Document:

exv10w2

 

Exhibit 10.2

TD BANKNORTH INC.

NONQUALIFIED STOCK OPTION AGREEMENT

AMENDED AND RESTATED 2003 EQUITY INCENTIVE PLAN

1. GRANT OF OPTION:

     TD BANKNORTH INC. (the “Company”), granted to ___(the “Optionee”), effective ___
___, ___(the “Grant Date”), an option (the “Option”), to purchase an aggregate of ___shares of
the Company’s Common Stock, $0.01 par value (“Shares” of “Stock”), at a price of $  per share.
The Shares subject to the Option are sometimes referred to as the “Option Shares.” The Option has
been granted pursuant to the Company’s Amended and Restated 2003 Equity Incentive Plan (the
“Plan”), and is subject to the terms and conditions of this Agreement and of the Plan. Capitalized
terms not separately defined herein shall be defined as provided in the Plan. This option is not
intended to be an Incentive Stock Option as described in Section 422 of the Internal Revenue Code
of 1986 as amended (the “Code”).

2. BASIC TERMS OF OPTION:

	 	(a)  	Term: This Option shall extend from the Grant Date until the date immediately
preceding the tenth anniversary of the Grant Date (the “Expiration Date”), provided
that this Option shall only be exercisable as permitted in Section 2(b) below.
	 
	 	(b)  	Schedule of Exercisability: Except as otherwise specifically provided in this
Agreement, this Option shall become exercisable pursuant to the following schedule:

	 	 	 	 
	 Years of Continuous	 	 	Percentage of the Option Shares
	 Employment with the Company	 	 	for which the
	 or an Affiliate after the Grant Date	 	 	Option may be Exercised
	 	 	 	 
	Grant Date until the day before the first
anniversary of the Grant Date
	 	 	0%
	 
	 	 	 
	First anniversary of the Grant Date until
the day before the second anniversary of
the Grant Date
	 	 	33%
	 
	 	 	 
	Second anniversary of the Grant Date until
the day before the third anniversary of
the Grant Date
	 	 	67%
	 
	 	 	 
	Third anniversary of the Grant Date and
thereafter
	 	 	100%

 

 

For all purposes of this Option, (i) “employment” shall be defined in accordance
with the provisions of Treasury Regulations Section 1.421-7(h) (or any successor
regulations); and (ii) if this Option shall be assumed or a new option substituted
therefore in a transaction to which Section 424 of the Code applies, employment by
such assuming or substituted corporation (hereinafter called the “Successor
Corporation”) shall be considered for all purposes of this Option to be employment
by the Company or an Affiliate of the Company, as the case may be. The Company and
its Affiliates are referred to collectively as the “Group.” The Option shall in all
events expire on the Expiration Date (unless sooner exercised or terminated) and may
not be exercised at any time thereafter.

	 	(c)  	Exercise Following Termination of Employment:

	 	(i)  	If the Optionee ceases to be an employee of the Group on
account of death, Disability or Early Retirement (as defined below), then (A)
the Option, to the extent it has not yet become exercisable, shall become
exercisable, and (B) the Option shall remain exercisable until the earlier of
the first anniversary of the date the Optionee’s employment terminates or the
Expiration Date, and shall then expire.
	 
	 	   	For purposes of this Agreement, “Early Retirement” means voluntary
termination of employment after (A) the Optionee has attained age 55 and (B)
either (1) has become eligible for a fully vested benefit under the
Company’s Retirement Plan, as amended (the “Retirement Plan”), or (2) if at
the time of retirement, the Optionee was employed by an Affiliate that is
not an “Employer” as defined in the Retirement Plan, would have become so
eligible if his or her Affiliate employer were an “Employer” as defined in
the Retirement Plan.
	 
	 	(ii)  	If the Optionee ceases to be an employee of the Group on
account of Retirement (as defined below), then (A) the Option, to the extent it
has not yet become exercisable, shall become exercisable, and (B) the Option
shall remain exercisable until the earlier of the third anniversary of the date
the Optionee’s employment terminates or the Expiration Date, and shall then
expire.
	 
	 	   	For purposes of this Agreement, “Retirement” means voluntary termination of
employment with the Group after the Optionee has (A) attained age 65 and (B)
either (1) has become eligible for a fully vested benefit under the
Retirement Plan, or (2) if at the time of retirement, the Optionee was
employed by an Affiliate that is not an “Employer” as defined in the
Retirement Plan, would have become so eligible if his or her Affiliate
employer were an “Employer” as defined in the Retirement Plan.
	 
	 	(iii)  	If the Optionee ceases to be an employee of the Group for any
reason other than death, Disability, Early Retirement or Retirement, the
Option, to the extent not then exercisable, shall expire immediately upon such
termination, and, to the extent exercisable, shall remain exercisable for

2

 

	 	   	ninety (90) days after such termination (but not beyond the Expiration
Date), and shall thereafter expire.

	 	(d)  	Change of Control:
	 
	 	   	Notwithstanding any other provision of this Agreement, following a Change of
Control, all Options shall become exercisable, as provided in Section 12 of the
Plan, and notwithstanding Section 2(c) above, in the event an Optionee’s employment
terminates, the Option shall remain exercisable until the earlier of (i) the third
anniversary of the date the Optionee’s employment terminates, or (ii) the Expiration
Date.

3. EXERCISE OF OPTION:

Subject to the conditions set forth in this Agreement, this Option may be exercised by the
Optionee’s delivery of written notice of exercise to the Secretary of the Company,
specifying the number of whole Option Shares to be purchased and the purchase price to be
paid therefor. The Optionee may purchase less than the number of Option Shares covered
hereby, provided that no partial exercise of this Option may be for any fractional Share.
The Company shall then schedule a closing date as soon as practicable, but no later than
thirty (30) business days following receipt of such notice. Unless otherwise agreed by the
Committee, payment of the purchase price for Shares purchased upon exercise of the Option
shall be made by delivery to the Company of cash or a certified or bank check to the order
of the Company in an amount equal to the purchase price of such Shares; or by delivery of a
properly executed exercise notice, together with irrevocable instructions to a broker
directing the broker to sell the Shares and then to properly deliver to the Company the
amount of sale or loan proceeds to pay the exercise price, all in accordance with the
regulations of the Federal Reserve Board. As a condition to any exercise of the Option, the
Optionee shall make arrangement, reasonably acceptable to the Company, for withholding of
any tax or other amount required to be withheld under applicable law in connection with the
exercise of the Option. The Company shall, upon payment of the option price for the number
of Shares purchased, and delivery of a subscription agreement in form satisfactory to the
Committee, make prompt delivery of such Shares to the Optionee, provided that if any law or
regulation requires the Company to take any action with respect to such Shares before the
issuance thereof, then the date of delivery of such Shares shall be extended for the period
necessary to complete such action. No shares shall be issued and delivered upon exercise of
any option unless and until, in the opinion of counsel for the Company, any applicable
registration requirements of the Securities Act of 1933, any applicable listing requirements
of any national securities exchange on which stock of the same class is then listed, or any
other requirements of law or of any regulatory bodies having jurisdiction over such issuance
and delivery, shall have been fully complied with.

4. NONTRANSFERABILITY OF OPTION:

	 	(a)  	During the Optionee’s lifetime, the Option may be exercised only by the
Optionee. The Option shall not be sold, transferred, assigned, pledged, hypothecated,
attached, executed upon or otherwise disposed of in any way (whether by operation of
law or otherwise), in whole or in part.

3

 

	 	(b)  	If the Optionee should die while in the employment of the Group, the Option may
be exercised by the person designated in the Optionee’s will or, in the absence of such
designation, by the Optionee’s estate, to the extent provided herein.
	 
	 	(c)  	If the spouse of the Optionee has or shall have acquired a community property
interest in the Option, the Optionee (or permitted successors-in-interest upon the
Optionee’s death) may exercise the Option on behalf of the spouse of the Optionee, or
such spouse’s successor-in-interest.

5. NO SPECIAL RIGHTS:

The Optionee shall have no rights as a shareholder with respect to any Shares which may be
purchased by exercise of this Option unless and until a certificate representing such Shares
is duly issued and delivered to the Optionee. No adjustment shall be made for dividends or
other rights for which the record date is prior to the date such stock certificate is
issued.

6. WITHHOLDING TAXES:

The Company’s obligation to deliver Shares upon the exercise of this Option shall be subject
to the Optionee’s satisfaction of all applicable federal, state and local income and
employment tax withholding requirements.

7. MISCELLANEOUS:

	 	(a)  	Except as provided herein, this Option may not be amended or otherwise modified
unless evidenced in writing and signed by the Company and the Optionee. In the event
that the Committee determines, after a review of Section 409A of the Code and all
applicable Internal Revenue Service guidance, that the Plan or any provision thereof or
Award thereunder should be amended to comply with Section 409A of the Code, the
Committee may amend the Plan and this Agreement to make any changes required to comply
with Section 409A of the Code.
	 
	 	(b)  	All rights and obligations of the Company and the Optionee are subject to the
terms and conditions of the Plan. In the event of any conflict between the terms of
the Plan and the terms of this Agreement, the terms of the Plan shall govern. The
number of Shares and the exercise price are subject to adjustment as provided in the
Plan.
	 
	 	(c)  	Neither Shares acquired on exercise of the Option, nor the Option, nor any
interest in either of them, may be sold, assigned, pledged, hypothecated, encumbered or
in any other manner transferred or disposed of, in whole or in part, except in
compliance with the terms, conditions and restrictions as set forth in the Certificate
of Incorporation of the Company, the Plan, applicable federal and state securities laws
or any other applicable laws or regulations or listing requirements and the terms and
conditions hereof.

4

 

	 	(d)  	The authority to interpret and administer this Agreement shall be vested in the
Committee, and the Committee shall have all powers with respect to this Agreement as it
has with respect to the Plan. Any interpretation of the Committee of the provisions of
the Plan or this Agreement made in good faith shall be final and binding on all
parties.
	 
	 	(e)  	This Agreement does not confer on the Optionee any right with respect to
continued employment or Service with the Company or any Affiliate, nor shall it
interfere in any way with any right the Company or any Affiliate would otherwise have
to terminate or modify the terms of the Participant’s employment or Service at any
time.
	 
	 	(f)  	The Optionee agrees that no member of the Committee or of the Board or the
Company or its Affiliates shall be personally liable for any actions taken in good
faith in connection with the Plan or this Agreement.
	 
	 	(g)  	This Option shall be governed by and construed in accordance with the laws of
the State of Delaware.

[NOTE: Section 8 below is only for inclusion in grant agreements for the 23 officers who have an
employment or retention agreement.]

8. CONSENT TO AMENDED DEFINITION:

The Company and the Optionee expressly agree that, notwithstanding any provision in any
employment or retention agreement between the Company and the Optionee to the contrary, the
term “Change of Control” shall have the meaning set forth in the Plan, and not as set forth
in any employment or retention agreement between the Company and the Optionee. The Optionee
acknowledges that the definition of Change of Control included in the Plan may in certain
circumstances be less favorable to the Optionee, and the Optionee agrees to such change.
Except as expressly noted in this Section 8, this Agreement shall not by implication or
otherwise alter, modify, amend or in any way affect any of the terms of any employment or
retention agreement between the Company and the Optionee.

	 	 	 	 	 
	 	 	TD BANKNORTH INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	

	 	Optionee:	 	 
	

	 	 	 	 
	

	 	 	 	      Name:
	 
	 	 	 	 
	

	 	Date:	 	 
	

	 	 	 	 

5exv10w3

 

Exhibit 10.3

Non-employee directors

TD BANKNORTH INC.

NONQUALIFIED STOCK OPTION AGREEMENT

AMENDED AND RESTATED 2003 EQUITY INCENTIVE PLAN

1. GRANT OF OPTION:

     TD BANKNORTH INC. (the “Company”), granted to ___(the “Optionee”), effective ___
___, ___(the “Grant Date”), an option (the “Option”), to purchase an aggregate of ___shares of
the Company’s Common Stock, $0.01 par value (“Shares” of “Stock”), at a price of $  per share.
The Shares subject to the Option are sometimes referred to as the “Option Shares.” The Option has
been granted pursuant to the Company’s Amended and Restated 2003 Equity Incentive Plan (the
“Plan”), and is subject to the terms and conditions of this Agreement and of the Plan. Capitalized
terms not separately defined herein shall be defined as provided in the Plan. The Company and its
Affiliates are referred to collectively as the “Group.” This option is not intended to be an
Incentive Stock Option as described in Section 422 of the Internal Revenue Code of 1986 as amended
(the “Code”).

2. BASIC TERMS OF OPTION:

	 	(a)  	Term: This Option shall extend from the Grant Date until the date immediately
preceding the tenth anniversary of the Grant Date (the “Expiration Date”).
	 
	 	(b)  	Schedule of Exercisability: Except as otherwise specifically provided in this
Agreement, this Option shall be fully exercisable in whole or in part commencing on the
Grant Date through and including the Expiration Date. The Option shall in all events
expire on the Expiration Date (unless sooner exercised or terminated) and may not be
exercised at any time thereafter.
	 
	 	(c)  	Exercise Following Termination of Service:

	 	(i)  	If the Optionee ceases to be a non-employee director of any
member of the Group on account of Retirement (as defined below), then the
Option shall remain exercisable until the earlier of the third anniversary of
the date the Optionee’s Service terminates or the Expiration Date, and shall
then expire.
	 
	 	   	For purposes of this Agreement, “Retirement” means voluntary termination of
Service with the Group after the Optionee has attained age 72.
	 
	 	(ii)  	Notwithstanding any other provision of this Agreement, in the
event an Optionee’s Service terminates following a Change of Control, the
Option shall remain exercisable until the earlier of the third anniversary of
the date the Optionee’s Service terminates or the Expiration Date, and shall
then expire.

 

 

	 	(iii)  	If the Optionee ceases to be a non-employee director of any
member of the Group for any reason not covered by clauses (i) and (ii) above,
then the Option shall remain exercisable until the earlier of the first
anniversary of the date the Optionee’s Service terminates or the Expiration
Date, and shall then expire.

3. EXERCISE OF OPTION:

Subject to the conditions set forth in this Agreement, this Option may be exercised by the
Optionee’s delivery of written notice of exercise to the Secretary of the Company,
specifying the number of whole Option Shares to be purchased and the purchase price to be
paid therefor. The Optionee may purchase less than the number of Option Shares covered
hereby, provided that no partial exercise of this Option may be for any fractional Share.
The Company shall then schedule a closing date as soon as practicable, but no later than
thirty (30) business days following receipt of such notice. Unless otherwise agreed by the
Committee or the Board, payment of the purchase price for Shares purchased upon exercise of
the Option shall be made by delivery to the Company of cash or a certified or bank check to
the order of the Company in an amount equal to the purchase price of such Shares; or by
delivery of a properly executed exercise notice, together with irrevocable instructions to a
broker directing the broker to sell the Shares and then to properly deliver to the Company
the amount of sale or loan proceeds to pay the exercise price, all in accordance with the
regulations of the Federal Reserve Board. As a condition to any exercise of the Option, the
Optionee shall make arrangement, reasonably acceptable to the Company, for withholding of
any tax or other amount required to be withheld under any applicable law in connection with
the exercise of the Option. The Company shall, upon payment of the option price for the
number of Shares purchased, and delivery of a subscription agreement in form satisfactory to
the Board, make prompt delivery of such Shares to the Optionee, provided that if any law or
regulation requires the Company to take any action with respect to such Shares before the
issuance thereof, then the date of delivery of such Shares shall be extended for the period
necessary to complete such action. No shares shall be issued and delivered upon exercise of
any option unless and until, in the opinion of counsel for the Company, any applicable
registration requirements of the Securities Act of 1933, any applicable listing requirements
of any national securities exchange on which stock of the same class is then listed, or any
other requirements of law or of any regulatory bodies having jurisdiction over such issuance
and delivery, shall have been fully complied with.

4. NONTRANSFERABILITY OF OPTION:

	 	(a)  	During the Optionee’s lifetime, the Option may be exercised only by the
Optionee. The Option shall not be sold, transferred, assigned, pledged, hypothecated,
attached, executed upon or otherwise disposed of in any way (whether by operation of
law or otherwise), in whole or in part.
	 
	 	(b)  	If the Optionee should die while serving as a non-employee director of any
member of the Group, the Option may be exercised by the person designated in the
Optionee’s will or, in the absence of such designation, by the Optionee’s estate, to
the extent provided herein.

2

 

	 	(c)  	If the spouse of the Optionee has or shall have acquired a community property
interest in the Option, the Optionee (or permitted successors-in-interest upon the
Optionee’s death) may exercise the Option on behalf of the spouse of the Optionee, or
such spouse’s successor-in-interest.

5. NO SPECIAL RIGHTS:

The Optionee shall have no rights as a shareholder with respect to any Shares which may be
purchased by exercise of this Option unless and until a certificate representing such Shares
is duly issued and delivered to the Optionee. No adjustment shall be made for dividends or
other rights for which the record date is prior to the date such stock certificate is
issued.

6. WITHHOLDING TAXES:

The Company’s obligation to deliver Shares upon the exercise of this Option shall be subject
to the Optionee’s satisfaction of any applicable federal, state and local income and
employment tax withholding requirements.

7. MISCELLANEOUS:

	 	(a)  	Except as provided herein, this Option may not be amended or otherwise modified
unless evidenced in writing and signed by the Company and the Optionee. In the event
that the Board determines, after a review of Section 409A of the Code and all
applicable Internal Revenue Service guidance, that the Plan or any provision thereof or
Award thereunder should be amended to comply with Section 409A of the Code, the Board
may amend the Plan and this Agreement to make any changes required to comply with
Section 409A of the Code.
	 
	 	(b)  	All rights and obligations of the Company and the Optionee are subject to the
terms and conditions of the Plan. In the event of any conflict between the terms of
the Plan and the terms of this Agreement, the terms of the Plan shall govern. The
number of Shares and the exercise price are subject to adjustment as provided in the
Plan.
	 
	 	(c)  	Neither Shares acquired on exercise of the Option, nor the Option, nor any
interest in either of them, may be sold, assigned, pledged, hypothecated, encumbered or
in any other manner transferred or disposed of, in whole or in part, except in
compliance with the terms, conditions and restrictions as set forth in the Certificate
of Incorporation of the Company, the Plan, applicable federal and state securities laws
or any other applicable laws or regulations or listing requirements and the terms and
conditions hereof.
	 
	 	(d)  	The authority to interpret and administer this Agreement shall be vested in the
Board, and the Board shall have all powers with respect to this Agreement as it has
with respect to the Plan. Any interpretation of the Board of the provisions of the
Plan or this Agreement made in good faith shall be final and binding on all parties.

3

 

	 	(e)  	This Agreement does not confer on the Optionee any right with respect to
continuance of Service with the Company or any Affiliate, nor shall it interfere in any
way with any right the Company or any Affiliate would otherwise have to terminate or
modify the terms of the Participant’s Service at any time.
	 
	 	(f)  	The Optionee agrees that no member of the Board or the Company or its
Affiliates shall be personally liable for any actions taken in good faith in connection
with the Plan or this Agreement.
	 
	 	(g)  	This Option shall be governed by and construed in accordance with the laws of
the State of Delaware.

	 	 	 	 	 
	 	 	TD BANKNORTH INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:
	 
	 	 	 	 
	

	 	Optionee:	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	 
	 	 	 	 
	

	 	Date:	 	 
	

	 	 	 	 

4

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