Exhibit 10.1


 





$50,000,000


 


Peapack-Gladstone
Financial Corporation


COMMON
STOCK


NO PAR
VALUE PER SHARE


 


SALES AGENCY AGREEMENT


 


October 23, 2014


 


Sandler O’Neill & Partners, L.P.


1251 Avenue of the Americas


New York, New York 10020


 


Ladies and Gentlemen:


 


Peapack-Gladstone
Financial Corporation, a bank holding company organized under the laws of the State of New Jersey (the “Company”)
confirms its agreement (this “Agreement”) with Sandler O’Neill & Partners, L.P. (the “Agent”
or “you”), as follows:


1.          The
Company proposes, subject to the terms and conditions stated herein, to sell from time to time through the Agent, shares of the
common stock, no par value per share (“Common Stock”) of the Company, having an aggregate gross sales price
of up to $50,000,000 (the “Shares”) on the terms set forth in this Agreement. The Company agrees that whenever
it determines to sell the Common Stock directly to the Agent, as principal or otherwise other than as set forth in Section 3 hereof,
it will enter into a separate agreement, which will include customary terms and conditions consistent with the representations,
warranties and provisions in this Agreement and which will be agreed upon by the parties thereto (each, a “Terms Agreement”).


The Company has
filed, in accordance with the provisions of the Securities Act of 1933, as amended, and the rules and regulations thereunder (collectively,
the “1933 Act”), with the Securities and Exchange Commission (the “Commission”) a registration
statement on Form S-3 (File No. 333-198299), including a base prospectus relating to the Common Stock, including the Shares to
be issued from time to time by the Company, and which incorporates by reference documents that the Company has filed or will file
in accordance with the provisions of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder
(collectively, the “1934 Act”). The Company has prepared a prospectus supplement (the “Prospectus Supplement”)
to the base prospectus included as part of such registration statement, which Prospectus Supplement specifically relates to the
sale of the Shares pursuant to an “at the market” offering as defined in Rule 415 of the 1933 Act. The Company will
furnish to the Agent, for use by the Agent, copies of the prospectus included as part of such registration statement, as supplemented
by the Prospectus Supplement. Except where the context otherwise requires, such registration statement, as amended when it became
effective, including all documents filed as part thereof or incorporated by reference therein, and including any information contained
in a Prospectus (as defined below) subsequently filed with the Commission pursuant to Rule 424(b) under the 1933 Act or deemed
to be a part of such registration statement pursuant to Rule 430B of the Act, is herein referred to as the “Registration
Statement.” The base prospectus, including all documents incorporated therein by reference, included in the Registration
Statement, as it may be supplemented by the Prospectus Supplement, in the form in which such prospectus and/or Prospectus Supplement
have most recently been filed by the Company with the Commission pursuant to Rule 424(b) under the 1933 Act is herein referred
to as the “Prospectus.” Any reference herein to the Registration Statement, the Prospectus or any amendment
or supplement thereto shall be deemed to refer to and include the documents incorporated by reference therein, and any reference
herein to the terms “amend,” “amendment” or “supplement” with respect to the Registration Statement
or the Prospectus shall be deemed to refer to and include the filing after the execution hereof of any document with the Commission
deemed to be incorporated by reference therein. For purposes of this Agreement, all references to the Registration Statement, the
Prospectus or to any amendment or supplement thereto shall be deemed to include any copy filed with the Commission via the Commission’s
Electronic Data-Gathering, Analysis and Retrieval system (“EDGAR”).



    	 



    	 



    




As used in this
Agreement:


“Applicable
Time” means, with respect to any Shares, the time of sale of such Shares pursuant to this Agreement or any relevant Terms
Agreement.


“General
Disclosure Package” means any Issuer General Use Free Writing Prospectuses and the Prospectus.


“Issuer
Free Writing Prospectus” means any “issuer free writing prospectus,” as defined in Rule 433 under the 1933
Act, relating to the Shares in the form filed or required to be filed with the Commission or, if not required to be filed, in the
form retained in the Company’s records pursuant to Rule 433(g) under the 1933 Act.


“Issuer
General Use Free Writing Prospectus” means any Issuer Free Writing Prospectus that is intended for general distribution
to prospective investors, as evidenced by its being specified in Schedule II to this Agreement.


“Issuer
Limited-Use Free Writing Prospectus” means any Issuer Free Writing Prospectus that is not an Issuer General Use Free
Writing Prospectus.


2.             The
Company represents and warrants as of the date hereof, each Representation Date (as defined in Section 6(n) below), each Applicable
Time (as defined in Section 1 above) referred to herein, and each Delivery Date (as defined in Section 3(i) below), and agrees
with Agent that:


(a)          Compliance
with Registration Requirements. Each of the Registration Statement and any post-effective amendment thereto have been prepared
by the Company in conformity with the requirements of the 1933 Act. The Company meets all conditions and requirements for the use
of Form S-3 to register the offer and sale of the Shares in accordance with the General Instruction I.B.6 of Form S-3. No stop
order suspending the effectiveness of the Registration Statement or any post-effective amendment thereto has been issued under
the 1933 Act, no order preventing or suspending the use of the Prospectus has been issued and no proceedings for any of those purposes
have been instituted or are pending or, to the knowledge of the Company, contemplated. The Company has complied with each request,
if any, from the Commission for additional information.


Each of the Registration
Statement and any post-effective amendment thereto, at the time it became effective, at each Applicable Time and each Delivery
Date, complied and will comply in all material respects with the requirements of the 1933 Act. The Prospectus and each amendment
or supplement thereto, as of their respective issue dates, complied and will comply, in all material respects with the 1933 Act.
The copies of the Registration Statement and any Rule 462(b) Registration Statement (as defined in Section 2(d) below) and any
amendments thereto, each Issuer Free Writing Prospectus that is required to be filed with the Commission pursuant to Rule 433 and
the Prospectus and any amendments or supplements thereto delivered to the Agent for use in connection with the offering of the
Shares were or will be substantially identical to the electronically transmitted copies thereof filed with the Commission pursuant
to EDGAR, except to the extent permitted by Regulation S-T.



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(b)          Accurate
Disclosure. Neither the Registration Statement nor any post-effective amendment thereto, at the respective times it became
effective, at each Applicable Time or each Delivery Date, contained, contains or will contain an untrue statement of a material
fact or omitted, omits or will omit to state a material fact required to be stated therein or necessary to make the statements
therein not misleading. At each Applicable Time and at any Delivery Date, neither (A) the General Disclosure Package nor (B) any
individual Issuer Limited-Use Free Writing Prospectus, when considered together with the General Disclosure Package, included,
includes or will include an untrue statement of a material fact or omitted, omits or will omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. Neither
the Prospectus nor any amendment or supplement thereto (including any prospectus wrapper), as of its issue date, at the time of
any filing with the Commission pursuant to Rule 424(b), at any Applicable Time or Delivery Date, included, includes or will include
an untrue statement of a material fact or omitted, omits or will omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading.


The documents incorporated
by reference in the Registration Statement, the Prospectus and the General Disclosure Package, when they were filed with the Commission
conformed in all material respects to the requirements of the 1934 Act, and none of such documents contained any untrue statement
of a material fact or omitted to state a material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading; and any further documents so filed and incorporated by reference in the Registration
Statement, the Prospectus or the General Disclosure Package, when such documents are filed with the Commission, will conform in
all material respects to the requirements of the 1934 Act and will not contain any untrue statement of a material fact or omit
to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading. The Company filed the Registration Statement with the Commission before using any free writing prospectus and each
free writing prospectus was preceded or accompanied by the Prospectus satisfying the requirements of Section 10 under the 1933
Act.


The representations
and warranties in this Section 2(b) shall not apply to statements in or omissions from the Registration Statement (or any amendment
thereto), the General Disclosure Package or the Prospectus (or any amendment or supplement thereto) made in reliance upon and in
conformity with the Agent Information (as defined in Section 9(a) below).


(c)          Issuer
Free Writing Prospectuses. No Issuer Free Writing Prospectus conflicts or will conflict with the information contained in the
Registration Statement or the Prospectus, or other prospectus deemed to be a part thereof that has not been superseded or modified.
Each Issuer Free Writing Prospectus conformed or will conform in all material respects to the requirements of the 1933 Act on the
date of first use, and the Company has complied with any filing requirements applicable to such Issuer Free Writing Prospectus
pursuant to the 1933 Act. The Company has not made any offer relating to the Shares that would constitute an Issuer Free Writing
Prospectus without the prior written consent of the Agent; provided, that such consent is deemed to have been given with respect
to each Issuer Free Writing Prospectus identified on Schedule II. The Company has retained in accordance with the 1933 Act all
Issuer Free Writing Prospectuses that were not required to be filed pursuant to the 1933 Act.


The first sentence
of this Section 2(c) shall not apply to the Agent Information.


(d)          Due
Registration of the Shares. The sale of the Shares has been duly registered under the 1933 Act pursuant to the Registration
Statement. The Registration Statement has become effective under the 1933 Act, or, with respect to any registration statement to
be filed to register the offer and sale of the Shares pursuant to Rule 462(b) under the 1933 Act (a “Rule 462(b) Registration
Statement”), will be filed with the Commission and become effective under the 1933 Act prior to the time of any sale
of Shares pursuant to such Rule 462(b) Registration Statement.



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(e)          Not
Ineligible Issuer. At the time of filing the Registration Statement and any post-effective amendment thereto, and at the date
hereof, the Company is not an “ineligible issuer,” as defined in Rule 405, without taking account of any determination
by the Commission pursuant to Rule 405 that it is not necessary that the Company be considered an ineligible issuer.


(f)          Independent
Accountants. Crowe Horwath LLP, the accountants who certified the financial statements and supporting schedules included in
the Registration Statement, the General Disclosure Package, and the Prospectus are independent public accountants with respect
to the Company as required by the 1933 Act and the Public Company Accounting Oversight Board.


(g)          Financial
Statements; Non-GAAP Financial Measures. The financial statements together with the related schedules and notes thereto of
the Company and its consolidated subsidiaries included or incorporated by reference in the Registration Statement, the General
Disclosure Package and the Prospectus comply in all material respects with the applicable requirements of the 1933 Act and 1934
Act, as applicable, and present fairly the financial position of the entities purported to be shown thereby (including the Company’s
consolidated subsidiaries) as of the dates indicated and the results of their operations and the changes in their cash flows for
the periods specified; such financial statements have been prepared in conformity with generally accepted accounting principles
as applied in the U.S. (“GAAP”) applied on a consistent basis throughout the periods covered thereby, and the
supporting schedules included in the Registration Statement present fairly the information required to be stated therein; and the
selected financial data and the summary financial information included or incorporated by reference in the Registration Statement,
the General Disclosure Package and the Prospectus have been derived from the accounting records of the Company and its consolidated
subsidiaries and present fairly the information shown therein and have been compiled on a basis consistent with that of the audited
financial statements included or incorporated by reference in the Registration Statement. Except as included therein, no historical
or pro forma financial statements or supporting schedules are required to be included or incorporated by reference in the Registration
Statement, the General Disclosure Package or the Prospectus under the 1933 Act or the 1934 Act. All disclosures contained in the
Registration Statement, the General Disclosure Package or the Prospectus regarding “non-GAAP financial measures” (as
such term is defined by the rules and regulations of the Commission) comply in all material respects with Regulation G of the 1934
Act and Item 10 of Regulation S-K of the 1933 Act, to the extent applicable.


(h)          No
Material Adverse Change in Business. Except as otherwise stated in the Registration Statement, the General Disclosure Package
and the Prospectus, since the respective dates as of which information is given in the Registration Statement, the General Disclosure
Package or the Prospectus, (A) there has been no material adverse change in or affecting the properties described in the Registration
Statement, General Disclosure Package and the Prospectus as owned or leased by the Company (each, a “Property”
and collectively, the “Properties”) or in the business, condition (financial or otherwise), results of operations,
stockholders’ equity, as applicable, earnings or business affairs of the Company and their direct and indirect subsidiaries
(each a “Subsidiary” and collectively the “Subsidiaries”) as one enterprise, whether or not
arising in the ordinary course of business (a “Material Adverse Effect”); (B) there have been no transactions
entered into by the Company or the Subsidiaries, other than those in the ordinary course of business, which are material with respect
to the Company and the Subsidiaries considered as one enterprise, (C) there has been no liability or obligation, direct or contingent
(including off-balance sheet obligations), which is material to the Company and the Subsidiaries considered as one enterprise,
incurred by the Company or any of the Subsidiaries, except obligations incurred in the ordinary course of business, and (D) there
has been no non-cash distribution of any kind declared, paid or made by the Company on any class of capital stock or other form
of ownership interests in the Company.



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(i)          Incorporation
and Good Standing of the Company. The Company is a registered bank holding company under the Bank Holding Company Act of 1956,
as amended, and is a corporation duly organized, validly existing and in good standing under the laws of the State of New Jersey
and is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or
the ownership or leasing of property requires such qualification, except where the failure to so qualify or be in good standing
does not have, and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.


(j)          Good
Standing of the Bank. Peapack-Gladstone Bank (the “Bank”) has been duly chartered and is validly existing
as a state chartered commercial bank in good standing under the laws of the State of New Jersey, with power and authority (as a
state chartered commercial bank) to own its properties and conduct its business as described in each of the Registration Statement,
the General Disclosure Package or the Prospectus.


(k)          Significant
Subsidiaries. Except as set forth on Schedule 2(k), none of the Subsidiaries meets the definition of a “significant subsidiary
(as such term is defined in Rule 1-02 of Regulation S-X). Each of the Subsidiaries set forth on Schedule 2(k) (the “Significant
Subsidiaries”) has been duly organized and is validly existing in good standing under the laws of the jurisdiction of
its organization, with power and authority (corporate and other) to own, lease and operate its properties and conduct its business
as described in each of the General Disclosure Package and the Prospectus, and has been duly qualified as a foreign corporation
for the transaction of business and is in good standing under the laws of each other jurisdiction in which it owns, leases or operates
properties or conducts any business so as to require such qualification, except where the failure to so qualify or be in good standing
does not have, and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect; all of
the issued shares of capital stock of each Significant Subsidiary have been duly authorized and validly issued and are fully paid
and nonassessable and are owned, directly or through other Subsidiaries of the Company, by the Company, free and clear of any pledge,
lien, encumbrance, or claim.


(l)          Authorization
and Description of the Common Stock. The Company has authorized Common Stock as set forth in each of the General Disclosure
Package and the Prospectus under the caption “Description of Common Stock,” and all of the outstanding shares of Common
Stock of the Company have been duly and validly authorized and issued, are fully paid and nonassessable, and have been issued in
compliance with federal and state securities laws and conform to the description of the Common Stock contained in each of the General
Disclosure Package and the Prospectus under the caption “Description of Common Stock”; and no such shares were issued
in violation of the preemptive or similar rights of any security holder of the Company. The certificates to be used to represent
any certificated Shares are in due and proper form and comply in all material respects with all applicable legal requirements,
the requirements of the charter and bylaws of the Company and the requirements of the NASDAQ Global Market (the “NASDAQ”).


(m)          Authorization
and Description of the Shares. The Shares have been duly authorized for issuance and sale by the Company through the Agent
pursuant to this Agreement and, when duly executed, authenticated, issued and delivered against payment therefor as provided herein,
will be validly issued, fully paid and nonassessable. The issuance of Shares is not subject to the preemptive or other similar
rights of any securityholder of the Company. The Shares conform in all material respects to all statements relating thereto contained
in the Registration Statement, the General Disclosure Package and the Prospectus and such description conforms in all material
respects to the rights set forth in the instruments defining the same. No holder of Shares will be subject to personal liability
by reason of being such a holder. Any certificates to be used to evidence the Shares will, at any Delivery Date, be in due and
proper form and will comply in all material respects with all applicable legal requirements, the requirements of the Certificate
of Incorporation and Bylaws of the Company, and the requirements of the NASDAQ.



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(n)          Authorization
and Description of this Agreement. This Agreement has been duly authorized, executed and delivered by the Company and, when
duly executed and delivered in accordance with its terms by the other parties thereto, constitutes, as the case may be, a valid
and binding agreement of the Company, enforceable against the Company in accordance with its terms. The Agreement conforms in all
material respects to all statements relating thereto contained in the Registration Statement, the General Disclosure Package and
the Prospectus and such description conforms in all material respects to the terms set forth in the Agreement.


(o)          Warrants,
Options and Registration Rights. Except as disclosed in the Registration Statement, the General Disclosure Package and the
Prospectus (A) there are no outstanding rights (contractual or otherwise), warrants or options to acquire, or instruments convertible
into or exchangeable for, or agreements or understandings with respect to the sale or issuance of, any shares of capital stock
of or other equity interest in the Company, other than in the ordinary course of business, consistent with past practice, under
the Company’s equity compensation programs and (B) no person has the right to require the Company or any of the Subsidiaries
to register any securities for sale under the 1933 Act by reason of the filing of the Registration Statement with the Commission
or the issuance and sale of the Shares.


(p)          Absence
of Violations, Defaults and Conflicts. Neither of the Company nor any of the Subsidiaries is (A) in violation of its certificate
of incorporation or charter, as applicable, by-laws, or other organizational document, as applicable, (B) in default in the performance
or observance of any obligation, agreement, covenant or condition contained in any contract, indenture, mortgage, deed of trust,
loan or credit agreement, note, lease, hotel management agreement, franchise agreement or other agreement or instrument to which
the Company or any of the Subsidiaries is a party or by which it or any of them may be bound or to which any of the Properties
or any other properties or assets of the Company or any of the Subsidiaries is subject (collectively, “Agreements and
Instruments”), except for such defaults that would not, singly or in the aggregate, result in a Material Adverse Effect,
or (C) in violation of any law, statute, rule, regulation, judgment, order, writ or decree of any arbitrator, court, governmental
body, regulatory body, administrative agency or other authority, body or agency having jurisdiction over the Company or any of
the Subsidiaries or the Properties or any of their respective other properties, assets or operations (each, a “Governmental
Entity”), except for such violations that would not, singly or in the aggregate, result in a Material Adverse Effect.


(q)          Issuance
and Execution. The issuance and sale of the Shares, the execution, delivery and performance of this Agreement by the Company
and the consummation of the transactions contemplated hereby and in the Registration Statement, the General Disclosure Package
and the Prospectus and compliance by the Company with its obligations hereunder have been duly authorized by all necessary corporate
action, as applicable, and, except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus,
do not and will not, whether with or without the giving of notice or passage of time or both, conflict with or constitute a breach
of, or default or Repayment Event (as defined below) under, or result in the creation or imposition of any lien, charge or encumbrance
upon the Properties or any of the Subsidiaries pursuant to, the Agreements and Instruments except for such conflicts, breaches,
defaults or Repayment Events or liens, charges or encumbrances that would not, singly or in the aggregate, result in a Material
Adverse Effect), nor will such action result in any violation of (i) the provisions of the articles of incorporation or charter,
as applicable, by-laws or other organizational document, as applicable, of the Company or any of the Subsidiaries or (ii) any applicable
law, statute, rule, regulation, judgment, order, writ or decree of any Governmental Entity, except in the case of clause (ii) only,
for any such violation that would not, singly or in the aggregate, result in a Material Adverse Effect. As used herein, a “Repayment
Event” means any event or condition which gives the holder of any note, debenture or other evidence of indebtedness (or
any person acting on such holder’s behalf) the right to require the repurchase, redemption or repayment of all or a portion
of such indebtedness by the Company or any of the Subsidiaries.



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(r)          Absence
of Labor Dispute. No labor dispute with the employees of the Company or any of the Subsidiaries exists or, to the knowledge
of the Company, is imminent, which, in any such case, would, singly or in the aggregate, result in a Material Adverse Effect.


(s)          Absence
of Proceedings. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, there
is no action, suit, proceeding, inquiry or investigation pending, or, to the knowledge of the Company, threatened, against or affecting
the Company or any of the Subsidiaries, which is required to be disclosed in the Registration Statement or the Prospectus (other
than as disclosed therein), or which would, singly or in the aggregate, result in a Material Adverse Effect, or which would materially
and adversely affect the property or assets of the Company and the Subsidiaries, taken as a whole, or the consummation of the transactions
contemplated in this Agreement, or the performance by the Company of its obligations hereunder. The aggregate of all pending legal
or governmental proceedings to which the Company or any of the Subsidiaries is a party or of which any of the Properties or assets
is the subject which are not described in the Registration Statement, the General Disclosure Package and the Prospectus, including
ordinary routine litigation incidental to the business, would not result in a Material Adverse Effect.


(t)          Accuracy
of Exhibits. There are no contracts or other documents required to be described in the Prospectus or to be filed as exhibits
to the Registration Statement which have not been described or filed as required.


(u)          Absence
of Further Requirements. No filing with, or authorization, approval, consent, license, order, registration, qualification or
decree of, any Governmental Entity is necessary or required for the performance by the Company of its obligations hereunder or
in connection with the offering, issuance or sale of the Shares hereunder or the consummation of the transactions contemplated
by this Agreement, except such as have been already obtained or as may be required under the 1933 Act, the rules of the NASDAQ,
the securities laws or real estate syndication laws of any applicable U.S. state or jurisdiction or the rules of the Financial
Industry Regulatory Authority, Inc. (“FINRA”).


(v)          Possession
of Licenses and Permits. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus,
the Company and the Subsidiaries possess such permits, licenses, approvals, consents and other authorizations (collectively, “Governmental
Licenses”) issued by the appropriate Governmental Entities necessary to conduct the business now operated by them, except
where the failure so to possess would not, singly or in the aggregate, result in a Material Adverse Effect. The Company and the
Subsidiaries are in compliance with the terms and conditions of all such Governmental Licenses, except where the failure so to
comply would not, singly or in the aggregate, result in a Material Adverse Effect. All of the Governmental Licenses are valid and
in full force and effect, except when the invalidity of such Governmental Licenses or the failure of such Governmental Licenses
to be in full force and effect would not, singly or in the aggregate, result in a Material Adverse Effect. Except as disclosed
in the Registration Statement, the General Disclosure Package and the Prospectus, neither the Company nor any of the Subsidiaries
has received any notice of proceedings relating to the revocation or modification of any such Governmental Licenses which, singly
or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would result in a Material Adverse Effect.



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(w)          Possession
of Intellectual Property. The Company and the Subsidiaries own or possess, or can acquire on reasonable terms, adequate patents,
patent rights, licenses, inventions, copyrights, know-how (including trade secrets and other unpatented and/or unpatentable proprietary
or confidential information, systems or procedures), trademarks, service marks, trade names or other intellectual property (collectively,
“Intellectual Property”) reasonably necessary, if any, to conduct the business now operated by them, and neither
the Company nor any of the Subsidiaries has received any notice or is otherwise aware of any infringement of or conflict with asserted
rights of others with respect to any Intellectual Property or of any facts or circumstances which would render any Intellectual
Property invalid or inadequate to protect the interest of the Company or any of the Subsidiaries therein, and which infringement
or conflict (if the subject of any unfavorable decision, ruling or finding) or invalidity or inadequacy, singly or in the aggregate,
would reasonably be expected to result in a Material Adverse Effect.


(x)          Environmental
Laws. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus and except as would
not, singly or in the aggregate, be reasonably expected to result in a Material Adverse Effect, (A) none of the Company, any of
the Subsidiaries nor any of the Properties is in violation of any Environmental Laws (as defined below), (B) the Company, the Subsidiaries,
the Related Entities and the Properties have all permits, authorizations and approvals required under any applicable Environmental
Laws and are each in compliance with their requirements, (C) there are no now pending or threatened administrative, regulatory
or judicial actions, suits, demands, demand letters, claims, liens, notices of noncompliance or violation, investigation or proceedings
relating to any Environmental Law or Hazardous Material (as defined below) against the Company or any of the Subsidiaries or otherwise
with regard to the Properties, (D) there are no events or circumstances that would reasonably be expected to form the basis of
an order for clean-up or remediation, or an action, suit or proceeding by any private party or governmental body or agency, against
or affecting the Properties, the Company or any of the Subsidiaries relating to Hazardous Materials or any Environmental Laws,
and (E) none of the Properties is included or proposed for inclusion on the National Priorities List issued pursuant to CERCLA
(as defined below) by the United States Environmental Protection Agency or on any similar list or inventory issued by any other
federal, state or local governmental authority having or claiming jurisdiction over such properties pursuant to any other Environmental
Laws. As used herein, “Hazardous Material” shall mean any flammable explosives, radioactive materials, chemicals,
pollutants, contaminants, wastes, hazardous wastes, toxic substances, mold, and any hazardous material as defined by or regulated
under any Environmental Law, including, without limitation, petroleum or petroleum products, and asbestos-containing materials.
As used herein, “Environmental Law” shall mean any applicable foreign, federal, state or local law (including
statute or common law), ordinance, rule, regulation or judicial or administrative order, consent decree or judgment relating to
the protection of human health, the environment (including, without limitation, ambient air, surface water, groundwater, land surface
or subsurface strata) or wildlife, including, without limitation, the Comprehensive Environmental Response, Compensation and Liability
Act of 1980, as amended, 42 U.S.C. Secs. 9601-9675 (“CERCLA”), the Hazardous Materials Transportation Act, as
amended, 49 U.S.C. Secs. 5101-5127, the Solid Waste Disposal Act, as amended, 42 U.S.C. Secs. 6901-6992k, the Emergency Planning
and Community Right-to-Know Act of 1986, 42 U.S.C. Secs. 11001-11050, the Toxic Substances Control Act, 15 U.S.C. Secs. 2601-2692,
the Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. Secs. 136-136y, the Clean Air Act, 42 U.S.C. Secs. 7401-7671q,
the Clean Water Act (Federal Water Pollution Control Act), 33 U.S.C. Secs. 1251-1387, and the Safe Drinking Water Act, 42 U.S.C.
Secs. 300f-300j-26, as any of the above statutes may be amended from time to time, and the regulations promulgated pursuant to
any of the foregoing.


(y)          Utilities
and Access. To the knowledge of the Company, water, stormwater, sanitary sewer, electricity, and telephone service are all
available at the property lines of each Property over duly dedicated streets or perpetual easements of record benefiting the applicable
Property. To the knowledge of the Company, each of the Properties has legal access to public roads and all other roads necessary
for the use of each of the Properties.



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(z)          No
Condemnation. The Company has no knowledge of any pending or threatened condemnation proceedings, zoning change or other proceeding
or action that will materially affect the use or value of any of the Properties.


(aa)          Accounting
Controls and Disclosure Controls. The Company maintains systems of internal control over financial reporting (as defined in
Rule 13a-15 and Rule 15d-15 under the 1934 Act) and a system of internal accounting controls (or operate under the Company’s
system of internal accounting controls) sufficient to provide reasonable assurances that: (A) transactions are executed in accordance
with management’s general or specific authorization; (B) transactions are recorded as necessary to permit preparation of
financial statements in conformity with GAAP and to maintain accountability for assets; (C) access to assets is permitted only
in accordance with management’s general or specific authorization; and (D) the recorded accountability for assets is compared
with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Except as described
in the Registration Statement, the General Disclosure Package and the Prospectus, since the date of the Company’s most recent
audited financial statements included or incorporated by reference in the Registration Statement, the General Disclosure Package
and the Prospectus, there has been (1) no material weakness in the Company’s internal control over financial reporting (whether
or not remediated) and (2) no change in the Company’s internal control over financial reporting that has adversely affected,
or is reasonably likely to adversely affect, the Company’s internal control over financial reporting. The auditors of the
Company and the Audit Committee of the Board of Directors of the Company, have been advised of: (i) all significant deficiencies
and material weaknesses in the design or operation of internal control over financial reporting that have adversely affected, or
are reasonably likely to adversely affect, the ability of the Company and the Subsidiaries to record, process, summarize and report
financial information; and (ii) any fraud, whether or not material, that involves management or other employees who have a significant
role in the internal control over financial reporting of the Company and the Subsidiaries. The Company and the Subsidiaries have
established a system of disclosure controls and procedures (as defined in Rules 13a-15 and 15d-15 of the 1934 Act) that are designed
to ensure that information required to be disclosed by the Company in the reports that it files or submits under the 1934 Act is
recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms, and
is accumulated and communicated to the Company’s management, including its principal executive officer or officers and principal
financial officer or officers, as appropriate, to allow timely decisions regarding disclosure.


(bb)          Compliance
with Laws. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, the Company
and its subsidiaries are conducting their respective businesses in compliance with all statutes, laws, rules, regulations, judgments,
decisions, directives, orders and decrees of the Commission (including, without limitation, the Sarbanes-Oxley Act of 2002 and
the rules and regulations promulgated in connection therewith, including Section 402 related to loans and Sections 302 and 906
related to certifications) and any other agency (including, without limitation, all regulations and orders of, or agreements with,
the Board of the Federal Reserve system and the New Jersey Department of Banking and Insurance) applicable to them, except where
the failure to so comply would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.
The Company is in compliance in all material respects with the applicable rules and regulations of NASDAQ.


(cc)          Payment
of Taxes. All United States federal income tax returns of the Company and the Subsidiaries required by law to be filed have
been filed, and all taxes shown by such returns or otherwise assessed, which are due and payable, have been paid, except assessments
against which appeals have been or will be promptly taken and as to which adequate reserves have been provided. The Company and
the Subsidiaries have filed all other tax returns that are required to have been filed by them pursuant to applicable foreign,
state, local or other law except insofar as the failure to file such returns would not, singly or in the aggregate, result in a
Material Adverse Effect, and all taxes shown by such returns or otherwise assessed, which are due and payable, have been paid,
except assessments against which appeals have been or will be promptly taken and as to which adequate reserves have been provided.
The charges, accruals and reserves on the books of the Company and the Subsidiaries in respect of any tax liability for any years
not finally determined are adequate to meet any assessments or re-assessments for additional tax for any years not finally determined,
except to the extent of any inadequacy that would not, singly or in the aggregate, result in a Material Adverse Effect.



    	9



    	 



    




(dd)          ERISA.
The Company is in compliance in all material respects with all applicable provisions of the Employee Retirement Income Security
Act of 1974, as amended, including the regulations and published interpretations thereunder (“ERISA”). No “reportable
event” (as defined in ERISA) has occurred with respect to any “pension plan” (as defined in ERISA)
for which the Company would have any liability. The Company has not incurred nor expects to incur liability under (i) Title IV
of ERISA with respect to termination of, or withdrawal from, any “pension plan” or (ii) Sections 412, 403, 431, 432
or 4971 of the Internal Revenue Code of 1986, as amended (the “Code”). Each “pension plan” for which
the Company would have any liability that is intended to be qualified under Section 401(a) of the Code is so qualified in all material
respects and nothing has occurred thereunder, whether by action or by failure to act, which would cause the loss of such qualification,
except where the failure to be so qualified would not, singly or in the aggregate, result in a Material Adverse Effect.


(ee)          Business
Insurance. The Company and the Subsidiaries carry or are entitled to the benefits of insurance, with financially sound and
reputable insurers, in such amounts and covering such risks as is generally maintained by companies of established repute engaged
in the same or similar business, and all such insurance is in full force and effect. The Company has no reason to believe that
they or any of the Subsidiaries will not be able to (A) renew, if desired, its existing insurance coverage as and when such policies
expire or (B) obtain comparable coverage from similar institutions as may be necessary or appropriate to conduct its business as
now conducted and at a cost that would not, singly or in the aggregate, result in a Material Adverse Effect. Neither the Company
nor any of the Subsidiaries has been denied any insurance coverage which they have sought or for which they have applied.


(ff)          [Reserved].


(gg)          Investment
Company Act. Each of the Company and its Subsidiaries is not and, after giving effect to the offering and sale of the Shares,
and after receipt of payment for the Shares and the application of such proceeds as described in each of the General Disclosure
Package and the Prospectus, will not be required, to register as an “investment company” under the Investment Company
Act of 1940, as amended.


(hh)          Absence
of Manipulation. Neither the Company nor any of the Subsidiaries or other affiliates has taken or will take, directly or indirectly,
any action which is designed, or would reasonably be expected, to cause or result in, or which constitutes, the stabilization or
manipulation of the price of any security of the Company to facilitate the sale or resale of the Shares.


(ii)          Foreign
Corrupt Practices Act. Neither the Company nor the Subsidiaries nor, to the knowledge of the Company or the Subsidiaries, any
director, officer, agent, employee, affiliate or other person acting on behalf of either of the Company or the Subsidiaries is
aware of or has taken any action, directly or indirectly, that would result in a violation by such persons of the Foreign Corrupt
Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”), including, without
limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer,
payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization
of the giving of anything of value to any “foreign official” (as such term is defined in the FCPA) or any foreign political
party or official thereof or any candidate for foreign political office, in contravention of the FCPA. Each of the Company and
the Subsidiaries, and to the knowledge of the Company, its affiliates have conducted their businesses in material compliance with
the FCPA and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue
to ensure, continued compliance therewith.



    	10



    	 



    




(jj)          Money
Laundering Laws. The operations of each of the Company and the Subsidiaries are and have been conducted at all times in compliance
with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970,
as amended, the money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related
or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental Entity (collectively, the “Money
Laundering Laws”). No action, suit or proceeding, to the knowledge of the Company, inquiry or investigation by or before
any Governmental Entity involving the Company or any of the Subsidiaries with respect to the Money Laundering Laws is pending and,
to the knowledge of the Company, no such action suit, proceeding, inquiry or investigation is threatened.


(kk)          OFAC.
None of the Company, any of the Subsidiaries or, to the knowledge of the Company, any director, officer, agent, employee, affiliate
or other person acting on behalf of either of the Company or any of the Subsidiaries is currently subject to any U.S. sanctions
administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”). The Company
will not directly or indirectly use the proceeds of the offering of the Shares, or lend, contribute or otherwise make available
such proceeds to any of the Subsidiaries, joint venture partners or other persons, for the purpose of financing the activities
of any person currently subject to any U.S. sanctions administered by OFAC.


(ll)          Statistical
and Market-Related Data. Any statistical and market related data included in the Registration Statement, the General Disclosure
Package or the Prospectus are based on or derived from sources that the Company believes to be reliable and accurate in all material
respects.


(mm)          Approval
of Listing. The Shares have been approved for listing for quotation on the NASDAQ, subject to official notice of issuance.


(nn)          Distributions.
Except as prohibited by law or as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, neither
the Company nor any Subsidiary thereof is prohibited, directly or indirectly, from making any distributions to its respective shareholders,
from making any other distribution on any of its equity interests or from repaying any loans or advances made by the Company or
any of the Subsidiaries.


(oo)          Finder’s
Fees. Except as disclosed in the Prospectus, the Company have not incurred any liability for any finder’s fees or similar
payments in connection with the transactions contemplated in this Agreement, except as may otherwise exist with respect to the
Agent pursuant to this Agreement.


(pp)          Certain
Relationships. No relationship, direct or indirect, exists between or among either of the Company or any Subsidiary on the
one hand, and the directors, officers, stockholders, customers or suppliers of the Company or any Subsidiary, on the other, that
is required by the 1933 Act to be described in each of the General Disclosure Package and the Prospectus or by the rules and regulations
of the Commission thereunder and that is not so described.



    	11



    	 



    




(qq)          [Reserved].


(rr)          Accurate
Disclosure in the Prospectus. The statements in the Prospectus under the headings “Prospectus Supplement Summary,”
“Description of Common Stock,” and “Plan of Distribution,” insofar as such statements summarize legal matters,
agreements, documents or proceedings discussed therein, are accurate and fair summaries of such legal matters, agreements, documents
or proceedings in all material respects.


(ss)          Material
Lending or Other Relationship. Except as described in the Prospectus, the Company (A) has no material lending or other relationship
with any bank or lending affiliate of the Agent or (B) does not intend to use any of the proceeds from the sale of the Shares hereunder
to repay any outstanding debt owed to any affiliate of the Agent.


(tt)          Off-Balance
Sheet Transactions. Except as described in each of the General Disclosure Package and the Prospectus, there are no material
off-balance sheet transactions, arrangements, obligations (including contingent obligations), or any other relationships with unconsolidated
entities or other persons, that may reasonably be expected to have a material current or future effect on the Company’s financial
condition, changes in financial condition, results of operations, liquidity, capital expenditures, capital resources or significant
components of revenues or expenses.


(uu)          Forward-Looking
Statements. The information contained in the Registration Statement, the Prospectus and any Issuer Free Writing Prospectus
that constitutes “forward-looking” information within the meaning of Section 27A of the 1933 Act and Section 21E of
the 1934 Act were made by the Company on a reasonable basis and reflect the Company’s good faith belief or estimate of the
matters described therein.


(vv)          Certificates.
Any certificate signed by any officer of the Company and delivered to the Agent or counsel for the Agent in connection with the
sale of the Shares contemplated hereby shall be deemed a representation and warranty by the Company to the Agent and shall be deemed
to be a part of this Section 2 and incorporated herein by this reference.


(ww)          [Reserved].


(xx)          Deposit
Accounts. The deposit accounts of the Bank are insured up to the applicable limits by the Federal Deposit Insurance Corporation
(the “FDIC”).


(yy)          Bank
Regulatory Matters. Except as described in the Prospectus, neither the Company nor any of its Subsidiaries is subject or is
party to, or has received any notice or advice that any of them may become subject or party to any investigation with respect to,
any corrective, suspension or cease-and-desist order, agreement, consent agreement, memorandum of understanding or other regulatory
enforcement action, proceeding or order with or by, or is a party to any commitment letter or similar undertaking to, or is subject
to any directive by, or has been a recipient of any supervisory letter (including, without limitation, any notification from the
Federal Reserve Board (the “FRB”) of a proposal to increase the minimum capital requirements of the Company
or any of its subsidiaries, pursuant to the FRB’s authority under 12 U.S.C. 3907(a)(2)) from, or has adopted any board resolutions
at the request of, any other agency that currently relates to or restricts in any material respect the conduct of their business
or that in any manner relates to their capital adequacy, credit policies or management (each, a “Regulatory Agreement”),
nor has the Company or any of its subsidiaries been advised by any other agency that it is considering issuing or requesting any
such Regulatory Agreement. There is no unresolved violation, criticism or exception by any other agency with respect to any report
or statement relating to any examinations of the Company or any of its subsidiaries which, in the reasonable judgment of the Company,
is expected to result in a Material Adverse Effect. The application of the proceeds received by the Company from the issuance,
sale and delivery of the Securities as described in the Registration Statement, and the Prospectus, will not violate Regulation
T, U or X of the Board of the Federal Reserve System or any other regulation of such Board.



    	12



    	 



    




(zz)          No
Other Materials. The Company has not distributed and, prior to the later to occur of (i) the Applicable Time and (ii) completion
of the distribution of the Shares, will not distribute any prospectus (as such term is defined in the 1933 Act and the rules and
regulations promulgated by the Commission thereunder) in connection with the offering and sale of the Shares other than the Registration
Statement, the General Disclosure Package, and the Prospectus or other materials, if any, permitted by the 1933 Act or by the rules
and regulations promulgated by the Commission thereunder and approved by the Agent.


(aaa)          Reportable
Transactions. Neither the Company nor any of the Subsidiaries has participated in any reportable transaction, as defined in
Treasury Regulation Section 1.6011-4(b)(1).


(bbb)          Outstanding
Voting Stock. As of the close of trading on NASDAQ on the Trading Day (as defined in Section 3(b) below) immediately prior
to the date of this Agreement, the aggregate market value of the outstanding voting stock of the Company held by persons other
than affiliates (as defined in Rule 405 of the 1933 Act) of the Company was equal to approximately $143,813,424.


(ccc)          Affiliation
with FINRA Member Firm. Except as disclosed to the Dealer Manager, no officer or director of the Company, nor, to the knowledge
of the Company, any record or beneficial owner of 5% or more of the Company's securities, is associated or affiliated (directly
or indirectly) with any firm that is a member of FINRA.


3.             (a)          On
the basis of the representations, warranties and agreements herein contained and subject to the terms and conditions set forth
herein, upon the Agent’s acceptance of the terms of a Placement Notice (as defined in Section 3(b) below) or such other instructions
provided by the Company to the Agent pursuant to Section 3(b) or upon receipt by the Agent of an Acceptance (as defined in Section
3(c) below), as the case may be, and unless the sale of the Placement Shares (as defined in Section 3(b) below) as described therein
has been declined, suspended or otherwise terminated in accordance with the terms of this Agreement, the Company agrees to issue
and sell through the Agent, as sales agent, and the Agent agrees, subject to the limitations and provisions in this Section 3 or
as may otherwise be agreed to between the parties from time to time, to use its commercially reasonable efforts consistent with
its normal trading and sales practices to sell as sales agent for the Company, the Shares. Sales of the Shares, if any, through
the Agent acting as sales agent will be made by means of ordinary brokers’ transactions or otherwise at market prices prevailing
at the time of sale, at prices related to prevailing market prices or at negotiated prices.


(b)          The
Shares are to be sold on a daily basis or otherwise as shall be agreed to by the Company and the Agent on any day that is a trading
day for the NASDAQ (other than a day on which NASDAQ is scheduled to close prior to its regular weekday closing time) (each, a
“Trading Day”), and the Company has instructed the Agent to make such sales. Prior to the commencement of the
offering, when the Company wishes to issue and sell the Shares hereunder, it will notify the Agent at least one or five (as applicable)
“business days,” as defined in Rule 100 of Regulation M (a “Regulation M Business Day”), prior to
the Trading Day on which sales are desired to commence by e-mail notice (or other method mutually agreed to in writing by the parties)
containing the parameters in accordance with which it desires the Shares to be sold, which shall at a minimum include the number
of Shares desired to be issued (the “Placement Shares”), a form of which containing such minimum sales parameters
necessary is attached hereto as Annex I (a “Placement Notice”). The Placement Notice shall originate from any
of the individuals from the Company set forth on Schedule I (with a copy to each of the other individuals from the Company listed
on such schedule), and shall be addressed to each of the individuals from the Agent as shall be set forth in a written notice from
the Agent to the Company from time to time. On any Trading Day that the Company wishes to issue and sell the Shares hereunder (each,
a “Placement”), the Company may instruct the Agent by telephone (confirmed promptly by telecopy or email, which
confirmation will be promptly acknowledged by the Agent), or such other method mutually agreed to in writing by the parties, as
to the maximum number of Shares to be sold by the Agent on such day (in any event not in excess of the number available for sale
under the Prospectus and the currently effective Registration Statement) and the minimum price per Share at which such Shares may
be sold. For purposes of this Agreement, whenever a party is required to take action or refrain from taking action one or five
Regulation M Business Days prior to a particular date, the determination as to whether the applicable period shall be one or five
Regulation M Business Days will depend on whether, at the particular time in question, the applicable “restricted period,”
as defined in Rule 100 of Regulation M, for the Shares is one or five Regulation M Business Days.



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(c)          If
the Agent wishes to accept such proposed terms included in the Placement Notice (which it may decline to do for any reason in its
sole discretion) or, following discussion with the Company, wishes to accept amended terms, the Agent will, prior to 4:30 p.m.
(New York City Time) on the business day following the business day on which such Placement Notice is delivered to the Agent, issue
to the Company a notice by e-mail (or other method mutually agreed to in writing by the parties) addressed to all of the individuals
from the Company and Agent set forth on Schedule I) setting forth the terms that the Agent is willing to accept. Where the terms
provided in the Placement Notice are amended as provided for in the immediately preceding sentence, such terms will not be binding
on the Company or the Agent until the Company delivers to the Agent an acceptance by e-mail (or other method mutually agreed to
in writing by the parties) of all of the terms of such Placement Notice, as amended (the “Acceptance”), which
e-mail shall be addressed to all of the individuals from the Company and the Agent set forth on Schedule I. The Placement Notice
(as amended by the corresponding Acceptance, if applicable) shall be effective upon receipt by the Company of the Agent’s
acceptance of the terms of the Placement Notice or upon receipt by the Agent of the Company’s Acceptance, as the case may
be, unless and until (i) the entire amount of the Placement Shares set forth in the Placement Notice has been sold, (ii) the Company
issues a subsequent Placement Notice with parameters superseding those on the earlier dated Placement Notice, (iii) this Agreement
has been terminated under the provisions of Section 10 or (iv) either party shall have suspended the sale of the Placement Shares
in accordance with the terms of this Agreement. It is expressly acknowledged and agreed that neither the Company nor the Agent
will have any obligation whatsoever with respect to a Placement or any Placement Shares unless and until the Company delivers a
Placement Notice to the Agent and either (x) the Agent accepts the terms of such Placement Notice or (y) where the terms of such
Placement Notice are amended, the Company accepts such amended terms by means of an Acceptance pursuant to the terms set forth
above, and then only upon the terms specified in the Placement Notice (as amended by the corresponding Acceptance, if applicable)
and herein. In the event of a conflict between the terms of this Agreement and the terms of a Placement Notice (as amended by the
corresponding Acceptance, if applicable), the terms of the Placement Notice (as amended by the corresponding Acceptance, if applicable)
will control.


(d)          Notwithstanding
the foregoing, the Company shall not authorize the issuance and sale of, and the Agent shall not be obligated to use its commercially
reasonable efforts to sell, any Shares (i) at a price lower than the minimum price therefor authorized from time to time, or (ii)
in a number in excess of the aggregate number of shares or gross sale price of Shares authorized from time to time to be issued
and sold under this Agreement, in each case, by the Company’s board of directors (the “Board”) or a duly
authorized committee or subcommittee thereof (the “Designated Subcommittee”), and notified to the Agent in writing.
In addition, the Company or the Agent may, upon notice to the other party hereto by telephone (confirmed promptly by e-mail to
those individuals specified on Schedule I), suspend or terminate the offering of the Shares for any reason and at any time; provided,
however, that such suspension or termination shall not affect or impair the parties’ respective obligations with respect
to the Shares sold hereunder or which an investor has agreed to purchase but which have not been delivered by the Company and paid
for by such investor as contemplated hereby, prior to the giving of such notice.



    	14



    	 



    




(e)          Under
no circumstances shall the aggregate gross sale price or number of Shares sold pursuant to this Agreement exceed the aggregate
gross sale price or number of shares, as the case may be, of Common Stock (i) set forth in paragraph 1 of this Agreement, (ii)
available for issuance under the Prospectus and the then currently effective Registration Statement or (iii) authorized from time
to time to be issued and sold under this Agreement by the Board or the Designated Subcommittee and notified to the Agent in writing.
In addition, under no circumstances shall any Shares be sold at a price lower than the minimum price therefor authorized from time
to time by the Board or the Designated Subcommittee and notified to the Agent in writing. Notwithstanding anything to the contrary
contained herein (other than the following sentence), the parties hereto agree that compliance with the limitations set forth in
this Section 3(e) regarding the aggregate offering price of the Shares issued and sold under this Agreement shall be the sole responsibility
of the Company, and the Agent shall have no obligation in connection with such compliance. The Agent covenants and agrees not to
make any sales of the Shares on behalf of the Company other than as permitted by the terms of this Agreement.


(f)          Subject
to the terms of the Placement Notice (as amended by the corresponding Acceptance, if applicable) or such other instructions provided
by the Company to the Agent pursuant to Section 3(b), the Agent may sell Placement Shares by any method permitted by law deemed
to be an “at the market” offering as defined in Rule 415 of the 1933 Act, including without limitation sales made directly
on the NASDAQ, on any other existing trading market for the Common Stock or to or through a market maker. Subject to the terms
of the Placement Notice (as amended by the corresponding Acceptance, if applicable) or such other instruction provided by the Company
to the Agent pursuant to Section 3(b), the Agent may also sell Placement Shares by any other method permitted by law, including
but not limited to privately negotiated transactions subject to the prior written approval of the Company. Notwithstanding anything
to the contrary herein and for a period of time beginning one or five Regulation M Business Days, as applicable, prior to the time
when the first sale pursuant to a Placement Notice occurs and continuing through the time such Placement Notice is in effect, the
Agent agrees that in no event will it or any of its affiliates engage in any market making, stabilization or other market or trading
activity with regard to the Shares if such activity would be prohibited under Regulation M or other anti-manipulation rules under
the 1933 Act or the 1934 Act.


(g)          The
compensation payable to the Agent for sales of Shares shall be equal to 2.85% of the gross sales price of the Shares; provided,
however, that such rate of compensation shall not apply when the Agent acts pursuant to a Terms Agreement, provided further, that
in no event shall the compensation payable to the Agent exceed 8.0% of the gross sales price of the Shares. The remaining proceeds,
after further deduction for any transaction fees, transfer taxes or other similar fees, taxes or charges imposed by any federal,
state, local or other governmental, regulatory or self-regulatory organization in respect of such sales, shall constitute the net
proceeds to the Company for such Shares (the “Net Proceeds”). The Agent shall notify the Company as promptly
as practicable if any deduction described in the preceding sentence will be required.


(h)          The
Agent shall provide written confirmation (which may be by e-mail) to the Company following the close of trading on the NASDAQ each
day on which Shares are sold under this Agreement setting forth the number of Shares sold on such day, the gross sales prices of
the Shares, the Net Proceeds to the Company and the compensation payable by the Company to the Agent under this Agreement with
respect to such sales.



    	15



    	 



    




(i)          Settlement
for sales of Shares will occur on the third business day that is also a Trading Day following the trade date on which such sales
are made, unless another date shall be agreed to by the Company and the Agent (each such day, a “Delivery Date”).
On each Delivery Date, the Shares sold through the Agent for settlement on such date shall be delivered by the Company to the Agent
against payment of the Net Proceeds from the sale of such Shares. Settlement for all Shares shall be effected by book-entry delivery
of Shares to the Agent’s account at The Depository Trust Company against payment by the Agent of the Net Proceeds from the
sale of such Shares in same day funds delivered to an account designated by the Company. If the Company or its transfer agent (if
applicable) shall default on its obligation to deliver Shares on any Delivery Date, the Company shall (A) indemnify and hold the
Agent harmless against any loss, claim or damage arising from or as a result of such default by the Company and (B) pay the Agent
any commission to which it would otherwise be entitled absent such default. If the Agent breaches this Agreement by failing to
deliver the applicable Net Proceeds on any Delivery Date for Shares delivered by the Company, the Agent will pay the Company interest
based on the effective overnight federal funds rate until such proceeds, together with such interest, have been fully paid.


(j)          The
Company agrees that any offer to sell, any solicitation of an offer to buy, or any sales of Shares or any other equity security
of the Company shall only be effected by or through the Agent, from the period beginning one or five Regulation M Business Days,
as applicable, prior to the time when the first sale pursuant to a Placement Notice occurs and continuing through the time such
Placement Notice is in effect; provided, however, that the foregoing limitation shall not apply to (i) exercise of any option,
warrant, right, unit or any conversion privilege set forth in the instrument governing such security or any other security of the
Company or the Subsidiaries (ii) sales solely to employees or security holders of the Company or the Subsidiaries, or to a trustee
or other person acquiring such securities for the accounts of such persons; or (iii) sales by the private wealth management division
of the Bank in non-discretionary transactions.


(k)          The
Company consents to the Agent trading in the Common Stock for the Agent’s own account and for the account of its clients
at the same time as sales of the Shares occur pursuant to this Agreement or pursuant to a Terms Agreement.


(l)          The
Company acknowledges and agrees that (i) there can be no assurance that the Agent will be successful in selling the Shares, (ii)
the Agent may not solicit any offers to buy the Shares, (iii) the Agent will incur no liability or obligation to the Company or
any other person or entity if it does not sell the Shares for any reason other than a failure by the Agent to use its commercially
reasonable efforts consistent with its normal trading and sales practices to sell such Shares as required under this Section 3,
subject to the limitations and provisions in this Section 3 or as may otherwise be agreed to between the parties from time to time
and (iv) the Agent shall be under no obligation to purchase Shares on a principal basis pursuant to this Agreement, except as otherwise
agreed by the Agent and the Company in a Terms Agreement.


(m)          At
each Applicable Time, each Delivery Date, each Representation Date, the Company shall be deemed to have affirmed each representation,
warranty, covenant and other agreement contained in this Agreement.


4.            Alternative
Arrangements.


(a)          If
the Company wishes to issue and sell the Shares other than as set forth in Section 3 of this Agreement (an “Alternative
Placement”), it will notify the Agent of the proposed terms of such Alternative Placement. If the Agent, acting as principal
or agent, wishes to accept such proposed terms (which it may decline to do for any reason in its sole discretion) or, following
discussions with the Company wishes to accept amended terms, the Agent and the Company will enter into a Terms Agreement, setting
forth the terms of such Alternative Placement.



    	16



    	 



    




(b)          The
terms set forth in a Terms Agreement will not be binding on the Company or the Agent unless and until the Company and the Agent
have each executed such Terms Agreement accepting all of the terms of such Terms Agreement. In the event of a conflict between
the terms of this Agreement and the terms of a Terms Agreement, the terms of such Terms Agreement will control.


5.            Notwithstanding
any other provision of this Agreement, (i) the Company shall not offer or sell, or request the offer or sale of, any Shares, (ii)
the Company, by notice to the Agent given by telephone (confirmed promptly by e-mail), shall cancel any instructions for the offer
or sale of Shares, and (iii) the Agent shall not be obligated to offer or sell any Shares, (x) unless otherwise agreed to in writing
by the parties hereto (which agreement may be contained in a Placement Notice or in such other instructions provided by the Company
to the Agent pursuant to Section 3(b)) during any period in which the Company’s insider trading policy, as it exists on the
date of this Agreement, would prohibit the purchases or sales of the Company’s Common Stock by its officers or directors,
or (y) at any time or during any period that the Company is in possession of material non-public information. For purposes of this
Section 5, references to “twenty-four (24) hours” shall exclude any hours in a day that is not a business day.


6.            The
Company agrees with the Agent as follows:


(a)          The
Company will prepare the Prospectus in a form approved by the Agent and file such Prospectus pursuant to Rule 424(b) under the
1933 Act on or prior to the date that is one business day following the date hereof unless otherwise agreed to by the Agent and
will make no further amendment or any supplement to the Registration Statement or Prospectus (other than through any documents
incorporated therein by reference) which shall be reasonably disapproved by the Agent promptly after reasonable notice thereof;
to advise the Agent, promptly after it receives notice thereof, of the time when any amendment to the Registration Statement has
been filed or becomes effective or any supplement to the Prospectus or any amended Prospectus has been filed and during the Prospectus
Delivery Period (defined as such period of time after the first date of the public offering of the Shares as in the opinion of
counsel for the Agent a prospectus relating to the Shares is required by law to be delivered (or required to be delivered but for
Rule 172 under the 1933 Act) in connection with sales of the Shares) to furnish the Agent with copies thereof; to advise the Agent,
promptly after it receives notice thereof, of the issuance by the Commission of any stop order or of any order preventing or suspending
the use of any Issuer Free Writing Prospectus or Prospectus, of the suspension of the qualification of the Shares for offering
or sale in any jurisdiction, of the initiation or threatening of any proceeding for any such purpose, or of any request by the
Commission for the amending or supplementing of the Registration Statement, any Issuer Free Writing Prospectus or Prospectus or
for additional information; and, in the event of the issuance of any stop order or of any order preventing or suspending the use
of any Issuer Free Writing Prospectus or Prospectus or suspending any such qualification, promptly to use its commercially reasonable
efforts to obtain the withdrawal of such order.


(b)          The
Company will, during any period when the delivery of a prospectus is required in connection with the offering or sale of Shares
(including, without limitation, pursuant to Rule 173(d) of the 1933 Act), if any event shall have occurred as a result of which
the Prospectus as then amended or supplemented would include an untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading,
or, if for any other reason it shall be necessary to amend or supplement the Prospectus (including, without limitation, any document
incorporated by reference therein) in order to comply with the 1933 Act or the 1934 Act, notify the Agent and, upon its request,
file such document and prepare and furnish without charge to the Agent as many copies as the Agent may from time to time reasonably
request of an amended or supplemented Prospectus (or incorporated document, as the case may be) that will correct such statement
or omission or effect such compliance. Upon such notification, the Agent will cease selling the Shares on the Company’s behalf
pursuant to this Agreement and suspend the use of the Prospectus until such amendment or supplement is filed; provided, however,
that such suspension or termination shall not affect or impair the parties’ respective obligations with respect to the Shares
sold hereunder or which an investor has agreed to purchase but which has not been delivered by the Company and paid for by such
investor as contemplated hereby, prior to the giving of such notice.



    	17



    	 



    




(c)          The
Company represents and agrees that, unless it obtains the prior written consent of the Agent, and the Agent represents and agrees
that, unless it obtains the prior written consent of the Company, it has not made and will not make any offer relating to the Shares
that would constitute an “issuer free writing prospectus,” as defined in Rule 433 under the 1933 Act, or that would
otherwise constitute a “free writing prospectus,” as defined in Rule 405 under the 1933 Act, required to be filed with
the Commission. Any such free writing prospectus consented to by the Company and the Agent is hereinafter referred to as a “Permitted
Free Writing Prospectus.” The Company represents that it has treated or agrees that it will treat each Permitted Free
Writing Prospectus as an “issuer free writing prospectus,” as defined in Rule 433, and has complied and will comply
with the requirements of Rule 433 applicable to any Permitted Free Writing Prospectus, including timely filing with the Commission
where required, legending and record keeping. The Company represents that it has satisfied the conditions in Rule 433 to avoid
a requirement to file with the Commission any electronic road show.


(d)          Promptly
from time to time to take such action as the Agent may reasonably request to qualify the Shares for offering and sale under the
securities laws of such jurisdictions as the Agent may request and to comply with such laws so as to permit the continuance of
sales and dealings therein in such jurisdictions for as long as may be necessary to complete the distribution of the Shares, provided
that in connection therewith the Company shall not be required to qualify as a foreign corporation or to file a general consent
to service of process in any jurisdiction.


(e)          During
the period in which a prospectus is required to be delivered under the 1933 Act or the 1934 Act in connection with any sale of
Shares (including, without limitation, pursuant to Rule 173(d) of the 1933 Act), to furnish the Agent with copies of the Prospectus
or a supplement to the Prospectus in New York City in such quantities as the Agent may from time to time reasonably request.


(f)          [Reserved].


(g)          [Reserved].


(h)          [Reserved].


(i)          To
use the net proceeds received by it from the sale of the Shares pursuant to this Agreement in substantially the manner specified
in each of the General Disclosure Package and the Prospectus under the caption “Use of Proceeds”.


(j)          To
use its reasonable best efforts to list for quotation the Shares on the NASDAQ.


(k)          To
file with the Commission such information on Form 10-K or Form 10-Q as may be required by Rule 463 under the 1933 Act.



    	18



    	 



    




(l)          To
comply, and to use its reasonable best efforts to cause the Company’s directors and officers, in their capacities as such,
to comply, in all material respects, with all effective applicable provisions of the Sarbanes-Oxley Act and the rules and regulations
thereunder.


(m)          The
Company will reasonably cooperate on a timely basis with any reasonable due diligence request from, or review conducted by, the
Agent or its counsel from time to time in connection with the transactions contemplated hereby, including, without limitation,
and upon reasonable notice, providing information and making available documents and appropriate corporate officers, during regular
business hours and at the Company’s principal offices and/or by telephone, as the Agent or its counsel may reasonably request
(each such process, a “Due Diligence Process”).


(n)          Upon
commencement of the offering of Shares under this Agreement, promptly after each (i) date the Registration Statement or the Prospectus
shall be amended or supplemented (other than (1) by an amendment or supplement providing solely for the determination of the terms
of the Shares, (2) in connection with the filing of any report or other document under Section 13, 14 or 15(d) of the 1934 Act
or (3) by a prospectus supplement relating to the offering of other securities (including, without limitation, other shares of
Common Stock)) (each such date, a “Registration Statement Amendment Date”), (ii) date on which the Company shall
file (x) an Annual Report on Form 10-K, Quarterly Report on Form 10-Q or a Current Report on Form 8-K on which the Company shall
publicly announce its earnings, revenues or other results of operations (an “Earnings 8-K”) or (y) an amendment
to any such document (each such date, a “Company Periodic Report Date”) and, (iii) reasonable request by the
Agent; provided, that such request follows a Due Diligence Process (each date of any such request, a “Supplemental Request
Date”) (each of the date of the commencement of the offering of Shares under this Agreement and each Registration Statement
Amendment Date, Company Periodic Report Date and Supplemental Request Date is hereinafter referred to as a “Representation
Date”), the Company will furnish or cause to be furnished to the Agent (with a copy to counsel to the Agent) a certificate
dated such Representation Date (or, in the case of an amendment or supplement to the Registration Statement or the Prospectus (including,
without limitation, by the filing of an Annual Report on Form 10-K, Quarterly Report on Form 10-Q or Earnings 8-K or any amendment
thereto), the date of the effectiveness of such amendment to the Registration Statement or the date of filing with the Commission
of such supplement or any such Form 10-K, Form 10-Q, Earnings 8-K or amendment thereto, as the case may be), in a form reasonably
satisfactory to the Agent to the effect that the statements contained in the certificate referred to in Section 8(j) of this Agreement
which was last furnished to the Agent are true and correct as of the date of such certificate as though made at and as of the date
of such certificate (except that such statements shall be deemed to relate to the Registration Statement, the Prospectus and the
General Disclosure Package as amended and supplemented to the date of such certificate) or, in lieu of such certificate, a certificate
of the same tenor as the certificate referred to in Section 8(j), but modified as necessary to relate to the Registration Statement,
the Prospectus and the General Disclosure Package as amended and supplemented to the date of such certificate. As used in this
paragraph, to the extent there shall be an Applicable Time on or following the applicable Representation Date, “promptly”
shall be deemed to be on or prior to the next succeeding Applicable Time.


(o)          Upon
commencement of the offering of Shares under this Agreement, and promptly after each other Representation Date, the Company will
furnish or cause to be furnished to the Agent (with a copy to counsel to the Agent), unless the Agent otherwise agrees in writing,
the written opinion and letter of counsel to the Company, dated such Representation Date (or, in the case of an amendment or supplement
to the Registration Statement or the Prospectus (including, without limitation, by the filing of an Annual Report on Form 10-K
or Quarterly Report on Form 10-Q or any amendment thereto), the date of the effectiveness of such amendment to the Registration
Statement or the date of filing with the Commission of such supplement or any such Form 10-K, Form 10-Q or amendment thereto, as
the case may be), in a form and substance reasonably satisfactory to the Agent and its counsel, of the same tenor as the opinions
and letters referred to in Section 8(c) of this Agreement, but modified as necessary to relate to the Registration Statement, the
Prospectus and the General Disclosure Package as amended and supplemented to the date of such opinion and letter or, in lieu of
such opinion and letter, counsel last furnishing any such opinion and letter to the Agent shall furnish the Agent with a letter
substantially to the effect that the Agent may rely on such counsel’s last opinion and letter to the same extent as though
each were dated the date of such letter authorizing reliance (except that statements in such last opinion and letter shall be deemed
to relate to the Registration Statement, the Prospectus and the General Disclosure Package as amended and supplemented to the date
of such letter authorizing reliance). As used in this paragraph, to the extent there shall be an Applicable Time on or following
the applicable Representation Date, “promptly” shall be deemed to be on or prior to the next succeeding Applicable
Time. Solely for the purposes of this paragraph, the term “Representation Date” shall not include the date of filing
of any Earnings 8-K or any amendment thereto.



    	19



    	 



    




(p)          Upon
commencement of the offering of Shares under this Agreement, and promptly after each other Representation Date, the Company will
cause Crowe Horwath LLP, or other independent accountants reasonably satisfactory to the Agent, to furnish to the Agent (with a
copy to counsel to the Agent), unless the Agent otherwise agrees in writing, a letter, dated such Representation Date (or, in the
case of an amendment or supplement to the Registration Statement or the Prospectus (including, without limitation, by the filing
of an Annual Report on Form 10-K, Quarterly Report on Form 10-Q, Earnings 8-K or any amendment thereto), the date of the effectiveness
of such amendment to the Registration Statement or the date of filing with the Commission of such supplement or any such Form 10-K,
Form 10-Q, Earnings 8-K or any amendment thereto, as the case may be), in form reasonably satisfactory to the Agent and its counsel,
of the same tenor as the letter referred to in Section 8(e) hereof, but modified as necessary to relate to the Registration Statement,
the Prospectus and the General Disclosure Package as amended and supplemented to the date of such letter. As used in this paragraph,
to the extent there shall be an Applicable Time on or following the applicable Representation Date, “promptly” shall
be deemed to be on or prior to the next succeeding Applicable Time.


(q)          The
Company will not, and will cause the Subsidiaries not to, and use reasonable efforts to cause its affiliates and any person acting
on their behalf not to, directly or indirectly, (i) take any action designed to or that has constituted or that reasonably would
be expected to cause or result in the stabilization or manipulation of the price of any security of the Company or (ii) sell, bid
for or purchase the Shares to be issued and sold pursuant to this Agreement, or pay anyone any compensation for soliciting purchases
of the Shares to be issued and sold pursuant to this Agreement other than the Agent.


(r)          During
the pendency of any Placement Notice (as amended by the corresponding Acceptance, if applicable) given hereunder, (i) the Company
shall provide the Agent notice no less than one or five Regulation M Business Days, as applicable, before it or any of the Subsidiaries
or any person acting on their behalf, directly or indirectly, offers to sell, contracts to sell, sells, grants any option to sell
or otherwise disposes of any Common Stock (other than Placement Shares offered pursuant to the provisions of this Agreement) or
securities convertible into or exchangeable for Common Stock, warrants or any rights to purchase or acquire Common Stock; provided,
that no such restriction shall apply in connection with (1) the issuance, grant or sale of Common Stock, options to purchase Common
Stock or Common Stock issuable upon the exercise of options or other equity awards pursuant to any stock option, stock bonus or
other stock or compensatory plan or arrangement described in the Prospectus (the “Equity Plans”), (2) the issuance
or sale of Common Stock pursuant to any dividend reinvestment plan that the Company may adopt from time to time, provided the implementation
of such is disclosed to the Agent in advance; (ii) the Company shall not, and shall cause any affiliated purchasers (as defined
in Rule 100 of Regulation M) of the Company to not, bid for, purchase or induce any other persons to bid for or purchase Shares;
and (iii) the Company shall provide the Agent notice no less than one or five Regulation M Business Days, as applicable, before
it or any of the Subsidiaries or affiliates or any person acting on their behalf engages in any special selling efforts or selling
methods with regard to Shares, including but not limited to presenting at any investor conference or other similar meeting where
potential investors may be present.



    	20



    	 



    




(s)          During
the period beginning on the date hereof and ending on the later of the fifth anniversary of the Applicable Time or the date on
which the Agent receives full payment in satisfaction of any claim for indemnification or contribution to which they may be entitled
pursuant to Section 9 of this Agreement, the Company shall not, without the prior written consent of the Agent (which consent shall
not be unreasonably withheld, conditioned or delayed), take or permit to be taken any action that could result in the Common Stock
becoming subject to any security interest, mortgage, pledge, lien or encumbrance; provided, however, that this covenant shall be
null and void if any federal or state agency having jurisdiction over the Company, by regulation, policy statement or interpretive
release or by written order or written advice addressed to the Company and specifically addressing the provisions of Section 9
hereof, permits indemnification of the Agent by the Company as contemplated by such provisions.


(t)          Until
completion of the distribution of the Shares, the Company will file all documents required to be filed with the Commission pursuant
to the 1934 Act within the time periods required by the 1934 Act and the rules and regulations of the Commission thereunder.


7.            The
Company covenants and agrees with the Agent that the Company will pay or cause to be paid the following: (i) the reasonable out-of-pocket
expenses incurred by the Agent in connection with the transactions contemplated hereby (regardless of whether the sale of the Shares
is consummated other than (a) as a result of the refusal by the Agent to place the shares, (b) the Agent’s termination of
the Agreement without cause, or (iii) the Company’s termination of this Agreement upon the breach by the Agent), including,
without limitation, disbursements, fees and expenses of the Agent’s counsel, reasonably incurred (up to a maximum of $125,000),
and travel expenses; (ii) the fees, disbursements and expenses of the Company’s counsel and accountants in connection with
the registration of the Shares under the 1933 Act and all other expenses in connection with the preparation, printing and filing
of the Registration Statement, any Permitted Free Writing Prospectus and the Prospectus and amendments and supplements thereto
and the mailing and delivering of copies thereof to the Agent; (iii) the cost of printing or producing this Agreement, any Blue
Sky memorandum, closing documents (including any compilations thereof) and any other documents in connection with the offering,
purchase, sale and delivery of the Shares; (iv) all expenses in connection with the qualification of the Shares for offering and
sale under state securities laws as provided in Section 6(d) hereof, including the fees and disbursements of counsel for the Agent
in connection with such qualification and in connection with any Blue Sky memorandum (v) all fees and expenses in connection with
listing the Shares on NASDAQ; (vi) the filing fees incident to, and the fees and disbursements of counsel for the Agent in connection
with, securing any required review by FINRA of the terms of the sale of the Shares; (vii) the cost of preparing stock certificates;
(viii) the cost and charges of any transfer agent or registrar; and (ix) all other costs and expenses incident to the performance
of its obligations hereunder which are not otherwise specifically provided for in this Section.


8.            The
obligations of the Agent hereunder shall be subject, in its sole discretion, to the condition that all representations and warranties
and other statements of the Company herein or in certificates of any officer of the Company delivered pursuant to the provisions
hereof are true and correct as of the time of the execution of this Agreement, and as of each Representation Date, Applicable Time
and Delivery Date, to the condition that the Company shall have performed all of its obligations hereunder theretofore to be performed,
and the following additional conditions:



    	21



    	 



    




(a)          The
Prospectus shall have been filed with the Commission pursuant to Rule 424(b) under the 1933 Act on or prior to the date hereof
and the Company shall have complied with all other requirements applicable to the Prospectus or any supplement thereto under Rule
424(b) (without giving effect to Rule 424(b)(8)). The Company shall have complied with all filing requirements applicable to any
Issuer Limited-Use Free Writing Prospectus used or referred to after the date hereof. No stop order suspending the effectiveness
of the Registration Statement or preventing or suspending the use of the Prospectus or any Issuer Limited-Use Free Writing Prospectus
shall have been issued and no proceeding or examination for such purpose shall have been initiated or threatened by the Commission,
any request of the Commission for inclusion of additional information in the Registration Statement or the Prospectus (including,
without limitation, in any document incorporated by reference therein) or otherwise shall have been complied with, and the Commission
shall not have notified the Company of any objection to the use of the form of the Registration Statement or any post-effective
amendment thereto.


(b)          The
Agent shall have received a letter from CT Corporation, or a similar firm, indicating based on available electronic databases the
good standing of the Company in their respective jurisdictions of organization and their good standing as foreign entities in such
other jurisdictions as the Agent may reasonably request.


(c)          Day
Pitney LLP, counsel for the Company (or, subject to the sole discretion of the Agent in the case of any written opinion or opinions
required to be delivered after the commencement of the offering of the Shares under this Agreement, the in house legal counsel
for the Company) shall have furnished to you such written opinion or opinions on each date specified in Section 6(o), as the case
may be, in form and substance satisfactory to counsel for the Agent, to the effect set forth in Annex II and Annex III hereto and
other related matters as you may reasonably request, and such counsel shall have received such papers and information as they may
reasonably request to enable them to pass upon such matters.


(d)          Robinson
& Cole LLP, counsel for the Agent, shall have furnished to you their written opinions in such form as you may reasonably request,
on each date specified in Section 6(o).


(e)          On
each date specified in Section 6(p), Crowe Horwath LLP shall have furnished to you a letter or letters, dated the respective dates
of delivery thereof, in form and substance as previously provided to counsel to the Agent.


(f)          (i)
Neither the Company nor any of the Subsidiaries shall have sustained since the date of the latest audited financial statements
included in each of the General Disclosure Package and the Prospectus any loss or interference with its business from fire, explosion,
flood or other calamity, whether or not covered by insurance, or from any labor dispute or court or governmental action, order
or decree, otherwise than as set forth or contemplated in the General Disclosure Package or Prospectus, and (ii) since the respective
dates as of which information is given in each of the General Disclosure Package and the Prospectus there shall not have been any
change in the capital stock or long-term debt of the Company or any of the Subsidiaries or any change, or any development involving
a prospective change not set forth or contemplated in the General Disclosure Package or Prospectus, in or affecting the Properties,
the general affairs, management, financial position, stockholders’ equity or results of operations of the Company and the
Subsidiaries, otherwise than as set forth or contemplated in each of the General Disclosure Package and the Prospectus, the effect
of which, in any such case described in clause (i) or (ii), is in the reasonable judgment of the Agent so material and adverse
as to make it impracticable or inadvisable to proceed with the public offering or the delivery of the Shares being delivered on
the terms and in the manner contemplated in each of the General Disclosure Package and the Prospectus.



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(g)          On
or after the date hereof there shall not have occurred any of the following: (i) a suspension or material limitation in trading
in securities generally on the New York Stock Exchange or on NASDAQ; (ii) a suspension or material limitation in trading in the
Company’s securities on NASDAQ; (iii) a general moratorium on commercial banking activities declared by either federal or
state authorities; or (iv) the outbreak or escalation of hostilities involving the United States or the declaration by the United
States of a national emergency or war or a material adverse change in general economic, political or financial conditions, including
without limitation as a result of terrorist activities after the date hereof (or the effect of international conditions on the
financial markets in the United States shall be such), or any other calamity or crisis, if the effect of any such event specified
in this clause (iv) in the reasonable judgment of the Agent makes it impracticable or inadvisable to proceed with the public offering
or the delivery of the Shares on the terms and in the manner contemplated in the Prospectus.


(h)          To
the extent required, the Shares to be sold shall have been duly listed for quotation on NASDAQ.


(i)          If
within the Prospectus Delivery Period, the Company shall have complied with the provisions of Section 6(a) hereof with respect
to the furnishing of prospectuses on the business day next succeeding the date of this Agreement.


(j)          The
Company shall have furnished or caused to be furnished to you on each Representation Date specified in Section 6(n) certificates
of officers of the Company satisfactory to you as to the accuracy of the representations and warranties of the Company herein at
and as of such Representation Date, as to the performance by the Company of all of its obligations hereunder to be performed at
or prior to such Representation Date, and as to the matters set forth in subsection (f) of this Section 8.


(k)          Upon
commencement of the offering of Shares under this Agreement and on such other dates as reasonably requested by Agent, the Company
will furnish or cause to be furnished promptly to the Agent a Placement Notice or such other instructions provided pursuant to
Section 3(b) as requested by the Agent.


(l)          The
Company and the Agent hereby agree that the date of commencement of sales under this Agreement shall be the date the Company and
the Agent mutually agree (which may be later than the date of this Agreement).


9.             (a)
The Company shall indemnify and hold harmless the Agent against any losses, claims, damages or liabilities, joint or several, to
which they or any of them may become subject, under the 1933 Act or otherwise, insofar as such losses, claims, damages or liabilities
(or actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement, the General Disclosure Package, the Prospectus or any individual Issuer Limited-Use Free
Writing Prospectus, when considered together with the General Disclosure Package, or any amendment or supplement thereto, or arise
out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary
to make the statements therein not misleading, and will reimburse each such indemnified party for any legal or other expenses reasonably
incurred by them in connection with investigating or defending any such action or claim as such expenses are incurred; provided,
however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage or liability arises
out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration
Statement, the General Disclosure Package, the Prospectus or any individual Issuer Limited-Use Free Writing Prospectus, when considered
together with the General Disclosure Package, or any such amendment or supplement, in reliance upon and in conformity with written
information furnished to the Company by the Agent expressly for use therein (provided that the Company and the Agent hereby acknowledge
and agree that the only information that the Agent has furnished to the Company specifically for inclusion in the Registration
Statement, the General Disclosure Package, the Prospectus or any individual Issuer Limited-Use Free Writing Prospectus, when considered
together with the General Disclosure Package, or any amendment or supplement thereto, are (i) the statements set forth in the last
sentence of paragraph 1, the first sentence of paragraph 3 and the last sentence of paragraph 8 under the “Plan of Distribution”
section in the Prospectus Supplement and (ii) such other statements as the Agent may, by notice given to the Company in writing
after the date of this Agreement, have been furnished to the Company by the Agent specifically for inclusion in the Registration
Statement, the Prospectus, the General Disclosure Package, any Issuer Limited-Use Free Writing Prospectus or any amendment or supplement
thereto (collectively, the “Agent Information”).



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(b)          The
Agent shall indemnify and hold harmless the Company against any losses, claims, damages or liabilities to which the Company may
become subject, under the 1933 Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon an untrue statement or alleged untrue statement of a material fact contained in the Registration
Statement, the General Disclosure Package, the Prospectus, or any individual Issuer Limited-Use Free Writing Prospectus, when considered
together with the General Disclosure Package, or any amendment or supplement thereto, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein
not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission
or alleged omission was made in the Registration Statement, the General Disclosure Package, the Prospectus or any individual Issuer
Limited-Use Free Writing Prospectus, when considered together with the General Disclosure Package, or any such amendment or supplement,
in reliance upon and in conformity with written information furnished to the Company by the Agent expressly for use therein, provided
that the Company and the Agent hereby acknowledge and agree that the only information that the Agent has furnished to the Company
specifically for inclusion in the Registration Statement, the General Disclosure Package, the Prospectus or any individual Issuer
Limited-Use Free Writing Prospectus, when considered together with the General Disclosure Package, or any amendment or supplement
thereto, is the Agent Information; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company
in connection with investigating or defending any such action or claim as such expenses are incurred.


(c)          Promptly
after receipt by an indemnified party under subsection (a) or (b) above of notice of the commencement of any action, such indemnified
party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify the indemnifying
party in writing of the commencement thereof; but the omission so to notify the indemnifying party shall not relieve it from any
liability which it may have to any indemnified party otherwise than under such subsection. In case any such action shall be brought
against any indemnified party and it shall notify the indemnifying party of the commencement thereof, the indemnifying party shall
be entitled to participate therein and, to the extent that it shall wish, jointly with any other indemnifying party similarly notified,
to assume the defense thereof, with counsel satisfactory to such indemnified party (who shall not, except with the consent of the
indemnified party, be counsel to the indemnifying party), and, after notice from the indemnifying party to such indemnified party
of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party under such
subsection for any legal expenses of other counsel or any other expenses, in each case subsequently incurred by such indemnified
party, in connection with the defense thereof other than reasonable costs of investigation. No indemnifying party shall, without
the written consent of the indemnified party, effect the settlement or compromise of, or consent to the entry of any judgment with
respect to, any pending or threatened action or claim in respect of which indemnification or contribution may be sought hereunder
(whether or not the indemnified party is an actual or potential party to such action or claim) unless such settlement, compromise
or judgment (i) includes an unconditional release of the indemnified party from all liability arising out of such action or claim
and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any indemnified
party.



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(d)          If
the indemnification provided for in this Section 9 is unavailable to or insufficient to hold harmless an indemnified party under
subsection (a) or (b) above in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to
therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such
losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is appropriate to reflect the relative
benefits received by the Company on the one hand and the Agent on the other from the offering of the Shares. If, however, the allocation
provided by the immediately preceding sentence is not permitted by applicable law or if the indemnified party failed to give the
notice required under subsection (c) above, then each indemnifying party shall contribute to such amount paid or payable by such
indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of
the Company on the one hand and the Agent on the other in connection with the statements or omissions which resulted in such losses,
claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative
benefits received by the Company on the one hand and the Agent on the other shall be deemed to be in the same proportion as the
total net proceeds from the offering (before deducting expenses) received by the Company bear to the total commissions received
by the Agent. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the
Company on the one hand or the Agent on the other and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The Company and the Agent agree that it would not be just and equitable
if contributions pursuant to this subsection (d) were determined by pro rata allocation or by any other method of allocation which
does not take account of the equitable considerations referred to above in this subsection (d). The amount paid or payable by an
indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in
this subsection (d) shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection
with investigating or defending any such action or claim. Notwithstanding the provisions of this subsection (d), the Agent shall
not be required to contribute any amount in excess of the amount by which the total price at which the Shares distributed to the
public were offered to the public exceeds the amount of any damages which the Agent has otherwise been required to pay by reason
of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.


(e)          The
obligations of the Company under this Section 9 shall be in addition to any liability which the Company may otherwise have and
shall extend, upon the same terms and conditions, to each person, if any, who controls (within the meaning of the 1933 Act) the
Agent, or any of the respective partners, directors, officers and employees of the Agent or any such controlling person; and the
obligations of the Agent under this Section 9 shall be in addition to any liability which the Agent may otherwise have and shall
extend, upon the same terms and conditions, to each director of the Company (including any person who, with his or her consent,
is named in the Registration Statement as about to become a director of the Company), each officer of the Company who signs the
Registration Statement and to each person, if any, who controls the Company, as the case may be, within the meaning of the 1933
Act.




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10.           Termination.


(a)          The
Company shall have the right, by giving written notice as hereinafter specified, to terminate this Agreement in its sole discretion
at any time. Any such termination shall be without liability of any party to any other party except that (i) with respect to any
pending sale through the Agent for the Company, the obligations of the Company, including in respect of compensation of the Agent,
shall remain in full force and effect notwithstanding such termination and (ii) the representations and warranties in Section 2
and the provisions of Sections 7, 9, 13, 14, 15, 16 and 17 of this Agreement shall remain in full force and effect notwithstanding
such termination.


(b)          The
Agent shall have the right, by giving written notice as hereinafter specified, to terminate this Agreement in its sole discretion
at any time. Any such termination shall be without liability of any party to any other party except that the representations and
warranties in Section 2 and the provisions of Sections 7, 9, 13, 14, 15, 16 and 17 of this Agreement shall remain in full force
and effect notwithstanding such termination.


(c)          This
Agreement shall remain in full force and effect unless terminated pursuant to Section 10(a) or (b) above or otherwise by mutual
agreement of the parties; provided, that any such termination by mutual agreement or pursuant to this clause (c) shall in all cases
be deemed to provide that the representations and warranties in Section 2 and the provisions of Sections 7, 9, 13, 14, 15, 16 and
17 of this Agreement shall remain in full force and effect notwithstanding such termination.


(d)          Any
termination of this Agreement shall be effective on the date specified in such notice of termination or the date mutually agreed
by the parties, as the case may be; provided, that such termination shall not be effective until the close of business on the date
of receipt of such notice by the Agent or the Company, or the date mutually agreed by the parties, as the case may be. If such
termination shall occur prior to the Delivery Date for any sale of the Shares, such sale shall settle in accordance with the provisions
of Section 3(i) hereof.


11.          The
respective indemnities, agreements, representations, warranties and other statements of the Company and the Agent, as set forth
in this Agreement or made by or on behalf of them, respectively, pursuant to this Agreement, shall remain in full force and effect,
regardless of any investigation (or any statement as to the results thereof) made by or on behalf of the Agent or any controlling
person of the Agent, or the Company, or any officer or director or controlling person of the Company, and shall survive delivery
of and payment for the Shares.


12.          If
this Agreement is terminated, neither of the Company shall then be under any liability to the Agent except as provided in Section
9 hereof, which provisions shall survive termination.


13.          The
Company acknowledges and agrees that:


(a)          in
connection with the sale of the Shares, the Agent has been retained solely to act as sales agent, and no fiduciary, advisory or
other agency relationship between the Company and the Agent has been created in respect of any of the transactions contemplated
by this Agreement;


(b)          it
has been advised that the Agent and its respective affiliates are engaged in a broad range of transactions which may involve interests
that differ from those of the Company and that the Agent has no obligation to disclose such interests and transactions to the Company
by virtue of any fiduciary, advisory or agency relationship; and



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(c)          it
waives, to the fullest extent permitted by law, any claims it may have against the Agent for breach of fiduciary duty or alleged
breach of fiduciary duty and agrees that the Agent shall have no liability (whether direct or indirect) to the Company in respect
of such a fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf of or in right of the Company, including
stockholders, employees or creditors of the Company.


(d)          All
statements, requests, notices and agreements hereunder shall be in writing, and if to the Agent shall be delivered or sent by mail,
telex or facsimile transmission to you at Sandler O’Neill & Partners, L.P., 1251 Avenue of the Americas, 6th Floor, New
York, NY 10020, Attention: General Counsel, with a copy (for informational purposes only) to Robinson & Cole, LLP, 1055 Washington
Boulevard, Stamford, Connecticut 06901, Attention: Mitchell Lampert, Esq.; and if to the Company shall be delivered or sent by
mail to Peapack-Gladstone Financial Corporation, 500 Hills Drive, Suite 300, PO Box 700, Bedminster, NJ 07921-1538, Attention:
Jeffrey Carfora, Chief Financial Officer, with a copy (for informational purposes only) to Day Pitney LLP, 1 Jefferson Road, Parsippany,
New Jersey 07054, Attention: Michael Rave, Esq. Any such statements, requests, notices or agreements shall take effect upon receipt
thereof.


14.          This
Agreement shall be binding upon, and inure solely to the benefit of, the Agent, the Company and, to the extent provided in Sections
9 and 11 hereof, the officers and directors of the Company and each person who controls the Company or the Agent, and their respective
heirs, executors, administrators, successors and assigns, and no other person shall acquire or have any right under or by virtue
of this Agreement. No purchaser of any of the Shares shall be deemed a successor or assign by reason merely of such purchase.


15.          Time
shall be of the essence of this Agreement. As used herein, the term “business day” shall mean any day when the Commission’s
office in Washington, D.C., is open for business.


16.          This
Agreement shall be governed by and construed in accordance with the laws of the State of New York.


17.          This
Agreement may be executed by any one or more of the parties hereto in any number of counterparts, each of which shall be deemed
to be an original, but all such counterparts shall together constitute one and the same instrument.


 


[Signature Page Follows]




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If the foregoing
is in accordance with your understanding, please sign and return to us four counterparts hereof, and upon the acceptance hereof
by you, this letter and such acceptance hereof shall constitute a binding agreement among the Agent and the Company.


 


	 	Very truly yours,
	 	 
	 	Peapack-Gladstone Financial Corporation
	 	 	 
	 	By:	 /s/ Jeffrey J. Carfora
	 	 	 
	 	Name:	 Jeffrey J. Carfora
	 	 	 
	 	Title:	Sr. Exec. Vice President and CFO


 


 


 


Accepted as of the date hereof:


 


	SANDLER O’NEILL & PARTNERS, L.P.	 
	 	 	 
	By:	Sandler O’Neill & Partners Corp., 

the sole general partner 	 
	 	 	 
	By:	 /s/ William F. Hickey	 
	 	 	 
	Name:	 William F. Hickey	 
	 	 	 
	Title:	 Officer of the Corporation	 






[Signature Page to Sales Agency Agreement]


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