Document:

exhibit4-6.htm

    
      Exhibit
        4.6

       

      REDIFF.COM
        INDIA LIMITED

      

      ADR
        LINKED EMPLOYEE STOCK OPTION PLAN-2006

      

      1.           Purpose.  The
        purpose of this ADR Linked Employee Stock Option Plan 2006 (“Plan”) is to
        promote ownership of American Depository Shares representing equity shares
        of
        Rediff.com India Limited by key employees and directors of Rediff.com India
        Limited and its subsidiaries, thereby reinforcing a mutuality of interest
        with
        other shareholders, and to enable Rediff.com India Limited and its subsidiaries
        to attract, retain and motivate key employees and directors by permitting
        them
        to share in its growth.

      

      2.           Definitions.  As
        used in this Plan,

      

      “Compensation
        Committee” means the Compensation Committee of Board of Directors of
        the Company.

      

      “Company”
        means Rediff.com India Limited, a company incorporated under the laws of
        India
        and includes any successor thereto.

      

      “Director”
        means a member of the Board of Directors of the Company.

      

      “Exercise
        Price” is the price payable by the Participant for exercising the
        Option granted to him in pursuance of this Plan.

      

      “Fair
        Market Value” means
        as
        of any given day the last reported sale price of American Depositary Share
        (“ADS”) on NASDAQ on the day preceding the day, such determination is being made
        or if there was no last reported sale price, reported on such day on the
        most
        recently preceding day on which such a last price was reported or if the
        shares
        are not listed or admitted to trading on NASDAQ on the day as of which the
        determination is being made the amount determined by the Board to be the
        Fair
        Market Value of a share on such a day.

      

      “Market
        Price” means
        the closing price of the ADS on a
        particular date on the NASDAQ, USA.

      

      “NASDAQ”
        means the National Association of Securities Dealers Automated Quotation
        System.

      

      “Option”
        means the right to purchase Shares upon exercise of an option granted pursuant
        to Section 4 of this Plan.

      

      “Participant”
        means an employee who is: (a) a permanent employee of the Company working
        in
        India or out of India; or (b) a director of the Company whether a whole-time
        director or not; or (c) an employee as defined in sub-clauses (a) or (b)
        of a
        subsidiary, in India or out of India or of a Holding company of the Company,
        but
excludes (a) any person who is a Promoter or who belongs to the Promoter
        Group; (b) a director who either directly or indirectly through an immediate
        relative or a body corporate, holds more than 10% of the

      
        
          
          

        

        
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      Company’s
        outstanding equity shares or securities convertible into equity shares; and
        (c)
        any other person to whom the issue of options hereunder would result in
        non-compliance with applicable law (including Indian regulations and
        guidelines).

      

      “Plan”
        means this ADR Linked Stock Option Plan 2006 of the Company, as amended from
        time to time.

      

      “Promoter”
        means:

      
        	
                 

              	
                (a)

              	
                the
                  person or person(s) who are in over all control of the
                  Company

              

      

      
        	
                 

              	
                (b)

              	
                the
                  person or person(s) who are instrumental in the formation of the
                  Company
                  or programme pursuant to which the shares were offered to the
                  public;

              

      

      
        	
                 

              	
                (c)

              	
                the
                  person or person(s) named in the offer document as
                  promoter(s)

              

      

      

      Provided
        that a director or officer of the company if they are acting as such only
        in
        their professional capacity will not be deemed to be a promoter.

      

      Explanation:
        Where a promoter of the company is a body corporate the promoters of that
        body
        corporate shall also be deemed to be promoters of the company.

      

      “Promoter
        Group” means:

      
        	
                 

              	
                (a)

              	
                an
                  immediate relative of the promoter (i.e., spouse of that person,
                  or any
                  parent, brother, sister or child of the person or of the
                  spouse.

              

      

      
        	
                 

              	
                (b)

              	
                persons
                  whose shareholding is aggregated for the purpose of disclosing
                  in the
                  offer document “shareholding of the promoter
                  group”.

              

      

      

      “Shares”
        means the American Depositary Shares representing equity shares of the Company
        (presently par value Rs 5/- per share), as adjusted in accordance with Section
        5
        of this Plan.

      

      3.           Shares
        Available.

      

      (a)           Subject
        to adjustment as provided in Section 5 of this Plan, the total number of
        Shares
        which may be arising from this Plan  shall not exceed 3,35,000 equity
        shares (i.e., equivalent to 6,70,000 ADRs).

      

      (b)           The
        number of Shares available in Section 3(a) above shall be adjusted to account
        for Shares relating to Options that expire, are forfeited, are terminated
        or are
        transferred, surrendered or relinquished upon the payment of any Exercise
        Price
        by the transfer to the Company of Shares or upon satisfaction of any withholding
        amount. Options
        forfeited, terminated or are transferred, surrendered or relinquished may
        be
        reissued to the Participants by the Compensation Committee.

      

      

      (c)           Notwithstanding
        anything in this Plan to the contrary, but subject to adjustment as provided
        in
        Section 5 of this Plan, no individual Participant shall, during any single
        calendar year, be granted Options under this Plan for Shares in excess of
        such
        percentage as permitted under the applicable laws , unless prior specific
        shareholder approval is obtained.

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      4.           Options.  The
        Compensation Committee may, from time to time and upon such terms and conditions
        as the Compensation Committee may determine, authorize the grant of Options
        to
        Participants provided that such grant of Options would not result in
        non-compliance with applicable law (including Indian regulations and
        guidelines).  Each such grant may utilize any or all of the
        authorizations, and shall be subject to all of the requirements or terms
        contained in the following provisions:

      

      (a)           Each
        grant shall specify the number of Shares to which it pertains, which shall
        be
        subject to the limitations set forth in Section 3 of this Plan. Each grant
        shall
        also specify an option price per Share which shall, unless prohibited by
        applicable law, be no more than 110% of the Fair Market Value and no less
        than
        50% of the Fair Market Value on the date of grant. The criteria to be applied
        by
        the Compensation Committee in determining the actual number of Shares to
        be
        awarded by Options granted to any Participant and the Exercise price per
        Share
        shall be based on the grade of the Participant and may include, without
        limitation, the length of service, contributions, dedication and performance
        of
        the Participant and shall take into account applicable tax laws and such
        other
        factors as the Compensation Committee may deem relevant from time to time.
        The
        Compensation Committee may from time to time determine the Participants or
        class
        of Participants who would be eligible for Options under this Plan. The
        Compensation Committee, while arriving at the decision on the eligibility
        of a
        Participant to Options and the quantum of the Shares to which a Participant
        is
        entitled, will take into consideration the attributes such as the grade of
        the
        Participant, length of service, role of the Participant, his contribution
        to the
        overall performance of the Company, the performance of Profit Centre/Division
        to
        which he belongs, importance of the Participant to the future performance
        and
        success of the Company, sense of loyalty towards the Company, significance
        of
        the Participant in enterprise valuation of the Company, etc.

      

      (b)           The
        Exercise Price per share for the purposes of the grant of Options shall be
        determined by the Compensation Committee at the time of grant of options
        to a
        Participant. Each grant shall specify the number of shares to which it pertains
        which shall be subject to limitation set forth in Section 3 of this
        Plan.  The Exercise Price of the options granted shall be on basis of
        formula which is linked to the Fair Market Value of American Depositary Shares
        listed on the NASDAQ on the date of grant (or the previous date if there
        is no
        listing available on the date of meeting). The specific formula determining
        exercise price shall be determined by the Compensation Committee at the time
        of
        making such grants. However, the Exercise Price shall not be less than the
        face
        value of Equity shares.

      

      Each
        grant shall specify the number of shares to which it pertains which shall
        be
        subject to limitation set forth in Section 3 of this Plan.

      

      (c)           Successive
        grants may be made to the same Participant whether or not any Options previously
        granted to such Participant remain unexercised.

      

      (d)           Options
        granted under this Plan may be (i) options that are intended to qualify under
        particular provisions of applicable tax laws of any jurisdiction, (ii) options
        that are not intended  to so qualify, or (iii) combinations of the
        foregoing. To the extent that any provision of this Plan would prevent an
        Option
        intended to qualify under particular provisions of applicable tax laws from
        qualifying as such, that provision shall not apply to (and shall have no
        effect
        whatsoever in respect of) such Option or its subsequent
        exercise.  Such provision shall,
        however, remain in effect for other Options and there shall be no further
        effect
        on any provision of this Plan.

      
        
          
          

        

        
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      (e)           Each
        grant shall specify the period or periods of continuous service by the
        Participant with the Company or any of its subsidiaries that is necessary
        before
        the Options or installments thereof will become exercisable and may provide
        for
        earlier exercise of the Option, including, without limitation, in the event
        of a
        change in control of the Company or death or permanent incapacity of the
        Participant while being employed or associated with the Company.  Each
        grant shall also specify the events if any due to which the Options cease
        to
        become exercisable,

      

      (f)           Each
        grant shall specify when the Option will become exercisable  A
        Participant may exercise an Option in whole or in part at any time and from
        time
        to time after such Option becomes exercisable; providedhowever
        that no Option shall be exercisable more than 10 years from the date of
        grant.

      

      (g)           To
        exercise an Option, a Participant must give written notice acceptable to
        the
        Company specifying the number of Shares to be purchased and make payment
        of the
        Exercise price and provide any other documentation that may be required by
        the
        Company.

      

      (h)           The
        Exercise price shall be payable in cash or by other consideration acceptable
        to
        the  Compensation Committee. .

      

      (i)           
        A grant may provide for deferred payment of the Exercise price from the proceeds
        of sale through a broker, on a date satisfactory to the Company, of some
        or all
        of the Shares to which such exercise relates.

      

      (j)           Except
        as otherwise determined by the Compensation Committee, no Option shall be
        transferable or capable of being pledged, hypothecated, mortgaged or otherwise
        alienated or disposed of in any manner by the Participant except by will
        or the
        laws of descent and distribution.  Except as otherwise determined by
        the Board, Options shall be exercisable during the Participant’s lifetime only
        by the Participant or, in the event of the Participant’s legal incapacity to do
        so, the Participant’s guardian or legal representative acting on behalf of the
        Participant in a fiduciary capacity under applicable law and court supervision
        or following the Participant’s death, by the Participant’s executors or legal
        representatives under applicable law.

      

      (k)           A
        Participant shall not have a right to receive any dividend or to vote or
        in any
        manner enjoy the benefits of a shareholder in respect of the options granted
        to
        him.

      

      5.           Adjustments.  The
        Compensation Committee may make or provide for such adjustments in the Exercise
        price and in the number or kind of Options or Shares or other securities
        covered
        by outstanding Options as the Compensation Committee in its sole discretion
        may
        in good faith determine to be equitably required in order to prevent dilution
        or
        enlargement of the rights of Participants that would otherwise result from
        any
        (a) stock dividend, stock split, combination of shares, recapitalization
        or
        other change in the capital structure of the Company, (b) merger,
        consolidation, separation, reorganization, partial or complete liquidation,
        issuance of rights or warrants to  purchase stock or issuance of
        capital stock or securities convertible or exchangeable into or exercisable
        for
        capital stock at less than market price or (c) other corporate transaction
        or
        event having an effect similar to any of

      
        
          
          

        

        
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      the
        foregoing.  Moreover, in the event of any such transaction or event,
        the Compensation Committee, in its discretion, may provide in substitution
        for
        any or all outstanding Options under this Plan such alternative consideration
        as
        it, in good faith, may determine to be equitable in the circumstances and
        may
        require in connection therewith the surrender of all options so
        replaced.  The Compensation Committee may also make or provide for
        such adjustments in the number of Shares specified in Section 3 of this Plan
        as
        the Compensation Committee in its sole discretion, exercised in good faith,
        may
        determine is appropriate to reflect any transaction or event described in
        this
        Section 5.

      

      6.           Stock
        Option Agreement.  The Compensation Committee may require that any
        Option grant be evidenced by a Stock Option Agreement.  The form of
        each Stock Option Agreement shall be prescribed by the Compensation Committee,
        and any Stock Option Agreement evidencing an outstanding Option may, with
        the
        concurrence of the affected Participant, be amended by the Compensation
        Committee, provided that the terms and conditions of each Stock Option Agreement
        and amendment are not inconsistent with this Plan and that no amendment shall
        adversely affect the rights of the Participant with respect to any outstanding
        Option without the Participant’s consent.

      

      7.           Cancellation
        of Options.  The Compensation Committee may, with the concurrence
        of the affected Participant, cancel any Option granted under this
        Plan.  In the event of any such cancellation, the Compensation
        Committee may authorize the granting of new Options (which may or may not
        cover
        the same number of Shares that were the subject of, or have other terms of,
        any
        prior Option) in such manner, at such Exercise price and subject to the same
        terms, conditions and discretion as would have been applicable under this
        Plan
        had the cancelled Options not been granted. The Compensation Committee may
        terminate the plan at any time at its discretion however such termination
        shall
        not adversely affect the interest of the Participants who have already been
        granted Options.

      

      8.           Transferability
        of Shares.  There would be no restriction on transferability of
        the Shares, which may be allotted on conversion of Options exercised
        pursuant to this Plan. A Participant can transfer the shares after he has
        exercised his right to convert the Options into Shares and such Shares have
        been
        received by him.

      

      9.           Lock
        in Period.  There would be no Lock in Period in respect of Shares,
        which may be allotted on conversion of Options exercised pursuant to this
        Plan.

      

      10.         Reissue
        of Forfeited options.  The Compensation Committee will have the
        right to reissue the Options that have been forfeited/surrendered by a
        Participant under this Plan. The price for which such forfeited/surrendered
        shares may be issued, will be at the sole discretion of the Compensation
        Committee.

      

      11.         Withholding
        and tax liability.  If the Company is required to withhold any
        amount for tax purposes with respect to Options issued under this Plan, the
        Participant shall, no later than the date as of which an amount first becomes
        includible in the gross income of the Participant for applicable income tax
        purposes, pay to the Company or make arrangements satisfactory to the
        Compensation Committee regarding the payment of such taxes.  If so
        determined by the Compensation Committee and if not prohibited by applicable
        law, the minimum required withholding obligations may be settled with Shares,
        including Shares that are part of the award that gives rise to the withholding
        requirement.  The obligations of the Company under this Plan shall be
        conditional on such payment or arrangements and the Company shall, to
        the

      
        
          
          

        

        
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      extent
        permitted by law, have the right to deduct any such taxes from any payment
        of
        any kind otherwise due to the Participant or forfeit any Options so granted
        with
        respect thereto.

      

      In
        the event of any tax liability arising on account of the issue of Options
        and /
        or allotment of the shares to the Participant, the liability shall be that
        of
        the Participant alone. All tax liabilities arising on the sale of the Shares
        after Exercise would require to be handled by the Participant alone. In the
        event of any tax liability arising on account of this Plan, the Company shall
        have the right to recover the same from the Participant in any manner as
        the
        Company may deem fit.

      

      12.
        Policy:

      

      With
        respect to any matters that are not specifically provided for, the Compensation
        Committee shall have absolute discretion to decide such matters in the manner
        deemed fit by it in the best interest of the Participants and any such decision
        of the Compensation Committee shall be binding on all Participants.

      

      13.         Governing
        Law.  The Plan and all Options granted and actions taken
        thereunder shall be governed by and construed in accordance with the laws
        of
        India without giving effect to the conflicts of law rules thereof.

      

      14.         Fractional
        Shares.  The Company shall not be required to issue any fractional
        Shares pursuant to this Plan.  The Compensation Committee may provide
        for the elimination of fractions or for the settlement of fractions for
        cash.

      

      15.         Multiple
        Jurisdictions.  In order to facilitate the making of any grant
        under this Plan, the Compensation Committee may provide for such special
        terms
        for Options to Participants who are employed by the Company or any of its
        subsidiaries in any particular jurisdiction other than India, or who are
        nationals of any particular jurisdiction other than India, as the Compensation
        Committee may consider necessary or appropriate to accommodate differences
        in
        local law, tax policy or custom.  In addition, the Compensation
        Committee may approve such supplements to or restatements or alternative
        versions of this Plan as it may consider necessary or appropriate for such
        purposes, without thereby affecting the terms of this Plan as in effect for
        any
        other purpose, and the Company Secretary or other appropriate officer of
        the
        Company may certify any such document as having been approved and adopted
        in the
        same manner as this Plan.  No such special terms, supplements or
        restatements, however, shall include any provisions that are inconsistent
        with
        the terms of this Plan as then in effect unless this Plan could have been
        amended to eliminate such inconsistency without further approval by the
        shareholders of the Company.

      

      16.         Administration.

      

      The
        Compensation Committee shall, inter alia, formulate the detailed terms and
        conditions of the ESOP including;

      

      
        	
                 

              	
                (a)

              	
                the
                  quantum of option to be granted under an ADR Linked ESOP per Participant
                  and in aggregate.

              

      

      
        	
                 

              	
                (b)

              	
                the
                  conditions under which option vested in Participants may lapse
                  in case of
                  termination of employment for
                  misconduct;

              

      

      
        
          
          

        

        
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                (c)

              	
                the
                  exercise period within which the Participant should exercise the
                  option
                  and that option would lapse on failure to exercise the option within
                  the
                  exercise period;

              

      

      
        	
                 

              	
                (d)

              	
                the
                  specified time period within which the Participant shall exercise
                  the
                  vested options in the event of termination or resignation of an
                  Participant.

              

      

      
        	
                 

              	
                (e)

              	
                the
                  right of an Participant to exercise all the options vested in him
                  at one
                  time or at various points of time within the exercise
                  period;

              

      

      
        	
                 

              	
                (f)

              	
                the
                  procedure for making a fair and reasonable adjustment to the number
                  of
                  options and to the exercise price in case of corporate actions
                  such as
                  rights issues, bonus issues, merger, sale of division and others.
                  In this
                  regard following shall be taken into consideration by the Compensation
                  Committee:

              

      

      
        	
                 

              	
                (i)

              	
                the
                  number and the price of ESOP shall be adjusted in a manner such
                  that total
                  value of the ESOP remains the same after the corporate
                  action

              

      

      
        	
                 

              	
                (ii)

              	
                for
                  this purpose global best practices in this area including the procedures
                  followed by the derivative markets in India and abroad shall be
                  considered.

              

      

      
        	
                 

              	
                (iii)

              	
                the
                  vesting period and the life of the options shall be left unaltered
                  as far
                  as possible to protect the rights of the option
                  holders.

              

        	 	 	 

        	 	(g)	the
                grant, vest and exercise of option in case of Participants who are
                on long
                leave; and

        	 	(h) 	the
                procedure for cashless exercise of
                options.

      

       

      17.         Effective
        Date and Shareholder Approval. This Plan shall be effective immediately upon
        its approval by the requisite majority shareholders of the
        Company.  This Plan has been approved by the Compensation Committee of
        the Board at its Meeting held on 3rd October,
        2006 in
        terms of the authority vested in it by the Board and within the parameters
        approved by the Board at its Meeting held on 26th April,
        2006 and as
        approved by the Shareholders by passing a Special Resolution at the Extra
        Ordinary General Meeting held on 31st March,
        2006.

      

      18.         Term.  No
        Option shall be granted pursuant to this Plan on or after the tenth anniversary
        the date of shareholder approval.

      

      19.         Awards
        in Substitution for Awards Granted by Other Companies.  To the
        extent not otherwise provided in the Plan, Options may be granted under this
        Plan in substitution for awards held by Participants of a company who become
        Participants of the Company or of any of its subsidiaries as a result of
        the
        acquisition, merger or consolidation of the employer company by or with the
        Company or by or with a subsidiary of the Company.  The terms,
        provisions and benefits of the substitute awards so granted may vary from
        those
        set forth in or authorized by this Plan to such extent as the Compensation
        Committee at the time of the grant may deem appropriate to conform, in whole
        or
        in part, to the terms, provisions and benefits of awards in substitution
        for
        which they are granted or to the terms and provisions of the agreements entered
        into by the Company or its subsidiary at the time of or in connection with
        the
        acquisition, merger or consolidation of the employer company by or with the
        Company or by or with its subsidiary.

      

      20.         Not
        a Term of Employment.  This Plan shall not be construed as
        conferring upon the Participant any right with respect to employment (including,
        without limitation, continuation

      
        
          
          

        

        
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      of
        employment) by the Company nor shall it interfere in any way with the Company’s
        right to terminate employment at any time, with or without cause. The terms
        of
        employment of a Participant shall not be affected by the execution of this
        plan.  The Options granted under this Plan shall not form a part of
        the terms of employment of an Participant or entitle him/her to take into
        account the Options granted under the Plan in calculating any compensation
        or
        damages on the termination of his/her employment for any reason.

      

      21.         Terms
        and conditions. There would be no variation or amendment in the terms and
        conditions of this Plan after it comes in to effect, unless in compliance
        with
        applicable laws.ex10-2.htm

    BETHEL
      BANCORP

    

    1989
      STOCK OPTION PLAN

    

    I.     THE
      PLAN

    

         1.   Purpose.
      The purpose of this Plan is to provide a means whereby Bethel Bancorp (the
      "Company") may, through the grant of stock options to Key Employees, as defined
      below, and Directors, as defined below, attract and retain persons of ability
      as
      employees and Directors and motivate such persons to exert their best efforts
      on
      behalf of the Company or any present or future Subsidiary thereof. As used
      herein the term "Subsidiary" shall mean any corporation which at the time an
      option is granted under this Plan qualifies as a subsidiary of the Company
      under
      the definition
      of "subsidiary corporation" contained in Section 425 (f) of the Internal
      Revenue Code of 1986 (the "Code"), as amended from time to time, or any similar
      provision hereafter enacted, except that such term shall not include any
      corporation which is classified as a foreign corporation pursuant to Section
      7701 of the Code. The term "Key Employees" means those employees (including
      officers and directors who are also employees) of the Company or of any
      Subsidiary, who, in the judgment of the Committee defined in Section 2 below,
      are considered especially important to the future of the Company. The term
      "Directors" means those members of the Board of Directors of the Company (the
      "Board") or of any Subsidiary, who are not Key Employees and, who, in the
      judgment of the Committee, are considered especially important to the future
      of
      the Company. The term "stock options", means options to purchase Common Stock,
      $1.00 par value, of the Company ("Stock") and in the case of stock options
      granted pursuant to Article II hereof, which at the time such options are
      granted qualify as incentive stock options within the meaning of Section 422A
      of
      the Code.

    

         2.   Administration
      of the Plan. The Plan shall be administered by the Stock Option Committee
      (the "Committee") of the Board. The Committee shall consist of at least three
      members of the Board and serve at the Board's pleasure. All decisions and
      selections by the Committee pursuant to the provisions of the Plan shall be
      made
      by a majority of its members. A member of the Committee who is eligible to
      receive a stock option under the Plan shall not vote on any question relating
      specifically to himself. Any decision reduced to writing and signed by all
      of
      the members shall be fully effective as if it had been unanimously made at
      a
      duly held meeting of the Committee.

    

    Except
      as
      otherwise expressly reserved to the Board in this Plan, the Committee may
      interpret the Plan, describe, amend and rescind any rules and regulations
      necessary or appropriate for the administration of the Plan or for the continued
      qualification of any stock options granted to Key Employees and make such other
      determinations and take such other actions as it deems necessary or advisable.
      Without limiting the generality of the foregoing, the Committee may, in its
      discretion, treat all or any portion of any period during which a Key Employee
      is on military leave or on an approved leave of absence from the Company or
      a
      Subsidiary as a period of employment by the Company or such Subsidiary, as
      the
      case may be, and not as an interruption of employment, for purposes of
      maintaining the Key Employee's continuous status as an employee and accrual
      of
      rights under any option granted hereunder. Any interpretation, determination
      or
      other action made or taken by the Committee shall be final, binding and
      conclusive.

    

         3.   Final
      Authority with Respect to the Plan. Notwithstanding any other provisions
      hereof to the contrary, final authority as to the administration of the Plan
      rests in the full Board. It is a requirement of the Plan that the Committee
      submit their interpretations, determinations and actions to the full Board
      for
      final approval. A Board member who is eligible to receive a stock option under
      the Plan may not vote on any question relating specifically to
      himself.

    

    II.   INCENTIVE
      STOCK OPTIONS

    

         1.   Incentive
      Stock Options. Subject to the provisions of the Plan, the Committee may
      grant stock options from time to time which qualify as incentive stock options
      within the meaning of Section 422A of the Code ("Incentive Stock Options")
      in
      accordance with provisions of this Article II.

    

         2.   Shares
      Subject to Incentive Stock Options. Incentive Stock Options may be granted
      by the Company from time to time to Key Employees to purchase an aggregate
      of
      33,000 shares of Stock. The Company shall reserve said number of shares for
      Incentive Stock Options granted under the Plan subject to adjustment as provided
      in Section 1 of Article V. The shares issued upon the exercise of Incentive
      Stock Options granted under the Plan may be authorized and unissued shares
      or
      shares held by the Company in its treasury. If any Incentive Stock Options
      granted hereunder should expire or become unexercisable for any reason without
      having been exercised in full, the unpurchased shares which were subject to
      an
      Incentive Stock Option shall, unless the Plan shall have been terminated, be
      available for the grant of other Incentive Stock Options under the
      Plan.

    

         3.   Grant
      of Incentive Stock Options to Key Employees. Subject to the provisions of
      the Plan and in particular this Article II, the Committee shall (i) determine
      and designate from time to time those Key Employees to whom Incentive Stock
      Options are to be granted and the number of shares of Stock to be optioned
      to
      each such employee and (ii) determine the time or times when and the manner
      in
      which each Incentive Stock option shall be exercisable and the duration of
      the
      exercise period. Notwithstanding the above (i) no option shall be granted
      pursuant to this Section 3 after the expiration of ten years from the effective
      date of the Plan as defined in Section 5 of Article V hereof and (ii)
      the

    aggregate
      fair market value (determined as of the date the Incentive Stock Option is
      granted) of Stock which is first exercisable by any employee during any calendar
      year under all stock option plans of the Company and its Subsidiaries shall
      not
      exceed $100,000. Incentive Stock Options need not be identical and in fixing
      the
      terms of any Incentive Stock Option, the Committee may take into account such
      individual factors bearing on the value of an employee as it considers
      appropriate.

    

        
      No Director as defined in Section 1 of Article I shall be entitled to receive
      any Incentive Stock Option under this Article II.

    

         4.   Terms
      and Conditions of Incentive Stock Options. Each Incentive Stock Option
      granted under the Plan to a Key Employee pursuant to Section 3 hereof shall
      be
      evidenced by an agreement with the optionee (the "Incentive Stock Option
      Agreement") in a form approved by the Committee. Each Incentive Stock Option
      and
      the Incentive Stock Option Agreement shall be subject to the following express
      terms and conditions and to such other terms and conditions as the Committee
      may
      deem appropriate.

    

            (a)   Incentive
      Stock Option Period. Subject to the terms of Section 3 hereof, each
      Incentive Stock Option Agreement shall specify the period for which the
      Incentive Stock option or any portion thereof is granted and exercisable, as
      determined by the Committee, and shall provide that the Incentive Stock Option
      shall expire at the end of such period. In no event shall any Incentive Stock
      Option be exercisable after the expiration of 10 years from the date of grant
      unless the Incentive Stock Option price is determine pursuant to Section 4(c)(2)
      hereof in which event the Incentive Stock. Option shall not be exercisable
      after
      the expiration of 5 years from the date of grant.

    

            (b)   Date
      of Grant. The date of grant of an Incentive Stock Option to a Key Employee
      under the Plan shall, for all purposes, be the date on which the Committee
      makes
      the determination of granting such Incentive Stock Option. Notice of the
      determination shall be given to each Key Employee to whom an Incentive Stock
      Option is so granted within a reasonable time after the date of such
      grant.

    

            (c)   Incentive
      Stock Option Price.

     

         
                (1)   The
      option price per share of Stock shall be determined by the Committee at the
      time
      any Incentive Stock Option is granted and except as provided in subsection
      (2)
      below shall not be less than the fair market value of one share of Stock on
      the
      date the Incentive Stock Option is granted. The fair market value of a share
      of
      Stock on the date of grant shall be the mean between the highest and lowest
      quoted selling prices on such date in the over-the-counter market, as reported
      by any market makers in the Stock.

    

          
               (2)   If an
      Incentive Stock Option is granted to a Key Employee then owning Stock possessing
      more than 10% of the total combined voting power of all classes of stock of
      the
      Company or any Subsidiary taking into account the attribution rules of Section
      425(d) of the Code, then the Committee shall set the Incentive Stock Option
      price per share of Stock at 110% of the Incentive Stock Option price determined
      pursuant to subsection (1) hereof.

    

            (d)   Exercise
      of Incentive Stock Option. The Incentive Stock Option Agreement shall
      provide the amount of the aggregate fair market value (determined as of the
      date
      the Incentive Stock Option is granted) of the Stock which may be exercised
      for
      the first time during any calendar year of the option period and may provide
      that after the date Stock is first exercisable, the option may be exercised
      in
      whole or in part at any time or times during the remainder of option
      period.

    

            (e)
      Exercise During Employment or Following Retirement, Disability or Death.
      Unless otherwise provided in the terms of an Incentive Stock Option Agreement,
      an Incentive Stock option may he exercised by an optionee only while he is
      an
      employee of the Company or a Subsidiary and has maintained continuous status
      as
      an employee since the date of the grant of the Incentive Stock Option, except
      if
      his continuous employment is terminated by reason of the employee's voluntary
      termination of employment, disability or death. If the continuous employment
      of
      an optionee is terminated as a result of the employee's voluntary termination
      of
      employment, he may, hut only within a period of 90 days beginning the day
      following the date of such termination of employment (and no later than the
      date
      the Incentive Stock Option would otherwise expire), exercise his option to
      the
      extent that he was entitled to exercise it at the date of such termination.
      If
      the continuous employment of an optionee is terminated as a result of the
      optionee's disability, he may, but only within the one year period from the
      date
      of such termination of employment (and no later than the date the Incentive
      Stock Option would otherwise expire), exercise his option to the extent he
      was
      entitled to exercise it at the date of such termination. If the continuous
      employment of an optionee is terminated by death, then to the extent that the
      optionee would have been entitled to exercise the Incentive Stock option
      immediately prior to his death, such Incentive Stock Option of the deceased
      optionee may be exercised within 90 days from the date of his death (but no
      later than the date on which such Incentive Stock option would otherwise expire)
      by the person or persons (including his estate) to whom his rights under such
      Incentive Stock option shall have passed by will or by the laws of descent
      and
      distribution. Termination of continuous employment for any other reason shall
      result in cancellation of the Incentive Stock Option.

    

         The
      terms "continuous employment" and "continuous status as an employee" mean the
      absence of any interruption or termination of employment with the Company or
      with any present or future Subsidiary. Employment shall not be considered
      interrupted in the case of transfers between the Company and any Subsidiary
      or
      between Subsidiaries, nor in the case of any military leave or any approved
      leave of absence which the Committee, in its discretion, treats as a period
      of
      employment.

    

            (f)   Non-transferability.
      No Incentive Stock Option granted to a Key Employee under the Plan shall be
      transferable other than by will or by the laws of descent and distribution.
      During the lifetime of the optionee, an Incentive Stock option shall be
      exercisable only by him.

     

            (g)   Code
      Requirements. Each Incentive Stock Option Agreement shall contain such terms
      and provisions as the Committee may determine to be necessary or desirable
      in
      order to qualify such Incentive Stock Option as an incentive stock option within
      the meaning of Section 422A of the Code.

    

            (h)   No
      Rights as Shareholder. No optionee shall have any rights as a shareholder
      with respect to any shares of Stock subject to his Incentive Stock option prior
      to the date of issuance to him of a certificate or certificates for such
      shares.

    

            (i)   No
      Rights to Continued Employment. The Plan and any Incentive Stock Option
      granted pursuant to Section 3 of this Article II shall not confer upon any
      Key
      Employee any right with respect to continuance of employment by the Company
      or
      any Subsidiary nor shall they interfere in any way with the right of the Company
      or any subsidiary employing an optionee to terminate his employment at any
      time.

    

         5.   Disposition
      of Shares by Key Employees No share of Stock acquired as a result of the
      exercise of an Incentive Stock Option granted to a Key Employee under the Plan
      shall be transferable other than by will or by the laws of descent and
      distribution before the latter of the expiration of the two year period
      beginning on the date such Incentive Stock Option was granted or the expiration
      of the one year period beginning on the date of the transfer of such share
      pursuant to such exercise.

    

    III.
      NONQUALIFIED STOCK OPTIONS

    

         1.   Nonqualified
      Stock Options. Subject to the provisions of the Plan, the Committee may
      grant other stock options ("Nonqualified Stock options") from time to time
      in
      accordance with the provisions of this Article III.

    

         2.   Share
      Subject to Nonqualified Stock Options. Nonqualified Stock Options may be
      granted by the Company from time to time to Key Employees and Directors to
      purchase an aggregate of 12,000 shares of Stock. The Company shall reserve
      said
      number of shares for Nonqualified Stock Options granted under the Plan subject
      to adjustment as provided in Section 1 of Article V. The shares issued upon
      the
      exercise of Nonqualified Stock Options granted under the Plan may be authorized
      and unissued shares or shares held by the Company in its treasury. If any
      Nonqualified Stock Options granted hereunder should expire or become
      unexercisable for any reason without having been exercised in full, the
      unpurchased shares which were subject to a Nonqualified Stock Option shall,
      unless the Plan shall terminate, be available for the grant of other
      Nonqualified Stock Options under the Plan.

    

         3.   Grant
      of Nonqualified Stock Options to Key Employees and Directors. Subject to the
      provisions of the Plan and in particular this Article III, the Committee shall
      (i) determine and designate from time to time those Key Employees and Directors
      to whom Nonqualified Stock Options are to be granted and the number of shares
      of
      Stock to be optioned to each such person and (ii) determine the time or times
      and the manner in which each nonqualified Stock option shall be exercisable
      and
      the duration of the exercise period. Nonqualified Stock Options need not be
      identical and in fixing the terms of any Incentive Stock Option, the Committee
      may take into account such individual factors bearing on the value of the
      employee or Director as it considers appropriate.

    

         4.   Terms
      and Conditions of Nonqualified Stock Options. Each Nonqualified Stock Option
      granted under the Plan to a Key Employee or Director pursuant to Section 3
      hereof shall be evidenced by an agreement with the optionee (the "Nonqualified
      Stock Option Agreement") in a form approved by the Committee. Each Nonqualified
      Stock Option and the Nonqualified Stock Option Agreement shall be subject to
      the
      following express terms and conditions and to such other terms and conditions
      as
      the Committee may deem appropriate.

    

            (a)   Nonqualified
      Stock Option Period. Each Nonqualified Stock Option Agreement shall specify
      the period for which the Nonqualified Stock Option thereunder is granted and
      exercisable, as determined by the Committee, and shall provide that the option
      shall expire at the end of such period.

    

            (b)   Date
      of Grant. The date of grant of a Nonqualified Stock Option to a Key Employee
      or Director under the Plan shall, for all purposes, be the date on which the
      Committee makes the determination of granting such Nonqualified Stock Option.
      Notice of such determination shall be given to each Key Employee or Director
      to
      whom an option is so granted within a reasonable period of time after the date
      of such grant.

    

            (c)   Nonqualified
      Stock Option Price

    

                     (1)   The
      option price per share of Stock shall be determined by the Committee at the
      time
      any Nonqualified Stock option is granted and except as provided in Subsection
      (2) below shall not be less than the fair market value of one share of Stock
      on
      the date the Nonqualified Stock option is granted. The fair market value of
      a
      share of Stock on the date of grant shall be the mean between the highest and
      lowest quoted selling prices on such date in the over-the-counter market, as
      reported by any market makers in the Stock.

    

                     (2)   If
      a Nonqualified Stock Option is granted to a Key Employee or Director then owning
      Stock possessing more than 10% of the total combined voting power of all classes
      of Stock of the Company or any Subsidiary taking into account the attribution
      rules of Section 425(d) of the Code, then the Committee shall set the option
      price per share of Stock at 110% of the option price determined pursuant to
      subsection (1) hereof.

    

            (d)   Exercise
      of Nonqualified Stock Option The Nonqualified Stock option-Agreement may
      provide that the option may be exercised in whole or in part at any time or
      times during the option period.

    

            (e)   Exercise
      During Employment or Board Tenure. Unless otherwise provided under the terms
      of a Nonqualified Stock Option Agreement, a Nonqualified Stock option granted
      to
      a Key Employee or Director may be exercised by an optionee only while he is
      an
      employee or Director of the Company or a Subsidiary and has maintained
      continuous status as an employee or Director since the date of the grant of
      the
      Nonqualified Stock Option, except if his continuous employment or directorship
      is terminated by reason of the optionee's voluntary termination of employment
      or
      directorship, disability or death. If the continuous employment or directorship
      of an optionee is terminated as a result of the optionee's voluntary
      termination, he may, but only within a period of 90 days beginning the date
      following the date of such termination of employment or directorship (and no
      later than the date the Nonqualified Stock Option would otherwise expire),
      exercise his option to the extent that he was entitled to exercise it at the
      date of such termination. If the continuous employment or directorship of an
      optionee is terminated as a result of optionee's disability, he may, but only
      within the one year period from the date of such termination of employment
      or
      directorship (and no later than the date the Incentive Stock Option would
      otherwise expire), exercise his option to the extent he was entitled to exercise
      it at the date of such termination. If the continuous employment or directorship
      of an optionee is terminated by death, then to the extent that the optionee
      would have been entitled to exercise the Nonqualified Stock option immediately
      prior to his death, such Nonqualified Stock option of a deceased optionee may
      be
      exercised within 90 days from the date of his death (but no later than the
      date
      on which such Nonqualified Stock Option would otherwise expire) by the person
      or
      persons (including his estate) to whom his rights under such NonQualified Stock
      option shall have passed by will or by the laws of descent and distribution.
      Termination of continuous employment or directorship for any other reason shall
      result in cancellation of the Nonqualified Stock option.

    

              The
      terms "continuous employment" and "continuous status as an employee" mean the
      absence of any interruption or termination of employment with the Company or
      with any present or future Subsidiary. Employment shall not be considered
      interrupted in the case of transfers between the Company and any Subsidiary
      or
      between Subsidiaries, nor in the case of any military leave or any approved
      leave of absence which the committee, in its discretion, treats as a period
      of
      employment.

    

            The
      terms "continuous directorship" and "continuous status as a Director" mean
      the
      absence of any interruption or termination as a Director of the Company or
      with
      any present or future Subsidiary. Directorship shall not be considered
      interrupted in the case of transfers between the Company and any Subsidiary
      or
      between Subsidiaries.

    

            (f)   Non-transferability.
      No Nonqualified Stock Option granted to a Key Employee or Director under the
      Plan shall be transferrable other than by will or by the laws of descent and
      distribution. During the lifetime of the optionee, a Nonqualified Stock Option
      shall be exercisable only by him.

    

            (g)   No
      Rights as Shareholder. No optionee shall have any rights as a shareholder
      with respect to any shares of Stock subject to his Nonqualified Stock Option
      prior to the date of issuance to him of a certificate or certificates for such
      shares.

    

            (h)   No
      Rights to Continued Employment or Directorship. The Plan and any
      Nonqualified Stock Option granted pursuant to Section 3 of this Article III
      shall not confer upon any Key Employee or Director any right with respect to
      continuance of employment by or as a Director of the Company or any subsidiary
      nor shall they interfere in any way with the right of any party to terminate
      his
      employment or directorship at any time.

    

         5.   Disposition
      of Shares. No share of Stock acquired as a result of the exercise of a
      Nonqualified Stock Option granted under the Plan shall be subject to any
      restrictions on transferability or otherwise.

    

    IV.
      EXERCISE AND PURCHASE PROVISIONS

    

         1.   Limitation
      on Exercise of options. Each option granted under the Plan shall provide
      that the option may not he exercised in whole or in part by the optionee for
      less than 100 shares of Stock unless only less than 100 shares of Stock remain
      subject to the option. In addition, an option may not be exercised for a
      fractional share.

    

         2.   Payment
      of-Purchase Price upon Exercise of Option. Each option granted under the
      Plan shall provide that the purchase price of the shares as to which an option
      is exercised will be paid to the Company at the time of exercise, either in
      cash
      or in Stock already owned by the optionee having a total fair market value,
      as
      determined by the Committee, equal to the purchase price, or a combination
      of
      cash and Stock having a total fair market value, as so determined, equal to
      the
      purchase price.

    

         3.   Procedure
      for Exercising Options. Each option granted under the Plan shall be
      exercisable at such times and under such conditions as shall be permissible
      under the terms of the Plan and the Incentive Stock Option Agreement or the
      Nonqualified Stock Option Agreement, as the case may be.

    

         An
      option may be exercised, subject to the applicable provisions of this Plan
      relative to its termination and limitations on its exercise, from time to time
      only by (i) written notice of intent to exercise the option with respect to
      a
      specified number of shares and (ii) payment to the Company (contemporaneously
      with delivery of each such notice) of the option price as provided in Section
      1
      hereof. Each such notice and payment shall be delivered, or mailed by prepaid
      registered or certified mail, addressed to the Treasurer of the Company at
      its
      executive offices.

    

    V.
      MISCELLANEOUS PROVISIONS

    

         1.   Adjustments
      in Event of Change in Common Stock. In the event of any change in the Common
      Stock of the Company by reason of any stock dividend, recapitalization,
      reorganization, merger, consolidation, split-up, combination, or exchange of
      shares, or rights offering to purchase Common Stock at a price substantially
      below fair market value, or of any similar change affecting the Stock, the
      number and kind of shares which thereafter may be optioned
      and sold under the Plan pursuant to Articles II and III hereof and the number
      and kind of shares subject to option in outstanding option agreements and the
      purchase price per share thereof shall he appropriately adjusted consistent
      with
      such change in such manner as the Committee may deem equitable to prevent
      substantial dilution or enlargement of the rights granted to, or available
      for,
      participants in the Plan.

    

         2.   Compliance
      With Other Laws and Regulations The Plan, the grant and exercise of options
      thereunder and the obligations of the Company to sell and deliver shares under
      such options, shall be subject to all applicable federal and state laws, rules
      and regulations and to such approvals by any government or regulatory agency
      as
      may he required. The Company shall not be required to issue or deliver any
      certificates for shares of Stock prior to the completion of any registration
      or
      qualification of such shares under any federal or state law, or any ruling
      or
      regulation of any government body which the Company shall, in its sole
      discretion, determine to be necessary or advisable.

    

         3.   Modification
      of Options. At any time and from time to time the Board of Directors of the
      Company may authorize the modification of any outstanding option, provided
      no
      such modification, extension or renewal shall confer on the holder of said
      option any right or benefit which could not he conferred on him by the grant
      of
      a new option at such time or impair the option without the consent of the holder
      of the option.

    

         4.   Amendment
      and Termination of the Plan. The Board of Directors of the Company may
      alter, suspend or discontinue the Plan except that no action of the Board may
      increase(other than as provided in Section 1 hereof) the maximum number of
      shares permitted to be optioned under the Plan, reduce the minimum option price
      provided for in Section 4(c) of Article II or extend the period within which
      options may he exercised, unless such action of the Board shall be subject
      to
      approval or ratification by the shareholders of the Company.

    

         5.   Effective
      Date of the Plan. The effective date of the Plan shall be the date of its
      adoption on by the Board of Directors of the Company, but such adoption shall
      be
      subject to approval and ratification of a majority of the shareholders of the
      Company entitled to vote. Notwithstanding any provision hereof to the contrary,
      this Plan shall not take effect unless the Company purchases all of the issued
      and outstanding stock of Bethel Savings Bank FSB.

    

         6.   Interpretation
      of Article II Options. The terms of this Plan which relate to the grant of
      an Incentive Stock option to a Key Employee are subject to all present and
      future rules and regulations of the Secretary of the Treasury or his delegate
      regarding the qualifications of incentive stock options under Section 422A
      of
      the Code. If any such provision of the Plan conflicts with any such rule or
      regulation, then the provision of the Plan shall be void and of no force and
      effect.

    

    

    

    AMENDMENT
      ONE TO BETHEL BANCORP 1989 STOCK OPTION PLAN

    

           Amendment
      One made by Bethel Bancorp (the "Company") to the Bethel Bancorp 1989 Stock
      Option Plan (the "Plan").

     

           1.   Section
      5 of Article II shall be amended by deleting Section 5 of Article II in its
      entirety and substituting therefor the following Section 5 of Article
      II:

    

           "5.   Disposition
      of Shares by Key Employees. With respect to shares of Stock acquired as a
      result of the exercise of an Incentive Stock Option, any disposition of such
      shares other than by will or by the laws of descent and distribution before
      the
      later of the expiration of the two-year period beginning on the date such
      Incentive Stock Option was granted or the expiration of the one-year period
      beginning on the date of the transfer of such share pursuant to such exercise,
      will not be prohibited by the Plan, but may disqualify the disposition from
      receiving favorable tax treatment under Section 421(a) of the
      Code."

     

           2.   Section
      6 of Article V shall be amended by deleting Section 6 of Article V in its
      entirety and substituting therefor the following Section 6 of Article
      V:

           "6.   Interpretation
      of Incentive Stock Options. The terms of this Plan which relate to the grant
      of Incentive Stock Options to Key Employees are intended to comply with rules
      and regulations regarding the qualification of Incentive Stock Options under
      Section 422 of the Code, and the Plan shall be interpreted and construed
      accordingly. Except with respect to certain disqualifying dispositions of Stock
      acquired as a result of the exercise of an Incentive Stock Option, which are
      not
      prohibited by the Plan, if a provision of the Plan conflicts with any such
      rule
      or regulation, then the provision of the Plan shall be void and of no force
      and
      effect."

    

           3.   Section
      4(c) of Article III of the Plan shall be amended by deleting Section 4(c) of
      Article III in its entirety and substituting therefor the following Section
      4(c)
      of Article III:

    

           "(c)   Non-qualified
      Stock Option Price. The option price per share of Stock shall be determined
      by the Committee at the time any Non-qualified Stock Option is granted and
      shall
      not be less than the fair market value of one share of Stock on the date the
      Non-qualified Stock Option is granted."

    

           4.   Amendment
      One shall be effective as of the date hereof.

    

           IN
      WITNESS WHEREOF, the Company has caused this Amendment One to be executed by
      its
      duly authorized President as of the ____day of________,1994.

    

                                                                                                               BETHEL
      BANCORP

     

     

                                                           By:
/s/ James
      D. Delamater

                                                                                                
James
      D.
      Delamater,President

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