Document:

Exhibit 10.4b

 

EMPLOYMENT
AGREEMENT

 

EMPLOYMENT
AGREEMENT
(this “Agreement”) dated August 18,
2010 by and between, BankUnited, a federally chartered thrift institution (“NewBank”) and Douglas Pauls (“Executive”).

 

WHEREAS, NewBank and Executive
previously entered into an Employment Agreement dated September 1, 2009
(the “Original Agreement”);
and

 

WHEREAS, NewBank and Executive
desire to amend and restate the Original Agreement in its entirety.

 

NOW THEREFORE, in
consideration of the premises and mutual covenants herein and for other good
and valuable consideration, the parties agree as follows:

 

1.       Term
of Employment.

 

Subject to the provisions of Section 7
of this Agreement, Executive shall continue to be employed by NewBank for a
period that commenced on September 1, 2009 (the “Effective Date”) and will end on
the third anniversary of the Effective Date (the “Employment Term”), on the terms and subject to the conditions
set forth in this Agreement; provided, however, that commencing
on the third anniversary of the Effective Date and on each anniversary
thereafter (each an “Extension Date”),
the Board of Directors of NewBank (the “NewBank Board”) may elect to extend the Employment Term for an
additional one-year period, unless NewBank or Executive provides the other
party with Notice (as defined in Section 12(j)) 90 days prior to the next
Extension Date that the Employment Term shall not be so extended.

 

2.       Position.

 

(a)        During
the Employment Term, Executive shall serve as Senior Executive Vice President
and Chief Financial Officer of NewBank. 
Executive shall report directly to the Chief Executive Officer of
NewBank and shall perform the duties, undertake the responsibilities and
exercise the authority customarily performed, undertaken and exercised by persons
situated in a similar executive capacity in a company the size and nature of
NewBank.  If requested, Executive shall
also serve as an officer or member of the board of directors of NewBank’s
subsidiaries, in each case, without additional compensation.

 

(b)        During
the Employment Term, Executive will devote Executive’s business time and best
efforts to the performance of Executive’s duties hereunder and will not engage
in any other business, profession or occupation for compensation or otherwise
which would conflict or materially interfere with the rendition of such
services either directly or indirectly, without the prior written consent of
the NewBank Board; provided that nothing herein shall preclude
Executive, (i) from engaging in charitable and civic activities, including
accepting appointment to or continuing to serve on any board of directors or
trustees of any charitable organization or (ii) from continuing to, or
subject to the prior approval of the NewBank Board, from accepting appointment
to serve on any board of directors or trustees of any business corporation; provided  in each case, and in the aggregate, that such
activities do not conflict or interfere with the performance of Executive’s
duties hereunder or conflict with Sections 8 and 9.

 

 

performance of Executive’s
duties hereunder or conflict with Sections 8 and 9.

 

3.       Compensation.

 

(a)        Base
Salary.

 

During the Employment Term,
NewBank shall pay Executive a base salary at the annual rate of $552,500,
payable in regular installments in accordance with NewBank’s usual payment
practices.  Executive’s base salary may
be increased (but not decreased) as may be determined from time to time in the
sole discretion of the NewBank Board. 
Executive’s annual base salary, as in effect from time to time, is
hereinafter referred to as the “Base
Salary.”

 

(b)        Discretionary
Annual Bonus.

 

During each full fiscal year
during the Employment Term, Executive shall be eligible to earn a discretionary
annual bonus award (an “Annual Bonus”)
in such amount, if any, as may be determined in the sole and absolute
discretion of the NewBank Board, provided that it is the expectation of
the parties that no such Annual Bonus shall be awarded to Executive during the
Employment Term.

 

(c)        Relocation
Payment.

 

In connection with relocation
expenses Executive is expected to incur in connection with his employment
hereunder, NewBank shall pay Executive an amount equal to $42,000, which amount
shall be paid to Executive, in a cash lump sum payment, on November 1,
2009; provided, that Executive is still employed by New Bank on such
date.

 

4.       Equity
Arrangements.

 

As of the Effective Date or as
soon as practicable thereafter, the Company shall enter into arrangements with
regard to Executive’s equity arrangements with the Company.

 

5.       Employee
Benefits.

 

During the Employment Term,
Executive shall be entitled to participate in NewBank’s employee benefit plans
(other than annual bonus and incentive plans) as in effect from time to time on
the same basis as those benefits are generally made available to other senior
executives of NewBank (the “Benefit
Plans”).  During the
Employment Term, Executive shall also be eligible to participate in an excess
401(k) plan and NewBank shall provide Executive with an automobile, up to
a cost of $1,250 per month for Executive’s use (such excess 401(k) plan
participation and provision of an automobile, together with the Benefit Plans,
collectively, the “Employee Benefits”).

 

6.       Business
Expenses.

 

During the Employment Term and
in accordance with NewBank policies, Executive shall be entitled to be
reimbursed for reasonable and customary business expenses incurred by Executive
in connection with the performance of Executive’s duties hereunder.

 

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7.       Termination.

 

The Employment Term and
Executive’s employment hereunder may be terminated by NewBank at any time and
for any reason upon at least 30 days’ advance Notice to Executive (provided,
however, that a termination with Cause (as defined below) shall be effective
immediately, subject to any applicable procedures set forth in the definition
of Cause) and by Executive upon at least 30 days’ advance Notice of any such
resignation of Executive’s employment, other than as a result of Executive’s
death.  Notwithstanding any other
provision of this Agreement, the provisions of this Section 7 shall
exclusively govern Executive’s rights upon termination of employment with
NewBank and its affiliates (except with respect to any equity arrangements,
which shall be exclusively governed by the terms of such equity arrangements).

 

(a)        By
NewBank with Cause or By Executive other than as a result of Good Reason.

 

(i)         The Employment Term and
Executive’s employment hereunder may be terminated by NewBank with Cause and
shall terminate automatically upon the effective date of Executive’s
resignation other than for Good Reason (as defined in Section 7(c)(ii)), provided
that (as set forth above) Executive will be required to give NewBank at least
30 days’ advance Notice of a such a resignation.

 

(ii)        For purposes of this
Agreement, “Cause” shall
mean Executive’s: (A) Personal Dishonesty, (B) Incompetence and
Willful Misconduct, (C) willful or intentional failure to perform
Specified Duties, (D) willful violation of any law, rule, or regulation
(other than Excluded Offenses) or final cease-and-desist order (it being
understood that unless Executive is indicted or charged by a court of competent
jurisdiction with the applicable violation, the NewBank Board shall have the
burden of proving the occurrence thereof by clear and convincing evidence), or (E) willful
and material breach of any Material Provision of the Agreement. Notwithstanding
the above, in each case, “Cause” shall cease to exist for an event on the one
hundred eightieth (180th)
day following the later of (i) its occurrence or (ii) the actual
knowledge thereof by a majority of the NewBank Board (not including Executive
or any other employee of the Company and its subsidiaries, if applicable) that
the conduct has occurred and, if applicable, such conduct has resulted in the
requisite consequences required hereunder, unless NewBank has given Executive a
Notice thereof prior to such date. A termination of Executive shall not be
deemed to be with “Cause” unless and until there shall have been delivered to
Executive a copy of a finding approved by a majority of the NewBank Board (or,
in the case of clause (C), the Board of Directors of the Company (the “Company Board”) (in each case, not
including Executive or any other employee of the Company or its subsidiaries,
if applicable), concluding that, in the good faith opinion of such majority,
Executive has engaged in the conduct described in one or more of the clauses
above, specifying the particulars thereof in reasonable detail and demonstrating
that no cure by Executive was effected following giving Executive thirty (30)
days to cure such conduct after Notice by NewBank to Executive of such conduct,
or, in the case of clause (B) above, to cure the negative impact of such
conduct after Notice by NewBank to Executive of such conduct, or in the NewBank
Board’s good faith reasonable judgment, no cure is possible at such time (it
being understood that the matters in clauses

 

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(A) and
(D) of this definition shall not be subject to any opportunity to cure)
(such notice, a “Cause Notice”).
Notwithstanding any provision herein to the contrary, no act, or failure to
act, shall be deemed willful, intentional or grossly negligent if Executive can
demonstrate that Executive acted in a good faith belief that such action was in
the best interests of the Company and its subsidiaries.

 

(iii)       For purposes of this
Agreement, “Excluded Offenses”
shall include any motor vehicle related offenses and any other violation of any
law, rule, or regulation that does not constitute a felony.

 

(iv)       For purposes of this
Agreement, “Personal Dishonesty”
shall mean Executive’s theft, embezzlement, fraud or similar conduct with
respect to the Company or any of its subsidiaries or its or their property
(other than de minimis property).

 

(v)        For purposes of this
Agreement, “Incompetence and Willful
Misconduct” shall mean Executive’s willful, intentional or gross
misconduct in connection with his duties to the Company or any of its
subsidiaries (other than such failure resulting from Executive’s Disability)
that results in material adverse harm to the Company and its subsidiaries,
taken as a whole.

 

(vi)       For purposes of this
Agreement, “Specified Duties”
shall mean Executive’s duty to follow lawful and reasonable orders of the
Company Board relating to a determination by the Company Board to effect an
Exit Event or an Initial Public Offering (each as defined in the Amended and
Restated Limited Liability Company Agreement of the Company, dated May 21,
2009, among the Company and its members as it may be amended, supplemented or
modified from time to time (the “LLC
Agreement”)) or other order, the failure of which to follow, could
reasonably be expected to materially and adversely impact the Company and its
subsidiaries taken as a whole (other than such failure resulting from Executive’s
Disability).

 

(vii)      For purposes of this
Agreement, “Material Provision”
shall mean Sections 8 and 9 of this Agreement.

 

(viii)     If Executive’s employment
is terminated by NewBank with Cause (or Executive resigns at a time when
grounds for Cause exist, provided that the NewBank Board shall have
delivered a Cause Notice to Executive within ten (10) business days of
such termination of employment), or Executive voluntarily resigns without Good
Reason, Executive shall be entitled to receive:

 

(A)  the
Base Salary accrued through the date of termination, payable within fifteen
days following the date of such termination;

 

(B)   any
Annual Bonus awarded by the NewBank Board, but unpaid, as of the date of
termination for the immediately preceding fiscal year, paid in accordance with Section 3(b) (except
to the extent payment is otherwise deferred pursuant to any applicable deferred
compensation arrangement, in which case such amount shall be paid in full at
the earliest such time as is provided under

 

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such arrangement); and

 

(C)   such
fully vested and non-forfeitable Employee Benefits, if any, as to which Executive
may be entitled under the employee benefit plans of NewBank (the amounts
described in clauses (A) through (C) hereof being referred to as the “Accrued Rights”).

 

Following such termination of
Executive’s employment by NewBank with Cause or voluntary resignation by
Executive without Good Reason, except as set forth in this Section 7(a)(viii),
Executive shall have no further rights to any compensation or any other
benefits under this Agreement.

 

(b)        Disability
or Death.

 

(i)  The Employment Term and Executive’s
employment hereunder shall terminate upon Executive’s death and may be
terminated by NewBank by reason of Executive’s Disability.  The term “Disability” shall mean: Executive’s inability, for a period of
six (6) consecutive months or for an aggregate of nine (9) months in
any twelve (12) consecutive month period, to perform Executive’s employment
duties hereunder as a result of Executive’s becoming physically or mentally
incapacitated.  Any question as to the
existence of such Disability of Executive as to which Executive and NewBank
cannot agree shall be verified in writing by a physician selected by the
NewBank Board and Executive jointly (or if they cannot agree, a physician
selected by the NewBank Board and reasonably acceptable to Executive).  The determination by such physician of
Disability that is delivered made in writing to NewBank and Executive shall be
final and conclusive for all purposes of this Agreement.

 

(ii)  Upon termination of Executive’s
employment hereunder by reason of either Disability or death, Executive or
Executive’s estate (as the case may be) shall be entitled to receive the
Accrued Rights.  In addition, upon
termination of Executive’s employment hereunder by reason of either Disability
or death, Executive (to the extent applicable) and Executive’s eligible
dependents (to the extent covered under such plan immediately prior to such
termination) shall be entitled to receive continued coverage under NewBank’s
group health plans (or to the extent such coverage is not permissible under the
terms of such plan(s), comparable coverage), at NewBank’ sole expense, for six
months from Executive’s date of termination of employment with NewBank as a
result of Executive’s Disability or death (such period, the “Coverage Period”). The COBRA health
care continuation coverage period under Section 4980B of the Code, or any
replacement or successor provision of United States tax law, shall run
concurrently with the Coverage Period.

 

Following
Executive’s termination of employment due to death or Disability, except as set
forth in this Section 7(b)(ii), Executive shall have no further rights to
any compensation or any other benefits under this Agreement.

 

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(c)        By
NewBank without Cause or Voluntary Resignation by Executive for Good Reason.

 

(i)         The Employment Term and
Executive’s employment hereunder may be terminated by NewBank without Cause or
voluntarily by Executive for Good Reason.

 

(ii)        For purposes of this
Agreement, “Good Reason”
shall mean: (A) a material reduction in Executive’s Base Salary; (B) a
change in Executive’s title, or a material diminution in Executive’s reporting
relationship, duties or responsibilities (other than as a result of Cause or
Disability); or (C) the failure of NewBank or its subsidiaries to pay any
compensation to Executive when due; provided, however, in each
case, that no such event shall constitute “Good Reason” unless Executive
notifies NewBank in writing of the existence of the event constituting Good
Reason within sixty (60) days of the occurrence thereof and the event
constituting Good Reason is not cured within thirty (30) days from the receipt
of such Notice to cure.

 

(iii)       If Executive’s employment
is terminated by NewBank without Cause (other than by reason of death or
Disability) or if Executive resigns for Good Reason, Executive shall be
entitled to receive:

 

(A)  the
Accrued Rights;

 

(B)   a
payment of an amount equal to the product of (i) the lesser of
(a) the number of completed calendar months, rounded down to the nearest
whole month, that have elapsed between the Effective Date and the date of
termination and (b) twelve (12), and (ii) the monthly Base Salary,
which amount shall be payable to Executive in a lump sum within 60 days
following Executive’s termination of employment; provided that the
aggregate amount described in this clause (B) shall be reduced by the
present value of any other cash severance benefits payable to Executive under
any other plans, programs or arrangements of NewBank or its affiliates; and

 

(C)   continued
coverage under NewBank’s group health plans (or to the extent such coverage is
not permissible under the terms of such plan(s), comparable coverage) for
Executive and Executive’s dependents (to the extent covered under such plan
immediately prior to such termination), at NewBank’s sole expense, until the
earlier of (i) six months from Executive’s date of termination of
employment with NewBank and (ii) the date Executive is or becomes eligible
for comparable coverage under health plans of another employer (such period the
“Continued Coverage Period”).
The COBRA health care continuation coverage period under Section 4980B of
the Code, or any replacement or successor provision of United States tax law,
shall run concurrently with the Continued Coverage Period.

 

Amounts payable to Executive under subparagraphs (B) and
(C) above, are subject to Executive providing a release of all claims to
NewBank and its affiliates in the form attached hereto as Exhibit A
(with any changes necessary to 

 

6

 

comply with applicable law and/or make the release
legally enforceable in the reasonable judgment of NewBank) no later than the 59th day following termination of
employment (and NewBank may, at its sole election, defer the payment of any
such amount until the 60th day following termination of employment).
Following Executive’s termination of employment by NewBank without Cause (other
than by reason of Executive’s death or Disability) or by Executive’s resignation
for Good Reason, except as set forth in this Section 7(c)(iii), Executive
shall have no further rights to any compensation or any other benefits under
this Agreement.

 

(d)        Non-Renewal
of Employment Term by Executive.  In the event Executive elects not to extend
the Employment Term pursuant to Section 1, unless Executive’s employment
is earlier terminated pursuant to paragraphs (a), (b) or (c) of this Section 7,
the expiration of the Employment Term and Executive’s termination of employment
hereunder shall be deemed to occur on the close of business on the day
immediately preceding the next scheduled Extension Date and Executive shall be
entitled to receive the Accrued Rights. 
Following such termination of Executive’s employment under this Section 7(d),
except as set forth in this Section 7(d), Executive shall have no further
rights to any compensation or any other benefits under this Agreement.

 

(e)        Continued
Employment Beyond the Expiration of the Employment Term.  Unless the parties otherwise
agree in writing, continuation of Executive’s employment with NewBank beyond
the expiration of the Employment Term shall be deemed an employment at-will and
shall not be deemed to extend any of the provisions of this Agreement and
Executive’s employment may thereafter be terminated at will by either Executive
or NewBank; provided, that the provisions of Sections 8, 9 and 10 of
this Agreement, and any accrued and vested rights of Executive as of the last
day of the Employment Term, shall survive any termination of this Agreement or
Executive’s termination of employment hereunder.

 

(f)         Notice
of Termination.  Any purported termination of employment by
NewBank or by Executive (other than due to Executive’s death) shall be
communicated by Notice of Termination to the other party hereto in accordance
with Section 12(j) hereof.  For
purposes of this Agreement, a “Notice
of Termination” shall mean a Notice which shall indicate the
specific termination provision in this Agreement relied upon and shall set
forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of employment under the provision so indicated.

 

(g)        Board/Committee
Resignation.  Upon termination of Executive’s employment
for any reason, Executive agrees to resign, as of the date of such termination
and to the extent applicable, from the Company Board (and any committees
thereof), the NewBank Board (and any committees thereof), the Board of
Directors of BU Financial Corporation, a Delaware corporation (“InterCo”) (and any committees
thereof) and the board of directors of any subsidiary, if applicable, and
agrees to resign as an officer of each of the Company, NewBank, Interco
and each of their respective subsidiaries.

 

7

 

8.       Non-Competition;
Non-Solicitation of Employees; Non-Disparagement.

 

(a)        Executive
acknowledges and recognizes the highly competitive nature of the businesses of
NewBank, Interco, the Company and their affiliates and accordingly agrees
as follows:

 

(i)  Executive will not, within eighteen
months following the termination of Executive’s employment by NewBank for Cause
or by Executive’s voluntary resignation without Good Reason (which, for the
avoidance of doubt, shall include, without limitation, Executive providing
Notice described in Section 1 of this Agreement that Executive is not
extending the Employment Term and/or any termination of employment thereafter)
(the “Post-Termination Period”)
or during the Employment Term (collectively with the Post-Termination Period,
the “Restricted Period”),
directly or indirectly, own, manage, operate, control or participate in the
ownership, management, operation or control of, or be connected as an officer,
employee, consultant, partner, or director with, any depository institution (as
defined in 12 U.S.C. Section 1813(c)(1)) or holding company thereof that (i) has
more than 75% of its deposits (as defined in 12 U.S.C. Section 1813(1)) in
the State of Florida (with such applicable percentage reduced to 50% of
deposits after the one-year anniversary of the Effective Date); (ii) has
more than 75% of its branches (measured by physical presence) in the State of
Florida (with such applicable percentage reduced to 50% of branches after the
one-year anniversary of the Effective Date); (iii) has its principal place
of business or headquarters in the State of Florida; or (iv) is an entity
(or successor thereto) described in Section 3.7(c)(iv) of the LLC
Agreement (each, a “Competitive Business”). Notwithstanding anything
contained herein to the contrary, this Section 8(a)(i) shall not
apply following the termination of Executive’s employment following NewBank’s
delivery of a Non-Renewal Notice.

 

(ii)  During the Post-Termination Period
(which, for purposes of this Section 8(a)(ii), shall include, without
limitation, Executive’s voluntary resignation without Good Reason following
NewBank’s delivery of a Non-Renewal Notice), Executive will not initiate or
respond to communications with any of the employees of InterCo, NewBank or its
subsidiaries who earned annually $150,000 or more as an InterCo, NewBank or
subsidiary employee during the twelve-month period prior to the termination of
such individual’s employment with InterCo, NewBank or its subsidiary, for the
purpose of soliciting such employee, or facilitating the hiring of any such
employee, to work for any other business, individual, partnership, firm,
corporation, or other entity.

 

(iii)  Executive will not at any time (whether
during or after the Employment Term), other than as required by law or by order
of a court or other competent authority, make or publish, or cause any other
person to make or publish, any statement that is disparaging or that reflects
negatively upon NewBank or any of its affiliates or any of the Directors (as defined
in the LLC Agreement) or original Investor Members (as defined in the LLC
Agreement) or that is or reasonably would be expected to be damaging to the
reputation or business of NewBank or any of its affiliates or any of the
Directors or original Investor Members. Each of NewBank, the Company and
InterCo on behalf of itself and its respective directors and senior officers
agrees that none of NewBank, the Company or InterCo and their respective
directors and senior officers, other than as required by law or by 

 

8

 

order
of a court or other competent authority, make or publish, or cause any other
person to make or publish, any statement that is disparaging or that reflects
negatively upon Executive, or that is or reasonably would be expected to be
damaging to the reputation or business of Executive.

 

Notwithstanding anything to
the contrary in this Agreement, Executive may, directly or indirectly own,
solely as an investment, securities of any person engaged in a Competitive
Business which are publicly traded on a national or regional stock exchange or
on the over-the-counter market if Executive (i) is not a controlling
person of, or a member of a group which controls, such person and (ii) does
not, directly or indirectly, own 5% or more of any class of securities of such
person.

 

(b)        It
is expressly understood and agreed that although the parties to this Agreement
consider the restrictions contained in this Section 8 to be reasonable, if
a final judicial determination is made by a court of competent jurisdiction,
that the time or territory or any other restriction contained in this Agreement
is an unenforceable restriction against Executive, the provisions of this
Agreement shall not be rendered void but shall be deemed amended to apply as to
such maximum time and territory and to such maximum extent as such court may
judicially determine or indicate to be enforceable. Alternatively, if any court
of competent jurisdiction finds that any restriction contained in this
Agreement is unenforceable, and such restriction cannot be amended so as to
make it enforceable, such finding shall not affect the enforceability of any of
the other restrictions contained herein.

 

(c)        The
period of time during which the provisions of this Section 8 shall be in
effect shall be extended by the length of time during which Executive is in
breach of the terms hereof as determined by any court of competent jurisdiction
on NewBank’s application for injunctive relief.

 

9.       Confidentiality.

 

(a)        Executive
will not at any time (whether during or after the Employment Term) (x) retain
or use for the benefit, purposes or account of Executive or any other person;
or (y) disclose, divulge, reveal, communicate, share, transfer or provide
access to any person outside NewBank or its affiliates (other than its
professional advisers who are bound by confidentiality obligations), any
non-public, proprietary or confidential information — including without
limitation trade secrets, know-how, research and development, software,
databases, inventions, processes, formulae, technology, designs and other
intellectual property, information concerning finances, investments, profits,
pricing, costs, products, services, vendors, customers, clients, partners,
investors, personnel, compensation, recruiting, training, advertising, sales,
marketing, promotions, government and regulatory activities and approvals —
concerning the past, current or future business, activities and operations of
NewBank, its subsidiaries or affiliates and/or any third party that has
disclosed or provided any of same to NewBank or its affiliates on a
confidential basis (“Confidential
Information”) without the prior written authorization of the NewBank
Board.

 

(b)        “Confidential
Information” shall not include any information that is (a) generally known
to the industry or the public other than as a result of Executive’s breach of
this 

 

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covenant
or any breach of other confidentiality obligations by third parties; (b) made
legitimately available to Executive by a third party without breach of any
confidentiality obligation; or (c) required by law to be disclosed
(including via subpoena); provided that Executive shall give prompt
Notice to NewBank of such requirement of law, disclose no more information than
is so required, and cooperate with any attempts by NewBank to obtain a
protective order or similar treatment.

 

(c)        Except
as required by law, Executive will not disclose to anyone, other than Executive’s
immediate family, legal or financial advisors or governmental agencies, the
existence or contents of this Agreement; provided, that Executive may
disclose to any prospective future employer the provisions of this Agreement
provided they agree to maintain the confidentiality of such terms.

 

(d)        Upon
termination of Executive’s employment with NewBank for any reason, Executive
shall (x) cease and not thereafter commence use of any Confidential
Information or intellectual property (including without limitation, any patent,
invention, copyright, trade secret, trademark, trade name, logo, domain name or
other source indicator) owned or used by NewBank, its subsidiaries or
affiliates; (y) immediately destroy, delete, or return to NewBank, at
NewBank’s option, all originals and copies in any form or medium (including
memoranda, books, papers, plans, computer files, letters and other data) in
Executive’s possession or control (including any of the foregoing stored or
located in Executive’s office, home, laptop or other computer, whether or not
company property) that contain Confidential Information or otherwise relate to
the business of NewBank, its affiliates and subsidiaries, except that Executive
may retain only those portions of any personal notes, notebooks and diaries
that do not contain any Confidential Information and Executive’s rolodex (or
other physical or electronic address book); and (z) fully cooperate with
NewBank regarding the delivery or destruction of any other Confidential
Information not within Executive’s possession or control of which Executive is
or becomes aware. Notwithstanding the foregoing, Executive may retain Executive’s
rolodex and similar address books.  To
the extent that Executive is provided with a cell phone number by NewBank
during employment, NewBank shall cooperate with Executive in transferring such
cell phone number to Executive’s individual name following termination.

 

(e)        Except
as otherwise expressly set forth herein, the provisions of Sections 8, 9 and 10
of this Agreement shall survive the termination of Executive’s employment for
any reason.

 

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10.     Specific
Performance.

 

Executive acknowledges and
agrees that the remedies at law for a breach or threatened breach of any of the
provisions of Sections 8 or 9 would be inadequate and NewBank and its
affiliates would suffer irreparable damages as a result of such breach or
threatened breach.  In recognition of
this fact, Executive agrees that, in the event of such a breach or threatened
breach, in addition to any remedies at law, NewBank shall be entitled to seek a
temporary or permanent injunction or any other equitable remedy which may then
be available.

 

11.     Excise
Tax.

 

(a)        In
the event that any amount or benefit that may be paid or otherwise provided to
or in respect of Executive by or on behalf of NewBank or any affiliate, whether
pursuant to this Agreement or otherwise (collectively, “Covered Payments”), is or may
become subject to the tax imposed under section 4999 of the Internal Revenue
Code of 1986, as amended (the “Code”)
(or any successor provision or any comparable provision of state, local or
foreign law) (“Excise Tax”),
NewBank will pay to Executive a “Reimbursement Amount” equal to fifty percent
(50%) of the total of: (i) any Excise Tax on the Covered Payments, plus (ii) any
Federal, state, and local income taxes, employment and excise taxes (including
the Excise Tax) on the Reimbursement Amount, plus (iii) the product of any
deductions disallowed for Federal, state or local income tax purposes because
of the inclusion of the Reimbursement Amount in Executive’s income and
Executive’s combined Federal, state, and local income tax rate for the calendar
year in which the Reimbursement Amount is includible in Executive’s taxable
income, plus (iv) any interest, penalties or additions to tax imposed
under applicable law in connection with the Excise Tax or the Reimbursement
Amount, plus (v) any reasonable out-of-pocket costs incurred by Executive
in connection with any of the foregoing. For purposes of this Section 11(a),
Executive will be deemed to pay (A) Federal income taxes at the highest
applicable marginal rate of Federal income taxation applicable to individuals
for the calendar year in which the Reimbursement Amount is includible in
Executive’s taxable income and (B) any applicable state and local income
taxes at the highest applicable marginal rate of taxation applicable to
individuals for the calendar year in which such Reimbursement Amount is
includible in Executive’s taxable income, net of the maximum reduction in
Federal income taxes which could be obtained from the deduction of such state
or local taxes if paid in such year (determined without regard to limitations
on deductions based upon the amount of Executive’s adjusted gross income). This
provision is intended to provide Executive with a payment equal to fifty
percent (50%) of an amount that would put Executive in the same position as
Executive would have been had no Excise Tax been imposed upon or incurred as a
result of any Covered Payment that is paid or otherwise provided to or in
respect of Executive in connection with a Change of Control Transaction (as
defined below).

 

(b)        The
payment of a Reimbursement Amount under this Section 11 shall not be
conditioned upon Executive’s termination of employment.

 

(c)        The
determination of whether an event described in section 280G(b)(2)(A)(i) of
the Code has occurred, the amount of any Reimbursement Amount and/or the
amounts described in Section 11(a) above shall be made initially by
an accounting firm selected by the NewBank Board (as constituted prior to the
occurrence of any transaction giving rise to payment 

 

11

 

of
a Reimbursement Amount, such transaction a, “Change of Control Transaction”),
or, if no such firm is selected, by the independent compensation consulting
firm retained by the NewBank Board prior to any Change of Control Transaction
to provide consulting advice to the NewBank Board; provided, however,
that nothing herein shall limit Executive’s right to payment of the
Reimbursement Amount in the event it is determined that any of such initial
determinations was incorrect.

 

(d)        Executive
shall promptly provide NewBank with Notice of any claim by any taxing authority
that, if successful, would require the payment by NewBank of a Reimbursement
Amount; provided, however, that failure by Executive to give such
Notice promptly shall not result in a waiver or forfeiture of any of Executive’s
rights under this Section 11 except to the extent of actual damages
suffered by NewBank as a result of such failure.  If NewBank notifies Executive in writing
within 15 days after receiving such Notice that it desires to contest such
claim (and demonstrates to the reasonable satisfaction of Executive its ability
to pay any resulting Reimbursement Amount), Executive shall:

 

(i)  give NewBank any information reasonably
requested by NewBank relating to such claim;

 

(ii)  take such action in connection with
contesting such claim as NewBank shall reasonably request in writing from time
to time, including, without limitation, accepting legal representation with
respect to such claim by an attorney selected by NewBank that is reasonably
acceptable to Executive;

 

(iii)  cooperate with NewBank in good faith in
order effectively to contest such claim; and

 

(iv)  permit NewBank to participate in any
proceedings relating to such claim;

 

provided, however, that NewBank’s actions do not
unreasonably interfere with or prejudice Executive’s disputes with the taxing
authority as to other issues; and provided, further, that NewBank
shall bear and pay on an after-tax and as-incurred basis, all reasonable
attorney’s fees, costs and expenses (including additional interest, penalties
and additions to tax) incurred in connection with such contest and shall
indemnify and hold Executive harmless, on an after-tax and as-incurred basis,
for all resulting taxes (including, without limitation, income and excise
taxes), interest, penalties and additions to tax.

 

(e)        Notwithstanding
anything herein to the contrary, if at the time of a proposed Change of Control
Transaction that could reasonably be expected to result in the payment of a
Reimbursement Amount pursuant to this Section 11 no stock of NewBank (or
another relevant corporation) is readily tradable on an established securities
market or otherwise, Executive and NewBank shall use best efforts to obtain
shareholder approval for any of the payments or benefits received or to be
received by Executive, whether pursuant to this Agreement or otherwise, that
are potentially subject to the Excise Tax, so that upon such shareholder approval,
the payments and/or benefits shall not be subject to the Excise Tax, provided
that failure to obtain such shareholder approval shall not constitute a breach
of this Agreement.

 

12

 

(f)         At
such time that NewBank or any of its affiliates undergoes an Initial Public
Offering, the NewBank Board shall, in its good faith discretion, determine
whether to amend the Agreement to provide that the Reimbursement Amount shall
be equal to 100% of the sum of the amounts set forth in Sections 11(a)(i)-(v) of
this Agreement.

 

12.     Miscellaneous.

 

(a)        Governing
Law. 
This Agreement shall be governed by and construed in accordance with the
laws of the State of New York, without regard to conflicts of laws principles
thereof that would direct the application of the laws of any other
jurisdiction.

 

(b)        Entire
Agreement/Amendments.  This Agreement contains the entire
understanding of the parties with respect to the employment of Executive by
NewBank.  There arc no restrictions, agreements,
promises, warranties, covenants or undertakings among the parties with respect
to the subject matter herein other than those expressly set forth herein.  This Agreement may not be altered, modified,
or amended except by written instrument signed by the parties hereto.  In the event of any inconsistency between
this Agreement and any other plan, program, practice or agreement of which
Executive is a participant or a party, this Agreement shall control unless such
other plan, program, practice or agreement specifically refers to the
provisions of this sentence.

 

(c)        No
Waiver.  The
failure of a party to insist upon strict adherence to any term of this
Agreement on any occasion shall not be considered a waiver of such party’s
rights or deprive such party of the right thereafter to insist upon strict
adherence to that term or any other term of this Agreement.

 

(d)        Severability.  In the event that any one or
more of the provisions of this Agreement shall be or become invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions of this Agreement shall not be affected thereby.

 

(e)        Assignment.  This Agreement, and all of the
respective parties’ rights and duties hereunder, shall be assignable or delegable
only pursuant to a written agreement executed by the parties hereto.  Upon such assignment, the rights and
obligations of the respective parties hereunder shall become the rights and
obligations of such affiliate or successor person or entity.

 

(f)         Set-Off;
No Mitigation.  NewBank’s obligation to pay Executive the
amounts provided and to make the arrangements provided hereunder shall be
subject to set-off, counterclaim or recoupment of amounts owed by Executive to
NewBank or its affiliates.  Executive
shall not be required to mitigate the amount of any payment provided for
pursuant to this Agreement by seeking other employment, and such payments shall
not be reduced by any compensation or benefits received from any subsequent
employer or other endeavor, except as provided in Section 7(c)(iii)(C)(ii).

 

(g)        Compliance
with Code Section 409A.  The intent of the parties is that payments
and benefits under this Agreement comply with Section 409A of the Code, as
amended (“Section 409A”)
to the extent subject thereto, and, accordingly, to the maximum extent
permitted, this Agreement shall be interpreted and administered to be in
compliance therewith.  

 

13

 

Notwithstanding
anything herein to the contrary, (i) if at the time of Executive’s
termination of employment with NewBank, Executive is a “specified employee” as
defined in Section 409A and the deferral of the commencement of any
payments or benefits otherwise payable hereunder as a result of such
termination of employment is necessary in order to prevent any accelerated or
additional tax under Section 409A, then NewBank will defer the
commencement of the payment of any such payments or benefits hereunder (without
any reduction in such payments or benefits ultimately paid or provided to
Executive) until the date that is six months following Executive’s termination
of employment with NewBank (or the earliest date as is permitted under Section 409A),
(ii) if any other payments of money or other benefits due to Executive
hereunder could cause the application of an accelerated or additional tax under
Section 409A, such payments or other benefits shall be deferred if
deferral will make such payment or other benefits compliant under Section 409A,
or otherwise such payment or other benefits shall be restructured, to the
extent possible, in a manner, determined by the NewBank Board that does not
cause such an accelerated or additional tax, (iii) to the extent required
in order to avoid accelerated taxation and/or tax penalties under Section 409A,
Executive shall not be considered to have terminated employment with NewBank
for purposes of this Agreement and no payment shall be due to Executive under
this Agreement until Executive would be considered to have incurred a “separation
from service” from NewBank within the meaning of Section 409A, and (iv) each
amount to be paid or benefit to be provided to Executive pursuant to this
Agreement, which constitute deferred compensation subject to Section 409A,
shall be construed as a separate identified payment for purposes of Section 409A.
To the extent required to avoid an accelerated or additional tax under Section 409A,
amounts reimbursable to Executive under this Agreement shall be paid to
Executive on or before the last day of the year following the year in which the
expense was incurred and the amount of expenses eligible for reimbursement (and
in-kind benefits provided to Executive) during any one year may not effect
amounts reimbursable or provided in any subsequent year; provided, however,
that with respect to any reimbursements for any taxes which Executive would
become entitled to under the terms of this Agreement, the payment of such
reimbursements shall be made by NewBank no later than the end of the calendar
year following the calendar year in which Executive remits the related taxes.
NewBank shall consult with Executive in good faith regarding the implementation
of the provisions of this Section 12(g); provided that neither New-Bank
nor any of its employees or representatives shall have any liability to
Executive with respect to thereto.

 

(h)        Required
Regulatory Language.

 

(i)  Notwithstanding anything herein contained
to the contrary, any payments to Executive by NewBank, whether pursuant to this
Agreement or otherwise, are subject to and conditioned upon their compliance
with section 18(k) of the Federal Deposit Insurance Act (“FDI Act”), 12 U.S.C. §1828(k) and
the Federal Deposit Insurance Corporation (the “FDIC”) regulation 12 CFR Part 359, Golden Parachute and
Indemnification Payments.

 

(ii)  Notwithstanding anything herein
contained to the contrary, if Executive is suspended from office and/or
temporarily prohibited from participating in the conduct of the affairs of
NewBank pursuant to a notice served under section 8(e)(3) or 8(g)(1) of
the FDI Act, 12 U. S. C. §1818(e)(3) or 1818(g)(1), NewBank’s obligations
under this Agreement shall be suspended as of the date of service of such
notice, unless stayed by appropriate proceedings.

 

14

 

(iii)  Notwithstanding anything herein
contained to the contrary, if Executive is removed and/or permanently
prohibited from participating in the conduct of NewBank’s affairs by an order
issued under section 8(e)(4) or 8(g)(1) of the FDI Act, 12 U.S.C.
§1818(e)(4) or (g)(1), all prospective obligations of NewBank under this
Agreement shall terminate as of the effective date of the order, but vested
rights and obligations of NewBank and Executive shall not be affected.

 

(iv)  Notwithstanding anything herein
contained to the contrary, if NewBank is in default (within the meaning of
section 3(x)(1) of the FDI Act, 12 U.S.C. §1813(x)(1), all prospective
obligations of NewBank under this Agreement shall terminate as of the date of
default, but vested rights and obligations of NewBank and Executive shall not
be affected.)

 

(v)  Notwithstanding anything herein contained
to the contrary, all prospective obligations of NewBank hereunder shall be
terminated, except to the extent that a continuation of this Agreement is
necessary for the continued operation of NewBank:  (i) by the Director of the Office of
Thrift Supervision (“OTS”)
or his designee or the FDIC, at the time the FDIC enters into an agreement to
provide assistance to or on behalf of NewBank under the authority contained in
section 13(c) of the FDI Act, 12 U.S.C. §1823(e);  (ii) by the Director of the OTS or his
designee at the time such Director or designee approves a supervisory merger to
resolve problems related to the operation of the Bank or when the Bank is
determined by such Director to be in an unsafe or unsound condition. The vested
rights and obligations of the parties shall not be affected.

 

(vi)  If and to the extent that any of the
foregoing provisions shall cease to be required or by applicable law, rule or
regulation, the same shall become inoperative as though eliminated by formal
amendment of this Agreement.

 

(i)         Successors;
Binding Agreement.  This Agreement shall inure to the benefit of
and be binding upon personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees.  For the avoidance of doubt, the parties to
this Agreement shall continue to be bound by the terms of this Agreement (or
shall require any successor to be bound by the terms of this Agreement)
following an Initial Public Offering of NewBank or one of its affiliates.  In the event of Executive’s death prior to
receipt of all amounts payable to Executive (including any unpaid amounts due
under Section 7), such amounts shall be paid to Executive’s beneficiary
designated by him by Notice to NewBank or, in the absence of such designation,
to Executive’s estate.

 

(j)         Notice.  For the purpose of this
Agreement, notices and all other communications provided for in the Agreement
shall be in writing and shall be deemed to have been duly given when delivered
by hand or overnight courier or three postal delivery days after it has been
mailed by United States registered mail, return receipt requested, postage
prepaid, addressed to the respective addresses set forth below in this
Agreement, or to such other address as either party may have furnished to the
other in writing in accordance herewith, except that Notice of change of
address shall be effective only upon receipt (each such communication, “Notice”).

 

15

 

If to NewBank, addressed to:

 

BankUnited

14817 Oak Lane

Miami Lakes, Florida
33016

 

If to Executive, addressed to
the most recent address of Executive set forth in the personnel records of
NewBank.

 

(k)        Executive
Representation.  Executive hereby represents to NewBank that
the execution and delivery of this Agreement by Executive and NewBank and the
performance by Executive of Executive’s duties hereunder shall not constitute a
breach of, or otherwise contravene, the terms of any employment agreement or
other agreement or policy to which Executive is a party or otherwise bound.

 

(l)         Prior
Agreements.  This Agreement supersedes all prior
agreements and understandings (including verbal agreements) between Executive
and NewBank and/or its affiliates regarding the terms and conditions of
Executive’s employment with NewBank and/or its affiliates.

 

(m)       Cooperation.  If and to the extent requested
by the Company or any of its Subsidiaries, Executive shall provide Executive’s
reasonable cooperation in connection with any action or proceeding (or any
appeal from any action or proceeding) which relates to events occurring during
Executive’s employment with NewBank and its affiliates.  In respect of the foregoing cooperation,
NewBank shall provide reasonable compensation to Executive and shall reimburse
Executive promptly for reasonable out-of-pocket expenses (including travel
costs, lodging and meals); provided that such reimbursement shall be made no
later than the end of the calendar year after the year in which the expenses
are incurred.  This provision shall
survive any termination of this Agreement.

 

(n)        Compliance
with Code Section 162(m).  Prior to such time that NewBank or any of its
affiliates undergoes an Initial Public Offering, the NewBank Board and
Executive-agree to discuss in good faith, to the extent requested by the
NewBank Board in writing on a timely basis, whether to amend Section 3 of
this Agreement in order to maintain the deductibility of the compensatory
arrangements described in Section 3 of this Agreement to the extent the
deductibility of such compensatory arrangements would be limited by the
application of Section 162(m) of the Code, provided that
Executive shall not be required to amend this Agreement in a manner that would,
as determined in the Executive’s sole discretion, adversely effect Executive’s
overall compensation under this Agreement.

 

(o)        Withholding
Taxes. 
NewBank may withhold from any amounts payable under this Agreement such
Federal, state and local taxes as may be required to be withheld pursuant to
any applicable law or regulation.

 

16

 

(p)        Counterparts.  This Agreement may be signed in
counterparts, each of which shall be an original, with the same effect as if
the signatures thereto and hereto were upon the same instrument.

 

[Signature Page Follows
this Page]

 

17

 

IN WITNESS WHEREOF, the
parties hereto have duly executed this Employment Agreement as of the day and
year first above written.

 

	
   

  	
  BANKUNITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Rajinder P. Singh

  
	
   

  	
  By:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Douglas J. Pauls

  
	
   

  	
  DOUGLAS PAULS

  

 

 

EXHIBIT A

 

RELEASE OF
CLAIMS

 

This Release of Claims
is entered into by Douglas Pauls (“Executive”).

 

WHEREAS, Executive and
BankUnited, with offices at 14817 Oak Lane, Miami Lakes, FL 33016 (the “NewBank”), entered into an Amended
and Restated Employment Agreement (the “Employment Agreement”) dated August 18, 2010 that
provides Executive certain severance and other benefits in the event of an
involuntary termination of Executive’s employment without.  Cause or Executive’s resignation of
employment for Good Reason (each term as defined under the Employment
Agreement);

 

WHEREAS, Executive’s
employment has so terminated; and

 

WHEREAS, pursuant to Section 7(c)(iii) of
the Employment Agreement, a condition of Executive’s entitlement to certain
severance and other benefits thereunder is his agreement to this Release of
Claims.

 

NOW, THEREFORE, in
consideration of the severance and other benefits provided under Section 7(c)(iii)(B) and
(C) of the Employment Agreement, the sufficiency of which Executive hereby
acknowledges, Executive agrees as follows:

 

1.             Executive, for himself and his heirs, assigns,
executors and administrators, hereby fully and finally waives, discharges and
releases the Company Group (as defined below), including each of the Company
Group’s past, current and future parents, subsidiaries, and affiliates, and its
and their shareholders, members, directors, officers, employees, agents and
representatives, and each of their heirs and assigns (collectively, the “Released Parties”), from any and
all claims, suits, promises, contracts, liabilities, obligations and damages
arising on or prior to the date hereof relating to his employment with the
Company Group or his termination therefrom, whether now known or later
discovered, which he or anyone acting on his behalf might otherwise have had or
asserted, including, but not limited to, any express or implied contract of
employment claims (whether written or oral), claims arising under tort,
covenant, public policy or otherwise, claims under Title VII of the Civil
Rights Act of 1964, as amended, the Family and Medical Leave Act of 1993, Section 1981
of the Civil Rights Act of 1866, the Age Discrimination in Employment Act of
1967, as amended (“ADEA”).
the Americans with Disabilities Act of 1991, as amended, the Older Workers
Benefit Protection Act of 1990, the Worker Adjustment and Retraining
Notification Act, claims under the laws, including the labor laws of any state
or locality, all claims under related common law, statutes, and administrative
and executive orders at the federal, state and local levels of government, and
any claims to any payments or benefits from employment with the Company Group,
including, but not limited to, claims for salary, bonuses, unvested stock
options, severance pay, vacation pay or any benefits under the Employee Retirement
Income Security Act of 1974, as amended, other than: (i) those benefits
set forth in Section 7(c)(iii) of the Employment Agreement, (ii) any
rights Executive has 

 

 

to indemnification under the
Amended and Restated Limited Liability Company Agreement of BU Financial
Holdings, LLC dated as of May 21, 2009, as it may be amended from time to
time or otherwise or coverage under directors’ and officers’ liability
insurance policies, (iii) any direct or indirect holdings of equity in the
Company and its subsidiaries or affiliates or any vested awards (or awards
which may vest) which Executive has under any equity, equity-based, profits
interest, stock option or similar plan, agreement or program, which equity and
awards shall be subject to all the terms and conditions of such documents, and (iv) any
claims for accrued and vested benefits under any of the Company Group’s
employee retirement and welfare benefit plans. In addition, Executive
represents that no incident has occurred during his employment with the Company
Group that could form the basis for any claim by him against the Company Group
under the worker’s compensation laws of any jurisdiction.  For the purposes of this Release of Claims,
the term “Company Group”
shall mean NewBank, BU Financial Corporation, WI Financial Holdings LLC, and
each of their respective subsidiaries.

 

2.             Executive represents that he has not brought any
charges, claims, demands, suits or actions, known or unknown, in any forum,
against the Released Parties related to his employment or his termination
(excluding any claims of Executive in respect of his direct and indirect
holdings of equity in the Company and its subsidiaries or affiliates); provided,
however, that Executive shall not be prevented from challenging or seeking a determination
in good faith of the validity of this Release of Claims under ADEA or enforcing
any rights he may have under the terms of this Release of Claims or in respect
of any claims of Executive in respect of his direct and indirect holdings of
equity in the Company and its subsidiaries or affiliates.

 

3.             Executive acknowledges that he is subject to
certain post-employment restrictions under the terms of the Employment
Agreement, including, without limitation, a non-disparagement covenant pursuant
to Section 8 of the Employment Agreement and a confidentiality covenant
pursuant to Section 9 of the Employment Agreement and hereby reaffirms his
obligations thereunder.

 

4.             Executive affirms that he has returned all property
in Executive’s possession of NewBank, including, but not limited to, keys,
credit cards, cellular phones, computer equipment, software and peripherals and
originals or copies of books, records, or other information pertaining to
NewBank’s business.  In addition,
Executive has returned all electronic documents or records relating to NewBank
that Executive may have saved to any such cellular phone, laptop computer or
other electronic or storage device, whether business or personal, including any
presentations stored in hard copy or electronically.  Further, if Executive stored any information
relating to NewBank on a personal computer or other storage device, Executive
affirms that he has permanently deleted such information; provided, however,
that, prior to deleting that information. 
Executive printed out one copy and provided it to NewBank.

 

5.             This Release of Claims shall be governed by and
construed in accordance with the laws of the State of New York, without regard
to conflicts of laws principles thereof that would direct the application of
the laws of any other jurisdiction.

 

6.             Each of the sections contained in this Release of
Claims shall be enforceable independently of every other section in this
Release of Claims, and the invalidity or 

 

2

 

unenforceability of any
section shall not invalidate or render unenforceable any other section
contained in this Release of Claims.

 

7.             This Release of Claims, together with the
Employment Agreement, represents the complete agreement between Executive and
NewBank concerning the subject matter in this Release of Claims and supersedes
all prior agreements or understandings, written or oral.  This Release of Claims may not be amended or
modified otherwise than by a written agreement executed by the parties hereto
or their respective successors and legal representatives.  Executive acknowledges that no
representation, statement, promise, inducement, threat or suggestion has been
made by any of the Released Parties to influence Executive to sign this Release
of Claims except such statements as are expressly set forth herein or in the
Employment Agreement.

 

8.             EXECUTIVE ACKNOWLEDGES THAT HE IS RELEASING ALL
CLAIMS UNDER ADEA AND HAS BEEN ADVISED, IN WRITING, TO CONSULT WITH AN
ATTORNEY OF HIS CHOICE PRIOR TO SIGNING THIS RELEASE OF CLAIMS AND THAT HE HAS
CAREFULLY READ AND SIGNED THIS RELEASE OF CLAIMS KNOWINGLY, VOLUNTARILY, AND
FREELY, AND WITH SUCH COUNSEL AS HE DEEMED APPROPRIATE.  IN ADDITION, EMPLOYEE ACKNOWLEDGES THAT THE
CONSIDERATION GIVEN FOR THIS RELEASE OF CLAIMS IS IN ADDITION TO ANYTHING OF
VALUE TO WHICH EXECUTIVE IS ALREADY ENTITLED, AND HE HAS BEEN PROVIDED WITH A
PERIOD OF UP TO TWENTY-ONE (21) DAYS IN WHICH TO CONSIDER WHETHER OR NOT TO
ENTER INTO THIS RELEASE OF CLAIMS. 
FURTHER, EMPLOYEE ACKNOWLEDGES THAT HE HAS BEEN ADVISED OF HIS RIGHT TO
REVOKE THIS RELEASE OF CLAIMS DURING THE SEVEN (7) DAY PERIOD FOLLOWING
EXECUTION HEREOF.  AND THAT THE RELEASE
OF CLAIMS SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE AND NEITHER NEWBANK.  NOR ANY OTHER PARTY IS OBLIGATED ‘FO PROVIDE
ANY PAYMENTS OR BENEFITS TO EXECUTIVE UNTIL THE REVOCATION PERIOD HAS EXPIRED.

 

9.             Nothing contained herein shall be construed as an
admission by the Company Group of any liability of any kind to Executive, all
such liability being expressly denied except for obligations of NewBank imposed
by the Employment Agreement which survive pursuant to this Release of Claims.

 

	
   

  	
   

  
	
   

  	
  Douglas Pauls

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:                                       ,
  20   

  

 

3Exhibit 10.5a

 

EMPLOYMENT
AGREEMENT

 

EMPLOYMENT
AGREEMENT
(this “Agreement”) dated August 18,
2010 by and among BU Financial Holdings LLC, a Delaware limited liability
company (“Holdings”), BU
Financial Corporation, a Delaware corporation (“InterCo,” and together with Holdings, the “Company”), and Rajinder P. Singh (“Executive”).

 

WHEREAS, BankUnited, a
federally chartered thrift institution (“NewBank”), Holdings, InterCo and Executive previously
entered into an Employment Agreement dated July 10, 2009 (the “Original Agreement”):

 

WHEREAS, NewBank and Executive
have entered into a new employment agreement, dated as of the date hereof (the “NewBank Agreement”), which amended
and restated the Original Agreement in its entirety, and pursuant to which
Executive serves as the Senior Executive Vice President, Head of Mortgage
Banking and Corporate Development of NewBank; and

 

WHEREAS, Holdings, InterCo
and Executive desire to enter into this Agreement, pursuant to which Executive
will serve as the Senior Executive Vice President, Head of Mortgage Banking and
Corporate Development of Holdings and InterCo.

 

NOW THEREFORE, in
consideration of the premises and mutual covenants herein and for other good
and valuable consideration, the parties agree as follows:

 

1.     Term of Employment.

 

Subject to the provisions of Section 7
of this Agreement, Executive shall continue to be employed by the Company for a
period that commenced on July 10, 2009 (the “Effective Date”) and will end on the third anniversary of the
Effective Date (the “Employment Term”),
on the terms and subject to the conditions set forth in this Agreement; provided,
however, that commencing on the third anniversary of the Effective Date
and on each anniversary thereafter (each an “Extension Date”), the Board of Directors of the Company (the “Company Board”) may elect to
extend the Employment Term for an additional one-year period, unless the
Company or Executive provides the other party with Notice (as defined in Section 12(i))
90 days prior to the next Extension Date that the Employment Term shall not be
so extended.

 

2.     Position.

 

(a)     During the Employment Term, Executive shall
serve as the Senior Executive Vice President, Head of Mortgage Banking and
Corporate Development of Holdings and InterCo. 
Executive shall report directly to the Chief Executive Officer of
Holdings and InterCo and shall perform the duties, undertake the
responsibilities and exercise the authority customarily performed, undertaken
and exercised by persons situated in a similar executive capacity in a company
the size and nature of the Company.  If
requested, Executive shall also serve as an officer or member of the board of
directors of the Company’s subsidiaries, in each case, without additional
compensation.

 

(b)     During the Employment Term, and subject to
the performance of Executive’s 

 

 

duties pursuant to the
NewBank Agreement, Executive will devote Executive’s business time and best
efforts to the performance of Executive’s duties hereunder and will not engage
in any other business, profession or occupation for compensation or otherwise
which would conflict or materially interfere with the rendition of such
services either directly or indirectly, without the prior written consent of
the NewBank Board; provided that nothing herein shall preclude
Executive, (i) from engaging in charitable and civic activities, including
accepting appointment to or continuing to serve on any board of directors or
trustees of any charitable organization or (ii) from continuing to, or
subject to the prior approval of the NewBank Board, from accepting appointment
to serve on any board of directors or trustees of any business corporation; provided
in each case, and in the aggregate, that such activities do not conflict or
interfere with the performance of Executive’s duties hereunder or conflict with
Sections 8 and 9.

 

3.     Compensation.

 

(a)     Base Salary.

 

During the Employment Term,
the Company shall pay Executive a base salary at the annual rate of $250,000,
payable in regular installments in accordance with the Company’s usual payment
practices.  Executive’s base salary may
be increased (but not decreased) as may he determined from time to time in the
sole discretion of the Company Board or the Board of Directors of NewBank (the “NewBank Board”) (the Company Board
or the NewBank Board, as applicable, are referred to herein as the “Board”).  Executive’s annual base salary, as in effect
from time to time, is hereinafter referred to as the “Base Salary.”

 

(b)     Discretionary Annual Bonus.

 

During each full fiscal year during
the Employment Term, Executive shall be eligible to earn a discretionary annual
bonus award (an “Annual Bonus”)
in such amount, if any, as may be determined in the sole and absolute
discretion of the Board, provided that
it is the expectation of the parties that no such Annual Bonus shall be awarded
to Executive during the Employment Term.

 

4.     Equity Arrangements.

 

Executive has entered into
arrangements with regard to Executive’s equity arrangements with Holdings.

 

5.     Employee Benefits.

 

Unless otherwise determined by
the Board, during any period that Executive is employed by NewBank, Executive
shall not be entitled to participate in the Company’s benefit plans or to
receive any perquisites provided by the Company to its employees.

 

6.     Business Expenses.

 

During the Employment Term and
in accordance with NewBank policies, Executive shall be entitled to be
reimbursed for reasonable and customary business expenses incurred by Executive
in connection with the performance of Executive’s duties hereunder.

 

2

 

7.     Termination.

 

The Employment Term and
Executive’s employment hereunder may be terminated by the Company at any time
and for any reason upon at least 30 days’ advance Notice to Executive
(provided, however, that a termination with Cause (as defined in the NewBank
Agreement) shall be effective immediately, subject to any applicable procedures
set forth in such definition of Cause) and by Executive upon at least 30 days’
advance Notice of any such resignation of Executive’s employment, other than as
a result of Executive’s death. Notwithstanding any other provision of this
Agreement, the provisions of this Section 7 shall exclusively govern
Executive’s rights upon termination of employment with the Company and its
subsidiaries (except with respect to any equity arrangements, which shall be
exclusively governed by the teens of such equity arrangements).

 

(a)     By the Company with Cause or By
Executive other than as a result of Good Reason.

 

(i)       The Employment Term and Executive’s
employment hereunder may be terminated by the Company with Cause and shall
terminate automatically upon the effective date of Executive’s resignation
other than for Good Reason (as defined in the NewBank Agreement), provided that
(as set forth above) Executive will be required to give the Company at least 30
days’ advance Notice of a such a resignation.

 

(ii)      If Executive’s employment is terminated by
the Company with Cause (or Executive resigns at a time when grounds for Cause
exist, provided that the NewBank Board shall have delivered a Cause
Notice (as defined in the NewBank Agreement) to Executive within ten (10) business
days of such termination of employment), or Executive voluntarily resigns
without Good Reason, Executive shall be entitled to receive:

 

(A)  the Base Salary accrued through the date of
termination, payable within fifteen days following the date of such
termination;

 

(B)   any Annual Bonus awarded by the Board, but
unpaid, as of the date of termination for the immediately preceding fiscal
year, paid in accordance with Section 3(b) (except to the extent
payment is otherwise deferred pursuant to any applicable deferred compensation
arrangement, in which case such amount shall be paid in full at the earliest
such time as is provided under such arrangement); and

 

(C)   such fully vested and non-forfeitable
employee benefits, if any, as to which Executive may be entitled under the
employee benefit plans of the Company (the amounts described in clauses (A) through
(C) hereof being referred to as the “Accrued Rights”).

 

Following such termination of
Executive’s employment by the Company with Cause or voluntary resignation by
Executive without Good Reason, except as set forth in this Section 7(a)(ii),
Executive shall have no further rights to any compensation or any other
benefits under this Agreement.

 

3

 

(b)     Disability or Death.

 

(i)       The Employment Term and Executive’s
employment hereunder shall terminate upon Executive’s death and may be
terminated by the Company by reason of Executive’s Disability (as defined in
the NewBank Agreement).

 

(ii)      Upon termination of Executive’s employment
hereunder by reason of either Disability or death, Executive or Executive’s
estate (as the case may be) shall be entitled to receive the Accrued
Rights.  In addition, upon termination of
Executive’s employment hereunder by reason of either Disability or death,
Executive (to the extent applicable and to the extent Executive participated in
such plans immediately prior to such termination) and Executive’s eligible
dependents (to the extent covered under such plan immediately prior to such
termination) shall be entitled to receive continued coverage under the Company’s
group health plans (or to the extent such coverage is not permissible under the
terms of such plan(s), comparable coverage), at the Company’s sole expense, for
twenty-four months from Executive’s date of termination of employment with the
Company as a result of Executive’s Disability or death (such period, the “Coverage Period”); provided,
however, that if such continued coverage cannot be provided under the
applicable plan(s) for longer than eighteen months, the Company shall pay
Executive (or his estate, as applicable), on the first business day of each
month thereafter, an amount equal to the premium subsidy the Company would have
otherwise paid on Executive’s behalf for such coverage during the balance of
the twenty-four month period.  The COBRA
health care continuation coverage period under Section 4980B of the Code,
or any replacement or successor provision of United States tax law, shall run
concurrently with the Coverage Period,

 

Following
Executive’s termination of employment due to death or Disability, except as set
forth in this Section 7(b)(ii), Executive shall have no further rights to
any compensation or any other benefits under this Agreement.

 

(c)     By the Company without Cause or
Voluntary Resignation by Executive for Good Reason.

 

(i)       The Employment Term and Executive’s
employment hereunder may be terminated by the Company without Cause or
voluntarily by Executive for Good Reason.

 

(ii)      If Executive’s employment is terminated by
the Company without Cause (other than by reason of death or Disability) or if
Executive resigns for Good Reason, Executive shall be entitled to receive:

 

(A)  the Accrued Rights;

 

(B)   a payment of an aggregate amount equal to the
product of (x) two (2) and (y) the sum of Executive’s Base
Salary and the Annual Bonus paid or payable to Executive, if any, for the fiscal
year immediately preceding Executive’s termination of employment, which
aggregate amount shall be payable to Executive in a lump sum within 60 days
following Executive’s termination of employment; provided that the
aggregate amount described in this clause (B) shall 

 

4

 

be
reduced by the present value of any other cash severance benefits payable to
Executive under any other plans, programs or arrangements of the Company or its
subsidiaries; and

 

(C)   continued coverage under the Company’s group
health plans (or to the extent such coverage is not permissible under the terms
of such plan(s), comparable coverage) for Executive and Executive’s dependents
(to the extent covered under such plan immediately prior to such termination),
at the Company’s sole expense, until the earlier of (i) twenty-four months
from Executive’s date of termination of employment with the Company and (ii) the
date Executive is or becomes eligible for comparable coverage under health plans
of another employer (such period the “Continued Coverage Period”); provided, however,
that if such coverage is longer than eighteen (18) months and such continued
coverage cannot be provided under the applicable plan(s), the Company shall pay
Executive, on the first business day of each month, an amount equal to the
premium subsidy the Company would have otherwise paid on Executive’s behalf for
such coverage during the balance of’ the Continued Coverage Period. The COBRA
health care continuation coverage period under Section 4980B of the Code,
or any replacement or successor provision of United States tax law, shall run
concurrently with the Continued Coverage Period.

 

Amounts
payable to Executive under subparagraphs (B) and (C) above, are
subject to Executive providing a release of all claims to the Company and its
affiliates in the form attached hereto as Exhibit A (with any
changes necessary to comply with applicable law and/or make the release legally
enforceable in the reasonable judgment of the Company) no later than the 59th day following termination of
employment (and the Company may, at its sole election, defer the payment of any
such amount until the 60th day following termination of employment).
Following Executive’s termination of employment by the Company without Cause
(other than by reason of Executive’s death or Disability) or by Executive’s
resignation for Good Reason, except as set forth in this Section 7(c)(ii),
Executive shall have no further rights to any compensation or any other benefits
under this Agreement.

 

(d)     Non-Renewal of Employment Term by
Executive.  In the event Executive
elects not to extend the Employment Term pursuant to Section 1, unless
Executive’s employment is earlier terminated pursuant to paragraphs (a), (b) or
(c) of this Section 7, the expiration of the Employment Term and
Executive’s termination of employment hereunder shall be deemed to occur on the
close of business on the day immediately preceding the next scheduled Extension
Date and Executive shall be entitled to receive the Accrued Rights.  Following such termination of Executive’s
employment under this Section 7(d), except as set forth in this Section 7(d),
Executive shall have no further rights to any compensation or any other
benefits under this Agreement.

 

(e)     Continued Employment Beyond the
Expiration of the Employment Term. 
Unless the parties otherwise agree in writing, continuation of Executive’s
employment with the Company beyond the expiration of the Employment Term shall
be deemed an employment at-

 

5

 

will and shall not be
deemed to extend any of the provisions of this Agreement and Executive’s
employment may thereafter be terminated at will by either Executive or the
Company; provided, that the provisions of Sections 8, 9 and 10 of this
Agreement, and any accrued and vested rights of Executive as of the last day of
the Employment Term, shall survive any termination of this Agreement or
Executive’s termination of employment hereunder.

 

(f)      Notice of Termination.  Any purported termination of employment by
the Company or by Executive (other than due to Executive’s death) shall be
communicated by Notice of Termination to the other party hereto in accordance
with Section 12(j) hereof For purposes of this Agreement, a “Notice of Termination” shall mean
a Notice which shall indicate the specific termination provision in this
Agreement relied upon and shall set forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of employment under
the provision so indicated.

 

(g)     Board/Committee Resignation.  Upon termination of Executive’s employment
for any reason, Executive agrees to resign, as of the date of such termination
and to the extent applicable, from the Board (and any committees thereof) and
the board of directors of any subsidiary of the Company, NewBank or InterCo, if
applicable, and agrees to resign as an officer of each of the Company, NewBank, InterCo
and each of their respective subsidiaries.

 

8.     Non-Competition; Non-Solicitation of
Employees; Non-Disparagement.

 

(a)     Executive acknowledges and recognizes the
highly competitive nature of the businesses of the Company, NewBank and their
affiliates and accordingly agrees as follows:

 

(i)       Executive will not, within eighteen
months following the termination of Executive’s employment by the Company for
Cause or by Executive’s voluntary resignation without Good Reason (which, for
the avoidance of doubt, shall include, without limitation, Executive providing
Notice described in Section 1 of this Agreement that Executive is not
extending the Employment Term and/or any termination of employment thereafter)
(the “Post-Termination Period”)
or during the Employment Term (collectively with the Post-Termination. Period,
the “Restricted Period”),
directly or indirectly, own, manage, operate, control or participate in the
ownership, management, operation or control of, or be connected as an officer,
employee, consultant, partner, or director with, any depository institution (as
defined in 12 U.S.C. Section 1813(c)(1)) or holding company thereof that (i) has
more than 75% of its deposits (as defined in 12 U.S.C. Section 1813(1)) in
the State of Florida (with such applicable percentage reduced to 50% of
deposits after the one-year anniversary of the Effective Date); (ii) has
more than 75% of its branches (measured by physical presence) in the State of
Florida (with such applicable percentage reduced to 50% of branches after the
one-year anniversary of the Effective Date); (iii) has its principal place
of business or headquarters in the State of Florida; or (iv) is an entity
(or successor thereto) described in Section 3.7(c)(iv) of the Amended
and Restated Limited Liability Company Agreement of Holdings, as it may be
amended, supplemented or modified from time to time (the “LLC Agreement”) (each, a “Competitive Business”).

 

(ii)      During the Post-Termination Period,
Executive will not initiate or respond to communications with any of the
employees of InterCo, NewBank or its 

 

6

 

subsidiaries
who earned annually $150,000 or more as an InterCo, NewBank or subsidiary
employee during the twelve-month period prior to the termination of such
individual’s employment with InterCo, NewBank or its subsidiary, for the
purpose of soliciting such employee, or facilitating the hiring of any such
employee, to work for any other business, individual, partnership, firm,
corporation, or other entity.

 

(iii)     Executive will not at any time (whether
during or after the Employment Term), other than as required by law or by order
of a court or other competent authority, make or publish, or cause any other
person to make or publish, any statement that is disparaging or that reflects
negatively upon NewBank or any of its affiliates or any of the Directors (as
defined in the LLC Agreement) or original Investor Members (as defined in the
LLC Agreement) or that is or reasonably would be expected to be damaging to the
reputation or business of NewBank or any of its affiliates or any of the
Directors or original Investor Members. Each of the Company and NewBank on
behalf of itself and its respective directors and senior officers agrees that
neither the Company nor NewBank and their respective directors and senior
officers, other than as required by law or by order of a court or other
competent authority, make or publish, or cause any other person to make or
publish, any statement that is disparaging or that reflects negatively upon
Executive, or that is or reasonably would be expected to be damaging to the
reputation or business of Executive.

 

Notwithstanding anything to
the contrary in this Agreement, Executive may, directly or indirectly own,
solely as an investment, securities of any person engaged in a Competitive
Business which are publicly traded on a national or regional stock exchange or
on the over-the-counter market if Executive (i) is not a controlling
person of, or a member of a group which controls, such person and (ii) does
not, directly or indirectly, own 5% or more of any class of securities of such
person.

 

(b)     It is expressly understood and agreed that
although the parties to this Agreement consider the restrictions contained in
this Section 8 to be reasonable, if a final judicial determination is made
by a court of competent jurisdiction, that the time or territory or any other
restriction contained in this Agreement is an unenforceable restriction against
Executive, the provisions of this Agreement shall not be rendered void but
shall be deemed amended to apply as to such maximum time and territory and to
such maximum extent as such court may judicially determine or indicate to be
enforceable. Alternatively, if any court of competent jurisdiction finds that
any restriction contained in this Agreement is unenforceable, and such
restriction cannot be amended so as to make it enforceable, such finding shall
not affect the enforceability of any of the other restrictions contained
herein.

 

(c)     The period of time during which the
provisions of this Section 8 shall be in effect shall be extended by the
length of time during which Executive is in breach of the terms hereof as
determined by any court of competent jurisdiction on the Company’s or NewBank’s
application for injunctive relief.

 

9.     Confidentiality.

 

(a)     Executive will not at any time (whether
during or after the Employment Term) (x) retain or use for the benefit,
purposes or account of Executive or any other person; or (y) 

 

7

 

disclose, divulge,
reveal, communicate, share, transfer or provide access to any person outside
New-Bank or its affiliates (other than its professional advisers who are bound
by confidentiality obligations), any non-public, proprietary or confidential
information — including without limitation trade secrets, know-how, research
and development, software, databases, inventions, processes, formulae,
technology, designs and other intellectual property, information concerning
finances, investments, profits, pricing, costs, products, services, vendors, customers,
clients, partners, investors, personnel, compensation, recruiting, training,
advertising, sales, marketing, promotions, government and regulatory activities
and approvals — concerning the past, current or future business, activities and
operations of NewBank, its subsidiaries or affiliates and/or any third party
that has disclosed or provided any of same to NewBank or its affiliates on a
confidential basis (“Confidential
Information”) without the prior written authorization of the Board.

 

(b)     “Confidential Information” shall not
include any information that is (a) generally known to the industry or the
public other than as a result of Executive’s breach of this covenant or any
breach of other confidentiality obligations by third parties; (b) made legitimately
available to Executive by a third party without breach of any confidentiality
obligation; or (c) required by law to be disclosed (including via
subpoena); provided that Executive shall give prompt Notice to the
Company or NewBank of such requirement of law, disclose no more information
than is so required, and cooperate with any attempts by the Company or NewBank
to obtain a protective order or similar treatment.

 

(c)     Except as required by law, Executive will
not disclose to anyone, other than Executive’s immediate family, legal or
financial advisors or governmental agencies, the existence or contents of this
Agreement; provided, that Executive may disclose to any prospective
future employer the provisions of this Agreement provided they agree to maintain
the confidentiality of such terms.

 

(d)     Upon termination of Executive’s employment
with the Company or NewBank for any reason, Executive shall (x) cease and
not thereafter commence use of any Confidential Information or intellectual
property (including without limitation, any patent, invention, copyright, trade
secret, trademark, trade name, logo, domain name or other source indicator)
owned or used by NewBank, its subsidiaries or affiliates; (y) immediately
destroy, delete, or return to the Company or NewBank, at the Company’s or
NewBank’s option, all originals and copies in any form or medium (including
memoranda, books, papers, plans, computer files, letters and other data) in
Executive’s possession or control (including any of the foregoing stored or
located in Executive’s office, home, laptop or other computer, whether or not
company property) that contain Confidential Information or otherwise relate to
the business of NewBank, its affiliates and subsidiaries, except that Executive
may retain only those portions of any personal notes, notebooks and diaries
that do not contain any Confidential Information and Executive’s rolodex (or
other physical or electronic address book); and (z) fully cooperate with
the Company and NewBank regarding the delivery or destruction of any other
Confidential Information not within Executive’s possession or control of which
Executive is or becomes aware. Notwithstanding the foregoing, Executive may
retain Executive’s rolodex and similar address books.  To the extent that Executive is provided with
a cell phone number by the Company during employment, the Company shall
cooperate with Executive in transferring such cell phone number to Executive’s
individual name following termination.

 

8

 

(e)     Except as otherwise expressly set forth
herein, the provisions of Sections 8, 9 and 10 of this Agreement shall survive
the termination of Executive’s employment for any reason.

 

10.   Specific Performance.

 

Executive acknowledges and agrees
that the remedies at law for a breach or threatened breach of any of the
provisions of Sections 8 or 9 would be inadequate and the Company and its
affiliates would suffer irreparable damages as a result of such breach or
threatened breach.  In recognition of
this fact, Executive agrees that, in the event of such a breach or threatened
breach, in addition to any remedies at law, the Company shall be entitled to
seek a temporary or permanent injunction or any other equitable remedy which
may then be available.

 

11.   Excise Tax.  In the event that any amount or benefit that
may be paid or otherwise provided to or in respect of Executive by or on behalf
of NewBank or any affiliate, whether pursuant to this Agreement or otherwise,
is or may become subject to the tax imposed under section 4999 of the Internal
Revenue Code of 1986, as amended (the “Code”) (or any successor provision or any comparable provision
of state, local or foreign law), Executive shall be entitled to the payments
and benefits set forth in the NewBank Agreement, pursuant to the terms and
conditions set forth therein.

 

12.   Miscellaneous.

 

(a)     Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, without regard
to conflicts of laws principles thereof that would direct the application of
the laws of any other jurisdiction.

 

(b)     Entire Agreement/Amendments.  This Agreement contains the entire
understanding of the parties with respect to the employment of Executive by the
Company.  There are no restrictions,
agreements, promises, warranties, covenants or undertakings among the parties
with respect to the subject matter herein other than those expressly set forth
herein.  This Agreement may not be
altered, modified, or amended except by written instrument signed by the
parties hereto.  In the event of any
inconsistency between this Agreement and any other plan, program, practice or
agreement of the Company of which Executive is a participant or a party, this
Agreement shall control unless such other plan, program, practice or agreement
specifically refers to the provisions of this sentence.

 

(c)     No Waiver.  The failure of a party to insist upon strict
adherence to any term of this Agreement on any occasion shall not be considered
a waiver of such party’s rights or deprive such party of the right thereafter
to insist upon strict adherence to that term or any other term of this
Agreement.

 

(d)     Severability.  In the event that any one or more of the
provisions of this Agreement shall be or become invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions of this Agreement shall not be affected thereby.

 

9

 

(e)     Assignment.  This Agreement, and all of the respective
parties’ rights and duties hereunder, shall be assignable or delegable only
pursuant to a written agreement executed by the parties hereto.  Upon such assignment, the rights and
obligations of the respective parties hereunder shall become the rights and
obligations of such affiliate or successor person or entity.

 

(f)      Set-Off; No Mitigation.  The Company’s obligation to pay Executive the
amounts provided and to make the arrangements provided hereunder shall be
subject to set-off, counterclaim or recoupment of amounts owed by Executive to
the Company or its affiliates.  Executive
shall not be required to mitigate the amount of any payment provided for
pursuant to this Agreement by seeking other employment, and such payments shall
not be reduced by any compensation or benefits received from any subsequent
employer or other endeavor, except as provided in Section 7(c)(ii)(C)(ii).

 

(g)     Compliance with Code Section 409A.  The intent of the parties is that payments
and benefits under this Agreement comply with Section 409A of the Code, as
amended (“Section 409A”)
to the extent subject thereto, and, accordingly, to the maximum extent
permitted, this Agreement shall be interpreted and administered to be in
compliance therewith.  Notwithstanding
anything herein to the contrary, (i) if at the time of Executive’s
termination of employment with the Company, Executive is a “specified employee”
as defined in Section 409A and the deferral of the commencement of any
payments or benefits otherwise payable hereunder as a result of such
termination of employment is necessary in order to prevent any accelerated or
additional tax under Section 409A, then the Company will defer the
commencement of the payment of any such payments or benefits hereunder (without
any reduction in such payments or benefits ultimately paid or provided to
Executive) until the date that is six months following Executive’s termination
of employment with the Company (or the earliest date as is permitted under Section 409A),
(ii) if any other payments of money or other benefits due to Executive
hereunder could cause the application of an accelerated or additional tax under
Section 409A, such payments or other benefits shall be deferred if
deferral will make such payment or other benefits compliant under Section 409A,
or otherwise such payment or other benefits shall be restructured, to the
extent possible, in a manner, determined by the NewBank Board that does not
cause such an accelerated or additional tax, (iii) to the extent required
in order to avoid accelerated taxation and/or tax penalties under Section 409A,
Executive shall not be considered to have terminated employment with the
Company for purposes of this Agreement and no payment shall be due to Executive
under this Agreement until Executive would be considered to have incurred a “separation
from service” from the Company within the meaning of Section 409A, and (iv) each
amount to be paid or benefit to be provided to Executive pursuant to this
Agreement, which constitute deferred compensation subject to Section 409A,
shall be construed as a separate identified payment for purposes of Section 409A.
To the extent required to avoid an accelerated or additional tax under Section 409A,
amounts reimbursable to Executive under this Agreement shall be paid to
Executive on or before the last day of the year following the year in which the
expense was incurred and the amount of expenses eligible for reimbursement (and
in-kind benefits provided to Executive) during any one year may not effect
amounts reimbursable or provided in any subsequent year provided, however,
that with respect to any reimbursements for any taxes which Executive would
become entitled to under the terms of this Agreement, the payment of such
reimbursements shall be made by the Company no later than the end of the
calendar year following the calendar year in which Executive remits the related
taxes. the Company shall consult with Executive in good faith regarding the
implementation of the 

 

10

 

 

 

provisions of this Section 12(g);
provided that neither the Company nor any of its employees or representatives
shall have any liability to Executive with respect to thereto.

 

(h)     Successors: Binding Agreement.  This Agreement shall inure to the benefit of
and be binding upon personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees.  For the avoidance of doubt, the parties to
this Agreement shall continue to be bound by the terms of this Agreement (or
shall require any successor to be bound by the terms of this Agreement)
following an Initial Public Offering of the Company or one of its
affiliates.  In the event of Executive’s
death prior to receipt of all amounts payable to Executive (including any
unpaid amounts due under Section 7), such amounts shall be paid to
Executive’s beneficiary designated by him by Notice to the Company or, in the
absence of such designation, to Executive’s estate.

 

(i)      Notice.  For the purpose of this Agreement, notices and
all other communications provided for in the Agreement shall be in writing and
shall be deemed to have been duly given when delivered by hand or overnight
courier or three postal delivery days after it has been mailed by United States
registered mail, return receipt requested, postage prepaid, addressed to the
respective addresses set forth below in this Agreement, or to such other
address as either party may have furnished to the other in writing in
accordance herewith, except that Notice of change of address shall be effective
only upon receipt (each such communication, “Notice”).

 

If to the Company, addressed
to:

 

BankUnited

14817 Oak Lane

Miami Lakes, Florida 33016

 

If to Executive, addressed to
the most recent address of Executive set forth in the personnel records of the
Company.

 

(j)      Executive Representation.  Executive hereby represents to the Company
that the execution and delivery of this Agreement by Executive and the Company
and the performance by Executive of Executive’s duties hereunder shall not
constitute a breach of, or otherwise contravene, the terms of any employment
agreement or other agreement or policy to which Executive is a party or
otherwise bound; provided that the Company hereby acknowledges and agrees that
the performance of Executive’s duties pursuant to the NewBank Agreement shall
in no way constitute a breach of this Agreement.

 

(k)     Prior Agreements.  This Agreement supersedes all prior
agreements and understandings (including verbal agreements) between Executive
and the Company and/or its affiliates regarding the terms and conditions of
Executive’s employment with the Company and/or its affiliates, other than the
NewBank Agreement.

 

(l)      Cooperation.  If and to the extent requested by the Company
or any of its Subsidiaries, Executive shall provide Executive’s reasonable
cooperation in connection with any action or proceeding (or any appeal from any
action or proceeding) which relates to events occurring during Executive’s
employment with the Company and its affiliates. 
In respect of the 

 

11

 

foregoing cooperation,
the Company shall provide reasonable compensation to Executive and shall
reimburse Executive promptly for reasonable out-of-pocket expenses (including
travel costs, lodging and meals); provided that such reimbursement shall
be made no later than the end of the calendar year after the year in which the
expenses are incurred.  This provision
shall survive any termination of this Agreement.

 

(m)    Compliance with Code Section 162(m).  Prior to such time that the Company or any of
its affiliates undergoes an Initial Public Offering, the Company Board and
Executive agree to discuss in good faith, to the extent requested by the
Company Board in writing on a timely basis, whether to amend Section 3 of
this Agreement in order to maintain the deductibility of the compensatory
arrangements described in Section 3 of this Agreement to the extent the
deductibility of such compensatory arrangements would be limited by the
application of Section 162(m) of the Code, provided that
Executive shall not be required to amend this Agreement in a manner that would,
as determined in the Executive’s sole discretion, adversely effect Executive’s
overall compensation under this Agreement.

 

(n)     Joint and Several Liability.  Holdings and InterCo shall bear joint and
several liability with respect to all of the obligations to Executive set forth
hereunder and with respect to all of the obligations of NewBank under the
New-Bank Agreement.

 

(o)     Withholding Taxes.  The Company may withhold from any amounts
payable under this Agreement such Federal, state and local taxes as may be
required to be withheld pursuant to any applicable law or regulation.

 

(p)     Counterparts.  This Agreement may be signed in counterparts,
each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument.

 

[Signature Page Follows
this Page]

 

12

 

IN WITNESS WHEREOF, the
parties hereto have duly executed this Employment Agreement as of the day and
year first above written.

 

 

	
   

  	
  BU FINANCIAL HOLDINGS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Douglas J. Pauls

  
	
   

  	
  By:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BU FINANCIAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Douglas J. Pauls

  
	
   

  	
  By:

  
	
   

  	
  Title

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Rajinder P. Singh

  
	
   

  	
  RAJINDER P. SINGH

  

 

 

EXHIBIT A

 

RELEASE OF
CLAIMS

 

This Release of Claims is
entered into by Rajinder Singh (“Executive”).

 

WHEREAS, Executive, BU
Financial Holdings LLC with offices at 14817 Oak Lane, Miami Lakes, FL 33016 (“Holdings”) and BU Financial
Corporation with offices at 14817 Oak Lane, Miami Lakes, FL 33016 (“InterCo”), entered into an
Employment Agreement (the “Employment
Agreement”) dated August 18, 2010 that provides Executive
certain severance and other benefits in the event of an involuntary termination
of Executive’s employment without Cause or Executive’s resignation of
employment for Good Reason (each term as defined under the Employment
Agreement);

 

WHEREAS, Executive’s
employment has so terminated; and

 

WHEREAS, pursuant to Section 7(c)(ii) of
the Employment Agreement, a condition of Executive’s entitlement to certain
severance and other benefits thereunder is his agreement to this Release of
Claims.

 

NOW, THEREFORE, in
consideration of the severance and other benefits provided under Section 7(c)(ii)(B) and
(C) of the Employment Agreement, the sufficiency of which Executive hereby
acknowledges, Executive agrees as follows:

 

1.             Executive, for himself and his heirs, assigns, executors
and administrators, hereby fully and finally waives, discharges and releases
the Company Group (as defined below), including each of the Company Group’s
past, current and future parents, subsidiaries, and affiliates, and its and
their shareholders, members, directors, officers, employees, agents and
representatives, and each of their heirs and assigns (collectively, the “Released Parties”), from any and
all claims, suits, promises, contracts, liabilities, obligations and damages
arising on or prior to the date hereof relating to his employment with the
Company Group or his termination therefrom, whether now known or later
discovered, which he or anyone acting on his behalf might otherwise have had or
asserted, including, but not limited to, any express or implied contract of
employment claims (whether written or oral), claims arising under tort,
covenant, public policy or otherwise, claims under Title VII of the Civil
Rights Act of 1964, as amended, the Family and Medical Leave Act of 1993, Section 1981
of the Civil Rights Act of 1866, the Age Discrimination in Employment Act of
1967, as amended (“ADEA”).
the Americans with Disabilities Act of 1991, as amended, the Older Workers
Benefit Protection Act of 1990, the Worker Adjustment and Retraining
Notification Act, claims under the laws, including the labor laws of any state
or locality, all claims under related common law, statutes, and administrative
and executive orders at the federal, state and local levels of government, and
any claims to any payments or benefits from employment with the Company Group,
including, but not limited to, claims for salary, bonuses, unvested stock
options, severance pay, vacation pay or any benefits under the Employee
Retirement Income Security Act of 1974, as amended, other than: (i) those
benefits set forth in Section 7(c)(iii) of the Employment Agreement, (ii) any
rights Executive has to indemnification under the Amended and Restated Limited
Liability Company Agreement of 

 

 

BU Financial Holdings, LLC
dated as of May 21, 2009, as it may be amended from time to time or
otherwise or coverage under directors’ and officers’ liability insurance
policies, (iii) any direct or indirect holdings of equity in the Company
and its subsidiaries or affiliates or any vested awards (or awards which may
vest) which Executive has under any equity, equity-based, profits interest,
stock option or similar plan, agreement or program, which equity and awards
shall be subject to all the terms and conditions of such documents, and (iv) any
claims for accrued and vested benefits under any of the Company Group’s
employee retirement and welfare benefit plans. In addition, Executive
represents that no incident has occurred during his employment with the Company
Group that could form the basis for any claim by him against the Company Group
under the worker’s compensation laws of any jurisdiction.  For the purposes of this Release of Claims,
the term “Company Group”
shall mean Holdings, InterCo, BankUnited, and each of their respective
subsidiaries.

 

2.             Executive represents that he has not brought any
charges, claims, demands, suits or actions, known or unknown, in any forum,
against the Released Parties related to his employment or his termination
(excluding any claims of Executive in respect of his direct and indirect holdings
of equity in the Company and its subsidiaries or affiliates); provided,
however, that Executive shall not be prevented from challenging or seeking a
determination in good faith of the validity of this Release of Claims under
ADEA or enforcing any rights he may have under the terms of this Release of
Claims or in respect of any claims of Executive in respect of his direct and
indirect holdings of equity in the Company and its subsidiaries or affiliates.

 

3.             Executive acknowledges that he is subject to certain
post-employment restrictions under the terms of the Employment Agreement,
including, without limitation, a non-disparagement covenant pursuant to Section 8
of the Employment Agreement and a confidentiality covenant pursuant to Section 9
of the Employment Agreement and hereby reaffirms his obligations thereunder.

 

4.             Executive affirms that he has returned all property in
Executive’s possession of the Company, including, but not limited to, keys,
credit cards, cellular phones, computer equipment, software and peripherals and
originals or copies of books, records, or other information pertaining to the
Company’s business.  In addition,
Executive has returned all electronic documents or records relating to the
Company that Executive may have saved to any such cellular phone, laptop
computer or other electronic or storage device, whether business or personal,
including any presentations stored in hard copy or electronically.  Further, if Executive stored any information relating
to the Company on a personal computer or other storage device, Executive
affirms that he has permanently deleted such information; provided, however,
that, prior to deleting that information, Executive printed out one copy and
provided it to the Company.

 

5.             This Release of Claims shall be governed by and
construed in accordance with the laws of the State of New York, without regard
to conflicts of laws principles thereof that would direct the application of
the laws of any other jurisdiction.

 

6.             Each of the sections contained in this Release of Claims
shall be enforceable independently of every other section in this Release of
Claims, and the invalidity or 

 

2

 

unenforceability of any
section shall not invalidate or render unenforceable any other section
contained in this Release of Claims.

 

7.             This Release of Claims, together with the Employment
Agreement, represents the complete agreement between Executive and the Company
concerning the subject matter in this Release of Claims and supersedes all
prior agreements or understandings, written or oral.  This Release of Claims may not be amended or
modified otherwise than by a written agreement executed by the parties hereto
or their respective successors and legal representatives.  Executive acknowledges that no
representation, statement, promise, inducement, threat or suggestion has been
made by any of the Released Parties to influence Executive to sign this Release
of Claims except such statements as are expressly set forth herein or in the
Employment Agreement.

 

8.             EXECUTIVE ACKNOWLEDGES THAT HE IS RELEASING ALL CLAIMS
UNDER ADEA AND HAS BEEN ADVISED, IN WRITING, TO CONSULT WITH AN ATTORNEY
OF HIS CHOICE PRIOR TO SIGNING THIS RELEASE OF CLAIMS AND THAT HE HAS CAREFULLY
READ AND SIGNED THIS RELEASE OF CLAIMS KNOWINGLY, VOLUNTARILY, AND FREELY, AND
WITH SUCH COUNSEL AS HE DEEMED APPROPRIATE. 
IN ADDITION, EMPLOYEE ACKNOWLEDGES THAT THE CONSIDERATION GIVEN FOR THIS
RELEASE OF CLAIMS IS IN ADDITION TO ANYTHING OF VALUE TO WHICH EXECUTIVE IS
ALREADY ENTITLED, AND HE HAS BEEN PROVIDED WITH A PERIOD OF UP TO TWENTY-ONE
(21) DAYS IN WHICH TO CONSIDER WHETHER OR NOT TO ENTER INTO ‘THIS RELEASE OF
CLAIMS.  FURTHER, EMPLOYEE ACKNOWLEDGES
THAT HE HAS BEEN ADVISED OF HIS RIGHT TO REVOKE THIS RELEASE OF CLAIMS DURING
THE SEVEN (7) DAY PERIOD FOLLOWING EXECUTION HEREOF, AND THAT THE RELEASE
OF CLAIMS SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE AND NEITHER THE COMPANY NOR
ANY OTHER PARTY IS OBLIGATED TO PROVIDE ANY PAYMENTS OR BENEFITS TO EXECUTIVE
UNTIL THE REVOCATION PERIOD HAS EXPIRED.

 

9.             Nothing contained herein shall be construed as an
admission by the Company Group of any liability of any kind to Executive, all
such liability being expressly denied except for obligations of the Company
imposed by the Employment Agreement which survive pursuant to this Release of
Claims.

 

 

	
   

  	
   

  
	
   

  	
  Rajinder Singh

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:
                                                                   , 20

  

 

3

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