Document:

ex10-1.htm

    

     

    SOUND
FINANCIAL, INC.

    2008
EQUITY INCENTIVE PLAN

    

    INCENTIVE STOCK OPTION AWARD
AGREEMENT

    

    

    ISO No.
_______________                                                                                                Grant
Date: _______________

    

    This
Incentive Stock Option Award (“ISO”) is granted by Sound Financial, Inc.
(“Company”) to [Name]
(“Option Holder”) in accordance with the terms of this Incentive Stock Option
Award Agreement (“Agreement”) and subject to the provisions of the Sound
Financial, Inc. 2008 Equity Incentive Plan, as amended from time to time
(“Plan”).  The Plan is incorporated herein by reference.

    

    
      	
              1.

            	
              ISO
      Award.  The Company grants to Option Holder ISOs to
      purchase [Number] Shares at an
      Exercise Price of $[Number] per
      Share.  These ISOs are subject to forfeiture and to limits on
      transferability until they vest, as provided in Sections 5 and 6 of this
      Agreement and in Article V of the
Plan.

            

    

     

    
      	
              2.

            	
              Vesting
      Dates:  The ISOs shall vest as follows, subject to
      earlier vesting in the event of a termination of Service as provided in
      Section 6:

            

    

     

    

      
        
          
            	
                    Vesting Date

                  	
                    ISOs
      for

                    Number of Shares Vesting

                  
	
                    [Over
      at least 5 years beginning

                    one
      year from the Grant Date.]

                  	
                    [20%
      or less in each annual

                    installment]

                     

                  

          

        

      

    

     

    
      
      

    

    
      	
              3.

            	
              Exercise:

            	
              The
      Option Holder (or in the case of the death of the Option Holder, the
      designated legal representative or heir of the Option Holder) may exercise
      the ISOs during the Exercise Period by giving written notice to the
      Secretary of the Company in the form required by the Committee (“Exercise
      Notice”).  The Exercise Notice must specify the number of Shares
      to be purchased, which shall be at least 100 unless fewer shares remain
      unexercised.  The exercise date is the date the Exercise Notice
      is received by the Company.  The Exercise Period commences on
      the Vesting Date and expires at 5:00 p.m., Seattle, Washington time, on
      the date 10 years [five years
      for over 10% owners of Company on the Grant Date] after the Grant
      Date, subject to earlier expiration in the event of a termination of
      Service as provided in Section 6.  Any ISOs not exercised as of
      the close of business on the last day of the Exercise Period shall be
      cancelled without consideration at that
time.

            

    

     

    The
Exercise Notice shall be accompanied by payment in full of the Exercise Price
for the Shares being purchased.  Payment shall be made: (a) in cash,
which may be in the form of a check, money order, cashier's check or certified
check, payable to the Company, or (b) by delivering Shares of the Company
already owned by the Option

     

    
      
         

      

      
         

         

      

      
         

      

    

    Holder
having a Fair Market Value on the exercise date equal to the aggregate Exercise
Price to be paid, or (c) a combination of cash and such Shares.

     

    
      	
              4.

            	
              Related
      Awards:

            	
              These
      ISOs [are
      not related to
      any other Award under the Plan.] or [are
      related to stock appreciation rights granted on the Grant Date and
      designated SAR Nos. ___.  To the
      extent any of the related stock appreciation rights are exercised, the
      ISOs shall terminate with respect to the same number of
      Shares.]

            

    

     

    
      	
              5.

            	
              Transferability.  The
      Option Holder may not sell, assign, transfer, pledge or otherwise encumber
      any ISOs, except in the event of the Option Holder’s death, by will or by
      the laws of descent and distribution or pursuant to a Qualified Domestic
      Relations Order.

            

    

     

    
      	
              6.

            	
              Termination of
      Service.  If the Option Holder terminates Service for any
      reason other than in connection with a Change in Control or the death or
      Disability of the Option Holder, any ISOs that have not vested as of the
      date of that termination shall be forfeited to the Company, and the
      Exercise Period shall expire three months after that termination of
      Service, except in the case of a Termination for Cause, when it shall
      expire immediately.  If the Option Holder’s Service terminates
      on account of the Option Holder’s death or Disability, the Vesting Date
      for all ISOs that have not vested or been forfeited shall be accelerated
      to the date of that termination of Service, and the Exercise Period shall
      expire one year after that termination of
  Service.

            

    

     

    
      	
              7.

            	
              Effect
      of Change in Control.  Upon a Change in Control, the
      Vesting Date for all ISOs that have not vested or been forfeited shall be
      accelerated to the date of the earliest event constituting a Change in
      Control.

            

    

     

    
      	
              8.

            	
              Option
      Holder’s Rights.  The ISOs awarded hereby do not entitle
      the Option Holder to any rights of a shareholder of the
      Company.

            

    

     

    
      	
              9.

            	
              Delivery
      of Shares to Option Holder.  Promptly after receipt of an
      Exercise Notice and full payment of the Exercise Price for the Shares
      being acquired, the Company shall issue and deliver to the Option Holder
      (or other person validly exercising the ISO) a certificate or certificates
      representing the Shares of Common Stock being purchased, registered in the
      name of the Option Holder (or such other person), or, upon request, in the
      name of the Option Holder (or such other person) and in the name of
      another person in such form of joint ownership as requested by the Option
      Holder (or such other person) pursuant to applicable state
      law.  The Company’s obligation to deliver a stock certificate
      for Shares purchased in the exercise of an ISO can be conditioned upon the
      receipt of a representation of investment intent from the Option Holder
      (or the Option Holder’s Beneficiary) in such form as the Committee
      requires.  The Company shall not be required to deliver stock
      certificates for Shares purchased prior to: (a) the listing of those
      Shares on the Nasdaq; or (b) the completion of any registration or
      qualification of those Shares required under applicable
    law.

            

    

     

    
      
         

      

      
        ISO-2

         

      

      
         

      

    

    
      	
              10.

            	
              Notice
      of Sale of Shares.  The Option Holder (or other person
      who received Shares from the exercise of the ISOs) shall give written
      notice to the Company promptly in the event of the sale or other
      disposition of Shares received from the exercise of the ISOs within
      either: (a) two years from the Grant Date; or (b) one year from the
      exercise date for the ISOs
exercised.

            

    

     

    
      	
              11.

            	
              Adjustments
      in Shares.  In the event of any recapitalization, stock
      split, reorganization, merger, consolidation, spin-off, combination,
      exchange of securities, stock dividend, special or recurring dividend or
      distribution, liquidation, dissolution or other similar corporate
      transaction or event, the Committee, in its sole discretion, may adjust
      the number of Shares or class of securities of the Company covered by the
      ISOs or the Exercise Price of the ISOs.  The Option Holder
      agrees to execute any documents required by the Committee in connection
      with an adjustment under this Section
11.

            

    

     

    
      	
              12.

            	
              Tax
      Withholding.  The Company shall have the right to require
      the Option Holder to pay to the Company the amount of any tax that the
      Company is required to withhold with respect to such Shares, or in lieu
      thereof, to retain or sell without notice, a sufficient number of Shares
      to cover the minimum amount required to be withheld.  The
      Company shall have the right to deduct from all dividends paid with
      respect to the Shares the amount of any taxes that the Company is required
      to withhold with respect to such dividend
  payments.

            

    

     

    
      	
              13.

            	
              Plan
      and Committee Decisions are Controlling.  This Agreement,
      the award of ISOs to the Option Holder and the issuance of Shares upon the
      exercise of the ISOs are subject in all respects to the provisions of the
      Plan, which are controlling.  Capitalized terms herein not
      defined in this Agreement shall have the meaning ascribed to them in the
      Plan.  All decisions, determinations and interpretations by
      Committee respecting the Plan, this Agreement, the award of ISOs or the
      issuance of Shares upon the exercise of the ISOs shall be binding and
      conclusive upon the Option Holder, any Beneficiary of the Option Holder or
      the legal representative thereof.

            

    

     

    
      	
              14.

            	
              Option
      Holder’s Employment.  Nothing in this Agreement shall
      limit the right of the Company or any of its Affiliates to terminate the
      Option Holder’s service or employment as a director, officer or employee,
      or otherwise impose upon the Company or any of its Affiliates any
      obligation to employ or accept the services or employment of the Option
      Holder.

            

    

     

    
      	
              15.

            	
              Amendment.  The
      Committee may waive any conditions of or rights of the Company or modify
      or amend the terms of this Agreement; provided, however, that the
      Committee may not amend, alter, suspend, discontinue or terminate any
      provision of this Agreement if such action may adversely affect the Option
      Holder without the Option Holder’s written consent.  To the
      extent permitted by applicable laws and regulations, the Committee shall
      have the authority, in its sole discretion, to accelerate the vesting of
      the Shares or remove any other restrictions imposed on the Option Holder
      with respect to the Shares, whenever the Committee may determine that such
      action is appropriate by reason of any unusual or nonrecurring events
      affecting the Company, any Affiliate or
their

            

    

     

    
      
         

      

      
        ISO-3

         

      

      
         

      

    

    
      	
               
      

            	
              financial
      statements or any changes in applicable laws, regulations or accounting
      principles.

            

    

     

    
      	
              16.

            	
              Loss
      of ISO Status.  If any of the ISOs fail, for any reason,
      to qualify for the special tax treatment afforded the ISOs, they shall be
      treated as Non-Qualified Stock Options under the Plan.  The ISOs
      will lose ISO status: (a) if the Option Holder is not an employee of the
      Company or its Affiliates from the Grant date through the date three
      months before the exercise date; or (b) if the Shares acquired upon the
      exercise of the ISO are sold or disposed of within one of the time periods
      described in Section 10.

            

    

     

    
      	
              17.

            	
              Option
      Holder Acceptance.  The Option Holder shall signify
      acceptance of the terms and conditions of this Agreement and acknowledge
      receipt of a copy of the Plan by signing in the space provided below and
      returning the signed copy to the
Company.

            

    

     

    

     

    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as
of the date first above written.

     

    
 

    
      
        	 
      	 
      	
                SOUND
      FINANCIAL, INC.

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                By
      ________________________________

              
	 
      	 
      	
                Its  ________________________________

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                ACCEPTED
      BY OPTION HOLDER

              
	 
      	 
      	
                ___________________________________

              
	 
      	 
      	
                (Signature)

              
	 
      	 
      	 
      
	 
      	 
      	
                ___________________________________

              
	 
      	 
      	
                (Print
      Name)

              
	 
      	 
      	 
      
	 
      	 
      	
                ___________________________________

              
	 
      	 
      	
                (Street
      Address)

              
	 
      	 
      	
                ___________________________________

              
	 
      	 
      	
                (City,
      State & Zip Code)

              

      

    

    

    
      
         

      

      
        ISO-4

         

      

      
         

      

    

    

    
      Beneficiary
Designation:

    

     

    The
Option Holder designates the following Beneficiary to receive the Shares upon
Option Holder’s death:

     

    

    
      
        

      

    

    

    

    

    

    

     

    
      
         

      

      
        ISO-5ex10-2.htm

    
      

       

      SOUND
FINANCIAL, INC.

      2008
EQUITY INCENTIVE PLAN

      

      NON-QUALIFIED STOCK OPTION
AWARD AGREEMENT

      

      

      NQSO No.
_______________                                                                                  Grant
Date: _______________

      

      This
Non-Qualified Stock Option Award (“NQSO”) is granted by Sound Financial, Inc.
(“Company”) to [Name]
(“Option Holder”) in accordance with the terms of this Non-Qualified Stock
Option Award Agreement (“Agreement”) and subject to the provisions of the Sound
Financial, Inc. 2008 Equity Incentive Plan, as amended from time to time
(“Plan”).  The Plan is incorporated herein by reference.

      

      
        	
                1.  

              	
                NQSO
      Award.  The Company grants to Option Holder NQSOs to
      purchase [Number] Shares at an
      Exercise Price of $[Number] per
      Share.  These NQSOs are subject to forfeiture and to limits on
      transferability until they vest, as provided in Sections 5 and 6 of this
      Agreement and in Article V of the
Plan.

              

      

       

      
        	
                2.  

              	
                Vesting
      Dates:  The NQSOs shall vest as follows, subject to
      earlier vesting in the event of a termination of Service as provided in
      Section 6:

              

      

       

      
        
          
            	
                    Vesting Date

                  	
                    NQSOs
      for

                    Number of Shares Vesting

                  
	
                    [Over
      at least 5 years beginning

                    one
      year from the Grant Date.]

                  	
                    [20%
      or less in each annual

                    installment]

                  

          

        

      

      

      
        	
                3.  

              	
                Exercise:  The
      Option Holder (or in the case of the death of the Option Holder, the
      designated legal representative or heir of the Option Holder) may exercise
      the NQSOs during the Exercise Period by giving written notice to the
      Secretary of the Company in the form required by the Committee (“Exercise
      Notice”).  The Exercise Notice must specify the number of Shares
      to be purchased, which shall be at least 100 unless fewer shares remain
      unexercised.  The exercise date is the date the Exercise Notice
      is received by the Company.  The Exercise Period commences on
      the Vesting Date and expires at 5:00 p.m., Seattle, Washington time, on
      the date 10 years after the Grant Date, subject to earlier expiration in
      the event of a termination of Service as provided in Section
      6.  Any NQSOs not exercised as of the close of business on the
      last day of the Exercise Period shall be cancelled without consideration
      at that time.

              

      

       

      The
Exercise Notice shall be accompanied by payment in full of the Exercise Price
for the Shares being purchased.  Payment shall be made: (a) in cash,
which may be in the form of a check, money order, cashier's check or certified
check, payable to the Company, or (b) by delivering Shares of the Company
already owned by the Option Holder having a Fair Market Value on the exercise
date equal to the aggregate Exercise Price to be paid, or (c) a combination of
cash and such Shares.

       

       

      
        
          
          

        

        
          
          

          
          

        

        
          
          

        

      

       

       

      
        	
                4.  

              	
                Related
      Awards:  These NQSOs [are
      not related to
      any other Award under the Plan.] or [are
      related to stock appreciation rights granted on the Grant Date and
      designated SAR Nos. ___.  To the extent any of the related stock
      appreciation rights is exercised, the NQSOs shall terminate with respect
      to the same number of
Shares.]

              

      

       

      
        	
                5.  

              	
                Transferability.  The
      Option Holder may not sell, assign, transfer, pledge or otherwise encumber
      any NQSOs, except in the event of the Option Holder’s death, by will or by
      the laws of descent and distribution or pursuant to a Qualified Domestic
      Relations Order.  The Committee, in its sole and absolute
      discretion, may allow the Option Holder to transfer one or more NQSOs to
      the Option Holder’s Family Members, as provided in the
    Plan.

              

      

       

      
        	
                6.  

              	
                Termination of
      Service.  If the Option Holder terminates Service for any
      reason other than in connection with a Change in Control or the death or
      Disability of the Option Holder, any NQSOs that have not vested as of the
      date of that termination shall be forfeited to the Company, and the
      Exercise Period shall expire three months after that termination of
      Service, except in the case of a Termination for Cause, when it shall
      expire immediately.  If the Option Holder’s Service terminates
      on account of the Option Holder’s death or Disability, the Vesting Date
      for all NQSOs that have not vested or been forfeited shall be accelerated
      to the date of that termination of Service, and the Exercise Period shall
      expire one year after that termination of
  Service.

              

      

       

      
        	
                7.  

              	
                Effect
      of Change in Control.  Upon a Change in Control, the
      Vesting Date for all NQSOs that have not vested or been forfeited shall be
      accelerated to the date of the earliest event constituting a Change in
      Control.  [May
      be modified at Committee’s election for 280G planning purposes for
      executive officers or directors holding 1% or more of the Company’s
      outstanding stock.]

              

      

       

      
        	
                8.  

              	
                Option
      Holder’s Rights.  The NQSOs awarded hereby do not entitle
      the Option Holder to any rights of a shareholder of the
      Company.

              

      

       

      
        	
                9.  

              	
                Delivery
      of Shares to Option Holder.  Promptly after receipt of an
      Exercise Notice and full payment of the Exercise Price for the Shares
      being acquired, the Company shall issue and deliver to the Option Holder
      (or other person validly exercising the NQSO) a certificate or
      certificates representing the Shares of Common Stock being purchased,
      registered in the name of the Option Holder (or such other person), or,
      upon request, in the name of the Option Holder (or such other person) and
      in the name of another person in such form of joint ownership as requested
      by the Option Holder (or such other person) pursuant to applicable state
      law.  The Company’s obligation to deliver a stock certificate
      for Shares purchased in the exercise of an NQSO can be conditioned upon
      the receipt of a representation of investment intent from the Option
      Holder (or the Option Holder’s Beneficiary) in such form as the Committee
      requires.  The Company shall not be required to deliver stock
      certificates for Shares purchased prior to: (a) the listing of those
      Shares on the Nasdaq; or (b) the completion of any registration or
      qualification of those Shares required under applicable
    law.

              

      

       

       

      
        
          
          

        

        
          NQSO-2

          
          

        

        
          
          

        

      

       

       

       

      
        	
                10.  

              	
                Adjustments
      in Shares.  In the event of any recapitalization, stock
      split, reorganization, merger, consolidation, spin-off, combination,
      exchange of securities, stock dividend, special or recurring dividend or
      distribution, liquidation, dissolution or other similar corporate
      transaction or event, the Committee, in its sole discretion, may adjust
      the number of Shares or class of securities of the Company covered by the
      NQSOs or the Exercise Price of the NQSOs.  The Option Holder
      agrees to execute any documents required by the Committee in connection
      with an adjustment under this Section
10.

              

      

       

      
        	
                11.  

              	
                Tax
      Withholding.  The Company shall have the right to require
      the Option Holder to pay to the Company the amount of any tax that the
      Company is required to withhold with respect to such Shares, or in lieu
      thereof, to retain or sell without notice, a sufficient number of Shares
      to cover the minimum amount required to be withheld.  The
      Company shall have the right to deduct from all dividends paid with
      respect to the Shares the amount of any taxes that the Company is required
      to withhold with respect to such dividend
  payments.

              

      

       

      
        	
                12.  

              	
                Plan
      and Committee Decisions are Controlling.  This Agreement,
      the award of NQSOs to the Option Holder and the issuance of Shares upon
      the exercise of the NQSOs are subject in all respects to the provisions of
      the Plan, which are controlling.  Capitalized terms herein not
      defined in this Agreement shall have the meaning ascribed to them in the
      Plan.  All decisions, determinations and interpretations by
      Committee respecting the Plan, this Agreement, the award of NQSOs or the
      issuance of Shares upon the exercise of the NQSOs shall be binding and
      conclusive upon the Option Holder, any Beneficiary of the Option Holder or
      the legal representative thereof.

              

      

       

      
        	
                13.  

              	
                Option
      Holder’s Employment.  Nothing in this Agreement shall
      limit the right of the Company or any of its Affiliates to terminate the
      Option Holder’s service or employment as a director, officer or employee,
      or otherwise impose upon the Company or any of its Affiliates any
      obligation to employ or accept the services or employment of the Option
      Holder.

              

      

       

      
        	
                14.  

              	
                Amendment.  The
      Committee may waive any conditions of or rights of the Company or modify
      or amend the terms of this Agreement; provided, however, that the
      Committee may not amend, alter, suspend, discontinue or terminate any
      provision of this Agreement if such action may adversely affect the Option
      Holder without the Option Holder’s written consent.  To the
      extent permitted by applicable laws and regulations, the Committee shall
      have the authority, in its sole discretion, to accelerate the vesting of
      the Shares or remove any other restrictions imposed on the Option Holder
      with respect to the Shares, whenever the Committee may determine that such
      action is appropriate by reason of any unusual or nonrecurring events
      affecting the Company, any Affiliate or their financial statements or any
      changes in applicable laws, regulations or accounting
      principles.

              

      

       

      
        	
                15.  

              	
                Option
      Holder Acceptance.  The Option Holder shall signify
      acceptance of the terms and conditions of this Agreement and acknowledge
      receipt of a copy of the Plan by signing in the space provided below and
      returning the signed copy to the
Company.

              

      

       

      

      
        
          
          

        

        
          NQSO-3

          
          

        

        
          
          

        

      

       

      IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as
of the date first above written.

       

       

    

    
      
        
          	 
      	 
      	
                  SOUND
      FINANCIAL, INC.

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                  By
      ________________________________

                
	 
      	 
      	
                  Its  ________________________________

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
                  ACCEPTED
      BY OPTION HOLDER

                
	 
      	 
      	
                  ___________________________________

                
	 
      	 
      	
                  (Signature)

                
	 
      	 
      	 
      
	 
      	 
      	
                  ___________________________________

                
	 
      	 
      	
                  (Print
      Name)

                
	 
      	 
      	 
      
	 
      	 
      	
                  ___________________________________

                
	 
      	 
      	
                  (Street
      Address)

                
	 
      	 
      	
                  ___________________________________

                
	 
      	 
      	
                  (City,
      State & Zip Code)

                

        

       

      
        Beneficiary
Designation:

      

       

      The
Option Holder designates the following Beneficiary to receive the Shares upon
Option Holder’s death:

       

      

      
        
          

        

      

      

       

      
 

      
        
          
          

        

        
          NQSO-4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00152-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00152-of-00352.parquet"}]]