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exv10w9

 

EXHIBIT 10.9

NON-QUALIFIED STOCK OPTION PLAN

FOR

RELIANCE BANCSHARES, INC.

STATEMENT of Non-Qualified Stock Option Plan dated October 17, 2001 for Reliance
Bancshares, Inc (herein called the “Company”).

     1. Purpose. This Non-Qualified Stock Option Plan (the “Plan”) is intended to advance the
interest of the Company and its subsidiary bank by rewarding the directors and advisory directors
of each of the Company and its subsidiary bank for past service and to induce said directors upon
whose judgment, initiative and effort the Company is partially dependent for its successful
operation, to continue to serve in that capacity and to make themselves available for re-election
or reappointment as directors. Options granted under the Plan are intended to be options which do
not meet the requirements of Section 422 of the Internal Revenue Code of 1986.

     2. Option Stock. Options under this Plan shall pertain to authorized and unissued shares of
$1.00 par value, Class A common stock of the Company (hereinafter sometimes called “option
shares”). The total number of shares available for options under this Plan shall not exceed 45,000
in the aggregate. The limitations established by the preceding sentence shall be subject to
adjustment as provided in paragraph 7. The Company shall at all tunes while this Plan is in force
reserve such number of shares of $1.00 par value, Class A common stock as will be sufficient to
satisfy the requirements of this Plan.

     3. Participants. Each director of the Company and each director of the subsidiary bank of the
Company on October 17, 2001 is hereby granted an option to purchase 2,000 shares of $1.00 par
value, Class A common stock of the Company and each advisory director of the subsidiary bank of the
Company on October 17, 2001 is hereby granted an option to purchase 1,000 shares of $1.00 par
value, Class A common stock of the Company.

     4. Price. The option price of the Company’s $1.00 par value, Class A common stock offered to
any participant under this Plan shall be $17.00 per share.

     5. Time of Exercise. Any option granted under this Plan may be exercised immediately after the
date of the granting of such option to the particular participant, provided that the participant
has served as a director or advisory director for a minimum of two (2) years and, further provided
that the participant holds $1.00 par value, Class A common stock equal to the number of option
shares granted hereunder in his or her name or in joint names or in the name of an affiliate. The
option may itself be exercised in whole or in part at any time, or from time to time thereafter,
until the expiration or termination of the option. An option hereunder shall expire on October 19,
2011.

     6. Method of Granting. The Secretary of the Company shall forthwith send notice thereof to
each of the participants, in such form as the Board of Directors shall approve, stating the number
of shares optioned to such participant and the price per share, and attaching a copy of this
Statement of Non-Qualified Stock Option Plan. The date of such notice shall be the date of granting
the option to such participant for all purposed of this 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. Adjustments of the Option Stock.

     (a) If, at any time, or from time to time, after the grant but prior to the exercise of all
the or any part of an option under this Plan, the Company shall effect a subdivision or
combination

 

 

of its $1.00 par value, Class A common stock, or other option shares as that term is used below,
into a greater or smaller number of shares, or a reclassification of such $1.00 par value, Class A
common stock or other option shares into shares of another class or into 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 $1.00, par value Class A common stock 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 $1.00 par value, Class A common stock 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 under 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.

     (c) If at any time, or from time to time, after the grant but prior to the exercise of all or
any part of the option under this Plan, the Board shall declare in respect of the Company’s $1.00
par value, Class A common stock or other option shares any dividend payable in shares of the
Company of any class or any 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.

     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.

     9. Severance, Death.

     (a) In the event that a participant shall cease to be a director or advisory director of the
Company or of a subsidiary bank of the Company for any reason except death, any option granted to
him or her under this Plan which 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 them expired, within three months after severance.

     (b) In the event that
a participant shall die while a director or advisory director Company
or of a subsidiary bank of the Company, any option 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 by 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, 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.

     10. Manner of Exercise. Any option shares granted under this Plan may be purchased by written
notice of election delivered prior to the expiration of the option to the Company at its principal
office by registered or certified mail, stating the number of shares with respect to which

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the option is being exercised and specifying a date, not less than five nor more than 15 days
after the date of such notice, on which the shares will be taken and payment made for them.

     11. 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 12 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 shares of the Company. Shares shall be
registered in the name of the participant unless the participant otherwise directs in his or her
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 number of shares, but shall continue with respect to any
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
in a notice of election, then the date specified therein for the delivery of the shares shall be
adjourned until the completion of the necessary action.

     12. 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 or she 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 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 shares at the sole expense of the Company.

     13. Use of Proceeds. The proceeds from the sale of option shares shall be used exclusively
for the general corporate purposes of the Company and shall not be used for other purposes.

     14. 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
the options, alter or impair unexercised options that may have been previously 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 7(b), 9 or 15, hereof.

     15. Liquidation. Upon the complete liquidation of the Company, any options previously
granted under this Plan shall be deemed canceled, except as otherwise provided in paragraph 7(b)
above on the occasion of a merger or consolidation.

     16. Director Approval. This Plan has been approved by the Directors of the Company and is
effective as of October 17, 2001.

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EXHIBIT 10.10

FIRST AMENDMENT OF THE

2001 NON-QUALIFIED STOCK OPTION PLAN

FOR

RELIANCE BANCSHARES, INC.

     THIS FIRST 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 9 of
the Plan and adopts a new paragraph 9 of the Plan which reads in its entirety as follows:

     9. Severance, Death, Transfer.

     (a) In the event that a participant shall cease to be a director or advisory director of the
Company or of a subsidiary bank of the Company for any reason except death or dismissal for cause,
any vested option granted to him or her under this Plan which shall not have been then exercised in
the manner described below, shall be exercisable by the participant within one (1) year after
severance, or until the expiration of the option as provided in paragraph 5, if that be sooner
except that the Board may in its absolute discretion further extend the privilege to such
participant to exercise any options previously granted to him or her which have not then expired.

     (b) In the event that a participant shall die while a director or advisory director of the
Company or of a subsidiary bank of the Company, any option 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 by any person who acquired such option by
bequest or inheritance from the participant, within three (3) years after the death of the
participant, or until the expiration of the option as provided in paragraph 5, 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. Upon
death an option shall be deemed fully vested.

     (c) In the event that a legal director of the Company or of a subsidiary bank of the Company
shall cease to be such a director and shall immediately become an advisory director of the Company
or of a subsidiary bank of the Company or if an advisory director of either shall become a legal
director of either, such a participant shall not forfeit his or her stock options granted under
this Plan, whether fully or partially vested under this Plan and such participants shall continue
to have or own said stock options in his or her new capacity as a legal or advisory director
regardless of the number of options, subject to the terms and conditions of this Plan and prior
service and attendance as a legal or advisory director shall carry over to the new position of said
participant with regard to vesting.

     The foregoing First Amendment of the Plan was approved by the Board of Directors of the
Company on and is effective as of July 16, 2003 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.

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