Addendum to Incentive Stock Option Award Agreement under Affinity Bancshares, Inc. 2018 Equity Incentive Plan
This notice informs recipients of stock option awards under the Affinity Bancshares, Inc. 2018 Equity Incentive Plan that, due to the company's Second-Step Conversion and related stock offering effective January 20, 2021, the number of unexercised incentive stock options and their exercise prices have been adjusted. The adjustment uses a specific exchange ratio, resulting in a new number of options and a revised exercise price. No fractional shares will be issued. The notice provides the updated details for each recipient's stock options.
Exhibit 10.12
AFFINITY BANCSHARES, INC.
2018 EQUITY INCENTIVE PLAN
INCENTIVE STOCK OPTION AWARD AGREEMENT
ADDENDUM
NOTICE REGARDING YOUR STOCK OPTION AWARDS
Name:[______]
This notice is provided to you as a recipient of a stock option award (“Stock Option”) under the Affinity Bancshares, Inc. 2018 Equity Incentive Plan (formerly known as the “Community First Bancshares, Inc. 2018 Equity Incentive Plan”) (the “Plan”).
In connection with the completion of the second step conversion of Community First Bancshares, Inc. and the related stock offering, effective January 20, 2021, (collectively, the “Second-Step Conversion”), the number of your unexercised Incentive Stock Options and the corresponding exercise price.
As a result of the Second-Step Conversion, the number of shares that you are entitled to receive upon exercise and the exercise price (“Exercise Price”) of your unexercised Incentive Stock Options have been converted using the Second-Step Conversion exchange ratio of 0.90685864 (the “Exchange Ratio”) by multiplying the number of Incentive Stock Options by the Exchange Ratio (and rounding down to the nearest whole number) and dividing the Exercise Price by the Exchange Ratio. Accordingly, the new number of your unexercised Incentive Stock Options and the new Exercise Price are shown below (please note that no fractional shares will be issued).
