Document:

Exhibit 10.2

Exhibit 10.2

 

NQO OPTION AGREEMENT

STATE FINANCIAL SERVICES CORPORATION

1998 STOCK INCENTIVE PLAN

THIS AGREEMENT made as of February 3, 2004, between State Financial Services Corporation (hereafter "Corporation"), a Wisconsin corporation, and (hereafter "Optionee"), an officer/employee of the Corporation and/or one of its subsidiaries.

PREMISES

Whereas, the Corporation has adopted the State Financial Services Corporation 1998 Stock Incentive Plan (hereafter "Plan") under which the Option Committee may, among other things, grant options to key officers/employees of the Corporation and its subsidiaries to purchase shares of the Corporation's common stock, par value $.10 per share (hereafter "Common Stock"), subject to terms, condition, restrictions and discretion as it may deem appropriate.

Whereas, the Optionee is a key officer/employee of the Corporation and/or its subsidiaries and has been selected by the Option Committee to receive an Option under the Plan as an incentive to continue his/her services and to increase his/her proprietary interest in the Corporation.

Whereas, pursuant to the Plan, the grant of the Option to the Optionee is conditioned upon the due execution of this Option Agreement.

NOW, THEREFORE, in consideration of the premises and of the covenants and agreements herein set forth, the parties hereby mutually covenant and agree as follows:

1.           Grant

	 	(a) 	The Corporation grants to the Optionee an Option to purchase from the Corporation all or any part of an aggregate <# of shares> number of shares of Common Stock (hereafter "Optioned Shares") on the terms and conditions and restrictions set forth in this Option Agreement and in the Plan. The terms and provisions of the Plan are incorporated herein in their entirety. In the event of a conflict or ambiguity between the Option Agreement and the Plan, the terms and provisions of the Plan shall be controlling.

	 	(b) 	The Options under this grant are not intended to constitute "incentive stock options" as that term is used in Section 422A of the Code and shall constitute "nonqualified stock options".

	 	(c) 	The Option price to be paid for the Optioned Shares shall be $ which is not less than 100% of the Fair Market Value of the Common Stock on the date the Option was granted. 

2.            Term of Option

	 	(a)	Subject to the limitations of this Option Agreement, Options shall vest, in relation to date of grant as follows:

	
Years after Date of Grant
	
Vested Percentage of Options Available

	
1 year
	
25%

	
2 years
	
25%

	
3 years
	
50%

Vesting will be accelerated in certain circumstances subject to applicable laws and Plan provisions if approved by the Option Committee. These circumstances include a change in control of the Corporation, or the disability or death of the Optionee.

	 	(b)	Thereafter, the Optionee may exercise this Option, in whole or in part, for the number of shares vested, however the Option shall expire for the number of Optioned Shares that have not been purchased on February 3, 2014, ten years from the grant date.

	  
	 	 	 
	

	 

		(c)	The minimum number of Optioned Shares that may be purchased at one time shall be the lesser of 100 Optioned Shares or ten percent (10%) of the aggregate number of shares granted under this Agreement.

		(d)	The Option may be exercised only by written notice, delivered or mailed by postpaid, registered or certified mail, addressed to the Secretary of the Corporation specifying the number of Optioned Shares being purchased. Such notice shall be accompanied by payment in cash or its equivalent of the entire Exercise Price of the Optioned Shares being purchased or by tendering previously acquired shares of Common Stock having a Fair Market Value determined in conformity with the requirements of Section 7.4 of the Plan at the time of exercise equal to the entire purchase price of the Optioned Shares being purchased or any combination of cash and Common Stock. The Option Committee, in its discretion, may provide through any subsidiary bank of the Corporation, a loan to the Optionee subject to applicable laws. 

3.           Withholding Taxes

All deliveries and distributions under this Option Agreement are subject to withholding of all applicable taxes. The Optionee by this Option Agreement may authorize the Corporation or any subsidiary to retain and withhold from any cash amounts due or to become due from the Corporation to the Optionee an amount equal to such taxes as may be required by any government to be withheld or to retain and withhold the number of shares having a market value not less than the amount of such taxes and cancel any such shares so withheld, in order to reimburse the Corporation or any subsidiary, unless the Optionee has made arrangements satisfactory to the Option Committee, regarding such payment.

4.             Transfer

The Options herein granted shall not be transferable by the Optionee otherwise than by will or the laws of descent and distribution and may be exercised during the life of the Optionee only by the Optionee.

5.             Termination of Options

Except as may be otherwise provided by the Option Committee, vested Options may not be exercised: 

	 	(a)	more than three months after termination of the Optionee’s employment or services with the Corporation or a subsidiary for any reason other than termination for cause, disability or death; or

	 	(b)	after termination of the Optionee’s employment or services with the Corporation or a subsidiary if the termination is for cause; or

	 	(c)	more than 12 months after termination of employment or services by reason of death or disability; or

	 	(d)	more than 10 years from the grant date.

6.              Acquisition, Merger and Liquidation

In the event of an acquisition, merger or liquidation, the Optionee shall have the rights set forth in the Plan in respect of this Option.

7.  General Provisions

	 	(a)	The Optionee agrees for himself/herself and his/her heirs, legatees, and legal representatives, with respect to all shares of Common Stock acquired pursuant to the terms and conditions of this Option Agreement (or any shares of Common Stock issued pursuant to a stock dividend or stock split thereon or any securities issued in lieu thereof or in substitution or exchange therefore) that he and his heirs, legatees and legal representatives will not sell or otherwise dispose of such shares except pursuant to an effective Registration Statement under the Securities Act of 1933 or except in a transaction which, in the opinion of counsel for the Corporation, is exempt from registration under such Act.

	 
	 	 	 
	

	 
	 

	 	(b)	Except as provided in Article 5.3 of the Plan, the existence of the Option herein granted shall not affect in any way the right or power of the Corporation or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Corporation's capital structure or its business, or any merger or consolidation of the Corporation, or any issuance of bonds, debentures, preferred or prior preference stock ahead of or affecting the Common Stock or the rights thereof, or dissolution or liquidation of the Corporation, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.

	 	(c)	Nothing in this Option Agreement shall confer on the Optionee any right to continue in the employ of the Corporation of any subsidiary banks or in any way affect the Corporation's or any subsidiary bank's right to terminate the Optionee's employment without prior notice at any time for any or no reason. 

	 	(d)	This Option Agreement shall be subject to the terms of the Plan as may be amended, except this Option Agreement may not, in any way, be restricted or limited by any Plan amendment or termination approved after the grant date, without the Optionee's written consent.

	 	(e)	This Option Agreement shall be construed and enforced in accordance with and shall be governed by the laws of the State of Wisconsin.

	 	(f)	The Option Committee in its sole discretion shall determine any dispute or disagreement that may arise under or as a result of or pursuant to this Option Agreement. Any interpretation, determination or other action made or taken by the Option Committee pursuant to the provisions of this Option Agreement shall be final, binding and conclusive for all purposes and upon all persons.

	 	(g)	Notice to the Corporation required under or relating to this Agreement shall be in writing and addressed to:

State Financial Services Corporation

Attention: Beth J. Bahr

815 North Water Street

Milwaukee, WI 53202

Any notice of the Optionee shall be addressed to:

	 	(h)	This Agreement contains the entire understanding of the parties and shall not be modified of amended except in writing and duly signed by the parties. No waiver by either party of any default under this Agreement shall be deemed a waiver of any later default.

	 	(i)	Except as otherwise provided by law, it is understood that the number of options granted to the Optionee and the terms of this Agreement shall be held in strict confidence, except for such disclosure by the Optionee, as may be required for financial and estate planning purposes.

	 	(j)	The Optionee acknowledges receipt of a copy of the Plan, as amended. All capitalized terms not otherwise defined herein shall have the meanings assigned to such terms in the Plan.

	 
	 	 	 
	

	 

IN WITNESS WHEREOF, the parties have signed this Option Agreement as of the date hereof.

                        STATE FINANCIAL SERVICES CORPORATION

	
By:       
	 
	 	
Michael J. Falbo

	 	
President and Chief Executive Officer

	 	 
	 	 
	
Attest:
	

	 
	 	
Daniel Westrope
	
Senior Vice President,

	 	
Chief Financial Officer
	 
	 	
«First_Name_______________________» 

«Last_Name________________________»

	 	
Optionee

 

	 
	 	 	 
	

	 

STATE FINANCIAL SERVICES CORPORATION

ISO OPTION AGREEMENT

1998 STOCK INCENTIVE PLAN

BENEFICIARY DESIGNATION FORM

OPTIONEE'S NAME:  <employee name>                                                Date:                                                       

As a Optionee in the above Plan, I hereby designate the following individual(s) as my primary and alternate beneficiaries in the event of my death prior to the date on which I exercise my rights, or receive all benefits due to me under the Plan. I reserve the right to change this designation with the understanding that this designation, and any change thereof, will be effective only upon delivery to State Financial Services Corporation. The right to exercise my unexercised options under the Plan, if any, will be transferred to my primary beneficiaries who survive me, and to my alternate beneficiaries who survive me only if none of my primary beneficiaries survive me.

Primary Beneficiaries

	
Name:
	 	 	
Social Security #:
	 
	
Full Address:
	 	 	
Relationship:
	 
	 	 	 	
Percentage Designation:
	 
	 	 	 
	
Birth Date: 
	 	 	 	 
	 	 	 	 	 
	
Name:
	 	 	
Social Security #: 
	 
	
Full Address:
	 	 	
Relationship: 
	 
	 	 	 	
Percentage Designation: 
	 
	 	 	 	 	 
	
Birth Date: 
	 	 	 	 

 

 

Alternate beneficiaries

	
Name:
	 	 	
Social Security #:
	 
	
Full Address:
	 	 	
Relationship:
	 
	 	 	 	
Percentage Designation:
	 
	 	 	 
	
Birth Date: 
	 	 	 	 
	 	 	 	 	 
	
Name:
	 	 	
Social Security #: 
	 
	
Full Address:
	 	 	
Relationship: 
	 
	 	 	 	
Percentage Designation: 
	 
	 	 	 	 	 
	
Birth Date: 
	 	 	 	 

 

I acknowledge that execution of this form and delivery thereof to State Financial Services Corporation revokes all prior beneficiary designations I have made with respect to my outstanding awards under the Plan.

	 	 
	 	
Signature of Optionee

	 	 
	 	
Social Security NumberPAB Bankshare Exhibit 10.12

	
EXHIBIT 10.12

 

Execution Copy

EMPLOYMENT CONTRACT

TERMINATION AGREEMENT

THIS AGREEMENT (this "Agreement") is entered into as of August 9, 2004 by and between MICHAEL E. RICKETSON, a resident of the State of Georgia ("Executive"), and PAB BANKSHARES, INC., a Georgia corporation (the "Company"), and The PARK AVENUE BANK, a bank chartered under the laws of the State of Georgia (the "Bank") (the Company and the Bank are at times herein referred to collectively as, "Bankshares Affiliates"). 

WHEREAS, Executive and Bankshares Affiliates entered into that certain Employment Agreement dated as of January 1, 2003, as amended by that First Amendment to Employment Agreement dated August 25, 2003 (the "Employment Agreement"); and

WHEREAS, Executive and Bankshares Affiliates have entered in to an Option Agreement relating to the grant of options to purchase 40,964 shares of Company common stock (the "Option Shares") pursuant to the 1999 Stock Option Plan;

WHEREAS, Executive is desirous of retiring early from the employ of Bankshares Affiliates;

WHEREAS, consistent therewith Bankshares Affiliates and Executive have agreed to terminate the Employment Agreement; and,

WHEREAS, Executive and Bankshares Affiliates now desire to terminate the Employment Agreement. 

NOW, THEREFORE, in consideration of the promises and premises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties do hereby agree as follows:

1.    Termination of Employment Agreement. Bankshares Affiliates and Executive hereby agree that, as of the date of this Agreement, the Employment Agreement is and, for all purposes whatsoever, shall be deemed terminated and shall no further force or effect, provided, however, the covenants of Executive contained in Section 9 of the Employment Agreement (the "Restrictive Covenants") shall continue through the date of the last payment to Executive by Company and are hereby incorporated into this Agreement for all purposes.

2.    Termination of Employment; Continuation as a Director. Bankshares Affiliates and Executive hereby agree that the Executive's employment with Bankshares Affiliates is terminated effective as of the date of this Agreement. Further, Executive resigns as an officer of Bankshares Affiliates and all REIT affiliates of Bankshares Affiliates and their parent entities. Executive will continue to serve as a member of the board of directors of the Company and the Bank until the next annual meeting of the shareholders of each entity and in connection therewith offers his resignation as a director of each entity in the event the directors of either entity desires to nominate a replacement director for consideration by such entity's shareholders. Executive hereby resigns as a director of all REIT affiliates of Bankshares Affiliates and their parent entities. 

	
	 	 1	 
	

	
EXHIBIT 10.12

 

3.    Compensation.

(a)    From and after the date of this Agreement and so long as Executive does not violate any of the Restrictive Covenants, Bankshares Affiliates agrees to pay Executive his current salary and benefits through August 31, 2004 and commencing September 1, 2004, Bankshares Affiliates agrees to pay Executive $20,375 per month and continue his health insurance benefits through and including August 31, 2007. Bankshares Affiliates agrees to allow Executive to participate in the 401 K match funding from the date of this Agreement through and including August 31, 2007. Bankshares Affiliates agrees to give Executive ownership to the lap top computer Executive is currently using.

(b)    Executive may exercise his option to purchase all optioned shares in whole or in part regardless of expiration date noted on Exhibit "A", at any time prior to January 1, 2010 at the per share price shown on Exhibit "A".

(c)    In the event of Executive's death prior to the date on which Bankshares Affiliates has satisfied all of its obligations under subsections (a) and (b) of this Section 3, Bankshares Affiliates agrees to continue all such payments by making all remaining payments to Executive's estate on the same terms and conditions as they would have been made to Executive.

4.    Settlement. This Agreement is in full settlement of any and all claims Executive may assert arising from or related to the Employment Agreement or Executive's employment with Bankshares Affiliates or any person or entity owned or controlled by, or under common control with, or otherwise affiliated with Bankshares Affiliates (the "Related Parties"), during the term of the Employment Agreement and through the date hereof, including but not limited to claims for any expenses incurred by Executive and claims for any reimbursements due from Bankshares Affiliates to Executive. 

5.    Release and Waiver by Executive; Representations and Warranties. In exchange for the consideration provided by Bankshares Affiliates to Executive, Executive hereby voluntarily, irrevocably, fully, and completely RELEASES, ACQUITS, AND FOREVER DISCHARGES Bankshares Affiliates and the Related Parties, from any and all claims, complaints, liabilities, obligations, promises, agreements, controversies, damages, actions, causes of action, suits, rights, demands, costs, losses, debts, and expenses of any nature whatsoever (whether known or unknown) which Executive ever had, may have, or now has arising from or related to, directly or indirectly, the Employment Agreement or otherwise to Executive's employment with Bankshares Affiliates or any of the Related Parties during the term of the Employment Agreement and through the date hereof, including, but not limited to benefits under any and all bonus, severance, workforce reduction, early retirement, outplacement, or any other similar plan sponsored by Bankshares Affiliates through the date hereof. Executive specifically waives any right, power or privilege to severance compensation detailed in or resulting from the Employment Agreement. In addition, Executive acknowledges that this Agreement constitutes a full ACCORD AND SATISFACTION of all claims covered by the release provisions of this paragraph.

	
	 	 2	 
	

	
EXHIBIT 10.12

 

Executive represents and warrants that as of the date hereof, Executive has no basis for any claim and further waives any right to assert a claim against Bankshares Affiliates for (i) violation of Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Fair Labor Standards Act, the Civil Rights Act of 1991, the Americans With Disabilities Act, the Equal Pay Act, the Civil Rights Act of 1866, 42 U.S.C. 1981, the Family and Medical Leave Act, the Labor Management Relations Act, the National Labor Relations Act, the Consolidated Omnibus Budget Reconciliation Act of 1985, or the Executive Retirement Income Security Act, (ii) violations of any other federal or state statute or regulation or local ordinance, (iii) lost or unpaid wages, compensation, or other benefits claims under state law, defamation, intentional infliction of emotional distress, negligent infliction of emotional distress, bad faith action, slander, assault, battery, wrongful or constructive discharge, negligent hiring, retention and/or supervision, fraud, misrepresentation, conversion, tortious interference with property, negligent investigation, or (iv) any other claims under state law arising in tort or contract.

6.    Limited Release by Bankshares Affiliates. In exchange for the consideration provided by Executive to Bankshares Affiliates by his execution of this Agreement, except for and without waiving any right, power or privilege of Bankshares Affiliates contained in this Agreement, the Restrictive Covenants and the Salary Continuation Agreement, each of Bankshares Affiliates and all Related Parties hereby voluntarily, irrevocably, fully and completely RELEASES, ACQUITS, and FOREVER DISCHARGES Executive from any and all claims, complaints, liabilities, obligations, promises, agreements, controversies, damages, actions, causes of actions, suits, rights, demands, costs, losses, debts, and expenses of any nature whatsoever (whether known or unknown) which Bankshares Affiliates or any Related Party ever had, may have, or now has, arising from or related to, directly or indirectly, the Employment Agreement or otherwise to Executive's employment with Bankshares Affiliates or any of the Related Parties during the term of the Employment Agreement and through the date hereof. 

7.    Indemnification. Bankshares Affiliates shall defend and indemnify Executive for any claims brought against Executive for any actions taken by him that were within the scope of his employment while an employee of Bankshares Affiliates. Executive agrees to participate in the defense of any claim brought against Bankshares Affiliates related to any of his actions on behalf of Bankshares Affiliates during his employment or for which he has knowledge as a result of his employment with Bankshares Affiliates. To the extent Bankshares Affiliates requires Executive to participate in the defense of any such claim, it will reimburse Executive for any and all reasonable expenses, including travel expenses, incurred by him.

8.    Entire Agreement, Modification. This Agreement represents the entire agreement between the parties with respect to the subject matter hereof and supersedes all other negotiations and agreements, written or verbal, between the parties relating to the matters contemplated hereby. This Agreement may not be amended, waived or changed orally, but only in a writing that is signed by both parties and that states specifically that it is intended to modify this Agreement.

	
	 	3 	 
	

	
EXHIBIT 10.12

 

9.    Waiver. No failure or delay by either party in exercising any right, power or privilege under this Agreement shall operate as a waiver thereof and any written waiver in one or more instances shall not be deemed to be a further or continuing waiver of any such right, power or privilege.

10.          Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon Bankshares Affiliates, its successors and assigns, and any corporation with which Bankshares Affiliates may merge or consolidate or to which Bankshares Affiliates may sell its assets, and Executive and his executors, administrators, heirs, legatees, administrators, and personal representatives.

11.          Severability. If any provisions of this Agreement shall be held to be invalid or unenforceable, such invalidity or unenforceability shall not affect or impair the validity or enforceability of the remaining provisions of this Agreement, which shall remain in full force and effect and the parties hereto shall continue to be bound thereby.

12.          Headings. The section headings in this Agreement are for convenience only; they form no part of this Agreement and shall not affect its interpretation.

13.          Governing Law. This Agreement shall be construed and its validity determined by the laws of the State of Georgia.

14.          Counterparts. This Agreement may be executed in separate counterparts and shall be fully executed when each party whose signature is required has signed at least one counterpart, even though no one counterpart contains the signatures of all parties.

15.          Acknowledgment.   Executive hereby represents and warrants that:

	 	(a)	Executive has CAREFULLY READ THIS AGREEMENT AND FULLY UNDERSTANDS ALL OF THE PROVISIONS OF THIS AGREEMENT;

	 	(b)	Executive has had an OPPORTUNITY TO CONSULT WITH AN ATTORNEY OF HIS CHOICE AS TO THE TERMS OF THIS AGREEMENT to the full extent that he desired before signing this Agreement;

	 	(c)	Executive understands that any further employment with Bankshares Affiliates or any of the Related Parties shall be an employment at will; 

	 	(d)	Executive understands that this Agreement FOREVER RELEASES Bankshares Affiliates from any legal action related to or arising from the Employment Agreement prior to the date of execution of this Agreement;

	
	 	 4	 
	

	
EXHIBIT 10.12

 

	 	(e)	In signing this Agreement, Executive DOES NOT RELY ON NOR HAS HE RELIED ON ANY REPRESENTATION OR STATEMENT (WRITTEN OR ORAL) NOT SPECIFICALLY SET FORTH IN THIS AGREEMENT by Bankshares Affiliates or by any of Bankshares Affiliates's agents, representatives, or attorneys with regard to the subject matter, basis, effect of this Agreement or otherwise; and

	 	(f)	Executive was not coerced, threatened, or otherwise forced to sign this Agreement, and Executive is VOLUNTARILY SIGNING AND DELIVERING THIS AGREEMENT of his own free will, and that each signature appearing hereafter is genuine.

IN WITNESS WHEREOF, the undersigned have signed and executed this Agreement as an expression of their intent to be bound by the foregoing terms of this Agreement.

 

	 	 	
EXECUTIVE:

	 	 	 
	 	 	
 

	 	
Name:
	
Michael E. Ricketson

	 	
Address:
	
781 Sandy Ridge Road

	 	 	
McDonough, Georgia 30352

	 	 	
COMPANY:

	 	 	 
	 	 	
PAB BANKSHARES, INC.

	 	 	 
	 	
By:
	
 

	 	
Name:
	
James L. Dewar, Jr.

	 	
Title:
	
Chairman

	 	
Address:
	
3102 North Oak Street Extension

	 	 	
Valdosta, Georgia 31602

	 	 	
BANK:

	 	 	 
	 	 	
THE PARK AVENUE BANK

	 	 	 
	 	 	 
	 	 	 
	 	
By:
	
 

	 	
Name:
	
James L. Dewar, Jr.

	 	
Title:
	
Chairman

	 	
Address:
	
3102 North Oak Street Extension

	 	 	
Valdosta, Georgia 31602

 

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00073-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00073-of-00352.parquet"}]]