Document:

INTERVEST BANCSHARES CORPORATION
                            LONG-TERM INCENTIVE PLAN
                            ------------------------

SECTION 1    GENERAL
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     1.1     Purpose.  This Intervest Bancshares Corporation Long-Term Incentive
             -------
Plan (the "Plan") has been established by Intervest Bancshares Corporation (the
"Company") (a) to attract and retain persons eligible to participate in the
Plan; (b) motivate Participants, by means of appropriate incentives, to achieve
long-range goals; (c) provide incentive compensation opportunities that are
competitive with those of other similar companies; and (d) further identify
Participants' interests with those of the Company's other stockholders through
compensation that is based on the Company's common stock; and thereby promote
the long-term financial interest of the Company and the Related Companies,
including the growth in value of the Company's equity and enhancement of
long-term stockholder return.

     1.2     Participation.  Subject to the terms and conditions of the Plan,
             -------------
the Committee shall determine and designate, from time to time, from among the
Eligible Individuals, those persons who will be granted one or more Awards under
the Plan, and thereby become "Participants" in the Plan.  In the discretion of
the Committee, a Participant may be granted any Award permitted under the
provisions of the Plan, and more than one Award may be granted to a Participant.
Awards may be granted as alternatives to or replacements of awards outstanding
under the Plan, or any other plan or arrangement of the Company or a Related
Company (including a plan or arrangement of a business or entity, all or a
portion of which is acquired by the Company or a Related Company).

     1.3     Operation, Administration and Definitions.  The operation and
             -----------------------------------------
administration of the Plan, including the Awards made under the Plan, shall be
subject to the provisions of Section 4 (relating to Operation and
Administration).  Capitalized terms in the Plan shall be defined as set forth in
the Plan (including the definition provisions of Section 1.4 of the Plan).

     1.4     Defined Terms.  For purposes of the Plan, the terms listed below
             -------------
shall be defined as follows:

     (a)     Award.  The term "Award" shall mean any award or benefit granted to
             -----
any Participant under the Plan, including, without limitation, the grant of
Options, SARs, Stock Awards and Cash Awards.

     (b)     Board.  The term "Board" shall mean the Board of Directors of the
             -----
Company.

     (c)     Change in Control.  The term "Change in Control" means a change in
             -----------------
control occurring after the Effective Date of this Plan of a nature that would
be required to be reported in a proxy statement with respect to the Company
(even if the Company is not actually subject to said reporting requirements) in
response to Item 6(e) (or any comparable or successor Item) of Schedule 14A of
Regulation 14A promulgated under the Securities Exchange Act of 1934, as amended
(the "Exchange Act"), except that any merger, consolidation or corporate
reorganization in which the owners of the Company's capital stock entitled to
vote in the election

<PAGE>
of directors (the "Voting Stock") prior to said combination receive 75% or more
of the resulting entity's Voting Stock shall not be considered a change in
control for the purposes of this Plan; and provided that, without limitation of
the foregoing, such change in control shall be deemed to have occurred if (i)
any "person" (as that term is used in Sections 13(d) and 14(d)(2) of the
Exchange Act, excluding any stock purchase or employee stock ownership plan
maintained by the Company or a Related Company) becomes the "beneficial owner"
(as that term is defined by the Securities and Exchange Commission for purposes
of Section 13(d) of the Exchange Act), directly or indirectly, of more than 15%
of the outstanding Voting Stock of the Company or its successors; or (ii) during
any period of two consecutive years a majority of the Board of Directors no
longer consists of individuals who were members of the Board of Directors at the
beginning of such period, unless the election of each director who was not a
director at the beginning of the period was approved by a vote of at least 75%
of the directors still in office who were directors at the beginning of the
period.

     (d)     Code.  The term "Code" means the Internal Revenue Code of 1986, as
             ----
amended. A reference to any provision of the Code shall include reference to any
successor provision of the Code.

     (e)     The term "Committee" is as defined in Section 5.
                       ---------

     (f)     The term "Eligible Individual" shall mean any employee, officer or
                       -------------------
non-employee director of the Company or a Related Company.

     (g)     Fair Market Value.  For purposes of determining the "Fair Market
             -----------------                                    -----------
Value" of a share of Stock, the following rules shall apply:
-----

             (i)     If the Stock is at the time listed or admitted to trading
on any stock exchange or a national market system, including without limitation
the Nasdaq National Market, then the "Fair Market Value" shall be the mean
between the lowest and highest reported sale prices of the Stock on the date in
question on the principal exchange on which the Stock is then listed or admitted
to trading. If no reported sale of Stock takes place on the date in question on
the principal exchange, then the reported closing asked price of the Stock on
such date on the principal exchange shall be determinative of "Fair Market
Value."

             (ii)     If the Stock is not at the time listed or admitted to
trading on a stock exchange, the "Fair Market Value" shall be the mean between
the lowest reported bid price and highest reported asked price of the Stock on
the date in question in the over-the-counter market, as such prices are reported
in a publication of general circulation selected by the Committee and regularly
reporting the market price of Stock in such market.

             (iii)     If the Stock is not listed or admitted to trading on any
stock exchange or traded in the over-the-counter market, the "Fair Market Value"
shall be as determined in good faith by the Committee.

<PAGE>
     (h)     Related Companies.  The term "Related Company" means (i) any
             -----------------
corporation, partnership, joint venture or other entity during any period in
which it owns, directly or indirectly, at least 50% of the voting power of all
classes of stock of the Company (or successor to the Company) entitled to vote;
and (ii) any corporation, partnership, joint venture or other entity during any
period in which at least 50% voting or profits interest is owned, directly or
indirectly, by the Company, by any entity that is a successor to the Company, or
by any entity that is a Related Company by reason of clause (i) next above.

     (i)     Stock.  The term "Stock" shall mean shares of Class A Common stock
             -----
of the Company.

SECTION 2.   OPTIONS AND SARS
             ----------------

     2.1     Descriptions.
             ------------

     (a)     The grant of an "Option" entitles the Participant to purchase
shares of Stock at an Exercise Price established by the Committee.  Options
granted under this Section 2 may be either Incentive Stock Options or
Non-Qualified Stock Options, as determined in the discretion of the Committee.
An "Incentive Stock Option" is an Option that is intended to satisfy the
requirements applicable to an "incentive stock option" described in Section
422(b) of the Code.  A "Non-Qualified Option" is an Option that is not intended
to be an "incentive stock option" as that term is described in Section 422(b) of
the Code.

     (b)     A stock appreciation right (a "SAR") entitles the Participant to
receive, in cash or Stock (as determined in accordance with subsection 2.5),
value equal to all or a portion of the excess of: (a) the Fair Market Value of a
specified number of shares of Stock at the time of exercise; over (b) an
Exercise Price established by the Committee pursuant to Section 2.2 of the Plan.

     2.2     Exercise Price.  The "Exercise Price" of each Option and SAR
             --------------
granted under this Section 2 shall be established by the Committee or shall be
determined by a method established by the Committee at the time the Option or
SAR is granted; except that the Exercise Price for Incentive Stock Options shall
not be less than 100% of the Fair Market Value of a share of Stock as of the
Pricing Date (or less than 110% of the Fair Market Value of a share of Stock as
of the Pricing Date in the case of Participants owning 10% of the voting stock
of the Company). For purposes of the preceding sentence, the "Pricing Date"
shall be the date on which the Option is granted.

     2.3     Exercise.  An Option and SAR shall be exercisable in accordance
             --------
with such terms and conditions and during such periods as may be established by
the Committee.

     2.4     Payment of Option Exercise Price.  The payment of the Exercise
             --------------------------------
Price of an Option granted under this Section 2 shall be subject to the
following:

                                        3
<PAGE>
     (a)     Subject to the following provisions of this subsection 2.4, the
full Exercise Price for shares of Stock purchased upon the exercise of any
Option shall be paid at the time of such exercise (except that, in the case of
an exercise arrangement approved by the Committee and described in subsection
2.4(c), payment may be made as soon as practicable after the exercise).

     (b)     The Exercise Price shall be payable in cash or, at the option of
the Committee, by tendering shares of Stock (by either actual delivery of shares
or by attestation, with such shares valued at Fair Market Value as of the day of
exercise), or in any combination thereof, as determined by the Committee.

     (c)     The Committee may permit a Participant to elect to pay the Exercise
Price upon the exercise of an Option by authorizing a third party to sell shares
of Stock (or a sufficient portion of the shares) acquired upon exercise of the
Option and remit to the Company a sufficient portion of the sale proceeds to pay
the entire Exercise Price and any tax withholding resulting from such exercise.

     2.5     Settlement of Award.  Distribution following exercise of an Option
             -------------------
or SAR, and shares of Stock distributed pursuant to such exercise, shall be
subject to such conditions, restrictions and contingencies as the Committee may
establish. Settlement of SARs may be made in shares of Stock (valued at their
Fair Market Value at the time of exercise), in cash, or in a combination
thereof, as determined in the discretion of the Committee.  The Committee, in
its discretion, may impose such conditions, restrictions and contingencies with
respect to shares of Stock acquired pursuant to the exercise of an Option or SAR
as the Committee determines to be desirable.

SECTION 3    OTHER AWARDS
---------    ------------

     3.1     Stock Award.  A Stock Award is a grant of shares of Stock or of a
             -----------
right to receive shares of Stock (or their cash equivalent or a combination of
both) in the future.  Each Stock Award shall be subject to such conditions,
restrictions and contingencies as the Committee shall determine.  These may
include continuous service and/or the achievement of performance goals.  The
performance goals that may be used by the Committee for such Awards may consist
of cash generation targets, profit, revenue and market share targets,
profitability targets as measured by return ratios, and stockholder returns. The
Committee may designate a single goal criterion or multiple goal criteria for
performance measurement purposes, with the measurement based on absolute Company
or business unit performance and/or on performance as compared with that of
other publicly-traded companies.

     3.2     Cash Award.  A Cash Award is a right denominated in cash or cash
             ----------
units to receive a payment, which may be in the form of cash, shares of Stock or
a combination, based on the attainment of pre-established performance goals and
such other conditions, restrictions and contingencies as the Committee shall
determine.  The performance goals that may be used by the Committee for such
awards may consist of cash generation targets, profits, revenue and market share
targets, profitability targets as measured by return ratio, stockholder returns
and such other goals as may be designated by the Committee.  The Committee may
designate a single goal

                                        4
<PAGE>
criterion or multiple goal criteria for performance measurement purposes with
the measurement based on absolute Company or business unit performance and/or on
performance as compared with that of other publicly-traded companies.

SECTION 4    OPERATION AND ADMINISTRATION
---------    ----------------------------

     4.1     Effective Date.  Subject to the approval of the stockholders of the
             --------------
Company, the Plan shall be effective as of February 23, 2006 (the "Effective
Date"); provided, however, that to the extent that Awards are made under the
Plan prior to its approval by stockholders, they shall be contingent on approval
of the Plan by the stockholders of the Company.  The Plan shall be unlimited in
duration and, in the event of Plan termination, shall remain in effect as long
as any Awards under it are outstanding; provided, however, that, to the extent
required by the Code, no Incentive Stock Options may be granted under the Plan
on a date that is more than ten years from the date the Plan is adopted or, if
earlier, the date the Plan is approved by stockholders.

     4.2     Shares Subject to Plan.
             ----------------------

     (a)     (i)     Subject to the following provisions of this subsection 4.2,
the maximum number shares of Stock that may be delivered to Participants and
their beneficiaries under the Plan shall be 750,000 shares.

             (ii)     Any shares of Stock granted under the Plan that are
forfeited back to the Company because of the failure to meet an Award
contingency or condition shall again be available for delivery pursuant to new
Awards granted under the Plan. To the extent any shares of Stock covered by an
Award are not delivered to a Participant or beneficiary because the Award is
forfeited or canceled, or the shares of Stock are not delivered because the
Award is settled in cash, such shares shall not be deemed to have been delivered
for purposes of determining the maximum number of shares of Stock available for
delivery under the Plan.

             (iii)     If the Exercise Price of any Option granted under the
Plan or any Prior Plan is satisfied by tendering shares of Stock to the Company
(by either actual delivery or by attestation), only the number of shares of
Stock issued net of the shares of Stock tendered shall be deemed delivered for
purposes of determining the maximum number of shares of Stock available for
delivery under the Plan.

             (iv)     Shares of Stock delivered under the Plan in settlement,
assumption or substitution of outstanding awards (or obligations to grant future
awards) under the plans or arrangements of another entity shall not reduce the
maximum number of shares of Stock available for delivery under the Plan, to the
extent that such settlement, assumption or substitution as a result of the
Company or a Related Company acquiring another entity (or an interest in another
entity).

     (b)     Subject to subsection 4.2(c), the following additional maximums are
imposed under the Plan.

                                        5
<PAGE>
             (i)     The maximum number of shares of Stock that may be issued by
Options intended to be Incentive Stock Options shall be 750,000 shares.

             (ii)     The maximum number of shares that may be covered by Awards
granted to any one individual pursuant to Section 2 (relating to Options and
SARs) shall be 200,000 shares during any three consecutive calendar years.

             (iii)     The maximum payment that can be made for awards granted
to any one individual pursuant to Section 3 (relating to Stock Awards and Cash
Awards) shall be $1,000,000 for any single or combined performance goals
established for any specified performance period. If an Award granted under
Section 3 is, at the time of grant, denominated in shares, the value of the
shares of Stock for determining this maximum individual payment amount will be
the Fair Market Value of a share of Stock on the first day of the applicable
performance period.

     (c)     Subject to Section 4.14 below relating to changes in control, in
the event of a corporate transaction involving the Company (including, without
limitation, any stock dividend, stock split, extraordinary cash dividend,
recapitalization, reorganization, merger, consolidation, split-up, spin-off,
combination or exchange of shares), the Committee (a) will make any appropriate
adjustments to the maximum number of shares of Stock that may be delivered to
Participants and their beneficiaries under this subsection 4.2(a) and (b), and
(b) will adjust Awards to preserve the benefits or potential benefits of the
Awards. Action by the Committee may include adjustment of: (i) the number and
kind of shares which may be delivered under the Plan; (ii) the number and kind
of shares subject to outstanding Awards; and (iii) the Exercise Price of
outstanding Options and SARs; as well as any other adjustments that the
Committee determines to be equitable.

     4.3     Limit on Distribution.  Distribution of shares of Stock or other
             ---------------------
amounts under the Plan shall be subject to the following:

     (a)     Notwithstanding any other provision of the Plan, the Company shall
have no liability to deliver any shares of Stock under the Plan or make any
other distribution of benefits under the Plan unless such delivery or
distribution would comply with all applicable laws (including, without
limitation, the requirements of the Securities Act of 1933), and the applicable
requirements of any securities exchange or similar entity.

     (b)     To the extent that the Plan provides for issuance of stock
certificates to reflect the issuance of shares of Stock, the issuance may be
effected on a noncertificated basis, to the extent not prohibited by applicable
law or the applicable rules of any stock exchange or a national market system,
including without limitation the Nasdaq National Stock Market.

     4.4     Tax Withholding.  Whenever the Company proposes or is required to
             ---------------
distribute Stock under the Plan, the Company may require the recipient to remit
to the Company an amount sufficient to satisfy any Federal, state and local tax
withholding requirements prior to the delivery of any certificate for such
shares or, in the discretion of the Committee, the Company

                                        6
<PAGE>
may withhold from the shares to be delivered shares sufficient to satisfy all or
a portion of such tax withholding requirements. Whenever under the Plan payments
are to be made in cash, such payments may be net of an amount sufficient to
satisfy any Federal, state and local tax withholding requirements.

     4.5     Dividends and Dividend Equivalents.  An Award may provide the
             ----------------------------------
Participant with the right to receive dividends or dividend equivalent payments
with respect to Stock which may be either paid currently or credited to an
account for the Participant, and may be settled in cash or Stock as determined
by the Committee.  Any such settlements, and any such crediting of dividends or
dividend equivalents or reinvestment in shares of Stock, may be subject to such
conditions, restrictions and contingencies as the Committee shall establish,
including the reinvestment of such credited amounts in Stock equivalents.

     4.6     Payments.  Awards may be settled through cash payments, the
             --------
delivery of shares of Stock, the granting of replacement Awards, or combination
thereof as the Committee shall determine.  Any Award settlement, including
payment deferrals, may be subject to such conditions, restrictions and
contingencies as the Committee shall determine.  The Committee may permit or
require the deferral of any Award payment, subject to such rules and procedures
as it may establish, which may include provisions for the payment or crediting
of interest, or dividend equivalents, including converting such credits into
deferred Stock equivalents.

     4.7     Transferability.  Except as otherwise provided by the Committee,
             ---------------
Awards under the Plan are not transferable except as designated by the
Participant by will or by the laws of descent and distribution.

     4.8     Form and Time of Elections.  Unless otherwise specified herein,
             --------------------------
each election required or permitted to be made by any Participant or other
person entitled to benefits under the Plan, and any permitted modification, or
revocation thereof, shall be in writing filed with the Committee at such times,
in such form, and subject to such restrictions and limitations, not inconsistent
with the terms of the Plan, as the Committee shall require.

     4.9     Agreement With Company.  At the time of an Award to a Participant
             ----------------------
under the Plan, the Committee may require a Participant to enter into an
agreement with the Company (the "Agreement") in a form specified by the
Committee, agreeing to the terms and conditions of the Plan and to such
additional terms and conditions, not inconsistent with the Plan, as the
Committee may, in its sole discretion, prescribe.

     4.10     Limitation of Implied Rights.
              ----------------------------

     (a)     Neither a Participant nor any other person shall, by reason of the
Plan, acquire any right in or title to any assets, funds or property of the
Company or any Related Company whatsoever, including, without limitation, any
specific funds, assets, or other property which the

                                        7
<PAGE>
Company or any Related Company, in their sole discretion, may set aside in
anticipation of a liability under the Plan.  A Participant shall have only a
contractual right to the stock or amounts, if any, payable under the Plan,
unsecured by any assets of the Company or any Related Company.  Nothing
contained in the Plan shall constitute a guarantee that the assets of such
companies shall be sufficient to pay any benefits to any person.

     (b)     The Plan does not constitute a contract of employment, and
selection as a Participant will not give any Eligible Individual the right to be
retained in the employ of the Company or any Related Company, nor any right or
claim to any benefit under the Plan, unless such right or claim has specifically
accrued under the terms of the Plan.  Except as otherwise provided in the Plan,
no Award under the Plan shall confer upon the holder thereof any right as a
stockholder of the Company prior to the date on which the individual fulfills
all conditions for receipt of such rights.

     4.11     No Fractional Shares.  No fractional shares of Stock shall be
              --------------------
issued or delivered pursuant to the Plan or any Award, and the Committee shall
determine whether cash shall be paid or transferred in lieu of any fractional
shares of Stock, or whether such fractional shares of Stock or any rights
thereto shall be canceled.

     4.12     Evidence.  Evidence required of anyone under the Plan may be by
              --------
certificate, affidavit, document or other information which the person acting on
it considers pertinent and reliable, and signed, made or presented by the proper
party or parties.

     4.13     Exceeding Limitations.  To the extent that the aggregate Fair
              ---------------------
Market Value of Stock (determined at the time the Option is granted) with
respect to which Incentive Stock Options are exercisable for the first time by a
Participant during any calendar year (under all plans of the Company and all
Related Companies) exceeds $100,000, such Options shall be treated as
Non-Qualified Stock Options, to the extent required by Section 422 of the Code.

     4.14     Change in Control.  Subject to the provisions of subsection 4.2
              -----------------
(relating to the adjustment of shares), and except as otherwise provided in the
Plan or the agreement reflecting the applicable Award, upon the occurrence of a
Change in Control:

              (a)     All outstanding Options (regardless of whether in tandem
                      with SARs) shall become fully exercisable.

              (b)     All outstanding SARs (regardless of whether in tandem with
                      Options) shall become fully exercisable.

              (c)     All Stock Awards shall become fully vested.

     4.15.    Action by Company or Related Company.  Any action required or
              ------------------------------------
permitted to be taken by the Company or any Related Company shall be by
resolution of its board of directors, or by action of one or more members of the
board (including a committee of the board) who are

                                        8
<PAGE>
duly authorized to act for the board, or (except to the extent prohibited by
applicable law or applicable rules of any stock exchange) by a duly authorized
officer of the Company.

     4.16.    Gender and Number.  Where the context admits, words in any gender
              -----------------
shall include any other gender, words in the singular shall include the plural
and the plural shall include the singular.

SECTION 5     COMMITTEE
---------     ---------

     5.1.     Administration.  The authority to control and manage the operation
              --------------
and administration of the Plan shall be vested in a committee (the "Committee")
in accordance with this Section 5.

     5.2.     Selection of Committee.  The Committee shall be selected by the
              ----------------------
Board, and shall consist of two or more members of the Board.

     5.3.     Powers of Committee.  The authority to manage and control the
              -------------------
operation and administration of the Plan shall be vested in the Committee,
subject to the following:

     (a)     Subject to the provisions of the Plan, the Committee will have the
authority and discretion to select from among the Eligible Individuals those
persons who shall receive Awards, to determine the time or times of receipt, to
determine the types of Awards and the number of shares covered by the Awards, to
establish the terms, conditions, performance criteria, restrictions, and other
provisions of such Awards, and (subject to the restrictions imposed by Section
6) to cancel or suspend Awards. In making such Award determinations, the
Committee may take into account the nature of services rendered by the
individual, the individual's present and potential contribution to the Company's
success and such other factors as the Committee deems relevant.

     (b)     Subject to the provisions of the Plan, the Committee will have the
authority and discretion to determine the extent to which Awards under the Plan
will be structured to conform to the requirements applicable to
performance-based compensation as described in Code Section 162(m), and to take
such action, establish such procedures, and impose such restrictions at the time
such Awards are granted as the Committee determines to be necessary or
appropriate to conform to such requirements.

     (c)     The Committee will have the authority and discretion to establish
terms and conditions of Awards as the Committee determines to be necessary or
appropriate to conform to applicable requirements or practices of jurisdictions
outside of the United States.

     (d)     The Committee will have the authority and discretion to interpret
the Plan, to establish, amend, and rescind any rules and regulations relating to
the Plan, to determine the terms and provisions of any agreements made pursuant
to the Plan, and to make all other determinations that may be necessary or
advisable for the administration of the Plan.

                                        9
<PAGE>
     (e)     Any interpretation of the Plan by the Committee and any decision
made by it under the Plan is final and binding.

     (f)     Except as otherwise expressly provided in the Plan, where the
Committee is authorized to make a determination with respect to any Award, such
determination shall be made at the time the Award is made, except that the
Committee may reserve the authority to have such determination made by the
Committee in the future (but only if such reservation is made at the time the
Award is granted and is expressly stated in the Agreement reflecting the Award).

     (g)     In controlling and managing the operation and administration of the
Plan, the Committee shall act by a majority of its then members, by meeting or
by a writing filed without a meeting. The Committee shall maintain and keep
adequate records concerning the Plan and concerning its proceedings and acts in
such form and detail as the Committee may decide.

     5.4     Delegation by Committee.  Except to the extent prohibited by
             -----------------------
applicable law or the applicable rules of a stock exchange, the Committee may
allocate all or any portion of its responsibilities and powers to any one or
more of its members and may delegate all or any part of its responsibilities and
powers to any person or persons selected by it. Any such allocation or
delegation may be revoked by the Committee at any time.

     5.5     Information to be Furnished to Committee.  The Company and Related
             ----------------------------------------
Companies shall furnish the Committee with such data and information as may be
required for it to discharge its duties. The records of the Company and Related
Companies as to an Eligible Individual's employment or other provision of
services, termination of employment or cessation of the provision of services,
leave of absence, reemployment and compensation shall be conclusive on all
persons unless determined to be incorrect. Participants and other persons
entitled to benefits under the Plan must furnish the Committee such evidence,
data or information as the Committee considers desirable to carry out the terms
of the Plan.

                                       10
<PAGE>
SECTION 6    EFFECT, DISCONTINUANCE, CANCELLATION, AMENDMENT AND TERMINATION
---------    ---------------------------------------------------------------

     6.1     Effect on Other Awards or Bonuses.  Neither adoption of the Plan
             ---------------------------------
nor the grant of Awards to a Participant will affect the Company's right to
grant to such Participant Awards that are not subject to the Plan, to issue to
such Participant Stock as a bonus or otherwise, or to adopt other plans or
arrangements under which Stock may be issued to Eligible Individuals.

     6.2     Discontinuance, Cancellation, Amendment and Termination.  The Board
             -------------------------------------------------------
may at any time discontinue granting Awards under the Plan.  The Board may at
any time or times alter or amend the Plan or any outstanding Award for any
purpose which may at the time be permitted by law, or may at any time terminate
the Plan as to any further grants of Awards, provided that (except to the extent
expressly required or permitted by the Plan) no such amendment will, without the
approval of (a) the Company's stockholders, to the extent stockholder approval
of the amendment is required by applicable law or regulations or the
requirements of the principal exchange or interdealer quotation system on which
the Stock is listed or quoted, (i) increase the maximum number of shares
available under the Plan, (ii) change the group of persons eligible to receive
Awards under the Plan, (iii) extend the time within which Awards may be granted,
or (iv) amend the provisions of this Section 6.2, and (b) each affected
Participant if the amendment, alteration or termination would adversely affect
the Participant's rights or obligations under any Award made prior to the date
of the amendment, alteration or termination.  The termination of the Plan would
not affect the validity of any Award outstanding on the date of termination.

                                       11Exhibit
      10.1

    

    TERMS
      OF ADVISOR TO THE BOARD AGREEMENT

    

      
        	
                Parties:

              	 	
                Blackhawk
                  Capital Group BDC, Inc., (the “Company”) and Robert S. Tull, Jr.
                  (“Advisor”), with a residence at 16 Firebush Road, Levittown, PA
                  19056.

              
	 	 	 
	
                Effective
                  Date:

              	 	
                Closing
                  of transactions (“Closing”) pursuant to Company’s Regulation E offering
                  for $5 million (“Offering”). 

              
	 	 	 
	
                Term:

              	 	
                Three
                  years (“Term”). After Term, Advisor to the Board Agreement shall be
                  subject to one-year extension if agreed to in writing by parties.
                  

              
	 	 	 
	
                Duties:

              	 	
                Duties
                  include, serving as Advisor to the Board of the Company. Duties
                  will
                  consist of the following: advising the Board on investment decisions
                  and
                  strategies, coordinating investment diversification in the strategies
                  and
                  analyzing investment opportunities with the Company’s fund manager, and
                  having an advisory position on the Company’s Investment Commitment
                  Committee. Advisor shall report to the Chairman of the Board of
                  Company.

              
	 	 	 
	
                Compensation:

              	 	
                To
                  be determined by the Board following the Effective Date and to
                  be covered
                  on the Company’s Director’s and Officers and Errors and Omissions
                  insurance policies. 

              
	 	 	 
	
                Bonus:

              	 	
                Bonus
                  based upon attainment of performance goals established by Board
                  of
                  Directors.

              
	 	 	 
	
                Expenses:

              	 	
                Advisor
                  will be reimbursed for all reasonable out-of-pocket business-related
                  expenses including meals, lodging and travel costs. The Board of
                  Directors
                  will adopt a resolution outlining the Company’s expense policy, which will
                  then govern.

              
	 	 	 
	
                Vacation:

              	 	
                Four
                  (4) weeks paid vacation per year.

              
	 	 	 
	
                Benefits:

              	 	
                Participation
                  in medical plan and eligible to participate in any other Company
                  benefit
                  plans.

              
	 	 	 
	
                Release/Released:

              	 	
                Advisor
                  to the Board may be Released from their duties as
                  follows:

              

      

    

    

    
      	(a)  	
              By
                Company:

            

    

    

    
      	(i)  	
              Upon
                thirty (30) days’ prior written notice to the Advisor if the Advisor is
                Disabled; “Disabled” means Advisor to the Board shall be unable to perform
                substantially all of his duties due to accident, disability, or physical
                or mental illness and a medical doctor certifies that Advisor is
                Disabled;
                or

            

    

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	(ii)  	
              Immediately
                upon written notice to the Advisor for “just cause.” “Just cause” means
                conviction of a felony, an act of dishonesty or willful misconduct
                or
                gross negligence.

            

    

    

    
      	(b)  	
              By
                Company without just cause and for no reason immediately upon notice
                to
                the Advisor; or

            

    

    

    
      	(c)  	
              Released
                automatically upon the death of the
                Advisor.

            

    

    

    Release
      Compensation:
      Advisor
      shall be entitled to the following upon Release of Advisor during the
      Term:

    

    
      	A.  	
              Upon
                Release of the Advisor or elimination of the Advisor’s Duites pursuant to
                Paragraph (a)(i) or (c) above, Advisor shall receive any earned and
                unpaid
                Compensation due up to the date of Release, plus all benefits earned
                to
                the date of Release.

            

    

    

    
      	B.  	
              In
                the event Advisor is Released without cause during the Term, Advisor
                is
                entitled to the following:

            

    

    

    
      	(i)  	
              If
                Advisor is Released by Company without cause during the Term, he
                shall
                receive three months of Compensation or another amount as determined
                by
                the Board upon the effective date, provided that if he is Released
                and
                there is less than three months left in the Term, he shall receive
                Compensation for the number of months remaining in the Term; no bonus
                shall be paid upon Release; and

            

    

     

    
      	(ii)  	
              In
                the event that the Advisor resigns during the six (6) month period
                following the Closing
                and has not been Released by Company without cause, or
                the Advisor resigns during the remainder of the Term and has not
                been
                Released by the Board without cause, he shall not be entitled to
                receive
                the Release Compensation described above in (i).
                

            

    

    

    Release
      Compensation (if applicable) shall be payable in equal weekly installments
      through the end of the Term and subject to federal, state and local tax
      withholding and FICA (the “Released Compensation”). During the payment period,
      Advisor shall not be entitled to receive any benefits. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	C.  	
              Upon
                Release of the Advisor or elimination of the Advisor’s Duties for just
                cause, pursuant to Paragraph (a)(ii) above, Advisor shall only receive
                any
                earned and unpaid Compensation due up to the date of Release, plus
                all
                benefits earned to the date of
                Release.

            

    

     

    IN
      WITNESS WHEREOF, the undersigned have duly executed this Terms of Advisor to
      the
      Board Agreement as of September 7, 2006. This is a non-binding letter of intent
      between the parties and no provisions in this Agreement are binding unless
      it is
      set forth in the Agreement and executed between the parties. 

     

    
      	
              BLACKHAWK
                CAPITAL GROUP BDC, INC.

            	 	 	 
	 	 	 	 	 
	By: 	/s/
              Craig A.
              Zabala	 	 	
              September
                12, 2006

            
	
            	
              
                

              

              Name: Dr.
                Craig A. Zabala

              Title:   Chairman
                of the Board

               President
                and CEO

            	 	 	
              
                
Date

            
	 	 	 	 	 
	 	/s/ Robert
              S. Tull,
              Jr.	 	 	September 12, 2006
	 	
              
Robert
              S. Tull, Jr.	 	 	
              
Date
	 	
            	 	 	
            

    

     

    
      
        
        

      

      
        3

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