Document:

EX-10.26

 

EXHIBIT 10.26

BANC ONE CORPORATION

INVESTMENT OPTION PLAN

Preamble 

BANC ONE CORPORATION (the “Company”) hereby establishes the BANC ONE CORPORATION Investment Option
Plan (the “Plan”), effective as of the date specified herein.

The purpose of the Plan is to provide a vehicle for the payment of compensation, otherwise payable
to participating Employees, with options. The Plan is intended to be a nonqualified option plan
within the meaning of Section 83 of the Internal Revenue Code, as amended, and is not intended to
be covered by the provisions of the Employee Retirement Income Security Act of 1974, as amended.

ARTICLE I

Definitions 

As used in this Plan, the following capitalized words and phrases have the meanings indicated,
unless the context requires a different meaning:

1.1 “Beneficiary” means the person or persons who, pursuant to the Plan, are entitled to exercise
Options after a Participant’s death.

1.2 “Board of Directors” or “Board” means the Board of Directors of the Company.

1.3 “Code” means the Internal Revenue Code of 1986, any amendments thereto, and any regulations on
rulings issued thereunder.

1.4 “Committee” means the Personnel and Compensation Committee of the Board, which is comprised of
two or more non-Employee Directors, and which shall have the authority of said Board with respect
to this Plan.

1.5 “Company” means BANC ONE CORPORATION, or any successor thereto.

1.6 “Designated Property” means shares of regulated investment companies or any other property,
except for cash, cash equivalents, or securities of the Company or its affiliates, designated by
the Committee as subject to purchase through the exercise of an Option.

1.7 “Effective Date” means August 1, 1998.

1.8 “Employee” means any individual who is employed by the Employer.

1.9 “Employer” means BANC ONE CORPORATION, including all of its Related Companies and any successor
corporation or other entity resulting from a merger or consolidation into or with the Company or a
transfer or sale of substantially all of the assets of the Employer.

1.10 “Exercise Date” means, with respect to any Option, the date determined under Section 3.2.

1.11 “Exercise Price” means the price that a Participant must pay in order to exercise an Option.

1.12 “Fair Market Value” means the closing price of the Designated Property reflected in The Wall
Street Journal, or other recognized market source, as determined by the Committee, on the
applicable date of reference hereunder, or if there is no sale on such date, then the closing price
on the last previous day on which a sale is reported.

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1.13 “Grant Date” means, with respect to any Option, the date on which an Option first becomes
effective, which date will not be earlier than the date on which the Committee takes action to
award the Option.

1.14 “Option” means the right of a Participant, granted by the Company in accordance with the terms
of this Plan, to purchase Designated Property from the Company at the Exercise Price established
under Section 2.3.

1.15 “Option Agreement” means an agreement, the form of which has been approved by the Committee,
acknowledging the issuance of the Option(s) and setting forth any terms that are not specified in
this Plan.

1.16 “Participant” means any individual who has received an award of Options in accordance with
Section 2.2 that has not either expired or been exercised.

1.17 “Plan” means the BANC ONE CORPORATION Investment Option Plan, as set forth herein and as from
time to time amended.

1.18 “Related Company” means a subsidiary or any entity, which, on the Grant Date of an Option, is
a member of a common controlled group with BANC ONE CORPORATION pursuant to Code Section 1563
(a)(1).

1.19 “Severance of Employment” means a Participant whose resignation has been requested by an
executive or officer of the Employer under threat of discharge due to reorganization, change of
control, or merger of the Company as designated by the Company.

1.20 “Share” means shares of any publicly traded mutual fund underlying an Option.

1.21 “Spread” means the difference between the Exercise Price and the Fair Market Value of the
Designated Property underlying an Option.

1.22 “Termination for Cause” means a Participant who resigns or involuntarily terminates due to
employee misconduct as determined by the Company pursuant to established employment guidelines.

1.23 “Termination of Employment” means a Participant separation from the service of the Employer
for any reason other than death, Disability or Retirement. For purposes of this Section: 1)
“Disability” shall mean eligibility for benefits under BANC ONE CORPORATION’s Long Term Disability
Plan or any other long term disability plans sponsored by the Company; 2) “Retirement” shall mean
termination of employment with eligibility for immediate retirement benefits under the BANC ONE
CORPORATION Cash Balance Pension Plan or any other qualified defined benefit plan sponsored by the
Company.

1.24 “Voluntary Termination of Employment” means a Participant who resigns from employment either
by written resignation with notice or by simply abandoning employment at some point with or without
notice.

1.25 Rules of construction

1.25.1 Governing law. The construction and operation of this Plan are governed by the laws of the
state of Ohio.

1.25.2 Headings. The headings of Articles, Sections and Subsections are for reference only and are
not to be utilized in construing the Plan.

1.25.3 Gender. Unless clearly inappropriate, all pronouns of whatever gender refer indifferently to
persons or objects of any gender.

1.25.4 Singular and plural. Unless clearly inappropriate, singular terms refer also to the plural
number and vice versa.

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1.25.5 Severability. If any provision of this Plan is held to be illegal or invalid for any reason,
the remaining provisions are to remain in full force and effect and to be construed and enforced in
accordance with the purposes of the Plan as if the illegal or invalid provision did not exist.

ARTICLE II

Award of Options 

2.1 Eligibility for awards. Awards of Options may be made to any Employee selected by the
Committee. In making this selection, and in determining the form and amount of Options, the
Committee will consider any factors it deems relevant.

2.2 Awarding of Options. Recipients of Options are determined from time to time by the Committee.
The Committee may condition the award of any Option on the surrender by the Participant of right to
receive salary, bonus or other cash compensation otherwise payable in the future by the Employer to
the Participant. The Committee may also award other options at its discretion. Awards become
effective on the Grant Date. Awards may be made at any time on or after the Effective Date and
prior to the termination of the Plan.

2.3 Selection of Designated Property; Exercise Price; Other Terms. When an Option is awarded, the
Committee will specify the Designated Property that may be purchased by exercise of the Option, the
Grant Date, and will fix any terms of the Option not specified in the Plan. On the day the Option
is awarded, the Designated Property that may be purchased by exercising the Option must be readily
tradable on an established market or consist wholly of interests readily tradable on an established
market. Unless otherwise specified in a particular Option Agreement, the Exercise Price will equal
the greater of twenty-five percent (25%) of the Fair Market Value of the Designated Property on the
Grant Date or on the Exercise Date.

2.4 Acquisition of Designated Property. If the Company acquires Designated Property purchasable
upon the exercise of an Option, such Designated Property must:

(a) not be subject to any security interest, whether perfected or not, or to any option or contract
under which any other person may acquire any interest in it; and

(b) be readily tradable on an established market or consist wholly of interests in property that is
readily tradable on an established market.

2.5 Effect of dividends and distributions with respect to Designated Property under Option. All
dividends and distributions with respect to Designated Property will be treated as if reinvested in
additional property of the same kind (or as nearly the same kind as feasible, if the property of
the same kind is not available), and will immediately be subject to the Option related to the
Designated Property. However, the Exercise Price of an Option to purchase Designated Property will
be adjusted to include the greater of twenty- five percent (25%) of the fair market value of the
reinvestment on the date of the reinvestment or the date of exercise of the Option. The
reinvestment of dividends and distributions does not extend or modify the term or other conditions
of the Option, other than adjusting the Exercise Price and amount of Designated Property.

2.6 Substitution of other property for Designated Property. At any time after the grant of an
Option, the Committee may, in its discretion, substitute other property of equal value for
Designated Property subject to that Option. After substitution, such Option shall not be
exercisable for six months or the period specified in the Option Agreement, whichever is less.

ARTICLE III

Exercise of Options 

3.1 Period for exercise of Options. Except as otherwise provided in the Plan, Options may be
exercised by a Participant at any time during the period beginning six months after the Grant Date
and ending on the

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earliest of:

(a) nine (9) months after the Grant Date, or if later, sixty (60) days following the end of the
calendar year in which Termination of Employment occurs as a result of the Participant’s Voluntary
Termination of Employment or Termination for Cause,

(b) one (1) year after the Participant’s Termination of Employment as a result of the Participant’s
death,

(c) three (3) years after Severance of Employment pursuant to Company programs not designated under
(d) below,

(d) ten (10) years after the Participant’s Termination of Employment, if such Participant
terminates due to retirement, disability, designated Severance of Employment, or other situations
designated by the Company, or

(e) twenty (20) years after the Grant Date.

If the Company has a Change of Control, as defined in the Amended and Restated BANC ONE CORPORATION
Compensation Deferral Plan, all Awards of Options hereunder may be exercised by the Participant as
of the first business day following the change of control.

If the Participant is or may be an employee whose remuneration from the Company is subject to Code
Section 162(m), as determined by the Committee, the Committee may condition, limit and/or delay the
exercise of such Participant’s Options in such manner as the Committee may in good faith determine
to be necessary, or desirable, in order to prevent disallowance of the Company’s deductions by
reason of Code Section 162(m) with respect to the exercise of such Options.

An Option may not be exercised during the a Participant’s lifetime except by the Participant or, in
the event of the Participant’s legal incapacity, by his guardian or legal representative acting in
a fiduciary capacity on behalf of the Participant under state law and court supervision. If a
Participant dies before all of the Options have been exercised, any Options that remain outstanding
may be exercised by the Beneficiary, subject to all of the terms, conditions, and restrictions
applicable to the Options had death not occurred.

Any Option that has not been exercised by the close of business on the last day provided for under
the Plan or in the Option Agreement for exercise thereof (or under any extension thereof) will
expire automatically and will not thereafter be exercisable.

3.2 Procedure for exercising an Option. A Participant may exercise an Option by giving written
notice to the Committee. Such written notice of exercise must be in such a form as the Committee
may require, must be properly completed, and must be mailed or delivered to the Committee, or to
such other person(s) designated pursuant to Section 5.1. Options may be exercised, in any
combinations or amounts subject to the restrictions set for in the Plan, except that the Committee
may from time to time require a minimum number of Options to be exercised at one time, but such
minimum number will not be designed to impose any substantial restriction on a Participant’s
ability to exercise Options. Except as otherwise provided in the Plan or in any Option Agreement,
the “Exercise Date” of an Option will be the first Business Day on which the Committee is in actual
receipt of the written notice of exercise. Upon exercise of an Option, the Participant must pay the
Exercise Price of the Option to the Company. The consideration to be paid in satisfaction of the
Exercise Price will be cash in the form of currency, check, or other cash equivalent, in each case
acceptable to the Company. The Exercise Price must be paid in full before the delivery of the
Designated Property will be made in accordance with Section 3.4.

3.3 Tax Withholding. Whenever Designated Property is to be delivered upon exercise of an Option
under the Plan, the Company will require as a condition of such delivery (a) a cash payment by the
Participant of an amount sufficient to satisfy all federal, state, local, foreign or other tax
withholding requirements related thereto, (b) the withholding of such amount from any Designated
Property to be delivered to the Participant, (c) the withholding of such amount from compensation
otherwise due to the Participant, or (d)

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any combination of the foregoing, at the election of the Participant with the consent of the
Company. As soon as practicable following receipt by the Company of a properly completed notice of
exercise of an Option from a Participant, the Company will notify the Participant of the
withholding amount determined by the Company.

3.4 Delivery of Designated Property. Following the Exercise Date and receipt by the Company of both
the Exercise Price and tax withholding or authorization to withhold, the Company will use its
reasonable best efforts to deliver the Designated Property to the Participant, or cause such
delivery of the Designated Property to the Participant to occur within ten business days. The
Company will not, however, be required to issue any fractional shares of Designated Property, and
the Committee may provide for the elimination of fractions or for the settlement thereof in cash.
In the event that the listing, registration or qualification of the Option or the

Designated Property on any securities exchange or under any state or federal law, or the consent or
approval of any governmental regulatory body, is necessary as a condition of, or in connection
with, the exercise of the Option, then the Option will not be exercised in whole or in part until
such listing, registration, qualification, consent or approval has been effected or obtained.

3.5 Vesting of Options. Participants shall at all times be 100% vested in Options granted by the
Committee under this Plan unless otherwise provided in the Option Agreement.

3.6 Inalienability of Options. No Option granted under this Plan may be transferred, assigned or
alienated, except as provided herein, and no Option shall be subject to execution, attachment or
similar process, and any attempt to transfer, assign, alienate, execute upon attach, or subject to
process any Option will be void.

3.7 Beneficiary. The Committee may permit a Participant to designate a Beneficiary on a form
therefor prescribed by the Committee on which the Participant may designate a Beneficiary (and
change a previous designation) by filing the prescribed form with the Committee. If so prescribed
by the Committee, such form may allow the designation of multiple Beneficiaries and/or successor
Beneficiary or successor Beneficiaries. The consent of the Participant’s current Beneficiary is not
required for a change of Beneficiary, and no Beneficiary has any rights under this Plan except as
are provided by its terms. The rights of a Beneficiary who predeceases the Participant immediately
terminate. Unless a Beneficiary has been designated in accordance with this

Section 3.7 and such Beneficiary survives the Participant, the Beneficiary of any Participant is
the estate.

ARTICLE IV

Amendment or Termination of the Plan 

4.1 Company’s right to amend or terminate Plan. The Board may, in its sole discretion, at any time
and from time to time, amend, in whole or in part, any of the provisions of this Plan or may
terminate it as a whole or with respect to any Participant or group of Participants. Any such
amendment is binding upon all Participants and Beneficiaries, the Committee, the Company, the
Employer, and all other affected parties. Any action of the Board amending or terminating the Plan
becomes effective as of the date specified therein. Any action of the Board amending or terminating
the Plan will not affect adversely any Option awarded prior to such action of the Board, except for
amendments that would be permissible amendments if made by the Committee to an Option Agreement
under Section 4.2(a), Section 4.2(b), or Section 4.2(d). The Board will provide written notice of
any such amendment or termination of the Plan to the Committee, the Company, the Employer, and any
other affected parties, including Participants and Beneficiaries. as soon as practicable following
the adoption of such amendment or termination.

4.2 Amendment of Options. An Option Agreement may be amended by the Committee at any time if the
Committee determines that an amendment is necessary or advisable as a result of:

(a) any addition to or change in the Code, a federal or state securities law or any other law
or regulation, which occurs after the Grant Date and by its terms applies to the Option,

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(b) any substitutions of Designated Property pursuant to Section 2.6,

(c) any Plan amendment or termination pursuant to Section 4.1, provided that the amendment does not
materially affect the terms, conditions and restrictions applicable to the Option, or

(d) any circumstances not specified in Paragraphs (a), (b), (c), with the consent of the
Participant.

Any such amendment by the Committee is binding upon the affected Participant, any Beneficiary of
the Participant, and all other parties in interest. The Committee will provide written notice to
the affected Participant as soon as practicable after the Committee action amending the Option
Agreement.

ARTICLE V

Administration 

5.1 Plan Administration. This Plan shall be administered by the Committee. The Committee shall
periodically make determinations with respect to participation of Employees in this Plan and,
except as otherwise required by law or this Plan, the Option Agreement terms including vesting
schedules, price, restriction or option period, dividend rights, post-retirement and termination
rights, payment alternatives such as cash or mutual fund units, or other means of payment
consistent with the purpose of this Plan, and such other terms and conditions as the Committee
deems appropriate. Except as otherwise required by this Plan, the Committee shall have authority to
make determinations pursuant to any Plan provision or Option Agreement which shall be final and
binding on all persons. The Committee may designate persons other than its members to carry out its
responsibilities under such conditions or limitations as it may set, other that its authority with
regard to Options granted to Reporting Persons.

5.2 Powers of the Committee. For purposes of the Plan, the Committee will have, in addition to any
other powers conferred by the Plan, by law or in

Section 5.1, the following powers:

(a) to substitute Designated Property as provided in Section 2.6;

(b) to maintain all records necessary for the administration of the Plan;

(c) to prescribe, amend, and rescind rules for the administration of the Plan to the extent that
they are not inconsistent with the terms thereof;

(d) to appoint such individuals and subcommittees as it deems desirable for the conduct of its
affairs and the administration of the Plan;

(e) to employ counsel, accountants and other consultants to aid in exercising its powers and
carrying out its duties under the Plan; and

(f) to perform any other acts necessary and proper for the conduct of its affairs and the
administration of the Plan, except those reserved by the Board.

5.3 Determinations by the Committee. The Committee will interpret and construe the Plan and the
Option Agreements, and its interpretations determinations will be conclusive and binding on all
Participants, Beneficiaries and any other persons claiming an interest under the Plan or any Option
Agreement.

5.4 Indemnification. The Company will indemnify and hold harmless each member of the Committee and
any persons acting on behalf of the Committee against any and all expenses and liabilities arising
out of such member’s action or failure to act in such capacity, excepting only expenses and
liabilities arising out of such member’s own willful misconduct or gross negligence.

(a) Expenses and liabilities against which a member of the Committee or any persons acting on
behalf of the Committee is indemnified hereunder will include, without limitation, the amount of
any settlement or

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judgment, costs, counsel fees and related charges reasonably incurred in connection with a claim
asserted or a proceeding brought against them or the settlement thereof.

(b) This right of indemnification will be in addition to any other rights to which any member of
the Committee or any persons acting on behalf of the Committee may be entitled.

(c) The Company may, at its own expense, settle any claim asserted or proceeding brought against
any member of the Committee or any persons acting on behalf of the Committee when such settlement
appears to be in the best interests of the Company, with such member’s consent which will not be
unreasonably withheld.

ARTICLE VI

Miscellaneous Provisions 

6.1 No Rights to Designated Property. Neither the Participant, a Beneficiary nor any assignee will
be, or will have any of the rights and privileges of a shareholder or owner with respect to any
Designated Property purchasable or issuable upon the exercise of an Option, prior to the date of
exercise of such Option.

6.2 Priority to Designated Property. Designated Property shall be the property of the Company and
subject to the claims of the Company’s creditors in the event of the Company’s bankruptcy or
insolvency. No Participant will have any priority claim to, security interest in, or any other
right to Designated Property superior to the rights of a general creditor of the Company.

6.3 No Right to Continued Employment. Nothing contained in the Plan will be deemed to give any
person the right to be retained in the employ of the Company or any Related Company, or to
interfere with the right of the Company to discharge any person at any time without regard to the
effect that such discharge will have upon such person’s rights or potential rights, if any, under
the Plan. The provisions of the Plan are in addition to, and not a limitation on, any rights that a
Participant may have against the Company by reason of any employment or other agreement with the
Company.

6.4 Relation to Other Benefits. Any economic or other benefit to the Participant under the Plan or
any Option will not be taken into account in determining any benefits under any profit-sharing,
retirement, or other benefit or compensation plan or arrangement maintained by the Company or the
Employer, and will not affect the amount of any life insurance coverage available under any life
insurance plan or arrangement covering employees of the Employer, except to the extent provided
under such plan or arrangement.

6.5 Notices. Unless otherwise specified in an Option Agreement, any notice to be provided under the
Plan to the Committee will be mailed (by certified mail, postage prepaid) or delivered to the
Committee in care of the Company at its executive offices, and any notice to the Participant will
be mailed (by certified mail, postage prepaid) or delivered to the Participant at the current
address shown on the payroll records of the Company. No notice will be binding on the Committee
until received by the Committee, and no notice will be binding on the Participant until received by
the Participant.

IN WITNESS WHEREOF, the Company has caused this Plan to be executed by its duly authorized officer
and its corporate seal to be hereunto affixed by authority of its Board of Directors this ___
day of ___, 1999.

BANC ONE CORPORATION

By:_______________________

Senior Vice President and Secretary

[Corporate Seal]

7EX-10.31

 

Exhibit 10.31

JPMorgan Chase & Co.

Long-Term Incentive Plan Award Agreement

Subject to acceptance of this Award Agreement including its Terms and Conditions (which form a part
of this Award Agreement), JPMorgan Chase & Co. (“JPMorgan Chase”) grants to you, as a matter of
separate inducement and not in lieu of salary or other compensation for services, the following
award pursuant to the JPMorgan Chase 1996 Long-Term Incentive Plan (“Plan”). Except as otherwise
specified in the attached Terms and Conditions or herein, exercisability of the award is
conditioned upon you being continuously employed by JPMorgan Chase or a subsidiary from the Grant
Date to each relevant exercise date.

 

Stock Appreciation Awards

Subject to acceptance of this Award Agreement including its Terms and Conditions, you are awarded
below stock appreciation rights referred to as “Stock Appreciation Awards.” Stock Appreciation
Awards entitle you, upon exercise, to receive from JPMorgan Chase without payment a number of
shares of JPMorgan Chase Common Stock, the Fair Market Value of which, as of the exercise date, is
equal to the excess of the Fair Market Value of one share of such Common Stock on such exercise
date over the Exercise Price per Stock Appreciation Award (set forth below) multiplied by the
number of Stock Appreciation Awards being exercised.

	 	 	 	 	 	 	 
	Grant Date:	 	January 20, 2005	 	The exercisable schedule for this award is as follows:
	 	 	 	 	 
	Number Granted:

	 	 	 	Number
	 	Exercisable Dates
	 	 	 	 	 
	Exercise Price:

	 	 $37.47
	 	 	 	January 25, 2008
	 	 	 	 	 
	Expiration Date:

	 	January 20, 2015
	 	 	 	January 25, 2009
	 

	 	 	 	 	 	January 25, 2010

You acknowledge that you have received this Award Agreement, the attached Terms and Conditions and
Prospectus applicable to this award. You further certify that you have read such materials and you:

o Agree to accept and be bound by this Award Agreement including the Terms and Conditions
effective as of the Grant Date. To accept this Award Agreement no further action is required. If
you have not declined this award by the deadline date below, you will have accepted this Award
Agreement; OR

o Decline this Award Agreement. To decline, you must click on the “Decline Award” button by the
deadline date below. If the award is declined, it will be cancelled effective as of the Grant Date.

	 	 	 
	 
	Grantee:

	 	JPMorgan Chase & Co.
	Date:

	 	/s/ John J. Farrell

 

 

JPMorgan Chase & Co.

Long-Term Incentive Plan Award Agreement

Subject to acceptance of this Award Agreement including its Terms and Conditions (which form a part
of this Award Agreement), JPMorgan Chase & Co. (“JPMorgan Chase”) grants to you, as a matter of
separate inducement and not in lieu of salary or other compensation for services, the following
award pursuant to the JPMorgan Chase 1996 Long-Term Incentive Plan (“Plan”). Except as otherwise
specified in the attached Terms and Conditions or herein, exercisability of the award is
conditioned upon you being continuously employed by JPMorgan Chase or a subsidiary from the Grant
Date to each relevant exercise date.

 

Stock Appreciation Awards

Subject to acceptance of this Award Agreement including its Terms and Conditions, you are awarded
below stock appreciation rights referred to as “Stock Appreciation Awards.” Stock Appreciation
Awards entitle you, upon exercise, to receive from JPMorgan Chase without payment a number of
shares of JPMorgan Chase Common Stock, the Fair Market Value of which, as of the exercise date, is
equal to the excess of the Fair Market Value of one share of such Common Stock on such exercise
date over the Exercise Price per Stock Appreciation Award (set forth below) multiplied by the
number of Stock Appreciation Awards being exercised.

	 	 	 	 	 	 	 
	Grant Date:

	 	January 20, 2005
	 	The exercisable schedule for this award is as follows:

	 	 	 	 	 
	Number Granted:

	 	 	 	Number
	 	Exercisable Dates
	 	 	 	 	 
	Exercise Price:

	 	 $37.47
	 	 	 	January 25, 2007
	 	 	 	 	 
	Expiration Date:

	 	January 20, 2015
	 	 	 	January 25, 2008

You acknowledge that you have received this Award Agreement, the attached Terms and Conditions and
Prospectus applicable to this award. You further certify that you have read such materials and you:

o Agree to accept and be bound by this Award Agreement including the Terms and Conditions
effective as of the Grant Date. To accept this Award Agreement no further action is required. If
you have not declined this award by the deadline date below, you will have accepted this Award
Agreement; OR

o Decline this Award Agreement. To decline, you must click on the “Decline Award” button by the
deadline date below. If the award is declined, it will be cancelled effective as of the Grant Date.

	 	 	 
	 
	Grantee:

	 	JPMorgan Chase & Co.
	Date:

	 	/s/ John J. Farrell

 

 

JPMORGAN CHASE & CO. 1996 LONG-TERM INCENTIVE PLAN

TERMS AND CONDITIONS OF JANUARY 20, 2005

STOCK APPRECIATION AWARDS

	 	 	 
	Award Agreement

	 	These terms and conditions are made part of the Award Agreement dated as of January 20, 2005 (“Grant
Date”) awarding stock appreciation rights (referred to as “Stock Appreciation Awards”) pursuant to
the terms of the JPMorgan Chase & Co. 1996 Long-Term Incentive Plan (“Plan”). To the extent the
terms of the Award Agreement (all references to which will include these terms and conditions)
conflict with the Plan, the Plan will govern.
	 
	 	 
	 

	 	The grant of this award is contingent upon your acceptance of this Award Agreement. Unless you
decline by the deadline and in the manner specified in the Award Agreement, you will have accepted
this award and be bound by these terms and conditions, effective as of the Grant Date. If you
decline the award, it will not become effective and will be cancelled as of the Grant Date.
	 
	 	 
	 

	 	Capitalized terms that are not defined in the Award Agreement will have the same meaning as set
forth in the Plan.
	 
	 	 
	 

	 	JPMorgan Chase & Co. will be referred to throughout the Award Agreement as “JPMorgan Chase,” and
together with its subsidiaries as the “Firm.”
	 
	 	 
	Form and Purpose of Award

	 	Stock Appreciation Awards represent the right, following exercise, to receive (without payment), a
number of shares of JPMorgan Chase Common Stock, the Fair Market Value of which, as of the date of
exercise, is equal to the excess of the Fair Market Value of one share of such Common Stock on such
exercise date over the Exercise Price, multiplied by the number of Stock Appreciation Awards being
exercised. The Firm will retain from each distribution the number of shares of Common Stock
required to satisfy tax withholding obligations.
	 
	 	 
	 

	 	The purpose of this award is to motivate your future performance and to align your interests with
those of the Firm and its shareholders.
	 
	 	 
	Exercisable Dates/Expiration

Date

	 	Your award will become exercisable on the “Exercisable Dates” set forth in your Award Agreement,
provided that you are continuously employed by the Firm through the relevant Exercisable Date or you
meet the requirements to allow your award to remain outstanding upon termination of employment as
described below. Your award will remain exercisable until the earlier of the tenth anniversary of
the Grant Date (the “Expiration Date”) or the date the award is cancelled pursuant to this Award
Agreement. No Stock Appreciation Award may be exercised after its Expiration Date.
	 
	 	 
	Termination of Employment

	 	Except as explicitly set forth below, any Stock Appreciation Awards outstanding under this award
will be cancelled effective on the date your employment with the Firm terminates for any reason.
	 
	 	 
	 

	 	Subject to “Your Obligations” and the other requirements below, you will be eligible to have your
Stock Appreciation Awards remain outstanding for the period described below following the
termination of your employment if one of the following circumstances applies to you:
	 
	 	 
	 

	 	•     Job Elimination:
	 

	 	If the Director Human Resources of the Firm or his nominee in his sole discretion determines that
the Firm terminated your employment because your job was eliminated, your outstanding Stock
Appreciation Awards (whether or not exercisable on your date of termination) will become exercisable
as of your date of termination and will remain exercisable for the two year period immediately
following your termination of employment but in no event beyond the Expiration Date. Any unexercised
Stock Appreciation Awards outstanding at the end of the period specified in the preceding sentence,
including Stock Appreciation Awards that were exercisable prior to termination of employment, shall
be cancelled.

 

 

	 	 	 
	January 20, 2005 Stock Appreciation
Awards (continued...)
	 	 
	 
	 	 
	 

	 	•     Retirement:
	 

	 	Your award will become exercisable on the Exercisable Dates and will remain exercisable up to its
Expiration Date provided that your employment was not terminated for “Cause” and you meet the
following criteria:
	 
	 	 
	 

	 	•     Your employment terminates after you reach at least age 55 and complete at least 15 years of
Cumulative Service of which at least the 5 years immediately preceding termination of employment are
continuous (or your employment terminates due to a job elimination after you reach at least age 50
and complete at least 20 years of Cumulative Service), and

	 
	 	 
	 

	 	•     For the one year period following the termination of your employment, or if longer, during
the period that your Stock Appreciation Awards remain outstanding, you do not perform services
(including self-employment) for

	 

	 	       - competitor of the Firm in any capacity, or

	 

	 	       - a non-competitor in a role within your profession; provided that you may work for a government,
education or Not-for-Profit Organization.

	 
	 	 
	 

	 	You must notify JPMorgan Chase in writing if you perform services during the period specified above
that do not meet the foregoing criteria.

	 
	 	 
	 

	 	In the event that you meet the requirements for both job elimination and retirement as described
above, you will be accorded retirement treatment for the purposes of your award. However, the
retirement employment restrictions will not apply to you.
	 
	 	 
	 

	 	The definitions of Cause, Cumulative Service, Competitor and Not-for-Profit Organization are found
on page 5.
	 
	 	 
	Release/Certification

	 	Upon the termination of your employment you must timely execute and deliver a release of claims in
favor of the Firm, having such form and terms as the Firm shall specify, to have all or any portion
of your award remain outstanding after termination of your employment under any of the foregoing
circumstances.
	 
	 	 
	 

	 	Additionally, in the case of Retirement, you must certify on the authorized form of the Firm at the
time of any exercise of your Stock Appreciation Awards that you have complied with the employment
restrictions and otherwise complied with the terms of the Award Agreement. (See “Your Obligations.”)
	 
	 	 
	 

	 	If JPMorgan Chase in its sole discretion determines that you are not in compliance with any of the
foregoing employment restrictions applicable to you or if you fail to return the required release
within the specified deadline or fail to certify your compliance with the Award Agreement as
described above, your outstanding Stock Appreciation Awards will be cancelled. If the Firm
discovers after shares have been distributed to you that you were not in compliance with such
restrictions during any applicable time period, then you will be required to repay the gain on
exercise (as of the exercise date) less withholding taxes or the number of any shares distributed to
you.
	 
	 	 
	Death or Disability

	 	If you die while employed by the Firm with outstanding Stock Appreciation Awards, then such
outstanding Stock Appreciation Awards (whether or not exercisable as of the date of death) will
become exercisable as of the date of death and will remain exercisable by your designated
beneficiary until their Expiration Date.
	 
	 	 
	 

	 	If you die after your employment terminates, then any Stock Appreciation Awards then outstanding to
you (whether or not exercisable as of the date of death) will become exercisable as of the date of
death and may be exercised by your designated beneficiary for the period that you could have
exercised such Stock Appreciation Awards.
	 
	 	 
	 

	 	For these purposes, your beneficiary is the designated beneficiary on file with the Human Resources
Department, or if no beneficiary has been designated or survives you, then your estate.
	 
	 	 
	 

	 	In the event your employment terminates as a result of your permanent and total disability as
defined in the JPMorgan Chase & Co. Long Term Disability Plan (or for non-U.S. employees the
equivalent local country plan), your outstanding Stock Appreciation Awards will continue to be
subject to the same employment restrictions as described above for “Retirement” and your award will
become exercisable on the date(s) specified in your Award Agreement and will remain exercisable up
to its Expiration Date.

 

 

	 	 	 
	January 20, 2005 Stock Appreciation
Awards (continued...)
	 	 
	 
	 	 
	Your Obligations

	 	As consideration for the grant of this award, you agree to comply with and be bound by the following:
	 
	 	 
	   · Non-Solicitation of
Employees and
Customers:

	 	During your employment by the Firm and for the one year period following the termination of your
employment, or if longer, during the period that your Stock Appreciation Awards remain outstanding,
you will not directly or indirectly, whether on your own behalf or on behalf of any other party,
without the prior written consent of the Director Human Resources of JPMorgan Chase: (i) solicit or
encourage any of the Firm’s then current employees to leave the Firm or to apply for employment
elsewhere; (ii) hire any employee or former employee who was employed by the Firm at the date your
employment terminated, unless the individual’s employment terminated more than six months before the
date of hire or because his or her job was eliminated; or (iii) solicit or induce or attempt to
induce to leave the Firm, or divert or attempt to divert from doing business with the Firm, any then
current customers, suppliers or other persons or entities that were serviced by you or whose names
became known to you by virtue of your employment with the Firm, or otherwise interfere with the
relationship between the Firm and such customers, suppliers or other persons or entities. This does
not apply to publicly known institutional customers that you service after your employment with the
Firm without the use of the Firm’s confidential or proprietary information.
	 
	 	 
	 

	 	These restrictions do not apply to authorized actions you take in the normal course of your
employment with the Firm, such as employment decisions with respect to employees you supervise or
business referrals in accordance with the Firm’s policies.
	 
	 	 
	   · Confidential Information:

	 	You may not, either during your employment with the Firm or thereafter, directly or indirectly use
or disclose to anyone any confidential information related to the Firm’s business, except as
explicitly permitted by the JPMorgan Chase Code of Conduct and applicable policies or law or legal
process. “Confidential information” shall have the same meaning for the Award Agreement as it has
in the JPMorgan Chase Code of Conduct.
	 
	 	 
	   · Non-Disparagement:

	 	You may not, either during your employment with the Firm or thereafter, make or encourage others to
make any statement or release any information that is intended to, or reasonably could be foreseen
to, embarrass or criticize the Firm or its employees, directors or shareholders as a group. This
shall not preclude you from responding truthfully to questions or requests for information to the
government, a regulator or in a court of law in connection with a legal or regulatory investigation
or proceeding.
	 
	 	 
	   · Compliance with Award Agreement:

	 	You agree that you will provide the Firm with any information reasonably requested to determine
compliance with the Award Agreement, and you authorize the Firm to disclose the terms of the Award
Agreement to any third party who might be affected thereby, including your prospective employer.
	 
	 	 
	Remedies

	 	If you violate any of the provisions as set forth above in “Your Obligations”, all outstanding Stock
Appreciation Awards under your award will be immediately cancelled.
	 
	 	 
	 

	 	In addition, if you received shares under this award during the one year prior to (i) the violation
of any of these obligations or (ii) the termination of your employment for Cause, you will be
required to pay the Firm liquidated damages by returning to the Firm either (i) a cash amount equal
to the gain on exercise (as of the exercise date) less withholding taxes, or (ii) the net number of
shares of Common Stock that were distributed pursuant to the exercise.
	 
	 	 
	 

	 	You agree that this payment will be liquidated damages and is not to be construed in any manner as a
penalty. You acknowledge that a violation or attempted violation of these obligations will cause
immediate and irreparable damage to the Firm, and therefore agree that the Firm shall be entitled as
a matter of right to an injunction, from any court of competent jurisdiction, restraining any
violation or further violation of such terms; such right to an injunction, however, shall be
cumulative and in addition to whatever other remedies the Firm may have under law or equity. In any
action or proceeding by the Firm to enforce the terms and conditions of this Award Agreement where
the Firm is the prevailing party, the Firm shall be entitled to recover from you its reasonable
attorneys’ fees and expenses incurred in such action or proceeding.

 

 

	 	 	 
	January 20, 2005 Stock Appreciation
Awards (continued...)
	 	 
	 
	 	 
	Not a Shareholder Until Exercise

	 	You shall not be deemed for any purpose to be or have rights as a shareholder of JPMorgan Chase with
respect to the shares of Common Stock subject to Stock Appreciation Awards until such Stock
Appreciation Awards are exercised. No adjustments shall be made for cash dividends or distributions
or other rights for which the record date is prior to the date you become a shareholder of record of
JPMorgan Chase. Shares upon exercise will be issued in accordance with JPMorgan Chase’s procedures
for issuing stock.
	 
	 	 
	Administrative Provisions

	 	The Award Agreement will be binding upon any successor in interest to JPMorgan Chase, by merger or
otherwise.
	 
	 	 
	 

	 	The exercise of Stock Appreciation Awards shall be in accordance with the Firm’s procedures for
exercises of such awards. The date of exercise shall be the date when the properly completed notice
of exercise is received and accepted by the Firm or its designee in accordance with the Firm’s
procedures.
	 
	 	 
	 

	 	Except as provided in the next succeeding sentence, Stock Appreciation Awards shall not be
assignable or transferable or subject to any lien, obligation or liability. You may make a gift of
unexpired, unexercised Stock Appreciation Awards, subject to the Firm’s prior consent, to an
immediate family member or a trust (or similar vehicle) for the benefit of these immediate family
members (or beneficiaries) as defined below. JPMorgan Chase may condition its prior consent to
receipt of an agreement by you and proposed transferee containing such terms and conditions and
undertakings as JPMorgan Chase deems appropriate in its sole and absolute discretion. No attempted
transfer will be valid without the Firm’s prior consent. “Immediate family members” include your
parents, parents-in-law, children (including adopted children), grandchildren, and siblings or a
trust exclusively for the benefit of one or more of these immediate family members. Your spouse is
an Immediate Family Member but only if Stock Appreciation Awards are transferred to a trust (or
similar vehicle) for the benefit of such spouse, which trust includes one or more other Immediate
Family Members as beneficiaries.
	 
	 	 
	 

	 	JPMorgan Chase may, in its sole discretion and for any reason, cancel outstanding unexercised Stock
Appreciation Awards and substitute an equal number of non-qualified stock options to purchase the
same number of shares of common stock of JPMorgan Chase represented by the cancelled Stock
Appreciation Awards. Such substituted options shall have the same exercise price, Expiration Date
and other terms and conditions that were applicable to the Stock Appreciation Awards; provided that
the method of exercise and the payment of exercise price, as well as the method of payment of
withholding taxes, may be changed by JPMorgan Chase.
	 
	 	 
	 

	 	Nothing contained in the Award Agreement constitutes a contract of continued employment. Employment
is at-will and may be terminated by either you or JPMorgan Chase for any reason at any time.
	 
	 	 
	 

	 	The Award Agreement, the Plan and Prospectus supercede any other agreement, whether written or oral,
that may have been entered into by the Firm and you relating to this award. This Award Agreement
may not be amended except in writing signed by the Director Human Resources of JPMorgan Chase.
	 
	 	 
	 

	 	If any portion of the above provisions is found to be unenforceable, any court of competent
jurisdiction may reform the restrictions as to time, geographical area or scope to the extent
required to make the provision enforceable under applicable law.
	 
	 	 
	 

	 	JPMorgan Chase’s failure to enforce any provision of the Award Agreement or similar awards and
agreements, either with respect to you or other former or current employees, will not constitute a
waiver of its right to enforce the Award Agreement with respect to any prior or subsequent breach of
the Award Agreement, including the right to pursue any and all available remedies for the breach.
	 
	 	 
	 

	 	To the extent not preempted by federal law, the laws of the state of New York (without reference to
conflict of law principles) will apply to this award and the Plan.

 

 

	 	 	 
	January 20, 2005 Stock Appreciation
Awards (continued...)
	 	 
	 
	 	 
	 

	 	The Director Human Resources has sole and complete authority to interpret and administer this Award
Agreement, including, without limitation, the power to (i) interpret the Plan and the terms of this
Award Agreement; (ii) determine the reason for termination of employment and application of the
employment restrictions; (iii) decide all claims
arising with respect to this Award; and (iv) delegate such authority as he deems appropriate. Any
determination by the Director Human Resources shall be binding on all parties.
	 
	 	 
	 

	 	The Board of JPMorgan Chase and the Compensation and Management Development Committee of the Board
reserve the right to amend this Award Agreement at any time and for any reason before a change in
control of JPMorgan Chase, as such term is defined by the Board from time to time. After a change
in control of JPMorgan Chase, this Award Agreement may not be amended in any way that is adverse to
your interests without your prior written consent.
	 
	 	 
	Definitions

	 	Cause means (i) breach of any rule or regulation of any regulatory authority having jurisdiction
over the Firm; (ii) indictment or conviction of a felony or for any fraudulent act, embezzlement,
theft or a crime of moral turpitude; (iii) failure to perform your duties or abide by the work ethic
of the Firm or to follow reasonable directives of your manager within the scope of your duties; (iv)
a violation of the JPMorgan Chase Code of Conduct or human resources policies; (v) any act or
failure to act that is injurious to the Firm, monetarily or otherwise, in each case as determined in
the sole discretion of the Director Human Resources or his delegate.
	 
	 	 
	 

	 	Competitor means a business enterprise that engages in any activity or owns or controls a
significant interest in any entity that engages in any activity that, in either case, competes with
any activity in which the Firm is engaged in any place in the world. The determination of whether
you are working for a Competitor is in the Firm’s sole discretion.
	 
	 	 
	 

	 	Cumulative Service has the meaning set forth in the JPMorgan Chase Retirement Plan.
	 
	 	 
	 

	 	A Not-for-Profit Organization means an entity exempt from tax under state law and exempt from tax
under Section 501(c)(3) of the Internal Revenue Code. Section 501(c)(3) includes entities organized
and operated exclusively for religious, charitable, scientific, testing for public safety, literary
or educational purposes, or to foster national or international amateur sports competition or for
the prevention of cruelty to children or animals.

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