Document:

exv10w37

 

EXHIBIT 10.37

DIRECTOR FEE SUMMARY

     Set forth below is a summary of the current director fee arrangements for non-employee
directors serving on the Boards of Directors of Mercantile Bank Corporation (“Mercantile”) and its
wholly owned subsidiary, Mercantile Bank of Michigan (“Bank”).

     For 2008, non-employee directors of the Bank are paid an annual retainer of $12,000, and a fee
of $700 for each meeting of the Board of Directors of the Bank that they attend. In addition,
non-employee directors are paid a meeting fee of $700 for each meeting of the Audit Committee, $600
for each meeting of the Compensation Committee and the Governance and Nominating Committee, and
$400 for each meeting of other committees of the Board of Directors of the Bank that they attend.
Non-employee directors are also paid fees of the same amount for meetings of Mercantile’s Board of
Directors and its committees, when for Board meetings there is not also a meeting of the Board of
Directors of the Bank on the same day, and for committee meetings when there is not also a meeting
of a committee of the Board of Directors of the Bank having the same name or function on the same
day. For meetings that are held by telephone or other remote communications equipment, the meeting
fees are half the amount described above. Annual retainer fees are also paid to the Chairmen of
three of the committees of Mercantile’s Board of Directors. The annual retainer is, for the
Chairman of the Audit Committee — $6,000, for the Chairman of the Compensation Committee — $4,000,
and for the Chairman of the Nominating Committee — $4,000.

     The same persons currently serve on the Boards of Directors of Mercantile and the Bank. Under
the Bank’s deferred compensation plan for non-employee directors, directors may elect to defer the
receipt of the annual retainer and meeting fees until they are no longer serving on the Board.
Directors are eligible to receive stock-based awards under the Stock Incentive Plan of 2006.

1exv10w41

 

EXHIBIT 10.41

THE MERCANTILE BANK CORPORATION

STOCK INCENTIVE PLAN OF 2006

NOTICE OF GRANT OF

INCENTIVE STOCK OPTION AND

STOCK OPTION AGREEMENT

     You have been granted an option to purchase Common Stock of the Company, subject to the terms
and conditions of the Plan and this Agreement, as follows:

	 	 	 	 	 
	Optionee:

	 	                              	 	 
	 
	 	 	 	 
	Grant Date:

	 	               , 20     	 	 
	 
	 	 	 	 
	Number of Shares:

	 	          	 	 
	 
	 	 	 	 
	Expiration Date:

	 	               , 20     	 	 
	 
	 	 	 	 
	Exercise Price Per Share:

	 	$          	 	 
	 
	 	 	 	 
	[Date First Exercisable:

	 	               , 20     ]	 	 
	 
	 	 	 	 
	[Date First Exercisable:	 	1.                         , 20 as to            shares
	 	 	2.                          , 20 as to            shares
	 	 	3.                          , 20 as to            shares]

     This STOCK OPTION AGREEMENT is executed and delivered in duplicate, as of the            day of
               , 20      by and between Mercantile Bank Corporation, a Michigan corporation (the “Company”),
and the employee named above (the “Optionee”).

     In consideration of the mutual covenants of the parties set forth below, the parties agree as
follows:

     1. Grant of Option. The Company, pursuant to the Company’s Stock Incentive Plan of 2006, as
amended from time to time (the “Plan”), and subject to the terms and conditions of the Plan, grants
to the Optionee an Incentive Stock Option (the “Option”) to purchase the above-designated number of
shares of Common Stock of the Company at the exercise price per share designated above. The number
of shares and exercise price per share of the Option shall be proportionately adjusted in the event
the Company changes the number of shares of its outstanding Common Stock by reason of a stock
dividend or stock split issued to shareholders, and is otherwise subject to adjustment as provided
in the Plan.

     2. Exercisability of Option. The Option shall become first exercisable as described above,
and shall in no event be exercisable after the close of business on the above-designated Expiration
Date. Further, the Committee may in its discretion, at any time accelerate the vesting of the
Option on such terms and conditions as it deems appropriate.

     3. Time to Exercise Option.

     (a) General. If Optionee ceases to be an Employee for any reason other than Optionee’s death,
Disability, or termination for Cause, Optionee may exercise the Option in accordance with its terms
for a period of three months after such termination of employment, but only to the extent Optionee
was entitled to exercise the Option on the date of termination.

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     (b) Death. If Optionee dies either while an Employee or after the termination of employment
other than for Cause but during the time when Optionee could have exercised the Option, the Option
shall be exercisable in accordance with its terms by the personal representative of Optionee or
other successor to the interest of Optionee for one year after Optionee’s death, but only to the
extent that Optionee was entitled to exercise the Option on the date of death or termination of
employment, whichever first occurred, and not beyond the Expiration Date of the Option.

     (c) Disability. If Optionee ceases to be an Employee of the Company or one of its
Subsidiaries due to Optionee’s Disability, Optionee may exercise the Option in accordance with its
terms for one year following such termination of employment, but only to the extent that Optionee
was entitled to exercise the Option on the date of such event and not beyond the Expiration Date of
the Option.

     (d) Termination for Cause. If Optionee’s employment is terminated for Cause, Optionee shall
have no further right to exercise this Option and all of Optionee’s outstanding Options shall
automatically be forfeited and returned to the Company. The Committee or officers designated by
the Committee shall have absolute discretion to determine whether a termination is for Cause.

     4. Method of Exercise. Optionee, from time to time during the period when the Option may by
its terms be exercised, may exercise the Option in whole, or in part in minimum installments of 100
shares, by delivering to the Company:

     (a) A written notice signed by Optionee in substantially the form attached as Exhibit A
stating the number of shares that Optionee has elected to purchase at that time from the Company;
and

     (b) Cash, a check, bank draft, money order or wire of funds payable to the Company in an
amount equal to the purchase price of the shares then to be purchased; or

     (c) Through the delivery of shares of Common Stock of the Company owned by Optionee for more
than six months with a Market Value equal to the exercise price, provided, however, that shares of
Common Stock acquired by Optionee through the exercise of an incentive stock option may not be used
for payment prior to the expiration of holding periods prescribed by the Internal Revenue Code; or

     (d) Consideration received by the Company under a cashless exercise program implemented by the
Company in connection with the Plan; or

     (e) By a combination of any one or more of (b), (c) and (d) above aggregating the purchase
price of the shares then to be purchased.

The value of the shares of the Common Stock delivered to Optionee shall be the Market Value of the
Common Stock as defined in Section 2.18 of the Plan. The Committee, acting pursuant to the Plan,
if it shall deem it necessary or desirable for any reason connected with any law or regulation of
any governmental authority relating to the regulation of securities, may require Optionee to
execute and file with it such evidence as it may deem necessary that Optionee is acquiring such
shares for investment and not with a view to their distribution.

     5. Non-Transferability of Option. The Option shall during the lifetime of Optionee be
exercisable only by Optionee in accordance with the terms of the Plan and shall not be assignable
or transferable except by Will or by the laws of descent and distribution.

     6. Change in Control. The Option is subject to the accelerated vesting, exercise and other
provisions of Section 9 of the Plan relating to Change in Control.

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     7. Notices. Any notice by Optionee to the Company under this Agreement shall be in writing
and shall be deemed duly given only upon receipt of the notice by the Company at its principal
executive offices addressed to its Secretary or Chief Financial Officer. Any notice by the Company
to Optionee shall be in writing or by electronic transmission and shall be deemed duly given if
mailed or sent by electronic transmission to Optionee at the address specified below by Optionee,
or to Optionee’s email address at the Company, or to such other address as Optionee may later
designate by notice given to the Company.

     8. Acceptance of the Terms and Conditions of the Plan. The Option and this Agreement are
subject to the terms and conditions of the Plan. The Plan is incorporated in this Agreement by
reference and all capitalized terms used in this Agreement have the meaning set forth in the Plan,
unless this Agreement specifies a different meaning. By signing this Agreement, Optionee accepts
the Option, acknowledges receipt of a copy of the Plan and the prospectus covering the Plan and
acknowledges that the Option is subject to all the terms and provisions of the Plan and this
Agreement. Optionee further agrees to accept as binding, conclusive and final all decision and
interpretations by the Committee upon any questions arising under the Plan.

     9. Continued Employment. Nothing in this Agreement shall be deemed to create any employment
or guaranty of continued employment or limit in any way the Company’s right to terminate Optionee’s
employment at any time.

     10. Early Disposition of Stock. Optionee understands that if Optionee disposes of any shares
of Common Stock received under the Option within two years after the date of grant or within one
year after such shares of Common Stock were transferred to Optionee, Optionee may be treated for
federal and state income tax purposes as having received ordinary income at the time of such
disposition as determined in accordance with the Internal Revenue Code and applicable state law.
Optionee agrees to notify the Company in writing within thirty days after the date of any such
disposition. Optionee authorizes the Company to withhold tax from Optionee’s current compensation
with respect to any income recognized as a result of any such disposition.

     11. Governing Law. The validity, construction and effect of this Agreement shall be governed
by the laws of the State of Michigan.

     The Company has caused this Agreement to be executed by its duly authorized officer, and
Optionee has executed this Agreement, as of the Grant Date.

	 	 	 	 	 	 	 
	 	 	MERCANTILE BANK CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	OPTIONEE	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	          Optionee acknowledges having received, read and understood the Plan and this Agreement, and agrees to all of the terms and provisions of this Agreement.
	 
	 	 	 	 	 	 
	 	 	(Signature)
	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	(Please print your name)	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Please print your residence address)
	 	 

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EXHIBIT A

NOTICE OF EXERCISE

INCENTIVE STOCK OPTION

     The undersigned hereby gives notice to Mercantile Bank Corporation (the “Company”) of the
desire to purchase shares of Common Stock of the Company pursuant to the Stock Option Agreement
dated                 , 20     .

	1.	 	Exercise of Option.
	 
	 	 	Name:                                                             
	 
	 	 	Date:                                                             
	 
	 	 	Shares to be Exercised:                               
	 
	 	 	Per-Share Exercise Price: $          
	 
	 	 	Aggregate Exercise Price: $          (for all shares being purchased)

	2.	 	Delivery of Payment. Indicate below how the full option exercise price for the shares is to be
paid:

	 	     	 	Cash in the form of check, bank draft, money order, or wire of funds payable to
“Mercantile Bank Corporation”
	 
	 	     	 	By surrender to the Company of shares of Common Stock owned and held for more
than six months with a value of $           represented by certificate number(s):
	 
	 		 	                                             
	 
	 	     	 	Pursuant to a cashless exercise program implemented by the Company
	 
	 	     	 	A combination of the above (please provide details, for example, describe the
number of shares to be purchased with cash and the number of shares to be purchased
with previously owned shares of Common Stock):
	 
	 		 	 

	 
	 		 	 

	 
	 		 	                                                            

							
	 
	 	 	 
	Signature

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

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