Document:

Exhibit 10.1

      

    

    

    

    FORM OF CONSULTANT AGREEMENT

    This Consultant Agreement (the “Agreement”), is made and entered into effective September 22,
      2020, by and between Banner Bank, a Washington state chartered commercial bank (the “Bank”), and Richard B. Barton (“Consultant”).

    WHEREAS, Consultant has been employed as a senior officer of the Bank (together with its affiliates, “Banner Bank”) but will retire from Banner Bank at the close of business on October 31, 2020; and

    WHEREAS, Consultant’s experience, knowledge, and contacts in the banking business are valuable to Banner Bank and Banner Bank desires
      to engage Consultant’s services as a consultant for the term hereof, and Consultant is willing to provide such services.

    NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties agree as follows: 

    

    1.          Consultant Services. Banner Bank hereby
      engages Consultant to provide services as a consultant to Banner Bank, and Consultant hereby agrees to provide such services, in accordance with the terms and conditions of this Agreement.

     2.          Term. The term of this Agreement
      commences on November 1, 2020 and will continue until the close of business on January 31, 2021 (the “End Date”), unless earlier terminated by either party by giving thirty (30) days’ written notice to the
      other party or the parties agree to extend the term beyond the End Date on a month-to-month basis.

    3.          Duties. During the term hereof, Consultant
      shall render to Banner Bank such services of an advisory or consultative nature as Banner Bank may reasonably request, and Consultant shall be available for advice and counsel to the officers and directors of Banner Bank at reasonable times so that
      Banner Bank may have the benefit of Consultant’s experience, knowledge, contacts or reputation in the banking business. The parties agree that the services provided by Consultant under this Agreement are not expected to exceed ten (10) hours per week
      on average, such that, after October 31, 2020, the level of the Consultant’s services to Banner Bank is expected to permanently decrease to no more than 20% of his past service to Banner Bank.

    4.          Independent Consultant. It is expressly
      understood that Consultant is an independent contractor under this Agreement and, as such, he shall have no authority, executive or otherwise, to bind Banner Bank. Consultant is solely responsible for all
      federal, state, and local tax obligations arising out of the payments and benefits provided to Consultant under this Agreement. Consultant acknowledges that he has been advised by Banner Bank to consult with his own tax, financial, and legal advisers
      regarding this Agreement and the tax consequences of any payments hereunder.

    5.          Compensation

    

       a.          As compensation for the services provided by Consultant under this Agreement,
      Banner Bank will pay Consultant (i) a fixed fee of $6,000.00 per month (the “Fees”), payable monthly during the term of this Agreement, plus (ii) a lump-sum amount equal to $70,000.00, payable as of the first
      day of the term of this Agreement. If the Agreement is terminated on thirty (30) days’ notice by either party under Section 2, Banner Bank will pay Consultant, on a pro-rata basis, any Fees then due and payable for any services completed up to and
      including the date of the termination.

     

      

         b.          As additional compensation for the services provided by Consultant under this Agreement through the End Date, and conditioned on Consultant’s performance of such

    

    
      
        
          

      

      services through the End Date, Banner Bank is prepared to pay $30,000.00 (the “Additional Payment Amount”) to Consultant on the End Date. However, Consultant hereby
        unconditionally and irrevocably waives any right he may otherwise have (x) with respect to the Additional Payment Amount and (y) to otherwise control the disposition of the Additional Payment Amount. Consultant acknowledges and agrees that (i)
        absent this waiver, he was entitled to receive the Additional Payment Amount but has voluntarily decided to waive all of his rights to receive or claim the Additional Payment Amount (including any right to direct the disposition of the Additional
        Payment Amount), and (ii) pursuant to this waiver, Banner Bank has the sole discretion to determine whether the Additional Payment Amount will be paid and to whom the Additional Payment Amount will be paid (if at all), Consultant retains no right
        to receive, or direct the disposition of, the Additional Payment Amount, and Consultant releases any claims he may have with respect to the Additional Payment Amount.

       

      

              c.          Unless Banner Bank otherwise agrees in writing, Consultant is solely responsible for any travel or other costs or expenses incurred by him in connection with the performance of
        services under this Agreement, and in no event will Banner Bank reimburse Consultant for any such costs or expenses.

         

          

             d.          The terms and amount of any compensation paid to Consultant for any services rendered under this Agreement after the End Date shall be agreed to between the parties on a matter by matter or
          time-based basis.

      

    

    6.           Covenant of Confidentiality by Consultant. During and after his engagement as a consultant hereunder,
      except for the purpose of carrying out his duties hereunder, Consultant shall not divulge to others or use for his personal benefit any non-public information or data acquired by him while in the employ of Banner Bank or as a consultant for Banner
      Bank which relates to the methods, processes, customers or other trade secrets or confidential information of Banner Bank or the subsidiaries or affiliates of either. To the extent that Consultant continues to utilize Banner Bank’s email and other
      electronic information systems, Consultant shall adhere to Banner Bank’s rules and procedures pertaining to those systems.

    [Signatures appear on the following page.]

     

    

     

    

     

    

    
      
        

    

    

    

    IN WITNESS WHEREOF, Banner Bank and Richard B. Barton agree to the foregoing Consultant Agreement, effective as of
      the date first written above.

    Banner Bank

    By: _____________________________   

      

    Name: ___________________________

    Title: ____________________________

    

    

    Consultant

    _________________________________ 

    

    Richard B. Barton

    

    

    

    

    By signing below, I acknowledge and agree that the waiver under Section 5(b) of this Agreement applies to any community property rights I may have to the Additional Payment
      Amount, and I agree to waive any rights and release any claims I may have with respect to the Additional Payment Amount, including any right to direct the disposition of the Additional Payment Amount.

    __________________________________

    

    Georgette Barton

    Spouse of Richard B. Bartonsanw-ex43_453.htm

Exhibit 4.3

DESCRIPTION OF COMMON STOCK  

General

The following description summarizes the most important terms of our common stock. Because it is only a summary, it does not contain all the information that may be important to you. For a complete description of the matters set forth in this “Description of Common Stock,” you should refer to our articles of incorporation (the “articles of incorporation”), and second amended and restated bylaws, as amended (the “bylaws”), which are included as exhibits to our Annual Report on Form 10-K, and to the applicable provisions of Nevada law. Our authorized capital stock consists of 50,000,000 shares of common stock, par value $0.001 per share and 5,000,000 shares of preferred stock, par value $0.001 per share. Our board of directors is authorized, without stockholder approval, except as required by the listing standards of The Nasdaq Stock Market LLC, to issue additional shares of our capital stock.  

Common Stock

Voting Rights. Each holder of our common stock is entitled to one vote for each share on all matters submitted to a vote of the stockholders, including the election of directors. Our stockholders do not have cumulative voting rights in the election of directors. Our bylaws provide that in contested director elections (meaning elections in which the number of nominees exceeds the number of directors to be elected), directors are elected by a plurality of the votes cast, and the nominees receiving the greatest numbers of votes are elected to serve as directors. Our bylaws further provide that our directors are elected in uncontested elections by a majority of the votes cast, meaning that a director nominee will be elected if the number of votes cast for that nominee’s election exceeds the number of votes cast against that nominee’s election.

Dividends. Subject to the preference in dividend rights of any series of preferred stock that we may issue in the future, the holders of common stock are entitled to receive such cash dividends, if any, as may be declared by our board of directors out of legally available funds. 

Liquidation. In the event of any liquidation, dissolution or winding up, after payment of all debts and liabilities and after payment of the liquidation preferences of any shares of preferred stock then outstanding, the holders of the common stock will be entitled to participate pro rata in all assets that are legally available for distribution. 

Rights and Preferences. Holders of common stock have no preemptive, subscription, redemption, sinking fund or conversion rights and are not subject to further calls or assessments. The rights and preferences of holders of common stock will be subject to the rights of any series of preferred stock that we may issue in the future. 

Preferred Stock

Our board of directors, without any vote or action by our stockholders, has the authority to designate and issue up to an aggregate of 5,000,000 shares of preferred stock from time to time, in one or more classes or series or shares, on terms that it may determine, including among other things:

	
 
	
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its dividend rate;

	
 
	
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its liquidation preference;

	
 
	
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whether or not the shares will be convertible into, or exchangeable for, any other securities; 

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whether or not the shares will be subject to any restrictions on the repurchase or redemption of such shares while there is any arrearage in the payment of dividends or sinking fund installments; and

	
 
	
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whether or not the shares will have voting rights, and, if so, determine the extent of the voting powers and the conditions under which the shares will vote as a separate class.

Our board of directors could issue all or part of the preferred stock with, among other things, substantial voting power or advantageous conversion rights. This stock could be issued to persons deemed by our board of directors likely to support our current management in a context for control of us, either as a precautionary measure or in response to a specific takeover threat.  The issuance of preferred stock could adversely affect the voting power of holders of common stock or reduce the likelihood that common stockholders would receive distributions or other payments upon liquidation. Any such issuance could have the effect of decreasing the market price of the common stock. The issuance of preferred stock also could have the effect of delaying, deterring or preventing a change in control.

Anti-Takeover Effects of Certain Provisions of Nevada Law and Our Articles of Incorporation and Bylaws

 

Anti-Takeover Effects of Certain Provisions of Nevada Law and Nevada Anti-takeover Statutes.

 

Certain provisions of the Nevada Revised Statutes, or NRS, as described below, may delay or discourage transactions involving an actual or potential change in our control or change in our management, including transactions in which stockholders might otherwise receive a premium for their shares or transactions that our stockholders might otherwise deem to be in their best interests.

 

Combinations with Interested Stockholders Statutes

 

Nevada’s “combinations with interested stockholders” statutes, NRS 78.411 through 78.444, inclusive, prohibit specified types of business “combinations” between certain Nevada corporations and any person deemed to be an “interested stockholder” for two years after such person first becomes an “interested stockholder” unless (1) the corporation’s board of directors approves, in advance, either the combination itself, or the transaction by which such person becomes an interested stockholder, or (2) the combination is approved by the board of directors and 60% of the then-outstanding voting power of the corporation’s stockholders not beneficially owned by the interested stockholder, its affiliates and associates. Further, in the absence of the prior approval described above, certain restrictions may apply even after such two-year period. However, these statutes do not apply to any combination of a corporation and an interested stockholder after the expiration of four years after the person first became an interested stockholder.

 

For purposes of these statutes, an “interested stockholder” is any person who is (1) the beneficial owner, directly or indirectly, of 10% or more of the voting power of the outstanding voting shares of the corporation, or (2) an affiliate or associate of the corporation and at any time within the two previous years was the beneficial owner, directly or indirectly, of 10% or more of the voting power of the then outstanding shares of the corporation. The definition of the term “combination” is sufficiently broad to cover most significant transactions between a corporation and an interested stockholder. These statutes generally apply to “resident domestic corporations,” namely Nevada corporations with 200 or more stockholders of record. However, a Nevada corporation may elect in its articles of incorporation not to be governed by these particular laws, but if such election is not made in the corporation’s original articles of incorporation, the amendment (1) must be approved by the affirmative vote of the holders of stock representing a majority of the outstanding voting power of the corporation not beneficially owned by interested stockholders or their affiliates and associates, and (2) is not effective until 18 months after the 

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vote approving the amendment and does not apply to any combination with a person who first became an interested stockholder on or before the effective date of the amendment. 

 

Our original articles of incorporation include a provision providing that at such time, if any, that we become a “resident domestic corporation” as defined in the NRS, we will not be subject to, or governed by, any of the provisions of NRS 78.411 to 78.444, inclusive, as amended from time to time, or any successor statute.  As a result, pursuant to NRS 78.434, the “combinations with interested stockholders” statutes will not apply to us, unless our articles of incorporation are subsequently amended to provide that we are subject to those provisions.

 

Acquisition of Controlling Interest Statutes

 

Nevada’s “acquisition of controlling interest” statutes, NRS 78.378 through 78.3793, inclusive, contain provisions governing the acquisition of stockholder voting power above specified thresholds in certain Nevada corporations. These “control share” laws provide generally that any person that acquires a “controlling interest” in certain Nevada corporations may be denied voting rights, unless a majority of the disinterested stockholders of the corporation elects to restore such voting rights. These laws provide that a person acquires a “controlling interest” whenever a person acquires shares of a subject corporation that, but for the application of these provisions of the NRS, would enable that person to exercise (1) one-fifth or more, but less than one-third, (2) one-third or more, but less than a majority or (3) a majority or more, of all of the voting power of the corporation in the election of directors. Once an acquirer crosses one of these thresholds, shares which it acquired in the transaction taking it over the threshold and within the 90 days immediately preceding the date when the acquiring person acquired or offered to acquire a controlling interest become “control shares” to which the voting restrictions described above apply.

 

In our bylaws, we have elected not to be governed by, and to otherwise opt out of, the provisions of NRS 78.378 to 78.3793, inclusive. Absent such provision in our bylaws, these statutes would apply to us as of a particular date if we were to have 200 or more stockholders of record (at least 100 of whom have addresses in Nevada appearing on our stock ledger at all times during the 90 days immediately preceding that date) and do business in the State of Nevada directly or through an affiliated corporation, unless our articles of incorporation or bylaws in effect on the tenth day after the acquisition of a controlling interest provide otherwise.

 

NRS 78.139(4) also provides that directors of a Nevada corporation may resist a change or potential change in control of the corporation if the board of directors determines that the change or potential change is opposed to, or not in, the best interest of the corporation upon consideration of any relevant facts, circumstances, contingencies or constituencies that the directors are entitled, but not required, to consider when exercising their directorial powers pursuant to NRS 78.138(4).

 

The existence of the foregoing provisions and other potential anti-takeover measures could limit the price that investors might be willing to pay in the future for shares of our common stock. They could also deter potential acquirers of our company, thereby reducing the likelihood that you could receive a premium for your common stock in an acquisition.

 

Articles of Incorporation and Bylaw Provisions.

 

Our articles of incorporation and bylaws contain provisions that might have an anti-takeover effect. These provisions, which are summarized below, may have the effect of delaying, deterring or preventing a change in control of our company. They could also impede a transaction in which our stockholders might receive a premium over the then-current market price of our common stock and our stockholders’ ability to approve transactions that they consider to be in their best interests.

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Articles of Incorporation. Our authorized but unissued shares of common stock and preferred stock are available for our board of directors to issue without stockholder approval. We may use these additional shares for a variety of corporate purposes, including future public or private offerings to raise additional capital, corporate acquisitions and employee benefit plans. The existence of our authorized but unissued shares of common stock and preferred stock could render more difficult or discourage an attempt to obtain control of our company by means of a proxy contest, tender offer, merger or other transaction. Our authorized but unissued shares may be used to delay, defer or prevent a tender offer or takeover attempt that a stockholder might consider in its best interest, including those attempts that might result in a premium over the market price for the shares held by our stockholders. 

 

Bylaws. Certain provisions of our bylaws may be considered to have anti-takeover effects, including advance notice requirements for director nominations and other stockholder proposals. Our bylaws establish advance notice procedures for stockholder proposals to be brought before an annual meeting of stockholders, and for proposed nominations of candidates for election to our board of directors at an annual or special meeting of stockholders. Generally, such notices must be received by our corporate secretary at our principal executive offices, in the case of an annual meeting, between 90 days and 120 days prior to the first anniversary of the preceding year’s annual meeting and, in the case of a special meeting called for the purpose of electing directors, between 90 and 120 days prior to the date of the special meeting or within 10 days after the day on which public announcement of the date of the special meeting is first made by us. In addition, our board of directors has the authority to amend or repeal our bylaws, or to adopt new bylaws, which could have the effect of delaying, deterring or preventing a change of control.

 

Certain other provisions of Nevada Law and our Articles of Incorporation, and Bylaws

 

Certain provisions of Nevada Law, our articles of incorporation and bylaws, which are summarized below, could have the effect of discouraging others from attempting hostile takeovers and, as a consequence, they might also inhibit temporary fluctuations in the market price of our common stock that often result from actual or rumored hostile takeover attempts. These provisions might also have the effect of preventing changes in our management. It is possible that these provisions could make it more difficult to accomplish transactions that stockholders might otherwise deem to be in their best interests. 

 

Removal of Directors. Directors may be removed with or without cause by the holders of not less than two-thirds of the voting power of all of our then-outstanding stock entitled to vote generally in the election of directors (voting as a single class), excluding stock entitled to vote only upon the happening of a fact or event unless such fact or event shall have occurred.

 

Resolutions to Change Authorized Number of Directors. The authorized number of directors shall be fixed from time to time by resolution of the Board of Directors but shall not be less than three or more than 10. 

 

Vacancies may be Filled by Directors. All vacancies, including newly created directorships, shall be filled solely by the affirmative vote of a majority of the remaining directors then in office, even though less than a quorum of the Board of Directors and the director(s) so chosen shall hold office until their successors are elected and qualified, at which the term of the class to which he or she has been elected expires, or until his or her earlier resignation or removal.

 

Advance Notice Procedures. Stockholders seeking to present proposals before a meeting of stockholders or to nominate candidates for election as directors at a meeting of stockholders must provide advance and timely notice in writing, and also specify requirements as to the form and content of a stockholder’s 

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notice.

 

No Cumulative Voting Rights. Our articles of incorporation and bylaws do not provide for cumulative voting rights. As a result, the holders of a majority of the shares of common stock entitled to vote in any election of directors would have the ability to elect all of the directors standing for election.

 

Action by Written Consent; Special Meetings of Stockholders. Stockholder action can only be taken at an annual or special meeting of stockholders called and noticed in the manner required by the bylaws. The stockholders may not in any circumstance take action by written consent.

 

Authorized but Unissued Shares. Our authorized but unissued shares of common stock will be available for future issuance without stockholder approval. These additional shares may be utilized for a variety of corporate purposes, including future public offerings to raise additional capital, corporate acquisitions and employee benefit plans. The existence of authorized but unissued shares of common stock could render more difficult or discourage an attempt to obtain control of a majority of our common stock by means of a proxy contest, tender offer, merger or otherwise. 

Transfer Agent and Registrar 

The transfer agent and registrar for our common stock is Transfer Online, Inc. 

Listing 

Our common stock is listed on the Nasdaq Capital Market under the symbol “SANW”.

 

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