Document:

exv10w3

Exhibit 10.3

OMNIBUS AMENDMENT AGREEMENT

     This Omnibus Amendment Agreement, dated as of February 6, 2009 (the “Agreement”), is entered
into by and between                                         (the “Executive”) and
Birmingham Bloomfield Bancshares, Inc. (the “Company”).

     WHEREAS, the Executive is, or may in the future be, a Senior Executive Officer of the Company,
as defined in subsection 111(b)(3) of the Emergency Economic Stabilization Act of 2008 (the “EESA”)
and regulations issued thereunder, including the rules set forth in 31 C.F.R. Part 30 (a “Senior
Executive Officer”); and

     WHEREAS, in connection with the purchase by the United States Department of the Treasury (the
“Treasury”) of certain preferred shares and warrants of the Company (the “Purchased Securities”),
pursuant to a Letter Agreement and a Securities Purchase Agreement, between the Treasury and the
Company (the “Purchase Agreement”), the Company is required to meet certain executive compensation
and corporate governance standards under Section 111(b) of the EESA, as amended by Section 7001 of
the American Recovery and Reinvestment Act of 2009 (the “ARRA”) and as implemented by guidance or
regulation thereunder that has been issued and is in effect as of the Closing Date (as defined in
the Purchase Agreement) (such guidance or regulation being hereinafter referred to as the “CPP
Guidance”); and

     WHEREAS, as a condition to the Closing (as defined in Section 1.2(a) of the Securities
Purchase Agreement), Section 1.2(d)(iv)(A) thereof provides that the Company is required to have
effected such changes to its compensation, bonus, incentive and other benefit plans, arrangements
and agreements (including golden parachute, severance and employment agreements) (collectively, the
“Compensation and Benefit Arrangements”) with respect to its Senior Executive Officers (and to the
extent necessary for such changes to be legally enforceable, each of its Senior Executive Officers
shall have duly consented in writing to such changes), as may be necessary, during the period that
Treasury owns any Purchased Securities, in order to comply with Section 111(b) of the EESA, the CPP
Guidance and the Purchase Agreement; and

     WHEREAS, in consideration for the benefits the Executive will receive as a result of the
participation of the Company in the Treasury’s TARP Capital Purchase Program, the Executive desires
to modify the Executive’s Compensation and Benefit Arrangements to the extent necessary to comply
with Section 111(b) of the EESA, the CPP Guidance and the Purchase Agreement.

     NOW, THEREFORE, in consideration of the foregoing and the covenants set forth herein, the
Executive and the Company hereby agree as follows:

	 	1.	 	Amendments to the Compensation and Benefit Arrangements. Effective as of the date
hereof (to the extent the Executive is a Senior Executive Officer for the

 

 

	 	 	 	2009 calendar year) or effective as of any calendar year commencing on or after January 1,
2009, if any, as to which the Executive shall in the future be a Senior Executive Officer
and any Purchased Securities are owned by the Treasury, the Executive’s Compensation and
Benefit Arrangements are hereby amended by this Agreement during such and any subsequent
periods as necessary to comply with the executive compensation and corporate governance
requirements of Section 111(b) of the EESA and the CPP Guidance, and the provisions of
Sections 1.2(d)(iv), 1.2(d)(v) or 4.10 of the Purchase Agreement, including as follows:

	 	a.	 	In the event that any payment or benefit to which the Executive is
or may become entitled under the Compensation and Benefit Arrangements is a
“golden parachute payment” for purposes of Section 111(b) of the EESA and the CPP
Guidance, including the rules set forth in § 30.9 Q-9 of 31 C.F.R. Part 30,
(i) the Company shall not make or provide (nor shall the Company be obligated to
make or provide), during the period that the Treasury owns any Purchased
Securities, such payment or benefit to the Executive, and (ii) the Executive shall
not be entitled to receive, during the period that the Treasury owns the Purchased
Securities, such payment or benefit.
	 
	 	b.	 	Any bonus or incentive compensation paid to the Executive during
the period that the Treasury owns the Purchased Securities will be subject to
recovery or “clawback” by the Company or its affiliates if the payments were based
on materially inaccurate financial statements or any other materially inaccurate
performance metric criteria, all within the meaning of Section 111(b) of the EESA
and the CPP Guidance.
	 
	 	c.	 	In the event that the Executive and Compensation Committee of the
Board of Directors of the Company determines that any incentive compensation
arrangement pursuant to which the Executive is or may be entitled to a payment
encourages the Executive to take unnecessary and excessive risks that threaten the
value of the financial institution within the meaning of §30.9 Q-4 of 31 C.F.R.
Part 30, the Committee, on behalf of the Company, shall take such action as is
necessary to amend such incentive compensation arrangements to eliminate such
encouragement, and the Executive’s incentive compensation will be determined
pursuant to such amended arrangements.

2. Miscellaneous.

	 	a.	 	The Executive’s execution of this Agreement shall not be
determinative of the Executive’s status as a Senior Executive Officer.

 

 

	 	b.	 	This Agreement shall be void and without effect ab initio if the
Closing (as defined in the Purchase Agreement) of the transactions contemplated by
the Purchase Agreement does not occur.
	 
	 	c.	 	This Agreement may be executed in one or more counterparts, each of
which when executed shall be an original, but all of which when taken together
shall constitute one and the same agreement.
	 
	 	d.	 	This Agreement shall be governed by, and interpreted in accordance
with, the laws of the State of Michigan.

[The remainder of this page left intentionally blank]

 

 

     IN WITNESS WHEREOF, the Company has caused this Agreement to be signed by its duly
authorized representative and the Executive has hereunto set his hand as of the day and year first
above written.

	 	 	 	 	 	 
	 

	 	 	 	 	 
	EXECUTIVE

	 	BIRMINGHAM BLOOMFIELD BANCSHARES, INC.	 	 
	 
	 	 	 	 	 
	 

	 	By:	 	 	 
	 

	 	 	 	 	 
	 

	 	 	Name: Robert E. Farr	 	 
	 

	 	 	Title: President and CEOexv10w4

Exhibit 10.4

United States Department of the Treasury

1500 Pennsylvania Avenue, NW

Washington, D.C. 20220

April 24, 2009

Ladies and Gentlemen:

     Reference is made to that certain Letter Agreement incorporating the Securities Purchase
Agreement – Standard Terms dated of as of the date of this letter agreement (the “Securities
Purchase Agreement”) between United States Department of Treasury (“Investor”) and the company
named on the signature page hereto (the “Company”). Capitalized terms used but not defined herein
shall have the meanings assigned to them in the Securities Purchase Agreement.

     The American Recovery and Reinvestment Act of 2009, as it may be amended from time to time
(the “Act’), includes provisions relating to executive compensation and other matters that may be
inconsistent with the Securities Purchase Agreement, the Warrant and the Certificate(s) of
Designation (the “Transaction Documents’). Accordingly, Investor and the Company desire to confirm
their understanding as follows:

     1. Notwithstanding anything in the Transaction Documents to the contrary, in the event that
the Act or any rules or regulations promulgated thereunder are inconsistent with any of the terms
of the Transaction Documents, the Act and such rules and regulations shall control.

     2. For the avoidance of doubt (and without limiting the generality of Paragraph 1):

     (a) the provisions of Section 111 of the Emergency Economic Stabilization Act of
2008, as amended by the Act or otherwise from time to time (“EESA’), shall apply to the
Company;

     (b) the waiver to be delivered by each of the Company’s Senior Executive Officers
pursuant to Section 1.2(d)(v) of the Securities Purchase Agreement shall, in addition,
be delivered by any additional highly compensated employees required by applicable
rules or regulations under EESA;

     (c) the Company’s chief executive officer and chief financial officer shall provide
the written certification of compliance by the Company with the requirements of Section 111
of EESA in the manner specified by Section 111(b)(4) thereunder or in any rules or
regulations under EESA; and

     (d) the Company shall be permitted to repay preferred shares, and when such preferred
shares are repaid, the Investor shall liquidate warrants associated with such preferred
shares, all in accordance with the Act and any rules and regulations thereunder.

 

     From and after the date hereof, each reference in the Securities Purchase Agreement to
“this Agreement” or “this Securities Purchase Agreement” or words of like import shall mean and
be a reference to the Agreement (as defined in the Securities Purchase Agreement) as amended by
this letter agreement.

     This letter agreement will be governed by and construed in accordance with the federal law of
the United States if and to the extent such law is applicable, and otherwise in accordance with the
laws of the State of New York applicable to contracts made and to be performed entirely within such
State.

     This letter agreement, the Securities Purchase Agreement, the Warrant, the Certificate(s) of
Designation and any other documents executed by the parties at the Closing constitute the entire
agreement of the parties with respect to the subject matter hereof.

     Nothing in this letter agreement shall be deemed an admission by Investor as to the
necessity of obtaining the consent of the Company in order to effect the changes to the
Transaction Documents contemplated by this letter agreement, nor shall anything in this letter
agreement be deemed to require Investor to obtain the consent of any other TARP recipient (as
defined in the Act) participating in the Capital Purchase Program (the “CPP ”) in order to effect
changes to their documentation under the CPP.

     This letter agreement may be executed in any number of separate counterparts, each such
counterpart being deemed to be an original instrument, and all such counterparts will together
constitute the same agreement. Executed signature pages to this letter agreement may be delivered
by facsimile and such facsimiles will be deemed sufficient as if actual signature pages had been
delivered.

[Remainder of this page intentionally left blank]

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     In witness whereof, the parties have duly executed this letter agreement as of the date first
written above.

	 	 	 	 	 
	 	UNITED STATES DEPARTMENT OF THE TREASURY

 	 
	 	By:  	/s/Neel Kashkari
 	 
	 	 	Name:  	Neel Kashkari 	 
	 	 	Title:  	Interim Assistant Secretary for Financial
Stability 	 
	 
	 	BIRMINGHAM BLOOMFIELD BANCSHARES, INC.

 	 
	 	By:  	/s/Robert E. Farr
 	 
	 	 	Name:  	Robert E. Farr 	 
	 	 	Title:  	President and CEO 	 
	 

     Signature
Page to Letter Agreement
 UST No. 450 – ARRA

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