Document:

Exhibit

May 16, 2018

Eric Branderiz

Dear Eric:
Enphase Energy, Inc. (the “Company”) is pleased to offer you employment on the following terms:
Position.  Your title will be Chief Financial Officer (CFO) and you will report to Badri Kothandaraman, Chief Executive Officer. This is a full-time exempt position located in Petaluma, CA.  While you render services to the Company, you will not engage in any other employment, consulting or other business activity (whether full-time or part-time) that would create a conflict of interest with your duties to the Company. By signing this letter agreement, you confirm to the Company that you have no contractual commitments or other legal obligations that would prohibit you from performing your duties for the Company.
Base Salary.  The Company will pay you a starting salary at the rate of $400,000.00 per year, payable in accordance with the Company’s standard payroll schedule. Your salary will be subject to adjustment pursuant to the Company’s employee compensation policies in effect from time to time. 
Bonus.  In addition to your salary, you be eligible for an annual bonus target of 75% of your eligible earnings for 2018. This bonus will be pursuant to and subject to the terms and conditions of the Enphase Energy incentive bonus plan. You must be employed in good standing by Enphase Energy at the scheduled payment time to be eligible to receive a bonus. 
Employee Benefits.  As a regular employee of the Company, you will be eligible to participate in regular health insurance, employee stock purchase, and other employee benefit plans if and as established and maintained by the Company for its employees from time to time. In addition, you will be entitled to paid vacation in accordance with the Company’s vacation policy, as in effect from time to time.
Expenses.  You will be reimbursed for reasonable legitimate business expenses incurred in the performance of your duties in accordance with the Company’s expense reimbursement policies, as in effect from time to time.
Stock Grant (RSUs).  Following execution of this letter agreement, we will recommend to the Board of Directors of the Company that you be granted 300,000 Restricted stock units (RSU’s) under the Company’s 2011 Equity Incentive Plan (the "Plan") (as adjusted for stock splits, stock dividends, reclassifications and the like). The shares will be subject to the terms and conditions applicable to shares granted under the Plan, as described in and subject to the Plan and the applicable stock award or purchase agreement. Subject to your continued employment and the terms and conditions of the Plan and applicable agreement (a) 25% of the shares (rounded down to the nearest whole share) shall vest on the Initial Vesting Date of the 15th of the month one year following hiring date and (b) thereafter 12.5% of the shares (rounded down to the nearest whole share, except for the last vesting installment) shall vest and become exercisable on each six-month anniversary of the Initial Vesting Date, provided that the grantee remains in Continuous Service (as defined in the Plan) from the Date of Grant through each such vesting date. 

Stock Grant (PSUs).   Following execution of this letter agreement, we will recommend to the Board of Directors of the Company that you be granted 100,000 Performance Stock Units (PSUs) under the Company’s 2011 Equity Incentive Plan (the "Plan") (as adjusted for stock splits, stock dividends, reclassifications and the like). PSUs are grants with specific performance targets identified by the Compensation Committee of the Board of Directors. 

PSUs are earned based on Enphase Stock Performance (“ESP”) and CEO Goals Performance (“CGP”).  Any PSU shares earned will vest on March 29, 2019 subject to the ESP and CGP performance criteria. With great performance, you can earn up to 150% of your total performance-based PSU grant.

Performance-Based (PSU) Vesting Terms

Performance-based PSU shares will be eligible to vest subject to satisfaction of the vesting and performance criteria below.
Enphase Stock Performance (ESP): 50,000 Shares
You are eligible to earn your targeted ESP shares based upon Enphase’s stock price, measured as the 15-day trailing Volume Weighted Average Price per share of ENPH Stock as of December 31, 2018 (“ESV15”). The Target price is set at $5.00 per share. 
ESP shares are eligible to vest on March 29, 2019, subject to satisfaction of the vesting and performance criteria.

		
	◦
	0% Payout of ESP shares occurs when ESV15 is less than $3.00 per share.

		
	◦
	0% to 150% Payout of ESP shares occurs, calculated linearly, when ESV15 is between $3.00 and $6.00 per share.  

For example:
		
	o
	0% Payout of ESP shares occurs when ESV15 is equal to $3.00.

		
	o
	25% Payout of ESP shares occurs when ESV15 is equal to $3.50.

		
	o
	50% Payout of ESP shares occurs when ESV15 is equal to $4.00.

		
	o
	75% Payout of ESP shares occurs when ESV15 is equal to $4.50.

		
	o
	100% Payout of ESP shares occurs when ESV15 is equal to $5.00.

		
	o
	125% Payout of ESP shares occurs when ESV15 is equal to $5.50.

		
	o
	150% Payout of ESP shares occurs when ESV15 is equal to $6.00.

		
	o
	150% Payout of ESP shares occurs when ESV15 is greater than $6.00 per share.

CEO Goals Performance (CGP): 50,000 Shares
You are eligible to earn your targeted CGP shares based upon achievement of 2018 Annual CEO Goals (“2018 CEO Goals”), measured for the year ended December 31, 2018. 

The CGP shares are eligible to vest on March 29, 2019 subject to the satisfaction of the vesting and performance criteria.  

		
	◦
	0% Payout of CGP shares occurs when 2018 CEO Goals completed are less than 65% of total including Stretch Goals

		
	◦
	50% Payout of CGP shares occurs when 2018 CEO Goals completed are greater than or equal to 65% but less than 80% of total including Stretch Goals

		
	◦
	100% Payout of CGP shares occurs when 2018 CEO Goals completed are greater than or equal to 80% but less than 100% of total including Stretch Goals

		
	◦
	150% Payout of CGP shares occurs when 2018 CEO Goals completed are greater than or equal to 100% of total including Stretch Goals

ADDITIONAL VESTING CONDITIONS
PSUs have no exercise price and, therefore, always have value. Once vested, the value of each share that vested pursuant to a PSU is equal to the value of one share of Enphase’s common stock as reported on the NASDAQ market. Upon each vesting date, shares will be sold to cover tax withholding requirements, or you will need to use cash from external sources to satisfy the tax withholding requirements. Vested shares remain yours for as long as you hold the shares, even if you are no longer an employee. However, you bear the risk of the stock declining in price and your shares losing value.

With respect to the foregoing, the grant of such RSUs and PSUs by the Company is subject to the Board's approval and this promise to recommend such approval is not a promise of compensation and is not intended to create any obligation on the part of the Company

Change in Control and Severance Agreement. The Company will enter with you a Tier 1 Change in Control and Severance Agreement, subject to approval by the Board of Directors. 

Confidentiality.  As an employee of the Company, you will have access to certain confidential information of the Company and you may, during the course of your employment, develop certain information or inventions that will be the property of the Company.  To protect the interests of the Company, you will need to sign the Company's standard "Employee Invention Assignment and Confidentiality Agreement" attached hereto as Exhibit A as a condition of your employment.  We wish to impress upon you that we do not want you to, and we hereby direct you not to, bring with you any confidential or proprietary material of any former employer or to violate any other obligations you may have to any former employer.  During the period that you render services to the Company, you agree to not engage in any employment, business or activity that is in any way competitive with the business or proposed business of the Company.  You will disclose to the Company in writing any other gainful employment, business or activity that you are currently associated with or participate in that competes with the Company.  You will not assist any other person or organization in competing with the Company or in preparing to engage in competition with the business or proposed business of the Company.  You represent that your signing of this offer letter, agreement(s) concerning stock granted to you, if any, under the Plan and the Company's Employee Invention Assignment and Confidentiality Agreement and your commencement of employment with the Company will not violate any agreement currently in place between yourself and current or past employers.
Employment Relationship.  Employment with the Company is for no specific period of time.  Your employment with the Company will be “at will,” meaning that either you or the Company may terminate your employment at any time and for any reason, with or without cause.  Any contrary representations that may have been made to you are superseded by this letter agreement.  This is the full and complete agreement between you and the Company on this term.  Although your job duties, title, compensation and benefits, as well as the Company’s personnel policies and procedures, may change from time to time, the “at will” nature of your employment may only be changed in an express written agreement signed by you and a duly authorized officer of the Company (other than you).
Withholding Taxes.  All forms of compensation referred to in this letter agreement are subject to reduction to reflect applicable withholding and payroll taxes and other deductions required by law.
Interpretation, Amendment and Enforcement.  This letter agreement and Exhibit A constitute the complete agreement between you and the Company, contain all of the terms of your employment with the Company and supersede any prior agreements, representations or understandings (whether written, oral or implied) between you and the Company.  This letter agreement may not be amended or modified, except by an express written agreement signed by both you and a duly authorized officer of the Company.  The terms of this letter agreement and the resolution of any disputes as to the meaning, effect, performance or validity of this letter agreement or arising out of, related to, or in any way connected with, this letter agreement, your employment with the Company or any other relationship between you and the Company (the “Disputes”) will be governed by California law, excluding laws relating to conflicts or choice of law.  You and the Company submit to the exclusive personal jurisdiction of the federal and state courts located in San Francisco and Sonoma County in connection with any Dispute or any claim related to any Dispute.
Employment Eligibility.  In compliance with the Federal Immigration Reform and Control Act, you will be required to present us with personal identification on your first day of employment, which verifies your eligibility to work in the United States. We have included the “Lists of Acceptable Documents” for Form I-9. You must present one (1) document from “List A” OR one (1) document from “List B” AND one (1) document from “List C”. It is extremely important that you comply with this requirement; otherwise, you may not be allowed to work, and our offer of employment may be withdrawn.

We hope that you will accept our offer to join the Company on the terms of this letter. You may indicate your agreement with these terms and accept this offer by signing and dating both the enclosed duplicate original of this letter agreement and the enclosed Proprietary Information and Inventions Agreement and returning them to me. This offer, if not accepted, will expire at the close of business on May 23, 2018. This offer is contingent on successful completion of background and reference checks and starting work with the Company on June 4, 2018.
Very truly yours,
ENPHASE ENERGY, INC.

By:    /s/ Debra Machado    

Debra Machado
Title:  VP, Human Resources
I have read and accept this employment offer:
By: /s/ Eric Branderiz

    
Eric Branderiz
Dated: June 4, 2018
Attachment
Exhibit A: Employee Invention Assignment and Confidentiality Agreement

EXHIBIT A

EMPLOYEE INVENTION ASSIGNMENT AND CONFIDENTIALITY AGREEMENT
In consideration of, and as a condition of my employment with Enphase Energy, Inc., a Delaware corporation (the “Company”), I hereby represent to, and agree with the Company as follows:
Purpose of Agreement.  I understand that the Company is engaged in a continuous program of research, development, production and marketing in connection with its business and that it is critical for the Company to preserve and protect 

      Page 5 of 5

its Proprietary Information (as defined in Section 7 below), its rights in Inventions (as defined in Section 2 below) and in all related intellectual property rights.  Accordingly, I am entering into this Employee Invention Assignment and Confidentiality Agreement (this “Agreement”) as a condition of my employment with the Company, whether or not I am expected to create inventions of value for the Company.
Disclosure of Inventions.  I will promptly disclose in confidence to the Company all inventions, improvements, designs, original works of authorship, formulas, processes, compositions of matter, computer software programs, databases, mask works, designs and trade secrets that I make or conceive or first reduce to practice or create, either alone or jointly with others, during the period of my employment, whether or not in the course of my employment, and whether or not patentable, copyrightable or protectable as trade secrets (the “Inventions”).  
Inventions Retained and Licensed.  I have attached hereto, as Exhibit A, a list describing with particularity all inventions, original works of authorship, developments, improvements, and trade secrets which were made by me prior to the commencement of my employment with the Company (collectively referred to as “Prior Inventions”), which belong solely to me or belong to me jointly with another, which relate in any way to any of the Company’s proposed businesses, products or research and development, and which are not assigned to the Company hereunder; or, if no such list is attached, I represent that there are no such Prior Inventions.  If, in the course of my employment with the Company, I incorporate into a Company product, process or machine a Prior Invention owned by me or in which I have an interest, the Company is hereby granted and shall have a non-exclusive, royalty-free, irrevocable, perpetual, worldwide license (with the right to sublicense) to make, have made, copy, modify, make derivative works of, use, sell and otherwise distribute such Prior Invention as part of or in connection with such product, process or machine.
Work for Hire; Assignment of Inventions.  I acknowledge and agree that any copyrightable works prepared by me within the scope of my employment are “works for hire” under the Copyright Act and that the Company will be considered the author and owner of such copyrightable works.  I agree that all Inventions that (i) are developed using equipment, supplies, facilities or trade secrets of the Company, (ii) result from work performed by me for the Company, or (iii) relate to the Company’s business or current or anticipated research and development (the “Assigned Inventions”), will be the sole and exclusive property of the Company and are hereby irrevocably assigned by me to the Company.  
Labor Code Section 2870 Notice.  I have been notified and understand that the provisions of Sections 3 and 5 of this Agreement do not apply to any Assigned Invention that qualifies fully under the provisions of Section 2870 of the California Labor Code, which states as follows:
ANY PROVISION IN AN EMPLOYMENT AGREEMENT WHICH PROVIDES THAT AN EMPLOYEE SHALL ASSIGN, OR OFFER TO ASSIGN, ANY OF HIS OR HER RIGHTS IN AN INVENTION TO HIS OR HER EMPLOYER SHALL NOT APPLY TO AN INVENTION THAT THE EMPLOYEE DEVELOPED ENTIRELY ON HIS OR HER OWN TIME WITHOUT USING THE EMPLOYER’S EQUIPMENT, SUPPLIES, FACILITIES, OR TRADE SECRET INFORMATION EXCEPT FOR THOSE INVENTIONS THAT EITHER:  (1) RELATE AT THE TIME OF CONCEPTION OR REDUCTION TO PRACTICE OF THE INVENTION TO THE EMPLOYER’S BUSINESS, OR ACTUAL OR DEMONSTRABLY ANTICIPATED RESEARCH OR DEVELOPMENT OF THE EMPLOYER; OR (2) RESULT FROM ANY WORK PERFORMED BY THE EMPLOYEE FOR THE EMPLOYER.  TO THE EXTENT A PROVISION IN AN EMPLOYMENT AGREEMENT PURPORTS TO REQUIRE AN EMPLOYEE TO ASSIGN AN INVENTION OTHERWISE EXCLUDED FROM BEING REQUIRED TO BE ASSIGNED UNDER CALIFORNIA LABOR CODE SECTION 2870(a), THE PROVISION IS AGAINST THE PUBLIC POLICY OF THIS STATE AND IS UNENFORCEABLE.

Assignment of Other Rights.  In addition to the foregoing assignment of Assigned Inventions to the Company, I hereby irrevocably transfer and assign to the Company:  (i) all worldwide patents, patent applications, copyrights, mask works, trade secrets and other intellectual property rights, including but not limited to rights in databases, in any Assigned Inventions, along with any registrations of or applications to register such rights; and (ii) any and all “Moral Rights” (as defined below) that I may have in or with respect to any Assigned Inventions.  I also hereby forever waive and agree never to assert any and all Moral Rights I may have in or with respect to any Assigned Inventions, even after termination 

      Page 6 of 6

of my work on behalf of the Company.  “Moral Rights” mean any rights to claim authorship of or credit on an Assigned Inventions, to object to or prevent the modification or destruction of any Assigned Inventions, or to withdraw from circulation or control the publication or distribution of any Assigned Inventions, and any similar right, existing under judicial or statutory law of any country or subdivision thereof in the world, or under any treaty, regardless of whether or not such right is denominated or generally referred to as a “moral right.”  
Assistance.  I agree to assist the Company in every proper way to obtain for the Company and enforce patents, copyrights, mask work rights, trade secret rights and other legal protections for the Company’s Assigned Inventions in any and all countries.  I will execute any documents that the Company may reasonably request for use in obtaining or enforcing such patents, copyrights, mask work rights, trade secrets and other legal protections.  My obligations under this paragraph will continue beyond the termination of my employment with the Company, provided that the Company will compensate me at a reasonable rate after such termination for time or expenses actually spent by me at the Company’s request on such assistance.  I appoint the Secretary of the Company as my attorney-in-fact to execute documents on my behalf for this purpose.
Proprietary Information.  I understand that my employment by the Company creates a relationship of confidence and trust with respect to any information of a confidential or secret nature that may be disclosed to me by the Company or a third party that relates to the business of the Company or to the business of any parent, subsidiary, affiliate, customer or supplier of the Company or any other party with whom the Company agrees to hold information of such party in confidence (the “Proprietary Information”).  Such Proprietary Information includes, but is not limited to, Assigned Inventions, marketing plans, product plans, business strategies, financial information, forecasts, personnel information, customer lists and data, and domain names.
Confidentiality.  At all times, both during my employment and after its termination, I will keep and hold all such Proprietary Information in strict confidence and trust.  I will not use or disclose any Proprietary Information without the prior written consent of the Company, except as may be necessary to perform my duties as an employee of the Company for the benefit of the Company.  Upon termination of my employment with the Company, I will promptly deliver to the Company all documents and materials of any nature pertaining to my work with the Company and, upon Company request, will execute a document confirming my agreement to honor my responsibilities contained in this Agreement.  I will not take with me or retain any documents or materials or copies thereof containing any Proprietary Information.
No Breach of Prior Agreement.  I represent that my performance of all the terms of this Agreement and my duties as an employee of the Company will not breach any invention assignment, proprietary information, confidentiality or similar agreement with any former employer or other party.  I represent that I will not bring with me to the Company or use in the performance of my duties for the Company any documents or materials or intangibles of a former employer or third party that are not generally available to the public or have not been legally transferred to the Company.
Efforts; Duty Not to Compete.  I understand that my employment with the Company requires my undivided attention and effort during normal business hours.  While I am employed by the Company, I will not, without the Company’s express prior written consent, provide services to, or assist in any manner, any business or third party if such services or assistance would be in direct conflict with the Company’s business interests.
Notification.  I hereby authorize the Company to notify third parties, including, without limitation, customers and actual or potential employers, of the terms of this Agreement and my responsibilities hereunder.
Non-Solicitation of Employees/Consultants.  During my employment with the Company and for a period of one (1) year thereafter, I will not directly or indirectly solicit away employees or consultants of the Company for my own benefit or for the benefit of any other person or entity.
Non-Solicitation of Suppliers/Customers.  During my employment with the Company and after termination of my employment, I will not directly or indirectly solicit or take away suppliers or customers of the Company if the identity of the supplier or customer or information about the supplier or customer relationship is a trade secret or is otherwise deemed confidential information within the meaning of California law.  

      Page 7 of 7

Name and Likeness Rights.  I hereby authorize the Company to use, reuse, and to grant others the right to use and reuse, my name, photograph, likeness (including caricature), voice, and biographical information, and any reproduction or simulation thereof, in any form of media or technology now known or hereafter developed (including, but not limited to, film, video and digital or other electronic media), both during and after my employment, for any purposes related to the Company’s business, such as marketing, advertising, credits, and presentations.
Injunctive Relief.  I understand that in the event of a breach or threatened breach of this Agreement by me the Company may suffer irreparable harm and will therefore be entitled to injunctive relief to enforce this Agreement.
Governing Law; Severability.  This Agreement will be governed by and construed in accordance with the laws of the State of California, without giving effect to its laws pertaining to conflict of laws.  If any provision of this Agreement is determined by any court or arbitrator of competent jurisdiction to be invalid, illegal or unenforceable in any respect, such provision will be enforced to the maximum extent possible given the intent of the parties hereto.  If such clause or provision cannot be so enforced, such provision shall be stricken from this Agreement and the remainder of this Agreement shall be enforced as if such invalid, illegal or unenforceable clause or provision had (to the extent not enforceable) never been contained in this Agreement.
Counterparts.  This Agreement may be executed in any number of counterparts, each of which when so executed and delivered will be deemed an original, and all of which together shall constitute one and the same agreement.
Entire Agreement.  This Agreement and the documents referred to herein constitute the entire agreement and understanding of the parties with respect to the subject matter of this Agreement, and supersede all prior understandings and agreements, whether oral or written, between or among the parties hereto with respect to the specific subject matter hereof.
Amendment and Waivers.  This Agreement may be amended only by a written agreement executed by each of the parties hereto.  No amendment of or waiver of, or modification of any obligation under this Agreement will be enforceable unless set forth in a writing signed by the party against which enforcement is sought.  Any amendment effected in accordance with this section will be binding upon all parties hereto and each of their respective successors and assigns.  No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance.  No waiver granted under this Agreement as to any one provision herein shall constitute a subsequent waiver of such provision or of any other provision herein, nor shall it constitute the waiver of any performance other than the actual performance specifically waived.
Successors and Assigns; Assignment.  Except as otherwise provided in this Agreement, this Agreement, and the rights and obligations of the parties hereunder, will be binding upon and inure to the benefit of their respective successors, assigns, heirs, executors, administrators and legal representatives.  The Company may assign any of its rights and obligations under this Agreement.  No other party to this Agreement may assign, whether voluntarily or by operation of law, any of its rights and obligations under this Agreement, except with the prior written consent of the Company.
Further Assurances.  The parties agree to execute such further documents and instruments and to take such further actions as may be reasonably necessary to carry out the purposes and intent of this Agreement.
“At Will” Employment.  I understand that this Agreement does not constitute a contract of employment or obligate the Company to employ me for any stated period of time.  I understand that I am an “at will” employee of the Company and that my employment can be terminated at any time, with or without notice and with or without cause, for any reason or for no reason, by either the Company or myself.  I acknowledge that any statements or representations to the contrary are ineffective, unless put into a writing signed by the Company.  I further acknowledge that my participation in any stock option or benefit program is not to be construed as any assurance of continuing employment for any particular period of time. This Agreement shall be effective as of the first day of my employment by the Company, which is June 4, 2018.

* * * * * *

      Page 8 of 8

    

LIST OF PRIOR INVENTIONS 
AND ORIGINAL WORKS OF AUTHORSHIP

	
			
	 
        Title        
	 
   Date   
	Identifying Number 
or Brief Description

	 
	 
	 

__X No inventions or improvements
___ Additional Sheets Attached
Signature of Employee:

      Page 9 of 9

Name of Employee: Eric Branderiz
Date:

Signature Page to Employee Invention Assignment and Confidentiality Agreement

	
				
	 
	Enphase Energy, Inc.:
      
	Employee:

	 
	By:
	/s/ Debra Machado
	/s/ Eric Branderiz

	 
	 
	 
	Signature

	 
	Name:
	Debra Machado
	Eric Branderiz

	 
	 
	 
	 

	 
	Title:
	VP, Human Resources
	 

      Page 10 of 10Exhibit

EXHIBIT 10.1

BUSINESS CREDIT AGREEMENT    Boxes checked are applicable
(Business Purpose Loans)    Boxes not checked are inapplicable
The undersigned (“Customer", whether one or more) agrees with the undersigned lender (“Lender”) as follows:
1.Loans. Customer requests that Lender lend to Customer from time to time such amounts as Customer may request in accordance with this Agreement (the “Loans”), and subject to the terms of this Agreement, Lender agrees to make such Loans up to (a) ý ( the aggregate principal amount of $7,500,000.00         at any time outstanding (the “Credit Limit), within which amount Customer may borrow, repay and reborrow under this Agreement (b)  ̈ the aggregate principal amount of $ n/a             (the "Credit Limit”). Lender is not obligated to but may make Loans in excess of the Credit Limit, and in any event Customer is liable for and agrees to pay to Lender at Lender’s address shown below all Loans, interest and other charges made to or imposed on Customer under this Agreement.
2.    Loan Procedures. Customer may obtain Loans under this Agreement only as provided below:
		
	(a)
	 ̈ Customer shall give Lender at least n/a         business days’ prior notice of any Loan requested under this Agreement, specifying the date and amount of the Loan. Lender will make the Loan available to Customer  ̈ by crediting the amount of the Loan to Customer’s deposit account no. n/a             with Lender  ̈ by                         .

		
	(b)
	 ̈ Whenever the  ̈ ledger  ̈ collected balance in Customer’s deposit account no.  n/a                  with Lender is less than n/a         on any business day (“Trigger Amount”), for whatever reason, Customer requests Lender to automatically advance funds in increments of $  n/a          to such deposit account in an amount sufficient to increase the balance to the Trigger Amount, or such lesser amount as may be available to Customer under this Agreement.

		
	(c)
	ý Upon written request of Stephen Bianchi and James S Broucek with two business days' notice                

.
3.    Fees. Customer agrees to pay to Lender the following nonrefundable fees as a condition of access to Loans under this Agreement
		
	(a)
	ý Commitment fee in the amount of $  75,000.00      payable to Chippewa Valley Bank                    .

		
	(b)
	 ̈ n/a                                                    

.
Customer agrees to pay any fees and charges described in this Agreement as Loans under this Agreement if such fees and charges are not required by Lender to be paid in cash by Customer at the time the fee or charge is incurred under this Agreement, Furthermore, charges for credit insurance if separately requested by Customer may be charged by Lender as Loans to Customer under this Agreement.
4.    Interest. Interest shall accrue before maturity (whether by acceleration or lapse of time) at the stated interest rate(s) identified in section 4(a), (b) or (c) below (each a “stated interest rate”), as applicable, on the unpaid principal balance, calculated as provided in section 4(f) below: 
[Check (a), (b) or (c); only one shall apply.]
		
	(a)
	 ̈ Fixed Interest Rate.  n/a    %.

		
	(b)
	 ̈ Stepped Fixed Interest Rate.      n/a    % until     n/a     and     n/a        % thereafter.  

		
	(c)
	ý Variable Interest Rate. The stated interest rate is variable and will adjust to equal the Index Rate (defined below)  ̈ plus ý minus  0.750 percentage points. However, the stated interest rate shall not exceed n/a     % and shall not be less than n/a     % and until the first change date described below the stated interest rate shall be 4.250%. The stated interest rate shall be adjusted on the change dates provided below. 

The “Index Rate” is:
The highest U.S. Prime Rate as published in the Wall Street Journal “Money Table” as and when the index rate changes and becomes effective.                                                        
The Index Rate may or may not be the lowest rate charged by Lender. The stated interest rate shall be adjusted on the following change dates: as and when the index rate changes and becomes effective.                                 
A change in the interest rate will apply both to the unpaid principal balance of Loans outstanding under this Agreement and to new Loans. If the Index Rate ceases to be made available to Lender during the term of this Agreement, Lender may substitute a comparable index.
If section 4(b) or 4(c) is checked, a change in the interest rate will result in an increase or decrease in the amount of each payment of interest due under this Agreement.
		
	(d)
	Interest After Maturity. Interest shall accrue on unpaid principal and interest after maturity (whether by acceleration or lapse of time) until paid ý at the stated interest rate(s) under 4(a), (b) or (c) above, as applicable, plus 0.000         percentage points  ̈ at the stated interest rate of n/a        %, calculated as provided in section 4(f) below.

		
	(e)
	 ̈ Compounding. Prior to maturity (whether by acceleration or lapse of time), unpaid and past due interest shall bear interest from its due date at the stated interest rate then in effect for this Agreement, calculated as provided in section 4(f) below.

		
	(f)
	Interest Calculation. Interest will be calculated by applying a daily interest rate for the actual number of days interest is owing, up to 365 days in a full year or 366 days in a full leap year. The daily interest rate will be calculated as follows:

[Check (1) or (2); only one shall apply.]
(1)    ý 360 Day Rate Calculation. The daily interest rate will be calculated on the basis of a 360 day year, which means that it is calculated by dividing the applicable stated interest rate in section 4(a), (b) or (c), above, as applicable, and in section 4(d), above, by 360. Customer understands and agrees that calculating the daily interest rate using a 360 day year means the actual annual interest rate in a 365 day year and in a 366 day leap year is higher than the stated interest rate in section 4(a), (b) or (c), above, as applicable, and in section 4(d), above.
(2)     ̈ 365 Day Rate Calculation. The daily interest rate will be calculated on the basis of a 365 day year, which means that it is calculated by dividing the applicable stated interest rate in section 4(a), (b) or (c), above, as applicable, and in section 4(d), above, by 365. Customer understands and agrees that calculating the daily interest rate using a 365 day year means the actual annual interest rate in a 366 day leap year is higher than the stated interest rate in section 4(a), (b) or (c), above, as applicable, and in section 4(d), above.
		
	(g)
	Other Charges. If any payment (other than the final payment) is not made on or before the 10th      day after its due date, Lender may collect a delinquency charge of ý 5.000     % of the unpaid amount  ̈ n/a        . Customer agrees to pay a charge of $ 15.00         for each check or electronic debit presented for payment under this Agreement which is returned unsatisfied.

5.    Payment Schedule. Customer agrees to pay to Lender the unpaid principal balance of Loans outstanding under this Agreement and accrued interest as follows:
Interest payments are due beginning November 1, 2018 and on the same day(s) of each third month thereafter, plus a final payment of the unpaid principal and interest is due on August 1, 2019.
In addition, Customer shall immediately pay any amount by which the Loans exceed the Credit Limit, any prior unpaid payments and any unpaid fees and charges. Lender is authorized to automatically charge payments due under this Agreement to any account of Customer with Lender. If payments are not automatically charged to Customer’s account, payments must be made to Lender at its address shown below and are not credited until received in Lender’s office. Lender is authorized to make book entries evidencing Loans and payments under this Agreement and the aggregate unpaid amount of all Loans as evidenced by those entries is presumptive evidence that those amounts are outstanding and unpaid to Lender. All payments shall be applied in such order as Lender elects to charges and amounts due under this Agreement.
 ̈ If checked here, the date final payment is due (“Maturity Date”) shall thereafter automatically extend from year to year for one year periods from the original Maturity Date, unless Lender gives Customer written notice to the contrary at least n/a     days prior to the then current Maturity Date.
This Agreement includes the Additional Provisions on page 2.    Dated as of August 1, 2018                
	
		
	Chippewa Valley Bank             (SEAL)
                       (Name of Lender)
607 Main Street, Bruce, WI 54819         

By /s/ Rick Gerber  
     Rick Gerber, Chief Executive Officer
	Citizens Community Bancorp, Inc.

                  (SEAL)

A Maryland Corporation            

By /s/ Stephen M. Bianchi                 (SEAL)
Stephen Bianchi, President & CEO

By /s/ James S. Broucek                 (SEAL)
James S. Broucek, EVP, CFO, Treasurer & Secretary

                  (SEAL)

                  (SEAL)

2174 Eastridge Center, Eau Claire, WI 54701   

Page 1 of 2

ADDITIONAL PROVISIONS
6.    Termination. Lender’s obligation to make Loans under this Agreement shall terminate, and Customer shall have no further right to obtain Loans under this Agreement, upon the first to occur of any of the following:
		
	(a)
	When full and final payment of all unpaid principal and interest is due under section 5. 

		
	(b)
	 ̈ At any time, with or without cause, upon written notice from Lender to Customer.

		
	(c)
	Upon written notice by Lender to Customer following an event of default under section 10, or, without notice at such time that Customer becomes the subject of bankruptcy or other insolvency proceedings.

		
	(d)
	At such date and time that Lender has received and is reasonably able to react to written notice of termination from Customer. Notice of termination signed by a Customer is binding on each Customer who signs this Agreement. Customer shall continue to make payments when required under section 5.

		
	(e)
	 ̈ n/a                                                        

If Section 6(b) or 6(e), above, is checked, and Lender’s obligation to make Loans terminates as a result, then the total unpaid balance ❑ shall automatically become immediately due and payable in full ❑ may be paid when required under section 5. Termination of Lender’s obligation to make Loans under this Agreement, for whatever reason or by whichever party, does not affect Lender’s rights, powers, and privileges with regard to, nor Customer’s duties and liabilities to pay, the then existing balance due, or to perform Customer’s other obligations under this Agreement.
7.    Collateral Disclaimer.  ̈ Lender disclaims as collateral security for this Agreement (i) any real estate mortgage or security agreement covering real property on which any building is located in a special flood hazard area, and (ii) any mobile home located in a special flood hazard area, when such collateral security arises under a mortgage or agreement between Lender  ̈ and Customer  ̈ and any indorser or guarantor of this Agreement or any other person providing collateral security for Customer’s obligations; provided, however, Lender does not disclaim any such collateral security arising under a real estate mortgage or security agreement taken contemporaneously with this Agreement or real estate mortgage(s) or security agreement(s) in favor of Lender, whenever taken, from n/a                                
dated n/a                . A special flood hazard area is an area designated as such under the National Flood Insurance Program.
8.    Financial Statement. Customer shall furnish to Lender financial statements at least annually and such other financial information respecting Customer at such times and in such form as Lender may request from time to time.
9.    Security Interest. Except for collateral disclaimed as security for this Agreement under section 7 of this Agreement, this Agreement is secured by all existing and future security agreements, assignments and mortgages from any Customer to Lender, from any guarantor of this Agreement to Lender, and from any other person providing collateral security for Customer’s obligations to Lender under this Agreement (each a "Security Document” and collectively the "Security Documents”), and payment of the Loans may be accelerated according to any of them. Unless a lien would be prohibited by law or would render a nontaxable account taxable, Customer also grants to Lender a security interest and lien in any deposit account Customer may at any time have with Lender. Lender may at any time after the occurrence of an event of default set-off any amount unpaid under this Agreement against any deposit balances or other money now or hereafter owed to Customer by Lender.
10.    Default and Acceleration. Upon the occurrence of any one or more of the following events of default: (a) Customer fails to pay any amount when due under this Agreement or under any other instrument evidencing any indebtedness of Customer to Lender, (b). any information provided by Customer in connection with this Agreement is or was false or fraudulent in any material respect, (c) a material adverse change occurs in Customer’s financial condition, (d) Customer fails to timely observe or perform any of the duties contained in this Agreement, (e) Customer, Customer’s spouse or any surety or guarantor for any of the Customer’s indebtedness under this Agreement dies, ceases to exist, becomes insolvent or the subject of bankruptcy or insolvency proceedings, (f) any guaranty of Customer’s obligations under this Agreement is revoked or becomes unenforceable for any reason, or (g) an event of default occurs under any Security Document; then, at Lender’s option, and upon written notice to Customer, Lender’s obligation to make Loans under this Agreement shall terminate and the total unpaid balance shall become immediately due and payable without presentment, demand, protest, or further notice of any kind, all of which are hereby expressly waived by Customer. Lender’s obligation to make Loans under this Agreement shall automatically terminate and the total unpaid balance shall automatically become due and payable in the event Customer becomes the subject of bankruptcy or other insolvency proceedings. Lender may waive any default without waiving any other subsequent or prior default. Customer agrees to pay all costs of collection, before and after judgment, including, without limitation, reasonable attorneys’ fees (including those incurred in successful defense or settlement of any counterclaim brought by Customer or incident to any action or proceeding involving Customer brought pursuant to the United States Bankruptcy Code). Customer agrees to indemnify and hold harmless Lender, its officers, directors, employees and agents, for, from and against any and all claims, damages, judgments, penalties and expenses, including reasonable attorneys’ fees, arising directly or indirectly from credit extended under this Agreement or the activities of Customer. This indemnity shall survive termination of this Agreement, the repayment of all Loans and the discharge and release of any collateral for the Loans.
11.    No Waiver; Remedies. No failure on the part of Lender to exercise, and no delay in exercising, any right, power or remedy under this Agreement shall operate as a waiver of such right, power or remedy; nor shall any single or partial exercise of any right under this Agreement preclude any other or further exercise of the right or the exercise of any other right. All rights and remedies of Lender are cumulative and may be exercised from time to time together, separately, and in any order.
12.    Entire Agreement; Use of Proceeds. THIS AGREEMENT AND THE SECURITY DOCUMENTS ARE INTENDED BY LENDER AND CUSTOMER AS A FINAL EXPRESSION OF THIS AGREEMENT AND AS A COMPLETE AND EXCLUSIVE STATEMENT OF ITS TERMS, THERE BEING NO CONDITIONS TO THE FULL EFFECTIVENESS OF THIS AGREEMENT EXCEPT AS SET FORTH IN THIS AGREEMENT AND THE SECURITY DOCUMENTS, AND THIS AGREEMENT MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES TO THIS AGREEMENT. THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES TO THIS AGREEMENT. Customer represents and warrants to Lender that no part of any Loan will be used for personal, family or household purposes.
13.    More Than One Customer. If more than one person signs this Agreement as Customer, any Customer acting alone may request Loans under this Agreement, but each Customer is jointly and severally liable for all Loans and other obligations under this Agreement.
14.    Notice. Except as otherwise provided in this Agreement, all notices required or provided for under this Agreement shall be in writing and mailed, sent or delivered, if to Customer, at any Customer’s last known address or email address as shown on the records of Lender, and if to Lender, at its address shown on page 1, or, as to each party, at such other address as shall be designated by such party in a written notice to the other party. All such notices shall be deemed duly given when delivered by hand or courier, or three business days after being deposited in the mail (including any private mail service), postage prepaid, provided that notice to Lender pursuant to section 6 shall not be effective until received by Lender and Lender has a reasonable opportunity to act on the notice.
15.    Name and Address. Customer represents that the legal name of Customer and the address of Customer’s principal residence are as set forth on page 1. Customer shall not change its legal name or address without providing at least 30 days’ prior notice of the change to Lender.
16.    Venue. Customer consents that venue for any legal proceeding relating to enforcement of this Agreement shall be, at Lender’s option, the county in which Lender has its principal office in this state, the county in which Customer resides in this state, or the county in this state in which this Agreement was executed by Customer, and Customer submits to the jurisdiction of any such court.
17.    Amendment. No amendment or modification of any provision of this Agreement shall in any event be effective unless it is in writing and signed by Lender and Customer. Any waiver by Lender shall be in writing and is effective only in the specific instance and for the specific purposes for which given.
18.    Interpretation. Each Customer acknowledges that Lender has not made any representations or warranties with respect to, and that Lender does not assume any responsibility to Customer for, the collectibility or enforceability of this Agreement or the financial condition of any Customer. Each Customer has independently determined the collectibility and enforceability of this Agreement. The validity, construction and enforcement of this Agreement are governed by the internal laws of Wisconsin except to the extent such laws are preempted by federal law. Invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provisions of this Agreement.
19.    Persons Bound. This Agreement shall be binding upon and inure to the benefit of Lender and Customer and their respective heirs, personal representatives, successors and assigns, except that Customer may not assign or transfer any of Customer’s rights under this Agreement.
20.    Other Provisions. (If none stated, there are no other provisions.) 
Secured by but not limited to the following collateral:
All shares of stock issued by Citizens Community Federal National Association (“CCFNA”) and held by Debtor, including without limitation 1,000,000 shares represented by stock Certificate #1 issued by CCFNA which, as of the date hereof, represents 100% of all outstanding stock of CCFNA and any re-issuance or replacement thereof.

This Business Credit Agreement is amended by the General Rider to Business Credit Agreement, dated as of the date hereof, executed by Customer and Lender.

Business Credit Agreement
Page 2 of 2

GENERAL RIDER TO BUSINESS CREDIT AGREEMENT

This General Rider to Business Credit Agreement (this "Rider") is made and entered into as of August 1, 2018 (the "Effective Date"), by and between Citizens Community Bancorp, Inc., a Maryland corporation ("Customer"), and Chippewa Valley Bank ("Lender").

WHEREAS, on the Effective Date, Customer and Lender are entering into a Business Credit Agreement (the "Credit Agreement") evidencing a line of credit in an aggregate principal amount of up to $7,500,000 (the "Loan");

WHEREAS, the obligations, liabilities and indebtedness of Customer with respect to the Loan will be secured by a security interest in certain investment property of Customer pursuant to the terms of a Collateral Pledge Agreement; and

WHEREAS, Customer and Lender wish to amend the terms and provisions of the Credit Agreement as set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants, agreements and promises herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged by all parties, the parties do hereby agree as follows, notwithstanding any other provisions to the contrary set forth in the Credit Agreement:

1.Definitions.  All capitalized terms used herein shall have the same meaning as defined in the Credit Agreement, unless otherwise defined in this Rider.
2.Amendments to Credit Agreement.  The Credit Agreement is hereby amended as follows:
(a)    Section 8 of the Credit Agreement is amended in its entirety to read as follows:
8. Financial Statement. Customer shall furnish to Lender financial statements at least annually and such other publically available financial information respecting Customer at such times and in such form as Lender may reasonably request from time to time. Customer shall have satisfied its requirement to deliver financial statements if such statements are publically available through https://www.ccf.us/about-us/investor-relations.html.
(b)    The first sentence of Section 10 of the Credit Agreement is deleted in its entirety and replaced with the following language:
Upon the occurrence of any one or more of the following events of default: (a) Customer fails to pay any amount within 10 days after such amount is due under this Agreement or under any other instrument evidencing 

39995131

any indebtedness of Customer to Lender, (b) any information provided by Customer in connection with this Agreement is or was false or fraudulent in any material respect, (c) a material adverse change occurs in Customer's financial condition, (d) Customer fails to timely observe or perform any of the duties contained in this Agreement, (e) Customer, Customer's spouse or any surety or guarantor for any of the Customer's indebtedness under this Agreement dies, ceases to exist, becomes insolvent or the subject of bankruptcy or insolvency proceedings, (f) any guaranty of Customer's obligations under this Agreement is revoked or becomes unenforceable for any reason, or (g) an event of default occurs under any Security Document; then, at Lender's option, and upon written notice to Customer, Lender’s obligation to make Loans under this Agreement shall terminate and the total unpaid balance shall become immediately due and payable without presentment, demand, protest, or further notice of any kind, all of which are hereby expressly waived by Customer. Notwithstanding the foregoing, if an event of default occurs under Section 10(d), Customer shall have 10 days after notice thereof to cure such event of default, provided that Lender, in its reasonable discretion, deems such event of default curable.
(c)    Section 14 of the Credit Agreement is amended to add "not to exceed 3 business days" at the end of the last sentence.
(d)    The following provisions are added to the end of Section 20 of the Credit Agreement:
Waiver of Jury Trial. CUSTOMER AND LENDER HEREBY KNOWINGLY AND VOLUNTARILY WAIVE THE RIGHT EACH OF THEM MAY HAVE TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM BASED ON OR ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ANY OTHER ACTION OF ANY PARTY.
Post-Closing Deliverables.  Within 10 days of the date hereof, or such longer amount of time agreed to by Lender in writing in its sole discretion, Customer shall deliver or cause to be delivered to Lender the original Stock Certificate #1 evidencing 1,000,000 shares of stock of Citizens Community Federal National Association owned by Customer together with a blank stock power. For avoidance of doubt, the failure to provide such certificate will constitute an event of default hereunder.
3.Inconsistency.  To the extent there is any inconsistency between the Credit Agreement and this Rider, this Rider shall control.  
[Signature Page Follows]

2

IN WITNESS WHEREOF, the parties have executed this Rider as of the Effective Date and agree to be bound by all provisions of this Rider.

	
		
	 
	CUSTOMER:

CITIZENS COMMUNITY BANCORP, INC.

By:  /s/ Stephen Bianchi
       Stephen Bianchi, President & Chief Executive Officer

	 
	LENDER:

CHIPPEWA VALLEY BANK

   By:  /s/ Rick Gerber
           Rick Gerber, Chief Executive Officer

	 
	 

3

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