As filed with the Securities and Exchange Commission on March 9, 1999
Registration No. 333-
________________________________________________________________________
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________
FORM S-8
REGISTRATION STATEMENT
Under
THE SECURITIES ACT OF 1933
_______________
COMMUNITY TRUST BANCORP, INC.
(Exact name of registrant as specified in its charter)
Kentucky 61-0979818
(State of Incorporation) (I.R.S. Employer Identification No.)
208 N. Mayo Trail
Pikeville, Kentucky
(Address of Principal Executive Offices)
_______________
COMMUNITY TRUST BANCORP, INC.
1998 STOCK OPTION PLAN
(Full Title of Plan)
_______________
Burlin Coleman Copy to:
Chairman, President and
Chief Executive Officer Ivan M. Diamond
Community Trust Bancorp, Inc. Greenebaum Doll & McDonald, PLLC
208 N. Mayo Trail 3300 National City Tower
Pikeville, Kentucky 41501 Louisville, Kentucky 40202
(606) 432-1414 (502) 587-3534
(Name, address and telephone number of agent for service)
_______________
CALCULATION OF REGISTRATION FEE
Title of Amount Proposed Proposed Maximum Amount of
Securities to to be Maximum Offering Aggregate Registration
Be Registered Registered Price per Share Offering Price (1) Fee
Common Stock, 700,000 $23.25 $16,275,000.00 $4,525.00
par value, $5.00 shares
(1) Estimated solely for the purpose of calculating the registration fee. This
fee has been calculated in accordance with Rule 457 under the Securities Act of
1993 and is based on the average of the high and low prices per share as
reported on the National Association of Securities Dealers - National Market
System on March 5, 1999.
_______________________________________________________________________________
<PAGE>
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item 3. Incorporation of Documents by Reference.
The following documents filed by Community Trust Bancorp, Inc. ("Registrant")
with the Securities and Exchange Commission (Comm. File No. 011129) are
incorporated by reference into this Registration Statement:
(a) The Company's Annual Report on Form 10-K for the year ended December 31,
1997;
(b) The Company's Quarterly Reports on Form 10-Q for the quarters ended March
31, 1998, June 30, 1998 and September 30, 1998, respectively;
(c) The Company's Current Reports on Form 8-K filed with the Commission on
January 7, 1998, January 16, 1998, January 27, 1998 and June 2, 1998,
respectively; and
(d) The description of the Company's Common Stock as contained in the
Registration Statement on Form 10, filed by the Company on April 29, 1983 to
register the Common Stock under the Securities Exchange Act of 1934, as
amended (the "Exchange Act") and all amendments or reports filed for the
purpose of updating such description prior to the termination of the offering
of Common Stock hereby.
All documents subsequently filed by Registrant pursuant to Sections 13(a),
13(c), 14 and 15(d) of the Exchange Act, prior to the filing of a post-effective
amendment which indicates that all securities offered hereby have been sold or
which deregisters all securities then remaining unsold, shall be deemed to be
incorporated by reference in this Registration Statement and to be a part hereof
from the date of filing of such documents. Any statement contained in a
document incorporated by reference herein shall be deemed to be modified or
superseded for purposes of this Registration Statement to the extent that a
statement contained herein (or in any other subsequently filed document which
also is incorporated by reference herein) modifies or supersedes such statement.
Any statement so modified or superseded shall not be deemed to constitute a part
hereof except as so modified or superseded.
Item 4. Description of Securities.
Not applicable.
Item 5. Interests of Named Experts and Counsel.
Not applicable.
<PAGE>
Item 6. Indemnification of Directors and Officers.
Article VI of the Company's Articles of Incorporation, as amended, provides that
any person who was or is a party or threatened party to any threatened, pending
or completed action, suit or proceeding, whether civil, criminal, administrative
or investigative, by reason of the fact that he is or was a director or officer
of the Company: (a) shall be indemnified (and may be indemnified if made a party
to such proceeding by reason of the fact that he is or was serving as a Company
employee or agent, or is or was serving at the request of the Company as a
director, officer, employee or agent or another corporation, partnership, joint
venture, trust or other enterprise) by the Company against expenses (including
attorney's fees), judgments, fines and amounts paid in settlement actually and
reasonably incurred by him in connection with such action, suit or proceeding
(other than a derivative suit), even if he is not successful on the merits, if
he acted in good faith and in a manner he reasonably believed to be in or not
opposed to the best interests of the Company (and, with respect to any criminal
action or proceeding, had no reasonable cause to believe his conduct was
unlawful); (b) shall be indemnified (and may be indemnified if made a party to
such proceeding by reason of the fact that he is or was serving as a Company
employee or agent, or is or was serving at the request of the Company as a
director, officer, employee or agent of another enterprise) for expenses of a
derivative suit (a suit by a shareholder alleging a breach by a director or
officer of a duty owed to the Company), even if he is not successful on the
merits, if he acted in good faith and in a manner he reasonably believed to be
in or not opposed to the best interests of the Company provided that no such
indemnification may be made in accordance with this clause (b) if he is
adjudged liable to the Company, unless a court determines that, despite such
adjudication, but in view of all the circumstances, he is entitled to
indemnification; and (c) shall be indemnified by the Company for all expenses
of such litigation when he is successful on the merits. The indemnification
described in clauses (a) and (b) above shall be made only upon a determination,
by (i) a majority vote of the disinterested directors, or (ii) the stockholders,
that indemnification is proper because the applicable standard of conduct has
been met. The Board of Directors or the stockholders may authorize the
advancement of litigation expenses to a director or officer upon receipt of an
undertaking by such director or officer to repay such expenses if it is
ultimately determined that he is not entitled to be indemnified for them.
The indemnification and the advancement of expenses provided for by Article VI
are not deemed exclusive of any rights the indemnitee may have under any by-law,
agreement, vote of stockholders or disinterested directors, or otherwise.
Article X of the Company's Articles of Incorporation, as amended, provides that
a director of the Company shall not be personally liable to the Company or its
shareholders for monetary damages for breach of his duties as a director,
provided that this provision will not eliminate or limit the liability of a
director for the following: (a) for any transaction in which the director's
personal financial interest is in conflict with the financial interests of the
Company or its shareholders; (b) for acts or omissions not in good faith or
which involve intentional misconduct or are known to the director to be a
violation of law; (c) for any vote for or assent to an unlawful distribution
to shareholders as prohibited under Section 271B.8-330 of the Kentucky Revised
Statutes; or (d) for any transaction from which the director derived an improper
personal benefit. Article X is applicable with respect to any such breach
<PAGE>
of duties by a director of the Company as a director notwithstanding that such
director thereafter ceases to be a director. Article X inures to the personal
benefit of such director's heirs, executors and administrators.
Item 7. Exemption from Registration Claimed.
Not applicable.
Item 8. Exhibits.
The following exhibits are filed as part of this Registration Statement:
4.1 Articles of Incorporation of the Company. Exhibit 4.1 to Registration
Statement No. 33-35138 is incorporated herein by reference.
4.2 By-laws of the Company. Exhibit 4.2 to Registration Statement No. 33-35138
is incorporated herein by reference.
5 Opinion and consent of Greenebaum Doll & McDonald PLLC.
23.1 Consent of Greenebaum Doll & McDonald PLLC (Included in Exhibit 5).
23.2 Consent of Ernst & Young, LLP.
25 Powers of Attorney (Included on signature page of this Registration
Statement).
99 1998 Stock Option Plan
Item 9. Undertakings.
(a) The undersigned Registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a post-
effective amendment to this Registration Statement:
(i) To include any prospectus required by Section 10(a)(3) of the Securities
Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after the
effective date of the Registration Statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a
fundamental change in the information set forth in the Registration Statement;
and
<PAGE>
(iii) To include any material information with respect to the plan of
distribution not previously disclosed in the Registration Statement or any
material change to such information in the Registration Statement;
Provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii) of this Item 9 do
not apply if the Registration Statement is on Form S-3 or Form S-8 and the
information required to be included in the post-effective amendment by those
paragraphs is contained in periodic reports filed by the Registrant pursuant to
Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 that are
incorporated by reference in the Registration Statement.
(2) That, for the purpose of determining any liability under the Securities Act
of 1933, each such post-effective amendment shall be deemed to be a new
registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial
bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any of
the securities being registered which remain unsold at the termination of the
offering.
(b) The undersigned Registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, each filing of
Registrant's annual report pursuant to Section 13(a) or 15(d) of the Securities
Exchange Act of 1934 (and, where applicable, each filing of an employee benefit
plan's annual report pursuant to Section 15(d) of the Securities Exchange Act of
1934) that is incorporated by reference in the Registration Statement shall be
deemed to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed to be
the initial bona fide offering thereof.
Insofar as indemnification for liabilities arising under the Securities Act of
1933 may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, Registrant has
been advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by Registrant of expenses incurred or
paid by a director, officer or controlling person of Registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, Registrant will, unless in the opinion of its counsel the matter has
been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, Registrant certifies
that it has reasonable grounds to believe that it meets the requirements for
filing on Form S-8 and has duly caused this Registration Statement to be signed
on its behalf by the undersigned, thereunto duly authorized, in the City of
Pikeville, Commonwealth of Kentucky, on March 9, 1999.
COMMUNITY TRUST BANCORP, INC.
By: /s/: BURLIN COLEMAN
Burlin Coleman
Chairman of the Board, President and
Chief Executive Officer
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears
below constitutes and appoints Burlin Coleman and Jean R. Hale, each with full
power to act without the other, his or her true and lawful attorney-in-fact
and agent, with full power of substitution and resubstitution, for him or her
and in his or her name, place and stead, in any and all capacities, to sign any
and all amendments or post-effective amendments to this Registration Statement,
and to file the same with all exhibits thereto, and other documents in
connection therewith, with the Securities and Exchange Commission, granting unto
said attorneys-in-fact and agents, and each of them, full power and authority
to do and perform each and every act and thing requisite or necessary to be done
in and about the premises, as fully to all intents and purposes as he or she
might or could do in person, hereby ratifying and confirming all that each such
attorney-in-fact and agent, or his or her substitute, may lawfully do or cause
to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed by the following persons in the capacities and on the
dates indicated.
Signature Title Date
/s/: BURLIN COLEMAN Chairman of the Board, President
Burlin Coleman and Chief Executive Officer March 9, 1999
/s/: JEAN R. HALE Executive Vice President,
Jean R. Hale Secretary and Director March 9, 1999
<PAGE>
/s/: CHARLES J. BAIRD Director March 9, 1999
Charles J. Baird
Nick A. Cooley Director
William A. Graham, Jr. Director
/s/: M. LYNN PARRISH Director March 9, 1999
M. Lynn Parrish
/s/: ERNEST M. ROGERS Director March 9, 1999
Ernest M. Rogers
Steve Lawson Director
/s/: KEVIN STUMBO Senior Vice President and Controller
Kevin Stumbo (Chief Accounting Officer) March 9, 1999
<PAGE>
GREENEBAUM DOLL & MCDONALD PLLC Exhibit 5
3300 NATIONAL CITY TOWER
101 SOUTH FIFTH STREET
LOUISVILLE, KENTUCKY 40202-3197
502/589-4200
FAX 502/587-3695
EDWIN H. PERRY
THOMAS A. BROWN
MICHAEL G. SHAIKUN*
MARTIN S. WEINBERG*
IVAN M. DIAMOND
MICHAEL M. FLEISHMAN*
LAWRENCE K. BANKS
PHILLIP D. SCOTT
WM. T. ROBINSON III
EDWARD B. WEINBERG*
CHARLES FASSLER
JOHN A. WEST
MICHAEL L. ADES
W. PLUMER WISEMAN, JR.
ERIC L. ISON
JOHN H. STITES, III
JOHN R. CUMMINS
P. RICHARD ANDERSON, JR.
LLOYD R. CRESS
JAMES L. BECKNER
CHARLES J. LAVELLE
MARK S. AMENT
JAMES A. KEGLEY
MARCUS P. MCGRAW
JOB D. TURNER, III
HIRAM ELY, III
JOHN V. WHARTON
PEGGY B. LYNDRUP
JUNE N. KING
V. THOMAS FRYMAN, JR.
BRUCE E. CRYDER
JOHN W. AMES
HARRY D. RANKIN
BARBARA R. HARTUNG
RICHARD S. CLEARY
DANNY C. REEVES
DAVID B. SANDLER
H. DOUGLAS JONES
CAROLYN M. BROWN
CARMIN D. GRANDINETTI
JANET P. JAKUBOWICZ
MARGARET E. KEANE
TANDY C. PATRICK
HENRY C.T. RICHMOND, III
CARL W. BREEDING
HOLLAND N. MCTYEIRE, V
MARY G. EAVES
WILLIAM L. MONTAGUE
MARK S. RIDDLE
PHILIP C. ESCHELS
JEFFREY A. SAVARISE
STEPHEN W. SWITZER
JEFFREY A. MCKENZIE
MARK T. HAYDEN
PATRICK J. WELSH
JOHN C. BENDER
MICHAEL H. BROWN
GLENN A. PRICE, JR.
BRADLEY E. DILLON
DANIEL E. FISHER
DAVID A. OWEN
MARK F. SOMMER
ROBERT D. HUDSON
MICHAEL HAWTHORNE
PATRICK R. NORTHAM
J. MARK GRUNDY
JERROLD R. PERCHIK
VICKIE YATES BROWN
THOMAS J. BIRCHFIELD
MARK H. OPPENHEIMER
DANIEL P. CHERRY
PAUL E. PORTER
JOHN S. LUEKEN
JOHN K. BUSH
LLOYD R. CRESS, JR.
KENNETH J. DIETZ
CRAIG P. SIEGENTHALER
KATHERINE A. HESSENBRUCH
BRENT R. BAUGHMAN
JULIE K. HACKWORTH
EDWARD A. RECESKI
J. FOLLACE FIELDS, II
LAUREL S. BANKS
ROGER G. WRIGHT
THOMAS E. POWELL
CAROLYN J. WHEATLEY
LUANN DEVINE
D. BRYAN WICKENS
DAVID A. FRENCH
MICHELLE M. CICCARELLI
BRADLEY H. PRUITT
ERIN N. O'DANIEL
G. NEIL BINEGAR, JR.
MELISSA S. NORMAN
TOMOYUKI OTSUKI
DAVID E. HELLER
MARY E. RAY
LAURA M. FERGUSON
EMILY C. MOORE
LAURA A. HINEGARDNER
LYNDA C. BANNISTER
CHRISTOPHER J. RUSEK
ANN TONI KEREIAKES
JEFFRIES M. HAMILTON
DAVID C. DILLENDER
BILL J. PALIOBEIS
ERIC A. BRAUN
JAMES J. G. DIMAS
ANDREW M. FLEISCHMAN
BRIAN M. JOHNSON
STEPHEN A. SIMON
CHRISTIE A. MOORE
DAVID J. HERZIG
SEAN P. GALLAGHER
LATONIA D. WRIGHT
JOHNA H. CASEY
WILLIAM G. FOWLER, II
TREY GRAYSON
DAVID E. JOHNSON
MARK S. PAXTON
ALISON J. BREHM
ELISABETH S. GRAY
W. ASHLEY HESS
ANDREW J. MURRAY
JAMES R. SCHRAND, II
OF COUNSEL
A. ROBERT DOLL
R. VAN YOUNG
ROBERT F. MATTHEWS
GLEN M. KREBS
ANNE A. CHESNUT
MARGARET A. MILLER
WILLIAM C. BALLARD, JR.
HENRY L. STEPHENS, JR.
LOUIS P. MEINERS
WINIFRED L. BRYANT
KIMBERLY J. HAWTHORNE
PAUL B. WHITTY
NICHOLAS W. FERRIGNO, JR.
ROBERT L. BROWN
H. BUCKLEY COLE
MARTIN J. CUNNINGHAM, III
D. CRAIG DANCE
* PROFESSIONAL SERVICE CORPORATION
March 8, 1999
Community Trust Bancorp, Inc.
208 North Mayo
Pikeville, Kentucky 41501
Ladies and Gentlemen:
We have acted as legal counsel in connection with the preparation of a
Registration Statement on Form S-8 under the Securities Act of 1933, as amended
(the "Registration Statement"), covering an aggregate of 700,000 shares of
Common Stock, par value $5.00 per share (the "Common Stock"), of Community Trust
Bancorp, Inc., a Kentucky corporation (the "Company"), to be issued under the
1998 Stock Option Plan (the "Plan").
We have examined and are familiar with the Articles of Incorporation and By-Laws
of the Company, and the various corporate records and proceedings relating to
the organization of the Company and proposed issuance of the Common Stock. We
have also examined such other documents and proceedings as we have considered
necessary for the purpose of this opinion.
Based on the foregoing, it is our opinion that the Common Stock has been duly
authorized and, when issued and paid for in accordance with the terms of the
Registration Statement and the Plan, will be validly issued, fully paid and
non-assessable.
We hereby consent to the filing of this Opinion as an exhibit to the
Registration Statement, and with such state securities administrators as may
require such opinion of counsel for the registration of the Common Stock. In
giving this consent, we do not thereby admit that we are within the category
of persons whose consent is required under Section 7 of the Securities Act of
1933, as amended, or the Rules and Regulations of the Securities and Exchange
Commission thereunder.
Very truly yours,
/s/ Greenebaum Doll & McDonald PLLC
Greenebaum Doll & McDonald PLLC
<PAGE>
Exhibit 23.2
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement on
Form S-8 pertaining to the Community Trust Bancorp, Inc. 1998 Stock Option Plan
of our report dated January 15, 1998, with respect to the consolidated financial
statements of Community Trust Bancorp, Inc. included in the Annual Report (Form
10-K) for the year ended December 31, 1997 filed with the Securities and
Exchange Commission.
/s/: Ernst & Young LLP
Ernst & Young LLP
Columbus, Ohio
March 8, 1999
<PAGE>
COMMUNITY TRUST BANCORP, INC. Exhibit 99
1998 STOCK OPTION PLAN
ARTICLE 1. PURPOSE
The purpose of this 1998 Stock Option Plan ("Plan") is to advance the interest
of Community Trust Bancorp, Inc., a Kentucky corporation ("Company"), and its
stockholders by encouraging employees who will largely be responsible for the
long-term success and development of the Company. The Plan is also intended
to provide flexibility to the Company in attracting, retaining and motivating
employees and promoting their efforts on behalf of the Company.
ARTICLE 2. DEFINITIONS AND CONSTRUCTION
2.1 Definitions. As used in the Plan, terms defined parenthetically
immediately after their use shall have the respective meanings provided by
such definitions, and the terms set forth below shall have the following
meanings (in either case, such terms shall apply equally to both the singular
and plural forms of the terms defined):
(a) "Board" shall mean the Board of Directors of the Company.
(b) "Cause" shall mean, unless otherwise defined in an agreement evidencing
an Award, a felony conviction of a Participant or the failure of a Participant
to contest prosecution for a felony, or a Participant's willful misconduct or
dishonesty, any of which is determined by the Committee to be directly and
materially harmful to the business or reputation of the Company or its
Subsidiaries.
(c) A "Change in Control" shall mean any of the following events:
(1) An acquisition (other than directly from the Company) of any voting
securities of the Company ("Voting Securities") by any Person immediately after
which such Person has beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) ("Beneficial Ownership and/or Beneficially
Owned") of 20% or more of the combined voting power of the Company's then
outstanding Voting Securities; provided, however, that in determining whether
a Change in Control has occurred, Voting Securities which are acquired in a
Non-Control Acquisition (as hereinafter defined) shall not constitute an
acquisition which would cause a Change in Control. A Non-Control Acquisition
shall mean an acquisition by (i) the Company or any Subsidiary, (ii) an employee
benefit plan (or a trust forming a part thereof) maintained by the Company or
any Subsidiary, or (iii) any Person in connection with a Non-Control Transaction
(as hereinafter defined);
(2) The individuals who, as of December 31, 1997, are members of the
Board ("Incumbent Board") cease for any reason to constitute at least a majority
of the Board; provided, however, that if the election, or nomination for
election by the Company's stockholders, of any new director was approved by a
vote of at least a majority of the Incumbent Board, such new director shall,
for purposes of the Plan, be considered as a member of the Incumbent Board;
<PAGE>
provided, further, however, that no individual shall be considered a member of
the Incumbent Board if such individual initially assumed office as a
result of either an actual or threatened election contest (as described in
Rule 14a-11 promulgated under the Exchange Act) ("Election Contest") or other
actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board ("Proxy Contest") including by reason of any
agreement intended to avoid or settle any Election Contest or Proxy Contest;
or
(3) Approval by stockholders of the Company of:
(A) A merger, consolidation or reorganization involving the
Company, unless such is a Non-Control Transaction. For purposes of the Plan, the
term "Non-Control Transaction" shall mean a merger, consolidation or
reorganization of the Company in which:
(i) the stockholders of the Company, immediately before such merger,
consolidation or reorganization, own, directly or indirectly immediately
following such merger, consolidation or reorganization, at least a majority of
the combined voting power of the voting securities of the corporation resulting
from such merger or consolidation or reorganization ("Surviving Corporation")
over which any Person has Beneficial Ownership in substantially the same
proportion as their ownership of the Voting Securities immediately before such
merger, consolidation or reorganization;
(ii) the individuals who were members of the Incumbent Board immediately prior
to the execution of the agreement providing for such merger, consolidation or
reorganization constitute at least a majority of the members of the board of
directors of the Surviving Corporation; and
(iii) no Person (other than the Company, any Subsidiary, any employee benefit
plan (or any trust forming a part thereof) maintained by the Company, the
Surviving Corporation, or any Person who, immediately prior to such merger,
consolidation or reorganization had Beneficial Ownership of 20% or more of the
then outstanding Voting Securities) has Beneficial Ownership of 20% or more of
the combined voting power of the Surviving Corporation's then outstanding voting
securities;
(B) A complete liquidation or dissolution of the Company; or
(C) An agreement for the sale or other disposition of all or substantially all
of the assets of the Company to any Person (other than a transfer to a
Subsidiary).
(4) Any other event that the Committee shall determine constitutes an
effective Change in Control of the Company.
Notwithstanding the foregoing, a Change in Control shall not be deemed to occur
solely because any Person ("Subject Person") acquired Beneficial Ownership of
<PAGE>
more than the permitted amount of the outstanding Voting Securities as a result
of the acquisition of Voting Securities by the Company which, by reducing the
number of Voting Securities outstanding, increases the proportional number of
shares Beneficially Owned by the Subject Person; provided, however, that if a
Change in Control would occur (but for the operation of this sentence) as a
result of the acquisition of Voting Securities by the Company, and after such
share acquisition by the Company, the Subject Person becomes the Beneficial
Owner of any additional Voting Securities which increases the percentage of the
then outstanding Voting Securities Beneficially Owned by the Subject Person,
then a Change in Control shall occur.
(d) "Code" shall mean the Internal Revenue Code of 1986, as amended from
time to time, or any successor thereto.
(e) "Committee" shall mean the committee described in Section 3.1.
(f) "Disability" shall mean the total disability as determined by the Committee
in accordance with standards and procedures similar to those under the Company's
long-term disability plan, or, if none, a physical or mental infirmity which the
Committee determines impairs the Participant's ability to perform substantially
his or her duties for a period of 180 consecutive days.
(g) "Employee" shall mean an individual who is a full-time employee of the
Company, a Subsidiary or a partnership or limited liability company in which the
Company or its Subsidiaries own a majority interest.
(h) "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended from time to time.
(i) "Fair Market Value" of the Shares shall mean, as of any applicable date,
the closing sale price of the Shares on the Nasdaq National Market System or any
national or regional stock exchange on which the Shares are traded, or if no
such reported sale of the Shares shall have occurred on such date, on the next
preceding date on which there was such a reported sale. If there shall be any
material alteration in the present system of reporting sale prices of the
Shares, or if the Shares shall no longer be listed on the Nasdaq National Market
System or a national or regional stock exchange, the fair market value of the
Shares as of a particular date shall be determined by such method as shall be
determined by the Committee.
(j) "ISOs" shall have the meaning given such term in Section 6.1.
(k) "NQSOs" shall have the meaning given such term in Section 6.1.
(l) "Option" shall mean an option to purchase Shares granted pursuant to
Article 6.
<PAGE>
(m) "Option Agreement" shall mean an agreement evidencing the grant of an
Option as described in Section 6.2.
(n) "Option Exercise Price" shall mean the purchase price per Share subject to
an Option, which shall not be less than the Fair Market Value of the Share on
the date of grant (110% of Fair Market Value in the case of an ISO granted to a
Ten Percent Shareholder).
(o) "Participant" shall mean any Employee selected by the Committee to
receive an Award under the Plan.
(p) "Person" shall have the meaning ascribed to such term in Section 3(a)(9) of
the Exchange Act and as used in Sections 13(d) and 14(d) thereof, including a
"group" as defined in Section 13(d).
(q) "Plan" shall mean this Community Trust Bancorp, Inc. 1998 Stock Option
Plan as the same may be amended from time to time.
(r) "Retirement" shall mean retirement by a Participant in accordance with the
terms of the Company's retirement or pension plans.
(s) "Shares" shall mean the shares of the Company's common stock, par value
$5.00 per share.
(t) "Subsidiary" shall mean, with respect to any company, any corporation or
other Person of which a majority of its voting power, equity securities, or
equity interest is owned directly or indirectly by such company.
(u) "Ten Percent Shareholder" shall mean an Employee who, at the time an
ISO is granted, owns (within the meaning of Section 422(b)(6) of the Code) stock
possessing more than 10% of the total combined voting power of all classes of
stock of the Company.
(v) Gender and Number. Except where otherwise indicated by the context,
reference to the masculine gender shall include the feminine gender, the plural
shall include the singular and the singular shall include the plural.
2.2 Severability. In the event any provision of the Plan shall be held illegal
or invalid for any reason, the illegality or invalidity shall not affect the
remaining parts of the Plan, and the Plan shall be construed and enforced as if
the illegal or invalid provision had not been included.
ARTICLE 3. ADMINISTRATION
3.1 The Committee. The Plan shall be administered by a Committee appointed by
the Board consisting of two or more "non-employee" directors of the Company or
the entire Board of the Company. The Committee shall meet at such times and
places as it determines and may meet through a telephone conference call. The
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members of the Committee shall be appointed from time to time by, and shall
serve at the discretion of, the Board.
3.2 Authority of the Committee. Subject to the provisions of the Plan, the
Committee shall have full authority to:
(a) select Participants to whom Options are granted;
(b) determine the size and frequency of Options granted under the Plan;
(c) determine the terms and conditions of Options;
(d) cancel or modify, with the consent of the Participant, outstanding Options
and to grant new Options in substitution therefor;
(e) accelerate the exercisability of any Options, for any reason;
(f) construe and interpret the Plan and any agreement or instrument entered
into under the Plan;
(g) establish, amend and rescind rules and regulations for the Plan's
administration; and
(h) amend the terms and conditions of any outstanding Option to the extent
such terms and conditions are within the discretion of the Committee as provided
in the Plan.
The Committee shall make all other determinations which may be necessary or
advisable for the administration of the Plan. The Committee may delegate its
authority as identified hereunder; provided, however, that such delegation is
permitted by law and Rule 16b-3 promulgated under the Exchange Act.
3.3 Decisions Binding. All determinations and decisions made by the Committee
pursuant to the provisions of the Plan, and all related orders or resolutions of
the Board, shall be final, conclusive and binding upon all persons, including
the Company, its stockholders, Employees, Participants and their estates and
beneficiaries.
3.4 Section 16 Compliance; Bifurcation of Plan. It is the intention of the
Company that the Plan and the administration of the Plan comply in all respects
with Section 16(b) of the Exchange Act and the rules and regulations promulgated
thereunder. If any Plan provision, or any aspect of the administration of the
Plan, is found not to be in compliance with Section 16(b) of the Exchange Act,
the provision or administration shall be deemed null and void, and in all events
the Plan shall be construed in favor of its meeting the requirements of Rule
16b-3 promulgated under the Exchange Act. Notwithstanding anything in the Plan
to the contrary, the Board or the Committee, in its discretion, may bifurcate
the Plan so as to restrict, limit or condition the use of any provision of the
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Plan to Participants who are subject to Section 16 of the Exchange Act without
so restricting, limiting or conditioning the Plan with respect to other
Participants.
ARTICLE 4. SHARES AVAILABLE UNDER THE PLAN
4.1 Number of Shares. Subject to adjustment as provided in Section 4.2, the
number of Shares reserved for issuance upon the exercise of Options and the
payment of benefits in connection with Options is 1,000,000 Shares, plus 10%
of any increase (other than any increase due to Shares issued pursuant to the
Plan or the Community Bancorp, Inc. 1989 Stock Option Plan) in the number of
authorized and issued Shares in excess of 10,062,487 Shares. Any Shares issued
under the Plan may consist, in whole or in part, of authorized and unissued
Shares or treasury Shares. If and to the extent an Option shall expire or
terminate for any reason without having been exercised in full (including a
cancellation and regrant of an Option), or shall be forfeited, the Shares
associated with such Options shall again become available for Options under
the Plan.
4.2 Adjustments in Authorized Shares and Outstanding Awards. In the event of a
merger, reorganization, consolidation, recapitalization, reclassification,
split-up, spin-off, separation, liquidation, stock dividend, stock split,
reverse stock split, property dividend, share repurchase, share combination,
share exchange, issuance of warrants, rights or debentures, or other change
in the corporate structure of the Company affecting the Shares, the Committee
may substitute or adjust the total number and class of Shares or other stock or
securities which may be issued under the Plan, and the number, class and/or
price of Shares subject to outstanding Options, as it determines to be
appropriate and equitable to prevent dilution or enlargement of the rights of
Participants and to preserve, without exceeding, the value of any outstanding
Options; and further provided, that the number of Shares subject to any Option
shall always be a whole number. In the case of ISOs, such adjustments shall be
made in such a manner so as not to constitute a "modification" within the
meaning of section 424(h)(3) of the Code and only to the extent otherwise
permitted by sections 422 and 424 of the Code.
ARTICLE 5. ELIGIBILITY AND PARTICIPATION
All Employees are eligible to receive Options under the Plan. In selecting
Employees to receive Options under the Plan, as well as in determining the
number of Shares subject to, and the other terms and conditions applicable to,
each Option, the Committee shall take into consideration such factors as it
deems relevant in promoting the purposes of the Plan, including the duties of
the Employees, their present and potential contribution to the success of the
Company and their anticipated number of years of active service as employees.
ARTICLE 6. STOCK OPTIONS
6.1 Grant of Options. Subject to the terms and provisions of the Plan, the
Committee may grant Options to Participants at any time and from time to time,
in the form of options which are intended to qualify as incentive stock options
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within the meaning of section 422 of the Code ("ISOs"), Options which are not
intended to so qualify ("NQSOs") or a combination thereof. All ISOs must be
granted within ten years from the date on which the Plan was adopted by the
Board, and may only be granted to employees of the Company or any subsidiary
corporation (within the meaning of section 422(f)). The maximum number of Shares
with respect to which Options may be granted to any Participant during any
calendar year shall be 100,000, subject to adjustment as provided in Section
4.2.
6.2 Option Agreement. Each Option shall be evidenced by an Option Agreement
that shall specify the Option Exercise Price, the duration of the Option, the
number of Shares to which the Option relates and such other provisions as the
Committee may determine or which are required by the Plan. The Option Agreement
shall also specify whether the Option is intended to be an ISO or a NQSO and
shall include such provisions applicable to the particular type of Option
granted.
6.3 Duration of Options. Each Option shall expire at such time as is
determined by the Committee at the time of grant; provided, however, that no
Option shall be exercised later than the tenth anniversary of its grant (fifth
anniversary in the case of an ISO granted to a Ten Percent Shareholder).
6.4 Exercise of Options. Options shall be exercisable at such times and be
subject to such restrictions and conditions as the Committee shall approve
at the time of grant, which need not be the same for each grant or for each
Participant. Except as provided in Section 6.6, however, in no event may any
Option become exercisable within six months of the date of grant in the case
of any Participant subject to section 16(b) of the Exchange Act. Subject to the
foregoing sentence, the Committee may accelerate the exercisability of any
Option. Options shall be exercised, in whole or in part, by delivery to the
Company of a written notice of exercise, setting forth the number of Shares
with respect to which the Option is to be exercised and accompanied by full
payment of the Option Exercise Price and all applicable withholding taxes.
6.5 Payment of Option Exercise Price. The Option Exercise Price for Shares as
to which an Option is exercised shall be paid to the Company in full at the time
of exercise either (a) in cash in the form of currency or other cash equivalent
acceptable to the Company, (b) by tendering Shares having a Fair Market Value
(determined as of the close of the business day immediately preceding the day
on which the Option is exercised) equal to the Option Exercise Price (provided,
however, that in the case of a Participant subject to section 16(b) of the
Exchange Act, such Shares have been held by the Participant for at least six
months prior to their tender), (c) any other reasonable consideration that the
Committee may deem appropriate or (d) by a combination of the forms of
consideration described in (a), (b) and (c) of this Section 6.5. The Committee
may permit the cashless exercise of Options as described in Regulation T
promulgated by the Federal Reserve Board, subject to applicable securities law
restrictions, or by any other means which the Committee determines to be
consistent with the Plan's purpose and applicable law.
6.6 Vesting Upon Change in Control. Upon a Change in Control, any then
outstanding Options held by Participants shall become fully vested and
immediately exercisable. Furthermore, if provided in an Option Agreement, the
Participant shall have the right to sell the Option back to the Company for
<PAGE>
an amount generally equal to the excess of the Fair Market Value of the Shares
subject to the Option over the Option Price.
6.7 Termination of Employment. If the employment of a Participant is
terminated for Cause, all then outstanding Options of such Participant, whether
or not exercisable, shall terminate immediately. If the employment of a
Participant is terminated for any reason other than for Cause, death, Disability
or Retirement, to the extent then outstanding Options of such Participant are
exercisable, such Options may be exercised by such Participant or such
Participant's personal representative at any time prior to the expiration date
of the Options or within 90 days after the date of such termination of
employment, whichever is earlier. In the event of the Retirement of a
Participant, to the extent then outstanding Options of such Participant are
exercisable, such Options may be exercised by the Participant (a) in the case of
NQSOs, within two years after the date of Retirement and (b) in the case of
ISOs, within 90 days after Retirement; provided, however, that no such Options
may be exercised on a date subsequent to their expiration. In the event of the
death or Disability of a Participant while employed by the Company or a
Subsidiary, all then outstanding Options of such Participant shall become fully
vested and immediately exercisable, and may be exercised at any time (a) in
the case of NQSOs, within two years after the date of death or determination
of Disability and (b) in the case of ISOs, within one year after the date of
death or determination of Disability; provided, however, that no such Options
may be exercised on a date subsequent to their expiration. In the event of the
death of a Participant, the Option may be exercised by the person or persons to
whom rights pass by will or by the laws of descent and distribution, or if
appropriate, the legal representative of the deceased Participant's estate. In
the event of the Disability of a Participant, Options may be exercised by the
Participant, or if such Participant is incapable of exercising the Options, by
such Participant's legal representative.
6.8 Transferable Options. The Committee may, in its discretion by appropriate
provision in the Participant's Option Agreement, authorize all or a portion of
any NQSOs to be granted to a Participant be on terms which permit transfer by
such Participant to (i) the spouse, children or grandchildren of the Participant
("Immediate Family Members"), (ii) a trust or trusts for the exclusive benefit
of such Participant and/or his Immediate Family Members, or (iii) a partnership
or limited liability company in which such Participant and/or his Immediate
Family Members are the only partners or members, as applicable; provided that
(a) there may be no consideration for any such transfer, (b) the Option
Agreement must expressly provide for transferability in a manner consistent
with this Section and (c) subsequent transfers of transferable NQSOs shall be
prohibited except by will or the laws of descent and distribution. Following
transfer, any such NQSOs shall continue to be subject to the same terms and
conditions as were applicable immediately prior to transfer, provided that
for purposes of this Article 6 (excluding Section 6.7) the term "Participant"
shall be deemed to refer to the transferee. The events of termination of
employment as set forth in Section 6.7 shall continue to be applied with
respect to the original Participant. Any transferred NQSOs shall be exercisable
by the transferee only to the extent, and for the periods, specified in the
Option Agreement.
<PAGE>
6.9 Repurchase. Upon approval of the Committee, the Company may repurchase a
previously granted Option from a Participant by mutual agreement before such
Option has been exercised by payment to the Participant of an amount equal to
the amount by which (i) the Fair Market Value of the Shares subject to the
Option on the date immediately preceding the date of repurchase exceeds (ii)
the Option Exercise Price of such Shares.
6.10 Certificate Legend. For any Shares issued upon exercise of an ISO, the
Company may legend such Shares as it deems appropriate.
ARTICLE 7. AMENDMENT, MODIFICATION AND TERMINATION
7.1 Effective Date. The Plan shall become effective upon adoption by the Board.
The Plan shall be rescinded and all Options granted hereunder shall be null and
void unless within 12 months from the date of the adoption of the Plan by the
Board it shall have been approved by the holders of a majority of the
outstanding Shares present or represented and entitled to vote on the Plan at
a stockholders' meeting.
7.2 Termination Date. The Plan shall terminate on the earliest to occur of (a)
the tenth anniversary of the adoption of the Plan by the Board, (b) the date
when all Shares available under the Plan shall have been acquired pursuant to
the exercise of Options, or (c) such other date as the Board may determine in
accordance with Section 7.3.
7.3 Amendment, Modification and Termination. The Board may, at any time,
amend, suspend or terminate the Plan or any portion thereof provided that (a) no
amendment shall be made without stockholder approval if such approval is
necessary to satisfy any applicable tax or regulatory law or regulation and the
Board determines it is appropriate to seek stockholder approval, and (b) upon
or following a Change in Control no amendment may adversely affect the rights
of any person in connection with a previously granted option.
7.4 Awards Previously Granted. No amendment, modification or termination of
the Plan shall in any manner adversely affect any outstanding Option without
the written consent of the Participant holding such Option.
ARTICLE 8. NON-TRANSFERABILITY
Except as expressly provided in the Plan, a Participant's rights under the Plan
may not be assigned, pledged or otherwise transferred other than by will or the
laws of descent and distribution. Except as expressly provided in the Plan,
during a Participant's lifetime, an Option may be exercised only by such
Participant.
ARTICLE 9. NO GRANTING OF EMPLOYMENT RIGHTS
Neither the Plan, nor any action taken under the Plan, shall be construed as
giving any Employee the right to become a Participant, nor shall an Option
<PAGE>
under the Plan be construed as giving a Participant any right with respect to
continuance of employment by the Company. The Company expressly reserves the
right to terminate, whether by dismissal, discharge or otherwise, a
Participant's employment at any time, with or without Cause, except as may
otherwise be provided by any written agreement between the Company and the
Participant.
ARTICLE 10. WITHHOLDING
10.1 Tax Withholding. A Participant shall remit to the Company an amount
sufficient to satisfy Federal, state and local taxes (including the
Participant's FICA and Medicare obligation) required by law to be withheld
with respect to any grant, exercise or payment made under or as a result of
the Plan.
10.2 Share Withholding. If the Company has a withholding obligation upon the
issuance of Shares under the Plan, a Participant may, subject to the discretion
of the Committee, elect to satisfy the withholding requirement, in whole or in
part, by having the Company withhold Shares having a Fair Market Value on the
date the withholding tax is to be determined equal to the amount required to be
withheld under applicable law. Notwithstanding the foregoing, the Committee may,
by the adoption of rules or otherwise, modify the provisions of this Section
10.2 or impose such other restrictions or limitations on such elections as may
be necessary to ensure that such elections will be exempt transactions under
section 16(b) of the Exchange Act.
ARTICLE 11. INDEMNIFICATION
No member of the Board or the Committee, nor any officer or Employee acting on
behalf of the Board or the Committee, shall be personally liable for any action,
determination or interpretation taken or made with respect to the Plan, and all
members of the Board, the Committee and each officer or Employee of the Company
acting on their behalf shall, to the extent permitted by law, be fully
indemnified and protected by the Company with respect to any such action,
determination or interpretation.
ARTICLE 12. SUCCESSORS
All obligations of the Company with respect to Options granted under the Plan
shall be binding on any successor to the Company, whether the existence of such
successor is a result of a direct or indirect purchase, merger, consolidation
or otherwise, of all or substantially all of the business and/or assets of the
Company.
ARTICLE 13. GOVERNING LAW
To the extent not preempted by Federal law, the Plan, and all agreements under
the Plan, shall be governed by, and construed in accordance with, the laws of
the Commonwealth of Kentucky without regard to its conflict of laws rules.
Furthermore, the Plan and all Option Agreements relating to ISOs shall be
interpreted so as to qualify as incentive stock options under the Code.
<PAGE>
IN WITNESS WHEREOF, this Community Trust Bancorp, Inc. 1998 Incentive Stock
Option Plan has been executed by the Company as of the 27th day of January,
1998, being the date the Plan was adopted by the Board.
COMMUNITY TRUST BANCORP, INC.
By: /s/: Burlin Coleman
Title: Chairman of the Board,
President and Chief Executive Officer