Document:

Exhibit 10.5b

 

AMENDED AND
RESTATED EMPLOYMENT AGREEMENT

 

AMEDNED AND
RESTATED EMPLOYMENT AGREEMENT (this “Agreement”) dated August 18, 2010 by
and between, BankUnited, a federally chartered thrift institution (“NewBank”)
and Rajinder P. Singh (“Executive”).

 

WHEREAS, NewBank and Executive
previously entered into an Employment Agreement dated July 10, 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 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 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 the Senior Executive Vice
President, Head of Mortgage Banking and Corporate Development 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.

 

 

3.                    Compensation.

 

(a)     Base
Salary.

 

During the Employment Term,
NewBank shall pay Executive a base salary at the annual rate of $750,000,
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.

 

4.                    Equity Arrangements.

 

Executive has entered into arrangements
with regard to Executive’s equity arrangements with BU Financial Holdings ITC,
a limited liability company (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 receive such perquisites generally made available to senior
executives of NewBank as determined in the sole and absolute discretion of the
NewBank Board following consultation with Executive (the “Perquisites”).  Notwithstanding anything contained in this Section 5
to the contrary, Executive shall be entitled to participate in the benefit
plans and perquisites set forth on Exhibit A hereto (such benefit
plans and perquisites (the “Specified Benefits”), together with the
Benefit Plans and Perquisites, 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.

 

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 

 

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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 (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.

 

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(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 Board of Directors 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 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”).

 

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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 twenty-four 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”); provided, however, that if
such continued coverage cannot be provided under the applicable plan(s) for
longer than eighteen months, NewBank shall pay Executive (or his estate, as
applicable), on the first business day of each month thereafter, an amount
equal to the premium subsidy NewBank 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
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.

 

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(ii)        For
purposes of this Agreement, “Good Reason” shall mean: (A) a
material reduction in Executive’s Base Salary or Specified Benefits; (B) a
material diminution in Executive’s title, reporting relationship, duties or
responsibilities (other than as a result of Cause or Disability)
(notwithstanding the foregoing, such diminution shall not constitute Good
Reason so long as John Kanas is Chief Executive Officer of the Company or
Chairman of the Board if such diminution was approved by John Kanas); (C) the
failure of NewBank or its subsidiaries to pay any compensation to Executive
when due; or NewBank provides the Notice described in Section 1 of this
Agreement that it is not extending the Employment Term; 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 (other than the event described in clause
(D)).

 

(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 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
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) twenty-four 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”); provided, however, that if
such coverage is longer than eighteen (18) months and such continued coverage
cannot be provided under the applicable plan(s), NewBank shall pay Executive,
on the first business day of each month, an amount equal to the premium subsidy
NewBank 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.

 

6

 

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 B
(with any changes necessary to 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”).

 

(ii)        During
the Post-Termination Period, 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 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,

 

8

 

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 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 

 

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(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 tiles, 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.

 

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

 

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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 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

 

11

 

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 New Bank 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
attorneys 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.

 

(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

 

12

 

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 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.  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 

 

13

 

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 NewBank 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.

 

(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 

 

14

 

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(c); (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”).

 

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 

 

15

 

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.

 

(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]

 

16

 

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

 

	
   

  	
   

  
	
   

  	
  BANKUNITED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Douglas J. Pauls

  
	
   

  	
  By:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Rajinder P. Singh

  
	
   

  	
  RAJINDER P. SINGH

  

 

 

 

 

EXHIBIT A

BENEFITS AND PERQUISITES

 

During the Employment Term,
Executive shall be entitled to the following benefits and perquisites:

 

·                  Participation in group life, hospitalization, medical, dental, health,
accident and short and long term disability plans.

 

·                  4 weeks’ annual paid vacation.

 

·                  Participation in an excess 401(k) plan.

 

·                  Payment of professional dues and professional membership fees.

 

·                  Provision of an automobile, up to a cost of $1,250 per month, for
Executive’s use.

 

 

EXHIBIT B

RELEASE OF CLAIMS

 

This Release of Claims is
entered into by Rajinder Singh (“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 

 

1

 

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, BU Financial Holdings LLC, the Company 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 TIIAT HE HAS CAREFULLY READ
AND SIGNED TIIIS RELEASE OF CLAIMS KNOWINGLY, VOLUNTARILY, AND FREELY, AND WITH
SUCH COUNSEL AS I IE 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 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 NewBank imposed
by the Employment Agreement which survive pursuant to this Release of Claims.

 

 

	
   

  	
   

  
	
   

  	
  Rajinder Singh

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:
                                                                   , 20

  

 

3Exhibit 10.12

 

THIS WARRANT AND ANY OTHER
SECURITIES ACQUIRED UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT
BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION
STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR
SUCH LAWS. THIS WARRANT AND SUCH OTHER SECURITIES MAY BE TRANSFERRED ONLY
IN COMPLIANCE WITH THE CONDITIONS SPECIFIED HEREIN.

 

BU FINANCIAL
HOLDINGS LLC

 

WARRANT

 

Issue Date: May 21,
2009

 

BU FINANCIAL HOLDINGS LLC, a
Delaware limited liability company (the “Company”), for value received, hereby certifies that the
FEDERAL DEPOSIT INSURANCE CORPORATION (the “FDIC”) or its permitted assigns is entitled to purchase from
the Company the number of Underlying Securities determined in accordance with Section 1.4,
at a purchase price per Underlying Security equal to the par value of such Underlying
Security (or, if the Underlying Security shall have no par value, $0.01 per
Underlying Security) (the “Exercise
Price Per Share”), prior to 5:00 P.M., New York City time, on
the applicable Expiration Date of this Warrant, all subject to the terms and
conditions hereinafter set forth.

 

This Warrant (the “Warrant”) is issued to the FDIC in
connection with the purchase and assumption by BankUnited, a newly formed
federal savings association and an indirect, wholly owned subsidiary of the
Company (“NewBank” or “BankUnited”), of certain assets,
deposits and certain other liabilities of BankUnited, FSB from the Federal
Deposit Insurance Corporation, as Receiver of BankUnited, FSB (the “Receiver”), pursuant to a Purchase
and Assumption Agreement (“P&A
Agreement”), dated as of May 21, 2009, by and among the
Receiver, the FDIC and NewBank. In connection with the foregoing transaction,
the Company and the Members have entered into an Amended and Restated Limited
Liability Agreement of the Company (the “LLC Agreement”). Certain capitalized terms used in this
Warrant are defined in Section 8; references to an “Exhibit” are, unless
otherwise specified, to one of the Exhibits attached to this Warrant and
references to a “Section” are, unless otherwise specified, to one of the
sections of this Warrant.

 

1.             Exercise of Warrant.

 

1.1           Conditions to Exercise.
This Warrant shall become exercisable, in whole but not in part, only upon the
earlier of the consummation of a (a) Qualifying IPO or (b) Qualifying
Exit Event (any such event in clause (a) or (b), an “Exercisability Event”).
Notwithstanding any provision in this Warrant to the contrary, in no event
shall this Warrant be exercisable unless an Exercisability Event shall have
been consummated and, in connection with 

 

 

any such event, this
Warrant shall be exercisable only in accordance with the terms and conditions,
and at the times, provided for in this Warrant.

 

1.2           Exercise Period. This Warrant may
be exercised, in whole but not in part, at any time during the period (the “Exercise Period”) commencing at
9:00 A.M., New York City time, on the tenth calendar day (and if such
tenth calendar day is not a Business Day, then the next Business Day) after the
date on which the earliest Exercisability Event is consummated and ending at
5:00 P.M., New York City time, on the sixtieth calendar day (and if such
sixtieth calendar day is not a Business Day, then the next Business Day)
following the consummation of such Exercisability Event.

 

1.3           Expiration Date. Unless earlier
exercised as provided herein, this Warrant shall expire upon the earliest of (a) the
end of the Exercise Period, (b) the consummation of an Initial Public
Offering that does not constitute a Qualifying IPO, (c) the consummation
of an Exit Event that does not constitute a Qualifying Exit Event, and (d) 5:00 P.M.,
New York City time, on the tenth anniversary of the issue date of this Warrant
(any such date, the “Expiration Date”).

 

1.4           Underlying Securities Issuable Upon Exercise.

 

1.4.1                General. Subject to Sections
1.1, 1.2 and 1.3, this Warrant shall be exercisable, in whole but not in part,
for Underlying Securities in the amounts and subject to the terms and
conditions hereinafter provided.

 

1.4.2                Qualifying IPO. If this Warrant
becomes exercisable as a result of a Qualifying IPO, proper provision shall be
made so that, upon the basis and the terms and in the manner provided in this
Warrant, the Holder, upon the exercise hereof at any time during the Exercise
Period, shall be entitled to receive a number of Underlying Securities equal to
the quotient obtained by dividing (a) the Warrant Value by (b)(i) the
Applicable IPO Price minus (ii) the Exercise Price Per Share.

 

1.4.3                Qualifying Exit Event.
If this Warrant becomes exercisable as a result of a Qualifying Exit Event,
proper provision shall be made so that, upon the basis and the terms and in the
manner provided in this Warrant, the Holder, upon the exercise hereof at any
time during the Exercise Period, shall be entitled to receive a number of
Underlying Securities equal to the quotient obtained by dividing (a) the
Warrant Value by (b)(i) the Applicable Exit Event Price minus (ii) the
Exercise Price Per Share.

 

1.4.4                No Fractional Shares or Scrip.
No fractional Underlying Securities or Other Securities or scrip representing
fractional Underlying Securities or Other Securities shall be issued upon any
exercise of this Warrant. In lieu of any fractional Underlying Securities or
Other Securities to which the Holder would otherwise be entitled, the Holder
shall be entitled to receive a cash payment equal to the same fraction of the
Market Price per Underlying Security on the Business Day next preceding the
date of such exercise for such fractional share.

 

1.5           Election to Issue Other Securities.
In the event that this Warrant shall have become exercisable as a result of the
consummation of an Exercisability Event in accordance with Section 1.1,
then, at any time after the receipt by the Company of an Exercise Notice
relating to the exercise of this Warrant for Underlying Securities and prior to
the date that is two 

 

2

 

Business Days before the
Closing Date, the Company shall have the right to elect not to issue Underlying
Securities upon exercise of this Warrant and in lieu thereof to issue other
securities as hereinafter provided. If the Company desires to make such
election, it shall so notify the Holder in writing, and promptly thereafter the
Holder and the Company shall jointly determine the type of security or securities
(which may be debt or equity securities or a combination thereof) (the “Other Securities”), the terms
thereof and the purchase price therefor which shall be purchasable upon
exercise of this Warrant. The terms of such Other Securities shall be established
by the board of directors of the Company in good faith so as to enable the
Holder to sell such Other Securities for proceeds equal to the sum of (a) the
Warrant Value and (b) the Exercise Price.

 

1.6           Manner of Exercise; Exercise Price.

 

1.6.1                In order to exercise this Warrant (which shall be exercisable in whole
but not in part), the Holder shall deliver to the Company a written notice in
the form of Exhibit A hereto (the “Exercise Notice”). Such notice may be delivered at any time on
or after the date on which this Warrant becomes exercisable as provided in Section 1.2
and prior to or on the tenth Business Day preceding the Expiration Date,
provided that, subject to Section 2.5, the Company shall not previously
have delivered to the Holder a Redemption Notice. On the Closing Date, the
Holder shall surrender this Warrant to the Company at its office specified in Section 7.2.1,
accompanied by a subscription in substantially the form of Exhibit B
hereto, duly executed by the Holder and accompanied by payment (by tendering
cash, by certified or cashier’s check or by wire transfer), in immediately
available funds, in an amount equal to the Exercise Price, determined pursuant
to Section 1.6.2, and the Holder shall thereupon be entitled to receive on
the Closing Date the number of duly authorized, validly issued, fully paid and
nonassessable Underlying Securities (or Other Securities) designated in such
subscription.

 

1.6.2                If this Warrant becomes exercisable as a result of any Exercisability
Event, the aggregate exercise price of this Warrant (the “Exercise Price”) shall be the
product obtained by multiplying (a) the number of Underlying Securities
issuable upon such exercise by (b) the Exercise Price Per Share. If this
Warrant becomes exercisable for Other Securities pursuant to Section 1.5,
the Exercise Price shall be the amount determined in accordance with Section 1.5.

 

1.7           When Exercise Effective.
The exercise of this Warrant shall be deemed to have been effected immediately
upon delivery of this Warrant and payment of the Exercise Price as provided in Section 1.6,
and at such time the Person in whose name any certificate or certificates for
Underlying Securities (or Other Securities) shall be issuable upon such
exercise as provided in Section 1.8 shall be deemed to have become the
holder of record thereof.

 

1.8           Delivery of Stock Certificates, etc.
Not later than two Business Days after the exercise of this Warrant for
Underlying Securities, the Company at its expense (including the payment by it
of any applicable issue taxes) shall cause to be issued in the name of and
delivered to the Holder or, subject to Section 6, as the Holder (upon
payment by the Holder of any applicable transfer taxes) may direct in writing,
a certificate or certificates for the number of duly authorized, validly
issued, fully paid and nonassessable Underlying Securities (or Other
Securities) to which the Holder shall be entitled upon such exercise plus, in
lieu of any fractional 

 

3

 

share to which the Holder
would otherwise be entitled, cash in an amount equal to the same fraction of
the Market Price per Underlying Security on the Business Day next preceding the
date of such exercise.

 

2.             Redemption.

 

2.1           This Warrant shall be redeemable by the Company, in whole but not in
part, at any time after this Warrant has become exercisable in accordance with Section 1.1
and prior to the Closing Date at a redemption price in cash (the “Redemption Price”) equal to the
Warrant Value.

 

2.2           The Company shall deliver written notice (the “Redemption Notice”) to the Holder
of the Company’s election to redeem this Warrant not less than five Business
Days prior to the date fixed for redemption by the board of directors of the
Company (the “Redemption Date”),
which Redemption Date shall be no earlier than the date upon which this Warrant
has become exercisable in accordance with Section 1.1 and no later than
the end of the Exercise Period. Notwithstanding the foregoing sentence, if the
Holder previously shall have delivered to the Company an Exercise Notice, the
Redemption Notice shall be provided not more than ten Business Days after the
date of such Exercise Notice.

 

The Redemption Notice shall
state:

 

(i)   the
Redemption Date;

 

(ii)  the
Redemption Price;

 

(iii) that
on the Redemption Date the Redemption Price will become due and payable on this
Warrant and that this Warrant shall cease to be exercisable on and after said
date; and

 

(iv) the
place or places where this Warrant is to be surrendered for payment of the
Redemption Price, which shall be the office specified in Section 7.2.1
unless otherwise specified in the Redemption Notice.

 

2.3           On or prior to the date of the Redemption Notice, the Company shall
segregate and hold in trust an amount of money in same day funds sufficient to
pay the Redemption Price.

 

2.4           Notice of redemption having been given as aforesaid, and whether or not
the Holder surrenders this Warrant on the Redemption Date as provided in Section 2.2(iv),
this Warrant shall, notwithstanding any Exercise Notice having earlier or later
been given, on the date of the Redemption Notice, cease to be exercisable and
shall represent only the right to receive the Redemption Price therein
specified in cash, unless the Company shall default in the payment of the
Redemption Price. Upon surrender of this Warrant for redemption in accordance
with such notice, the Company shall pay to the Holder on the Redemption Date an
amount in cash equal to the Redemption Price.

 

4

 

2.5           If the Company shall default in the payment of the Redemption Price on
the Redemption Date, and such default shall not be cured within two Business
Days thereafter, this Warrant shall continue to be exercisable until the later
of the Expiration Date and the date that is thirty days following the
Redemption Date (or, if not a Business Day, the next Business Day).

 

3.             Assumption of Obligations.

 

3.1           Prior to the expiration of this Warrant in accordance with its terms,
the Company will not, directly or indirectly, consolidate or merge with or into
another Person or sell, assign, transfer, convey or otherwise dispose of all or
substantially all of the Company’s properties or assets (determined on a
consolidated basis for the Company and its subsidiaries) in one or more related
transactions to another Person, unless either (a) the Company is the
surviving entity, or (b) the Person formed by or surviving any such
consolidation or merger (if other than the Company) or to which such sale,
assignment, transfer, conveyance or other disposition has been made assumes all
the obligations of the Company under this Warrant and the Registration Rights
Agreement pursuant to written instruments reasonably satisfactory to the
Holder.

 

3.2           Notwithstanding anything contained in this Warrant to the contrary,
prior to the expiration of this Warrant in accordance with its terms, the
Company will not effect any Qualifying IPO or Qualifying Exit Event unless,
prior to the consummation thereof, each Person (other than the Company) which
may be required to deliver any Underlying Securities (or Other Securities) upon
the exercise of this Warrant as provided herein shall assume, by written
instrument delivered to, and reasonably satisfactory to, the Holder (a) the
obligations of the Company under this Warrant (and if the Company shall survive
the consummation of such transaction, such assumption shall be in addition to,
and shall not release the Company from, any continuing obligations of the
Company under this Warrant), (b) the obligations of the Company under the
Registration Rights Agreement and (c) the obligation to deliver to the
Holder such Underlying Securities (or Other Securities) as, in accordance with
the foregoing provisions of Section 1, the Holder may be entitled to
receive, and such Person shall have similarly delivered to the Holder an
opinion of counsel for such Person, which counsel shall be reasonably
satisfactory to the Holder, stating that this Warrant shall thereafter continue
in full force and effect and the terms hereof shall be applicable to the
Underlying Securities (or Other Securities) which such Person may be required
to deliver upon the exercise of this Warrant.

 

4.            No Impairment.
The Company will not, by amendment of its LLC Agreement or through any
consolidation, merger, reorganization, transfer of assets, dissolution, issue
or sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, but will at all
times in good faith assist in the carrying out of all such terms and in the
taking of all such action as may be necessary or appropriate in order to
protect the rights of the Holder against impairment.

 

5.             Registration Rights. If any Underlying Securities (or Other Securities) required to be
reserved for purposes of exercise of this Warrant require registration with or
approval of any governmental authority under any federal or state law (other
than the Securities Act) before such securities may be issued upon exercise, the
Company will, at its expense and as expeditiously as possible, use its
reasonable best efforts to cause such securities to be duly 

 

5

 

registered or approved, as the case may be. The
Underlying Securities (or Other Securities) issuable upon exercise of this
Warrant shall constitute Registrable Securities (as such term is defined in the
Registration Rights Agreement). The Holder shall be entitled to all of the
benefits afforded to a holder of any such Registrable Securities under the
Registration Rights Agreement and such holder, by its acceptance of this
Warrant, agrees to be bound by and to comply with the terms and conditions of
the Registration Rights Agreement applicable to such holder as a holder of such
Registrable Securities. At any such time as this Warrant is exercisable and the
Company is legally permitted to issue Underlying Securities hereunder, and
Underlying Securities are listed on any national securities exchange, the
Company will, at its expense, obtain promptly and maintain the approval for
listing on each such exchange, upon official notice of issuance, the Underlying
Securities issuable upon exercise of the Warrant and maintain the listing of
such securities after their issuance; and the Company will also list on such
national securities exchange, will register under the Exchange Act and will
maintain such listing of, any Other Securities that at any time are issuable
upon exercise of the Warrants, if and at the time that any securities of the
same class or series shall be listed on such national securities exchange by
the Company.

 

6.             Restrictions on Transfer.

 

6.1           Restrictive Legends.
Except as otherwise permitted by this Section 6, the Warrant shall be
stamped or otherwise imprinted with a legend in substantially the following
form:

 

“THIS WARRANT AND ANY
OTHER SECURITIES ACQUIRED UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY
STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT
WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND
APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION
UNDER SUCH ACT OR SUCH LAWS. THIS WARRANT AND SUCH OTHER SECURITIES MAY BE
TRANSFERRED ONLY IN COMPLIANCE WITH THE CONDITIONS SPECIFIED HEREIN.”

 

Except as otherwise permitted
by this Section 6, each certificate for Underlying Securities (or Other
Securities) issued upon the exercise of the Warrant, and each certificate
issued upon the transfer of any such Underlying Securities (or Other
Securities), shall be stamped or otherwise imprinted with a legend in
substantially the following form:

 

“THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT
BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION
STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION 

 

6

 

UNDER SUCH ACT OR SUCH LAWS.
SUCH SECURITIES MAY BE TRANSFERRED ONLY IN COMPLIANCE WITH THE CONDITIONS
SPECIFIED IN A CERTAIN WARRANT ISSUED BY BU FINANCIAL HOLDINGS LLC IN
CONNECTION WITH THE PURCHASE AND ASSUMPTION BY BANKUNITED OF CERTAIN ASSETS AND
LIABILITIES OF BANKUNITED, FSB FROM THE FEDERAL DEPOSIT INSURANCE CORPORATION
RECEIVER OF BANKUNITED, FSB PURSUANT TO A PURCHASE AND ASSUMPTION AGREEMENT,
DATED AS OF MAY 21, 2009, BY AND AMONG THE FEDERAL DEPOSIT INSURANCE
CORPORATION, AS RECEIVER OF BANKUNITED, FSB, THE FEDERAL DEPOSIT INSURANCE
CORPORATION AND BANKUNITED. A COMPLETE AND CORRECT COPY OF THE FORM OF
SUCH WARRANT IS AVAILABLE FOR INSPECTION AT THE PRINCIPAL OFFICE OF ISSUER AS
PROVIDED IN SUCH WARRANT AND WILL BE FURNISHED TO THE HOLDER OF SUCH SECURITIES
UPON WRITTEN REQUEST AND WITHOUT CHARGE.”

 

6.2           Transfers Prior to Exercise Period; Notice of Proposed Transfers. Neither this Warrant nor any rights hereunder may be Transferred,
except to a Permitted Transferee (provided that the Holder shall notify the
Company in writing prior to the any such Transfer to a Permitted Transferee) at
any time prior to the date on which it becomes exercisable pursuant to Section 1
hereof. Thereafter, this Warrant and any other Restricted Securities may only
be Transferred in accordance with this Section 6.2. Prior to any Transfer
of any Restricted Securities, the holder thereof shall give written notice to
the Company (or other Person that is the issuer of such Restricted Securities)
of such holder’s intention to effect such Transfer and to comply in all other
respects with this Section 6.2. Each such notice (a) shall describe
the manner and circumstances of the proposed Transfer, (b) shall be
delivered to the Company (or other Person that is the issuer of the Restricted
Securities) not less than two Business Days prior to the scheduled closing date
for the proposed Transfer and (c) shall be accompanied by an opinion of counsel
in form and substance reasonably satisfactory to the Company (or other Person
that is the issuer of the Restricted Securities) to the effect that the
proposed Transfer may be effected without registration of the applicable
Restricted Securities under the Securities Act. In no event may the Holder
Transfer this Warrant to more than one transferee.

 

6.3           Termination of Restrictions.
The restrictions imposed by this Section 6 upon the transferability of
Restricted Securities shall cease and terminate as to any particular Restricted
Securities (a) when such securities shall have been effectively registered
under the Securities Act, or (b) when, in the opinion of both counsel for
the holder thereof and counsel for the Company (or other Person that is the issuer
of the Restricted Securities), such restrictions are no longer required in
order to insure compliance with the Securities Act. Whenever such restrictions
shall cease and terminate as to any Restricted Securities, the holder thereof
shall be entitled to receive from the Company (or other Person that is the
issuer of the Restricted Securities), without expense (other than applicable
transfer taxes, if any), new securities of like tenor not bearing the
applicable legends required by Section 6.1.

 

7

 

7.             Ownership, Transfer and Substitution of
Warrants.

 

7.1           Ownership of Warrants.
The Company may treat the person in whose name the Warrant is registered on the
register kept at the office of the Company specified in Section 7.2.1 as
the owner and holder thereof for all purposes, notwithstanding any notice to
the contrary, except that, if and when any Warrant is properly assigned in
blank, the Company may (but shall not be obligated to) treat the bearer thereof
as the owner of such Warrant for all purposes, notwithstanding any notice to
the contrary. Subject to Section 6, a Warrant, if properly assigned, may
be exercised by a new holder without a new Warrant first having been issued.

 

7.2           Office; Transfer and Exchange of Warrants.

 

7.2.1                Notices, presentations and demands in respect of this Warrant may be
made upon the Company at its offices located at BU Financial Holdings LLC, 32
Adelaide Ave., East Moriches, New York 11940; Attention: John A. Kanas;
Facsimile: [       ].

 

7.2.2                Upon the surrender of the Warrant, properly endorsed, for registration
of transfer or for exchange at the office of the Company specified in Section 7.2.1,
the Company at its expense shall (subject to compliance with Section 6, if
applicable) execute and deliver to or upon the order of the holder thereof a
new Warrant of like tenor, in the name of such holder or as such holder (upon
payment by such holder of any applicable transfer taxes) may direct,
representing the right to purchase the aggregate number of Underlying
Securities (or Other Securities) purchasable under the Warrant so surrendered.

 

7.3           Replacement of Warrant.
Upon receipt of evidence reasonably satisfactory to the Company of the loss,
theft, destruction or mutilation of the Warrant and, in the case of any such
loss, theft or destruction of the Warrant held by a Person, upon delivery of
indemnity reasonably satisfactory to the Company in form and amount or, in the
case of any such mutilation, upon surrender of such Warrant for cancellation at
the office of the Company specified in Section 7.2.1, the Company at its
expense will execute and deliver, in lieu thereof, a new Warrant of like tenor.

 

8.             Definitions.
As used herein, unless the context otherwise requires, the following terms have
the following respective meanings:

 

Affiliate:
The meaning set forth in Rule 12b-2 under the Exchange Act.

 

Aggregate Exit Event Price: The aggregate consideration paid, directly or
indirectly, to the Company or the Members in connection with an Exit Event. In
the event the consideration paid in the Exit Event consists in whole or in part
of securities that are traded on any securities exchange or association or
over-the-counter market, the value of any such security shall be calculated
based on the average Market Price of such security for the twenty consecutive
Trading Days immediately preceding the date on which the Exit Event is
consummated. In the event the consideration paid in the Exit Event consists in
whole or in part of consideration other than cash or securities that are traded
on any securities exchange or association or over-the-counter market, the value
of such consideration shall be as determined in good faith by the board of
directors of the Company in reliance on an opinion of an internationally
recognized independent investment banking corporation retained by the Company
for this purpose.

 

8

 

Allocable Incremental Value: The product of (a) the Incremental Value arising
from any Exercisability Event and (b) a fraction, the numerator of which
is the Original Capital Contribution and the denominator of which is the sum of
(i) the Original Capital Contribution and (ii) all capital
contributions made after the date of this Warrant until the date of the
consummation of the Exercisability Event by any Person or Persons, directly or
indirectly, in the Registering Entity (in the case the Exercisability Event is
a Qualifying IPO) or the Company or any of its subsidiaries (without
duplication) (in the case the Exercisability Event is a Qualifying Exit Event).

 

Applicable Exit Event Price: The effective per share value of the Aggregate Exit
Event Price.

 

Applicable IPO Price: The price per Registering Entity Common Share paid by
the managing underwriter(s) in an Initial Public Offering.

 

BankUnited: As
defined in the introduction to this Warrant.

 

Business Day:
Any day other than Saturday, Sunday, a recognized United States holiday or a
day on which commercial banks in New York, New York are closed for business.
Any reference to “days” (unless Business Days are specified) shall mean
calendar days.

 

Closing Date:
The tenth Business Day following delivery of the Exercise Notice in accordance
with Section 1.6.

 

Commission:
The Securities and Exchange Commission or any other federal agency at the time
administering the Securities Act.

 

Common Shares:
Shares of capital stock or other equity interests of any class or classes
(however designated) of a Person the holders of which have the right, without
limitation as to amount, either to all or to a share of the balance of current
dividends and liquidating dividends after the payment of dividends and
distributions on any shares or other equity interests entitled to preference.

 

Company: As
defined in the introduction to this Warrant, such term to include any Person
which shall succeed to or assume the obligations of the Company hereunder in
compliance with Section 3.

 

Exchange Act:
The Securities Exchange Act of 1934, or any similar federal statute, and the rules and
regulations of the Commission thereunder, all as the same shall be in effect at
the time.

 

Exercisability Event: As defined in section 1.1.

 

Exercise Notice: As defined in section 1.6.1.

 

Exercise Period: As defined in section 1.2.

 

Exercise Price: As
defined in section 1.6.2.

 

9

 

Exercise Price Per Share: As defined in the introduction to this Warrant.

 

Exit Event: A
transaction or a combination or series of transactions (other than an Initial
Public Offering) resulting in (a) the sale, transfer or other disposition
by the Investor Members to one or more Persons that are not, immediately prior
to such sale, Affiliates of the Company or any Investor Member of all or
substantially all of the Interests of the Company beneficially owned by the
Investor Members as of the date of such transaction, or (b) the sale,
transfer or other disposition of all or substantially all of the assets of the
Company and its subsidiaries, taken as a whole (which may include a sale of all
or substantially all of the shares in InterCo) to one or more Persons that are
not, immediately prior to such sale, transfer or other disposition, Affiliates
of the Company or any Investor Member.

 

Expiration Date: As defined in Section 1.3.

 

FDIC: As
defined in the introduction to this Warrant.

 

Holder:
The Person in whose name this Warrant is registered in the register maintained
by the Company pursuant to Section 7.2.

 

Incremental Value: The amount, if any, by which (i) the Total Tangible Equity Value
exceeds (ii) the Threshold Value.

 

Initial Public Offering: The first underwritten public offering of the common
stock (or other equity interest) of (a) a successor corporation to the
Company, or (b) InterCo, NewBank (or such other entity designated as the
Registering Entity in accordance with Section 12.8(a) of the LLC
Agreement that owns substantially all of the operations held, directly or
indirectly, by the Company) to the general public through a registration
statement filed with the Commission that results (i) in aggregate proceeds
(net of offering expenses) to such successor corporation, InterCo, NewBank
(or other Registering Entity) of at least $100,000,000 and (ii) in shares
of such successor corporation, InterCo, NewBank (or such other Registering
Entity) that will be traded on any of the New York Stock Exchange, the American
Stock Exchange or the National Association of Securities Dealers Automated
Quotation System after the close of any such general public offering.

 

InterCo: As
defined in the LLC Agreement.

 

Interests: As
defined in the LLC Agreement.

 

Investor Members: As defined in the LLC Agreement.

 

LLC Agreement: As
defined in the introduction to this Warrant.

 

Market Price:
With respect to a particular security, on any given day, the last reported sale
price regular way or, in case no such reported sale takes place on such day,
the average of the last closing bid and ask prices regular way, in either case
on the principal securities exchange on which the applicable securities are
listed or admitted to trading, or if not listed or admitted to trading on any
national securities exchange, the average of the closing bid and ask prices as
furnished by two members of the Financial Industry Regulatory Authority, Inc.

 

10

 

selected from time to time by
the Company for that purpose. “Market Price” shall be determined without
reference to after hours or extended hours trading. If such security is not
listed and traded in a manner that the quotations referred to above are
available for the period required hereunder, the Market Price per such security
shall be deemed to be the fair market value per such security as determined in
good faith by the board of directors of the Company in reliance on an opinion
of an internationally recognized independent investment banking corporation
retained by the Company for this purpose.

 

Members: As
defined in the LLC Agreement.

 

NewBank: As
defined in the introduction to this Warrant.

 

Original Capital Contribution: The net amount of capital contributed by HoldCo,
directly or indirectly, to NewBank in connection with the consummation of the
transactions contemplated by the P&A Agreement.

 

Other Securities: As defined in Section 1.5.

 

Permitted Transferee: Any wholly owned subsidiary of the Holder. No Holder
may avoid its obligations herein by making a Transfer of Restricted Securities
to any of its wholly owned subsidiaries in a Transfer permitted under Section 6
and then dispose of all or any portion of the Holder’s interests in any such
subsidiaries (or a direct or indirect parent thereof). In addition, the Holder
shall cause its Affiliates not to transfer to a third party in one or more
transactions equity interests in an entity that, directly or indirectly,
beneficially owns the Restricted Securities.

 

Person:
Any individual, corporation, partnership, limited liability company, joint
venture, association, trust or other entity or organization, including a
government or political subdivision or an agency or instrumentality thereof.

 

P&A Agreement: As defined in the introduction to this Warrant.

 

Qualifying Exit Event: An Exit Event in which the Total Tangible Equity Value
arising from such Exit Event exceeds the Threshold Value and which Exit Event
is consummated prior to 5:00 P.M., New York City time, on the tenth
anniversary of the issue date of this Warrant.

 

Qualifying IPO: An
Initial Public Offering in which the Total Tangible Equity Value arising from
such Initial Public Offering exceeds the Threshold Value and which Initial
Public Offering is consummated prior to 5:00 P.M., New York City time, on
the tenth anniversary of the issue date of this Warrant.

 

Receiver: As
defined in the introduction to this Warrant.

 

Redemption Date: As defined in Section 2.2.

 

Redemption Notice: As defined in Section 2.2.

 

11

 

Redemption Price: As defined in Section 2.1.

 

Registering Entity: InterCo, or any other entity (including any successor of the Company) or
any subsidiary of the Company that effects the Initial Public Offering.

 

Registering Entity Common Shares: Shares of common stock of the Registering Entity or an
equivalent security or instrument.

 

Registration Rights Agreement: The Registration Rights Agreement, dated as of the date
of this Warrant, by and between the Company and the FDIC.

 

Restricted Securities: The Warrant bearing the applicable legend or legends
referred to in Section 6.1 and any Underlying Securities (or Other
Securities) which have been issued upon the exercise of the Warrant and which
are evidenced by a certificate or certificates bearing the applicable legend or
legends referred to in such Section 6.1.

 

Securities Act:
The Securities Act of 1933, as amended, or any similar federal statute, and the
rules and regulations of the Commission thereunder, all as the same shall
be in effect at the time.

 

Threshold Value: The product of (a) the Top Quartile Multiple as of the most recent
quarter-end and (b) (i) the tangible book value of BankUnited (as
reflected in the books and records of BankUnited) as of the consummation of an
Initial Public Offering or an Exit Event, as the case may be, as determined
based on the books and records of the Company as of such date, times (ii) the
percentage interest therein held, directly or indirectly, by the Company.

 

Top Quartile Multiple: The average price-to-tangible-book-value multiple, as
published by SNL Financial (or similar publication of national recognition as
may be determined by the Company), for the top quartile (determined by
reference to the price-to-tangible-book-value multiple) of publicly traded U.S.
Banks with assets in excess of $10 billion as of the most recent quarter-end.

 

Total Tangible Equity Value: In the case of an Initial Public Offering, (a) the
product of (i) the number of Registering Entity Common Shares held by the
Company or the Members immediately prior to such Initial Public Offering and (ii) the
Applicable IPO Price, minus (b) goodwill and intangible assets of the
Registering Entity at the time of such Initial Public Offering. In the case of
an Exit Event, the Aggregate Exit Event Price.

 

Trading Day:
With respect to any security, (a) if the security is not traded on any
securities exchange or association or over-the-counter market, a Business Day
or (b) if the security is traded on any securities exchange or association
or over-the-counter market, a Business Day on which such relevant exchange or
quotation system is scheduled to be open for business and on which such
security (i) is not suspended from trading on any exchange or association
or over-the-counter market for any period or periods aggregating one half hour
or longer and (ii) have traded at least once on the securities exchange or
association or over-the-counter market that is the primary market for the
trading of the security.

 

12

 

Transfer:
Any transfer, sale, exchange, assignment, pledge, or hypothecation of, creation
of a lien or other encumbrance or security interest in or upon, or other
disposition of, a security, including the grant of any option or other right, whether
voluntarily, involuntarily or by operation of law, and the term “Transferred”
shall have the meaning correlative to the foregoing.

 

Underlying Securities: In the case of a Qualifying IPO, Registering Entity
Common Shares. In the case of a Qualifying Exit Event, in the event the
consideration payable upon consummation of such Qualifying Exit Event consists,
in whole or in part, of Common Shares of the Person (other than the Investor
Members or Affiliates of the Company or any Investor Member) that has engaged
in the transaction that constitutes a Qualifying Exit Event, Common Shares of
such Person. In the event that (a) the consideration paid in the
Qualifying Exit Event consists entirely of cash or securities of such Person
other than Common Shares, (b) the Common Shares issued in connection with
the Qualifying Exit Event are not traded on any securities exchange or
association or over-the-counter market, or (c) the price at which the
Common Shares are traded on any securities exchange or association or
over-the-counter market (calculated based on the average Market Price of such
Underlying Security for the twenty consecutive Trading Days immediately
preceding the date on which the Qualifying Exit Event is consummated) is below
the par value thereof, the Underlying Security shall consist of substitute
securities (which may be debt or equity securities or a combination thereof)
having an aggregate value equal to the sum of (i) the Warrant Value and (ii) the
Exercise Price.

 

U.S. Banks:
All U.S. federal or state chartered bank or thrift institutions (or their
respective holding companies) who file, as of the relevant date, reports with
the Commission pursuant to Section 13 or Section 15(d) of the
Exchange Act.

 

Warrant: As
defined in the introduction to this Warrant.

 

Warrant Value:
The product of (a) 0.10 and (b) the Allocable Incremental Value
arising from any Exercisability Event.

 

9.             Remedies.
The Company stipulates that the remedies at law of the Holder in the event of
any default or threatened default by the Company in the performance of or
compliance with any of the terms of this Warrant are not and will not be
adequate and that, to the fullest extent permitted by law, such terms may be
specifically enforced by a decree for the specific performance of any agreement
contained herein or by an injunction against a violation of any of the terms
hereof or otherwise.

 

10.           No Rights or Liabilities as Stockholder or
Member. Nothing contained in this Warrant shall be
construed as conferring upon the Holder any rights as a stockholder or Member
of the Company or as imposing any obligation on the Holder to purchase any
securities or as imposing any liabilities on the Holder as a stockholder or
Member of the Company, whether such obligation or liabilities are asserted by
the Company or by creditors of the Company.

 

11.           Notices.
Any notice, request, instruction or other document to be given hereunder by any
person to the other will be in writing and will be deemed to have been duly
given (a) on the date of delivery if delivered personally, or by
facsimile, upon confirmation of 

 

13

 

receipt, or (b) on the second Business Day
following the date of dispatch if delivered by a recognized next day courier
service. All notices to the Company shall be delivered at the address and/or
contact details for the Company set forth in Section 7.2.1 above and all
notices to the Holder shall be delivered at the address and/or contact details
for the Holder set forth in the registry maintained by the Company pursuant to Section 7
hereof, or pursuant to such other instructions as may be designated in writing
by the party to receive such notice, provided that the exercise of any Warrant
shall be effective only in the manner provided in Section 1.

 

12.           Binding Effect.
This Warrant shall be binding upon any successors or assigns of the Company.

 

13.           Entire Agreement. This Warrant, and the forms and exhibits attached hereto, contain the
entire agreement between the parties with respect to the subject matter hereof
and supersede all prior and contemporaneous arrangements or undertakings with
respect thereto.

 

14.           Governing Law.
This Warrant will be governed by and construed in accordance with the laws of
the State of Delaware. Each of the Company and the Holder agrees (a) to
submit to the exclusive jurisdiction and venue of the state or federal courts
located in the State of Delaware for any civil action, suit or proceeding
arising out of or relating to this Warrant or the transactions contemplated hereby,
and (b) that notice may be served upon the Company at the address in Section 7.2.1
above and upon the Holder at the address for the Holder set forth in the
registry maintained by the Company pursuant to Section 7 hereof. To the
extent permitted by applicable law, each of the Company and the Holder hereby
unconditionally waives trial by jury in any civil legal action or proceeding
relating to the Warrant or the transactions contemplated hereby.

 

15.           Miscellaneous.
This Warrant and any term hereof may be waived, discharged or terminated only
by an instrument in writing signed by the party against whom enforcement of
such waiver, discharge or termination is sought. This Warrant may be amended
only with the written consent of each of the Company and the Holder. The
section headings in this Warrant are for purposes of convenience only and shall
not constitute a part hereof.

 

[SIGNATURE PAGE
FOLLOWS]

 

14

 

IN WITNESS
WHEREOF, the Company has
caused this Warrant to be duly executed, attested and delivered the day and
year first before written.

 

 

	
   

  	
  BU FINANCIAL HOLDINGS LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Rajinder P. Singh

  
	
   

  	
   

  	
  Name:

  	
  Rajinder P. Singh

  
	
   

  	
   

  	
  Title:

  	
  Head of Consumer Banking

  

 

 

EXHIBIT A

[DATE]

 

FORM OF EXERCISE
NOTICE

 

To [COMPANY]:

 

The undersigned registered
holder of the Warrant of [COMPANY] (the “Company”), dated May [       ],
2009, hereby gives notice pursuant to Section 1.6 of such Warrant of its
election to exercise such Warrant, in whole but not in part, for                    (1) [NAME
OF UNDERLYING SECURITY] of [NAME OF ISSUER], such exercise to be consummated on
the tenth business day following delivery of this notice upon delivery by the
undersigned to the Company on or prior to such date of such Warrant in
accordance with the terms and provisions thereof.

 

 

	
   

  	
   

  
	
   

  	
  (Signature must conform in
  all respects to name of holder as specified on the face of Warrant)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Street Address)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (City)
  (State) (Zip Code)

  

 

(1)       Insert here the number of Underlying Securities
calculated pursuant to Section 1.

 

 

EXHIBIT B

[DATE]

 

FORM OF
SUBSCRIPTION

 

[To be executed only
upon exercise of Warrant]

 

To [COMPANY]:

 

The undersigned registered
holder of the Warrant of [COMPANY] hereby irrevocably exercises such Warrant
for, and purchases thereunder,                     (2) [NAME
OF UNDERLYING SECURITY] of [NAME OF ISSUER] and herewith makes payment of
$[EXERCISE PRICE] therefor, and requests that the certificates for such
securities be issued in the name of, and delivered to [NAME] whose address is
[ADDRESS].

 

Dated:

 

 

	
   

  	
   

  
	
   

  	
  (Signature must conform in
  all respects to name of holder as specified on the face of Warrant)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Street Address)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (City)
  (State) (Zip Code)

  

 

(2)       Insert here the number of Underlying Securities
calculated pursuant to Section 1.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]