Document:

Exhibit 10.1

 

FORM OF

INCENTIVE STOCK OPTION AGREEMENT

UNDER THE

ORCHIDS PAPER PRODUCTS COMPANY STOCK INCENTIVE PLAN

 

THIS AGREEMENT, made this ____ day of _______, 20__, by and between Orchids Paper Products Company (“Company”), and __________________ (“Optionee”),

WITNESSETH THAT:

WHEREAS, the Board of Directors of the Company (“Board of Directors”) has adopted the Orchids Paper Products Company Stock Incentive Plan (the “Plan”) pursuant to which options covering shares of the common stock of the Company may be granted to employees of the Company; and

WHEREAS, Optionee is now an employee of the Company; and 

WHEREAS, the Company desires to grant to Optionee the option to purchase certain shares of its stock under the terms of the Plan, which option is intended to qualify as an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (“Code”);

NOW, THEREFORE, in consideration of the premises and of the mutual agreements hereinafter set forth, it is covenanted and agreed as follows:

1.        Grant Subject to the Plan.  This option is granted under and is expressly subject to all the terms and provisions of the Plan, and the terms of the Plan are incorporated herein by reference.  Optionee hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all the terms and provisions of the Plan.  Terms not defined herein shall have the meaning ascribed thereto in the Plan.  The Committee referred to in Section 5 of the Plan (“Committee”) has been appointed by the Board of Directors, and designated by it, as the Committee to make grants of options.

2.         Grant and Terms of Option.  Pursuant to action of the Committee, the Company grants to Optionee, effective _________, 20__ (“Date of Grant”), the option to purchase all or any part of ___________ (________) shares of the common stock of the Company (“Common Stock”), for a period of ten (10) years (five (5) years in the case of a 10% shareholder, as described in the Plan) from the Date of Grant, at the purchase price of _____________ per share, which is the Fair Market Value of such stock on the Date of Grant (110% of the Fair Market Value on the Date of Grant in the case of a 10% shareholder, as described in the Plan) (the “Option”); provided, however, that the right to exercise this Option shall be, and is hereby, restricted as follows: 

(a)       At any time during the term of this Option on or after the Date of Grant, the Option shall be exercisable for up to __% of the total number of shares to which this Option relates, and, thereafter, this Option shall become exercisable for an 

 

 

 

 

additional __% of the total number of shares to which this Option relates on each annual anniversary of the Date of Grant on which the Optionee remains employed with the Company (each, a “Vesting Date”), so that the Option shall be exercisable for 100% of the total number of shares to which this Option relates on the _______ annual anniversary of the Date of Grant, provided that the Optionee continues to be employed with the Company on the Date of Grant and each such annual anniversary thereof and subject to all terms and conditions of this Agreement and the Plan.  In the event that Optionee’s employment with the Company is terminated for any reason, whether voluntarily or involuntarily, before any Vesting Date, the portion of the Option that has not yet vested as of such date shall not vest and shall be forfeited immediately, except to the extent otherwise provided herein.  

(b)       Notwithstanding the above, in the event of a Change in Control, as defined in the Plan, Optionee may purchase 100% of the total number of shares to which this Option relates.

(c)       In no event may the Option or any part thereof be exercised after the expiration of ten (10) years (five (5) years in the case of a 10% shareholder, as described in the Plan) from the Date of Grant.

(d)       The purchase price of the shares subject to the Option may be paid for (i) in cash, (ii) in the discretion of the Committee, by tender of shares of Common Stock already owned by Optionee, or (iii) in the discretion of the Committee, by a combination of methods of payment specified in clauses (i) and (ii), all in accordance with Section 6 of the Plan.

(e)       No shares of Common Stock may be tendered in exercise of this Option if such shares were acquired by the Optionee through the exercise of an Incentive Stock Option unless (i) such shares have been held by the Optionee for at least one year and (ii) at least two years have elapsed since such prior Incentive Stock Option was granted.

3.         Anti-Dilution Provisions.  In the event that, during the term of this Agreement, there is any change in the number of shares of outstanding Common Stock of the Company by reason of stock dividends, recapitalizations, mergers, consolidations, split-ups, combinations or exchanges of shares and the like, the number of shares covered by this Agreement and the price thereof may be adjusted, to the same proportionate number of shares and price as in this original Agreement.

4.         Investment Purpose and Other Restrictions on Transfer.  Optionee represents that, in the event of the exercise by Optionee of the Option hereby granted, or any part thereof, Optionee intends to purchase the shares acquired on such exercise for investment and not with a view to resale or other distribution; except that the Committee, at its election, may waive or release this condition as it deems advisable or necessary in the event the shares acquired on exercise of the Option are registered under the Securities Act of 1933, or upon the happening of any other contingency warranting the release of such condition.  Optionee agrees that the 

 

 

2

 

 

certificates evidencing the shares acquired by Optionee on exercise of all or any part of the Option, may bear a restrictive legend, if appropriate, indicating any restrictions on the transfer thereof, which legend may be in such form as the Company shall determine to be proper.

5.         Non-Transferability.  Neither the Option hereby granted nor any rights thereunder or under this Agreement may be assigned, transferred or in any manner encumbered except by will or the laws of descent and distribution, and any attempted assignment, transfer, mortgage, pledge or encumbrance except as herein authorized, shall be void and of no effect.  The Option may be exercised during Optionee’s lifetime only by Optionee or his guardian or legal representative.  

6.         Termination of Employment.  In the event of the termination of employment of Optionee other than by death, Optionee may exercise the option, to the extent he was entitled to exercise it on the date of termination of employment, at any time within three (3) months after such termination, but not after ten (10) years (five (5) years, if applicable) from the Date of Grant.  If Optionee terminates employment on account of disability, his Option shall become fully vested (if not already fully vested) and he may exercise such option at any time within one year of the termination of his employment, but not after ten (10) years (five (5) years, if applicable) from the Date of Grant.  For this purpose, Optionee shall be deemed to be disabled if he is permanently and totally disabled within the
meaning of Section 422(c)(6) of the Code, which, as of the date hereof, shall mean that he is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.  Optionee shall be considered disabled only if he furnishes such proof of disability as the Committee may require.  To the extent that Optionee was not entitled to exercise this Option at the date of termination of employment, or to the extent this Option is not exercised within the time specified herein, this Option shall terminate.  

7.         Death of Optionee.  In the event of the death of Optionee during the term of this Agreement and while he is employed by the Company (or its Parent or a Subsidiary), or within three (3) months after the termination of his employment (or one year in the case of the termination of employment of an Optionee who is disabled as provided in above), this Option shall become fully vested (if not already fully vested) and may be exercised by a legatee or legatees of Optionee under his last will, or by his personal representatives or distributees, at any time within a period of one year after his death, but not after ten (10) years (five (5) years, if applicable) from the Date of Grant, and only if he was entitled to exercise the option at the date of his death.  To the extent that the Optionee was
not entitled to exercise this Option at the date of death, or to the extent this Option is not exercised within the time specified herein, this Option shall terminate.  

8.         Shares Issued on Exercise of Option.  It is the intention of the Company that on any exercise of the Option it will transfer to Optionee shares of its authorized but unissued stock or transfer Treasury shares, or utilize any combination of Treasury shares and authorized but unissued shares, to satisfy its obligations to deliver shares on any exercise hereof.

 

 

3

 

 

9.         Committee Administration.  The Option has been granted pursuant to a determination made by the Committee, and such Committee or any successor or substitute committee authorized by the Board of Directors or the Board of Directors itself, subject to the express terms of this option, shall have plenary authority to interpret any provision of the Option and to make any determinations necessary or advisable for the administration of the Option and the exercise of the rights herein granted, and may waive or amend any provisions hereof in any manner not adversely affecting the rights granted to Optionee by the express terms hereof.

10.       Option an Incentive Stock Option.  It is intended that this Option shall be treated as an incentive stock option under Section 422 of the Internal Revenue Code of 1986, as amended.

11.       No Contract of Employment.  Nothing contained in this Agreement shall be considered or construed as creating a contract of employment for any specified period of time.

12.       Severability.  Any word, phrase, clause, sentence or other provision herein which violates or is prohibited by any applicable law, court decree or public policy shall be modified as necessary to avoid the violation or prohibition and so as to make this Agreement enforceable as fully as possible under applicable law, and if such cannot be so modified, the same shall be ineffective to the extent of such violation or prohibition without invalidating or affecting the remaining provisions herein.

13.       Non-Waiver of Rights.  The Company’s failure to enforce at any time any of the provisions of this Agreement or to require at any time performance by Optionee of any of the provisions hereof shall in no way be construed to be a waiver of such provisions or to affect either the validity of this Agreement, or any part hereof, or the right of the Company thereafter to enforce each and every provision in accordance with the terms of this Agreement.

14.       Entire Agreement; Amendments.  No modification, amendment or waiver of any of the provisions of this Agreement shall be effective unless in writing specifically referring hereto, and signed by the parties hereto.  This Agreement supersedes all prior agreements and understandings between Optionee and the Company to the extent that any such agreements or understandings conflict with the terms of this Agreement.

15.       Assignment.  This Agreement shall be freely assignable by the Company to and shall inure to the benefit of, and be binding upon, the Company, its successors and assigns and/or any other entity which shall succeed to the business presently being conducted by the Company.

16.       Choice of Forum and Governing Law.  In light of the Company’s substantial contacts with the State of Oklahoma, the parties’ interests in ensuring that disputes regarding the interpretation, validity and enforceability of this Agreement are resolved on a uniform basis, and the Company’s execution of, and the making of, this Agreement in Oklahoma, the parties agree that: (i) any litigation, validity and/or enforceability of the Agreement, shall be filed and conducted exclusively in the state or federal courts in Mayes County, Oklahoma; and 

 

 

4

 

 

(ii) the agreement shall be interpreted in accordance with and governed by the laws of the State of Oklahoma, without regard for any conflict of law principles.  

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by the undersigned officer pursuant to due authorization, and Optionee has signed this Agreement to evidence Optionee’s acceptance of the Option herein granted and of the terms hereof, all as of the date hereof.

 

	
             
 	
            COMPANY
 
	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 
	
             
 	
            By:
 	
             
 
	
            ATTEST:
 	
             
 	
             
 
	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 
	
            Secretary 
 	
             
 	
             
 
	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 
	
             
 	
            Optionee
 

 

 

 

5EX-10.1

Exhibit 10.1

FORM OF

2009 INCENTIVE COMPENSATION PLAN

     For each calendar year during the term of the Agreement, the Compensation Committee
(“Committee”) of the Board of Directors of Fidelity will establish in its sole discretion (after
discussion with Management) the percentage of base salary available for incentive compensation
consideration and the executive incentive compensation evaluation criteria, which will include
corporate and individual performance measurements, goals and objectives, both financial and
non-financial, for such calendar year prior to or at the commencement of the calendar year. _______
will be paid incentive compensation (“Incentive Compensation”), if any, in cash as determined by
the Committee following its evaluation of Corporate and individual performance relative to the
executive compensation criteria established at the beginning of the calendar year and such other
measures or modifications as the Committee at its sole discretion, may consider.

     The Committee has determined that in 2009 _______will be eligible for 20% of base compensation
as Incentive Compensation, or such amount as may be determined by the Compensation Committee. The
Committee will evaluate Fidelity’s and _______’s 2009 performance relative to the following financial
and non-financial measurements, goals and objectives, and such other measures and modifications as
the Committee, in its sole discretion, may consider in the determination of Incentive Compensation
to be paid for 2009.

	 	1.	 	Financial Performance Measurements based on the approved 2009 Budget (These
measurements may be modified for evaluation purposes at any time during 2009 based on
changes in the strategic plan, the business plan, competitive or economic factors, changes
in regulatory or accounting rules, laws or regulations or such other factors as the
Compensation Committee, in its sole discretion, may determine.):

	 	•	 	Net income
	 
	 	•	 	Earnings per share (EPS)
	 
	 	•	 	Return on equity (ROE)
	 
	 	•	 	Return on assets (ROA)
	 
	 	•	 	Total stockholder return
	 
	 	•	 	Loan growth
	 
	 	•	 	Asset quality
	 
	 	•	 	Deposit growth
	 
	 	•	 	Net interest margin
	 
	 	•	 	Noninterest income
	 
	 	•	 	Noninterest expense management and control
	 
	 	•	 	Business unit net income

	 	2.	 	Non-financial Corporate and Individual Goals including but not limited to:

	 	•	 	Compliance with laws and regulations including Compliance and Safety and
Soundness ratings of 2 or better
	 
	 	•	 	Hiring proven lenders and managers, as identified, to grow loans and deposits or
develop, expand or improve operations and products and services and their delivery
	 
	 	•	 	Opening new branches and loan production offices to profitably expand market
presence
	 
	 	•	 	Market share growth

 

 

	 	•	 	Development/expansion of profitable products/services and delivery systems
	 
	 	•	 	Furtherance of or achievement of strategic goals and objectives
	 
	 	•	 	Individual performance based on competitive, legal, regulatory, and economic
conditions
	 
	 	•	 	Such other factors as the Compensation Committee in its sole discretion may
consider in determining the amount, if any, of Incentive Compensation to be
awarded.

     The right of _______to receive Incentive Compensation, if any, hereunder related to a calendar
year shall vest on the last day of such calendar year. In the event _______is entitled pursuant to
the Agreement and the determination of the Committee at its sole discretion to Incentive
Compensation for a period of less than a full year, the Incentive Compensation, if any, for such
year shall vest on the last day of his employment.

     Within 60 days after the end of 2009, management shall calculate and evaluate Fidelity’s and
_______’s performance relative to the 2009 Criteria and provide such calculations and evaluations to
the Committee for its review.

     The Committee shall, within 90 days after the end of 2009, make its own independent assessment
of the extent to which the 2009 Criteria and such other measures and modifications as the
Committee, in its sole discretion, may consider have been achieved; and, based on its assessment,
shall award Incentive Compensation in such amounts, if any, as it deems to have been earned by
_______.

     The Committee may revise or modify the 2009 Criteria for the year to the extent the Committee,
in the exercise of its sole and absolute discretion, believes necessary or deems equitable in light
of any unexpected or unusual or non-recurring circumstances or events, including but not limited
to, changes in accounting rules, accounting practices or procedures, tax and other laws and
regulations, or in the event of mergers, acquisitions, divestitures, unanticipated increases in
regulatory fees or costs, any extraordinary or unanticipated competitive or economic circumstances,
or any other factors as the Committee may determine.

     In addition, in determining whether or to the extent that any one or more of the 2009 Criteria
have been met, the Committee may adjust the Corporation’s financial results to exclude the effects
of any or all extraordinary items (as determined under generally accepted accounting principles)
and any other unusual or non-recurring items that distort year-to-year comparisons of results or
otherwise distort results for the year (either on an entity, business unit, or consolidated basis)
and consider the impact on results of other events, including but not limited to, charges or costs
associated with restructurings of the Corporation, discontinued operations, acquisitions or
dispositions of business entities or assets, reorganizations, mergers or divestures, the effects of
competition or economic conditions, and of changes in tax, regulatory or accounting rules, laws or
regulations.

2

 

     Payment is to be made in cash during the three-and-one-half month period in the calendar year
following the calendar year for which the Incentive Compensation is earned ending on April 15. The
Committee, in its sole discretion, during such period may make a non-refundable prepayment of a
portion of the Incentive Compensation to _______if it believes that the partial payment will not
exceed the amount of the Incentive Compensation for the prior calendar year.

	 	 	 	 	 
	 	

FIDELITY SOUTHERN CORPORATION

 	 
	 	By:  	 	 
	 
	 	Name:  	 	 
	 
	 	Title:  	Chairman 	 
	 
	 
	 	FIDELITY BANK

 	 
	 	By:  	 	 
	 
	 	Name:  	 	 
	 
	 	Title:  	Chairman 	 
	 
	 	 	 
	 	By:  	
 	 
	 
	 	Name:  	
 	 
	 
	 	Date: 	
 	 
	 

3

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"}]]