Tennessee Stock Option Agreement between Northern Bank of Commerce and Cowlitz Bancorporation

• Category: Corporations - Public - Stock Options
• State: Multi-State
• Control #: US-EG-9341
• Format: Word; Rich Text

Description

Stock Option Agreement between Northern Bank of Commerce and Cowlitz Bancorporation dated September 14, 1999. 26 pages. Title: Tennessee Stock Option Agreement between Northern Bank of Commerce and Cowling Ban corporation: Explained Introduction: The Tennessee Stock Option Agreement is a legally binding document that outlines the terms and conditions under which Northern Bank of Commerce and Cowling Ban corporation enter into a stock option agreement. This agreement allows certain individuals to purchase or sell shares of the company's stock at a specified price and within a specific timeframe. This article provides a detailed description of this agreement, highlighting its significance and potential variations. Key Aspects of the Tennessee Stock Option Agreement: 1. Parties Involved: The Tennessee Stock Option Agreement involves two entities: Northern Bank of Commerce, the granting company, and Cowling Ban corporation, the option-holder. 2. Granting of Stock Options: This agreement enables Cowling Ban corporation to grant stock options to eligible employees or individuals associated with Northern Bank of Commerce. Stock options provide the opportunity to purchase company shares at a pre-determined price, also known as the exercise price, within a specific period. 3. Exercise Period: The agreement specifies a precise timeframe during which the option-holder may exercise their stock options. This period typically extends beyond the date of grant, allowing sufficient time for the option-holder to evaluate market conditions and make informed decisions. 4. Vesting Schedule: Stock options may be subject to a vesting period, where the option-holder must remain associated with Northern Bank of Commerce for a specified duration to fully exercise their options. Vesting terms can range from immediate vesting to gradual vesting over a period of several years. This encourages employee retention and rewards long-term commitment. 5. Exercise Price: The exercise price is the predetermined cost at which the option-holder may purchase company shares. The Tennessee Stock Option Agreement defines this price, which can be determined using various methods such as market value at the time of grant or a fixed pricing formula. 6. Types of Stock Options: The Tennessee Stock Option Agreement between Northern Bank of Commerce and Cowling Ban corporation may include various types of stock options, such as: a. Non-Qualified Stock Options: These options provide flexibility in terms of grant recipients and exercise terms but may have tax implications. b. Incentive Stock Options: These options are usually granted to employees and offer tax advantages. However, they must meet specific requirements outlined in the Internal Revenue Code. 7. Duration and Expiration of Options: The agreement sets a specific period during which the options remain valid. If the option-holder does not exercise their options within this timeframe, the options may expire. 8. Transferability: The Tennessee Stock Option Agreement may dictate whether the stock options are transferable or assignable to others, subject to certain restrictions. Conclusion: In summary, the Tennessee Stock Option Agreement between Northern Bank of Commerce and Cowling Ban corporation provides a framework for granting stock options to eligible individuals associated with the bank. It outlines essential terms such as exercise period, vesting schedule, exercise price, and types of stock options. Understanding the specifics of this agreement is crucial for both parties involved, ensuring clarity and adherence to the agreed-upon terms.

Title: Tennessee Stock Option Agreement between Northern Bank of Commerce and Cowling Ban corporation: Explained Introduction: The Tennessee Stock Option Agreement is a legally binding document that outlines the terms and conditions under which Northern Bank of Commerce and Cowling Ban corporation enter into a stock option agreement. This agreement allows certain individuals to purchase or sell shares of the company's stock at a specified price and within a specific timeframe. This article provides a detailed description of this agreement, highlighting its significance and potential variations. Key Aspects of the Tennessee Stock Option Agreement: 1. Parties Involved: The Tennessee Stock Option Agreement involves two entities: Northern Bank of Commerce, the granting company, and Cowling Ban corporation, the option-holder. 2. Granting of Stock Options: This agreement enables Cowling Ban corporation to grant stock options to eligible employees or individuals associated with Northern Bank of Commerce. Stock options provide the opportunity to purchase company shares at a pre-determined price, also known as the exercise price, within a specific period. 3. Exercise Period: The agreement specifies a precise timeframe during which the option-holder may exercise their stock options. This period typically extends beyond the date of grant, allowing sufficient time for the option-holder to evaluate market conditions and make informed decisions. 4. Vesting Schedule: Stock options may be subject to a vesting period, where the option-holder must remain associated with Northern Bank of Commerce for a specified duration to fully exercise their options. Vesting terms can range from immediate vesting to gradual vesting over a period of several years. This encourages employee retention and rewards long-term commitment. 5. Exercise Price: The exercise price is the predetermined cost at which the option-holder may purchase company shares. The Tennessee Stock Option Agreement defines this price, which can be determined using various methods such as market value at the time of grant or a fixed pricing formula. 6. Types of Stock Options: The Tennessee Stock Option Agreement between Northern Bank of Commerce and Cowling Ban corporation may include various types of stock options, such as: a. Non-Qualified Stock Options: These options provide flexibility in terms of grant recipients and exercise terms but may have tax implications. b. Incentive Stock Options: These options are usually granted to employees and offer tax advantages. However, they must meet specific requirements outlined in the Internal Revenue Code. 7. Duration and Expiration of Options: The agreement sets a specific period during which the options remain valid. If the option-holder does not exercise their options within this timeframe, the options may expire. 8. Transferability: The Tennessee Stock Option Agreement may dictate whether the stock options are transferable or assignable to others, subject to certain restrictions. Conclusion: In summary, the Tennessee Stock Option Agreement between Northern Bank of Commerce and Cowling Ban corporation provides a framework for granting stock options to eligible individuals associated with the bank. It outlines essential terms such as exercise period, vesting schedule, exercise price, and types of stock options. Understanding the specifics of this agreement is crucial for both parties involved, ensuring clarity and adherence to the agreed-upon terms.