Document:

EX-10.4

 

Exhibit 10.4

UST INC.

2005 LONG-TERM INCENTIVE PLAN

NOTICE OF GRANT OF STOCK OPTION

     This Notice is to certify that the Optionee named below has been granted the number of options
set forth below under the UST Inc. 2005 Long-Term Incentive Plan (the “Plan”) and the terms and
conditions set forth in this Notice and attached Nonstatutory Stock Option Agreement (the
“Agreement”). This Notice is subject to and incorporates by reference the terms and conditions of
the Agreement, a copy of which is enclosed. Please refer to the Agreement and the Plan document
for an explanation of the terms and conditions of this grant and a full description of your rights
and obligations. If this Notice of Grant is not signed and returned to the Company, on or before
the date on which these Stock Options vest, the Stock Options granted hereunder shall be forfeited.
Please sign and date the Notice and return it promptly in the enclosed envelope.

	 	 	 	 	 
	Name
of Optionee:

	 	[                          ]	 	 
	 
	 	 	 	 
	Type of Option:

	 	Nonstatutory	 	 
	 
	 	 	 	 
	Number of Shares Under Option:

	 	[                          ]	 	 
	 
	 	 	 	 
	Per Share Exercise Price:

	 	[                          ]	 	 
	 
	 	 	 	 
	Grant Date:

	 	[                          ]	 	 
	 
	 	 	 	 
	Vesting
Date:

	 	[
	 	], 2008,
	 
	 	 	 	 
	Expiration Date:

	 	[                          ]	 	 
	 
	 	 	 	 
	Additional Terms:	 	See the Nonstatutory Stock Option Agreement.

By signing this Notice of Grant of Stock Option, you acknowledge that you have read the attached
Nonstatutory Stock Option Agreement and agree to the terms and conditions specified therein and in
the Plan.

	 	 	 	 	 	 	 
	 
	 
	 

Employee Signature

	 	 	 	 

Date
	 	 

 

 

UST INC.

2005 LONG-TERM INCENTIVE PLAN

NONSTATUTORY STOCK OPTION AGREEMENT

     NONSTATUTORY STOCK OPTION AGREEMENT, made as of the date set forth on the Notice of Grant of
Stock Option pursuant to the UST Inc. 2005 Long-Term Incentive Plan (the “Plan”), between UST Inc.,
a Delaware corporation (the “Company”), and the employee of the Company or a Subsidiary named on
the Notice of Grant of Stock Option (the “Employee”).

     WHEREAS, the Company desires, by affording the Employee an opportunity to purchase shares of
its common stock, $.50 par value (“Common Stock”), as hereinafter provided and subject to the terms
and conditions hereof, to carry out the purpose of the Plan; and

     WHEREAS, the Committee administering the Plan has granted (as of the effective date of grant
specified in the Notice of Grant of Stock Option) to the Employee the number of options as set
forth in the Notice of Grant of Stock Option.

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other
good and valuable consideration, the parties hereto have agreed and do hereby agree as follows:

	1.	 	Grant. The Company has granted to the Employee a Nonstatutory Stock Option (the
“Option”) to purchase the aggregate number of shares as shown on the Notice of Grant of Stock
Option, subject to adjustment as provided in the Plan, on the terms and conditions herein set
forth.

	2.	 	Exercise Price. The exercise price of the shares of Common Stock covered by the
Option shall be as shown on the Notice of Grant of Stock Option.

	3.	 	Vesting. Except as set forth below, the Option shall be exercisable in accordance
with the Vesting Date as shown on the Notice of Grant of
Stock Option, and shall expire at the close of business on the date shown on the Notice of
Grant of Stock Option. The Option may be exercised either for the total number of shares
granted, or for less than the total number, in multiples of 100 shares. In the event that the
Employee makes a “hardship withdrawal” under the UST Inc. Employees’ Savings Plan (the
“Savings Plan”), as amended from time to time, the right of exercise shall be suspended during
the period prescribed by the Savings Plan beginning on the date of such withdrawal, except
that this restriction shall not apply if for any reason such suspension is not required under
Section 401(k) of the Code or any final regulations issued thereunder.

 

 

	4.	 	No Rights as a Shareholder or to Continued Employment. The holder of the Option
shall have none of the rights of a shareholder with respect to the shares covered by the
Option until the shares are issued or transferred to such Optionee upon exercise of the
Option. The Option shall not confer on the Employee any right to continued employment.

	5.	 	No Transferability. Except as permitted by the Committee in its sole discretion, the
Option shall not be transferable other than by will or by the laws of descent and distribution
and shall be exercisable during the Employee’s lifetime only by the Employee or by his/her
guardian or legal representative. The Committee may, in its sole discretion, permit the
transfer of the Option subject to any conditions that the Committee
may prescribe; provided, however, that in no event may the Option be transferred for
consideration.

	6.	 	Change in Control. Upon the occurrence of a Change in Control, the Option shall be treated in accordance with the
provisions of Section 11(c) of the Plan.

	7.	 	Method of Exercise. Upon the exercise of the Option, the exercise price may be paid
(i) in full in cash or (ii) by tendering previously owned mature shares with a value on the
date of exercise equal to the purchase price as described below or (iii) by any such other method of exercise approved by the Committee. The Option shall be
exercised in accordance with the procedures adopted by the Company from time to time.

The Employee may pay the purchase price by tendering to the Company, in whole or in part,
in lieu of cash, shares of Common Stock owned by such purchaser for at least six months
prior to the date of exercise, accompanied by the certificates therefor registered in the
name of such purchaser and properly endorsed for transfer, having a Fair Market Value equal
to the cash exercise price applicable to the portion of such Option being so exercised.

	8.	 	Effect of Termination of Employment. If the employment of the Employee is terminated
by reason of his/her death or Disability, or upon his/her Retirement, or for any other reason
if the Committee so determines, any portion of the Option that has not theretofore become
vested and exercisable shall become fully vested and exercisable as of the date of such
termination of employment. Options that remain outstanding at the effective date of a
termination by reason of death, Disability or Retirement shall remain exercisable until the
expiration of the original term. If the employment of the Employee is terminated for any
other reason and if the Committee does not determine otherwise, any portion of the Option that
has not theretofore become vested and exercisable shall be forfeited and shall lapse. Any
portion of the Option that has vested as of the date of the

2

 

Employee’s termination of employment other than for Cause shall be exercisable for a period
of 90 days following the date of termination. Upon expiration of such 90 day period, any
unexercised portion of the Option shall terminate in full and shall lapse. Notwithstanding
the foregoing, in no event may the Option be exercised after the Option’s Expiration Date.
For purposes of this Agreement, the term “Disability” shall mean a “disability,” as defined
in the Company’s Long-Term Disability Plan or, if such plan is not applicable to the
Employee, as defined by the State or federal disability program which applies to the
Employee

	9.	 	Non-Competition.

	 	(a)	 	     In consideration of the grant of Stock Options made pursuant to this
Agreement, during the term of the Employee’s employment with the Company and for a
period of one (1) year after that employment is terminated, by the Company or the Employee, for any reason other than
the cessation of business by the Company pursuant to a filing for bankruptcy
protection or liquidation initiated by the Company, the Employee will not, without the Company’s prior written approval, directly or
indirectly:

	 	(i)	 	     recruit, solicit or knowingly induce, or attempt to induce,
any employee or consultant of the Company to terminate his/her employment or
consulting relationship with, or otherwise cease his/her relationship with,
the Company; or
	 
	 	(ii)	 	     solicit, divert or take away, or attempt to divert or to take
away, the business or patronage of any of the clients, customers or accounts,
or prospective clients, customers or accounts, of the Company. For purposes of
this Agreement, a prospective client, customer or account is any individual or
entity whose business is solicited by the Company, proposed to be solicited by
the Company, or who approaches the Company with respect to possibly becoming a
client, customer, or account during the period of Employee’s employment with
the Company; or
	 
	 	(iii)	 	     Engage (whether for compensation or without compensation),
directly or indirectly, as an individual proprietor, partner, officer,
employee, director, independent contractor, consultant or in any other
capacity whatsoever, in any business currently involved in, or actually
contemplating involvement in, the manufacture or distribution of smokeless
tobacco or tobacco seed, wines or distilled spirits, whether or not the same
is pursued for gain, profit or other pecuniary advantage. The foregoing shall
not, however, be construed as preventing Employee from making investments in
any other business, provided, however, that such investments do not require
his/her services in the operation of the affairs of the businesses in which
such investments are made.

3

 

	 	(b)	 	If any restriction set forth in this Section 9 is found by any court of
competent jurisdiction to be unenforceable because it extends for too long a period of
time or over too great a range of activities or in too broad a geographic area, it
shall be interpreted to extend only over the maximum period of time, range of
activities or geographic areas to which it may be enforceable.
	 
	 	(c)	 	The restrictions contained in this Section 9 are necessary for the protection
of the business and goodwill of the Company and are considered by the Employee to be
reasonable for this purpose. The Employee agrees that any breach of this Section 9
will cause the Company substantial and irrevocable damage and, therefore, in the event
of any such breach, in addition to such other remedies which may be available, the
Company will have the right to seek specific performance and injunctive relief,
attorney’s fees, costs and disbursements to enforce its rights hereunder.

	10.	 	Finding of Cause; Violation of Non-Competition Covenant.

	 	(a)	 	If (i) the employment of the Employee is terminated for Cause or (ii) after
the Employee’s termination of employment with the Company other than for Cause, the
Company discovers the occurrence of an act or failure to act by the Employee, while in
the employ of the Company, that would have enabled the Company to terminate the
Employee’s employment for Cause had the Company known of such act or failure to act at
the time of its occurrence, or (iii) subsequent to his termination of employment, the
Employee violates the restrictions set forth in Section 9 of this Agreement, and, in
each case, such act is discovered by the Company within three (3) years of its
occurrence, then, unless otherwise determined by the Committee,

	 	(i)	 	any portion of the Option (whether or not then exercisable)
that has not been exercised as of the date of such termination or discovery
shall thereupon be forfeited and shall lapse; and
	 
	 	(ii)	 	the Employee (or, in the event of the Employee’s death
following the commission of such act, his beneficiaries or estate) shall (A)
sell back to Company all Acquired Shares (as defined in paragraph (b) of this
Section 10) held by the Employee (or, if applicable, his beneficiaries or
estate) as of the date of such termination or discovery, for a per share price
equal to the per share exercise price of the Option, and (B) to the extent
such Acquired Share have previously been sold or otherwise disposed of by the
Employee, other than by reason of death (or if applicable, by his
beneficiaries or estate), repay to the Company the excess of the aggregate
Fair Market Value of such Acquired Shares on the date of such sale or
disposition over the aggregate exercise of such Acquired Shares.

4

 

	 	(iii)	 	for purpose of clause (a)(ii) of this Section 10 immediately
above, (A) the amount of repayment described therein shall not be affected by
whether the Employee (or, if applicable, his/her beneficiaries or estate)
actually received such Fair Market Value with respect to such sale or other
disposition, and (B) repayment may, without limitation, be affected, at the
discretion of the Company, by means of offset against any amount owed by the
Company to the Employee (or, if applicable, his/her beneficiaries or estate).

	 	(b)	 	For purposes of this Agreement, Acquired Shares shall mean shares of Common
Stock that were acquired upon exercise of the Option on or after the date which is 180
days prior to the Employee’s termination of employment.

	11.	 	Approvals. The sale and delivery of any shares of Common Stock hereunder is subject
to approval of any government agency which may, in the opinion of counsel, be required in
connection with the authorization, issuance or sale of Common Stock. No Common Stock shall be
issued under the Option prior to compliance with such requirements and with the Company’s
listing agreement with the New York Stock Exchange (or other national exchange upon which the
Company’s shares may then be listed).

	12.	 	Incorporation of Plan. This Agreement is made under the provisions of the Plan
(which is incorporated herein by reference) and shall be interpreted in a manner consistent
with it. To the extent that any provision in this Agreement is in conflict with the Plan, the
provisions of the Plan shall control. Unless otherwise defined herein or otherwise required
by the context, all terms used herein shall have the meaning ascribed to them in the Plan.

	13.	 	Notices. Any notices required or permitted hereunder shall be addressed to the
Company, at 100 West Putnam Avenue, Greenwich, Connecticut 06830, or to the Employee at the
address then on record with the Company, as the case may be, and deposited, postage prepaid,
in the United States mail; provided, however, that a notice of exercise pursuant to paragraph
7 hereof shall be effective only upon receipt by the Company of such notice and all necessary
documentation, including payment. Either party may, by notice to the other given in the
manner aforesaid, change his/her or its address for future notices.

	14.	 	Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of Delaware. The Committee shall have final authority to interpret and
construe the Plan and this Agreement and to make any and all determinations under them, and
its decision shall be binding and conclusive upon the Employee and his/her legal
representative in respect of any questions arising under the Plan or this Agreement.

5

 

	15.	 	Successor. This Agreement shall bind and inure to the benefit of the Company, its
successors and assigns, and the Employee and his or her personal representatives and
beneficiaries.

	16.	 	Amendment. This Agreement may be amended or modified by the Company at any time;
provided that notice is provided to the Employee in accordance with Section 13; and provided
further that no amendment or modification that is adverse to the rights of the Employee as
provided by this Agreement and the related Notice of Grant of Stock Option shall be effective
unless set forth in a writing signed by the parties hereto.

	17.	 	Binding Agreement. This Agreement shall be binding upon the Employee and his or her
personal representatives and beneficiaries without any need for additional action by the
Employee, and any attempt by the Employee and his or her personal representatives and
beneficiaries to exercise any rights under this Agreement shall be conclusive evidence of such
person’s acceptance thereof.

6

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its officer
thereunder duly authorized, as of the day and year set forth above.

UST INC.

	 	 	 
	 
	 
	 

Name:

	 	 
	Title:
	 	 

7<PAGE>

                                                                    Exhibit 10.1

                        COMMUNITY SHORES BANK CORPORATION
                         2005 DIRECTOR STOCK OPTION PLAN

                                OPTION AGREEMENT

         This Option Agreement (this "Agreement") dated _________, 200__ ("Grant
Date") is between Community Shores Bank Corporation, a Michigan corporation (the
"Company") and ________________________, who is a non-employee director of the
Company (the "Optionee").

         In consideration of the mutual covenants contained in this Agreement,
the Company and the Optionee agree as follows:

1.       STOCK OPTION

        The Company, pursuant to the Community Shores Bank Corporation 2005
Director Stock Option Plan (the "Plan"), grants to the Optionee an option (the
"Option") to purchase up to ____________________ (__________) shares of the
Company's common stock (the "Shares"), at an option price per share of
_____________________________ Dollars and _____________________ Cents ($__.__)
(the "Option Price"), subject to the terms and conditions of this Agreement and
the Plan. Capitalized terms used in this Agreement that are not defined in this
Agreement have the meanings given them in the Plan.

2.       ADDITIONAL PROVISIONS

         The Option is also subject to the following provisions:

                a. Exercisability. During the term of the Option, the Option may
        be exercised and Shares may be purchased at any time and from time to
        time after the execution of this Agreement, subject to the vesting
        schedule set forth in Section 2(b) below. The Option shall not be
        exercised with respect to less than one hundred (100) Shares unless the
        remaining Shares covered by the Option are less than one hundred (100)
        and the Option is exercised with respect to all remaining shares. The
        Option Price shall be paid in full in cash, by check, bank draft, money
        order, or the delivery of shares as allowed by the Plan at the time of
        the delivery of the Shares. Shares acquired under this Agreement are
        referred to as the "Option Shares".

                b. Vesting Schedule. On each date set forth below, the Option
        will be vested with respect to the aggregate number of Shares set forth
        opposite such date if the Optionee is then serving as a director of the
        Company or of a Subsidiary:

<PAGE>

           Date                               Aggregate Number of Vested Shares
           ----

           -------------                      ---------------------------Shares

           -------------                      ---------------------------Shares

                The Option shall only be exercisable to the extent that it is
        vested.

                c. Procedure for Exercise. Subject to the terms and conditions
        of this Agreement and the Plan, the Option may be exercised at any time
        and from time to time prior to its termination by delivering written
        notice to the Secretary or Chief Financial Officer of the Company as
        provided in Section 6(d) of the Plan. The notice must specify the number
        of Shares to be purchased and refer to this Agreement.

3.       TRANSFERABILITY OF OPTION

         This Option may only be transferred to Permitted Transferees strictly
in accordance with the terms and conditions of Section 6(e) of the Plan,
provided the Optionee gives prior written notice of the proposed transfer to the
Company, and the Company, after receiving approval of the transfer from the
Committee, approves the transfer in writing.

4.       TRANSFERABILITY OF OPTION SHARES

         No Option Shares may be transferred unless the Company is provided with
evidence (satisfactory to the Company, in its sole discretion) that such
transfer complies with applicable federal and state securities laws.

5.       CONFORMITY WITH PLAN

         The Option is intended to conform in all respects with and is subject
to all applicable provisions of the Plan, which is incorporated into this
Agreement by reference. Inconsistencies between this Agreement and the Plan
shall be resolved in accordance with the terms of the Plan. By executing and
returning the enclosed copy of this Agreement, the Optionee acknowledges receipt
of a copy of the Plan and agrees to be bound by all of the terms of the Plan.

6.       SERVICE AS A DIRECTOR

         The Optionee acknowledges that nothing in this Agreement or in the Plan
imposes upon the Company, or any Subsidiary of the Company, any obligation to
retain the Optionee as a director for any period.

7.       ADJUSTMENT

         The Committee shall make appropriate and proportionate adjustments to
the number of Shares and the Option Price to reflect any stock dividend, stock
split, or
                                       2
<PAGE>

combination of shares, merger, consolidation, or other change in the
capitalization of the Company, as provided in Section 6(g) of the Plan.

8.       EXPIRATION

         This Option shall expire on _______________, 20___, subject to earlier
termination or expiration as provided in Section 6(f) of the Plan.

9.       TERMINATION OF SERVICE AS A DIRECTOR

         In the event the Optionee ceases to be a director of the Company or a
Subsidiary, the Option is subject to certain accelerated termination and other
limitations, as provided in Section 6(f) of the Plan.

10.      RIGHTS AS SHAREHOLDERS

         The Optionee shall have no rights as a shareholder with respect to any
Shares until the Optionee becomes the holder of record of the Shares.

11.      FURTHER ACTIONS

         The Optionee and the Company agree to execute such further instruments
and to take such further actions as may reasonably be required to carry out the
intent of this Agreement.

12.      NOTICE

         Any notice required or permitted under this Agreement shall be given in
writing and shall be deemed effectively given at the earlier of the time that it
is actually delivered or three days after it is sent by registered or certified
United States mail, return receipt requested, with postage and fees prepaid,
addressed to the other party to this Agreement at the address set forth in this
Agreement or at such other address as such party may designate by at least ten
(10) days' advance written notice to the other party.

13.      SUCCESSORS AND ASSIGNS

         This Agreement shall be binding upon and inure to the benefit of the
successors and assigns of the Company and, subject to the restrictions on
transfer set forth in this Agreement, be binding upon and inure to the benefit
of the Optionee's heirs, personal representatives, successors, and permitted
assigns.

14.      REPRESENTATIONS, LEGEND AND POSTPONEMENT OF DELIVERY

         The Optionee acknowledges and agrees that neither the Option nor the
Option Shares that may be issued upon exercise of the Option have been
registered under the Securities Act of 1933 (the "Act"), the Michigan Uniform
Securities Act, or any other state securities act, and may not be sold,
transferred, or otherwise disposed of in the absence of an effective
registration statement under the Act and any applicable state

                                       3
<PAGE>

securities act, unless it is shown to the satisfaction of the Company that such
registration is not required.

         The Optionee acknowledges and agrees that the Optionee is the sole
party in interest with respect to the Option and any Option Shares issued upon
exercise of the Option, and is acquiring the Option, and will acquire any Option
Shares issued upon exercise of the Option, as an investment, and not with a view
to publicly offer or distribute all or any part of the Option or Option Shares
issued upon exercise of the Option. The Company may affix the following legend
to any certificates representing Option Shares that are issued upon exercise of
the Option:

                                     LEGEND

             The stock represented by this certificate has not been
             registered under the Securities Act of 1933, the Michigan
             Uniform Securities Act, or the securities laws of any other
             state, and may not be sold, assigned or transferred unless a
             Registration Statement under the Securities Act of 1933 and
             any applicable state securities act with respect to said stock
             shall then be in effect, or unless the availability of an
             exemption from registration shall be established to the
             satisfaction of the Corporation.

         The Company, if it deems it necessary to comply with any applicable
securities law, may postpone the issuance or delivery of Option Shares upon any
exercise of this Option until completion of the registration or other
qualification of the Option Shares under any state or federal law, rule, or
regulation as the Company may consider appropriate. The Company may require any
person exercising this Option to make such representations, including, without
limitation, a representation that it is his or her intention to acquire the
Option Shares for investment and not with a view to distribution of the Option
Shares, and furnish such information as it may consider appropriate in
connection with the issuance or delivery of the Option Shares in compliance with
applicable laws, rules, and regulations. No Option Shares shall be issued unless
the Company is satisfied with the accuracy of any such representations.

15. GOVERNING LAW

         This Agreement and all documents contemplated by this Agreement, and
all remedies in connection with this Agreement and all questions or transactions
relating to this Agreement, shall be construed in accordance with and governed
by the laws of the state of Michigan.

16. ENTIRE AGREEMENT

         This Agreement and the Plan constitute the entire understanding and
agreement between the Optionee and the Company with respect to the Option and
Option Shares and supersede all other agreements, whether written or oral, with
respect to the Option and the Option Shares.

                                       4
<PAGE>

17.      OPTIONEE'S ACKNOWLEDGEMENT

         The Optionee acknowledges having read this Agreement and the Plan and
agrees to be bound by all provisions of this Agreement and the Plan.

         The Optionee and the Company have executed this Agreement as of the
Grant Date.

<Table>
<Caption>
<S>                                                             <C>
OPTIONEE:                                                       COMPANY:

-----------------------------------------------------           COMMUNITY SHORES
                  (Signature)                                     BANK CORPORATION

-----------------------------------------------------           BY: -------------------
             (Please print name)
                                                                NAME:  ----------------

Address:                                                        ITS: ------------------
        -----------------------------------------

                                                                Address:  1030 W. Norton Avenue
        ------------------------------------------                        Muskegon, Michigan 49441

        ------------------------------------------

Telephone No.-------------------------------------              Telephone No. 231-780-1800

</Table>

                                       5

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