Exhibit
10.3
FORM
OF
SUMMIT FINANCIAL
GROUP, INC.
NON-QUALIFIED STOCK
OPTION GRANT AGREEMENT
FOR
OFFICERS
(Installment
Vesting)
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Grant of
Option . Subject to the
terms and conditions of this Non-Qualified Stock Option Grant
Agreement (“Agreement”) and the South Branch Valley
Bancorp, Inc. 1998 Officer Stock Option Plan (“Plan”),
dated ____________, 200__, which has been adopted by SUMMIT
FINANCIAL GROUP, INC., a West Virginia corporation (Corporation)
(successor by name change to South Branch Valley Bancorp, Inc.) and
which is incorporated herein by reference, an Option to purchase a
total of _____ shares of $2.50 par value common stock of the
Corporation’s Common Stock at a price of ___________________
Dollars and ___ Cents ($______) per share is hereby granted to
_____________________ (Participant) as of the date of this
Agreement as affixed below with its execution (Date of
Grant).
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Installment
Exercise . Subject to any
conflicting limitations in the Agreement, the Option shall become
vested and exercisable in five (5) installments for the following
percentage of the total number of Common Stock shares under the
Option, on or after the following Date of Vesting indicated, in
cumulative fashion:
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Number of
Shares
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Date of
Vesting
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Date of
Termination
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%
Total Number of Common Stock Shares Under
Option
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a.
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b.
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c.
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d.
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e.
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f.
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g.
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h.
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i.
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j.
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Participant agrees
to exercise the Option in increments of not less than fifty (50)
shares.
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The Option and all
rights granted under this Agreement with respect to the Option, to
the extent not previously exercised, shall terminate and become
null and void on and after the _______anniversary of the Date of
Vesting.
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If a
Participant’s continuous employment shall terminate by reason
of his/her retirement from the corporation or its subsidiaries at a
retirement date authorized by the Committee, the retired
Participant shall become one hundred percent (100%) vested in any
installment of the Option not yet one hundred percent (100%) vested
that Participant has been granted under the Plan as of that date.
With respect to any installment of the Option that becomes
exercisable as a result of the acceleration of Vesting under this
section (b), Participant shall exercise such installment within one
year of Participant’s retirement date.
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Notwithstanding any
other provisions of this Agreement or the Plan, if Participant is
convicted of a felony against the Bank, any unvested portion of the
Option shall immediately terminate and be void.
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Exercise of
Option . Subject to
paragraph 3 of this Agreement, Participant may exercise the Option
with respect to all or any part of the number of shares then
exercisable under this Agreement by giving the President &
Treasurer of the Corporation written notice of intent to exercise,
of the number of shares to be purchased, the exercise date, and
making full payment of the Option price, all in accordance with
Section 8 of the Plan.
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Adjustment of and
Changes in Stock of the Corporation . In the event of a
Reorganization, recapitalization, change of shares, stock split,
spin-off, stock dividend, reclassification, subdivision or
combination of shares, merge
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