Document:

Form of 2004 Performance Shares Award.

 Exhibit 10.5 
  
 PERFORMANCE SHARES AWARD AGREEMENT 
  
 This instrument is issued as of the      day of
                , 2004, by ONEOK, Inc., an Oklahoma corporation, (hereinafter referred to as “Corporation”), to
                                       
  (hereinafter referred to as “Grantee”),
                                         a
key employee of the Corporation or a division or subsidiary thereof, pursuant to the terms of the Corporation’s Long-Term Incentive Plan, as amended (hereinafter referred to as the “Plan”); 
  
 1. Performance Shares Award. This instrument and that certain Notice
of Performance Shares Award and Agreement, dated                     , 2004, a copy of which is attached hereto and incorporated herein by
reference (the “Notice of Performance Shares Award and Agreement”), constitute evidence of the issuance and grant of a Performance Shares Award (hereinafter referred to as “Award”) of
                     Performance Share Units to the Grantee by the Corporation that shall entitle the Grantee to receive shares of the
Corporation’s Common Stock (hereinafter also referred to as “Common Stock”), all pursuant and subject to the terms, provisions, and conditions of this instrument (including, without limitation, the conditions, restrictions and
limitations stated in paragraph 5, below) and the terms and provisions of the Plan, which are incorporated herein by reference. This instrument, when executed by the Grantee, together with the Notice of Performance Shares Award and Agreement
constitute one agreement between the Corporation and the Grantee. Notwithstanding the foregoing, should there be any inconsistency between the provisions of this instrument and the terms and provisions of the Award stated in the resolutions and
records of the Board of Directors of the Corporation providing for the Award or provisions of the Plan, the provisions of such resolutions and records and of the Plan shall control. The grant of such Performance Share Units to the Grantee shall be
effective in the manner and to the extent provided in this instrument and the Plan as to all or any part of the shares of stock subject to the grant from time to time during the period stated herein. 
  
 2. Plan. The Award is made to the Grantee pursuant to the terms and
provisions of the Plan, as amended, and approved by the Shareholders of the Corporation, which Plan provides that a specific aggregate number of shares of Common Stock of the Corporation may be issued or transferred pursuant to stock incentives
under the Plan. The Plan specifies the authority of the Corporation, its Board of Directors, and a committee of the Board of Directors to select key employees to be granted stock incentives under the Plan. The Executive Compensation Committee of the
Board of Directors (hereinafter referred to as the “Committee”) is authorized to administer the Plan with respect to this instrument and the grant of the Award made to the Grantee pursuant to the Plan. Except where expressly stated or
clearly indicated otherwise by the terms of this instrument, all terms, words and phrases used herein shall have the same meaning and effect as stated in the Plan. The Grantee has been provided a complete copy of the Plan with this instrument.

  
 3. Grantee’s Agreement Concerning Award and
Employment. In consideration of the Corporation’s granting of the Award of Performance Share Units and entitlement to Performance Shares, as incentive compensation to Grantee pursuant to this instrument, the Grantee, by acceptance thereof,
and signing this instrument evidencing its terms, agrees to such 
  

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 terms and to continue to contribute and perform service in the employ of the Corporation or a division or subsidiary
thereof at the direction, will and pleasure of the Corporation and the Board of Directors. Provided, however, neither the foregoing agreement of the Grantee in this paragraph 3, nor any other provision in this instrument shall confer on the Grantee
any right to continue in the employ of the Corporation (or a division or subsidiary thereof), or interfere in any way with the right of the Corporation (or such division or subsidiary) to terminate the Grantee’s employment at any time.

  
 4. Registration of Stock; Grantee’s Representation
With Respect To Purchase for Investment. It is intended by the Corporation that the Plan and the shares of Common Stock covered by the Award issued and granted to the Grantee referred to in paragraph 1, are to be registered under the Securities
Act of 1933, as amended, prior to the date of the grant; provided, that in the event such registration is for any reason not made effective for such shares, the Grantee agrees, for the Grantee, and for the Grantee’s permissible assignees, heirs
and legal representatives by inheritance or bequest, that all shares acquired pursuant to the grant will be acquired for investment and not with a view to, or for sale or tender in connection with the distribution of any part thereof, including any
transfer or distribution of such shares by the Grantee pursuant to the grant and this instrument or as otherwise allowed by the Plan. 
  
 5. Terms and Conditions of Award; Transfer of Stock to Grantee. The issue and grant of the Award of Performance Share Units to the Grantee stated
in paragraph 1, above, shall be subject to the following terms and conditions: 
  
 (a) The right to ownership and transfer of the Performance Share Units granted to the Grantee shall be subject to the Award during the period beginning
                    , 2004, the date of the grant thereof (hereinafter referred to as “Grant Date”) and ending on
                    , 2007, (which period is hereinafter referred to as “Performance Period”), as herein provided. 
  
 (b) The Grantee shall earn and become entitled to receive a percentage of the
number of Performance Share Units granted under paragraph 1, above, at the expiration of the Performance Period as provided for in Table A and Table B, attached hereto, based upon the Corporation’s ranking for Total Stockholder Return in the
ONEOK Peer Group listed in Table C attached hereto, all as determined by the Committee, in its sole discretion. 
  
 (c) Upon expiration of the Performance Period, the Grantee shall be entitled to receive: 
  
 (1) One (1) share of Common Stock for each Performance Share Unit with respect to two-thirds (2/3) of the
Performance Share Units that become earned by and vested in the Grantee pursuant to the Award provided no fractional shares shall be issued and any fractional shall be paid to the Grantee in cash; and 
  
 (2) Cash equal to the Fair Market Value (as defined in
Section 2(k) of the Plan) of a share of Common Stock on the date of the expiration of the Performance Period for each Performance Share Unit with respect to the remaining one-third (1/3) of 
  

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 the Performance Share Units that become earned by and vested in the Grantee pursuant to the Award.

  
 (d) No dividends or any similar amounts shall be payable or
paid with respect to Performance Share Units, Common Stock earned under the Award, or the Award during or for the Performance Period. 
  
 (e) The Grantee shall have no right to receive cash or acquire shares of Common Stock of the Corporation under the Award other than the cash and Common
Stock attributable to the Performance Share Units earned by the Grantee to the extent provided for herein. 
  
 (f) The cash and Common Stock to which the Grantee becomes entitled shall be paid and transferred to the Grantee only upon the determination of the
Performance Share Units earned by the Grantee at the expiration of the Performance Period. The payment and transfer of such cash and Common Stock to the Grantee shall be made as soon as reasonably practicable after the expiration of the Performance
Period, as determined and directed by the Committee, in its sole discretion. 
  
 (g) The Performance Share Units or any cash or Common Stock to be paid or transferred to Grantee pursuant to the Award may not be sold, assigned, transferred, pledged, encumbered or otherwise disposed of by Grantee or
any other person except as provided in the Award and the Plan until the expiration of the Performance Period. 
  
 (h) The Grantee shall become entitled to receive Performance Share Units earned, and shall become owner of the cash and shares of Common Stock paid and
transferred to the Grantee pursuant to the Award free and clear of all terms, conditions and restrictions imposed by the Award if the Grantee’s employment by the Corporation does not terminate during the Performance Period; provided, that the
Grantee shall become entitled to a prorated amount of Performance Share Units and the terms and conditions imposed by the Award shall partially cease to apply in events to the extent described in paragraph 6.(d), below. 
  
 (i) If the Grantee’s employment with the Corporation (or a division or
subsidiary thereof) terminates prior to the end of the Performance Period other than by reason of retirement, Total Disability or death, the Grantee shall forfeit all of the Grantee’s right, title or interest in the Performance Share Units; and
the Grantee shall forfeit such right, title and interest in the Performance Share Units regardless of the reason for such termination of employment. Any such termination of employment of the Grantee described in the preceding sentence shall not be
deemed to occur by reason of transfer of employment of the Grantee by or between the Corporation and any division or wholly owned subsidiary of the Corporation. Upon a forfeiture the Performance Share Units forfeited shall be cancelled for all
purposes. 
  
 (j) The Grantee shall not be entitled to vote any
shares of Common Stock of the Corporation, or otherwise have any right or interest as a Common Stock shareholder by reason of the Performance Shares Award granted under the Award during the Performance Period, and prior to the transfer of Common
Stock to the Grantee pursuant to the Award. 
  

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 6. Transferability of Performance Share Units; Termination of Employment. 
  
 (a) Except as provided in subparagraph (b) of this paragraph 6, below, the
Award, the Grantee’s rights and obligations thereunder and the Performance Share Units granted hereunder shall not be transferable by the Grantee otherwise than by will or the laws of descent and distribution which apply to the Grantee’s
estate. 
  
 (b) Notwithstanding the foregoing, the Grantee may
transfer any part or all of the Grantee’s rights in and to the Performance Share Units to members of the Grantee’s immediate family, or to one or more trusts for the benefit of such immediate family members, or partnerships in which such
immediate family members are the only partners if the Grantee does not receive any consideration for the transfer. In the event of any such transfer, Performance Share Units shall continue to be subject to the same terms and conditions otherwise
applicable hereunder and under the Plan immediately prior to its transfer, except that this stock shall not be further transferable by the transferee inter vivos, except for transfer back to the original Grantee. For any such transfer
to be effective, the Grantee must provide prior written notice thereof to the Committee, unless otherwise authorized and approved by the Committee, in its sole discretion; and the Grantee shall furnish to the Committee such information as it may
request with respect to the transferee and the terms and conditions of any such transfer. For purposes of transfer of this grant under this subparagraph (b), “immediate family” shall mean the Grantee’s spouse, children and
grandchildren. 
  
 (c) Notwithstanding anything to the contrary
expressed or implied herein (including without limitation, the restrictions stated in paragraph 5 applicable to the Performance Share Units), all rights and interest of the Grantee in the Performance Share Units shall become invalid and wholly
terminated and forfeited upon the termination of the Grantee’s employment with the Corporation (or a division or subsidiary), during the Performance Period other than a termination by reason of retirement, Total Disability or death of the
Grantee. 
  
 (d) Notwithstanding the foregoing provisions, in the
event of termination of the Grantee’s employment with the Corporation during the Performance Period by reason of (i) the retirement of the Grantee, (ii) the Total Disability of the Grantee, or (iii) the Grantee’s death while still employed
by the Corporation (or a division or subsidiary), then an adjusted and prorated entitlement to Performance Share Units shall be allowed as provided in this paragraph (d). The Grantee shall become vested in and entitled receive, in the event of any
such retirement or Total Disability, and the legatees, or personal representatives or heirs of the Grantee shall be vested in and entitled to receive, in the event of the Grantee’s death, a prorated award of Performance Share Units earned in
the Performance Period following such retirement, Total Disability or death. The award shall be a prorated amount of Performance Share Units equal to the total of Performance Share Units earned under the Award at the end of the Performance Period
for the Grantee, multiplied by a fraction of which the numerator shall be the number of full months which have elapse under the Performance Period at the time of such termination of employment by reason of retirement, Total Disability or death, and
the denominator of which shall be the total number of months in the Performance Period. The Grantee, or personal representatives or heirs of the Grantee, as the case may be, shall become entitled to receive such 
  

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 prorated award at the expiration of the Performance Period and following application of the performance criteria as
provided in the Award and determined by the Committee. 
  
 (e) The
Grantee may designate a Beneficiary to receive any rights of the Grantee which may become vested in the event of the death of the Grantee under procedures and in the form established by the Committee; and in the absence of such designation of a
Beneficiary, any such rights shall be deemed to be transferred to the estate of the Grantee. 
  
 (f) For purposes of the Award and this instrument, “Total Disability” shall mean that the Grantee is permanently and totally disabled and unable to engage in any substantial gainful activity by reason of a
medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months, and has established such disability to the
extent and in the manner and form as may be required under the provisions of Section 22(e) of the Internal Revenue Code of 1986, as amended (or corresponding section of any future federal tax code), and regulations thereunder. 
  
 7. Administration of Performance Shares Award. The grant of the Award
shall be subject to such other rules and requirements as the Committee, in its sole discretion, may determine to be appropriate with respect to administration thereof and the terms and conditions made applicable to the Grantee and the Performance
Share Units during the Performance Period. The Award, this instrument, and the rights and obligations of the parties thereto shall be subject to interpretation and construction by the Committee to the same extent and with the same effect as the
Committee actions under Section 11, and other pertinent provisions of the Plan. The Grantee shall take all actions and execute and deliver all documents as may from time to time be requested by the Committee in connection with such restrictions and
in furtherance hereof. The Grantee agrees to pay to the Corporation any applicable federal, state, or local income, employment, social security, medicare, or other withholding tax obligation arising in connection with the grant of the Award to the
Grantee; and the Corporation shall have the right, without the Grantee’s prior approval or direction, to satisfy such withholding tax by withholding all or any part of the shares of the cash and Common Stock that would otherwise be paid and
transferred to the Grantee, with any shares so withheld to be valued at the Fair Market Value (as defined in Section 2(k) of the Plan) on the date of such withholding. The Grantee, with the consent of the Corporation, may satisfy such withholding
tax by delivery and transfer to the Corporation of shares of Common Stock of the Corporation previously owned by the Grantee, with any shares so delivered and transferred to be valued at the Fair Market Value on the date of such delivery.

  
 8. Adjustment Provisions. It is understood that, prior
to the expiration of the Performance Period provided in paragraph 5.(a), certain changes in capitalization of the Corporation may occur. It is, therefore, understood and agreed with respect to changes in capitalization that: 
  
 (a) If a stock dividend is declared on the Common Stock of the Corporation,
there shall be added to the number of Performance Share Units provided for under the Award and stated in Section 1 of this instrument, the number of Performance Share Units equal to the number of Performance Share Units which would have been granted
to the Grantee had the 
  

 5 

 Grantee been the fully vested and unrestricted owner of the number of Performance Share Units then provided for under the
Award granted, but not theretofore received without restriction; provided, however, that the additional Performance Share Units shall be subject to all terms and provisions of this instrument (including, without limitation, the restrictions stated
in paragraph 5, above), and in making such adjustments, no fractional units, shares, or scrip certificates in lieu thereof, shall be granted or issuable by the Corporation, and the Grantee shall be entitled to only the number of full Performance
Share Units to which the Grantee may be entitled by reason of such adjustment at the adjusted grant. 
  
 (b) In the event of an increase in the outstanding shares of Common Stock of the Corporation, effectuated for the purpose of acquiring properties or
securities of another corporation or business enterprise, there shall be no increase in the number of Performance Share Units which are the subject matter of the Award under this instrument as a result of such acquisition. 
  
 (c) In the event of an increase or decrease in the number of outstanding
shares of Common Stock of the Corporation through recapitalization, reclassification, stock split-ups, consolidation of shares, changes in par value and the like, an appropriate adjustment shall be made in the number of Performance Share Units
provided for under the Award and stated in Section 1 of this instrument, by increasing or decreasing the number of Performance Share Units, as may be required to enable the Grantee to acquire the same proportionate stockholdings as the grant of the
Award would originally have provided. Provided, however, that any additional Performance Share Units shall be subject to all terms and provisions of this instrument (including, without limitation, the restrictions stated in paragraph 5, above), and
that in making such adjustments, no fractional Performance Share Units shall be awarded, and the Grantee shall be entitled to receive only the number of full Performance Share Units to which the Grantee may be entitled by reason of such adjustment.

  
 (d) Notwithstanding any provision to the contrary stated
herein, to the extent Performance Share Units are still not vested in Grantee at the time of a Change in Control with respect to the Corporation, then pursuant to the provisions of Section 8 of the Plan, they shall become fully vested and completely
free and clear of any conditions or restrictions stated herein at that time; provided, that if such Change in Control occurs less than six (6) months after the date of the grant of the Award hereunder to the Grantee, then Performance Share Units
shall become fully vested and completely free and clear of any conditions or restrictions stated herein at the time of such Change in Control only if the Grantee agrees in writing, if requested by the Corporation in writing, to remain in the employ
of the Corporation or a division or subsidiary of the Corporation at least through the date which is six (6) months after the date the grant was made with substantially the same title, duties, authority, reporting relationships, and compensation as
on the day immediately preceding the Change in Control. The provisions of this subparagraph (d) shall be applied in addition to, and shall not reduce, modify, or change any other obligation or right of the Grantee otherwise provided for in paragraph
3, above, concerning the Grantee’s continued employment with the Corporation or the termination thereof. If the Performance Share Units become subject to this subparagraph (d), they shall become fully vested in the Grantee and nonforfeitable.
The Performance Share Units are subject to the provisions of 
  

 6 

 the Plan authorizing the Corporation, or a committee of its Board of Directors, to provide in advance or at the time of a
Change in Control for cash to be paid in actual settlement of the Performance Shares for earned Performance Share Units, all subject to such terms and conditions as the Corporation or the Committee, in its sole discretion, may determine and impose.
For purposes of this subparagraph (d), the term “Change in Control” shall have the same meaning as provided in the definition of that term stated in the Plan, including any amendments thereof which may be made from time to time in the
future pursuant to the provisions of the Plan, with any amended definition of such term to apply to all events thereafter coming within the amended meaning. 
  
 9. Stock Reserved. The Corporation shall at all times during the term of the Award reserve and keep available such number of shares of its Common
Stock as will be sufficient to satisfy the Award issued and granted to Grantee and the requirements thereof as evidenced by this instrument, and shall pay all original issue taxes on the transfer of Common Stock to the Grantee, and all other fees
and expenses necessarily incurred by the Corporation in connection therewith. 
  
 10. Rights of Shareholder. Except as otherwise provided in the Award and this instrument, the Grantee shall have no rights as a shareholder of the Corporation in respect of the Performance Share Units or Common
Stock for which the Award is granted; and the Grantee shall not be considered or treated as a record owner of shares with respect to the Common Stock until the Performance Share Units are fully vested and no longer subject to any of the conditions
or restrictions imposed under the Award, and Common Stock is actually issued and transferred to the Grantee. 
  
 11. Entire Agreement. This instrument contains the entire terms of the Award, and may not be changed orally or other than by a written instrument issued
and approved by the Corporation pursuant to the Plan. This instrument supersedes any agreements or understandings that may previously have existed, and there are no other agreements or understandings, relating to its subject matter. 
  
 12. Successors and Assigns. The Award shall inure to the benefit of
and be binding upon the heirs, legatees, legal representatives, successors, and assigns of the parties thereto. 
  
 The Grantee hereby acknowledges receipt of this instrument and a copy of the Plan, and accepts the Award under the terms and conditions stated in this
instrument, subject to all terms and provisions of the Plan, by signing this instrument in duplicate originals, as of the date first above written. 
  

			
	  

	 	  

	 Date
	 	Grantee

  

 7 

 Table A 
 Performance Share Units Criteria 
 2004-2007 Performance Period 
  

						
	 Total Stockholder Return (TSR):vs. ONEOK Peer Group
  
	  
 

	 ONEOK TSR Ranking vs.
 ONEOK Peer Group

	 	 	  	 Percentage of
 Performance Share
 Units Earned

	 
	 90th percentile and above
	 	 	  	200	%
	 75th
– 89th percentile
	 	 	  	150	%
	 50th
– 74th percentile
	 	 	  	100	%
	 30th
– 49th percentile
	 	 	  	50	%
	 29th
percentile and below
	 	 	  	0	%

 Table B 
 Illustration of Hypothetical 2004-2007 Performance Period 
 Performance Share Units Award Calculation

  
 Illustration assumes 1,000 Performance Share Units Granted in
January 2004 

 Total Stockholder Return (TSR) vs. ONEOK Peer Group 
  
 Hypothetical 2004-2007 ONEOK TSR Ranking = 40th percentile 
  
 A 40th percentile TSR
ranking earns 50% (from Table A) 
 of PSUs granted (i.e., 1,000 units) – 500 share units earned 

 Total Performance Share Units Earned 
  

TSR                500 Share Units 
  
 500 share units earned out of 1,000 units granted = 50.0%
“earn-out” [50% 
 (500 shares) paid and distributed in the form of cash and stock as 
 provided in section 5.c.] 

 Table C 
  

											
	ONEOK PEER GROUP –2004	  	 	  	 	  	 	  	 
						
	 Company Name

	  	Sym

	  	 	  	 	  	 	  	 
	 AGL Resources Inc.
	  	ATG	  	 	  	 	  	 	  	 
	 ATMOS Energy
	  	ATO	  	 	  	 	  	 	  	 
	 Energen
	  	EGN	  	 	  	 	  	 	  	 
	 Equitable Resources, Inc.
	  	EQT	  	 	  	 	  	 	  	 
	 KeySpan Energy Inc (Brooklyn Union)
	  	KSE	  	 	  	 	  	 	  	 
	 MDU Resources
	  	MDU	  	 	  	 	  	 	  	 
	 National Fuel Gas Company
	  	NFG	  	 	  	 	  	 	  	 
	 New Jersey Resources
	  	NJR	  	 	  	 	  	 	  	 
	 NICOR Inc.
	  	GAS	  	 	  	 	  	 	  	 
	 NiSource
	  	NI	  	 	  	 	  	 	  	 
	 ONEOK, Inc.
	  	OKE	  	 	  	 	  	 	  	 
	 Peoples Energy Corporation
	  	PGL	  	 	  	 	  	 	  	 
	 Piedmont Natural Gas Company
	  	PNY	  	 	  	 	  	 	  	 
	 Questar
	  	STR	  	 	  	 	  	 	  	 
	 SCANA (PSNC)
	  	SCG	  	 	  	 	  	 	  	 
	 SEMPRA (Pacific Enterprises & ENOVA)
	  	SRE	  	 	  	 	  	 	  	 
	 UGI Corporation
	  	UGI	  	 	  	 	  	 	  	 
	 Vecten
	  	VVC	  	 	  	 	  	 	  	 
	 Washington Gas Light Company
	  	WGL	  	 	  	 	  	 	  	 
	 Western Gas Resources
	  	WGR	  	 	  	 	  	 	  	 
	 Wisconsin Energy Corp
	  	WEC	  	 	  	 	  	 	  	 

 ONEOK, INC. LONG-TERM INCENTIVE PLAN 
 NOTICE OF PERFORMANCE SHARES AWARD AND AGREEMENT 
  
 This instrument confirms the grant of a Performance Shares Award under the ONEOK, Inc. Long-Term Incentive Plan (“Plan”) to certain persons
designated as a participant in the Plan (“Participant”) by action of the Board of Directors of ONEOK, Inc., an Oklahoma corporation (“Corporation”), on the      day of
                , 2004, as more particularly stated in the records of the Corporation, pursuant to the terms and provisions of the Plan which shall determine the
rights and obligations of all parties under such grant. 
  
 The
Corporation delivers a true copy of this instrument to you as a Participant granted a Performance Shares Award by such action, with duplicate originals of the Performance Shares Award Agreement (“Agreement”) in the form attached hereto,
stating the specific terms of the Award granted to you as a Participant under the Plan, and which together shall constitute evidence of the grant of that Performance Shares Award and your acceptance and agreement to those terms when one duplicate
original of such Agreement is signed by you and returned to the Corporation. 
  

							
	 	 	 	 	 ONEOK, Inc.

				
	 Date
	 	  

	 	 By
	 	  

	 	 	 	 	 	 	 David L. Kyle

	 	 	 	 	 	 	 Chairman of the Board, President and

	 	 	 	 	 	 	 Chief Executive OfficerAmended and Restated Forward Sale Agreement

 Exhibit 10.1 
  
 

 
  
 Confirmation of Forward Stock Sale

 Transaction 
  
 Amended and Restated November 1, 2004 
  
 ML Ref: 0383828 AM2 
  

			
	 To:
	 	Boston Private Financial Holdings, Inc.
	 	 	Ten Post Office Square
	 	 	Boston, MA 02109

  

			
	 From:
	 	Merrill Lynch International
	 	 	Ropemaker Place
	 	 	25 Ropemaker Street
	 	 	London, England EC2Y 9L4

  

			
	 From:
	 	Merrill Lynch, Pierce, Fenner & Smith Incorporated,
	 	 	Solely as Agent
	 	 	tel: (212) 449-3149
	 	 	fax: (212) 449-2697

  
 Dear Sirs, 
  
 The purpose of this letter agreement (this “Confirmation”) is to amend and restate
the terms and conditions of the transaction entered into between us on the Trade Date specified below (the “Transaction”). This Confirmation constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified
below. 
  

	1.	The definitions and provisions contained in the 2000 ISDA Definitions (the “2000 Definitions”) and the 2002 ISDA Equity Derivatives Definitions (the “2002
Definitions” and, together with the 2000 Definitions, the “Definitions”), each as published by the International Swaps and Derivatives Association, Inc., are incorporated into this Confirmation. In the event of any inconsistency
between the 2002 Definitions and the 2000 Definitions, the 2002 Definitions will govern. In the event of any inconsistency between the Definitions and this Confirmation, this Confirmation will govern. 

  
 Party A and Party B undertake to use all reasonable efforts promptly to
negotiate, execute and deliver an agreement (the “Agreement”) in the form of the 1992 ISDA Master Agreement (Multicurrency-Cross Border) (the “ISDA Form”). Until we execute and 

 deliver that Agreement, this Confirmation, together with all other documents referring to the ISDA Form
confirming transaction entered into between us shall supplement, form a part of, and be subject to an agreement in the form of the ISDA Form as if we had executed an agreement in such form with the a Schedule thereto with the elections and variables
set forth in Part 5 of this Confirmation. In the event of any inconsistency between the provisions of that agreement and this Confirmation, this Confirmation will prevail for purposes of this Transaction. 
  
 This Confirmation shall supplement, form a part of, and be subject to such
Agreement. Until you and we execute and deliver the Agreement, this Confirmation (together with all other Confirmations of Transactions previously entered into between us, notwithstanding anything to the contrary therein) shall supplement, form a
part of, and be subject to the 1992 ISDA Master Agreement as if, on the Trade Date of the first such Transaction between us, you and we had executed that agreement (without any Schedule thereto but as supplemented in the manner provided in Section 5
hereof). 
  
 Party A and Party B each represents to the other
that it has entered into this Transaction in reliance upon such tax, accounting, regulatory, legal, and financial advice as it deems necessary and not upon any view expressed by the other. 
  

	2.	The terms of the particular Transaction to which this Confirmation relates are as follows: 

  
 General Terms: 
  

			
	 Party A:
	  	Merrill Lynch International.
		
	 Party B:
	  	Boston Private Financial Holdings, Inc.
		
	 Trade Date:
	  	December 11, 2003
		
	 Amended and Restated
 Effective Date:
	  	November 1, 2004
		
	 Base Amount:
	  	Initially, 1,600,000 Shares. On each Settlement Date, the Base Amount shall be reduced by the number of Settlement Shares for such Settlement Date.
		
	 Maturity Date:
	  	December 31, 2005
		
	 Forward Price:
	  	On the Trade Date, the Initial Forward Price. On any Settlement Date, the Initial Forward Price multiplied by the sum of (i) 1 plus (ii) the Daily Rate for each calendar day since the
Effective Date.

  

 2 

			
	 Initial Forward Price:
	  	 Shall be as defined in the table below.

  

				
	 During Period (Dates are inclusive):

	  	Initial Forward Price:

	 From September 30, 2004 until January 16, 2005
	  	$	22.736
	 From January 17, 2005 until April 16, 2005
	  	$	22.666
	 From April 17, 2005 until July 16, 2005
	  	$	22.596
	 From July 17, 2005 until October 16, 2005
	  	$	22.526
	 From October 17, 2005 until December 31, 2005
	  	$	22.456

  

			
	 Daily Rate:
	 	For any day, (i)(A) USD-Federal Funds-H.15 minus (B) the Spread divided by (ii) 365.
		
	 Spread:
	 	1.50%.
		
	 Shares:
	 	Common Stock, $1.00 par value per share, of Boston Private Financial Holdings, Inc. (the “Issuer”) (Exchange identifier: “BPFH”).
		
	 Exchange:
	 	NASDAQ.
		
	 Related Exchange(s):
	 	The principal exchanges(s) for options contracts or futures contracts, if any, with respect to the Shares.
		
	 Clearance System:
	 	DTC.
		
	 Calculation Agent:
	 	Merrill Lynch International.

  
 Settlement
Terms: 
  

			
	 Settlement Date:
	 	Any Exchange Business Day following the Effective Date and up to and including the Maturity Date, as designated by Party B in a written notice (a “Settlement Notice”) delivered to
Party A at least (i) ten Exchange Business Days prior to such Settlement Date, which may be the Maturity Date, if Physical Settlement applies, and (ii) twenty Exchange Business Days prior to such Settlement Date, which may be the Maturity Date, if
Cash Settlement or Net Stock Settlement applies; provided that the Maturity Date shall be a Settlement Date if on such date the Base Amount is greater than zero; and provided further that no more than three Settlement Dates other than
the Maturity Date may be designated by Party B.

  

 3 

			
	 Settlement Shares:
	 	With respect to any Settlement Date, a number of Shares, not to exceed the Base Amount, designated as such by Party B in the related Settlement Notice; provided that on the Maturity
Date the number of Settlement Shares shall be equal to the Base Amount.
		
	 Settlement:
	 	Physical, Cash, or Net Stock, at the election of Party B as set forth in the Settlement Notice; provided that Physical Settlement shall apply (i) if no Settlement Method is selected,
(ii) a Suspension Period exists on any day during the 15 Exchange Business Days immediately preceding a Settlement Date, or (iii) a Stock Borrow Event has occurred.
		
	 Physical Settlement:
	 	On any Settlement Date in respect of which Party B has elected, or is deemed to have elected, Physical Settlement, Party B shall deliver to Party A a number of Shares equal to the Settlement
Shares for such Settlement Date, and Party A shall deliver to Party B, by wire transfer of immediately available funds to an account designated by Party B, an amount in cash equal to the Physical Settlement Amount for such Settlement Date, on a
delivery versus payment basis.
		
	 Physical Settlement Amount:
	 	For any Settlement Date in respect of which Party B has elected, or is deemed to have elected, Physical Settlement, an amount in cash equal to the product of the Forward Price on such
Settlement Date and the number of Settlement Shares for such Settlement Date.
		
	 Cash Settlement:
	 	On any Settlement Date in respect of which Party B has elected Cash Settlement, if the Cash Settlement Amount is a positive number, Party A will pay the Cash Settlement Amount to Party B. If
the Cash Settlement Amount is a negative number, Party B will pay the absolute value of the Cash Settlement Amount to Party A. Such amounts shall be paid on the Settlement Date.

  

 4 

			
	Cash Settlement Amount:	 	An amount determined by the Calculation Agent equal to: (i)(A) the Forward Price minus (B) the volume-weighted average price of the Shares over the immediately preceding 15 Exchange
Business Days, or such other number of Exchange Business Days as may be agreed upon mutually by Party A and Party B. (“Current Market Value”) multiplied by (ii) the Settlement Shares.
		
	 Net Stock Settlement:
	 	On any Settlement Date in respect of which Party B has elected Net Stock Settlement, if the Cash Settlement Amount is a (i) positive number, Party A shall deliver a number of Shares to Party
B equal to the Net Stock Settlement Shares, and (ii) negative number, Party B shall deliver a number of Shares to Party A equal to the Net Stock Settlement Shares.
		
	 Net Stock Settlement
	 	 
	 Shares:
	 	With respect to a Settlement Date, the absolute value of the Cash Settlement Amount divided by the fair market value per share of the Shares as determined by the Calculation
Agent.
		
	 Net Stock Settlement
	 	 
	 Fee:
	 	For any Settlement Date in respect of which Party B has elected Net Stock Settlement, Party B shall pay to Party A on such Settlement Date a fee of $0.03 multiplied by the Settlement
Shares.
		
	 Settlement Currency:
	 	USD.
		
	 Failure to Deliver:
	 	Applicable.

  
 Suspension of Cash
or Net Stock Settlement: 
  

			
	 Suspension Period:
	 	Any day on which Party A determines based on the advice of counsel that Cash or Net Stock Settlement may violate applicable securities laws. Party A shall notify Party B if it receives such
advice from its counsel.Notwithstanding any provision in this Agreement to the contrary, (a) Party B agrees that it shall not elect Cash or Net Stock Settlement if Cash

  

 5 

			
	 	 	or Net Stock Settlement may violate applicable securities laws, and (b) Physical Settlement shall apply if a Suspension Period is in effect at any time during the 15 Exchange Business Days
immediately preceding a Settlement Date.

  
 Adjustments:

  

			
	 Method of Adjustment:
	  	 Calculation Agent Adjustment.

  
 Extraordinary
Events: 
  
 Consequences of Merger Events: 
  

					
	 (a)
	 	 Share-for-Share:
	  	 Cancellation and Payment.

	 (b)
	 	 Share-for-Other:
	  	 Cancellation and Payment.

	 (c)
	 	 Share-for-Combined:
	  	 Cancellation and Payment.

	 (d)
	 	 Nationalization or Insolvency:
	  	 Cancellation and Payment.

  
 Account
Details: 
  

			
	 Payments to Party A:
	  	To be advised under separate cover or telephone confirmed prior to each Payment Date.
	 Payments to Party B:
	  	To be advised under separate cover or telephone confirmed prior to each Payment Date.
	 Delivery of Shares to Party A:
	  	To be advised.

  

	3.	Other Provisions: 

  
 Conditions to Effectiveness: 
  
 The effectiveness of this Confirmation on the Effective Date shall be subject to (i) the condition that the representations and warranties of Party B
contained in the Purchase Agreement dated the date hereof among Party B, Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, and Sandler O’Neill & Partners, L.P. (the “Purchase Agreement”) and any
certificate delivered pursuant thereto by Party B be true and correct on the Effective Date as if made as of the Effective Date, (ii) the condition that Party B have performed all of the 
  

 6 

 obligations required to be performed by it under the Purchase Agreement on or prior to the Effective
Date and (iii) the satisfaction of all of the conditions set forth in Section 5 of the Pricing Agreement. 
  
 Additional Representations, Warranties and Agreements of Party B: Party B hereby represents and warrants to, and agrees with, Party A as of the
date hereof that: 
  

	 	(a)	Any Shares, when issued and delivered in accordance with the terms of the Transaction, will be duly authorized and validly issued, fully paid and nonassessable, and the issuance
thereof will not be subject to any preemptive or similar rights. 

  

	 	(b)	Party B has reserved and will keep available, free from preemptive rights, out of its authorized but unissued Shares, solely for the purpose of issuance upon settlement of the
Transaction as herein provided, the full number of Shares as shall then be issuable upon Physical Settlement of the Transaction. All Shares so issuable shall, upon such issuance, be accepted for listing on the Exchange. 

  

	 	(c)	Party B agrees not to repurchase any Shares if, immediately following such repurchase, the Base Amount would be equal to or greater than 4.9% of the number of then-outstanding
Shares. 

  

	 	(d)	Party B is not insolvent, nor will Party B be rendered insolvent as a result of this Transaction. 

  
 Compliance with Securities Laws: 
  
 Party A represents and warrants as follows: 
  

	 	(a)	in connection with bids and purchases of Shares in connection with this Transaction, Party A shall comply, or cause compliance, with the timing and volume provisions of Rule
10b-18(b)(2) and (4) under the Exchange Act; 

  

	 	(b)	in connection with bids and purchases of Shares in connection with this Transaction, Party A shall use its best efforts to comply, or cause compliance, with the price provisions of
Rule 10b-18(b)(3) under the Exchange Act; provided, however, that Party A shall not be obligated to comply with clauses (a) and (b) above in the event and only to the extent that Party A is required to purchase any Shares as a result
of a Stock Borrow Event (as hereinafter defined). 

  

 7 

 Party B represents and warrants as follows: 
  

	 	(a)	neither Party B nor any of its affiliates shall take any action that would cause any purchases of Shares by Party A in connection with this Transaction not to comply with Rule
10b-18 under the Securities Exchange Act of 1934 (the “Exchange Act”). 

  
 Covenant of Party B: 
  
 The parties acknowledge and agree that any Shares delivered by Party B to Party A on any Settlement Date and returned by Party A to securities lenders from whom Party A borrowed Shares in connection with hedging its exposure to the
Transaction will be freely saleable without further registration or other restrictions under the Securities Act of 1933, as amended, in the hands of those securities lenders. Accordingly, Party B agrees that the Settlement Shares that it delivers to
Party A on each Settlement Date will not bear a restrictive legend and that such Settlement Shares will be deposited in, and the delivery thereof shall be effected through the facilities of, the Clearance System. 
  
 Covenants of Party A: 
  

	 	(a)	Party A shall use its best efforts to maintain its hedge of its exposure to the Transaction by borrowing sufficient Shares from lenders. 

  

	 	(b)	Party A shall use any Shares delivered by Party B to Party A on any Settlement Date to return to securities lenders.  

  
 Acceleration Events: An Acceleration Event shall occur if: 

 

	 	(a)	Notwithstanding any other provision hereof, if, in the judgment of the Calculation Agent, Party A is unable to hedge Party A’s exposure to the Transaction because (i) of the
lack of sufficient Shares being made available for Share borrowing by lenders, or (ii) it is otherwise commercially impracticable, (each of (i) and (ii) a “Stock Borrow Event”) then Party A shall have the right to designate any Exchange
Business Day to be a Settlement Date on at least two Exchange Business Days’ notice, and to select the number of Settlement Shares for such Settlement Date; provided that the number of Settlement Shares for any Settlement Date so
designated by Party A shall not exceed the number of Shares as to which such inability exists, and provided further that Physical Settlement shall apply; or 

  

	 	(b)	Notwithstanding any other provision hereof, if the closing sale price per Share on the Exchange for the regular trading session on any Exchange Business Day occurring after the
Trade Date is less than or equal to $8.00, Party A shall have the right to designate any Exchange Business Day to be a Settlement Date on at least fifteen Exchange Business Days’ notice, and to select the 

  

 8 

 number of Settlement Shares for such Settlement Date. Upon the designation of such Settlement Date,
Party B shall promptly notify Party A of the settlement method, provided that if Party B fails to do so, Physical Settlement shall apply. 
  

	 	(c)	Notwithstanding any other provision hereof, if the Issuer either a) declares an Extraordinary Dividend, as determined by the Calculation Agent, b) declares a quarterly dividend
greater than $0.07 per share or c) an Extraordinary Ex-Dividend Date Event occurs (the events referred to in either a, b or c of this paragraph collectively refer to as a “Dividend Event”), Party A may designate any Exchange Business Day
to be a Settlement Date on at least one Exchange Business Days’ notice and Physical Settlement shall apply. 

  
 Extraordinary Ex-Dividend Date Event: If the Issuer declares an ex-dividend date in respect of a regular quarterly dividend on a date prior to the
17th day of the month,  
  
 Assignment: 
  
 Party A may assign or transfer any of its rights or duties hereunder to any affiliate of Party A or any entity organized or sponsored by Party A without
the prior written consent of Party B; provided, however, that such assignee’s obligations shall be guaranteed by Merrill Lynch & Co., Inc. in accordance with the Agreement. 
  
 Matters relating to Agent: 
  

	 	(a)	As a broker-dealer registered with the U.S. Securities and Exchange Commission, Merrill Lynch, Pierce, Fenner & Smith Incorporated, in its capacity as Agent, will be responsible
for (i) effecting the Transaction, (ii) issuing all required confirmations and statements to Party A and Party B and (iii) maintaining books and records relating to the Transaction. 

  

	 	(b)	Merrill Lynch, Pierce, Fenner & Smith Incorporated shall act as “agent” for Party A and Party B within the meaning of Rule 15a-6 under the Securities Exchange Act of
1934 in connection with the Transaction. 

  

	 	(c)	The Agent, in its capacity as such, shall have no responsibility or liability (including, without limitation, by way of guarantee, endorsement or otherwise) to Party A or Party B or
otherwise in respect of the Transaction, including, without limitation, in respect of the failure of Party A or Party B to pay or perform under this Confirmation, except for its gross negligence or willful misconduct in performing its duties as
Agent hereunder. 

  

 9 

	 	(d)	Each of Party A and Party B agree to proceed solely against the other to collect or recover any securities or monies owing to Party A or Party B, as the case may be, in connection
with or as a result of the Transaction. 

  

	 	(e)	The Agent will be Party A’s agent for service of process for the purpose of Section 13(c) of the Agreement. 

  
 Indemnity 
  
 Party B agrees to indemnify Party A and its affiliates and their respective
directors, officers, agents and controlling parties (Party A and each such affiliate or person being an “Indemnified Party”) from and against any and all losses, claims, damages and liabilities, joint and several, to which such Indemnified
Party may become subject under, in connection with, relating to, or arising out of, this Agreement or Transaction with respect to any applicable securities laws and will reimburse any Indemnified Party for all reasonable expenses (including
reasonable legal fees and reasonable expenses) as they are incurred in connection with the investigation of, preparation for, or defense of any pending or threatened claim or any action or proceeding arising therefrom, whether or not such
Indemnified Party is a party thereto. Party B will not be liable under this Indemnity paragraph to the extent that any loss, claim, damage, liability or expense is found in a final judgment by a court to have resulted from Party A’s gross
negligence, fraud, bad faith and/or willful misconduct. 
  
 Miscellaneous 
  

			
	 Non-Reliance:
	  	Applicable
		
	 Additional Acknowledgements:
	  	Applicable

  

	4.	The Agreement is further supplemented by the following provisions: 

  
 Physical Settlement upon Certain Events: 
  
 Notwithstanding anything to the contrary herein, in the Agreement or in the Definitions, if at any time (i) an Early Termination Date occurs and either
party would be required to make a payment pursuant to Sections 6(d) and 6(e) of the Agreement, or(ii) a Merger Event occurs and either party would be required to make a payment pursuant to Sections 12.2 and 12.7 of the 2002 Definitions, then in
either of such events, in lieu of such payment, the date such payment would have been due shall constitute a Settlement Date and Physical Settlement shall apply, provided, that in the case of a Merger Event, the New Shares and or Other
Consideration, as the case may be, shall be delivered by Party B in such amounts as determined by the Calculation Agent. 
  

 10 

 Agreement Regarding Set-off: 
  
 The last sentence of the first paragraph of Section 6(e) of the Agreement shall not apply with respect to the Transaction
to the extent that any of the events described in Section 5(a)(vii) of the Agreement occurs with respect to Party B. 
  
 Bankruptcy Rights: 
  
 In the event of Party B’s bankruptcy, Party A acknowledges and agrees that this Confirmation is not intended to convey to it rights with respect to
this Transaction that are senior to the claims of common stockholders. For the avoidance of doubt, the parties acknowledge and agree that Party A’s rights with respect to any other claim arising from this Transaction prior to Party B’s
bankruptcy shall remain in full force and effect and shall not be otherwise abridged or modified in connection herewith. 
  
 Miscellaneous: 
  

	 	(a)	Addresses for Notices. For the purpose of Section 12(a): 

  
 Address for notices or communications to Party A: 
  

			
	 Address:
	 	 c/o Merrill Lynch, Pierce, Fenner & Smith Incorporated

	 	 	 Four World Financial Center

	 	 	 North Tower, 5th Floor

	 	 	 New York, NY 10080

	 Attention:
	 	 Equity-Linked Capital Markets

	 Telephone No.:
	 	 (212) 449-6763

	 Facsimile No.:
	 	 (212) 738-1069

  
 Address for notices
or communications to Party B: 
  

			
	 Address:
	  	 Executive Vice President and General Counsel

	 	  	 Boston Private Financial Holdings, Inc.

	 	  	 Ten Post Office Square

	 	  	 Boston, MA 02109

	 Attention:
	  	 Margaret W. Chambers, Esq.

  

	 	(b)	Waiver of Right to Trial by Jury. Each party waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of any suit, action or
proceeding relating to this Confirmation or any Credit Support Document. Each party (i) certifies that no representative, 

  

 11 

 agent or attorney of the other party has represented, expressly or otherwise, that such other party
would not, in the event of such a suit action or proceeding, seek to enforce the foregoing waiver and (ii) acknowledges that it and the other party have been induced to enter into this Confirmation by, among other things, the mutual waivers and
certifications in this Section. 
  

	5.	ISDA Master Agreement 

  
 With respect to the Agreement, Party A and Party B each agree as follows: 
  
 Specified Entities: 
  
 (i) in relation to Party A, for the purposes of: 
  

			
	 Section 5(a)(v):
	  	 not applicable

	 Section 5(a)(vi):
	  	 not applicable

	 Section 5(a)(vii):
	  	 not applicable

	 Section 5(b)(iv):
	  	 not applicable

  
 and
(ii) in relation to Party B, for the purposes of: 
  

			
	 Section 5(a)(v):
	  	 not applicable

	 Section 5(a)(vi):
	  	 not applicable

	 Section 5(a)(vii):
	  	 not applicable

	 Section 5(b)(iv):
	  	 not applicable

  
 “Specified
Transaction” will have the meaning specified in Section 14 of this Agreement. 
  
 The “Cross Default” provisions of Section 5(a)(vi) of the Agreement will apply to Party A and to Party B. 
  
 “Specified Indebtedness” will have the meaning specified in Section 14 of the Agreement. 
  
 “Threshold Amount” with respect to Party A means USD 100,000,000 (or the
U.S. dollar equivalent in any other currency or currencies) and with respect to Party B means USD 10,000,000. 
  
 The “Credit Event Upon Merger” provisions of Section 5(b)(iv) of the Agreement will apply to Party A and to Party B. 
  
 The “Automatic Early Termination” provision of Section
6(a) of the Agreement will not apply to Party A and to Party B. 
  
 Payments on Early Termination for the purpose of Section 6(e) of the Agreement: (i) Loss shall apply; and (ii) the Second Method shall apply. 
  

 12 

 “Termination Currency” means USD. 
  
 Additional Termination Event. The following shall constitute an Additional
Termination Event: None 
  
 Tax Representations: 
  

	 	(I)	For the purpose of Section 3(e) of the Agreement, each party represents to the other party that it is not required by any applicable law, as modified by the practice of any relevant
governmental revenue authority, of any Relevant Jurisdiction to make any deduction or withholding for or on account of any Tax from any payment (other than interest under Section 2(e), 6(d)(ii), or 6(e) of the Agreement) to be made by it to the
other party under the Agreement. In making this representation, each party may rely on (i) the accuracy of any representations made by the other party pursuant to Section 3(f) of the Agreement, (ii) the satisfaction of the agreement contained in
Section 4(a)(i) or 4(a)(iii) of the Agreement, and the accuracy and effectiveness of any document provided by the other party pursuant to Section 4(a)(i) or 4(a)(iii) of the Agreement, and (iii) the satisfaction of the agreement of the other party
contained in Section 4(d) of the Agreement; provided that it will not be a breach of this representation where reliance is placed on clause (ii) above and the other party does not deliver a form or document under Section 4(a)(iii) of the Agreement
by reason of material prejudice to its legal or commercial position. 

  

	 	(II)	For the purpose of Section 3(f) of the Agreement, each party makes the following representations to the other party: 

  

	 	(i)	Party A represents that it is a corporation organized under the laws of England and Wales. 

  

	 	(ii)	Party B represents that it is a corporation incorporated under the laws of the State of Massachusetts. 

  
 Tax Forms: For the purpose of Section 4(a)(i) of the Agreement, each party agrees to deliver the following documents to the other
party: 
  
 For the purpose of Sections 3(d), 4(a)(i) and
(ii) of the Agreement, each party agrees to deliver the following documents: 
  
 Tax forms, documents or certificates to be delivered are: 
  
 Each party agrees to complete (accurately and in a manner reasonably satisfactory to the other party), execute, and deliver to the other party, United States Internal Revenue Service Form W-9 or W-8 BEN, or any successor of such form(s):
(i) before the first payment date under this 
  

 13 

 agreement; (ii) promptly upon reasonable demand by the other party; and (iii) promptly upon learning that
any such form(s) previously provided by the other party has become obsolete or incorrect. 
  
 Other documents to be delivered:- 
  

							
	 Party Required to
 Deliver
Document

	 	 Document Required to be
 Delivered

	  	 When Required

	  	 Covered by
 Section 3(d)
 Representation

	Party A and Party B	 	Evidence of the authority and true signatures of each official or representative signing this Confirmation	  	Upon or before execution and delivery of this Confirmation	  	Yes
				
	Party A and Party B	 	Certified copy of the resolution of the Board of Directors or equivalent document authorizing the execution and delivery of this Confirmation	  	Upon or before execution and delivery of this Confirmation	  	Yes
				
	Party A and Party B	 	Copy of its most recent annual report containing audited financial statements	  	Promptly upon request by the other party	  	Yes
				
	Party A	 	Guarantee of its Credit Support Provider, substantially in the form of Exhibit A attached hereto, together with evidence of the authority and true signatures of the signatories, if
applicable	  	Upon or before execution and delivery of this Confirmation	  	Yes

  
 Addresses for Notices: For the
purpose of Section 12(a) of the Agreement: 
  
 Address for notices or
communications to Party A: 
  

			
	 Address:
	  	 Merrill Lynch International

	 	  	 Merrill Lynch Financial Centre

	 	  	 2 King Edward Street, London EC1A 1HQ

	 Attention:
	  	 Manager, Fixed Income Settlements

	 Facsimile No.:
	  	 207 995 2004                     
Telephone No.: 207 9995 3769

  

 14 

 (For all purposes) 
  
 Additionally, a copy of all notices pursuant to Sections 5, 6, and 7 as well as any changes to Party B’s address, telephone number or facsimile number should be sent
to: 
  
 GMI Counsel 
 Merrill Lynch World Headquarters 
 4 World Financial Center 
 New York, New York 10080  
 Attention: Global Equity Derivatives 
 Facsimile No.: 212 449-6576 Telephone No.: 212 449-6309 
  
 Address for notices or communications to Party B for all purposes: 
  
 Margaret W. Chambers, Esq. 
 ExecutiveVice President and General Counsel 
 Boston Private Financial Holdings, Inc.

 Ten Post Office Square 
 Boston, MA 02109 
  
 With a copy to: 
  
 Goodwin
Procter LLP 
 Exchange Place 
 Boston, MA 02109 
 Attention: William P. Mayer, Esq. 
  
 Process Agent: For the purpose of Section 13(c) of the Agreement, Party A appoints as
its process agent: 
  
 Merrill Lynch, Pierce,
Fenner & Smith Incorporated 
 222 Broadway, 16th Floor 
 New York, NY 10038

 Attention: Litigation Department 
  

[Party B does not appoint a Process Agent.] 
  
 Multibranch Party. For the purpose of Section 10(c) of the Agreement: Neither Party A nor Party B is a Multibranch Party.

  
 Calculation Agent. The Calculation Agent is Party A. 
  
 Credit Support Document. 
  
 Party A: Guarantee of Merrill Lynch & Co. in the form attached hereto as Exhibit A.

  
 Party B: [None] 
  

 15 

 Credit Support Provider. 
  

With respect to Party A: Merrill Lynch & Co. and with respect to Party B, Not Applicable. 
  
 Governing Law. This Confirmation will be governed by, and construed in accordance with, the laws of the State of New York.

  
 Netting of Payments. The provisions of Section 2(c) of the Agreement
shall not be applicable to this Transaction; provided, however, that with respect to this Agreement or any other ISDA Master Agreement between the parties, any Share delivery obligations on any day of Party B, on the one hand, and
Party A, on the other hand, shall be netted. The resulting Share delivery obligation of a party upon such netting shall be rounded down to the nearest number of whole Common Shares, such that neither party shall be required to deliver any fractional
Common Shares. 
  
 Accuracy of Specified Information. Section 3(d)
of the Agreement is hereby amended by adding in the third line thereof after the word “respect” and before the period the words “or, in the case of audited or unaudited financial statements or balance sheets, a fair presentation of
the financial condition of the relevant person.” 
  
 Basic
Representations. Section 3(a) of the Agreement is hereby amended by the deletion of “and” at the end of Section 3(a)(iv); the substitution of a semicolon for the period at the end of Section 3(a)(v) and the
addition of Sections 3(a)(vi), as follows: 
  
 Eligible
Contract Participant; Line of Business. It is an “eligible contract participant” as defined in the Commodity Futures Modernization Act of 2000 and it has entered into this Confirmation and this Transaction in connection with its
business or a line of business (including financial intermediation), or the financing of its business. 
  
 Amendment of Section 3(a)(iii). Section 3(a)(iii) of the Agreement is modified to read as follows: 
  
 No Violation or Conflict. Such execution, delivery and performance do not materially violate or conflict with any law known by it to be applicable
to it, any provision of its constitutional documents, any order or judgment of any court or agency of government applicable to it or any of its assets or any material contractual restriction relating to Specified Indebtedness binding on or affecting
it or any of its assets.  
  
 Amendment of Section
3(a)(iv). Section 3(a)(iv) of the Agreement is modified by inserting the following at the beginning thereof: 
  
 “To such party’s best knowledge,” 
  

 16 

 Additional Representations: 
  
 Party B Representations. Party B (i) has such knowledge and experience in financial and business affairs as to be capable of
evaluating the merits and risks of entering into this Transaction; (ii) has consulted with its own legal, financial, accounting and tax advisors in connection with this Transaction; and (iii) is entering into this Transaction for a bona fide
business purpose to hedge an existing position. 
  
 Party B is not and has
not been the subject of any civil proceeding of a judicial or administrative body of competent jurisdiction that could reasonably be expected to impair materially Party B’s ability to perform its obligations hereunder. 
  
 Party B will by the next succeeding Business Day notify Party A upon obtaining knowledge of
the occurrence of any event that would constitute an Event of Default, a Potential Event of Default or a Potential Adjustment Event. 
  
 As of the date hereof, Party B is not insolvent. 
  
 FDICIA Representation. Party A represents that it is a “financial institution” for purposes of Section 402 of the Federal Deposit Insurance Corporation
Improvement Act of 1991, as amended (the “Statute”), and the regulations promulgated pursuant thereto because either (A) it is a broker or dealer, a depository institution or a futures commission merchant (as such terms are defined in the
Statute) or (B) it will engage in financial contracts (as so defined) as a counterparty on both sides of one or more financial markets (as so defined) and either (I) had one or more financial contracts of a total gross dollar value of at least $1
billion in notional principal amount outstanding on any day during the previous 15-month period with counterparties that are not its affiliates or (II) had total gross mark-to-market positions of at least $100 million (aggregated across
counterparties) in one or more financial contracts on any day during the previous 15-month period with counterparties that are not its affiliates. 
  
 Acknowledgements: 
  
 (1) The parties acknowledge and agree that there are no other representations, agreements or other undertakings of the parties in relation to this Transaction, except as set forth in this Confirmation. 
  
 (2) The parties hereto intend for: 
  
 (a) this Transaction to be a “securities contract” as defined in
Section 741(7) of Title 11 of the United States Code (the “Bankruptcy Code”), qualifying for the protections under Section 555 of the Bankruptcy Code; 
  
 (b) a party’s right to liquidate this Transaction and to exercise any other remedies upon the occurrence of any Event
of Default under the Agreement with respect to the other party to constitute a “contractual right” as defined in the Bankruptcy Code; 
  

 17 

 (c) any cash, securities or other property provided as performance assurance, credit, support or
collateral with respect to this Transaction to constitute “margin payments” as defined in the Bankruptcy Code; and 
  
 (d) all payments for, under or in connection with this Transaction, all payments for the Shares and the transfer of such Shares to constitute
“settlement payments” as defined in the Bankruptcy Code. 
  
 Amendment of Section 6(d)(ii). Section 6(d)(ii) of the Agreement is modified by deleting the words “on the day” in the second line thereof and substituting therefor “on the day that is three Local
Business Days after the day”. Section 6(d)(ii) is further modified by deleting the words “two Local Business Days” in the fourth line thereof and substituting therefor “three Local Business Days.” 
  
 Amendment of Definition of Reference Market-Makers. The definition of “Reference
Market-Makers” in Section 14 is hereby amended by adding in the fourth line thereof after the word “credit” the words “or to enter into transactions similar in nature to Transactions.” 
  
 Consent to Recording. Each party consents to the recording of the telephone
conversations of trading and marketing personnel of the parties and their Affiliates in connection with this Confirmation. 
  
 Severability. If any term, provision, covenant or condition of this Confirmation, or the application thereof to any party or circumstance, shall be held to be
invalid or unenforceable in whole or in part for any reason, the remaining terms, provisions, covenants, and conditions hereof shall continue in full force and effect as if this Confirmation had been executed with the invalid or unenforceable
provision eliminated, so long as this Confirmation as so modified continues to express, without material change, the original intentions of the parties as to the subject matter of this Confirmation and the deletion of such portion of this
Confirmation will not substantially impair the respective benefits or expectations of parties to this Agreement; provided, however, that this severability provision shall not be applicable if any provision of Section 2,
5, 6 or 13 of the Agreement (or any definition or provision in Section 14 to the extent that it relates to, or is used in or in connection with any such Section) shall be so held to be invalid or unenforceable.

  
 Affected Parties. For purposes of Section 6(e) of the Agreement,
each party shall be deemed to be an Affected Party in connection with Illegality and any Tax Event. 
  

 18 

 Please confirm that the foregoing correctly sets forth the terms of our agreement by signing and returning this
Confirmation. 
  

			
	 Yours faithfully,

	
	 MERRILL LYNCH INTERNATIONAL

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

	

	

  
 Confirmed as of the date first
written above: 
  

			
	 BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
	
	MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED, as Agent
		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

 EXHIBIT A 
  
 GUARANTEE OF MERRILL LYNCH & CO., INC. 
  
 FOR VALUE RECEIVED, receipt of which is hereby acknowledged, MERRILL LYNCH & CO., INC., a corporation duly organized and
existing under the laws of the State of Delaware (“ML & Co.”), hereby unconditionally guarantees to Boston Private Financial Holdings, Inc. (the “Company”), the due and punctual payment of any and all amounts payable by
Merrill Lynch International, a company organized under the laws of England and Wales (“ML”), under the terms of the Master Agreement between the Company and ML, dated as of October 6, 2004 (the “Agreement”), including, in case of
default, interest on any amount due, when and as the same shall become due and payable, whether on the scheduled payment dates, at maturity, upon declaration of termination or otherwise, according to the terms thereof. In case of the failure of ML
punctually to make any such payment, ML & Co. hereby agrees to make such payment, or cause such payment to be made, promptly upon demand made by the Company to ML & Co.; provided, however that delay by the Company in giving such demand shall
in no event affect ML & Co.’s obligations under this Guarantee. This Guarantee shall remain in full force and effect or shall be reinstated (as the case may be) if at any time any payment guaranteed hereunder, in whole or in part, is
rescinded or must otherwise be returned by the Company upon the insolvency, bankruptcy or reorganization of ML or otherwise, all as though such payment had not been made. 
  
 ML & Co. hereby agrees that its obligations hereunder shall be unconditional, irrespective of the validity, regularity
or enforceability of the Agreement; the absence of any action to enforce the same; any waiver or consent by the Company concerning any provisions thereof; the rendering of any judgment against ML or any action to enforce the same; or any other
circumstances that might otherwise constitute a legal or equitable discharge of a guarantor or a defense of a guarantor. ML & Co. covenants that this guarantee will not be discharged except by complete payment of the amounts payable under the
Agreement. This Guarantee shall continue to be effective if ML merges or consolidates with or into another entity, loses its separate legal identity or ceases to exist. 
  
 ML & Co. hereby waives diligence; presentment; protest; notice of protest, acceleration, and dishonor; filing of claims
with a court in the event of insolvency or bankruptcy of ML; all demands whatsoever, except as noted in the first paragraph hereof; and any right to require a proceeding first against ML. 
  
 ML & Co. hereby certifies and warrants that this Guarantee constitutes the valid obligation of ML & Co. and complies
with all applicable laws. 
  
 This Guarantee shall be governed by,
and construed in accordance with, the laws of the State of New York. 
  
 This Guarantee may be terminated at any time by notice by ML & Co. to the Company given in accordance with the notice provisions of the Agreement, effective upon receipt of such notice by the Company or such later date as may be
specified in such notice; provided, however, that this Guarantee shall continue in full force and effect with respect to any obligation of ML under the Agreement entered into prior to the effectiveness of such notice of termination. 
  

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 This Guarantee becomes effective concurrent with the effectiveness of the Agreement, according to its
terms. 
  
 IN WITNESS WHEREOF, ML & Co. has caused this
Guarantee to be executed in its corporate name by its duly authorized representative. 
  

			
	 MERRILL LYNCH & CO., INC.

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
	 Date:
	 	 

  

 3

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