Document:

Exhibit 10.2(h)

 

Form of employee Incentive Stock Option Award Pursuant
to 1996 Stock Incentive Plan

(for award granted in paper)

 

INCENTIVE STOCK OPTION AWARD

PURSUANT TO NETBANK, INC.

1996 STOCK INCENTIVE PLAN

 

THIS
AWARD is made as of the Grant Date by NETBANK, INC. (the “Company”) to                               
(the “Optionee”).

 

Upon
and subject to the Terms and Conditions attached hereto and incorporated herein
by reference, the Company hereby awards as of the Grant Date to Optionee an
incentive stock option (the “Option”), as described below, to purchase the
Option Shares.

 

A.            Grant
Date:

 

B.                                     Type of
Option:  Incentive Stock Option, as
defined under Section 422(b) of the Internal Revenue Code of 1986, as amended
(the “Code”), granted pursuant to the NetBank 1996 Stock Incentive Plan (the “Plan”).

 

C.                                     Option
Shares:  All or any part of                       
shares of the Company’s common stock, $.01 par value per share (“Common Stock”),
subject to adjustment as provided in the attached Terms and Conditions.

 

D.                                    Exercise
Price:  $                                    
per share of Common Stock, subject to adjustment as provided in the attached
Terms and Conditions. The Exercise Price is, in the judgment of the Committee,
not less than 100% of the Fair Market Value of a share of Common Stock as of
the Grant Date or, in the case of an Over 10% Owner, not less than 110% of the
Fair Market Value of a share of Common Stock on the Grant Date.

 

E.                                      Option
Period:  The Option may be exercised as
to all or any portion of the Vested Option Shares, but only during the Option
Period, which commences following the Grant Date and ends, generally, on the
earliest of (a) the tenth (10th) anniversary of the Grant Date; or (b) the
later of the date (i) ninety days (90) following the date the Optionee ceases
to be an employee of the Company for any reason other than death or Disability,
or (ii) twelve months following the date the Optionee ceases to be an employee
of the Company due to death or Disability; provided that the Option may be
exercised as to no more than the Vested Option Shares, determined pursuant to
the Vesting Schedule. Note that other
limitations to exercising the Option, as described in the attached Terms and
Conditions, may apply.

 

 

F.                                      Vesting
Schedule:  The Option Shares shall become
vested in accordance with the attached Vesting Schedule. All or a portion of
the Option Shares may become vested on an earlier date as provided in Section 3
and Section 7(b) of the attached Terms and Conditions.

 

IN
WITNESS WHEREOF, the Company has executed and sealed this Award as of the Grant
Date set forth above.

 

 

	
   

  	
  NETBANK, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

 

VESTING
SCHEDULE

TO
NETBANK, INC.

1996
STOCK INCENTIVE OPTION AWARD

 

Vesting Schedule

 

 

TERMS AND
CONDITIONS TO THE

INCENTIVE
STOCK OPTION AWARD

PURSUANT
TO THE NETBANK, INC.

1996
STOCK INCENTIVE PLAN

 

1.             Exercise of Option. Subject
to the provisions provided herein or in the Award made pursuant to the Plan:

 

(a)           the Option may be
exercised with respect to all or any portion of the Vested Option Shares at any
time during the Option Period by the delivery to the Company, at its principal
place of business, of a written notice of exercise in substantially the form of
Exhibit 1 hereto, which notice shall be actually delivered to the Company
no earlier than thirty (30) days and no later than ten (10) days prior to the
date upon which Optionee desires to exercise all or any portion of the Option;
and

 

(b)           payment to the
Company of the Exercise Price multiplied by
the number of Option Shares being purchased (the “Purchase Price”) as
provided in Section 2; and

 

(c)           payment of any tax withholding
liability pursuant to Section 4 below.

 

Upon acceptance of such
notice and receipt of payment in full of the Purchase Price and tax withholding
liability, the Company shall cause to be issued a certificate representing the
Vested Option Shares purchased.

 

The Company may, from
time to time, establish other methods for exercise of Options, whether
electronically, through an agent or otherwise, as may be communicated to the
Optionee.

 

2.             Purchase Price. Payment of
the Purchase Price for all Vested Option Shares purchased pursuant to the
exercise of an Option shall be made in cash or certified check or,
alternatively, as follows:

 

(a)           by delivery to
the Company of a number of shares of Common Stock which have been owned by the
Optionee for at least six (6) months prior to the date of the Option’s exercise
having a Fair Market Value, as determined under the Plan, on the date of
exercise either equal to the Purchase Price or in combination with cash or a
certified check to equal the Purchase Price; or

 

(b)           by receipt of the
Purchase Price in cash from a broker, dealer or other “creditor” as defined by
Regulation T issued by the Board of Governors of the Federal Reserve
System following delivery by the Optionee to the Committee of instructions in a
form acceptable to the Committee regarding delivery to such broker, dealer or
other creditor of that number of Option Shares with respect to which the Option
is exercised; or

 

(c)           any combination
of the foregoing.

 

3.             Vested Option Shares. The
Option Shares shall become Vested Option Shares in accordance with the Vesting
Schedule; provided, however, that all Option Shares may become Vested Option
Shares in accordance with Section 8(b) hereof.

 

4.             Withholding. The Optionee must satisfy any
federal, state and local, if any, withholding taxes imposed by reason of the
exercise of the Option by paying to the Company the full amount of the
withholding obligation in cash or by certified check. In lieu of paying the
withholding obligation in cash or by certified check, the Optionee may elect
(i) to tender to the Company the smallest number of whole shares of Common
Stock which have been owned by the Optionee for at least six (6) months prior
to the date of the Option’s exercise having a Fair Market Value as of the date
of the Option exercise, as determined under the Plan, sufficient to satisfy the
amount of the withholding tax; or (ii) irrevocably electing to have the actual
numbers of shares of Stock issuable upon exercise reduced by the

 

 

smallest number of whole
shares of Stock which, when multiplied by the Fair Market Value of the Common
Stock as of the date the Option is exercised, is sufficient to satisfy the amount
of the withholding tax (either election is referred to below as a “Withholding
Election”). The Optionee may make a Withholding Election only if the following
conditions are met:

 

(a)           the Withholding Election is made on
or prior to the date on which the amount of tax required to be withheld is
determined (the “Tax Date”) by executing and delivering to the Company a
properly completed Withholding Election; and

 

(b)           any Withholding Election made will be
irrevocable; however, the Committee may, in its sole discretion, disapprove and
give no effect to any Withholding Election.

 

5.             Incentive Stock Option Status. In the event the
aggregate Fair Market Value (determined as of the applicable grant date) of
shares of Common Stock subject to options (under all plans of the Company) that
first become exercisable in favor of the Optionee during any calendar year by
an amount that exceeds $100,000, then such options in excess of the limitation
shall not be Incentive Stock Options. To the extent such limitation affects all
or any portion of the Option Shares, those Option Shares shall be treated as
nonqualified stock options.

 

6.             Rights as Shareholder. Until the stock
certificates reflecting the Option Shares accruing to the Optionee upon
exercise of the Option are issued to the Optionee, the Optionee shall have no
rights as a shareholder with respect to such Option Shares. The Company shall
make no adjustment for any dividends or distributions or other rights on or
with respect to Option Shares for which the record date is prior to the
issuance of that stock certificate, except as the Plan or the attached Award
otherwise provides.

 

7.             Restriction on Transfer of Option and of Option
Shares. The Option evidenced hereby is nontransferable other than by will
or the laws of descent and distribution and shall be exercisable during the
lifetime of the Optionee only by the Optionee (or in the event of his
disability, by his personal representative) and after his death, only by his
legatee or the executor of his estate.

 

8.             Changes in Capitalization.

 

(a)           The number of
Option Shares and the Exercise Price shall be proportionately adjusted for any
increase or decrease in the number of issued shares of Common Stock resulting
from a subdivision or combination of shares or the payment of a stock dividend
in shares of Common Stock to holders of outstanding shares of Common Stock or
any other increase or decrease in the number of shares of Common Stock
outstanding effected without receipt of consideration by the Company.

 

(b)           If the Company
shall be the surviving corporation in any merger or consolidation,
recapitalization, reclassification of shares or similar reorganization, the
Optionee shall be entitled to purchase or receive the number and class of
securities to which a holder of the number of shares of Common Stock subject to
the Option at the time of such transaction would have been entitled to receive
as a result of such transaction, and a corresponding adjustment shall be made
in the Exercise Price. A dissolution or liquidation of the Company shall cause
the Option to terminate as to any portion thereof not exercised as of the
effective date of the dissolution or liquidation. In the event of a sale of
substantially all of the Common Stock or property of the Company or the merger
or consolidation or any other reorganization, including a Change in Control of
the Company in which the Company is not the surviving entity, the Option Shares
shall become fully vested on the date determined by the Committee prior to the
effective date of the Change in Control, but no less than thirty (30) days
prior to the effective date of the Change in Control.

 

(c)           The existence of
the Plan and the Option granted pursuant to this Award shall not affect in any
way the right or power of the Company to make or authorize any adjustment,
reclassification, reorganization or other change in its capital or business
structure, any merger or consolidation of the Company, any issue of debt or

 

 

equity securities having
preferences or priorities as to the Common Stock or the rights thereof, the
dissolution or liquidation of the Company, any sale or transfer of all or any
part of its business or assets, or any other corporate act or proceeding. Any
adjustment pursuant to this Section may provide, in the Committee’s discretion,
for the elimination without payment therefor of any fractional shares that
might otherwise become subject to any Option.

 

9.             Special Limitation of Exercise. No purported
exercise of the Option shall be effective without the approval of the Committee,
which may be withheld to the extent that the exercise, either individually or
in the aggregate together with the exercise of other previously exercised stock
options and/or offers and sales pursuant to any prior or contemplated offering
of securities, would, in the sole and absolute judgment of the Committee,
require the filing of a registration statement with the United States
Securities and Exchange Commission or with the securities commission of any
state. If a registration statement is not in effect under the Securities Act of
1933 or any applicable state securities law with respect to shares of Common
Stock purchasable or otherwise deliverable under the Option, the Optionee (a)
shall deliver to the Company, prior to the exercise of the Option or as a
condition to the delivery of Common Stock pursuant to the exercise of an Option
exercise, such information, representations and warranties as the Company may
reasonably request in order for the Company to be able to satisfy itself that
the Option Shares are being acquired in accordance with the terms of an
applicable exemption from the securities registration requirements of
applicable federal and state securities laws and (b) shall agree that the
shares of Common Stock so acquired will not be disposed of except pursuant to
an effective registration statement, unless the Company shall have received an
opinion of counsel that such disposition is exempt from such requirement under
the Securities Act of 1933 and any applicable state securities law.

 

10.           Legend on Stock Certificates. Certificates
evidencing the Option Shares, to the extent appropriate at the time, shall have
noted conspicuously on the certificates a legend intended to give all persons
full notice of the existence of the conditions, restrictions, rights and
obligations set forth herein and in the Plan.

 

11.           Governing Laws. This Award and
the Terms and Conditions shall be construed, administered and enforced
according to the laws of the State of Georgia.

 

12.           Successors. This Award and the
Terms and Conditions shall be binding upon and inure to the benefit of the
heirs, legal representatives, successors and permitted assigns of the Optionee
and the Company.

 

13.           Notice. Except as otherwise
specified herein, all notices and other communications under this Award shall
be in writing and shall be deemed to have been given if personally delivered or
if sent by registered or certified United States mail, return receipt
requested, postage prepaid, addressed to the proposed recipient at the last
known address of the recipient. Any party may designate any other address to
which notices shall be sent by giving notice of the address to the other
parties in the same manner as provided herein.

 

14.           Severability. In the event
that any one or more of the provisions or portion thereof contained in the
Award and these Terms and Conditions shall for any reason be held to be
invalid, illegal or unenforceable in any respect, the same shall not invalidate
or otherwise affect any other provisions of the Award and these Terms and
Conditions, and the Award and these Terms and Conditions shall be construed as
if the invalid, illegal or unenforceable provision or portion thereof had never
been contained herein.

 

15.           Entire Agreement. Subject to
the terms and conditions of the Plan, the Award and the Terms and Conditions
express the entire understanding of the parties with respect to the Option.

 

16.           Violation. Any transfer,
pledge, sale, assignment, or hypothecation of the Option or any portion thereof
shall be a violation of the terms of the Award or these Terms and Conditions
and shall be void and without effect.

 

17.           Headings and Capitalized Terms.
Section headings used herein are for convenience of reference only and shall
not be considered in construing the Award or these Terms and Conditions. Capitalized
terms used, but not defined, in either the Award or the Terms and Conditions
shall be given the meaning ascribed to them in the Plan.

 

 

18.           Specific Performance. In the
event of any actual or threatened default in, or breach of, any of the terms,
conditions and provisions of the Award and these Terms and Conditions, the
party or parties who are thereby aggrieved shall have the right to specific
performance and injunction in addition to any and all other rights and remedies
at law or in equity, and all such rights and remedies shall be cumulative.

 

19.           No Right to Continued Retention.
Neither the establishment of the Plan nor the award of Option Shares hereunder
shall be construed as giving the Optionee the right to continued employment
with the Company or any affiliate.

 

 

EXHIBIT 1

 

NOTICE OF
EXERCISE OF

STOCK
OPTION TO PURCHASE

COMMON
STOCK OF

NETBANK,
INC.

 

	
   

  	
  Name

  	
   

  	
   

  
	
   

  	
  Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date

  	
   

  	
   

  
						

 

NetBank, Inc.

Royal Centre Three, Suite
100

11475 Great Oaks Parkway

Alpharetta, Georgia  30022

 

Attention:              President

 

Re:          Exercise of Incentive Stock Option

 

Gentlemen:

 

Subject to acceptance
hereof by NetBank, Inc. (the “Company”), pursuant to the provisions of the
NetBank, Inc. 1996 Stock Incentive Plan (the “Plan”), I hereby give notice of
my election to exercise options granted to me to purchase                             
shares of common stock of the Company (“Common Stock”) under the Incentive
Stock Option Award (the “Award”) dated as of                                           .
The purchase shall take place as of                                             ,
200     (the “Exercise Date”).

 

On or before the Exercise
Date, I will pay the applicable purchase price as follows:

 

o            by
delivery of cash or a certified check for $                      
for the full purchase price payable to the order of NetBank, Inc.

 

o            by
delivery of cash or a certified check for $                      
representing a portion of the purchase price with the balance to consist of
shares of Common Stock that I have owned for at least six months and that are
represented by a stock certificate I will surrender to the Company with my
endorsement. If the number of shares of Common Stock represented by such stock
certificate exceed the number to be applied against the purchase price, I
understand that a new stock certificate will be issued to me reflecting the
excess number of shares.

 

o            by
delivery of a stock certificate representing shares of Common Stock that I have
owned for at least six months which I will surrender to the Company with my
endorsement as payment of the purchase price. If the number of shares of Common
Stock represented by such certificate exceed the number to be applied against
the purchase price, I understand that a new certificate will be issued to me
reflecting the excess number of shares.

 

o            by
delivery of the purchase price by                                                   ,
a broker, dealer or other “creditor” as defined by Regulation T issued by
the Board of Governors of the Federal Reserve System. I hereby authorize the
Company to issue a stock certificate for the number of shares indicated above
in the name of said broker, dealer or other creditor or its nominee pursuant to
instructions received by the Company and to deliver said stock certificate
directly to that broker, dealer or other creditor (or to such other party
specified in the instructions received by the Company from the broker, dealer
or other creditor) upon receipt of the purchase price.

 

As soon as the stock
certificate is registered in my name, please deliver it to me at the above
address.

 

 

If the Common Stock being
acquired is not registered for issuance to and resale by the Optionee pursuant
to an effective registration statement on Form S-8 (or successor form) filed
under the Securities Act of 1933, as amended (the “1933 Act”), I hereby
represent, warrant, covenant, and agree with the Company as follows:

 

The shares of the Common
Stock being acquired by me will be acquired for my own account without the
participation of any other person, with the intent of holding the Common Stock
for investment and without the intent of participating, directly or indirectly,
in a distribution of the Common Stock and not with a view to, or for resale in
connection with, any distribution of the Common Stock, nor am I aware of the
existence of any distribution of the Common Stock;

 

I am not acquiring the
Common Stock based upon any representation, oral or written, by any person with
respect to the future value of, or income from, the Common Stock but rather
upon an independent examination and judgment as to the prospects of the
Company;

 

The Common Stock was not
offered to me by means of publicly disseminated advertisements or sales
literature, nor am I aware of any offers made to other persons by such means;

 

I am able to bear the
economic risks of the investment in the Common Stock, including the risk of a
complete loss of my investment therein;

 

I understand and agree
that the Common Stock will be issued and sold to me without registration under
any state law relating to the registration of securities for sale, and will be
issued and sold in reliance on the exemptions from registration under the 1933
Act, provided by Sections 3(b) and/or 4(2) thereof and the rules and
regulations promulgated thereunder;

 

The Common Stock cannot
be offered for sale, sold or transferred by me other than pursuant to: (A) an
effective registration under the 1933 Act or in a transaction otherwise in
compliance with the 1933 Act; and (B) evidence satisfactory to the Company of
compliance with the applicable securities laws of other jurisdictions. The
Company shall be entitled to rely upon an opinion of counsel satisfactory to it
with respect to compliance with the above laws;

 

The Company will be under
no obligation to register the Common Stock or to comply with any exemption
available for sale of the Common Stock without registration or filing, and the
information or conditions necessary to permit routine sales of securities of
the Company under Rule 144 under the 1933 Act are not now available and no
assurance has been given that it or they will become available. The Company is
under no obligation to act in any manner so as to make Rule 144 available with
respect to the Common Stock;

 

I have and have had complete
access to and the opportunity to review and make copies of all material
documents related to the business of the Company, including, but not limited
to, contracts, financial statements, tax returns, leases, deeds and other books
and records. I have examined such of these documents as I wished and am
familiar with the business and affairs of the Company. I realize that the
purchase of the Common Stock is a speculative investment and that any possible
profit therefrom is uncertain;

 

I have had the opportunity
to ask questions of and receive answers from the Company and any person acting
on its behalf and to obtain all material information reasonably available with
respect to the Company and its affairs. I have received all information and
data with respect to the Company which I have requested and which I have deemed
relevant in connection with the evaluation of the merits and risks of my
investment in the Company;

 

I have such knowledge and
experience in financial and business matters that I am capable of evaluating
the merits and risks of the purchase of the Common Stock hereunder and I am
able to bear the economic risk of such purchase; and

 

The agreements,
representations, warranties and covenants made by me herein extend to and apply
to all of the Common Stock of the Company issued to me pursuant to this Award. Acceptance
by me of the

 

 

certificate representing
such Common Stock shall constitute a confirmation by me that all such
agreements, representations, warranties and covenants made herein shall be true
and correct at that time.

 

I understand that the
certificates representing the shares being purchased by me in accordance with
this notice shall bear a legend referring to the foregoing covenants,
representations and warranties and restrictions on transfer, and I agree that a
legend to that effect may be placed on any certificate which may be issued to
me as a substitute for the certificates being acquired by me in accordance with
this notice. I further understand that capitalized terms used in this Notice of
Exercise without definition shall have the meanings given to them in the Plan.

 

	
  Very truly yours,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AGREED TO AND ACCEPTED:

  	
   

  
	
   

  	
   

  
	
  NETBANK, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
  Number of Shares:

  	
   

  
	
  Exercised:

  	
   

  	
   

  
	
   

  	
   

  
	
  Number of Shares Remaining:

  	
   

  	
   

  	
   

  	
  Date:Exhibit 10.2(i)

 

Form of Restricted Stock Award Agreement Pursuant to
1996 Stock Incentive Plan

 

NETBANK, INC.

RESTRICTED STOCK AWARD

 

This RESTRICTED
STOCK AWARD (the “Award”) is made and entered into as of the           
day of                                     ,
                
by and between NetBank, Inc. (the “Company”), a Georgia corporation, and                                                           
(the “Employee”).

 

Upon and subject
to the Additional Terms and Conditions attached hereto and incorporated herein
by reference as part of this Award, the Company hereby awards as of the Grant
Date to the Employee the Restricted Shares described below pursuant to the
NetBank, Inc. 1996 Stock Incentive Plan (the “Plan”) in consideration of the
Employee’s services to the Company (the “Restricted Stock Grant”).

 

	
  A.

  	
  Grant Date:                                                                  ,
                .

  
	
   

  	
   

  
	
  B.

  	
  Restricted Shares:
                              
  shares of the Company’s common stock (“Common Stock”), par value $.01.

  
	
   

  	
   

  
	
  C.

  	
  Vesting Schedule: The Restricted Shares shall
  vest according to the Vesting Schedule attached hereto as Schedule  1
  hereto (the “Vesting Schedule”). The Restricted Shares which have become
  vested pursuant to the Vesting Schedule are herein referred to as the “Vested
  Restricted Shares.” The unvested Restricted Shares determined as of the
  Employee’s Termination of Service will be forfeited back to the Company.

  

 

IN WITNESS
WHEREOF, the Company has signed and sealed this Award as of the Grant Date set
forth above.

 

	
   

  	
  NETBANK, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

 

	
  ATTEST:

  
	
   

  
	
  By:

  	
   

  
	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  [CORPORATE SEAL]

  
				

 

 

ADDITIONAL TERMS AND CONDITIONS OF

 

NETBANK, INC.

 

RESTRICTED STOCK AWARD

 

1.                                       Condition
to Delivery of Restricted Shares.

 

(a)                                  Employee
must deliver to the Company, within thirty (30) days after the earlier of
(i) the date on which any Restricted Shares become Vested Restricted
Shares, or (ii) the making of an election pursuant to Code Section 83(b)
as to all or any portion of the Restricted Shares, either cash or a certified
check payable to the Company in the amount of all tax withholding obligations
(whether federal, state or local), imposed on the Company by reason of the
vesting of the Restricted Shares, or the making of an election pursuant to Code
Section 83(b), as applicable, except as provided in Section 1(b).

 

(b)                                 If
the Employee does not make an election pursuant to Code Section 83(b), in lieu
of paying the withholding tax obligation in cash or by certified check as
described in Section 1(a), Employee may elect to have the actual number of
Vested Restricted Shares reduced by the smallest number of whole shares of
Common Stock which, when multiplied by the Fair Market Value of the Common
Stock on the Vesting Date as determined by the Board of Directors, is
sufficient to satisfy the amount of the tax withholding obligations imposed on
the Company by reason of the vesting of the Restricted Shares (the “Withholding
Election”). Employee may make a Withholding Election only if all of the
following conditions are met:

 

(i)                                     the
Withholding Election must be made on or prior to the date on which the amount
of tax required to be withheld is determined (the “Tax Date”) by executing and
delivering to the Company a properly completed Notice of Withholding Election,
in substantially the form of Exhibit  A attached hereto; and

 

(ii)                                    any
Withholding Election made will be irrevocable; however, the Board of Directors
may, in its sole discretion, disapprove and give no effect to any Withholding
Election.

 

2.                                       Restricted
Shares Held by the Share Custodian. Employee hereby authorizes and directs
the Company to deliver any share certificate issued by the Company to evidence
Restricted Shares to the Secretary of the Company or such other officer of the
Company as may be designated by the Committee (the “Share Custodian”) to be
held by the Share Custodian until the Restricted Shares become Vested
Restricted Shares in accordance with the Vesting Schedule. When the Restricted
Shares become Vested Restricted Shares, the Share Custodian shall deliver the
Restricted Shares to the Employee. In the event that the Employee forfeits any
of the Restricted Shares, and the number of Vested Restricted Shares includes a
fraction of a share, the Share Custodian shall not be required to deliver the
fractional share, and the Company may pay the Employee the amount determined by
the Company to be the estimated fair market value therefor. Employee hereby
irrevocably appoints the Share Custodian, and any successor thereto, as the
true and lawful attorney-in-fact of Employee with full power and authority to
execute any stock transfer power or other instrument necessary to transfer the
Restricted Shares to the Company in accordance with this Award, in the name, place,
and stead of the Employee. The term of such appointment shall commence on the
date of the Restricted Stock Grant and shall continue until the Restricted
Shares are delivered to the Employee as provided above. During the period that
the Share Custodian holds the shares of Common Stock subject to this Section 2,
the Employee shall be entitled to all rights applicable to shares of Common
Stock not so held, except as provided in this Award. In the event the number of
shares of Common Stock is increased or reduced by a change in the par value,
split-up, stock split, reverse stock split, reclassification, merger,
reorganization, consolidation, or otherwise, and in such shares of Common
Stock, the Employee agrees that any certificate representing shares of Common
Stock or other securities of the Company issued as a result of any of the
foregoing shall be delivered to the Share Custodian and shall be subject to all
of the provisions of this Award as if initially granted thereunder.

 

 

3.                                       Dividends.
The Employee shall be entitled to dividends paid on all Restricted Shares as
and when declared and paid.

 

4.                                       Restrictions
on Transfer of Restricted Shares.

 

(a)                                  General Restrictions. Except as provided by this Award, the Employee
shall not have the right to make or permit to exist any transfer or
hypothecation, whether outright or as security, with or without consideration,
voluntary or involuntary, of all or any part of any right, title or interest in
or to any Restricted Shares. Any such disposition not made in accordance with
this Award shall be deemed null and void. The Company will not recognize, or
have the duty to recognize, any disposition not made in accordance with the
Plan and this Award, and any Restricted Shares so transferred will continue to
be bound by the Plan and this Award. The Employee (and any subsequent holder of
Restricted Shares) may not sell, pledge or otherwise directly or indirectly
transfer (whether with or without consideration and whether voluntarily or
involuntarily or by operation of law) any interest in or any beneficial
interest in any Restricted Shares except pursuant to the provisions of this
Award. Any sale, pledge or other transfer (or any attempt to effect the same)
of any Restricted Shares in violation of any provision of the Plan or this
Award shall be void, and the Company shall not record such transfer,
assignment, pledge or other disposition on its books or treat any purported
transferee of such Restricted Shares as the owner of such Restricted Shares for
any purpose.

 

(b)                                 Certain Permitted Transfers. The restrictions contained in this Section 4 will
not apply with respect to transfers of the Restricted Shares pursuant to
applicable laws of descent and distribution; provided
that the restrictions contained in this Section 4 will continue to be
applicable to the Restricted Shares after any such transfer; and provided further that the transferees of such the Restricted
Shares must agree in writing to be bound by the provisions of the Plan and this
Award.

 

5.                                       Additional
Restrictions on Transfer.

 

(a)                                  In addition to any legends required under applicable
securities laws, the certificates representing the Restricted Shares shall be
endorsed with the following legend and the Employee shall not make any transfer
of the Restricted Shares without first complying with the restrictions on
transfer described in such legend:

 

TRANSFER IS RESTRICTED

 

THE
SECURITIES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON
TRANSFER AND FORFEITURE PROVISIONS WHICH ALSO APPLY TO THE TRANSFEREE AS SET
FORTH IN A RESTRICTED STOCK AWARD, DATED                       ,
A COPY OF WHICH IS AVAILABLE FROM THE COMPANY.

 

(b)                                 Opinion of Counsel. No holder of Restricted Shares may sell, transfer, assign, pledge or
otherwise dispose of (whether with or without consideration and whether
voluntarily or involuntarily or by operation of law) any interest in or any
beneficial interest in any Restricted Shares, except pursuant to an effective
registration statement under the Securities Act of 1933, as amended (the “Securities
Act”), without first delivering to the Company an opinion of counsel
(reasonably acceptable in form and substance to the Company) that neither
registration nor qualification under the Securities Act and applicable state
securities laws is required in connection with such transfer.

 

6.                                       Change
in Capitalization.

 

(a)                                  The number and kind of Restricted Shares shall be
proportionately adjusted for any increase or decrease in the number of issued
shares of Common Stock resulting from a subdivision or combination of shares or
the payment of a stock dividend in shares of Common Stock to holders of
outstanding shares of Common Stock or any other increase or decrease in the
number of shares of Common Stock outstanding is effected without receipt of
consideration by the Company. No fractional shares shall be issued in making
such adjustment. All adjustments made by the Committee under this Section shall
be final, binding, and conclusive.

 

(b)                                 In
the event of a merger or consolidation, extraordinary dividend (including a
spin-off), reorganization or other change in the corporate structure of the
Company or a tender offer for shares of Common Stock, an appropriate adjustment
may be made with respect to the Restricted Shares such that

 

 

other
securities, cash or other property may be substituted for the Common Stock held
by the Employee pursuant to the Restricted Stock Grant.

 

(c)                                  The
existence of the Plan and the Restricted Stock Grant shall not affect the right
or power of the Company to make or authorize any adjustment, reclassification,
reorganization or other change in its capital or business structure, any merger
or consolidation of the Company, any issue of debt or equity securities having
preferences or priorities as to the Common Stock or the rights thereof, the
dissolution or liquidation of the Company, any sale or transfer of all or part
of its business or assets, or any other corporate act or proceeding.

 

7.                                       Governing
Laws. This Award shall be construed, administered and enforced according to
the laws of the State of Georgia; provided, however, no Restricted Shares shall
be issued except, in the reasonable judgment of the Committee, in compliance
with exemptions under applicable state securities laws of the state in which
the Employee resides, and/or any other applicable securities laws.

 

8.                                       Successors.
This Award shall be binding upon and inure to the benefit of the heirs, legal
representatives, successors, and permitted assigns of the parties.

 

9.                                       Notice.
Except as otherwise specified herein, all notices and other communications
under this Award shall be in writing and shall be deemed to have been given if
personally delivered or if sent by registered or certified United States mail,
return receipt requested, postage prepaid, addressed to the proposed recipient
at the last known address of the recipient. Any party may designate any other
address to which notices shall be sent by giving notice of the address to the
other parties in the same manner as provided herein.

 

10.                                 Severability.
In the event that any one or more of the provisions or portion thereof
contained in this Award shall for any reason be held to be invalid, illegal, or
unenforceable in any respect, the same shall not invalidate or otherwise affect
any other provisions of this Award, and this Award shall be construed as if the
invalid, illegal or unenforceable provision or portion thereof had never been
contained herein.

 

11.                                 Entire
Agreement. Subject to the terms and conditions of the Plan, this Award
expresses the entire understanding and agreement of the parties with respect to
the subject matter. This Award may be executed in two or more counterparts,
each of which shall be deemed an original but all of which shall constitute one
and the same instrument.

 

12.                                 Violation.
Any disposition of the Restricted Shares or any portion thereof shall be a
violation of the terms of this Award and shall be void and without effect.

 

13.                                 Headings
and Capitalized Terms. Paragraph headings used herein are for convenience
of reference only and shall not be considered in construing this Award. Capitalized
terms used, but not defined, in this Award shall be given the meaning ascribed
to them in the Plan

 

14                                    Specific
Performance. In the event of any actual or threatened default in, or breach
of, any of the terms, conditions and provisions of this Award, the party or
parties who are thereby aggrieved shall have the right to specific performance
and injunction in addition to any and all other rights and remedies at law or
in equity, and all such rights and remedies shall be cumulative.

 

15.                                 No
Right to Continued Retention. Neither the establishment of the Plan nor the
award of Restricted Shares hereunder shall be construed as giving Employee the
right to any continued service relationship with the Company.

 

 

EXHIBIT A

 

NOTICE OF WITHHOLDING ELECTION

NETBANK, INC.

1996 STOCK INCENTIVE PLAN

 

	
  TO:

  	
   NetBank, Inc.

  
	
   

  	
   

  
	
  FROM:

  	
   

  	
   

  

 

RE:                       Withholding
Election

 

This
election relates to the Restricted Stock Grant identified in Paragraph 3 below.
I hereby certify that:

 

	
   

  	
  (1)

  	
  My correct name and social security number and my current
  address are set forth at the end of this document.

  
	
   

  	
   

  	
   

  
	
   

  	
  (2)

  	
                              I
  am (check one, whichever is applicable).

  

 

o                                    the
original recipient of the Restricted Stock Grant.

 

o                                    the legal
representative of the estate of the original recipient of the Restricted Stock
Grant.

 

o                                    a legatee of the original recipient of
the Restricted Stock Grant.

 

o                                    the legal
guardian of the original recipient of the Restricted Stock Grant.

 

	
   

  	
  (3)

  	
  The Restricted Stock Grant pursuant to which this
  election relates was issued under the NetBank, Inc. 1996 

  
	
  Stock Incentive Plan (the “Plan”) in the name of
                                    
  for a total of
                              
  shares of Common Stock. This election relates to
              
  shares of Common Stock issued upon the vesting of the Restricted Shares,
  provided that the numbers set forth above shall be deemed changed as
  appropriate to reflect stock splits and other adjustments contemplated by the
  applicable Plan provisions.

  
	
   

  	
   

  	
   

  
	
   

  	
  (4)

  	
  I hereby elect
  to have certain of the shares withheld by the Company for the purpose of
  having the value of the shares 

  
	
  applied to pay federal, state and local, if any, taxes
  arising from the exercise.

  

 

 

The fair market value of the shares to be withheld in
addition to $                  
in cash to be tendered to the Company by the recipient of the Restricted Stock
Grant shall be equal to the minimum statutory tax withholding requirement under
federal, state and local law in connection with the exercise.

 

	
   

  	
  (5)

  	
  This Withholding Election is made no later than the Tax
  Date and is otherwise timely made pursuant to the Plan.

  
	
   

  
	
   

  	
  (6)

  	
  I understand that this Withholding Election is made prior
  to the Tax Date and is otherwise timely made pursuant to 

  
	
  Section 1 of
  this Award and Section 5.1 of the Plan.

  
	
   

  
	
   

  	
  (7)

  	
  I further understand that, if this Withholding Election
  is not disapproved by the Committee, the Company shall 

  
	
  withhold from the Common Stock a whole number of shares
  of Common Stock having the value specified in Paragraph 4 above.

  
	
   

  
	
   

  	
  (8)

  	
  The plan has been made available to me by the Company, I
  have read and understand the Plan and I have no 

  
	
  reason to believe that any of the conditions therein
  to the making of this Withholding Election have not been met. Capitalized
  terms used in this Notice of Withholding Election without definition shall
  have the meanings given to them in the Plan.

  
					

 

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name (Printed)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Street Address

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  City, State, Zip
  Code

  	
   

  
						

 

 

SCHEDULE 1

 

NETBANK, INC.

1996 STOCK INCENTIVE PLAN

RESTRICTED STOCK AWARD

 

Vesting Schedule

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