Document:

exv10w1

 

Exhibit 10.1

BIRMINGHAM BLOOMFIELD BANCSHARES, INC.

2006 STOCK INCENTIVE PLAN

	1.	 	PURPOSE

     The 2006 Stock Incentive Plan (“Plan”) is intended to promote shareholder value by (a)
enabling Birmingham Bloomfield Bancshares, Inc. (“Company”) and its affiliates to attract and
retain the best available individuals for positions of substantial responsibility; (b) providing
additional incentive to such persons by affording them an equity participation in the Company; (c)
rewarding those directors, executive officers, employees and other non-employee shareholders for
their contributions to the Company or Bank of Birmingham (“Bank”); and (d) promoting the success of
the Company’s business by aligning the financial interests of directors, executive officers and
employees providing personal services to the Company or its affiliates with long-term shareholder
value.

	2.	 	DEFINITIONS

     (A) “Act” means the Securities Exchange Act of 1934, as amended, or any successor
provisions.

     (B) “Affiliate” means (i) any entity that, directly or indirectly, is controlled by the
Company, (ii) an entity in which the Company has a significant equity interest, (iii) an affiliate
of the Company, as defined in Rule 12b-2 promulgated under the Act, (iv) any Subsidiary and (v) any
entity in which the Company has at least twenty percent (20%) of the combined voting power of the
entity’s outstanding voting securities, in each case as designated by the Board of Directors as
being a participant employer in the Plan. For purposes of this Plan and without further
designation by the Board of Directors, the Bank shall be deemed an Affiliate.

     (C) “Bank” means Bank of Birmingham, a Michigan state bank.

     (D) “Board of Directors” means the board of directors of the Company.

     (E) “Change of Control” means:

          (i) the acquisition by any individual, entity or “group,” within the meaning of section
13(d)(3) or section 14(d)(2) of the Act (other than the current members of the boards of directors
of the Company or the Bank or any of their descendants, the Company, the Bank, or any savings,
pension or other benefit plan for the benefit of the employees of the Company or the Bank or
subsidiaries thereof)(a “Person”), of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Act) of voting securities of the Company or the Bank where such acquisition
causes any such Person to own fifty percent (50%) or more of the combined voting power of the
Company’s or Bank’s then outstanding capital stock then entitled to vote generally in the election
of directors;

          (ii) within any twelve-month period, the persons who were directors of the Company immediately
before the beginning of the twelve-month period (the “Incumbent Directors”) shall cease to
constitute at least a majority of the Board of Directors; provided that any individual becoming a
director subsequent to the beginning of such twelve-month whose election, or nomination for
election by the Company’s shareholders, was approved by at least two-thirds of the directors then
comprising the Incumbent Directors shall be considered as though such individual were an Incumbent
Director unless

 

 

such individual’s initial assumption of office occurs as a result of either an actual or
threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated
under the Act);

          (iii) a reorganization, merger, consolidation or other corporate transaction involving the
Company or the Bank, in each case, with respect to which the shareholders of the Company or the
Bank, respectively, immediately prior to such transaction do not, immediately after the
transaction, own more than fifty percent (50%) of the combined voting power of the reorganized,
merged or consolidated company’s then outstanding voting securities;

          (iv) the sale, transfer or assignment of all or substantially all of the assets of the Company
or the Bank to any third party;

          (v) a dissolution or liquidation of the Company or the Bank; or

          (vi) any other transactions or series of related transactions occurring which have
substantially the same effect as the transactions specified in clauses (i) — (v), as determined by
the Board of Directors.

     (F) “Code” means the Internal Revenue Code of 1986, as amended, or any successor provisions.

     (G) “Controlling Participant” means any person who, immediately before an Option is granted to
that particular person, directly or indirectly (within the meaning of section 424 of the Code and
the regulations promulgated thereunder) possesses more than ten percent (10%) of the total combined
voting power of all classes of stock of the Company or any Subsidiary. The determination of
whether an person is a Controlling Participant shall be made in accordance with sections 422 and
424 of the Code, or any successor provisions, and the regulations promulgated thereunder.

     (H) “Committee” means the committee appointed by the Board of Directors to administer the Plan
pursuant to Section 4(A). If the Committee has not been appointed, the Board of Directors in its
entirety shall constitute the Committee. The Board of Directors shall consider the advisability of
whether the members of the Committee shall consist solely of two or more member of the Board of
Directors who are each “outside directors” as defined in Treas. Reg. section 1.162-27(e)(3) as
promulgated by the Internal Revenue Service and “non-employee directors” as defined in Rule
16b-3(b)(3) as promulgated under the Act.

     (I) “Company” means Birmingham Bloomfield Bancshares, Inc., a Michigan corporation and
registered bank holding company, and except as otherwise specified in this Plan in a particular
context, any successor thereto, whether by merger, consolidation, purchase of all or substantially
all of its assets or otherwise.

     (J) “Exercise Price” means the price at which a share of Stock may be purchased by a
Participant pursuant to the exercise of an Option, as specified in the respective Stock Option
Agreement.

     (K) “Fair Market Value” on any date with respect to the Stock means:

          (i) if the Stock is listed on a national securities exchange, the last reported sale price of
a share of the Stock on such exchange or, if no sale occurs on that date, the average of the
reported closing bid and asked prices on that date,

          (ii) if the Stock is otherwise publicly traded, the last reported sale price of a share of the
Stock under the quotation system under which the sale price is reported or, if no sale occurs on
that

 

 

date, the average of the reported closing bid and asked prices on that date under the
quotation system under which the bid and asked prices are reported,

          (iii) if no such last sales price or average of the reported closing bid and asked prices are
available on that date, the last reported sale price of a share of the Stock, or if no sale takes
place, the average of the reported closing bid and asked prices as so reported for the immediately
preceding business day (a) on the national securities exchange on which the Stock is listed or (b)
if the Stock is otherwise publicly traded, under the quotation system under which such data are
reported, or

          (iv) if none of the prices described above is available, the value of a share of the Stock as
reasonably determined in good faith by the Committee in a manner that it believes to be in
accordance with the Code.

In determining the Fair Market Value of a share of Stock in connection with the issuance of an ISO,
the Fair Market Value shall be determined without regard to any restriction, other than a
restriction that, by its terms, will never lapse.

     (L) ”ISO” means an Option (or portion thereof) intended to qualify as an “incentive
stock option” within the meaning of section 422 of the Code, or any successor provision.

     (M) “NQSO” means an Option (or portion thereof) that is not intended to, or does not, qualify
as an “incentive stock option” within the meaning of section 422 of the Code, or any successor
provision.

     (N) “Option” means the right of a Participant to purchase shares of Stock in accordance with
the terms of this Plan and the Stock Option Agreement between such Participant and the Company.

     (O) “Parent” means a parent corporation, if any, with respect to the Company, as defined in
section 424(e) of the Code and regulations promulgated or rulings issued thereunder.

     (P) “Participant” means any person to whom an Option has been granted pursuant to this Plan
and who is a party to a Stock Option Agreement.

     (Q) “Stock” means the common stock of the Company, no par value per share.

     (R) “Stock Option Agreement” means an agreement by and between a Participant and the Company
setting forth the specific terms and conditions under which Stock may be purchased by such
Participant pursuant to the exercise of an Option. Such Stock Option Agreement shall be subject to
the provisions of this Plan (which shall be incorporated by reference therein) and shall contain
such provisions as the Board of Directors, in its sole discretion, may authorize.

     (S) “Subsidiary” means a subsidiary corporation of the Company, as defined in section 424(f)
of the Code and regulations promulgated or rulings issued thereunder.

     (T) “Termination Date” means the date on which the Participant ceased to be an employee of the
Company or any Affiliate; provided however, that with respect to an ISO, it means the date on which
the Participant ceased to be an employee of the Company or any Parent or Subsidiary.

	3.	 	SHARES AVAILABLE UNDER THE PLAN

     (A) Shares Subject to the Plan. Subject to adjustment in accordance with the
provisions of this Section 3, the total number of shares of Stock as to which Options may be
granted shall be 225,000

 

 

shares, all of which may be awardable as ISOs. Stock issued under the Plan may be either
authorized but unissued shares or shares that have been reacquired by the Company. Any shares
issued by the Company in connection with the assumption or substitution of outstanding grants from
any acquired corporation shall not reduce the shares of Stock available for Options under the
Plan.

     (B) Forfeited Awards. In the event that any outstanding Option under the Plan for any
reason expires unexercised, is forfeited or is terminated prior to the end of the period during
which Options may be issued under the Plan, the shares of Stock allocable to the unexercised
portion of such Option that has expired, been forfeited or been terminated shall become available
for future issuance under the Plan.

     (C) Shares Used to Pay Exercise Price and Taxes. Shares of Stock delivered to the
Company to pay the Exercise Price of any Option or to satisfy the Participant’s income tax
withholding obligation shall become available for future issuance under the Plan.

     (D) Adjustments on Changes in Stock. In the event of any change in the outstanding
shares of Stock by reason of any merger, reorganization, consolidation, recapitalization, stock
dividend, stock split, reverse stock split, spinoff, combination or exchange of shares or other
corporate change, the Committee, in its sole discretion, may make such substitution or adjustment,
if any, as it deems to be equitable or appropriate, as to: (i) the maximum number of shares of
Stock that may be issued under the Plan as set forth in Section 3(A); (ii) the number or kind of
shares subject to an Option; (iii) subject to the limitation contained in Section 12, the Exercise
Price applicable to an Option; (iv) any measure of performance that relates to an Option in order
to reflect such change in the Stock and/or (v) any other affected terms of any Option; provided
however, that no adjustment shall occur with respect to an ISO unless: (y) the excess of the
aggregate Fair Market Value of the shares of Stock subject to the ISO immediately after any such
adjustment over the aggregate Exercise Price of such shares is not more than the excess of the
aggregate Fair Market Value of all shares subject to the ISO immediately prior to such adjustment
over the Exercise Price of all shares subject to the ISO; and (z) the new or adjusted ISO does not
grant the Participant additional benefits that the Participant did not previously have.

	4.	 	ADMINISTRATION

     (A) Procedure. The Plan shall be administered, construed and interpreted by the
Committee, as such Committee is from time to time constituted, or any successor committee the Board
of Directors may designate to administer the Plan. The Committee may delegate any of its powers
and duties to appropriate officer(s) of the Company in accordance with guidelines established by
the Committee from time to time.

     (B) Powers of the Committee. Subject to the other provisions of the Plan, the
Committee shall have all powers vested in it by the terms of the Plan as set forth herein, such
powers to include exclusive authority (except as may be delegated as permitted herein): (i) to
select those persons to be granted Options under the Plan; (ii) to determine the type, size and
terms of the Option to be granted to each individual selected; (iii) to modify the terms of any
Option that has been granted; (iv) to determine the time when Options will be granted; (v) to
establish performance objectives; (vi) to determine the Fair Market Value of the Stock under
Section 2(K)(iv); (vii) to interpret the Plan and decide any questions and settle all controversies
or disputes that may arise in connection with the Plan; (viii) to adopt, amend and rescind rules
and regulations relating to the Plan; (ix) to prescribe the form or forms of instruments evidencing
Options and any other instruments required under the Plan and to change such forms, in its sole and
absolute discretion, from time to time; (x) to accelerate or defer (with the consent of the
Participant) the vesting period or exercise date of any Option; (xi) to authorize any person to
execute on behalf of the Company any instrument required to effectuate the grant of an Option
previously granted by the Committee; and (xii) to make all other determinations and perform all
other acts necessary or

 

 

advisable for the administration of the Plan. The Committee (or its delegate as permitted
herein) may correct any defect, supply any omission or reconcile any inconsistency in the Plan or
in any Option in the manner and to the extent that it shall deem desirable to carry the Plan or any
Option into effect.

     (C) Effect of Decision of the Committee and Board of Directors. All decisions,
determinations, actions and interpretations of the Committee (or its delegate as permitted herein)
or the Board of Directors (or its delegate as permitted herein) in the administration of the Plan
shall lie with the Committee and the Board of Directors, respectively, within its sole and absolute
discretion and shall be final, conclusive and binding on all parties concerned; provided that the
Committee or the Board of Directors, as applicable, may, in its sole and absolute discretion,
overrule an action, decision, determination or interpretation of a person to whom it has delegated
authority.

     (D) Liability of Board of Directors or the Committee. No member of the Board of
Directors or Committee or any officer of the Company shall be liable for anything done or omitted
to be done by him, by any other member of the Board of Directors or Committee or any officer of the
Company in connection with the performance of duties under the Plan, except for his own willful
misconduct or as expressly provided by statute. The members of the Board of Directors and
Committee and officers of the Company shall be entitled to indemnification in connection with the
performance of their respective duties under the Plan to the extent provided in the articles of
incorporation or bylaws of the Company or otherwise by law.

	5.	 	ELIGIBILITY

     Consistent with the purposes of the Plan, the Committee shall have the power (except as may be
delegated as permitted herein) to select the employees and other individuals performing services
for, or making contributions to, the Company and its Affiliates who may participate in the Plan and
be granted Options under the Plan. No person who is not an employee of the Company or a Parent or
a Subsidiary shall be eligible to receive an ISO award under the Plan. For purposes of this Plan,
the term “employee” means an individual employed by the Company or a Subsidiary whose income from
those entities is subject to Federal Income Contributions Act (“FICA”) withholding.

	6.	 	TERMS AND CONDITIONS APPLICABLE TO OPTIONS UNDER THE PLAN

     Options granted pursuant to the Plan shall be evidenced by Stock Option Agreements in such
form as the Board of Directors shall, from time to time, approve, which agreements shall in
substance include or incorporate, comply with and be subject to the following terms and conditions
(except as necessary to conform to the requirements of law, including the laws of the jurisdiction
where the Participant resides):

     (A) Medium and Time of Payment. The Exercise Price shall be paid in full at the time
the Option is exercised. The Exercise Price shall be payable either in (i) United States dollars
in cash or by check, bank draft, money order or wire transfer of good funds payable to the Company;
(ii) upon conditions established by the Committee, by delivery of shares of Stock owned by the
Participant for at least six (6) months prior to the date of exercise; or (iii) by a combination of
(i) and (ii); provided, however, that clauses (ii) and (iii) shall not become operable until the
third anniversary of the date that the Bank opens for business.

     (B) Number of Shares. The total number of shares to which each Option pertains shall
be designated in the Stock Option Agreement at the time of grant.

 

 

     (C) Designation of Option. Each Option shall be designated in the Stock Option
Agreement as either an ISO or a NQSO and, in the absence of such designation, shall be deemed to be
a NQSO. In the event that a person is granted concurrently an ISO and a NQSO, such Options shall
be evidenced by separate Stock Option Agreements. However, notwithstanding such designations, to
the extent that (i) the aggregate Fair Market Value (determined as of the time of grant) of the
Stock with respect to which Options designated as ISOs are exercisable for the first time by any
employee during any calendar year (under all plans of the Company and any Subsidiary) exceeds
$100,000, or (ii) an ISO does not meet any other requirement to be an “incentive stock option”
within the meaning of section 422 of the Code, such Options, or portions thereof, shall be treated
as NQSOs. For purposes of this section, Options shall be taken into account in the order in which
they were granted.

     (D) Exercise Price. The Exercise Price per share of Stock under an Option shall be
determined by the Committee in its sole discretion; provided however that the Exercise Price shall
be not less than one hundred percent (100%) of the Fair Market Value on the date that such Option
is granted and, in the case of an ISO granted to a Controlling Participant, the Exercise Price
shall be not less than one hundred ten percent (110%) of the Fair Market Value on the date that
such Option is granted.

     (E) Option Term. The term of an Option shall be fixed by the Committee, in its sole
discretion, in each Stock Option Agreement; provided however that for any Option to qualify as an
ISO, the Option shall expire not more than ten years from the date the Option is granted and, in
the case of a Controlling Participant, not more than five years from the date the Option is
granted.

     (F) Exercise of Options. Subject to the provisions of this Plan and the applicable
Stock Option Agreement, an Option may be exercised at any time during the term of the Option. An
Option shall be deemed exercised when (i) written notice of such exercise, in the form prescribed
by the Committee, has been received by the Company in accordance with the terms of the Option by
the person entitled to exercise the Option and (ii) full payment for the Stock with respect to
which the Option is exercised has been received by the Company in accordance with Section 6(A) and
the Stock Option Agreement. The written notice shall include the number of shares to be exercised
by the Participant. Except as otherwise expressly provided in writing by the Board of Directors,
an Option may not be exercised for a fractional share of Stock.

     (G) Stock Certificates. Promptly upon exercise of an Option, the Company shall issue
(or cause to be issued) certificates evidencing the shares of Stock acquired as a result of the
exercise of the Option. In the event that the exercise of an Option is treated in part as the
exercise of an ISO and in part as the exercise of a NQSO pursuant to Section 6(C) hereof, the
Company shall issue a certificate evidencing the shares of Stock treated as acquired upon the
exercise of an ISO and a separate certificate evidencing the shares of Stock treated as acquired
upon the exercise of a NQSO, and shall identify each such certificate accordingly in its stock
transfer records.

     All certificates for shares of Stock delivered under the Plan pursuant to any Option shall be
subject to such stock transfer orders and other restrictions as the Committee may deem advisable
under the rules, regulations and other requirements of the Securities and Exchange Commission, any
stock exchange upon which the Stock is then listed, and any applicable federal or state securities
laws or regulations, and the Committee may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions.

     (H) Date of Exercise. The Committee may, in its sole discretion, provide that an
Option may not be exercised in whole or in part for any period or periods of time specified by the
Committee. Except as may be so provided, any Option may be exercised in whole at any time, or in
part from time to time, during its term. In the case of an Option not immediately exercisable in
full, the Committee may at any time accelerate the time at which all or any part of the Option may
be exercised.

 

 

     (I) Termination of Service. The Committee may determine, at the time of grant, for
each Option the extent to which the Participant (or his legal representative) shall have the right
to exercise the Option following termination of such Participant’s service to the Company, any
Subsidiary or any Affiliate. Such provisions may reflect distinctions based on the reasons for the
termination of service and any other relevant factors that the Committee may determine. In the
absence of such standards, any Option granted to an employee of the Company or any Affiliate
pursuant to the Plan that has not vested prior to the Termination Date shall expire immediately
upon the Termination Date, and any Option granted to an employee of the Company or any Affiliate
pursuant to the Plan that has vested prior to the Termination Date shall expire three (3) months
following the Termination Date; provided however that if the cessation of Participant’s service is
due to his death or disability (as defined in section 22(e)(3) of the Code), such Option shall
expire one year from the Termination Date.

     (J) Transferability. Except as otherwise permitted by the Committee, Options shall be
nontransferable other than by will or the laws of descent and distribution and shall be exercisable
during the lifetime of the Participant only by the Participant (or in the event of his disability
(as defined in section 22(e)(3) of the Code), by his guardian or legal representative) and after
his death, only by the Participant’s legal representatives, heirs, legatees, or distributees.

     (K) No Rights as a Participant. No person shall, with respect to any Option, be
deemed to have become a Participant, or to have any rights with respect to such Option, unless and
until such person shall have executed a Stock Option Agreement or other instrument evidencing the
Option and delivered a copy thereof to the Company, and otherwise complied with the then applicable
terms and conditions.

     (L) No Rights as a Shareholder. Notwithstanding the exercise of an Option, a
Participant shall have no rights as a shareholder with respect to shares covered by an Option until
the date the certificates evidencing the shares of Stock are issued (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer agent of the
Company). No adjustment will be made for dividends or other rights the record date for which is
prior to the date of issuance. Upon issuance of the certificates evidencing the shares of Stock
acquired upon exercise of an Option, such shares of Stock shall be deemed to be transferred for
purposes of section 421 of the Code and the regulations promulgated thereunder.

     (M) Tax Withholding. As a condition to the exercise of any Option, the Company shall
have the right to require that the Participant exercising the Option (or the recipient of any
shares of Stock) remit to the Company an amount calculated by the Company to be sufficient to
satisfy applicable federal, state, foreign or local withholding tax requirements (or make other
arrangements satisfactory to the Company with regard to such taxes) prior to the delivery of any
certificate evidencing shares of Stock. If permitted by the Company, either at the time of the
grant of the Option or in connection with its exercise, the Participant may satisfy applicable
withholding tax requirements by delivering a number of whole shares of Stock owned by the
Participant for at least six (6) months prior to the date of exercise and having a Fair Market
Value (determined on the date that the amount of tax to be withheld is to be fixed) at least equal
to the aggregate amount required to be withheld; provided, however, that the cashless withholding
feature provided in this sentence shall not become effective until the third anniversary of the
date that the Bank opens for business.

     In the case of an ISO, the Committee may require as a condition of exercise that the
Participant exercising the Option agree to inform the Company promptly of any disposition (within
the meaning of section 424(c) of the Code and the regulations thereunder) of Stock received upon
exercise.

     (N) Change of Control. Unless the Committee shall determine otherwise at the time of
grant with respect to a particular Option, all Options outstanding as of the date of a Change of
Control or an

 

 

agreement to effect a Change of Control, and which are not then exercisable and vested, shall
become fully exercisable and vested to the full extent of the original grant; provided, however,
that prior to the third anniversary of the date that the Bank opens for business, accelerated
vesting shall not apply upon a Change of Control with respect to options held by (i) outside
directors or (ii) executive officers, to the extent that the officers own in the aggregate more
than 10% of the issued and outstanding shares of Stock at the time of the Change of Control. The
determination as to whether a Change of Control or an agreement to effect a Change of Control has
occurred shall be made by the Committee and shall be conclusive and binding.

     (O) Additional Restrictions and Conditions. The Committee may impose such other
restrictions and conditions (in addition to those required by the provisions of this Plan) on any
Option granted hereunder and may waive any such additional restrictions and conditions, so long as
(i) any such additional restrictions and conditions are consistent with the terms of this Plan and
(ii) such waiver does not waive any restriction or condition required by the provisions of this
Plan.

     (P) Repricing. The Committee shall not, without the further approval of the Board of
Directors, (i) authorize the amendment of any outstanding Option to reduce the Exercise Price of
such Option or (ii) grant a replacement Option upon the surrender and cancellation of a previously
granted Option for the purpose of reducing the Exercise Price of such Option. Nothing contained in
this section shall affect the right of the Board of Directors or the Committee to make the
adjustment permitted under Section 9.

	7.	 	AMENDMENT AND TERMINATION OF THE PLAN

     The Committee may amend, alter, suspend, or terminate the Plan or any portion hereof at any
time; provided that no such amendment, alteration, suspension or termination shall be made without
the approval of the shareholders of the Company if such approval is necessary to qualify for or
comply with any tax or regulatory requirement for which or with which the Board of Directors deems
it necessary or desirable to qualify or comply. No amendment, suspension or termination of the
Plan shall adversely affect the right of any Participant with respect to any Option theretofore
granted, as determined by the Committee, without such Participant’s written consent.

     Unless earlier terminated, the Plan shall remain in effect until all shares issuable under the
Plan have been purchased or acquired in accordance with the Plan. In no event may any Options be
granted under the Plan more than ten (10) years after the earlier of the date on which the Plan is
adopted or the date on which the Plan is approved by the shareholders of the Company. Such
termination by lapse of time shall not effect the validity or terms of any Option then outstanding
or the ability of the Committee to amend, alter, adjust, suspend, discontinue or terminate any such
Option or to waive any conditions or rights under any such Option for so long as the Option is
outstanding.

	8.	 	LEGALITY OF GRANT

     The granting of Options under this Plan and the issuance or transfer of Options and shares of
Stock pursuant hereto are subject to all applicable federal and state laws, rules and regulations
and to such approvals by any regulatory or government agency (including, without limitation,
no-action positions of the Securities and Exchange Commission) which may, in the opinion of counsel
for the Company, be necessary or advisable in connection therewith. Without limiting the generality
of the foregoing, no Options may be granted under this Plan and no Options or shares shall be
issued by the Company unless and until in any such case all legal requirements applicable to the
issuance or payment have, in the opinion of counsel for the Company, been complied with. In
connection with any Option or Stock

 

 

issuance or transfer, the person acquiring the shares or the Option shall, if requested by the
Company, give assurance satisfactory to counsel to the Company with respect to such matters as the
Company may deem desirable to assure compliance with all applicable legal requirements.

	9.	 	NO EMPLOYMENT/SERVICE RIGHTS

     Nothing in this Plan or any Stock Option Agreement shall confer upon any person the right to
participate in the benefits of the Plan or to be granted an Option, and there shall be no
obligation to provide uniformity of treatment in connection with the administration of this Plan.
The terms and conditions of Options or Stock Option Agreements need not be the same with respect to
each Participant.

     Nothing in this Plan or any Stock Option Agreement shall be construed as constituting a
commitment, guarantee, agreement or understanding of any kind or nature that the Company or any
Affiliate shall continue to employ, retain or engage any individual (whether or not a Participant).
Neither this Plan nor any Stock Option Agreement executed in accordance with this Plan shall
affect in any way the right of the Company or any Affiliate to terminate the employment or
engagement of any individual (whether or not a Participant) at any time and for any reason
whatsoever and to remove any individual (whether or not a Participant) from any position with the
Company or any Affiliate. No change of a Participant’s duties with the Company or any Affiliate
shall result in a modification of any rights of such Participant under this Plan or any Stock
Option Agreement executed by such Participant.

	10.	 	EFFECTIVE DATE

     This Plan shall become effective upon its approval by the Board of Directors; provided however
that no grant of an Option under this Plan shall qualify as an ISO unless, within one year of the
date the Plan becomes effective, the Plan is approved by the affirmative vote of a majority of the
shareholders of the Company present, in person or by proxy, at a meeting of the shareholders of the
Company. The Committee may grant ISOs subject to the condition that this Plan shall have been
approved by the shareholders of the Company as provided herein.

	11.	 	RESERVATION OF SHARES

     The Company, during the term of this Plan, shall at all times reserve and keep available such
number of shares of Stock as shall be sufficient to satisfy the requirements of the Plan.

	12.	 	MINIMUM CAPITAL REQUIREMENTS

     Notwithstanding any provision of this Plan or any Stock Option Agreement to the contrary, all
Options granted under the Plan shall expire, to the extent not exercised, within 45 days following
the receipt of notice from the Bank’s state or primary federal regulator (“Regulator”) that (i) the
Bank has not maintained its minimum capital requirements (as determined by the Regulator); and (ii)
the Regulator is requiring termination or forfeiture of options. Upon receipt of such notice from
the Regulator, the Company shall promptly notify each Participant that all Options issued under
this Plan have become fully exercisable and vested to the full extent of the grant and that the
Participant must exercise the Option(s) granted to him prior to the end of the 45-day period or
such earlier period as may be specified by the Regulator or forfeit such Option. In case of
forfeiture, no Participant shall have a cause of action, of any

 

 

kind or nature, with respect to the forfeiture against the Company or any Affiliate. Neither
the Company nor any Affiliate shall be liable to any Participant due to the failure or inability of
the Company or any Affiliate to provide adequate notice to the Participant.

	13.	 	ADMINISTRATION OF PLAN

     Notwithstanding any other provision herein to the contrary, this Plan shall be administered in
accordance with the provisions of the Federal Deposit Insurance Corporation’s Statement of Policy
on Applications for Deposit Insurance as such policy relates to stock benefit plans.

	14.	 	GENERAL

     (A) Burden and Benefit. The terms and provisions of this Plan and the Options issued
hereunder shall be binding upon, and shall inure to the benefit of, the Company and each
Participant and any permitted successors and assigns.

     (B) Interpretation. When a reference is made in this Plan to a Section, such
reference will be to a Section of this Plan unless otherwise indicated. The headings contained in
this Plan are for convenience of reference only and will not affect in any way the meaning or
interpretation of this Plan or any Option. Whenever the words “include,” “includes” or “including”
are used in this Plan, they will be deemed to be followed by the words “without limitation.” The
words “hereof,” “herein” and “hereunder” and words of similar import when used in this Plan will
refer to this Plan as a whole and not to any particular provision in this Plan. Each use herein of
the masculine, neuter or feminine gender will be deemed to include the other genders. Each use
herein of the plural will include the singular and vice versa, in each case as the context requires
or as is otherwise appropriate. The word “or” is used in the inclusive sense. Any agreement,
instrument or statute defined or referred to herein or in any agreement or instrument that is
referred to herein means such agreement, instrument or statute as from time to time amended,
modified or supplemented, including (in the case of agreements or instruments) by waiver or consent
and (in the case of statutes) by succession of comparable successor statutes and references to all
attachments thereto and instruments incorporated therein. References to a person are also to its
permitted successors or assigns. No provision of this Plan is to be construed to require, directly
or indirectly, any person to take any action, or omit to take any action, which action or omission
would violate applicable law (whether statutory or common law), rule or regulation.

     (C) Costs and Expenses. All costs and expenses with respect to the adoption,
implementation and administration of this Plan shall be borne by the Company; provided however
that, except as otherwise specifically provided in this Plan or the applicable Stock Option
Agreement between the Company and a Participant, the Company shall not be obligated to pay any
costs or expenses (including legal fees) incurred by any Participant in connection with any Stock
Option Agreement, this Plan or any Option or Stock held by any Participant.

     (D) Unfunded Status of Plan. The Plan is intended to constitute an “unfunded” plan
for long-term incentive compensation. Neither the Plan nor any Option shall create or be construed
to create a trust or separate fund of any kind or a fiduciary relationship between the Company or
any Affiliate and a Participant or any other person. Nothing contained herein shall be construed
to give any Participant any rights with respect to any Option, unexercised or exercised, or any
other matters under this Plan that are greater than those of a general unsecured creditor of the
Company.

 

 

     (E) Governing Law. The validity, construction and effect of the Plan, any rules and
regulations relating to the Plan and any Option granted hereunder shall be determined in accordance
with the laws of the State of Michigan, without reference to the laws that might otherwise govern
under applicable principles of conflicts of law.

     (F) Severability. If any term or other provision of this Plan or any Stock Option
Agreement is held to be illegal, invalid or unenforceable by any rule of law or public policy, such
term or provision shall be fully severable and this Plan or the Stock Option Agreement shall be
construed and enforced as if such illegal, invalid or unenforceable provision were not a part
hereof, and all other conditions and provisions shall remain in full force and effect. Upon such
determination that any term or other provision is invalid, illegal or unenforceable, there shall be
added automatically as a part of this Plan or the Stock Option Agreement a provision as similar in
terms to such illegal, invalid or unenforceable provision as may be possible and still be legal,
valid and enforceable. If any provision of this Plan or any Stock Option Agreement is so broad as
to be unenforceable, the provision shall be interpreted to be only as broad as is enforceable.

     (G) Certain Conflicts. In the event of an irreconcilable conflict between the terms
of the Plan and any Stock Option Agreement, the terms of the Plan shall prevail.

     (H) Notices. Any notice or other communication required or permitted to be made
hereunder or by reason of the provisions of this Plan or any Stock Option Agreement shall be in
writing, duly signed by the party giving such notice or communication and shall be deemed to have
been properly delivered if delivered personally or by a recognized overnight courier service, or
sent by first-class certified or registered mail, postage prepaid, as follows (or at such other
address for a party as shall be specified by like notice): (i) if given to the Company, at its
principal place of business, and (ii) if to a Participant, as provided in his Stock Option
Agreement. Any notice properly given hereunder shall be effective on the date on which it is
actually received by the party to whom it was addressed.

     IN WITNESS WHEREOF, the Company, acting by and through its duly authorized officer, has
executed this Plan on this the                      day of                     , 2007.

	 	 	 	 	 
	 	BIRMINGHAM BLOOMFIELD BANCSHARES

 	 
	 	By:  	 	 
	 	 	Robert Farr, Presidentexv10w2

 

Exhibit 10.2

INCENTIVE STOCK OPTION AWARD AGREEMENT

PURSUANT TO BIRMINGHAM BLOOMFIELD BANCSHARES, INC.

2006 STOCK INCENTIVE PLAN

Participant:

Grant Date: April 23, 2007 (“Grant Date”)

Plan under which Options are Granted: 2006 Stock Incentive Plan (“Plan”)

Type of Options: Incentive Stock Options

Number of Shares to which Options are Granted:

Exercise Price per Share: $10.00

Vesting Schedule: The Options shall become vested in accordance with Schedule 1 hereto.

CERTAIN EARLY DISPOSITIONS OF SHARES PURCHASED UPON EXERCISE OF THIS OPTION
(GENERALLY, SALE OF THE SHARES WITHIN TWO YEARS OF THE GRANT DATE OR WITHIN ONE YEAR
OF EXERCISE OF THE OPTION) MAY RESULT IN LOSS OF “INCENTIVE STOCK OPTION” TREATMENT.
THE COMPANY RECOMMENDS THAT THE PARTICIPANT CONSULT WITH HIS PERSONAL TAX ADVISOR
PRIOR TO EXERCISING ANY OPTIONS.

     IN WITNESS WHEREOF, the Company has executed and made effective this Option as of the Grant
Date.

	 	 	 	 	 
	BIRMINGHAM BLOOMFIELD BANCSHARES, INC.

 	 	 	 
	By:  	
 	 	 	 
	 	Robert Farr, President 	 	 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	PARTICIPANT

[insert address]

[insert address]

 	 
	 	 	 
	 	 	 
	 	 	 

 

 

	 	 	 	 	 

TERMS AND CONDITIONS

TO THE INCENTIVE STOCK OPTION AWARD

PURSUANT TO BIRMINGHAM BLOOMFIELD BANCSHARES, INC.

2006 STOCK INCENTIVE PLAN

     1. Grant of the Option. The Company hereby grants to the Participant the right and
option (“Option”) to purchase the aggregate number of shares of common stock, no par value per
share, of the Company (“Stock”) as set forth on page 1 (such number being subject to adjustment as
provided herein) on the terms and conditions set forth in this Agreement and the Plan. The Option
awarded under this Agreement may be exercised in whole at any time or in part from time to time,
subject to the terms and conditions of this Agreement and the Plan. The Option granted under this
Agreement is intended to qualify as an “incentive stock option” under section 422 of the Internal
Revenue Code of 1986, as amended (“Code”), and shall be so construed. The Participant shall have
no obligation to exercise any Option granted by this Agreement.

     2. Exercise Price. The price per share at which the Participant shall be entitled to
purchase shares of Stock upon the exercise of this Option shall be the Exercise Price per Share set
forth on page 1, subject to adjustment as provided in Paragraph 11 (“Exercise Price”), which
Exercise Price shall be not less than the Fair Market Value of a share of Stock on the date that
the Option is granted and, with respect to a Controlling Participant (as defined in the Plan), not
less than one hundred ten percent (110%) of the Fair Market Value of a share of Stock on the date
that the Option is granted.

     3. Vesting and Term of the Option.

          (a) General. The right to exercise the Option shall vest in the hands of the Participant as
provided for on page 1 of this Agreement. Shares for which Options have vested shall be referred
to as “Vested Shares.” Shares for which Options have not vested shall be referred to as “Nonvested
Shares.” The respective numbers of Vested and Nonvested Shares shall adjust proportionately in
accordance with any adjustments made pursuant to Paragraph 11 of this Agreement. In addition,
shares may become Vested Shares in accordance with Paragraphs 8, 14 and 16.

          (b) Exercisable for Whole Vested Shares Only. Subject to the relevant provisions and
limitations contained herein, the Participant may exercise the Option to purchase all or part of
whole Vested Shares. In no event shall the Participant be entitled to exercise the Option with
respect to Nonvested Shares or a fraction of a Vested Share.

          (c) Expiration. Notwithstanding any other provision contained herein to the contrary,
the unexercised portion of the Option(s), if any, will automatically and without notice expire upon
the earliest of: (i) ten (10) years following the Grant Date and, in the case of a Controlling
Participant, five (5) years from the Grant Date; (ii) the date determined pursuant to Paragraph 8
of this Agreement; and (iii) the date determined pursuant to Paragraph 16 of this Agreement
(“Expiration Date”). An Option will cease to be exercisable with respect to a share of Stock when
the Participant purchases the share.

     4. Method of Exercising Option.

          (a) Subject to the provisions provided herein or incorporated by reference, the Participant
may exercise the Option at any time on or prior to the Expiration Date with respect to all or any
part of the Vested Shares by delivering to the Company, at its principal place of business, a
written notice of exercise in substantially the form attached hereto as Exhibit A, accompanied by
payment to the Company of the Exercise Price multiplied by the number of Vested Shares then being
purchased.

 

 

          (b) The notice of exercise must be signed by the Participant; provided however, that if the
Option is being exercised by a person or persons other than the Participant pursuant to Paragraph
8, the notice of exercise must be signed by such other person or persons and must be accompanied by
proof acceptable to the Company of the legal right of such person or persons to exercise the
Option.

          (c) Upon acceptance of such notice and receipt of payment in full of the purchase price for
the shares of Stock for which the Option is being exercised, the Company shall issue (or cause to
be issued) a certificate evidencing the shares of Stock acquired as a result of the exercise of the
Option. In the event that the exercise of the Option is treated in part as the exercise of an ISO
and in part as the exercise of a NQSO in accordance with Paragraph 15, the Company shall issue a
certificate evidencing the shares of Stock treated as acquired upon the exercise of an ISO and a
separate certificate evidencing the shares of Stock treated as acquired upon the exercise of a
NQSO, and shall identify each such certificate accordingly in its stock transfer records.

          (d) No purported exercise of an Option shall be effective and no shares of Stock shall be
issued to the Participant upon exercise of the Option until: (i) the Exercise Price for the shares
of Stock being purchased is paid in full in the manner provided in this Agreement; (ii) all
applicable taxes required to be withheld have been paid in full; and (iii) the approvals, if any,
of all governmental authorities required in connection with the Option, or the issuance of Shares
pursuant to this Agreement, have been received by the Company.

     5. Method of Payment for Options. The Exercise Price shall be payable either in (i)
United States dollars in cash or by check, bank draft, money order or wire transfer of good funds
payable to the Company; (ii) upon conditions established by the Committee, by delivery of shares of
Stock owned by the Participant for at least six (6) months prior to the date of exercise; or (iii)
by a combination of (i) and (ii); provided, however, that clauses (ii) and (iii) shall not become
operable until the third anniversary of the date that the Bank opens for business.

     6. Tax Withholding. As a condition to the exercise of this Option, the Company shall
have the right to require that the Participant (or the recipient of any shares of Stock) remit to
the Company an amount calculated by the Company to be sufficient to satisfy applicable federal,
state, foreign or local withholding tax requirements (or make other arrangements satisfactory to
the Company with regard to such taxes) prior to the delivery of any certificate evidencing shares
of Stock. If permitted by the Company, either at the time of the grant of the Option or in
connection with its exercise, the Participant may satisfy applicable withholding tax requirements
by delivering a number of whole shares of Stock owned by the Participant for at least six (6)
months prior to the date of exercise and having a Fair Market Value (determined on the date that
the amount of tax to be withheld is to be fixed) at least equal to the aggregate amount required to
be withheld; provided, however, that the cashless withholding feature provided in this sentence
shall not become effective until the third anniversary of the date that the Bank opens for
business.

     7. Notice of Disposition. As a condition to the exercise of this Option, the
Participant agrees to inform the Company promptly of any disposition (within the meaning of section
424(c) of the Code and the regulations thereunder) of Stock received upon exercise of the Option.

     8. Termination of Employment.

          (a) For “Good Cause.” If the Participant’s employment agreement with the Company or
the Bank, dated as of the date of this Agreement (“Employment Agreement”) is terminated for “Good
Cause,” as defined in the Employment Agreement, during the term of this Option, any and all Options
evidenced by this Agreement that have not vested as of the date the Employment Agreement is
terminated shall expire immediately upon the termination thereof; and any and all Options evidenced
by

 

 

this Agreement that have vested as of the date of termination shall be exercisable for the
period of time not to extend beyond the remainder of the term of the Option or three months from
the date of termination, whichever is earlier. Any Option or portion thereof not exercised prior
to such date shall expire at such time unless the Participant dies during such period, in which
case the provisions of Paragraph 8(b) below shall govern.

          (b) Death. Upon the death of the Participant, any and all Options granted to the
Participant pursuant to this Agreement that have not vested as of the date of the Participant’s
death shall expire as of the date of the Participant’s death, and all Options held by the
Participant that have vested as of the date of the Participant’s death may be exercised only by the
Participant’s legal representatives, heirs, legatees, or distributees and only within a period of
twelve (12) months following the date of the Participant’s death, after which time the Options
shall expire.

          (c) Disability. If the Participant ceases to be an employee of the Company or the
Bank during the term of this Option by reason of the Participant’s disability (as defined in
section 22(e)(3) of the Code), any and all Options granted to the Participant pursuant to this
Agreement that have not vested as of the date that the Participant ceases to be an employee shall
expire as of such termination date; provided, however, that the Options held by the Participant
that are exercisable as of the date that the Participant ceases to be an employee may be exercised
only by the Participant or his guardian or legal representative and must be exercised within a
period of twelve (12) months following the date that the Participant ceases to be an employee,
after which time the Options shall expire unless the Participant dies during such period, in which
event the provisions of Paragraph 8(b) shall govern.

          (d) Resignation. Upon the resignation by the Participant as an employee of the
Company or the Bank during the term of this Option, any and all Options evidenced by this Agreement
that have not vested as of the date that the Participant’s resignation becomes effective shall
expire immediately upon the effectiveness thereof; and any and all Options evidenced by this
Agreement that have vested as of the date that the Participant’s resignation becomes effective
shall be exercisable for the period of time not to extend beyond the remainder of the term of the
Option or three months from the date that the Participant’s resignation becomes effective,
whichever is earlier. Any Option or portion thereof not exercised prior to such date shall expire
at such time unless the Participant dies during such period, in which case the provisions of
Paragraph 8(b) shall govern.

          (e) Termination Other Than For “Good Cause.” If the Participant’s employment with the
Company or the Bank is terminated during the term of this Option (i) by the Company or the Bank
other than for “Good Cause” and (ii) other than as a result of Participant’s death, disability or
resignation, all Nonvested Shares shall be deemed to have become fully exercisable and vested to
the full extent of the unexercised portion of the original grant immediately prior to the
termination of Participant’s employment; and any and all such Options shall be exercisable for the
period of time not to extend beyond the remainder of the term of the Option or three months from
the date of termination, whichever is earlier. Any Option or portion thereof not exercised prior
to such date shall expire at such time unless the Participant dies during such period, in which
case the provisions of Paragraph 8(b) shall govern.

     9. Nontransferability. The Option evidenced by this Agreement is nontransferable
other than by will or the laws of descent and distribution and shall be exercisable during the
lifetime of the Participant only by the Participant (or in the event of his disability (as defined
in section 22(e)(3) of the Code), by his guardian or legal representative) and after his death,
only by the Participant’s legal representatives, heirs, legatees, or distributees.

     10. Special Limitation on Exercise. Notwithstanding anything herein to the contrary,
no purported exercise of this Option shall be effective without the approval of the Committee,
which shall

 

 

be a condition to the exercise of this Option and may be withheld to the extent that the
exercise, either individually or in the aggregate together with the exercise of other previously
exercised stock options and/or offers and sales pursuant to any prior or contemplated offering of
securities, would, in the sole and absolute judgment of the Committee, require the filing of a
registration statement with the United States Securities and Exchange Commission or with the
securities commission of any state. If a registration statement is not in effect under the
Securities Act of 1933 or any applicable state securities law with respect to the shares of Stock
purchasable or otherwise deliverable under the Option, the Participant (i) shall deliver to the
Company, prior to the exercise of the Option or as a condition to the delivery of Stock pursuant
to the exercise of the Option, such information, representations and warranties as the Company may
reasonably request in order for the Company to be able to satisfy itself that the shares of Stock
are being acquired in accordance with the terms of an applicable exemption from the securities
registration requirements of applicable federal and state securities laws and (ii) shall agree that
the shares of Stock so acquired will not be disposed of except pursuant to an effective
registration statement, unless the Company shall have received an opinion of counsel that such
disposition is exempt from such requirement under the Securities Act of 1933 and any applicable
state securities law.

     11. Adjustments on Changes in Shares. In the event of any change in the outstanding
shares of Stock by reason of any merger, reorganization, consolidation, recapitalization, stock
dividend, stock split, reverse stock split, spinoff, combination or exchange of shares or other
corporate change, the Committee, in its sole discretion, may make such substitution or adjustment,
if any, as it deems to be equitable or appropriate, as to (i) the number or kind of shares subject
to the Option; (ii) subject to the limitation contained in Paragraph 17, the Exercise Price
applicable to the Option; (iii) any measure of performance that relates to the Option in order to
reflect such change in the Stock and/or (iv) any other affected terms of the Option.

     12. Amendment and Termination. Subject to the terms and provisions of the Plan, this
Agreement may be amended or terminated only by a written agreement executed by the Company and the
Participant. The amendment or termination of the Plan shall not operate to modify the terms and
conditions of this Agreement or any Option evidenced by this Agreement without the Participant’s
consent, and, notwithstanding the termination of the Plan, such Agreement and Option shall be
construed in accordance with the substantive provisions of the Plan as necessary to give effect to
this Agreement or any Option still in existence.

     13. Legend on Stock Certificates. Certificates evidencing the shares of Stock issued
upon exercise of an Option, to the extent appropriate at the time, shall have noted conspicuously
on the certificates a legend intended to give all persons full notice of the existence of the
conditions, restrictions, rights and obligations set forth herein and in the Plan.

     14. Change of Control. In the event of a Change of Control (as defined in the Plan)
or an agreement to effect a Change of Control, all Nonvested Shares shall become fully exercisable
and vested to the full extent of the unexercised portion of the original grant; provided, however,
that prior to the third anniversary of the date that the Bank opens for business, accelerated
vesting shall not apply upon a Change of Control with respect to options held by (i) outside
directors or (ii) executive officers, to the extent that the officers own in the aggregate more
than 10% of the issued and outstanding shares of Stock at the time of the Change of Control. The
determination as to whether a Change of Control or an agreement to effect a Change in Control has
occurred shall be made by the Committee and shall be conclusive and binding.

     15. Qualified Status of Option. To the extent that the aggregate Fair Market Value
(determined as of the time of grant) of the shares of Stock with respect to which Options
designated as Options are exercisable for the first time by any employee during any calendar year
(under all plans of

 

 

the Company) exceeds $100,000, that portion shall be treated as a non-qualified stock option.
For purposes of this section, Options shall be taken into account in the order in which they were
granted.

     16. Minimum Capital Requirements. Notwithstanding any provision of this Agreement to
the contrary, the Option granted under the Agreement shall expire, to the extent not exercised,
within 45 days following the receipt of notice from the Company’s or Bank’s state or primary
federal regulator (“Regulator”) that (i) the Company or the Bank has not maintained its minimum
capital requirements (as determined by the Regulator) and (ii) the Regulator is requiring
termination or forfeiture of options. Upon receipt of such notice from the Regulator, the Company
shall promptly notify each Participant that the Options issued under this Agreement have become
fully exercisable and vested to the full extent of the grant and that the Participant must exercise
the Option(s) granted to him prior to the end of the 45-day period or such earlier period as may be
specified by the Regulator or forfeit such Option. In case of forfeiture, no Participant shall
have a cause of action, of any kind or nature, with respect to the forfeiture against the Company,
the Bank or any of their respective officers or directors. Neither the Company nor any Affiliate
shall be liable to any Participant due to the failure or inability of the Company or any Affiliate
to provide adequate notice to the Participant.

     17. Repricing. The Committee shall not, without the further approval of the Board of
Directors, (i) authorize the amendment of this Option to reduce the Exercise Price of this Option
or (ii) grant a replacement Option upon the surrender and cancellation of this Option for the
purpose of reducing the Exercise Price of this Option. Nothing contained in this section shall
affect the right of the Committee to make any adjustment permitted under Paragraph 11.

     18. No Rights as a Shareholder. Notwithstanding the exercise of an Option, a
Participant shall have no rights as a shareholder with respect to shares covered by an Option until
the date the certificates evidencing the shares of Stock are issued (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer agent of the
Company). No adjustment will be made for dividends or other rights the record date for which is
prior to the date of issuance. Upon issuance of the certificates evidencing the shares of Stock
acquired upon exercise of an Option, such shares of Stock shall be deemed to be transferred for
purposes of section 421 of the Code and the regulations promulgated thereunder.

     19. Interpretation. When a reference is made in this Agreement to a Paragraph,
Exhibit or Schedule, such reference will be to a Paragraph of, or Exhibit or Schedule to, this
Agreement unless otherwise indicated. The headings contained in this Agreement are for convenience
of reference only and will not affect in any way the meaning or interpretation of this Agreement or
any Option. Whenever the words “include,” “includes” or “including” are used in this Agreement,
they will be deemed to be followed by the words “without limitation.” The words “hereof,” “herein”
and “hereunder” and words of similar import when used in this Agreement will refer to this
Agreement as a whole and not to any particular provision in this Agreement. Each use herein of the
masculine, neuter or feminine gender will be deemed to include the other genders. Each use herein
of the plural will include the singular and vice versa, in each case as the context requires or as
is otherwise appropriate. The word “or” is used in the inclusive sense. Any agreement, instrument
or statute defined or referred to herein or in any agreement or instrument that is referred to
herein means such agreement, instrument or statute as from time to time amended, modified or
supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the
case of statutes) by succession of comparable successor statutes and references to all attachments
thereto and instruments incorporated therein. References to a person are also to its permitted
successors or assigns. No provision of this Agreement is to be construed to require, directly or
indirectly, any person to take any action, or omit to take any action, which action or omission
would violate applicable law (whether statutory or common law), rule or regulation.

 

 

     20. Governing Law. The validity, construction and effect of this Agreement and any
Option granted hereunder shall be determined in accordance with the laws of the State of Michigan,
without reference to the laws that might otherwise govern under applicable principles of conflicts
of law.

     21. Notices. Any notice or other communication required or permitted to be made
hereunder or by reason of the provisions of this Agreement shall be in writing, duly signed by the
party giving such notice or communication and shall be deemed to have been properly delivered if
delivered personally or by a recognized overnight courier service, or sent by first-class certified
or registered mail, postage prepaid, as follows (or at such other address for a party as shall be
specified by like notice): (i) if given to the Company, at its principal place of business, and
(ii) if to the Participant, at the address set forth on page 1. Any notice properly given
hereunder shall be effective on the date on which it is actually received by the party to whom it
was addressed; provided however, that for a notice of exercise to be effective, such notice must be
in conformity with the Plan and this Agreement, as reasonably determined by the Committee, in its
discretion.

     22. Entire Agreement. Subject to the terms and conditions of the Plan, this Agreement
sets forth the entire agreement and understanding of the parties with regard to the Options granted
hereby and supersedes all prior agreements, arrangements and understandings relating to the subject
matter hereof.

     23. Incorporation By Reference; Relationship to Plan. This Agreement is being
executed and delivered pursuant to the Plan, all of the terms of which are incorporated by
reference into, and made a part of, this Agreement. To the extent not specifically provided in
this Agreement or otherwise required by context, all capitalized terms used in this Agreement but
not defined herein shall have the same meanings ascribed to them in the Plan. In the event of an
irreconcilable conflict between the terms of the Plan and this Agreement, the terms of the Plan
shall prevail. The Company shall provide a copy of the Plan to the Participant upon written
request to the Company at its principal place of business. By the execution of this Agreement, the
Participant acknowledges this Agreement and the Options are subject to the terms and conditions of
the Plan. In the event of a conflict between this Agreement and the Plan, the terms of the Plan
shall be controlling.

 

 

EXHIBIT A

NOTICE OF EXERCISE OF

STOCK OPTION TO PURCHASE

COMMON STOCK OF

BIRMINGHAM BLOOMFIELD BANCSHARES, INC.

	 	 	 	 	 
	Participant Name:	 	 	 
	
Address	 	 	 	 
	 	 	 	 
	
Date
	 	 	 	 
	 

Birmingham Bloomfield Bancshares, Inc.

33583 Woodward Avenue

Birmingham, Michigan 48009

Attn: President

	 	 	 	Re: Exercise of Incentive Stock Option

Gentlemen:

     Pursuant to the provisions of Birmingham Bloomfield Bancshares, Inc. 2006 Stock Incentive
Plan (“Plan”), I hereby give notice to Birmingham Bloomfield Bancshares, Inc. (the “Company”) of my
election to exercise options granted to me to purchase                        shares of common stock of the
Company under the Incentive Stock Option Award Agreement (“Agreement”) dated as of                       .
The purchase shall take place as of                       ,               (“Exercise Date”). All capitalized terms
used, but not otherwise defined, herein shall have the meanings given them in the Agreement.

     On or before the Exercise Date, I will pay the applicable purchase price as follows:

     o     by delivery of cash or check, bank draft, money order or wire transfer of good funds
payable to the Company in the amount of $                      , which amount represents the full purchase
price of the shares of Stock to be issued upon exercise hereof.

     o     subject to the terms of the Plan and the Agreement and if permitted by the Committee, and
upon any such conditions imposed by the Committee, by delivery of                        whole shares of Stock
owned by me for at least six (6) months prior to the Exercise Date.

     o     by delivery of cash or check, bank draft, money order or wire transfer of good funds
payable to the Company in the amount of $                      , which amount represents a portion of the
purchase price of the shares of Stock to be issued upon exercise hereof and, subject to the terms
of the Plan and the Agreement and if permitted by the Committee, and upon any such conditions
imposed by the Committee, by delivery of                      shares of Stock owned by me for at least six (6)
months prior to the Exercise Date.

     The required federal, state, foreign and local income tax withholding obligations, if any, on
the exercise of the Option shall be satisfied on or before the Exercise Date in the manner provided
in the Agreement. As soon as the stock certificate is registered in my name, please deliver it to
me at address set forth above.

 

 

     Unless the shares to be issued upon the exercise of the Option evidenced by this notice are
registered for issuance to and resale by me pursuant to an effective registration statement on Form
S-8 (or successor form) filed under the Securities Act of 1933, as amended (“Securities Act”), I
hereby represent, warrant, covenant, and agree with the Company as follows:

     1. The shares of Stock being acquired by me will be acquired for my own account without the
participation of any other person, with the intent of holding the Stock for investment and without
the intent of participating, directly or indirectly, in a distribution of the Stock and not with a
view to, or for resale in connection with, any distribution of the Stock, nor am I aware of the
existence of any distribution of the Stock.

     2. I am not acquiring the Stock based upon any representation, oral or written, by any person
with respect to the future value of, or income from, the Stock but rather upon an independent
examination and judgment as to the prospects of the Company.

     3. The Stock was not offered to me by means of publicly disseminated advertisements or sales
literature, nor am I aware of any offers made to other persons by such means.

     4. I am able to bear the economic risks of the investment in the Stock, including the risk of
a complete loss of my investment therein.

     5. I understand and agree that the Stock will be issued and sold to me without registration
under any federal or state law relating to the registration of securities for sale, and will be
issued and sold in reliance on the exemptions from registration under federal and applicable state
securities laws.

     6. The Stock cannot be offered for sale, sold or transferred by me other than pursuant to an
effective registration under the Securities Act or in a transaction otherwise in compliance with
the Securities Act and evidence satisfactory to the Company of compliance with the applicable
securities laws of other jurisdictions. The Company shall be entitled to rely upon an opinion of
counsel satisfactory to it with respect to compliance with the above laws.

     7. The Company will be under no obligation to register the Stock or to comply with any
exemption available for sale of the Stock without registration or filing, and the information or
conditions necessary to permit routine sales of securities of the Company under Rule 144 under the
Securities Act are not now available and no assurance has been given that it or they will become
available. The Company is under no obligation to act in any manner so as to make Rule 144 available
with respect to the Stock.

     8. I have had complete access to and the opportunity to review and make copies of all material
documents related to the business of the Company, including, but not limited to, contracts,
financial statements, tax returns, leases, deeds and other books and records. I have examined such
of these documents as I wished and am familiar with the business and affairs of the Company. I
realize that the purchase of the Stock is a speculative investment.

     9. I have had the opportunity to ask questions of and receive answers from the Company and any
person acting on its behalf and to obtain all material information reasonably available with
respect to the Company and its affairs. I have received all information and data with respect to
the Company which I have requested and which I have deemed relevant in connection with the
evaluation of the merits and risks of my investment in the Company.

 

 

     10. I have such knowledge and experience in financial and business matters that I am capable
of evaluating the merits and risks of the purchase of the Stock hereunder and I am able to bear the
economic risk of such purchase.

     11. The agreements, representations, warranties and covenants made by me herein extend to and
apply to all of the Stock issued to me pursuant to the Agreement, and the Company is entitled to
rely on these agreements, representations, warranties and covenants in issuing the shares of Stock
upon the exercise of the Option evidenced by this notice. Acceptance by me of the certificate
representing such Stock shall constitute a confirmation by me that all such agreements,
representations, warranties and covenants made herein shall be true and correct at that time.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	
 	 
	 	 	 
	 	 	 
	 

	 	 	 	 	 
	AGREED TO AND ACCEPTED:
 	 	 	 
	 	 	 	 	 
	BIRMINGHAM BLOOMFIELD BANCSHARES, INC.
 	 	 	 
	 	 	 	 	 
	By:	 	 	 	 
	 	 	 	 	 
	Name:	 	 	 	 
	 	 	 	 	 
	Title:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	Date:	 	 	 	 

 

 

SCHEDULE 1

VESTING SCHEDULE

INCENTIVE STOCK OPTION AWARD ISSUED PURSUANT TO THE

BIRMINGHAM BLOOMFIELD BANCSHARES, INC. 2006 STOCK INCENTIVE PLAN

     Except as otherwise expressly provided in the Agreement, the Options shall become vested in
accordance with the following schedule:

	 	 	 	 	 
	 	 	Total Number of Shares	 
	Date	 	Exercisable

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]