Company: BCTF
Filing Date: 2025-03-06
Form Type: 10-K
Source: 0001552781-25-000058
Chunk: 580

Company: Bancorp 34, Inc.
Filing Date: 2025-03-06
Form: 10-K
Item: Item 1B
Chunk 580
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 all immediately exercisable warrants held by them). Pursuant to the Securities Purchase Agreements with
Castle Creek and Brush Creek, unless appropriate regulatory approvals are obtained, the Funds were each limited to purchasing no more
than 24.9% of our total equity, and no more than 9.9% of any class of our voting securities. Pursuant to the Articles Supplementary to
our Articles of Incorporation for Non-Voting Common Stock, each of the Funds is permitted to convert, or upon the written request of
Bancorp 34 will convert, its shares of non-voting common stock to voting common stock at any time, provided that the Fund, together with
its affiliates, own no more than 9.9% of our voting common stock.

Additionally,
under the Securities Purchase Agreements with Brush Creek and Castle Creek, as long as each of Brush Creek or Castle Creek (together
with their affiliates) owns at least 4.9% of our common stock then outstanding (the “minimum ownership interest”), each of
Brush Creek and Castle Creek has the right to designate a representative reasonably acceptable to the Bancorp 34 and the
Bank Boards of Directors. To the extent that Brush
Creek or Castle Creek maintains the minimum ownership and does not have a representative appointed to the board of directors of Bancorp
34 or the Bank, or the board representative
is unable to attend a board meeting, Brush Creek and Castle Creek have the right to appoint a representative to attend meetings of the
boards of directors in a non-voting observer capacity. Bancorp 34 has agreed to use its reasonable efforts to have the board representative
elected as a director of the company by the shareholders of the company and will solicit proxies for the board representative to the
same extent as it does for any of its other nominees to the board. Each board member appointed is entitled to compensation and indemnification
and insurance coverage in connection with his or her role as a board member to the same extent as other members of our boards of directors.

Each
of Brush Creek’s and Castle Creek’s nominating right will terminate at such time as the applicable Fund owns less than 4.9%
of our common stock. Mr. Ahern currently serves as the Brush Creek representative on Bancorp 34’s and the
Bank’s Boards of Directors. See “Management—Board
of Directors—Kevin Ahern” for Mr. Ahern’s biography. Mr. Cohn currently serves as the Castle Creek representative
on