Re: Stock Option Agreement
[DATE]
[Name and Address of Optionee]
Dear [Name]:
Pursuant to the Heartland Bancshares, Inc. 2003 Stock Option Plan for Nonemployee Directors, Heartland Bancshares, Inc. (the “Corporation”) hereby notifies you that you have been granted, as of the date of this letter, an option (the “Option”), which Option shall have the following terms and conditions, in addition to those provided in the Plan:
| 1. |
Number of Shares: _____ shares, subject to adjustment as provided in
the Plan. |
| 2. |
Exercise Price: $_____ per share, subject to adjustment as provided in the Plan. |
| 3. |
Expiration Date: The Option, to the extent unexercised, shall expire
at 5:00 p.m., Eastern Standard Time, on [day preceding tenth anniversary of date
of grant]. |
| 4. |
Exercisability. Each Option is deemed to be fully earned as to all
____ shares in recognition of prior service to the Board of Directors by each
Optionee and shall be immediately exercisable in full. |
| 5. |
The Corporation agrees to use its best efforts, upon your demand and at its
expense, to cause the offer and sale to you of shares pursuant to any exercise
of the Option to be registered with the Securities and Exchange Commission under
the Securities Act of 1933, as amended, and with the state securities
administrators under any applicable state securities law, as soon as
practicable, and for a continuous basis for so long as the Option is
exercisable. |
A copy of the Plan is enclosed with this letter. Exercise of the Option shall be subject to your making the representations set forth below and any representations to such other matters as the Committee, in its discretion, may determine to be necessary or advisable to evidence compliance with requirements under the Securities Act of 1933, as amended, or state securities laws for registering or exempting from registration any offer of sale of the Corporation’s securities pursuant to the Plan.
This letter, upon your delivery of an executed copy to the Corporation, shall constitute a binding stock option agreement between you and the Corporation.
Very truly yours,
HEARTLAND BANCSHARES, INC.
By:
ACKNOWLEDGMENT AND AGREEMENT
I hereby acknowledge receipt of this letter granting me the above Option as well as receipt of a copy of the Plan, and I acknowledge and agree to be bound by the following:
| 1) |
I have received a copy of the Plan and agree to be bound by the terms and
conditions set forth therein. |
| 2) |
Without waiving my rights to demand that the Corporation effect a continuous
registration of the offer and sale of the Common Shares issuable to me under
this Option, in which event my agreements in this Section 2 will become
inapplicable, I agree that, if and for so long as there is no effective
registration statement covering the offer and sale of the Common Shares subject
to the Option to me, |
| a) |
the Common Shares will be offered pursuant to the “private offering”
exemption provided by Section 4(2) of the Securities Act of 1933, as amended
(the “1933 Act”), and in that connection, I agree that (if at time of
exercise there is for any reason no effective registration statement in effect
under the 1933 Act) I will acquire Common Shares pursuant to this Option for
investment purposes for my own account without any view to redistribute them to
others; |
| b) |
I will not sell, pledge, hypothecate, or otherwise transfer Common Shares
acquired pursuant to the Option without registration or exemption under the 1933
Act; |
| c) |
I acknowledge that the Common Shares will not be transferable except upon
delivery to the Corporation of an opinion of counsel or such other evidence as
may be satisfactory to the Corporation that such transfer is exempt from
registration under the 1933 Act, as amended, applicable state securities laws,
or any rule or regulation promulgated thereunder; and
|
| d) |
I agree that the certificates evidencing the Common Shares, including both
originally and subsequently issued certificates, will bear a restrictive legend
substantially as follows: |
The Common Shares represented by this certificate have not been registered under
the Securities Act of 1933, as amended, or the securities laws of any state and
have been acquired in a private offering. Sales, pledges, hypothecations, and
other transfers of the Common Shares may be made only in private transactions to
suitable persons and may be made only upon delivery to the Corporation of an
opinion of counsel or other evidence satisfactory to the Corporation that such
transfer is exempt from registration under the Securities Act of 1933, as
amended, applicable state securities laws, or any rule or regulation promulgated
thereunder. |
EXECUTED as of the date of grant of the Option.
[Name]
Stock option agreement.directors