{"id":39938,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/executive-stock-option-agreement-bank-of-ny-mellon.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"executive-stock-option-agreement-bank-of-ny-mellon","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/executive-stock-option-agreement-bank-of-ny-mellon.html","title":{"rendered":"Executive Stock Option Agreement &#8211; Bank of NY Mellon"},"content":{"rendered":"<p align=\"center\">THE BANK OF NEW YORK MELLON CORPORATION<\/p>\n<p align=\"center\"><em>The Bank of New York Mellon Corporation Long-Term<br \/>\nIncentive Plan <\/em><\/p>\n<p align=\"center\"><u>FORM OF NONSTATUTORY STOCK OPTION AGREEMENT <\/u><\/p>\n<p>The Bank of New York Mellon Corporation (the &#8220;Corporation&#8221;) and<br \/>\n<u>                                                                                 <\/u>, a key employee (the<br \/>\n&#8220;Optionee&#8221;) of the Corporation, in consideration of the covenants and agreements<br \/>\nherein contained and intending to be legally bound hereby, agree as follows:\n<\/p>\n<p align=\"center\">SECTION 1: <u>Grant<\/u><\/p>\n<p>1.1 <u>Grant of Option<\/u>. Subject to the terms and conditions set forth in<br \/>\nthis Nonstatutory Stock Option Agreement (this &#8220;Agreement&#8221;) and to the terms of<br \/>\nThe Bank of New York Mellon Corporation Long-Term Incentive Plan (the &#8220;Plan&#8221;),<br \/>\nthe Corporation hereby grants to the Optionee a stock option (the &#8220;Option&#8221;) to<br \/>\npurchase <u>                                <\/u> shares of the Corporation153s common stock, par<br \/>\nvalue $.01, (the &#8220;Common Stock&#8221;) from the Corporation at a price of<br \/>\n$<u>                <\/u> per share (the &#8220;Option Price&#8221;), which is the Fair Market Value<br \/>\nof the shares of Common Stock covered by the Option on<br \/>\n<u>                                        <\/u> (the &#8220;Grant Date&#8221;). Capitalized terms not otherwise<br \/>\ndefined herein shall have the meaning set forth in the Plan.<\/p>\n<p>1.2 <u>Acceptance<\/u>. The Optionee accepts the grant of the Option confirmed<br \/>\nhereby, and agrees to be bound by the terms and provisions of this Agreement and<br \/>\nthe Plan, as this Agreement and the Plan may be amended from time to time;<br \/>\n<em>provided, however,<\/em> that no alteration, amendment, revocation or<br \/>\ntermination of the Agreement or the Plan shall, without the written consent of<br \/>\nthe Optionee, adversely affect the rights of the Optionee with respect to the<br \/>\nOption.<\/p>\n<p align=\"center\">SECTION 2: <u>Vesting, Exercise and Expiration<\/u><\/p>\n<p>2.1 <u>Vesting<\/u>. Subject to Sections  3 and 4.8 of this Agreement, the<br \/>\nOption will vest and become exercisable in annual installments over a four-year<br \/>\nvesting period according to the following vesting schedule:<\/p>\n<p><sup>  1<\/sup>\/4 of the Option will vest upon the 1<sup>st<\/sup> anniversary<br \/>\nof the Grant Date;<\/p>\n<p>an additional <sup>  1<\/sup>\/4 of the Option will vest upon the 2<sup>nd<\/sup><br \/>\nanniversary of the Grant Date;<\/p>\n<p>an additional <sup>  1<\/sup>\/4 of the Option will vest upon the 3<sup>rd<\/sup><br \/>\nanniversary of the Grant Date; and<\/p>\n<p>an additional <sup>  1<\/sup>\/4 of the Option will vest upon the 4<sup>th<\/sup><br \/>\nanniversary of the Grant Date;<\/p>\n<p><em>provided that<\/em> the Optionee is employed by the Corporation on such<br \/>\nanniversary, with all fractional shares, if any, rounded up and vesting as whole<br \/>\nshares upon the earlier vesting date(s). &#8220;Corporation,&#8221; when used herein with<br \/>\nreference to employment of the Optionee, shall include any Affiliate of the<br \/>\nCorporation. To the extent vested, the Option may be exercised in whole or in<br \/>\npart from the date of vesting through and including the Option Expiration Date,<br \/>\nas defined in Section  2.3 hereof, subject to any limits provided in Section  3.\n<\/p>\n<\/p>\n<hr>\n<p>2.2 <u>Exercise<\/u>. This Option shall be exercised by the Optionee by<br \/>\ndelivering to the Executive Compensation Division of the Corporation153s Human<br \/>\nResources Department (i)  this Agreement signed by the Optionee, (ii)  a written<br \/>\n(including electronic) notification specifying the number of shares which the<br \/>\nOptionee then desires to purchase, (iii)  a check payable to the order of the<br \/>\nCorporation, which may include cash forwarded through the broker or other<br \/>\nagent-sponsored exercise or financing program approved by the Corporation,<br \/>\nand\/or shares, or certification of ownership for shares, of Common Stock equal<br \/>\nin value to the aggregate Option Price of such shares and\/or an instruction from<br \/>\nthe Optionee directing the Corporation to withhold shares of Common Stock<br \/>\notherwise receivable upon exercise of this Option (subject to any restrictions<br \/>\nregarding prior ownership of such shares or an equivalent number of shares<br \/>\nimposed by the Corporation), and (iv)  a stock power executed in blank for any<br \/>\nshares of Common Stock delivered or withheld pursuant to clause (iii)  hereof.<br \/>\nShares of Common Stock surrendered, certified or withheld in exercise of this<br \/>\nOption shall be subject to terms and conditions imposed by the Committee and<br \/>\nshall be valued as of the date, and by the means, prescribed by the<br \/>\nCorporation153s procedures in effect at the time of such exercise and in<br \/>\naccordance with the terms of the Plan. As soon as practicable after each<br \/>\nexercise of this Option and compliance by the Optionee with all applicable<br \/>\nconditions, the Corporation will credit the number of shares of Common Stock, if<br \/>\nany, which the Optionee is entitled to receive upon such exercise under the<br \/>\nprovisions of this Agreement to a book-entry account in the Optionee153s name.\n<\/p>\n<p>2.3 <u>Expiration<\/u>. The Option shall expire and cease to be exercisable on<br \/>\nthe earlier of (a)  either (i)  the last trading day immediately preceding the ten<br \/>\nyear anniversary of the Grant Date or, if earlier, (ii)  the date of cancellation<br \/>\nprovided for in Section  4.8 (the earlier of (i)  and (ii)  referred to as the<br \/>\n&#8220;Option Expiration Date&#8221;) or (b)  the expiration date provided for in Section  3.\n<\/p>\n<p align=\"center\">SECTION 3: <u>Termination of Employment and Disability<\/u>\n<\/p>\n<p>3.1 <u>Termination of Employment<\/u>.<\/p>\n<p>(a) <em>General<\/em>. If the Optionee153s employment with the Corporation is<br \/>\nterminated, this Option will expire on the Termination Date except as provided<br \/>\nin Sections 3.2 or 3.3 hereof.<\/p>\n<p>(b) <em>Meaning of Terms<\/em>. As used in this Agreement, (i)  &#8220;Termination<br \/>\nDate&#8221; shall mean the date upon which the Optionee ceases performing services as<br \/>\nan employee of the Corporation, without regard to accrued vacation, severance or<br \/>\nother benefits or the characterization thereof on the payroll records of the<br \/>\nCorporation; and (ii)  &#8220;Payroll Separation Date&#8221; shall mean the last day for<br \/>\nwhich the Optionee receives salary continuance or separation\/transition pay from<br \/>\nthe Corporation, if any, without regard to any period during which receipt of<br \/>\npayments may be delayed to avoid imposition of additional taxes under<br \/>\nSection  409A of the Internal Revenue Code of 1986, as amended (the &#8220;Code&#8221;). If<br \/>\nthe Optionee does not receive salary continuance or separation\/transition pay<br \/>\nfrom the Corporation, the Payroll Separation Date will be the same date as the<br \/>\nTermination Date.<\/p>\n<\/p>\n<p align=\"center\">-2-<\/p>\n<\/p>\n<hr>\n<p>3.2 <u>Specified Terminations of Employment<\/u>.<\/p>\n<p>(a) <u>Termination Without Cause\/With Cause<\/u>. If the Optionee153s employment<br \/>\nis terminated by the Corporation &#8220;without cause,&#8221; as defined in Section  3.5(e)<br \/>\nof the Plan, the unvested portion of the Option will expire on the Termination<br \/>\nDate and the Optionee will have thirty days following the Termination Date to<br \/>\nexercise the portion of the Option that was vested on the Termination Date;<br \/>\n<em>provided, however,<\/em> if the Optionee is entitled to separation\/transition<br \/>\npay from the Corporation, the unvested portion of the Option will expire on the<br \/>\nPayroll Separation Date and the vested portion of the Option may be exercised<br \/>\nfor one year following the Payroll Separation Date; <em>provided further,<br \/>\n<\/em>in any case the Option may not extend beyond the Option Expiration Date.<br \/>\nUpon the effective date of a termination of the Optionee153s employment with the<br \/>\nCorporation for cause, the Option will immediately expire without consideration<br \/>\nor further action being required of the Corporation, and without regard to any<br \/>\ndelay pursuant to Section  3.4 below.<\/p>\n<p>(b) <u>Termination following Satisfaction of Age and Service<br \/>\nCriteria<\/u>:<u> <\/u><\/p>\n<p>(i) <em>Age 55 until 60<\/em>. If the Payroll Separation Date occurs on or<br \/>\nafter the Optionee153s attainment of age 55 but prior to age 60, the Option will<br \/>\ncontinue to vest as set forth in Section  2.1 hereof through the Payroll<br \/>\nSeparation Date and the Optionee will have three years from the Payroll<br \/>\nSeparation Date to exercise the portion of the Option that was vested as of such<br \/>\ndate (or, if earlier, until the Option Expiration Date).<\/p>\n<p>(ii) <em>Age 60 until 65<\/em>. If the Payroll Separation Date occurs on or<br \/>\nafter the Optionee153s attainment of age 60 but prior to age 65, the Option will<br \/>\ncontinue to vest as set forth in Section  2.1 hereof during the five year period<br \/>\nfollowing the Payroll Separation Date and the Optionee will have five years<br \/>\nfollowing the Payroll Separation Date to exercise the Option to the extent it is<br \/>\nor becomes vested during such period (or, if earlier, until the Option<br \/>\nExpiration Date).<\/p>\n<p>(iii) <em>Age 65 and over<\/em>. If the Payroll Separation Date occurs on or<br \/>\nafter the Optionee153s attainment of age 65, this Option will automatically become<br \/>\nfully exercisable upon the Termination Date (or, if the Optionee has not<br \/>\nattained age 65 on the Termination Date, upon the date on which the Optionee<br \/>\nattains age 65) and the Optionee will have seven years following the Payroll<br \/>\nSeparation Date to exercise the Optionee153s vested Option (or if earlier, until<br \/>\nthe Option Expiration Date).<\/p>\n<p>(c) <u>Sale of Business Unit or Subsidiary<\/u>. If the Optionee153s employment<br \/>\nwith the Corporation is terminated by the Corporation due to the sale of a<br \/>\nbusiness unit or subsidiary of the Corporation by which the Optionee is<br \/>\nemployed, and the Optionee is not otherwise entitled to transition\/separation<br \/>\npay from the Corporation, upon the Termination Date any then unvested Option<br \/>\nshall vest on a pro-rata basis equal to (i)  the number of whole and fractional<br \/>\nmonths from the Grant Date through the Termination Date (without regard to any<br \/>\ndelayed vesting under Section  3.4 below), divided by (ii)  48 months, with the<br \/>\nresult multiplied by (iii)  the total number of the shares subject to the Option,<br \/>\nwith that result reduced by (iv)  the number of shares subject to the Option that<br \/>\nwere already vested as of the Termination Date. Any then remaining portion of<br \/>\nthe Option will expire immediately. In such case, the Optionee will have two<br \/>\nyears following the Termination Date to exercise the Option that was or became<br \/>\nvested as of the Termination Date (or if earlier, until the Option Expiration<br \/>\nDate).<\/p>\n<\/p>\n<p align=\"center\">-3-<\/p>\n<\/p>\n<hr>\n<p>(d) <u>Death<\/u>. If the Optionee shall die while employed by the<br \/>\nCorporation, or within a period following termination of employment during which<br \/>\nthis Option remains exercisable, the then remaining unvested portion of this<br \/>\nOption shall automatically become fully exercisable and the executor or<br \/>\nadministrator of the Optionee153s estate or the person or persons to whom the<br \/>\nOptionee shall have transferred such right by Will or by the laws of descent and<br \/>\ndistribution will have two years following the date of death to exercise the<br \/>\nOptionee153s vested Option (or if earlier, until the Option Expiration Date).<\/p>\n<p>(e) <u>Change in Control<\/u>. If the Optionee153s employment is terminated by<br \/>\nthe Corporation &#8220;without cause,&#8221; as defined in Section  3.5(e) of the Plan,<br \/>\nwithin two years after a Change in Control, as defined in Section  3.2(f) of this<br \/>\nAgreement, occurring after the Grant Date, this Option shall automatically<br \/>\nbecome fully exercisable and the Optionee will have one year following the<br \/>\nPayroll Separation Date to exercise the Optionee153s vested Option (or if earlier,<br \/>\nuntil the Option Expiration Date). The definition of Change in Control as<br \/>\nprovided in the Plan is expressly inapplicable to this Agreement.<\/p>\n<p>(f) <u>Change in Control Definition<\/u>. For purposes of this Agreement,<br \/>\n&#8220;Change in Control&#8221; means the occurrence of any one of the following events:\n<\/p>\n<p>(i) During any period of not more than two (2)  years, the Incumbent Directors<br \/>\nno longer represent a majority of the Board. &#8220;Incumbent Directors&#8221; are (A)  the<br \/>\nmembers of the Board as of July  1, 2007 and (B)  any individual who becomes a<br \/>\ndirector subsequent to the date hereof whose appointment or nomination was<br \/>\napproved by at least a majority of the Incumbent Directors then on the Board<br \/>\n(either by specific vote or by approval, without prior written notice to the<br \/>\nBoard objecting to the nomination, of a proxy statement in which the member was<br \/>\nnamed as nominee). However, the Incumbent Directors will not include anyone who<br \/>\nbecomes a member of the Board after the date hereof as a result of an actual or<br \/>\nthreatened election contest or proxy or consent solicitation on behalf of anyone<br \/>\nother than the Board, including as a result of any appointment, nomination or<br \/>\nother agreement intended to avoid or settle a contest or solicitation;<\/p>\n<p>(ii) There is a beneficial owner of securities entitled to 30% or more of the<br \/>\ntotal voting power of the Corporation153s then-outstanding securities in respect<br \/>\nof the election of the Board (the &#8220;Voting Securities&#8221;), other than (A)  the<br \/>\nCorporation, any Subsidiary of it or any employee benefit plan or related trust<br \/>\nsponsored or maintained by the Corporation or any Subsidiary of it; (B)  any<br \/>\nunderwriter temporarily holding securities pursuant to an offering of them;<br \/>\n(C)  anyone who becomes a beneficial owner of that percentage of Voting<br \/>\nSecurities as a result of an Excluded Transaction (as defined below); or<br \/>\n(D)  anyone who becomes a beneficial owner of that percentage of Voting<br \/>\nSecurities as a result of a transaction in which Voting Securities are acquired<br \/>\nfrom the Corporation, if the transaction is approved by a majority of the<br \/>\nIncumbent Directors in a resolution that expressly states that the transaction<br \/>\nis not a Change in Control under Section  2(e) of the Corporation153s Executive<br \/>\nSeverance Plan;<\/p>\n<p>(iii) Consummation of a merger, consolidation, statutory share exchange or<br \/>\nsimilar transaction (including an exchange offer combined with a merger or<br \/>\nconsolidation) involving the Corporation (a &#8220;Reorganization&#8221;) or a sale, lease<br \/>\nor other disposition (including by<\/p>\n<\/p>\n<p align=\"center\">-4-<\/p>\n<\/p>\n<hr>\n<p>way of a series of transactions or by way of merger, consolidation, stock<br \/>\nsale or similar transaction involving one or more subsidiaries) of all or<br \/>\nsubstantially all of the Corporation153s consolidated assets (a &#8220;Sale&#8221;) other than<br \/>\nan Excluded Transaction. A Reorganization or Sale is an &#8220;Excluded Transaction&#8221;<br \/>\nif immediately following it: (A)  50% or more of the total voting power of the<br \/>\nSurviving Corporation153s then-outstanding securities in respect of the election<br \/>\nof directors (or similar officials in the case of a non-corporation) is<br \/>\nrepresented by Voting Securities outstanding immediately before the<br \/>\nReorganization or Sale or by securities into which such Voting Securities were<br \/>\nconverted in the Reorganization or Sale; (B)  there is no beneficial owner of<br \/>\nsecurities entitled to 30% or more of the total voting power of the<br \/>\nthen-outstanding securities of the Surviving Corporation in respect of the<br \/>\nelection of directors (or similar officials in the case of a non-corporation);<br \/>\nand (C)  a majority of the board of directors of the Surviving Corporation (or<br \/>\nsimilar officials in the case of a non-corporation) were Incumbent Directors at<br \/>\nthe time the Board approved the execution of the initial agreement providing for<br \/>\nthe Reorganization or Sale. The &#8220;Surviving Corporation&#8221; means in a<br \/>\nReorganization, the entity resulting from the Reorganization or in a Sale, the<br \/>\nentity that has acquired all or substantially all of the assets of the<br \/>\nCorporation, except that, if there is a beneficial owner of securities entitled<br \/>\nto 95% of the total voting power (in respect of the election of directors or<br \/>\nsimilar officials in the case of a non-corporation) of the then-outstanding<br \/>\nsecurities of the entity that would otherwise be the Surviving Corporation, then<br \/>\nthat beneficial owner will be the Surviving Corporation; or<\/p>\n<p>(iv) the stockholders of the Corporation approve a plan of complete<br \/>\nliquidation or dissolution of the Corporation.<\/p>\n<p>For purposes of the foregoing definition, &#8220;Subsidiary&#8221; means any corporation<br \/>\nor other entity in which the Corporation has a direct or indirect ownership<br \/>\ninterest of 50% or more of the total combined voting power of the then<br \/>\noutstanding securities or interests of such corporation or other entity entitled<br \/>\nto vote generally in the election of directors (or members of any similar<br \/>\ngoverning body) or in which the Corporation has the right to receive 50% or more<br \/>\nof the distribution of profits or 50% of the assets or liquidation or<br \/>\ndissolution.<\/p>\n<p>[(g) <u>Special Termination Right<\/u>. If the Optionee153s employment is<br \/>\nterminated pursuant to the terms and conditions of the Special Termination<br \/>\nRight, as such term is defined in <u><br \/>\n<\/u>, the unvested portion of the Option will fully vest and become immediately<br \/>\nexercisable upon the Termination Date, and will continue to be outstanding and<br \/>\nin effect for five years following the Termination Date.]<\/p>\n<p>(h) <u>Limitation<\/u>. During any interim period in which Optionee153s<br \/>\nentitlement to separation\/transition pay is not yet established, Optionee shall<br \/>\nnot be permitted to exercise this Option in cases where the exercise or vesting<br \/>\nthereof is dependent upon whether the Optionee is so entitled.<\/p>\n<p>3.3 <u>Disability<\/u>. This Option shall automatically vest and become fully<br \/>\nexercisable on the first day for which the Optionee receives long-term<br \/>\ndisability benefits under the Corporation153s long-term disability plan, and the<br \/>\nOptionee will have two years following such date to exercise the Optionee153s<br \/>\nvested Option (or if earlier, until the Option Expiration Date).<\/p>\n<\/p>\n<p align=\"center\">-5-<\/p>\n<\/p>\n<hr>\n<p>3.4 <u>Delayed Vesting<\/u>. Notwithstanding the foregoing provisions of this<br \/>\nSection, any vesting under this Agreement which would otherwise occur within one<br \/>\nyear from the Grant Date will be delayed until the one year anniversary of the<br \/>\nGrant Date except in the case of vesting due to death, disability or as may be<br \/>\nrequired by prior contractual obligation.<\/p>\n<p align=\"center\">SECTION 4: <u>Miscellaneous<\/u><\/p>\n<p>4.1 <u>No Right to Employment<\/u>. Neither the grant of the Option nor<br \/>\nanything else contained in this Agreement or the Plan shall be deemed to limit<br \/>\nor restrict the right of the Corporation to terminate the Optionee153s employment<br \/>\nat any time, for any reason, with or without cause.<\/p>\n<p>4.2 <u>Nontransferable<\/u>. This Option may not be transferred except by the<br \/>\nOptionee upon his or her death. No other assignment or transfer of this Option,<br \/>\nor of the rights represented thereby, whether voluntary or involuntary, by<br \/>\noperation of law or otherwise shall be permitted, but immediately upon any such<br \/>\nassignment or transfer this Option shall terminate and become of no further<br \/>\neffect. During the Optionee153s life this Option shall be exercisable only by the<br \/>\nOptionee, and after the Optionee153s death the Option shall remain subject to any<br \/>\nrestrictions on exercise and otherwise as if held by the Optionee. Whenever the<br \/>\nword &#8220;Optionee&#8221; is used in any provision of this Option under circumstances<br \/>\nwhere the provision should logically be construed to apply to the executors, the<br \/>\nadministrators or other persons to whom this Option may be transferred, the word<br \/>\n&#8220;Optionee&#8221; shall be deemed to include such person or persons.<\/p>\n<p>4.3 <u>Adjustment<\/u>. This Option is subject to adjustment as provided in<br \/>\nArticle  IX of the Plan.<\/p>\n<p>4.4 <u>Compliance with Laws<\/u>. Notwithstanding any other provision hereof,<br \/>\nthe Optionee hereby agrees that he or she will not exercise the Option, and that<br \/>\nthe Corporation will not be obligated to issue any shares to the Optionee<br \/>\nhereunder, if the exercise thereof or the issuance of such shares shall<br \/>\nconstitute a violation by the Optionee or the Corporation of any provision of<br \/>\nlaw or regulation of any governmental authority. Any determination in this<br \/>\nconnection by the Committee shall be final, binding and conclusive. The<br \/>\nCorporation shall in no event be obliged to register any securities pursuant to<br \/>\nthe Securities Act of 1933 (as the same shall be in effect from time to time) or<br \/>\nto take any other affirmative action in order to cause the exercise of the<br \/>\nOption or the issuance of shares pursuant thereto to comply with any law or<br \/>\nregulation of any governmental authority. For the avoidance of doubt, the<br \/>\nOptionee understands and agrees that if any payment or other obligation under of<br \/>\narising from this Agreement or the Plan is in conflict with or is restricted by<br \/>\nany U.S. federal, state or local or other applicable law (including without<br \/>\nlimitation, any regulations and interpretations thereunder), then the<br \/>\nCorporation may reduce, revoke, cancel, clawback or impose different terms and<br \/>\nconditions to the extent it deems necessary or appropriate, in its sole<br \/>\ndiscretion, to effect such compliance.<\/p>\n<p>4.5 <u>Plan Governs<\/u>. This is the Award Agreement referred to in<br \/>\nSection  2.3(b) of the Plan. To the extent that any written and effective offer<br \/>\nletter or employment agreement with the Optionee contains terms with respect to<br \/>\nvesting and exercise periods of stock options that are more<\/p>\n<\/p>\n<p align=\"center\">-6-<\/p>\n<\/p>\n<hr>\n<p>favorable than those contained herein, such terms shall apply as if part of<br \/>\nthis Agreement, <em>provided that<\/em> the Optionee has complied with the terms<br \/>\nof such offer letter and\/or employment agreement. In the event of any<br \/>\ninconsistency between the provisions of this Agreement and the Plan, the Plan<br \/>\nshall govern. A copy of the Plan may be obtained from the Executive Compensation<br \/>\nDivision of the Corporation153s Human Resources Department. No amount of income<br \/>\nreceived by an Optionee pursuant to this Agreement shall be considered<br \/>\ncompensation for purposes of any pension or retirement plan, insurance plan or<br \/>\nany other employee benefit plan of the Corporation.<\/p>\n<p>4.6 <u>Nonstatutory Stock Option<\/u>. The parties hereto agree that the<br \/>\nOption granted hereby is not, and should not be construed to be, an incentive<br \/>\nstock option under Section  422 of the Code.<\/p>\n<p>4.7 <u>Tax Withholding<\/u>. In each case where the Optionee exercises this<br \/>\nOption in whole or in part, the Corporation will notify the Optionee of the<br \/>\namount of withholding tax, if any, required under federal and, where applicable,<br \/>\nstate and local law, and the Optionee shall, forthwith upon the receipt of such<br \/>\nnotice, remit the required amount to the Corporation or, in accordance with such<br \/>\nregulations as the Committee may prescribe, elect to have the withholding<br \/>\nobligation satisfied in whole or in part by the Corporation withholding full<br \/>\nshares of Common Stock and crediting them against the withholding obligation.<br \/>\nThe Corporation153s obligation to issue or credit shares to the Optionee is<br \/>\ncontingent upon the Optionee153s satisfaction of an amount sufficient to satisfy<br \/>\nany federal, state, local or other withholding tax requirements.<\/p>\n<p>4.8 <u>Forfeiture and Repayment<\/u>. If, directly or indirectly:<\/p>\n<p>(a) during the course of the Optionee153s employment with the Corporation or,<br \/>\nif longer, the period during which this Option is outstanding, the Optionee<br \/>\nengages in conduct or it is discovered that the Optionee engaged in conduct that<br \/>\nis materially adverse to the interests of the Corporation, including failures to<br \/>\ncomply with the Corporation153s rules or regulations, fraud, or conduct<br \/>\ncontributing to any financial restatements or irregularities;<\/p>\n<p>(b) during the course of the Optionee153s employment with the Corporation and,<br \/>\nunless the Optionee has post-termination obligations or duties owed to the<br \/>\nCorporation or its Affiliates pursuant to an individual agreement set forth in<br \/>\nsubsection (d)  below, for one year thereafter, the Optionee engages in<br \/>\nsolicitation and\/or diversion of customers or employees;<\/p>\n<p>(c) during the course of the Optionee153s employment with the Corporation, the<br \/>\nOptionee engages in competition with the Corporation or its Affiliates;<\/p>\n<p>(d) following termination of the Optionee153s employment with the Corporation<br \/>\nfor any reason, with or without cause, the Optionee violates any<br \/>\npost-termination obligations or duties owed to the Corporation or its Affiliates<br \/>\nor any agreement with the Corporation or its Affiliates, including without<br \/>\nlimitation, any employment agreement, confidentiality agreement or other<br \/>\nagreement restricting post-employment conduct; or<\/p>\n<p>(e) any compensation otherwise payable or paid to Optionee is required to be<br \/>\nforfeited and\/or repaid to the Corporation pursuant to applicable regulatory<br \/>\nrequirements;<\/p>\n<\/p>\n<p align=\"center\">-7-<\/p>\n<\/p>\n<hr>\n<p>the Corporation may cancel all or any portion of this Option with respect to<br \/>\nthe shares not yet exercised and\/or require repayment of any shares (or the<br \/>\nvalue thereof) or amounts which were acquired from exercise of the Option. The<br \/>\nCorporation shall have sole discretion to determine what constitutes such<br \/>\nconduct and\/or the application of regulatory requirements.<\/p>\n<p>4.9 <u>Governing Law<\/u>. This Agreement shall be construed and enforced in<br \/>\naccordance with the laws of the State of New York, other than any choice of law<br \/>\nrules calling for the application of laws of another jurisdiction.<\/p>\n<p>4.10 <u>Severability<\/u>. The provisions of this Agreement are severable and<br \/>\nif any one or more provisions are determined to be illegal or otherwise<br \/>\nunenforceable, in whole or in part, the remaining provisions shall nevertheless<br \/>\nbe binding and enforceable.<\/p>\n<p>IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the<br \/>\nGrant Date.<\/p>\n<\/p>\n<table width=\"40%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"6%\"><\/td>\n<td width=\"2%\" valign=\"bottom\"><\/td>\n<td width=\"92%\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\" valign=\"top\">\n<p>THE BANK OF NEW YORK MELLON CORPORATION<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>By:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p>[Name\/Title]<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p>OPTIONEE<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\"><\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"top\">\n<p>[Name\/Title]<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"center\">-8-<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[9044],"corporate_contracts_industries":[],"corporate_contracts_types":[9539,9545],"class_list":["post-39938","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-the-bank-of-new-york-mellon-corp","corporate_contracts_types-compensation","corporate_contracts_types-compensation__esp"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/39938","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=39938"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=39938"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=39938"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=39938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}