Common use of Minimum Grants to Officers Clause in Contracts

Minimum Grants to Officers. The grants of Options pursuant to Section 4(b) above shall include the following (in addition to any other Options that may be granted): (i) Each Vice President, Senior Vice President, and Executive Vice President of the Company employed by the Bank Holding Company prior to January 1, 1996 shall receive, on the date that this Plan is adopted by the Board, an Option to purchase the number of shares by which the Applicable Initial Option exceeds the sum of (A) the number of Shares that each such person had the option to buy from the Bank Holding Company immediately prior to the adoption of this Plan by the Board, plus (B) the number of Shares purchased by such Employee from the Bank Holding Company at any time prior to the adoption of the Plan pursuant to the exercise of a stock option (regardless of whether such existing or previous options were granted pursuant to an option plan and regardless of whether such existing options were vested or immediately exercisable). For the purposes of this Plan, the "Applicable Initial Option" shall be the number of Shares obtained by (A) taking the Compensation Percentage Amount of each such person's aggregate (i.e., cumulative) base salary since the date of such person's employment by the Bank Holding Company, and (B) dividing such Compensation Percentage Amount by the fair market value of each Share, as determined by the Board on the date that this Plan is adopted by the Board, and the "Compensation Percentage Amount" is 5% of such cumulative base salary for Vice Presidents, 10% of such cumulative base salary for Senior Vice Presidents, and 20% of such cumulative base salary for Executive Vice Presidents. (ii) Each Vice President, Senior Vice President, and Executive Vice President of the Bank Holding Company shall receive, at such time as the Board shall determine during the first 4 months of each fiscal year of the Company while such person continues to hold such position, an option to purchase the number of Shares equal to their Applicable Additional Option. For the purposes hereof, the "Applicable Additional Option" shall be the number of shares obtained by (A) taking the Compensation Percentage Amount (as defined in clause (i) above) of each such person's annual base salary as of the end of the immediately preceding fiscal year of the Company, and (B) dividing such Compensation Percentage amount by the fair market value of each Share, as determined by the Board on the date that the Options are granted.