Document:

exv4w3

 

Exhibit 4.3

GRANT NO.                     

REDWOOD EMPIRE BANCORP

INCENTIVE STOCK OPTION AGREEMENT

     THIS INCENTIVE STOCK OPTION AGREEMENT (the “Agreement”) is made and entered into by and
between Redwood Empire Bancorp, a California Corporation (the “Company”), and
                     (the “Optionee”) this                      day of                     ,
                    .

RECITAL

     A. Pursuant to the Company’s Amended and Restated 1991 Stock Option Plan (the “Plan”), the
Board of Directors of the Company (or the Stock Option Committee, if authorized by the Board of
Directors) has granted to the Optionee an option to purchase all or any part of
                     (                    ) authorized but unissued shares of the Company’s no par common
stock, for cash, at an exercise price of                      ($                    ) per
share, upon the terms and conditions hereinafter set forth.

AGREEMENT

     NOW THEREFORE, it is hereby agreed:

     1. Grant of Option. The Company hereby grants to Optionee the option to purchase,
upon and subject to the terms and conditions of the Plan, which is incorporated in full herein by
this reference, up to                      (                    ) shares of the Company’s no par value
Common Stock (the “stock”) at the price of                      ($                    ) per share,
which price is not less than one hundred percent (100%) of the fair market value of the stock as of
the date this Option was originally granted.

     2. Exercisability. This Option shall be exercisable subject to all of the terms and
conditions hereof, as follows:

     (a) On the first anniversary date of the granting of this Option, the Optionee shall have the
right to exercise the Option to purchase up to one-fourth (1/4) of the total number of shares
initially covered hereby, subject to adjustment as provided in Section 10, below.

               (b) Each year thereafter for the next 3 years, on such anniversary date, the

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Optionee shall have the right to exercise this Option to purchase up to an additional
one-fourth (1/4) of the shares initially covered hereby, subject to adjustment as provided in
Section 10, below.

     (c) Commencing on the 5th anniversary of the date on which this Option was originally
granted, and continuing until the expiration or prior termination of this Option in accordance with
its terms, the Optionee shall have the right to exercise this Option to purchase up to 100% of the
shares remaining available for purchase hereunder.

     (d) Shares as to which this Option becomes exercisable pursuant to paragraphs (a) and (b),
above, may thereafter be purchased at any time prior to the expiration or prior termination of this
Option.

     (e) This Option shall remain exercisable according to its terms, until the close of business
on the day immediately prior to the tenth (10th) anniversary of the date on which it was originally
granted, unless it has expired or been terminated earlier in accordance with provisions of the
Plan.

     (f) No shares issuable upon the exercise of this Option shall be issued and delivered unless
and until all applicable requirements of California and federal law and of the Securities and
Exchange Commission and the California Department of Corporations pertaining to the issuance and
sale of such shares, and all applicable listing requirements of the securities exchanges, if any,
on which shares of the Company of the same class are then listed, shall have been complied with.
The Optionee also agrees to ascertain that such requirements shall have been complied with at the
time of any exercise of this Option. In addition, if the Optionee is an “affiliate” for purchase
of the Securities Act of 1933, there may be additional restrictions on the resale of stock, and the
Optionee therefore agrees to ascertain what those restrictions are and to abide by such
restrictions and other applicable federal and state securities laws.

     3. Method of Exercise.

     (a) This Option may be exercised by written notice thereof stating the number of shares with
respect to which this Option is being exercised, delivered to the Company as provided in Section
13, below, together with the full purchase price for such shares.

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     (b) Payment of the Option price must be in cash or, subject to applicable law, with shares of
the Company’s Common Stock previously acquired by the Optionee. The equivalent dollar value of the
shares used to effect a purchase will be the fair market value of such shares on the date of
exercise.

     (c) Not less than ten (10) shares may be purchased at any one time unless the number
purchased is the total number which may be purchased under this Option, and in no event may the
Option be exercised with respect to fractional shares. Upon exercise, Optionee shall make
appropriate arrangements and shall be responsible for the withholding of any federal and state
taxes then due.

     4. Cessation of Employment or Directorship. If the Optionee shall cease to serve as
a director of the Company, or cease to be employed by the Company or one of its subsidiaries, for
any reason other than his or her death or disability (as defined in Section 6, below), this Option
shall terminate and become unexercisable three (3) calendar months after the date on which his or
her directorship or employment ends (the “Termination Date”). During such three-month period this
Option shall be exercisable only as to those installments, if any, which were exercisable under the
terms of this Option as of the Termination Date.

     5. Termination of Employment for Cause. If the Optionee’s directorship of the
Company, or employment by the Company or one of its subsidiaries, is terminated for cause, this
Option shall immediately terminate and become unexercisable, unless reinstated by the Board of
Directors within thirty (30) days of such termination by giving written notice of such
reinstatement to Optionee at his last known address. In the event of such reinstatement, the
Optionee may exercise this Option only to such extent, for such time, and upon such terms and
conditions as if such termination was for a reason other than cause or death. Termination for
cause shall include termination for malfeasance or gross misfeasance in the performance of duties
or conviction of illegal activity in connection therewith or any conduct detrimental to the
interests of the Company or a subsidiary corporation and, in any event, the determination of the
Board of Directors with respect thereto shall be final.

6. Disability or Death of Optionee.

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     (a) If the Optionee dies while in office as a director of the Company, or while employed by
the Company or one of its subsidiaries, or during the three-month period referred to in Paragraph 4
hereof, this Option shall terminate and become unexercisable one (1) year after the date of
Optionee’s death or on the day specified in Section 2(e) hereof, whichever is earlier. After the
Optionee’s death but before such termination, the persons to whom the Optionee’s rights under this
Option shall have passed by Will or by the applicable laws of descent and distribution, or the
executor or administrator of Optionee’s estate, shall have the right to exercise this Option as to
those shares for which installments had accrued under Section 2 at the time of the Optionee’s
death.

     (b) If the Optionee’s directorship or employment shall be terminated because of his or her
disability (as defined in Section 105(d) (4) of the Internal Revenue Code of 1986, as amended from
time to time), the Optionee may exercise this Option to the extent he or she is entitled to do so
on the date of such termination, at any time within twelve (12) calendar months thereafter, but in
no event later than the expiration date set forth in Section 2(e).

     7. Nontransferability. This Option shall not be transferable except by Will or by
the laws of descent and distribution, and shall be exercisable, during the Optionee’s lifetime,
only by the Optionee.

     8. Employment. This Agreement shall not obligate the Company or its subsidiaries to
employ the Optionee, or maintain him or her in office as a director, for any period, nor shall it
interfere in any way with the right of the Company or its subsidiaries to reduce his or her
compensation.

     9. Privileges of Stock Ownership. The Optionee shall have no rights as a stockholder
with respect to the Company’s stock subject to this Option until the date of issuance to the
Optionee of stock certificates representing such shares. Except as provided in Section 15 of the
Plan, no adjustment will be made for dividends or other rights for which the record date is prior
to the date such stock certificates are issued.

     10. Adjustment Upon Changes in Capitalization; Termination Upon the Occurrence of Certain
Events.

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     (a) In accordance with Section 15 of the Plan, if the outstanding shares of the Company’s
Common Stock are increased, decreased, or changed into, or exchanged for a different number or kind
of shares or securities of the Company, through reorganization, merger, recapitalization,
reclassification, stock split, stock dividend, stock consolidation, or otherwise, without
consideration to the Company, an appropriate and proportionate adjustment shall be made to the
number and kind of shares or other securities which may be obtained pursuant to the exercise of any
unexercised portion of this Option, and to the exercise price for such shares or other securities.

     (b) In accordance with Section 16 of the Plan, this Option will completely vest, and become
exercisable as to all unexercised option shares hereunder, immediately prior to the occurrence of
any of the following events (the “Terminating Events”): (i) a dissolution or liquidation of the
Company, (ii) a reorganization, merger, or consolidation of the Company (other than a merger or
reorganization made for the sole purpose of changing the Company’s state of incorporation), as a
result of which the Company is not the surviving corporation or becomes a subsidiary of another
corporation (which would be assumed if the other corporation directly or indirectly owns a majority
of the Company’s voting securities), (iii) a sale of substantially all of the Company’s assets to
another corporation, or (iv) a sale of equity securities of the Company representing more than half
of the Company’s outstanding voting securities. Once a Terminating Event has taken place, this
Option, along with all remaining unexercised options and the Plan itself, will terminate;
provided, however, that the Plan and any unexercised Options will not terminate if there is
a successor corporation to the Company which assumes the outstanding options in accordance with
applicable law.

     11. Notification of Sale. The Optionee agrees that he or she, or any person
acquiring shares upon exercise of this Option, will notify the Company not more than five (5) days
after any sale or other disposition of such shares.

     12. Representations of Optionee.

     (a) The Optionee recognizes and agrees that the Company may, if it deems appropriate, issue
stock transfer instructions against any shares of stock purchased upon the exercise of this

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Option and affix to any certificate representing such shares the legends which the Company deems
appropriate.

     (b) The Optionee represents that the Company, and its directors, officers, employees, and
agents, have not and will not provide tax advice with respect to the Option, and agrees to consult
with his or her own tax advisor as the specific tax consequences of the Option, including the
application and effect of federal, state, and local, and other tax laws.

     13. Notices. Any notice to the Company provided for in this Agreement shall be
addressed to it in care of its President or Chief Financial Officer at its main office and any
notice to Optionee shall be addressed to Optionee’s address on file with the Company or a
subsidiary corporation, or to such other address as either may designate to the other in writing.
Any notice shall be deemed to be duly given on the date of its actual receipt or on the third day
following the date on which it is enclosed in a properly sealed envelope and addressed as stated
above and deposited, postage prepaid with the United States Postal Service. In lieu of giving
notice by mail as aforesaid, any written notice under this Agreement may be given to Optionee in
person, and to the Company by personal delivery to its President or Chief Financial Officer.

     14. Incentive Stock Option. This Option is intended to be an incentive stock option,
as that term is defined in Section 422 of the Internal Revenue Code of 1986 as amended from time to
time.

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

	 	 	 	 	 	 	 	 	 
	OPTIONEE	 	 	 	REDWOOD EMPIRE BANCORP
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	

	 	 
	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	     
	

	 	 	 	 	 	 	 	     
	 
	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	By:	 	 
	

	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	 	 	     
	

	 	 	 	 	 	 	 	     

6exv4w5

 

Exhibit 4.5

GRANT NO. ___

REDWOOD EMPIRE BANCORP

2001 STOCK OPTION PLAN

NONSTATUTORY STOCK OPTION AGREEMENT

               Redwood Empire Bancorp, a California corporation (the “Company”), hereby grants an Option to
purchase shares of its common stock (the “Shares”) to the Optionee named below. The terms and
conditions of the Option are set forth in this cover sheet, in the attachment and in the Company’s
2001 Stock Option Plan (the “Plan”).

Date of Option Grant:
__________________, _______

Name of Optionee: _________________________________________________

Optionee’s Social Security Number: _____-____-_____

Number of Shares Covered by Option: ______________

Exercise Price per Share: $_____.___

Vesting Start Date:
_____________, _______

Vesting Schedule:

          Subject to all the terms of the attached Agreement, your right to purchase Shares under this
Option vests as to one-fourth (1/4) of the total remaining number of Shares covered by this Option,
as shown above, on the one-year anniversary of the Vesting Start Date. Each year thereafter for
the next three (3) years, on such anniversary date, the Optionee shall have the right to exercise
this Option to purchase up to an additional one-fourth (1/4) of the total remaining number of
Shares initially covered hereby. Commencing on the fourth anniversary of the date on which this
Option was originally granted, and continuing until the expiration or prior termination of this
Option in accordance with its terms, the Optionee shall have the right to exercise this Option to
purchase up to 100% of the shares remaining available for purchase hereunder. In the event of a
Change of Control with respect to the Company, all of the unvested Shares subject to this option
shall vest and become exercisable immediately prior to the Change in Control. No additional Shares
will vest after your Service has terminated for any reason.

          By signing this cover sheet, you agree to all of the terms and conditions described in the
attached Agreement and in the Plan, a copy of which is also enclosed.

	 	 	 	 	 
	Optionee:

	 	                                                                                                                                                                
	 	 
	

	 	(Signature)	 	 
	 
	 	 	 	 
	Company:

	 	                                                                                                                                                                	 	 
	

	 	                                                                     (Signature)	 	 
	 
	 	 	 	 
	

	 	Title:                               
                                                                                             	 	 

Attachment

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REDWOOD EMPIRE BANCORP

2001 STOCK OPTION PLAN

NONSTATUTORY STOCK OPTION AGREEMENT

	 	 	 
	The Plan and
Other Agreements

	 	The text of the Plan is incorporated in this
Agreement by reference. Certain capitalized
terms used in this Agreement are defined in the
Plan.
	 
	 	 
	

	 	This Agreement and the Plan constitute the
entire understanding between you and the Company
regarding this Option. Any prior agreements,
commitments or negotiations concerning this
Option are superseded.
	 
	 	 
	Nonstatutory Stock Option

	 	This Option is not intended to be an Incentive
Stock Option under section 422 of the Internal
Revenue Code and will be interpreted
accordingly.
	 
	 	 
	Vesting

	 	This Option is only exercisable before it
expires and then only with respect to the vested
portion of the Option. This Option will vest
according to the Vesting Schedule on the
attached cover sheet.
	 
	 	 
	Term

	 	Your Option will expire in any event at the
close of business at Company headquarters on the
day before the 10th anniversary of the Date of
Option Grant, as shown on the cover sheet. Your
Option will expire earlier if your Service
terminates, as described below.
	 
	 	 
	Regular Termination

	 	If your Service terminates for any reason, other
than death, Disability or Cause, as defined
below, then your Option will expire at the close
of business at Company headquarters on the 90th
day after your termination date.
	 
	 	 
	Termination for

Cause

	 	If your Service is terminated for Cause, as
determined by the Board in its sole discretion,
then you shall immediately forfeit all rights to
your Option and the Option shall immediately
expire. For purposes of this Agreement, “Cause”
shall mean the termination of your Service due
to your commission of any act of fraud,
embezzlement or dishonesty; any unauthorized use
or disclosure of confidential information or
trade secrets of the Company (or any Parent,
Subsidiary or Affiliate); or any other
intentional misconduct adversely affecting the
business or affairs of the Company (or any
Parent, Subsidiary or Affiliate) in a material
manner. This definition shall not restrict in
any way the Company’s or any Parent’s,
Subsidiary’s or Affiliate’s right to discharge
you for any other reason, nor shall this
definition be deemed to be inclusive of all the
acts or omissions which constitute “cause” for
purposes other than this Agreement.

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	Death

	 	If your Service terminates because of your
death, then your Option will expire at the close
of business at Company headquarters on the date
twelve (12) months after the date of death.
During that twelve (12) month period, your
estate or heirs may exercise the vested portion
of your Option.
	 
	 	 
	Disability

	 	If your Service terminates because of your
Disability, then your Option will expire at the
close of business at Company headquarters on the
date twelve (12) months after your termination
date.
	 
	 	 
	Leaves of Absence

	 	For purposes of this Option, your Service does
not terminate when you go on a bona fide leave
of absence that was approved by the Company in
writing, if the terms of the leave provide for
continued Service crediting, or when continued
Service crediting is required by applicable law.
Your Service terminates in any event when the
approved leave ends unless you immediately
return to active work.
	 
	 	 
	

	 	The Company determines which leaves count for
this purpose, and when your Service terminates
for all purposes under the Plan.
	 
	 	 
	Notice of Exercise

	 	When you wish to exercise this Option, you must
notify the Company by filing the proper “Notice
of Exercise” form at the address given on the
form. Your notice must specify how many Shares
you wish to purchase. Your notice must also
specify how your Shares should be registered (in
your name only or in your and your spouse’s
names as community property or as joint tenants
with right of survivorship). The notice will be
effective when it is received by the Company.
	 
	 	 
	

	 	If someone else wants to exercise this Option
after your death, that person must prove to the
Company’s satisfaction that he or she is
entitled to do so.
	 
	 	 
	Form of Payment

	 	When you submit your notice of
exercise, you must include payment
of the Exercise Price for the Shares
you are purchasing. Payment may be
made in one (or a combination) of
the following forms:

	 	•  	Cash, your personal check, a cashier’s
check or a money order.
	 
	 	•  	Shares which have already
been owned by you for more than six
(6) months and which are surrendered
to the Company. The value of the
Shares, determined as of the
effective date of the Option
exercise, will be applied to the

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	 	   	Exercise Price.
	 
	 	•  	To the extent a public
market for the Shares exists as
determined by the Company, by
delivery (on a form prescribed by
the Company) of an irrevocable
direction to a securities broker to
sell Shares and to deliver all or
part of the sale proceeds to the
Company in payment of the aggregate
exercise price.

	 	 	 
	Withholding Taxes

	 	You will not be allowed to exercise
this Option unless you make
acceptable arrangements to pay any
withholding or other taxes that may
be due as a result of the Option
exercise or sale of Shares acquired
under this Option.
	 
	 	 
	Restrictions on Exercise and
Resale

	 	By signing this Agreement, you agree
not to exercise this Option or sell
any Shares acquired under this
Option at a time when applicable
laws, regulations or Company or
underwriter trading policies
prohibit exercise, sale or issuance
of Shares. The Company will not
permit you to exercise this Option
if the issuance of Shares at that
time would violate any law or
regulation. The Company shall have
the right to designate one or more
periods of time, each of which shall
not exceed one hundred eighty (180)
days in length, during which this
Option shall not be exercisable if
the Company determines (in its sole
discretion) that such limitation on
exercise could in any way facilitate
a lessening of any restriction on
transfer pursuant to the Securities
Act or any state securities laws
with respect to any issuance of
securities by the Company,
facilitate the registration or
qualification of any securities by
the Company under the Securities Act
or any state securities laws, or
facilitate the perfection of any
exemption from the registration or
qualification requirements of the
Securities Act or any applicable
state securities laws for the
issuance or transfer of any
securities. Such limitation on
exercise shall not alter the vesting
schedule set forth in this Agreement
other than to limit the periods
during which this Option shall be
exercisable.
	 
	 	 
	

	 	If the sale of Shares under the Plan
is not registered under the
Securities Act, but an exemption is
available which requires an
investment or other representation,
you shall represent and agree at the
time of exercise that the Shares
being acquired upon exercise of this
Option are being acquired for
investment, and not with a view to
the sale or distribution thereof,
and shall make such other
representations as are deemed
necessary or appropriate by the
Company and its counsel.
	 
	 	 
	Transfer of Option

	 	Prior to your death, only you may
exercise this Option. You cannot
transfer or assign this Option. For
instance, you may not sell this
Option or use it as security for a
loan. If you attempt to

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	 	do any of
these things, this Option will
immediately become invalid. You
may, however, dispose of this Option
in your will. Regardless of any
marital property settlement
agreement, the Company is not
obligated to honor a notice of
exercise from your spouse, nor is
the Company obligated to recognize
your spouse’s interest in your
Option in any other way.
	 
	 	 
	Retention Rights

	 	Your Option or this Agreement does
not give you the right to be
retained by the Company (or any
Parent or any Subsidiaries or
Affiliates) in any capacity. The
Company (or any Parent and any
Subsidiaries or Affiliates) reserves
the right to terminate your Service
at any time and for any reason.
	 
	 	 
	Shareholder Rights

	 	You, or your estate or heirs, have
no rights as a shareholder of the
Company until a certificate for your
Option’s Shares has been issued. No
adjustments are made for dividends
or other rights if the applicable
record date occurs before your stock
certificate is issued, except as
described in the Plan.
	 
	 	 
	Adjustments

	 	In the event of a stock split, a
stock dividend or a similar change
in the Company stock, the number of
Shares covered by this Option and
the exercise price per Share may be
adjusted (and rounded down to the
nearest whole number) pursuant to
the Plan. Your Option shall be
subject to the terms of the
agreement of merger, liquidation or
reorganization in the event the
Company is subject to such corporate
activity.
	 
	 	 
	Applicable Law

	 	This Agreement will be interpreted
and enforced under the laws of the
State of California.
	 
	 	 

By signing the cover sheet of this Agreement, you agree to all of the terms and
conditions described above and in the Plan.

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