Document:

Exhibit 10.27

 

NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, NO
SHARES OF WESTERN SIERRA BANCORP’S COMMON STOCK SHALL BE ISSUED PURSUANT HERETO
UNLESS THE WESTERN SIERRA BANCORP 1999 STOCK OPTION PLAN SHALL HAVE FIRST BEEN
APPROVED BY THE SHAREHOLDERS OF WESTERN SIERRA BANCORP.

 

WESTERN
SIERRA BANCORP

INCENTIVE
STOCK OPTION AGREEMENT

 

This Incentive
Stock Option Agreement (the “Agreement”) is made and entered into as of the
11th day of December 2001, by and between Western Sierra Bancorp, a California
corporation (the “Bancorp”), and Philip Wood 
(“Optionee”);

 

WHEREAS, pursuant
to the Western Sierra Bancorp 1999 Stock Option Plan (the “Plan”), a copy of
which is attached hereto, the Board of Directors of the Bancorp has authorized
granting to Optionee an incentive stock option to purchase all or any part
of  Two Thousand (2,000) authorized but
unissued shares of the Bancorp’s common stock at the price of Fifteen Dollars
and Ninety Cents ($15.90) per share, such option to be for the term and upon
the terms and conditions hereinafter stated;

 

NOW, THEREFORE, it
is hereby agreed:

 

1. 
Grant of Option.  Pursuant to said action of the Board of Directors, the Bancorp
hereby grants to Optionee the option to purchase, upon and subject to the terms
and conditions of the Plan which is incorporated in full herein by this
reference, all or any part of Two Thousand (2,000) shares of the Bancorp’s
common stock (hereinafter called “stock”) at the price of Fifteen Dollars and
Ninety Cents ($15.90) per share, which price is not less than one hundred
percent (100%) of the fair market value of the stock (or not less than 110% of
the fair market value of the stock for Optionee-shareholders who own securities
possessing more than ten percent (10%) of the total combined voting power of
all classes of securities of the Bancorp) as of the date of action of the Board
of Directors granting this option.

 

2. 
Exercisability.  This option shall be exercisable as to:

 

	
  Number of
  Shares

  	
   

  	
  Vesting Date

  	
   

  
	
  400

  	
   

  	
  immediate

  	
   

  
	
  400

  	
   

  	
  12/11/02

  	
   

  
	
  400

  	
   

  	
  12/11/03

  	
   

  
	
  400

  	
   

  	
  12/11/04

  	
   

  
	
  400

  	
   

  	
  12/11/05

  	
   

  

 

This option shall remain
exercisable as to all vested shares until December 11, 2011 (but not later than
ten (10) years from the date this option is granted) unless this option has
expired or terminated earlier in accordance with the provisions hereof or in
the Plan.  Subject to paragraphs 4 and
5, shares as to which this option becomes exercisable pursuant to the foregoing
provision may be purchased at any time prior to expiration of this option.

 

3. 
Exercise of Option.  This option may be exercised by written notice (substantially in
the form as that which is attached as Exhibit A) delivered to the Bancorp
stating the number of shares with respect to which this option is being exercised,
together with (a) cash in the amount of the purchase price of such shares, or
(b) subject to applicable law, with the Bancorp’s stock previously acquired by
Optionee and held by Optionee for a period of at least six months.  Notwithstanding the foregoing, in the event Optionee
does exercise the option by utilizing (b) above, Optionee should obtain tax
advice as to the consequences of such action. 
Not less than ten (10) shares may be purchased at any one time unless
the number purchased is the total number which may be purchased under this
option and in no event may the option be exercised with respect to fractional
shares.  Upon exercise, Optionee shall
make appropriate arrangements and shall be responsible for the withholding of
any federal and state taxes then due.

 

4. 
Cessation of Employment.  Except as provided in Paragraphs 2 and 5
hereof, if Optionee shall cease to be an employee of the Bancorp or a
subsidiary corporation for any reason other than Optionee’s death or disability
[as defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as
amended from time to time (the “Code”)], this option shall expire three (3)
months thereafter.  During the three (3)
month period this option shall be exercisable only as to those installments, if
any, which had accrued as of the date when Optionee ceased to be an employee of
the Bancorp or a subsidiary corporation.

 

5. 
Termination of Employment for Cause.  If Optionee’s employment with the Bancorp or
a subsidiary corporation is terminated for cause, this option shall expire
thirty (30) days from the date of such termination.  Termination for cause shall include, but not be limited to,
termination for malfeasance or gross misfeasance in the performance of duties
or conviction of a crime involving moral turpitude, and, in any event, the
determination of the Board of Directors with respect thereto shall be final and
conclusive.

 

6. 
Nontransferability; Death or Disability of Optionee.  This option shall not be transferable except
by will or by the laws of descent and distribution and shall be exercisable
during Optionee’s lifetime only by Optionee. 
If Optionee dies while serving as an employee of the Bancorp or a
subsidiary corporation, or during the three (3) month period referred to in
Paragraph 4 hereof, this option shall expire one (1) year after the date of
Optionee’s death or on the day specified in

 

1

 

Paragraph 2 hereof,
whichever is earlier.  After Optionee’s
death but before such expiration, the persons to whom Optionee’s rights under
this option shall have passed by will or by the laws of descent and
distribution or the executor or administrator of Optionee’s estate shall have
the right to exercise this option as to those shares for which installments had
accrued under Paragraph 2 hereof as of the date on which Optionee ceased to be
an employee of the Bancorp or a subsidiary corporation.

 

If Optionee
terminates his or her employment because of disability (as defined in Section
22(e)(3) of the Code), Optionee may exercise this option to the extent he or
she is entitled to do so at the date of termination, at any time within one (1)
year of the date of termination, or before the expiration date specified in
Paragraph 2 hereof, whichever is earlier.

 

7. 
Employment. 
This Agreement shall not obligate the Bancorp or a subsidiary
corporation to employ Optionee for any period, nor shall it interfere in any
way with the right of the Bancorp or a subsidiary corporation to reduce
Optionee’s compensation.

 

8. 
Privileges of Stock Ownership.  Optionee shall have no rights as a
shareholder with respect to the Bancorp’s stock subject to this option until
the date of issuance of stock certificates to Optionee.  Except as provided in the Plan, no
adjustment will be made for dividends or other rights for which the record date
is prior to the date such stock certificates are issued.

 

9. 
Modification and Termination.  The rights of Optionee are subject to
modification and termination upon the occurrence of certain events as provided
in Sections 13 and 14 of the Plan.

 

10. 
Notification of Sale.  Optionee agrees that Optionee, or any person acquiring shares
upon exercise of this option, will notify the Bancorp not more than five (5)
days after any sale or other disposition of such shares.

 

11. 
Representations of Optionee.  No shares issuable upon the exercise of this
option shall be issued and delivered unless and until the Bancorp has complied
with all applicable requirements of California and federal law and of the
Securities and Exchange Commission and the California Department of
Corporations pertaining to the issuance and sale of such shares, and all
applicable listing requirements of the securities exchanges, if any, on which
shares of the Bancorp of the same class are then listed.  Optionee agrees to ascertain that such
requirements shall have been complied with at the time of any exercise of this
option.  In addition, if the Optionee is
an “affiliate” for purposes of the Securities Act of 1933, there may be
additional restrictions on the resale of stock, and Optionee therefore agrees
to ascertain what those restrictions are and to abide by the restrictions and
other applicable federal and state securities laws.

 

Furthermore, the
Bancorp may, if it deems appropriate, issue stop transfer instructions against
any shares of stock purchased upon the exercise of this option and affix to any
certificate representing such shares the legends which the Bancorp deems
appropriate.

 

Optionee
represents that the Bancorp, its directors, officers, employees and agents have
not and will not provide tax advice with respect to the option, and Optionee
agrees to consult with his or her own tax advisor as to the specific tax
consequences of the option, including the application and effect of federal,
state, local and other tax laws.

 

12. 
Notices. 
Any notice to the Bancorp provided for in this Agreement shall be
addressed to it in care of its President or Chief Financial Officer at its main
office and any notice to Optionee shall be addressed to Optionee’s address on
file with the Bancorp or a subsidiary corporation, or to such other address as
either may designate to the other in writing. 
Any notice shall be deemed to be duly given if and when enclosed in a
properly sealed envelope and addressed as stated above and deposited, postage
prepaid, with the United States Postal Service.  In lieu of giving notice by mail as aforesaid, any written notice
under this Agreement may be given to Optionee in person, and to the Bancorp by
personal delivery to its President or Chief Financial Officer.

 

13. 
Incentive Stock Option.  This Agreement is intended to be an
incentive stock option agreement as defined in Section 422 of the Code;
provided, however, that if the option shall fail to constitute an incentive
stock option for any reason, the option shall thereafter be governed by the
provisions of the Plan regarding nonqualified stock options.

 

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

 

	
  OPTIONEE

  	
  WESTERN SIERRA BANCORP

  
	
   

  	
   

  
	
  By 

  	
     /s/
  Philip Wood

  	
   

  	
  By

  	
     /s/
  Chuck Bacchi

  	
   

  
	
   

  	
  Philip Wood

  	
   

  	
   

  	
  Chuck Bacchi, Chairman

  
	
   

  	
   

  
	
   

  	
  By

  	
     /s/
  Gary Gall

  	
   

  
	
   

  	
   

  	
  Gary Gall, President
  & CEO

  
							

 

2Exhibit

10.28 

 

NOTWITHSTANDING

ANY OTHER PROVISION OF THIS AGREEMENT, NO SHARES OF WESTERN SIERRA BANCORP’S

COMMON STOCK SHALL BE ISSUED PURSUANT HERETO UNLESS THE WESTERN SIERRA BANCORP

1999 STOCK OPTION PLAN SHALL HAVE FIRST BEEN APPROVED BY THE SHAREHOLDERS OF

WESTERN SIERRA BANCORP.

 

WESTERN

SIERRA BANCORP

INCENTIVE

STOCK OPTION AGREEMENT

 

This Incentive

Stock Option Agreement (the “Agreement”) is made and entered into as of the

11th day of December, 2001, by and between Western Sierra Bancorp, a California

corporation (the “Bancorp”), and Douglas Nordell  (“Optionee”);

 

WHEREAS, pursuant

to the Western Sierra Bancorp 1999 Stock Option Plan (the “Plan”), a copy of

which is attached hereto, the Board of Directors of the Bancorp has authorized

granting to Optionee an incentive stock option to purchase all or any part

of  Three Thousand (3,000) authorized

but unissued shares of the Bancorp’s common stock at the price of Fifteen

Dollars and Ninety Cents ($15.90) per share, such option to be for the term and

upon the terms and conditions hereinafter stated;

 

NOW, THEREFORE, it

is hereby agreed:

 

1. 

Grant of Option.  Pursuant to said action of the Board of Directors, the Bancorp

hereby grants to Optionee the option to purchase, upon and subject to the terms

and conditions of the Plan which is incorporated in full herein by this

reference, all or any part of Three Thousand (3,000) shares of the Bancorp’s

common stock (hereinafter called “stock”) at the price of Fifteen Dollars and

Ninety Cents ($15.90) per share, which price is not less than one hundred

percent (100%) of the fair market value of the stock (or not less than 110% of

the fair market value of the stock for Optionee-shareholders who own securities

possessing more than ten percent (10%) of the total combined voting power of

all classes of securities of the Bancorp) as of the date of action of the Board

of Directors granting this option.

 

2. 

Exercisability.  This option shall be exercisable as to:

 

	

  Number of

  Shares

  	

   

  	

  Vesting Date

  	

   

  
	

  600

  	

   

  	

  immediate

  	

   

  
	

  600

  	

   

  	

  12/11/02

  	

   

  
	

  600

  	

   

  	

  12/11/03

  	

   

  
	

  600

  	

   

  	

  12/11/04

  	

   

  
	

  600

  	

   

  	

  12/11/05

  	

   

  

 

This option shall remain

exercisable as to all vested shares until December 11 , 2011 (but not later

than ten (10) years from the date this option is granted) unless this option

has expired or terminated earlier in accordance with the provisions hereof or

in the Plan.  Subject to paragraphs 4

and 5, shares as to which this option becomes exercisable pursuant to the

foregoing provision may be purchased at any time prior to expiration of this option.

 

3. 

Exercise of Option.  This option may be exercised by written notice (substantially in

the form as that which is attached as Exhibit A) delivered to the Bancorp

stating the number of shares with respect to which this option is being exercised,

together with (a) cash in the amount of the purchase price of such shares, or

(b) subject to applicable law, with the Bancorp’s stock previously acquired by

Optionee and held by Optionee for a period of at least six months.  Notwithstanding the foregoing, in the event

Optionee does exercise the option by utilizing (b) above, Optionee should

obtain tax advice as to the consequences of such action.  Not less than ten (10) shares may be

purchased at any one time unless the number purchased is the total number which

may be purchased under this option and in no event may the option be exercised

with respect to fractional shares.  Upon

exercise, Optionee shall make appropriate arrangements and shall be responsible

for the withholding of any federal and state taxes then due.

 

4. 

Cessation of Employment.  Except as provided in Paragraphs 2 and 5

hereof, if Optionee shall cease to be an employee of the Bancorp or a

subsidiary corporation for any reason other than Optionee’s death or disability

[as defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as

amended from time to time (the “Code”)], this option shall expire three (3)

months thereafter.  During the three (3)

month period this option shall be exercisable only as to those installments, if

any, which had accrued as of the date when Optionee ceased to be an employee of

the Bancorp or a subsidiary corporation.

 

5. 

Termination of Employment for Cause.  If Optionee’s employment with the Bancorp or

a subsidiary corporation is terminated for cause, this option shall expire

thirty (30) days from the date of such termination.  Termination for cause shall include, but not be limited to,

termination for malfeasance or gross misfeasance in the performance of duties

or conviction of a crime involving moral turpitude, and, in any event, the

determination of the Board of Directors with respect thereto shall be final and

conclusive.

 

6. 

Nontransferability; Death or Disability of Optionee.  This option shall not be transferable except

by will or by the laws of descent and distribution and shall be exercisable

during Optionee’s lifetime only by Optionee. 

If Optionee dies while serving as an employee of the Bancorp or a

subsidiary corporation, or during the three (3) month period referred to in

Paragraph 4 hereof, this option shall expire one (1) year after the date of

Optionee’s death or on the day specified in Paragraph 2 hereof, whichever is

earlier.  After Optionee’s death but

before such expiration, the persons to whom Optionee’s

 

1

 

rights under this option

shall have passed by will or by the laws of descent and distribution or the

executor or administrator of Optionee’s estate shall have the right to exercise

this option as to those shares for which installments had accrued under

Paragraph 2 hereof as of the date on which Optionee ceased to be an employee of

the Bancorp or a subsidiary corporation.

 

If Optionee

terminates his or her employment because of disability (as defined in Section

22(e)(3) of the Code), Optionee may exercise this option to the extent he or

she is entitled to do so at the date of termination, at any time within one (1)

year of the date of termination, or before the expiration date specified in

Paragraph 2 hereof, whichever is earlier.

 

7. 

Employment. 

This Agreement shall not obligate the Bancorp or a subsidiary

corporation to employ Optionee for any period, nor shall it interfere in any

way with the right of the Bancorp or a subsidiary corporation to reduce Optionee’s

compensation.

 

8. 

Privileges of Stock Ownership.  Optionee shall have no rights as a

shareholder with respect to the Bancorp’s stock subject to this option until

the date of issuance of stock certificates to Optionee.  Except as provided in the Plan, no

adjustment will be made for dividends or other rights for which the record date

is prior to the date such stock certificates are issued.

 

9. 

Modification and Termination.  The rights of Optionee are subject to

modification and termination upon the occurrence of certain events as provided

in Sections 13 and 14 of the Plan.

 

10. 

Notification of Sale.  Optionee agrees that Optionee, or any person acquiring shares

upon exercise of this option, will notify the Bancorp not more than five (5)

days after any sale or other disposition of such shares.

 

11. 

Representations of Optionee.  No shares issuable upon the exercise of this

option shall be issued and delivered unless and until the Bancorp has complied

with all applicable requirements of California and federal law and of the

Securities and Exchange Commission and the California Department of

Corporations pertaining to the issuance and sale of such shares, and all

applicable listing requirements of the securities exchanges, if any, on which

shares of the Bancorp of the same class are then listed.  Optionee agrees to ascertain that such

requirements shall have been complied with at the time of any exercise of this

option.  In addition, if the Optionee is

an “affiliate” for purposes of the Securities Act of 1933, there may be

additional restrictions on the resale of stock, and Optionee therefore agrees

to ascertain what those restrictions are and to abide by the restrictions and

other applicable federal and state securities laws.

 

Furthermore, the

Bancorp may, if it deems appropriate, issue stop transfer instructions against

any shares of stock purchased upon the exercise of this option and affix to any

certificate representing such shares the legends which the Bancorp deems

appropriate.

 

Optionee

represents that the Bancorp, its directors, officers, employees and agents have

not and will not provide tax advice with respect to the option, and Optionee

agrees to consult with his or her own tax advisor as to the specific tax

consequences of the option, including the application and effect of federal,

state, local and other tax laws.

 

12. 

Notices. 

Any notice to the Bancorp provided for in this Agreement shall be

addressed to it in care of its President or Chief Financial Officer at its main

office and any notice to Optionee shall be addressed to Optionee’s address on

file with the Bancorp or a subsidiary corporation, or to such other address as

either may designate to the other in writing. 

Any notice shall be deemed to be duly given if and when enclosed in a

properly sealed envelope and addressed as stated above and deposited, postage

prepaid, with the United States Postal Service.  In lieu of giving notice by mail as aforesaid, any written notice

under this Agreement may be given to Optionee in person, and to the Bancorp by

personal delivery to its President or Chief Financial Officer.

 

13.                                                      Incentive

Stock Option.  This Agreement is

intended to be an incentive stock option agreement as defined in Section 422 of

the Code; provided, however, that if the option shall fail to constitute an

incentive stock option for any reason, the option shall thereafter be governed

by the provisions of the Plan regarding nonqualified stock options.

 

IN WITNESS WHEREOF, the

parties hereto have executed this Agreement as of the day and year first above

written.

 

	

  OPTIONEE

  	

  WESTERN SIERRA BANCORP

  
	

   

  	

   

  
	

  By 

  	

     /s/

  Douglas Nordell

  	

   

  	

  By

  	

     /s/

  Gary Gall 

  	

   

  
	

   

  	

  Douglas Nordell

  	

   

  	

   

  	

  Gary Gall, President

  & CEO

  
	

   

  	

   

  
	

   

  	

  By

  	

     /s/

  Chuck Bacchi

  	

   

  
	

   

  	

   

  	

  Chuck Bacchi,Chairman

  

 

2

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