Document:

exv10w4

 

EXHIBIT 10.4

INDEMNIFICATION AGREEMENT

     THIS
INDEMNIFICATION AGREEMENT (the “Agreement”) is made as of this ___ day of ___,
200_, by and between United Commercial Bank, a California state-chartered bank, (the “Bank”) and
_________, an individual (“Indemnitee”).

RECITALS

     A. The Bank and Indemnitee recognize that unforeseen litigation may subject directors,
officers and agents to costs and expenses.

     B. The Bank desires to attract and retain the services of highly qualified individuals, such
as Indemnitee, to serve as directors, officers and agents of the Bank and to indemnify its
directors, officers and agents so as to provide them with the maximum protection permitted by law.

     In consideration of the Recitals set forth above and mutual covenants and agreements set forth
below, the Bank and Indemnitee do hereby agree as follows:

AGREEMENT

     1. Indemnification and Expense Advancement.

          (a) Proceedings Other than by Right of the Bank. The Bank shall indemnify Indemnitee
if Indemnitee was or is a party or is threatened to be made a party to any proceeding (other than
an action by or in the right of the Bank to procure a judgment in its favor) by reason of the fact
that Indemnitee is or was an Agent (as defined in Section 1(i) below) of the Bank, against costs,
expenses, judgments, fines, settlements and other amounts actually and reasonably incurred in
connection with such proceeding if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in the best interests of the Bank and, in the case of a criminal
proceeding, has no reasonable cause to believe the conduct of Indemnitee was unlawful. The
termination of any proceeding by judgment, order, settlement, conviction or upon a plea of nolo
contendere or its equivalent shall not, of itself, create a presumption that Indemnitee did not act
in good faith and in a manner which Indemnitee reasonably believed to be in the best interests of
the Bank or that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful.

          (b) Proceedings By or in the Right of the Bank. The Bank shall indemnify Indemnitee
if Indemnitee was or is a party or is threatened to be made a party to any threatened, pending or
completed action by or in the right of the Bank to procure a judgment in its favor by reason of the
fact that Indemnitee is or was an Agent of the Bank, against expenses actually and

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reasonably incurred by Indemnitee in connection with the defense or settlement of such action if Indemnitee
acted in good faith, in a manner Indemnitee believed to be in the best interests of the Bank and
its shareholders; except that no indemnification shall be made under this Section 1(b) for any of
the following:

               (i) In respect of any claim, issue or matter as to which Indemnitee shall have been adjudged
to be liable to the Bank in the performance of Indemnitee’s duty to the Bank and its shareholders,
unless and only to the extent that the court in which such proceeding is or was pending shall
determine upon application that, in view of all the circumstances of the case, Indemnitee is fairly
and reasonably entitled to indemnity for the expenses which such court shall determine;

               (ii) Of amounts paid in settling or otherwise disposing of a pending action without court
approval; or

               (iii) Of expenses incurred in defending a pending action which is settled or otherwise
disposed of without court approval.

          (c) Determination of Right of Indemnification. Any indemnification under Sections
1(a) and (b) shall be made by the Bank only if authorized in the specific case, upon a
determination that indemnification of Indemnitee is proper in the circumstances because Indemnitee
has met the applicable standard of conduct set forth above in Sections 1(a) and (b) by any of the
following:

               (i) A majority vote of a quorum consisting of directors who are not parties to such
proceeding; or

               (ii ) If such a quorum of directors is not obtainable, by independent legal counsel in a
written opinion; or

               (iii) Approval of the shareholders by the affirmative vote of a majority of the shares
entitled to vote represented at a duly held meeting at which a quorum is present or by the written
consent of shareholders as provided in the Bylaws, with the shares owned by the person to be
indemnified not being entitled to vote thereon; or

               (iv) By the court in which such proceeding is or was pending upon application made by the Bank
or its Agent or attorney or other person rendering services in connection with the defense, whether
or not such application by the Agent, attorney or other person is opposed by the Bank.

          (d) Advances of Expenses. Expenses (including reasonable attorneys’ and experts’
fees), costs, and charges incurred in defending any proceeding shall be advanced promptly by the
Bank prior to the final disposition of such proceeding upon receipt of a written undertaking by or
on behalf of Indemnitee to repay such amount unless it shall be determined

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ultimately that
Indemnitee is entitled to be indemnified as authorized in this Section 1. The form of such
undertaking shall be substantially similar to Exhibit A hereto.

          (e) Indemnification Against Expenses of Successful Party. Notwithstanding the other
provisions of this Section 1, to the extent that Indemnitee has been successful on the merits in a
defense of any proceeding, claim, issue or matter referred to in Sections 1(a) and (b), Indemnitee
shall be indemnified against all expenses actually and reasonably incurred by Indemnitee in
connection therewith.

          (f) Right of Indemnitee to Indemnification Upon Application; Procedure Upon
Application. Any indemnification provided for in Sections 1(a), (b) or (e) shall be made no
later than ninety (90) days after the Bank is given notice of request by Indemnitee, provided that
any indemnification under Sections 1(a) and (b) is authorized pursuant to Section 1(c). Any such
request for indemnification must be made within ninety (90) days of the final adjudication,
dismissal, or settlement of the matter for which Indemnitee seeks indemnification, unless an appeal
is filed, in which case the request may be made within ninety (90) days after the appeal is
resolved (hereafter referred to as “Final Disposition”). Upon such notice, if a quorum of
directors who were not parties to the action, suit, or proceeding giving rise to indemnification is
obtainable, the Bank shall within two (2) weeks call a Board of Directors meeting to be held within
four (4) weeks of such notice, to make a determination as to whether Indemnitee has met the
applicable standard of conduct. Otherwise, if a quorum consisting of directors who were not
parties in the relevant action, suit, or proceeding is not obtainable, the Bank shall retain (at
the Bank’s expense) independent legal counsel chosen by the Bank within two (2) weeks to make such
determination.

               If notice of a request for payment of a claim under any statute, under this Agreement, or
under the Bank’s Articles of Incorporation or Bylaws providing for indemnification or advance of
expenses has been given to the Bank by Indemnitee, and such claim is not paid in full by the Bank
within ninety (90) days of the later occurring of the giving of such notice and Final Disposition
in case of indemnification and ten (10) days of the giving of such notice in case of advance of
expenses, Indemnitee may, but need not, at any time thereafter bring an action against the Bank to
receive the unpaid amount of the claim or the expense advance and, if successful, Indemnitee shall
also be paid for the expenses (including reasonable attorneys’ and experts’ fees) of bringing such
action. It shall be a defense to any such action (other than an action brought to enforce a claim
for expenses incurred in connection with any action, suit, or proceeding in advance of its Final
Disposition) that Indemnitee has not met the standards of conduct which make it permissible under
applicable law for the Bank to indemnify Indemnitee for the amount claimed, and Indemnitee shall be
entitled to receive interim payment of expenses pursuant to Section 1(d) unless and until such
defense may be finally adjudicated by court order or judgment from which no further right of appeal
exists. Neither the failure of the Bank (including its Board of Directors, independent legal
counsel, or its shareholders) to have made a determination that indemnification of Indemnitee is
proper in the circumstances because Indemnitee has met the applicable standard of conduct required
by applicable law, nor an actual determination by the Bank (including its Board of Directors or its
independent legal counsel) that

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Indemnitee has not met such applicable standard of conduct, shall
create a presumption that Indemnitee has or has not met the applicable standard of conduct.

          (g) Insurance. The Bank may purchase and maintain insurance on behalf of any person
who is or was an Agent against any liability asserted against such person and incurred by him or
her in any such capacity, or arising out of his or her status as such, whether or not the Bank
would have the power to indemnify such person against such liability under the provisions of this
Section 1.

          (h) Optional Means of Assuring Payment. Upon request by an Indemnitee certifying that
Indemnitee has reasonable grounds to believe Indemnitee may be made a party to a proceeding for
which Indemnitee may be entitled to be indemnified under this Section 1, the Bank may, but is not
required to, create a trust fund, grant a security interest or use other means (including, without
limitation, a letter of credit) to ensure the payment of such sums as may become necessary to
effect indemnification as provided herein.

          (i) Definition of Agent. For the purposes of this Agreement, “Agent” means any person
who is or was a director, officer, employee or other agent of the Bank, or is or was serving at the
request of the Bank as a director, officer, employee or agent of another foreign or domestic Bank,
partnership, joint venture, trust or other enterprise, or was a director, officer, employee or
agent of a foreign or domestic Bank which was a predecessor Bank of the Bank or of another
enterprise at the request of such predecessor Bank; “proceeding” means any threatened, pending or
completed action or proceeding, whether civil, criminal, administrative or investigative; and
“expenses” includes without limitation reasonable attorneys’ and experts’ fees and any expenses of
establishing a right to indemnification.

          (j) Indemnification under Section 204(a)(11) of the California General Corporation
Law. Subject to the provisions of California General Corporation Law Section 204(a)(11) and
any other applicable law, notwithstanding any other provisions of this Section 1, the following
shall apply to the indemnification of Indemnitee:

               (i) The Bank shall indemnify Indemnitee pursuant to this Section 1(l) if the Bank would be
required to indemnify Indemnitee pursuant to Sections 1(a) or (b) if in Section 1(a) or (b) the
phrase “in a manner Indemnitee reasonably believed to be in the best interests of the Bank” is
replaced with the phrase “in a manner Indemnitee did not believe to be contrary to the best
interests of the Bank.” If pursuant to Sections 1(c) and (f) the person making the Section 1(a)
and/or (b) conduct standard determination determines that such standard has not been satisfied,
such person shall also determine whether this Section 1(l)(i) conduct standard has been satisfied;

               (ii) There shall be a presumption that Indemnitee met the applicable standard of conduct
required to be met in Section 1(c) for indemnification, rebuttable by clear and convincing evidence
to the contrary;

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               (iii) The Bank shall have the burden of proving that Indemnitee did not meet the applicable
standard of conduct in Section 1(c);

               (iv) In addition to the methods provided for in Section 1(c), a determination that
indemnification is proper in the circumstances because that Indemnitee met the applicable standard
of conduct may also be made by the arbitrator in any arbitration proceeding in which such matter is
or was pending; and

               (v) Unless otherwise agreed to in writing between an Indemnitee and the Bank in any specific
case, indemnification may be made under Section 1(b) for amounts paid in settling or otherwise
disposing of a pending action without court approval.

     2. Changes.

          In the event of any change, after the date of this Agreement, in any applicable law, statute,
or rule which expands the right of a California state-chartered bank to indemnify a member of its
board of directors, its officers or its Agents, such changes shall automatically expand, without
further action of the parties, Indemnitee’s rights and the Bank’s obligations, under this
Agreement. In the event of any change in any applicable law, statute or rule which narrows the
right to indemnify a member of its board of directors, its officers or its Agents, such changes, to
the extent not otherwise required by such law, statute or rule to be applied to this Agreement,
shall have no effect on this Agreement or the parties’ rights and obligations hereunder. In the
event of an amendment to the Bank’s Bylaws which expands the right to indemnify a member of its
board of directors, its officers or its Agents, such change shall automatically expand, without
further action of the parties, Indemnitee’s rights and Bank’s obligations under this Agreement. In
the event of any amendment to the Bank’s Bylaws which narrows such right of a California
state-chartered bank to indemnify a member of its board of directors, its officers or its Agents,
such change shall only apply to the indemnification of Indemnitee for acts committed, or lack of
action, by Indemnitee after such amendment. The Bank agrees to give Indemnitee prompt written
notice of amendments to the Bank’s Bylaws which concern indemnification.

     3. Nonexclusivity.

          The indemnification provided by this Agreement shall not be deemed exclusive of any rights to
which Indemnitee may be entitled under the Bank’s Articles of Incorporation, its Bylaws, any
agreement, any vote of shareholders or disinterested Directors, the California General Corporation
Law, or otherwise, both as to action in Indemnitee’s official capacity and as to action in any
other capacity while holding such office (an “Indemnified Capacity”). The indemnification provided
under this Agreement shall continue as to Indemnitee for any action taken or not taken while
serving in an Indemnified Capacity even though such Indemnitee may have ceased to serve in an
Indemnified Capacity at the time of any action, suit or other covered proceeding, and shall inure
to the benefit of the heirs, executors, and administrators of Indemnitee.

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     4. Partial Indemnification.

          If Indemnitee is entitled under any provision of this Agreement to indemnification by the Bank
for some or a portion of the expenses, judgment, fines or penalties actually or reasonably incurred
by Indemnitee in the investigation, defense, appeal or settlement of any civil or criminal action,
suit or proceeding, but not, however, for the total amount thereof, the Bank shall nevertheless
indemnify Indemnitee for the portion of such expenses, judgments, fines or penalties to which
Indemnitee is entitled pursuant to this Agreement.

     5. Potential Limitations.

          Both the Bank and Indemnitee acknowledge that in certain instances, California state law and
federal banking laws and regulations, federal law or public policy may override applicable state
law and prohibit the Bank from indemnifying its directors and officers under this Agreement or
otherwise. For example, the Bank and Indemnitee acknowledge that the federal regulators have taken
the position that indemnification is not permissible for liabilities arising under certain federal
securities laws, and federal legislation prohibits indemnification for certain ERISA violations.
Indemnitee understands and acknowledges that the Bank has undertaken or may be required in the
future to undertake with federal regulators to submit questions of indemnification to a court in
certain circumstances for a determination of the Bank’s right under public policy to indemnify
Indemnitee. Furthermore, Indemnitee and Bank acknowledge that the extent of (i) indemnification
permissible under Section 204(a)(11) of the California General Corporation Law has not been
judicially determined; therefore, the enforceability of Indemnitee’s rights under Section 1(l) is
uncertain; and (ii) advancement of expenses and indemnification of Indemnitee in the event of a
proceeding or action described in Section 7(a) below, is also uncertain and may not be permissible
or may be subject to applicable regulatory restrictions.

     6. Severability.

          Nothing in this Agreement is intended to require or shall be construed as requiring the Bank
to do or fail to do any act in violation of applicable law. The Bank’s inability, pursuant to
court order, to perform its obligations under this Agreement shall not constitute a breach of the
Agreement. If the application of any provision or provisions of the Agreement to any particular
facts or circumstances shall be held to be invalid or unenforceable by any court of competent
jurisdiction, then (i) the validity and enforceability of such provision or provisions as applied
to any other particular facts or circumstances and the validity of other provisions of this
Agreement shall not in any way be affected or impaired thereby and (ii) such provision(s) shall be
reformed without further action by the parties to make such provision(s) valid and enforceable when
applied to such facts and circumstances with a view toward requiring the Bank to indemnify
Indemnitee to the fullest extent permissible by law.

     7. Exceptions.

          Notwithstanding any other provision herein to the contrary, the Bank shall not be obligated
pursuant to the terms of this Agreement:

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          (a) Regulatory Agency Proceedings. To indemnify Indemnitee for expenses, penalties or
other payments incurred in an administrative proceeding or action threatened instituted by a
bank regulatory agency, which proceeding or action results in a final order imposing injunctive or
similar relief or assessing civil money penalties or in any other resolution requiring or
preventing action by the Indemnitee; or

          (b) Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee
with respect to proceedings or claims (except counter-claims or cross-claims) initiated or brought
voluntarily by Indemnitee and not by way of defense, except with respect to proceedings brought to
establish or enforce a right to indemnification under this Agreement or any other statute or law or
otherwise as required by the California General Corporation Law, but such indemnification or
advancement of expenses may be provided by the Bank in specific cases if the Board of Directors
finds it to be appropriate; or

          (c) Lack of Good Faith. To indemnify Indemnitee for any expenses incurred by
Indemnitee with respect to any proceeding instituted by Indemnitee to enforce or interpret this
Agreement, if a majority of the Bank’s directors or a court of competent jurisdiction determines
that the material assertions made by Indemnitee in such proceeding were not made in good faith or
was frivolous; or

          (d) Insured Claims. To indemnify Indemnitee for expenses or liabilities of any type
whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties, and
amounts paid in settlement) which have been paid directly to Indemnitee by an insurance carrier
under a policy of officers’ and directors’ liability or other insurance maintained by the Bank; or

          (e) Claims under Section 16(b). To indemnify Indemnitee for expenses or the payment
of profits arising from the purchase and sale by Indemnitee of securities in violation of Section
16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute.

     8. Counterparts.

          This Agreement may be executed in one or more counterparts, each of which shall constitute an
original.

     9. Successors and Assigns.

          This Agreement shall be binding upon the Bank and its successors and assigns, and shall inure
to the benefit of Indemnitee and Indemnitee’s estate, heirs, and legal representatives and
permitted assigns. Indemnitee may not assign this Agreement without the prior written consent of
the Bank.

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     10. Attorneys’ Fees.

          In the event that any action is instituted by Indemnitee under this Agreement to enforce or
interpret any of the terms hereof, Indemnitee shall be entitled to be paid all court costs and
expenses, including reasonable attorneys’ and experts’ fees, incurred by Indemnitee with respect to
such action,
unless as a part of such action, the court of competent jurisdiction determines that each of the
material assertions made by Indemnitee as a basis for such action were not made in good faith or
were frivolous. In the event of an action instituted by or in the name of the Bank under this
Agreement or to enforce or interpret any of the terms of this Agreement, Indemnitee shall be
entitled to be paid all court costs and expenses, including reasonable attorneys’ and experts’
fees, incurred by Indemnitee in defense of such action (including with respect to Indemnitee’s
counterclaims and cross-claims made in such action), unless as a part of such action the court
determines that each of Indemnitee’s material defenses to such action were made in bad faith or
were frivolous.

     11. Notice.

          All notices, requests, demands and other communications under this Agreement shall be in
writing and shall be deemed duly given (i) if delivered by hand and signed for by the party
addressee, on the date of such receipt, or (ii) if mailed by certified or registered mail with
postage prepaid, on the third business day after the date postmarked. Addresses for notice to
either party are as shown on the signature page of this Agreement, or as subsequently modified by
written notice.

     12. Section Headings.

          The Section headings in this Agreement are solely for convenience and shall not be considered
in its interpretation.

     13. Waiver.

          A waiver by either party of any term or condition of the Agreement or any breach thereof, in
any one instance, shall not be deemed or construed to be a waiver of such term or condition or of
any subsequent breach thereof.

     14. Entire Agreement; Amendment.

          This instrument contains the entire integrated Agreement between the parties hereto and
supersedes all prior negotiations, representations or agreements, whether written or oral except
for the Bank’s Articles of Incorporation and Bylaws. It may be amended only by a written
instrument signed by a duly authorized officer of Bank and by Indemnitee.

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     15. Choice of Law and Forum.

          Except for that body of law governing choice of law, this Agreement shall be governed by, and
construed in accordance with, internal laws of the State of California which govern transactions
between California residents.

     16. Mediation/Arbitration.

          (a) All disputes, claims or controversies arising out of or relating to this Agreement
(collectively, “Disputes”) shall be submitted to non-binding mediation by either party to an
impartial mediator, as agreed to by the parties, and appointed through JAMS in San Francisco,
California, for a good faith effort at resolution. The mediator shall review the Dispute within
thirty (30) days of submission or at such other time provided the parties so agree. Any mediation
fee shall be paid equally among the parties. Any Dispute which is not resolved through such
mandatory mediation shall be settled by final and binding arbitration before a single neutral
arbitrator of JAMS in accordance with the then current Commercial Arbitration Rules of the American
Arbitration Association in San Francisco, California. Judgment on the award rendered by the
arbitrator may be entered in any court in California. In the event that any Dispute between
Indemnitee and the Bank should result in arbitration, the prevailing party in the Dispute shall be
entitled to recover from the other party all reasonable fees, costs and expenses of enforcing any
right of the prevailing party, including, without limitation, reasonable attorneys’ fees, experts’
fees, and expenses. Each party agrees that the Dispute as mediated and/or arbitrated and the final
resolution of such Dispute shall be considered to be confidential information, and shall be kept
confidential by each party.

     (b) Indemnitee specifically acknowledges and understands that by agreeing to this provision,
Indemnitee is waiving all rights to have his or her claims brought, investigated, and/or
adjudicated by an administrative agency, or heard before a judge or jury. Indemnitee also
understands that Indemnitee’s rights to discovery may be lesser or narrower in arbitration, that
there may be fees and costs associated with mediation and/or arbitration that Indemnitee may not
otherwise have, and that Indemnitee is waiving substantial time that Indemnitee might otherwise
have to make a claim, prepare his or her case, or investigate his or her claims. The claims
include claims of any kind relating to Indemnitee’s relationship with the Bank, including claims
relating to compensation, discrimination, any benefits, status as an officer, director or Agent of
the Bank, conflict of interest, or any other claim or dispute relating to or arising out of
Indemnitee’s relationship with the Bank. The underlying Disputes shall be fully and finally
resolved through arbitration, including any right to permanent injunctive relief.

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     17. Consideration.

          Part of the consideration the Bank is receiving from Indemnitee to enter into this Agreement
is Indemnitee’s agreement to serve or to continue to serve, as applicable, for the present as an
officer, director or Agent of the Bank. Nothing in this Agreement shall preclude Indemnitee from
resigning as an officer, director or Agent of the Bank nor the Bank, by action of its shareholders,
board of directors, or officers, as the case may be, from terminating Indemnitee’s services as an
officer, director or Agent, as the case may be, with or without cause.

[Remainder of page intentionally left blank]

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

	 	 	 	 	 
	INDEMNITEE:	 	UNITED COMMERCIAL BANK
	 
	 	 	 	 
	

	 	By	 	 
	 

	 	 	 	 
	Signature
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 	 	Printed Name and Title
	 	 	 	 	 
	Printed Name
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	(address)	 	(address)

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EXHIBIT A

UNDERTAKING TO REPAY ADVANCEMENT

OF EXPENSES

     A. Indemnitee is or has been a director, officer, employee or other agent of UNITED COMMERCIAL
BANK, a California state-chartered bank (the “Bank”); and

     B. On account of such fact, Indemnitee was or is or is threatened to be made a party to the
proceeding described and designated hereinafter (the “Proceeding”); and

     C. Indemnitee has requested that the Bank advance to Indemnitee, prior to final disposition of
the Proceeding, Indemnitee’s costs and expenses incurred in defense of the Proceeding; and

     D. As a condition to advancement of such expenses, the Bank has required that the following
undertaking be made by or on behalf of Indemnitee.

The undersigned herein undertakes as follows:

     1. This undertaking is executed in accordance with and is subject to Section 317 of the
California General Corporation Law, and that certain Indemnification Agreement between Indemnitee
and the Bank dated ___, and is subject to all provisions, including definitions of
terms, thereof.

     2. Indemnitee was or is or is threatened to be made a party to the following proceeding:

	 	 	 
	Name of Claimant or Title

	 	 
	of Action or Proceeding:
	 	 
	

	 	 

			
	Court or Agency
	(if any):
	 	 
	

	 	 

A-1

 

	 	 	 
	Date Filed Or Presented:

	 	 
	

	 	 

	 	 	 
	Status:

	 	 
	

	 	 
	 
	 	 
	

	 	 
	 
	 	 
	

	 	 

	 	 	 
	Indemnitee’s Counsel:

	 	 
	

	 	 

	 	 	 
	Nature and Amount
	of Claim:

	 	 
	

	 	 
	 
	 	 
	

	 	 
	 
	 	 
	

	 	 
	 
	 	 
	

	 	 

     3. In consideration of the advancement by the Bank of Indemnitee’s expenses incurred or to be
incurred in defense of the Proceeding, the undersigned hereby undertakes to repay all amounts
advanced by the Bank on account of Indemnitee’s defense of the Proceeding, unless it shall be
determined ultimately that Indemnitee is entitled to be indemnified with respect to the Proceeding
in accordance with Section 317 of the California General Corporation Law.

	 	 	 	 	 
	Date:
	 	 	 	 
	

	 	 
	 	 
	

	 	 	 	(Signature of Indemnitee)
	 
	 	 	 	 
	

	 	 	 	 
	

	 	 	 	(Printed Name of Indemnitee)

A-2exv4w6

 

Exhibit 4.6

WIPRO EMPLOYEE RESTRICTED STOCK UNIT PLAN 2004

1. Short title, extent and commencement

	a.  	This Plan may be called the “RSU 2004.”
	 
	b.  	It applies only to the Eligible Employees of the Company, all its subsidiaries (whether now
or hereafter existing,) as well as to all the Directors except promoter directors and
directors who either by themselves or through their relatives or through any body corporate
directly or indirectly hold more than 10% of the outstanding equity shares of the Company.
Subject to such approval of SEBI, it shall apply to the employees of associate companies and
other business associates.
	 
	c.  	It shall be deemed to have come into force on the 11 June, 2004 (date of the AGM) or on such
other date as may be decided by the Board of Directors of the Company.

2. Objectives of the Plan

The principal objectives of this Plan which is framed in accordance with the SEBI ( Employee Stock
Option Scheme and Employee Stock Purchase Scheme), Guidelines), 1999 are to:

	a.  	Attract, retain and motivate talented and critical employees;
	 
	b.  	Encourage employees to align individual performance with company objectives;
	 
	c.  	Reward employee performance with ownership in proportion to their contribution;
	 
	d.  	Align employee interest with those of the organization;

3. Definitions

As used herein, unless repugnant to the context the following definitions shall apply:

	a.  	“Act” means the Companies Act, 1956
	 
	b.  	“Applicable Laws” means the legal requirements relating to Restricted Stock Units Plans,
including, without limitation, the tax, securities or corporate laws of India, particularly
the SEBI (Employee Stock Options and Employee Stock Purchase Scheme) Guidelines, 1999 (“SEBI
ESOP Guidelines”), and rules, bye- laws of any stock exchange in which the shares are listed
or quoted.
	 
	c.  	“Administrator” means the Compensation & Benefits Committee .
	 
	d.  	“Board” means the Board of Directors for the time being of the Company.
	 
	e.  	“Company” means Wipro Limited.
	 
	f.  	“Compensation and Benefits Committee” means the Compensation and Benefits Committee appointed
by the Board.
	 
	g.  	“Director” means a member of the Board.
	 
	h.  	““Permanent Disability” means any disability of whatsoever nature be it physical, mental or
otherwise which incapacitates or prevents or handicaps an employee from performing any
specific job , work or task which the said employee was capable of performing immediately
before such disablement.
	 
	i   	“Employee” means a permanent employee of the company working in India or out of India; or a
director of the company, whether a whole time director or not (but does not include a Promoter
Director) ; or an employee as defined in sub-clauses (a) or (b) of a subsidiary in India or
out of India, or of a holding company of the company or subject to approval of SEBI, employees
of associate companies and other business associates. An Employee shall

 

 

	   	continue to be an Employee during the period of (i) any leave of absence
approved by the Company or (ii) transfers between locations of the Company or
between the Company, its Parent, any Subsidiary, or any successor.
	 
	j   	“Eligible Employee” means an employee who qualifies for issue of Restricted Stock Units under this Plan
and who fulfills the conditions as decided in the evaluation process and will include new employees
joining the Company as well as those who have been appointed to join the Company. Promoter Employees and
Promoter Directors are not eligible under this Plan. Further any person holding 2% or more of the paid up
share capital the Company’s equity shares or any director who either by himself or through his
relatives or body corporate directly or indirectly holds more than 10% of the outstanding equity shares
of the Company shall not be eligible to participate at any time after the commencement of this Plan shall
not be eligible under this Plan provided further that the except with the prior approval of Reserve Bank of
India, employees who are the citizens of Bangladesh, Pakistan or Sri Lanka shall not be eligible to
participate in the Plan.
	 
	k.  	“Exercise” means making of an application by the Eligible Employee to the company for issue
of shares against Restricted Stock Units vested in him in pursuance of the Plan and paying the
exercise price for the Restricted Stock Units.
	 
	l.  	“Exercise Price” means, the price payable by the employee for exercising the Restricted Stock
Unit granted to him under the plan as may be decided by the Administrator from time to time,
such price being not less than the face value of the share as may be modified from time to
time.
	 
	m   	“Exercise Period” means the time period after vesting within which the employee should
exercise his right to apply for shares against the Restricted Stock Unit vested in him in
pursuance of the plan.
	 
	n.  	“Fair Market Value” of a share means the market price as defined by Securities and Exchange
Board of India from time to time.
	 
	o.  	“Market Price” of a share on a given date means the average of the two weeks high and low
price of the share preceding the date of grant of option on the stock exchange on which the
 shares of the company are listed. If the shares are listed on more than one stock exchange,
than the stock exchange where there is highest trading volume during the aforesaid period
should be considered.
	 
	p.  	“Optionee” means the holder of an outstanding Restricted Stock Unit granted pursuant to this
Plan.
	 
	q.  	“Plan” means Wipro Employees Restricted Stock Unit Plan 2004
	 
	r.  	“Restricted Stock Unit (“RSU’”) means a Restricted Stock Option granted pursuant to the Plan,
comprising of a right but not an obligation granted to an employee under the Plan to apply for
and be allotted shares of the company at the exercise price determined earlier, during or
within the exercise period, subject to the requirements of vesting.
	 
	s.  	“Restricted Stock Unit Agreement” means a written agreement between the Company and an
Optionee evidencing the terms and conditions of an individual Restricted Stock Unit grant.
The Restricted Stock Unit Agreement is subject to the terms and conditions of the Plan.
	 
	t.  	“SEBI” means Securities Exchange Board of India or such other statutory authority having
power to regulate the Plan from time to time.
	 
	u.  	“Shares” mean, the equity shares of the company which have no preference in respect of
dividends or in respect of amounts payable in the event of any voluntary liquidation or
winding up of the Company.
	 
	v.  	“Subsidiary” means a subsidiary of the Company, whether now or hereafter existing as defined
under Section 4 of the Companies Act, 1956.
	 
	w.  	“Vesting” means the process by which the employee is given the right to apply for shares of
the company against the Restricted Stock Unit granted to him in pursuance of the plan.
	 
	x.  	“Vesting period” means the period after the completion of which the vesting of the Restricted
Stock Unit granted to the employee in pursuance of the Plan takes place and does not include
any period of service for which employee was not paid salary/wages other than for reasons
approved by the Administrator

4. Quantum of shares subject to the Plan

 

 

	a.  	Subject to Section 18 of the Plan the maximum number of the shares which shall be subject to
RSU under the Plan is as under:

	 	 	 	 	 	 
	 	Nominal value per share: .

	 	 	The maximum number of shares subject to RSU
under the plan is	 
	 	Rs. 2 (Two)

	 	 	2,000,000 ( Two million)	 
	 

	b.  	The shares, which are subject to RSU, shall be authorized but unissued shares.
	 
	c.  	If an RSU expires or becomes unexercisable without having been exercised in full, the
unpurchased shares, which were subject thereto, shall lapse and become available for future
grant under the Plan (unless the Plan has terminated).
	 
	d.  	Where shares are issued consequent upon exercise of an RSU under the Plan, the maximum number
of shares which are subject to RSU from time to time referred to in Section 4(a) above stands
reduced to the extent of such shares issued.

5. Administration of the Plan

The Plan shall be administered by the Administrator being the Compensation and Benefits Committee
of the Company as per the provisions of the Plan.

6. Powers of the Administrator

Subject to the provisions of the Plan and subject to the approval of any relevant authorities, the
Administrator shall have the authority at its sole discretion to;

	I.  	determine the Exercise Price;
	 
	II.  	select the Eligible Employees to whom RSUs may from time to time be granted hereunder;
	 
	III.  	determine the number of shares to be covered by each such RSU granted hereunder including, determination of the number of
other ADS RSUs/ Stock options to be granted in substitution of these RSUS, subject to all applicable laws;
	 
	IV.  	determine the Vesting Period (being minimum one year period between grant and vesting of options as per SEBI ESOP
Guidelines )and the exercise period.
	 
	V.  	determine the number of shares and / or the exercise price in the case of bonus shares, share
splits, preferential allotments (if any) and rights issues/dilution and any other form of
corporate action.
	 
	VI.  	approve forms of agreement for use under the Plan;
	 
	VII.  	determine the terms and conditions, of any RSU granted hereinunder not being inconsistent with the provisions of the Plan
	 
	VIII.  	prescribe, amend and rescind rules and regulations relating to the Plan; and
	 
	IX.  	construe and interpret the terms of the Plan and RSUs granted pursuant to the Plan

Administrator shall frame suitable policies and system to ensure that there is no violation of (a)
SEBI (Insider Trading) Regulations, 1992 and SEBI (Prohibition of Fraudulent and Unfair Trade
Practices relating to the securities market ) Regulations, 1995 by any employee.

No RSUs shall be offered unless disclosures as specified in Schedule IV are made by the Company to
the prospective option grantees.

7. Effect of Administrator’s decisions

All decisions, determinations and interpretations of the Administrator shall be final and binding
on all concerned.

8. Eligibility for grant of RSUs

 

 

	a.  	Only Eligible Employees are entitled to the grant of RSUs
	 
	b.  	Each RSU shall be designated in the RSU Agreement.
	 
	c.  	Neither the Plan nor any RSU shall confer upon any Optionee any right with respect to
continuing the Optionee’s relationship as an Employee with the Company, nor shall it interfere
in any way with his or her right or the Company’s right to terminate such relationship at any
time, for any reason whatsoever.
	 
	d.  	Confidentiality: No employee who holds any RSUs / shares under the Plan shall disclose the
details of the Plan and/ or his/ her holding, to any person, except with the prior permission
of the company.

9. Rights of an Optionee

Unless and until the RSUs have been exercised and/or transferred/allotted to the name of the
Optionee in accordance with the provisions of the Act, the Optionee or his/her nominee shall not
have any rights whatsoever as a shareholder including rights for receipt of dividend and/or for
voting with respect to RSUs granted.

10. Term of Plan for the purpose of Grant

The Plan shall become effective upon approval by the Shareholders. It shall continue in effect for
a term of ten (10) years unless sooner terminated under Section 20 of the Plan or extended for such
further periods from time to time. It is further clarified that the grant of Award shall be made
during the first ten years of the Plan unless sooner terminated under Section 20 of the Plan or
extended for such further periods from time to time.

11. Term of RSU

The term of each RSU shall be stated in the RSU Agreement; provided, however, that the term shall
be no more than six (6) years from the date of grant thereof.

12. Maximum quantum of RSUs per Optionee

The maximum quantum of RSU per Optionee shall not exceed 1% of the total paid up equity capital
during the tenure of the plan. Further allotment of shares to an Optionee during any one year
exceeding 1% of the issued capital at the time of allotment of shares shall be subject to a
separate resolution.

13. Vesting periods of RSUs

	a.  	The minimum vesting period of an RSU shall not be less than a period of 12 months from the
date of grant of the RSU or such other shorter period or periods as may be decided by the
administrator provided such shorter periods are in compliance with the SEBI ESOP Guidelines
applicable from time to time
	 
	b.  	The maximum vesting period of an RSU shall not be of a period more than 84 months from the
date of the grant of the RSU.
	 
	c.  	Subject to the minimum and maximum vesting periods of an RSU referred to in Section 13(a) and
(b) above, the Administrator shall have the sole discretion to decide upon the vesting periods
in respect of any Optionee or a category of Optionee.

14. Consideration payable by Optionees while exercising RSU

	a.  	The consideration payable by an Optionee for exercising an RSU would be as per the exercise
price.
	 
	b.  	The consideration to be paid for the shares to be issued upon exercise of an RSU, including
the method of payment shall be determined by the Administrator at the time of grant. Such
consideration may be paid by way of;

	 	 	 	 	 
	

	 	i.
	 	cash
	 
	

	 	ii.
	 	cheque or cheque equivalent

In making its determination as to the type of consideration to accept, the Administrator shall
consider if acceptance of such consideration may be reasonably expected to benefit the Company.

15. Methodology of Exercise of RSUs

	a.  	Procedure for Exercise of RSUs:

 

 

An RSU granted hereunder shall be exercisable according to the terms hereof at such times and under
such conditions as determined by the Administrator and set forth in the RSU Agreement. The RSU
shall be deemed exercised when the Company receives;

	 	 	 	 	 
	

	 	i.
	 	written or electronic notice of exercise (in accordance with the RSU Agreement)
from the person entitled to exercise the RSU
	 
	 	 	 	 
	

	 	ii.
	 	full payment for the shares with respect to which the RSU is exercised.

RSUs will become exercisable in part or whole. The unexercised portion of the RSU will continue to
be available to the Optionee or the nominee, for exercise, in case of specified circumstances such
as separation, death, disability, etc up to such time frame as provided for in the Restricted Stock
Unit agreement.

	b.  	Exercise of RSUs in the case of separation of an Employee from the Company

	 	 	 	 	 
	

	 	i.
	 	In the event of separation of an employee from the company due to reasons of
permanent and total disability of the Optionee, the Optionee may exercise his or her
RSU both vested as well as unvested immediately after the date of permanent and total
disability but in no event later than six months from the date of separation from
employment.
	 
	 	 	 	 
	

	 	ii.
	 	In the event of death of an employee while in employment with the Company, the
RSUs granted both vested and unvested may be exercised by the Optionee’s nominee
immediately after, but in no event later than six months from the date of Optionee’s
death.
	 
	 	 	 	 
	

	 	iii.
	 	In the event of termination of employment for reasons of misconduct, all RSUs
including those, which are vested but not exercised at the time of termination of
employment, shall expire and stand terminated with effect from the date of such
termination.
	 
	 	 	 	 
	

	 	iv.
	 	In the event of resignation from employment for reasons of normal retirement or
an early retirement specifically approved by the company, the RSUs granted both vested
and unvested may be exercised by the Optionee or his/her nominee, as the case may be
immediately after, but in no event later than six months from the date of Optionee’s
retirement
	 
	 	 	 	 
	

	 	v.
	 	In the event of resignation, all RSUs, which are not vested on the date of
separation, shall expire and stand terminated with effect from that date . However,
all RSUs which have already been vested as on that date shall be exercised by the
employee immediately but not later than 7 days from the effective date of /separation
of the employee.
	 
	 	 	 	 
	

	 	vi.
	 	In the event of abandonment of service by an Optionee without the Company’s
consent, all RSUs including those, which are vested but were not exercised at the time
of abandonment of service shall stand terminated with immediate effect. The date of
abandonment of an employee shall be decided by the Company at its sole discretion
which, decision shall be binding on all concerned.
	 
	 	 	 	 
	

	 	vii.
	 	In the event of termination with or without cause other than termination of
employment for reasons of misconduct as per 15 b iii above, all RSUs, which are not
vested on the date of termination, shall expire and stand terminated with effect from
that date . However, all RSUs which have already been vested as on that date shall be
exercised by the employee immediately but not later than 7 days from the effective date
of termination of the employee.

	c.  	Breach of the policies of the Company or the terms of employment

In the event of breach of the policies of the company or the terms of employment by the Optionee,
during the term of his employment and thereafter for a period of one year, all RSUs including those
which are vested but not exercised at the time of such breach shall expire and stand terminated
with effect from the date of such breach.

d. Cashless exercise of Restricted Stock Units: Cash less exercise of Restricted Stock Units may be
made by the Optionee which shall be subject to regulatory restrictions and permissions, as may be
applicable. Under the cashless system of securities, the Company may itself fund or permit the
empanelled stock brokers to fund the payment of

 

 

exercise price, which shall be adjusted against the sale proceeds of some or all the shares subject
to the provisions of the Act.

16. Consequence of failure to exercise RSU

The amount payable by the employee, if any, at the time of grant of RSU: may be forfeited by
the company if the RSU is not exercised by the employee within the exercise period; or the amount
may be refunded to the employee if the RSUs are not vested due to non-fulfillment of condition
relating to vesting of RSU as per the Plan.

17. Non transferability of RSU

The RSUs granted under this Plan are not eligible to be sold, pledged, assigned, hypothecated,
transferred or disposed or alienated of in any manner other than by will or by the laws of descent
or distribution and may be exercised, during the life time of the Optionee, only by the Optionee.

18. Adjustments of number and exercise price of RSU in certain cases

	a.  	Capitalization by way of issue of bonus shares:

Subject to any required action by the shareholders of the Company, all the Restricted Stock Units
including those which are vested but were not exercised and / or, as well as the price per share
covered by each such outstanding RSU, shall be proportionately adjusted for any increase in the
number of issued shares resulting from issue of bonus shares without receipt of consideration by
the company provided however that price per share shall not be reduced below the par value of the
share as on the date of allotment of such bonus shares.

	b.  	Issue of rights shares:

Subject to any required action by the shareholders of the Company, all the RSUs including those
which are vested but were not exercised and/or the price per share covered by each such outstanding
RSU, shall be proportionately adjusted for any increase in the number of issued shares resulting
from issue of rights shares provided however that price per share shall not be reduced below the
par value of the share as on the date of allotment of such rights shares.

	c.  	Issue of additional equity (other than by way of issue of rights shares, or allotment of
 shares under an Employee Stock Option Scheme/Employee Stock Purchase Scheme/Restricted Stock
Units scheme) :

In the event of issue of additional equity shares other than by way of rights share at less than
fair market value, the Optionee shall have the right to acquire shares covered by each outstanding
RSU at the value at which the additional equity is infused, for a quantum, equivalent to the
proportion of the awarded RSUs bears to the total paid up equity capital of the Company before the
infusion of equity.

	d.  	Merger or Asset sale:

In the event of a merger of the Company with or into another company, all the RSUs including those
which are vested but were not exercised, and/or the price per share covered by each such
outstanding shall be proportionately adjusted to give effect to the merger or asset sale provided
however that price per share shall not be reduced below the par value of the share as on the date
of merger. Such adjustment shall include the substitution of options of any other company/
companies and the terms and conditions thereof as may be decided by the Compensation Committee.

	e.  	Demerger :

In the event of demerger of the company into a separate legal entity, the administrator shall in
consultation with the parties to the transaction, decide on the manner in which and the terms and
conditions on which the issue regarding outstanding Restricted Stock Units of the company held by
the Restricted Stock Optionees is to be addressed before consent for such demerger is given by the
shareholders of the company.

	f.  	Dissolution or liquidation of the Company:

In the event of dissolution or liquidation of the Company, the Administrator shall notify each
Optionee as soon as practicable prior to the effective date of such proposed transaction. The
Administrator at its discretion may provide for

 

 

an Optionee to have right to exercise his or her RSU until 15 days prior to such transaction as to
all of the RSU Stock covered thereby, including shares as to which the RSU would not otherwise be
exercisable.

19. Time of granting RSUs

The date of grant of an RSU shall be the date specified in the “Restricted Stock Unit Agreement”.

20. Amendment and Termination of the Plan

	a.  	Amendment and Termination :

The Board may subject to 20(b) below, at any time amend, alter, suspend or terminate the Plan
provided that such variation is not prejudicial to the interest of the RSU holder.

	b.  	Shareholder approval :

The Board shall obtain shareholder approval by way of special resolution in a general meeting of
the Company for any amendment to the Plan to the extent necessary and desirable to comply with
Applicable Laws.

The notice for passing special resolution shall contain the information as set out in Clause 6.2 of
SEBI ESOP Guidelines.

	c.  	Effect of Amendment or Termination:

No amendment, alteration, suspension or termination of the Plan shall impair the rights or be
prejudicial or detrimental to the interests of the Optionee..

21. Conditions Upon Issuance of shares

	a.  	Legal Compliance :

Shares shall not be issued pursuant to the exercise of an RSU unless the exercise of such RSU and
the issuance and delivery of such shares shall comply with Applicable Laws and shall be further
subject to the approval of counsel for the Company with respect to such compliance.

	b.  	Inability to obtain authority:

The inability of the Company to obtain authority from any regulatory body having jurisdiction,
which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale
of any shares hereunder, shall relieve the Company of any liability in respect of the failure to
issue or sell such shares as to which such requisite authority shall not have been obtained.

22. Reservation of Shares

The Company during the term of this Plan, shall at all times reserve and keep available such number
of shares as part of its authorized share capital as shall be sufficient to satisfy the
requirements of the Plan.

23. Shareholder approval

The Plan shall be subject to approval by the shareholders of the Company within twelve (12) months
after the date the Plan is adopted. Such shareholder approval shall be obtained in the degree and
manner required by Applicable Laws.

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