Document:

exv10w12

 

EXhibit 10.12

SOVEREIGN BANCORP, INC. 1993 STOCK OPTION PLAN

FORM OF STOCK OPTION AGREEMENT FOR

NONQUALIFIED STOCK OPTION

BETWEEN

SOVEREIGN BANCORP, INC.

AND

                                     

(the Optionholder)

	 	 	 	 	 
	Date of Grant:
	 	_______________________________
	 
	 	 	 	 
	Number of Shares:
	 	_______________________________
	 
	 	 	 	 
	Purchase Price
	 	$_______________________________
	 
	 	 	 	 
	Option Expires:
	 	_______________________________

 

 

NONQUALIFIED STOCK OPTION AGREEMENT

Number of shares subject to option:                      shares.

     This Agreement dated                                          between Sovereign Bancorp, Inc. (the
“Corporation”) and                                                              (the “Optionholder”),

WITNESSETH:

     1. Grant of Option.

         Pursuant to the provisions of the Sovereign Bancorp, Inc. 1993 Stock Option Plan (the “Plan”)
the Corporation hereby grants to the Optionholder, subject to the terms and conditions of the Plan
and subject further to the terms and conditions herein set forth, the right and option to purchase
from the Corporation for cash, or for common stock of the Corporation subject to the approval of
the Committee (as defined in the Plan), all or any part of an aggregate of                      shares of
Common Stock (without par value) of the Corporation (“Common Stock”) at the purchase price of
$                     per share; such option to be exercised as hereinafter provided.

     2. Terms and Conditions.

         It is understood and agreed that the option evidenced hereby is subject to the following terms
and conditions:

         (a) Expiration Date. Subject to the provisions of Paragraph 2(d), the option granted
hereby shall expire on                                          [not more than ten years and one month from the date of
grant].

         (b) Exercise of Option. Except in the case of a Change in Control (as defined in the
Plan), no part of this option may be exercised until the Optionholder has remained in the
continuous employ of the Corporation or of a Subsidiary of the Corporation (as defined in the Plan)
for a period of                      years after the date hereof.

               This option may be exercised, to the extent then vested under Article 7 of the Plan, in whole
at any time, or from time to time in part, prior to the expiration date specified in

 

 

Paragraph 2(a). Any exercise shall be accompanied by a written notice to the Corporation
specifying the number of shares as to which the option is being exercised. In the event of a
Change in Control, if the Optionholder is a non executive officer, then the option granted hereby
shall become immediately exercisable. If the Optionholder is an executive officer or director,
then upon a change in control, the option granted hereby shall become exercisable as to 20% of the
shares of Common Stock subject to this Option for each full year of continuous employment completed
following the date hereof.

     (c) Payment of Purchase Price Upon Exercise. At the time of any exercise the purchase
price of the shares as to which this option shall be exercised shall be paid in cash (or, subject
to the conditions and limitations described in the Plan, by delivering shares of Common Stock of
the Corporation or by delivering a combination of such Common Stock and cash equal to the price per
share set forth in Paragraph 1 hereof) to the Corporation.

     (d) Exercise Upon Death or Termination of Employment.

         (1) In the event of the death of the Optionholder while an employee of the Corporation or of a
Subsidiary, this option may be exercised, to the extent that the Optionholder was entitled to do so
at the date of termination of employment due to such cause, by the person or persons to whom the
Optionholder’s rights under this option pass by will or applicable law, or if no such person has
such right, by the estate’s executors or administrators, in whole at any time, or from time to time
in part, within one year after the Optionholder’s death, but in no event later than the expiration
date specified in Paragraph 2(a).

         (2) If the Optionholder’s employment with the Corporation or a Subsidiary terminates because
of total and permanent disability, then the Optionholder may exercise this option, to the extent
that the Optionholder was entitled to do so at the date of termination of employment due to such
cause, in whole at any time, or from time to time in part, within one year after the date of such
termination, but in no event later than the expiration date specified in Paragraph 2(a).

         (3) If the Optionholder’s employment with the Corporation or a Subsidiary terminates because
of early or normal retirement as described in the Sovereign Bancorp, Inc.

 

 

Employee Stock Ownership Plan, then the Optionholder may exercise this option, to the extent
that the Optionholder was entitled to do so at the date of early or normal retirement, in whole at
any time, or from time to time in part, within 24 [not more than 24] months after the date of such
termination of employment, but in no event later than the expiration date specified in Paragraph
2(a).

         (4) If the Optionholder’s employment with the Corporation or a Subsidiary is voluntarily
terminated by the Optionholder (other than for early or normal retirement as described in the
Sovereign Bancorp, Inc. Employee Stock Ownership Plan), then the option will expire on the date of
such termination of employment.

         (5) Notwithstanding anything herein to the contrary, if the Optionholder’s employment is
involuntarily terminated by the Corporation or a Subsidiary, all rights to exercise this option
shall terminate at the date of such termination.

     (e) Nontransferability. This option shall not be transferable other than by will or
by the laws of descent and distribution. During the lifetime of the Optionholder, this option
shall be exercisable only by the Optionholder.

     (f) Adjustments. In the event of any change in the Common Stock of the Corporation by
reason of any stock dividend, recapitalization, reclassification, merger, consolidation, split up,
combination or exchange of shares, or of any similar change affecting the Common Stock, then in any
such event the number and kind of shares subject to this option and their purchase price per share
shall be appropriately adjusted consistent with such change. If any other change in the number or
kind of the outstanding shares of stock of the Corporation occurs, an adjustment may be made to the
number and kind of shares subject to this Option and their purchase price per share in such manner
as a majority of the disinterested members of the Board of Directors may deem equitable to prevent
substantial dilution or enlargement of the rights granted to the Optionholder hereunder. Any
adjustment so made shall be final and binding upon the Optionholder.

 

 

         (g) No Rights As Stockholder. The Optionholder shall have no rights as a stockholder
with respect to any shares of Common Stock subject to this option prior to the date of issuance of
a certificate or certificates for such shares.

         (h) No Right to Continued Employment. This option shall not confer upon the
Optionholder any right with respect to continuance of employment by the Corporation or any
Subsidiary, nor shall it interfere in any way with the right of the Corporation or any Subsidiary
to terminate the Optionholder’s employment at any time.

         (i) Compliance with Law and Regulations. This option and the obligation of the
Corporation to sell and deliver shares hereunder, 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 be required. The Corporation shall not be required to issue or deliver any certificates for
shares of Common Stock prior to (1) the listing of such shares on any stock exchange on which the
Common Stock may then be listed and (2) the completion of any registration or qualification of such
shares under any federal or state law, or any rule or regulation of any government body which the
Corporation shall, in its sole discretion, determine to be necessary or advisable.

     3. Investment Representation.

         The Committee appointed pursuant to Article 3 of the Plan may require the Optionholder to
furnish to the Corporation, prior to the issuance of any shares upon the exercise of all or any
part of this option, an agreement (in such form as such Committee may specify) in which the
Optionholder represents that the shares acquired by him or her upon exercise are being acquired for
investment and not with a view to the sale or distribution thereof.

     4. Optionholder Bound By Plan.

         The Optionholder hereby acknowledges receipt of a copy of the Plan and any amendments thereto,
and agrees to be bound by all the terms and provisions thereof, which, to the extent relevant, are
incorporated herein by reference.

 

 

     5. Withholding of Taxes.

         The Corporation will require as a condition precedent to the exercise of this option that
appropriate arrangements be made for the withholding of any applicable taxes. The obligation of
the Optionholder under this paragraph to provide for the payment of withholding taxes may be
satisfied, subject to the provisions of Section 11.5 of the Plan, by electing to have the
Corporation withhold certain of the shares that would otherwise be issuable pursuant to the
exercise of the option granted hereby.

     6. Notices.

         Any notice hereunder to the Corporation shall be addressed to it at its office, 1130 Berkshire
Boulevard, Wyomissing, Pennsylvania 19610; Attention: Executive Compensation Manager, and any
notice hereunder to Optionholder shall be addressed to him or her at the address below, subject to
the right of either party to designate at any time hereafter in writing some other address.

         IN WITNESS WHEREOF, Sovereign Bancorp, Inc. has caused this Agreement to be executed by a duly
authorized officer and the Optionholder has executed this Agreement, both as of the day and year
first above written.

	 	 	 	 	 
	SOVEREIGN BANCORP, INC.	 	OPTIONHOLDER
	 
	 	 	 	 
	By
	 	 	 	 
	

	 	 
	 	 
	

	 	     (Signature)
	 	(Signature)
	

	 	     Jay S. Sidhu	 	 
	

	 	     President and Chief Executive Officer	 	 
	

	 	 	 	 
	

	 	 	 	(Print Address)exv10w13

 

Exhibit 10.13

FORM OF STOCK OPTION AGREEMENT FOR

INCENTIVE STOCK OPTION

BETWEEN

SOVEREIGN BANCORP, INC.

AND

                                     

(the Optionee)

	 	 	 	 	 
	Date of Grant:
	 	__________________ 
	 
	 	 	 	 
	Number of Shares:
	 	__________________ 
	 
	 	 	 	 
	Purchase Price
	 	$__________________ 
	 
	 	 	 	 
	Option Expires:
	 	__________________ 

 

 

INCENTIVE STOCK OPTION AGREEMENT

Number of shares subject to option:                                 shares.

     This Agreement dated                                         , between Sovereign Bancorp, Inc. (the “Corporation”)
and                      (the “Optionee”),

WITNESSETH:

     1. Grant of Option.

     Pursuant to the provisions of the Sovereign Bancorp, Inc. 1986 Stock Option Plan (the “Plan”),
the Corporation hereby grants to the Optionee, subject to the terms and conditions of the Plan and
subject further to the terms and conditions herein set forth, the right and option to purchase from
the Corporation for cash, or for Common Stock of the Corporation subject to the approval of the
Committee, all or any part of an aggregate of ___shares of Common Stock (without par value) of
the Corporation at the purchase price of $
                     per share, such option to be exercised as
hereinafter provided.

     2. Terms and Conditions.

         It is understood and agreed that the option evidenced hereby is subject to the following terms
and conditions:

         (a) Expiration Date. Subject to the provisions of Paragraph 2(d), the option granted
hereby shall expire on                                          [not more than 10 years from the date of grant, except for
option granted to 10% shareholder, which shall be limited to 5 years].

         (b) Exercise of Option. No part of this option may be exercised until the Optionee
has remained in the employ of the Corporation or a Subsidiary for a period of ___years after the
date hereof.

               This option may be exercised, to the extent exercisable by its terms, in whole or from time to
time in part at any time prior to the expiration hereof. Any exercise shall be accompanied by a
written notice to the Corporation specifying the number of shares as to which the option is being
exercised.

1

 

     (c) Payment of Purchase Price Upon Exercise. At the time of any exercise, the
purchase price of the shares as to which this option shall be exercised shall be paid in cash (or,
subject to the conditions and limitations described in Section 7(c) of the Plan, by delivering
shares of Common Stock of the Corporation or by delivering a combination of such shares and cash
equal to the purchase price set forth in Paragraph 1 hereof) to the Corporation.

     (d) Exercise Upon Death or Termination of Employment.

           (1) In the event of the death of the Optionee while an employee of the Corporation or of a
Subsidiary, this option may be exercised, to the extent that the Optionee was entitled to do so at
the date of termination of employment, by the person or persons to whom the Optionee’s rights under
this option pass by will or applicable law, or if no such person has such right by his or her
executors or administrators, at any time, or from time to time, but in no event later than the
expiration date specified in Paragraph 2(a) or three months after the Optionee’s death, whichever
is earlier.

           (2) If the Optionee’s employment with the Corporation or a Subsidiary terminates because of
total and permanent disability, then the Optionee may exercise this option at any time, or from
time to time, but in no event later than the expiration date specified in Paragraph 2(a) or three
months after the date of termination, whichever is earlier.

           (3) If the Optionee’s employment with the Corporation or a Subsidiary terminates because of
retirement after attaining age 65 or retirement at an earlier age with the consent of the Board of
Directors, then the Optionee may exercise this option at any time, or from time to time, but in no
event later than the expiration date specified in Paragraph 2(a) or three months after the date of
termination, whichever is earlier.

           (4) If the Optionee’s employment with the Corporation or a Subsidiary is voluntarily
terminated by the Optionee, except for retirement after attaining age 65 or retirement at an
earlier age with the consent of the Board of Directors, then the option will expire on the date of
termination of employment.

           (5) If the Optionee’s employment with the Corporation or a Subsidiary is terminated by the
Corporation or Subsidiary, then the Optionee may exercise this option at any

2

 

time, or from time to time, but in no event later than the expiration date specified in
Paragraph 2(a) or three months after the date of termination, whichever is earlier.

          (e) Nontransferability. This option shall not be transferable other than by will or
by the laws of descent and distribution. During the lifetime of the Optionee, this option shall be
exercisable only by the Optionee.

          (f) Adjustments. In the event of any change in the Common Stock of the Corporation by
reason of any stock dividend, recapitalization, reclassification, merger, consolidation, split-up,
combination or exchange of shares, or of any similar change affecting the Common Stock, then in any
such event the number and kind of shares subject to this option and their purchase price per share
shall be appropriately adjusted consistent with such change. If any other change in the number or
kind of the outstanding shares of stock of the Corporation occurs, an adjustment may be made to the
number and kind of shares subject to this option and their purchase price per share in such manner
as a majority of the disinterested members of the Board of Directors may deem equitable to prevent
substantial dilution or enlargement of the rights granted to the Optionee hereunder. Any
adjustment so made shall be final and binding upon the Optionee.

          (g) No Rights as Stockholder. The Optionee shall have no rights as a stockholder with
respect to any shares of Common Stock subject to this option prior to the date of issuance to him
or her of a certificate or certificates for such shares.

          (h) No Right To Continued Employment. This option shall not confer upon the Optionee
any right with respect to continuance of employment by the Corporation or any Subsidiary, nor shall
it interfere in any way with the right of his or her employer to terminate his or her employment at
any time.

          (i) Compliance with Law and Regulations. This option and the obligation of the
Corporation to sell and deliver shares hereunder 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 be required. The Corporation shall not be required to issue or deliver any certificates for
shares of Common Stock prior to (1) the listing of such shares on any stock exchange on which

3

 

the Common Stock may then be listed and (2) the completion of any registration or
qualification of such shares under any federal or state law, or any rule or regulation of any
government body which the Corporation shall, in its sole discretion, determine to be necessary or
advisable.

     3. Investment Representation.

         The Committee appointed pursuant to Section 2 of the Plan may require the Optionee to furnish
to the Corporation, prior to the issuance of any shares upon the exercise of all or any part of
this option, an agreement (in such form as such Committee may specify) in which the Optionee
represents that the shares acquired by him or her upon exercise are being acquired for investment
and not with a view to the sale or distribution thereof.

     4. Optionee Bound by Plan.

         The Optionee hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all
the terms and provisions thereof, which, to the extent relevant, are incorporated herein by
reference.

     5. Notices.

         Any notice hereunder to the Corporation shall be addressed to it at its office, 1130 Berkshire
Boulevard, Wyomissing, Pennsylvania 19610; Attention: Corporate Secretary, and any notice
hereunder to Optionee shall be addressed to him or her at the address below, subject to the right
of either party to designate at any time hereafter in writing some other address.

4

 

     IN WITNESS WHEREOF, Sovereign Bancorp, Inc., has caused this Agreement to be executed by a
duly authorized officer and the Optionee has executed this Agreement, both as of the day and year
first above written.

	 	 	 	 	 
	 	 	SOVEREIGN BANCORP, INC.
	 
	 	 	 	 
	

	 	By	 	 
	

	 	 	 	 
	

	 	 	 	(Signature)
	 
	 	 	 	 
	

	 	 	 	 
	

	 	 	 	(Print Name)
	 
	 	 	 	 
	

	 	 	 	 
	

	 	 	 	(Print Title)
	 
	 	 	 	 
	 	 	OPTIONEE
	 
	 	 	 	 
	

	 	 
	

	 	 	 	(Signature)
	 
	 	 	 	 
	

	 	 
	

	 	 	 	(Print Name)
	 
	 	 	 	 
	

	 	 
	

	 	 	 	(Print Address)

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