Document:

Exhibit 10.1

 

NATIONAL MERCANTILE BANCORP

 

2005 Stock Incentive Plan

Incentive Stock Option Agreement

 

This ISO STOCK OPTION
AGREEMENT (the “Agreement”) is made as of the [       ]
day of [             ],
[                  ]
between NATIONAL MERCANTILE BANCORP, a California corporation (the “Company”),
and [                   ]
(the “Optionee”).

 

R E C I T A L S

 

The option
granted pursuant to the 2005 Stock Incentive Plan (the “2005 Plan”), hereby is
intended to qualify as an “incentive stock option” under Section 422 of
the Internal Revenue Code of 1986, as amended (the “Code”), to the extent
possible.

 

NOW,
THEREFORE, the parties hereto agree as follows:

 

1.             GRANT
OF OPTION.  The Company hereby grants
to the Optionee as of the date hereof (the “Date of Grant”) an incentive stock
option (the “Option”) to purchase, on the terms and conditions hereinafter set
forth, [                 ]
([                ])
shares of the Company’s Common Stock, no par value (the “Option Shares”), at a
purchase price of [                 ]
per share.

 

2.             VESTING.  The Option shall vest and become exercisable
as follows:

 

[                                  ]

[                                  ]

 

provided,
however, that no portion of the Option may be exercised by the
Optionee to the extent that such exercise would cause an ownership change to
occur pursuant to Section 382 of the Code. 
Section 382 of the Code provides, among other things, that
utilization of net operating losses will be restricted if there is a change in
ownership of the loss corporation. 
Changes in ownership are determined by reference to 5% shareholders.

 

3.             EXPIRATION
OF OPTION AND CERTAIN LIMITATIONS ON RIGHT TO EXERCISE.

 

(a)           The
Option shall expire on the [        ]
anniversary of the Date of Grant (the “Expiration Date”), except that (i) if
the Optionee ceases, on or before the Expiration Date, for any reason other
than death or permanent disability, to be employed by the Company or a
subsidiary of the Company, the Option shall expire as provided in Section 6
below, and (ii) if the Optionee ceases, on or before the Expiration Date,
to be employed by the Company or a subsidiary of the Company, by reason of
death or permanent disability, the Option shall expire as provided in Section 7
below.  The term 

 

 

“Employee” as used in this Option means an officer or other employee of
the Company or any subsidiary (including an officer who is also a director of
the Company or any subsidiary).

 

(b)           The
Option may be exercised in whole or in part from time to time on or after [                 ]
until the Expiration Date (subject to the provisions hereof), except that not
less than one hundred (100) shares may be purchased at any time unless the
number of shares then purchasable hereunder shall be less than one hundred.

 

(c)           Except
as provided in Sections 6 and 7 below, none of the Option Shares may be
purchased hereunder unless the Optionee, at the time he exercises the Option,
is employed by the Company or a subsidiary of the Company, since the date
hereof.  A leave of absence approved in
writing by the Administrator (as defined in the 2005 Plan) shall not be deemed
a termination of employment for any purpose of this Option.

 

(d)           As
a condition to exercise of this Option, the Company may require Optionee to pay
over to the Company all applicable federal, state and local taxes which the
Company is required to withhold with respect to the exercise of this
Option.  At the discretion of the
Administrator and upon the request of Optionee, the minimum statutory
withholding tax requirements may be satisfied by the withholding of Shares
otherwise issuable to Optionee upon the exercise of this Option.

 

4              METHOD
OF EXERCISE OF OPTION.  The Option
may be exercised only by delivery to the Company of a written notice of
exercise specifying the number of Option Shares which the Optionee then elects
to purchase, accompanied by payment in full of the aggregate exercise price for
such shares (the “Exercise Price”), in cash or by check payable to the Company,
or in shares of the Company’s Common Stock, represented by a certificate duly
endorsed, transferring to the Company good and valid title to such shares, such
shares to be valued on the basis of the aggregate Fair Market Value (as defined
in Section 10 hereof) thereof on the date of such exercise.

 

5              NON-TRANSFERABILITY
OF OPTION.  The Option shall not be
transferable by the Optionee otherwise than by will or the laws of descent and
distribution, and it shall be exercisable, during the lifetime of the Optionee
only by him or by his guardian or legal representative regardless of any
community property interest therein of the spouse of the Optionee or such
spouse’s successors in interest.

 

6.             TERMINATION
OF EMPLOYMENT.

 

(a)           If
the Optionee ceases to be employed by the Company or a subsidiary of the
Company for any reason other than death or permanent disability, the Option
shall expire three (3) months after the date the Optionee ceases to be so
employed, unless by its terms it expires sooner.  The Option may be exercised by the Optionee
within such three month period to the extent it was exercisable on the date of
such cessation of employment.

 

 

(b)           The
Option confers no right upon the Optionee with respect to the continuation of
his employment with the Company or any of its subsidiaries, and shall not
interfere with the right of the Company or a subsidiary, or of the Optionee, to
terminate his employment at any time.

 

7.             DEATH
OR PERMANENT DISABILITY OF OPTIONEE. 
If the Optionee ceases to be employed by the Company or a subsidiary of
the Company by reason of death or permanent disability, the Option shall expire
one (1) year after the date of such death or disability, unless by its
terms it expires sooner.  The Option may
be exercised only (i) by the Optionee within such one year period to the
extent it was exercisable on the date of permanent disability or (ii) by
the heirs of the Optionee within such one year period to the extent it was
exercisable on the date of death.

 

8.             ADJUSTMENTS UPON
THE OCCURRENCE OF CERTAIN EVENTS.

 

(a)           If
the outstanding shares of the Company’s Common Stock are increased, decreased,
or exchanged for or converted into cash, property or a different number or kind
of shares or securities of the Company through reorganization,
recapitalization, reclassification, merger, consolidation, restructuring, stock
dividend, stock split, reverse stock split or other similar transaction, or if
substantially all of the property and assets of the Company are sold, then,
unless the terms of such transaction provide otherwise, an appropriate and
proportionate adjustment shall be made in the Option Shares pursuant to which
the Options relate.  Any such adjustment
in the outstanding Options shall be made without change in the aggregate
purchase price applicable to the unexercised portion of the Options but with a
corresponding adjustment in the price for each Option Share.

 

(b)           No
adjustment provided for in this Section 8 shall require the Company to
sell a fractional share under the Options.

 

9.             CORPORATE
TRANSACTIONS.

 

(a)  This Option shall
terminate upon consummation of the Corporate Transaction (as defined below)
unless the Administrator determines that they shall survive.  If the Administrator determines that this
Option shall survive, and if the Company shall not be the surviving entity in
the Corporate Transaction, the Administrator shall provide that this Option
shall be assumed or an equivalent Option substituted by an applicable successor
entity or any affiliate of the successor entity.  If this Option terminates upon consummation
of the Corporate Transaction, then this Option shall be deemed fully vested and
exercisable immediately prior to the consummation of the Corporate Transaction
and provided that this Option has not expired by its terms the Optionee shall
take all steps necessary to exercise this Option prior to the Corporate
Transaction.  The Administrator shall
provide the Optionee notice of the proposed Corporate Transaction at least 10
days prior thereto or as soon as may be practicable.

 

(b) For purposes of this Section a  “Corporate
Transaction” means (i) a liquidation or dissolution of the Company; (ii) a
merger or consolidation of the Company with or into another corporation or
entity as a result of which the Company’s Common Stock is changed into or
exchanged for cash or property or securities not of the Company’s issue (other
than a merger

 

 

with a wholly-owned subsidiary or
reincorporation merger); or (iii) a sale of all or substantially all of
the assets of the Company in a single transaction or a series of related
transactions.

 

10.           DELIVERY
OF STOCK CERTIFICATES.  Upon the
exercise of all or a portion of the Option, the Company, as promptly as
practicable, shall mail or deliver to the Optionee a stock certificate or
certificates representing the shares then purchased, and will pay all stamp
taxes payable in connection therewith. 
The issuance of such shares and delivery of the certificate or
certificates therefor shall, however, be subject to any delay necessary to
complete (a) the listing of such shares on any stock exchange upon which
shares of the same class are then listed or quoted on the Nasdaq, (b) such
registration or other qualification of such shares under any state or federal
law, rule, or regulation as the Company may determine to be necessary or advisable,
and (c) the making of provision for the payment or withholding of any
taxes required to be withheld pursuant to any applicable law, in respect of the
exercise of the Option or the receipt of such shares.

 

11.           DETERMINATION OF FAIR MARKET VALUE.  For purposes of this Agreement, the “Fair
Market Value” of Common Stock or other securities of the Company shall be
determined as follows:

 

(a) If
the stock of the Company is listed on a securities exchange or is regularly
quoted by a recognized securities dealer, and selling prices are reported, its
fair market value shall be the closing price of such stock on the date the
value is to be determined, but if selling prices are not reported, its fair
market value shall be the mean between the high bid and low asked prices for
such stock on the date the value is to be determined (or if there are no quoted
prices for the date of grant, then for the last preceding business day on which
there were quoted prices).

 

(b) In
the absence of an established market for the stock, the fair market value
thereof shall be determined in good faith by the Administrator, with reference
to the Company’s net worth, prospective earning power, dividend-paying
capacity, and other relevant factors, including the goodwill of the Company, the
economic outlook in the Company’s industry, the Company’s position in the
industry, the Company’s management, and the values of stock of other
corporations in the same or a similar line of business.

 

12.           NOTICES, ETC.

 

(a)           Any
notice hereunder by the Optionee shall be given to the Company in writing and
such notice and any payment by the Optionee hereunder shall be deemed duly
given or made only upon receipt thereof at the Company’s corporate offices at
the principal executive offices of the Company, or at such other address as the
Company may designate by notice to the Optionee.

 

(b)           Any
notice or other communication to the Optionee shall be in writing and any such
communication and any delivery to the Optionee hereunder shall be deemed duly
given or made if mailed or delivered to the Optionee at such address as the
Optionee shall have on file with the Company or in care of the Company at the  address of its
corporate offices indicated above.

 

 

13.           WAIVER.  The waiver by the Company of any provision of
the Option shall not operate as or be construed to be a waiver of the same
provision or any other provision hereof at any subsequent time or for any other
purpose.

 

14.           IRREVOCABILITY.  The Option shall be irrevocable until it
expires as herein provided.

 

15.           EFFECTIVE
DATE.  The Option shall be deemed
granted and effective on the Date of Grant.

 

16.           INTERPRETATION
AND CONSTRUCTION.  The interpretation
and construction of the Option by the Administrator shall be final, binding and
conclusive.  The section headings in
this Agreement are for convenience of reference only and shall not be deemed
part of, or germane to the interpretation or construction of, this Agreement.

 

 

	
   

  	
  NATIONAL
  MERCANTILE BANCORP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [                        ]

  	
   

  
	
   

  	
  Optionee

  
						

 

 

By his or her
signature below, the spouse of the Optionee agrees to be bound by all of the
terms and conditions of the foregoing Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Spouse of OptioneeExhibit 10.2

 

NATIONAL MERCANTILE BANCORP

 

2005 Stock Incentive Plan

Non-Qualified Stock Option Agreement

 

This NON-QUALIFED STOCK
OPTION AGREEMENT (the “Agreement”) is made as of the [          ]
day of [               ],
[                 ]
between NATIONAL MERCANTILE BANCORP, a California corporation (the “Company”),
and [                      ]
(the “Optionee”).

 

R E C I T A L S

 

The option is
hereby granted pursuant to the 2005 Stock Incentive Plan (the “2005 Plan”).

 

NOW,
THEREFORE, the parties hereto agree as follows:

 

1.             GRANT
OF OPTION.  The Company hereby grants
to the Optionee as of the date hereof (the “Date of Grant”) a non-qualified
stock option (the “Option”) to purchase, on the terms and conditions
hereinafter set forth, [                ]
([             ])
shares of the Company’s Common Stock, no par value (the “Option Shares”), at a
purchase price of [                ]
per share.

 

2.             VESTING.  The Option shall vest and become exercisable
as follows:

 

[                                  ]

[                                  ]

 

provided,
however, that no portion of the Option may be exercised by the
Optionee to the extent that such exercise would cause an ownership change to
occur pursuant to Section 382 of the Code. 
Section 382 of the Code provides, among other things, that
utilization of net operating losses will be restricted if there is a change in
ownership of the loss corporation. 
Changes in ownership are determined by reference to 5% shareholders.

 

3.             EXPIRATION
OF OPTION AND CERTAIN LIMITATIONS ON RIGHT TO EXERCISE.

 

(a)           The
Option shall expire on the [        ]
anniversary of the Date of Grant (the “Expiration Date”), except that (i) if
the Optionee ceases, on or before the Expiration Date, for any reason other
than death or permanent disability, to be employed by the Company or a
subsidiary of the Company, the Option shall expire as provided in Section 6
below, and (ii) if the Optionee ceases, on or before the Expiration Date,
to be employed by the Company or a subsidiary of the Company, by reason of
death or permanent disability, the Option shall expire as provided in Section 7
below.  The term “Employee” as used in
this Option means an officer or other employee of the Company or any subsidiary
(including an officer who is also a director of the Company or any subsidiary).

 

 

(b)           The
Option may be exercised in whole or in part from time to time on or after [                    ]  until the Expiration Date (subject to the
provisions hereof), except that not less than one hundred (100) shares may be
purchased at any time unless the number of shares then purchasable hereunder
shall be less than one hundred.

 

(c)           Except
as provided in Sections 6 and 7 below, none of the Option Shares may be
purchased hereunder unless the Optionee, at the time he exercises the Option,
is employed by the Company or a subsidiary of the Company, since the date
hereof.  A leave of absence approved in
writing by the Administrator (as defined in the 2005 Plan) shall not be deemed
a termination of employment for any purpose of this Option.

 

(d)           As
a condition to exercise of this Option, the Company may require Optionee to pay
over to the Company all applicable federal, state and local taxes which the
Company is required to withhold with respect to the exercise of this Option.  At the discretion of the Administrator and
upon the request of Optionee, the minimum statutory withholding tax
requirements may be satisfied by the withholding of Shares otherwise issuable
to Optionee upon the exercise of this Option.

 

4              METHOD
OF EXERCISE OF OPTION.  The Option
may be exercised only by delivery to the Company of a written notice of
exercise specifying the number of Option Shares which the Optionee then elects
to purchase, accompanied by payment in full of the aggregate exercise price for
such shares (the “Exercise Price”), in cash or by check payable to the Company,
or in shares of the Company’s Common Stock, represented by a certificate duly
endorsed, transferring to the Company good and valid title to such shares, such
shares to be valued on the basis of the aggregate Fair Market Value (as defined
in Section 10 hereof) thereof on the date of such exercise.

 

5              NON-TRANSFERABILITY
OF OPTION.  The Option shall not be
transferable by the Optionee otherwise than by will or the laws of descent and
distribution, and it shall be exercisable, during the lifetime of the Optionee
only by him or by his guardian or legal representative regardless of any
community property interest therein of the spouse of the Optionee or such
spouse’s successors in interest.

 

6.             TERMINATION
OF EMPLOYMENT.

 

(a)           If
the Optionee ceases to be employed by the Company or a subsidiary of the
Company for any reason other than death or permanent disability, the Option
shall expire three (3) months after the date the Optionee ceases to be so
employed, unless by its terms it expires sooner.  The Option may be exercised by the Optionee
within such three month period to the extent it was exercisable on the date of
such cessation of employment.

 

(b)           The
Option confers no right upon the Optionee with respect to the continuation of
his employment with the Company or any of its subsidiaries, and shall not
interfere with the right of the Company or a subsidiary, or of the Optionee, to
terminate his employment at any time.

 

 

7.             DEATH
OR PERMANENT DISABILITY OF OPTIONEE. 
If the Optionee ceases to be employed by the Company or a subsidiary of
the Company by reason of death or permanent disability, the Option shall expire
one (1) year after the date of such death or disability, unless by its
terms it expires sooner.  The Option may
be exercised only (i) by the Optionee within such one year period to the
extent it was exercisable on the date of permanent disability or (ii) by
the heirs of the Optionee within such one year period to the extent it was
exercisable on the date of death.

 

8.             ADJUSTMENTS
UPON THE OCCURRENCE OF CERTAIN EVENTS.

 

(a)           If
the outstanding shares of the Company’s Common Stock are increased, decreased,
or exchanged for or converted into cash, property or a different number or kind
of shares or securities of the Company through reorganization,
recapitalization, reclassification, merger, consolidation, restructuring, stock
dividend, stock split, reverse stock split or other similar transaction, or if
substantially all of the property and assets of the Company are sold, then,
unless the terms of such transaction provide otherwise, an appropriate and
proportionate adjustment shall be made in the Option Shares pursuant to which
the Options relate.  Any such adjustment
in the outstanding Options shall be made without change in the aggregate
purchase price applicable to the unexercised portion of the Options but with a
corresponding adjustment in the price for each Option Share.

 

(b)           No
adjustment provided for in this Section 8 shall require the Company to
sell a fractional share under the Options.

 

9.             CORPORATE
TRANSACTIONS.

 

(a)  This Option shall
terminate upon consummation of the Corporate Transaction (as defined below)
unless the Administrator determines that they shall survive.  If the Administrator determines that this
Option shall survive, and if the Company shall not be the surviving entity in
the Corporate Transaction, the Administrator shall provide that this Option
shall be assumed or an equivalent Option substituted by an applicable successor
entity or any affiliate of the successor entity.  If this Option terminates upon consummation
of the Corporate Transaction, then this Option shall be deemed fully vested and
exercisable immediately prior to the consummation of the Corporate Transaction
and provided that this Option has not expired by its terms the Optionee shall
take all steps necessary to exercise this Option prior to the Corporate
Transaction.  The Administrator shall provide
the Optionee notice of the proposed Corporate Transaction at least 10 days
prior thereto or as soon as may be practicable.

 

(b) For purposes of this Section a  “Corporate Transaction” means (i) a
liquidation or dissolution of the Company; (ii) a merger or consolidation
of the Company with or into another corporation or entity as a result of which
the Company’s Common Stock is changed into or exchanged for cash or property or
securities not of the Company’s issue (other than a merger with a wholly-owned
subsidiary or reincorporation merger); or (iii) a sale of all or
substantially all of the assets of the Company in a single transaction or a
series of related transactions.

 

 

10.           DELIVERY
OF STOCK CERTIFICATES.  Upon the
exercise of all or a portion of the Option, the Company, as promptly as practicable,
shall mail or deliver to the Optionee a stock certificate or certificates
representing the shares then purchased, and will pay all stamp taxes payable in
connection therewith.  The issuance of
such shares and delivery of the certificate or certificates therefor shall,
however, be subject to any delay necessary to complete (a) the listing of
such shares on any stock exchange upon which shares of the same class are then
listed or quoted on the Nasdaq, (b) such registration or other
qualification of such shares under any state or federal law, rule, or
regulation as the Company may determine to be necessary or advisable, and (c) the
making of provision for the payment or withholding of any taxes required to be
withheld pursuant to any applicable law, in respect of the exercise of the
Option or the receipt of such shares.

 

11.           DETERMINATION OF FAIR MARKET VALUE.  For purposes of this Agreement, the “Fair
Market Value” of Common Stock or other securities of the Company shall be
determined as follows:

 

(a) If
the stock of the Company is listed on a securities exchange or is regularly
quoted by a recognized securities dealer, and selling prices are reported, its
fair market value shall be the closing price of such stock on the date the
value is to be determined, but if selling prices are not reported, its fair
market value shall be the mean between the high bid and low asked prices for
such stock on the date the value is to be determined (or if there are no quoted
prices for the date of grant, then for the last preceding business day on which
there were quoted prices).

 

(b) In
the absence of an established market for the stock, the fair market value
thereof shall be determined in good faith by the Administrator, with reference
to the Company’s net worth, prospective earning power, dividend-paying
capacity, and other relevant factors, including the goodwill of the Company,
the economic outlook in the Company’s industry, the Company’s position in the
industry, the Company’s management, and the values of stock of other
corporations in the same or a similar line of business.

 

12.           NOTICES, ETC.

 

(a)           Any
notice hereunder by the Optionee shall be given to the Company in writing and
such notice and any payment by the Optionee hereunder shall be deemed duly
given or made only upon receipt thereof at the Company’s corporate offices at
the principal executive offices of the Company, or at such other address as the
Company may designate by notice to the Optionee.

 

(b)           Any
notice or other communication to the Optionee shall be in writing and any such
communication and any delivery to the Optionee hereunder shall be deemed duly
given or made if mailed or delivered to the Optionee at such address as the
Optionee shall have on file with the Company or in care of the Company at the  address of its
corporate offices indicated above.

 

13.           WAIVER.  The waiver by the Company of any provision of
the Option shall not operate as or be construed to be a waiver of the same
provision or any other provision hereof at any subsequent time or for any other
purpose.

 

 

14.           IRREVOCABILITY.  The Option shall be irrevocable until it
expires as herein provided.

 

15.           EFFECTIVE
DATE.  The Option shall be deemed
granted and effective on the Date of Grant.

 

16.           INTERPRETATION
AND CONSTRUCTION.  The interpretation
and construction of the Option by the Administrator shall be final, binding and
conclusive.  The section headings in
this Agreement are for convenience of reference only and shall not be deemed
part of, or germane to the interpretation or construction of, this Agreement.

 

 

	
   

  	
  NATIONAL
  MERCANTILE BANCORP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [                         ]

  
	
   

  	
  Optionee

  
					

 

 

By his or her
signature below, the spouse of the Optionee agrees to be bound by all of the
terms and conditions of the foregoing Agreement.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Spouse of Optionee

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