Document:

exv10w1

 

EXHIBIT 10.1

U.S. BANCORP

NON-QUALIFIED STOCK OPTION AGREEMENT

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Number of	 	Option	 	Social
	 	 	 	 	 	 	U.S. Bancorp Common	 	Price Per	 	Security
	GRANTED
TO
	 	Grant Date
	 	Shares
	 	Share ($)
	 	Number

	 
	 	
Expiration Date
	 	

	 	

	 	

	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 

To accept receipt of the Option and to agree to the terms and conditions of the
Plan and this Agreement, take no action. To reject receipt of the Option and
the terms and conditions of the Plan and this Agreement, please notify Karen
Bulman, Stock Option Administration in Human Resources at U.S. Bancorp, 5065
Wooster Road, CN-OH-L2HR, Cincinnati, OH 45226, in writing within 30 calendar
days of the day you receive this document. Failure to notify in a timely
manner will result in your acceptance of the Option and the terms and
conditions of the Plan and this Agreement. Please read all of the terms and
conditions of this Agreement.

THIS AGREEMENT is made as of the date in the box above labeled “Grant
Date” (the “Grant Date”) by and between U.S. Bancorp, a Delaware
corporation (the “Company”), and the individual named in the box above
labeled “Granted To” (the “Optionee”).

WHEREAS, the Company pursuant to its 2001 Stock Incentive Plan (the
“Plan”) wishes to grant a stock option for the purchase of Common
Stock of the Company, $0.01 par value (the “Common Stock”), to the
Optionee on the terms and conditions contained in this Agreement and
the Plan. In consideration of the mutual covenants contained in this
Agreement, the parties agree as follows:

	1.	 	Grant of Option.
	 
	 	 	The Company grants Optionee the right and option (the “Option”)
to purchase all or any part of an aggregate of the number of shares of the Company’s Common Stock set forth in the box above
labeled “Number of U.S. Bancorp Common Shares” at the exercise
price set forth in the box above labeled “Exercise Price Per
Share” on the terms and conditions of this Agreement. The
Option is not intended to be an incentive stock option within
the meaning of Section 422 of the Internal Revenue Code of 1986,
as amended (the “Code”).

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	2.	 	Vesting of Exercise Rights.

(a) Subject to the terms and conditions of this Agreement, the Option
may be exercised by Optionee in whole on the fifth anniversary of the
Grant Date, with the opportunity for 25% of the award to have
accelerated vesting approximately 1, 2, 3, and 4 years on February 1
following the Grant Date, respectively, only if the company’s TSR
performance for that year is at or above median TSR of the regional
banks in our peer group, as determined by U.S. Bancorp in its sole
discretion. The Option shall terminate at the close of business on the
date in the box above labeled “Expiration Date,” or on such earlier
date as described in this Agreement.

(b) Notwithstanding the vesting provision contained in Section 2(a)
above, but subject to the other terms and conditions of this Agreement,
the Option may be exercised in full immediately upon a “Qualifying
Termination.” For purposes of this Agreement, the following terms
shall have the following definitions:

	(i)	 	“Affiliate” shall be defined as defined in Rule 12b-2
promulgated under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”).
	 
	(ii)	 	“Announcement Date” shall mean the date of the public
announcement of the transaction, event or course of action that
results in a Change in Control.
	 
	(iii)	 	“Cause” shall mean (A) the continued failure by Optionee
to substantially perform Optionee’s duties with the Company or any
Affiliate (other than any such failure resulting from Optionee’s
Disability (as defined in Section 3(c))), after a demand for
substantial performance is delivered to Optionee that specifically
identifies the manner in which the Company believes that Optionee
has not substantially performed Optionee’s duties, and Optionee
has failed to resume substantial performance of Optionee’s duties
on a continuous basis, (B) gross and willful misconduct during the
course of employment (regardless of whether the misconduct occurs
on the Company’s premises), including, but not limited to, theft,
assault, battery, malicious destruction of property, arson,
sabotage, embezzlement, harassment, acts or omissions which
violate the Company’s rules or policies (such as breaches of
confidentiality), or other conduct which demonstrates a willful or
reckless disregard of the interests of the Company or its
Affiliates or (C) Optionee’s conviction of a crime (including,
without limitation, a misdemeanor offense) which impairs
Optionee’s ability substantially to perform Optionee’s duties with
the Company.
	 
	(iv)	 	“Change in Control” shall mean any of the following
occurring after the date of this Agreement:

	(A)	 	The acquisition by any Person (as defined in
Section 2(b)(vi)) of beneficial ownership (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) of 35% or
more of either (1) the then outstanding shares of Common Stock
(the “Outstanding Company Common Stock”) or (2) the combined
voting power of the then outstanding voting securities of the
Company entitled to vote generally in the election of
directors (the “Outstanding Company Voting Securities”);
provided, however, that, for purposes of this clause (A), the
following acquisitions shall not constitute a Change in
Control: (i) any acquisition directly from the Company, (ii)
any acquisition by the Company, (iii) any acquisition by a subsidiary of the

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	 	 	Company or any employee benefit plan (or
related trust) sponsored or maintained by the Company or a
subsidiary of the Company (a “Company Entity”) or (iv) any
acquisition by any corporation pursuant to a transaction which
complies with clause (i), (ii) or (iii) of this clause (A); or

	(B)	 	Individuals who, as of the date, constitute the
Company’s Board of Directors (the “Incumbent Board”) cease for
any reason to constitute at least a majority of the Board of
Directors (except as a result of the death, retirement or
disability of one or more members of the Incumbent Board);
provided, however, that any individual becoming a director
subsequent to the date of this Agreement whose election, or
nomination for election by the Company’s shareholders, was
approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as
though such individual were a member of the Incumbent Board,
but excluding, for this purpose, (1) any such individual whose
initial assumption of office occurs as a result of an actual
or threatened election contest with respect to the election or
removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a
Person other than the Incumbent Board, (2) any director
designated by or on behalf of a Person who has entered into an
agreement with the Company (or which is contemplating entering
into an agreement) to effect a Business Combination (as
defined in Section 2(b)(iv)(C)) with one or more entities that
are not Company Entities or (3) any director who serves in
connection with the act of the Board of Directors of
increasing the number of directors and filling vacancies in
connection with, or in contemplation of, any such Business
Combination; or
	 
	(C)	 	Consummation of a reorganization, merger or
consolidation or sale or other disposition of all or
substantially all of the assets of the Company (a “Business
Combination”), in each case, unless, following such Business
Combination, (1) all or substantially all of the individuals
and entities who were the beneficial owners, respectively, of
the Outstanding Company Common Stock and Outstanding Company
Voting Securities immediately prior to such Business
Combination beneficially own, directly or indirectly, more
than 50% of, respectively, the then outstanding shares of
common stock or the combined voting power of the then
outstanding voting securities entitled to vote generally in
the election of directors, as the case may be, of the
corporation resulting from such Business Combination
(including, without limitation, a corporation which as a
result of such transaction owns the Company or all or
substantially all of the Company’s assets either directly or
through one or more subsidiaries) in substantially the same
proportions as their ownership, immediately prior to such
Business Combination, of the Outstanding Company Common Stock
and Outstanding Company Voting Securities, as the case may be,
(2) no Person (excluding any Company Entity or such
corporation resulting from such Business Combination)
beneficially owns, directly or indirectly, 35% or more of,
respectively, the then outstanding shares of common stock of
the corporation resulting from such Business Combination or
the combined voting power of the then outstanding voting
securities of such corporation except to the extent that such
ownership existed prior to the Business Combination and (3) at
least a majority of the members of the board of directors of
the

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	 	 	corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial
agreement, or of the action of the Board of Directors,
providing for such Business Combination; or

	(D)	 	Approval by the shareholders of the Company of a
complete liquidation or dissolution of the Company.

	(v)	 	“Notice of Termination” shall mean a written notice which
sets forth the date of termination of Optionee’s employment.
	 
	(vi)	 	“Person” shall be defined as defined in Sections 13(d)(3)
and 14(d)(2) of the Exchange Act.
	 
	(vii)	 	“Qualifying Termination” shall mean a termination of
Optionee’s employment with the Company or its Affiliates by the
Company for any reason other than Cause within 12 months following
a Change in Control; provided, however, that any such termination
shall not be a Qualifying Termination if Optionee has been
notified in writing more than 30 days prior to the Announcement
Date that Optionee’s employment with the Company is not expected
to continue for more than 12 months following the date of such
notification; provided that such exclusion from Qualifying
Termination shall only apply if Optionee’s employment with the
Company is terminated within such 12 month period; and provided,
further, that any such termination shall not be a Qualifying
Termination if Optionee has announced in writing, prior to the
date the Company provides Notice of Termination to Optionee, the
intention to terminate employment or retire, subject to the
condition that any such termination by the Company prior to
Optionee’s stated termination or retirement date shall be deemed
to be termination or retirement by Optionee on such stated date
unless termination by the Company is for Participant’s gross and willful misconduct.

	3.	 	Effect of Termination of Employment

	(a)	 	The Option shall terminate and may no longer be exercised if
Optionee ceases to be employed by the Company or any Affiliate, except
that:

	(i)	 	If Optionee’s employment shall be terminated for any
reason other than Cause, death, Disability, Retirement (as defined
in Section 3(c)) or Early Retirement (as defined in Section 3(c)),
Optionee may at any time within a period of 90 days after such
termination, but not after the termination date of the Option,
exercise the option to the extent that Option was exercisable by
Optionee on the date of the termination of employment.
	 
	(ii)	 	If Optionee’s employment shall be terminated by reason of
Cause, the Option shall be terminated as of the date of the
misconduct.
	 
	(iii)	 	If Optionee shall die while in the employ of the Company
or any Affiliate or within 90 days after termination of employment
for any reason other than Cause, the Option will be fully
exercisable in whole or in part, notwithstanding the vesting
provisions contained in Section 2(a) or Section 2(b), at any time
up to the last day of the three year period commencing on the date
of Optionee’s termination of employment (or, if earlier, the
termination date of the Option), by the personal representatives
or administrators of Optionee or by any Person or Persons to whom
the Option has been transferred by will or the applicable laws of
descent and distribution.

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	(iv)	 	If Optionee’s employment shall be terminated by reason of
Disability, the Optionee may exercise the Option in accordance
with the terms as though such termination had never occurred. If
Optionee shall die following a termination of employment by reason
of Disability, the Option may be exercised in accordance with its
terms by the personal representatives or administrators of
Optionee or by any Person or Persons to whom the Option has been
transferred by will or the applicable laws of descent and
distribution.
	 
	(v)	 	If Optionee’s employment shall be terminated by reason of
Retirement, the Optionee may exercise the Option in accordance
with the terms as though such termination had never occurred, so
long as the Optionee has at all times that an Option is
outstanding under this Agreement complied with the terms of a
properly executed Confidentiality and Nonsolicitation Agreement
between U.S. Bank and the Participant. In all other cases, this
Option shall terminate upon Retirement. If Optionee shall die
following a termination of employment by reason of Retirement but
prior to the termination date of the Option, the Option may be
exercised in accordance with its terms by the personal
representatives or administrators of Optionee or by any Person or
Persons to whom the Option has been transferred by will or the
applicable laws of descent and distribution.
	 
	(vi)	 	If Optionee’s employment shall be terminated by reason of
Early Retirement, Optionee may at any time within a three year
period after such termination, but not after the termination of
the Option, exercise the Option to the extent that it was
exercisable by Optionee on the date of the termination of
employment so long as the Optionee has at all times that an Option
is outstanding under this Agreement complied with the terms of a
properly executed Confidentiality and Nonsolicitation Agreement
between U.S. Bank and the Participant. In all other cases, this
Option shall terminate upon Early Retirement. If Optionee shall
die following a termination of employment by reason of Early
Retirement but prior to the termination date of the Option, the
Option may be exercised in accordance with its terms by the
personal representatives or administrators of Optionee or by any
Person or Persons to whom the Option has been transferred by will
or the applicable laws of descent and distribution.

	(b)	 	Notwithstanding the provisions contained in Section 3(a), but
subject to the other terms and conditions of this Agreement, in the
event that Optionee’s employment is terminated pursuant to a
Qualifying Termination, Optionee shall have the right to exercise the
Option in whole or in part at any time within a one year period after
such termination of employment; provided that no provision of this
paragraph shall shorten the period in which the Option may be
exercised in the event of death, Disability, Retirement or Early
Retirement; and, provided further, that no Option shall be exercisable
after the expiration of the term of the Option.
	 
	(c)	 	For purposes of this Agreement, (A) “Retirement” means
termination of employment (other than for gross and willful
misconduct) by a Person who is age 59 1/2 or older and has 10 or more
years of employment with the Company or its Affiliates (based on the
Person’s latest date of hire by the Company or its Affiliates), (B)
“Early Retirement” means termination of employment (other than for
gross and willful misconduct) by a Person who is age 55 or older and
has 10 or more years of employment with the Company or its Affiliates
(based on the Person’s latest date of hire by the Company or its
Affiliates) and (C) “Disability” means leaving active employment and
qualifying for and receiving disability benefits under the Company’s
long-term disability programs as in effect from time to time.

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	4.	 	Securities Law Compliance

The exercise of all or any portion of this Option shall only be effective
at such time that the sale of Common Stock issued pursuant to such exercise
will not violate any state or federal securities or other laws. The
Company is under no obligation to effect any registration of the stock
subject to the Option under the Securities Act of 1933 or to effect any
state registration or qualification of such Common Stock. The Company may,
in its sole discretion, defer the effectiveness of any full or partial
exercise of the Option in order to ensure that the issuance of stock upon
exercise will be in compliance with federal or state securities laws and
the rules of the New York Stock Exchange or any other exchange upon which
the Company’s Common Stock is traded.

	5.	 	Method of Exercise of Option

Subject to the foregoing, the Option may be exercised in whole or part from
time to time by serving written notice of exercise on the Company at its
principal executive offices, to the attention of the Company’s Executive
Compensation Department or to its properly designated agent serving from
time to time. The notice shall state the number of shares as to which the
Option is being exercised and be accompanied by payment of the purchase
price. Optionee may, at Optionee’s election, pay the purchase price (a) by
check payable to the Company, (b) in previously owned shares of the
Company’s Common Stock or (c) in any combination of the two, in each case
having a Fair Market Value (as defined in the Plan) on the exercise date
equal to the applicable exercise price. Optionee may, at Optionee’s
election, exercise the Option, in whole or in part, by providing the
Company with an attestation that such previously owned shares of the
Company’s Common Stock are owned by Optionee, in which case the number of
previously owned shares having a Fair Market Value equal to the exercise
price (or appropriate portion of the exercise price) will be withheld from
the number of shares issued to Optionee pursuant to the exercise of the
Option. Previously owned shares used as provided in the two immediately
preceding sentences must have been owned by Optionee for a minimum of six
months prior to the date of exercise of the Option for this method of
payment to apply.

	6.	 	Income Tax Withholding

To provide the Company with the opportunity to claim the benefit of
any income tax deduction which may be available to it upon the exercise of
the Option, and to comply with all applicable federal or state income tax
laws or regulations, the Company may take such action as it deems
appropriate to ensure that all applicable federal or state payroll,
withholding, income or other taxes, which are the sole and absolute
responsibility of Optionee, are withheld or collected from Optionee. The
Optionee may, at Optionee’s election, satisfy applicable tax withholding
obligations by (i) electing to have the Company withhold a portion of the
shares of Common Stock otherwise to be delivered upon exercise of such
Option having a Fair Market Value equal to the amount of such taxes or (ii)
delivering to the Company shares of Common Stock other than the shares
issuable upon exercise of such Option having a Fair Market Value equal to
the amount of such taxes. The election must be made on or before the date
that the amount of tax to be withheld is determined.

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	7.	 	Miscellaneous

	(a)	 	This Agreement shall not give Optionee any right with respect to
continuance of employment with the Company or any Affiliate, nor will
it interfere in any way with the right of the Company or any Affiliate
to terminate such employment at any time. In addition, the Company or
any Affiliate may at any time dismiss Optionee from employment, free
from any liability or claim under the Plan. The holder of the Option
will not be deemed to be the holder of any shares subject to the
Option unless and until the Option has been exercised and the purchase
price of the shares purchased has been paid.
	 
	(b)	 	Except pursuant to terms approved by the Compensation Committee
of the Board of Directors (the “Committee”), the Option may not be
transferred, except by will or the laws of descent and distribution to
the extent provided in Section 3(a)(iii) or Section 3(a)(iv) , and
during Optionee’s lifetime the Option is exercisable only by Optionee
(or by Optionee’s guardian or legal representative in the case of
Disability).
	 
	(c)	 	In the event that any dividend or other distribution (whether in
the form of cash, shares of Common Stock, or other securities or other
property), recapitalization, stock split, reverse stock split,
reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase or exchange of Common Stock or other
securities of the Company or other similar corporate transaction or
event affecting the stock subject to the Option would be reasonably
likely to result in the diminution or enlargement of any of the
benefits or potential benefits intended to be made available under the
Option (including, without limitation, the benefits or potential
benefits of provisions relating to the term, vesting or exercisability
of the Option, and any “change in control” provision), the Committee
shall, in such manner as it shall deem equitable or appropriate in
order to prevent such diminution or enlargement of any such benefits
or potential benefits, adjust any or all of (i) the number and type of
shares (or other securities or other property) subject to the Option
and (ii) the exercise price with respect to the Option; provided,
however, that the number of shares covered by the Option shall always
be a whole number. Without limiting the foregoing, if any capital
reorganization or reclassification of the capital stock of the
Company, or consolidation or merger of the Company with another
corporation, or the sale of all or substantially all of the Company’s
assets to another corporation, shall be effected in such a way that
holders of the Company’s Common Stock shall be entitled to receive
stock, securities, cash or other assets with respect to or in exchange
for such shares, Optionee shall have the right to purchase and receive
upon the basis and upon the terms and conditions specified in this
Agreement and in lieu of the shares of the Common Stock of the Company
immediately available for purchase and receivable upon the exercise of
the Option, with appropriate adjustments to prevent diminution or
enlargement of benefits or potential benefits intended to be made
available under the Option, such shares of stock, other securities,
cash or other assets as would have been issued or delivered to
Optionee if Optionee had exercised the Option and had received such
shares of Common Stock prior to such reorganization, reclassification,
consolidation, merger or sale. The Company shall not effect any such
consolidation, merger or sale unless prior to the consummation thereof
the successor corporation (if other than the Company) resulting from
such consolidation or merger or the corporation purchasing such assets
shall assume by written instrument the obligation to deliver to
Optionee such shares of stock, securities, cash or other assets as, in
accordance with the foregoing provisions, Optionee may be entitled to
purchase or receive.

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	(d)	 	The Company shall at all times during the term of the Option
reserve and keep available such number of shares of the Company’s
Common Stock as will be sufficient to satisfy the requirements of this
Agreement.
	 
	(e)	 	This Option is issued under the Plan and is subject to its terms.
The Plan is available for inspection on the intranet and during
business hours at the principal offices of the Company.

	8.	 	Governing Law

This Agreement shall be governed by and construed in accordance with the
laws of the State of Minnesota.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of
the day and year first written above.

U.S. BANCORP

By: Karen Bulman

Its: Vice President

8exv10w2

 

EXHIBIT 10.2

U.S. BANCORP

NON-QUALIFIED STOCK OPTION AGREEMENT

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Number of	 	Option	 	Social
	 	 	 	 	U.S. Bancorp	 	Price Per	 	Security
	GRANTED TO
	 	Grant Date
	 	Common Shares
	 	Share ($)
	 	Number

	

	 	
Expiration Date
	 	

	 	

	 	

To accept receipt of the Option and to agree to the terms and conditions of the
Plan and this Agreement, take no action. To reject receipt of the Option and
the terms and conditions of the Plan and this Agreement, please notify Karen
Bulman, Stock Option Administration in Human Resources at U.S. Bancorp, 5065
Wooster Road, CN-OH-L2HR, Cincinnati, OH 45226, in writing within 30 calendar
days of the day you receive this document. Failure to notify in a timely
manner will result in your acceptance of the Option and the terms and
conditions of the Plan and this Agreement. Please read all of the terms and
conditions of this Agreement.

THIS AGREEMENT is made as of the date in the box above labeled “Grant
Date” (the “Grant Date”) by and between U.S. Bancorp, a Delaware
corporation (the “Company”), and the individual named in the box above
labeled “Granted To” (the “Optionee”).

WHEREAS, the Company pursuant to its 2001 Stock Incentive Plan (the
“Plan”) wishes to grant a stock option for the purchase of Common
Stock of the Company, $0.01 par value (the “Common Stock”), to the
Optionee on the terms and conditions contained in this Agreement and
the Plan. In consideration of the mutual covenants contained in this
Agreement, the parties agree as follows:

	1.	 	Grant of Option.

The Company grants Optionee the right and option (the “Option”)
to purchase all or any part of an aggregate of the number of shares of the Company’s Common Stock set forth in the box above
labeled “Number of U.S. Bancorp Common Shares” at the exercise
price set forth in the box above labeled “Exercise Price Per
Share” on the terms and conditions of this Agreement. The
Option is not intended to be an incentive stock option within
the meaning of Section 422 of the Internal Revenue Code of 1986,
as amended (the “Code”).

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	2.	 	Vesting of Exercise Rights.

(a) Subject to the terms and conditions of this Agreement, the Option
may be exercised by Optionee in cumulative installments not in excess
of 25% on or after the first anniversary of the Grant Date, 25% on or
after the second anniversary of the Grant Date, 25% on or after the
third anniversary of the Grant Date and 25% on or after the fourth
anniversary of the Grant Date. If the full amount of stock available
for purchase in any of the foregoing periods is not purchased during
such period, the shares not purchased shall be available for purchase
in any subsequent period during the term of the Option. The Option
shall terminate at the close of business on the date in the box above
labeled “Expiration Date,” or on such earlier date as described in this
Agreement.

(b) Notwithstanding the vesting provision contained in Section 2(a)
above, but subject to the other terms and conditions of this Agreement,
the Option may be exercised in full immediately upon a “Qualifying
Termination.” For purposes of this Agreement, the following terms
shall have the following definitions:

	(i)	 	“Affiliate” shall be defined as defined in Rule 12b-2
promulgated under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”).
	 
	(ii)	 	“Announcement Date” shall mean the date of the public
announcement of the transaction, event or course of action that
results in a Change in Control.
	 
	(iii)	 	“Cause” shall mean (A) the continued failure by Optionee
to substantially perform Optionee’s duties with the Company or any
Affiliate (other than any such failure resulting from Optionee’s
Disability (as defined in Section 3(c))), after a demand for
substantial performance is delivered to Optionee that specifically
identifies the manner in which the Company believes that Optionee
has not substantially performed Optionee’s duties, and Optionee
has failed to resume substantial performance of Optionee’s duties
on a continuous basis, (B) gross and willful misconduct during the
course of employment (regardless of whether the misconduct occurs
on the Company’s premises), including, but not limited to, theft,
assault, battery, malicious destruction of property, arson,
sabotage, embezzlement, harassment, acts or omissions which
violate the Company’s rules or policies (such as breaches of
confidentiality), or other conduct which demonstrates a willful or
reckless disregard of the interests of the Company or its
Affiliates or (C) Optionee’s conviction of a crime (including,
without limitation, a misdemeanor offense) which impairs
Optionee’s ability substantially to perform Optionee’s duties with
the Company.
	 
	(iv)	 	“Change in Control” shall mean any of the following
occurring after the date of this Agreement:

	(A)	 	The acquisition by any Person (as defined in
Section 2(b)(vi)) of beneficial ownership (within the meaning
of Rule 13d-3 promulgated under the Exchange Act) of 35% or
more of either (1) the then outstanding shares of Common Stock
(the “Outstanding Company Common Stock”) or (2) the combined
voting power of the then outstanding voting securities of the
Company entitled to vote generally in the election of
directors (the “Outstanding Company Voting Securities”);
provided, however, that, for purposes of this clause (A), the
following acquisitions shall not constitute a Change in
Control: (i) any

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	 	 	acquisition directly from the Company, (ii) any acquisition by the Company, (iii) any
acquisition by a subsidiary of the Company or any employee
benefit plan (or related trust) sponsored or maintained by the
Company or a subsidiary of the Company (a “Company Entity”) or
(iv) any acquisition by any corporation pursuant to a
transaction which complies with clause (i), (ii) or (iii) of
this clause (A); or

	(B)	 	Individuals who, as of the date, constitute the
Company’s Board of Directors (the “Incumbent Board”) cease for
any reason to constitute at least a majority of the Board of
Directors (except as a result of the death, retirement or
disability of one or more members of the Incumbent Board);
provided, however, that any individual becoming a director
subsequent to the date of this Agreement whose election, or
nomination for election by the Company’s shareholders, was
approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as
though such individual were a member of the Incumbent Board,
but excluding, for this purpose, (1) any such individual whose
initial assumption of office occurs as a result of an actual
or threatened election contest with respect to the election or
removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a
Person other than the Incumbent Board, (2) any director
designated by or on behalf of a Person who has entered into an
agreement with the Company (or which is contemplating entering
into an agreement) to effect a Business Combination (as
defined in Section 2(b)(iv)(C)) with one or more entities that
are not Company Entities or (3) any director who serves in
connection with the act of the Board of Directors of
increasing the number of directors and filling vacancies in
connection with, or in contemplation of, any such Business
Combination; or
	 
	(C)	 	Consummation of a reorganization, merger or
consolidation or sale or other disposition of all or
substantially all of the assets of the Company (a “Business
Combination”), in each case, unless, following such Business
Combination, (1) all or substantially all of the individuals
and entities who were the beneficial owners, respectively, of
the Outstanding Company Common Stock and Outstanding Company
Voting Securities immediately prior to such Business
Combination beneficially own, directly or indirectly, more
than 50% of, respectively, the then outstanding shares of
common stock or the combined voting power of the then
outstanding voting securities entitled to vote generally in
the election of directors, as the case may be, of the
corporation resulting from such Business Combination
(including, without limitation, a corporation which as a
result of such transaction owns the Company or all or
substantially all of the Company’s assets either directly or
through one or more subsidiaries) in substantially the same
proportions as their ownership, immediately prior to such
Business Combination, of the Outstanding Company Common Stock
and Outstanding Company Voting Securities, as the case may be,
(2) no Person (excluding any Company Entity or such
corporation resulting from such Business Combination)
beneficially owns, directly or indirectly, 35% or more of,
respectively, the then outstanding shares of common stock of
the corporation resulting from such Business Combination or
the combined voting power of the then outstanding voting
securities of such corporation except to the extent that such
ownership existed prior to the Business Combination and (3) at
least a majority of the members of the board of directors

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	 	 	of the corporation resulting from such Business Combination
were members of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the
Board of Directors, providing for such Business Combination; or

	(D)	 	Approval by the shareholders of the Company of a
complete liquidation or dissolution of the Company.

	(v)	 	“Notice of Termination” shall mean a written notice which
sets forth the date of termination of Optionee’s employment.
	 
	(vi)	 	“Person” shall be defined as defined in Sections 13(d)(3)
and 14(d)(2) of the Exchange Act.
	 
	(vii)	 	“Qualifying Termination” shall mean a termination of
Optionee’s employment with the Company or its Affiliates by the
Company for any reason other than Cause within 12 months following
a Change in Control; provided, however, that any such termination
shall not be a Qualifying Termination if Optionee has been
notified in writing more than 30 days prior to the Announcement
Date that Optionee’s employment with the Company is not expected
to continue for more than 12 months following the date of such
notification; provided that such exclusion from Qualifying
Termination shall only apply if Optionee’s employment with the
Company is terminated within such 12 month period; and provided,
further, that any such termination shall not be a Qualifying
Termination if Optionee has announced in writing, prior to the
date the Company provides Notice of Termination to Optionee, the
intention to terminate employment or retire, subject to the
condition that any such termination by the Company prior to
Optionee’s stated termination or retirement date shall be deemed
to be termination or retirement by Optionee on such stated date
unless termination by the Company is for Participant’s gross and willful misconduct.

	3.	 	Effect of Termination of Employment

	(a)	 	The Option shall terminate and may no longer be exercised if
Optionee ceases to be employed by the Company or any Affiliate, except
that:

	(i)	 	If Optionee’s employment shall be terminated for any
reason other than Cause, death, Disability, Retirement (as defined
in Section 3(c)) or Early Retirement (as defined in Section 3(c)),
Optionee may at any time within a period of 90 days after such
termination, but not after the termination date of the Option,
exercise the option to the extent that Option was exercisable by
Optionee on the date of the termination of employment.
	 
	(ii)	 	If Optionee’s employment shall be terminated by reason of
Cause, the Option shall be terminated as of the date of the
misconduct.
	 
	(iii)	 	If Optionee shall die while in the employ of the Company
or any Affiliate or within 90 days after termination of employment
for any reason other than Cause, the Option will be fully
exercisable in whole or in part, notwithstanding the vesting
provisions contained in Section 2(a) or Section 2(b), at any time
up to the last day of the three year period commencing on the date
of Optionee’s termination of employment (or, if earlier, the
termination date of the Option), by the personal representatives
or administrators of Optionee or by any Person or Persons to whom
the Option has been transferred by will or the applicable laws of
descent and distribution.

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	(iv)	 	If Optionee’s employment shall be terminated by reason of
Disability, the Optionee may exercise the Option in accordance
with the terms as though such termination had never occurred. If
Optionee shall die following a termination of employment by reason
of Disability, the Option may be exercised in accordance with its
terms by the personal representatives or administrators of
Optionee or by any Person or Persons to whom the Option has been
transferred by will or the applicable laws of descent and
distribution.
	 
	(v)	 	If Optionee’s employment shall be terminated by reason of
Retirement, the Optionee may exercise the Option in accordance
with the terms as though such termination had never occurred, so
long as the Optionee has at all times that an Option is
outstanding under this Agreement complied with the terms of a
properly executed Confidentiality and Nonsolicitation Agreement
between U.S. Bank and the Participant. In all other cases, this
Option shall terminate upon Retirement. If Optionee shall die
following a termination of employment by reason of Retirement but
prior to the termination date of the Option, the Option may be
exercised in accordance with its terms by the personal
representatives or administrators of Optionee or by any Person or
Persons to whom the Option has been transferred by will or the
applicable laws of descent and distribution.
	 
	(vi)	 	If Optionee’s employment shall be terminated by reason of
Early Retirement, Optionee may at any time within a three year
period after such termination, but not after the termination of
the Option, exercise the Option to the extent that it was
exercisable by Optionee on the date of the termination of
employment so long as the Optionee has at all times that an Option
is outstanding under this Agreement complied with the terms of a
properly executed Confidentiality and Nonsolicitation Agreement
between U.S. Bank and the Participant. In all other cases, this
Option shall terminate upon Early Retirement. If Optionee shall
die following a termination of employment by reason of Early
Retirement but prior to the termination date of the Option, the
Option may be exercised in accordance with its terms by the
personal representatives or administrators of Optionee or by any
Person or Persons to whom the Option has been transferred by will
or the applicable laws of descent and distribution.

	(b)	 	Notwithstanding the provisions contained in Section 3(a), but
subject to the other terms and conditions of this Agreement, in the
event that Optionee’s employment is terminated pursuant to a
Qualifying Termination, Optionee shall have the right to exercise the
Option in whole or in part at any time within a one year period after
such termination of employment; provided that no provision of this
paragraph shall shorten the period in which the Option may be
exercised in the event of death, Disability, Retirement or Early
Retirement; and, provided further, that no Option shall be exercisable
after the expiration of the term of the Option.
	 
	(c)	 	For purposes of this Agreement, (A) “Retirement” means
termination of employment (other than for gross and willful
misconduct) by a Person who is age 59 1/2 or older and has 10 or more
years of employment with the Company or its Affiliates, (B) “Early
Retirement” means termination of employment (other than for gross and
willful misconduct) by a Person who is age 55 or older and has 10 or
more years of employment with the Company or its Affiliates and (C)
“Disability” means leaving active employment and qualifying for and
receiving disability benefits under the Company’s long-term disability
programs as in effect from time to time.

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	4.	 	Securities Law Compliance

The exercise of all or any portion of this Option shall only be effective
at such time that the sale of Common Stock issued pursuant to such exercise
will not violate any state or federal securities or other laws. The
Company is under no obligation to effect any registration of the stock
subject to the Option under the Securities Act of 1933 or to effect any
state registration or qualification of such Common Stock. The Company may,
in its sole discretion, defer the effectiveness of any full or partial
exercise of the Option in order to ensure that the issuance of stock upon
exercise will be in compliance with federal or state securities laws and
the rules of the New York Stock Exchange or any other exchange upon which
the Company’s Common Stock is traded.

	5.	 	Method of Exercise of Option

Subject to the foregoing, the Option may be exercised in whole or part from
time to time by serving written notice of exercise on the Company at its
principal executive offices, to the attention of the Company’s Executive
Compensation Department or to its properly designated agent serving from
time to time. The notice shall state the number of shares as to which the
Option is being exercised and be accompanied by payment of the purchase
price. Optionee may, at Optionee’s election, pay the purchase price (a) by
check payable to the Company, (b) in previously owned shares of the
Company’s Common Stock or (c) in any combination of the two, in each case
having a Fair Market Value (as defined in the Plan) on the exercise date
equal to the applicable exercise price. Optionee may, at Optionee’s
election, exercise the Option, in whole or in part, by providing the
Company with an attestation that such previously owned shares of the
Company’s Common Stock are owned by Optionee, in which case the number of
previously owned shares having a Fair Market Value equal to the exercise
price (or appropriate portion of the exercise price) will be withheld from
the number of shares issued to Optionee pursuant to the exercise of the
Option. Previously owned shares used as provided in the two immediately
preceding sentences must have been owned by Optionee for a minimum of six
months prior to the date of exercise of the Option for this method of
payment to apply.

	6.	 	Income Tax Withholding

To provide the Company with the opportunity to claim the benefit of
any income tax deduction which may be available to it upon the exercise of
the Option, and to comply with all applicable federal or state income tax
laws or regulations, the Company may take such action as it deems
appropriate to ensure that all applicable federal or state payroll,
withholding, income or other taxes, which are the sole and absolute
responsibility of Optionee, are withheld or collected from Optionee. The
Optionee may, at Optionee’s election, satisfy applicable tax withholding
obligations by (i) electing to have the Company withhold a portion of the shares of Common Stock otherwise to be delivered upon exercise of such
Option having a Fair Market Value equal to the amount of such taxes or (ii)
delivering to the Company shares of Common Stock other than the shares
issuable upon exercise of such Option having a Fair Market Value equal to
the amount of such taxes. The election must be made on or before the date
that the amount of tax to be withheld is determined.

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	7.	 	Miscellaneous

	(a)	 	This Agreement shall not give Optionee any right with respect to
continuance of employment with the Company or any Affiliate, nor will
it interfere in any way with the right of the Company or any Affiliate
to terminate such employment at any time. In addition, the Company or
any Affiliate may at any time dismiss Optionee from employment, free
from any liability or claim under the Plan. The holder of the Option
will not be deemed to be the holder of any shares subject to the
Option unless and until the Option has been exercised and the purchase
price of the shares purchased has been paid.
	 
	(b)	 	Except pursuant to terms approved by the Compensation Committee
of the Board of Directors (the “Committee”), the Option may not be
transferred, except by will or the laws of descent and distribution to
the extent provided in Section 3(a)(iii) or Section 3(a)(iv) , and
during Optionee’s lifetime the Option is exercisable only by Optionee
(or by Optionee’s guardian or legal representative in the case of
Disability).
	 
	(c)	 	In the event that any dividend or other distribution (whether in
the form of cash, shares of Common Stock, or other securities or other
property), recapitalization, stock split, reverse stock split,
reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase or exchange of Common Stock or other
securities of the Company or other similar corporate transaction or
event affecting the stock subject to the Option would be reasonably
likely to result in the diminution or enlargement of any of the
benefits or potential benefits intended to be made available under the
Option (including, without limitation, the benefits or potential
benefits of provisions relating to the term, vesting or exercisability
of the Option, and any “change in control” provision), the Committee
shall, in such manner as it shall deem equitable or appropriate in
order to prevent such diminution or enlargement of any such benefits
or potential benefits, adjust any or all of (i) the number and type of shares (or other securities or other property) subject to the Option
and (ii) the exercise price with respect to the Option; provided,
however, that the number of shares covered by the Option shall always
be a whole number. Without limiting the foregoing, if any capital
reorganization or reclassification of the capital stock of the
Company, or consolidation or merger of the Company with another
corporation, or the sale of all or substantially all of the Company’s
assets to another corporation, shall be effected in such a way that
holders of the Company’s Common Stock shall be entitled to receive
stock, securities, cash or other assets with respect to or in exchange
for such shares, Optionee shall have the right to purchase and receive
upon the basis and upon the terms and conditions specified in this
Agreement and in lieu of the shares of the Common Stock of the Company
immediately available for purchase and receivable upon the exercise of
the Option, with appropriate adjustments to prevent diminution or
enlargement of benefits or potential benefits intended to be made
available under the Option, such shares of stock, other securities,
cash or other assets as would have been issued or delivered to
Optionee if Optionee had exercised the Option and had received such shares of Common Stock prior to such reorganization, reclassification,
consolidation, merger or sale. The Company shall not effect any such
consolidation, merger or sale unless prior to the consummation thereof
the successor corporation (if other than the Company) resulting from
such consolidation or merger or the corporation purchasing such assets
shall assume by written instrument the obligation to deliver to
Optionee such shares of stock, securities, cash or other assets as, in
accordance with the foregoing provisions, Optionee may be entitled to
purchase or receive.

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	(d)	 	The Company shall at all times during the term of the Option
reserve and keep available such number of shares of the Company’s
Common Stock as will be sufficient to satisfy the requirements of this
Agreement.
	 
	(e)	 	This Option is issued under the Plan and is subject to its terms.
The Plan is available for inspection on the intranet and during
business hours at the principal offices of the Company.

	8.	 	Governing Law

This Agreement shall be governed by and construed in accordance with the
laws of the State of Minnesota.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of
the day and year first written above.

U.S. BANCORP

By: Karen Bulman

Its: Vice President

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