Document:

Exhibit 10.2

    

     

    SECURITY AGREEMENT

     

    This Security Agreement (this "Security Agreement") is entered into effective as of August 6, 2021 (the “Effective Date”), by and between Alan Weichselbaum (the "Shareholder"), and FinWise Bancorp, a
      Utah corporation (“Secured Party”).

     

    R E C I T A L S

     

    WHEREAS, Secured Party has agreed to loan the Shareholder $143,410 so that Shareholder can
        exercise options to purchase 30,000 shares (5,000 shares prior to the July 26, 2021 forward stock split) of stock in FinWise Bancorp, a Utah corporation, (the “Shares”); and

     

    WHEREAS, in order to induce Secured Party to extend the credit by the Note, Shareholder agreed
        to enter into this Security Agreement and to grant to Secured Party a security interest in the Collateral described below.

     

    A G R E E M E N T

     

    NOW THEREFORE, in consideration of the above recitals and for other good and valuable
        consideration, the receipt and adequacy of which are hereby acknowledged, Shareholder and Secured Party hereby agree as follows:

    

    

    1.           Definitions and Interpretation.  When used in this Security Agreement, the following terms have the following respective meanings:

     

    “Collateral” shall mean all of Shareholder’s right, title and interest in and to the Shares.

     

    “Lien” shall mean, with respect to the Collateral, any security interest, mortgage, pledge, lien, claim, charge or other encumbrance in, of, or on such
      property or the income therefrom.

    

    

    “Obligations” means all obligations arising or owed by Shareholder to Secured Party or its affiliates under the Note or this Security Agreement.

    

    

    “Person” shall mean and include an individual, a partnership, a corporation (including a business trust), a joint stock company, a limited liability
      company, an unincorporated association, a joint venture or other entity or a governmental authority.

    

    

    “Shares”  shall have the meaning set forth in the recitals.

    

    

    “UCC” means the Uniform Commercial Code as in effect in the State of Utah from time to time.

    

    

    Unless otherwise defined herein, all terms defined in the UCC have the respective meanings given to those terms in the UCC.

     

    

    
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    2.           Grant of Security Interest

    

    

    (a)          As security for the Obligations, Shareholder hereby pledges and grants to Secured Party a security interest
        in all right, title and interests of Shareholder in and to the Collateral, provided, however, that unless or until there is a default on the Note or this Agreement, any and all distributions and other amounts payable on the Collateral shall be paid
        to the holder or registered owner of the Collateral.  Notwithstanding the foregoing, Shareholder hereby irrevocably assigns and directs that following a default on the Note or this Agreement that all distributions and other amounts payable with
        respect to the Collateral be paid directly to Secured Party.

    

    

    (b)          Shareholder hereby irrevocably agrees to deliver any and all certificates representing the Shares to the Secured Party together
        with a Stock Power executed in blank to transfer the Shares to Secured Party.

    

    

    (c)          Shareholder hereby agrees to execute a Stock Power in “blank” and deliver the same to Secured Party to be held by Secured Party
        pending payment of the Note. Shareholder hereby irrevocably authorizes the Secured Party, to hold all of the certificate or certificates representing the shares pending repayment of the

    

    

    (d)          Shareholder hereby irrevocably authorizes the Secured Party, to the extent that the Secured Party deems it necessary or advisable,
        to file in any filing office in any UCC jurisdiction any initial financing statements and amendments thereto that identifies the Collateral and provides any other information required by part 5 of Article 9 of the UCC for the sufficiency or filing
        office acceptance of any financing statement or amendment.

    

    

    3.           General Representations and Warranties.  Shareholder represents and warrants to Secured Party that
        (i) Shareholder is the owner of the Collateral and that no other Person has any right, title, claim or interest (by way of lien or otherwise) in, against or to the Collateral; and (ii) upon execution of this Security Agreement and delivery of the
        certificate representing the Shares, Secured Party will have a perfected security interest in and to the Collateral.

     

    4.           Covenants Relating to Collateral.   Shareholder hereby agrees (i) to perform all acts that may be
        necessary to maintain, preserve, protect and perfect the Collateral, the Lien granted to Secured Party therein and the perfection and priority of such Lien; (ii) to pay promptly when due all taxes and other governmental charges, all Liens and all
        other charges now or hereafter imposed upon or affecting any Collateral; (iii) to procure, execute and deliver from time to time any endorsements, assignments, financing statements and other writings reasonably deemed
        necessary or appropriate by Secured Party to maintain and protect its Lien hereunder and the priority thereof and to deliver promptly upon the request of the Secured Party all originals of Collateral consisting of instruments; (iv) to appear in and
        defend any action or proceeding which may affect its title to or Secured Party’s interest in the Collateral; and (v) not to surrender or lose possession of (other than to Secured Party), sell, encumber, lease or otherwise dispose of or transfer any
        Collateral or right or interest therein, and to keep the Collateral free of all Liens.

     

    
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    5.           Litigation and Other Proceedings.  Upon the occurrence and during the continuation of an event of
        default, Secured Party shall have the right but not the obligation to bring suit or institute proceedings in the name of Shareholder or Secured Party to enforce any rights in the Collateral, in which event Shareholder shall at the request of
        Secured Party do any and all lawful acts and execute any and all documents reasonably required by Secured Party in aid of such enforcement.

    

    

    6.           Default and Remedies.

     

    (a)          Default.  Shareholder shall be deemed in default under this Security Agreement upon the occurrence
        and during the continuance of a default or breach of any of Shareholder’s obligations arising under the terms of the Note, or this Security Agreement.

     

    (b)          Remedies.  Upon the occurrence and during the continuance of any event of default, Secured Party
        shall have the rights of a secured creditor under the UCC and all rights granted by this Security Agreement and by law.  Following a default, the Secured Party shall have the right to repossess the number of shares equal to the following formula:

     

    Balance Due

    Per Share FMV

    

    

    For purposes of this paragraph, if Secured Party’s shares are traded on a national stock exchange, “Per Share FMV” shall mean the price per shares of the Secured Party’s common stock on such national exchange as of the
      close of business on the day of repossession. If Secured Party’s common stock is not traded on a national stock exchange, then “Per Share FMV” shall mean the book value of a single share of stock on the date of repossession as determined by Secured
      Party’s Board of Directors in its sole subjective discretion in accordance with past practice. “Balance Due” shall mean the total amount due under the Note and this Agreement at the time of repossession. Fractional amounts shall be rounded up to the
      next whole share even if closer to the lesser number of shares.

     

    7.           Miscellaneous.

     

    (a)          Notices.  Except as otherwise provided herein, all notices, requests, demands, consents, instructions or other
        communications to or upon Shareholder or Secured Party under this Security Agreement shall be in writing and faxed, mailed or delivered to each party to the facsimile number or the address set forth in the signature page hereof.

     

    (b)          Nonwaiver.  No failure or delay on the part of Secured Party in exercising any of its rights hereunder will operate as a
        waiver thereof or of any other right nor shall any single or partial exercise of any such right preclude any other further exercise thereof or of any other right.

     

    (c)          Amendments and Waivers.  This Security Agreement may not be amended or modified, nor may any of its terms be waived, except
        by written instruments signed by Shareholder and Secured Party.  Each waiver or consent under any provision hereof shall be effective only in the specific instances for the purpose for which given.

     

    
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    (d)          Assignments.  This Security Agreement shall be binding upon and inure to the benefit of Secured Party and Shareholder and
        their respective successors and assigns; provided, however, that Shareholder may not sell, assign or delegate rights and obligations hereunder without the prior written consent of Secured Party.

     

    (e)          Cumulative Rights, etc.  The rights, powers and remedies of Secured Party under this Security Agreement shall be in
        addition to all rights, powers and remedies given to Secured Party by virtue of any applicable law, rule or regulation of any governmental authority and the Note, all of which rights, powers, and remedies will be cumulative and may be exercised
        successively or concurrently without impairing Secured Party’s rights hereunder.  Shareholder waives any right to require Secured Party to proceed against any person or entity or to exhaust any Collateral or to pursue any remedy in Secured Party’s
        power.

     

    (f)           Payments Free of Taxes, Etc.  All payments made by Shareholder under the Note will be made by Shareholder free and clear
        of and without deduction for any and all present and future taxes, levies, charges, deductions and withholdings.

     

    (g)          Partial Invalidity.  If at any time any provision of this Security Agreement is or becomes illegal, invalid or
        unenforceable in any respect under the law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions of this Security Agreement nor the legality, validity or enforceability of such provision under the law of
        any other jurisdiction shall in any way be affected or impaired thereby.

     

    (h)          Construction.  Each of this Security Agreement and the Note is the result of negotiations among, and has been reviewed by,
        Shareholder and Secured Party.  Accordingly, this Security Agreement and the Note will be deemed to be the product of all parties hereto, and no ambiguity shall be construed in favor of or against Shareholder or Secured Party.

     

    (g)          Entire Agreement.  This Security Agreement and the Note constitute and contain the entire agreement of Shareholder and
        Secured Party and supersede any and all prior agreements, negotiations, correspondence, understandings and communications among the parties, whether written or oral, respecting the subject matter hereof.

     

    (h)          Governing Law.  This Security Agreement shall be governed by and construed in accordance with the laws of the State of Utah
        without reference to conflicts of law rules.

     

    (i)           Counterparts. This Security Agreement may be executed in any number of counterparts, each of which shall be an original,
        but all of which together shall be deemed to constitute one instrument.

     

    (j)          Waiver of Right to Jury.  In order to avoid delays and minimize expense Shareholder and Secured Party knowingly, voluntarily and intentionally waive any right to trial by jury in
      respect of any claim, demand, action or cause of action arising out of, under or in connection with this agreement or any related writing or any amendment thereto, whether now existing or hereinafter arising and whether sounding in contract or tort
      or otherwise, and each party hereby agrees and consents that any such claim, demand, action or cause of action shall be decided by a court trial without a jury, and a copy of this agreement may be filed with any court as evidence of the consent of
      each of the parties hereto to the waiver of its right to trial by jury.

     

    [Signatures on Next Page]

     

    
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    IN WITNESS WHEREOF, the parties have caused this Security Agreement to be
        executed as of the day and year first above written.

    

    

    SHAREHOLDER:

    

    

    	
            /s/ Alan Weichselbaum

          	

          
	
            Alan Weichselbaum

          	

          

    

    

    	
            Address:

          	
            50 Sealey Dr.

          	 	 
	 	
            Lawrence, NY 11559

          	 

    

    

    	
            SECURED PARTY:

          	

          
	 	 	

          
	
            FinWise Bancorp

          	

          
	 	 	

          
	
            /s/ Kent Landvatter

          	

          
	
            By:

          	
            Kent Landvatter

          	

          
	
            Its:

          	
            CEO

          	

          

    

    

    	
            Address:

          	
            764 E. Winchester St., Suite 100

          
	 	
            Murray UT 84121

          

    

    

    

    

    5Exhibit 10.3

     

    

    SECURED PROMISSORY NOTE

     

    	
            $143,410

          	
            Murray, Utah

          
	 	
            June 1, 2022

          

    

    

    FOR VALUE RECEIVED, Alan Weichselbaum (“Shareholder”), promises to pay to FinWise Bancorp, a Utah corporation (“Bancorp”), or its order, at 756 E. Winchester St., Suite 100, Murray, Utah 84107, or at such other place as
      the Bancorp may from time to time designate in writing, the sum of One Hundred Forty Three Thousand Four Hundred Ten ($143,410), in lawful money of the United States, plus interest calculated as set forth below (the “Loan”):

    

    

    1.           Payment. Shareholder promises to pay to Bancorp or its order, in lawful money of the United States of America, the principal sum of $143,410, together with interest on the unpaid balance as set forth
      below.

    

    

    2.           Interest. Interest shall accrue on the Note at the rate of 4% per annum. Interest will be calculated for the actual number of days the principal is outstanding and based on a three hundred sixty-five
      (365) day year.

    

    

    3.           Balloon Payment. Shareholder will make a single payment of principal and interest on December 31, 2022. Any and all payments hereunder shall be applied first and unpaid interest, and then to
      principal.

    

    

    4.           Security. This Note is secured by the Security Agreement delivered by Shareholder pursuant to which Shareholder has granted Bancorp a security interest in 30,000 shares of stock of the Bancorp (the
      “Security Agreement”). This Note and the Security Agreement are defined herein as the “Loan Documents.”

    

    

    5.           Maturity Date. Absent the occurrence of an Event of Default hereunder and the acceleration thereafter by Bancorp, the principal and interest and all other amounts payable by Shareholder under the
      terms of the Loan Documents, shall be due and payable in full on or before December 31, 2022 (the “Maturity Date”).  If the Maturity Date should fall (whether by acceleration or otherwise) on a day that is not a business day, payment of the
      outstanding amounts shall be made on the next succeeding business day.

    

    

    6.           Prepayment. Shareholder may prepay the Loan, in whole or in part, at any time without penalty or premium.

    

    

    7.           Application of Payments. Unless otherwise agreed to in writing, or otherwise required by applicable law, payments will be applied first, to costs of collection incurred after an Event of Default,
      including reasonable attorney's fees; second, to payments made by Bancorp after an Event of Default to preserve any collateral securing this Note; third, to any accrued interest; if any, and fourth, to the principal amount. All payments due hereunder
      shall be made (i) without deduction of any present and future taxes, levies, imposts, deductions, charges or withholdings, all of which amounts shall be paid by the Shareholder, and (ii) without any other

    set off.

     

    

    
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    8.           Event of Default. The occurrence of any of the following shall be deemed to be an event of default (“Event of Default”) hereunder:

    

    

    (a)          Failure by Shareholder to pay any monetary amount within thirty (30) days of its due date;

    

    

    (b)          Failure by Shareholder to perform any other obligation under this Note, and failure to cure such default within thirty (30) days after written notice from Bancorp;

    

    

    (c)          The occurrence of a default or an event of default as defined in any of the Loan Documents;

    

    

    (d)          A bankruptcy petition is filed made by Shareholder or a bankruptcy filing is made against Shareholder and such involuntary petition is not dismissed with sixty (60) days.

    

    

    9.           Remedies. Upon the occurrence of an Event of Default, and after any applicable notice period, at the option of the Bancorp, the entire principal amount of this Note together with all accrued interest
      thereon, if any, and all other amounts payable by Shareholder under the Loan Documents shall, without demand or notice, immediately become due and payable. Upon the occurrence of an Event of Default (and so long as such Event of Default shall
      continue), the entire principal amount of this Note, together with all accrued interest thereon, if any, all other amounts due, and any judgment for the principal, interest, if any, and other amounts shall bear interest at the rate of 15% per annum.
      No delay or omission on the part of the Bancorp in exercising any right under this Note shall operate as a waiver of such right.

    

    

    10.         Waiver. Shareholder hereby waives diligence, demand for payment, presentment for payment, protest, notice of nonpayment, notice of protest, notice of intent to accelerate, notice of acceleration,
      notice of dishonor, and notice of nonpayment, and all other notices or demands of any kind (except notices specifically provided for in the Loan Documents) and expressly agrees that, without in any way affecting the liability of Shareholder, the
      Bancorp may extend any maturity date or the time for payment of any installment due hereunder, accept additional security, and release any security or guaranty.

    

    

    11.         Change, Discharge, Termination, or Waiver. No provision of this Note may be changed, discharged, terminated, or waived except in a writing signed by the party against whom enforcement of the change,
      discharge, termination, or waiver is sought. No failure on the part of the Bancorp to exercise and no delay by the Bancorp in exercising any right or remedy under this Note or under the law shall operate as a waiver thereof.

    

    

    12.         Attorney’s Fees.  If any Event of Default occurs, Shareholder promises to pay all costs of enforcement and collection and preparation therefor, including but not limited to, reasonable attorneys’
      fees, whether or not any action or proceeding is brought to enforce the provisions hereof (including, without limitation, all such costs incurred in connection with any bankruptcy, receivership, or other court proceedings, whether at the trial or
      appellate level) or with regard to any arbitration proceeding.

     

    

    
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    13.         Choice of Law. This note shall be governed by and construed in accordance with the laws of the state of Utah without giving effect to conflict of laws principles.

    

    

    14.         Time of the Essence. Time is of the essence with regard to each provision of the Loan Documents as to which time is a factor.

    

    

    IN WITNESS WHEREOF, Shareholder has executed and delivered this Note as of the day and year first above written.

     

    

    	 	
            /s/ Alan Weichselbaum

          	

          
	 	
            Alan Weichselbaum

          

    

    

    

    

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