Document:

ex10-1.htm

Exhibit
10.1

    AMENDED
2001 DIRECTORS STOCK OPTION PLAN

    PENNSYLVANIA
COMMERCE BANCORP, INC.

    

    

    1.     
Purpose of
Plan

    

    The purpose of this Plan is to enable
Pennsylvania Commerce Bancorp, Inc. (hereinafter referred to as the “Company”)
to continue to attract and retain the services of non-employee directors,
directors emeritus, advisory directors, consultants and others with outstanding
abilities by making it possible for them to purchase shares of the Company's
Common Stock on terms which will give them a direct and continuing interest in
the future success of the Company's business.

    

    2.     
Definitions

    

    “Company” means
Pennsylvania Commerce Bancorp, Inc., a Pennsylvania business
corporation.

    

    “Committee of the
Board” means a committee established by the Board consisting of three or
more members of the Board. The Personnel Committee may be this
committee.

    

    “Director” for
purposes of this Plan means a director of the Company who is not regularly
employed on a salary basis by the Company or its subsidiary, Commerce
Bank/Harrisburg, N.A.

    

    “Eligible
Participant”  for purposes of this Plan means a Director,
advisory director, director emeritus, consultant, or other individual the Board
deems beneficial to the Company who is not regularly employed on a salary basis
by the Company or its subsidiary, Commerce Bank/Harrisburg, N.A.

    

    “Shares” means shares
of Common Stock of the Company.

    

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

    

    “Optionee” means a
person to whom an option has been granted under this Plan which has not expired
or been fully exercised or surrendered.

    

    3.      Limits on
Options

    

    The total number of shares for which
options may be granted under this Plan shall not exceed in the aggregate 100,000
shares. This number shall be appropriately adjusted if the number of issued
shares shall be increased or reduced by change in par value, combination, or
split-up, reclassification, distribution of a dividend payable in stock, or the
like.  The number of shares previously optioned and not theretofore
delivered and the option prices therefor shall likewise be appropriately
adjusted whenever the number of issued shares shall be increased or reduced by
any such procedure after the date or dates on which such shares were
optioned.  Shares covered by options which have expired or which have
been surrendered may again be optioned under this Plan.

    

    
      	
               
      

            	
              4.     
      Adjustment of
      Options

            

    

    

    The number of shares optioned from time
to time to individual Optionees under the Plan, and the option prices therefor,
shall be appropriately adjusted to reflect any changes in par value,
combination, split-up, reclassification, distribution of dividend payable in
stock, or the like.

    

    5.      Granting of
Options

    

    The Board, or if the Board so
determines, the Committee of the Board, is authorized to grant options to
Eligible Participants pursuant to this Plan during the calendar year 2001 and in
any calendar year thereafter to December 31, 2010, but not
thereafter.  The number of shares, if any, optioned in each year, the
Optionees to whom options are granted, and the number of shares optioned to each
Optionee selected shall be wholly within the discretion of the Board or the
Committee of the Board.  If 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    the Board
acts, however, it shall do so only upon the advice and recommendation of the
Committee of the Board upon all matters relating to the granting of options and
the administration of this Plan, including determination of the rights and
obligations of the Optionees.  Any options granted in a given year
shall be granted in February of that year.

    

    
      	
               
      

            	
              6.     
      Terms of Stock
      Options

            

    

    

    The terms of stock options granted
under this Plan shall be as follows:

    

    (a)  The option price shall be
fixed by the Board or the Committee of the Board but shall in no event be less
than 100% of the fair market value of the shares subject to the option on the
date the option is granted.  The fair market value of the shares shall
be the average of the high and low sale prices of the Common Stock as reported
on the NASDAQ Global Select Market System on the trading day immediately
preceding the date of grant or the closest preceding date if there are no high
and low sale prices available on that date.

    

    
         
(b) 
Options shall not be transferable otherwise than by will or by the laws of
descent and distribution.  No option shall be subject, in whole or in
part, to attachment, execution or levy of any kind.

    

    

    (c)  Each option shall expire and
all rights thereunder shall end ten (10) years after the date on which it was
granted, subject in all cases to earlier expiration as provided in paragraphs
(d), (e) and (f) of this Section 6 in the event an Optionee ceases to serve in
the capacity to which he has been appointed or dies.

    

    (d)  During the lifetime of an
Optionee, his/her option shall be exercisable only by him/her and only while
serving in that capacity to which he has been appointed or within that period of
time after he/she otherwise ceases so to serve as determined by the Board of
Directors (but in any event not later than the end of the period specified in
paragraph (c) of this, Section 6).

    

    (e)  If an Optionee dies within a
period during which his/her option could have been exercised by him, his/her
option may be exercised within three months after his/her death (but not later
than the end of the period specified in paragraph (c) of this Section 6) by
those entitled under his/her will or the laws of descent and distribution, but
only if and to the extent the option was exercisable by him/her immediately
prior to his/her death.

    

    (f)  If Optionee is removed as a
Director for any of the reasons specified in Section 1726(b) of the Pennsylvania
Business Corporation Law of 1988 (“BCL”), or from any other position to which he
has been appointed for reasons similar to the reasons specified in Section
1726(b) of the BCL, all options theretofore granted to the Optionee preceding
such removal shall be forfeited by Optionee and rendered
unexercisable.

    

    (g)  Subject to the foregoing
terms and to such additional or different terms regarding the exercise of the
options as the Board or the Committee of the Board may fix at the time of grant,
options may be exercised in whole or in part from time to time.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    7.  Vesting of
Options

         No
Option granted under this Plan after January 1, 2005 may be exercised within one
year from the date of the grant of
the  Option.  Options  held more than one year may
be exercised based upon the Option holding period, pursuant to the following
schedule:

     

    
      	
              Option Holding
      Period

            	 
      	 
      	
              Percent
      Vested

            
	 
      	 
      	 
      	 
      
	
              Less
      than 1 year

            	 
      	 
      	
              0%

            
	
              More
      than 1 year and less than 2 years

            	 
      	 
      	
              25

            
	
              More
      than 2 years and less than 3 years

            	 
      	 
      	
              50

            
	
              More
      than 3 years and less than 4 years

            	 
      	 
      	
              75

            
	
              More
      than 4 years

            	 
      	 
      	
              100

            

    

    

    8. 
Exercise of
Options

    

    No option granted under this Plan may
be exercised before the first to occur of (i) one year from the date of option
grant, or (ii) a Change in Control of the Company.  Thereafter,
options may be exercised in whole, or from time to time in part, for up to the
total number of shares then subject to the option, less the number of shares
previously purchased by exercise of the option.

    

    9.  Change in
Control

    

    For the purposes of this Agreement, a
Change in Control with respect to any Optionee shall be deemed to have occurred
when any of the following events shall have occurred without the prior written
consent of such Optionee:

    

    (a) A change in identity of at least
four (4) members of the Board of Directors or the addition of four (4) or more
new members to the Board of Directors, or any combination of the foregoing,
within any two (2) consecutive calendar year periods.

    

    (b) A person or group acting in concert
as described in Section 13(d)(2) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) proposes to hold or acquire beneficial ownership
within the meaning of Rule 13(d)(3) promulgated under the Exchange Act of a
number of voting shares of the Company which constitutes either more than 50%,
of the shares which voted in the election of Directors of the Company at the
Shareholder's Meeting immediately preceding such determination, or (ii) more
than 50% of the Company's outstanding voting shares.  The term
“proposes to hold or acquire”shall mean the right of a person or group to
acquire or merge (whether such right is exercisable immediately or only after
the passage of time, or upon the receipt of such regulatory approvals as are
required by applicable law) pursuant to an agreement, arrangement or
understanding (whether or not in writing) or upon the exercise or conversion of
rights, exchange rights, warrants or options, or otherwise.

    

    (c) A person or group acting in concert
as described in Section 13(d)(2) of the Exchange Act has commenced a tender or
exchange offer with respect to the voting shares of the Company or securities
convertible or exchangeable into voting shares of the Company.

    

    (d) A person or group acting in concert
as described in Section 13(d)(2) of the Exchange Act has the right to vote
shares of the Company pursuant to any agreement, arrangement or understanding
(whether or not in writing), either (i) more than 50% of the shares which voted
in the election of Directors of the Company at the Shareholder's Meeting
immediately preceding such determination, or (ii) more than 50% of the Company's
outstanding voting shares; provided, however, that such person or group acting
in concert, shall not be deemed to have acquired such shares if the agreement,
arrangement or understanding to vote such securities rises solely from a
revocable proxy given in response to a Proxy Solicitation by management of the
Company in connection with the Annual Meeting of the Shareholders of the
Company.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
 

    10. 
Reorganization of the
Company

    

    In the event that the Company is
succeeded by another corporation or Company in a reorganization, merger,
consolidation, acquisition of property or stock, separation or liquidation, the
successor corporation or Company shall assume the outstanding options granted
under this Plan or shall substitute new options for them.

    

    

    11. 
Delivery of
Shares

    

    No shares shall be delivered upon the
exercise of an option until the option price has been paid in full in cash or,
at the discretion of the Board or the Committee of the Board, in whole or in
part in the Company's Common Stock owned by the Optionee valued at fair market
value on the date of exercise. If required by the Board, no shares will be
delivered upon the exercise of an option until the Optionee has given the
Company a satisfactory written statement that he/she is purchasing the shares
for investment and not with a view to the sale or distribution of any such
shares.

     

    12. 
Administration

    

    The Board or the Committee of the Board
may make such rules and regulations and establish such procedures, as it deems
appropriate for the administration of this Plan.  In the event of a
disagreement as to the interpretation of this Plan or any amendment thereto or
any rule, regulation or procedure thereunder or as to any right or obligation
arising from or related to this Plan, the decision of the Board or the Committee
of the Board (excluding, however, any Optionee(s) affected by such dispute or
disagreement) shall be final and binding upon all persons in interest, including
the Company and its shareholders.

     

    13. 
Reservation of
Shares

    

    Shares delivered upon the exercise of
an option shall, in the discretion of the Board or the Committee of the Board,
be either shares heretofore or hereafter authorized and then unissued, or
previously issued shares heretofore or hereafter acquired through purchase in
the open market or otherwise, or some of each. The Company shall be under no
obligation to reserve or to retain in its treasury any particular number of
shares at any time, and no particular shares, whether unissued or held as
treasury shares, shall be identified as those optioned under this
Plan.

     

    14. 
Amendment of
Plan

    

    The Board may amend this Plan from time
to time as it deems desirable, however, no amendment shall (i) reduce the option
price below 100% of the fair market value of the shares subject to the option on
the date the option is granted or (ii) extend the option exercise period beyond
the period set forth in paragraph (c) of Section 6.

     

    15. 
Termination of the
Plan

    

    The Board may, in its discretion,
terminate this Plan at any time prior to December 31, 2010, but no such
termination shall deprive Optionees of their rights under their
options.

     

    16. 
Effective
Date

    

    This Plan shall become effective on
January 1, 2001, and options hereunder may be granted at any time on or after
that date.

     

    4ex10-1.htm

    Exhibit
10.1

    PENNSYLVANIA
COMMERCE BANCORP, INC.

    AMENDED
2006 EMPLOYEE STOCK OPTION PLAN

    

    

    
      	
              1.

            	
              Purpose of
      Plan

            

    

    

    The
purpose of this Plan is to enable Pennsylvania Commerce Bancorp, Inc.
(hereinafter referred to as “Commerce”) to continue to compete successfully in
attracting and retaining key employees with outstanding abilities by making it
possible for them to purchase shares of Commerce's common stock on terms which
will give them a more direct and continuing interest in the future success of
Commerce.

    

    
      	
              2.

            	
              Definitions

            

    

    

    "Commerce" means
Pennsylvania Commerce Bancorp, Inc., a Pennsylvania corporation and bank holding
company.

    

    "Board" means the
Board of Directors of Commerce.

    

    "Committee" means a
committee established by the Board.  The Committee shall consist of
three or more members of the Board.  No member of the Committee may
receive Options under the Plan.  The Compensation Committee may be the
Committee if it meets these qualifications.

    

    "Employees" means
employees, including officers, regularly employed on a salary basis by
Commerce.  “Employment with Commerce”, or words to that effect, shall
include employment by any subsidiary or affiliate of Commerce.

    

    “Fair Market Value” of
a share of Commerce's common stock shall mean its closing sale price on the
principal stock exchange on which the stock is traded on the date as of which
the value is being determined. If there is no reported sale on that date, the
Fair Market Value shall be the closing sale on the next preceding day for which
a sale was reported

    

    “ISO” means an
incentive stock option described in Section 422 of the Internal Revenue Code of
1986, as amended (the “Code”).

    

    “NQSO” means a stock
option, which is not described in Section 422 of the Code.

    

    “Option” means an
option, either in the form of an ISO or NQSO, granted in accordance with the
terms of this Plan.

    

    "Optionee" means a
person to whom an option has been granted under this Plan.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Option Price” means
the per share exercise price of the shares of Commerce common stock covered by
each option.

    

    "Shares" means shares
of common stock of Commerce.

    

    
      	
              3.

            	
              Aggregate Number of
      Shares

            

    

    

    The total
number of Shares for which Options may be granted under this Plan shall not
exceed in the aggregate 500,000 shares, subject to appropriate adjustment if the
number of issued shares shall be increased or reduced by change in par value,
combination, or split-up, reclassification, distribution of a dividend payable
in stock, or similar corporate action.  Shares covered by Options,
which have expired, which have been cancelled or otherwise surrendered may again
be available for option under this Plan.  Options may be granted in
the form of ISOs or NQSOs.

    

    
      	
              4.

            	
              Adjustment of
      Options

            

    

    

    The
number of Shares optioned from time to time to individual Optionee’s under the
Plan, and the Option Prices therefore, shall be appropriately adjusted to
reflect any changes in par value, combination, split-up, reclassification,
distribution of dividend payable in stock, or the like.

    

    
      	
              5.

            	
              Granting of
      Options

            

    

    

    The
Board, or if the Board so determines, the Committee, is authorized to grant
Options to selected employees pursuant to this Plan during the calendar year
2006 and in any calendar year thereafter to December 31, 2015.  The
number of Shares, if any, optioned in each year, the employees to whom Options
are granted, and the number of Shares optioned to each employee selected shall
be wholly within the discretion of the Board or the Committee.  The
Board may grant both ISOs and NQSOs to the same employee. Board action on
Options and administration of this Plan shall be only upon the advice and
recommendation of the Committee if the Board has appointed a
Committee.

    

    
      	
              6.

            	
              Terms of
      ISOs

            

    

    

    ISOs
granted under this Plan shall contain the following terms:

    

    
      	
               
      

            	
              (a)

            	
              The
      ISO price shall be fixed by the Board or the Committee but shall in no
      event be less than 100% of the fair market value of the Shares subject to
      the ISO on the date the ISO is granted.  The ISO price, in the
      case of an Optionee who, at the time the Option is granted, owns more than
      10% of the outstanding Shares of Commerce's common stock shall be at least
      110% of the fair market value of the Shares subject to the ISO on the date
      the ISO is granted.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (b)

            	
              ISOs
      shall not be transferable otherwise than by will or by the laws of descent
      and distribution.  No ISO shall be subject, in whole or in part,
      to attachment, execution or levy of any
kind.

            

    

    

    
      
        	 	
                (c)

              	
                Each
      ISO shall expire and all rights under the ISO shall end at the expiration
      of the exercise period for the ISO, which shall in no event be extended
      beyond its original term and shall not be more than ten years after the
      date on which it was granted.  Provided, however, that in the
      case of an Optionee who, at the time the Option is granted, owns more than
      10% of the outstanding shares of Commerce's common stock, ISOs shall
      expire no more than five years after the date on which the ISO was
      granted.

              

      

    

    

    
      	
               
      

            	
              (d)

            	
              ISOs
      shall be exercisable only by the Optionee during the Optionee’s
      lifetime.  ISOs may be exercised only while employed by Commerce
      or within (i) three years after retirement, or (ii) three months after
      termination of employment (but in any event not later than the end of the
      period fixed by the Board or the Committee of the Board in accordance with
      the provisions of paragraph (c) of Section 6).  In all other
      respects, an ISO is exercisable by retired or terminated Optionee’s only
      to the extent the ISO was exercisable by the Optionee on the last day of
      his or her employment with Commerce.  For purposes of this
      paragraph (d), retirement shall mean termination of employment by an
      Optionee who has attained age 62.  If an Optionee retires due to
      disability, the ISOs granted to the Optionee shall be exercisable within
      12 months of the date of retirement (but in any event not later than the
      end of the period fixed by the Board or the Committee of the Board in
      accordance with the provisions of paragraph (c) of this Section
      6).

            

    

    

    
      	
               
      

            	
              (e)

            	
              If
      an Optionee dies within a period during which an ISO could have been
      exercised by the Optionee, the ISO may be exercised within three years
      after the Optionee’s death (but not later than the end of the period fixed
      by the Board or the Committee of the Board in accordance with the
      provisions of paragraph (c) of this Section 6) by those entitled under the
      Optionee’s will or the laws of descent and distribution, but only if and
      to the extent the ISO was exercisable by the Optionee immediately prior to
      the Optionee’s death.

            

    

     

    
      	
               
      

            	
              (f)

            	
              If
      Optionee's employment with Commerce is terminated by Commerce due to the
      misconduct of Optionee, as determined in the reasonable judgment of
      management of Commerce, all ISOs granted to the Optionee prior to
      termination shall be forfeited by Optionee and rendered
      unexercisable.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              (g)

            	
              ISOs
      may be exercised in whole or in part from time to time, subject to the
      provisions of this Plan and to such additional or different terms
      regarding the exercise of the ISOs as the Board or the Committee of the
      Board may fix at the time of grant.

            

    

    

    
      	
               
      

            	
              (h)

            	
              ISOs
      shall not be granted to any individual pursuant to this Plan, the effect
      of which would be to permit that individual first to exercise ISOs, in any
      calendar year, for the purchase of Shares having a fair market value in
      excess of $100,000 (determined at the time of the grant of the
      ISOs).  Any Optionee may exercise ISOs for the purchase of
      Shares valued in excess of $100,000 (determined at the grant of the ISOs)
      in any calendar year, but only if the right to exercise the ISOs shall
      have first become available in prior calendar
  years.

            

    

    

    
      	
               
      

            	
              (i)

            	
              An
      ISO shall be automatically converted to an NQSO in the event all
      requirements of Section 422 of the Code are not
  met.

            

    

    

    7.           Terms of
NQSOs.

    

    
      	
               
      

            	
              NQSOs
      granted under this Plan shall contain the following
  terms:

            

    

    

    
      	
               
      

            	
              (a)

            	
              The
      NQSO price shall be fixed by the Board or the Committee, and may not be
      less than 100% of the fair market value of the Shares subject to the NQSO
      on the date the NQSO is granted.

            

    

    

    
      	
               
      

            	
              (b)

            	
              NQSOs
      shall not be transferable otherwise than by will or by the laws of descent
      and distribution.  No NQSO shall be subject, in whole or in
      part, to attachment, execution or levy of any
  kind.

            

    

    

    
      
        	
                 
      

              	
                (c)

              	
                Each
      NQSO shall expire and all rights under the NQSO shall end at the
      expiration of the exercise period for the NQSO, which shall in no event be
      extended beyond its original term and shall not be more than ten years
      after the date on which it was granted.  The Board or the
      Committee shall establish the exercise period for each NQSO, subject in
      all cases to paragraphs (d), (e) and (f) of this Section
  7.

              

      

    

    

    
      
        	
                 
      

              	
                (d)

              	
                NQSOs
      shall be exercisable only by the Optionee during the Optionee’s
      lifetime.  NQSOs may be exercised only while employed by
      Commerce or within (i) three years after retirement, or (ii) three months
      after termination of employment (but in any event not later than the end
      of the period fixed by the Board or the Committee of the Board in
      accordance with the provisions of 

              

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        	 	 	paragraph
      (c) of Section 7).  In all other respects, an NQSO is
      exercisable by retired or terminated Optionees only to the extent the NQSO
      was exercisable by the Optionee on the last day of his or her employment
      with Commerce.  For purposes of this paragraph (d), retirement
      shall mean termination of employment by an Optionee who has attained age
      62.  If an Optionee retires due to disability, the NQSOs granted
      to the Optionee shall be exercisable within 12 months of the date of
      retirement (but in any event not later than the end of the period fixed by
      the Board or the Committee of the Board in accordance with the provisions
      of paragraph (c) of this Section
7).

      

    

    

    
      	
               
      

            	
              (e)

            	
              If
      an Optionee dies within a period during which an NQSO could have been
      exercised by the Optionee, the NQSO may be exercised within three years
      after the Optionee’s death (but not later than the end of the period fixed
      by the Board or the Committee of the Board in accordance with the
      provisions of paragraph (c) of this Section 7) by those entitled under the
      Optionee’s will or the laws of descent and distribution, but only if and
      to the extent the NQSO was exercisable by the Optionee immediately prior
      to the Optionee’s death.

            

    

    

    
      	
               
      

            	
              (f)

            	
              If
      Optionee's employment with Commerce is terminated by Commerce due to the
      misconduct of Optionee, as determined in the reasonable judgment of
      management of Commerce, all NQSOs granted to the Optionee prior to
      termination shall be forfeited by Optionee and rendered
      unexercisable.

            

    

    

    
      	
               
      

            	
              (g)

            	
              NQSOs
      may be exercised in whole or in part from time to time, subject to the
      provisions of this Plan and to such additional or different terms
      regarding the exercise of the NQSOs as the Board or the Committee of the
      Board may fix at the time of grant.

            

    

    

    
      	
              8.

            	
              Vesting of
      Options

            

    

    

    No Option
granted under this Plan may be exercised within one year from the date of the
grant of the Option.  Options held more than one year may be exercised
based upon the Option holding period, pursuant to the following
schedule:

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	 
      	
                Option Holding
      Period

              	
                Percent Vested

              
	 
      	 
      	 
      
	 
      	
                Less
      than 1 year

              	
                  0%

              
	 
      	
                More
      than 1 year and less than 2 years

              	
                 25

              
	 
      	
                More
      than 2 years and less than 3 years

              	
                 50

              
	 
      	
                More
      than 3 years and less than 4 years

              	
                 75

              
	 
      	
                More
      than 4 years

              	
                100

              

      

    

    

    

    
      	
              9.

            	
              Exercise Eligibility
      Period Following Termination of
  Employment

            

    

    

    Options
granted under this Plan less than one year prior to date of termination of
employment are not exercisable under any circumstances.  Options
granted at least one year prior to termination of employment must be exercised
prior to the expiration date of the Option and within the period set forth below
depending upon the reason for termination:

    

    
      
        	 
      	 
      	
                Options
      Eligible

              	
                Exercise
      Eligibility

              
	 
      	
                Termination Reason

              	
                for
      Exercise 

              	
                Period

              
	 
      	 
      	 
      	 
      
	 
      	
                Retirement

              	
                100%
      of outstanding

              	
                3
      years from

              
	 
      	 
      	
                Options

              	
                retirement
      date

              
	 
      	 
      	 
      	 
      
	 
      	
                Death
      while employed

              	
                100%
      of outstanding

              	
                3
      years from

              
	 
      	 
      	
                Options

              	
                date
      of death

              
	 
      	 
      	 
      	 
      
	 
      	
                Total
      & permanent

              	
                100%
      of outstanding

              	
                1
      year from termination

              
	 
      	
                disability

              	
                Options

              	
                date

              
	 
      	 
      	 
      	 
      
	 
      	
                Misconduct

              	
                None

              	
                Not
      applicable

              
	 
      	 
      	 
      	 
      
	 
      	
                Any
      other reason

              	
                Any
      Option 100% vested

              	
                3
      months from

              
	 
      	 
      	
                plus
      the vested portion

              	
                termination
      date

              
	 
      	 
      	
                of
      the next oldest Option

              	 
      

      

    

    

    
      	
              10.

            	
              Reorganization of
      Commerce

            

    

    

    In the
event that Commerce is succeeded by another corporation or bank in a
reorganization, merger, consolidation, acquisition of property or stock,
separation or liquidation, the successor corporation or bank shall assume the
outstanding Options granted under this Plan or shall substitute new Options for
them.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              11.

            	
              Delivery of
      Shares

            

    

    

    No Shares
shall be delivered upon the exercise of an Option until the Option price has
been paid in full in cash or, at the discretion of the Board or the Committee,
in whole or in part in Commerce's common stock owned by the Optionee valued at
fair market value on the date of exercise.  If required by the Board,
no Shares will be delivered upon the exercise of an Option until the Optionee
has given Commerce a satisfactory written statement that he is purchasing the
Shares for investment and not with a view to the sale or distribution of
Shares.

    

    
      	
              12.

            	
              Continuation of
      Employment

            

    

    

    Neither
this Plan nor any Option granted under this Plan shall confer upon any employee
any right to continue in the employ of Commerce or limit in any respect the
right of Commerce or to terminate the employee’s employment at any
time.

    

    
      	
              13.

            	
              Administration

            

    

    

    The Board
or the Committee may make rules and regulations and establish procedures as it
deems appropriate for the administration of this Plan.  In the event
of a disagreement as to the interpretation of this Plan, any amendment thereto,
any rule, regulation or procedure thereunder, or as to any right or obligation
arising from or related to this Plan, the decision of the Board or the Committee
shall be final and binding upon all persons in interest, including Commerce,
Optionees, and shareholders of Commerce.

    

    
      	
              14.

            	
              Reservation of
      Shares

            

    

    

    Shares
delivered upon the exercise of an Option shall, in the discretion of the Board
or the Committee, be either authorized but unissued Shares, or previously issued
Shares acquired by Commerce through purchase in the open market or otherwise, or
a combination of both.  Commerce shall be under no obligation to
reserve or to retain in its treasury any particular number of Shares at any
time, and no particular Shares, whether unissued or held as treasury Shares,
shall be identified as those optioned under this Plan.

    

    
      	
              15.

            	
              Amendment of
      Plan

            

    

    

    The Board
without further action by the shareholders may amend this Plan from time to time
as it deems desirable.  However, no such amendment shall increase the
maximum number of Shares for which Options may be granted, reduce the minimum
Option Price, extend the maximum Option period, or permit the granting of
Options after December 31, 2015.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    
      	
              16.

            	
              Termination of the
      Plan

            

    

    

    The Board
may, in its discretion, terminate this Plan at any time prior to December 31,
2015.  Termination of the Plan shall not deprive Optionees of Options
granted prior to termination of the Plan.

    

    
      	
              17.

            	
              Effective Date -
      Shareholder Approval

            

    

    

    This Plan
shall become effective as of January 1, 2006, subject to approval by the holders
of a majority of the shares casting a vote at a meeting of shareholders of
Commerce where a quorum is present.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00150-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00150-of-00352.parquet"}]]