Document:

exv10w3

	 	 	 	 	 

Exhibit 10.3

Stock Option

Granted by

EVANS BANCORP, INC.

under the

EVANS BANCORP, INC. 2009 LONG TERM EQUITY INCENTIVE PLAN

     This option (“Option”) is and shall be subject in every respect to the provisions of 2009
Long-Term Equity Incentive Plan (as may be amended from time to time) (the “Plan”), of Evans
Bancorp, Inc. (the “Company”), which is incorporated herein by reference and made a part hereof,
subject to the provisions of this Agreement. A copy of the Plan has been provided to each person
granted an Option pursuant to the Plan. The holder of this Option (the “Participant”) hereby
accepts this Option, subject to all the terms and provisions of the Plan and this Agreement, and
agrees that all decisions under and interpretations of the Plan and this Agreement by the
Compensation Committee (“Committee”) or the Board shall be final, binding and conclusive upon the
Participant and the Participant’s heirs, legal representatives, successors and permitted assigns.
Except where the context otherwise requires, the term “Company” shall include the parent and all
present and future subsidiaries of the Company as defined in Section 424(e) and 424(f) of the
Internal Revenue Code of 1986, as amended or replaced from time to time (the “Code”). Capitalized
terms used herein but not defined shall have the same meaning as in the Plan.

	 	1.	 	Name of Participant:                
                      
                      
                              
                    
                    
                     
	 
	 	2.	 	Date of Grant:                                                                        
                      
                      
                      
                       
	 
	 	3.	 	Total number of shares of Company common stock, $0.50 par value (“Common Stock”) that
may be acquired pursuant to this Option:                
                      
                      
                    
                     
	 
	 
	 	 	 	(subject to adjustment pursuant to Section 0 below).

	 	•	 	Number of Incentive Stock Options:               
                      
                      
                      
                      
           
	 
	 	•	 	Number of Non-qualified Options:                 
                      
                     
                    
                 
                        

	 	4.	 	Exercise price per share:                 
                      
                     
                    
                     

(subject to adjustment pursuant to Section 0 below)
	 
	 	5.	 	Expiration Date of Option:                
                      
                      
                    
                 
                                            
	 
	 	6.	 	Vesting Schedule. Except as otherwise provided in this Agreement, this Option becomes
first exercisable, subject to the Option’s expiration date, on the first anniversary of the
date of grant (i.e.,                     ).

This Option may not be exercised at any time on or after the Option’s expiration date. Vesting
will automatically accelerate in the event of the Participant’s death, Disability, Retirement or
Involuntary Termination following a Change in Control.

7. Exercise Procedure.

	 	7.1	 	Delivery of Notice of Exercise. This Option shall be exercised in whole or
in part by the Participant’s delivery to the Company of written notice (the “Notice of
Exercise” attached hereto as Exhibit A) setting forth the number of shares with
respect to which this Option is to be exercised, together with payment by cash or
other means acceptable to the Committee, including:

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	 	(i)	 	by tendering, either actually or by
attestation, shares of Common Stock valued at Fair Market Value (as
defined in Section 7.2 hereof) as of the day of exercise;
	 
	 	(ii)	 	by irrevocably authorizing a third party,
acceptable to the Committee, to sell shares of Common Stock (or a
sufficient portion of the shares) acquired upon exercise of the Option
and to remit to the Company a sufficient portion of the sale proceeds
to pay the entire exercise price and any tax withholding resulting from
such exercise;
	 
	 	(iii)	 	by personal, certified or cashier’s check, or
	 
	 	(iv)	 	by other property deemed acceptable by the
Committee; or
	 
	 	(v)	 	by any combination thereof.

	 	7.2	 	“Fair Market Value” means, with respect to a share of Common Stock on a
specified date:

	 	(i)	 	the final reported sales price on the date in question (or if
there is no reported sale on such date, on the last preceding date on which any
reported sale occurred) as reported in the principal consolidated reporting
system with respect to securities listed or admitted to trading on the
principal United States securities exchange on which the shares of Common Stock
are listed or admitted to trading, as of the close of the market in New York
City and without regard to after-hours trading activity; or
	 
	 	(ii)	 	if the shares of Common Stock are not listed or admitted to
trading on any such exchange, the closing bid quotation with respect to a share
of Common Stock on such date, as of the close of the market in New York City
and without regard to after-hours trading activity, or, if no such quotation is
provided, on another similar system, selected by the Committee, then in use; or
	 
	 	(iii)	 	if (i) and (ii) are not applicable, the Fair Market Value of a
share of Common Stock as the Committee may determine in good faith and in
accordance with Code Section 422.

	8.	 	Delivery of Shares.

	 	8.1	 	Delivery of Shares. Delivery of shares of Common Stock upon the exercise of
this Option shall be subject to the following:

	 	(i)	 	Delivery of shares of Common Stock shall comply with all
applicable laws (including, the requirements of the Securities Act), and the
applicable requirements of any securities exchange or similar entity.
	 
	 	(ii)	 	The issuance of shares of Common Stock pursuant to the exercise
of this Option may be effected on a non-certificated basis, to the extent not
prohibited by applicable law or the applicable rules of any stock exchange.

	9.	 	Change in Control.

	 	9.1	 	In the event of an Involuntary Termination of Employment following a Change in
Control, all Options held by the Participant will become fully exercisable, subject to
the expiration provisions otherwise applicable to the Option.
	 
	 	9.2	 	A “Change in Control” shall be deemed to have occurred as provided in Section
5.2 of the Plan.

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	10.	 	Adjustment Provisions.

	 	10.1	 	This Option, including the number of shares subject to the
Option and the exercise price, shall be adjusted upon the occurrence of the
events specified in, and in accordance with the provisions of, Section 4.4 of
the Plan.

	11.	 	Termination of Option and Accelerated Vesting.

	 	11.1	 	This Option shall terminate upon the Option’s expiration date, or earlier as
follows:

	 	(i)	 	Death. This Option shall vest and become
exercisable in full in the event of the Participant’s termination of
employment by reason of the Participant’s death while this Option is
unexercised. This Option may thereafter be exercised by the legal
representative or legatee of the Participant for a period of one year
from the date of death, subject to termination on the expiration date
of this Option, if earlier.
	 
	 	(ii)	 	Disability. This Option shall vest and become
exercisable in full in the event of the Participant’s termination of
employment by reason of Disability while this Option is unexercised.
This Option may thereafter be exercised for a period of one year from
the date of such termination of Service by reason of Disability, subject
to termination on the Option’s expiration date, if earlier. The
Committee shall have sole authority and discretion to determine whether
the Participant’s employment has been terminated by reason of
Disability.
	 
	 	(iii)	 	Retirement. If the Participant’s employment terminates by reason of
the Participant’s Retirement while this Option is unexercised, this Option
shall vest and become exercisable in full, and may thereafter be exercised
for a period of one year from the date of such termination, subject to
termination on the Option’s expiration date, if earlier. For purposes of
this Award, “Retirement” shall mean termination of Service after attaining
age 70.
	 
	 	 	 	(iv) Termination for Cause. If the Participant’s employment has been
terminated for Cause, this Option shall immediately terminate and be of no
further force and effect. The Board of Directors shall have sole authority
and discretion to determine whether the Participant’s employment has been
terminated for Cause.
	 
	 	 	 	(v) Other Termination. If the Participant’s employment terminates for any
reason other than death, Disability, Retirement or for Cause, this Option
may thereafter be exercised, to the extent it was exercisable at the time of
such termination, for a period of three months following termination,
subject to termination on the Option’s expiration date, if earlier.
	 
	 	(vi)	 	Incentive Option Treatment. Options granted to non-employee directors
shall not be eligible for treatment as an incentive stock option.

	12.	 	Miscellaneous.

	 	12.1	 	No Option shall confer upon the Participant thereof any rights
as a stockholder of the Company prior to the date on which the individual
fulfills all conditions for receipt of such rights. This Agreement may not be
amended or otherwise modified unless evidenced in writing and signed by the
Company and the Participant.
	 
	 	12.2	 	Except as otherwise provided by the Committee, Options under
the Plan are not transferable other than by will or by the laws of descent and
distribution or pursuant to a qualified domestic relations order. The
Committee shall have the discretion to permit the

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	 	 	 	transfer of Options under the Plan; provided, however, that such transfers
shall be limited to Immediate Family Members of Participants, trusts and
partnerships established for the primary benefit of such family members or
to charitable organizations, and; provided, further, that such transfers are
not made for consideration to the Participant.
	 
	 	12.3	 	This Option shall be governed by and construed in accordance
with the laws of the State of New York, without regard to its principles of
conflicts of laws.
	 
	 	12.4	 	This Option is subject to all laws, regulations and orders of
any governmental authority which may be applicable thereto and, notwithstanding
any of the provisions hereof, the Participant agrees that he will not exercise
the Option granted hereby nor will the Company be obligated to issue any shares
of stock hereunder if the exercise thereof or the issuance of such shares, as
the case may be, would constitute a violation by the Participant or the Company
of any such law, regulation or order or any provision thereof.
	 
	 	12.5	 	The granting of this Option does not confer upon the
Participant any right to be retained in the employ of the Company or any
subsidiary.

     IN WITNESS WHEREOF, the Company has caused this instrument to be executed in its name and on
its behalf as of the date of grant of this Option set forth above.

	 	 	 	 	 
	 	EVANS BANCORP, INC.

 	 
	 	By:  	 	 
	 	 	Chairman, Compensation Committee 	 
	 	 	 	 
	 

PARTICIPANT’S ACCEPTANCE

     The undersigned hereby accepts the foregoing option and agrees to the terms and conditions
hereof, including the terms and provisions of the 2009 Long-Term Equity Incentive Plan. The
undersigned hereby acknowledges receipt of a copy of the Company’s 2009 Long-Term Equity Incentive
Plan.

	 	 	 	 	 
	 	Participant

 	 
	 	  	 	 
	 	 	 	 
	 	 	 	 

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EXHIBIT A

NOTICE OF EXERCISE OF STOCK OPTIONS

(BY EMPLOYEES)

     I hereby exercise the stock option (the “Option”) granted to me by Evans Bancorp, Inc. (the
“Company”) or its affiliate, subject to all the terms and provisions set forth in the Stock Option
Agreement (the “Agreement”) and the Evans Bancorp, Inc. 2009 Long-Term Equity Incentive Plan (the
“Plan”) referred to therein, and notify you of my desire to purchase                                          shares of
common stock of the Company (“Common Stock”) for a purchase price of $                     per share.

     Enclosed please find (check one):

	 	——	 	Cash, personal, certified or cashier’s check in the sum of $___, in full
payment of the purchase price.
	 
	 	——	 	Stock of the Company with a fair market value of
$___ in full payment of the
purchase price.*
	 
	 	——	 	My check in the sum of $___and stock of the Company with a fair
market value of $___, in full payment of the purchase price.*
	 
	 	——	 	Please sell ___ Shares from my Option Shares through a broker in
full/partial payment of the purchase price.

     I understand that after this exercise,                      shares of Common Stock remain subject to
the Option, subject to all terms and provisions set forth in the Agreement and the Plan.

     I hereby represent that it is my intention to acquire these shares for the following purpose:

	 	——	 	investment
	 
	 	——	 	resale or distribution

     Please note: if your intention is to resell (or distribute within the meaning of Section 2(11)
of the Securities Act of 1933) the shares you acquire through this Option exercise, the Company or
transfer agent may require an opinion of counsel that such resale or distribution would not violate
the Securities Act of 1933 prior to your exercise of such Option.

	 	 	 	 	 
	 	 	 
	Date:                     , ____. 	  	 	 
	 	 	Participant’s signature 	 
	 	 	 	 
	 

 

			
	*	 	If I elect to exercise by exchanging shares I already own, I will constructively
return shares that I already own to purchase the new option shares. If my shares are in
certificate form, I must attach a separate statement indicating the certificate number of the
shares I am treating as having exchanged. If the shares are held in “street name” by a registered
broker, I must provide the Company with a notarized statement attesting to the number of shares
owned that will be treated as having been exchanged. I will keep the shares that I already own and
treat them as if they are shares acquired by the option exercise. In addition, I will receive
additional shares equal to the difference between the shares I constructively exchange and the
total new option shares that I acquire.

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EXHIBIT B

ACKNOWLEDGMENT OF RECEIPT OF STOCK OPTION SHARES

     I hereby acknowledge the delivery to me by Evans Bancorp, Inc. (the “Company”) or its
affiliate on __________, of
stock certificates for __________ shares of
common stock of the Company purchased by me pursuant to the terms and conditions of the Stock
Option Agreement and the Evans Bancorp, Inc. 2009 Long-Term Equity Incentive Plan, as applicable,
which shares were transferred to me on the Company’s stock record books on ___.

	 	 	 	 	 
	 	 	 
	Date:                                          	  	 	 
	 	 	Participant’s signature 	 
	 	 	 	 
	 

46exv10w4

Exhibit 10.4

RESTRICTED STOCK AWARD AGREEMENT

Granted by

EVANS BANCORP, INC.

under the

EVANS BANCORP, INC. 2009 LONG TERM EQUITY INCENTIVE PLAN

     1. Restricted Stock Award. Evans Bancorp, Inc. (the “Company”) has granted to
the following person (the “Participant”) a Restricted Stock Award (the “Award”), pursuant to the
Company’s 2009 Long-Term Equity Incentive Plan (as amended from time to time)( the “Plan”), of the
number of shares (the “Shares”) of common stock (“Common Stock”) of the Company set forth opposite
the Participant’s name below, subject to the terms and conditions of this Restricted Stock Award
Agreement (the “Agreement”) and the Plan. Except where the context otherwise requires, the term
“Company” shall include the parent and all present and future subsidiaries of the Company as
defined in Sections 424(e) and 424(f) of the Internal Revenue Code of 1986, as amended or replaced
from time to time (the “Code”). Capitalized terms used herein but not defined shall have the same
meaning as in the Plan.

	 	 	 	 	 	 	 	 	 	 	 

	 	 	Name of Participant:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Number of Shares of Common Stock Granted:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Date of Grant:	 	 	 	 	 	 	 	 
	 	 	 	 
	 	 

     2. Forfeitable Shares and Vested Shares. All Shares shall be deemed to be “Forfeitable
Shares” until the Company’s right of Forfeiture, described in Section 0 below, has expired (and the
Participant’s right to retain such shares has accrued) in accordance with the Vesting Schedule set
forth in Section 0. Forfeitable Shares shall be subject to Forfeiture as described in Section 0
below. “Vested Shares” are Shares held by the Participant as to which the Company’s right of
Forfeiture has expired (and the Participant’s right to retain such Shares has accrued) based on the
Vesting Schedule. All certificates representing Forfeitable Shares shall remain in the possession
of the Company until such shares become Vested Shares in accordance with the terms of this
Agreement. The Company shall deliver to the Participant a certificate representing the
Participant’s Vested Shares promptly after such Shares become Vested Shares.

     3. Vested Shares; Vesting Schedule. The Company’s right of Forfeiture shall expire and the
Shares shall become Vested Shares in accordance with the following:

          (a) Twenty-five percent (25%) of the total number of Shares shall become Vested Shares on the
first anniversary of the date of grant (i.e.,                     );

          (b) An additional twenty-five percent (25%) of the total number of Shares shall become Vested
Shares on the second anniversary of the date of grant (i.e.,                     ); and

          (c) An additional twenty-five percent (25%) of the total number of Shares shall become Vested
Shares on the third anniversary of the date of grant (i.e.,                     ); and

          (d) The final twenty-five percent (25%) of the total number of Shares shall become Vested
Shares on the fourth anniversary of the date of grant (i.e.,                     ).

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          (e) Vesting Upon Death or Disability. In the event of Participant’s termination of employment
due to death or Disability of the Participant before the expiration of the Vesting Schedule, then
the vesting of the Shares under the Vesting Schedule shall be automatically accelerated in full so
that all of the Shares shall become Vested Shares, effective as of the date of death or Disability;

          (f) Vesting Upon Retirement. In the event of the Participant’s termination of employment by
reason of Retirement before the expiration of the Vesting Schedule, then the vesting of the Shares
under the Vesting Schedule shall be automatically accelerated in full so that all of the Shares
shall become Vested Shares, effective as of the date of such Retirement.

          (g) Vesting Upon a Change in Control. In the event of the Participant’s Involuntary
Termination of Employment (as defined in the Plan) following a Change in Control (as defined in the
Plan), all Restricted Stock Awards shall become fully earned and vested immediately.

     4. Forfeiture of Shares.

          (a) Forfeiture. Upon the Participant’s termination of employment for any reason (other than
the Participant’s death, Disability or Retirement or following a Change in Control as provided in
Section 3) before the end of the term of the Vesting Schedule, then all Shares which as of the date
of such termination constitute Forfeitable Shares shall be forfeited to the Company (“Forfeiture”)
without payment of any consideration by the Company. There shall be no further accruals under the
Vesting Schedule (and no further Forfeitable Shares shall become Vested Shares) from and after the
date of any such termination.

          (b) Forfeiture of Forfeitable Shares. The Participant’s rights in all Forfeitable Shares
shall terminate automatically on the date of the Participant’s termination of employment for
reasons other than the Participant’s death, Disability or Retirement, and the Company may thereupon
cancel the certificate or certificates representing such Forfeitable Shares on its books. In the
event that the certificates then being held by the Company under this Agreement represent Vested
Shares as well as Forfeitable Shares, the Company shall issue to the Participant a replacement
certificate for such Vested Shares.

     5. No Implied Rights. Neither a Participant nor any other person shall by reason of
participation in the Plan acquire any right in or title to any assets, funds or property of the
Company or any subsidiary whatsoever, including any specific funds, assets, or other property which
the Company or any subsidiary, in its sole discretion, may set aside in anticipation of a liability
under the Plan. A Participant shall have only a contractual right to the shares of Common Stock or
amounts, if any, payable or distributable under the Plan, unsecured by any assets of the Company or
any subsidiary, and nothing contained in the Plan shall constitute a guarantee that the assets of
the Company or any subsidiary shall be sufficient to pay any benefits to any person. No individual
shall have the right to be selected to receive an Award under the Plan, or, having been so
selected, to receive a future Award under the Plan.

     6. No Rights as a Stockholder. Except as otherwise provided in the Plan, no Award under the
Plan shall confer upon the holder thereof any rights as a stockholder of the Company prior to the
date on which the individual fulfills all conditions for receipt of such rights.

     7. Dividends. Any dividends or distributions (other than a stock dividend consisting of
shares of Common Stock) declared and paid with respect to shares of Common Stock subject to the
Award, without regard to vesting status, shall be immediately distributed to the Participant.

     8. Voting Rights. The Participant shall have the right to vote the shares of Common Stock
subject to this Award, without regard to vesting status, unless shares are forfeited.

     9. Availability of Tax Election. The Participant acknowledges that the Company has advised
the Participant of the possibility of making an election under Section 83(b) of the Code with
respect to the Award of the Shares and has recommended that the Participant consult a qualified tax
advisor regarding the desirability of making such an election in light of the Participant’s
individual circumstances.

48

 

     10. Acceptance and Acknowledgment. The Recipient hereby accepts this Award, subject to all
the terms and provisions herein and to the provisions of the Plan (as it may be amended from time
to time). The Recipient hereby agrees to accept as binding, conclusive, and final, all decisions
and interpretations of the Committee upon any questions arising under the Plan. As a condition to
the issuance of shares of common stock of the Company under this Award, the Recipient authorizes
the Company to deduct from the settlement of an Award any taxes required to be withheld by the
Company under federal, state, or local law as a result of his receipt of this Award.

     11. Miscellaneous.

          (a) This Agreement may not be amended or otherwise modified unless evidenced in writing and
signed by the Company and the Participant.

          (b) All notices under this Agreement shall be mailed or delivered by hand to the parties at
their respective addresses set forth beneath their names below or at such other address as may be
designated in writing by either of the parties to one another.

          (c) This Agreement shall be governed by and construed in accordance with the laws of the State
of New York, without regard to its principles of conflicts of laws.

          (e) This Agreement is executed in two (2) counterpart originals, one (1) to be retained by the
Participant and one (1) to be retained by the Company.

	 	 	 	 	 
	 	EVANS BANCORP, INC.

 	 
	 	By:  	 	 
	 	 	Chairman of the Compensation Committee 	 
	 	 	 	 
	 

PARTICIPANT’S ACCEPTANCE

     The undersigned hereby accepts the grant of the Award described in this Agreement and agrees
to the terms and conditions hereof and of the 2009 Long Term Equity Incentive Plan. The
undersigned hereby acknowledges receipt of a copy of the Company’s 2009 Long-Term Equity Incentive
Plan.

PARTICIPANT

 

ACKNOWLEDGMENT OF RECEIPT OF EARNED SHARES

     I hereby acknowledge the delivery to me by Evans Bancorp, Inc. (the “Company”) on
                                        , of stock certificates for                     shares of common stock of the Company
earned by me pursuant to the terms and conditions of the Restricted Stock Award Agreement, and the
Evans Bancorp, Inc. 2009 Long-Term Equity Incentive Plan, which shares were transferred to me on
the Company’s stock record books on                                         .

Dated:                    

	 	 	 	 	 

	 

	 	 

Participant’s name (Print)
	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 

Participant’s signature
	 	 

49

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