Document:

Ex 102 Employee Restricted Stock Agreement (2019)

		

			Employee

		

		
			EXHIBIT 10.2
		

		
			RESTRICTED STOCK AWARD AGREEMENT
		

		
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			Granted by
		

		
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			EVANS BANCORP, INC.
		

		
			under the
		

		
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			EVANS BANCORP, INC. AMENDED AND RESTATED 2019 LONG TERM EQUITY INCENTIVE PLAN
		

		
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			.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 Amended and Restated 2019 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:     
		

			
	
			
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			.  Forfeitable Shares and Vested Shares.  All Shares shall be deemed to be “Forfeitable Shares” until the Company’s right of Forfeiture, described in Section 4 below, has expired (and the Participant’s right to retain such shares has accrued) in accordance with the Vesting Schedule set forth in Section 3.  Forfeitable Shares shall be subject to Forfeiture as described in Section 4 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.

			
	
			
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			.  Vested Shares; Vesting Schedule.  The Company’s right of Forfeiture shall expire and the whole 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;

			
	
			
				(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; 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; 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.

		 

		

			

		

 

			
	
			
				(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 an Involuntary Termination of Employment Following 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. 

			
	
			
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			.  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.
		

		
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			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.
		

		 

		

			

		

		

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			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.
		

		
			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 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.
		

			
	
			
				 (d)
			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:
		

		
			David J. Nasca, President and Chief Executive Officer
		

		
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			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 Amended and Restated 2019 Long Term Equity Incentive Plan.  The undersigned hereby acknowledges receipt of a copy of the Company’s Amended and Restated 2019 Long-Term Equity Incentive Plan.
		

		
			PARTICIPANT
		

		
			
		

		
			   (Participant Name)
		

		
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			-  3  -Ex 103 Employee Stock Option Agreement (2019)

		

			EMPLOYEE

		

		
			Exhibit 10.3
		

		
			Stock Option
		

		
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			Granted by
		

		
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			EVANS BANCORP, INC.
		

		
			under the
		

		
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			EVANS BANCORP, INC. AMENDED AND RESTATED 2019 LONG TERM EQUITY INCENTIVE PLAN
		

		
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			This option (“Option”) is and shall be subject in every respect to the provisions of the Amended and Restated 2019 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 10 below).  

			
	
			
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			Number of Incentive Stock Options: 

			
	
			
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			Number of Non-qualified Options:  

			
	
			
				 4.
			

			
	
			
			Exercise price per share:      
(subject to adjustment pursuant to Section 10 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, in whole share installments as follows:  

			
	
			
				 (i)
			

			
	
			
			Twenty-five percent (25%) of the number of shares subject to the Option are first exercisable on the first anniversary of the date of grant; and

			
	
			
				 (ii)
			

			
	
			
			Twenty-five percent (25%) of the number of shares subject to the Option are first exercisable on the second anniversary of the date of grant; and

			
	
			
				 (iii)
			

			
	
			
			Twenty-five percent (25%) of the number of shares subject to the Option are first exercisable on the third anniversary of the date of grant; and

		 

		

			

		

 

			
	
			
				 (iv)
			

			
	
			
			Twenty-five percent (25%) of the number of shares subject to the Option are first exercisable on the fourth anniversary of the date of grant; and

		
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			The right of exercise shall be cumulative.  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:

			
	
			
				 (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.

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

		

		

		 

		

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		(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.
		

		
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			(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.

		
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			9.1In 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.
		

		
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				 9.2
			

			
	
			
			A “Change in Control” shall be deemed to have occurred as provided in Section 5.2 of the Plan.

		
			 
		

			
	
			
				 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.  
		

			
	
			
				 (i)
			

			
	
			
			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.  

			
	
			
				 (ii)
			

			
	
			
			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 
		

		 

		

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			months following termination, subject to termination on the Option’s expiration date, if earlier.

			
	
			
				 (iii)
			

			
	
			
			Incentive Option Treatment. No Option shall be eligible for treatment as an incentive option in the event such Option is exercised more than three months following termination of employment, or one year following termination of employment due to death or Disability and provided further, in order to obtain incentive option treatment for Options exercised by heirs or devisees of a Participant, the Participant’s death must have occurred while employed or within three (3) months of termination of employment.

			
	
			
				 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.

		
			12.2Except 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 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:
		

		
			      David J. Nasca, President and CEO
		

		

		

		 

		

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			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 Amended and Restated 2019 Long-Term Equity Incentive Plan.  The undersigned hereby acknowledges receipt of a copy of the Company’s Amended and Restated 2019 Long-Term Equity Incentive Plan.
		

		
			Participant

		

		
			
		

		
			   (Participant Name)
		

		

		

		 

		

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		EXHIBIT A
		

		
			NOTICE OF EXERCISE OF STOCK OPTIONS
(BY EMPLOYEES)
		

		
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			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. Amended and Restated 2019 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
		

		
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			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.
		

		
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			Date: ____________, _____._________________________________________
		

		
			Participant’s signature
		

		
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			*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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