Document:

EX-4.5

  EX 4.5

   

  TC BANCSHARES, INC.

  2022 EQUITY INCENTIVE PLAN

   

  STOCK OPTION AGREEMENT

   

  THIS STOCK OPTION AGREEMENT (this “Agreement”) is entered into as of this ___ day of ________, 20__, between TC Bancshares, Inc., a Georgia corporation (the “Company”), and _________ (the “Optionee”).

   

  WHEREAS, on July 20, 2022, the Board of Directors of the Company adopted the “TC Bancshares, Inc. 2022 Equity Incentive Plan” (the “Plan”), and recommended that the Plan be approved by the Company’s shareholders; 

   

  WHEREAS, the Company’s shareholders approved the Plan at a special meeting of shareholders held on September 21, 2022; 

   

  WHEREAS, the Committee has granted the Optionee a stock option to purchase the number of shares of the Company’s common stock as set forth below, and in consideration of the granting of that stock option the Optionee intends to remain in the employ of the Company; 

   

  WHEREAS, the Company considers it desirable and in its best interest that the Optionee be provided an inducement to acquire an ownership interest in the Company and an additional incentive to advance the interest of the Company through the grant of an option to purchase shares of common stock of the Company pursuant to the Plan; and

   

  WHEREAS, the Company and the Optionee desire to enter into a written agreement with respect to such option in accordance with the Plan.

   

  NOW, THEREFORE, as an employment incentive and to encourage stock ownership, and also in consideration of the mutual covenants contained herein, the Company and the Optionee agree as follows.

   

  1.Incorporation of Plan. This option is granted pursuant to the provisions of the Plan and the terms and definitions of the Plan are incorporated herein by reference and made a part hereof. A copy of the Plan has been delivered to, and receipt is hereby acknowledged by, the Optionee.

   

  2.Grant of Option.  Subject to the provisions stated in this Agreement, the Company hereby evidences its grant to the Optionee, not in lieu of salary or other compensation, of the right and option (the “Option”) to purchase the number of shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), set forth below, exercisable in the amounts and at the time specified below.  This Option is intended to be an [Incentive Stock Option/Nonqualified Stock Option].  [If an Incentive Stock Option, also include the following sentence:  To the extent this Option exceeds the limits on Incentive Stock Options under Section 6(e) of the Plan, any excess Options shall be Nonqualified Stock Options.]

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	Date of Grant:
	 
	 

	Number of Shares:
	 
	 

	Exercise Price:
	 
	 

   

  		
	Option Vesting Schedule:
	Options are exercisable with respect the shares of Common Stock as follows, subject in each case to continuous employment with or service as a director of the Company or any Participating Employer through each such vesting date, and subject to the provisions of Section 7 of this Agreement:

  	 

  			
	No. of Shares
	 
	Vesting Date

	 
	 
	[grant date]

	 
	 
	[1st anniversary of grant date]

	 
	 
	[2nd anniversary of grant date]

	 
	 
	[3rd anniversary of grant date]

	 
	 
	[4th anniversary of grant date]

  		 

  Option Exercise Period:	All options expire and are void unless exercised on or before _____________.  [10th anniversary of grant date.]

   

  3.Exercise Terms.  The Optionee must exercise the Option for at least the lesser of 100 shares or the number of shares of Stock as to which the Option remains unexercised but exercisable.  If this Option is not exercised with respect to all or any part of the shares subject to this Option prior to its expiration, the shares with respect to which this Option was not exercised shall no longer be subject to this Option.

   

  4.Restrictions on Transferability.  No Option shall be transferable by an Optionee other than by will or the laws of descent and distribution or pursuant to a Qualified Domestic Relations Order.  During the lifetime of an Optionee, Options shall be exercisable only by such Optionee (or by such Optionee’s guardian or legal representative, should one be appointed).  If the shares purchased pursuant to the exercise of an Incentive Stock Option are transferred by the Optionee, except pursuant to the Optionee's will or the laws of descent and distribution, prior to such date which is the later of two years after the grant of such Incentive Stock Option or one year after the transfer of the shares to the Optionee pursuant to the exercise of such Incentive Stock Option, the transfer is a "disqualifying disposition" for tax purposes and the Optionee shall report such transfer to the Company.

   

  5.Notice of Exercise of Option.  This Option may be exercised by the Optionee, or by the Optionee’s administrators, executors or personal representatives, by a written notice (in substantially the form of a Notice of Exercise approved by the Company) signed by the Optionee, 

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  or by such administrators, executors or personal representatives, and delivered or mailed to the Company as specified in this Agreement to the attention of the Chief Financial Officer or such other officer as the Company may designate.  Any such notice shall (a) specify the number of shares of Common Stock which the Optionee or the Optionee’s administrators, executors or personal representatives, as the case may be, then elects to purchase hereunder, (b) contain such information as may be reasonably required by the Company pursuant to this Agreement, and (c) be accompanied by (i) consideration in the form of any cashless exercise (such consideration having been approved by the Administrator upon the granting of this Option), including by means of a net exercise whereby the Company issues net Shares and the remaining balance of the Shares to satisfy the Participant’s tax withholding obligations; (ii) unrestricted shares of Common Stock already owned by the Participant (based on the Fair Market Value on the date the Option is exercised); (iii) any other form of consideration subsequently approved by the Administrator and permitted by applicable law; or (iv) a combination of a certified or cashier’s check accompanied by a number of shares of stock which equal under (i), (ii) or (iii) the total Exercise Price applicable to such shares purchased hereunder. Upon receipt of any such notice and accompanying payment, and subject to the terms hereof, the Company agrees to issue to the Optionee or the Optionee’s administrators, executors or personal representatives, as the case may be, stock certificates for the number of shares specified in such notice registered in the name of the person exercising this Option.

   

  6.Adjustment in Option.  The number of Shares subject to this Option, the Exercise Price, and other matters are subject to adjustment during the term of this Option in accordance with Sections 3, 4, 6, 9, 10, 11 and 14 of the Plan. In the event of a Change of Control, (i) this Option will automatically vest in full and (ii) any performance conditions imposed with respect to this Option shall be deemed to be fully achieved immediately prior to the consummation of the Change of Control.

   

  7.Termination of Employment or Service. 

   

  (a)In the event of the termination of the Optionee’s employment with or service to (including due to retirement) the Company or any Participating Employer, other than a termination that is either (i) for Cause, or (ii) for reasons of death or Permanent and Total Disability, all vesting of the Option shall cease and the Optionee may exercise the vested portion of the Option at any time within a period ending on the earlier of (a) the last day of the period ending 90 days after such termination of employment or (b) the expiration date of this Option, to the extent of the number of shares which were vested but not exercised or otherwise forfeited as of the date of such termination (and thereafter this Option shall be deemed terminated and shall not be or become exercisable).

   

  (b)In the event of a termination of the Optionee’s employment or service for Cause, this Option, to the extent not previously exercised, shall terminate immediately and shall not thereafter be or become exercisable.

   

  (c)In the event of termination of employment or service because of the Optionee’s Permanent and Total Disability, this Option will automatically vest in full, any performance conditions imposed with respect to this Option shall be deemed to be fully achieved, 

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  and the Optionee (or his or her personal representative) may exercise the vested portion of the Option, within a period ending on the earlier of (a) the last day of the one-year period following the Optionee’s Permanent and Total Disability or (b) the expiration date of this Option, to the extent of the number of shares which were vested but not exercised or otherwise forfeited as of the date of such termination.

   

  (d)In the event of the Optionee’s death while employed by the Company or serving as a director of the Company or any Participating Employer or within 90 days after a termination of such employment (if such termination was not for Cause), the appropriate persons described in Section 5 hereof or persons to whom all or a portion of this Option is transferred in accordance with Section 4 hereof may exercise this Option at any time within a period ending on the earlier of (a) the last day of the twelve month period following the Optionee’s death or (b) the expiration date of this Option.  If the Optionee was an employee or director of the Company or any Participating Employer at the time of death, this Option will automatically vest in full and any performance conditions imposed with respect to this Option shall be deemed to be fully achieved.  If the Optionee’s employment terminated prior to his or her death, all vesting of the Option shall have ceased as of the date of termination, and this Option may be exercised only to the extent of the number of shares covered by this Option which were vested but not exercised or otherwise forfeited as of the date of such termination.

   

  This Option does not confer upon the Optionee any right with respect to continuance of employment by the Company or by any Participating Employer.  This Option shall not be affected by any change of employment so long as the Optionee continues to be an employee of the Company or any Participating Employer.

   

  8.Compliance with Regulatory Matters.  The Optionee acknowledges that the issuance of capital stock of the Company is subject to limitations imposed by federal and state law and the Optionee hereby agrees that the Company shall not be obligated to issue any shares of Stock upon exercise of this Option that would cause the Company to violate law or any rule, regulation, order or consent decree of any regulatory  authority (including without limitation the Securities and Exchange  Commission) having jurisdiction over the affairs of the Company. The Optionee agrees that he or she will provide the Company with such information as is reasonably requested by the Company or its counsel to determine whether the issuance of Stock complies with the provisions described by this Section 8.

   

  9.Miscellaneous.

   

  (a)This Agreement shall be binding upon the parties hereto and their representatives, successors and assigns.

   

  (b)Unless the context clearly indicates to the contrary, all capitalized terms used herein shall have the meanings as set forth in this Agreement, or in the event a capitalized term is not clearly described in this Agreement, the meanings as set forth in the Plan.

   

  (c)This Agreement is executed and delivered in, and shall be governed by the laws of, the State of Georgia.

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  (d)Income realized by the Optionee pursuant to this Agreement shall not be included in the Grantee’s earnings for the purpose of any benefit plan of the entity in which the Optionee may be enrolled or for which the Optionee may become eligible unless otherwise specifically provided for in such plan.

   

  (e)Any requests or notices to be given hereunder shall be deemed given, and any elections or exercises to be made or accomplished shall be deemed made or accomplished,  upon actual delivery thereof to the designated recipient, or three days after deposit thereof in the United States mail, registered, return receipt requested and postage prepaid, addressed, if to the Optionee, at the address set forth below and, if to the Company, to the executive offices of the Company at 131 South Dawson Street, Thomasville, GA 31792, Attn: Chairperson of the Compensation Committee.

   

  (f)This Agreement may not be modified except in writing executed by each of the parties hereto.  Notwithstanding the previous sentence, the Administrator reserves the right to amend the terms of this Agreement as may be necessary or appropriate to avoid adverse tax consequences under Section 409A of the Code or to comply with any requirements under the Company’s “clawback” policy regarding incentive compensation, or such “clawback” requirements under the Sarbanes–Oxley Act of 2002 or the Dodd-Frank Wall Street Reform and Consumer Protection Act.  

   

   

  [Signatures appear on the following page.]

   

   

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  IN WITNESS WHEREOF, the Board of Directors of the Company has caused this Stock Option Agreement to be executed on behalf of the Company and the Company’s seal to be affixed hereto and attested by the Secretary or an Assistant Secretary of the Company, and the Optionee has executed this Stock Option Agreement under seal, all as of the day and year first above written.

   

  				
	TC BANCSHARES, INC.

	By:
	 
	 

	Name: 
	 
	 

	Title:  
	 
	 

                              	 

  				
	OPTIONEE

	By:
	 
	 

	Name: 
	 
	 

	Address:
	 
	 

   

  Attachments:

  1.2022 Equity Incentive Plan

   

  6EX-4.6

  												EX 4.6

   

  TC BANCSHARES, INC.

  2022 EQUITY INCENTIVE PLAN

   

  Restricted Stock Award Grant Notice

   

  		
	Participant Name:
	_________

	Company:
	TC Bancshares, Inc.

	Notice: 
	A summary of the terms of your grant of Restricted Shares is set out in this notice (the “Grant Notice”) but subject always to the terms of the TC Bancshares, Inc. 2022 Equity Incentive Plan (the “Plan”) and the Restricted Stock Award Agreement (the “Award Agreement”).  In the event of any inconsistency between the terms of this Grant Notice, the terms of the Plan and the Award Agreement, the terms of the Plan and the Award Agreement shall prevail.

	Type of Award:
	Restricted Stock Award

	Stock:
	Shares of common stock, $0.01 par value per share, of the Company

	Number of Shares
of Stock Subject
to Grant: 
	 
 
_________ shares

	Grant Date:
	_________

	Vesting Schedule:
	Restricted Shares granted will vest (i.e., restrictions shall lapse) in accordance with the following schedule, provided that you have provided continuous employment with or service as a director of the Company or any Participating Employer through each such vesting date:

   

  			
	 
	No. of Shares
_________
_________
_________
_________
_________
	Vesting Date
[grant date]
[1st anniversary of grant date]
[2nd anniversary of grant date]
[3rd anniversary of grant date]
[4th anniversary of grant date]

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	In the event of a Change of Control, all unvested Restricted Shares will automatically vest in full immediately prior to the consummation of the Change of Control.
In the event of termination of employment with, or service as a director to, the Company or any Participating Employer because of Participant’s death or disability, all unvested Restricted Stares will automatically vest in full immediately prior to such termination of employment or service.

	Acceptance:
	You acknowledge receipt of, and understand and agree to, this Grant Notice, the Award Agreement and the Plan. You further acknowledge that as of the Grant Date, this Grant Notice, the Award Agreement and the Plan set forth the entire understanding between you and the Company or any Participating Employer regarding the Restricted Shares and supersede all prior oral and written Award Agreements on the subject.

   

  [Signatures appear on the following page.]

   

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  IN WITNESS WHEREOF, the Company and the Participant have duly executed and delivered this Grant Notice as of the Grant Date.

   

  					
	TC bancshares, inc.
 
	 
 
	PARTICIPANT
 

	By:
	 
	 
	 

	Print Name:
	 
	 
	[Name]

	Title: 
	 
	 
	Address:
	 

	 
	 
	 
	 

	 
	 
	 
	 

   

  Attachments:

  1.Restricted Stock Award Agreement

  2.2022 Equity Incentive Plan

   

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  TC bancshares, inc.

  Restricted Stock Award Agreement

  Pursuant to the Restricted Stock Grant Notice (the “Grant Notice”) and this Restricted Stock Award Agreement (this “Award Agreement”), TC Bancshares, Inc. (the “Company”) has granted the Participant, as identified in the Grant Notice, the number of restricted shares of the Company’s Common Stock under the Company’s 2022 Equity Incentive Plan (the “Plan”) indicated in the Grant Notice (the “Restricted Shares”).  Capitalized terms not defined in this Award Agreement but defined in the Plan or the Grant Notice will have the same definitions as in the Plan or the Grant Notice, respectively.

  1.Restrictions and Vesting Schedule.  The Restricted Shares are being awarded to Participant subject to the transfer and forfeiture conditions set forth in this Award Agreement and the Plan (the “Restrictions”). Subject to the provisions of Section 2 below, the Restricted Shares will vest, and Restrictions shall lapse, as provided in the Participant’s Grant Notice. The period from the Date of Grant through the last Vesting Date set forth in the Grant Notice is referred to as the “Restriction Period.” Except to the extent vesting accelerates pursuant to the terms of the Grant Notice or Section 2 below, any unvested Restricted Shares shall be automatically forfeited upon Participant’s Termination from Service. 

  2.Acceleration of Vesting upon Certain Events. In the event of a Change of Control, all unvested Restricted Shares will automatically vest in full immediately prior to the consummation of the Change of Control.  In the event of termination of employment with, or service as a director to, the Company or any Participating Employer because of Participant’s death or disability, all unvested Restricted Stares will automatically vest in full immediately prior to such termination of employment or service.

  3.Assignment or Transfer of Shares. Unless otherwise provided by the Board, prior to the vesting of the Restricted Shares, Participant may not directly or indirectly, by operation of law or otherwise, voluntarily or involuntarily, sell, assign, pledge, encumber, charge or otherwise transfer any of the Restricted Shares still subject to Restrictions. The Restricted Shares shall be forfeited if Participant violates or attempts to violate these transfer Restrictions. After any Stock has been released from the Restrictions, Participant shall not directly or indirectly, by operation of law or otherwise, voluntarily or involuntarily, sell, assign, pledge, encumber, charge or otherwise transfer any interest in the Stock except in compliance with the provisions herein and the provisions of applicable securities laws.

  4.Delivery of Shares. The Company shall enter such Award of Restricted Stock in book entry form with appropriate restrictions noted with respect thereto.

  5.Rights of Participant. Subject to the provisions of this Award Agreement, Participant shall exercise all rights and privileges of a shareholder of the Company with respect to the Restricted Shares deposited pursuant to Section 4.  Participant shall be deemed to be the holder for purposes of receiving any dividends that may be paid with respect to such shares of Stock and for the purpose of exercising any voting rights relating to such shares of Stock, even if some or all of such shares of Stock have not yet vested and been released from the Restrictions.

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  6.Restrictive  Legends. The Company’s book entry notations representing the Stock shall have been noted with a legend in substantially the following form:

  “THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS SET FORTH IN A RESTRICTED STOCK AWARD AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR SUCH HOLDER’S PREDECESSOR IN INTEREST, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY.  ANY TRANSFER OR ATTEMPTED TRANSFER OF ANY SHARES SUBJECT TO SUCH RESTRICTED STOCK AWARD IS VOID WITHOUT THE PRIOR EXPRESS WRITTEN CONSENT OF THE COMPANY.”

  The Company shall remove or cause the removal of the foregoing legend as and to the extent of the lapse of the applicable Restrictions.

  7.Section 83(b) Election. Participant understands that Section 83(a) of the Code taxes as ordinary income the difference between the amounts paid for the Stock and the fair market value of the Stock as of the date any Restrictions on the Stock lapse.  Participant understands that Participant may elect to be taxed at the time the Restricted Shares are granted rather than when and as the Restrictions lapse, by filing an election under Section 83(b) (“83(b) Election”) of the Code with the Internal Revenue Service within 30 days from the Date of Grant.  Even if the fair market value of the Restricted Shares at the time of the Grant equals the amount paid for the Stock, if any, the 83(b) Election must be made to avoid income under Section 83(a) in the future.  Participant understands that failure to file such an 83(b) Election in a timely manner may result in adverse tax consequences for Participant.  Participant further acknowledges and understands that it is Participant’s decision as to whether to file such 83(b) Election, and neither the Company nor the Company’s legal or financial advisors shall have any obligation or responsibility with respect to such filing.  Participant acknowledges that the foregoing is only a summary of the effect of United States federal income taxation with respect to purchase of the Stock hereunder, and does not purport to be complete.  Participant further acknowledges that the Company has directed Participant to seek independent advice regarding the applicable provisions of the Code, the income tax laws of any municipality, state or foreign country in which Participant may reside, and the tax consequences of Participant’s death.  Participant assumes all responsibility for filing an 83(b) Election and paying all taxes resulting from such election or the lapse of the Restrictions on the Stock.  

  8.Refusal to Transfer. The Company shall not be required to transfer on its books any shares of Stock of the Company which shall have been transferred in violation of any of the provisions set forth in this Award Agreement or the Plan. 

  9.No Employment Rights. This Award Agreement is not an employment contract and nothing in this Award Agreement shall confer upon the Participant any right to continued employment with or service to the Company or any Participating Employer, as the case may be, nor shall it interfere in any way with the right of the Company or any Participating Employer to terminate the employment or service of the Participant at any time.

  10.Governing Plan Document. The Restricted Shares granted hereunder are subject to all the provisions of the Plan, the provisions of which are hereby incorporated by reference herein, and is 

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  further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan. Capitalized terms used herein and not defined shall have the meanings assigned in the Plan. In the event of any conflict between the provisions of this Award Agreement and those of the Plan, the provisions of the Plan shall control.

  11.Adjustments. The Restricted Shares shall be subject to adjustments as provided in Sections 3, 4, 7, 9, 10, 11 and 14 of the Plan.

  12.Acknowledgements. No waiver of any breach of any provision of this Award Agreement by the Company shall be construed to be a waiver of any succeeding breach or as a modification of such provision.  

  13.Miscellaneous. 

  (a)Notices. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) when personally delivered to the party to be notified; (b) when sent by confirmed facsimile to the party to be notified; (c) five business days after deposit in the United States Mail postage prepared by certified or registered mail with return receipt requested at any time other than during a general discontinuance of postal service due to strike, lockout, or otherwise (in which case notice, request, waiver or other communication shall be effectively given upon receipt) and address to the party to be notified as set forth above; or (d) two business days after deposit with a national recognized overnight delivery service, postage prepaid, addressed to the party to be notified as set forth above with next-business-day delivery guaranteed. A party may change its notice address by giving the other party ten days’ written of the new address in the manner set forth above. 

  (b)Successors and Assigns.  This Award Agreement shall inure to the benefit of the successors and assigns of the Company and, subject to the restrictions on transfer herein set forth, be binding upon Participant, Participant’s successors, and assigns.  

  (c)Governing Law.  This Award Agreement shall be governed by and construed in accordance with the laws of the State of Georgia, without reference to principles of conflict of laws.  

  (d)Entire Award Agreement; Amendment.  This Award Agreement, along with the Grant Notice and the Plan constitute the entire Award Agreement between the parties with respect to the subject matter hereof and supersedes and merges all prior agreements or understandings, whether written or oral.  This Award Agreement may only be amended as described in Section 11 of the Plan.

   

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  ATTACHMENT A

  ELECTION UNDER SECTION 83(B)

  OF THE INTERNAL REVENUE CODE OF 1986

   

  The undersigned taxpayer hereby elects, pursuant to §83(b) of the Internal Revenue Code, to include in taxpayer’s gross income or alternative minimum tax income, as applicable, for the current taxable year, the amount of any income that may be taxable to taxpayer in connection with taxpayer’s receipt of the property described below:

   

  1.The taxpayer’s name, address and taxpayer identification number are as follows:

   

  Name:

  Address:

   

  SS#

  	 

  2.Description of property with respect to which the election is being made:

   

  _________ shares of Common Stock of TC Bancshares, Inc., a Georgia corporation (the “Company”), granted pursuant to a Restricted Stock Award under the Company’s Equity Incentive Plan. 

   

  3.The date on which the property was transferred is.

   

  The taxable year for which the election is made is calendar year      . 

   

  4.The property is subject to the following restrictions:

   

  The Restricted Shares are subject to a vesting schedule pursuant to which restrictions on transfer will lapse.

   

  5.The fair market value at time of transfer (determined without regard to any restriction other 	than a restriction which by its terms will never lapse) of such property is $_________.

   

  6.Furnishing statement to employer:

   

  A copy of this statement has been furnished to the Company.

   

  			
	Dated:
	 
	 

	 
	Taxpayer:
	 

   

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