Exhibit 10.1

  

  

  
    SECURITIES PURCHASE AGREEMENT

    

    

    by and between

    

    

    THE UNITED STATES DEPARTMENT OF THE TREASURY

    

    

    and

    

    

    CARVER BANCORP, INC.

    

    

    

    

    Dated as of August 6, 2020

     

    

     

    

     

    

     

    

     

    

    
      
        


    

    
    
                                                                                               TABLE OF CONTENTS

       

      

    

    

    

    
       

      

      	 	 	 Page
	 	
               ARTICLE I

              

              DEFINITIONS

              

            	 
	 	 	 
	 Section 1.01

            	
               Definitions of Certain Terms

            	 1
	 Section 1.02

            	 Interpretation	 3
	 	 	 
	 	
              ARTICLE II

              

              THE SECURITIES PURCHASE

              

            	 
	 	 	 
	 Section 2.01

            	 Purchase and Sale of the Shares 

            	 4
	 Section 2.02

            	 Closing of the Securities Purchase

            	 4
	 	 	 
	 	
               ARTICLE III

              

              REPRESENTATIONS AND WARRANTIES

              

            	 
	 	 	 
	 Section 3.01

            	 Representations and Warranties of the Company

            	 4
	 	 	 
	 	
               ARTICLE IV

              

              COVENANTS

              

            	 
	 	 	 
	 Section 4.01

            	 Forbearances of the Seller

            	 5
	 Section 4.02

            	 Further Action

            	 6
	 Section 4.03

            	 Remaining Certification and Disclosure Requirements

            	 6
	 Section 4.04

            	 Transferability Restrictions Related to Long-Term Restricted Stock

            	 6
	 Section 4.05

            	 Executive Compensation

            	 6
	 	 	 
	 	
               ARTICLE V

              

              CONDITIONS TO THE CLOSING

              

            	 
	 	 	 
	 Section 5.01

            	 Conditions to Each Party's Obligations

            	 7
	 Section 5.02

            	 Conditions to Obligations of the Seller

            	 7


      

      

      

      

      

      

      

      

      

      

      

      

      

       

      

       

      

       

      

       

      

      
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               ARTICLE VI

              

              TERMINATION

              

            	 
	 	 	 
	 Section 6.01

            	 Termination Events

            	 9
	 Section 6.02

            	 Effect of Termination

            	 9
	 	 	 


    

    
      	 	
               ARTICLE VII

              

              MISCELLANEOUS

              

            	 
	 	 	 
	 Section 7.01

            	 Waiver: Amendment

            	 9
	 Section 7.02	 Counterparts

            	 9
	 Section 7.03	 Governing Law; Choice of Forum; Waiver of Jury Trial

            	 10
	 Section 7.04	 Expenses	 10
	 Section 7.05	 Notices	 10
	 Section 7.06	 Entire Understanding; No Third Party Beneficiaries

            	 11
	 Section 7.07	 Assignmenet	 11
	 Section 7.08	 Severability	 11
	 	 	 
	 	 	 


      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

    

    
      ii

      
        


    

  

  
    

    

  

  
    SECURITIES PURCHASE AGREEMENT

    THIS SECURITIES PURCHASE AGREEMENT (as amended, supplemented or otherwise modified from time to time, this “Agreement”)

      is dated as of August 6, 2020, and is entered into by and between the United States Department of the Treasury (the “Seller”) and Carver Bancorp, Inc., a Delaware corporation (the “Company”).

    RECITALS

    WHEREAS, the Seller is currently the owner of and holds 2,321,286 shares of Company Common Stock, as defined below;
      and

    WHEREAS, the Seller desires to sell to the Company, and the Company desires to purchase from the Seller, 2,321,286 shares of
      Company Common Stock (the “Shares”) subject to the terms and conditions contained in this Agreement (the “Securities Purchase”).

    NOW, THEREFORE, in consideration of the premises, and of the various representations, warranties, covenants and other
      agreements and undertakings of the parties hereto, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

     

      

    ARTICLE I
      

      

      DEFINITIONS

    Section 1.01 Definitions of Certain
          Terms.  For purposes of this Agreement, the following terms are used with the meanings assigned below (such definitions to be equally applicable to both the singular and plural forms of the terms herein defined):

    “Affiliate” means, with respect to any person, any person directly or indirectly controlling, controlled by or under common control with, such other person. 
      For purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”) when used with respect to any person, means the possession, directly or indirectly, of the power to cause the
      direction of management and/or policies of such person, whether through the ownership of voting securities, by contract or otherwise.

    “Agreement” has the meaning set forth in the introductory paragraph of this agreement.

    “Business Day” means any day that is not a Saturday, a Sunday or other day on which banking organizations in the State of New York are required or authorized
      by Law to be closed.

    “Closing” has the meaning set forth in Section 2.02(A).

     

    

     

    

    
      
        


    

    
    “Closing Date” has the meaning set forth in Section 2.02(A).

    “Company” has the meaning set forth in the introductory paragraph to this Agreement.

    “Company Common Stock” means the common stock, $0.01 par value, of the Company.

    “Company Material Adverse Effect” means a material adverse effect on the business, results of operations or financial condition of the Company and its
      consolidated Subsidiaries taken as a whole; provided, however, that Company Material Adverse Effect shall not be deemed to include the effects of (i) changes after the date hereof in general
      business, economic or market conditions (including changes generally in prevailing interest rates, credit availability and liquidity, currency exchange rates and price levels or trading volumes in the United States or foreign securities or credit
      markets), or any outbreak or escalation of hostilities, declared or undeclared acts of war or terrorism, in each case generally affecting the industries in which the Company and its Subsidiaries operate, (ii) changes or proposed changes after the
      date hereof in United States generally accepted accounting principles or regulatory accounting requirements, or authoritative interpretations thereof, (iii) changes or proposed changes after date hereof in securities, banking and other Laws of
      general applicability or related policies or interpretations of Governmental Entities (in the case of each of these clauses (i), (ii) and (iii), other than changes or occurrences to the extent that such changes or occurrences have or would reasonably
      be expected to have a materially disproportionate adverse effect on the Company and its consolidated Subsidiaries taken as a whole relative to comparable United States banking or financial services organizations), or (iv) changes in the market price
      or trading volume of the Company Common Stock or any other equity, equity-related or debt securities of the Company or its consolidated Subsidiaries (it being understood and agreed that the exception set forth in this clause (iv) does not apply to
      the underlying reason giving rise to or contributing to any such change).

    “Compensation Regulations” means any guidance, rule or regulation, as the same shall be in effect from time to time, promulgated pursuant to or implementing
      Section 111 of the Emergency Economic Stabilization Act of 2008, as amended by the American Recovery and Reinvestment Act of 2009 or otherwise from time to time.

    “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.

    “Governmental Entity” means any court, administrative agency or commission or other governmental or regulatory authority or instrumentality or
      self-regulatory organization.

    “Law” means any law, statute, code, ordinance, rule, regulation, judgment, order, award, writ, decree or injunction issued, promulgated or entered into by or
      with any Governmental Entity.

    “Liens” means any liens, licenses, pledges, charges, encumbrances, adverse rights or claims and security interests whatsoever.

    “Purchase Price” has the meaning set forth in Section 2.01.

     

    

     

    

    
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    “Regulatory Event” means, with respect to the Company, that (i) the Federal Deposit Insurance Corporation or any other applicable Governmental Entity shall
      have been appointed as conservator or receiver for the Company or any Subsidiary; (ii) the Company or any Subsidiary shall have been considered in “troubled condition” for the purposes of 12 U.S.C. Sec. 1831i or any regulation promulgated thereunder;
      (iii) the Company or any Subsidiary shall qualify as “Undercapitalized,” “Significantly Undercapitalized,” or “Critically Undercapitalized” as those terms are defined in 12 U.S.C. Sec. 1831o or other applicable Law; or (iv) the Company or any
      Subsidiary shall have become subject to any formal or informal regulatory action requiring the Company or any Subsidiary to materially improve its capital, liquidity or safety and soundness.

    “Relevant Period” means the period in which any obligation of the Company arising from financial assistance under the Troubled Asset Relief Program remains
      outstanding, as it may be further described in the Compensation Regulations.

    “Securities Purchase” has the meaning set forth in the recitals to this Agreement.

    “Seller” has the meaning set forth in the introductory paragraph to this Agreement.

    “Shares” has the meaning set forth in the recitals to this Agreement.

    “Subsidiary” means, with respect to any person, any bank, corporation, partnership, joint venture, limited liability company or other organization, whether
      incorporated or unincorporated, (i) of which such person or a subsidiary of such person is a general partner or managing member or (ii) at least a majority of the securities or other interests of which having by their terms ordinary voting power to
      elect a majority of the board of directors or persons performing similar functions with respect to such entity is directly or indirectly owned by such person and/or one or more subsidiaries thereof.

    Section 1.02 Interpretation. 
        The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section references are to this Agreement unless
        otherwise specified.  Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” The term “person” as used in this Agreement shall mean any individual,
        corporation, limited liability company, limited or general partnership, joint venture, government or any agency or political subdivision thereof, or any other entity or any group (as defined in Section 13(d)(3) of the Exchange Act) comprised of two
        or more of the foregoing.  The table of contents and headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.  In this Agreement, all references to
        “dollars” or “$” are to United States dollars.  This Agreement and any documents or instruments delivered pursuant hereto or in connection herewith shall be construed without regard to the identity of the person who drafted the various provisions
        of the same.  Each and every provision of this Agreement and such other documents and instruments shall be construed as though all of the parties participated equally in the drafting of the same.  Consequently, the parties acknowledge and agree
        that any rule of construction that a document is to be construed against the drafting party shall not be applicable either to this Agreement or such other documents and instruments.

     

      

     

      

    
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    ARTICLE II
      

      

      THE SECURITIES PURCHASE

    Section 2.01 Purchase and Sale of
          the Shares.  Subject to, and on the terms and conditions of, this Agreement, effective at the Closing, the Company will purchase from the Seller, and the Seller will sell, transfer, convey, assign and deliver to the Company, the Shares, free
        and clear of all Liens.  The aggregate purchase price for the Shares shall be an amount in cash equal to Two Million Five Hundred Thousand ($2,500,000) (the “Purchase Price”).

    Section 2.02 Closing of the
          Securities Purchase.  (A) Subject to Article V, the closing of the Securities Purchase (the “Closing”) shall be held at such time or date that is agreed to in writing by the Seller and the Company (the date on which the Closing
        occurs, the “Closing Date”).  The Closing shall be held at such place as the Seller and the Company shall mutually agree in writing.

    (B) At the Closing,
        or simultaneously therewith, the following shall occur:

    
      	
              (1)  

              

            	
              the Seller will deliver to the Company a certificate for the Shares, duly endorsed in blank or accompanied by stock powers duly endorsed in blank or
                other required instruments of transfer; and

            


    

    
      	
              (2)   

              

            	
              the Company will pay the aggregate Purchase Price to the Seller, by wire transfer in immediately available funds, to an account designated in writing
                by the Seller to the Company, such designation to be made not later than two Business Days prior to the Closing Date.

            


    

     

      

    ARTICLE III

    REPRESENTATIONS AND WARRANTIES

    Section 3.01 Representations and
          Warranties of the Company.  The Company hereby represents and warrants to the Seller as follows:

    (A) Existence and
          Power.  The Company is duly organized and validly existing as a corporation under the Laws of the State of Delaware and has all requisite power and authority to execute and deliver this Agreement and to consummate the transactions
        contemplated by this Agreement.

    (B) Authorization. 

        The execution and delivery of this Agreement, and the consummation by the Company of the transactions contemplated hereby, have been duly and validly approved by all necessary corporate action of the Company, and no other corporate or shareholder
        proceedings on the part of the Company are necessary to approve this Agreement or to consummate the transactions contemplated hereby.  This Agreement has been duly and validly executed and delivered by the Company, and (assuming the due
        authorization, execution and delivery of this Agreement by the Seller) this Agreement constitutes a valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as enforcement may be limited by
        general principles of equity whether applied in a court of law or a court of equity and by bankruptcy, insolvency and similar Laws affecting creditors’ rights and remedies generally.

     

      

     

      

    
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    (C) Non-Contravention. 

        Neither the execution and delivery of this Agreement nor the consummation by the Company of the transactions contemplated hereby will violate any provision of the certificate of incorporation or bylaws or similar governing documents of the Company
        or, assuming that the consents, approvals, filings and registrations referred to in Section 3.01(D) are received or made (as applicable), applicable Law.

    (D) Consents and
          Approvals.  Except for the prior written approval of the Federal Reserve Bank of Philadelphia for the Company to purchase the Shares from the Seller, no consents or approvals of, or filings or registrations with, any Governmental Entity or of
        or with any other third party by and on behalf of the Company are necessary in connection with the execution and delivery by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby.

    (E) Securities
          Matters.  The Shares are being acquired by the Company for its own account and without a view to the public distribution or sale of the Shares.

    (F) Availability
          of Funds.  The Company will have, as of the Closing, sufficient funds available to consummate the transactions contemplated hereunder.

    (G) CDFI
          Designation.  The Company is a certified “community development financial institution” designated as such under the Community Development Banking and Financial Institutions Act of 1994, as amended (12 U.S.C. Sections 4701 et seq.)

    ARTICLE IV
      

      

      COVENANTS

    Section 4.01 Forbearances of the
          Seller.  From the date hereof until the Closing, without the prior written consent of the Company, the Seller will not:

    (A) directly or
        indirectly transfer, sell, assign, distribute, exchange, pledge, hypothecate, mortgage, encumber or otherwise dispose of, or engage in or enter into any hedging transactions with respect to, any of the Shares or any portion thereof or interest
        therein (other than pursuant to the Securities Purchase); or

    (B) agree, commit to
        or enter into any agreement to take any of the actions referred to in Section 4.01(A).

    Notwithstanding the foregoing, the Seller may undertake any of the actions set forth in Section 4.01(A) with an Affiliate of the Seller so long as this
      Agreement is assigned to such Affiliate in accordance with Section 7.07 of this Agreement.  For the avoidance of doubt, until the Closing, except as expressly set forth in this Section 4.01, the Seller shall continue to be able to
      exercise all rights and privileges with respect to the Shares.

     

    

     

    

    
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    Section 4.02 Further Action. 
        The Seller and the Company (A) shall each execute and deliver, or shall cause to be executed and delivered, such documents and other instruments and shall take, or shall cause to be taken, such further action as may be reasonably necessary to carry
        out the provisions of this Agreement and give effect to the transactions contemplated by this Agreement and (B) shall refrain from taking any actions that could reasonably be expected to impair, delay or impede the Closing or the consummation of
        the transactions contemplated by this Agreement.

    Section 4.03 Remaining
          Certification and Disclosure Requirements.  The Company acknowledges and agrees to comply with the certification and disclosure requirements set forth in the Compensation Regulations, including without limitation those submissions that are
        required with respect to the final portion of the Relevant Period (see, for example, Sections 30.7(c) and (d), Sections 30.11(b) and (c) and Section 30.15(a)(3) of the Compensation Regulations and FAQ-14 in the Frequently Asked Questions to the
        Compensation Regulations, available at www.financialstability.gov).

    Section 4.04 Transferability
          Restrictions Related to Long-Term Restricted Stock.  The Company acknowledges that any long-term restricted stock (as defined in Section 30.1 of the Compensation Regulations) awarded by the Company that has otherwise vested may not become
        transferable, or payable in the case of a restricted stock unit, at any time earlier than as permitted under the schedule set forth in the definition of long-term restricted stock in Section 30.1 of the Compensation Regulations.  For this purpose,
        aggregate financial assistance received (for purposes of the definition of long-term restricted stock) includes the full original liquidation amount with respect to 18,980 shares of the Company’s Fixed Rate Convertible Perpetual Preferred Stock,
        Series B (see FAQ-15 in the Frequently Asked Questions to the Compensation Regulations, available at www.financialstability.gov).  Upon the sale of the Shares to the Company, in the event that any long-term restricted stock awarded by the Company
        is not permitted to become transferable, or payable in the case of a restricted stock unit, under the schedule set forth in the definition of long-term restricted stock in Section 30.1 of the Compensation Regulations, the Company shall cancel such
        long-term restricted stock and/or restricted stock units.

    Section 4.05 Executive Compensation. 

        The Company shall not take any action that will result in, nor will the Company permit, directly or indirectly, the acceleration, vesting, enhancement or increase in the payments or benefits that would otherwise become due as a result of the
        consummation of the transactions contemplated in this Agreement to any current or former executive officers of the Company.

    ARTICLE V
      

      

      CONDITIONS TO THE CLOSING

    Section 5.01 Conditions to Each
          Party’s Obligations.  The respective obligations of the Company and the Seller to consummate the Securities Purchase are subject to the fulfillment, or written waiver by the Company and the Seller, prior to the Closing, of each of the
        following conditions:

     

      

     

      

    
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    (A) Company
          Regulatory Approvals.  All regulatory approvals required to consummate the Securities Purchase shall have been obtained and shall remain in full force and effect and all statutory waiting periods in respect thereof shall have expired or been
        terminated.

    (B) No Injunctions
          or Restraints; Illegality.  No order, injunction or decree issued by any court or agency of competent jurisdiction or other legal restraint or prohibition preventing the consummation of the Securities Purchase shall be in effect.  No Law
        shall have been enacted, entered, promulgated or enforced by any Governmental Entity which prohibits or makes illegal the consummation of the Securities Purchase.

    Section 5.02 Condition to
          Obligations of the Seller.  The obligation of the Seller to consummate the Securities Purchase is also subject to the fulfillment, or written waiver by the Seller, prior to the Closing, of the following conditions:

    (A) Other Events. 

        None of the following shall have occurred since the date hereof:

    
      	
              (1)   

              

            	
              the Company or any of its Subsidiaries shall have (a) dissolved (other than pursuant to a consolidation, amalgamation or merger); (b) become insolvent
                or unable to pay its debts or failed or admitted in writing its inability generally to pay its debts as they become due; (c) made a general assignment, arrangement or composition with or for the benefit of its creditors; (d) instituted or
                have instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors’ rights, or have a petition presented for its
                winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition shall have resulted in a judgment of insolvency or bankruptcy or the entry of an order for relief
                or the making of an order for its winding-up or liquidation; (e) had a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger); (f) sought or shall have
                become subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets; (g) had a secured party take possession of
                all or substantially all its assets or had a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets; (h) caused or shall have been subject to any
                event with respect to it which, under the applicable laws of any jurisdiction, had an analogous effect to any of the events specified in clauses (a) to (g) (inclusive); or (i) taken any action in furtherance of, or indicating its consent
                to, approval of, or acquiescence in, any of the foregoing acts;

            


    

    
      	
              (2)   

              

            	
              a Governmental Entity in any jurisdiction shall have (a) commenced an action or proceeding against the
                Company or any of its Subsidiaries; or (b) issued or entered a temporary restraining order, preliminary or permanent injunction or other order applicable to the Company or any of its Subsidiaries, which in the case of (a) and (b) shall have
                had or shall be reasonably expected to have a Company Material Adverse Effect;

            


    

    
       

      

       

      

       

      

       

      

      
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              (3)   

              

            	
              any fact, circumstance, event, change, occurrence, condition or development shall have occurred that, individually or in the aggregate, shall have had
                or shall be reasonably likely to have a Company Material Adverse Effect; or

            


    

    
      	
              (4)   

              

            	
              any Regulatory Event not otherwise existing on the date hereof.

            


    

    (B) Representations

          and Warranties.  The representations and warranties set forth in Article III of this Agreement shall be true and correct as though made on and as of the Closing Date.

    (C) Consents and
          Approvals.  All consents and approvals of, and filings and registrations with, all Governmental Entities and of or with any other third party by and on behalf of the Company that are necessary in connection with the execution and delivery by
        the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby shall have been obtained or made, as applicable, and shall remain in full force and effect.

    (D) Performance of
          Obligations.  The Company shall have performed in all material respects all obligations required to be performed by it under this Agreement at or prior to the Closing.

    (E) Closing
          Certificate.  The Company shall have delivered to the Seller a certificate, dated as of the Closing Date, signed on behalf of the Company by a senior executive officer thereof certifying to the effect that all conditions precedent to the
        Closing have been satisfied.

    ARTICLE VI
      

      

      TERMINATION

    Section 6.01 Termination Events. 

        This Agreement may be terminated at any time prior to the Closing:

    (A) by mutual written
        agreement of the Company and the Seller;

    (B) by the Company,
        upon written notice to the Seller, or by the Seller, upon written notice to the Company, in the event that the Closing Date does not occur on or before August 6, 2020; provided, however, that the respective rights to terminate this
        Agreement pursuant to this Section 6.01(B) shall not be available to any party whose failure to fulfill any obligation under this Agreement shall have been the cause of, or shall have resulted in, the failure of the Closing Date to occur on
        or prior to such date; or

    (C) by the Seller or
        the Company if there shall be in effect a final non-appealable order of a Governmental Entity of competent jurisdiction restraining, enjoining or otherwise prohibiting the consummation of the transactions contemplated hereby.

     

      

    Section 6.02 Effect of
          Termination.  In the event of termination of this Agreement as provided in Section 6.01, this Agreement shall forthwith become void and have no effect, and none of the Seller, the Company, any affiliates of the Seller or the Company
        or any officers, directors or employees of the Seller, Company or any of their respective affiliates shall have any liability of any nature whatsoever hereunder, or in connection with the transactions contemplated hereby, except that this Section

          6.02 and Sections 7.03, 7.04, 7.05 and 7.06 shall survive any termination of this Agreement.

     

      

     

      

    
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    ARTICLE VII
      

      

      MISCELLANEOUS

    Section 7.01 Waiver; Amendment. 

        (A) Any provision of this Agreement may be (A) waived in writing by the party benefiting by the provision, or (B) amended or modified at any time by an agreement in writing signed by each of the parties hereto.  Neither any failure nor any delay by
        any party in exercising any right, power or privilege under this Agreement or any of the documents referred to in this Agreement will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power
        or privilege will preclude any other or further exercise of such right, power or privilege.

    Section 7.02 Counterparts. 
        This Agreement may be executed by facsimile or other electronic means and in counterparts, all of which shall be considered an original and one and the same agreement and shall become effective when counterparts have been signed by each of the
        parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart.

    Section 7.03 Governing Law; Choice
          of Forum; Waiver of Jury Trial.  (A) This Agreement and any claim, controversy or dispute arising under or related to this Agreement, the relationship of the parties, and/or the interpretation and enforcement of the rights and duties of the
        parties shall be enforced, governed, and construed in all respects (whether in contract or in tort) in accordance with the federal law of the United States if and to the extent such law is applicable, and otherwise in accordance with the laws of
        the State of New York applicable to contracts made and to be performed entirely within such State.  Each of the parties hereto agrees (a) to submit to the exclusive jurisdictions and venue of the United States District Court of the District of
        Columbia and the United States Court of Federal Claims for any and all civil actions, suits or proceedings arising out of or relating to this Agreement or the transactions contemplated hereby, and (b) that notice may be served upon (i) the Company
        at the address and in the manner set forth for notices to the Company in Section 7.05 and (ii) the Seller at the address and in the manner set forth for notices to the Seller in Section 7.05, but otherwise in accordance with federal
        law.

    (B) To the extent permitted by applicable Law, each of the parties hereto hereby unconditionally waives trial by jury in any civil legal action or proceeding relating to this Agreement or the transactions contemplated hereby.

    Section 7.04 Expenses.  If
        requested by the Seller, the Company shall pay all reasonable out of pocket and documented costs and expenses associated with this Agreement and the transactions contemplated by this Agreement, including, but not limited to, the reasonable fees,
        disbursements and other charges of the Seller’s legal counsel and financial advisors.

     

      

     

      

    
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    Section 7.05 Notices.  All
        notices and other communications hereunder shall be in writing and shall be deemed given on the date of delivery if delivered personally or telecopied (upon telephonic confirmation of receipt), on the first Business Day following the date of
        dispatch if delivered by a recognized next day courier service, or on the third Business Day following the date of mailing if delivered by registered or certified mail, return receipt requested, postage prepaid.  All notices hereunder shall be
        delivered as set forth below or pursuant to such other instructions as may be designated in writing by the party to receive such notice:

    If to the Company to:

      

      Carver Bancorp, Inc.

      75 West 125th Street

      New York, NY 10027

      Attention: Michael Pugh, President and Chief Executive Officer

    With a copy to:

      

      Luse Gorman PC

      5335 Wisconsin Avenue NW

      Washington, D.C.  20015

      Telephone: (202) 274-2037

      Facsimile:  (202) 362-2902

      Attention:  Larry Spaccasi

    If to the Seller to:

      

      United States Department of the Treasury

      Office of Financial Stability

      1500 Pennsylvania Avenue, NW, Room 2312

      Washington, D.C.  20220

      Facsimile:  (202) 622-2882

      Attention:  Assistant General Counsel (Banking and Finance)

    With a copy to:

      

      Cadwalader, Wickersham & Taft LLP

      200 Liberty Street

      New York, New York 10281

      Facsimile:  (212) 504-6666

      Attention:  William P. Mills

    Section 7.06 Entire Understanding;
          No Third Party Beneficiaries.  This Agreement (together with the documents, agreements and instruments referred to herein) represents the entire understanding of the parties with respect to the subject matter hereof and supersedes any and all
        other oral or written agreements heretofore made with respect to the subject matter hereof.  Nothing in this Agreement, expressed or implied, is intended to confer upon any person, other than the parties hereto, any rights or remedies hereunder.

     

      

     

      

    
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    Section 7.07 Assignment. 
        Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof shall be assignable by any party hereto without the prior written consent of the other party, and any attempt to assign any right, remedy,
        obligation or liability hereunder without such consent shall be null and void; provided, however, that the Seller may assign this Agreement to an Affiliate of the Seller.  If the Seller assigns this Agreement to an Affiliate, the
        Seller shall be relieved of its obligations and liabilities under this Agreement but (i) all rights, remedies, obligations and liabilities of the Seller hereunder shall continue and be enforceable by and against and assumed by such Affiliate, (ii)
        the Company’s obligations and liabilities hereunder shall continue to be outstanding and (iii) all references to the Seller herein shall be deemed to be references to such Affiliate.  The Seller will give the Company notice of any such assignment;
        provided, that the failure to provide such notice shall not void any such assignment.

    Section 7.08 Severability.  Any
        term or provision of this Agreement which is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or
        unenforceability without rendering invalid, illegal or unenforceable the remaining terms and provisions of this Agreement or affecting the validity, legality or enforceability of any of the terms or provisions of this Agreement in any other
        jurisdiction, and if any provision of this Agreement is determined to be so broad as to be unenforceable, the provision shall be interpreted to be only so broad as is enforceable, in all cases so long as neither the economic nor legal substance of
        the transactions contemplated hereby is affected in any manner materially adverse to any party or its shareholders.  Upon any such determination, the parties shall negotiate in good faith in an effort to agree upon a suitable and equitable
        substitute provision to effect the original intent of the parties.

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      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above
        written.

      

      

      	 	
              CARVER BANCORP, INC.

            
	 	 
	 	 
	 	
              By:     /s/ Michael Pugh

            
	 	
              Name:  Michael Pugh

            
	 	
              Title:  President and Chief Executive Officer

            
	 	 
	 	 
	 	
              UNITED STATES DEPARTMENT OF THE TREASURY

            
	 	 
	 	 
	 	
              By:     /s/ Danielle Christensen

            
	 	
              Name:  Danielle Christensen

            
	 	
              Title:  Acting Director, Office of Financial Stability

            


      

      

    

    

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  
    [Signature Page to Securities Purchase Agreement]