Document:

Exhibit 10.6

 

2006 BANK OF NEW CANAAN STOCK OPTION
PLAN

 

		1.	Purpose

 

The 2006 Bank of New Canaan
Stock Option Plan is designed to reward certain individuals for their efforts and contributions to the success of the Bank and
to provide economic incentive for these contributions. This Plan will enable such persons to acquire or increase a proprietary
interest in the Bank, and thus to share in the future success of the Bank's business. The availability of the Plan will contribute
to attracting and retaining outstanding personnel who are in a position to make important and direct contributions to the success
of the Bank. The Plan will serve to promote a closer identity of interests between the Bank's shareholders, Directors and Management.

 

		2.	Definitions

 

Whenever used herein, the
following terms shall have the meanings set forth below:

 

"Bank" means
The Bank of New Canaan.

 

"Board" means the Board
of Directors of the Bank.

 

"Code" means the Internal
Revenue Code of 1986, as amended, and the regulations thereunder.

 

"Committee" means the Board's
Personnel and Compensation Committee or any similar committee designated by the Board to serve the functions of the Committee under
the Plan. The Committee's responsibilities may be performed by the Board as a whole.

 

"Common Stock" means the
Bank's Common Stock, par value $1.00 per share.

 

"Disability," as applied
to a Grantee, shall have the meaning set forth in Section 22(e)(3) of the Code.

 

“Eligible Grantee” means
such persons referred to in Section 5 hereof including Non-Employee Directors and the officers, employee directors and other employees
of the Bank.

 

"ERISA" means the Employee
Retirement Income Security Act of 1974, as amended.

 

"Exchange Act" means the
Securities Exchange Act of 1934, as amended.

 

"Fair Market Value" shall
be determined by the Committee in its discretion based upon available information.

 

"Grantee" means an Eligible
Grantee to whom an Option is granted.

 

"Grant Date," as used with
respect to a particular Option, means the date on which such Option is granted by the Committee pursuant to the Plan as set forth
in Section 5(b).

 

"Incentive Stock Option"
means an Option described in Code Section 422(b).

 

"Non-Employee Director"
means a member of the Board who is not an employee of the Bank or any Subsidiary.

 

"Nonstatutory Stock Option"
means an Option that is not an Incentive Stock Option. All Options shall be Nonstatutory Stock Options unless identified as Incentive
Stock Options.

 

"Option" means an option
granted pursuant to the Plan to purchase the number of Shares specified by this Plan.

"Option Agreement" means
a written agreement in a form approved by the Committee to be entered into by the Bank and the Grantee of an Option, as provided
in Section 8 hereof.

 

"Option Price" means the
purchase price of each share of Common Stock subject to an Option set by the Committee in accordance with Section 9 hereof.

 

    	 

    	 

    

 

"Plan" means the 2006 Bank
of New Canaan Stock Option Plan, as amended from time to time.

 

"Retirement," as applied
to an officer, shall mean when the officer’s employment with the Bank or any present or future parent or Subsidiary of the
Bank terminates upon reaching the normal age of retirement as established by the Board's policies from time to time.

 

"Retirement," as applied
to a Non-Employee Director, shall mean when the Non-Employee Director's term on the Board terminates due to age in accordance with
the Bank's Bylaws or retirement policy, as applicable.

 

"Subsidiary" means an entity
of which, at the time such subsidiary status is to be determined, at least 50% of the total combined voting power of all classes
of stock of such entity is held by the Bank and its Subsidiaries (exclusive of ownership by the entity whose subsidiary status
is being determined).

 

"Successor" means the legal
representative of the estate of a deceased Grantee or the person or persons who shall acquire the right to exercise an Option by
bequest or inheritance or by reason of the death of the Grantee.

 

"Term" means the period
during which a particular Option may be exercised.

 

		3.	Effective Date and Duration of Plan

 

The Plan shall become effective
as of the day of its adoption by the Board (the "Effective Date") subject to approval of the Plan within one year of
such Effective Date by the holders of a majority of the outstanding shares of Common Stock present or represented and entitled
to vote at a duly held meeting of the Bank's shareholders.

 

Unless previously terminated
by the Board of Directors or except as otherwise provided for herein, the Plan shall terminate, as to any shares as to which Options
have not theretofore been granted, on the tenth anniversary of the Effective Date.

 

		4.	Administration of the Plan

 

		(a)	The Plan shall be administered by the Committee. The Committee shall consist of at least two “Non-Employee
Directors” as defined in Rule 16b-3 under the Exchange Act. Subject to the limitations of Section 4(c) hereof, nothing herein
shall be deemed to prohibit any employee director from serving on the Committee for purposes unrelated to the plan. The Committee
shall have the responsibility of construing and interpreting the Plan and of establishing and amending such rules and regulations
as it deems necessary or desirable for the proper administration of the Plan. Any decision or action taken or to be taken by the
Committee, arising out of or in connection with the construction, administration, interpretation and effect of the Plan and of
its rules and regulations, shall, to the extent permitted by law, be within its absolute discretion (except as otherwise specifically
provided herein) and shall be conclusive and binding upon all Grantees and any person claiming under or through any Grantee.

 

		(b)	The Committee shall have plenary authority, subject to the provisions of the Plan, to grant Options
(including the authority to re-grant forfeited Options) in the form of Incentive Stock Options and/or Nonstatutory Stock Options
and to determine to whom such Options shall be granted and the number of shares subject thereto, the Term of each Option, the waiver
or acceleration of terms on any Options, including to accelerate the exercisability or vesting of all or any portion of any Option
or to extend the period during which an Option is exercisable, provided that no Incentive Stock Option shall be granted which is
exercisable after the expiration of ten (10) years from the date it is granted. The Committee’s decision to grant options
shall be made in consultation with and subject to review and comment by the Bank’s CEO and Board of Directors.

 

		(c)	Any member of the Board or the Committee who is not a “Non Employee Director” shall
be without vote on (i) any proposed amendment to the Plan, or (ii) any other matter which might affect such member's individual
interest under the Plan; nor shall such member's presence be

 

    	 

    	 

    

 

counted in determining whether a quorum
is present at any meeting at which a vote involving the Plan or individual rights thereunder is taken.

 

		5.	Grant of Options: Number and Source of Shares Subject to the Plan

 

		(a)	Subject to the provisions of Section 14 (relating to changes in capitalization), the number of
shares of Common Stock which may be sold pursuant to Options under the Plan shall not exceed, in the aggregate, 47,800 shares (the
“Plan Reserve”). Any shares of Common Stock to be delivered by the Bank upon the exercise of Options may, at the discretion
of the Board of Directors, be authorized but unissued shares, reacquired shares or shares bought on the market for purposes of
the Plan.

 

		(b)	The Committee may grant available Options (including re-grant of forfeited Options) to Non-Employee
Directors at an Option Price equal to the Fair Market Value on the Grant Date; provided, further, that Options may be granted to
Non-Employee Directors while serving thereon provided such grants are first specifically approved by the Board with such Non-Employee
Directors abstaining from such Board action.

 

		(c)	The date of grant of an Option shall be the date on which the Committee's action is final or such
later date as specified by the Committee.

 

		(d)	In the event that any Option expires, lapses or otherwise terminates prior to being fully exercised,
any share of Common Stock allocable to the unexercised portion of such Option may again be made subject to an Option.

 

		6.	Limitation on Incentive Stock Options

 

The aggregate Fair Market
Value (determined at the date an Incentive Stock Option is granted) of the shares with respect to which Incentive Stock Options
are exercisable for the first time by a Grantee during any calendar year (under the Plan or any other plan maintained by the Bank
or its subsidiaries) shall not exceed $100,000. Options so exceeding the $100,000 level, if any, shall be Non Statutory Stock Options.

 

		7.	Option Agreement

 

		(a)	The prospective Grantee of an Option shall execute an Option Agreement with the Bank containing
such terms and conditions, not inconsistent with the Plan, as may be approved by the Committee. The terms and conditions of Option
Agreements may vary from Grantee to Grantee.

 

		(b)	The Committee may amend an Option Agreement from time to time.

 

		(c)	Appropriate officers of the Bank are hereby authorized to execute (by facsimile or manually affixed
signature) and deliver Option Agreements, and amendments thereto, in the name of the Bank as directed from time to time by the
Committee.

 

		8.	Option Price

 

The Option Price shall
be fixed by the Committee and stated in each Option Agreement and, except as set forth hereafter, shall be not less than the greater
of par value or 100% of the Fair Market Value of a share of the Common Stock on the Grant Date of the Option (as determined in
good faith by the Committee). Notwithstanding the foregoing, in the event the Grantee would otherwise be ineligible to receive
an Incentive Stock Option by reason of the provisions of Sections 422(b)(6) and 424(d) of the Code (relating to stock ownership
of more than 10%), the Option Price of an Option that is intended to be an Incentive Stock Option shall be not less than the greater
of par value or 110% of the Fair Market Value of a share of Common Stock on the Grant Date of such Option. Payment of the Option
Price shall be made in cash or in such other form as the Committee may approve, including shares of Common Stock of the Bank valued
at the Fair Market Value on the date of exercise of the Option, or a combination of cash and/or such other form of property, or
by delivery of a properly executed exercise notice together with irrevocable instructions to a broker to deliver promptly to the
Bank sale or loan proceeds sufficient to pay the Option Price.

 

    	 

    	 

    

 

		9.	Terms and Exercise of Options; Limitations on Exercise and Transferability of Options

 

		(a)	Each Option granted under the Plan shall be exercisable only during a Term commencing on the Grant
Date, unless otherwise specified in the Option Agreement, and ending (unless the Option shall have terminated earlier under other
provisions of the Plan) on a date to be fixed by the Committee but in no event later than the tenth anniversary of its date of
grant; provided, however, that in the event the Grantee would otherwise be ineligible to receive an Incentive Stock
Option by reason of the provisions of Sections 422(b)(6) and 424(d) of the Code (relating to stock ownership of more than 10%),
an Option granted to such Grantee that is intended to be an Incentive Stock Option shall in no event be exercisable after the expiration
of five years from the date it is granted.

 

		(b)	The Committee shall have authority to grant Options exercisable in full at any time during their
Term, or exercisable in cumulative or non-cumulative installments.

 

		(c)	Notwithstanding the provisions of subparagraph (b) hereof, an Option or portion thereof that has
vested shall become fully exercisable upon the occurrence of the Grantee's death or withdrawal from the Board by reason of such
person’s Retirement or Disability, or on the day preceding a reorganization in which the Bank is not the surviving bank or
sale of assets or stock as described below in Section 14(c).

 

		(d)	Options shall be exercised in whole or in part in accordance with the procedures set forth in the
Grantee's Option Agreement.

 

		(e)	Subject to the provisions of subsection (f) hereof, upon compliance by the Grantee with such terms
of exercise, the Bank shall promptly deliver to the Grantee a certificate or certificates for the shares purchased, without charge
to the Grantee for any issue or transfer tax.

 

		(f)	The Committee may postpone any exercise of an Option for such time as the Committee in its discretion
may deem necessary, in order to permit the Bank with reasonable diligence to determine that the shares are qualified for delivery
under such securities laws and regulations as the Committee may deem to be applicable thereto; and the Bank shall not be obligated
by virtue of any Option Agreement or any provision of the Plan to recognize the exercise of an Option to sell or issue shares in
violation of any applicable law. Any such postponement shall not extend the Term of an Option; and neither the Bank nor its directors
or officers shall have any obligation or liability to the Grantee of an Option, or to the Grantee's Successor, with respect to
any shares as to which the Option shall lapse because of such postponement.

 

		(g)	All Options granted under the Plan shall not be transferable other than by will or by the laws
of descent and distribution or pursuant to a qualified domestic relations order as defined by the Code or Title I of ERISA, or
the rules thereunder, and may be exercised during the lifetime of the Grantee only by the Grantee, except that the Committee may
permit:

 

		(i)	exercise, during the Grantee's lifetime, by the Grantee's guardian or legal representative;

 

		(ii)	transfer, upon the Grantee's death, to beneficiaries designated by Grantee in a manner authorized
by the Committee, provided that the Committee determines that such exercise and such transfer are, with respect to an Incentive
Stock Option, consonant with the requirements of Section 422(b)(5) of the Code; and

 

		(iii)	transfers for estate planning purposes, if the Committee determines that such transaction is not
inconsistent with the purposes of this Plan, in its discretion.

 

		(h)	Upon the exercise of a Nonstatutory Stock Option by the Grantee, the stock certificate or certificates
may, at the request of the Grantee, be issued in the Grantee's name and the name of another person as joint tenants with right
of survivorship.

 

		(i)	The Committee may provide, in the Option Agreement, for the lapse of the Option, prior to the expiration
of its term, upon the occurrence of any event specified by the Committee.

 

    	 

    	 

    

 

		(j)	A person electing to exercise an Option shall give written notice, in such form as the Committee
may require, of such election to the Bank and shall tender to the Bank the full Option Price of the shares of Common Stock for
which the election is made.

 

		10.	Exercise of Options by Grantee on Cessation of Employment 

 

Except as otherwise specifically
provided for herein, employment for the purposes of this section shall mean continuous full-time salaried employment with the Bank
or a Subsidiary, except that vacations, sick leaves and other approved absences and severance pay periods shall be disregarded.
Employment for the purposes of this section may, at the discretion of the Committee, also include continuous full-time salaried
employment with a former Subsidiary under circumstances as determined by the Committee, which determination can be made either
at the time of granting an Option or afterward. The following limitations shall apply to any provisions the Committee shall make
in an Option Agreement for exercises of Options following cessation of employment.

 

		(a)	Except as provided in Section 10(b), (c) and (e) below, in the event Grantee ceases to be an employee
of the Bank through involuntary termination without cause by the Bank or any voluntary termination, all Options held by such Grantee
shall lapse on the date that is the earlier of (i) ninety (90) days following such termination, or (ii) the expiration date set
forth in such Option.

 

		(b)	If such termination is due to Retirement, all Options held by such Grantee shall lapse on the date
that is the earlier of (i) ninety (90) days after such termination in the case of the exercise of an Incentive Stock Option, except
as otherwise provided in Section (d) below, and, such period of time as determined by the Committee and set forth in the Agreement
evidencing such Option in the case of the exercise of a Nonstatutory Stock Option, or (ii) the expiration date set forth in such
Option.

 

		(c)	If such termination is due to Disability, all Options held by such Grantee shall lapse on the date
that is the earlier of (i) one (1) year after such termination in the case of the exercise of an Incentive Stock Option, except
as otherwise provided in Section (d) below, and, such period of time as determined by the Committee and set forth in the Agreement
evidencing such Option in the case of the exercise of a Nonstatutory Stock Option, or (ii) the expiration date set forth in such
Option.

 

		(d)	An Incentive Stock Option not exercised within ninety (90) days after the date of termination due
to Retirement or within twelve (12) months after the date of termination due to Disability or death shall not lapse and may be
exercised within such period of time as determined by the Committee after the date of such termination to the extent set forth
in the Agreement evidencing such Option (as the permitted period of exercise in such circumstances of a Nonstatutory Stock Option)
but will no longer be eligible for the treatment afforded Incentive Stock Options under Section 422 of the Code.

 

		(e)	If a Grantee should die while employed by the Company or any subsidiary of the Company or after
Disability or Retirement, any Option previously granted to the Grantee under this Plan may be exercised by the person designated
in such Grantee's last will and testament or, in the absence of such designation, by the Grantee's estate, to the full extent that
such Option could have been exercised by such Grantee immediately prior to the Grantee's death, but not later than the anniversary
of the Grantee's death in the case of the exercise of an Incentive Stock Option and such period of time as determined by the Committee
and set forth in the Agreement evidencing such Option in the case of the exercise of a Nonstatutory Stock Option.

 

		(f)	No exercises may occur after expiration of the Term of the Option.

 

		(g)	In the event Grantee ceases to be an employee of the Bank through involuntary termination for cause,
all Options held by such Grantee shall lapse immediately upon such termination. “For Cause” shall be determined by
the Board of Directors or with reference to the employee’s employment agreement, if any.

 

		11.	Exercise of Options by Grantee other than on Cessation of Employment

 

    	 

    	 

    

 

		(a)	In the event Grantee ceases to be a Non-Employee Director of the Bank through removal for cause
by the Bank, all Options held by such Grantee shall lapse immediately upon removal as a Director;

 

		(b)	In the event Grantee ceases to be a Non-Employee Director of the Bank due to Retirement, death
or Disability, or any reason other than removal for cause, all Options held by such Grantee shall continue until the expiration
of the Term.

 

		(c)	No exercises may occur after expiration of the Term of the Option.

 

		12.	Shareholders' Rights

 

No Grantee, and no beneficiary
or other person claiming through a Grantee, shall have any interest in any shares of Common Stock allocated for the purposes of
the Plan or subject to any Option until such shares of Common Stock shall have been transferred to the Grantee or such person.
Furthermore, the existence of the Options shall not affect: the right or power of the Bank or its stockholders to make adjustments,
recapitalizations, reorganizations or other changes in the Bank's capital structure; the dissolution or liquidation of the Bank,
or sale or transfer of any party of its assets or business; or any other corporate act, whether of a similar character or otherwise.

 

		13.	No Right to Employment or to Serve
                                                                      as a Director

 

		(a)	Nothing in the Plan or any instrument executed pursuant hereto shall confer upon any employee any
right to continue in the employ of the Bank nor shall anything in the Plan affect the right of the Bank to terminate the employment
of any employee, with or without cause.

 

		(b)	Nothing in the Plan or any instrument executed pursuant hereto shall confer upon any Non-Employee
Director any right to continue to serve as a Non-Employee Director of the Bank nor shall anything in the Plan affect the right
of the Board to remove a Non-Employee Director from the Board, with or without cause, in accordance with the Bank's Certificate
of Incorporation and By-laws.

 

		14.	Effect of Changes in Capitalization

 

		(a)	Changes in Common Stock. If the outstanding shares of Common Stock are increased or decreased
or changed into or exchanged for a different number or kind of shares or other securities of the Bank by reason of any recapitalization,
reclassification, stock split-up, combination of shares, exchange of shares, stock dividend or other distribution payable in capital
stock, or other increase or decrease in such shares effected without receipt of consideration by the Bank, occurring after the
effective date of the Plan, the number and kind of Shares or shares for the purchase of which Options may be granted under Section
5(a) of the Plan shall be adjusted proportionately and accordingly by the Committee. In addition, the number and kind of unit or
shares for which Options are outstanding shall be adjusted proportionately and accordingly so that the proportionate interest of
the holder of the Option immediately following such event shall, to the extent practicable, be the same as immediately prior to
such event. Any such adjustment in outstanding Options shall not change the aggregate Option Price payable with respect to Shares
or shares subject to the unexercised portion of the Option outstanding but shall include a corresponding proportionate adjustment
in the Option Price per share.

 

		(b)	Reorganization in Which the Bank is the Surviving Bank. Subject to subsection (c) hereof,
if the Bank shall be the surviving bank in any reorganization, merger, or consolidation of the Bank with one or more other banks,
any Option theretofore granted pursuant to the Plan shall pertain to and apply to the securities to which a holder of the number
of shares of Common Stock subject to such Option would have been entitled immediately following such reorganization, merger, or
consolidation, with a corresponding proportionate adjustment of the Option Price per share so that the aggregate Option Price thereafter
shall be the same as the aggregate Option Price of the shares remaining subject to the Option immediately prior to such reorganization,
merger, or consolidation.

 

		(c)	Reorganization in Which the Bank is Not the Surviving Bank or Sale of Assets or Stock. Upon
the dissolution or liquidation of the Bank, or upon a merger, consolidation or reorganization of the

 

    	 

    	 

    

 

Bank with one or more other banks in
which the Bank is not the surviving bank, or upon a sale of all or substantially all of the assets of the Bank to another bank,
or upon any transaction approved by the Board which results in any person or entity owning 80% or more of the combined voting power
of all classes of stock of the Bank, the Plan and all Options outstanding hereunder shall terminate, except to the extent provision
is made in writing in connection with such transaction for the continuation of the Plan and/or the assumption of the Options theretofore
granted, or for the substitution for such Options of new options or stock appreciation rights covering the stock of a successor
bank, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kinds of shares and exercise prices,
in which event the Plan and Options theretofore granted shall continue in the manner and under the terms so provided. In the event
of any such termination of the Plan, each individual holding an Option shall have the right (subject to the general limitations
as otherwise specifically provided in the Option Agreement relating to such Option), immediately prior to the occurrence of such
termination and during such period occurring prior to such termination as the Committee in its sole discretion shall determine
and designate, to exercise such Option in whole or in part, whether or not such Option was otherwise exercisable at the time such
termination occurs and without regard to any installment limitation on exercise imposed pursuant to Section 9 above. The Committee
shall send written notice of an event that will result in such a termination to all individuals who hold Options not later than
the time at which the Bank gives notice thereof to its shareholders.

 

		(d)	Adjustments. Adjustments under this Section 14 related to stock or securities of the Bank
shall be made by the Committee whose determination in that respect shall be final, binding, and conclusive. No fractional shares
of Common Stock or shares of other securities shall be issued pursuant to any such adjustment, and any fractions resulting from
any such adjustment shall be eliminated in each case by rounding downward to the nearest whole share or unit.

 

		(e)	No Limitations on Bank. The grant of an Option pursuant to the Plan shall not affect or
limit in any way the right or power of the Bank to make adjustments, reclassifications, reorganizations or changes of its capital
or business structure or to merge, consolidate, dissolve or liquidate, or to sell or transfer all or any part of its business or
assets.

 

		(f)	Issuance of Securities. Except as provided in this Section 14, the issuance by the Bank
of shares of stock of any class or securities convertible into shares of stock of any class, shall not affect the outstanding Options.

 

		15.	Change in Control

 

		(a)	Upon the occurrence of a Change in Control (as hereinafter defined), all Options shall become immediately
exercisable in full for the remainder of their terms.

 

		(b)	A "Change in Control" is the occurrence of any one of the following events:

 

		(i)	any Person (other than a Grantee, the Bank or any trustee or other fiduciary holding securities
under an employee benefit plan of the Bank (or of any subsidiary of the Bank)) is or becomes an "Acquiring Person";

 

		(ii)	less than eighty percent (80%) of the total membership of the Board shall be Continuing Directors;
or

 

		(iii)	the shareholders of the Bank shall approve a merger or consolidation of the Bank or a plan of complete
liquidation of the Bank or an agreement for the sale or disposition by the Bank of all or substantially all of the Bank's assets
to another Person, except in any such case in a transaction in which immediately after such merger, consolidation or sale, exchange
or transfer, the shareholders of the Bank, in their capacities as such and as a result thereof, shall own at least 50 percent in
voting power of the then outstanding securities of the Bank or of any surviving Person pursuant to any such merger (or of its parent),
the consolidated corporation or business entity in any such consolidation, or of the other Person to which such sale, exchange
or transfer of assets is made.

 

    	 

    	 

    

 

		(c)	A "Change in Control" shall be deemed not to have occurred if (A) such event is mandated
or directed by a regulatory body having jurisdiction over the Bank's operations; or (B) it occurs pursuant to the terms of a plan
for the acquisition of the capital stock of the Bank by a newly formed bank holding company if, in the consummation of such plan,
the shareholders of the Bank will receive, pro rata, all of the Common Stock of such bank holding company; unless, in such transaction,
a Person satisfies subsection (b)(i), (ii) or (iii) above.

 

		(d)	For purposes of this Section 15:

 

		(1)	"Acquiring Person" shall mean any Person who becomes after the Effective Date a "beneficial
owner" (as defined in Rule 13d-3 of the Exchange Act) of securities of the Bank representing twenty-five percent (25%)
or more of the combined voting power of the Bank's then outstanding voting securities, unless such Person has filed Form 13 G and
all required amendments thereto with respect to its holdings and continues to hold such securities for investment in a manner qualifying
such Person to utilize Form F-13G for reporting of ownership.

 

		(2)	"Affiliate" and "Associate" shall have the respective meanings ascribed to
such terms in Rule 12b-2 of the General Rules and Regulations under the Exchange Act as in effect on the date hereof.

 

		(3)	"Continuing Directors" shall mean any member of the Board who was a member of the Board
prior to the date hereof, and any successor of a Continuing Director while such successor is a member of the Board who is not an
Acquiring Person or an Affiliate or Associate of an Acquiring Person or of any such Affiliate or Associate and is recommended or
elected to succeed the Continuing Director by a majority of the Continuing Directors.

 

		(4)	"Person" shall mean any individual, corporation, partnership, group, association or other
"person", as such term is used in Section 13(d) and 14(d) of the Exchange Act.

 

		16.	Termination, Suspension or Modification of Plan

 

Provided no employee member
of the Board participates as provided by Section 4(c) hereof, the Board may at any time terminate, suspend or modify the Plan,
except that the Board shall not, without the authorization of the holders of a majority of the outstanding shares present or represented
and entitled to vote at a duly held meeting of the Bank’s shareholders, effect any change (other than through adjustment
for changes in capitalization as hereinabove provided) which (a) increases the aggregate number of Shares or shares for which Options
may be granted; (b) changes the class of employees eligible to be granted Options; (c) lowers the minimum Option Price or otherwise
materially increase the benefits accruing to Grantees through awards under the Plan; (d) renders any member of the Committee eligible
to receive an Option while serving thereon except as provided by the Plan; (e) extends the effective period of the Plan; or (f)
removes the restrictions set forth in Section 4(c). No termination, suspension or modification of the Plan shall adversely affect
any right acquired by any Grantee or any Successor under the terms of an Option granted before the date of such termination, suspension
or modification, unless such

 

    	 

    	 

    

 

Grantee or Successor shall consent; but it
shall be conclusively presumed that any adjustment for changes in capitalization as provided in Section 14 does not adversely affect
any such right.

 

Upon the dissolution or
liquidation of the Bank, the Plan shall terminate, and all Options previously granted shall lapse on the date of such dissolution
or liquidation.

 

		17.	Application of Proceeds

 

The proceeds received by the Bank from the
sale of its shares under the Plan will be used for general corporate purposes.

 

		18.	Legal Restrictions

 

The Bank will not be obligated
to issue Shares or shares of Common Stock or make any payment if counsel to the Bank determines that such issuance or payment would
violate any law or regulation of any governmental authority or any agreement between the Bank and any national securities exchange
or quotations system upon which the Common Stock is listed. In connection with any stock issuance or transfer, the person acquiring
the shares shall, if requested by the Bank, give assurances satisfactory to counsel to the Bank regarding such matters as the Bank
may deem desirable to assure compliance with all legal requirements. The Bank shall in no event be obliged to take any action in
order to cause the exercise of any Option.

 

The Options will be forfeitable
in the event the Bank needs to raise capital in order to be adequately capitalized under applicable bank regulatory requirements.
In such a case, Grantee will be notified in writing not less than 30 days prior to the date they are to be forfeited. Once forfeited,
the Options will no longer be outstanding and the holder thereof will have no rights with respect thereto.

 

		19.	Withholding Taxes

 

Each Grantee exercising
an Option as a condition to such exercise shall pay to the Bank the amount, if any, required to be withheld from distributions
resulting from such exercise under applicable Federal and State income tax laws and any portion of FICA that is due from Grantee
("Withholding Taxes"). Such Withholding Taxes shall be payable as of the date the payment is required from the Bank to
the taxing authority. The Committee may establish such procedures as it deems appropriate for the settling of withholding obligations
with shares of Common Stock, including, without limitation, the establishment of such procedures as may be necessary to comply
with Rule 16b-3.

 

		20.	Governing Laws

 

This Plan and all rights
thereunder shall be construed in accordance with and governed by the laws of the State of Connecticut. Although the Bank is not
currently subject to the provisions of Section 16 of the Exchange Act, the intent of this Plan is to qualify for the exemption
provided by Rule 16b-3 under the Exchange Act should the Bank ever become subject to those provisions. To the extent any provision
of the Plan does not comply with the requirements of Rule 16b-3, it shall be deemed inoperative to the extent permitted by law
and deemed advisable by the Committee and shall not affect the validity of the Plan. In the event Rule 16b-3 is revised or replaced,
the Committee may exercise discretion to modify this Plan in any respect necessary to satisfy the requirements of the revised exemption
or its replacement.

 

		21.	Nonexclusivity of the Plan

 

Neither the adoption of
the Plan nor the submission of the Plan to the shareholders of the Bank for approval shall be construed as creating any limitations
upon the right and authority of the Board to adopt such other incentive compensation arrangements (which arrangements may be applicable
either generally to a class or classes of individuals or specifically to a particular individual or individuals) as the Board in
its discretion determines desirable, including, without limitation, the granting of stock options or stock appreciation rights
other than under the Plan.Exhibit 10.7

 

2007 BANK OF NEW CANAAN STOCK AND EQUITY
AWARD PLAN

 

ARTICLE I

PURPOSE

 

The 2007 Bank of New Canaan
Stock and Equity Award Plan (the "Plan") is designed to reward certain individuals for their efforts and contributions
to the success of the Bank of New Canaan ("Bank") and to provide economic incentive for these contributions. This Plan
will enable such persons to acquire or increase a proprietary interest in the Bank, and thus to share in the future success of
the Bank's business. The availability of the Plan will contribute to attracting and retaining outstanding personnel who are in
a position to make important and direct contributions to the success of the Bank. The Plan will serve to promote a closer identity
of interests between the Bank's shareholders, Directors and Management. The Plan will become the Plan of BNC Financial Group, Inc.
upon the completion of the Bank's reorganization into a bank holding company structure. At that time, all references in this Plan
to "Bank", shall automatically be deemed to refer to "BNC Financial Group, Inc.".

 

ARTICLE II

DEFINITIONS

 

Section 2.1.          Definitions.

 

Whenever used herein, the
following terms shall have the meanings set forth below:

 

"Bank" means The Bank of
New Canaan.

 

"Board" means
the Board of Directors of the Bank.

 

"Code" means
the Internal Revenue Code of 1986, as amended, and the regulations thereunder.

 

"Committee" means
the Board's Personnel and Compensation Committee or any similar committee designated by the Board to serve the functions of the
Committee under the Plan. The Committee's responsibilities may be performed by the Board as a whole.

 

"Common Stock"
means the Bank's Common Stock, par value $1.00 per share. Upon the reorganization referenced in the Preamble above, "Common
Stock" shall mean common stock of BNC Financial Group, Inc., no par value.

 

"Director" means
a member of the Board.

 

"Disability,"
as applied to a Grantee, shall have the meaning set forth in Section 22(e)(3) of the Code.

 

"Eligible Grantee"
means such persons referred to in Article IV including Directors, officers and other employees of the Bank.

 

"ERISA" means
the Employee Retirement Income Security Act of 1974, as amended.

 

"Exchange Act"
means the Securities Exchange Act of 1934, as amended.

 

"Fair Market Value"
shall be determined by the Committee as follows:

 

		(i)	If the Bank's Common Stock is readily tradeable on an established securities market, the fair market
value shall be the average trading price of the stock for the 30-day period preceding the date of Grant. For these purposes, an
over-the-counter market may be considered an established securities market; or

 

    	 

    	 

    

 

		(ii)	If the Committee determines, in its reasonable discretion based on available information, that
the Common Stock is not "readily tradeable" (even if listed on an established securities market), the Committee may consider
such other information as, in its discretion, it determines is appropriate to more accurately determine fair market value on the
date of grant.

 

"Grant" means
individually or collectively, an award granted under the Plan of Incentive Stock Options or Nonstatutory Stock Options (Incentive
Stock Options and Non-statutory Stock Options are collectively referred to as "Options"), Restricted Stock, Restricted
Stock Units and/or Stock Appreciation Rights (hereinafter collectively referred to as "Grants").

 

"Grant Agreement"
means a written agreement in a form approved by the Committee to be entered into by the Bank and the Grantee of a Grant, as provided
in Section 5.1(c).

 

"Grantee" means
an Eligible Grantee to whom a Grant is made.

 

"Grant Date,"
as used with respect to a Grant, means the date on which such Grant is granted by the Committee pursuant to the Plan as set forth
in 6.1, 7.1 and 8.1 of the Plan.

 

"Incentive Stock Option"
means an Option described in Code Section 422(b).

 

"Non-Employee Director"
means a member of the Board who is not an employee of the Bank or any Subsidiary.

 

"Nonstatutory Stock
Option" means an Option that is not an Incentive Stock Option. All Options shall be Nonstatutory Stock Options unless identified
as Incentive Stock Options.

 

"Option" means
an option granted pursuant to the Plan to purchase the number of shares specified by the Grant.

 

"Option Price"
means the purchase price of each share of Common Stock subject to an Option set by the Committee in accordance with Section 6.3
of the Plan.

 

"Performance Goal"
means the objectives for the Eligible Grantee that may be established by the Committee for a Performance Period with respect to
any performance-based Grants contingently awarded under the Plan. The Performance Goals shall be based on criteria, either individually
or in any combination, specified by the Committee, applied individually, and measured over a period of time including any portion
of a year, annually or cumulatively over a period of years, on an absolute basis or relative to a pre-established target, to previous
years' results or to a designated comparison group, in each case as determined by the Committee. Notwithstanding the foregoing,
the Committee may, in its discretion, adjust Performance Goals as it considers necessary or appropriate.

 

"Performance Period"
means the period selected by the Committee during which the performance of any Eligible Grantee is measured for the purpose of
determining the extent to which a performance-based Grant subject to Performance Goals has been earned.

 

"Plan" means
The 2007 Bank of New Canaan Stock Option and Equity Award Plan, as amended from time to time.

 

"Retirement,"
as applied to an officer or other employee, shall mean when the officer's or other employee's employment with the Bank or any present
or future parent or Subsidiary of the Bank terminates upon reaching the normal age of retirement as established by the Board's
policies from time to time.

 

"Retirement,"
as applied to a Non-Employee Director, shall mean when the Non-Employee Director's term on the Board terminates due to age in accordance
with the Bank's current or future Bylaws or retirement policy, as applicable.

 

"Restricted Stock"
is a Grant described in Article VII of the Plan.

 

    	 

    	 

    

  

"Restricted Stock
Units" is a Grant described in Article VII of the Plan.

 

"Stock Appreciation
Right" is a Grant described in Article VIII of the Plan.

 

"Subsidiary"
means an entity of which, at the time such subsidiary status is to be determined, at least 50% of the total combined voting power
of all classes of stock of such entity is held by the Bank and its Subsidiaries (exclusive of ownership by the entity whose subsidiary
status is being determined).

 

"Successor" means
the legal representative of the estate of a deceased Grantee or the person or persons who shall acquire the right to exercise an
Option by bequest or inheritance or by reason of the death of the Grantee.

 

"Term" means
the period during which a particular Option or Stock Appreciation Right may be exercised.

 

ARTICLE III

ADMINISTRATION

 

Section 3.1.          Effective
Date and Duration of Plan. The Plan shall become effective as of the day of its adoption by the Board (the "Effective
Date") subject to approval of the Plan within one year of such Effective Date by the holders of a majority of the outstanding
shares of Common Stock present or represented and entitled to vote at a duly held meeting of the Bank's shareholders.

 

Unless previously terminated by the Board of
Directors or except as otherwise provided for herein, the Plan shall terminate, as to any shares as to which Options, Restricted
Stock, Restricted Stock Units or Stock Appreciation Rights have not theretofore been granted, on the tenth anniversary of the Effective
Date.

 

Section 3.2.          Administration
of the Plan.

 

(a)          The
Plan shall be administered by the Committee. The Committee shall consist of at least two "Non-Employee Directors" as
defined in Rule 16b-3 under the Exchange Act. Subject to the limitations of Section 3.2(b) hereof, nothing herein shall be deemed
to prohibit any employee director from serving on the Committee for purposes unrelated to the Plan. The Committee shall have the
responsibility of construing and interpreting the Plan and of establishing and amending such rules and regulations as it deems
necessary or desirable for the proper administration of the Plan. Any decision or action taken or to be taken by the Committee,
arising out of or in connection with the construction, administration, interpretation and effect of the Plan and of its rules and
regulations, shall, to the extent permitted by law, be within its absolute discretion (except as otherwise specifically provided
herein) and shall be conclusive and binding upon all Grantees and any person claiming under or through any Grantee.

 

(b)          Any
member of the Board or the Committee who is not a "Non Employee Director" shall be without vote on (i) any proposed amendment
to the Plan, or (ii) any other matter which might affect such member's individual interest under the Plan; nor shall such member's
presence be counted in determining whether a quorum is present at any meeting at which a vote involving the Plan or individual
rights thereunder is taken.

 

ARTICLE IV

ELIGIBILITY AND PARTICIPATION

 

The Committee shall select
the officers and other employees of the Bank who are eligible to receive Grants under the Plan. All Directors shall also be eligible
to receive Grants under the Plan.

 

ARTICLE V

GRANTS

 

Section 5.1.          Grants.

 

(a)          Type
of Grants under the Plan. Grants may consist of awards of Options, Restricted Stock, Restricted Stock Units and/or Stock Appreciation
Rights. Grants may be awarded singly or in combination with other Grants. All Grants shall be subject to the terms and conditions
set forth herein and to such other terms and conditions consistent with this Plan as the Committee deems appropriate and as are
specified in writing by the

 

    	 

    	 

    

 

Committee to the Grantee in the Grant Agreement.
The Committee shall approve the form and provisions of each Grant Agreement.

 

(b)          Grant
Determination. The Committee shall have plenary authority, subject to the provisions of the Plan, to (i) determine the type,
size and terms of Grants to be awarded to each Grantee; (ii) determine the time when the Grants will be made and the duration of
any applicable exercise or restriction period, including the criteria for acceleration of exercisability of Options and Stock Appreciation
Rights, provided that no Incentive Stock Option shall be granted which is exercisable after the expiration of ten (10) years from
the date it is granted, (iii) accelerate the vesting of all or any portion of Grants, (iv) if applicable, establish and review
Grantee's performance against applicable Performance Goals for the Performance Period, and (v) establish such rules and regulations
or take such action as it deems necessary or advisable for the proper administration of the Plan, including the authority to re-grant
forfeited awards and to determine to whom such awards shall be granted. The Committee's consideration of Grants to be made under
the Plan shall be made in consultation with and after considering the recommendations of the Bank's Chief Executive Officer and,
if different person, president (except as to their individual awards.) If the Bank completes it reorganization into BNC Financial
Group, Inc., recommendations will be required of the President of both the relevant Bank and BNC Financial Group, Inc.

 

(c)          Grant
Agreement.

 

		(i)	The Grantee shall execute a Grant Agreement with the Bank containing such terms and conditions,
not inconsistent with the Plan, as may be approved by the Committee. The terms and conditions of Grant Agreements may vary from
Grantee to Grantee.

 

		(ii)	The Committee may amend a Grant Agreement from time to time consistent with this Plan.

 

		(iii)	Appropriate officers of the Bank are hereby authorized to execute (by facsimile or manually affixed
signature) and deliver Grant Agreements, and amendments thereto, in the name of the Bank as directed from time to time by the Committee.

 

Section 5.2.          Shares
Subject to the Plan. Subject to adjustment in accordance with Sections 5.3 and 9.5, the aggregate number of shares of Common
Stock that may be subject to Grants or transferred on account of Grants under the Plan may not exceed 152,719 shares, except
as follows. If the Bank completes a private placement of Common Stock prior to the end of 2007, this number shall be increased
by a number equal to fifteen percent (15%) of that number of shares sold in the private placement. The shares may be authorized
but unissued shares of Common Stock or reacquired shares of Common Stock. If and to the extent (i) Options or Stock Appreciation
Rights granted under the Plan terminate, expire, or are canceled, forfeited, exchanged or surrendered without having been exercised
(other than for reasons of the Exercise Price of the Option or the Base Price of the Stock Appreciation Right being less than the
current Fair Market Value thereof), or (ii) any shares of Restricted Stock or Restricted Stock Units are forfeited, or (iii) shares
of Common Stock and are used by the Participant to pay withholding taxes or as payment for the Exercise Price of the Option or
the Base Price of the Stock Appreciation Right, then the shares not made the subject of Grants, and the shares subject to such
terminated, expired, canceled, forfeited, exchanged or surrendered Grants shall again be available for purposes of the Plan in
addition to the number of shares of Common Stock made the subject of awards that are otherwise available for Grants.

 

Section 5.3.          Effect
of Changes in Capitalization.

 

(a)          Changes
in Common Stock. If the outstanding shares of Common Stock are increased or decreased or changed into or exchanged for a different
number or kind of shares or other securities of the Bank by reason of any recapitalization, reclassification, stock split-up, combination
of shares, exchange of shares, stock dividend or other distribution payable in capital stock, or other increase or decrease in
such shares effected without receipt of consideration by the Bank, occurring after the effective date of the Plan, the number and
kind of shares of Common Stock available for Grants, the number of shares covered by outstanding Grants and the price per share
or the applicable market value of such Grants, including a per share exercise price of Options and Stock Appreciation Rights,
shall be adjusted by the Committee as it deems equitable and appropriate under the circumstances subject to GAAP and any applicable
IRS regulations.

 

    	 

    	 

    

 

(b)          Reorganization
in Which the Bank is the Surviving Bank. Subject to subsection (c) hereof, if the Bank shall be the surviving bank in any reorganization,
merger, or consolidation of the Bank with one or more other banks, any Grant theretofore awarded pursuant to the Plan shall pertain
to and apply to the securities to which a holder of the number of shares of Common Stock subject to such Grant would have been
entitled immediately following such reorganization, merger, or consolidation, shall be adjusted proportionately and accordingly
by the Committee to reflect any increase or decrease in the numbers of or change the kind or value of issued shares of Common Stock
to preclude, to the extent practicable, the enlargement or dilution of rights and benefits under such Grants; provided, however,
that any fractional shares resulting from such adjustment shall be eliminated prior to such reorganization, merger, or consolidation.

 

(c)          Reorganization
in Which the Bank is Not the Surviving Bank or Sale of Assets or Stock. Upon the dissolution or liquidation of the Bank, or
upon a merger, consolidation or reorganization of the Bank with one or more other banks in which the Bank is not the surviving
bank, or upon a sale of all or substantially all of the assets of the Bank to another Company, or upon any transaction approved
by the Board which results in any person or entity owning 80% or more of the combined voting power of all classes of stock of the
Bank, the Plan and all Grants outstanding hereunder shall terminate, except to the extent provision is made in writing in connection
with such transaction for the continuation of the Plan and/or the assumption of the Grants theretofore awarded, or for the substitution
for such Grants covering the stock of a successor bank, or a parent or subsidiary thereof, with appropriate adjustments as to the
number and kinds of shares and exercise prices, in which event the Plan and Grants theretofore awarded shall continue in the manner
and under the terms so provided. In the event of any such termination of the Plan, each individual holding a Grant shall have the
right (subject to the general limitations as otherwise specifically provided in the Grant Agreement relating to such Grant), immediately
prior to the occurrence of such termination and during such period occurring prior to such termination as the Committee in its
sole discretion shall determine and designate, to exercise or settle such Grant in whole or in part, whether or not such Grant
was otherwise exercisable or available for settlement at the time such termination occurs and without regard to any installment
limitation on exercise imposed pursuant to the Plan. The Committee shall send written notice of an event that will result in such
a termination to all individuals with outstanding rights pursuant to such Grants not later than the time at which the Bank gives
notice thereof to its shareholders.

 

(d)          Adjustments.
Adjustments under this Article V related to stock or securities of the Bank shall be made by the Committee whose determination
in that respect shall be final, binding, and conclusive. No fractional shares of Common Stock or shares of other securities shall
be issued pursuant to any such adjustment, and any fractions resulting from any such adjustment shall be eliminated in each case
by rounding downward to the nearest whole share or unit.

 

(e)          No
Limitations on Bank. The Grants of awards pursuant to the Plan shall not affect or limit in any way the right or power of the
Bank to make adjustments, reclassifications, reorganizations or changes of its capital or business structure or to merge, consolidate,
dissolve or liquidate, or to sell or transfer all or any part of its business or assets.

 

(f)          Issuance
of Securities. Except as provided in this Section 5.3, the issuance by the Bank of shares of Common Stock or securities convertible
into shares of Common Stock of any class, shall not affect the outstanding Grants.

 

ARTICLE VI

OPTIONS

 

Section 6.1.          Grant
of Options: Number and Source of Shares Subject to the Plan.

 

(a)          The
Committee may award Options to a Grantee subject to the limits under Section 5. 2. The number of shares of Common Stock which may
be sold pursuant to Options under the Plan shall be determined consistent with limits under Article V of the Plan. Any shares of
Common Stock to be delivered by the Bank upon the exercise of Options may, at the discretion of the Board of Directors, be authorized
but unissued shares, reacquired shares or shares bought on the market for purposes of the Plan.

 

(b)          The
Committee may award available Options (including re-grant of forfeited Options) to Non-Employee Directors at an Option Price equal
to the Fair Market Value on the Grant Date; provided, further, that

 

    	 

    	 

    

 

Options may be awarded to Non-Employee Directors
while serving thereon provided such awards are first specifically approved by the Board with such Non-Employee Directors abstaining
from such Board action.

 

(c)         The
Grant Date of an Option shall be the date on which the Committee's action is final or such later date as specified by the Committee.

 

(d)          In
the event that any Option expires, lapses or otherwise terminates prior to being fully exercised, any share of Common Stock allocable
to the unexercised portion of such Option may again be made subject to an Option.

 

Section 6.2.          Limitation
on Incentive Stock Options. The aggregate Fair Market Value (determined at the date an Incentive Stock Option is granted) of
the shares with respect to which Incentive Stock Options are exercisable for the first time by a Grantee during any calendar year
(under the Plan or any other plan maintained by the Bank or its subsidiaries) shall not exceed $100,000. Options so exceeding the
$100,000 level, if any, shall be Nonstatutory Stock Options.

 

Section 6.3.          Option
Price. The Option Price shall be fixed by the Committee and stated in each Grant Agreement and, except as set forth hereafter,
shall be not less than the greater of par value or 100% of the Fair Market Value of a share of the Common Stock on the Grant Date
of the Option (as determined in good faith by the Committee). Notwithstanding the foregoing, in the event the Grantee would otherwise
be ineligible to receive an Incentive Stock Option by reason of the provisions of Sections 422(b)(6) and 424(d) of the Code (relating
to stock ownership of more than 10%), the Option Price of an Option that is intended to be an Incentive Stock Option shall be not
less than the greater of par value or 110% of the Fair Market Value of a share of Common Stock on the Grant Date of such Option.
The Committee may not modify the applicable Option Price set on the Grant Date established in accordance with Section 6.1(c) and
this Section 6.3. Payment of the Option Price shall be made in cash or in such other form as the Committee may approve, including
shares of Common Stock of the Bank valued at the Fair Market Value on the date of exercise of the Option, or a combination of cash
and/or such other form of property, or by delivery of a properly executed exercise notice together with irrevocable instructions
to a broker to deliver promptly to the Bank sale or loan proceeds sufficient to pay the Option Price.

 

Section 6.4.         Terms
and Exercise of Options; Limitations on Exercise and Transferability of Options.

 

(a)          Each
Option granted under the Plan shall be exercisable only during a Term commencing on the Grant Date, unless otherwise specified
in the Grant Agreement, and ending (unless the Option shall have terminated earlier under other provisions of the Plan) on a date
to be fixed by the Committee but in no event later than the tenth anniversary of its date of grant; provided, however, that in
the event the Grantee would otherwise be ineligible to receive an Incentive Stock Option by reason of the provisions of Sections
422(b)(6) and 424(d) of the Code (relating to stock ownership of more than 10%), an Option granted to such Grantee that is intended
to be an Incentive Stock Option shall in no event be exercisable after the expiration of five years from the date it is granted.

 

(b)          The
Committee shall have authority to grant Options exercisable in full at any time during their Term, or exercisable in cumulative
or non-cumulative installments.

 

(c)          Notwithstanding
the provisions of subparagraph (b) hereof, an Option or portion thereof that has vested shall become fully exercisable upon the
occurrence of the Grantee's death or withdrawal from the Board by reason of such person's Retirement or Disability, or on the day
preceding a reorganization in which the Bank is not the surviving bank or sale of assets or stock as described in Section 5.3.

 

(d)          Options
shall be exercised in whole or in part in accordance with the procedures set forth in the Grantee's Grant Agreement.

 

(e)          Subject
to the provisions of subsection (f) hereof, upon compliance by the Grantee with such terms of exercise, the Bank shall promptly
deliver to the Grantee a certificate or certificates for the shares purchased, without charge to the Grantee for any issue or transfer
tax.

 

(f)          The
Committee may postpone any exercise of an Option for such time as the Committee in its discretion may deem necessary, in order
to permit the Bank with reasonable diligence to determine that the shares are qualified for delivery under such securities laws
and regulations as the Committee may deem to be applicable

 

    	 

    	 

    

 

thereto; and the Bank shall not be obligated
by virtue of any Grant Agreement or any provision of the Plan to recognize the exercise of an Option to sell or issue shares in
violation of any applicable law. Any such postponement shall not extend the Term of an Option; and neither the Bank nor its directors
or officers shall have any obligation or liability to the Grantee of an Option, or to the Grantee's Successor, with respect to
any shares as to which the Option shall lapse because of such postponement.

 

(g)          All
Options granted under the Plan shall not be transferable other than by will or by the laws of descent and distribution or pursuant
to a qualified domestic relations order as defined by the Code or Title I of ERISA, or the rules thereunder, and may be exercised
during the lifetime of the Grantee only by the Grantee, except that the Committee may permit:

 

		(i)	exercise, during the Grantee's lifetime, by the Grantee's guardian or legal representative;

 

		(ii)	transfer, upon the Grantee's death, to beneficiaries designated by Grantee in a manner authorized
by the Committee, provided that the Committee determines that such exercise and such transfer are, with respect to an Incentive
Stock Option, consistent with the requirements of Section 422(b)(5) of the Code; and

 

		(iii)	transfers for estate or other personal financial planning purposes, if the Committee determines
that such transaction is not inconsistent with the purposes of this Plan, in its discretion.

 

(h)          Upon
the exercise of a Nonstatutory Stock Option by the Grantee, the stock certificate or certificates may, at the request of the Grantee,
be issued in the Grantee's name and the name of another person as joint tenants with right of survivorship.

 

(i)          The
Committee may provide, in the Grant Agreement, for the lapse of the Option, prior to the expiration of its Term, upon the occurrence
of any event specified by the Committee. The Committee may also provide, in the Grant Agreement or by subsequent determination,
for extension of a Term of an Option beyond a termination of employment, provided the Term is not extended beyond its original
expiration date or, if earlier, the 10th anniversary date following the Grant Date.

 

(j)          A
person electing to exercise an Option shall give written notice, in such form as the Committee may require, of such election to
the Bank and shall tender to the Bank the full Option Price of the shares of Common Stock for which the election is made.

 

Section 6.5.          Exercise
of Options by Grantee on Cessation of Employment. Except as otherwise specifically provided for herein, employment for the
purposes of this Section shall mean continuous full-time salaried employment with the Bank or a Subsidiary, except that vacations,
sick leaves and other approved absences and severance pay periods shall be disregarded. Employment for the purposes of this section
may, at the discretion of the Committee, also include continuous full-time salaried employment with a former Subsidiary under circumstances
as determined by the Committee, which determination can be made either at the time of granting an Option or afterward. The following
limitations shall apply to any provisions the Committee shall make in a Grant Agreement for exercises of Options following cessation
of employment.

 

(a)          Except
as provided in Section 6(b), (c) and (e) below, in the event Grantee ceases to be an employee of the Bank through involuntary termination
without cause by the Bank or any voluntary termination, all Options held by such Grantee shall lapse on the date that is the earlier
of (i) ninety (90) days following such termination, or (ii) the expiration date set forth in such Option.

 

(b)          If
such termination is due to Retirement, all Options held by such Grantee shall lapse on the date that is the earlier of (i) ninety
(90) days after such termination in the case of the exercise of an Incentive Stock Option, except as otherwise provided in Section
(d) below, and, such period of time as determined by the Committee and set forth in the Agreement evidencing such Option in the
case of the exercise of a Nonstatutory Stock Option, or (ii) the expiration date set forth in such Option.

 

(c)          If
such termination is due to death or Disability, all Options held by such Grantee shall lapse on the date that is the earlier of
(i) one (1) year after such termination in the case of the exercise of an Incentive Stock

 

    	 

    	 

    

 

Option, except as otherwise provided in Section
(d) below, and, such period of time as determined by the Committee and set forth in the Agreement evidencing such Option in the
case of the exercise of a Nonstatutory Stock Option, or (ii) the expiration date set forth in such Option.

 

(d)          An
Incentive Stock Option not exercised within ninety (90) days after the date of termination due to Retirement or within twelve (12)
months after the date of termination due to Disability or death shall not lapse and may be exercised within such period of time
as determined by the Committee after the date of such termination to the extent set forth in the Agreement evidencing such Option
(as the permitted period of exercise in such circumstances of a Nonstatutory Stock Option) but will no longer be eligible for the
treatment afforded Incentive Stock Options under Section 422 of the Code.

 

(e)          If
a Grantee should die while employed by the Bank or a Subsidiary of the Bank or after Disability or Retirement, any Option previously
granted to the Grantee under this Plan may be exercised by the person designated in such Grantee's last will and testament or,
in the absence of such designation, by the Grantee's estate, to the full extent that such Option could have been exercised by such
Grantee immediately prior to the Grantee's death, but not later than the anniversary of the Grantee's death in the case of the
exercise of an Incentive Stock Option and such period of time as determined by the Committee and set forth in the Agreement evidencing
such Option in the case of the exercise of a Nonstatutory Stock Option.

 

(f)          No
exercises may occur after expiration of the Term of the Option.

 

(g)          In
the event Grantee ceases to be an employee of the Bank through involuntary termination for cause, all Options held by such Grantee
shall lapse immediately upon such termination. "For Cause" shall be determined by the Board of Directors or with reference
to the employee's employment agreement, if any.

 

Section 6.6.          Exercise
of Options by Grantee other than on Cessation of Employment.

 

(a)          In
the event Grantee ceases to be a Non-Employee Director of the Bank through removal for cause by the Bank, all Options held by such
Grantee shall lapse immediately upon removal as a Director.

 

(b)          In
the event Grantee ceases to be a Non-Employee Director of the Bank due to Retirement, death or Disability, or any reason other
than removal for cause, all Options held by such Grantee shall continue until the expiration of the Term.

 

(c)          No
exercises may occur after expiration of the Term of the Option.

 

ARTICLE VII

RESTRICTED STOCK AND RESTRICTED STOCK UNITS

 

Section 7.1 (a) Restricted Stock Grants.
Subject to the limits under Section 5.2, the Committee may award shares of Common Stock to a Grantee with such restrictions as
the Committee deems appropriate ("Restricted Stock").

 

(b)          General
Requirements. Shares of Common Stock issued or transferred pursuant to Restricted Stock Grants may be awarded pursuant to conditions
established by the Committee under which restrictions on shares of Restricted Stock shall lapse over a period of time or according
to such other criteria as the Committee deems appropriate. The period of time during which the Restricted Stock will remain subject
to restrictions (the "Restriction Period") will be designated in the Grant Agreement.

 

(c)          Number
of Shares. The Committee shall determine the number of shares of Common Stock to be awarded pursuant to a Restricted Stock
Grant and the restrictions applicable to such shares, subject to the limitations contained in Section 5.2.

 

(d)          Disposition
of Restricted Stock on Cessation of Employment. Except as otherwise specifically provided for herein, employment for the purposes
of this subsection shall mean continuous full-time salaried employment with the Bank or a Subsidiary, except that vacations, sick
leaves and other approved absences and severance pay periods shall be disregarded. Employment for the purposes of this subsection
may, at the discretion of the Committee, also include continuous full-time salaried employment with a former Subsidiary under circumstances
as determined by the Committee, which determination can be made either at the time of the Restricted

 

    	 

    	 

    

 

Stock Grant or afterward. The following limitations
shall apply to any provisions the Committee shall make in a Grant Agreement as to all shares covered by the Restricted Stock Grant
following cessation of employment.

 

		(i)	Except as provided in paragraphs (ii), (iii) and (iv) below, in the event Grantee ceases to be
an employee of the Bank during the Restriction Period through involuntary termination without cause by the Bank or any voluntary
termination, the Restricted Stock Grant to such Grantee shall terminate as to all shares covered by such Grant as to which the
restrictions have not lapsed.

 

		(ii)	If such termination is due to Retirement, the Restricted Stock Grant to such Grantee shall terminate
as to all shares covered by such Grant on the date determined by the Committee and set forth in the Grant Agreement evidencing
such Grant.

 

		(iii)	If such termination is due to death or Disability, the Restricted Stock Grant to such Grantee shall
terminate as to all shares covered by such Grant on the date determined by the Committee and set forth in the Grant Agreement evidencing
such Grant.

 

		(iv)	If a Grantee should die while employed by the Bank or a Subsidiary of the Bank or after Disability
or Retirement, any Restricted Stock Grant made to the Grantee under this Plan may be settled by the person designated in such Grantee's
last will and testament or, in the absence of such designation, by the Grantee's estate, to the full extent that such Restricted
Stock Grant could have been settled by such Grantee immediately prior to the Grantee's death, but not later than such period of
time as determined by the Committee and set forth in the Grant Agreement evidencing such Grant.

 

		(v)	In the event Grantee ceases to be an employee of the Bank through involuntary termination for cause,
the Restricted Stock Grant to such Grantee shall terminate as to all shares covered by such Grant immediately upon such involuntary
termination. "For Cause" shall be determined by the Board of Directors or with reference to the employee's employment
agreement, if any.

 

(e)          Disposition
of Restricted Stock by Grantee other than on Cessation of Employment.

 

		(i)	In the event Grantee ceases to be a Non-Employee Director of the Bank through removal for cause
by the Bank, the Restricted Stock Grant to such Grantee shall terminate as to all shares covered by such Grant immediately upon
removal as a Director.

 

		(ii)	In the event Grantee ceases to be a Non-Employee Director of the Bank due to Retirement, death
or Disability, or any reason other than removal for cause, the Restricted Stock Grant to such Grantee shall terminate as to all
shares covered by such Grant on the date that is determined by the Committee and set forth in the Agreement evidencing such Grant.

 

(f)          Restrictions
on Transfer and Legend on Share Certificate. During the Restriction Period, a Grantee may not sell, assign, transfer, pledge
or otherwise dispose of the shares of Restricted Stock except to a permitted Successor. The Committee may determine that the Bank
will issue certificates for shares of Restricted Stock, in which case each certificate for a share of Restricted Stock shall contain
a legend giving appropriate notice of the restrictions in the Grant. The Grantee shall be entitled to have the legend removed from
the share certificate covering the shares subject to restrictions when all restrictions on such shares have lapsed. The Committee
may determine that the Bank will not issue certificates for shares of Restricted Stock until all restrictions on such shares have
lapsed, or that the Bank will retain possession of certificates for shares of Restricted Stock until all restrictions on such shares
have lapsed.

 

(g)          Right
to Vote and to Receive Dividends. Unless the Committee determines otherwise, in its discretion, the Grantee shall have the
right to vote Restricted Stock. From the date of the Restricted Stock Grant through the earlier of (i) the date such Restricted
Stock is forfeited, and (ii) the date certificates evidencing share of Common Stock are delivered, the Grantee shall be entitled
to receive dividends or other distributions paid on such shares; as deemed appropriate by the Committee; provided, however, that
any such dividend equivalents shall not be

 

    	 

    	 

    

 

payable unless and until the date certificates
evidencing the shares of Common Stock are delivered to the Grantee as provided above.

 

(h)          Lapse
of Restrictions. All restrictions imposed on Restricted Stock shall lapse upon the expiration of the applicable Restriction
Period and the satisfaction of all conditions imposed by the Committee. The Committee may determine, as to any or all Restricted
Stock Grants, that the restrictions shall lapse without regard to any Restriction Period.

 

Section 7.2.          Restricted
Stock Unit Grants.

 

(a)          Restriction
Period. Subject to the limits under Section 5.2, the Committee may grant Restricted Stock Units to Grantees representing the
right to receive shares of Common Stock, cash, or both, as determined by the Committee. At the end of the Restriction Period, cash
or shares or both shall be delivered to the Grantee (unless previously forfeited). Restricted Stock Units may not be sold, assigned,
transferred, pledged or otherwise encumbered during the Restriction Period. A Grantee of Restricted Stock Units shall have none
of the rights of a holder of Common Stock unless and until shares of Common Stock are actually delivered in satisfaction of such
Restricted Stock Units.

 

(b)          Number
of Units. The Committee shall determine the number of Restricted Stock Units pursuant to a Restricted Stock Unit Grant and
the restrictions applicable to such shares, subject to the limitations contained in Section 5.2.

 

(c)          Disposition
of Restricted Stock Units on Cessation of Employment. Except as otherwise specifically provided for herein, employment for
the purposes of this subsection shall mean continuous full-time salaried employment with the Bank or a Subsidiary, except that
vacations, sick leaves and other approved absences and severance pay periods shall be disregarded. Employment for the purposes
of this subsection may, at the discretion of the Committee, also include continuous full-time salaried employment with a former
Subsidiary under circumstances as determined by the Committee, which determination can be made either at the time Restricted Stock
Units are granted or afterward. The following limitations shall apply to any provisions the Committee shall make in a Grant Agreement
as to all shares covered by the grant of Restricted Stock Units following cessation of employment.

 

		(i)	Except as provided in paragraphs (ii), (iii) and (iv) below, in the event Grantee ceases to be
an employee of the Bank during the Restriction Period through involuntary termination without cause by the Bank or any voluntary
termination, the Restricted Stock Units awarded to such Grantee shall terminate as to all shares covered by such Grant as to which
the restrictions have not lapsed.

 

		(ii)	If such termination is due to Retirement, the Restricted Stock Units awarded to such Grantee shall
terminate as to all shares covered by such Grant on the date determined by the Committee and set forth in the Grant Agreement evidencing
such Grant.

 

		(iii)	If such termination is due to death or Disability, the Restricted Stock Units awarded to such Grantee
shall terminate as to all shares covered by such Grant on the date determined by the Committee and set forth in the Grant Agreement
evidencing such Grant.

 

		(iv)	If a Grantee should die while employed by the Company or any subsidiary of the Company or after
Disability or Retirement, any grant of Restricted Stock Units made to the Grantee under this Plan may be settled by the person
designated in such Grantee's last will and testament or, in the absence of such designation, by the Grantee's estate, to the full
extent that such award of Restricted Stock Units could have been settled by such Grantee immediately prior to the Grantee's death,
but not later than such period of time as determined by the Committee and set forth in the Grant Agreement evidencing such Grant.

 

		(v)	In the event Grantee ceases to be an employee of the Bank through involuntary termination for cause,
the award of Restricted Stock Units to such Grantee shall terminate

 

    	 

    	 

    

 

as to all shares covered by such
Grant immediately upon such involuntary termination. "For Cause" shall be determined by the Board of Directors or with
reference to the employee's employment agreement, if any.

 

(d)          Disposition
of Restricted Stock Units by Grantee other than on Cessation of Employment.

 

		(i)	In the event Grantee ceases to be a Non-Employee Director of the Bank through removal for cause
by the Bank, the award of Restricted Stock Units to such Grantee shall terminate as to all shares covered by such Grant immediately
upon removal as a Director.

 

(ii)         In
the event Grantee ceases to be a Non-Employee Director of the Bank due to Retirement, death or Disability, or any reason other
than removal for cause, the award of Restricted Stock Units to such Grantee shall terminate as to all shares covered by such Grant
on the date that is determined by the Committee and set forth in the Agreement evidencing such Grant.

 

ARTICLE VIII

STOCK APPRECIATION RIGHTS

 

Section 8.1.          Stock
Appreciation Rights.

 

(a)          General
Requirements. The Committee may award Stock Appreciation Rights to a Grantee subject to the limits under Section 5.2. The Committee
shall establish the base amount of the Stock Appreciation Right on the Grant Date of the Stock Appreciation Right. The base amount
of each Stock Appreciation Right shall be equal to the Fair Market Value of a share of Common Stock as of the Grant Date of the
Stock Appreciation Right ("Base Amount"). The Committee may not modify the applicable Base Amount of the Stock Appreciation
Right after the Grant Date.

 

(b)          Terms
and Exercise of Stock Appreciation Rights; Limitations on Exercise and Transferability of Stock Appreciation Rights. Each Stock
Appreciation Right granted under the Plan shall be exercisable only during a Term commencing on the Grant Date, unless otherwise
specified in the Grant Agreement, and ending (unless the Stock Appreciation Right shall have terminated earlier under other provisions
of the Plan) on a date to be fixed by the Committee but in no event later than the tenth anniversary of its Grant Date.

 

(c)          Exercise
of Stock Appreciation Rights by Grantee on Cessation of Employment. Except as otherwise specifically provided for herein, employment
for the purposes of this Section shall mean continuous full-time salaried employment with the Bank or a Subsidiary, except that
vacations, sick leaves and other approved absences and severance pay periods shall be disregarded. Employment for the purposes
of this section may, at the discretion of the Committee, also include continuous full-time salaried employment with a former Subsidiary
under circumstances as determined by the Committee, which determination can be made either at the time of granting a Stock Appreciation
Right or afterward. The following limitations shall apply to any provisions the Committee shall make in a Grant Agreement for exercises
of Stock Appreciation Rights following cessation of employment.

 

(d)          Except
as provided in Section 8(i), (ii) and (iii) below, in the event Grantee ceases to be an
employee of the Bank through involuntary termination without cause by the Bank or any voluntary termination, all Stock Appreciation
Rights held by such Grantee shall lapse on the date that is the earlier of (i) ninety (90) days following such termination, or
(ii) the expiration date set forth in such Stock Appreciation Right.

 

		(i)	If such termination is due to Retirement, all Stock Appreciation Rights held by such Grantee shall
lapse on the expiration date set forth in the Grant Agreement evidencing an award of Stock Appreciation Rights.

 

		(ii)	If such termination is due to death or Disability, all Stock Appreciation Rights held by such Grantee
shall lapse on the expiration date set forth in the Grant Agreement evidencing an award of Stock Appreciation Rights.

 

		(iii)	If a Grantee should die while employed by the Bank or a Subsidiary or after Disability or Retirement,
any Stock Appreciation Right granted to the Grantee under this Plan may be exercised by the person designated in such Grantee's
last will and testament or, in the

 

    	 

    	 

    

 

absence of such designation, by the
Grantee's estate, to the full extent that such Stock Appreciation Right could have been exercised by such Grantee immediately prior
to the Grantee's death, but not later than such period of time as determined by the Committee and set forth in the Grant Agreement
evidencing such Stock Appreciation Right.

 

		(iv)	No exercises may occur after expiration of the Term of the Stock Appreciation Right.

 

		(v)	In the event Grantee ceases to be an employee of the Bank through involuntary termination for cause,
all Stock Appreciation Rights held by such Grantee shall lapse immediately upon such termination. "For Cause" shall be
determined by the Board of Directors or with reference to the employee's employment agreement, if any.

 

(e)          Exercise
of Stock Appreciation Rights by Grantee other than on Cessation of Employment.

 

		(i)	In the event Grantee ceases to be a Non-Employee Director of the Bank through removal for cause
by the Bank, all Stock Appreciation Rights held by such Grantee shall lapse immediately upon removal as a Director.

 

		(ii)	In the event Grantee ceases to be a Non-Employee Director of the
Bank due to Retirement, death or Disability, or any reason other than removal for cause, all Stock Appreciation Rights held by
such Grantee shall continue until the expiration of the Term.

 

(iii) No exercises
may occur after expiration of the Term of the Stock Appreciation Right.

 

(f)          Value
of Stock Appreciation Rights. When a Grantee exercises Stock Appreciation Rights, the Grantee shall receive in settlement thereof,
shares of Common Stock, cash, or both, as determined by the Committee, equal to the "spread value" for the number of
Stock Appreciation Rights exercised. The "spread value" for a Stock Appreciation Right is the amount representing the
difference by which the Fair Market Value of the underlying Common Stock on the date of exercise of the Stock Appreciation Right
exceeds the Base Amount of the Stock Appreciation Right as described in subsection (a).

 

(g)          Form
of Payment. For purposes of calculating the amount of shares of Common Stock, cash, or both, to be received, shares of Common
Stock shall be valued at their Fair Market Value on the date of exercise of the Stock Appreciation Right and shall be distributed,
subject to Section 9.6, net of applicable withholding taxes.

 

ARTICLE IX

MISCELLANEOUS

 

Section 9.1.          Shareholders'
Rights. The existence of Grants shall not affect: the right or power of the Bank or its stockholders to make adjustments, recapitalizations,
reorganizations or other changes in the Bank's capital structure; the dissolution or liquidation of the Bank, or sale or transfer
of any party of its assets or business; or any other corporate act, whether of a similar character or otherwise.

 

Section 9.2.          No
Right to Employment or to Serve as a Director.

 

(a)          Nothing
in the Plan or any instrument executed pursuant hereto shall confer upon any employee any right to continue in the employ of the
Bank nor shall anything in the Plan affect the right of the Bank to terminate the employment of any employee, with or without cause.

 

(b)          Nothing
in the Plan or any instrument executed pursuant hereto shall confer upon any Non-Employee Director any right to continue to serve
as a Non-Employee Director of the Bank nor shall anything in the Plan affect the right of the Board to remove a Non-Employee Director
from the Board, with or without cause, in accordance with the Bank's Certificate of Incorporation and By-laws.

 

Section 9.3.          Change
in Control.

 

(a)          Notwithstanding
any other provision of the Plan, in the event of a Change in Control described in subsection (b), all restrictions and risks of
forfeiture on Grants (other than those imposed by law or regulation) shall

 

    	 

    	 

    

 

lapse, all vesting periods relating to Grants
shall immediately expire, and (i) all unexercised Options and Stock Appreciation Rights shall become immediately and fully exercisable;
(ii) all shares of Restricted Stock and Restricted Stock Units, not previously vested shall vest immediately and be delivered to
the Grantee entitled thereto; and (iii) all dividend equivalents with respect to such Grants shall be immediately paid over to
the Grantee entitled thereto. Notwithstanding the foregoing, the provisions of this Section 9.3 shall be superseded by the employee's
existing employment agreement, if any.

 

(b)          A
"Change in Control" is the occurrence of any one of the following events:

 

		(i)	any Person (other than a Grantee, the Bank or any trustee or other fiduciary holding securities
under an employee benefit plan of the Bank (or of any subsidiary of the Bank)) is or becomes an "Acquiring Person";

 

		(ii)	less than eighty percent (80%) of the total membership of the Board shall be Continuing Directors;
or

 

		(iii)	the shareholders of the Bank shall approve a merger or consolidation of the Bank or a plan of complete
liquidation of the Bank or an agreement for the sale or disposition by the Bank of all or substantially all of the Bank's assets
to another Person, except in any such case in a transaction in which immediately after such merger, consolidation or sale, exchange
or transfer, the shareholders of the Bank, in their capacities as such and as a result thereof, shall own at least 50 percent in
voting power of the then outstanding securities of the Bank or of any surviving Person pursuant to any such merger (or of its parent),
the consolidated corporation or business entity in any such consolidation, or of the other Person to which such sale, exchange
or transfer of assets is made.

 

(c)          A
"Change in Control" shall be deemed not to have occurred if (A) such event is mandated or directed by a regulatory body
having jurisdiction over the Bank's operations; or (B) it occurs pursuant to the terms of a plan for the acquisition of the capital
stock of the Bank by a newly formed bank holding company if, in the consummation of such plan, the shareholders of the Bank will
receive, pro rata, all of the Common Stock of such bank holding company; unless, in such transaction, a Person satisfies subsection
(b)(i) or (iii) above.

 

(d)          For
purposes of this Section 9.3:

 

		(i)	"Acquiring Person" shall mean any Person who becomes after the Effective Date a "beneficial
owner" (as defined in Rule 13d-3 of the Exchange Act) of securities of the Bank representing twenty-five percent (25%) or
more of the combined voting power of the Bank's then outstanding voting securities, unless such Person has filed Form 13 G and
all required amendments thereto with respect to its holdings and continues to hold such securities for investment in a manner qualifying
such Person to utilize Form F-13G for reporting of ownership.

 

		(ii)	"Affiliate" and "Associate" shall have the respective meanings ascribed to
such terms in Rule 12b-2 of the General Rules and Regulations under the Exchange Act as in effect on the date hereof.

 

		(iii)	"Continuing Directors" shall mean any member of the Board who was a member of the Board
prior to the date hereof, and any successor of a Continuing Director while such successor is a member of the Board who is not an
Acquiring Person or an Affiliate or Associate of an Acquiring Person or of any such Affiliate or Associate and is recommended or
elected to succeed the Continuing Director by a majority of the Continuing Directors.

 

		(iv)	"Person" shall mean any individual, corporation, partnership, group, association or other
"person", as such term is used in Section 13(d) and 14(d) of the Exchange Act.

 

    	 

    	 

    

 

Section 9.4.          Termination,
Suspension or Modification of Plan. Provided no employee member of the Board participates as provided by Section 3.2(b) hereof,
the Board may at any time terminate, suspend or modify the Plan, except that the Board shall not, without the authorization of
the holders of a majority of the outstanding shares present or represented and entitled to vote at a duly held meeting of the Bank's
shareholders, effect any change (other than through adjustment for changes in capitalization as hereinabove provided) which (a)
increases the aggregate number of shares underlying Grants; (b) changes the class of Eligible Grantees eligible to be awarded Grants;
(c) lowers the minimum Option Price or Base Price or otherwise materially increases the benefits accruing to Grantees through awards
under the Plan; (d) renders any member of the Committee eligible to receive a Grant while serving thereon except as provided by
the Plan; (e) extends the effective period of the Plan; or (f) removes the restrictions set forth in Section 3.2(b). No termination,
suspension or modification of the Plan shall adversely affect any right acquired by any Grantee or any Successor under the terms
of a Grant awarded before the date of such termination, suspension or modification, unless such Grantee or Successor shall consent;
but it shall be conclusively presumed that any adjustment for changes in capitalization as provided in Section 5.3 does not adversely
affect any such right.

 

Upon the dissolution or
liquidation of the Bank, the Plan shall terminate, and all Grants previously granted shall lapse on the date of such dissolution
or liquidation.

 

Section 9.5.          Legal
Restrictions. The Bank will not be obligated to issue shares of Common Stock or make any payment on account of Grants underlying
such shares if counsel to the Bank determines that such issuance or payment would violate any law or regulation of any governmental
authority or any agreement between the Bank and any securities exchange or quotations system upon which the Common Stock is listed.
In connection with any stock issuance or transfer, the person acquiring the shares shall, if requested by the Bank, give assurances
satisfactory to counsel to the Bank regarding such matters as the Bank may deem desirable to assure compliance with all legal requirements.
The Bank shall in no event be obliged to take any action in order to cause the exercise of any Option or Stock Appreciation Right
or to make transfers on account of Grants.

 

The Grants will be forfeitable,
at the discretion of the Board, in the event the Bank needs to raise capital in order to be adequately capitalized under applicable
regulatory requirements. In such a case, Grantee will be notified in writing not less than 30 days prior to the date they are to
be forfeited. Once forfeited, the Grants will no longer be outstanding and the holder thereof will have no rights with respect
thereto.

 

Section 9.6.          Withholding.

 

(a)          Each
Grantee exercising an Option or a Stock Appreciation Right as a condition to such exercise shall pay to the Bank the amount, if
any, required to be withheld from distributions resulting from such exercise under applicable Federal and State income tax laws
and any portion of FICA that is due from Grantee ("Withholding Taxes"). Such Withholding Taxes shall be payable as of
the date the payment is required from the Bank to the taxing authority. The Committee may establish such procedures as it deems
appropriate for the settling of withholding obligations with shares of Common Stock, including, without limitation, the establishment
of such procedures as may be necessary to comply with Rule 16b-3.

 

(b)          The
Bank shall have the right to deduct from any settlement of a Grant of Restricted Shares or Restricted Share Units, including the
delivery or vesting of shares or dividend equivalents, an amount sufficient to cover withholding required by law for any federal,
state or local taxes or to take such other action as may be necessary to satisfy any withholding obligations. The Committee may
permit shares of Common Stock to be used to satisfy required tax withholding, and such shares shall be valued at the Fair Market
Value as of the settlement date of the applicable Grant.

 

Section 9.7.          Governing
Laws. This Plan and all rights thereunder shall be construed in accordance with and governed by the laws of the State of Connecticut.
Although the Bank is not currently subject to the provisions of Section 16 of the Exchange Act, the intent of this Plan is to qualify
for the exemption provided by Rule 16b-3 under the Exchange Act should the Bank ever become subject to those provisions. To the
extent any provision of the Plan does not comply with the requirements of Rule 16b-3, it shall be deemed inoperative to the extent
permitted by law and deemed advisable by the Committee and shall not affect the validity of the Plan. In the event Rule 16b-3 is
revised or replaced, the Committee may exercise discretion to modify this Plan in any respect necessary to satisfy the requirements
of the revised exemption or its replacement.

 

    	 

    	 

    

 

Section 9.8.          Deferred
Compensation. No awards granted under the Plan are intended to be "deferred compensation" subject to Section 409A
of the Internal Revenue.

 

Section 9.9.          Non-exclusivity
of the Plan. Neither the adoption of the Plan nor the submission of the Plan to the shareholders of the Bank for approval shall
be construed as creating any limitations upon the right and authority of the Board to adopt such other incentive compensation arrangements
(which arrangements may be applicable either generally to a class or classes of individuals or specifically to a particular individual
or individuals) as the Board in its discretion determines desirable, including, without limitation, the awarding of Grants other
than under the Plan.

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