Document:

Exhibit 10.6

 

BANKUNITED

 

NONQUALIFIED
DEFERRED COMPENSATION PLAN

 

ARTICLE I

 

INTRODUCTION

 

1.1          Purpose.  BankUnited
(the Employer) establishes this BankUnited Nonqualified Deferred Compensation
Plan (the Plan) to attract and retain key employees by providing the
opportunity to defer compensation and receive employer contributions that
cannot be made to the Qualified Plan due to the limitations in Section 401(a)(17)
of the Internal Revenue Code of 1986, as amended (the Code).

 

1.2          Legal status.  The
Plan is a deferred compensation plan for a select group of management or
highly-compensated employees within the meaning of Sections 201(2), 301(a)(3),
and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as
amended (ERISA). The Employer intends the Plan to be unfunded for purposes of
ERISA and the Code and to satisfy the requirements of Code Section 409A.
Plan provisions will be interpreted consistent with this intent.

 

1.3          Effective date.  The
Plan is effective October 1, 2009.

 

ARTICLE II

 

DEFINITIONS

 

2.1          Key
terms and construction.  When used in the Plan, the
following terms will have the meanings set forth below. Several other terms are
not defined here but, for convenience, are defined as they are introduced into
the text. References to specific Code provisions include any final regulations,
Revenue Rulings, and guidance of general applicability thereunder.

 

Beneficiary means the individual, trust, or other entity
designated by a Participant to receive Plan benefits in the event of the
Participant’s death.

 

Cause means acts that constitute theft, fraud or the
embezzlement of funds, gross negligence or deliberate misconduct in the
performance of the Participant’s job responsibilities, acts or omissions
involving moral turpitude, breach of a material provision of any agreement
between the Employer and the Participant, or violation of any material written
policy of the Employer.

 

Change in Control means a change in the ownership or effective
control of the Employer, or in the ownership of a substantial portion of its
assets, within the meaning of Treas. Reg. 1.409A-3(i)(5). For purposes of
clarification, an initial public offering of the Employer’s securities will not
be a Change in Control.

 

Compensation means the Participant’s cash compensation from the
Employer.

 

 

Disability means a medically determinable physical or mental
impairment that can be expected to result in death or to last for a continuous
period of not less than 12 months and that either renders a Participant unable
to engage in any substantial gainful activity or is the reason the Participant
is receiving income-replacement benefits for a period of at least 3 months
under an accident and health plan of the Employer.

 

Eligible Compensation means the Participant’s Compensation to the extent
it exceeds the limitation in Code Section 401(a)(17), reduced by the
amount specified in Appendix A of this Plan. Thus, a Participant’s Eligible
Compensation in a year will be that portion of each paycheck that exceeds the
sum of (i) a portion of that year’s Code Section 401(a)(17) limit
determined by dividing the limitation by the number of paychecks in the year
and (ii) a portion of the amount specified in Appendix A determined by
dividing such amount by the number of paychecks in the year.

 

Participant means an employee of the Employer who defers
Eligible Compensation or receives Employer contributions under the Plan. A
Participant will remain a Participant as long as he or she has an account
balance in the Plan.

 

Plan Year means the calendar year.

 

Qualified Plan means the Employer’s tax-qualified Code Section 401(k) plan,
currently known as the “BankUnited 401(k) Plan.”

 

Separation from Service occurs (or a Participant Separates from Service)
when the Participant ceases to be employed by the Employer and all entities
considered a single employer with the Employer under Code Sections 414(b) and
(c) as a result of death, retirement, or other termination of employment
For this purpose, an 80% or greater threshold will be used in determining a
controlled group of corporations within the meaning of Code Section 414(b) and
the trades and businesses that are under common control within the meaning of
Code Section 414(c).

 

Whether a Separation from
Service occurs will be determined in accordance with the rules under Code Section 409A.
In general, a Participant’s employment will be deemed terminated on the date as
of which, in the Employer’s and Participant’s reasonable expectation, the
Participant’s level of bona fide services for the Employer decreases to 20% or
less of his or her average level of bona fide services over the immediately
preceding 36-month period (or the full period of services if the Participant
has been providing services to the Employer for fewer than 36 months) and a
Participant’s employment will be deemed not to have terminated as long as the
Participant’s level of bona fide services exceeds the 20% threshold.

 

A Participant’s employment
will be treated as continuing while he or she is on military leave, sick leave,
disability leave, or other bona fide leave of absence if the period of the
leave does not exceed six months or, if longer, as long as the Participant has
a statutory or contractual right to reemployment with the Employer. If the
period of leave exceeds six months, and the Participant does not have a
statutory or contractual right to reemployment, the Participant’s employment
will be deemed to terminate on the first day immediately following the
six-month period.

 

2

 

Unforeseeable Emergency, means a Participant’s severe financial hardship
resulting from (i) an illness or accident of the Participant or his or her
spouse or “dependent,” as defined in Code Section 152(a), and the related
extraordinary and unforeseeable medical expenses, (ii) loss of the
Participant’s property due to casualty, including the need to rebuild a home
following damage not otherwise covered by insurance, or (iii) other
similar and unforeseeable circumstances due to events beyond the control of the
Participant, such as the imminent foreclosure of or eviction from the
Participant’s primary residence or extraordinary funeral expenses of a spouse
or “dependent,” as defined above. The Administrator will determine whether an
event is an Unforeseeable Emergency, based on the relevant facts and
circumstances of each case.

 

ARTICLE III

 

ADMINISTRATION

 

3.1          Plan administrator. The Compensation Committee of the Employer’s Board
of Directors will administer the Plan (Administrator). The Administrator may
appoint one or more delegates to discharge any or all of the Administrator’s
responsibilities under the Plan. The Administrator and delegates will have all
the discretionary authority, rights, and duties that are necessary or
appropriate for the proper administration of the Plan and may rely upon
financial, legal, accounting, and other advisors, as they see fit. The
decisions of the Administrator and delegates, including interpretations of the
Plan and determinations of amounts due under the Plan, are final and binding on
all parties.

 

ARTICLE IV

 

ELIGIBILILTY

 

4.1          Plan participation.  The
Administrator, in its sole discretion, will select the Plan’s Participants from
among the Employer’s executives.

 

ARTICLE V

 

ACCOUNTS

 

5.1          Establishment
of accounts.  The Administrator will establish a
bookkeeping account for each Participant to which the contributions described
in Article VI will be credited. The Administrator also may establish
sub-accounts for Participants, as the Administrator deems appropriate. The
accounts and sub-accounts will be adjusted to reflect interest and
distributions.

 

5.2          Investment
credits.  For Plan Years 2009 and 2010, the
Administrator will credit Participants’ accounts daily with interest at an
annual rate of 6%. For each subsequent Plan Year, the Administrator will set
and inform Participants of the crediting rate before the start of the Plan
Year.

 

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ARTICLE VI

 

CONTRIBUTIONS

 

6.1          Elective
deferrals.  Before the first day of each Plan Year or,
in a Participant’s first year of participation, within 30 days after the date
he or she first becomes a Participant, the Participant may elect to reduce
Compensation or Eligible Compensation, as appropriate, by a percent (in whole
numbers) not to exceed the Maximum Deferral. For Plan Year 2009, the Maximum
Deferral is 100 percent of Compensation, less any amounts required to be
withheld by law. For subsequent Plan Years, the Maximum Deferral is 50 percent
of Eligible Compensation. Such amounts will be withheld ratably from each of
the Participant’s paychecks. Provided that, in the case of a newly eligible
Participant, an election will apply only to Compensation or Eligible
Compensation for services performed after the election.

 

6.2          Employer
contributions.  In addition to a Participant’s elective
deferrals, the Employer will make contributions to the accounts or sub-accounts
of Participants, as follows. For the 2009 Plan Year, each Participant will
receive 4.5 percent of Eligible Compensation. For subsequent Plan Years, the Participant
will receive 100 percent of the first 1 percent, plus 70 percent of the next 5
percent, of the Eligible Compensation the Participant defers under Section 6.1.

 

6.3          Contribution
timing.  Elective deferrals will be credited to a
Participant’s account or sub-account on or as soon as practicable after the
date the Eligible Compensation would have been paid but for the deferral.
Employer contributions will be credited to a Participant’s account or
sub-account as soon as practicable after the end of the applicable Plan Year.

 

6.4          Election
forms and changes.  To be valid, Participant elections must be
made on forms provided by the Administrator and received by the Administrator
on or before the specified deadline. An election may not be changed after the
deadline. Provided, however, that a Participant’s elective deferrals will cease
automatically upon the Administrator’s approval of a distribution for the
Participant’s Unforeseeable Emergency and the Participant may not resume
elective deferrals until the next Plan Year.

 

ARTICLE VII

 

VESTING

 

7.1          Vesting.  A
Participant’s elective deferrals and interest thereon are at all times 100
percent vested. A Participant’s Employer contributions and interest thereon
will become 100 percent vested upon the earlier of a Change in Control or the
Participant’s, death, Disability, attainment of “Normal Retirement Age,” or
completion of 2 “Years of Service,” as such quoted terms are defined in the
Qualified Plan.

 

7.2          Forfeitures of Employer contributions. A Participant who Separates from Service
will forfeit all unvested Employer contributions and interest thereon.
Notwithstanding Section 7.1, a Participant whose employment is terminated
for Cause will forfeit all Employer contributions and interest thereon, without
regard to whether such amounts are vested or unvested.

 

4

 

ARTICLE VIII

 

BENEFIT PAYMENTS

 

8.1          Distribution timing.

 

(a)           Elective
deferrals. Coincident with each
election to defer Eligible Compensation for a Plan Year, a Participant may
elect a specific date on which that Plan Year’s elective deferrals and interest
thereon will be paid or commence to be paid. Such date must be no earlier than January 1
of the third Plan Year following the Plan Year in which the Eligible
Compensation would have been paid but for the deferral. Coincident with a
Participant’s first election to defer Eligible Compensation, the Participant
may elect to receive his, or her elective deferrals and interest, thereon in
the event of a Change in Control. The Participant’s elective deferrals and
interest thereon will be paid or commence to be paid on the earliest of (i) the
Participant’s Separation from Service, including by reason of death, (ii) the
Participant’s Disability, (iii) the specific payment date elected by the
Participant, if the Participant has elected to receive elective deferrals on a
specific date, or (iv) a Change in Control, if the Participant has elected
to receive elective deferrals upon a Change in Control.

 

(b)           Employer
contributions. Within 30 days after
the date an executive first becomes a Participant, he or she may elect to
receive Employer contributions and interest thereon in the event of a Change in
Control. The Participant’s Employer contributions and interest thereon will be
paid or commence to be paid on the earliest of (i) the Participant’s
Separation from Service, including by reason of death, (ii) the
Participant’s Disability, or (iii) a Change in Control, if the Participant
has elected to receive Employer contributions upon a Change in Control.

 

8.2          Form of
distribution.  A
Participant may not elect the form of payment when payment is made because of
the Participant’s death or Disability or a Change in Control. In these events,
the Participant will automatically receive his or her elective deferrals,
Employer contributions, and interest thereon in a single lump sum. For other
events, the following rules apply:

 

Coincident with each election
to defer Eligible Compensation for a Plan Year, the Participant may elect the
form in which that Plan Year’s elective deferrals and interest thereon will be
paid if payment is made because of the occurrence of a specific date.
Coincident with a Participant’s first election to defer Eligible Compensation,
the Participant may elect the form in which elective deferrals and interest
thereon will be paid if payment is made because of a Separation from Service
other than death. Within 30 days after the date an executive first becomes a
Participant, he or she may elect the form in which Employer contributions and
interest thereon will be paid if payment is made because of a Separation from
Service other than death. A Participant may choose a single lump sum or 5, 10,
or 15 annual installments, determined by dividing the applicable account or sub-account
balance by the number of remaining installments.  If a Participant fails to elect a form of
payment for a particular event, and benefits are paid because of that event, or
if a Participant’s entire account balance is less than $50,000 as of the date
of the event, then the Participant will receive his or her benefits in a single
lump sum.

 

8.3          Changes to time and form of distribution. A Participant may elect to change the time
and form of a distribution, provided the election satisfies both of the
following conditions:

 

5

 

·                  The election is not effective until 12 months after it is
made. If an election is made later than 12 months before a scheduled lump sum
payment or the commencement of installments, the election will be null and void
and the Participant’s benefit will be paid in accordance with his or her most
recent valid election.

·                  The election defers payment for at least 5 years from the
date the payment otherwise would have been made or, if earlier, until the
Participant’s Disability or death.

 

For purposes of this Section 8.3,
installments are deemed to be a single payment, commencing on the date of the
first installment.

 

8.4          Unforeseeable
Emergency.  Notwithstanding Sections 8.1, 8.2, and
8.3, in the event of a Participant’s Unforeseeable Emergency, the Participant
may request, and the Administrator may approve, a distribution from the vested
balance in his or her account. The distribution will be limited to the amount
that the Administrator determines is reasonably necessary to satisfy the
emergency need and may include amounts necessary to pay any federal, state, and
local taxes or penalties reasonably expected to result from the distribution. A
distribution will not be made to the extent that the emergency is or may be
relieved through reimbursement from insurance or otherwise, or by liquidation
of the Participant’s assets, provided the liquidation of assets would not cause
severe financial hardship.

 

8.5          Beneficiaries.  A
Participant may designate the Beneficiary or Beneficiaries who will receive
benefits payable upon his or her death and change or revoke the designation
without the consent of any Beneficiary. The last designation received by the
Administrator will be controlling. A designation, change, or revocation will
not be effective unless it is received by the Administrator in writing prior to
the Participant’s death. If the Participant fails to furnish an effective
designation, or the Participant’s Beneficiaries predecease him or her, the
Participant’s estate will be deemed to be his or her Beneficiary.

 

8.6          Tax withholding and consequences. Each Participant’s payments will be reduced
by the federal, state, and local taxes, which the Employer is required to
withhold. The Employer does not represent or guarantee that any particular tax
consequences will result from participation in the Plan and has no obligation
to Participants for any adverse tax consequences.

 

ARTICLE IX

 

SOURCE OF PAYMENTS

 

9.1          Benefits
and expenses.  Plan benefits and expenses will be paid
directly from the Employer’s general assets. The Employer is not required to
set aside, earmark, or escrow any funds or other assets to satisfy its
obligations under the Plan. Participants and Beneficiaries have no interest in
any specific assets of the Employer, other than the unsecured right to receive
benefits pursuant to the terms of the Plan. In this regard, Participants
acknowledge that the accounts and sub-accounts referred to in the Plan are
merely bookkeeping entries used to track their benefits.

 

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ARTICLE X

 

CLAIMS PROCEDURE

 

10.1        Filing
of claim.
In  general, the payment of Plan
benefits is automatic and no claims have to be filed. However, a Participant or
Beneficiary (Claimant) may file a written claim for benefits with the
Administrator. The claim must be filed no later than 60 days after the latest
date under the terms of the Plan for or payment of the benefit in dispute.

 

10.2        Denial
of claim.
If the claim is denied in whole or in part, the Claimant will be given a
written notification containing specific reasons for the denial. The written
notification will refer to the pertinent Plan provisions on which the denial of
benefits is based. It also will contain, a description of any additional
materials or information necessary for the Claimant to perfect a claim and an
explanation of why such material or information is necessary. Further, the
notification will provide appropriate information as to the steps to be taken
if the Claimant wishes to submit his or her claim for review. This written
notification will be given to a Claimant within 60 days after receipt of his or
her claim by the Administrator.

 

10.3        Right
of review.
If a claim is denied in whole or in part, the Claimant or his or her duly
authorized representative will be permitted to review pertinent documents and
to submit to the Administrator issues and comments in writing. In addition, the
Claimant or his or her duly authorized representative may make a written request
for a full and fair review of his or her claim and its denial by the
Administrator, provided the written request is received by the Administrator
within 60 days after the Claimant receives written notification of the denial.

 

10.4        Decision
on review.
The Administrator will render a decision within 60 days after receipt of the
request for review. However, where special circumstances require an extension
of time for making the decision, it may be postponed on written notice to the
Claimant (prior to the expiration of the initial 60-day period) for an
additional 60 days, but in no event will the Administrator render the decision
more than 120 days after the receipt of the request for review. The decision
will be furnished to the Claimant in writing and in a manner calculated to be
understood by the Claimant and will set forth the specific reason(s) for
the decision and the specific Plan provision(s) on which the decision is
based.

 

10.5        Time
of payment.
In the event a claim is upheld, the Participant’s or Beneficiary’s benefit will
be paid no later than the last day of the calendar year in which the decision
to uphold the claim is made.

 

ARTICLE XI

 

MISCELLANEOUS PROVISIONS

 

11.1        Plan
amendment and termination. The Employer reserves the right to amend, discontinue, or terminate the
Plan at any time by action of the Compensation Committee of its Board of
Directors (Board). However, no amendment, discontinuance, or termination will
diminish the benefits of a Participant that are earned and vested prior to the
date the Board 

 

7

 

approves
the amendment, discontinuance, or termination. The Employer may not accelerate
the timing of benefit payments, except to the extent Code Section 409A
permits.

 

11.2        Non-alienation
of benefit.
The interest of a Participant or Beneficiary in his or her Plan benefits is not
subject to the claims of the Participant’s or Beneficiary’s creditors and may
not be voluntarily or involuntarily sold, transferred, pledged, alienated,
assigned, anticipated, or encumbered. Any attempt by a Participant or
Beneficiary to do so will be null and void.

 

11.3        No
employment rights.
The Plan does not constitute a contract of employment and participation in the
Plan does not give a Participant the right to continue employment with the
Employer or limit the Employer’s right to discharge any employee with or
without Cause.

 

11.4        Indemnification. To the extent the law allows, the Employer
will indemnify and hold harmless the Administrator, any of the Administrator’s
delegates, and any  employee who may act
on behalf of the Employer in the administration of the Plan from and against
any liability, loss, cost, or expense (including reasonable attorneys’ fees)
incurred at any time as a result of or in connection with any claims, demands,
actions, or causes of action of any Participant, any person claiming through
any Participant, or any other person, party, or authority claiming to have an
interest in the Plan or standing to act for any person or groups having an interest
in the Plan, for or on account of any of the acts or omissions (or alleged acts
or omissions) of the Administrator, any delegate, or any employee, except to
the extent resulting from that person’s willful misconduct.

 

11.5        Successors. The Plan is binding on the Employer and its
successors and assigns and on each Participant and Beneficiary.

 

11.6        Severability. In case any provision of the Plan is held
illegal or invalid for any reason, the illegality or invalidity will not affect
the remaining provisions of the Plan, which will be construed and enforced as
if the illegal or invalid provision had never been set forth.

 

11.7        Controlling
law. To the extent
not superseded by the laws of the United States, the laws of Florida are
controlling in all matters relating to the Plan, without regard to that state’s
choice of laws provisions.

 

8

 

IN WITNESS WHEREOF, BU Financial Corporation has duly executed this
Plan as of 09/25/09.

 

BU FINANCIAL CORPORATION

 

	
  By:

  	
  /s/ Rajinder P. Singh

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

 

BANKUNITED

 

NONQUALIFIED
DEFERRED COMPENSATION PLAN

 

Effective October 1,
2009

 

APPENDIX A

 

Eligible Compensation for
certain Participants shall be reduced each year by the amount specified below:

 

	
  Participant Name

  	
   

  	
  Offset Amount

  	
   

  
	
  John A. Kanas

  	
   

  	
  $

  	
  250,000

  	
   

  
	
  John Bohlsen

  	
   

  	
  $

  	
  250,000Exhibit 10.7

AS ADOPTED

 

BU FINANCIAL
CORPORATION

2009 STOCK OPTION PLAN

 

1.                                      PURPOSE

 

The BU Financial
Corporation 2009 Stock Option Plan (the “Plan”) has been
established to advance the interests of BU Financial Corporation (the “Company”) and its Affiliates by providing for the grant of
Stock Options to Participants.

 

2.                                      DEFINED TERMS

 

The following terms, when used
in the Plan, shall have the meanings and be subject to the provisions set forth
below:

 

“Affiliate”: Any Person that, with respect to a specified
Person, directly, or indirectly through one or more intermediaries, controls,
is controlled by, or is under common control with, the specified Person.

 

“Award
Agreement”: A
written agreement between the Company and the Participant evidencing a Stock Option,
which may, but need not, be executed or acknowledged by a Participant.

 

“Board”: The Board of Directors of the Company.

 

“Cause”: The term “Cause” shall mean (A) the
conviction, guilty plea or plea of “no contest” by the Participant to any
felony or a crime involving moral turpitude or the Participant’s commission of
any other act or omission involving dishonesty or fraud, (B) the
substantial and repeated failure of the Participant to perform duties of the
office held by the Participant, (C) the Participant’s gross negligence,
willful misconduct or breach of fiduciary duty with respect to the Company or
any of its Subsidiaries or Affiliates, and/or (D) any breach by the
Participant of any Restrictive Covenants.

 

“Change of
Control”: The
term “Change of Control” shall mean (A) the sale or disposition, in one or
a series of related transactions, of all or substantially all of the assets of
the Company and its Subsidiaries, taken as a whole, to any “person” or “group”
(as such terms are defined in Sections 13(d)(3) and 14(d)(2) of the
Exchange Act), other than any person or group holding an interest in BU
Financial Holdings LLC as of May 21, 2009 and/or their respective
Affiliates (together, the “Investors”) or (B) the
date upon which any “person” or “group”, other than the Investors, is or
becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under
the Exchange Act), directly or indirectly, of fifty percent (50%) or more of
the total voting power of the voting Interests (as defined in the LLC
Agreement) in BU Financial Holdings LLC or the Voting Stock of the Company (or
any successor thereto), including by way of merger, consolidation or otherwise.

 

“Code”: The U.S. Internal Revenue Code of 1986, as from
time to time amended and in effect, or any successor statute as from time to
time in effect.

 

 

“Committee”: The Board or, if one or more has been appointed, a
committee of the Board. The Committee may delegate ministerial tasks to such
persons as it deems appropriate.

 

“Common
Stock”: Common shares of the
Company, par value $0.01 per share.

 

“Company”: The term “Company” shall have the meaning set forth
in Section 1 hereof.

 

“Disability”: A finding by the Board that the Participant has
been unable to perform his or her job functions by reason of a physical or
mental impairment for a period of 90 consecutive days or any 90 days within a
period of 180 consecutive days.

 

“Employee”: Any individual who is employed by the Company or
an Affiliate.

 

“Employment”: A Participant’s employment or other service
relationship with the Company and its Affiliates.  Unless the Committee provides otherwise, a
Participant who receives a Stock Option in his or her capacity as an Employee
shall be deemed to cease Employment when the employee-employer relationship with
the Company and its Affiliates ceases.  A
Participant who receives a Stock Option in any other capacity shall be deemed
to continue Employment so long as the Participant is providing services in such
capacity.  If a Participant’s
relationship is with an Affiliate and that entity ceases to be an Affiliate,
the Participant shall be deemed to cease Employment when the entity ceases to
be an Affiliate unless the Participant transfers Employment to the Company or
its remaining Affiliates.

 

“Exchange
Act”: The Securities
Exchange Act of 1934, as from time to time amended and in effect, or any
successor statute as from time to time in effect.

 

“Fair Market
Value”: “Fair Market Value” as
defined in the Shareholders Agreement.

 

“LLC
Agreement”: The
Amended and Restated Limited Liability Company Agreement, dated May 21,
2009, by and among BU Financial Holdings LLC and its members, as it may be
amended, supplemented or modified from time to time.

 

“Participant”: An individual who is granted a Stock Option under
the Plan.

 

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

 

“Plan”: The term “Plan” has the meaning set forth in Section 1
hereof.

 

“Public
Offering”: A
public offering and sale of equity securities for cash pursuant to an effective
registration statement under the Securities Act of 1933 and the rules promulgated
thereunder, as amended from time to time (the “Securities
Act”).

 

“Restrictive
Covenants”: Any
non-competition, non-solicitation, confidentiality or other restrictive
covenants, in each case to the extent applicable to the Participant under any
written agreement between the Participant and the Company or any of its
Subsidiaries.

 

2

 

“Shareholders
Agreement”: The
Shareholders’ Agreement to be entered into by and among the Company, BU
Financial Holdings LLC and such other stockholders of the Company as may be
party thereto from time to time, which agreement shall contain the terms and
conditions of as set forth on Exhibit A to the Participant’s Award
Agreement and such other customary and other terms and conditions as may be
determined by the Company and BU Financial Holdings LLC prior to the execution
thereof.

 

“Stock
Option”: An
option entitling the recipient to acquire shares of Common Stock upon payment
of the applicable exercise price.

 

“Subsidiary”: Any subsidiary of the Company.

 

“Voting
Stock”: All
classes of capital stock or shares then outstanding and normally entitled to
vote in elections of directors.

 

3.                                      ADMINISTRATION

 

The Committee has
discretionary authority, subject only to the express provisions of the Plan and
the Award Agreements, to interpret the Plan; to determine eligibility for and
grant Stock Options; to determine, modify and/or waive the terms and conditions
of any Stock Option; to prescribe forms, rules and procedures; and to
otherwise do all things necessary to carry out the purposes of the Plan.  Except as otherwise provided by the express
terms of an Award Agreement, all determinations of the Committee made under the
Plan shall be conclusive and shall bind all parties.

 

4.                                      LIMITS ON STOCK OPTIONS UNDER THE PLAN

 

(a)           Number of Shares. A maximum of 231,250 shares of Common Stock (which reflects the Common
Stock split on November 12, 2009) may be delivered in satisfaction of
Stock Options under the Plan.  The
issuance of shares of Common Stock, the payment of cash upon the exercise of a
Stock Option, the withholding of shares of Common Stock in satisfaction of the
exercise price of Stock Options or the withholding of shares of Common Stock in
satisfaction of tax withholding requirements shall reduce the total number of
shares of Common Stock available under the Plan, as applicable.  Shares of Common Stock issued under stock
options of an acquired company that are converted, replaced or adjusted in
connection with the acquisition shall not reduce the number of shares of Common
Stock available for Stock Options under the Plan.

 

(b)           Type of Shares.
Shares of Common Stock delivered under the Plan may be authorized but unissued
Common Stock or previously issued Common Stock acquired by the Company or any
of its Affiliates and may include fractional shares of Common Stock.

 

5.                                      ELIGIBILITY AND PARTICIPATION

 

The Board, or the Committee if
expressly so permitted by the Board, shall select Participants from among those
key Employees of the Company or its Affiliates who, in the opinion of the Board
or the Committee, as applicable, are in a position to make a significant
contribution to the success of the Company and its Affiliates.

 

3

 

6.                                      RULES APPLICABLE TO STOCK OPTIONS

 

(a)           General.

 

(1)   Stock Option Provisions. The Committee shall determine the terms of all Stock Options, subject
to the limitations provided herein, and shall furnish to each Participant an
Award Agreement setting forth the terms applicable to the Participant’s Stock
Option.  By entering into an Award
Agreement, the Participant agrees to the terms of the Stock Option and of the
Plan, to the extent not inconsistent with the express terms of the Award
Agreement.  Notwithstanding any provision
of this Plan to the contrary, awards of an acquired company that are converted,
replaced or adjusted in connection with the acquisition may contain terms and
conditions that are inconsistent with the terms and conditions specified
herein, as determined by the Committee.

 

(2)   Non-Qualified Stock Options. All Stock Options granted pursuant to the Plan are intended to be
non-qualified stock options, and are not intended to be treated as “Incentive
Stock Options” that comply with Section 422 of the Code.

 

(3)   Transferability.
Except as the Committee otherwise expressly provides, Stock Options may not be
transferred other than by will or by the laws of descent and distribution, and
during a Participant’s lifetime, except as the Committee otherwise expressly
provides, may be exercised only by the Participant

 

(4)   Vesting.
The Committee may determine the time or times at which a Stock Option shall
vest or become exercisable and the terms on which a Stock Option requiring
exercise shall remain exercisable; provided, however, that each
Stock Option shall expire on the tenth (10th) anniversary of the date of grant
of such Stock Option, unless it is earlier exercised or forfeited as provided
herein.  Notwithstanding anything set
forth herein to the contrary, the Committee may at any time accelerate the
vesting or exercisability of a Stock Option, regardless of any adverse or
potentially adverse tax consequences resulting from such acceleration.

 

(5)   Termination of Employment.  Unless the Committee expressly
provides otherwise in an Award Agreement, immediately upon the cessation of a
Participant’s Employment all Stock Options (whether vested or unvested) shall
cease to be exercisable and shall terminate, except that:

 

(A)          subject to subsections (B) and (C) below, all Stock Options
held by the Participant or the Participant’s “permitted transferees” (as
determined by reference to the Shareholders Agreement, and, in each case, the
applicable Award Agreement), if any, immediately prior to the termination of
the Participant’s Employment for any reason other than Cause, death or
Disability, to the extent then exercisable, shall remain exercisable for the
shorter of (i) the ninety (90) day period following such termination and (ii) the
period ending on the last date on which such Stock Option could have been
exercised without regard to this Section 6(a)(5), and shall thereupon
terminate;

 

(B)           all Stock Options held by a Participant or the Participant’s permitted
transferees, if any, immediately prior to the termination of the Participant’s
employment as a result of the Participant’s death or Disability, to the extent
then exercisable, shall remain exercisable for

 

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the shorter of (i) the
twelve (12) month period following such termination and (ii) the period
ending on the latest date on which such Stock Options could have been exercised
without regard to this Section 6(a)(5), and shall thereupon terminate; and

 

(C)           all Stock Options (whether vested or unvested) held by a Participant or
the Participant’s permitted transferees, if any, immediately prior to the
cessation of the Participant’s Employment shall immediately terminate upon such
cessation if such cessation of Employment was for Cause.

 

(6)   Taxes.
The Committee shall make such provision for the withholding of taxes as it
deems necessary.  The Committee may, but
need not, hold back shares of Common Stock from the exercise of a Stock Option
or permit a Participant to tender previously owned shares of Common Stock in
satisfaction of tax withholding requirements (but not in excess of the
applicable minimum statutory withholding rate).

 

(7)   Rights Limited.
Nothing in the Plan shall be construed as giving any person the right to
continued Employment with the Company or its Affiliates, continued participation
in the Plan, or any rights as a stockholder except as to shares of Common Stock
actually issued under the Plan.

 

(8)   Shareholders Agreement. All shares of Common Stock issued upon the exercise of Stock Options
issued under the Plan shall be subject to the Shareholders Agreement.

 

(b)           Exercise.

 

(1)   Time And Manner Of Exercise. Unless the Committee expressly provides otherwise, a Stock Option
permitting exercise by the holder shall not be deemed to have been exercised
until the Committee receives a notice of exercise (in a form acceptable to the
Committee) signed by the appropriate person and accompanied by any payment
required under the Stock Option.  If the
Stock Option is exercised by any person other than the Participant, the
Committee may require satisfactory evidence that the person exercising the
Stock Option has the right to do so.

 

(2)   Exercise Price.
Except as otherwise permitted pursuant to Section 7(b)(1) hereof, the
exercise price of a Stock Option shall not be less than the Fair Market Value
of the Common Stock subject to the Stock Option, determined as of the date of
grant.

 

(3)   Payment Of Exercise Price. Where the exercise of a Stock Option is to be accompanied by payment,
the Committee may determine the required or permitted forms of payment; provided,
that all such payments shall be (a) by cash or check acceptable to the
Committee, (b) by means of withholding of shares of Common Stock with an
aggregate Fair Market Value equal to (A) the aggregate exercise price and (B) the
minimum statutory withholding taxes with respect to such exercise or (c) by
any other method approved by the Committee.

 

5

 

7.                                      EFFECT OF CERTAIN TRANSACTIONS

 

(a)           Change Of Control.  Except as otherwise provided in an Award
Agreement, in the event of a Change of Control in which there is an acquiring
or surviving entity, the Committee may, unless the Committee determines that
doing so is inappropriate or unfeasible, provide for the continuation or
assumption of some or all of the outstanding Stock Options, or for the grant of
new Stock Options in substitution therefor, by the acquiror or survivor or an
Affiliate of the acquiror or survivor, in each case on such terms and subject
to such conditions as preserve the intrinsic value of the Stock Option in the
Committee’s good faith determination.  In
the event of a Change of Control (whether or not there is an acquiring or
surviving entity) in which there is no assumption or substitution as to some or
all of the outstanding Stock Options, the Committee shall preserve the
intrinsic value of the Stock Options, provide for treating as satisfied any
time-based vesting condition on any such Stock Option or for the accelerated
delivery of shares of Common Stock issuable under each such Stock Option, or
cancel any Stock Option and, in connection therewith, pay an amount (in cash
or, in the discretion of the Committee, in the form of consideration paid to
shareholders of the Company in connection with such Change of Control) which
shall equal the excess, if any, of the Fair Market Value of the shares of
Common Stock subject to such Stock Options over the aggregate exercise price of
such Stock Options, in each case on a basis that gives the holder of the Stock
Option a reasonable opportunity, as determined by the Committee, following
exercise or cancellation of the Stock Option or the issuance of the shares of
Common Stock, as the case may be, to participate as a stockholder in the Change
of Control.  Except as otherwise provided
in an Award Agreement, each Stock Option (unless assumed pursuant to the first
sentence of this Section 7(a)), shall terminate upon consummation of the
Change of Control.

 

(b)           Changes In, Distributions With Respect To And
Redemptions Of Common Stock.

 

(1)   Basic Adjustment Provisions. In the event of any stock dividend or other similar distribution
(whether in the form of stock or other securities or other property), stock
split or combination of shares (including a reverse stock split),
recapitalization, conversion, reorganization, consolidation, split-up,
spin-off, combination, merger, exchange of stock, redemption or repurchase of
all or part of the shares of any class of stock or any change in the capital
structure of the Company or an Affiliate or other transaction or event (other
than those described in Section 7(a)), the Committee shall, as appropriate
in order to prevent enlargement or dilution of benefits intended to be made
available under the Plan, make adjustments to the maximum number of shares of
Common Stock that may be delivered under the Plan under Section 4(a) and
shall also make appropriate adjustments to the number and kind of shares of
stock, securities or other property (including cash) subject to Stock Options
then outstanding or subsequently granted, any exercise prices relating to Stock
Options and any other provision of Stock Options affected by such change.

 

(2)   Certain Other Adjustments. The Committee shall also make adjustments of the type described in Section 7(b)(1) above
to take into account distributions to stockholders other than those provided
for in Section 7(a) and 7(b)(1), or any other event, if the Committee
determines that adjustments are appropriate to avoid distortion in the
operation of the Plan and to preserve the value of Stock Options made
hereunder.

 

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(3)   Continuing Application of Plan Terms. References in the Plan to shares of Common Stock shall be construed to
include any stock or securities resulting from an adjustment pursuant to this Section 7.

 

8.                                      LEGAL CONDITIONS ON DELIVERY OF COMMON STOCK

 

The Company shall, prior to
delivering shares of Common Stock pursuant to the Plan or removing any
restriction from shares of Common Stock previously delivered under the Plan,
ensure that (a) all legal matters in connection with the issuance and
delivery of such shares have been addressed and resolved, and (b) if the
outstanding Common Stock is at the time of delivery listed on any stock
exchange or national market system, the shares to be delivered have been listed
or authorized to be listed on such exchange or system upon official notice of
issuance.  The Company and its Affiliates
shall be obligated to deliver any shares of Common Stock pursuant to the Plan
or to remove any restriction from shares of Common Stock previously delivered
under the Plan upon satisfaction or waiver of the conditions set forth in the
preceding sentence and all other conditions of the Award Agreement.  If the sale of Common Stock has not been
registered under the Securities Act, the Company may require, as a condition to
exercise of the Stock Option, such representations or agreements as counsel for
the Company may in good faith recommend to avoid violation of the Securities
Act.  The Company may require that certificates
evidencing Common Stock issued under the Plan bear an appropriate legend
reflecting any restriction on transfer applicable to such Common Stock, and the
Company may hold the certificates pending lapse of the applicable restrictions.

 

9.                                      AMENDMENT AND TERMINATION

 

The Committee, in it sole and
absolute discretion, may at any time or times amend or alter the Plan or any
outstanding Stock Option and may at any time terminate or discontinue the Plan
as to any future grants of Stock Options; provided, that the Committee
may not, without the Participant’s consent, amend or terminate the terms of a
Stock Option or the Plan so as to affect adversely the Participants’ or a
Participant’s rights under a Stock Option or the Plan.  Any amendments to the Plan shall be
conditioned upon stockholder approval only to the extent, if any, such approval
is required by applicable law (including the Code), as determined by the
Committee.

 

10.                               ESTABLISHMENT OF SUB-PLANS

 

The Board may from time to
time establish one or more sub-plans under the Plan for purposes of satisfying
applicable blue sky, securities or tax laws of various jurisdictions.  The Board shall establish such sub-plans by
adopting supplements to the Plan setting forth (i) such limitations on the
Committee’s discretion under the Plan as the Board deems necessary or desirable
and (ii) such additional terms and conditions not otherwise inconsistent
with the Plan as the Board shall deem necessary or desirable.  All supplements adopted by the Board shall be
deemed to be part of the Plan, but each supplement shall apply only to
Participants within the affected jurisdiction and the Company shall not be
required to provide copies of any supplement to Participants in any
jurisdiction that is not affected.

 

7

 

11.                               SECTION 409A

 

It is intended that the terms
of this Plan be exempt from or comply with Section 409A of the Code.  If it is determined that the terms of this
Plan have been structured in a manner that would result in adverse tax
treatment under Section 409A of the Code, the parties agree to cooperate
in taking all reasonable measures to restructure the arrangement to minimize or
avoid such adverse tax treatment without materially impairing the economic
rights of the Participants.

 

12.                               GOVERNING LAW/JURISDICTION

 

The Plan shall be governed by
and construed and enforced in accordance with the laws of the State of Delaware
applicable to contracts made and to be performed therein.  Any suit, action or proceeding with respect
to the Plan or a Stock Option, or any judgment entered by any court in respect
of any thereof, shall be brought in any court of competent jurisdiction in the
State of New York or the State of Delaware. 
By accepting a Stock Option under the Plan, each Participant hereby
submits to the exclusive jurisdiction of such courts for the purpose of any
such suit, action, proceeding or judgment and hereby irrevocably waives (i) any
objections which the Participant may now or hereafter have to the laying of the
venue of any suit, action or proceeding arising out of or relating to this
Agreement brought in any court of competent jurisdiction in the State of
Delaware or the State of New York, (ii) any claim that any such suit,
action or proceeding brought in any such court has been brought in any
inconvenient forum and (iii) any right to a jury trial.

 

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