Document:

EX-10.1 2000 KEY EMPLOYEE STOCK OPTION PLAN

 

EXHIBIT
10.1

UNITED COMMUNITY BANKS, INC.

2000 KEY EMPLOYEE STOCK OPTION PLAN

(As Amended And Restated Effective As of March 15, 2007)

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE 1. ESTABLISHMENT, PURPOSE, AND DURATION
	 	 	4	 
	1.1 Establishment of the Plan
	 	 	4	 
	1.2 Purpose of the Plan
	 	 	4	 
	1.3 Duration of the Plan
	 	 	4	 
	 
	 	 	 	 
	ARTICLE 2. DEFINITIONS
	 	 	5	 
	 
	 	 	 	 
	ARTICLE 3. ADMINISTRATION
	 	 	8	 
	3.1 The Committee
	 	 	8	 
	3.2 Authority of the Committee
	 	 	8	 
	3.3 Decisions Binding
	 	 	8	 
	 
	 	 	 	 
	ARTICLE 4. SHARES SUBJECT TO THE PLAN
	 	 	8	 
	4.1 Number of Shares
	 	 	8	 
	4.2 Individual Limits
	 	 	9	 
	4.3 Adjustments In Authorized Shares
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 5. ELIGIBILITY AND PARTICIPATION
	 	 	10	 
	 
	 	 	 	 
	ARTICLE 6. STOCK OPTIONS
	 	 	10	 
	6.1 Grant of Options
	 	 	10	 
	6.2 Agreement
	 	 	11	 
	6.3 Option Price
	 	 	11	 
	6.4 Duration of Options
	 	 	11	 
	6.5 Exercise of Options
	 	 	11	 
	6.6 Payment
	 	 	11	 
	6.7 Limited Transferability
	 	 	12	 
	6.8 Shareholder Rights
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 7. STOCK APPRECIATION RIGHTS
	 	 	12	 
	7.1 Grants of SARs
	 	 	12	 
	7.2 Duration of SARs
	 	 	12	 
	7.3 Exercise of SAR
	 	 	12	 
	7.4 Determination of Payment of Cash and/or Shares Upon Exercise of SAR
	 	 	13	 
	7.5 Nontransferability
	 	 	13	 
	7.6 Shareholder Rights
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 8. RESTRICTED STOCK; STOCK AWARDS; RESTRICTED STOCK UNITS
	 	 	13	 
	8.1 Grants
	 	 	13	 
	8.2 Restricted Period; Lapse of Restrictions
	 	 	13	 
	8.3 Rights of Holder; Limitations Thereon
	 	 	14	 
	8.4 Delivery of Unrestricted Shares
	 	 	14	 
	8.5 Nonassignability of Restricted Stock
	 	 	15	 
	8.6 Restricted Stock Units (or RSUs)
	 	 	15	 

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	ARTICLE 9. PERFORMANCE SHARE AWARDS
	 	 	15	 
	9.1 Award
	 	 	15	 
	9.2 Earning the Award
	 	 	15	 
	9.3 Payment
	 	 	16	 
	9.4 Shareholder Rights
	 	 	16	 
	 
	 	 	 	 
	ARTICLE 10. BENEFICIARY DESIGNATION
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 11. DEFERRALS
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 12. RIGHTS OF EMPLOYEES
	 	 	17	 
	12.1 Employment
	 	 	17	 
	12.2 Participation
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 13. CHANGE IN CONTROL
	 	 	17	 
	13.1 Definition
	 	 	17	 
	13.2 Limitation on Awards
	 	 	18	 
	 
	 	 	 	 
	ARTICLE 14. AMENDMENT, MODIFICATION AND TERMINATION
	 	 	18	 
	14.1 Amendment, Modification and Termination
	 	 	18	 
	14.2 Awards Previously Granted
	 	 	19	 
	14.3 Compliance With Code Section 162(m)
	 	 	19	 
	 
	 	 	 	 
	ARTICLE 15. CANCELLATION AND RESCISSION OF AWARDS
	 	 	19	 
	 
	 	 	 	 
	ARTICLE 16. WITHHOLDING
	 	 	20	 
	16.1 Tax Withholding
	 	 	20	 
	16.2 Share Withholding
	 	 	20	 
	 
	 	 	 	 
	ARTICLE 17. INDEMNIFICATION
	 	 	20	 
	 
	 	 	 	 
	ARTICLE 18. SUCCESSORS
	 	 	20	 
	 
	 	 	 	 
	ARTICLE 19. LEGAL CONSTRUCTION
	 	 	20	 
	19.1 Gender and Number
	 	 	20	 
	19.2 Severability
	 	 	20	 
	19.3 Requirements of Law
	 	 	20	 
	19.4 Regulatory Approvals and Listing
	 	 	21	 
	19.5 Securities Law Compliance
	 	 	21	 
	19.6 Governing Law
	 	 	21	 

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UNITED COMMUNITY BANKS, INC.

2000 KEY EMPLOYEE STOCK OPTION PLAN

(As Amended And Restated Effective As Of March 15, 2007)

ARTICLE 1. ESTABLISHMENT, PURPOSE, AND DURATION

     1.1 Establishment of the Plan. United Community Banks, Inc., a Georgia
corporation (hereinafter referred to as the “Company”), established a stock option and incentive
award plan known as the “United Community Banks, Inc. 2000 Key Employee Stock Option Plan” (the
“Plan”), which Plan has subsequently been amended. The Plan permits the grant of Incentive Stock
Options, Nonqualified Stock Options, Restricted Stock, Restricted Stock Units, Stock Awards,
Performance Share Awards and Stock Appreciation Rights.

     The Company now desires to amend and restate the Plan: (1) to increase the aggregate number
of shares available for issuance under the Plan to a total of 2,500,000, which includes the 808,562
shares currently available for issuance under the Plan; (2) to provide that the number of shares
that may be granted for certain full value awards will be 400,000 shares, provided that such full
value grants may be made in excess of 400,000 shares and, in such event, will be counted as 1.5
shares against the maximum number of shares, (3) to clarify that shares received pursuant to or
represented by an award which are then used to pay the exercise price or withholding taxes are not
available for reissuance under the Plan; (4) to provide that the minimum time vesting period and
minimum performance-based vesting period for awards of restricted stock and restricted stock units
are three years and one year, respectively; (5) to prohibit repricing of awards granted under the
Plan; and (6) to change the definition of retirement from the attainment of age 65 to the earlier
of attainment of age 65 or the retirement age under any other benefit plan applicable to a
participant.

     The term “Plan” as used hereinafter in this document refers to the Plan, as amended and
restated.

     The Plan shall become effective on the date it is approved by the Board of Directors (the
“Effective Date”), subject to approval of the Plan by the Company’s shareholders within the
12-month period immediately thereafter, and shall remain in effect as provided in Section 1.3. If
the Plan (as amended and restated) is not approved by the shareholders, the Plan as previously in
effect shall remain in effect in accordance with its terms.

     1.2 Purpose of the Plan. The purpose of the Plan is to secure for the
Company and its shareholders the benefits of the incentive inherent in stock ownership in the
Company by key employees of the Company and its subsidiaries, who are responsible for its future
growth and continued success. The Plan promotes the success and enhances the value of the Company
by linking the personal interests of Participants (as defined below) to those of the Company’s
shareholders, and by providing Participants with an incentive for outstanding performance. The
Plan is further intended to provide flexibility to the Company in its ability to motivate, attract
and retain the services of Participants upon whose judgment, interest and special effort the
successful conduct of its operation largely depends.

     1.3 Duration of the Plan. The Plan shall be effective on the Effective
Date, and shall remain in effect, subject to the right of the Board of Directors to amend or
terminate the Plan at any time pursuant to Article 14, until 10 years from approval date of
increased shares and other changes.

4

 

ARTICLE 2. DEFINITIONS

     Whenever used in the Plan, the following terms shall have the meanings set forth below:

	 	(a)	 	“Agreement” means an agreement entered into by each Participant and
the Company, setting forth the terms and provisions applicable to Awards granted to
Participants under this Plan.
	 
	 	(b)	 	“Award” means, individually or collectively, a grant under this Plan
of Incentive Stock Options, Nonqualified Stock Options, Restricted Stock, Restricted
Stock Units, Stock Awards, Performance Share Awards or Stock Appreciation Rights.
	 
	 	(c)	 	“Beneficial Owner” or “Beneficial Ownership” shall have the
meaning ascribed to such term in Rule 13d-3 of the Exchange Act.
	 
	 	(d)	 	“Board” or “Board of Directors” means the Board of Directors
of the Company.
	 
	 	(e)	 	“Cause” means: (i) willful misconduct on the part of a Participant
that is materially detrimental to the Company; or (ii) the conviction of a Participant
for the commission of a felony. The existence of “Cause” under either (i) or (ii)
shall be determined by the Committee. Notwithstanding the foregoing, if the
Participant has entered into an employment agreement that is binding as of the date of
employment termination, and if such employment agreement defines “Cause,” and/or
provides a means of determining whether “Cause” exists, such definition of “Cause” and
means of determining its existence shall supersede this provision.
	 
	 	(f)	 	“Code” means the Internal Revenue Code of 1986, as amended from time
to time, or any successor act thereto.
	 
	 	(g)	 	“Committee” means the committee appointed to administer the Plan
with respect to grants of Awards, as specified in Article 3, and to perform the
functions set forth therein.
	 
	 	(h)	 	“Common Stock” means the common stock of the Company, par value
$1.00 per share.
	 
	 	(i)	 	“Company” means United Community Banks, Inc., a Georgia corporation,
or any successor thereto as provided in Article 18.
	 
	 	(j)	 	“Corresponding SAR” means an SAR that is granted in relation to a
particular Option and that can be exercised only upon the surrender to the Company,
unexercised, of that portion of the Option to which the SAR relates.
	 
	 	(k)	 	“Director” means any individual who is a member of the Board of
Directors of the Company.
	 
	 	(l)	 	“Disability” shall have the meaning ascribed to such term in the
Company’s long-term disability plan covering the Participant, or in the absence of such
plan, a meaning consistent with Section 22(e)(3) of the Code.

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	 	(m)	 	“Employee” means any employee of the Company or the Company’s
Subsidiaries. Directors who are not otherwise employed by the Company or the Company’s
Subsidiaries are not considered Employees under this Plan.
	 
	 	(n)	 	“Effective Date” shall have the meaning ascribed to such term in
Section 1.1.
	 
	 	(o)	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended
from time to time, or any successor act thereto.
	 
	 	(p)	 	“Fair Market Value” shall be determined as follows:

	 	(i)	 	If, on the relevant date, the Shares are traded on a national or
regional securities exchange or on The NASDAQ Stock Market (“NASDAQ”) and
closing sale prices for the Shares are customarily quoted, on the basis of the
closing sale price on the principal securities exchange on which the Shares may
then be traded or, if there is no such sale on the relevant date, then on the
immediately preceding day on which a sale was reported;
	 
	 	(ii)	 	If, on the relevant date, the Shares are not listed on any
securities exchange or traded on NASDAQ, but nevertheless are publicly traded
and reported on NASDAQ without closing sale prices for the Shares being
customarily quoted, on the basis of the mean between the closing bid and asked
quotations in such other over-the-counter market as reported by NASDAQ; but, if
there are no bid and asked quotations in the over-the-counter market as
reported by NASDAQ on that date, then the mean between the closing bid and
asked quotations in the over-the-counter market as reported by NASDAQ on the
immediately preceding day such bid and asked prices were quoted; and
	 
	 	(iii)	 	If, on the relevant date, the Shares are not publicly traded as
described in (i) or (ii), on the basis of the good faith determination of the
Committee.

	 	(q)	 	“Incentive Stock Option” or “ISO” means an option to purchase Shares
granted under Article 6 which is designated as an Incentive Stock Option and is
intended to meet the requirements of Section 422 of the Code.
	 
	 	(r)	 	“Initial Value” means, with respect to a Corresponding SAR, the
Option Price per share of the related Option, and with respect to an SAR granted
independently of an Option, the Fair Market Value of one share of Common Stock on the
date of grant.
	 
	 	(s)	 	“Insider” shall mean an Employee who is, on the relevant date, an
officer or a director, or a ten percent (10%) beneficial owner of any class of the
Company’s equity securities that is registered pursuant to Section 12 of the Exchange
Act or any successor provision, as “officer” and “director” are defined under Section
16 of the Exchange Act.
	 
	 	(t)	 	“Named Executive Officer” means, if applicable, a Participant who,
as of the date of vesting and/or payout of an Award is one of the group of “covered
employees,” as defined in the regulations promulgated under Code Section 162(m), or any
successor statute.
	 
	 	(u)	 	“Nonqualified Stock Option” or “NQSO” means an option to purchase
Shares granted under Article 6, and which is not intended to meet the requirements of
Code Section 422.

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	 	(v)	 	“Option” means an Incentive Stock Option or a Nonqualified Stock
Option.
	 
	 	(w)	 	“Option Price” means the price at which a Share may be purchased by
a Participant pursuant to an Option, as determined by the Committee.
	 
	 	(x)	 	“Participant” means an Employee who has been determined by the
Committee to contribute significantly to the profits or growth of the Company and who
has been granted an Award under the Plan which is outstanding.
	 
	 	(y)	 	“Performance Share Award” means an Award, which, in accordance with
and subject to an Agreement, will entitle the Participant, or his estate or beneficiary
in the event of the Participant’s death, to receive cash, Shares or a combination
thereof.
	 
	 	(z)	 	“Performance Measure” means the performance measures set forth in
Section 9.2 which are used for Performance Share Awards.
	 
	 	(aa)	 	“Person” shall have the meaning ascribed to such term in Section
3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a
“group” as defined in Section 13(d) thereof.
	 
	 	(bb)	 	“Retirement” means, as applied to a Participant, the Participant’s
termination of employment at the earlier of when the Participant attains age 65 or when
he qualifies for early or normal retirement under the Company’s Profit Sharing Plan,
under the successor or replacement of such plan if it is then no longer in effect, or
under any other retirement plan covering the Participant maintained or adopted by the
Company.
	 
	 	(cc)	 	“Restricted Stock” means an Award of Common Stock granted in
accordance with the terms of Article 8 and the other provisions of the Plan, and which
is nontransferable and subject to a substantial risk of forfeiture. Shares of Common
Stock shall cease to be Restricted Stock when, in accordance with the terms hereof and
the applicable Agreement, they become transferable and free of substantial risk of
forfeiture.
	 
	 	(dd)	 	“Restricted Stock Units” or “RSUs” means a right granted under
Article 8 to receive a number of Shares or a cash payment for each such Share equal to
the Fair Market Value of a Share on a specified date.
	 
	 	(ee)	 	“SAR” means a stock appreciation right that entitles the holder to
receive, with respect to each Share encompassed by the exercise of such SAR, the amount
determined by the Committee and specified in an Agreement. In the absence of such
specification, the holder shall be entitled to receive in cash, with respect to each
Share encompassed by the exercise of such SAR, the excess of the Fair Market Value on
the date of exercise over the Initial Value. References to “SARs” include both
Corresponding SARs and SARs granted independently of Options, unless the context
requires otherwise.
	 
	 	(ff)	 	“Section 409A” means Section 409A of the Code and the rulings and
regulations thereunder, including any transitional rules.
	 
	 	(gg)	 	“Share” or “Shares” means the shares of Common Stock of the
Company (including any new, additional or different stock or securities resulting from
the changes described in Section 4.3).

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	 	(hh)	 	“Stock Award” means a grant of Shares under Article 8 that is not
generally subject to restrictions and pursuant to which a certificate for the Shares is
transferred to the Employee.
	 
	 	(ii)	 	“Subsidiary” means any company during any period in which it is a
“subsidiary corporation” (as that term is defined in Code Section 424(f)) with respect
to the Company.

ARTICLE 3. ADMINISTRATION

     3.1 The Committee. The Plan shall be administered by the Board of
Directors or by the Compensation Committee of the Board, or by any other committee or subcommittee
appointed by the Board that is granted authority to administer the Plan. The members of the
Committee shall be appointed from time to time by, and shall serve at the discretion of, the Board
of Directors.

     3.2 Authority of the Committee. Subject to the provisions of the Plan,
the Committee shall have full power to select the Employees who are responsible for the future
growth and success of the Company who shall participate in the Plan (who may change from year to
year); determine the size and types of Awards; determine the terms and conditions of Awards in a
manner consistent with the Plan (including conditions on the exercisability of all or a part of an
Option or SAR, restrictions on transferability, vesting provisions on Restricted Stock, Restricted
Stock Units, or Performance Share Awards and the duration of the Awards); construe and interpret
the Plan and any agreement or instrument entered into under the Plan; establish, amend or waive
rules and regulations for the Plan’s administration; and (subject to the provisions of Article 14)
amend the terms and conditions of any outstanding Award to the extent such terms and conditions are
within the discretion of the Committee as provided in the Plan, including accelerating the time any
Option or SAR may be exercised and establishing different terms and conditions relating to the
effect of the termination of employment or other services to the Company. Notwithstanding the
above provision, the Committee shall not have the authority to decrease the Option Price of any
outstanding Option, except in accordance with Section 4.3 or unless such an amendment is approved
by the shareholders of the Company. Further, the Committee shall make all other determinations
which may be necessary or advisable in the Committee’s opinion for the administration of the Plan.
All expenses of administering this Plan shall be borne by the Company.

     3.3 Decisions Binding. All determinations and decisions made by the
Committee pursuant to the provisions of the Plan and all related orders and resolutions of the
Board shall be final, conclusive and binding on all Persons, including the Company, the
shareholders, Employees, Participants and their estates and beneficiaries.

ARTICLE 4. SHARES SUBJECT TO THE PLAN

	 	4.1	 	Number of Shares.
	 
	 	(a)	 	Subject to adjustment as provided in Section 4.3, the total number of Shares
which are available for issuance under the Plan shall be increased by 1,691,438 Shares
to a total of 2,500,000 Shares. Other than Awards of Stock Options or SARs or Awards
that must be settled in cash, the number of Shares reserved under the Plan that may be
granted in the form of other Awards (“Full Value Grants”) will be 400,000 Shares,
provided that Full Value Grants in excess of 400,000 Shares may be made and, in such
event, will be counted against the 2,500,000 Plan maximum so that the maximum is
reduced by one and one-half (1.5) Shares for each Share subject to the Full Value
Grants. The maximum number of Shares available for grant as ISOs under the Plan shall
equal an aggregate of

8

 

	 	 	 	1,000,000 Shares. The Shares may, in the discretion of the Company, be either
authorized but unissued Shares or Shares held as treasury shares, including Shares
purchased by the Company, whether on the market or otherwise.
	 
	 	(b)	 	The following rules shall apply for purposes of the determination of the
number of Shares available for grant under the Plan:

	 	(i)	 	If, for any reason, any Shares awarded or subject to purchase under
the Plan are not delivered or purchased, or are reacquired by the Company, for
reasons including, but not limited to, a forfeiture of Restricted Stock or
termination, expiration or cancellation of an Option, Stock Appreciation
Rights, Restricted Stock Units, Performance Shares (“Returned Shares”), such
Returned Shares shall not be charged against the aggregate number of Shares
available for issuance pursuant to Awards under the Plan and shall again be
available for issuance pursuant to an Award under the Plan (with Returned
Shares relating to Full Value Grants above the 400,000 Share limit counting as
1.5 Shares).
	 
	 	(ii)	 	Each Performance Share awarded that may be settled in Shares shall
be counted as one Share subject to an Award (until the 400,000 Share limit for
Full Value Grants has been exceeded). Performance Shares that may not be
settled in Shares (or that may be settled in Shares but are not) shall not
result in a charge against the aggregate number of Shares available for
issuance. Each Stock Appreciation Right to be settled in Shares shall be
counted as one Share subject to an Award, regardless of the number of Shares
that are actually issued upon exercise and settlement of the Stock Appreciation
Right. Stock Appreciation Rights that may only be settled in cash and may not
be settled in Shares shall not result in a charge against the aggregate number
of Shares available for issuance. In addition, if a Stock Appreciation Right
is granted in connection with an Option and the exercise of the Stock
Appreciation Right results in the loss of the Option right, the Shares that
otherwise would have been issued upon the exercise of such related Option shall
not result in a charge against the aggregate number of Shares available for
issuance.
	 
	 	(iii)	 	Each Restricted Stock Unit that may be settled in Shares shall be
counted as one Share subject to an award (until the 400,000 Share limit for
Full Value Grants has been exceeded). Restricted Stock Units that may only be
settled in cash and may not be settled in Shares shall not result in a charge
against the aggregate number of Shares available for issuance.

     4.2 Individual Limits. Except to the extent the Committee determines that
an Award to a Named Executive Officer shall not comply with Section 162(m) of the Code, for
purposes of Awards to an individual who is a Named Executive Officer, the following rules shall
apply to Awards under the Plan:

	 	(a)	 	Options and SARs. The maximum number of Options and Stock Appreciation
Rights that, in the aggregate, may be granted pursuant to Awards in any one calendar
year to any one Participant shall be 100,000 Shares.
	 
	 	(b)	 	Restricted Stock, Restricted Stock Units and Performance Shares. The
maximum aggregate number of Shares of Restricted Stock, number of Restricted Stock
Units and

9

 

	 	 	 	Performance Shares that may be granted pursuant to Awards in any one calendar year
to any one Participant shall be 66,666 Shares.

     4.3 Adjustments In Authorized Shares. In the event of any change in
corporate capitalization, such as a stock split, or a corporate transaction, such as any merger,
consolidation, separation, including a spin-off, or other distribution of stock or property of the
Company, any reorganization (whether or not such reorganization comes within the definition of such
term in Code Section 368) or any partial or complete liquidation of the Company, such adjustment
shall be made in the number and class of Shares which may be delivered under the Plan, and in the
number and class of and/or price of Shares subject to outstanding Awards granted under the Plan, as
may be determined to be appropriate and equitable by the Committee, in its sole discretion, to
prevent dilution or enlargement of rights; provided, however, that the number of Shares subject to
any Award shall always be a whole number and the Committee shall make such adjustments as are
necessary to insure Awards of whole Shares.

     The equitable adjustments shall be made by the Committee, as it determines are necessary and
appropriate, in:

	 	(a)	 	The limitation on the aggregate number of Shares that may be awarded as set
forth in Section 4.1, including, without limitation, with respect to Incentive Stock
Options;
	 
	 	(b)	 	The limitations on the aggregate number of Shares that may be awarded to any
one single Participant in a specific period as set forth in Section 4.2 of the Plan;
	 
	 	(c)	 	The number and class of Shares that may be subject to an Award, and which
have not been issued or transferred under an outstanding Award;
	 
	 	(d)	 	The Option Price under outstanding Options and the number of Shares to be
transferred in settlement of outstanding Stock Appreciation Rights; and
	 
	 	(e)	 	The terms, conditions or restrictions of any Award and Agreement, including
the price payable for the acquisition of Shares; provided, however, that all such
adjustments shall be made consistent with the requirements of Section 409A and in
respect of each ISO, shall be accomplished so that such Option shall continue to be an
incentive stock option within the meaning of Code Section 422.

ARTICLE 5. ELIGIBILITY AND PARTICIPATION

     Any key Employee of the Company or any Subsidiary, including any such Employee who is also a
director of the Company or any Subsidiary, whose judgment, initiative and efforts contribute or may
be expected to contribute materially to the successful performance of the Company or any Subsidiary
shall be eligible to receive an Award under the Plan. In determining the individuals to whom such
an Award shall be granted and the number of Shares which may be granted pursuant to that Award, the
Committee shall take into account the duties of the respective individual, his or her present and
potential contributions to the success of the Company or any Subsidiary, and such other factors as
the Committee shall deem relevant in connection with accomplishing the purposes of the Plan.

ARTICLE 6. STOCK OPTIONS

     6.1 Grant of Options. Subject to the terms and provisions of the Plan,
Options may be granted to Participants at any time and from time to time as shall be determined by
the Committee. The

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Committee shall have discretion in determining the number of Shares subject to Options granted
to each Participant. An Option may be granted with or without a Corresponding SAR. No Participant
may be granted ISOs (under the Plan and all other incentive stock option plans of the Company and
any Subsidiary) which are first exercisable in any calendar year for Shares having an aggregate
Fair Market Value (determined as of the date an Option is granted) that exceeds One Hundred
Thousand Dollars ($100,000). The preceding annual limit shall not apply to NQSOs. The Committee
may grant a Participant ISOs, NQSOs or a combination thereof, and may vary such Awards among
Participants.

     6.2 Agreement. Each Option grant shall be evidenced by an Agreement that
shall specify the Option Price, the duration of the Option, the number of Shares to which the
Option pertains and such other provisions as the Committee shall determine. The Option Agreement
shall further specify whether the Award is intended to be an ISO or an NQSO. Any portion of an
Option that is not designated as an ISO or otherwise fails or is not qualified as an ISO (even if
designated as an ISO) shall be a NQSO. If the Option is granted in connection with a Corresponding
SAR, the Agreement shall also specify the terms that apply to the exercise of the Option and
Corresponding SAR.

     6.3 Option Price. The Option Price for each grant of an ISO or a NQSO
shall not be less than one hundred percent (100%) of the Fair Market Value of a Share on the date
the Option is granted. In no event, however, shall any Participant who owns (within the meaning of
Section 424(d) of the Code) stock of the Company possessing more than ten percent (10%) of the
total combined voting power of all classes of stock of the Company be eligible to receive an ISO at
an Option Price less than one hundred ten percent (110%) of the Fair Market Value of a share on the
date the ISO is granted. The Committee is authorized to issue Options, whether ISOs or NQSOs, at
an Option Price in excess of the Fair Market Value on the date the Option is granted (the so-called
“Premium Price” Option) to encourage superior performance.

     6.4 Duration of Options. Each Option shall expire at such time as the
Committee shall determine at the time of grant; provided, however, that no Option shall be
exercisable later than the tenth (10th) anniversary date of its grant; provided, further, however,
that any ISO granted to any Participant who at such time owns (within the meaning of Section 424(d)
of the Code) stock of the Company possessing more than ten percent (10%) of the total combined
voting power of all classes of stock of the Company, shall not be exercisable later than the fifth
(5th) anniversary date of its grant.

     6.5 Exercise of Options. Options granted under the Plan shall be
exercisable at such times and be subject to such restrictions and conditions as the Committee shall
in each instance approve, including conditions related to the employment of the Participant with
the Company or any Subsidiary, which need not be the same for each grant or for each Participant.
Each Option shall be exercisable for such number of Shares and at such time or times, including
periodic installments, as may be determined by the Committee at the time of the grant. The
Committee may provide in the Agreement for automatic accelerated vesting and other rights upon the
occurrence of a Change in Control (as defined in Section 13.1) of the Company. Except as otherwise
provided in the Agreement and Article 13, the right to purchase Shares that are exercisable in
periodic installments shall be cumulative so that when the right to purchase any Shares has
accrued, such Shares or any part thereof may be purchased at any time thereafter until the
expiration or termination of the Option. The exercise or partial exercise of either an Option or
its Corresponding SAR shall result in the termination of the other to the extent of the number of
Shares with respect to which the Option or Corresponding SAR is exercised.

     6.6 Payment. Options shall be exercised by the delivery of a written
notice of exercise to the Company, setting forth the number of Shares with respect to which the
Option is to be exercised, accompanied by full payment for the Shares. The Option Price upon
exercise of any Option shall be payable to the Company in full, either: (a) in cash, (b) cash
equivalent approved by the Committee, (c) if

11

 

provided for by the Committee in the Agreement, by tendering previously acquired Shares (or
delivering a certification of ownership of such Shares) having an aggregate Fair Market Value at
the time of exercise equal to the total Option Price (provided that the Shares which are tendered
must have been held by the Participant for six months, if required for accounting purposes, and for
the period required by law, if any, prior to their tender to satisfy the Option Price), or (d) by a
combination of (a), (b) and (c). The Committee also may allow cashless exercises as permitted
under Federal Reserve Board’s Regulation T, subject to applicable securities law restrictions, or
by any other means which the Committee determines to be consistent with the Plan’s purpose and
applicable law. As soon as practicable after receipt of a written notification of exercise and
full payment, the Company shall deliver to the Participant, in the Participant’s name, Share
certificates in an appropriate amount based upon the number of Shares purchased under the
Option(s), and may place appropriate legends on the certificates representing such Shares.

     6.7 Limited Transferability. If permitted by the Committee in the
Agreement, a Participant may transfer an Option granted hereunder, including, but not limited to,
transfers to members of his or her Immediate Family (as defined below), to one or more trusts for
the benefit of such Immediate Family members, or to one or more partnerships where such Immediate
Family members are the only partners, if (i) the Participant does not receive any consideration in
any form whatsoever for such transfer, (ii) such transfer is permitted under applicable tax laws,
and (iii) the Participant is an Insider, such transfer is permitted under Rule 16b-3 of the
Exchange Act as in effect from time to time. Any Option so transferred shall continue to be
subject to the same terms and conditions in the hands of the transferee as were applicable to said
Option immediately prior to the transfer thereof. Any reference in any such Agreement to the
employment by or performance of services for the Company by the Participant shall continue to refer
to the employment of, or performance by, the transferring Participant. For purposes hereof,
“Immediate Family” shall mean the Participant and the Participant’s spouse, children and
grandchildren. Any Option that is granted pursuant to any Agreement that did not initially
expressly allow the transfer of said Option and that has not been amended to expressly permit such
transfer, shall not be transferable by the Participant other than by will or by the laws of descent
and distribution and such Option thus shall be exercisable in the Participant’s lifetime only by
the Participant.

     6.8 Shareholder Rights. No Participant shall have any rights as a
shareholder with respect to Shares subject to an Option until the issuance of such Shares to the
Participant pursuant to the exercise of such Option.

ARTICLE 7. STOCK APPRECIATION RIGHTS

     7.1 Grants of SARs. The Committee shall designate Participants to whom
SARs are granted, and will specify the number of Shares subject to each grant. An SAR may be
granted with or without a related Option. All SARs granted under this Plan shall be subject to an
Agreement in accordance with the terms of this Plan. A payment to the Participant upon the
exercise of a Corresponding SAR may not be more than the difference between the Fair Market Value
of the Shares subject to the Option on the date of grant and the Fair Market Value of the Shares on
the date of exercise of the Corresponding SAR.

     7.2 Duration of SARs. The duration of an SAR shall be set forth in the
Agreement as determined by the Committee. An SAR that is granted as a Corresponding SAR shall have
the same duration as the Option to which it relates. An SAR shall terminate due to the
Participant’s termination of employment at the same time as the date specified in Article 6 with
respect to Options, regardless of whether the SAR was granted in connection with the grant of an
Option.

     7.3 Exercise of SAR. An SAR may be exercised in whole at any time or in
part from time to time and at such times and in compliance with such requirements as the Committee
shall determine as set forth in the Agreement. An SAR granted under this Plan may be exercised
with respect to any number of

12

 

whole shares less than the full number of shares for which the SAR could be exercised. A
partial exercise of an SAR shall not affect the right to exercise the SAR from time to time in
accordance with this Plan and the applicable Agreement with respect to the remaining shares subject
to the SAR. The exercise of either an Option or Corresponding SAR shall result in the termination
of the other to the extent of the number of Shares with respect to which the Option or its
Corresponding SAR is exercised.

     7.4 Determination of Payment of Cash and/or Shares Upon Exercise of SAR.
At the Committee’s discretion, the amount payable as a result of the exercise of an SAR may be
settled in cash, Shares, or a combination of cash and Shares. A fractional share shall not be
deliverable upon the exercise of an SAR, but a cash payment shall be made in lieu thereof.

     7.5 Nontransferability. Each SAR granted under the Plan shall be
nontransferable except by will or by the laws of descent and distribution. During the lifetime of
the Participant to whom the SAR is granted, the SAR may be exercised only by the Participant. No
right or interest of a Participant in any SAR shall be liable for, or subject to any lien,
obligation or liability of such Participant. A Corresponding SAR shall be subject to the same
restrictions on transfer as the ISO to which it relates. Notwithstanding the foregoing, if the
Agreement so provides, a Participant may transfer an SAR (other than a Corresponding SAR that
relates to an Incentive Stock Option) under the same rules and conditions as are set forth in
Section 6.7.

     7.6 Shareholder Rights. No Participant shall have any rights as a
shareholder with respect to Shares subject to an SAR until the issuance of Shares (if any) to the
Participant pursuant to the exercise of such SAR.

ARTICLE 8. RESTRICTED STOCK; STOCK AWARDS; RESTRICTED STOCK UNITS

     8.1 Grants. The Committee may from time to time in its discretion grant
Restricted Stock, Restricted Stock Units, and Stock Awards to Participants and may determine the
number of Shares of Restricted Stock, Restricted Stock Units, or Stock Awards to be granted. The
Committee shall determine the terms and conditions of, and the amount of payment, if any, to be
made by the Employee for such Shares or Restricted Stock. A grant of Restricted Stock may, in
addition to other conditions, require the Participant to pay for such Shares of Restricted Stock,
but the Committee may establish a price below Fair Market Value at which the Participant can
purchase the Shares of Restricted Stock. Each grant of Restricted Stock shall be evidenced by an
Agreement containing terms and conditions not inconsistent with the Plan as the Committee shall
determine to be appropriate in its sole discretion.

     8.2 Restricted Period; Lapse of Restrictions. At the time a grant of
Restricted Stock is made, the Committee shall establish a period or periods of time (the
“Restricted Period”) applicable to such grant. Subject to the other provisions of this Article 8,
at the end of the Restricted Period all restrictions shall lapse and the Restricted Stock shall
vest in the Participant. At the time a grant is made, the Committee may, in its discretion,
prescribe conditions for the incremental lapse of restrictions during the Restricted Period and for
the lapse or termination of restrictions upon the occurrence of other conditions in addition to or
other than the expiration of the Restricted Period with respect to all or any portion of the
Restricted Stock. Such conditions may, but need not, include the following:

	 	(a)	 	The death, Disability or Retirement of the Employee to whom Restricted Stock
is granted, or
	 
	 	(b)	 	The occurrence of a Change in Control (as defined in Section 13.1).

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Provided, that, subject to shortening the length of the Restriction Period upon the occurrence of
such circumstances, all grants of Restricted Stock and Restricted Stock Units shall have a
Restriction Period of not less than three (3) years (but graded vesting may be provided), provided
further, that performance-based Restricted Stock and Restricted Stock Unit Awards shall be subject
to a restriction period of not less than one (1) year.

The Committee may also, in its discretion, shorten or terminate the Restricted Period, or waive any
conditions for the lapse or termination of restrictions with respect to all or any portion of the
Restricted Stock at any time after the date the grant is made.

     8.3 Rights of Holder; Limitations Thereon. Upon a grant of Restricted
Stock, the number of Shares of Restricted Stock granted to the Participant shall be registered in
the Participant’s name and shall be evidenced by an account established in the Participant’s name,
a certificate held in custody by the Company or such other method as may be selected by the
Committee. Following such action, the Participant shall have the rights and privileges of a
shareholder as to such Restricted Stock, including the right to receive dividends, if and when
declared by the Board of Directors, and to vote such Restricted Stock, except that the right to
receive cash dividends shall be the right to receive such dividends either in cash currently or by
payment in Restricted Stock, as the Committee shall determine, and except further that, the
following restrictions shall apply:

	 	(a)	 	The Participant shall not be entitled to delivery of a certificate until the
expiration or termination of the Restricted Period for the Shares represented by such
certificate and the satisfaction of any and all other conditions prescribed by the
Committee;
	 
	 	(b)	 	None of the Shares of Restricted Stock may be sold, transferred, assigned,
pledged, or otherwise encumbered or disposed of during the Restricted Period and until
the satisfaction of any and all other conditions prescribed by the Committee; and
	 
	 	(c)	 	All of the Shares of Restricted Stock that have not vested shall be
forfeited and all rights of the Participant to such Shares of Restricted Stock shall
terminate without further obligation on the part of the Company, unless the Participant
has remained an employee of (or non-Employee Director of or active consultant providing
services to) the Company or any of its Subsidiaries, until the expiration or
termination of the Restricted Period and the satisfaction of any and all other
conditions prescribed by the Committee applicable to such Shares of Restricted Stock.
Upon the forfeiture of any Shares of Restricted Stock, such forfeited Shares shall be
transferred to the Company without further action by the Participant and shall, in
accordance with Section 4.1, again be available for grant under the Plan. If the
Participant paid any amount for the Shares of Restricted Stock that are forfeited, the
Company shall pay the Participant the lesser of the Fair Market Value of the Shares on
the date they are forfeited or the amount paid by the Participant.

     With respect to any Shares received as a result of adjustments under Section 4.3 hereof and
any Shares received with respect to cash dividends declared on Restricted Stock, the Participant
shall have the same rights and privileges, and be subject to the same restrictions, as are set
forth in this Article 8.

     8.4 Delivery of Unrestricted Shares. Upon the expiration or termination
of the Restricted Period for any Shares of Restricted Stock and the satisfaction of any and all
other conditions prescribed by the Committee, the restrictions applicable to such Shares of
Restricted Stock shall lapse and a stock certificate for the number of Shares of Restricted Stock
with respect to which the restrictions have lapsed shall be delivered, free of all such
restrictions except any that may be imposed by law, a shareholders’ agreement or any other
agreement, to the holder of the Restricted Stock. The Company shall not be

14

 

required to deliver any fractional Share but will pay, in lieu thereof, the Fair Market Value
(determined as of the date the restrictions lapse) of such fractional Share to the holder thereof.
Concurrently with the delivery of a certificate for Restricted Stock, the holder shall be required
to pay an amount necessary to satisfy any applicable federal, state and local tax requirements as
set out in Article 16 below.

     8.5 Nonassignability of Restricted Stock. Unless the Committee provides
otherwise in the Agreement, no grant of, nor any right or interest of a Participant in or to, any
Restricted Stock, or in any instrument evidencing any grant of Restricted Stock under the Plan, may
be assigned, encumbered or transferred except, in the event of the death of a Participant, by will
or the laws of descent and distribution.

     8.6 Restricted Stock Units (or RSUs). Awards of Restricted Stock Units
may be made to Participants in accordance with the following terms and conditions:

	 	(a)	 	The Committee, in its discretion, shall determine and set forth in an
Agreement the number of RSUs to grant to a Participant, the vesting period, and other
terms and conditions of the award, including whether the award will be paid in cash,
Shares or a combination of the two and the time when the award will be payable (i.e.,
at vesting, termination of employment, upon a Change in Control, or another date).
	 
	 	(b)	 	Unless the Agreement granting RSUs provides otherwise, RSUs shall not be
sold, transferred or otherwise disposed of and shall not be pledged or otherwise
hypothecated.
	 
	 	(c)	 	A Participant to whom RSUs are awarded has no rights as a shareholder with
respect to the Shares represented by the RSUs unless and until the Shares are actually
delivered to the Participant, provided, however, RSUs may have dividend equivalent
rights if provided for by the Committee.
	 
	 	(d)	 	The Agreement granting RSUs shall set forth the terms and conditions that
shall apply upon the termination of the Participant’s employment with the Company
(including a forfeiture of RSUs which have not vested upon Participant’s ceasing to be
employed) as the Committee may, in its discretion, determine at the time the Award is
granted.
	 
	 	(e)	 	Any grant of RSUs may specify performance objectives that, if achieved, may
result in vesting or earlier vesting of all or a portion of the RSUs.

ARTICLE 9. PERFORMANCE SHARE AWARDS

     9.1 Award. The Committee may designate Participants to whom Performance
Share Awards will be granted from time to time for no consideration and specify the number of
shares of Common Stock covered by the Award.

     9.2 Earning the Award. A Performance Share Award, or portion thereof,
will be earned, and the Participant will be entitled to receive Shares, a cash payment or a
combination thereof, only upon the achievement by the Participant, the Company, or a Subsidiary of
such Performance Measures as the Committee, in its discretion, shall prescribe on the date of
grant.

     The Performance Measures for purposes of Awards shall be chosen by the Committee from among
the following:

	 	(a)	 	net operating income or growth in such net operating income;

15

 

	 	(b)	 	operating earnings per share or growth in such operating earnings per share;
	 
	 	(c)	 	annual growth in consolidated total revenue, loans or deposits;
	 
	 	(d)	 	changes or increases in market share;
	 
	 	(e)	 	earnings before taxes or the growth in such earnings;
	 
	 	(f)	 	stock price or the growth in such price;
	 
	 	(g)	 	return on equity, tangible equity, and assets or the growth in such returns;
	 
	 	(h)	 	total shareholders’ return or the growth in such return;
	 
	 	(i)	 	contribution to geographic expansion;
	 
	 	(j)	 	level of expenses or the reduction of expenses,
	 
	 	(k)	 	overhead ratios or changes in such ratios,
	 
	 	(l)	 	efficiency ratios or changes in such ratios;
	 
	 	(m)	 	loan quality or the changes in the level of loan quality or changes in the
ratios of net charge-offs to loans or non-performing assets to assets;
	 
	 	(n)	 	customer satisfaction scores or changes in such scores; and/or,
	 
	 	(o)	 	economic value added or changes in such value added.

     The Committee can establish other performance measures for awards granted to participants that
are not Named Executive Officers, or for awards granted to Named Executive Officers that are not
intended to qualify under the performance-based compensation provisions of Section 162(m) of the
Code.

     The Committee may in determining whether Performance Measures have been met adjust the
Company’s financial results to exclude the effect of unusual charges or income items or other
events, including acquisitions or dispositions of businesses or assets, restructurings, reductions
in force, currency fluctuations or changes in accounting, which are distortive of financial results
(either on a segment or consolidated basis). In addition, the Committee will adjust its
calculations to exclude the effect on financial results of changes in the Code or other tax laws,
or the regulations relating thereto.

     9.3 Payment. In the discretion of the Committee, the amount payable when
a Performance Share Award is earned may be settled in cash, by the grant of Shares or a combination
of cash and Shares. The aggregate Fair Market Value of the Shares received by the Participant
pursuant to a Performance Share Award, together with any cash paid to the Participant, shall be
equal to the aggregate Fair Market Value, on the date the Performance Shares are earned, of the
number of Shares equal to each Performance Share earned. A fractional Share will not be
deliverable when a Performance Share Award is earned, but a cash payment will be made in lieu
thereof.

     9.4 Shareholder Rights. No Participant shall have, as a result of
receiving a Performance Share Award, any rights as a shareholder until and to the extent that the
Performance Shares are earned

16

 

and Shares are transferred to such Participant. If the Agreement so provides, a Participant
may receive a cash payment equal to the dividends that would have been payable with respect to the
number of Shares covered by the Award between (a) the date that the Performance Shares are awarded
and (b) the date that a transfer of Shares to the Participant, cash settlement, or combination
thereof is made pursuant to the Performance Share Award. A Participant may not sell, transfer,
pledge, exchange, hypothecate, or otherwise dispose of a Performance Share Award or the right to
receive Shares thereunder other than by will or the laws of descent and distribution. After a
Performance Share Award is earned and paid in Shares , a Participant will have all the rights of a
shareholder with respect to the Shares so awarded; provided that the restrictions of Section 19.4
or any shareholders’ agreement or other agreement shall, if applicable, continue to apply.

ARTICLE 10. BENEFICIARY DESIGNATION

     To the extent applicable, each Participant under the Plan may, from time to time, name any
beneficiary or beneficiaries (who may be named contingently or successively) to whom any benefit
under the Plan is to be paid in case of his or her death before he or she receives any or all of
such benefit. Each such designation shall revoke all prior designations by the same Participant,
shall be in a form prescribed by the Company and shall be effective only when filed by the
Participant, in writing, with the Company during the Participant’s lifetime. In the absence of any
such designation, benefits remaining unpaid at the Participant’s death shall be paid to the
Participant’s estate. If required, the spouse of a married Participant domiciled in a community
property jurisdiction shall join in any designation of a beneficiary or beneficiaries other than
the spouse.

ARTICLE 11. DEFERRALS

          The Committee may permit a Participant to defer to another plan or program such Participant’s
receipt of Shares or cash that would otherwise be due to such Participant by virtue of the exercise
of an Option or SAR, the vesting of Restricted Stock or RSUs, or the earning of a Performance Share
Award. If any such deferral election is required or permitted, the Committee shall, in its sole
discretion, establish rules and procedures for such payment deferrals.

ARTICLE 12. RIGHTS OF EMPLOYEES

     12.1 Employment. Nothing in the Plan shall interfere with or limit in any
way the right of the Company or a Subsidiary to terminate any Participant’s employment by, or
performance of services for, the Company at any time, nor confer upon any Participant any right to
continue in the employ or service of the Company or a Subsidiary. For purposes of the Plan,
transfer of employment of a Participant between the Company and any one of its Subsidiaries (or
between Subsidiaries) shall not be deemed a termination of employment.

     12.2 Participation. No Employee shall have the right to be selected to
receive an Award under this Plan, or, having been so selected, to be selected to receive a future
Award.

ARTICLE 13. CHANGE IN CONTROL

     13.1 Definition. For purposes of the Plan, a “Change in Control” means
any of the following events:

	 	(a)	 	The acquisition (other than from the Company) by any Person of Beneficial
Ownership of twenty percent (20%) or more of the combined voting power of the Company’s
then outstanding voting securities; provided, however, that for purposes of this
Section 13.1,

17

 

	 	 	 	Person shall not include any person who on the Effective Date owns ten percent (10%)
or more of the Company’s outstanding securities, and a Change in Control shall not
be deemed to occur solely because twenty percent (20%) or more of the combined
voting power of the Company’s then outstanding securities is acquired by (i) a
trustee or other fiduciary holding securities under one (1) or more employee benefit
plans maintained by the Company or any of its subsidiaries, or (ii) any corporation,
which, immediately prior to such acquisition, is owned directly or indirectly by the
shareholders of the Company in the same proportion as their ownership of stock in
the Company immediately prior to such acquisition.
	 
	 	(b)	 	Consummation by the Company of (1) a merger or consolidation involving the
Company if the shareholders of the Company, immediately before such merger or
consolidation do not, as a result of such merger or consolidation, own, directly or
indirectly, more than fifty percent (50%) of the combined voting power of the then
outstanding voting securities of the corporation resulting from such merger or
consolidation in substantially the same proportion as their ownership of the combined
voting power of the voting securities of the Company outstanding immediately before
such merger or consolidation, or (2) a complete liquidation or dissolution of the
Company or consummation of the sale or other disposition of all or substantially all of
the assets of the Company.
	 
	 	(c)	 	A change in the composition of the Board such that the individuals who, as
of the Effective Date, constitute the Board (such Board shall be hereinafter referred
to as the “Incumbent Board”) cease for any reason to constitute at least a majority of
the Board; provided, however, for purposes of this Section 13.1 that any individual who
becomes a member of the Board subsequent to the Effective Date whose election, or
nomination for election by the Company’s shareholders, was approved by a vote of at
least a majority of those individuals who are members of the Board and who were also
members of the Incumbent Board (or deemed to be such pursuant to this proviso) shall be
considered as though such individual were a member of the Incumbent Board; but,
provided, further, that any such individual whose initial assumption of office occurs
as a result of either an actual or threatened election contest (as such terms are used
in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act, including any
successor to such Rule), or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board, shall not be so considered
as a member of the Incumbent Board.

     13.2 Limitation on Awards. Notwithstanding any other provisions of the
Plan and unless provided otherwise in the Agreement, if the right to receive or benefit from any
Award under this Plan, either alone or together with payments that a Participant has the right to
receive from the Company or a Subsidiary, would constitute a “parachute payment” (as defined in
Section 280G of the Code), all such payments shall be reduced to the largest amount that will
result in no portion being subject to the excise tax imposed by Section 4999 of the Code.

ARTICLE 14. AMENDMENT, MODIFICATION AND TERMINATION

     14.1 Amendment, Modification and Termination. The Board may, at any time
and from time to time, alter, amend, suspend or terminate the Plan in whole or in part; provided,
that, unless approved by the holders of a majority of the total number of Shares of the Company
represented and voted at a meeting at which a quorum is present, no amendment shall be made to the
Plan if such amendment would amend the Plan in any manner which the Board determines can become
effective only if approved by the shareholders.

18

 

     14.2 Awards Previously Granted. No termination, amendment or modification
of the Plan shall adversely affect in any material way any Award previously granted under the Plan,
without the written consent of the Participant holding such Award. The Committee shall (subject to
Section 3.2), with the written consent of the Participant holding such Award, have the authority to
cancel Awards outstanding and grant replacement Awards therefor.

     14.3 Compliance With Code Section 162(m). At all times when the Committee
determines that compliance with Code Section 162(m) is required or desired, all Awards granted
under this Plan to Named Executive Officers shall comply with the requirements of Code Section
162(m). In addition, in the event that changes are made to Code Section 162(m) to permit greater
flexibility with respect to any Award or Awards under the Plan, the Committee may, subject to this
Article 14, make any adjustments it deem appropriate.

ARTICLE 15. CANCELLATION AND RESCISSION OF AWARDS

     The Committee may provide in the Award Agreement that if, at any time during the period that
any Award is or may yet become exercisable in whole or in part, or at any time within six (6)
months prior to, or after, the termination of employment with the Company, a Participant engages in
any “Detrimental Activity” (as defined below), the Committee may, notwithstanding any other
provision in this Plan to the contrary, cancel, rescind, suspend, withhold or otherwise restrict or
limit any unexpired, unpaid or deferred Award as of the first date the Participant engages in the
Detrimental Activity, unless sooner terminated by operation of another term of this Plan or any
other agreement. Without limiting the generality of the foregoing, the Agreement may provide that
the Participant shall also pay to the Company any gain realized by the Participant from exercising
all or any portion of the Awards hereunder during a period beginning six (6) months prior to, or
after, the date on which the Participant enters into such activity.

     For purposes of this Agreement, “Detrimental Activity” shall include any of the following: (i)
engaging in any commercial activity in competition with any part of the business of the Company;
(ii) diverting or attempting to divert from the Company business of any kind, including, without
limitation, interference with any business relationship with suppliers, customers, licensees,
licensors or contractors; (iii) making, or causing or attempting to cause any other person to make,
any statement, either written or oral, or conveying any information about the Company which is
disparaging or which in any way reflects negatively upon the Company; (iv) engaging in any other
activity that is inimical, contrary or harmful to the interests of the Company, including
influencing or advising any person who is employed by or in the service of the Company to leave
such employment or service to compete with the Company or to enter into the employment or service
of any actual or prospective competitor of the Company, or influencing or advising any competitor
of the Company to employ or to otherwise engage the services of any person who is employed by the
Company or in the service of the Company, or improperly disclosing or otherwise misusing any
confidential information regarding the Company; or (v) the refusal or failure of a Participant to
provide, upon the request of the Company, a certification, in a form satisfactory to the Company,
that he or she is in full compliance with the terms and conditions of the Plan; provided, that the
Committee may provide in the Agreement that only certain of the restrictions provided above apply
for purposes of the Award Agreement.

     Should any provision to this Article 15 be held to be invalid or illegal, such illegality
shall not invalidate the whole of this Article 15, but, rather, the Plan shall be construed as if
it did not contain the illegal part or narrowed to permit its enforcement, and the rights and
obligations of the parties shall be construed and enforced accordingly.

19

 

ARTICLE 16. WITHHOLDING

     16.1 Tax Withholding. The Company shall have the power and the right to
deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to
satisfy federal, state and local taxes (including the Participant’s FICA obligation) required by
law to be withheld with respect to any taxable event arising in connection with an Award under this
Plan.

     16.2 Share Withholding. With respect to withholding required upon the
exercise of Options, or upon any other taxable event arising as a result of Awards granted
hereunder which are to be paid in the form of Shares, Participants may elect, subject to the
Committee providing for such right in the Agreement, to satisfy the withholding requirement, in
whole or in part, by having the Company withhold Shares having a Fair Market Value on the date the
tax is to be determined equal to the minimum statutory total tax which could be imposed on the
transaction. All elections shall be irrevocable, made in writing, signed by the Participant, and
elections by Insiders shall additionally comply with all legal requirements applicable to Share
transactions by such Participants.

ARTICLE 17. INDEMNIFICATION

     Each person who is or shall have been a member of the Committee, or the Board, shall be
indemnified and held harmless by the Company against and from any loss, cost, liability or expense
that may be imposed upon or reasonably incurred by him or her in connection with or resulting from
any claim, action, suit or proceeding to which he or she may be a party or in which he or she may
be involved by reason of any action taken or failure to act under the Plan and against and from any
and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by
him or her in satisfaction of any judgment in any such action, suit or proceeding against him or
her, provided he or she shall give the Company an opportunity, at its own expense, to handle and
defend the same before he or she undertakes to handle and defend it on his or her own behalf. The
foregoing right of indemnification shall be in addition to any other rights of indemnification to
which such persons may be entitled under the Company’s Articles of Incorporation or Bylaws, as a
matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them
harmless.

ARTICLE 18. SUCCESSORS

     All obligations of the Company under the Plan, with respect to Awards granted hereunder, shall
be binding on any successor to the Company, whether the existence of such successor is the result
of a direct or indirect purchase, merger, consolidation or otherwise, of all or substantially all
of the business and/or assets of the Company.

ARTICLE 19. LEGAL CONSTRUCTION

     19.1 Gender and Number. Except where otherwise indicated by the context,
any masculine term used herein shall also include the feminine; the plural shall include the
singular and the singular shall include the plural.

     19.2 Severability. If any provision of the Plan shall be held illegal or
invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the
Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not
been included.

     19.3 Requirements of Law. The granting of Awards and the issuance of
Shares under the Plan shall be subject to all applicable laws, rules and regulations, and to such
approvals by any governmental agencies or national securities exchanges as may be required.

20

 

     19.4 Regulatory Approvals and Listing. The Company shall not be required
to issue any certificate or certificates for Shares under the Plan prior to (i) obtaining any
approval from any governmental agency which the Company shall, in its discretion, determine to be
necessary or advisable, (ii) the admission of such shares to listing on any national securities
exchange or NASDAQ on which the Company’s Shares may be listed, and (iii) the completion of any
registration or other qualification of such Shares under any state or federal law or ruling or
regulation of any governmental body which the Company shall, in its sole discretion, determine to
be necessary or advisable.

     To the extent applicable, if required by the then-current Section 16 of the Exchange Act, any
“derivative security” or “equity security” offered pursuant to the Plan to any Insider may not be
sold or transferred for at least six (6) months after the date of grant of such Award. The terms
“equity security” and “derivative security” shall have the meanings ascribed to them in the
then-current Rule 16(a) under the Exchange Act.

     19.5 Securities Law Compliance. To the extent applicable, with respect to
Insiders, transactions under this Plan are intended to comply with all applicable conditions of
Rule 16b-3 or its successors under the Exchange Act. To the extent any provisions of the Plan or
action by the Committee fails to so comply, it shall be deemed null and void, to the extent
permitted by law and deemed advisable by the Committee.

     19.6 Governing Law. To the extent not preempted by Federal law, the Plan,
and all agreements hereunder, shall be construed in accordance with and governed by the laws of the
State of Georgia.

     AS APPROVED BY THE BOARD OF DIRECTORS OF UNITED COMMUNITY BANKS, INC. ON MARCH 15, 2007.

21EX-10.2 FORM OF STOCK OPTION AGREEMENT

 

EXHIBIT 10.2

UNITED COMMUNITY BANKS, INC.

AMENDED AND RESTATED

2000 KEY EMPLOYEE STOCK OPTION PLAN

STOCK OPTION AGREEMENT

(Incentive Stock Option — Executive Officer)

	 	 	 
	Optionee:

	 	                                                            
	 
	 	 
	Number of Shares:

	 	                                         Shares
	 
	 	 
	Option Exercise Price:

	 	$                          per Share
	 
	 	 
	Date of Grant:

	 	                                                            
	 
	 	 
	Vesting Schedule:

	 	Per attached Optionee Statement

referred to herein as “Exhibit B”
	 
	 	 
	Territory:
	 	 

     THIS OPTION AGREEMENT (the “Agreement”) is entered into as of the ___ day of
__________________, ____________, by and between UNITED COMMUNITY BANKS, INC., a Georgia corporation (the
“Company”), and the individual designated above (the “Optionee”).

     WHEREAS, the United Community Banks, Inc. Amended and Restated 2000 Key Employee Stock Option
Plan (the “Plan”) was adopted by the Company, effective March 15, 2007;

     WHEREAS, the Optionee performs valuable services for the Company, a Subsidiary or one of their
affiliates; and

     WHEREAS, the Board of Directors of the Company or the committee responsible for the
administration of the Plan has determined to grant the Option to the Optionee as provided herein;

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:

1.   Grant of the Option.

     1.1 Option. An option to purchase shares of the Company’s Common Stock, par value
$1.00 per share (the “Shares”), is hereby granted to the Optionee (the “Option”).

     1.2 Number of Shares. The number of Shares that the Optionee can purchase upon
exercise of the Option is set forth above.

     1.3 Option Exercise Price. The price the Optionee must pay to exercise the Option
(the “Option Exercise Price”) is set forth above.

 

 

     1.4 Date of Grant. The date that the Option is granted (the “Date of Grant”) is set
forth above.

     1.5 Type of Option. The Option is intended to qualify as an Incentive Stock Option
within the meaning of Section 422 of the Code; provided, however, that nothing in this Agreement
shall be interpreted as a representation, guarantee or other undertaking on the part of the Company
that the Option is or will be determined to be an Incentive Stock Option within the meaning of
Section 422 of the Code. To the extent this Option is not treated as an Incentive Stock Option, it
will be treated as a Nonqualified Stock Option.

     1.6 Construction. This Agreement shall be construed in accordance and consistent
with, and subject to, the provisions of the Plan (the provisions of which are incorporated herein
by reference) and, except as otherwise expressly set forth herein, the capitalized terms used in
this Agreement shall have the same definitions as set forth in the Plan.

     1.7 Execution of Agreement. The Option is evidenced by this Agreement. If the
Optionee does not execute this Agreement within thirty (30) days of receiving the Agreement, the
Committee may in its discretion cancel the Option and this Agreement.

2.   Duration.

     The Option shall be exercisable to the extent and in the manner provided herein for a period
of ten (10) years from the Date of Grant (the “Exercise Term”); provided, however, that the
Exercise Term may end earlier as provided in Sections 5 and 13 hereof.

3.   Vesting.

     The Option shall vest and become exercisable in accordance with the vesting schedule specified
in Exhibit B. The Optionee may exercise the Option to the extent it is vested during the
Exercise Term, subject to any limitations on exercise contained in Section 7 hereof.

4.   Manner of Exercise and Payment.

     4.1 Delivery. To exercise the Option, the Optionee must deliver a completed copy of
the Option Exercise Form, attached hereto as Exhibit A and incorporated herein by
reference, to the address indicated on such Form or such other address designated by the Company
from time to time. The Committee may establish a minimum number of Shares (e.g., 100) for which
the Option may be exercised at a particular time. Contemporaneously with the delivery of the
Option Exercise Form, the Optionee shall tender to the Company the aggregate Option Exercise Price
for the Shares as to which the Optionee is exercising the Option by (i) cash, check, or wire
transfer, (ii) delivering or properly attesting to ownership of Shares with a Fair Market Value at
the date of exercise equal to the aggregate Option Exercise Price for the Shares

2

 

as to which the
Optionee is exercising the Option, (iii)
a broker-assisted cashless exercise transaction through a brokerage firm designated by the
Optionee, or (iv) or by such other method of payment as may be acceptable to the Committee pursuant
to the Plan. The Company shall deliver to the Optionee certificates evidencing the Shares as to
which the Option was exercised within thirty (30) days of the date on which the Optionee delivers
the Option Exercise Form and makes payment of the aggregate Option Exercise Price to the Company or
shall make such Shares available for electronic delivery in the U.S. to an account the Optionee
designates in writing within three (3) business days after the date on which the Optionee delivers
the Option Exercise Form and makes payment of the aggregate Option Exercise Price to the Company,
and in either case such Shares shall be free and clear of all liens, security interests, pledges or
other claims or charges, except those provided in this Agreement or the Plan, or any other
agreement affecting the Shares. Notwithstanding the foregoing, if the Optionee is a non-exempt
employee for purposes of the Fair Labor Standards Act of 1938, the Optionee may not exercise any
Option prior to the date that is six (6) months after the Date of Grant unless the Optionee’s
employment has terminated due to death, Disability, or Retirement after the Date of Grant.

     4.2 No Rights as Shareholder. The Optionee shall not be deemed to be the holder of,
or to have any of the rights of a holder with respect to any Shares subject to the Option until (i)
the Option shall have been exercised pursuant to the terms of this Agreement and the Optionee shall
have paid the full purchase price for the number of Shares in respect of which the Option was
exercised, (ii) the Company shall have issued and delivered the Shares to the Optionee, and (iii)
the Optionee’s name shall have been entered as a shareholder of record on the books of the Company,
whereupon the Optionee shall have full voting and other ownership rights with respect to such
Shares, subject to divestment pursuant to Section 13.

5.   Termination of Employment.

     5.1 Termination of Employment for Cause. If the Optionee’s employment is terminated
by the Company for Cause, the outstanding Option shall expire immediately, and the Optionee’s right
to exercise the outstanding Option (whether vested or not vested) shall terminate immediately upon
the date of the Optionee’s termination of employment.

     5.2 Termination of Employment Without Cause or For Good Reason.

          (1) If the Optionee’s employment with the Company and any Subsidiary is terminated
involuntarily by the Company without Cause or is terminated by the Optionee for Good Reason (as
defined in subsection (2) below), the Option shall continue to vest in accordance with the original
vesting schedule set forth in this Agreement (just as if the Optionee had remained employed) and
shall remain exercisable at any time prior to the expiration of the term of the Option. In the
event of the Optionee’s death after a termination covered by this subsection 5.2, the Option shall
continue to vest and be exercisable in accordance with this subsection 5.2 as if the Optionee had
lived and the Option shall be exercisable by the persons described in Section 5.4.

          (2) For purposes of this Option, the Optionee shall be entitled to terminate his employment
with the Company for Good Reason in the event, without the Optionee’s express

3

 

written consent, of any one of the following acts by the Company, or failures by the Company to
act, unless, in the case of any act or failure to act described in paragraphs (i), (iii), or (iv)
below, such act or failure to act is corrected prior to the Optionee’s date of termination:

     (i) a material reduction in the Optionee’s responsibilities at the Company; or

     (ii) the required relocation of the Optionee’s employment to a location outside
of the market area of the Company; or

     (iii) a material reduction in the levels of coverage of the Optionee under the
Company’s director and officer liability insurance policy or indemnification
commitments; or

     (iv) a substantial reduction in the Optionee’s base salary, a material
reduction in his incentive compensation or the taking of any action by the Company
which would, directly or indirectly, materially reduce any of the benefits provided
to the Optionee under any of the Company’s pension, 401(k) deferred compensation,
life insurance, medical, accident or disability plans in which the Optionee is
participating.

     The Optionee’s right to terminate employment for Good Reason shall not be affected by the
Optionee’s incapacity due to physical or mental illness, except for a Disability as defined in the
Plan. The Optionee’s continued employment shall not constitute consent to, or a waiver of rights
with respect to, any act or failure to act constituting Good Reason hereunder.

     5.3 Termination of Employment Due to Retirement from the Company. If the Optionee’s
employment with the Company is terminated upon the Retirement of the Optionee, the outstanding
unvested portion of the Option shall continue to vest in accordance with the vesting schedule set
forth in this Agreement (just as if the Optionee had remained employed) and the Option (whether
vested or not vested as of the date of termination) shall remain exercisable at any time prior to
the expiration of the term of the Option.

     5.4 Termination of Employment Due to Death. If the Optionee dies while actively
employed by the Company, the outstanding unvested portion of the Option shall immediately vest, and
thereafter the Option shall remain exercisable at any time prior to its expiration date or for one
(1) year after the date of death, whichever period is shorter, (i) by such person(s) who have
acquired the Optionee’s rights by will or the laws of descent and distribution, or (ii) if no such
person in (i) exists, by the executor or representative of the Optionee’s estate.

     5.5 Termination of Employment by Disability. In the event the employment of the
Optionee is terminated by reason of Disability, the outstanding unvested portion of the Option
shall expire as of the date the Committee determines the definition of Disability to have been
satisfied by the Optionee, and the outstanding vested portion of the Option as of that date shall
remain exercisable
at any time prior to its expiration date, or for one (1) year after the Committee’s determination
of Disability, whichever period is shorter.

     5.6 Voluntary Termination of Employment. If the Optionee voluntarily terminates his
or her employment with the Company (except for Good Reason or upon Retirement), the outstanding
unvested portion of the Option shall expire as of the date of

4

 

termination of employment, and the
vested portion of the Option as of the date of termination of employment shall remain exercisable
at any time prior to its expiration date or for three (3) months after the date of termination of
employment, whichever period is shorter.

     5.7 Employment by Subsidiary. For purposes of this Section and Sections 8 and 13,
employment with the Company includes employment with any Subsidiary or service as a member of the
Board of Directors of the Company or a Subsidiary. A change of employment between the Company and
any Subsidiary or between Subsidiaries or a change in the nature of the Optionee’s service
relationship with the Company and the Subsidiaries (e.g., from employee to Director) without any
interruption in the Optionee’s provision of services is not a termination of employment under this
Agreement.

6.   Nontransferability.

     The Option shall not be transferable other than by will or by the laws of descent and
distribution and during the lifetime of the Optionee. The Option shall be exercisable only by the
Optionee except as provided in Section 5.4.

7.   Securities Laws Restrictions.

     The Option may not be exercised at any time unless, in the opinion of counsel for the Company,
the issuance and sale of the Shares issued upon such exercise is exempt from registration under the
Securities Act of 1933, as amended, or any other applicable federal or state securities law, rule
or regulation, or the Shares have been duly registered under such laws. The Company intends to
register the Shares issuable upon the exercise of the Option; however, until the Shares have been
registered under all applicable laws, the Optionee shall represent, warrant and agree, as a
condition to the exercise of any Option, that the Shares are being purchased for investment only
and without a view to any sale or distribution of such Shares and that such Shares shall not be
transferred or disposed of in any manner without registration under such laws, unless it is the
opinion of counsel for the Company that such a disposition is exempt from such registration. The
Optionee acknowledges that an appropriate legend giving notice of the foregoing restrictions may
appear conspicuously on all certificates evidencing the Shares issued upon the exercise of the
Option.

8.   No Right to Continued Employment.

     Nothing in this Agreement or the Plan shall be interpreted or construed to confer upon the
Optionee any right with respect to continuance of employment by the Company or any Subsidiary, nor
shall this Agreement or the Plan interfere in any way with the right of the Company or a Subsidiary
to terminate the Optionee’s employment at any time.

9.   Adjustments.

     In the event of a change in capitalization, the Committee shall make appropriate adjustments
in accordance with the provisions of Section 4.3 of the Plan. The adjustment shall be effective
and final, binding and conclusive for all purposes of the Plan and this Agreement.

5

 

10.   Withholding of Taxes.

     10.1 Prior to the issuance of Shares to the Optionee upon exercise of the Option, the Optionee
shall pay the federal, state, and local income taxes and other amounts as may be required by law to
be withheld (the “Withholding Taxes”) (if any) to the Company in cash or by check or wire transfer.
In satisfaction of the Withholding Taxes, the Optionee may make a written election (the “Tax
Election”) to satisfy such withholding obligation by a broker-assisted cashless exercise
transaction through a brokerage firm designated by the Optionee, by delivering Shares (that have
been owned by the Optionee for at least six (6) months or such other period as may be required by
the Committee) or by having the Company retain from the Shares to be delivered a number of Shares
having an aggregate Fair Market Value equal to the Withholding Taxes, provided that, if the
Optionee may be subject to liability under Section 16(b) of the Exchange Act, the election must
comply with the requirements applicable to Share transactions by the Optionee. The Company shall
have the right to deduct from any amounts payable to the Optionee for salary, bonuses or otherwise
an amount equal to Withholding Taxes with respect to the Option.

     10.2 If the Optionee makes a disposition, within the meaning of Section 424(c) of the Code and
regulations promulgated thereunder, of any Share or Shares issued to him pursuant to his exercise
of the Option within the two-year period commencing on the day after the Date of Grant or within
the one-year period commencing on the day after the date of transfer of such Share or Shares to the
Optionee pursuant to such exercise, the Optionee shall, within ten (10) days of such disposition,
notify the Company thereof, by delivery of written notice to the Company at its principal executive
office, and immediately deliver to the Company the amount of Withholding Taxes.

11.   Optionee Bound by the Plan.

     The Optionee hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all
the terms and provisions thereof.

12.   Modification of Agreement.

     Except as expressly otherwise provided herein, this Agreement may not be modified, amended,
suspended or terminated, and any terms or conditions may not be waived, except by a written
instrument executed by the parties hereto.

13.   Cancellation and Rescission of Awards; Return of Profits.

     13.1 If, during his employment with the Company or at any time during the one (1) year after the Date of Termination, the Optionee violates the
restrictive covenants set forth in Section 13.2 below, then the Committee shall, notwithstanding
any other
provision in this Agreement to the contrary, (i) cancel any outstanding portion of the Option
(whether or not vested), and (ii) repurchase any Shares issued to the Optionee pursuant to exercise
of the Option during the period six (6) months prior to and one (1)
year after the Date of Termination at a per Share repurchase price equal to the Option Exercise Price, and require the
Optionee to pay to the Company any gain realized by Optionee from the sale of Shares issued to the
Optionee pursuant to exercise of the Option during such period.

6

 

     13.2 The Optionee will not directly or indirectly, individually, or on behalf of any Person
other than the Company or a Subsidiary:

     (i) solicit any Customers for the purpose of providing services identical to or reasonably
substitutable for the Company’s Business;

     (ii) solicit or induce, or in any manner attempt to solicit or induce, any Person employed by
the Company to leave such employment, whether or not such employment is pursuant to a written
contract with the Company or any Subsidiary or is at will;

     (iii) engage in the Company’s Business within the Territory or accept employment or
engagement within the Territory as a director, officer, executive, manager, or business
consultant for any Person engaging in the Company’s Business; or

     (iv) knowingly or intentionally damage or destroy the goodwill and esteem of the
Company, any Subsidiary, the Company’s Business or the Company’s or any Subsidiary’s
suppliers, employees, patrons, customers, and others who may at any time have or have had
relations with the Company or any Subsidiary.

The Optionee further agrees that he or she will not, except as necessary to carry out his duties as
an employee of the Company, disclose or use Confidential Information. The Optionee further agrees
that, upon termination or expiration of employment with the Company for any reason whatsoever or at
any time, the Optionee will upon request by the Company deliver promptly to the Company all
materials (including electronically-stored materials), documents, plans, records, notes, or other
papers, and any copies in the Optionee’s possession or control, relating in any way to the
Company’s Business, which at all times shall be the property of the Company.

     13.3 For purposes of this Section 13, the following terms shall have the meanings specified
below:

     (i) “Company’s Business” means the business of operating a commercial or retail bank,
savings association, mutual thrift, credit union, trust, or other business or financial
services organization or entity.

     (ii) “Confidential Information” means information, without regard to form, relating to
the Company’s or any Subsidiary’s customers, operation, finances, and business that derives
economic value, actual or potential, from not being generally known to other Persons,
including, but not limited to, technical or non-technical data (including personnel data),
formulas, patterns, compilations (including compilations of customer
information), programs, devices, methods, techniques, processes, financial data or
lists of actual or potential customers (including identifying information about customers),
whether or not in writing. Confidential Information includes information disclosed to the
Company or any Subsidiary by third parties that the Company or any Subsidiary is obligated
to maintain as confidential. Confidential Information subject to this Agreement may include
information that is not a trade secret under applicable law, but information not
constituting a trade secret only shall be treated as Confidential Information under this
Agreement for a two (2) year period after the Date of Termination.

7

 

     (iii) “Customers” means all Persons that (1) the Optionee serviced or solicited on
behalf of the Company or any Subsidiary, (2) whose dealings with the Company or any
Subsidiary were coordinated or supervised, in whole or in part, by the Optionee, or (3)
about whom the Optionee obtained Confidential Information, in each case during the term of
this Agreement or while otherwise employed by the Company.

     (iv) “Date of Termination” means the date upon which the Optionee’s employment with the
Company ceases for any reason.

     (v) “Person” means any individual, corporation, bank, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization or other entity.

14.   Severability.

     Should any provision of this Agreement be held by a court of competent jurisdiction to be
unenforceable or invalid for any reason, the remaining provisions of this Agreement shall not be
affected by such holding and shall continue in full force in accordance with their terms.

15.   Governing Law.

     The validity, interpretation, construction and performance of this Agreement shall be governed
by the laws of the United States and the laws of the State of Georgia without giving effect to the
conflicts of laws principles thereof.

16.   Successors in Interest.

     This Agreement shall be binding upon, and inure to the benefit of, the Company and its
successors and assigns, and upon any person acquiring, whether by merger, consolidation,
reorganization, purchase of stock or assets, or otherwise, all or substantially all of the
Company’s assets and business. This Agreement shall inure to the benefit of the Optionee’s heirs
and legal representatives. All obligations imposed upon the Optionee and all rights granted to the
Company under this Agreement shall be final, binding and conclusive upon the Optionee’s heirs,
executors, administrators and successors.

17.   Entire Agreement.

     This Agreement and the Plan contain the entire agreement and understanding of the parties
hereto with respect to the subject matter contained herein and supersede all prior communications,
representations and negotiations in respect thereto.

8

 

18.   Resolution of Disputes.

     Any dispute or disagreement which may arise under, or as a result of, or in any way relate to,
the interpretation, construction or application of this Agreement and the Plan shall be determined
by the Committee. Any determination made by the Committee shall be final, binding and conclusive
on the Optionee and the Company and their successors, assigns, heirs, executors, administrators and
legal representatives for all purposes.

19.   Legal Construction.

     The legal construction and interpretation of this Agreement (including, but not limited to,
issues of gender, plural or singular, governing law and severability) shall be governed by the
provisions of Article 19 of the Plan.

[EXECUTION PAGE FOLLOWS]

9

 

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

	 	 	 	 	 
	 	UNITED COMMUNITY BANKS, INC.

 	 
	 	By:  	/s/
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

     By signing below, the Optionee hereby accepts the Option subject to all its terms and
provisions and agrees to be bound by the terms and provisions of this Agreement and the Plan. The
Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations
of the Board of Directors of the Company, or the Compensation Committee or other Committee
responsible for the administration of the Plan, upon any questions arising under the Plan. The
Optionee authorizes the Company to withhold, in accordance with applicable law, from any
compensation payable to him or her, any taxes required to be withheld by federal, state, local or
foreign law as a result of the grant, existence or exercise of the Option, or subsequent sale of
the Shares.

	 	 	 	 	 
	 	OPTIONEE

 	 
	 	By:  	/s/
 	 
	 	 	Name:  	 	 
	 	 	 	 
	 

[EXHIBITS FOLLOW]

10

 

EXHIBIT A

OPTION EXERCISE FORM

     I,                     , do hereby exercise the Option with a Date of Grant of
                    ,            granted to me by the Option Agreement executed in connection therewith.
The number of Shares being purchased, the Exercise Price and the Total Option Exercise Price are
set forth below:

	 	 	 	 	 
	Number of Shares:

	 	 	 	                                Shares
	 
	 	 	 	 
	Option Exercise Price Per Share

	 	x
	 	$                                per Share
	 
	 	 	 	 
	Total Option Exercise Price:

	 	=
	 	$                               

The Total Option Exercise Price is included with this Form.

	 	 	 
	Date:                                                                       

	 	                                                                      
	 

	 	Signature

Send or deliver this Form with an original signature to

United Community Banks, Inc.

P.O. Box 398, 59 Highway 515

Blairsville, GA 30512

Attn:                                         

11

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