Document:

exv10w11

 

Exhibit
10.11

SECOND AMENDMENT OF THE

2001 NON-QUALIFIED STOCK OPTION PLAN

FOR

RELIANCE BANCSHARES, INC.

     THIS SECOND AMENDMENT of the 2001 Non-Qualified Stock Option Plan dated October 17, 2001 (the
“Plan”) for Reliance Bancshares, Inc. (herein called the “Company”) hereby deletes paragraph 8 of
the Plan and adopts a new paragraph 8 of the Plan which reads in its entirety as follows:

     8. Assignments. Any option granted under this Plan shall be exercisable only by the
participant to whom granted during his or her lifetime and shall not be assignable or transferable
otherwise than by will or by the laws of descent and distribution, provided, however, that any
participant may assign to or designate that the option shares or a portion of the same shall be
titled in the name of a trust, employee benefit plan, individual retirement account or other entity
in which the participant is the sole beneficiary, owner or designee or in joint names with a
spouse.

     The foregoing Second Amendment of the Plan was approved by the Board of Directors of the
Company on and is effective as of July 21, 2004 and shall automatically amend and revise all 2001
Non-Qualified Stock Option Agreements executed with Directors or Advisory Directors who are covered
by the Plan.exv10w12

 

EXHIBIT 10.12

2003 INCENTIVE STOCK OPTION PLAN

FOR

RELIANCE BANCSHARES, INC.

     STATEMENT of the 2003 Incentive Stock Option Plan dated January 15, 2003 for Reliance
Bancshares, Inc. (herein called the “Company”).

     WHEREAS, the Board of Directors of the Company (herein called the “Board”) deems it in the
best interests of the Company that certain management personnel employed by the Company and by its
subsidiaries be given an opportunity to acquire a proprietary interest in the success and growth of
the Company as a means of assuring their maximum effort and continued association with the Company;
and

     WHEREAS, the Board believes that the Company can best obtain these and other benefits by
granting stock options to designated employees from time to time pursuant to Section 422 and
related Sections of the Internal Revenue Code of 1986, as amended.

     NOW, THEREFORE, the Board has adopted this 2003 Incentive Stock Option Plan (the “Plan”)
effective upon approval by the affirmative vote of the holders of a majority of all classes of
shares of the Company entitled to vote:

     1. Policy. The Company shall, from time to time but in no event after January 15,
2013, grant options for sales of shares to management personnel employed by it, and by subsidiary
corporations of the Company, pursuant to the terms of this Plan. The term “subsidiary corporation”
means any corporation in which the Company owns at least 80 percent of the voting shares or any
corporation in a chain of corporations connected with the Company through ownership of at least 80
percent of its voting shares by any corporation in the chain.

     2. Option Stock. Options under this Plan shall pertain to authorized and unissued
shares of Class A Common Stock, $1.00 par value of the Company (hereinafter sometimes called
“option shares”). The total number of shares available for options under this Plan shall not
exceed 200,000 in the aggregate. The limitation established by the preceding sentence shall be
subject to adjustment as provided in paragraph 8. The Company shall at all times while this Plan
is in force reserve such number of shares of Class A Common Stock, $1.00 par value as will be
sufficient to satisfy the requirements of this Plan.

     3. Participants. For the purposes of this Agreement, the term “management personnel”
shall be deemed to include only officers and key employees who are full-time employees of the
Company or its subsidiary corporations. The Board, on recommendations of the Chairman and/or Chief
Executive Officer of the Company, or by its own initiative, shall from time to time designate from
among the management personnel employed by the Company and by its subsidiary corporations the
persons to whom stock options shall be granted. Such designations shall be made in the absolute
discretion of the Board and shall be final without approval of the shareholders. Directors of the
Company who are otherwise engaged as officers and key employees and full-time
employees of the

1

 

Company, or any of its subsidiary corporations, may be designated as
participants. On the occasion of any designation of participants, the Board may grant additional
options to participants then holding options, or to some of them, or may grant options solely or
partially to new participants. In designating participants, the Board shall fix the number of
shares to be optioned to designees in its absolute discretion.

     4. Price. The option price or prices of the Company’s Class A Common Stock, $1.00
par value offered to any participant under this Plan shall be determined by the Board in its
absolute discretion at the time of granting an option, provided, however, that such price or prices
shall in no event be less than 100 percent of the fair market value of the Class A Common Stock,
$1.00 par value on the date of granting the option. In the case of options granted to a person who
owns more than 10 percent of the voting power of the shares of the Company, or of the parent or any
subsidiary of the Company, the option price for the Class A Common Stock, $1.00 par value shall in
no event be less than 110 percent of the fair market value thereof on the date of the granting of
the option. For purposes hereof, the fair market value of the Class A Common Stock, $1.00 par
value shall be the mean between the bid and asked prices quoted at the close of the date preceding
the granting of the option as determined by the Board; except that if the Class A Common Stock ,
$1.00 par value is then listed on any organized exchange, fair market value shall be the mean
between the high and low sales on the date nearest preceding the granting of the option. If there
are no such markets for Class A Common Stock, $1.00 par value, as aforesaid, then the Board may
also determine fair market value based upon the price which the Company offers and sells its Class
A Common Stock, $1.00 par value to the public from time to time, using a pricing formula similar to
that used by the Company to price said shares for sale to the public. If there are no sales by
which to judge fair market value, the option price shall not be less than the book value as of the
date of the granting of the option. In no event shall an option for Class A Common Stock, $1.00 par
value granted under this Plan be deemed not to qualify as an incentive stock option, within the
meaning of Section 422 of the Internal Revenue Code, by reason of the determination of the purchase
price for said shares, so long as the establishment of the fair market value of such shares on the
date of grant of the option shall have been determined in good faith by the Board.

     5. Time of Exercise.

          (a) In General. Any option granted under this Plan may be exercised immediately after
the date of the granting of such option to the particular participant, subject to the vesting
provisions outlined in paragraphs 5(b) and 5(c) hereof. The option may itself be exercised in
whole or in part at any time, or from time to time thereafter, until the expiration of the option,
subject to the provisions of paragraphs 5(b) and 5(c). An option shall expire on January 15, 2013
unless an earlier date is specified by the Board. Options issued to persons who own more than 10
percent of the voting shares of the Company shall expire on January 15, 2008.

          (b) Vesting. Subject to the provisions of paragraph 10 hereof, options granted will
be exercisable as follows: Whenever possible, the shares included in each option shall be divided
into three (3) installments, each installment to be approximately equal in size. The right to
exercise each installment shall be determined by the length of service that the participant has
accumulated since the participant was first employed by the Company or its subsidiaries. For
each full year of continuous service after January 15, 2003 the participant may exercise one
installment or a portion

2

 

thereof of his/her option shares provided that all other requirements for
vesting have been met. When the right to exercise any installment occurs, the shares included in
that installment may be purchased at that time or from time to time thereafter during the option
period. Transfer to the employ of a subsidiary or a different subsidiary or to the Company shall
not affect the accumulated service of a participant. The Board may, in its discretion, provide for
a longer vesting period, up to five (5) years and may vary the number of options for each year in
the vesting period.

          (c) Transfer of Ownership. In the event that there is a transfer of ownership
of the Company, the limitations provided in paragraph 5(b) shall become null and void and all
options shall become immediately exercisable in full. A transfer of ownership shall occur upon the
change in ownership or control of at least 51% of the issued and outstanding shares of Class A
Common Stock of the Company, or upon the execution of an agreement by the Company or its
controlling shareholders providing for the merger, consolidation, reorganization or other form of
business combination of the Company, or the sale or exchange of all or substantially all of the
assets of the Company unless the current business of the Company is continued following any such
transaction by a resulting entity (which may be, but need not be, the Company) and the shareholders
of the Company immediately prior to such transaction hold directly or indirectly at least
two-thirds of the voting power of the resulting entity. There is also a transfer of ownership if
the shareholders of the Company adopt a plan of complete or substantial liquidation or an agreement
providing for the distribution of all or substantially all of its assets.

     6. Method of Granting. Whenever the Board shall designate a person for the receipt
of an option, the Secretary or the Chairman of the Company shall forthwith send notice thereof to
the designee, in such form as the Board shall approve, stating the number of shares optioned to
such designee and the price per share, and attaching a true copy of the Statement of the 2003
Incentive Stock Option Plan. The date of such notice shall be the date of granting the option to
such participant for all purposes of the Plan. The notice may be accompanied by an Option Agreement
to be signed by the Company and by the participant if the Board shall so direct, which shall be in
such form and shall contain such provisions as the Board shall deem advisable.

     7. Stock Appreciation Rights (SARs).

          (a) In General. Subject to the terms and conditions of the Plan, the Board may, in
its sole and absolute discretion, grant to a participant the right (which right shall be referred
to as an “SAR”) to surrender an option to the Company, in whole or in part, and to receive in
exchange therefore payment by the Company of an amount equal to the excess of the Fair Market Value
of the shares subject to such option, or portion thereof, so surrendered (determined in the manner
described in paragraph 4 as of the date the SARs are exercised) over the exercise price to acquire
such shares. Except as may otherwise be provided in an Option Agreement, such payment may be made,
as determined by the Board in accordance with paragraph 7(c) below and set forth in the Option
Agreement, either in Shares or in cash or in any combination thereof.

     (b) Grant. Each SAR shall relate to a specific option granted under the Plan and
shall be granted to the participant concurrently with the grant of such option by inclusion of
appropriate provisions in the Option Agreement pertaining thereto. The number of SARs granted to a
participant shall not exceed the number of shares in which such participant is entitled to purchase

3

 

pursuant to the related option. The number of SARs held by a participant shall be reduced by (i)
the number of SARs exercised under the provisions of the Option Agreement pertaining to the related
option and (ii) the number of shares purchased pursuant to the exercise of the related option.

          (c) Payment. The Board shall have sole discretion to determine whether payment in
respect of SARs exercised by a participant shall be made in shares of Class A Common Stock, in
cash, or in a combination thereof. If payment is made in Class A Common Stock, the number of
shares which shall be issued pursuant to the exercise of SARs shall be determined by dividing (i)
the total number of SARs being exercised, multiplied by the amount by which the Fair Market Value
(as determined under paragraph 4) of a share of Class A Common Stock on the exercise date exceeds
the exercise price for shares covered by the related option, by (ii) the Fair Market Value of a
share of Class A Common Stock on the exercise date of the SARs. No fractional share of Class A
Common Stock shall be issued on exercise of an SAR; cash may be paid by Company to the person
exercising an SAR in lieu of any such fractional share, if the Board so determines. If payment on
exercise of an SAR is to be made in cash, the person exercising the SAR shall receive, in respect
of each SAR to which such exercise relates an amount of money equal to the difference between the
Fair Market Value of a share of Class A Common Stock on the exercise date and the then applicable
exercise price for shares covered by the related option.

          (d) Limitations. SARs shall be exercisable at such times and under such terms and
conditions as the Board, in its sole and absolute discretion, shall determine; provided, however,
that an SAR may be exercised only at such times and by such individuals as the related option may
be exercised under the Plan and the Option Agreement.

     8. Adjustments of Option Stock.

          (a) If at any time, or from time to time, after the grant but prior to the exercise of
all or any part of an option under this Plan, the Company shall effect a subdivision or combination
of its Class A Common Stock, $1.00 par value, or other option shares as that term is used below,
into a greater or smaller number of shares, or a reclassification of such Class A Common Stock,
$1.00 par value or other option shares into shares of another class or into other securities, or
the Company shall be consolidated or merged with any other corporation, then there shall be
thereafter deliverable by the Company, or by the corporation surviving a merger or consolidation,
upon any exercise of such option, in lieu of each Class A Common Stock, $1.00 par value or other
option share and for the same price, such shares or securities or such shares and securities as
shall have been substituted for such Class A Common Stock, $1.00 par value or other option share in
connection with such subdivision, combination, reclassification, consolidation, or merger. Such
substituted shares or securities or such substituted shares and securities shall be deemed option
shares for the purpose of this Plan.

          (b) Notwithstanding anything stated above to the contrary, upon the occasion of a merger or
consolidation of the Company with any other corporation, any options previously
granted upon this Plan which shall not have been exercised in the manner described below shall
be deemed canceled, unless the surviving corporation shall assume the options under this Plan or
shall issue substitute options in place of them.

4

 

          (c) If at any time, or from time to time, after the grant but prior to the exercise of all or
any part of an option under this Plan, the Board shall declare in respect of the Company’s Class A
Common Stock, $1.00 par value or other option shares any dividend payable in shares of the Company
of any class or stock split, then there shall be deliverable upon any exercise thereafter of any
option under this Plan, in addition to each option share and for no additional price, such
additional share or shares as shall have been distributable as a result of such share dividend in
respect of an option share; except that fractional shares shall not be so deliverable. Any such
share dividend or split shall be deemed part of the option shares for the purposes of this Plan.

     9. Assignments. Any option granted under this Plan shall be
exercisable only by the participant to whom granted during his or her lifetime and shall not be
assignable or transferable otherwise than by will or by the laws of descent and distribution.

     10. Severance, Death.

          (a) In the event that a participant shall cease to be employed by the Company or by any
of its subsidiary corporations for any reason except death, any option or options theretofore
granted to him under this Plan shall not have been then exercised in the manner described below,
shall be deemed at that time canceled, except that the Board may in its absolute discretion extend
the privilege to such participant to exercise any options previously granted to him or her, which
have not then expired, within three months after severance. Furthermore, if any such cessation of
employment is caused by the participant’s retirement at age 65 or any other age by the Company or
by any subsidiary corporation employing the participant at such time, the participant shall have
the right to exercise such option or options, which have not then expired, at any time within three
months after such retirement. The transfer of a participant from the employ of the Company to a
subsidiary corporation, or vice versa, or from one subsidiary corporation to another, shall not be
deemed to constitute a cessation of employment for purposes of this Plan.

          (b) In the event that a participant shall die while employed by the Company or by any
subsidiary corporation, or shall die within three months after his or her retirement by the Company
or by any subsidiary corporation, any option or options granted to him or her under this Plan which
shall not have been exercised in the manner described below at the time of his or her death shall
be exercisable by the estate of the participant, or any person who acquired such option by bequest
or inheritance from the participant, within six months after the death of the participant, or until
the expiration of the option as provided in paragraph 5(a), if that be sooner. References to the
“participant” that follow shall be deemed to include any person entitled to exercise the option
after the death of the participant under the terms of this paragraph.

     11. Limitation on Annual Exercise. The value of the Class A Common Stock, $1.00 par
value for which an employee may be granted options under this Plan shall not be limited;
provided, however, that the aggregate fair market value of stock for which options are
exercisable for the first time under the terms of all plans of the Company by an employee during
any calendar year shall not exceed $100,000. This rule is applied by taking options that meet the
requirements of Section 422 of the Internal Revenue Code and that are exercisable for the first
time in the calendar year into account in the order granted.

5

 

     12. Forfeiture of Options. If the capital of the Company or any subsidiary bank of
the Company falls below the minimum capital requirements, as determined from time to time by its
state or primary federal regulator, then the primary federal regulator may direct the Company or
its banking subsidiary to require the Plan participant to immediately exercise their stock options
or forfeit their right to the same.

     13. Manner of Exercise. Whenever an option is granted under this Plan for the
purchase of option shares, such shares may be purchased by written notice of election delivered
prior to the expiration of the option to the Company at its principal office either in person or by
registered or certified mail, stating the number of shares with respect to which the option is
being exercised and specifying a date, not less that five nor more than 15 days after the date of
such notice, on which the shares will be taken and payment made for them, all subject to compliance
with the provisions of paragraph 5 hereof.

     14. Closing. On the date specified in the notice of election referred to
above, or an adjourned date provided for later in this paragraph, the Company shall deliver or
cause to be delivered to the participant certificates for the number of shares with respect to
which the option is being exercised, against payment for them and delivery to the Company of the
certificate described in paragraph 15 below. Delivery of the shares may be made at the principal
office of the Company or at the office of a transfer agent appointed for the shares of the Company.
Shares shall be registered in the name of the participant unless the participant otherwise directs
in his notice of election. No shares shall be issued until full payment for them has been made by
cash or certified check; and a participant has none of the rights of a shareholder until shares are
issued as herein provided. In the event of any failure to take up and pay for the number of shares
specified in the notice of election on the date stated on it, or an adjourned date, the option
shall become inoperative as to such remaining shares covered by the option and not yet acquired
pursuant to it. If any law or any regulation of the Securities and Exchange Commission or of any
other body having jurisdiction shall require the Company or the participant to take any action in
connection with the shares specified therein for the delivery of the shares shall be adjourned
until the completion of the necessary action. The foregoing provisions shall not apply to any
payment made or shares delivered under paragraph 7 which permits such payment of cash or delivery
of shares for Stock Appreciation Rights granted under this Plan.

     15. Securities Registration. At the closing provided for above, the participant
shall agree to hold the shares acquired by his exercise of the option for investment and not with a
view to resale or distribution thereof to the public, and he shall deliver to the Company a
certificate to that effect. In the event that the Company shall nevertheless deem it necessary to
register under the Securities Act of 1933 or other applicable statutes any shares with respect to
which an option shall have been exercised or to qualify any such shares for exemption from the
Securities Act of 1933 under Regulation A of the rules and Regulations of the Securities and
Exchange Commission, then the Company shall take such action at its own expense before delivery of such
shares. In the event the shares of the Company shall be listed on any national stock exchange at
the time of the exercise of an option under this Plan, then, whenever required, the Company shall
register the shares with respect to which such option is exercised under the Securities Exchange
Act of 1934 and shall make prompt application for the listing on such stock exchange of such shares
at the sole expense of the company.

6

 

     16. Use of Proceeds. The proceeds from the sale of option shares shall be used
exclusively for the corporate purposes of the Company.

     17. Conditions of Employment. Each participant to whom an option is granted under
this Plan, in consideration of granting of such option, shall agree that he will remain in the
employ of the Company or a subsidiary corporation for a period of not less than two years from the
date of the granting of each option. Nevertheless, the granting of an option under this Plan shall
impose no obligation on the Company or on any of its subsidiary corporations to continue the
employment of any participant and shall not lessen or affect the right to terminate such employment
of the participant. Participation under this Plan shall not affect eligibility for any
profit-sharing, bonus, insurance, pension, or other extra-compensation plan which the Company or
its subsidiary corporations have previously adopted or may at any time adopt for employees.

     18. Amendment and Discontinuance. The Board may alter, amend, suspend or discontinue
this Plan; provided, however, that the Board shall not, without the written consent of the holders
of options, alter or impair unexercised options that may have previously been granted under this
Plan, except insofar as a merger or consolidation of the Company, or a termination of employment of
a participant, or a liquidation or dissolution shall affect a cancellation of an option under the
terms of paragraphs 8(b), 10 or 19 hereof.

     19. Liquidation. Upon the complete liquidation of the Company, any unexercised
option previously granted under this Plan shall be deemed canceled, except as otherwise provided in
paragraph 8(b) above on the occasion of a merger or consolidation. In the event of the complete
liquidation of a subsidiary corporation, or in the event that such corporation ceases to be a
subsidiary corporation as that term is defined in paragraph 1 above, any unexercised options shall
be deemed canceled until such participants shall become employed by the Company or by any other
subsidiary corporation on the occurrence of any such event.

     20. Withholding of Taxes. In connection with any event
relating to an option or award, Company shall have the right to (a) require the recipient to remit
or otherwise make available to Company an amount sufficient to satisfy any federal, state and/or
local withholding tax requirements prior to the delivery or transfer of any certificates for such
shares or (b) take whatever other action it deems necessary to protect its interests with respect
to tax liabilities, including, without limitation, withholding any shares, funds or other property
otherwise due to the participant or grantee. The Company’s obligations under the Plan shall be
conditioned on the participant’s or grantee’s compliance, to Company’s satisfaction, with any
withholding requirement.

     21. Stockholder approval. This Plan is subject to the approval of the shareholders
of the Company by an affirmative vote of the holders of a majority of all classes of shares of the
Company entitled to vote, provided such approval is voted prior to twelve months from the date of
approval by the Board.

Approved by the Board of Directors: January 15, 2003.

Approved by the Shareholders: April 30, 2003.

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]