EXHIBIT 4.2
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FORMULA OPTION
FIRST OAK BROOK BANCSHARES, INC.
STOCK OPTION AGREEMENT
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TO: (NAME)
(ADDRESS)
DATE: __________
In order to provide additional incentive through stock ownership for
certain directors of First Oak Brook Bancshares, Inc. (the "Company") you are
hereby granted an Option by the Company, effective as of the date hereof (the
"date of grant"), to purchase _______ shares of the Company's Common Stock (the
"Shares") at a price per share of $_______, subject to the terms and conditions
set forth in the First Oak Brook Bancshares, Inc. 2001 Stock Incentive Plan (the
"Plan"), the terms of which are incorporated herein by reference.
All capitalized terms used but not defined herein shall have the
meaning ascribed to such terms in the Plan.
This Option may be exercised on a cumulative basis as to the number of
Shares determined under the following schedule:
MAXIMUM NUMBER OF
YEARS AFTER SHARES AS TO WHICH
DATE OF GRANT OPTION MAY BE EXERCISED
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Less than 1 None
1 but less than 2 ____
2 but less than 3 ____
3 but less than 10 ____
This Option shall become exercisable in full immediately upon your
death or a Change in Control, as provided in the Plan or in this Stock Option
Agreement.
This Option may not be exercised after 10 years from the date of grant,
at which time this Option will lapse. This Option is personal to you and may not
be sold, transferred, pledged, assigned or otherwise alienated, other than as
provided herein. This Option shall be exercisable during your lifetime only by
you.
Notwithstanding the foregoing, you may transfer this Option to:
(a) your spouse, children or grandchildren ("Immediate Family
Members");
(b) a trust or trusts for the exclusive benefit of such Immediate
Family Members, or
(c) a partnership in which such Immediate Family Members are the only
partners,
provided that:
(i) there may be no consideration for any such transfer;
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(ii) subsequent transfers of such transferred Option shall be
prohibited, except to designated beneficiaries; and
(iii) such transfer is evidenced by documents acceptable to the Company
and filed with the Company's Human Resources Department.
Following such transfer, this Option shall continue to be subject to
the same terms and conditions as were applicable immediately prior to transfer,
provided that for purposes of designating a beneficiary with respect thereto,
the transferee shall be entitled to designate the beneficiary. The provisions of
this Stock Option Agreement relating to the period of exercisability and
expiration of this Option shall continue to be applied with respect to you and
your status as an employee, and this Option shall be exercisable by the
transferee only to the extent, and for the periods, set forth in this Stock
Option Agreement. Transfer of Shares purchased by your transferee upon exercise
of this Option may also be subject to the restrictions and limitations described
in this Stock Option Agreement.
You may designate a beneficiary or beneficiaries with respect to this
Option by completing and filing a completed copy of the Beneficiary Designation
Form, attached to this Stock Option Agreement, with the Company's Human
Resources Department.
You may exercise this Option by giving written notice to the Secretary
of the Company accompanied by either:
(a) a check in payment of the Option price ($_______ per share) for the
number of Shares of the Option being exercised; or
(b) tendering a sufficient number of previously-acquired shares of the
Company's Common Stock with a fair market value equal (subject to adjustment for
fractional shares) to the cost of the number of Shares of the Option being
exercised.
The Plan provides that no Option may be exercised unless the Plan is in
full compliance with all laws and regulations applicable thereto.
No amendment, modification or waiver of this Option, in whole or in
part, shall be binding unless consented to in writing by the Company and no
amendment may cause any Option holder to be unfavorably affected with respect to
any Option already granted hereunder.
It is a condition of your right to exercise this Option that you remain
a director of the Company on a continuous basis for a period of at least one
year after the date hereof. Thereafter, this Option shall terminate if: (i) you
cease to be a director of the Company for any reason other than death, each such
option held by you may, to the extent exercisable, be exercised by you (or your
guardian, legal representative or similar person) for a period of three (3)
years after the date of your ceasing to be a director or until the expiration of
the term of such option, whichever period is shorter, or (ii) you cease to be a
director of the Company by reason of death, each such option held by you may,
whether then exercisable or not, thereafter be exercised by your executor,
administrator, legal representative, beneficiary or similar person for a period
of two years after the date of your death or until the expiration of the term of
such option, whichever period is shorter, or (iii) you die during the three (3)
year period following your ceasing to be a director, to the extent then
exercisable, each such option held by you may thereafter be exercised by your
executor, administrator, legal representative, beneficiary or similar person for
a period of one year after the date of death or until the expiration of the term
of such option, whichever period is shorter.
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Exercise of an Option will result in ordinary taxable income to you to
the extent the Fair Market Value of the Shares exceeds the exercise price. The
date on which the Fair Market Value of the Shares is determined for this purpose
is generally the date of exercise. You should consult your tax advisor regarding
tax treatment prior to exercising an Option. No Shares shall be issued upon
exercise unless and until all income tax withholding obligations with respect to
the Option exercise have been satisfied.
Under applicable securities laws, you may not be able to sell any
Shares for a period of time after your purchase. The Company's counsel should be
consulted on your ability to sell your Shares under the 1934 Act. Any gain or
loss upon sale will be treated as long-term or short-term capital gain or loss
depending upon then existing tax laws. The basis of the stock for determining
gain or loss at the time of sale will be the fair market value used to determine
your ordinary taxable income at the time of exercise.
Please sign the copy of this Stock Option Agreement and return it to
the Company in care of its Secretary, thereby indicating your understanding of
and agreement with its terms and conditions. Unless signed and returned by mail
or otherwise to the Secretary within thirty (30) days from the date of mailing
or delivery to you of this Agreement, this Option will be deemed refused and
withdrawn. By signing this Agreement, you acknowledge receipt of a copy of the
Plan. The terms of the Plan shall have precedence over any terms in this
Agreement that are inconsistent therewith.
FIRST OAK BROOK BANCSHARES, INC.
Date:_______________________ By:_________________________________________
Its:________________________________________
I hereby acknowledge receipt of a copy of the First Oak Brook
Bancshares, Inc. 2001 Stock Incentive Plan, and, having read it, I hereby
signify my understanding of, and my agreement with, its terms and conditions
and, further, signify my agreement with the terms and conditions of this Stock
Option Agreement.
Date:_______________________ ____________________________________________
Optionee
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BENEFICIARY DESIGNATION FORM
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Re: Options Granted __________________ ____, 200_
You may designate a primary beneficiary and a secondary beneficiary to
whom rights under your Option will pass in the event of your death. You may name
more than one person as a primary or secondary beneficiary. For example, you may
wish to name your spouse as primary beneficiary and your children as secondary
beneficiaries. Your secondary beneficiary(ies) will have no rights with respect
to your Option if any of your primary beneficiaries survive you. All primary
beneficiaries will have equal rights with respect to your Option unless you
indicate otherwise. The same rule applies for secondary beneficiaries.
Designate Your Beneficiary(ies):
Primary Beneficiary(ies) (give name, address and relationship to you):
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Secondary Beneficiary(ies) (give name, address and relationship to
you):---------------------------------------------------------------------------
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I certify that my designation of beneficiary set forth above is my free
act and deed and acknowledge that when effective it will revoke any prior
designation I may have made with regard to the Option set forth above.
______________________________ ___________________________________
Name (Please Print) Signature
___________________________________
Date
This Beneficiary Designation Form shall be effective on the day it is
received at the offices of First Oak Brook Bancshares, Inc., 0000 Xxxxxxxxx
Xxxxxx, Xxx Xxxxx, Xxxxxxxx 00000.
RECEIVED AND ACKNOWLEDGED:
FIRST OAK BROOK BANCSHARES, INC.
Date:__________________________ By:________________________________
Its:_______________________________
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