Document:

Exhibit 10.2

 

UNITED STATES
DEPARTMENT OF THE TREASURY

1500 Pennsylvania
Avenue, NW

Washington, D.C.
20220

 

March 6, 2009

 

Ladies and Gentlemen:

 

Reference
is made to that certain Letter Agreement incorporating the Securities Purchase
Agreement — Standard Terms dated of as of the date of this letter agreement
(the “Securities Purchase Agreement”) between
United States Department of Treasury (“Investor”) and
the company named on the signature page hereto (the “Company”).  Capitalized terms used but not defined herein
shall have the meanings assigned to them in the Securities Purchase Agreement.

 

The
American Recovery and Reinvestment Act of 2009, as it may be amended from time
to time (the “Act”), includes
provisions relating to executive compensation and other matters that may be
inconsistent with the Securities Purchase Agreement, the Warrant and the
Certificate of Designation (the “Transaction
Documents”).  Accordingly,
Investor and the Company desire to confirm their understanding as follows:

 

1.                                       Notwithstanding
anything in the Transaction Documents to the contrary, in the event that the
Act or any rules or regulations promulgated thereunder are inconsistent
with any of the terms of the Transaction Documents, the Act and such rules and
regulations shall control.

 

2.                                       For
the avoidance of doubt (and without limiting the generality of Paragraph 1):

 

(a)                                  the
provisions of Section 111 of the Emergency Economic Stabilization Act of
2008, as amended by the Act or otherwise from time to time (“EESA”), shall apply to the Company;

 

(b)                                 the
waiver to be delivered by each of the Company’s Senior Executive Officers
pursuant to Section 1.2(d)(v) of the Securities Purchase Agreement
shall, in addition, be delivered by any additional highly compensated employees
required by applicable rules or regulations under EESA;

 

(c)                                  the
Company’s chief executive officer and chief financial officer shall provide the
written certification of compliance by the Company with the requirements of Section 111
of EESA in the manner specified by Section 111(b)(4) thereunder or in
any rules or regulations under EESA; and

 

(d)                                 the
Company shall be permitted to repay preferred shares, and when such preferred
shares are repaid, the Investor shall liquidate warrants associated with such
preferred shares, all in accordance with the Act and any rules and
regulations thereunder.

 

 

 

From
and after the date hereof, each reference in the Securities Purchase Agreement
to “this Agreement” or “this Securities Purchase Agreement” or words of like
import shall mean and be a reference to the Agreement (as defined in the
Securities Purchase Agreement) as amended by this letter agreement.

 

This letter agreement will be governed by and
construed in accordance with the federal law of the United States if and to the
extent such law is applicable, and otherwise in accordance with the laws of the
State of New York applicable to contracts made and to be performed entirely
within such State.

 

This letter agreement, the Securities Purchase
Agreement, the Warrant, the Certificate of Designation and any other documents
executed by the parties at the Closing constitute the entire agreement of the
parties with respect to the subject matter hereof.

 

Nothing in this letter
agreement shall be deemed an admission by Investor as to the necessity of
obtaining the consent of the Company in order to effect the changes to the
Transaction Documents contemplated by this letter agreement, nor shall anything
in this letter agreement be deemed to require Investor to obtain the consent of
any other TARP recipient (as defined in the Act) participating in the Capital
Purchase Program (the “CPP”) in
order to effect changes to their documentation under the CPP.

 

This
letter agreement may be executed in any number of separate counterparts, each
such counterpart being deemed to be an original instrument, and all such
counterparts will together constitute the same agreement.  Executed signature pages to this letter
agreement may be delivered by facsimile and such facsimiles will be deemed
sufficient as if actual signature pages had been delivered.

 

[Remainder of this page intentionally
left blank]

 

2

 

In
witness whereof, the parties have duly executed this letter agreement as of the
date first written above.

 

	
   

  	
  UNITED STATES DEPARTMENT OF THE TREASURY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Neel Kashkari

  
	
   

  	
  Name:

  	
  Neel
  Kashkari

  
	
   

  	
  Title:

  	
  Interim
  Assistant Secretary for Financial Stability

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FIRST BUSEY CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Van A. Dukeman

  
	
   

  	
  Name:

  	
  Van A. Dukeman

  
	
   

  	
  Title:

  	
  President and Chief
  Executive Officer

  
				

 

SIGNATURE PAGE TO LETTER AGREEMENTExhibit 10.3

 

WAIVER

 

In consideration for the benefits I will receive as a result of my
employer’s participation in the United States Department of the Treasury’s TARP
Capital Purchase Program, I hereby voluntarily waive any claim against the
United States or any state or territory thereof or my employer or any of its
directors, officers, employees and agents for any changes to my compensation or
benefits that are required in order to comply with Section 111 of the
Emergency Economic Stabilization Act of 2008, as amended (“EESA”), and rules, regulations, guidance
or other requirements issued thereunder (collectively, the “EESA Restrictions”).

 

I acknowledge that the EESA Restrictions may require modification of
the employment, compensation, bonus, incentive, severance, retention and other
benefit plans, arrangements, policies and agreements (including so-called “golden
parachute” agreements), whether or not in writing, that I have with my employer
or in which I participate as they relate to the period the United States holds
any equity or debt securities of my employer acquired through the TARP Capital
Purchase Program and I hereby consent to all such modifications.  I further acknowledge and agree that if my
employer notifies me in writing that I have received payments in violation of
the EESA Restrictions, I shall repay the aggregate amount of such payments to
my employer no later than fifteen business days following my receipt of such
notice.

 

This waiver includes all claims I may have under the laws of the United
States or any other jurisdiction related to the requirements imposed by the
EESA Restrictions (including without limitation, any claim for any compensation
or other payments or benefits I would otherwise receive absent the EESA
Restrictions, any challenge to the process by which the EESA Restrictions were
adopted and any tort or constitutional claim about the effect of the foregoing
on my employment relationship) and I hereby agree that I will not at any time
initiate, or cause or permit to be initiated on my behalf, any such claim
against the United States, my employer or its directors, officers, employees or
agents in or before any local, state, federal or other agency, court or body.

 

[Remainder of page intentionally
left blank]

 

 

IN WITNESS WHEREOF,
I,                               ,
intending to be legally bound hereby, and for full consideration, have executed
this Waiver this           
day of                     ,
2009.

 

 

	
   

  	
   

  
	
  Print Name:

  	
   

  

 

 

(Signature Page to Waiver)Exhibit 10.4

 

[FIRST BUSEY CORPORATION LETTERHEAD]

 

                      ,
2009

 

[Name of Executive]

[Street Address]

[City, State  Zip]

 

Dear [Insert Name]:

 

First Busey Corporation
(the “Company”) anticipates
entering into a Letter Agreement and Securities Purchase Agreement
(collectively, the “Participation Agreement”)
with the United States Department of Treasury (“Treasury”) that provides for the Company’s participation in
the Treasury’s TARP Capital Purchase Program (the “CPP”). 
If the Company does not participate or ceases at any time to participate
in the CPP, this letter shall be of no further force and effect.

 

For the Company to
participate in the CPP, and as a condition to the closing of the investment
contemplated by the Participation Agreement, the Company is required to
establish specified standards for incentive compensation to its senior
executive officers and to make changes to its compensation arrangements.  To comply with these requirements, and in
consideration of the benefits that you will receive as a result of the
Company’s participation in the CPP, you agree as follows:

 

(1)                                 No Severance Payments.  The Company is prohibiting any payment that
is prohibited by law as a result of the Company’s participation in the
CPP.  Such prohibited payments include,
but are not limited to, severance, golden parachute or other payments related
to the executive’s departure from the Company.

 

(2)                                 Recovery of Bonus and Incentive Compensation.  Any bonus and incentive compensation paid to
you during a CPP Covered Period is subject to recovery or “clawback” by the
Company if the payments were based on materially inaccurate financial
statements or any other materially inaccurate performance metric criteria.

 

(3)                                Compensation Program Amendments.  Each of the Company’s compensation, bonus,
incentive and other benefit plans, arrangements and agreements (including
golden parachute, severance and employment agreements) (collectively, the “Benefit Plans”) with respect to you is
hereby amended to the extent necessary to give effect to provisions (1) and
(2).

 

In addition, the Company is required to review the
Benefit Plans to ensure that they do not encourage senior executive officers to
take unnecessary and excessive risks that threaten the value of the
Company.  To the extent any such review
requires revisions to any of the Benefit Plan with respect to you, you and the
Company agree to negotiate such changes promptly and in good faith.

 

(4)                                 Definitions and Interpretation.  This letter shall be interpreted as follows:

 

·                  “senior
executive officer” means the Company’s “senior executive officers” as defined
in subsection 111(b)(3) of EESA.

 

·                  “golden
parachute payment” is used with same meaning as in Section 111(b)(2)(C) of
EESA.

 

 

·                  “EESA”
means the Emergency Economic Stabilization Act of 2008, as implemented by
guidance or regulation issued by the Department of Treasury and as published in
the Federal Register on October 20, 2008.

 

·                  The
term “Company” includes any entities treated as a single employer with the
Company under 31 C.F.R. § 30.1(b) (as in effect on the Closing Date).  You are also delivering a waiver pursuant to
the Participation Agreement, and, as between the Company and you, the term
“employer” in that waiver will be deemed to mean the Company as used in this
letter.

 

·                  The
term “CPP Covered Period” shall be limited by, and interpreted in a manner
consistent with, 31 C.F.R. § 30.11 (as in effect on the Closing Date).

 

·                  Provisions
(1) and (2) of this letter are intended to, and will be interpreted,
administered and construed to, comply with Section 111 of EESA (and, to
the maximum extent consistent with the preceding, to permit operation of the
Benefit Plans in accordance with their terms before giving effect to this
letter).

 

(5)                                 Miscellaneous.  To the extent not subject to federal law,
this letter will be governed by and construed in accordance with the laws of
the State of Illinois.  This letter may
be executed in two or more counterparts, each of which will be deemed to be an
original.  A signature transmitted by
facsimile will be deemed an original signature.

 

In exchange for your
agreement to the foregoing provisions, if provision (1) above is
applicable to you and, as a result of the application of provision (1), you are
prohibited from receiving the full severance payment to which you are otherwise
entitled pursuant to your employment agreement, the Company hereby agrees that
it shall forfeit its right to enforce any non-competition provisions contained
in your employment agreement.  Notwithstanding
the foregoing, any non-solicitation provisions contained in your employment
agreement shall continue to be fully enforceable by the Company to the same
extent provided in the employment agreement.

 

The Board appreciates the
concessions you are making and looks forward to your continued leadership
during these financially turbulent times.

 

	
   

  	
  Yours sincerely,

  
	
   

  	
   

  
	
   

  	
  FIRST
  BUSEY CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

Intending to be legally
bound, I agree with an

accept the foregoing
terms on the date set

forth below

 

 

	
   

  	
   

  
	
  [Insert
  Executive’s Name]

  	
   

  

 

Date: 
                              ,
2009

 

cc:  [Insert Name], via Hand Delivery

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