Document:

1999 Stock Option/Stock Incentive Plan

 Exhibit 10.47 
  
 PROFLOWERS, INC. 
  
 1999 STOCK OPTION/STOCK ISSUANCE PLAN 
  
 ARTICLE ONE  
  
 GENERAL PROVISIONS 
  
 I. PURPOSE OF THE PLAN 
  
 This 1999 Stock Option/Stock Issuance Plan is intended to promote the interests of ProFlowers, Inc., a Delaware corporation, by providing eligible persons
in the Corporation’s employ or service with the opportunity to acquire a proprietary interest, or otherwise increase their proprietary interest, in the Corporation as an incentive for them to continue in such employ or service. 
  
 Capitalized terms herein shall have the meanings assigned to such terms in
the attached Appendix. 
  
 II. STRUCTURE OF THE PLAN

  
 A. The Plan shall be divided into two (2) separate equity
programs: 
  
 (i) the Option Grant Program under
which eligible persons may, at the discretion of the Plan Administrator, be granted options to purchase shares of Common Stock, and 
  
 (ii) the Stock Issuance Program under which eligible persons may, at the discretion of the Plan Administrator, be issued shares of Common
Stock directly, either through the immediate purchase of such shares or as a bonus for services rendered the Corporation (or any Parent or Subsidiary). 
  
 B. The provisions of Articles One and Four shall apply to both equity programs under the Plan and shall accordingly govern the interests of all persons
under the Plan. 
  
 III. ADMINISTRATION OF THE PLAN

  
 A. The Plan shall be administered by the Board. However,
any or all administrative functions otherwise exercisable by the Board may be delegated to the Committee. Members of the Committee shall serve for such period of time as the Board may determine and shall be subject to removal by the Board at any
time. The Board may also at any time terminate the functions of the Committee and reassume all powers and authority previously delegated to the Committee. 
  
 B. The Plan Administrator shall have full power and authority (subject to the provisions of the Plan) to establish such rules and regulations as it may
deem appropriate for proper administration of the Plan and to make such determinations under, and issue such interpretations of, the Plan and any outstanding options or stock issuances thereunder as it may deem necessary or advisable. Decisions of
the Plan Administrator shall be final and binding on all parties who have an interest in the Plan or any option grant or stock issuance thereunder. 

 IV. ELIGIBILITY 
  
 A. The persons eligible to participate in the Plan are as follows: 
  
 (i) Employees, 
  
 (ii) non-employee members of the Board or the non-employee
members of the board of directors of any Parent or Subsidiary, and 
  
 (iii) consultants and other independent advisors who provide services to the Corporation (or any Parent or Subsidiary). 
  
 B. The Plan Administrator shall have full authority to determine, (i) with respect to the grants made under the Option Grant Program, which eligible
persons are to receive such grants, the time or times when those grants are to be made, the number of shares to be covered by each such grant, the status of the granted option as either an Incentive Option or a Non-Statutory Option, the time or
times when each option is to become exercisable, the vesting schedule (if any) applicable to the option shares and the maximum term for which the option is to remain outstanding, and (ii) with respect to stock issuances made under the Stock Issuance
Program, which eligible persons are to receive such issuances, the time or times when those issuances are to be made, the number of shares to be issued to each Participant, the vesting schedule (if any) applicable to the issued shares and the
consideration to be paid by the Participant for such shares. 
  
 C. The Plan Administrator shall have the absolute discretion either to grant options in accordance with the Option Grant Program or to effect stock issuances in accordance with the Stock Issuance Program. 
  
 V. STOCK SUBJECT TO THE PLAN 
  
 A. The stock issuable under the Plan shall be shares of authorized but
unissued or reacquired Common Stock. The maximum number of shares of Common Stock which may be issued over the term of the Plan shall not exceed 5,000,000 shares. 
  
 B. Shares of Common Stock subject to outstanding options shall be available for subsequent issuance under the Plan to the
extent (i) the options expire or terminate for any reason prior to exercise in full or (ii) the options are cancelled in accordance with the cancellation-regrant provisions of Article Two. Unvested shares issued under the Plan and subsequently
repurchased by the Corporation, at the option exercise or direct issue price paid per share, pursuant to the Corporation’s repurchase rights under the Plan shall be added back to the number of shares of Common Stock reserved for issuance under
the Plan and shall accordingly be available for reissuance through one or more subsequent option grants or direct stock issuances under the Plan. 
  
 C. Should any change be made to the Common Stock by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares
or other change affecting the outstanding Common Stock as a class without the Corporation’s receipt of consideration, appropriate adjustments shall be made to (i) the maximum number and/or class of securities issuable under the Plan and (ii)
the number and/or class of securities and the exercise price per share in effect under each outstanding option in order to prevent the dilution or enlargement of benefits thereunder. The adjustments determined by the Plan Administrator shall be
final, binding and conclusive. In no event 

  

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shall any such adjustments be made in connection with the conversion of one or more outstanding shares of the Corporation’s preferred stock into shares
of Common Stock. 
  

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 ARTICLE TWO  
  
 OPTION GRANT PROGRAM 
  

I. OPTION TERMS 
  
 Each option shall be evidenced by one or more documents in the form approved by the Plan Administrator; provided, however, that each such
document shall comply with the terms specified below. Each document evidencing an Incentive Option shall, in addition, be subject to the provisions of the Plan applicable to such options. 
  
 A. Exercise Price. 
  
 1. The exercise price per share shall be fixed by the Plan Administrator in accordance with the following provisions: 
  
 (i) The exercise price per share shall not be less than
eighty-five percent (85%) of the Fair Market Value per share of Common Stock on the option grant date. 
  
 (ii) If the person to whom the option is granted is a 10% Stockholder, then the exercise price per share shall not be less than one
hundred ten percent (110%) of the Fair Market Value per share of Common Stock on the option grant date. 
  
 2. The exercise price shall become immediately due upon exercise of the option and shall, subject to the provisions of Section I of Article Four and the
documents evidencing the option, be payable in cash or check made payable to the Corporation. Should the Common Stock be registered under Section 12 of the 1934 Act at the time the option is exercised, then the exercise price may also be paid as
follows: 
  
 (i) in shares of Common Stock held
for the requisite period necessary to avoid a charge to the Corporation’s earnings for financial reporting purposes and valued at Fair Market Value on the Exercise Date, or 
  
 (ii) to the extent the option is exercised for vested shares, through a special sale and remittance
procedure pursuant to which the Optionee shall concurrently provide irrevocable instructions (A) to a Corporation-designated brokerage firm to effect the immediate sale of the purchased shares and remit to the Corporation, out of the sale proceeds
available on the settlement date, sufficient funds to cover the aggregate exercise price payable for the purchased shares plus all applicable Federal, state and local income and employment taxes required to be withheld by the Corporation by reason
of such exercise and (B) to the Corporation to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the sale. 
  

Except to the extent such sale and remittance procedure is utilized, payment of the exercise price for the purchased shares must be made on the
Exercise Date. 
  

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 B. Exercise and Term of Options. Each option shall be exercisable at such time or times,
during such period and for such number of shares as shall be determined by the Plan Administrator and set forth in the documents evidencing the option grant. However, no option shall have a term in excess of ten (10) years measured from the option
grant date. 
  
 C. Effect of Termination of Service.

  
 1. The following provisions shall govern the exercise of any
options held by the Optionee at the time of cessation of Service or death: 
  
 (i) Should the Optionee cease to remain in Service for any reason other than death, Disability or Misconduct, then the Optionee shall have a period of three (3) months following the date of such cessation of Service
during which to exercise each outstanding option held by such Optionee. 
  
 (ii) Should Optionee’s Service terminate by reason of Disability, then the Optionee shall have a period of twelve (12) months following the date of such cessation of Service during which to exercise each
outstanding option held by such Optionee. 
  
 (iii) If the Optionee dies while holding an outstanding option, then the personal representative of his or her estate or the person or persons to whom the option is transferred pursuant to the Optionee’s will or the laws of inheritance
or the Optionee’s designated beneficiary or beneficiaries of that option shall have a twelve (12)-month period following the date of the Optionee’s death to exercise such option. 
  
 (iv) Under no circumstances, however, shall any such option
be exercisable after the specified expiration of the option term. 
  
 (v) During the applicable post-Service exercise period, the option may not be exercised in the aggregate for more than the number of vested shares for which the option is exercisable on the date of the Optionee’s
cessation of Service. Upon the expiration of the applicable exercise period or (if earlier) upon the expiration of the option term, the option shall terminate and cease to be outstanding for any vested shares for which the option has not been
exercised. However, the option shall, immediately upon the Optionee’s cessation of Service, terminate and cease to be outstanding with respect to any and all option shares for which the option is not otherwise at the time exercisable or in
which the Optionee is not otherwise at that time vested. 
  
 (vi) Should Optionee’s Service be terminated for Misconduct or should Optionee otherwise engage in Misconduct while holding one or more outstanding options under the Plan, then all those options shall terminate
immediately and cease to remain outstanding. 
  
 2. The Plan
Administrator shall have the discretion, exercisable either at the time an option is granted or at any time while the option remains outstanding, to: 
  
 (i) extend the period of time for which the option is to remain exercisable following Optionee’s cessation of Service or death from
the limited period otherwise in effect for that option to such greater period of time as the Plan 

  

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Administrator shall deem appropriate, but in no event beyond the expiration of the option term, and/or 
  
 (ii) permit the option to be exercised, during the
applicable post-Service exercise period, not only with respect to the number of vested shares of Common Stock for which such option is exercisable at the time of the Optionee’s cessation of Service, but also with respect to one or more
additional installments in which the Optionee would have vested under the option had the Optionee continued in Service. 
  
 D. Stockholder Rights. The holder of an option shall have no stockholder rights with respect to the shares subject to the option until such
person shall have exercised the option, paid the exercise price and become the recordholder of the purchased shares. 
  
 E. Unvested Shares. The Plan Administrator shall have the discretion to grant options which are exercisable for unvested shares of Common
Stock. Should the Optionee cease Service while holding such unvested shares, the Corporation shall have the right to repurchase, at the exercise price paid per share, any or all of those unvested shares. The terms upon which such repurchase right
shall be exercisable (including the period and procedure for exercise and the appropriate vesting schedule for the purchased shares) shall be established by the Plan Administrator and set forth in the document evidencing such repurchase right. The
Plan Administrator may not impose a vesting schedule upon any option grant or the shares of Common Stock subject to that option which is more restrictive than twenty percent (20%) per year vesting, with the initial vesting to occur not later than
one (1) year after the option grant date. However, such limitation shall not be applicable to any option grants made to individuals who are officers of the Corporation, non-employee Board members or independent consultants. 
  
 F. First Refusal Rights. Until such time as the Common Stock is
first registered under Section 12 of the 1934 Act, the Corporation shall have the right of first refusal with respect to any proposed disposition by the Optionee (or any successor in interest) of any shares of Common Stock issued under the Plan.
Such right of first refusal shall be exercisable in accordance with the terms established by the Plan Administrator and set forth in the document evidencing such right. 
  
 G. Limited Transferability of Options. An Incentive Stock Option shall be exercisable only by the Optionee
during his or her lifetime and shall not be assignable or transferable other than by will or by the laws of inheritance following the Optionee’s death. A Non-Statutory Option may be assigned in whole or in part during the Optionee’s
lifetime to one or more members of the Optionee’s family or to a trust established exclusively for one or more such family members or to Optionee’s former spouse, to the extent such assignment is in connection with the Optionee’s
estate plan or pursuant to a domestic relations order. The assigned portion may only be exercised by the person or persons who acquire a proprietary interest in the Non-Statutory Option pursuant to the assignment. The terms applicable to the
assigned portion shall be the same as those in effect for the option immediately prior to such assignment and shall be set forth in such documents issued to the assignee as the Plan Administrator may deem appropriate. Notwithstanding the foregoing,
the Optionee may also designate one or more persons as the beneficiary or beneficiaries of his or her outstanding options under the Plan, and those options shall, in accordance with such designation, automatically be transferred to such beneficiary
or beneficiaries upon the Optionee’s death while holding those options. Such beneficiary or beneficiaries shall take the transferred options subject to all the terms and conditions of the applicable agreement evidencing each such transferred
option, including (without limitation) the limited time period during which the option may be exercised following the Optionee’s death. 
  

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 II. INCENTIVE OPTIONS 
  
 The terms specified below shall be applicable to all Incentive Options. Except as modified by the provisions of this Section
II, all the provision’s of Articles One, Two and Four shall be applicable to Incentive Options. Options which are specifically designated as Non-Statutory Options shall not be subject to the terms of this Section II. 
  
 A. Eligibility. Incentive Options may only be granted to
Employees. 
  
 B. Exercise Price. The exercise price
per share shall not be less than one hundred percent (100%) of the Fair Market Value per share of Common Stock on the option grant date. 
  
 C. Dollar Limitation. The aggregate Fair Market Value of the shares of Common Stock (determined as of the respective date or dates of grant)
for which one or more options granted to any Employee under the Plan (or any other option plan of the Corporation or any Parent or Subsidiary) may for the first time become exercisable as Incentive Options during any one (1) calendar year shall not
exceed the sum of One Hundred Thousand Dollars ($100,000). To the extent the Employee holds two (2) or more such options which become exercisable for the first time in the same calendar year, the foregoing limitation on the exercisability of such
options as Incentive Options shall be applied on the basis of the order in which such options are granted. 
  
 D. 10% Stockholder. If any Employee to whom an Incentive Option is granted is a 10% Stockholder, then the option term shall not exceed five
(5) years measured from the option grant date. 
  
 III.
CORPORATE TRANSACTION 
  
 A. The shares subject to each
option outstanding under the Plan at the time of a Corporate Transaction shall automatically vest in full so that each such option shall, immediately prior to the effective date of the Corporate Transaction, become exercisable for all of the shares
of Common Stock at the time subject to that option and may be exercised for any or all of those shares as fully vested shares of Common Stock. However, the shares subject to an outstanding option shall not vest on such an accelerated basis if
and to the extent: (i) such option is assumed by the successor corporation (or parent thereof) in the Corporate Transaction and any repurchase rights of the Corporation with respect to the unvested option shares are concurrently assigned to such
successor corporation (or parent thereof) or (ii) such option is to be replaced with a cash incentive program of the successor corporation which preserves the spread existing on the unvested option shares at the time of the Corporate Transaction and
provides for subsequent payout in accordance with the same vesting schedule applicable to those unvested option shares or (iii) the acceleration of such option is subject to other limitations imposed by the Plan Administrator at the time of the
option grant. 
  
 B. All outstanding repurchase rights shall also
terminate automatically, and the shares of Common Stock subject to those terminated rights shall immediately vest in full, in the event of any Corporate Transaction, except to the extent: (i) those repurchase rights are assigned to the successor
corporation (or parent thereof) in connection with such Corporate Transaction or (ii) such accelerated vesting is precluded by other limitations imposed by the Plan Administrator at the time the repurchase right is issued. 
  

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 C. Immediately following the consummation of the Corporate Transaction, all outstanding options shall
terminate and cease to be outstanding, except to the extent assumed by the successor corporation (or parent thereof). 
  
 D. Each option which is assumed in connection with a Corporate Transaction shall be appropriately adjusted, immediately after such Corporate Transaction,
to apply to the number and class of securities which would have been issuable to the Optionee in consummation of such Corporate Transaction, had the option been exercised immediately prior to such Corporate Transaction. Appropriate adjustments shall
also be made to (i) the number and class of securities available for issuance under the Plan following the consummation of such Corporate Transaction and (ii) the exercise price payable per share under each outstanding option, provided the
aggregate exercise price payable for such securities shall remain the same. To the extent the actual holders of the Corporation’s outstanding Common Stock receive cash consideration for their Common Stock in consummation of the Corporate
Transaction, the successor corporation may, in connection with the assumption of the outstanding options under this Plan, substitute one or more shares of its own common stock with a fair market value equivalent to the cash consideration paid per
share of Common Stock in such Corporate Transaction. 
  
 E. The
Plan Administrator shall have the discretion, exercisable either at the time the option is granted or at any time while the option remains outstanding, to structure one or more options so that those options shall automatically accelerate and vest in
full (and any repurchase rights of the Corporation with respect to the unvested shares subject to those options shall immediately terminate) upon the occurrence of a Corporate Transaction, whether or not those options are to be assumed in the
Corporate Transaction. 
  
 F. The Plan Administrator shall also
have full power and authority, exercisable either at the time the option is granted or at any time while the option remains outstanding, to structure such option so that the shares subject to that option will automatically vest on an accelerated
basis should the Optionee’s Service terminate by reason of an Involuntary Termination within a designated period (not to exceed eighteen (18) months) following the effective date of any Corporate Transaction in which the option is assumed and
the repurchase rights applicable to those shares do not otherwise terminate. Any option so accelerated shall remain exercisable for the fully vested option shares until the expiration or sooner termination of the option term. In addition, the Plan
Administrator may provide that one or more of the Corporation’s outstanding repurchase rights with respect to shares held by the Optionee at the time of such Involuntary Termination shall immediately terminate on an accelerated basis, and the
shares subject to those terminated rights shall accordingly vest at that time. 
  
 G. The portion of any Incentive Option accelerated in connection with a Corporate Transaction shall remain exercisable as an Incentive Option only to the extent the applicable One Hundred Thousand Dollar limitation is
not exceeded. To the extent such dollar limitation is exceeded, the accelerated portion of such option shall be exercisable as a Non-Statutory Option under the Federal tax laws. 
  
 H. The grant of options under the Plan shall in no way affect the right of the Corporation to adjust, reclassify, reorganize
or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 
  
 IV. CANCELLATION AND REGRANT OF OPTIONS 
  
 The Plan Administrator shall have the authority to effect, at any time and from time to time, with the consent of the
affected option holders, the cancellation of any or all outstanding options 

  

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under the Plan and to grant in substitution therefor new options covering the same or different number of shares of Common Stock but with an exercise price
per share based on the Fair Market Value per share of Common Stock on the new option grant date. 
  

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 ARTICLE THREE  
  
 STOCK ISSUANCE PROGRAM  
  
 I. STOCK ISSUANCE TERMS 
  
 Shares of Common Stock may be issued under the Stock Issuance Program through direct and immediate issuances without any intervening option grants. Each
such stock issuance shall be evidenced by a Stock Issuance Agreement which complies with the terms specified below. 
  
 A. Purchase Price. 
  
 1. The purchase price per share shall be fixed by the Plan Administrator but shall not be less than eighty-five percent (85%) of the Fair Market Value
per share of Common Stock on the issue date. However, the purchase price per share of Common Stock issued to a 10% Stockholder shall not be less than one hundred and ten percent (110%) of such Fair Market Value. 
  
 2. Subject to the provisions of Section I of Article Four, shares of Common
Stock may be issued under the Stock Issuance Program for any of the following items of consideration which the Plan Administrator may deem appropriate in each individual instance: 
  
 (i) cash or check made payable to the Corporation, or 
  
 (ii) past services rendered to the Corporation (or any
Parent or Subsidiary). 
  
 B. Vesting Provisions.

  
 1. Shares of Common Stock issued under the Stock Issuance
Program may, in the discretion of the Plan Administrator, be fully and immediately vested upon issuance or may vest in one or more installments over the Participant’s period of Service or upon attainment of specified performance objectives.
However, the Plan Administrator may not impose a vesting schedule upon any stock issuance effected under the Stock Issuance Program which is more restrictive than twenty percent (20%) per year vesting, with initial vesting to occur not later than
one (1) year after the issuance date. Such limitation shall not apply to any Common Stock issuances made to the officers of the Corporation, non-employee Board members or independent consultants. 
  
 2. Any new, substituted or additional securities or other property
(including money paid other than as a regular cash dividend) which the Participant may have the right to receive with respect to the Participant’s unvested shares of Common Stock by reason of any stock dividend, stock split, recapitalization,
combination of shares, exchange of shares or other change affecting the outstanding Common Stock as a class without the Corporation’s receipt of consideration shall be issued subject to (i) the same vesting requirements applicable to the
Participant’s unvested shares of Common Stock and (ii) such escrow arrangements as the Plan Administrator shall deem appropriate. 
  
 3. The Participant shall have full stockholder rights with respect to any shares of Common Stock issued to the Participant under the Stock Issuance
Program, whether or not the Participant’s interest in those shares is vested. Accordingly, the Participant shall have the right to vote such shares and to receive any regular cash dividends paid on such shares. 
  

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 4. Should the Participant cease to remain in Service while holding one or more unvested shares of Common
Stock issued under the Stock Issuance Program or should the performance objectives not be attained with respect to one or more such unvested shares of Common Stock, then those shares shall be immediately surrendered to the Corporation for
cancellation, and the Participant shall have no further stockholder rights with respect to those shares. To the extent the surrendered shares were previously issued to the Participant for consideration paid in cash or cash equivalent (including the
Participant’s purchase-money indebtedness), the Corporation shall repay to the Participant the cash consideration paid for the surrendered shares and shall cancel the unpaid principal balance of any outstanding purchase-money note of the
Participant attributable to such surrendered shares. 
  
 5. The
Plan Administrator may in its discretion waive the surrender and cancellation of one or more unvested shares of Common Stock (or other assets attributable thereto) which would otherwise occur upon the non-completion of the vesting schedule
applicable to those shares. Such waiver shall result in the immediate vesting of the Participant’s interest in the shares of Common Stock as to which the waiver applies. Such waiver, may be effected at any time, whether before or after the
Participant’s cessation of Service or the attainment or non-attainment of the applicable performance objectives. 
  
 C. First Refusal Rights. Until such time as the Common Stock is first registered under Section 12 of the 1934 Act, the Corporation shall
have the right of first refusal with respect to any proposed disposition by the Participant (or any successor in interest) of any shares of Common Stock issued under the Stock Issuance Program. Such right of first refusal shall be exercisable in
accordance with the terms established by the Plan Administrator and set forth in the document evidencing such right. 
  
 II. CORPORATE TRANSACTION 
  
 A. Upon the occurrence of a Corporate Transaction, all outstanding repurchase rights under the Stock Issuance Program shall terminate automatically, and
the shares of Common Stock subject to those terminated rights shall immediately vest in full, except to the extent: (i) those repurchase rights are assigned to the successor corporation (or parent thereof) in connection with such Corporate
Transaction or (ii) such accelerated vesting is precluded by other limitations imposed by the Plan Administrator at the time the repurchase right is issued. 
  
 B. The Plan Administrator shall have the discretionary authority, exercisable either at the time the unvested shares are issued or any time while the
Corporation’s repurchase rights with respect to those shares remain outstanding, to provide that those rights shall automatically terminate on an accelerated basis, and the shares of Common Stock subject to those terminated rights shall
immediately vest, in the event the Participant’s Service should subsequently terminate by reason of an Involuntary Termination within a designated period (not to exceed eighteen (18) months) following the effective date of any Corporate
Transaction in which those repurchase rights are assigned to the successor corporation (or parent thereof). 
  
 III. SHARE ESCROW/LEGENDS 
  
 Unvested shares may, in the Plan Administrator’s discretion, be held in escrow by the Corporation until the Participant’s interest in such
shares vests or may be issued directly to the Participant with restrictive legends on the certificates evidencing those unvested shares. 
  

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 ARTICLE FOUR  
  
 MISCELLANEOUS 
  
 I. FINANCING 
  
 The Plan Administrator may permit any Optionee or Participant to pay the option exercise price under the Option Grant Program or the purchase price for
shares issued under the Stock Issuance Program by delivering a full-recourse, interest bearing promissory note payable in one or more installments and secured by the purchased shares. In no event, however, may the maximum credit available to the
Optionee or Participant exceed the sum of (i) the aggregate option exercise price or purchase price payable for the purchased shares (less the par value of those shares) plus (ii) any Federal, state and local income and employment tax liability
incurred by the Optionee or the Participant in connection with the option exercise or share purchase. 
  
 II. EFFECTIVE DATE AND TERM OF PLAN 
  
 A. The Plan shall become effective when adopted by the Board, but no option granted under the Plan may be exercised, and no shares shall be issued under
the Plan, until the Plan is approved by the Corporation’s stockholders. If such stockholder approval is not obtained within twelve (12) months after the date of the Board’s adoption of the Plan, then all options previously granted under
the Plan shall terminate and cease to be outstanding, and no further options shall be granted and no shares shall be issued under the Plan. Subject to such limitation, the Plan Administrator may grant options and issue shares under the Plan at any
time after the effective date of the Plan and before the date fixed herein for termination of the Plan. 
  
 B. The Plan shall terminate upon the earliest of (i) the expiration of the ten (10)-year period measured from the date the Plan is adopted by the
Board, (ii) the date on which all shares available for issuance under the Plan shall have been issued as vested shares or (iii) the termination of all outstanding options in connection with a Corporate Transaction. All options and unvested stock
issuances outstanding at the time of a clause (i) termination event shall continue to have full force and effect in accordance with the provisions of the documents evidencing those options or issuances. 
  
 III. AMENDMENT OF THE PLAN 
  
 A. The Board shall have complete and exclusive power and authority to amend
or modify the Plan in any or all respects. However, no such amendment or modification shall adversely affect the rights and obligations with respect to options or unvested stock issuances at the time outstanding under the Plan unless the Optionee or
the Participant consents to such amendment or modification. In addition, certain amendments may require stockholder approval pursuant to applicable laws and regulations. 
  
 B. Options may be granted under the Option Grant Program and shares may be issued under the Stock Issuance Program which are
in each instance in excess of the number of shares of Common Stock then available for issuance under the Plan, provided any excess shares actually issued under those programs shall be held in escrow until there is obtained stockholder approval of an
amendment sufficiently increasing the number of shares of Common Stock available for issuance under the Plan. If such stockholder approval is not obtained within twelve (12) months after the date the first such excess grants or issuances are made,
then (i) any unexercised options granted on the basis of such 

  

 12 

 
excess shares shall terminate and cease to be outstanding and (ii) the Corporation shall promptly refund to the Optionees and the Participants the exercise
or purchase price paid for any excess shares issued under the Plan and held in escrow, together with interest (at the applicable Short Term Federal Rate) for the period the shares were held in escrow, and such shares shall thereupon be automatically
cancelled and cease to be outstanding. 
  
 IV. USE OF PROCEEDS

  
 Any cash proceeds received by the Corporation from the
sale of shares of Common Stock under the Plan shall be used for general corporate purposes. 
  
 V. WITHHOLDING 
  
 The
Corporation’s obligation to deliver shares of Common Stock upon the exercise of any options granted under the Plan or upon the issuance or vesting of any shares issued under the Plan shall be subject to the satisfaction of all applicable
Federal, state and local income and employment tax withholding requirements. 
  
 VI. REGULATORY APPROVALS 
  
 The implementation of the Plan, the granting of any options under the Plan and the issuance of any shares of Common Stock (i) upon the exercise of any option or (ii) under the Stock Issuance Program shall be subject to the
Corporation’s procurement of all approvals and permits required by regulatory authorities having jurisdiction over the Plan, the options granted under it and the shares of Common Stock issued pursuant to it. 
  
 VII. NO EMPLOYMENT OR SERVICE RIGHTS 
  
 Nothing in the Plan shall confer upon the Optionee or the Participant any
right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or retaining such person) or of the Optionee or the Participant,
which rights are hereby expressly reserved by each, to terminate such person’s Service at any time for any reason, with or without cause. 
  
 VIII. FINANCIAL REPORTS 
  
 The Corporation shall deliver a balance sheet and an income statement at least annually to each individual holding an outstanding option under the Plan,
unless such individual is a key Employee whose duties in connection with the Corporation (or any Parent or Subsidiary) assure such individual access to equivalent information. 
  

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 APPENDIX 
  
 The following definitions shall be in effect under the Plan: 
  
 A. Board shall mean the Corporation’s Board of Directors. 
  
 B. Code shall mean the Internal Revenue Code of 1986, as
amended. 
  
 C. Committee shall mean a committee of
two (2) or more Board members appointed by the Board to exercise one or more administrative functions under the Plan. 
  
 D. Common Stock shall mean the Corporation’s common stock. 
  
 E. Corporate Transaction shall mean either of the following stockholder-approved transactions to which the
Corporation is a party: 
  
 (i) a merger or
consolidation in which securities possessing more than fifty percent (50%) of the total combined voting power of the Corporation’s outstanding securities are transferred to a person or persons different from the persons holding those securities
immediately prior to such transaction, or 
  
 (ii) the sale, transfer or other disposition of all or substantially all of the Corporation’s assets in complete liquidation or dissolution of the Corporation. 
  
 F. Corporation shall mean ProFlowers, Inc., a Delaware corporation, and any successor corporation to all or
substantially all of the assets or voting stock of ProFlowers, Inc. which shall by appropriate action adopt the Plan. 
  
 G. Disability shall mean the inability of the Optionee or the Participant to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment and shall be determined by the Plan Administrator on the basis of such medical evidence as the Plan Administrator deems warranted under the circumstances. 
  
 H. Employee shall mean an individual who is in the employ of
the Corporation (or any Parent or Subsidiary), subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance. 
  
 I. Exercise Date shall mean the date on which the Corporation shall have received written notice of the option
exercise. 
  
 J. Fair Market Value per share of
Common Stock on any relevant date shall be determined in accordance with the following provisions: 
  
 (i) If the Common Stock is at the time traded on the Nasdaq National Market, then the Fair Market Value shall be the closing selling
price per share of Common Stock on the date in question, as such price is reported by the National Association of Securities Dealers on the Nasdaq National Market. If there is no closing selling price for the Common Stock on the date in question,
then the Fair Market Value 

  

 A-1 

 
shall be the closing selling price on the last preceding date for which such quotation exists. 
  
 (ii) If the Common Stock is at the time listed on any Stock Exchange, then the Fair Market Value shall be
the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of
transactions on such exchange. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 

 
 (iii) If the Common Stock is at the time neither listed
on any Stock Exchange nor traded on the Nasdaq National Market, then the Fair Market Value shall be determined by the Plan Administrator after taking into account such factors as the Plan Administrator shall deem appropriate. 
  
 K. Incentive Option shall mean an option which satisfies the
requirements of Code Section 422. 
  
 L. Involuntary
Termination shall mean the termination of the Service of any individual which occurs by reason of: 
  
 (i) such individual’s involuntary dismissal or discharge by the Corporation for reasons other than Misconduct, or 
  
 (ii) such individual’s voluntary resignation following
(A) a change in his or her position with the Corporation which materially reduces his or her duties and responsibilities or the level of management to which he or she reports, (B) a reduction in his or her level of compensation (including base
salary, fringe benefits and target bonus under any corporate-performance based bonus or incentive programs) by more than fifteen percent (15%) or (C) a relocation of such individual’s place of employment by more than fifty (50) miles, provided
and only if such change, reduction or relocation is effected without the individual’s consent. 
  
 M. Misconduct shall mean the commission of any act of fraud, embezzlement or dishonesty by the Optionee or Participant, any unauthorized use
or disclosure by such person of confidential information or trade secrets of the Corporation (or any Parent or Subsidiary), or any other intentional misconduct by such person adversely affecting the business or affairs of the Corporation (or any
Parent or Subsidiary) in a material manner. The foregoing definition shall not be deemed to be inclusive of all the acts or omissions which the Corporation (or any Parent or Subsidiary) may consider as grounds for the dismissal or discharge of any
Optionee, Participant or other person in the Service of the Corporation (or any Parent or Subsidiary). 
  
 N. 1934 Act shall mean the Securities Exchange Act of 1934, as amended. 
  
 O. Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code Section 422.

  

 A-2 

 P. Option Grant Program shall mean the option grant program in effect under the Plan.

  
 Q. Optionee shall mean any person to whom an
option is granted under the Plan. 
  
 R. Parent
shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the Corporation, provided each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock
possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
  
 S. Participant shall mean any person who is issued shares of Common Stock under the Stock Issuance Program. 
  
 T. Plan shall mean the Corporation’s 1999 Stock
Option/Stock Issuance Plan, as set forth in this document. 
  
 U.
Plan Administrator shall mean either the Board or the Committee acting in its capacity as administrator of the Plan. 
  
 V. Service shall mean the provision of services to the Corporation (or any Parent or Subsidiary) by a person in the capacity of an Employee,
a non-employee member of the board of directors or a consultant or independent advisor, except to the extent otherwise specifically provided in the documents evidencing the option grant. 
  
 W. Stock Exchange shall mean either the American Stock Exchange or the New York Stock Exchange. 
  
 X. Stock Issuance Agreement shall mean the agreement entered
into by the Corporation and the Participant at the time of issuance of shares of Common Stock under the Stock Issuance Program. 
  
 Y. Stock Issuance Program shall mean the stock issuance program in effect under the Plan. 
  
 Z. Subsidiary shall mean any corporation (other than the
Corporation) in an unbroken chain of corporations beginning with the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more
of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
  
 AA. 10% Stockholder shall mean the owner of stock (as determined under Code Section 424(d)) possessing more than ten percent (10%) of the
total combined voting power of all classes of stock of the Corporation (or any Parent or Subsidiary). 
  

 A-3FORM OF DIRECTOR SUPPLEMENT RETIREMENT AGREEMENT

 Exhibit 10.6 
  
 FORM OF 
  
 DIRECTOR SUPPLEMENTAL RETIREMENT PLAN 
  
 DIRECTOR AGREEMENT 
  
 THIS AGREEMENT is made and entered into this 29th day of March, 2000, by and between Summit Bank, a Bank organized and existing under the laws of the Commonwealth of Massachusetts, (hereinafter referred to as the,
“Bank”, and                 , a member of the Board of Directors of the Bank, Service Bancorp, Inc. (hereinafter referred to as the,
“Company”), or Service Bancorp, MHC (hereinafter referred to as the, “Mutual Holding Company”), or any affiliates or subsidiaries (hereinafter referred to as the, “Director”). 
  
 WHEREAS, the Director is now on the Board of the Bank, the Company, or the
Mutual Holding Company, or any affiliates or subsidiaries, (hereinafter referred to as the, “Board”) and has for many years faithfully served the Bank, the Company, or the Mutual Holding Company. It is the consensus of the Board of
Directors that the Director’s services have been of exceptional merit, in excess of the compensation paid and an invaluable contribution to the profits and position of the Bank in its field of activity. The Board further believes that the
Director’s experience, knowledge of corporate affairs, reputation and industry contacts are of such value, and the Director’s continued services so essential to the Bank’s future growth and profits, that it would suffer severe
financial loss should the Director terminate their service on the Board; 
  
 ACCORDINGLY, the Board has adopted the Summit Bank Director Supplemental Retirement Plan (hereinafter referred to as the, “Director Plan”) and it is the desire of the Bank and the Director to enter into this
agreement which the Bank will agree to make certain payments to the Director upon the Director’s retirement and to the Director’s beneficiary(ies) in the event of the Director’s death pursuant to the Director Plan; 
  
 FURTHERMORE, it is the intent of the parties hereto that this Director Plan
be considered an unfunded arrangement maintained primarily to provide supplemental retirement benefits for the Director, and to be considered a non-qualified benefit plan for purposes of the Employee Retirement Security Act of 1974, as amended
(“ERISA”). The Director is fully advised of the Bank’s financial status and has had substantial input in the design and operation of this benefit plan; and 
  
 NOW THEREFORE, in consideration of services the Director has performed in the past and those to be performed in the future,
and based upon the mutual promises and covenants herein contained, the Bank and the Director agree as follows: 
  

	I.	 	DEFINITIONS 

  

	 	A.	 	Effective Date: 

  
 The Effective Date of the Plan shall be February 4, 2000. 

	 	B.	 	Plan Year: 

  
 Any reference to the “Plan Year” shall mean a calendar year from July 1st to June 30th. In the year of implementation, the term the “Plan
Year” shall mean the period from the Effective Date to June 30th of the year of the Effective Date. 
  

	 	C.	 	Retirement Date: 

  
 Retirement Date shall mean retirement from service with the Bank which becomes effective on the first day of the calendar month following the month in
which the Director reaches age      or such later date as the Director may actually retire. 
  

	 	D.	 	Termination of Service: 

  
 Termination of Service shall mean the Director’s voluntary resignation from service on the Board or failure of re-election to the Board, prior to the
Normal Retirement Age [Subparagraph I (J)]. 
  

	 	E.	 	Pre-Retirement Account: 

  
 A Pre-Retirement Account shall be established as a liability reserve account on the books of the Bank for the benefit of the Director. Prior to the
Director’s Termination of Service or the Director’s retirement, whichever event shall first occur, such liability reserve account shall be increased or decreased each Plan Year, until the aforestated event occurs, by the Index Retirement
Benefit [Subparagraph I (F)]. 
  

	 	F.	 	Index Retirement Benefit: 

  
 The Index Retirement Benefit for each Director in the Director Plan for each Plan Year shall be equal to the excess (if any) of the Index [Subparagraph I
(G)] for that Plan Year over the Opportunity Cost [Subparagraph I (H)] for that Plan Year. 
  

	 	G.	 	Index: 

  
 The Index for any Plan Year shall be the aggregate annual after-tax income from the life insurance contract(s) described hereinbelow as defined by FASB
Technical Bulletin 85-4. This Index shall be applied as if such insurance contracts were purchased on the Effective Date of the Director Plan. 
  
 [Insurance Policy Information] 
  
 If such contracts of life insurance are actually purchased by the Bank, then the actual policies as of the dates they were actually purchased shall be
used in calculations under this Director Plan. If such contracts of life insurance are not purchased or are subsequently surrendered or lapsed, then the Bank shall receive annual policy illustrations that assume the above-described policies were

  

 2 

 purchased, or had not subsequently surrendered or lapsed, which illustrations will be received from the
respective insurance companies and will indicate the increase in policy values for purposes of calculating the amount of the Index. 
  
 In either case, references to the life insurance contracts are merely for purposes of calculating a benefit. The Bank has no obligation to purchase such
life insurance and, if purchased, the Directors and their beneficiary(ies) shall have no ownership interest in such policy and shall always have no greater interest in the benefits under this Director Plan than that of an unsecured creditor of the
Bank. 
  

	 	H.	 	Opportunity Cost: 

  
 The Opportunity Cost for any Plan Year shall be calculated by taking the sum of the amount of premiums for the life insurance policies described in the
definition of “Index” plus the amount of any after-tax benefits paid to the Director pursuant to the Director Plan (Paragraph II hereinafter) plus the amount of all previous years after-tax Opportunity Cost, and multiplying that sum by the
average annualized after-tax yield of a one-year Treasury Bill, or, in any event, no less than five and one half percent (5.50%). 
  

	 	I.	 	Change in Control: 

  
 Change in Control of the Bank or the Company means a change in control of a nature that: (i) would be required to be reported in response to Item 1(a) of
the current report on Form 8-K, as in effect on the date hereof, pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”); or (ii) results in a Change in Control of the Bank or the Company within the
meaning of the Bank Holding Company Act of 1956, as amended, and applicable rules and regulations promulgated thereunder, as in effect at the time of the Change in Control (collectively, the “BHCA”); or (iii) without limitation such a
Change in Control shall be deemed to have occurred at such a time as (a) any “person” (as the term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company representing 25% or more of the combined voting power of Company’s outstanding securities except for any securities purchased by the Bank’s employee stock ownership plan
or trust; or (b) individuals who constitute the Board on the date hereof (the “Incumbent Board”) cease for any reason to constitute at least a majority thereof,” provided that any person becoming a director subsequent to the date
hereof whose election was approved by a vote of at least three-quarters of the directors comprising the Incumbent Board, or whose nomination for election by the Company’s stockholders was approved by the same Nominating Committee serving under
an Incumbent Board shall be, for purposes of this clause (b), considered as though he were a member of the Incumbent Board; or (c) a plan of reorganization, merger, consolidation, sale of all or substantially all the assets of the Bank or the
Company or similar transaction in which the Bank or Company is not the surviving institution occurs; or (d) a proxy statement soliciting proxies from 
  

 3 

 
stockholders of the Company, by someone other than the current management of the Company, seeking stockholder approval of a plan of reorganization, merger or
consolidation of the Company or similar transaction with one or more corporations as a result of which the outstanding shares of the class of securities then subject to the Plan are to be exchanged for or converted into cash or property or
securities not issued by the Company, or (e) a tender offer is made for 25% or more of the voting securities of the Company and the shareholders owning beneficially or of record 25% or more of the outstanding securities of the Company have tendered
or offered to sell their shares pursuant to such tender offer and such tendered shares have been accepted by the tender offer. Notwithstanding the foregoing, a “change in control” shall not be deemed to have occurred in the event of a
conversion of the Company’s mutual holding company to stock form or in connection with any reorganization or action used to effect such a conversion. 
  

	 	J.	 	Normal Retirement Age: 

  
 Normal Retirement Age shall mean the date on which the Director attains age     . 
  

	II.	 	INDEX BENEFITS 

  

	 	A.	 	Retirement Benefits: 

  
 Subject to Subparagraph II (D) hereinafter, a Director who remains on the Board until the Normal Retirement Age [Subparagraph I (J)] shall be entitled to
receive the balance in the Pre-Retirement Account in twenty (20) equal annual installments commencing thirty (30) days following the Director’s retirement. In addition to these payments and commencing in conjunction therewith, the Index
Retirement Benefit [Subparagraph I (F)] for each Plan Year subsequent to the Director’s retirement, and including the remaining portion of the Plan Year following said retirement, shall be paid to the Director until the Director’s death or
the death of the Director’s spouse, whichever event shall last occur. 
  

	 	B.	 	Termination of Service: 

  
 Subject to Subparagraph II (D), should a Director suffer a Termination of Service the Director shall be entitled to receive the balance in the
Pre-Retirement Account payable to the Director in twenty (20) equal annual installments commencing thirty (30) days following the Director’s Normal Retirement Age [Subparagraph I (J)]. In addition to these payments and commencing in conjunction
therewith, the Index Retirement Benefit for each Plan Year subsequent to the year in which the Director attains Normal Retirement Age, and including the remaining portion of the Plan Year in which the Director attains Normal Retirement Age, shall be
paid to the Director until the Director’s death or the death of the Director’s spouse, whichever shall last occur. 
  

 4 

	 	C.	 	Death: 

  
 Should the Director die prior to having received the balance of the Pre-Retirement Account the Director may be entitled to under the terms of this
Director Plan, the entire unpaid balance of the Director’s Pre-Retirement Account shall be paid in a lump sum to the individual or individuals the Director may have designated in writing and filed with the Bank. In the absence of any effective
designation of beneficiary(ies), the unpaid balance shall be paid as set forth herein to the duly qualified executor or administrator of the Director’s estate. Said payment due hereunder shall be made the first day of the second month following
the decease of the Director. 
  
 In addition to the payments that
may be due under the terms of this Subparagraph II(C), if the Director predeceases the Director’s spouse, then the Director’s spouse, upon the death of the Director, shall be entitled to receive an Index Retirement Benefit as set forth in
Subparagraphs II(A) and (B), until the death of said Director’s spouse. If, however, the Director’s spouse predeceases the Director, then there shall be no Index Retirement Benefit payable further upon the death of the Director.

  
 Provided, however, that anything hereinabove to the contrary
notwithstanding, no death benefit shall be payable hereunder if the Director dies on or before the 4th day of February, 2002. 
  

	 	D.	 	Termination for Cause: 

  
 Should the Director be Terminated for Cause at any time, all benefits under this Director Plan’ shall be forfeited. Termination for Cause means the
termination of service on the Board caused by the individual’s personal dishonesty, willful misconduct, any breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, or the willful violation of any law,
rule or regulation (other than traffic violations or similar offenses), or a final cease-and-desist order, any of which results in material loss to the Company or one of its Affiliates. If a dispute arises as to discharge for “cause”, such
dispute shall be resolved by arbitration as set forth in this Director Plan. 
  

	 	E.	 	Death Benefit: 

  
 Except as set forth above, there is no death benefit provided under this Agreement. 
  

	III.	 	RESTRICTIONS UPON FUNDING 

  
 The Bank shall have no obligation to set aside, earmark or entrust any fund or money with which to pay its obligations under this Director Plan. The
Directors, their beneficiary(ies), or any successor in interest shall be and remain simply a general creditor of the Bank in the same manner as any other creditor having a general claim for matured and unpaid compensation. 
  

 5 

 The Bank reserves the absolute right, at its sole discretion, to either fund the obligations undertaken
by this Director Plan or to refrain from funding the same and to determine the extent, nature and method of such funding. Should the Bank elect to fund this Director Plan, in whole or in part, through the purchase of life insurance, mutual funds,
disability policies or annuities, the Bank reserves the absolute right, in its sole discretion, to terminate such funding at any time, in whole or in part. At no time shall any Director be deemed to have any lien nor right, title or interest in or
to any specific funding investment or to any assets of the Bank. 
  
 If the Bank elects to invest in a life insurance, disability or annuity policy upon the life of the Director, then the Director shall assist the Bank by freely submitting to a physical exam and supplying such additional information
necessary to obtain such insurance or annuities. 
  

	IV.	 	CHANGE OF CONTROL 

  
 Upon a Change of Control [Subparagraph I (I)], if the Director subsequently suffers a Termination of Service [Subparagraph I (D)], then the Director shall
receive the benefits promised in this Director Plan upon attaining Normal Retirement Age, as if the Director had been continuously serving the Bank until the Director’s Normal Retirement Age. The Director will also remain eligible for all
promised death benefits in this Director Plan. In addition, no sale, merger, or consolidation of the Bank shall take place unless the new or surviving entity expressly acknowledges the obligations under this Director Plan and agrees to abide by its
terms. 
  

	V.	 	MISCELLANEOUS 

  

	 	A.	 	Alienability and Assignment Prohibition: 

  
 Neither the Director, nor the Director’s surviving spouse, nor any other beneficiary(ies) under this Director Plan shall have any power or right to
transfer, assign, anticipate, hypothecate, mortgage, commute, modify or otherwise encumber in advance any of the benefits payable hereunder nor shall any of said benefits be subject to seizure for the payment of any debts, judgments, alimony or
separate maintenance owed by the Director or the Director’s beneficiary(ies), nor be transferable by operation of law in the event of bankruptcy, insolvency or otherwise. In the event the Director or any beneficiary attempts assignment,
commutation, hypothecation, transfer or disposal of the benefits hereunder, the Bank’s liabilities shall forthwith cease and terminate. 
  

	 	B.	 	Binding Obligation of the Bank and any Successor in Interest: 

  
 The Bank shall not merge or consolidate into or with another bank or sell substantially all of its assets to another bank, firm or person until such bank,
firm or person expressly agrees, in writing, to assume and discharge the duties and obligations of the Bank under this Director Plan. This Director Plan shall be binding upon the parties hereto, their successors, beneficiaries, heirs and personal
representatives. 
  

 6 

	 	C.	 	Amendment or Revocation: 

  
 It is agreed by and between the parties hereto that, during the lifetime of the Director, this Director Plan may be amended or revoked at any time or
times, in whole or in part, by the mutual written consent of the Director and the Bank. 
  

	 	D.	 	Gender: 

  
 Whenever in this Director Plan words are used in the masculine or neuter gender, they shall be read and construed as in the masculine, feminine or neuter
gender, whenever they should so apply. 
  

	 	E.	 	Effect on Other Bank Benefit Plans: 

  
 Nothing contained in this Director Plan shall affect the right of the Director to participate in or be covered by any qualified or non-qualified pension,
profit-sharing, group, bonus or other supplemental compensation or fringe benefit plan constituting a part of the Bank’s existing or future compensation structure. 
  

	 	F.	 	Headings: 

  
 Headings and subheadings in this Director Plan are inserted for reference and convenience only and shall not be deemed a part of this Director Plan.

  

	 	G.	 	Applicable Law: 

  
 The validity and interpretation of this Agreement shall be governed by the laws of the Commonwealth of Massachusetts. 
  

	 	H.	 	12 U.S.C. § 1828(k): 

  
 Any payments made to the Director pursuant to this Director Plan, or otherwise, are subject to and conditioned upon their compliance with 12 U.S.C. §
1828(k) or any regulations promulgated thereunder. 
  

	 	I.	 	Partial Invalidity: 

  
 If any term, provision, covenant, or condition of this Director Plan is determined by an arbitrator or a court, as the case may be, to be invalid, void,
or unenforceable, such determination shall not render any other term, provision, covenant, or condition invalid, void, or unenforceable, and the Director Plan shall remain in full force and effect notwithstanding such partial invalidity. 

 

	 	J.	 	Continuation as Director: 

  
 Neither this Agreement nor the payment of any benefits thereunder shall be construed as giving to the Director any right to be retained as a member of the
Board of Directors of the Bank, the Company, or the Mutual Holding Company. 
  

 7 

	VI.	 	ERISA PROVISION 

  

	 	A.	 	Named Fiduciary and Plan Administrator: 

  
 The “Named Fiduciary and Plan Administrator” of this Director Plan shall be Summit Bank until its resignation or removal by the Board. As Named
Fiduciary and Plan Administrator, the Bank shall be responsible for the management, control and administration of the Director Plan. The Named Fiduciary may delegate to others certain aspects of the management and operation responsibilities of the
Director Plan including the employment of advisors and the delegation of ministerial duties to qualified individuals. 
  

	 	B.	 	Claims Procedure and Arbitration: 

  
 In the event a dispute arises over benefits under this Director Plan and benefits are not paid to the Director (or to the Director’s beneficiary(ies)
in the case of the Director’s death) and such claimants feel they are entitled to receive such benefits, then a written claim must be made to the Named Fiduciary and Plan Administrator named above within sixty (60) days from the date payments
are refused. The Named Fiduciary and Plan Administrator shall review the written claim and if the claim is denied, in whole or in part, they shall provide in writing within sixty (60) days of receipt of such claim its specific reasons for such
denial, reference to the provisions of this Director Plan upon which the denial is based and any additional material or information necessary to perfect the claim. Such written notice shall further indicate the additional steps to be taken by
claimants if a further review of the claim denial is desired. A claim shall be deemed denied if the Named Fiduciary and Plan Administrator fail to take any action within the aforesaid sixty-day period. 
  
 If claimants desire a second review they shall notify the Named Fiduciary
and Plan Administrator in writing within sixty (60) days of the first claim denial. Claimants may review this Director Plan or any documents relating thereto and submit any written issues and comments it may feel appropriate. In their sole
discretion, the Named Fiduciary and Plan Administrator shall then review the second claim and provide a written decision within sixty (60) days of receipt of such claim. This decision shall likewise state the specific reasons for the decision and
shall include reference to specific provisions of the Plan Agreement upon which the decision is based. 
  
 If claimants continue to dispute the benefit denial based upon completed performance of this Director Plan or the meaning and effect of the terms and
conditions thereof, then claimants may submit the dispute to an Arbitrator for final arbitration. The Arbitrator shall be selected by mutual agreement of the Bank and the claimants. The Arbitrator shall operate under any generally recognized set of
arbitration rules. The parties hereto agree that they and their heirs, personal representatives, successors and assigns shall be bound by the 
  

 8 

 decision of such Arbitrator with respect to any controversy properly submitted to it for determination.

  
 Where a dispute arises as to the Bank’s discharge of the
Director for “cause”, such dispute shall likewise be submitted to arbitration as above-described and the parties hereto agree to be bound by the decision thereunder. 
  

	VII.	 	TERMINATION OR MODIFICATION OF AGREEMENT BY REASON OF CHANGES IN THE LAW, RULES OR REGULATIONS 

  
 The Bank is entering into this Agreement upon the assumption that certain existing tax laws, rules and regulations will
continue in effect in their current form. If any said assumptions should change and said change has a detrimental effect on this Director Plan, then the Bank reserves the right to terminate or modify this Agreement accordingly. Upon a Change in
Control [Subparagraph I (I)], this paragraph shall become null and void effective immediately upon said Change of Control. 
  
 IN WITNESS WHEREOF, the parties hereto acknowledge that each has carefully read this Agreement and executed the original thereof on the 29th day of March,
2000, and that, upon execution, each has received a conforming copy. 
  

	 	  	 SUMMIT BANK
 Medway, Massachusetts

			
	
	  	By:	  	

	 Witness
	  	 	  	 Title:

			
	
	  	 	  	

	 Witness
	  	 	  	 Director

  

 9 

 Service Bancorp, Inc.
 Director Supplemental Retirement Plan
 Information Schedule

  

	 Current Directors

	 Name

	    	Normal
Retirement
Age

	    	Policy Face
Amount ($)

	    	Premiums
Paid ($)

	 Richard Giusti
	    	65	    	 	    	 
	 First Policy
	    	 	    	810,000	    	210,000
	 Second Policy
	    	 	    	446,604	    	105,000
	 John Hasenjaeger
	    	65	    	 	    	 
	 First Policy
	    	 	    	109,000	    	40,000
	 Second Policy
	    	 	    	61,152	    	20,000
	 Thomas R. Howie
	    	65	    	 	    	 
	 First Policy
	    	 	    	109,000	    	40,000
	 Second Policy
	    	 	    	61,152	    	20,000
	 Kenneth C.A. Isaacs
	    	60	    	 	    	 
	 First Policy
	    	 	    	454,000	    	166,667
	 Second Policy
	    	 	    	254,000	    	83,333
	 Paul V. Kenney
	    	60	    	 	    	 
	 First Policy
	    	 	    	85,000	    	22,000
	 Eugene R. Liscombe
	    	60	    	 	    	 
	 First Policy
	    	 	    	164,000	    	40,000
	 Second Policy
	    	 	    	89,224	    	20,000
	 James Murphy
	    	72	    	 	    	 
	 First Policy
	    	 	    	103,000	    	40,000
	 Second Policy
	    	 	    	57,370	    	20,000
	 Lawrence E. Novick
	    	65	    	 	    	 
	 First Policy
	    	 	    	789,000	    	290,000
	 Second Policy
	    	 	    	443,354	    	145,000

  

 10 

	 Kelly A. Verdolino
	  	60	  	 	  	 
	 First Policy
	  	 	  	360,000	  	88,000
	 Second Policy
	  	 	  	196,337	  	44,000
	
	 Former Directors

	 William J. Casey
	  	60	  	 	  	 
	 First Policy
	  	 	  	85,000	  	32,000
	 Second Policy
	  	 	  	446,166	  	116,000
	 John G. Dugan
	  	60	  	 	  	 
	 First Policy
	  	 	  	100,000	  	31,000
	 Second Policy
	  	 	  	50,000	  	14,333
	 Robert J. Heavy
	  	72	  	 	  	 
	 First Policy
	  	 	  	149,000	  	58,000
	 Second Policy
	  	 	  	83,186	  	29,000
	 Robert A. Matson
	  	60	  	 	  	 
	 First Policy
	  	 	  	368,000	  	108,500
	 Second Policy
	  	 	  	206,417	  	53,667

  

 11

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