Document:

EXHIBIT
10.3

 

TENNESSEE COMMERCE BANK

Incorporator’s Common Stock Option

Number

 

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

 

2.                                       Expiration Date. 
This Option shall expire and all rights hereunder shall cease on the
tenth anniversary of the date of this Option.

 

3.                                       Number of Shares Covered by
Option; Exercise Price.  The number of shares of the Company’s  Common Stock for which this Option may be
exercised shall be 3,750 shares, subject to adjustment as provided in paragraph
4 below, which may be purchased as a whole or in part any time.  The price per share for the shares purchased
upon exercise of this Option shall be $10.00 per share, subject to adjustment
as provided in paragraph 4 below (the “Exercise Price”).

 

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

 

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

 

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

 

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

 

 

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

 

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

 

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

 

DATED: Effective                                 

	
   

  	
  TENNESSEE COMMERCE BANK

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:EXHIBIT
10.4

 

STOCK
OPTION AGREEMENT

 

THIS
AGREEMENT, dated effective as of the 31st day of
August, 2003, is by and between
                                                ,
a resident of                                   ,
(hereinafter referred to as “Holder”), and TENNESSEE COMMERCE BANCORP, INC., a
Tennessee corporation (hereinafter referred to as the “Corporation”).

 

FOR AND IN
CONSIDERATION of services rendered by the Holder to the Corporation, the
parties hereto agree as follows:

 

1.             Option.  The Holder has the right to purchase up to
10,000 shares of Common Stock, no par value, (the Stock) of the
Corporation for a cash purchase price of $21.00 per share.  The right to exercise these options shall
vest on August 31, 2003.  Subject to
these vesting requirements, these options may be exercised in increments or in
whole at any time on or before August 31. 2013.

 

2.             Condition. 
The exercise of this option is subject to the approval of
any bank or bank holding company regulator, if required at such time by law or
regulation.

 

3.             Reservation
of Stock.  The Corporation
covenants that while the option is exercisable, it will reserve from its
authorized and unissued Stock a sufficient number of shares to provide for the
delivery of stock pursuant to the exercise of this option.

 

4.             Protection
Against Dilution.  In any of
the following events, occurring hereafter, appropriate adjustment shall be made
in the number of shares deliverable upon the exercise of this option or the
price per share to be paid so as to maintain the proportionate interest of each
option holder:  (a) recapitalizataion of
the Corporation through a split-up of the outstanding shares of the Stock or a
combination of the outstanding shares into a lesser number; or (b) declaration
of a dividend on the Stock of the Corporation, payable in Stock or securities
convertible into stock.

 

5.             Merger.  If the Corporation, or any successor, shall
be consolidated or merged with another corporation, or substantially all of its
assets shall be sold to another corporation in exchange for stock with the view
to distribution such stock to its shareholders, each share of stock purchasable
by this option shall be replaced for the purposes hereof by the securities or
property issuable or distributable in respect of one share of Stock of this
Corporation, or its successors, upon such consolidation, merger, or sale, and
adequate provision to that effect shall be made at the time thereof.  Such provision shall apply to the establishment
of a holding company to acquire shares of the Corporation.

 

6.             Early
Vesting.  In the event of a
change in control, as defined herein, occurs, any unvested options under this
Agreement shall become immediately vested. 
As used herein, the term “control” shall mean (a) the ownership (whether
directly, indirectly, beneficially or of record) of shares in excess of 25% of
the outstanding shares of Stock by a person or group of persons (including,
without limitation, a corporation, trust, partnership, joint venture,
individual or other entity), or (b) the occurrence of any transaction relating
to the Corporation required to be disclosed pursuant to the requirements of
Section 7(j) of the Federal Deposit Insurance Act, as amended, relating the
control of at least 25% of the outstanding shares of Stock, or (c) any change
in the composition of the Board of Directors of the Corporation resulting in a
majority of the present directors of the Corporation not constituting a
majority two years hence, provided, that in making such determination directors
who were elected by, or on the recommendation of, such present majority, shall
be excluded.  An issuance of shares of
Stock initiated by the Corporation in the ordinary course of Business shall be
excluded from this Section.  Beneficial
ownership shall include all shares directly or indirectly owned by a person or
group of persons or any affiliates or associates of such person or group of
persons, or shares which such person or group of persons, affiliates or
associates have the right to acquire through the exercise of any option,
warrant or right or otherwise and all shares as to which such person or group
of persons, affiliates or associates, directly or indirectly, have or share
voting power or investment power or both. 
As used herein, the term “combined entity” shall mean the Corporation
and the person or groups of persons are combined or separate legal entities.

 

 

7.             Shareholder’s
Rights.  Until the valid
exercise of this option, the holder hereof shall not be entitled to any rights
of a shareholder; but immediately upon the exercise of this
option and upon payment as provided herein, the holder hereof shall be deemed a
record holder of the Stock.

 

8.             Securities
Acknowledgment.  This Option
has not been registered with the Securities and Exchange Commission or any
other federal or state regulatory agency. 
This Option may not be offered for sale, sold, transferred, assigned,
pledged, or otherwise hypothecated in the absence of an effective registration
statement with respect to the security under any applicable federal or state
securities law or an opinion of counsel that the proposed transaction is exempt
under the applicable federal and state securities laws or is otherwise in
compliance with such laws.

 

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

 

IN
WITNESS WHEREOF, the Corporation has executed this instrument effective on the date
and year first above written.

 

	
   

  	
  TENNESSEE COMMERCE BANCORP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Arthur F.
  Helf 

  Chairman of the Board

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