Document:

Exhibit 10.27

EXHIBIT 10.27

WARRANT TO PURCHASE COMMON STOCK

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE
SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE
A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS. THIS
WARRANT IS ISSUED SUBJECT TO THE RESTRICTIONS ON TRANSFER CONTAINED HEREIN. THIS WARRANT MAY NOT
BE SOLD OR OTHERWISE TRANSFERRED EXCEPT IN COMPLIANCE WITH THIS INSTRUMENT. ANY SALE OR OTHER
TRANSFER NOT IN COMPLIANCE WITH THIS INSTRUMENT WILL BE VOID.

WARRANT

to purchase

Shares of Common Stock of

MIDDLEFIELD BANC CORP.

			
	 	 	 
	No. 001
	 	Issue Date:                     , 2011

Name of Warrantholder: Bank Opportunity Fund LLC

1. Definitions. Unless the context otherwise requires, when used herein the
following terms shall have the meanings indicated.

“Affiliate” has the meaning ascribed to it in the Stock Purchase Agreement.

“Board of Directors” means the board of directors of the Company, including any duly
authorized committee thereof.

“business day” means any day except Saturday, Sunday and any day on which banking institutions
in the State of Ohio generally are authorized or required by law or other governmental actions to
close.

“Charter” means, with respect to any Person, its certificate or articles of incorporation,
articles of association, or similar organizational document.

“Common Stock” means the common stock, no par value , of the Company.

“Company” means Middlefield Banc Corp., an Ohio corporation.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor
statute, and the rules and regulations promulgated thereunder.

“Exercise Price” means $16.00 per share of Common Stock.

 

 

 

“Expiration Time” has the meaning set forth in Section 3.

“Issue Date” means                     , 2011.

“Person” has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act.

“Regulatory Approvals” with respect to the Warrantholder, means, to the extent applicable and
required to permit the Warrantholder to exercise this Warrant for shares of Common Stock and to own
such Common Stock without the Warrantholder being in violation of applicable law, rule or
regulation, the receipt of any necessary approvals and authorizations of, filings and registrations
with, notifications to the the Board of Governors of the Federal Reserve System, or any other
federal, state, county, local or other governmental or regulatory agencies, authorities (including
self-regulatory authorities), instrumentalities, commissions, boards or bodies having jurisdiction
over the Company, the Warrantholder or any Affiliate of the Company or the Warrantholder.

“Shares” has the meaning set forth in Section 2.

“Stock Purchase Agreement” means the Stock Purchase Agreement dated as of August 15, 2011
between the Company and Warrantholder.

“Warrantholder” has the meaning set forth in Section 2.

“Warrant” means this Warrant, issued pursuant to the Stock Purchase Agreement.

2. Number of Shares; Exercise Price. This certifies that, for value received, Bank
Opportunity Fund LLC, or its permitted assigns (the “Warrantholder”) is entitled, upon the terms
and subject to the conditions hereinafter set forth, to acquire from the Company, in whole or in
part, after the receipt of all applicable Regulatory Approvals, if
any, up to ___________ fully paid and
nonassessable shares of Common Stock at a purchase price per share of Common Stock equal to the
Exercise Price, provided that the Warrantholder does not own or control more than 24.9% of Common
Stock upon such acquisition , taking into consideration the shares issued upon exercise in whole or
part of the Warrant. The number of shares of Common Stock (the “Shares”) and the Exercise Price
are subject to adjustment as provided herein, and all references to “Common Stock,” “Shares” and
“Exercise Price” herein shall be deemed to include any such adjustment or series of adjustments.

3. Exercise of Warrant; Term. Subject to Section 2, to the extent permitted by
applicable laws and regulations, the right to purchase the Shares represented by this Warrant is
exercisable, in whole or in part by the Warrantholder, at any time or from time to time after the
execution and delivery of this Warrant by the Company on the date hereof, but in no event later
than 5:00 p.m., Eastern time on the tenth anniversary of the Issue Date (the “Expiration Time”), by
(A) the surrender of this Warrant and Notice of Exercise annexed hereto, duly completed and
executed on behalf of the Warrantholder, at the principal executive office of the Company located
at 15985 East High Street, Middlefield, Ohio 44062 (or such other office or agency of the Company
in the United States as it may designate by notice in writing to the Warrantholder at the address
of the Warrantholder appearing on the books of the Company), and (B) payment of the Exercise Price
for the Shares thereby purchased by tendering in cash, by certified or cashier’s check payable to
the order of the Company, or by wire transfer of immediately available funds to an account
designated by the Company. If not exercised before the Expiration Time the Warrant shall become
void and all rights thereunder shall cease at the Expiration Time.

 

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If the Warrantholder exercises this Warrant in part, the Warrantholder will be entitled to
receive from the Company within a reasonable time, and in any event not exceeding three business
days, a new warrant in substantially identical form and expiring at the Expiration Time for the
purchase of that number of Shares equal to the difference between the number of Shares subject to
this Warrant and the number of Shares as to which this Warrant is so exercised. Notwithstanding
anything in this Warrant to the contrary, the Warrantholder hereby acknowledges and agrees that its
exercise of this Warrant for Shares is subject to the condition that the Warrantholder will have
first received any applicable Regulatory Approvals, if any, which are required to exercise this
Warrant.

4. Issuance of Shares; Authorization. Certificates for Shares issued upon exercise of
this Warrant will be issued in such name or names as the Warrantholder may designate and will be
delivered to such named Person or Persons within a reasonable time, not to exceed three business
days after the date on which this Warrant has been duly exercised in accordance with the terms of
this Warrant, together with cash, as provided below in Section 5, in respect of any fractional
Shares otherwise issuable upon such exercise. The Company hereby represents and warrants that, upon
payment by the Warrantholder of the Warrant exercise price in full in accordance with Section 3,
any Shares issued upon the exercise of this Warrant in accordance with the provisions of Section 3
will be duly and validly authorized and issued, fully paid and nonassessable and free from all
taxes, liens and charges (other than liens or charges created by the Warrantholder, income and
franchise taxes incurred in connection with the exercise of the Warrant or taxes in respect of any
transfer occurring contemporaneously therewith). The Company agrees that the Shares so issued will
be deemed to have been issued to the Warrantholder as of the close of business on the date on which
this Warrant and payment of the Exercise Price are delivered to the Company in accordance with the
terms of this Warrant, notwithstanding that the stock transfer books of the Company may then be
closed or certificates representing such Shares may not be actually delivered on such date. The
Company will at all times reserve and keep available, out of its authorized but unissued Common
Stock, solely for the purpose of providing for the exercise of this Warrant, the aggregate number
of shares of Common Stock then issuable upon exercise of this Warrant at any time. The Company
will use reasonable best efforts to ensure that the Shares may be issued without violation of any
applicable law or regulation or of any requirement of any securities exchange on which the Shares
are listed or traded.

5. No Fractional Shares or Scrip. No fractional Shares or scrip representing
fractional Shares shall be issued upon any exercise of this Warrant. If any fraction of a Share
would be issuable on the exercise of this Warrant in full or in part, the Company shall pay an
amount in cash equal to the then current market price per Share multiplied by such fraction.

6. No Rights as Stockholders; Transfer Books. This Warrant does not entitle the
Warrantholder to any voting rights or other rights as a stockholder of the Company prior to the
date of exercise hereof. The Company will at no time close its transfer books against transfer of
this Warrant in any manner which interferes with the timely exercise of this Warrant.

7. Charges, Taxes and Expenses. Issuance of certificates for Shares to the
Warrantholder upon the exercise of this Warrant shall be made without charge to the Warrantholder
for any issue or transfer tax or other incidental expense in respect of the issuance of such
certificates, all of which taxes and expenses shall be paid by the Company.

8. Restrictions on Transfer. Warrantholder will not transfer, sell, assign or
otherwise dispose of this Warrant or any portion thereof, except as follows:(i) to any Affiliate of
Warrantholder under common control with Warrantholder’s ultimate parent, general partner, managing
member, or investment advisor (any such transferee shall be included in the term “Warrantholder”),
(ii) to any limited partner or shareholder of Warrantholder, but in each case only if the
transferee agrees in writing for the benefit of the Company (with a copy thereof to be furnished to
the Company) to be bound by the terms of
this Warrant, or (iii) to any Person with the prior written consent of the Company, which
shall not be unreasonably withheld, conditioned or delayed.

 

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9. Exchange and Registry of Warrant. Until the Expiration Time this Warrant is
exchangeable, upon the surrender hereof by the Warrantholder to the Company, for a new warrant or
warrants of like tenor and representing the right to purchase the same aggregate number of Shares.
The Company shall maintain a registry showing the name and address of the Warrantholder as the
registered holder of this Warrant. This Warrant may be surrendered for exchange or exercise in
accordance with its terms, at the office of the Company, and the Company shall be entitled to rely
in all respects, prior to written notice to the contrary, upon such registry.

10. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the Company of
evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this
Warrant, and in the case of any such loss, theft or destruction, upon receipt of a bond, indemnity
or security reasonably satisfactory to the Company, or, in the case of any such mutilation, upon
surrender and cancellation of this Warrant, until the Expiration Time the Company shall make and
deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor
and representing the right to purchase the same aggregate number of Shares as provided for in such
lost, stolen, destroyed or mutilated Warrant.

11. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall not be a business day,
then such action may be taken or such right may be exercised on the next succeeding day that is a
business day.

12. Adjustments and Other Rights. For so long as the Warrantholder holds this Warrant
or any portion thereof, if any event occurs that, in the good faith judgment of the Board of
Directors of the Company, would require adjustment of the Exercise Price or number of Shares into
which this Warrant is exercisable in order to fairly and adequately protect the purchase rights of
the Warrants in accordance with the essential intent and principles of the Stock Purchase Agreement
and this Warrant, then the Board of Directors shall make such adjustments in the application of
such provisions, in accordance with such essential intent and principles, as shall be reasonably
necessary, in the good faith opinion of the Board of Directors, to protect such purchase rights as
aforesaid. The good faith determination made by the Board of Directors about whether an adjustment
is necessary and about the terms of any adjustment shall be final and binding.

Whenever the Exercise Price or the number of Shares into which this Warrant is exercisable
shall be adjusted as provided in this Section 12, the Company shall forthwith file at the principal
office of the Company a statement showing in reasonable detail the facts requiring such adjustment
and the Exercise Price that shall be in effect and the number of Shares into which this Warrant
shall be exercisable after such adjustment, and the Company shall also cause a copy of such
statement to be sent by mail, first class postage prepaid, to each Warrantholder at the address
appearing in the Company’s records.

13. No Impairment. The Company will not, by amendment of its Charter or through any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities
or any other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms to be observed or performed hereunder by the Company, but will at all times in good faith
assist in the carrying out of all the provisions of this Warrant and in taking of all such action
as may be necessary or appropriate in order to protect the rights of the Warrantholder.

 

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14. Governing Law. This Warrant will be governed by and construed in accordance with
the federal law of the United States if and to the extent such law is applicable, and otherwise in
accordance with the laws of the State of Ohio applicable to contracts made and to be performed
entirely within such State. Each of the Company and the Warrantholder agrees (a) to submit to the
exclusive jurisdiction and venue of the United States District Court for the NorthernDistrict of
Ohio for any civil action, suit or proceeding arising out of or relating to this Warrant or the
transactions contemplated hereby, and (b) that notice may be served upon the Company at the address
in Section 18 below and upon the Warrantholder at the address for the Warrantholder set forth in
the registry maintained by the Company pursuant to Section 9 hereof. To the extent permitted by
applicable law, each of the Company and the Warrantholder hereby unconditionally waives trial by
jury in any civil legal action or proceeding relating to the Warrant or the transactions
contemplated hereby or thereby.

15. Binding Effect. This Warrant shall be binding upon any successors or assigns of
the Company.

16. Amendments. This Warrant may be amended and the observance of any term of this
Warrant may be waived only with the written consent of the Company and the Warrantholder.

17. Prohibited Actions. The Company agrees that it will not take any action which
would entitle the Warrantholder to an adjustment of the Exercise Price if the total number of
shares of Common Stock issuable after such action upon exercise of this Warrant, together with all
shares of Common Stock then outstanding and all shares of Common Stock then issuable upon the
exercise of all outstanding options, warrants, conversion and other rights, would exceed the total
number of shares of Common Stock then authorized by its Charter.

18. Notices. Any notice, request, instruction or other document to be given hereunder
by any party to the other will be in writing and will be deemed to have been duly given (a) on the
date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, (b) on the
first business day following the date of dispatch if delivered by a recognized next day courier
service, or (c) on the third business day following the date of mailing if delivered by registered
or certified mail, return receipt requested, postage prepaid. All notices hereunder shall be
delivered as set forth in Section 7.05 of the Stock Purchase Agreement, or pursuant to such other
instructions as may be designated in writing by the party to receive such notice.

19. Entire Agreement. This Warrant and the forms attached hereto contain the entire
agreement between the parties with respect to the subject matter hereof and supersede all prior and
contemporaneous arrangements or undertakings with respect thereto.

[Remainder of page intentionally left blank]

 

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IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by a duly
authorized officer.

Dated:                     , 2011

	 	 	 	 	 
	 	COMPANY: MIDDLEFIELD BANC CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	Thomas G. Caldwell 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	Attest:

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

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[Form of Notice of Exercise]

Date:                     

	 	 	 
	TO:

	 	MIDDLEFIELD BANC CORP

Attention: Thomas G. Caldwell

15985 East High Street

Middlefield, Ohio 44062
	 
	 	 
	RE:

	 	Election to Purchase Common Stock

The undersigned, pursuant to the provisions set forth in the attached Warrant, hereby agrees
to subscribe for and purchase the number of shares of the Common Stock set forth below covered by
such Warrant. The undersigned, in accordance with Section 3 of the Warrant, hereby agrees to pay
the aggregate Exercise Price for such shares of Common Stock in the manner set forth below. A new
warrant evidencing the remaining shares of Common Stock covered by such Warrant, but not yet
subscribed for and purchased, if any, should be issued in the name set forth below.

	 	 	 	 	 
	Number of Shares of Common Stock

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Aggregate Exercise Price:
	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	Holder:
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:Exhibit 10.28

EXHIBIT 10.28

PURCHASER’S RIGHTS AND VOTING AGREEMENT

This PURCHASER’S RIGHTS AND VOTING AGREEMENT (this “Agreement”) is made and entered into as of
August 15, 2011, by and among Middlefield Banc Corp., an Ohio corporation (the “Company”), Bank
Opportunity Fund LLC, a Delaware limited liability company (including its permitted transferees or
assigns, the “Purchaser”), and each of the Persons listed on Schedule I attached hereto,
who currently serves as an officer or a director of the Company (each, an “Existing Shareholder”
and collectively, the “Existing Shareholders”). The Parties hereto other than the Company are
referred to individually as a “Shareholder” and collectively as “Shareholders.” The Purchaser, the
Existing Shareholders and the Company are referred to individually as a “Party” and collectively as
the “Parties.” This Agreement shall become effective as of the Closing (as defined therein) of
that certain Stock Purchase Agreement, dated as of August 15, 2011, as amended (the “Stock Purchase
Agreement”), by and between the Company and the Purchaser.

RECITALS

A. The Company and the Purchaser are parties to the Stock Purchase Agreement pursuant to which
the Company has agreed to issue and sell, and the Purchaser has agreed to purchase, shares of the
Company’s Common Stock, without par value (the “Common Stock”); and

B. The Company’s and the Purchaser’s respective obligations under the Stock Purchase Agreement
are conditioned upon the execution and delivery of this Agreement.

C. The Company is the sole shareholder of The Middlefield Banking Company and Emerald Bank,
each of which is an Ohio chartered commercial bank (each, a “Bank”).

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises hereinafter
set forth, the parties hereto agree as follows:

ARTICLE I

VOTING

Section 1.01 Agreement to Vote. The Purchaser, as a holder of Common Stock, hereby agrees to
vote: (a) all of the shares of Common Stock registered in its name and (b) as of the date of any
given vote, any other voting securities (or voting rights associated with any other securities) of
the Company that the Purchaser holds (hereinafter collectively referred to as the “Purchaser
Shares”) at regular and special meetings of the Company’s shareholders (or by written consent) in
accordance with the provisions of this Agreement. Each Existing Shareholder, as a holder of Common
Stock, hereby agrees on behalf of itself, its Affiliates and any permitted transferee or assignee
of any such shares of Common Stock, to vote, and to cause its Affiliates to vote: (x) all of the
shares of Common Stock registered in its name and (y) as of the date of any vote, any other voting
securities (or voting rights associated with any other securities) of the Company that such
Existing Shareholder holds (hereinafter collectively referred to as the “Shareholder Shares”) at
regular and special meetings of the Company’s shareholders (or by written consent) in accordance
with the provisions of this Agreement. The Purchaser Shares and Shareholder Shares are
collectively referred to herein as the “Shares.”

 

 

 

Section 1.02 Manner of Voting. The voting of the Shares pursuant to this Agreement may be
effected in person, by proxy, by written consent, or in any other manner permitted by the laws of
the State of Ohio.

Section 1.03 Grant of Proxy. Should the provisions of this Agreement be construed to
constitute the granting of proxies, such proxies shall be deemed coupled with an interest and are
irrevocable for the term of this Agreement.

ARTICLE II

BOARD OF DIRECTORS

Section 2.01 Size of Board of Directors. Subject to the Company’s Code of Regulations and the
resolutions of the Company’s Board of Directors (the “Board”), the Purchaser and the Existing
Shareholders shall vote in accordance with Section 1.01 to ensure that the size of the Board be set
and remain at a sufficient number to accommodate Section 2.02. Subject to each Bank’s Code of
Regulations and the resolutions of each Bank’s board of directors, the Company, as the sole
shareholder of each Bank, shall ensure that the size of the board of directors of each Bank be set
and remain at a sufficient number to accommodate Section 2.02.

Section 2.02 Election of Directors; Board Representation. The Purchaser and the Existing
Shareholders agree that, at the first annual meeting after the closing of the transaction
contemplated by the Stock Purchase Agreement, and, for as long as the Company has a classified
board or otherwise, at each annual meeting of the Company’s shareholders or at any other meeting of
the Company’s shareholders at which members of the Board are to be elected, or whenever members of
the Board are to be elected by written consent, in each case where the director allocated to
Purchaser is up for election, so long as the Purchaser owns at least 5% of the outstanding voting
securities of the Company, the Purchaser and Existing Shareholders shall vote or act with respect
to all of their Shares so as to elect that one director designated by Purchaser to serve on the
Board. Such initial director shall be Eric D. Hovde (the “Purchaser Director”). The Company, as
the sole shareholder of each Bank, further agrees to elect the Purchaser Director to the board of
directors of each Bank. The Purchaser Director shall hold office until the next meeting or the
next consent of the Company’s shareholders at which such director is up for election (or in the
case of each Bank, until the next consent of the Company as the sole shareholder of the applicable
Bank is needed for such election) and until such Purchaser Director’s successor is duly elected and
qualified, or until such Purchaser Director’s earlier resignation or removal, in accordance with
the Company’s bylaws (or in the case of each Bank, in accordance with the bylaws of the applicable
Bank).

Section 2.03 Board Committees. The Company, the Purchaser and the Existing Shareholders
hereby agree to take any and all action necessary so as to cause the Purchaser Director to be
appointed to the executive committee of the Board, should one exist. The Company hereby agrees to
take any and all action necessary so as to cause the Purchaser Director to be appointed to the
executive committee of the board of directors of each Bank, should one exist.

Section 2.04 Certain Resignations or Removals. A Purchaser Director shall immediately resign
from the Board and the board of directors of each Bank if: (a) any party or parties having the
right to designate and elect a director pursuant to Section 2.02 hereof requests the
resignation or removal of the Purchaser Director so designated and elected, with or without cause
or (b) such Purchaser Director is no longer entitled to be a director pursuant to Section
2.02 hereof. In either case, if such Purchaser Director fails to resign from the Board or the
board of directors of each Bank, the Purchaser or Existing Shareholders shall have the right to
cause the Company to call a special meeting of shareholders for the purpose of removing such
Purchaser Director from the Board, the Purchaser and each Existing
Shareholder shall vote all of their respective Shares entitled to vote at such meeting in
favor of the removal of such Purchaser Director, and the Company shall execute a consent to remove
such Purchaser Director from the board of directors of each Bank.

 

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Section 2.05 Filling Vacancies. In the event of a Purchaser Director’s resignation, death,
removal or disqualification, the party who had the right to designate such Purchaser Director
pursuant to Section 2.02 hereof shall promptly designate a new Purchaser Director and,
after written notice of the designation has been given by such party to each of the parties hereto,
the Purchaser and each Existing Shareholder shall vote their respective Shares to elect such
nominee to the Board, and the Company shall execute a consent to elect such nominee to the board of
directors of each Bank.

Section 2.06 No Liability for Election of Purchaser Director. Neither the Company, the
Purchaser, the Existing Shareholders, nor any officer, director, shareholder, partner, member,
employee or agent of such party, makes any representation or warranty as to the fitness or
competence of the nominee of any party hereunder to serve on the Board or the board of directors of
either bank by virtue of such party’s execution of this Agreement or by the act of such party in
voting for such designee pursuant to this Agreement.

Section 2.07 Conflicts of Interest.

(a) The Existing Shareholders and the Company recognize that the Purchaser, its Affiliates and
the Purchaser Director elected or appointed to the Board or the board of directors of each Bank (or
any committee thereof) by the Purchaser: (i) have participated, directly or indirectly, and will
continue to participate in venture capital and other direct investments in corporations,
partnerships, joint ventures, limited liability companies and other Persons and other similar
transactions, (ii) may have interests in, participate with, aid and maintain seats on the board of
directors of other such entities and (iii) may develop opportunities for such entities. The
Existing Shareholders and the Company acknowledge that the Purchaser Director elected or appointed
by the Purchaser to the Board or the board of directors of each Bank (or any committee thereof) may
encounter business opportunities that the Company, its shareholders, or each Bank may desire to
pursue, and that such opportunities may include, but shall not be limited to, identifying, pursuing
and investing in entities, engaging broker-dealers and investment banking firms to perform certain
services including, but not limited to, acting as underwriters or placement agents in securities
offerings and obtaining investment funds from institutional and private shareholders or others.

(b) The Existing Shareholders and the Company agree that the Purchaser and the Purchaser
Director elected or appointed by the Purchaser to the Board or the board of directors of each Bank
(or any committee thereof) shall have no obligation to the Company or either Bank, the Existing
Shareholders, or to any other Person to present any such business opportunity to the Company or
either Bank before presenting and/or developing such opportunity with any other Persons, other
than such opportunities presented to any such director for the Company’s or either Bank’s benefit
in his or her capacity as a director of the Company or either Bank.

Section 2.08 No Limitation on Other Voting Rights. Notwithstanding any provision of this
Agreement to the contrary, nothing in this Agreement shall limit or restrict the Purchaser from
acting in its sole discretion on any matter other than those referred to in this Agreement.

 

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ARTICLE III

LOCK-UP; APPROVAL OF DIRECTORS

Section 3.01 Restriction on Transfer; Term. The Existing Shareholders who are currently
officers and directors of the Company and identified on Schedule II attached hereto hereby
agree with the Company that they will not offer, sell, contract to sell, assign, transfer,
hypothecate, pledge or grant a security interest in, or otherwise dispose of, or enter into any
transaction which is designed to, or might reasonably be expected to, result in the disposition of
(whether by actual disposition or effective economic disposition due to cash settlement or
otherwise by the Company or any Affiliate of the Company or any person in privity with the Company
or any Affiliate of the Company), directly or indirectly, any of their shares of Common Stock from
the period commencing on the Closing Date of the Stock Purchase Agreement and expiring on the date
that is twelve (12) months after such Closing Date (the “Restricted Period”).

Section 3.02 Ownership. During the Restricted Period, the Existing Shareholders who are
currently officers and directors of the Company and identified on Schedule II shall retain
all rights of ownership in the Common Stock, including, without limitation, voting rights and the
right to receive any dividends, if any, that may be declared in respect thereof.

Section 3.03 Approval of Directors. Each of the Existing Shareholders who are directors of
the Company hereby agrees to vote in favor of approving the Stock Purchase Agreement and the
transactions set forth therein. The directors of the Company agree that they shall be bound by
Section 4.04 of the Stock Purchase Agreement when acting in their capacity as directors.

ARTICLE IV

CERTAIN REPRESENTATIONS, WARRANTIES AND COVENANTS; CONDITIONS

Section 4.01 Ownership, Authority, Etc. Each Existing Shareholder represents and warrants
that: (a) such Existing Shareholder now owns its Shareholder Shares, free and clear of all liens
and encumbrances, and has not, prior to the date of this Agreement, executed or delivered any proxy
or entered into any other voting agreement or similar arrangement relating to its Shareholder
Shares and (b) such Existing Shareholder has full power and capacity to execute, deliver and
perform this Agreement, which has been duly executed and delivered by, and evidences the valid and
binding obligation of, such Existing Shareholder.

Section 4.02 No Voting or Conflicting Agreements. No Existing Shareholder, nor any of its
respective Affiliates, shall: (a) except as contemplated by Section 4.03 hereof, grant any
proxy, (b) enter into or agree to be bound by any voting trust, (c) enter into any shareholder
agreements or arrangements of any kind with any Person that is not a Party to this Agreement
(whether or not such agreements or arrangements are with other shareholders of the Company that are
not a Party to this Agreement) or (d) act, for any reason, as a member of a group or in concert
with any other Persons in any manner which is inconsistent with the provisions of this Agreement.

Section 4.03 Covenant to Vote. The Purchaser and each Existing Shareholder shall appear in
person or by proxy at any annual or special meeting of the Company’s shareholders for the purpose
of obtaining a quorum, and shall vote their Shares upon any matter submitted to the Company’s
shareholders in a manner not inconsistent or in conflict with, and to implement, the terms of this
Agreement and the
Stock Purchase Agreement. In the event of an annual or special meeting of the Company’s
shareholders called for the purpose of voting on the election of directors, the Purchaser and each
Existing Shareholder shall vote their Shares, either in person or by proxy, in favor of the
election of directors nominated in accordance with Section 2.02 hereof.

 

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Section 4.04 Covenants of the Company.

(a) The Company agrees to use its best efforts to ensure that the rights granted hereunder are
effective and that the Parties hereto enjoy the benefits thereof. Such actions include, without
limitation, the use of the Company’s best efforts to cause the designation and election of the
directors as provided under Section 2.02 hereof. The Company will not, by any voluntary
action, avoid or seek to avoid the observance or performance of any of the terms to be performed
hereunder by the Company, but will at all times in good faith assist in the carrying out of all of
the provisions of this Agreement and in the taking of all such actions as may be necessary,
appropriate or reasonably requested by either: (i) the holders of a majority of the Purchaser
Shares then outstanding in order to protect the rights of the Purchasers hereunder against
impairment or (ii) the holders of a majority of the Shareholder Shares then outstanding in order to
protect the rights of the Existing Shareholders against impairment.

(b) The Company, by its execution hereof, agrees that it will cause the certificates
evidencing the shares of the Company’s capital stock subject to this Agreement to bear the legend
required by Section 4.05 hereof, and that it shall supply, free of charge, a copy of this
Agreement to any holder of a certificate evidencing shares of the Company’s capital stock subject
to this Agreement upon such holder’s written request to the Company. The parties hereto agree,
however, that the Company’s failure to cause the certificates evidencing the shares of the
Company’s capital stock subject to this Agreement to bear the legend required by Section
4.05 hereof and/or to supply, free of charge, a copy of this Agreement as provided under this
Section 4.04, shall not affect the validity or enforcement of this Agreement.

Section 4.05 Legend on Share Certificates. Each certificate representing any shares of the
Company’s capital stock subject to this Agreement, and any certificates representing shares of the
Company’s capital stock which may be issued in the future to Existing Shareholders or to the
Purchaser, shall be endorsed by the Company with a legend reading substantially as follows:

“THE SHARES EVIDENCED HEREBY ARE SUBJECT TO A VOTING AGREEMENT (A COPY OF WHICH MAY
BE OBTAINED UPON WRITTEN REQUEST FROM THE ISSUER), AND BY ACCEPTING ANY INTEREST IN
SUCH SHARES THE PERSON ACCEPTING SUCH INTEREST SHALL BE DEEMED TO AGREE TO AND SHALL
BECOME BOUND BY ALL THE PROVISIONS OF SAID VOTING AGREEMENT.”

Section 4.06 Regulatory Approvals. This Agreement is subject to the parties receiving all
necessary approvals, consents or non-objections from the regulatory authorities on such terms and
conditions reasonably satisfactory to the parties and the Closing of the Stock Purchase Agreement.

 

5

 

ARTICLE V

MISCELLANEOUS

Section 5.01 Term. This Agreement shall terminate and be of no further force or effect upon
the earliest to occur of (a) a Qualified Public Offering (as defined in Section 5.12
hereof), (b) the date as of which the Parties hereto terminate this Agreement by the written
consent of (i) the Purchaser and (ii)
the holders of a majority of the Shareholder Shares then outstanding, and (c) the twenty-fifth
anniversary from the effective date hereof.

Section 5.02 Entire Agreement. This Agreement, together with the Schedules hereto, the Stock
Purchase Agreement and any certificates, documents, instruments and writings that are delivered
pursuant thereto, constitute the entire agreement and understanding of the Parties in respect of
the subject matter hereof and supersedes all prior understandings, agreements or representations by
or among the parties, written or oral, to the extent they relate in any way to the subject matter
hereof. There are no third party beneficiaries having rights under or with respect to this
Agreement.

Section 5.03 Binding Effect; New Shareholders; Assignment. This Agreement shall be binding
upon and inure to the benefit of the Parties, their respective heirs, successors and assigns. The
Existing Shareholders and the Company shall use their best efforts to ensure that any Persons that
become shareholders of the Company become a party to this Agreement by executing and delivering an
Adoption Agreement substantially in the form attached hereto as Exhibit A. This Agreement,
and the rights and obligations of the Purchaser hereunder, may (but are not required to) be
assigned by the Purchaser to any Person to which Purchaser Shares are transferred in accordance
with this Agreement by the Purchaser, and following any such transfer, “Purchaser” (as used in this
Agreement) shall be deemed to include such transferee (and any rights or obligations that the
Purchaser may have under this agreement shall be exercised by a majority of such Persons that
constitute the “Purchaser”). If Purchaser does not elect to transfer its rights and obligations
hereunder in connection with any transfer of Purchaser Shares, such transferee shall be deemed to
be an “Existing Shareholder” for the purposes of this Agreement. This Agreement, and the rights
and obligations of the Existing Shareholders hereunder, shall be transferred to any Person to which
Shareholder Shares are transferred in accordance with this Agreement by an Existing Shareholder
and, notwithstanding anything to the contrary in this Agreement, no transfer of Shareholder Shares
(other than any acquisition of such shares by the Purchaser) by any Existing Shareholder shall be
effective unless the transferee shall have executed and delivered an Adoption Agreement
substantially in the form attached hereto as Exhibit A.

Section 5.04 Notices. All notices, requests and other communications provided for or
permitted to be given under this Agreement must be in writing and shall be given by personal
delivery, by certified or registered United States mail (postage prepaid, return receipt
requested), by a nationally recognized overnight delivery service for next day delivery, or by
facsimile transmission, as follows (or to such other address as any party may give in a notice
given in accordance with the provisions hereof):

If to the Purchaser:

Bank Opportunity Fund I LLC

1826 Jefferson Place, NW

Washington, DC 20036

Phone: 202-822-8117

Fax: 202-775-8365

Attn: Joseph Thomas

with a copy to (which does not constitute notice):

Perry & Associates PLLC

1826 Jefferson Place, NW

Washington, DC 20036

Phone: (202) 822-8117

Fax: (202) 775-8365

Attn: Richard J. Perry, Jr.

 

6

 

If to the Company:

Middlefield Banc Corp.

15985 East High Street

Middlefield, Ohio 44062

Phone: 440-632-1666

Fax: 440-632-1700

Attn: Thomas G. Caldwell

with a copy to (which does not constitute notice):

Grady & Associates

20950 Center Ridge Road

Suite 100

Rocky River, Ohio 44116

Phone: (440) 356-7255

Fax: (440) 356-7254

Attn: Francis X. Grady

All notices, requests or other communications will be effective and deemed given only as follows:
(i) if given by personal delivery, upon such personal delivery, (ii) if sent by certified or
registered mail, on the fifth business day after being deposited in the United States mail, (iii)
if sent for next day delivery by overnight delivery service, on the date of delivery as confirmed
by written confirmation of delivery, (iv) if sent by facsimile, upon the transmitter’s confirmation
of receipt of such facsimile transmission, except that if such confirmation is received after 5:00
p.m. (in the recipient’s time zone) on a business day, or is received on a day that is not a
business day, then such notice, request or communication will not be deemed effective or given
until the next succeeding business day. Notices, requests and other communications sent in any
other manner, including by electronic mail, will not be effective.

Section 5.05 Specific Performance; Remedies. Each party acknowledges and agrees that the
other parties would be damaged irreparably if any provision of this Agreement were not performed in
accordance with its specific terms or were otherwise breached. Accordingly, the parties will be
entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement
and to enforce specifically this Agreement and its provisions in any action or proceeding
instituted in any court of the United States or any state thereof having jurisdiction over the
parties and the matter, in addition to any other remedy to which they may be entitled, at law or in
equity. Except as expressly provided herein, the rights, obligations and remedies created by this
Agreement are cumulative and in addition to any other rights, obligations or remedies otherwise
available at law or in equity. Except as expressly provided herein, nothing herein will be
considered an election of remedies.

Section 5.06 Governing Law. This Agreement will be governed by and construed in accordance
with the laws of the State of Ohio, without giving effect to any choice of law principles.

Section 5.07 Amendments. Other than with respect to amendments to Schedule I hereto,
which may be amended by the Company to reflect Existing Shareholders or permitted transfers, this
Agreement may not be amended or modified without the written consent of the Company, the holders of
at least a majority of the Purchaser Shares then outstanding and by the holders of at least a
majority of the Shareholder Shares then outstanding.

 

7

 

Section 5.08 Severability. The provisions of this Agreement will be deemed severable and the
invalidity or unenforceability of any provision will not affect the validity or enforceability of
the other provisions hereof; provided that if any provision of this Agreement, as applied to any
party or to any circumstance, is judicially determined not to be enforceable in accordance with its
terms, the parties agree that the court judicially making such determination may modify the
provision in a manner consistent with its objectives such that it is enforceable, and/or to delete
specific words or phrases, and in its modified form, such provision will then be enforceable and
will be enforced.

Section 5.09 Counterparts; Effectiveness. This Agreement may be executed in two or more
counterparts, each of which will be deemed an original but all of which together will constitute
one and the same instrument. For purposes of determining whether a party has signed this Agreement
or any document contemplated hereby or any amendment or waiver hereof, only a handwritten original
signature on a paper document or a facsimile copy of such a handwritten original signature shall
constitute a signature, notwithstanding any law relating to or enabling the creation, execution or
delivery of any contract or signature by electronic means.

Section 5.10 Aggregation of Stock. All shares of Common Stock owned or acquired by the
Purchaser or its Affiliated entities or persons (assuming full conversion, exchange and exercise of
all convertible, exchangeable and exercisable securities into Common Stock) shall be aggregated
together for the purpose of determining the availability of any right under this Agreement.

Section 5.11 Incorporation of Exhibits and Schedules. The exhibits and schedules identified
in this Agreement are incorporated by reference herein and made a part hereof.

Section 5.12 Certain Defined Terms. As used in this Agreement, the following terms shall have
the following meanings (such meanings to be equally applicable to both the singular and plural
forms of the terms defined):

“Affiliate” of a Person means any Person that directly or indirectly, through one or more
intermediaries, controls or is controlled by, or is under common control with, such other Person.
For purposes of this definition, the term “control” (including “controlling,” “controlled by” and
“under common control with”) means the possession, direct or indirect, of the power to cause the
direction of the management and policies of a Person, whether through the ownership of voting
securities, by contract or otherwise.

“Person” means any individual, firm, corporation, company, partnership, trust, incorporated or
unincorporated association, limited liability company, joint venture, joint stock company,
government (or an agency or political subdivision thereof) or other entity of any kind, and shall
include any heir, successor (by merger or otherwise), or assign of any such individual or entity.

“Qualified Public Offering” shall mean a firm commitment underwritten public offering pursuant
to a registration statement filed with the Securities and Exchange Commission and declared
effective under the Securities Act of 1933, as amended, that results in net cash proceeds to the
Company (after deducting applicable underwriting discounts and commissions) of not less than $25
million in the aggregate.

[SIGNATURE PAGE FOLLOWS]

 

8

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	 	COMPANY:

MIDDLEFIELD BANC CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	Thomas G. Caldwell 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	PURCHASER:

BANK OPPORTUNITY FUND I LLC

 	 
	 	By:  	Bank Acquisitions LLC, its managing member
 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Eric D. Hovde 	 
	 	 	Title:  	Managing Member 	 

 

 

 

EXISTING SHAREHOLDERS:

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

 

 

SCHEDULE I

EXISTING SHAREHOLDERS

	 	 	 	 	 
	SHAREHOLDER NAME	 	SHARES OF COMMON STOCK	 
	 
	 	 	 	 
	Directors
	 	 	 	 
	 
	 	 	 	 
	Officers
	 	 	 	 

 

 

 

SCHEDULE II

EXISTING SHAREHOLDERS SUBJECT TO ARTICLE III

	 	 	 	 	 
	SHAREHOLDER NAME	 	SHARES OF COMMON STOCK	 
	 
	 	 	 	 
	Directors
	 	 	 	 
	 
	 	 	 	 
	Officers
	 	 	 	 

 

 

 

EXHIBIT A

ADOPTION AGREEMENT

This Adoption Agreement (“Adoption Agreement”) is executed by the undersigned (the
“Transferee”) pursuant to the terms of that certain Purchaser’s Rights and Voting Agreement dated
as of                     , 2011 (the “Agreement”) by and among the Company and certain of its shareholders.
Capitalized terms used but not defined herein shall have the respective meanings ascribed to such
terms in the Agreement. By the execution of this Adoption Agreement, the Transferee agrees as
follows:

(a) Acknowledgment. The Transferee acknowledges that the Transferee is acquiring
certain shares of the capital stock of the Company (the “Stock”), subject to the terms and
conditions of the Agreement.

(b) Agreement. The Transferee: (i) agrees that the Stock acquired by the Transferee,
and any Stock acquired by the Transferee in the future, shall be bound by and subject to the terms
of the Agreement, and (ii) hereby adopts the Agreement with the same force and effect as if the
Transferee were originally a party thereto.

(c) Notice. Any notice required or permitted by the Agreement shall be given to the
Transferee at the address listed beside the Transferee’s signature below.

EXECUTED AND DATED this            day of                     ,      .

	 	 	 	 	 	 	 
	 	 	TRANSFEREE:
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	Facsimile:	 	 	 	 

Accepted and Agreed:

	 	 	 	 	 
	MIDDLEFIELD BANC CORP.
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:

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