Document:

Exhibit
4.1

 

FIRST BUSEY CORPORATION

 

2010 EQUITY INCENTIVE PLAN

 

Article 1

GENERAL

 

Section 1.1  Purpose,
Effective Date and Term.  The purpose of this FIRST BUSEY CORPORATION 2010 EQUITY INCENTIVE PLAN
(the “Plan”) is to coordinate the
Company’s three stockholder approved equity-based plans under one plan to
provide for uniformity of future awards and ease of administration. The Plan is
intended to promote the long-term financial success of FIRST BUSEY CORPORATION, a Nevada
corporation (the “Company”), and
any Subsidiary by providing a means to attract, retain and reward individuals
who can and do contribute to such success and to further align their interests
with those of the Company’s stockholders. The “Effective Date” of the Plan is May 19, 2010, subject to
approval of the Plan by the Company’s stockholders. The Plan shall remain in
effect as long as any awards under it are outstanding; provided, however, that no awards may be
granted under the Plan after the ten-year anniversary of the Effective Date.

 

Section 1.2 
Administration.  The authority to control and manage the
operation of the Plan shall be vested in a committee of the Company’s Board of
Directors (the “Committee”), in
accordance with Section 5.1.

 

Section 1.3 
Participation.  Each employee or Director of, or service
provider to, the Company or any Subsidiary of the Company who is granted an
award in accordance with the terms of the Plan shall be a “Participant” in the Plan. Awards under the
Plan shall be limited to employees and Directors of, and service providers to,
the Company or any Subsidiary; provided,
however, that an award (other than an award of an ISO) may be
granted to an individual prior to the date on which he or she first performs
services as an employee or a Director, provided that such award does not become
vested prior to the date such individual commences such services.

 

Section 1.4  Definitions.  Capitalized terms in the Plan shall be
defined as set forth in the Plan (including the definition provisions of Article 8).

 

Article 2

AWARDS

 

Section 2.1  General.  Any award under the Plan may be granted
singularly, in combination with another award (or awards), or in tandem whereby
the exercise or vesting of one award held by a Participant cancels another
award held by the Participant. Each award under the Plan shall be subject to
the terms and conditions of the Plan and such additional terms, conditions,
limitations and restrictions as the Committee shall provide with respect to
such award and as evidenced in the Award Agreement. Subject to the provisions
of Section 2.6, an award may
be granted as an alternative to or replacement of an existing award under
(i) the Plan; (ii) any other plan of the Company or any Subsidiary;
(iii) any Prior Plan; or (iv) as the form of payment for grants or
rights earned or due under any other compensation plan or arrangement of the
Company or any Subsidiary, including without limitation the plan of any entity
acquired by the Company or any Subsidiary. The types of awards that may be
granted under the Plan include:

 

(a)  Stock Options.  A stock option represents the right to
purchase shares of Stock at an Exercise Price established by the Committee. Any
option may be either an incentive stock option (an “ISO”) that is intended to satisfy the requirements applicable
to an “incentive stock option” described in Code Section 422(b) or a
non-qualified option that is not intended to be an ISO, provided, however, that no ISOs may be:
(i) granted after the ten-year anniversary of the earlier of the Effective
Date or

 

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stockholder approval of the
Plan; or (ii) granted to a non-employee. Unless otherwise specifically
provided by its terms, any option granted under the Plan shall be a
non-qualified option. Any ISO granted under this Plan that does not qualify as
an ISO for any reason shall be deemed to be a non-qualified option. In
addition, any ISO granted under this Plan may be unilaterally modified by the
Committee to disqualify such option from ISO treatment such that it shall
become a non-qualified option.

 

(b)  Stock Appreciation Rights.  A stock appreciation right (an “SAR”) is a right to receive, in cash, Stock
or a combination of both (as shall be reflected in the Award Agreement), an
amount equal to or based upon the excess of: (i) the Fair Market Value of
a share of Stock at the time of exercise; over (ii) an Exercise Price
established by the Committee.

 

(c)  Stock Awards.  A stock award is a grant of shares of Stock
or a right to receive shares of Stock (or their cash equivalent or a
combination of both) in the future. Such awards may include, but shall not be
limited to, bonus shares, stock units, performance shares, performance units,
restricted stock or restricted stock units or any other equity-based award as
determined by the Committee.

 

(d)  Cash Incentive Awards.  A cash incentive award is the grant of a
right to receive a payment of cash, determined on an individual basis or as an
allocation of an incentive pool (or Stock having a value equivalent to the cash
otherwise payable) that is contingent on the achievement of performance
objectives established by the Committee.

 

Section 2.2  Exercise of
Options and SARs.  An option or SAR shall be exercisable in
accordance with such terms and conditions and during such periods as may be
established by the Committee. In no event, however, shall an option or SAR
expire later than ten (10) years after the date of its grant (five
(5) years in the case of a 10% Stockholder with respect to an ISO). The “Exercise Price” of each option and SAR
shall not be less than 100% of the Fair Market Value of a share of Stock on the
date of grant (or, if greater, the par value of a share of Stock); provided, however, that the Exercise Price
of an ISO shall not be less than 110% of Fair Market Value of a share of Stock
on the date of grant in the case of a 10% Stockholder; further, provided, that, to the extent
permitted under Code Section 409A, the Exercise Price may be higher or
lower in the case of options or SARs granted in replacement of existing awards
held by an employee, Director or service provider granted under a Prior Plan or
by an acquired entity. The payment of the Exercise Price of an option shall be
by cash or, subject to limitations imposed by applicable law, by such other
means as the Committee may from time to time permit, including: (a) by
tendering, either actually or by attestation, shares of Stock acceptable to the
Committee, and valued at Fair Market Value as of the day of exercise;
(b) by irrevocably authorizing a third party, acceptable to the Committee,
to sell shares of Stock (or a sufficient portion of the shares) acquired upon
exercise of the option and to 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; (c) with respect to options, payment through
a net exercise such that, without the payment of any funds, the Participant may
exercise the option and receive the net number of shares of Stock equal in value
to (i) the number of shares of Stock as to which the option is being
exercised, multiplied by (ii) a fraction, the numerator of which is the
Fair Market Value (on such date as is determined by the Committee) less the
Exercise Price, and the denominator of which is such Fair Market Value (the
number of net shares of Stock to be received shall be rounded down to the
nearest whole number of shares of Stock); (d) by personal, certified or
cashiers’ check; (e) by other property deemed acceptable by the Committee;
or (f) by any combination thereof.

 

Section 2.3 
Performance-Based Compensation.  Any award under the Plan which is intended to
be “performance-based compensation” within the meaning of Code Section 162(m) shall
be conditioned on the achievement of one or more objective performance
measures, to the extent required by Code Section 162(m), as may be
determined by the Committee. The grant of any award and the

 

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establishment of performance
measures that are intended to be performance-based compensation shall be made
during the period required under Code Section 162(m).

 

(a)  Performance Measures.  Such performance measures may be based on any
one or more of the following: earnings (e.g.,
earnings before interest and taxes, earnings before interest, taxes,
depreciation and amortization; or earnings per share); financial return ratios
(e.g., return on investment,
return on invested capital, return on equity or return on assets); increase in
revenue, operating or net cash flows; cash flow return on investment; total
stockholder return; market share; net operating income, operating income or net
income; debt load reduction; loan and lease losses; expense management;
economic value added; stock price; book value; overhead; assets, asset quality
level, charge offs, loan reserves, non-performing assets, loans, deposits,
growth of loans, deposits or assets; interest sensitivity gap levels,
regulatory compliance, improvement of financial rating, achievement of balance
sheet or income statement objectives and strategic business objectives,
consisting of one or more objectives based on meeting specific cost targets,
business expansion goals and goals relating to acquisitions or divestitures.
Performance measures may be based on the performance of the Company as a whole
or of any one or more Subsidiaries or business units of the Company or a
Subsidiary and may be measured relative to a peer group, an index or a business
plan.

 

(b)  Partial Achievement.  The terms of any award may provide that
partial achievement of the performance measures may result in a payment or
vesting based upon the degree of achievement. In addition, partial achievement
of performance measures shall apply toward a Participant’s individual
limitations as set forth in Section 3.3.

 

(c)  Extraordinary Items.  In establishing any performance measures, the
Committee may provide for the exclusion of the effects of the following items,
to the extent identified in the audited financial statements of the Company,
including footnotes, or in the Management’s Discussion and Analysis section of
the Company’s annual report: (i) extraordinary, unusual, and/or
nonrecurring items of gain or loss; (ii) gains or losses on the
disposition of a business; (iii) changes in tax or accounting principles,
regulations or laws; or (iv) mergers or acquisitions. To the extent not
specifically excluded, such effects shall be included in any applicable
performance measure.

 

(d)  Adjustments.  Pursuant to this Section 2.3, in certain circumstances the Committee may
adjust performance measures; provided,
however, no adjustment may be made with respect to an award that is
intended to be performance-based compensation, except to the extent the
Committee exercises such negative discretion as is permitted under applicable
law for purposes of an exception under Code Section 162(m). If the
Committee determines that a change in the business, operations, corporate
structure or capital structure of the Company or the manner in which the
Company or any Subsidiary conducts its business or other events or
circumstances render current performance measures to be unsuitable, the
Committee may modify such performance measures, in whole or in part, as the
Committee deems appropriate. If a Participant is promoted, demoted or
transferred to a different business unit during a performance period, the
Committee may determine that the selected performance measures or applicable
performance period are no longer appropriate, in which case, the Committee, in
its sole discretion, may: (i) adjust, change or eliminate the performance
measures or change the applicable performance period; or (ii) cause to be
made a cash payment to the Participant in an amount determined by the
Committee.

 

Section 2.4  Dividends and
Dividend Equivalents.  Any award under the Plan may provide the
Participant with the right to receive dividend payments or dividend equivalent
payments with respect to shares of Stock subject to the award, which payments
may be either made currently or credited to an account for the Participant, may
be settled in cash or Stock and may be subject to restrictions similar to the
underlying award.

 

Section 2.5  Deferred
Compensation.  If
any award would be considered “deferred compensation” as defined under Code
Section 409A (“Deferred Compensation”),
the Committee reserves the absolute

 

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right (including the right
to delegate such right) to unilaterally amend the Plan or the Award Agreement,
without the consent of the Participant, to avoid the application of, or to
maintain compliance with, Code Section 409A. Any amendment by the
Committee to the Plan or an Award Agreement pursuant to this Section 2.5 shall maintain, to the
extent practicable, the original intent of the applicable provision without
violating Code Section 409A. A Participant’s acceptance of any award under
the Plan constitutes acknowledgement and consent to such rights of the
Committee, without further consideration or action. Any discretionary authority
retained by the Committee pursuant to the terms of this Plan or pursuant to an
Award Agreement shall not be applicable to an award which is determined to
constitute Deferred Compensation, if such discretionary authority would
contravene Code Section 409A.

 

Section 2.6  Repricing of
Awards.  Except for
adjustments pursuant to Section 3.4
(relating to the adjustment of shares), and reductions of the Exercise Price
approved by the Company’s stockholders, the Exercise Price for any outstanding
option or SAR may not be decreased after the date of grant nor may an
outstanding option or SAR granted under the Plan be surrendered to the Company
as consideration for the grant of a replacement option or SAR with a lower
exercise price.

 

Section 2.7  Forfeiture of
Awards.  Unless
specifically provided to the contrary in an Award Agreement, upon notification
of Termination of Service for Cause, any outstanding award, whether vested or
unvested, held by a Participant shall terminate immediately, the award shall be
forfeited and the Participant shall have no further rights thereunder.

 

Article 3

SHARES SUBJECT TO PLAN

 

Section 3.1  Available
Shares.  The shares
of Stock with respect to which awards may be made under the Plan shall be
shares currently authorized but unissued, currently held or, to the extent
permitted by applicable law, subsequently acquired by the Company, including
shares purchased in the open market or in private transactions.

 

Section 3.2  Share
Limitations.

 

(a)  Share Reserve.  Subject to the following provisions of this Section 3.2, the maximum number of
shares of Stock that may be delivered to Participants and their beneficiaries
in the aggregate under the Plan shall be four million (4,000,000) shares of
Stock (all of which may be granted as ISOs to the extent that such shares are
granted under the Plan). As of the date of stockholder approval, no further
awards shall be granted pursuant to the Prior Plans. The aggregate number of
shares available for grant under this Plan (including the number that may be granted
as ISOs and as awards other than options and SARs) and the number of shares of
Stock subject to outstanding awards shall be subject to adjustment as provided
in Section 3.4.

 

(b)  Reuse of Shares.  To the extent any shares of Stock covered by
an award (including stock awards), under the Plan are forfeited or are not
delivered to a Participant or beneficiary for any reason, including because the
award is forfeited, canceled or 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 and shall again become
eligible for issuance under the Plan. Any shares of Stock that are covered
under the terms of a Prior Plan award which would otherwise become available
for reuse under the terms of a Prior Plan shall instead become available for
issuance under the Plan. With respect to SARs that are settled in Stock, only
actual shares delivered shall be counted for purposes of these limitations. If
the Exercise Price of any option granted under the Plan is satisfied by
tendering shares of Stock to the Company (whether by actual delivery or by
attestation and whether or not such surrendered shares were acquired pursuant
to any award granted under the Plan), 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 issuance under
the Plan.

 

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Section 3.3  Limitations
on Grants to Individuals.  With respect to awards, the following
limitations shall be applicable:

 

(a)  Options and SARs.  The maximum number of shares of Stock that
may be subject to options or SARs granted to any one Participant during any
calendar year and are intended to be “performance-based compensation” (as that
term is used for purposes of Code Section 162(m)) and then only to the
extent that such limitation is required by Code Section 162(m), shall be
400,000. For purposes of this Section 3.3(a),
if an option is in tandem with an SAR, such that the exercise of the option or
SAR with respect to a share of Stock cancels the tandem SAR or option right,
respectively, with respect to such share, the tandem option and SAR rights with
respect to each share of Stock shall be counted as covering but one share of
Stock for purposes of applying the limitations of this Section 3.3(a).

 

(b)  Stock Awards.  The maximum number of shares of Stock that
may be subject to stock awards described under Section 2.1(c) which are granted to any one
Participant during any calendar year and are intended to be “performance-based
compensation” (as that term is used for purposes of Code Section 162(m))
and then only to the extent that such limitation is required by Code
Section 162(m), shall be 200,000.

 

(c)  Cash Incentive Awards and Stock Awards Settled in
Cash.  The maximum
dollar amount that may be payable to a Participant pursuant to cash incentive
awards described under Section 2.1(d) or
cash-settled stock awards under Section 2.1(c) which
are granted to any one Participant during any calendar year and are intended to
be performance-based compensation (as that term is used for purposes of Code
Section 162(m)) and then only to the extent that such limitation is
required by Code Section 162(m), shall be $1,000,000.

 

(d)  Dividend, Dividend Equivalents and Earnings.  For purposes of determining whether an award
is intended to be qualified as performance-based compensation under the
foregoing limitations of this Section 3.3,
(i) the right to receive dividends and dividend equivalents with respect
to any award which is not yet vested shall be treated as a separate award, and
(ii) if the delivery of any shares or cash under an award is deferred, any
earnings, including dividends and dividend equivalents, shall be disregarded.

 

(e)  Partial Performance.  Notwithstanding the preceding provisions of
this Section 3.3, if in
respect of any performance period or restriction period, the Committee grants
to a Participant awards having an aggregate dollar value and/or number of
shares less than the maximum dollar value and/or number of shares that could be
paid or awarded to such Participant based on the degree to which the relevant
performance measures were attained, the excess of such maximum dollar value
and/or number of shares over the aggregate dollar value and/or number of shares
actually subject to awards granted to such Participant shall be carried forward
and shall increase the maximum dollar value and/or the number of shares that
may be awarded to such Participant in respect of the next performance period in
respect of which the Committee grants to such Participant an award intended to
qualify as “performance-based compensation” (as that term is used for purposes
of Code Section 162(m)), subject to adjustment pursuant to Section 3.4 hereof.

 

Section 3.4  Corporate
Transactions.  To
the extent permitted under Section 409A, to the extent applicable, in the
event of a corporate transaction involving the Company or the shares of Stock
of the Company (including any stock dividend, stock split, extraordinary cash
dividend, recapitalization, reorganization, merger, consolidation, split-up,
spin-off, combination or exchange of shares), all outstanding awards under the
Plan and the Prior Plans, the number of shares reserved for issuance under the
Plan and the Prior Plans under Section 3.2
and each of the specified limitations set forth in Section 3.3 shall automatically be adjusted to
proportionately and uniformly reflect such transaction (but only to the extent
that such adjustment will not affect the status of an award intended to qualify
as “performance-based compensation” under Code Section 162(m), if
applicable); provided, however,
that the Committee may otherwise adjust awards (or prevent such automatic
adjustment) as it deems

 

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necessary, in its sole
discretion, to preserve the benefits or potential benefits of the awards and
the Plan. Action by the Committee may include: (i) adjustment of the
number and kind of shares which may be delivered under the Plan;
(ii) adjustment of the number and kind of shares subject to outstanding
awards; (iii) adjustment of the Exercise Price of outstanding options and
SARs; and (iv) any other adjustments that the Committee determines to be
equitable (which may include, (A) replacement of awards with other awards
which the Committee determines have comparable value and which are based on
stock of a company resulting from the transaction, and (B) cancellation of
the award in return for cash payment of the current value of the award,
determined as though the award were fully vested at the time of payment,
provided that in the case of an option or SAR, the amount of such payment shall
be the excess of the value of the Stock subject to the option or SAR at the
time of the transaction over the Exercise Price; provided, that no such payment
shall be required in consideration for the cancellation of the award if the
Exercise Price is greater than the value of the Stock at the time of such
corporate transaction or event).

 

Section 3.5  Delivery of
Shares.  Delivery of
shares of Stock or other amounts under the Plan shall be subject to the
following:

 

(a)  Compliance with Applicable Laws.  Notwithstanding any other provision of the
Plan, the Company shall have no obligation to deliver any shares of Stock or
make any other distribution of benefits under the Plan unless such delivery or
distribution complies with all applicable laws (including, the requirements of
the Securities Act), and the applicable requirements of any securities exchange
or similar entity.

 

(b)  Certificates.  To the extent that the Plan provides for the
issuance of shares of Stock, the issuance may be effected on a non-certificated
basis, to the extent not prohibited by applicable law or the applicable rules of
any stock exchange.

 

Article 4

CHANGE IN CONTROL

 

Section 4.1  Consequence
of a Change in Control.  Subject to the provisions of Section 3.4 (relating to the
adjustment of shares), and except as otherwise provided in the Plan or in the
terms of any Award Agreement:

 

(a)           At the time of
a Change in Control, all options and SARs then held by the Participant shall
become fully exercisable immediately upon the Change in Control (subject to the
expiration provisions otherwise applicable to the option or SAR).

 

(b)           At the time of
a Change in Control, all stock awards described in Section 2.1(c) or cash incentive awards described in
Section 2.1(d) shall be
fully earned and vested immediately upon the Change in Control.

 

Section 4.2  Definition of
Change in Control.  For purposes of the Plan, “Change in Control”
shall mean in the case of a Participant with a then-current written Employment
or Change in Control Agreement, the definition of Change in Control set forth
in the Employment or Change in Control Agreement. For all other Participants, a
Change in Control shall be deemed to have occurred if:

 

(a)           The date of the
consummation of the acquisition by any person (as such term is defined in
Section 13(d) or 14(d) of the Securities Exchange Act of 1934,
as amended (the “1934 Act”)) of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under
the 1934 Act) of more than fifty percent (50%) of the combined voting power of
the then outstanding voting securities of the Company; or

 

(b)           The date that
the individuals who, as of the date hereof, are members of the Board cease for
any reason to constitute a majority of the Board, unless the election, or
nomination for election by the

 

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stockholders, of any new
director was approved by a vote of a majority of the Board, and such new
director shall, for purposes of this Plan, be considered as a member of the
Board; or

 

(c)           The date of the
consummation by the Company of (i) a merger or consolidation if the
stockholders, immediately before such merger or consolidation, do not, as a
result of such merger or consolidation, own, directly or indirectly, more than
fifty percent (50%) of the combined voting power of the then outstanding voting
securities of the entity resulting from such merger or consolidation, in
substantially the same proportion as their ownership of the combined voting
power of the voting securities of the Company outstanding immediately before
such merger or consolidation or (ii) a complete liquidation or dissolution
or an agreement for the sale or other disposition of all or substantially all
of the consolidated assets of the Company.

 

Notwithstanding the
foregoing, a Change in Control shall not be deemed to occur solely because
fifty percent (50%) or more of the combined voting power of the then
outstanding securities of the Company is acquired by (i) a trustee or
other fiduciary holding securities under one or more employee benefit plans
maintained for employees of the Company of a Subsidiary or (ii) any
corporation which, immediately prior to such acquisition, is owned directly or
indirectly by the stockholders of the Company in substantially the same
proportion as their ownership of stock of the Company immediately prior to such
acquisition.

 

In
the event that any award under the Plan constitutes Deferred Compensation, and
the settlement of, or distribution of benefits under such award is to be
triggered by a Change in Control, then such settlement or distribution shall be
subject to the event constituting the Change in Control also constituting a “change
in the ownership” or “change in the effective control” of the Company, as
permitted under Code Section 409A.

 

Article 5

COMMITTEE

 

Section 5.1 
Administration.  The authority to control and manage the
operation and administration of the Plan shall be vested in the Committee in
accordance with this Article 5.
The Committee shall be selected by the Board, provided that the Committee shall
consist of two (2) or more members of the Board, each of whom are both a “non-employee
director” (within the meaning of Rule 16b-3 promulgated under the Exchange
Act) and an “outside director” (within the meaning of Code
Section 162(m)). Subject to applicable stock exchange rules, if the
Committee does not exist, or for any other reason determined by the Board, the
Board may take any action under the Plan that would otherwise be the
responsibility of the Committee.

 

Section 5.2  Powers of Committee.  The Committee’s administration of the Plan
shall be 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 Company’s and any Subsidiary’s employees, Directors and
service providers 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, (subject to the
restrictions imposed by Article 6)
to cancel or suspend awards and to reduce or eliminate any restrictions or
vesting requirements applicable to an award at any time after the grant of the
award.

 

(b)           Notwithstanding
anything in the Plan to the contrary, in the event that the Committee
determines that it is advisable to grant awards which shall not qualify for the
exception for performance-based compensation from the tax deductibility
limitations of Section 162(m) of the Code, the Committee may make
such grants or awards, or may amend the Plan to provide for such grants or
awards, without satisfying the requirements of Section 162(m) of the
Code.

 

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(c)           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, and to
make all other determinations that may be necessary or advisable for the
administration of the Plan.

 

(d)           The Committee
will have the authority to define terms not otherwise defined herein.

 

(e)           Any
interpretation of the Plan by the Committee and any decision made by it under
the Plan is final and binding on all persons.

 

(f)            In controlling
and managing the operation and administration of the Plan, the Committee shall
take action in a manner that conforms to the articles and bylaws of the Company
and applicable state corporate law.

 

Section 5.3  Delegation by
Committee. 
Except to the extent prohibited by applicable law, the applicable rules of
a stock exchange or the Plan, or as necessary to comply with the exemptive
provisions of Rule 16b-3 promulgated under the Exchange Act, 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, including:
(a) delegating to a committee of one or more members of the Board who are
not “outside directors” within the meaning of Code Section 162(m), the
authority to grant awards under the Plan to eligible persons who are either:
(i) not then “covered employees,” within the meaning of Code
Section 162(m) and are not expected to be “covered employees” at the
time of recognition of income resulting from such award; or (ii) not
persons with respect to whom the Company wishes to comply with Code
Section 162(m); and/or (b) delegating to a committee of one or more
members of the Board who are not “non-employee directors,” within the meaning
of Rule 16b-3, the authority to grant awards under the Plan to eligible
persons who are not then subject to Section 16 of the Exchange Act. The
acts of such delegates shall be treated hereunder as acts of the Committee and
such delegates shall report regularly to the Committee regarding the delegated
duties and responsibilities and any awards so granted. Any such allocation or
delegation may be revoked by the Committee at any time.

 

Section 5.4  Information
to be Furnished to Committee.  As may be permitted by applicable law, the
Company and any Subsidiary shall furnish the Committee with such data and
information as it determines may be required for it to discharge its duties.
The records of the Company and any Subsidiary as to an employee’s or
Participant’s employment, termination of employment, leave of absence,
reemployment and compensation shall be conclusive on all persons unless
determined by the Committee to be manifestly incorrect. Subject to applicable
law, 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.

 

Section 5.5  Expenses and
Liabilities.  All
expenses and liabilities incurred by the Committee in the administration and
interpretation of the Plan or any Award Agreement shall be borne by the
Company. The Committee may employ attorneys, consultants, accountants or other
persons in connection with the administration and interpretation of the Plan.
The Company, and its officers and Directors, shall be entitled to rely upon the
advice, opinions or valuations of any such persons.

 

Article 6

AMENDMENT AND TERMINATION

 

Section 6.1  General.  The Board may, as permitted by law, at any
time, amend or terminate the Plan, and may amend any Award Agreement, provided
that no amendment or termination (except as provided in Section 2.5, Section 3.4 and Section 6.2) may, in the absence of
written consent to the change by the affected Participant (or, if the
Participant is not then living, the affected beneficiary), impair the rights of
any Participant or beneficiary under any award granted which was granted under
the Plan prior to the date such amendment is adopted by the Board; provided, however, that, no

 

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amendment may
(a) materially increase the benefits accruing to Participants under the
Plan, (b) materially increase the aggregate number of securities which may
be issued under the Plan, other than pursuant to Section 3.4, or (c) materially modify the
requirements for participation in the Plan, unless the amendment under (a),
(b) or (c) above is approved by the Company’s stockholders.

 

Section 6.2  Amendment to
Conform to Law.  Notwithstanding any provision in this Plan or
any Award Agreement to the contrary, the Committee may amend the Plan or an
Award Agreement, to take effect retroactively or otherwise, as deemed necessary
or advisable for the purpose of conforming the Plan or the Award Agreement to
any present or future law relating to plans of this or similar nature
(including, but not limited to, Code Section 409A). By accepting an award
under this Plan, each Participant agrees and consents to any amendment made
pursuant to this Section 6.2
or Section 2.5 to any award
granted under this Plan without further consideration or action.

 

Article 7

GENERAL TERMS

 

Section 7.1  No Implied
Rights.

 

(a)  No Rights to Specific Assets.  Neither a Participant nor any other person
shall by reason of participation in the Plan acquire any right in or title to
any assets, funds or property of the Company or any Subsidiary whatsoever,
including any specific funds, assets, or other property which the Company or
any Subsidiary, in its 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 or distributable under the Plan,
unsecured by any assets of the Company or any Subsidiary, and nothing contained
in the Plan shall constitute a guarantee that the assets of the Company or any
Subsidiary shall be sufficient to pay any benefits to any person.

 

(b)  No Contractual Right to Employment or Future Awards.  The Plan does not constitute a contract of
employment, and selection as a Participant will not give any participating
employee the right to be retained in the employ of the Company or any
Subsidiary or any right or claim to any benefit under the Plan, unless such
right or claim has specifically accrued under the terms of the Plan. No
individual shall have the right to be selected to receive an award under this
Plan, or, having been so selected, to receive a future award under this Plan.

 

(c)  No Rights as a Stockholder.  Except as otherwise provided in the Plan, no
award under the Plan shall confer upon the holder thereof any rights as a
stockholder of the Company prior to the date on which the individual fulfills
all conditions for receipt of such rights.

 

Section 7.2 
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 or pursuant
to a qualified domestic relations order, as defined in the Code or Title I of
the Employee Retirement Income Security Act of 1974, as amended. The Committee
shall have the discretion to permit the transfer of awards under the plan; provided, however, that such transfers
shall be limited to immediate family members of participants, trusts and
partnerships established for the primary benefit of such family members or to
charitable organizations, and; provided,
further, that such transfers are not made for consideration to the
Participant.

 

Section 7.3  Designation
of Beneficiaries.  A Participant hereunder may file with the
Company a written designation of a beneficiary or beneficiaries under this Plan
and may from time to time revoke or amend any such designation (“Beneficiary Designation”). Any designation
of beneficiary under this Plan shall be controlling over any other disposition,
testamentary or otherwise; provided,
however, that if the Committee is in doubt as to the entitlement of
any such beneficiary to any award, the Committee may determine to recognize
only the legal representative of the Participant in which case the Company, the
Committee and the members thereof shall not be under any further liability to
anyone.

 

9

 

Section 7.4 
Non-Exclusivity.  Neither the adoption of this Plan by the
Board nor the submission of the Plan to the stockholders of the Company for
approval shall be construed as creating any limitations on the power of the
Board or the Committee to adopt such other incentive arrangements as either may
deem desirable, including, without limitation, the granting of restricted
stock, stock options or other equity awards otherwise than under the Plan or an
arrangement that is or is not intended to qualify under Code
Section 162(m), and such arrangements may be either generally applicable
or applicable only in specific cases.

 

Section 7.5  Award
Agreement.  Each
award granted under the Plan shall be evidenced by an Award Agreement. A copy
of the Award Agreement, in any medium chosen by the Committee, shall be provided
(or made available electronically) to the Participant, and the Committee may
but need not require that the Participant sign a copy of the Award Agreement.

 

Section 7.6  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 filed with the Company 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.

 

Section 7.7  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.

 

Section 7.8  Tax
Withholding.  All
distributions under the Plan are subject to withholding of all applicable taxes
and the Committee may condition the delivery of any shares or other benefits
under the Plan on satisfaction of the applicable withholding obligations.
Except as otherwise provided by the Committee, such withholding obligations may
be satisfied: (a) through cash payment by the Participant; (b) through
the surrender of shares of Stock which the Participant already owns; or
(c) through the surrender of shares of Stock to which the Participant is
otherwise entitled under the Plan; provided,
however, that except as otherwise specifically provided by the Committee,
such shares under clause (c) may not be used to satisfy more than the
Company’s minimum statutory withholding obligation.

 

Section 7.9  Action by
Company or Subsidiary.  Any action required or permitted to be taken
by the Company or any Subsidiary 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 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 or such
Subsidiary.

 

Section 7.10  Successors.  All obligations of the Company under this
Plan shall be binding upon and inure to the benefit of any successor to the
Company, whether the existence of such successor is the result of a direct or
indirect purchase, merger, consolidation or otherwise, of all or substantially
all of the business, stock, and/or assets of the Company.

 

Section 7.11 
Indemnification.  To the fullest extent permitted by law, each
person who is or shall have been a member of the Committee, or of the Board, or
an officer of the Company to whom authority was delegated in accordance with Section 5.3, or an employee of the
Company shall be indemnified and held harmless by the Company against and from
any loss (including amounts paid in settlement), cost, liability or expense
(including reasonable attorneys’ fees) that may be imposed upon or reasonably
incurred by him or her in connection with or resulting from any claim, action,
suit, or proceeding to which he or she may be a party or in which he or she may
be involved by reason of any action taken or failure to act under the Plan and
against and from any and all amounts paid by him or her in settlement thereof,
with the Company’s approval, or paid by him or her in satisfaction of any
judgment in any such action, suit, or proceeding against him or her, provided
he or she shall give the Company an opportunity, at its own expense, to handle
and defend the same before he or she

 

10

 

undertakes to handle and
defend it on his or her own behalf, unless such loss, cost, liability, or
expense is a result of his or her own willful misconduct or except as expressly
provided by statute. The foregoing right of indemnification shall not be
exclusive of any other rights of indemnification to which such persons may be
entitled under the Company’s charter or bylaws, as a matter of law, or
otherwise, or any power that the Company may have to indemnify them or hold
them harmless.

 

Section 7.12  No Fractional
Shares.  Unless
otherwise permitted by the Committee, no fractional shares of Stock shall be
issued or delivered pursuant to the Plan or any award. The Committee shall
determine whether cash, Stock or other property shall be issued or paid in lieu
of fractional shares or whether such fractional shares or any rights thereto
shall be forfeited or otherwise eliminated.

 

Section 7.13  Governing
Law.  The Plan,
all awards granted hereunder, and all actions taken in connection herewith
shall be governed by and construed in accordance with the laws of the State of
Illinois without reference to principles of conflict of laws, except as
superseded by applicable federal law.

 

Section 7.14  Benefits
Under Other Plans.  Except as otherwise provided by the
Committee, awards to a Participant (including the grant and the receipt of
benefits) under the Plan shall be disregarded for purposes of determining the
Participant’s benefits under, or contributions to, any Qualified Retirement
Plan, non-qualified plan and any other benefit plans maintained by the
Participant’s employer. The term “Qualified
Retirement Plan” means any plan of the Company or a Subsidiary that
is intended to be qualified under Code Section 401(a).

 

Section 7.15  Validity.  If any provision of this Plan is determined
to be illegal or invalid for any reason, said illegality or invalidity shall
not affect the remaining parts hereof, but this Plan shall be construed and
enforced as if such illegal or invalid provision had never been included
herein.

 

Section 7.16  Notice.  Unless otherwise provided in an Award
Agreement, all written notices and all other written communications to the
Company provided for in the Plan, or any Award Agreement, shall be delivered
personally or sent by registered or certified mail, return receipt requested,
postage prepaid (provided that international mail shall be sent via overnight
or two-day delivery), or sent by facsimile or prepaid overnight courier to the
Company at the address set forth below:

 

First
Busey Corporation

100
West University

Champaign, IL
61820

Fax:
217-365-4879

 

Such
notices, demands, claims and other communications shall be deemed given:

 

(a)           in the case of
delivery by overnight service with guaranteed next day delivery, the next day
or the day designated for delivery;

 

(b)           in the case of
certified or registered U.S. mail, five (5) days after deposit in the U.S.
mail; or

 

(c)           in the case of
facsimile, the date upon which the transmitting party received confirmation of
receipt by facsimile, telephone or otherwise;

 

provided,
however, that in no event shall any such communications be deemed to be given
later than the date they are actually received, provided they are actually
received. In the event a communication is not received, it shall only be deemed
received upon the showing of an original of the applicable receipt,
registration or confirmation from the applicable delivery service provider.
Communications that are to be delivered by the U.S. mail or by overnight
service to the Company shall be directed to the attention of the Company’s
senior human resource officer and Corporate Secretary.

 

11

 

Article 8

DEFINED TERMS; CONSTRUCTION

 

Section 8.1  In addition to the other definitions
contained herein, unless otherwise specifically provided in an Award Agreement,
the following definitions shall apply:

 

(a)           “10% Stockholder” means an individual who,
at the time of grant, owns stock possessing more than ten percent (10%) of the
total combined voting power of all classes of stock of the Company.

 

(b)           “Award Agreement” means the document (in
whatever medium prescribed by the Committee) which evidences the terms and
conditions of an award under the Plan. Such document is referred to as an
agreement regardless of whether Participant signature is required.

 

(c)           “Board” means the Board of Directors of the
Company.

 

(d)           If the
Participant is subject to an employment agreement (or other similar agreement)
with the Company or a Subsidiary that provides a definition of termination for “cause,”
then, for purposes of this Plan, the term “Cause”
shall have meaning set forth in such agreement. In the absence of such a
definition, “Cause” means (1) any act of (A) fraud or intentional
misrepresentation, or (B) embezzlement, misappropriation or conversion of
assets or opportunities of the Company or Subsidiary, or (2) willful
violation of any law, rule or regulation in connection with the
performance of a Participant’s duties (other than traffic violations or similar
offenses), or (3) with respect to any employee of the Company or
Subsidiary, commission of any act of moral turpitude or conviction of a felony,
or (4) the willful or negligent failure of the Participant to perform his
duties in any material respect.

 

(e)           “Change in Control” has the meaning ascribed
to it in Section 4.2.

 

(f)            “Code” means the Internal Revenue Code of
1986, as amended, and any rules, regulations and guidance promulgated
thereunder, as modified from time to time.

 

(g)           “Code Section 409A” means the
provisions of Section 409A of the Code and any rules, regulations and
guidance promulgated thereunder.

 

(h)           “Committee” means the Committee acting under
Article 5.

 

(i)            “Director” means a member of the board of
directors of the Company or a Subsidiary.

 

(j)            “Exchange Act” means the Securities Exchange
Act of 1934, as amended from time to time.

 

(k)           “Exercise Price” means the price established
with respect to an option or SAR pursuant to Section 2.2.

 

(l)            “Fair Market Value” shall, on any
date, mean the officially-quoted closing selling price of the shares on such
date on the principal national securities exchange on which such shares are
listed or admitted to trading (including the New York Stock Exchange, Nasdaq
Stock Market, Inc. or such other market or exchange in which such prices
are regularly quoted) or, if there have been no sales with respect to shares on
such date, or if the shares are not so listed or admitted to trading, the Fair
Market Value shall be the value established by the Board in good faith and in
accordance with Code Sections 422 and 409A.

 

(m)          “ISO” has the meaning ascribed to it in Section 2.1(a).

 

(n)           “Participant” means any individual who has
received, and currently holds, an outstanding award under the Plan.

 

(o)           “Prior Plans” means collectively the Main
Street Trust, Inc. 2000 Equity Incentive Plan and the First Busey
Corporation 2004 Stock Option Plan.

 

12

 

(p)           “Securities Act” means the Securities Act of
1933, as amended from time to time.

 

(q)           “SAR” has the meaning ascribed to it in Section 2.1(b).

 

(r)           “Stock” means the common stock of the
Company, $.001 par value per share.

 

(s)           “Subsidiary” means any corporation,
affiliate or other entity which would be a subsidiary corporation with respect
to the Company as defined in Code Section 424(f) and, other than with
respect to an ISO, shall also mean any partnership or joint venture in which
the Company and/or other Subsidiary owns more than fifty percent (50%) of the
capital or profits interests.

 

(t)            “Termination of Service” means the
first day occurring on or after a grant date on which the Participant ceases to
be an employee of, or service provider to (which, for purposes of this
definition, includes Directors), the Company or any Subsidiary, regardless of
the reason for such cessation, subject to the following:

 

(i)            The Participant’s cessation
as an employee or service provider shall not be deemed to occur by reason of
the transfer of the Participant between the Company and a Subsidiary or between
two Subsidiaries.

 

(ii)           The Participant’s cessation
as an employee or service provider shall not be deemed to occur by reason of
the Participant’s being on a leave of absence from the Company or a Subsidiary
approved by the Company or Subsidiary otherwise receiving the Participant’s
services.

 

(iii)          If, as a result of a sale or
other transaction, the Subsidiary for whom Participant is employed (or to whom
the Participant is providing services) ceases to be a Subsidiary, and the
Participant is not, following the transaction, an Employee of or service
provider to the Company or an entity that is then a Subsidiary, then the
occurrence of such transaction shall be treated as the Participant’s
Termination of Service caused by the Participant being discharged by the entity
for whom the Participant is employed or to whom the Participant is providing
services.

 

(iv)          A service provider whose
services to the Company or a Subsidiary are governed by a written agreement with
the service provider will cease to be a service provider at the time the term
of such written agreement ends (without renewal); and a service provider whose
services to the Company or a Subsidiary are not governed by a written agreement
with the service provider will cease to be a service provider on the date that
is ninety (90) days after the date the service provider last provides
services requested by the Company or any Subsidiary (as determined by the
Committee).

 

(v)           Unless otherwise provided by
the Committee, an employee who ceases to be an employee, but becomes or remains
a Director, or a Director who ceases to be a Director, but becomes or remains
an employee, shall not be deemed to have incurred a Termination of Service.

 

(vi)          Notwithstanding the
forgoing, in the event that any award under the Plan constitutes Deferred
Compensation, the term Termination of Service shall be interpreted by the
Committee in a manner not to be inconsistent with the definition of “Separation
from Service” as defined under Code Section 409A.

 

(u)           “Voting Securities” means any securities
which ordinarily possess the power to vote in the election of Directors without
the happening of any pre-condition or contingency.

 

Section 8.2  In this Plan, unless otherwise stated or the
context otherwise requires, the following uses apply:

 

(a)           actions
permitted under this Plan may be taken at any time and from time to time in the
actor’s reasonable discretion;

 

13

 

(b)           references to a
statute shall refer to the statute and any successor statute, and to all
regulations promulgated under or implementing the statute or its successor, as
in effect at the relevant time;

 

(c)           in computing
periods from a specified date to a later specified date, the words “from” and “commencing
on” (and the like) mean “from and including,” and the words “to,” “until” and “ending
on” (and the like) mean “to, but excluding”;

 

(d)           references to a
governmental or quasi-governmental agency, authority or instrumentality shall
also refer to a regulatory body that succeeds to the functions of the agency,
authority or instrumentality;

 

(e)           indications of
time of day shall be based upon the time applicable to the location of the
principal headquarters of the Company;

 

(f)            “including”
means “including, but not limited to”;

 

(g)           all references
to sections, schedules and exhibits are to sections, schedules and exhibits in
or to this Plan unless otherwise specified;

 

(h)           all words used
in this Plan will be construed to be of such gender or number as the
circumstances and context require;

 

(i)            the captions
and headings of articles, sections, schedules and exhibits appearing in or
attached to this Plan have been inserted solely for convenience of reference
and shall not be considered a part of this Plan nor shall any of them affect
the meaning or interpretation of this Plan or any of its provisions;

 

(j)            any reference
to a document or set of documents in this Plan, and the rights and obligations
of the parties under any such documents, shall mean such document or documents
as amended from time to time, and any and all modifications, extensions,
renewals, substitutions or replacements thereof; and

 

(k)           all accounting
terms not specifically defined herein shall be construed in accordance with
GAAP.

 

14Exhibit
4.2

 

FIRST BUSEY CORPORATION

 

EMPLOYEE STOCK PURCHASE PLAN

(Effective January 1, 2011)

 

Section 1.  Purpose of
the Plan

 

The
purpose of the FIRST BUSEY CORPORATION
EMPLOYEE STOCK PURCHASE PLAN (the “Plan”)
is to secure for FIRST BUSEY CORPORATION
(the “Company”) and its Related
Corporations and its stockholders the benefits of the incentive inherent in the
ownership of common stock by Employees. The Plan is intended to comply with the
provisions of Code Section 423 and shall be administered, interpreted and
construed in accordance with such provisions.

 

Section 2.  Eligibility

 

Each
eligible Employee shall be eligible to participate in the Plan beginning on the
Entry Date coincident with or next following the date on which the Employee has
been employed. The Committee shall retain the right to change the eligibility
criteria for any Plan Year, in advance of such Plan Year, provided such criteria are permissible
under Code Section 423.

 

Section 3.  Participation
and Payroll Deductions

 

(a)  Enrollment.  Each Employee may elect to participate in the
Plan for an Offering Period by completing an enrollment form prescribed by the
Committee and returning it to the Company on or before the date specified by
the Committee, which date shall precede the Employee’s Entry Date. Each
Employee shall be advised before the beginning of each Offering Period of the
method of determining the purchase price under Section 4.

 

(b)  Amount of Deduction.  The enrollment form may specify a payroll
deduction amount based on a percentage of Compensation, which shall be withheld
from the Participant’s regular paychecks, which may include bonus paychecks,
for an Offering Period. The Committee, in its sole discretion, may establish
limitations, by number of shares or by dollar amount, on the maximum level of
participation for any Offering Period. The Committee in its sole discretion may
authorize payment in respect of any Option exercised hereunder by personal
check. Unless otherwise specified by the Committee in advance of an Offering
Period, the maximum number of Shares which may be purchased by any Participant
during any Offering Period shall be 6,000.

 

(c)  Payroll Deduction Accounts.  Each Participant’s payroll deduction shall be
credited, as soon as practicable following the relevant pay date within an
applicable Offering Period, to a Payroll Deduction Account, pending the
purchase of Shares in accordance with the provisions of the Plan. All such
amounts shall be assets of the Company and may be used by the Company for any
corporate purpose. No interest shall accrue or be paid on amounts credited to a
Payroll Deduction Account.

 

(d)  Subsequent Offering Periods.  Unless otherwise specified prior to the
beginning of any Plan Year on an enrollment form prescribed by the Committee, a
Participant shall be deemed to have elected to participate in each Offering
Period within a Plan Year and for each subsequent Plan Year (and subsequent
Offering Periods) for which the Participant is eligible to the same extent and
in the same manner as at the end of the prior Offering Period based on the
election form on file with the Company for such prior Offering Period.

 

(e)  Change in Participation.

 

(i)    A Participant may cease
participation in an Offering Period under the Plan by completing and filing the
form prescribed by the Committee with the Company at least fifteen
(15) days prior to the end of such Offering Period. Such cessation will
become effective as soon as practicable

 

1

 

following
receipt of such form by the Company, whereupon no further payroll deductions
will be made and the Company shall pay to such Participant an amount equal to
the balance in the Participant’s Payroll Deduction Account as soon as
practicable thereafter without interest. To the extent then eligible, any
Participant who ceased to participate may elect to participate again prior to
any subsequent Entry Date.

 

(ii)   Unless otherwise provided by
the Committee, at any time during an Offering Period (but not more than once in
any calendar quarter) a Participant may increase or decrease the percentage of
Compensation subject to payroll deduction within the limits provided in Section 3(b) above and Section 4(b) below, by filing the
form prescribed by the Committee with the Company. Such increase or decrease
shall become effective with the first pay period following receipt of such form
to which it may be practicably applied.

 

(iii)  Notwithstanding
anything contained herein to the contrary, if the Committee determines under Section 4 to change the Purchase
Price, each Participant shall be advised in advance of the effective date of
such change and afforded the opportunity to make a change in participation
under Section 3(e)(i) or
Section 3(e)(ii) before
such change in the Purchase Price takes effect.

 

Section 4.  Offerings and
Purchase Price

 

(a)  Maximum Number of Shares.  The Committee will implement the Plan by
making offerings of Shares on each Grant Date until the maximum number of
Shares available under the Plan have been issued pursuant to the exercise of
Options.

 

(b)  Exercise of Options.  Subject to Section 4(d),
on each Investment Date, each Participant shall be deemed, subject to Section 4(e), without any further
action, to have exercised rights under the Plan to purchase the number of
Shares determined by dividing the current balance of the Participant’s Payroll
Deduction Account through such date by the Purchase Price (as determined in Section 4(c) below).

 

(c)   In advance of
any Offering Period, the Committee shall establish the method for determining
the Purchase Price. The Committee may establish the Purchase Price using any of
the following standards:

 

(i)    the Fair Market Value on the
Grant Date;

 

(ii)   the Fair Market Value on the
Investment Date;

 

(iii)  the lower of
the Fair Market Value on the Grant Date or Investment Date; or

 

(iv)  a pre-established percentage
of any of the foregoing (but in no event less than eighty-five percent (85%) of
the Fair Market Value).

 

As
of the Effective Date, and until otherwise modified by the Committee,
consistent with this paragraph (c), the Purchase Price shall be based upon
ninety five percent (95%) of the Fair Market Value on the Investment Date.

 

(d)  Oversubscription of Shares.  If the total number of Shares for which
Options are exercised on any Investment Date exceeds the maximum number of
Shares available under the Plan, the Company shall make a proportionate
allocation among the Participants of the Shares available for delivery and
distribution in as nearly a uniform manner as shall be practicable.

 

(e)  Limitations on Grant and Exercise of Options.

 

(i)    No Option granted under this
Plan shall permit a Participant to purchase Shares under all employee stock
purchase plans (as defined under Code Section 423(b)) of the Company at a
rate which, in the aggregate, exceeds $25,000 of the Fair Market Value of such
Shares (determined at

 

2

 

the
time the Option is granted) for each calendar year in which the Option is
outstanding at any time.

 

(ii)   No Employee who would own
immediately after the Option is granted Shares possessing five percent (5%) or
more of the total combined voting power or value of all classes of Shares of
the Company (a “5% Owner”) shall
be granted an Option. For purposes of determining whether an Employee is a 5%
Owner, the rules of Code Section 424(d) shall apply in
determining the Share ownership of an individual and Shares which the Employee
may purchase under outstanding Options shall be treated as Shares owned by the
Employee.

 

(iii)  To comply with
the foregoing limitation, the Company unilaterally may decrease a Participant’s
payroll deduction at any time during an Offering Period.

 

Section 5.  Distributions
of Shares

 

(a)  Distributions of Shares.  As soon as practicable following an
Investment Date, Shares deemed purchased pursuant to Section 4(b) shall be distributed to the Participant
in a manner determined by the Committee.

 

(b)  Termination of Employment.  If a Participant ceases for any reason during
an Offering Period to be an Employee, the balance of the Participant’s Payroll
Deduction Account shall be refunded as soon as practicable to the Participant
or, in the event of the Participant’s death, to the Participant’s estate
without interest. Notwithstanding the foregoing, if the Participant’s
termination is due to Retirement occurring in the last three (3) months of
an Offering Period, the Participant’s Payroll Deductions shall remain in the
Plan (subject to withdrawal rights under Section 3(e)(i))
and used to purchase Shares as if still employed on the Investment Date.

 

Section 6.  Rights as a
Stockholder

 

When
a Participant purchases Shares pursuant to the Plan, the Participant shall have
all of the rights and privileges of a stockholder of the Company with respect
to the Shares so purchased or credited, whether or not certificates
representing such Shares shall have been issued.

 

Section 7.  Options Not
Transferable

 

Options
granted under the Plan are not transferable by a Participant, except by will or
the laws of descent and distribution, and are exercisable during the
Participant’s lifetime only by the Participant.

 

Section 8.  Common Stock

 

(a)  Reserved Shares.  Subject to the provisions of Section 9 relating to adjustments upon
changes in the Company’s stock, there shall be reserved for the issuance and
purchase under the Plan an aggregate of five hundred thousand (500,000) Shares.
Shares subject to the Plan shall be Shares currently authorized but unissued,
or currently held or, to the extent permitted by applicable law, subsequently
acquired by the Company as treasury shares, including Shares purchased in the
open market or in private transactions.

 

(b)  Restrictions on Exercise.  In its sole discretion, the Board may require
as conditions to the exercise of any Option that Shares reserved for issuance
upon the exercise of an Option shall have been duly listed on any recognized
national securities exchange, and that either a registration statement under
the Securities Act of 1933, as amended, with respect to said Shares shall be
effective, or the Participant shall have represented at the time of purchase,
in form and substance satisfactory to the Company, that it is the Participant’s
intention to purchase the Shares for investment only and not for resale or distribution.

 

3

 

(c)  Restriction on Sale.  Unless otherwise provided by the Committee,
Shares purchased under the Plan shall not be transferable by a Participant for
a period of twelve (12) months immediately following the Investment Date
on which such Shares were purchased.

 

(d)  Registration of Shares.  Shares to be delivered to a Participant under
the Plan will be registered in the name of the Participant, or, if the
Participant so directs by written notice to the Treasurer of the Company prior
to the Investment Date applicable thereto, in the names of the Participant and
one such other person as may be designated by the Participant, as joint tenants
with rights of survivorship or as tenants by the entireties, to the extent
permitted by applicable law.

 

(e)  Fractional Shares.  Unless otherwise provided by the Committee,
fractional Shares will not be credited to a Participants’ account if the amount
of payroll deductions accumulated during any given Offering Period is not
equally divisible by the Purchase Price for that Offering Period.

 

Section 9.  Adjustment
Upon Changes In Capitalization

 

(a)           Subject to any
required action by the Company or its stockholders, and subject to the
provisions of applicable corporate law, if during an Offering Period the
outstanding Shares increase or decrease or change into or are exchanged for a
different number or kind of security or are otherwise affected by reason of any
recapitalization, reclassification, stock split, reverse stock split,
combination of Shares, exchange of Shares, stock dividend, or other
distribution payable in capital stock, or some other increase or decrease in
such Shares occurs without the Company’s receiving consideration therefore (any
of which being referred to as a “Capitalization
Event”), there shall automatically be made, unless otherwise
provided by the Committee, a proportionate and appropriate adjustment in the
number and kind of securities underlying Options, so that the proportionate
interest of each Participant immediately following such event will, to the
extent practicable, be the same as immediately before such event. Any such
adjustment to Options will not change the total price with respect to Option or
other securities underlying the Participant’s election, but will include a
corresponding proportionate adjustment in the price of the Share, to the extent
consistent with Code Section 424.

 

(b)           Upon the
occurrence of a Capitalization Event, there shall automatically be made, unless
otherwise determined by the Committee, a commensurate change to the maximum
number and kind of Shares provided in Section 8.

 

(c)           Except as
expressly provided by this Section 9,
no issuance by the Company of any of its securities of any kind, including
securities convertible into shares of any class of stock, will affect, and no
adjustment by reason thereof will be made with respect to, the number of Shares
subject to any Options or the price to be paid for stock under the terms of the
Plan. The grant of an Option under the Plan will not affect in any way the
right or power of the Company to make adjustments, reclassifications,
reorganizations or changes of its capital or business structure, or to merge or
to consolidate, or to dissolve, liquidate, sell, or transfer all or any part of
its business or assets.

 

(d)           Upon a sale of
all or substantially all of the assets of the Company, or the consolidation or
merger of the Company with or into another corporation, subject to the Board’s
right under Section 11 to
terminate the Plan, each outstanding Option shall be assumed or an equivalent
Option substituted by the successor corporation or a parent or Related
Corporation of the successor or purchasing corporation. If the successor or
purchasing corporation refuses to assume or substitute options for the Options
under the Plan, the Offering Period then in progress shall be shortened by
setting a new Investment Date (the “New
Investment Date”). The New Investment Date shall be any date
occurring before the effective date of the Company’s proposed sale or merger.
The Board shall notify each Participant in writing, at least ten
(10) business days prior to the New Investment Date, that the Investment
Date for the Participant’s Option has been changed to the New Investment Date
and that the Participant’s Option shall be exercised automatically on the New
Investment Date, unless prior to such date the Participant has withdrawn from
the Offering Period as provided in Section 3
hereof.

 

4

 

Section 10. 
Administration

 

(a)  Appointment.  The Plan shall be administered by the
Committee provided that the Committee shall be comprised solely of at least two
(2) non-employee, disinterested directors appointed by the Board. A
disinterested director is any member of the Board who is a “Non-Employee
Director” within the meaning of paragraph (b)(3)(i) of Securities and
Exchange Commission Rule 16b-3 (“Rule 16b-3”).

 

(b)  Authority.  The Committee has full authority and
discretion to make, administer and interpret such rules and regulations as
it deems necessary to administer the Plan (including rules and regulations
deemed necessary to comply with the requirements of Code Section 423). The
Committee will have final and binding authority to: (i) establish and/or
change the duration of any Offering Period; (ii) limit or increase the
frequency and/or number of changes in the amounts withheld during an Offering
Period; (iii) establish reasonable waiting and adjustment periods and/or
accounting and crediting procedures to ensure that amounts applied toward the
purchase of common stock for each Participant properly correspond with amounts
withheld from the Participant’s Compensation; (iv) delegate its functions
to officers or employees of the Company or other persons; (v) establish
additional terms and conditions with respect to the purchase of Shares under
the Plan; and (vi) establish such other limitations or procedures as it
determines in its sole discretion advisable and consistent with the administration
of the Plan. The Committee shall take any of the foregoing actions that are
necessary to assure the continued availability of the exemption provided in
Rule 16b-3. If and to the extent required by Rule 16b-3 or any
successor exemption under which the Committee believes it is appropriate for
the Plan to qualify, the Committee may restrict a Participant’s ability to
participate in the Plan or sell any Shares received under the Plan for such
period as the Committee deems appropriate or may impose such other conditions
in connection with participation or distributions under the Plan as the
Committee deems appropriate.

 

(c)  Duties of Committee.  The Committee shall establish and maintain
records of the Plan and of each Payroll Deduction Account established for any
Participant hereunder.

 

(d)  Plan Expenses.  The Company shall pay the fees and expenses
of accountants, counsel, agents and other personnel and all other costs of
administration of the Plan.

 

(e)  Indemnification.  The Company shall indemnify members of the
Committee and any agent of the Committee who is an employee of the Company,
against any and all liabilities or expenses to which they may be subjected by
reason of any act or failure to act with respect to their duties on behalf of
the Plan, except in circumstances involving such person’s bad faith, gross
negligence or willful misconduct.

 

Section 11.  Amendment and
Termination

 

(a)  Amendment.  Subject to the provisions of Code
Section 423, the Board may amend the Plan in any respect; provided, however, that the Plan may not
be amended in any manner that will retroactively impair or otherwise adversely
affect in any material manner the rights of any Participant to benefits under
the Plan which have accrued prior to the date of such action.

 

(b)  Adjustments Due to Financial Accounting.  If the Board determines that the ongoing
operation of the Plan may result in unfavorable financial accounting
consequences, the Board may, in its discretion and, to the extent necessary or
desirable, modify or amend the Plan to reduce or eliminate such accounting
consequence including:

 

(i)    altering the Purchase Price
for any Offering Period, including an Offering Period underway at the time of
the change in Purchase Price;

 

(ii)   shortening any Offering
Period so that the Offering Period ends on any other Investment Date, including
an Offering Period underway at the time of the Board action; and

 

5

 

(iii)  allocating
Shares.

 

Such modifications or
amendments shall not require stockholder approval or the consent of any
Participant.

 

(c)  Termination.  The Plan will terminate on the earlier of:
(i) the date on which there are no additional Shares reserved under the
Plan for issuance to Participants; or (ii) the tenth (10th) anniversary of
the Effective Date. In addition, the Plan may be terminated at any time, in the
sole discretion of the Board. In the event of Plan termination, the Company
shall refund to each Participant the amount of payroll deductions credited to
their Payroll Deduction Account as soon as practicable following the effective
date of such termination without interest.

 

Section 12.  Effective
Date

 

The
Plan was adopted by the Board with an Effective Date of January 1, 2011,
subject to approval by the holders of the majority of Shares present and
represented at an annual or special meeting of the stockholders held within
twelve (12) months of the date the Plan is adopted. The Plan shall not become
effective unless so approved.

 

Section 13.  Governmental
and Other Regulations

 

The
Plan and the grant and exercise of Options to purchase Shares hereunder, and
the Company’s obligations to sell and deliver Shares upon the exercise of
Options to purchase Shares, shall be subject to all applicable federal, state
and foreign laws, rules and regulations, and to such approvals by any
regulatory or governmental agency as, in the opinion of counsel to the Company,
may be required.

 

Section 14.  No Implied
Rights

 

(a)  No Rights to Specific Assets.  Neither a Participant nor any other person
shall by reason of participation in the Plan acquire any right in or title to
any assets, funds or property of the Company or any Related Corporation,
including any specific funds, assets, or other property which the Company or
any Related Corporation, in its 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 or distributable under the Plan,
unsecured by any assets of the Company or any Related Corporation, and nothing
contained in the Plan shall constitute a guarantee that the assets of the
Company or any Related Corporation shall be sufficient to pay any benefits to
any Participant.

 

(b)  No Contractual Right to Employment or Future Awards.  The Plan does not constitute a contract of
employment, and selection as a Participant will not give any participating
Employee the right to be retained in the employ of the Company or any Related
Corporation or 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 Option under the Plan shall confer upon the
holder thereof any rights as a stockholder of the Company prior to the date on
which the individual fulfills all conditions for receipt of such rights.

 

Section 15.  Withholding

 

As
a condition to receiving Shares under the Plan, the Company may require the
Participant to make a cash payment to the Company of, or the Company may
withhold from any Shares distributable under the Plan, an amount necessary to
satisfy all federal, state, local or other taxes as may be required to be
withheld in respect of such payments pursuant to any law or governmental
regulation or ruling.

 

Section 16.  Offsets

 

To
the extent permitted by law, the Company shall have the absolute right to
withhold any amounts payable to any Participant under the terms of the Plan to
the extent of any amount owed for any reason by such Participant to the Company
and to set off and apply the amounts so withheld to

 

6

 

payment of any such amounts
owed to the Company, whether or not such amounts shall then be immediately due
and payable and in such order or priority as among such amounts owed as the
Committee, in its sole discretion, shall determine.

 

Section 17.  Notices, Etc.

 

All
elections, designations, requests, notices, instructions and other
communications from a Participant to the Committee or the Company required or
permitted under the Plan shall be in such form as is prescribed from time to
time by the Committee, shall be mailed by first-class mail or delivered to such
location as shall be specified by the Committee, and shall be deemed to have
been given and delivered only upon actual receipt thereof at such location.

 

Section 18.  Effect of
Plan

 

The
provisions of the Plan shall be binding upon, and inure to the benefit of, all
successors of the Company and each Participant, including such Participant’s
estate and the executors, administrators or trustees thereof, heirs and
legatees, and any receiver, trustee in bankruptcy or representative of
creditors of such Participant.

 

Section 19.  Governing Law

 

The
Plan, all awards granted hereunder and all actions taken in connection herewith
shall be governed by and construed in accordance with the laws of the State of
Illinois without reference to principles of conflict of laws, except as
superseded by applicable federal law.

 

Section 20.  Defined Terms

 

When
used herein, the following terms shall have the following meanings:

 

(a)           “Board” shall mean the Board of Directors of
the Company.

 

(b)           “Code” shall mean the Internal Revenue Code
of 1986, and any amendments thereto.

 

(c)           “Committee” shall mean the committee acting
under Section 10.

 

(d)           “Compensation” unless otherwise provided by
the Committee, shall mean “compensation” as defined under the First Busey
Corporation Profit Sharing Plan and Trust for purposes of non-discretionary
employer contributions.

 

(e)           “Effective Date” shall mean January 1,
2011.

 

(f)            “Employee” shall mean an employee of an
Employer.

 

(g)           “Employer” shall mean the Company or any
Related Corporation, unless otherwise determined by the Company.

 

(h)           “Entry Date” shall mean the first day of
each Plan Year.

 

(i)            “Fair Market Value” shall, on any
date, mean the officially-quoted closing selling price of the shares on such
date on the principal national securities exchange on which such shares are
listed or admitted to trading (including the New York Stock Exchange, Nasdaq
Stock Market, Inc. or such other market or exchange in which such prices
are regularly quoted) or, if there have been no sales with respect to shares on
such date, or if the shares are not so listed or admitted to trading, the Fair
Market Value shall be the value established by the Board in good faith and in
accordance with Code Sections 422 and 409A.

 

(j)            “Grant Date” shall mean the first day of
each Offering Period, or such other date as may be determined by the Committee
in its sole discretion.

 

7

 

(k)           “Investment Date” shall mean the last day of
each Offering Period, or such other date as may be determined by the Committee
in its sole discretion.

 

(l)            “Offering Period” shall mean the period of
twelve (12) months starting on January 1 of each year and ending on
December 31 of each year or any other shorter period(s) within a Plan
Year as may be determined by the Committee in its sole discretion from time to
time.

 

(m)          “Participant” shall mean an Employee who has
met the requirements of Section 2
and has properly elected to participate in the Plan pursuant to Section 3.

 

(n)           “Payroll Deduction Account” shall mean the
bookkeeping account established by the Company pursuant to Section 3 for each Participant.

 

(o)           “Option” shall mean the right of a
Participant to acquire Shares pursuant to the terms of the Plan.

 

(p)           “Plan Year” shall mean January 1
through December 31 of each year.

 

(q)           “Purchase Price” shall mean the price per
Share as determined pursuant to Section 4(c).

 

(r)           “Related Corporation” shall mean a
corporation which would be a parent or subsidiary corporation with respect to
the Company as defined in Code Section 424(e) or (f).

 

(s)           “Retirement” shall mean the Participant’s termination
on or after the date the Participant reaches the age of fifty nine and one half
(591/2), as approved by the Committee.

 

(t)            “Share” shall mean a share of the Company’s
common stock, par value $.001 per share.

 

Section 21.  Construction

 

In
this Plan, unless otherwise stated or the context otherwise requires, the
following uses apply:

 

(a)           actions
permitted under this Plan may be taken at any time and from time to time in the
actor’s reasonable discretion;

 

(b)           references to a
statute shall refer to the statute and any successor statute, and to all
regulations promulgated under or implementing the statute or its successor, as
in effect at the relevant time;

 

(c)           in computing
periods from a specified date to a later specified date, the words “from” and “commencing
on” (and the like) mean “from and including,” and the words “to,” “until” and “ending
on” (and the like) mean “to, but excluding”;

 

(d)           references to a
governmental or quasi-governmental agency, authority or instrumentality shall
also refer to a regulatory body that succeeds to the functions of the agency,
authority or instrumentality;

 

(e)           indications of
time of day mean Central Standard Time;

 

(f)            “including”
means “including, but not limited to”;

 

(g)           all references
to sections, schedules and exhibits are to sections, schedules and exhibits in
or to this Plan unless otherwise specified;

 

(h)           all words used
in this Plan will be construed to be of such gender or number as the
circumstances and context require;

 

(i)            the captions
and headings of articles, sections, schedules and exhibits appearing in or
attached to this Plan have been inserted solely for convenience of reference
and shall not be considered a part of this Plan nor shall any of them affect
the meaning or interpretation of this Plan or any of its provisions;

 

8

 

(j)            any reference
to a document or set of documents in this Plan, and the rights and obligations
of the parties under any such documents, shall mean such document or documents as
amended from time to time, and any and all modifications, extensions, renewals,
substitutions or replacements thereof; and

 

(k)           all accounting
terms not specifically defined herein shall be construed in accordance with
generally accepted accounting principles as consistently applied in the United
States of America.

 

9

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