Document:

EXHIBIT 10.1

	
EXECUTION COPY

 

SECURITIES PURCHASE AGREEMENT

by and between

THE UNITED STATES DEPARTMENT OF THE TREASURY

and

INDEPENDENT BANK CORPORATION

 

Dated as of July 26, 2013

TABLE OF CONTENTS

	 			Page	
	
ARTICLE I

	
DEFINITIONS

	1	

	 				
		
Section 1.01.

		
Definitions of Certain Terms

	1	

		
Section 1.02.

		
Interpretation

	3	

	 					
	
ARTICLE II 

	
THE SECURITIES PURCHASE

	4	

	 				
		
Section 2.01.

		
Purchase and Sale of the Shares and the Warrant

	4	

		
Section 2.02.

		
Closing of the Securities Purchase

	4	

	 					
	
ARTICLE III

	
REPRESENTATIONS AND WARRANTIES

	4	

	 				
		
Section 3.01.

		
Representations and Warranties of the Company

	4	

	 					
	
ARTICLE IV

	
COVENANTS

	5	

	 				
		
Section 4.01.

		
Forbearances of the Seller

	5	

		
Section 4.02.

		
Further Action

	6	

		
Section 4.03.

		
Remaining Certification and Disclosure Requirements

	6	

		
Section 4.04.

		
Transferability Restrictions Related to Long-Term Restricted Stock

	6	

	 					
	
ARTICLE V

	
CONDITIONS TO THE CLOSING

	6	

	 				
		
Section 5.01.

		
Conditions to Each Party's Obligations

	6	

		
Section 5.02.

		
Condition to Obligations of the Seller

	7	

	 					
	
ARTICLE VI 

	
TERMINATION

	8	

	 				
		
Section 6.01.

		
Termination Events

	8	

		
Section 6.02.

		
Effect of Termination

	8	

	 					
	
ARTICLE VII

	
MISCELLANEOUS

	9	

	 				
		
Section 7.01.

		
Waiver; Amendment

	9	

		
Section 7.02.

		
Counterparts

	9	

		
Section 7.03.

		
Governing Law; Choice of Forum; Waiver of Jury Trial

	9	

		
Section 7.04.

		
Expenses

	9	

		
Section 7.05.

		
Notices

	9	

		
Section 7.06.

		
Entire Understanding; No Third Party Beneficiaries

	10	

		
Section 7.07.

		
Assignment

	11	

		
Section 7.08.

		
Severability

	11	

 

i

SECURITIES PURCHASE AGREEMENT

THIS SECURITIES PURCHASE AGREEMENT (as amended, supplemented or otherwise modified from time to time, this "Agreement") is dated as of July 26, 2013, by and between the United States Department of the Treasury (the "Seller") and Independent Bank Corporation, a Michigan corporation with its principal place of business in Ionia, Michigan and a registered bank holding company (the "Company").

RECITALS

WHEREAS, the Seller is currently the owner of and holds (i) 74,426 shares of Fixed Rate Cumulative Mandatorily Convertible Preferred Stock, Series B of the Company, including any and all accrued and unpaid dividends (the "Shares") and (ii) an amended and restated warrant to purchase up to 346,154 shares of Company Common Stock (the "Warrant"); and

WHEREAS, the Seller desires to sell to the Company, and the Company desires to purchase from the Seller, subject to the terms and conditions contained in this Agreement, all of the Shares and the Warrant (the "Securities Purchase").

NOW, THEREFORE, in consideration of the premises, and of the various representations, warranties, covenants and other agreements and undertakings of the parties hereto, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

ARTICLE I

DEFINITIONS

Section 1.01.    Definitions of Certain Terms. For purposes of this Agreement, the following terms are used with the meanings assigned below (such definitions to be equally applicable to both the singular and plural forms of the terms herein defined):

"Affiliate" means, with respect to any person, any person directly or indirectly controlling, controlled by or under common control with, such other person.  For purposes of this definition, "control" (including, with correlative meanings, the terms "controlled by" and "under common control with") when used with respect to any person, means the possession, directly or indirectly, of the power to cause the direction of management and/or policies of such person, whether through the ownership of voting securities, by contract or otherwise.

"Agreement" has the meaning set forth in the introductory paragraph hereof.

"Business Day" means any day that is not a Saturday, a Sunday or other day on which banking organizations in the State of New York or the State of Michigan are required or authorized by Law to be closed.

"Closing" has the meaning set forth in Section 2.02(A).

"Closing Date" has the meaning set forth in Section 2.02(A).

"Company" has the meaning set forth in the recitals to this Agreement.

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

"Company Material Adverse Effect" means a material adverse effect on the business, results of operations or financial condition of the Company and its consolidated Subsidiaries taken as a whole; provided, however, that Company Material Adverse Effect shall not be deemed to include the effects of (i) changes after the date hereof in general business, economic or market conditions (including changes generally in prevailing interest rates, credit availability and liquidity, currency exchange rates and price levels or trading volumes in the United States or foreign securities or credit markets), or any outbreak or escalation of hostilities, declared or undeclared acts of war or terrorism, in each case generally affecting the industries in which the Company and its Subsidiaries operate, (ii) changes or proposed changes after the date hereof in United States generally accepted accounting principles or regulatory accounting requirements, or authoritative interpretations thereof, (iii) changes or proposed changes after date hereof in securities, banking and other Laws of general applicability or related policies or interpretations of Governmental Entities (in the case of each of these clauses (i), (ii) and (iii), other than changes or occurrences to the extent that such changes or occurrences have or would reasonably be expected to have a materially disproportionate adverse effect on the Company and its consolidated Subsidiaries taken as a whole relative to comparable United States banking or financial services organizations), or (iv) changes in the market price or trading volume of the Company Common Stock or any other equity, equity-related or debt securities of the Company or its consolidated Subsidiaries (it being understood and agreed that the exception set forth in this clause (iv) does not apply to the underlying reason giving rise to or contributing to any such change).

"Compensation Regulations" means any guidance, rule or regulation, as the same shall be in effect from time to time, promulgated pursuant to or implementing Section 111 of the Emergency Economic Stabilization Act of 2008, as amended by the American Recovery and Reinvestment Act of 2009, or otherwise from time to time.

"Exchange Act" means the U.S. Securities Exchange Act of 1934, as amended.

"Governmental Entity" means any court, administrative agency or commission or other governmental or regulatory authority or instrumentality or self-regulatory organization.

"Law" means any law, statute, code, ordinance, rule, regulation, judgment, order, award, writ, decree or injunction issued, promulgated or entered into by or with any Governmental Entity.

"Liens" means any liens, licenses, pledges, charges, encumbrances, adverse rights or claims and security interests whatsoever.

"Purchase Price" has the meaning set forth in Section 2.01.

2

"Regulatory Event" means, with respect to the Company, that (i) the Federal Deposit Insurance Corporation or any other applicable Governmental Entity shall have been appointed as conservator or receiver for the Company or any Subsidiary; (ii) the Company or any Subsidiary shall have been considered in "troubled condition" for the purposes of 12 U.S.C. Sec. 1831i or any regulation promulgated thereunder; (iii) the Company or any Subsidiary shall qualify as "Undercapitalized," "Significantly Undercapitalized," or "Critically Undercapitalized" as those terms are defined in 12 U.S.C. Sec. 1831o or other applicable Law; or (iv) the Company or any Subsidiary shall have become subject to any formal or informal regulatory action requiring the Company or any Subsidiary to materially improve its capital, liquidity or safety and soundness.

"Relevant Period" means the period in which any obligation of the Company arising from financial assistance under the Troubled Asset Relief Program remains outstanding, as it may be further described in the Compensation Regulations.

"Securities Purchase" has the meaning set forth in the recitals in this Agreement.

"Seller" has the meaning set forth in the introductory paragraph to this Agreement.

"Shares" has the meaning set forth in the recitals to this Agreement.

"Subsidiary" means, with respect to any person, any bank, corporation, partnership, joint venture, limited liability company or other organization, whether incorporated or unincorporated, (i) of which such person or a subsidiary of such person is a general partner or managing member or (ii) at least a majority of the securities or other interests of which having by their terms ordinary voting power to elect a majority of the board of directors or persons performing similar functions with respect to such entity is directly or indirectly owned by such person and/or one or more subsidiaries thereof.

"Warrant" has the meaning set forth in the recitals to this Agreement.

Section 1.02.   Interpretation. The words "hereof," "herein" and "hereunder" and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section references are to this Agreement unless otherwise specified.  Whenever the words "include," "includes" or "including" are used in this Agreement, they shall be deemed to be followed by the words "without limitation." The term "person" as used in this Agreement shall mean any individual, corporation, limited liability company, limited or general partnership, joint venture, government or any agency or political subdivision thereof, or any other entity or any group (as defined in Section 13(d)(3) of the Exchange Act) comprised of two or more of the foregoing.  The table of contents and headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.  In this Agreement, all references to "dollars" or "$" are to United States dollars.  This Agreement and any documents or instruments delivered pursuant hereto or in connection herewith shall be construed without regard to the identity of the person who drafted the various provisions of the same.  Each and every provision of this Agreement and such other documents and instruments shall be construed as though all of the parties participated equally in the drafting of the same.  Consequently, the parties acknowledge and agree that any rule of construction that a document is to be construed against the drafting party shall not be applicable either to this Agreement or such other documents and instruments.

3

ARTICLE II

THE SECURITIES PURCHASE

Section 2.01.   Purchase and Sale of the Shares and the Warrant. Subject to, and on the terms and conditions of, this Agreement, effective at the Closing, the Company will purchase from the Seller, and the Seller will sell, transfer, convey, assign and deliver to the Company, all of the Shares and the Warrant, free and clear of all Liens.  The aggregate purchase price for the Shares and the Warrant shall be an amount in cash equal to Eighty-One Million Dollars ($81,000,000) (the "Purchase Price").

Section 2.02.   Closing of the Securities Purchase.

(A)            Subject to Article V, the closing of the Securities Purchase (the "Closing") shall be held at such time or date that is agreed to in writing by the Seller and the Company (the date on which the Closing occurs, the "Closing Date").  The Closing shall be held at such place as the Seller and the Company shall mutually agree in writing.

(B)           At the Closing, or simultaneously therewith, the following shall occur:

(1)      the Seller will deliver to the Company certificates for the Shares and the Warrant, duly endorsed in blank or accompanied by stock powers duly endorsed in blank or other required instruments of transfer; and

(2)      the Company will pay the aggregate Purchase Price to the Seller, by wire transfer in immediately available funds, to an account designated in writing by the Seller to the Company, such designation to be made not later than two Business Days prior to the Closing Date.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

Section 3.01.   Representations and Warranties of the Company. The Company hereby represents and warrants to the Seller as follows:

(A)          Existence and Power.  The Company is duly organized and validly existing as a corporation under the Laws of the State of Michigan and is registered as a bank holding company pursuant to the Bank Holding Company Act of 1956, as amended, and has all requisite power and authority to execute and deliver this Agreement and to consummate the transactions contemplated by this Agreement.

(B)           Authorization.  The execution and delivery of this Agreement, and the consummation by the Company of the transactions contemplated hereby, have been duly and validly approved by all necessary corporate action of the Company, and no other corporate or shareholder proceedings on the part of the Company are necessary to approve this Agreement or to consummate the transactions contemplated hereby.  This Agreement has been duly and validly executed and delivered by the Company, and (assuming the due authorization, execution and delivery of this Agreement by the Seller) this Agreement constitutes a valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as enforcement may be limited by general principles of equity whether applied in a court of law or a court of equity and by bankruptcy, insolvency and similar Laws affecting creditors' rights and remedies generally.

4

(C)           Non-Contravention.  Neither the execution and delivery of this Agreement nor the consummation by the Company of the transactions contemplated hereby will violate any provision of the Articles of Incorporation or bylaws or similar governing documents of the Company or, assuming that the consents, approvals, filings and registrations referred to in Section 3.01(D) are received or made (as applicable), applicable Law.

(D)          Consents and Approvals.  Except for the prior written approval of the Board of Governors of the Federal Reserve System and the State of Michigan Department of Insurance and Financial Services to the termination of the resolutions adopted March 26, 2013 by the Board of Directors of the Company and the Board of Directors of Independent Bank, a subsidiary of the Company, no consents or approvals of, or filings or registrations with, any Governmental Entity or of or with any other third party by and on behalf of the Company are necessary in connection with the execution and delivery by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby.

(E)           Securities Matters.  The Shares and the Warrant are being acquired by the Company for its own account and without a view to the public distribution or sale of the Shares or the Warrant.

(F)           Availability of Funds.  The Company will have, as of the Closing, sufficient funds available to consummate the transactions contemplated hereunder.

ARTICLE IV

COVENANTS

Section 4.01.   Forbearances of the Seller. From the date hereof until the Closing, without the prior written consent of the Company, the Seller will not:

(A)          directly or indirectly transfer, sell, assign, distribute, exchange, pledge, hypothecate, mortgage, encumber or otherwise dispose of, or engage in or enter into any hedging transactions with respect to, any of the Shares, the Warrant or any portion thereof or interest therein (other than pursuant to the Securities Purchase);

(B)           exercise the Warrant, in whole or in part; or

(C)           agree, commit to or enter into any agreement to take any of the actions referred to in Section 4.01(A).

5

Notwithstanding the foregoing, the Seller may undertake any of the actions set forth in Section 4.01(A) with an Affiliate of the Seller so long as this Agreement is assigned to such Affiliate in accordance with Section 7.07 of this Agreement.  For the avoidance of doubt, until the Closing, except as expressly set forth in this Section 4.01, the Seller shall continue to be able to exercise all rights and privileges with respect to the Shares and the Warrant.

Section 4.02.   Further Action. The Seller and the Company (A) shall each execute and deliver, or shall cause to be executed and delivered, such documents and other instruments and shall take, or shall cause to be taken, such further action as may be reasonably necessary to carry out the provisions of this Agreement and give effect to the transactions contemplated by this Agreement and (B) shall refrain from taking any actions that could reasonably be expected to impair, delay or impede the Closing or the consummation of the transactions contemplated by this Agreement.

Section 4.03.   Remaining Certification and Disclosure Requirements. The Company acknowledges and agrees to comply with the certification and disclosure requirements set forth in the Compensation Regulations, including without limitation those submissions that are required with respect to the final portion of the Relevant Period (see, for example, Sections 30.7(c) and (d), Sections 30.11(b) and (c) and Section 30.15(a)(3) of the Compensation Regulations and FAQ-14 in the Frequently Asked Questions to the Compensation Regulations, available at www.financialstability.gov).

Section 4.04.   Transferability Restrictions Related to Long-Term Restricted Stock. The Company acknowledges that any long-term restricted stock (as defined in Section 30.1 of the Compensation Regulations) awarded by the Company that has otherwise vested may not become transferable, or payable in the case of a restricted stock unit, at any time earlier than as permitted under the schedule set forth in the definition of long-term restricted stock in Section 30.1 of the Compensation Regulations.  For this purpose, aggregate financial assistance received (for purposes of the definition of long-term restricted stock) shall mean Seventy-Two Million Dollars ($72,000,000) (see FAQ-15 in the Frequently Asked Questions to the Compensation Regulations, available at www.financialstability.gov).  Upon the sale of the Shares to the Company, in the event that any long-term restricted stock awarded by the Company is not permitted to become transferable, or payable in the case of a restricted stock unit, under the schedule set forth in the definition of long-term restricted stock in Section 30.1 of the Compensation Regulations, the Company shall cancel such long-term restricted stock and/or restricted stock units.

ARTICLE V

CONDITIONS TO THE CLOSING

Section 5.01.   Conditions to Each Party's Obligations. The respective obligations of each of the Company and the Seller to consummate the Securities Purchase are subject to the fulfillment, or written waiver by the Company and the Seller, prior to the Closing, of each of the following conditions:

(A)          Completion of Equity Offering.  The Company shall have closed one or more transactions in which investors have collectively provided a minimum aggregate amount of Eighty-Six Million Dollars ($86,000,000) in gross cash proceeds to the Company in exchange for Company Common Stock.

6

(B)           Company Regulatory Approvals.  All regulatory approvals required to consummate the Securities Purchase shall have been obtained and shall remain in full force and effect and all statutory waiting periods in respect thereof shall have expired or been terminated.

(C)           No Injunctions or Restraints; Illegality.  No order, injunction or decree issued by any court or agency of competent jurisdiction or other legal restraint or prohibition preventing the consummation of the Securities Purchase shall be in effect.  No Law shall have been enacted, entered, promulgated or enforced by any Governmental Entity which prohibits or makes illegal the consummation of the Securities Purchase.

Section 5.02.   Condition to Obligations of the Seller. The obligation of the Seller to consummate the Securities Purchase is also subject to the fulfillment, or written waiver by the Seller, prior to the Closing, of the following conditions:

(A)          Other Events.  None of the following shall have occurred since the date hereof:

(1)      the Company or any of its Subsidiaries shall have (a) dissolved (other than pursuant to a consolidation, amalgamation or merger); (b) become insolvent or unable to pay its debts or failed or admitted in writing its inability generally to pay its debts as they become due; (c) made a general assignment, arrangement or composition with or for the benefit of its creditors; (d) instituted or have instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors' rights, or a petition shall have been presented for its winding-up or liquidation, and, in the case of any such proceeding or petition instituted or presented against it, such proceeding or petition shall have resulted in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation; (e) had a resolution passed for its winding-up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger); (f) sought or shall have become subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets; (g) had a secured party take possession of all or substantially all its assets or had a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets; (h) caused or shall have been subject to any event with respect to it which, under the applicable laws of any jurisdiction, had an analogous effect to any of the events specified in clauses (a) to (g) (inclusive); or (i) taken any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts;

(2)      a Governmental Entity in any jurisdiction shall have (a) commenced an action or proceeding against the Company or any of its Subsidiaries; or (b) issued or entered a temporary restraining order, preliminary or permanent injunction or other order applicable to the Company or any of its Subsidiaries, which in the case of (a) and (b) shall have had or shall be reasonably expected to have a Company Material Adverse Effect;

7

(3)      any fact, circumstance, event, change, occurrence, condition or development shall have occurred that, individually or in the aggregate, shall have had or shall be reasonably likely to have a Company Material Adverse Effect; or

(4)      any Regulatory Event not otherwise existing on the date hereof.

(B)            Representations and Warranties.  The representations and warranties set forth in Article III of this Agreement shall be true and correct as though made on and as of the Closing Date.

(C)           Consents and Approvals.  All consents and approvals of, and filings and registrations with, all Governmental Entities and of or with any other third party by and on behalf of the Company that are necessary in connection with the execution and delivery by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby shall have been obtained or made, as applicable, and shall remain in full force and effect.

(D)          Performance Obligations.  The Company shall have performed in all material respects all obligations required to be performed by it under this Agreement at or prior to the Closing.

(E)           Closing Certificate.  The Company shall deliver to the Seller a certificate, dated as of the Closing Date, signed on behalf of the Company by a senior executive officer thereof certifying to the effect that all conditions precedent to the Closing have been satisfied.

ARTICLE VI

TERMINATION

Section 6.01.   Termination Events. This Agreement may be terminated at any time prior to the Closing:

(A)          by mutual written agreement of the Company and the Seller; or

(B)          by the Company, upon written notice to the Seller, or by the Seller, upon written notice to the Company, in the event that the Closing Date does not occur on or before October 31, 2013; provided, however, that the respective rights to terminate this Agreement pursuant to this Section 6.01(B) shall not be available to any party whose failure to fulfill any obligation under this Agreement shall have been the cause of, or shall have resulted in, the failure of the Closing Date to occur on or prior to such date.

Section 6.02.   Effect of Termination. In the event of termination of this Agreement as provided in Section 6.01, this Agreement shall forthwith become void and have no effect, and none of the Seller, the Company, any Affiliates of the Company or any officers or directors of the Company shall have any liability of any nature whatsoever hereunder, or in connection with the transactions contemplated hereby, except that this Section 6.02 and Sections 7.03, 7.04, 7.05 and 7.06 shall survive any termination of this Agreement.

8

ARTICLE VII

MISCELLANEOUS

Section 7.01.   Waiver; Amendment. Any provision of this Agreement may be (A) waived in writing by the party benefiting by the provision, or (B) amended or modified at any time by an agreement in writing signed by each of the parties hereto.  Neither any failure nor any delay by any party in exercising any right, power or privilege under this Agreement or any of the documents referred to in this Agreement will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege will preclude any other or further exercise of such right, power or privilege.

Section 7.02.   Counterparts. This Agreement may be executed by facsimile or other electronic means and in counterparts, all of which shall be considered an original and one and the same agreement and shall become effective when counterparts have been signed by each of the parties and delivered to the other parties, it being understood that all parties need not sign the same counterpart.

Section 7.03.   Governing Law; Choice of Forum; Waiver of Jury Trial.

(A)          This Agreement and any claim, controversy or dispute arising under or related to this Agreement, the relationship of the parties, and/or the interpretation and enforcement of the rights and duties of the parties shall be enforced, governed, and construed in all respects (whether in contract or in tort) 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 New York applicable to contracts made and to be performed entirely within such State.  Each of the parties hereto agrees (a) to submit to the exclusive jurisdictions and venue of the United States District Court of the District of Columbia and the United States Court of Federal Claims for any and all civil actions, suits or proceedings arising out of or relating to this Agreement or the transactions contemplated hereby, and (b) that notice may be served upon (i) the Company at the address and in the manner set forth for notices to the Company in Section 7.05 and (ii) the Seller at the address and in the manner set forth for notices to the Seller in Section 7.05, but otherwise in accordance with federal law.

(B)          To the extent permitted by applicable Law, each of the parties hereto hereby unconditionally waives trial by jury in any civil legal action or proceeding relating to this Agreement or the transactions contemplated hereby.

Section 7.04.   Expenses. If requested by the Seller, the Company shall pay all reasonable out of pocket and documented costs and expenses associated with this Agreement and the transactions contemplated by this Agreement, including, but not limited to, the reasonable fees, disbursements and other charges of the Seller's legal counsel and financial advisors.

Section 7.05.   Notices. All notices and other communications hereunder shall be in writing and shall be deemed given on the date of delivery if delivered personally or telecopied (upon telephonic confirmation of receipt), on the first Business Day following the date of dispatch if delivered by a recognized next day courier service, or 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 below or pursuant to such other instructions as may be designated in writing by the party to receive such notice:

9

If to the Company to:

Independent Bank Corporation

230 West Main Street

Ionia, Michigan  48846

Attention:  Chief Financial Officer

Facsimile:  (616) 522-1858

With a copy to:

Varnum LLP

Bridgewater Place

333 Bridge Street, NW

Grand Rapids, Michigan  49504

Attention:  Michael G.  Wooldridge

Facsimile:  (616) 336-7000

If to the Seller to:

United States Department of the Treasury

1500 Pennsylvania Avenue, NW

Washington, D.C.  20220

Facsimile:  (202) 927-9225

Attention:  Chief Counsel Office of Financial Stability

With a copy to:

Cadwalader, Wickersham & Taft LLP

One World Financial Center

New York, New York  10281

Facsimile:  (212) 504-6666

Attention:  William P.  Mills

Section 7.06.   Entire Understanding; No Third Party Beneficiaries.

  This Agreement (together with the documents, agreements and instruments referred to herein) represents the entire understanding of the parties with respect to the subject matter hereof and supersedes any and all other oral or written agreements heretofore made with respect to the subject matter hereof.  Nothing in this Agreement, expressed or implied, is intended to confer upon any person, other than the parties hereto, any rights or remedies hereunder.

10

Section 7.07.   Assignment. Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof shall be assignable by any party hereto without the prior written consent of the other party, and any attempt to assign any right, remedy, obligation or liability hereunder without such consent shall be null and void; provided, however, that the Seller may assign this Agreement to an Affiliate of the Seller.  If the Seller assigns this Agreement to an Affiliate, the Seller shall be relieved of its obligations and liabilities under this Agreement but (i) all rights, remedies, obligations and liabilities of the Seller hereunder shall continue and be enforceable by and against and assumed by such Affiliate, (ii) the Company's obligations and liabilities hereunder shall continue to be outstanding and (iii) all references to the Seller herein shall be deemed to be references to such Affiliate.  The Seller will give the Company notice of any such assignment, provided that the failure to provide such notice shall not void any such assignment.

Section 7.08.   Severability. Any term or provision of this Agreement which is determined by a court of competent jurisdiction to be invalid, illegal or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid, illegal or unenforceable the remaining terms and provisions of this Agreement or affecting the validity, legality or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction, and if any provision of this Agreement is determined to be so broad as to be unenforceable, the provision shall be interpreted to be only so broad as is enforceable, in all cases so long as neither the economic nor legal substance of the transactions contemplated hereby is affected in any manner materially adverse to any party or its shareholders.  Upon any such determination, the parties shall negotiate in good faith in an effort to agree upon a suitable and equitable substitute provision to effect the original intent of the parties.

[Remainder of page intentionally left blank]

11

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.

	
 

	
INDEPENDENT BANK CORPORATION

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/S/

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
UNITED STATES DEPARTMENT OF THE TREASURY

	
 

	
 

	
 

	
 

	
By:

	
/S/

	
 

	
 

	
Name: Timothy G. Massad

	
 

	
 

	
Title:  Assistant Secretary for Financial Stability

 

 

[Signature Page to Securities Purchase Agreement]EXECUTION VERSION

 

AMENDMENT NO. 1 TO

AMENDED AND RESTATED LIMITED LIABILITY
COMPANY AGREEMENT

OF 

AIREON LLC 

A DELAWARE LIMITED LIABILITY COMPANY

 

This Amendment No.
1 to Amended and Restated Limited Liability Company Agreement (this “Amendment”) is dated as of June
27, 2013 and is entered into by NAV CANADA Satellite, Inc, a Delaware corporation, and Iridium Satellite LLC, a Delaware limited
liability company (collectively, the “Members”), NAV CANADA, and Aireon LLC (the “Company”).

 

RECITALS

 

A.            The Members,
NAV CANADA and the Company are party to that certain Amended and Restated Limited Liability Company Agreement, dated as of November
19, 2012, as amended (the “Operating Agreement”).

 

B.            The Members,
NAV CANADA and the Company wish to amend the Company’s Operating Agreement as set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged by each of the parties hereto, the parties agree as follows:

 

1.           Amendments.

 

a.              The following
definitions contained in Article 1 of the Operating Agreement are hereby amended and restated in their entirety and replaced with
the following:

 

"“Accrued
Dividend” means, (i) with respect to any Preferred Interest issued on the Effective Date or in connection with the Third
NAV CANADA Tranche Financing, the Fourth NAV CANADA Tranche Financing, the Fifth NAV CANADA Tranche Financing or the exercise of
the Contingent B Financing Option (if any), (A) prior to January 1, 2016, zero (0), and (B) on or after January 1, 2016, an amount
that would have accrued if the total amount of Unreturned Capital attributable to such Preferred Interest had been accruing daily
at the rate of five percent (5%) per annum, from (and including) the date of issuance of such Preferred Interest until (and including)
the date on which such Preferred Interest is converted into Common Interest or redeemed with full payment of applicable Redemption
Price by the Company, and (ii) with respect to any Preferred Interest issued in connection with the Second NAV CANADA Tranche Financing,
(A) prior to January 1, 2016, zero (0), and (B) on or after January 1, 2016, an amount that would have accrued if the total amount
of Unreturned Capital attributable to such Preferred Interest had been accruing daily at the rate of ten percent (10%) per annum,
from (and including) the date of issuance of such Preferred Interest until (and including) the date on which such Preferred Interest
is converted into Common Interest or redeemed with full payment of applicable Redemption Price by the Company."

 

*** Certain confidential information contained in this document,
marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of
the Securities Exchange Act of 1934, as amended.

 

    	 

    	 

    

 

““Fifth
NAV CANADA Tranche Financing Conditions” means the following:

 

		(i)	[***];

 

		(ii)	[***];

		 	 

		(iii)	[***];

		 	 

		(iv)	[***]; and

		 	 

		(v)	[***].”

 

"“Second
NAV CANADA Tranche Financing Conditions” means the following:

 

		(i)	[***]:

 

		(A)	[***];

 

		(B)	[***]; and

 

		(C)	[***];

 

		(ii)	[***]; and

 

		(iii)	[***]."

 

"“Third
NAV CANADA Tranche Financing Conditions” means the following:

 

		(i)	[***]:

 

		(A)	[***];

 

		(B)	[***];

 

		(C)	[***];

 

		(D)	[***];

 

		(E)	[***];

 

		(F)	[***]; and

 

		(G)	[***]; and

 

		(ii)	[***]."

 

b.             Section
3.6.4 of the Operating Agreement is hereby deleted in its entirety and replaced with the following:

 

*** Certain confidential information contained in this document,
marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of
the Securities Exchange Act of 1934, as amended.

 

    	 

    	 

    

 

“3.6.4              Contingent
Financing. Without limiting the rights of the Members or NAV CANADA under other provisions of this Agreement, each of the Members
and NAV CANADA severally agrees to [***]. If [***], then NAV CANADA US Subsidiary shall[***] have an option, exercisable at its
sole discretion, in whole or in part, by written notice delivered to the Company, at any time and from time to time (so long as
NAV CANADA US Subsidiary has not prior to such time elected not to fund any NAV CANADA Financing in accordance with the terms of
Section 3.6.3), to extend additional financing to the Company, at any time and from time to time (so long as NAV CANADA US Subsidiary
has not prior to such time elected not to fund any NAV CANADA Financing in accordance with the terms of Section 3.6.3), in exchange
for issuance by the Company of additional Preferred Interests in an aggregate amount not to exceed 19% of the Fully Diluted Company
Interests, at a price equal to $[***] per basis point (i.e., one one-hundredth of one percent (.01%)) (for an aggregate amount
of $[***] assuming full exercise of such option) (subject to any adjustment necessary for any Interest split, combination, reclassification
or similar events) (“Contingent Financing Option B”; together with Contingent Financing Option A, collectively
or individually, a “Contingent Financing”).” For purposes of this Section 3.6.4, [***]. Notwithstanding
anything to the contrary in the foregoing, [***] if at any time and from time to time [***], the Company’s Board of Directors
determines that it is in the best interest of the Company to obtain bridge financing (and NAV CANADA US Subsidiary has not prior
to such time elected not to fund any NAV CANADA Financing in accordance with the terms of Section 3.6.3), then (i) the Company
may obtain such bridge financing [***] (in such an event, the bridge financing described in this clause (i) of Section 3.6.4 shall
be deemed included in Contingent Financing Option A for purposes of this Agreement), or (ii) if the Company is unable to obtain
Contingent Financing Option A as described in the foregoing clause (i) of this Section 3.6.4, after the use of commercially reasonable
efforts to obtain such Contingent Financing Option A, then NAV CANADA US Subsidiary shall have the option, exercisable at its sole
discretion, to extend such additional financing to the Company, [***]in exchange for issuance by the Company of additional Preferred
Interests, in an aggregate amount not to exceed 19% of the Fully Diluted Company Interests, at a price equal to $[***] per basis
point (i.e., one one-hundredth of one percent (.01%)) (for an aggregate amount of $[***] assuming full exercise of such option)
(subject to any adjustment necessary for any Interest split, combination, reclassification or similar events) (in such event the
additional issuance to NAV CANADA US Subsidiary pursuant to this clause (ii) of Section 3.6.4 shall be deemed included in Contingent
Financing Option B for purposes of this Agreement.

 

2.              Except as
expressly provided herein, nothing in this Amendment shall be deemed to waive or modify any of the other provisions of the Operating
Agreement. In the event of any conflict between the Operating Agreement, any previous amendment of the Operating Agreement, this
Amendment and any subsequent amendment, the document later in time shall prevail.

 

3.              This Amendment
shall be binding upon and shall inure to the benefit of the successors in interest of the parties hereto.

 

*** Certain confidential information contained in this document,
marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of
the Securities Exchange Act of 1934, as amended.

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the undersigned has caused this Amendment to be executed as of the date first hereinabove set forth.

 

AIREON LLC

 

	By:	/s/ Donald L. Thoma	 
	Name:  	Donald L. Thoma	 
	Title:  	Chief Executive Officer	 

 

NAV CANADA

 

	By:	/s/ John W. Crichton	 
	Name:  	John W. Crichton	 
	Title:  	President & CEO	 

 

	By:	/s/ Neil R. Wilson	 
	Name:  	Neil R. Wilson	 
	Title:  	Executive Vice President, Administration & General Counsel

 

MEMBERS:

 

	NAV CANADA Satellite, Inc.	Iridium Satellite LLC

  

	By:	/s/ John W. Crichton	 	By:	/s/ Thomas J. Fitzpatrick
	Name:  	John W. Crichton	 	Name:  	Thomas J. Fitzpatrick
	Title:  	President	 	Title:  	Chief Financial Officer

 

	By:	/s/ Neil R. Wilson	 
	Name:  	Neil R. Wilson	 
	Title:  	Vice President & Secretary	 

 

*** Certain confidential information contained in this document,
marked by brackets, has been omitted and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of
the Securities Exchange Act of 1934, as amended.

 

Signature Page to Amendment No. 1

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