Document:

EXHIBIT 4.3

 

CASCADE
CORPORATION

 

STOCK
APPRECIATION RIGHTS PLAN

 

1.             Purposes.

 

This Plan is intended to enable Cascade Corporation (the “Corporation”)
to recognize the contribution of executives of the Corporation and its
subsidiaries to the Corporation’s success, to provide them incentives to
enhance the Corporation’s business prospects and to recognize their role and
that of the Board of Directors (the “Board”) in increasing value over the long
term.

 

2.             Effective Date and Duration of Plan.

 

(a) 
Effective Date.  The
Plan shall become effective upon approval by the shareholders of the
Corporation

 

(b)  Duration.  No stock appreciation rights may be granted
under the Plan after May 31, 2013. However, the Plan shall continue in
effect until all rights issued under the Plan have been exercised or have
expired. The Board may suspend or terminate the Plan at any time, except with
respect to outstanding stock appreciation rights. Termination shall not affect
any outstanding stock appreciation rights, or the forfeitability of rights
granted under the Plan.

 

3.             Administration.

 

The Plan shall be administered by the Compensation Committee of the
Board. The Committee shall have full power and authority, subject to the
provisions of the Plan, to:

 

(a)           Designate
employee participants;

 

(b)           Determine
the amount and other terms and conditions of awards of stock appreciation
rights to employees, such determinations to be subject to Board approval in the
case of grants to officers of the Corporation, and those terms and conditions
of stock appreciation rights awarded to non-employee members of the Board of
Directors which are not stated in Section 10 of the Plan..

 

(c)           Adopt and
amend rules and regulations relating to administration of the Plan, advance the
lapse of any waiting period, accelerate any exercise date, and make all other
determinations in the judgment of the Committee necessary or desirable for the
administration of the Plan.

 

Decisions of the Committee as to interpretation of, and rights granted
pursuant to, the Plan and any related agreement shall be final. The Committee
in its sole discretion may correct any defect or supply any omission or
reconcile any inconsistency in the Plan or in any related agreement.

 

4.             Eligibility.

 

The Committee may from time to time grant stock appreciation rights (“Rights”)
to such key executive employees of the Corporation (“Participants”) or of any
subsidiary as the Committee may deem eligible.

 

5.             Rights/Share Limitation.

 

(a)           A Right is a right
granted under the Plan which enables the holder to receive at the time of
exercise an amount, payable solely in the form of Cascade Corporation common
shares valued at Fair Market Value, equal to the difference between the Fair
Market Value of a single common share of Cascade Corporation stock and the Base
Price of a single common share of Cascade Corporation stock.

 

(b)           In no event shall more
than 750,000 Cascade Corporation common shares, as adjusted by the Committee to
reflect proportionately any recapitalization, reclassification, stock split,
combination of shares, or dividend payable in shares in connection with Cascade
Corporation common shares be issued pursuant to the Plan.

 

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(c)           In no event shall more
than 100,000 Cascade Corporation shares, as adjusted by the Committee to
reflect proportionately any recapitalization, reclassification, stock split,
combination of shares, or dividend payable in shares in connection with Cascade
Corporation common shares, be issued to any one individual pursuant to the
exercise of Rights granted to such individual under the Plan in a single fiscal
year.

 

6.             Required Terms and Conditions of Rights.

 

The Committee may grant Rights under the Plan, subject to such rules,
terms, and conditions as the Committee prescribes in accordance with the
provisions of the Plan, including the following:

 

(a)  Base Price.  The Base Price of each Right shall be
established by the Committee and may not be less than the Fair Market Value of
a common share of Cascade Corporation common stock on the date the grant is
made.

 

(b)  Fair Market Value.  The Fair Market Value of a common share of
Cascade Corporation common stock means the closing price quoted on the New York
Stock Exchange or, if shares are not listed on that exchange, the primary
trading venue for Corporation shares, as reported in the Wall Street Journal on
the date of grant or exercise, as the case may be, or if the shares did not
trade that date, on the last prior date on which the shares were traded.

 

(c)  Maximum Term of Right.  A Right shall be exercisable during such
period of time as the Committee may specify, provided that no Right shall be
exercisable after the expiration of 10 years from the date on which it is
granted.

 

(d)  Installment Exercise Limitations.  Each grant of Rights shall generally become
exercisable in equal cumulative annual installments over such period as the
Committee may establish, except to the extent that other terms of exercise are
specifically provided by other terms of the Plan. The Committee shall have
discretion to establish vesting periods and limitations on amounts to be
realized upon exercise in connection with grants it may make.

 

(e)  Termination of Employment.

 

(i)  Death.  If a Participant dies while entitled to
exercise Rights granted under this Plan, such Rights may be exercised for a
period of one year after the Participant’s death. Rights not exercisable at the
time of death, and Rights not exercised during the period provided by this
subparagraph, will expire. In the event of a Participant’s death, Rights
exercisable as of the date of the Participant’s death may be exercised by such
beneficiary as the Participant may have designated in writing in a manner
determined by the Committee. In the absence of such a designation, the
Participant’s estate shall have the right to exercise such Rights.

 

(ii) 
Retirement.  If a Participant
terminates employment after age 62 under circumstances which the Committee in
its sole discretion deems equivalent to retirement, any Rights the Participant
was entitled to exercise at the date of retirement may be exercised for a
period of one year following retirement. Rights not exercisable at the time of
retirement, and Rights not exercised during the period provided by this
subparagraph, will expire. The provisions of this subparagraph (ii) shall
apply also to retirements due to physical or mental disability which the
Committee determines is of such a nature as to prevent further performance of
job duties. Should a retired Participant die while entitled to exercise Rights,
the provisions of subparagraph (i) above shall apply to the exercise of
such Rights, which may be exercised for a period of one year following the
Participant’s death.

 

(iii)  Other
Termination of Employment—Not For Cause. 
Should a Participant cease to be employed by the Corporation or its
subsidiaries for reasons other than Death or Retirement, any Rights the
Participant was entitled to exercise at the date of termination may be
exercised for a period of 90 days following termination or, if longer,
until 30 days have elapsed following the public dissemination of the
Corporation’s financial results for the first fiscal period ending after the
termination of the Participant’s employment. Rights not exercisable at the time
of termination, and Rights not exercised during such 90-day or extended period,
shall expire. Should a terminated Participant die while entitled to exercise
Rights, the provisions of subparagraph (i) above shall apply to the
exercise of such Rights, which may be exercised for a period of one year
following the Participant’s death. The rights granted by this subparagraph
(iii) shall not apply to a Participant who is terminated for Cause, or
whom the Committee determines in its sole discretion has entered into competition
with the Corporation.

 

(iv)  Termination
for Cause.  Participants whose employment
is terminated for (A) willful failure to perform reasonable directives of
the Corporation’s management; (B) use of alcohol or illegal drugs which
interferes with the Participant’s performance of duties in the judgment of the
Corporation’s management; (C) dishonesty affecting the

 

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Corporation or any
related entity or conviction of a felony or any crime involving fraud or misrepresentation;
(D) gross negligence or willful misconduct resulting in substantial loss
to the Corporation, damage to the Corporation’s reputation, or theft,
embezzlement or similar loss to the Corporation; or (E) other conduct
which the Committee in its sole discretion determines sufficiently harmful to
the interests of the Corporation to constitute cause for termination shall
forfeit all outstanding Rights awarded under this Plan.

 

(f)  Acceleration of Vesting.  The Committee shall have discretion to provide
in an individual Participant’s grant agreement for the exercise of all or a
portion of Rights granted to the Participant which would not otherwise be
exercisable, in the event of the Participant’s Death or Retirement.

 

(g)  Exercise.

 

(i)  Subject to
subparagraph (v) of this paragraph (g), the Committee shall establish
the time or times for exercise of Rights.

 

(ii)  Each Right
shall entitle the holder, upon exercise, to receive from the Corporation an
amount equal in value to the excess of the Fair Market Value on the date of
exercise of one Right over its Base Price. Such amount shall be payable solely
in the form of Cascade Corporation common shares valued at Fair Market Value.
No Right shall be exercisable at a time that the amount determined under this
Subsection is negative. No fractional shares shall be issued as payment
hereunder.

 

(iv)  The
Corporation shall make no payment hereunder prior to taking steps necessary to
assure that it will receive from a participant who has exercised a Right amounts
necessary to satisfy any applicable federal, state or local tax withholding
requirements, including social security and other normal withholdings.

 

(v)  Rights may
be exercised only during the 30-day period following the third business day
after public dissemination of the Corporation’s financial results for any
fiscal quarter or for its fiscal year.

 

(h)  Non-Transferability.  During a Participant’s lifetime, Rights shall
be exercisable only by the Participant, the Participant’s payee pursuant to a valid
order by a domestic relations court with jurisdiction, or by a legally
designated guardian or conservator. With the Committee’s prior consent, a
Participant may transfer Rights to a trust for his or her benefit established
for estate planning purposes.

 

7.             Changes in Capital Structure, Mergers,
Etc..

 

(a)  Change in Capital Structure.  If the outstanding shares of Common Stock of
the Corporation are hereafter increased, decreased or changed into or exchanged
for a different number or kind of shares of the Corporation or of another
corporation by reason of any recapitalization, reclassification, stock split,
combination of shares or dividend payable in shares, the Committee shall make
appropriate adjustments in the price and number of outstanding Rights or
portions thereof then unexercised, so that the participant’s proportionate
interest before and after the occurrence of the event is maintained; provided,
however, that this Section 7(a) shall not apply with respect to
transactions referred to in Section 7(b). Any such adjustment made by the
Committee shall be conclusive.

 

(b)  Reorganization or Liquidation.

 

(i)  Cash, Stock
or Other Property for Stock.  Except as
provided in Section 7(b)(ii), upon a merger, consolidation,
reorganization, plan of exchange or liquidation involving the Corporation, as a
result of which the shareholders of the Corporation receive cash, stock or
other property in exchange for or in connection with their Common Stock (any
such transaction to be referred to in this Section 7 as an “Accelerating
Event”), any Right granted hereunder shall terminate, except as specified in
the first sentence of Section 7(b)(ii), but the employee shall have the
right during the 30-day period immediately prior to any such Accelerating Event
to elect to exercise Rights awarded him or her, in whole or in part, without
any limitation on exercisability; provided, however, that such exercise shall
be deemed to occur immediately prior to such Accelerating Event and shall be
contingent upon the occurrence of such Accelerating Event.

 

(ii)  Stock for
Stock.  If the shareholders of the
Corporation receive capital stock of another Corporation (“Exchange Stock”) in
exchange for their Common Stock in any transaction involving a merger,
consolidation,

 

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reorganization, or
plan of exchange, all Rights granted hereunder shall be converted into stock
appreciation rights and awards measured by the Exchange Stock, unless the
Committee, in its sole discretion, determines that any or all such Rights shall
not be converted, but instead shall terminate in accordance with the provisions
of Section 7(b)(i) The amount and price of converted Rights shall be
determined by adjusting the amount and price of the Rights or other awards
granted hereunder to take into account the relative values of the Exchange
Stock and Corporation’s common shares in the transaction.

 

(iii)  Mergers,
Acquisitions, Etc. The Committee may also grant Rights, with terms, conditions
and provisions that vary from those specified in the Plan if such awards are
granted in substitution for, or in connection with the assumption of, stock
appreciation rights awarded by another Corporation and assumed or otherwise
agreed to be provided for by the Corporation pursuant to or by reason of a
transaction involving a corporate merger, consolidation, acquisition of
property or stock, separation, reorganization or liquidation to which the
Corporation or a parent or subsidiary Corporation of the Corporation is a
party.

 

8.             Amendment of Plan.

 

The Board may modify or amend the Plan in such respects as it deems
advisable because of changes in the law while the Plan is in effect or for any
other reason; provided, however, that the maximum number of shares which may be
issued under the Plan may be increased, and the provisions of Paragraph 10
may be modified, only upon approval by the shareholders of the Corporation. No
change in an award already granted shall be made without the written consent of
the holder of such award.

 

9.             Employment and Service Rights.

 

Nothing in the Plan or any award pursuant to the Plan shall
(a) confer upon any employee any right to be continued in the employment
of the Corporation or any parent or subsidiary Corporation of the Corporation
or interfere in any way with the right of the Corporation or any subsidiary of
the Corporation by whom such employee is employed to terminate such employee’s
employment at any time, for any reason, with or without cause, or increase or
decrease such employee’s compensation or benefits; or (b) confer upon any
person engaged by the Corporation or any parent or subsidiary Corporation of
the Corporation any right to be retained or employed by the Corporation or any
parent or subsidiary Corporation of the Corporation or to the continuation,
extension, renewal, or modification of any compensation, contract, or
arrangement with or by the Corporation or any subsidiary of the Corporation.

 

10.                               Participation by
Directors.

 

Each non-employee director of the Corporation shall be awarded 5,000
Rights upon the later of the approval of this Plan by the shareholders or the
election of the director to the Board of Directors by the shareholders and
2,700 additional Rights following each subsequent annual meeting of the
shareholders. Awards of Rights to directors shall vest and become exercisable
25% after one year and 25% following each year of director service thereafter.
Such awards shall be subject to the provisions of this Plan in all other
respects. All Rights granted to a director shall be exercisable upon the
director’s death or reaching of the mandatory retirement age established for
directors, whether or not they would otherwise be subject to exercise.

 

11.                               Rights as a Shareholder.

 

The recipient of any award under the Plan shall have no rights as a
shareholder with respect to any Right, and except as otherwise expressly
provided in the Plan, no adjustment shall be made for dividends or other rights
issued to shareholders. Shares issued pursuant to the Plan may bear such
restrictions on sale or other transfer as counsel to the Corporation may
determine are required under securities or other applicable laws.

 

12.                               Governing Law.

 

The provisions of this Plan shall be governed by and interpreted in
accordance with the laws of the State of Oregon.

 

4EXHIBIT 4.1

 

NATIONAL MERCANTILE BANCORP

 

2005 STOCK INCENTIVE PLAN

 

Section 1. 
PURPOSE

 

The purpose of the 2005 Stock Incentive Plan (the “2005
Plan”) of National Mercantile Bancorp, a California corporation and a
registered bank holding company under the Bank Holding Company Act of 1956, as
amended (the “Company”), is to enable the Company to attract, retain and
motivate its employees and independent contractors by providing for or
increasing the proprietary interests of such employees and independent contractors
in the Company, and to enable the Company to attract, retain and motivate its
nonemployee directors and further align their interest with those of the
shareholders of the Company by providing for or increasing the proprietary
interest of such directors in the Company.

 

Section 2. 
PERSONS ELIGIBLE

 

Each director, officer, employee or independent
contractor of the Company or any of its subsidiaries (each, a “Participant”)
shall be eligible to be considered for the grant of an Award (as hereinafter defined)
under the 2005 Plan.

 

Section 3. 
AWARDS

 

(a)   The
Administrator (as hereinafter defined) responsible for administration of the
2005 Plan is authorized to enter into any type of arrangement on behalf of the
Company with a Participant that is not inconsistent with the provisions of the
2005 Plan and that, by its terms, involves or might involve the issuance of (i) shares
of common stock of the Company (“Common Shares”) or (ii) Derivative
Security (as such term is defined in Rule 16a-1 promulgated under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), as such rule may
be amended from time to time) with an exercise or conversion privilege at a
price related to the Common Shares or with a value derived from the value of
the Common Shares.  The entering into of
any such arrangement is referred to herein as the grant of an “Award.”

 

(b)  
Awards are not restricted to any specified form or structure and may
include, without limitation, sales or bonuses of stock, restricted stock, stock
options, reload stock options, stock purchase warrants, other rights to acquire
stock, securities convertible into or redeemable for stock, stock appreciation
rights (“SARs”), phantom stock, dividend equivalents, performance units or
performance shares, and an Award may consist of one such security or benefit,
or two or more of them in tandem or in the alternative.

 

(c)  
Awards may be issued, and Common Shares may be issued pursuant to an
Award, for any lawful consideration as determined by the Administrator,
including, without limitation, services rendered by the recipient of such
Award.

 

(d)  
Subject to the provisions of the 2005 Plan, the Administrator, in its
sole and absolute discretion, shall determine all of the terms and conditions
of each Award granted hereunder, which terms and conditions may include, among
other things:

 

(i)   a
provision permitting the recipient of such Award, including any recipient who
is a director or officer of the Company, to pay the purchase price of the
Common Shares or

 

 

other property
issuable pursuant to such Award, or such recipient’s tax withholding obligation
with respect to such issuance, in whole or in part, by any one or more of the
following:

 

(A)   the
delivery of cash;

 

(B)   the
delivery of other property deemed acceptable by the Administrator;

 

(C)   the
delivery of previously owned shares of capital stock of the Company; or

 

(D)   a
reduction in the amount of Common Shares otherwise issuable pursuant to such
Award.

 

(ii)   a
provision conditioning or accelerating the receipt of benefits pursuant to such
Award, either automatically or in the discretion of the Administrator, upon the
occurrence of specified events, including, without limitation, a change of
control of the Company (as defined by the Administrator), an acquisition of a
specified percentage of the voting power of the Company, the dissolution or
liquidation of the Company, a sale of substantially all of the property and
assets of the Company or an event of the type described in Section 7
hereof; or

 

(iii)   a
provision required in order for such Award to qualify as an incentive stock
option (an “Incentive Stock Option”) under Section 422 of the Internal
Revenue Code of 1986, as amended (the “Code”); provided, however, that no Award
issued to any Nonemployee Director or any independent contractor of the Company
shall qualify as an Incentive Stock Option.

 

Section 4. 
STOCK SUBJECT TO THE 2005 PLAN

 

(a)   At
any time, the aggregate number of Common Shares issued or issuable pursuant to
all Awards (including all Incentive Stock Options) granted under the 2005 Plan
shall not exceed 250,000 shares subject to adjustment as provided in Section 7
hereof.

 

(b)   For
purposes of Section 4(a) hereof, the aggregate number of Common
Shares issued or issuable pursuant to Awards granted under the 2005 Plan shall
at any time be deemed to be equal to the sum of the following:

 

(i)   the
number of Common Shares that were issued prior to such time pursuant to Awards
granted under the 2005 Plan, other than Common Shares that were subsequently
reacquired by the Company pursuant to the terms and conditions of such Awards
and with respect to which the holder thereof received no benefits of ownership
such as dividends; plus

 

(ii)   the
number of Common Shares that were otherwise issuable prior to such time
pursuant to Awards granted under the 2005 Plan, but that were withheld by the
Company as payment of the purchase price of the Common Shares issued pursuant
to such Awards or as payment of the recipient’s tax withholding obligation with
respect to such issuance; plus

 

(iii)   the
maximum number of Common Shares that are or may be issuable at or after such
time pursuant to Awards granted under the 2005 Plan prior to such time.

 

1

 

(c)   No
Participant shall be granted Awards during any 12-month period covering more
than 100,000 Common Shares.

 

Section 5. 
DURATION

 

Unless sooner terminated pursuant to Section 8
below, the 2005 Plan shall terminate on March 24, 2015.  No Awards shall be granted under the 2005
Plan while the 2005 Plan is suspended or after it is terminated.

 

Section 6. 
ADMINISTRATION

 

(a)   The
2005 Plan shall be administered by the Board of Directors of the Company (the “Board”)
or by a committee (the “Committee”) to which administration of the 2005 Plan,
or of part of the Plan, is delegated by the Board (in either case, the “Administrator”).  The Board shall appoint and remove members of
the Committee in its discretion in accordance with applicable laws.  At Board’s discretion, the Committee may be
comprised solely of “non-employee directors” within the meaning of Rule 16b-3
under the Exchange Act and/or “outside directors” within the meaning of Section 162(m)
of the Code.  The foregoing
notwithstanding, the Administrator may delegate nondiscretionary administrative
duties to such employees of the Company as it deems proper and the Board, in
its absolute discretion, may at any time and from time to time exercise any and
all rights and duties of the Administrator under the 2005 Plan.  Notwithstanding any provision in the 2005
Plan to the contrary, in the event that the Administrator is acting with
respect to an Award granted or to be granted to a member of the Board, such
Board member shall abstain from any vote taken by the Board or the Committee
with respect to such Award (or, if such Board member does vote on the matter,
his vote will not be counted in determining whether the matter in question has
been approved).

 

(b)  
Subject to the other provisions of the 2005 Plan, the Administrator
shall have the authority, in its discretion: (i) to grant Awards (but the
benefit payable on the exercise of an SAR shall be payable only in Common Stock
with a Fair Market Value equal to the appreciation); (ii) to determine the
Fair Market Value of the Common Shares subject to Awards; (iii) to
determine the exercise price of Awards granted (but in no event shall the
exercise price of an option or the base value of an SAR be less than the Fair
Market Value of the Common Stock on the date of grant); (iv) to determine
the persons to whom, and the time or times at which, Awards shall be granted,
and the number of shares subject to each Award; (v) to interpret the 2005
Plan; (vi) to prescribe, amend, and rescind rules and regulations
relating to the 2005 Plan; (vii) to determine the terms and provisions of
each Award granted (which need not be identical), including but not limited to,
the time or times at which Awards shall be exercisable; (vii) to modify or
amend any Award (with the consent of the Participant if the modification or
amendment is adverse to the Participant; (ix) to defer (with the consent
of the Participant) the exercise date of any Award; (x) to authorize any person
to execute on behalf of the Company any instrument evidencing the grant of an
Award; and (xi) to make all other determinations deemed necessary or advisable
for the administration of the 2005 Plan. 
The Administrator may delegate nondiscretionary administrative duties to
such employees of the Company as it deems proper.

 

(c)   All
questions of interpretation, implementation, and application of the 2005 Plan
shall be determined by the Administrator. Such determinations shall be final
and binding on all persons.

 

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Section 7. 
ADJUSTMENTS

 

If the outstanding shares of the class of Company
stock then subject to the 2005 Plan are increased, decreased or exchanged for
or converted into cash, property or a different number or kind of securities,
or if cash, property or securities are distributed in respect of such
outstanding securities, in either case as a result of a reorganization, merger,
consolidation, recapitalization, restructuring, reclassification, dividend
(other than a regular cash dividend) or other distribution, stock split,
reverse stock split or the like, or if substantially all of the property and
assets of the Company are sold, then, unless the terms of such transaction
shall provide otherwise, the Administrator shall make appropriate and
proportionate adjustments in: (i) the number and type of shares or other
securities or cash or other property that may be acquired pursuant to Awards
theretofore granted under the 2005 Plan; and (ii) the maximum number and
type of shares or other securities that may be issued pursuant to Awards
thereafter granted under the 2005 Plan. 
The determination of the Administrator as to what adjustments shall be
made pursuant to this section, and the extent thereof, shall be final and
conclusive.  No fractional shares of
stock shall be issued under the 2005 Plan on account of any such adjustment.

 

Section 8. 
AMENDMENT AND TERMINATION

 

The Board may suspend or terminate the 2005 Plan at
any time; provided, however, that no such suspension or termination shall
deprive the recipient of any Award theretofore granted under the 2005 Plan,
without the consent of such recipient, of any of his or her rights thereunder
or with respect thereto.

 

The Board may amend the 2005 Plan at any time and in
any manner subject to the following limitations:

 

(a)   No
such amendment shall deprive the recipient of any Award theretofore granted
under the 2005 Plan, without the consent of such recipient, of any of his or
her rights thereunder or with respect thereto;

 

(b)  
Except as otherwise provided in Section 7 relating to adjustments
upon changes in stock, no such amendment shall be effective unless approved by
the affirmative vote of the holders of a majority of the outstanding shares of
the Company present, represented and entitled to vote at a shareholders meeting
or by the written consent of a majority of the outstanding shares of the
Company where such shareholder approval is required by law or pursuant to the
Articles of Incorporation or Bylaws of the Company; and

 

(c)   Section 10
hereof shall not be amended more than once every six (6) months, other
than to comport with changes in the Code, the Employee Retirement Income
Security Act, or the rules and regulations thereunder.

 

Section 9. 
EFFECTIVE DATE

 

The 2005 Plan shall be effective as of March 25,
2005, the date upon which it was approved by the Board of Directors; provided,
however, that no Common Shares may be issued under this Plan until it has been
approved, directly or indirectly, by the affirmative vote of the holders (the “Shareholders”)
of a majority of the outstanding shares of the Company present, or represented,
and entitled to vote at a meeting duly held in accordance with the laws of the
State of California.

 

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