, during the
      course of his employment, he will, alone or jointly with others, develop
      or have access to information (whether in written, oral, electronic or
      other form) concerning the Company’s Affiliated Group’s business plans,
      marketing plans, methods and surveys, product and service design,
      development and pricing plans and methods, customer lists, prospect lists,
      customer relationship information and need assessments, profitability
      assessments, technology, service marks, trademarks and other intellectual
      property, trade secrets, know-how and other proprietary information
      concerning the Company’s Affiliated Group (the “Proprietary Information”).
      The Grantee acknowledges that all such Proprietary Information is, as
      between the Grantee and the Company’s Affiliated Group, the sole property
      of the Company’s Affiliated Group and that the Grantee has no right, title
      or interest therein.  During his employment with the Company and
      at all times thereafter, the Grantee shall refrain from using any
      Proprietary Information for the benefit of any person or entity other than
      the Company’s Affiliated Group.  At any time upon the Company’s
      request, and in any event upon his termination of employment with the
      Company, the Grantee shall promptly return to the Company all Proprietary
      Information in his possession in any form or media and all laptop
      computers, cell phones and other property of the Company’s Affiliated
      Group in his possession and shall, if requested to do so by the Company,
      certify in writing that any Proprietary Information not so returned has
      been destroyed.

            

    

    

    
      	
              (iii)  

            	
              Non-derogation.  While
      employed by the Company or any Subsidiary and at all times thereafter, the
      Grantee shall refrain from making any statement (whether or not in
      writing) concerning the Company’s Affiliated Group or its business,
      operations, customers, directors, officers, employees or owners that he
      intends, or that a reasonable person acting in like circumstances would
      expect, to impair in any respect the Company’s Affiliated Group’s
      business, operations or reputation.

            

    

    
 

    
      
         

      

      
        6

        
          

        

      

      
         

      

       

       

    

    
      	
              (iv)  

            	
              Solicitation.  The
      Grantee, for a period of one (1) year following his termination of
      employment with the Company or any Subsidiary, shall not, without the
      written consent of the Company, either directly or
    indirectly:

            

    

    

    
      	
              (a)  

            	
              solicit,
      offer employment to, or take any other action intended, or that a
      reasonable person acting in like circumstances would expect, to have the
      effect of causing any officer or employee of the Company’s Affiliated
      Group to terminate his or her employment and accept employment or become
      affiliated with, or provide services with or without compensation in any
      capacity whatsoever to, any person or entity engaged in a business or line
      of business or providing a product or service in direct or indirect
      competition with the Company’s Business in the Company’s Geographic
      Market;

            

    

    
      	
              (b)  

            	
              provide
      any information, advice or recommendation with respect to any such officer
      or employee to any person or entity that is intended, or that a reasonable
      person acting in like circumstances would expect, to have the effect of
      causing, encouraging or enabling any officer or employee of the Company’s
      Affiliated Group to terminate his employment and accept employment or
      become affiliated with, or provide services with or without compensation
      in any capacity whatsoever to, any person or entity engaged in a business
      or line of business or providing a product or service in direct or
      indirect competition with the Company’s Business in the Company’s
      Geographic Market; or

            

    

    
      	
              (c)  

            	
              directly
      or indirectly solicit, or facilitate in any manner any other person’s or
      entity’s solicitation of, business in competition with the Company’s
      Business in the Company’s Geographic market from (I) any of the Company’s
      customers with whom the Grantee served as a relationship manager, or whom
      the Grantee was assigned to solicit on behalf of the Company, at any time
      during the period of one (1) year ending on the date of his termination of
      employment; (II) any other person or entity which the Grantee knows to be
      one of the Company’s customers, or (III) any other person or entity which
      the Grantee knows is being actively solicited by the Company on, or had
      been identified for active solicitation by the Company at any time during
      the period of one (1) year ending on the date of his termination of
      employment with the Company.

            

    

    

    
      	
              (b)  

            	
              Reasonableness of
      Covenants.  The Grantee acknowledges that:  (i)
      the Company has a legitimate business interest in preserving its
      investment in its Confidential Information and Proprietary Information,
      and the Company’s customers; (ii) the restrictions set forth in this
      Section 17 constitute reasonable restrictions to protect the Company’s
      legitimate business interests; (iii) such restrictions are reasonable in
      duration, geographic scope and scope of business protected; (iv) observing
      such restrictions will not unreasonably impair the Employee’s ability to
      seek or secure employment following his termination of employment with the
      Company; and (v) his employment by the Company constitute adequate
      consideration for his adherence to such restrictions.  The
      Grantee hereby waives his right, in any action or proceeding relating to
      the enforcement or enforceability of the provisions of this Section 17, to
      make any argument or assertion to the
contrary.

            

    

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

       

       

    

    
      	
              (c)  

            	
              Reasonable of
      Damages.  The Grantee hereby acknowledges that the
      forfeiture of the Restricted Stock as provided herein constitutes
      reasonable but non-exclusive damages and waives his right, in any action
      or proceeding relating to the enforcement or enforceability of the
      provisions of this Section 17, to make any argument or assertion to the
      contrary.

            

    

    

    
      	
              (d)  

            	
              Specific Performance.
        The Grantee acknowledges that money damages will not be
      an adequate remedy for his failure to observe or perform any of the
      covenants set forth in Section 17(a).  Therefore, the Company
      shall have the right to apply to any court of competent jurisdiction for
      equitable relief, including but not limited to a temporary restraining
      order or injunction ordering specific performance.  The Grantee
      hereby waives his right, in any action or proceeding relating to any
      application for equitable relief, to make any argument or assertion to the
      contrary.

            

    

    

    
      	
              (e)  

            	
              Notification to Subsequent
      Employers and Potential Employers.  Prior to accepting
      employment with any person or entity other than a member of the Company’s
      Affiliated Group, the Grantee shall disclose to such person or entity the
      existence of this Agreement and furnish such person or entity with a copy
      hereof.  The Company reserves the right, and the Grantee hereby
      authorizes the Company (i) to notify any person or entity making a
      pre-hire or post-hire inquiry of the Company concerning the Grantee of the
      existence of this Agreement and to furnish to such person or entity a copy
      hereof and (ii) to notify any person or entity engaged in a business or
      line of business or providing products or services in direct or indirect
      competition with the Company’s Business in the Company’s Geographic Market
      by whom the Grantee is subsequently employed, or with whom the Grantee is
      subsequently affiliated as an owner, investor, financier, director,
      officer, employee, independent contractor, vendor or service provider,
      whether for or without compensation, of the existence of this Agreement
      and to furnish to such person or entity a copy
  hereof.

            

    

    

    
      	
              (f)  

            	
              Reformation or
      Modification.  In the event that this Section 17 or any
      portion hereof shall be found by an arbitrator or court of competent
      jurisdiction to be unenforceable as written, such court or arbitrator
      shall, and is hereby authorized to, modify this Section 17 or any portion
      hereof in such manner as he or it determines to be necessary to render
      this Section 17 enforceable to the maximum possible extent and to enforce
      this Section 17 as so modified.

            

    

    

    18.      Effective Date; Conditions of
Effectiveness.  This Agreement and the Restricted Stock Award
evidenced hereby shall take effect on the Award Date; provided that the
following conditions are met: (a) the Grantee is an employee in good standing of
the Company or a Subsidiary of the Company on the Award Date and (b) the Grantee
has executed this Agreement and delivered the executed Agreement to the Company
prior to the close of business on the Award Date.  If either of the
foregoing conditions is not met, this Agreement shall not take effect and the
Restricted Stock Award evidenced hereby shall be null and void.

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

       

    

    IN WITNESS WHEREOF, the parties hereto
have caused this Award Agreement to be executed to be effective as of the date
written above.

    

    

    

    State
Bancorp,
Inc.                                                                                                Grantee:

    

    

    

    _________________________                                                                       _________________________

    By:
Thomas M. O’Brien

           President
and Chief Executive Officer

    

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

     

    State Bancorp.
Inc.

    2006 Equity Compensation
Plan Restricted
Stock Award Agreement

    Beneficiary Designation Form

    

    Please
complete this form to designate a beneficiary to receive any Restricted Stock
that has been awarded to you pursuant to the Award Agreement dated _________
____, ____ under the State Bancorp, Inc. 2006 Equity Compensation Plan and that
has become vested as of the time of your death or to change a current
beneficiary designation. In the future, you may revoke this form and designate a
different beneficiary by completing and delivering another Beneficiary
Designation Form to the Company.

    

    Grantee
Information

    

    
      
        	
                Name:

              

      

    

    Social
Security Number:

    Street
Address:

    City,
State, Zip:

    
      
        	
                Phone
      Number:

              

      

    

    

    You are not limited to three (3)
primary beneficiaries and three (3) contingent
beneficiaries.  To designate additional beneficiaries, please
attach, date and sign a separate piece of paper.

    

    When designating beneficiaries please
use whole percentages and be sure that the percentages for each group of
beneficiaries (primary and contingent) total 100%. Your primary
beneficiary cannot be your contingent beneficiary. If you designate a trust as a
beneficiary, please include the trust’s name and trust date.

    

    Primary
Beneficiar (ies)

    

    I hereby
designate the person(s) named below as primary beneficiar (ies) to receive any
Restricted Stock that has become vested as of the date of my death:

    1.               Individual
or Trust
Name:                                 ____________________________

                         
Percentage:                                                        
____________________________%

                         
Date of
Birth or Trust
Date:                            
____________________________

                         
Relationship
to
Grantee:                                  
____________________________

    

    
      2.               Individual
or Trust
Name:                                 ____________________________

                           
Percentage:                                                        
____________________________%

                           
Date of
Birth or Trust
Date:                            
____________________________

                           
Relationship
to
Grantee:                                  
____________________________

      

        3.               Individual
or Trust
Name:                                 ____________________________

                             
Percentage:                                                        
____________________________%

                             
Date of
Birth or Trust
Date:                            
____________________________

                             
Relationship
to
Grantee:                                  
____________________________

        

      

    

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

    

    If more
than one person is named and no percentages are indicated, payment will be made
in equal share to my primary beneficiar (ies) who survive(s) me. If a percentage
is indicated and a primary beneficiar (ies) does not survive me, the percentage
of that primary beneficiary’s designated share shall be divided equally among
the surviving primary beneficiar (ies).

    

    Contingent
Beneficiar (ies)

    

    If there
is no primary beneficiar(ies) living a the time of my death, I hereby specify
the following contingent beneficiar(ies) to receive any Restricted Stock that
has become vested as of the date of my death:

     

    
      1.               Individual
or Trust
Name:                                 ____________________________

                           
Percentage:                                                        
____________________________%

                           
Date of
Birth or Trust
Date:                            
____________________________

                           
Relationship
to
Grantee:                                  
____________________________

      

        2.               Individual
or Trust
Name:                                 ____________________________

                             
Percentage:                                                        
____________________________%

                             
Date of
Birth or Trust
Date:                            
____________________________

                             
Relationship
to
Grantee:                                  
____________________________

        

          3.               Individual
or Trust
Name:                                 ____________________________

                               
Percentage:                                                        
____________________________%

                               
Date of
Birth or Trust
Date:                            
____________________________

                               
Relationship
to
Grantee:                                  
____________________________

          
 

        

      

    

    Payment
to contingent beneficiar (ies) will be made according to the rules of succession
described under Primary Beneficiar (ies).

    

    By
executing this form:

    

    
      	
               
      

            	
              •

            	
              I
      am aware that the beneficiary information in this form becomes effective
      when delivered to the Company and will remain in effect until I deliver to
      the Company another completed and signed Beneficiary Designation Form with
      a later date.

            

    

    
      	
               
      

            	
              •

            	
              I
      understand that I may designate a beneficiary for my Restricted Stock and
      that if I choose not to designate a beneficiary, my beneficiary will be my
      surviving spouse or, if I do not have a surviving spouse, my
      estate.

            

    

    

    

    

    ___________________________                                                                    
____________________________

    Date                                                                                                                           
Grantee

    

    

    
      
         

      

      
        11exhibit10_1.htm

     

    PARTICIPANT
AGREEMENT

    «Associate»,
«Title»

    

    This
Participant Agreement (the “Agreement”) is made as of the 26th day of June, 2009
(effective January 1, 2009), between Capital City Bank Group, Inc., a Florida
corporation (the “Company”), and «Associate»
(“Participant”).  Capitalized terms used and not otherwise defined
herein shall have the meanings attributed thereto in the Capital City Bank
Group, Inc. 2005 Associate Incentive Plan (the “Plan”).

    

    WHEREAS, the Participant is a
key officer or associate of the Company or one of its subsidiaries who has been
selected to receive an Award of Performance Share Units under the Plan by the
Compensation Committee of the Company’s Board of Directors (the
“Committee”).

    

    NOW, THEREFORE, in
consideration of the premises and the mutual covenants contained herein, and for
other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties hereto agree as follows:

    

    1.           Grant.

    

    (a)           Performance Share
Units.  Upon the execution of this Agreement, the Committee
hereby grants the Participant an Award of up to «XXXX» Performance Share Units,
subject to the terms and conditions of this Agreement, including Exhibit A
hereto, and the Plan.  Upon issuance, the Performance Share Units
shall be immediately converted to shares (the “Shares”) of Common Stock of the
Company.

    

    (b)           Tax Supplement
Bonus.  Upon conversion of the Performance Share Units to
Shares, the Participant will also receive a cash payment equal to 31% of the
market value of the Performance Share Units payable as of the taxable income
recognition date for the Shares (“Tax Supplement Bonus”).

    

    2.           Performance
Goals.  The Performance Share Units are hereby awarded on the
basis, and Shares shall be issued at the time of achievement, of the Performance
Goals for such Performance Share Units set forth on Exhibit A (“Performance
Goals”).  The Shares shall not be issued, and Participant shall lose
all rights to same, if (i) the Performance Goals set forth on Exhibit A and
applicable to those issuances are not met, or (ii) prior to the issuance date,
Participant ceases to be employed by the Company or any subsidiary for any
reason, including death, disability or voluntary or involuntary termination,
with or without cause, or is employed in a capacity of lesser responsibility
within the Company or Subsidiary from that now occupied by
Participant.

    

    3.           Representations and
Warranties of the Participant.  The Participant represents,
warrants and covenants that:

    

    (a)           Knowledge and
Experience.  The Participant has such knowledge and experience
in financial and business matters that he or she, together with his or her
professional advisor, if any, is capable of evaluating the merits and risks of
receipt of the Shares.  The Participant has had access to such
information concerning the Company, including its current financial statements,
as the Participant deems necessary to enable him or her to make an informed
decision concerning receipt of the Shares.

    

    (b)           Withholding
Taxes.  The Participant acknowledges and agrees that the
Company may withhold from the Participant’s cash compensation (whether paid in
the form of salary, bonus or other type of cash payment) an amount calculated on
the taxable income recognized by the Participant with respect to all
compensation paid hereunder, calculated at the maximum withholding rate
permitted for the Company under the Internal Revenue Code of 1986, as amended
(the “Code”).  The date of such taxable income recognition, and the
Company’s corresponding right to withhold from Participant’s cash compensation
shall occur on the first date the Participant has the right to receive the
Shares, whether or not the Participant exercises that right.

    

    4.           No Change in Employment
Status.  Nothing in the Agreement shall alter, in any way,
Participant’s employment status with the Company, nor shall anything in this
Agreement confer upon the Participant any right to continue in the employ of the
Company or any of its subsidiaries or interfere in any way with the rights of
the Company to change or terminate the employment of the
Participant.  Designation as a Participant pursuant to this Agreement
will not confer any right on the Participant to be designated as a Participant
in the future.  This paragraph shall not change the terms and
conditions of any employment agreement in effect between the Participant and the
Company.

    

    5.           Interpretation.  The
Committee’s interpretation of this Agreement, the Plan and all other decisions
and determinations by the Committee shall be final and binding upon the parties
hereto.  The Committee may amend any provision of this Agreement at
any time; provided that, except with the consent of the Participant, no
amendment of this Agreement will impair the rights of the Participant to the
Shares.

    

    6.           Company
Rights.  This Agreement shall not in any way affect the right
of the Company to make changes of its capital structure or to merge or
consolidate or to dissolve, liquidate or sell all or any part of its business or
its assets.

    

    7.           Plan.  The
terms and provisions of the Plan are incorporated herein by reference, and
Participant agrees to be bound by all such terms and provisions.  In
the event of a conflict or inconsistency between any terms and conditions of
this Agreement and the Plan, the Plan shall govern and control.

    

    8.           Miscellaneous.  This
Agreement and the Plan represent the entire understanding and agreement between
the parties with respect to the subject matter of this Agreement, and supersedes
all other negotiations, understandings and representations (if any) made by and
between the parties.  All of the terms and provisions of this
Agreement shall be binding upon, inure to the benefit of, and be enforceable by
the parties and their respective heirs, legal representatives, successors and
permitted assigns, whether so expressed or not.  No party shall assign
its rights or obligations under this Agreement without the prior written consent
of each other party to this Agreement.

     

    The
headings contained in this Agreement are for convenience of reference only, and
shall not limit or otherwise affect in any way the meaning or interpretation of
this Agreement.  If any part of this Agreement or any other agreement
entered into pursuant to this Agreement is contrary to, prohibited by or deemed
invalid under applicable law or regulation, such provision shall be inapplicable
and deemed omitted to the extent so contrary, prohibited or invalid, but the
remainder of this Agreement shall not be invalidated thereby and shall be given
full force and effect so far as possible.  All covenants, agreements,
representations and warranties made in this Agreement or otherwise made in
writing by any party pursuant to this Agreement shall survive the execution and
delivery of this Agreement and the consummation of the transactions contemplated
hereby.

     

    The
parties acknowledge that a substantial portion of the negotiations and
anticipated performance of this Agreement occurred or shall occur in Leon
County, Florida.  Any civil action or legal proceeding arising out of
or relating to this Agreement shall be brought in the courts of record of the
State of Florida in Leon County or the United States District Court,
Northern District of Florida.  Each party consents to the jurisdiction
of this court in any civil action or legal proceeding and waives any objection
to the laying of venue of any civil action or legal proceeding in
court.  Service of any court paper may be effected on a party by mail,
as provided in this Agreement, or in any other manner as may be provided under
applicable laws, rules of procedure or local rules.

     

    This
Agreement and all transactions contemplated by this Agreement shall be governed
by, and construed and enforced in accordance with, the internal laws of the
State of Florida without regard to principles of conflicts of
laws.   If any legal action or other proceeding is brought for
the enforcement of this Agreement, or because of an alleged dispute, breach,
default, or misrepresentation in connection with any provision of this
Agreement, the successful or prevailing party or parties shall be entitled to
recover reasonable attorneys' fees, sales and use taxes, court costs, and all
other expenses even if not taxable as court costs.  This Agreement may
be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
parties have caused this Agreement to be signed as of the date first written
above.

    

     

    
      
        	
                Witnesses:

              	
                CAPITAL
      CITY BANK GROUP, INC.

              
	 
      	 
      
	 
      	 
      
	
                                                                                    

              	
                By:                                            
                      

              
	 
      	
                William
      G. Smith, Jr.

              
	 
      	
                Chairman
      and CEO

              
	
                                                                                   

              	 
      
	 
      	 
      
	 
      	 
      
	
                                                                                   

              	
                                                     
                                  
       

              
	 
      	
                NAME

              
	 
      	
                TITLE

              
	
                                                                   
                    

              	 
      
	 
      	 
      

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    EXHIBIT
A

    

    

    The
purpose of Exhibit A is to set forth the Performance Goals and to advise the
Participant as to the potential number of Performance Share Units which may be
earned under the Plan if the Performance Goals are achieved.

    

    PERFORMANCE SHARE
UNITS

    

    Performance
Share Units may be earned for achieving designated Performance Goals set forth
below.  The Participant is eligible to receive from «XXXX» to «XXXX»
Performance Share Units if the established Performance Goals are
achieved.

    

    Shares
convertible from Performance Share Units will be issued in the calendar quarter
following the calendar year in which the Performance Share Units were
earned.  The value of the Shares issued is treated as compensation and
creates an additional tax liability for the Participant as of the first date the
Participant has the right to receive the Shares, whether or not the Participant
exercises that right.

    

    Due to
the complexities of the tax laws and circumstances which may affect individual
participants, the Participant is encouraged to consult with the Participant’s
tax advisor concerning any possible tax consequences of this
transaction.

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