Document:

American Patriot Financial Group, Inc. 8-K

EXHIBIT
10.1

 

SERIES
A PREFERRED STOCK PURCHASE AGREEMENT

 

THIS
SERIES A PREFERRED STOCK PURCHASE AGREEMENT (this “Agreement”), is made as of September 30, 2014, by and between
Complete Financial Solutions, Inc., a Nevada corporation (“Investor”), and American Patriot Bank, a Tennessee
corporation (the “Bank”).

 

NOW,
THEREFORE, in consideration of the covenants, promises and representations set forth herein, and for other good and valuable consideration,
THE PARTIES HERETO AGREE AS FOLLOWS:

 

		1.0	PURCHASE
                                         AND SALE; CLOSING.

 

1.1.    Sale
and Issuance of Fixed Rate Noncumulative Perpetual Stock, Series A.

 

(a)    Series
A Preferred Stock. Subject to the terms and conditions of this Agreement, Investor agrees to purchase and the Bank agrees
to sell and issue to Investor at the Closing (as defined below) Two Hundred (200) shares (the “Shares”) of
its preferred stock designated as the Fixed Rate Noncumulative Perpetual Preferred Stock, Series A (the “Series A Preferred
Stock”) for $200,000 in U.S. dollars (the “Purchase Price”).

 

(b)    Closing.
Subject to the terms and conditions of this Agreement, including for the sake of clarity, the satisfaction of the closing conditions
set forth in Section 5.1 and Section 5.2, the Bank hereby agrees to sell and Investor hereby agrees to purchase
the Shares. Subject to satisfaction of the closing conditions set forth in Section 5.1 and Section 5.2, the purchase
and sale of the Series A Preferred Stock shall take place at the offices of the Bank, 3095 East Andrew Johnson Highway, Greeneville,
Tennessee 37745, at 10:00 a.m. on or before October 30, 2014, or at such other time and place as the Bank and Investor agree in
writing (which time and place are designated as the “Closing” or the “Closing Date”). At
the Closing, the Bank shall deliver to Investor a stock certificate representing the Series A Preferred Stock purchased hereunder.

 

		2.0	REPRESENTATIONS
                                         AND WARRANTIES OF THE BANK 

 

The
Bank hereby represents and warrants to Investor that as of the date of this Agreement, except as otherwise set forth in the Schedule
of Exceptions attached to this Agreement (the “Schedule of Exceptions”), which exceptions shall be deemed to
be representations and warranties as if made by the Bank pursuant to this Agreement:

 

2.1    Organization.
The Bank is a corporation duly organized and validly existing under the laws of the State of Tennessee. The Bank has all requisite
corporate power and authority to execute, deliver and perform its obligations under this Agreement, and to consummate the transactions
contemplated thereby. The Bank is duly qualified to transact business and is in good standing in each jurisdiction in which the
failure to so qualify would have a material adverse effect on its business, properties, results of operations or financial condition
(“Material Adverse Effect”).

 

2.2    Authorization;
Enforceability; Valid Issuance of the Series A Preferred Stock

 

(a)         Authorization.
All corporate action on the part of the Bank necessary for the authorization, execution, delivery and performance of this Agreement
and the authorization, issuance (or reservation for issuance), sale and delivery of the Series A Preferred Stock has been taken
or will be taken prior to the Closing. This Agreement constitutes a valid and legally binding obligation of the Bank, enforceable
in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws
of general application affecting enforcement of creditors’ rights

 

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(b)         generally,
and except as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.

 

(c)         Valid
Issuance of Series A Preferred Stock. The Series A Preferred Stock being purchased by Investor pursuant to this Agreement,
when issued, sold and delivered in accordance with the terms of this Agreement for the consideration expressed herein, will be
duly and validly issued, fully paid, and nonassessable, will be free and clear of all liens, charges, restrictions, claims and
encumbrances imposed by or through the Bank, and will be free of restrictions on transfer other than restrictions on transfer
under applicable state and federal securities laws.

 

2.3    Capitalization

 

(a)         The
authorized capital stock of the Bank consists of 6,000,000 shares of common stock, and 1,000,000 shares of preferred stock.

 

(b)         The
issued and outstanding capital stock of the Bank consists solely of 2,995,775 shares of common stock (collectively, the “Outstanding
Shares”), of which (i) 2,295,775 shares are held of record and beneficially owned by American Patriot Financial Group, Inc.,
a Tennessee corporation (the “Bank Holding Company”) and (ii) 700,000 shares are held of record and beneficially owned
by Investor. The Outstanding Shares are, and immediately prior to the Closing will be, duly authorized, validly issued, fully
paid and nonassessable. To the knowledge of the Bank, no person other than the Bank Holding Company and Investor holds any interest
in any of the Outstanding Shares.

 

(c)         Other
than as set forth in that certain Stock Purchase Agreement, dated June 27, 2014, by and among the Bank, the Bank Holding Company
and Investor that provides Investor with the right to purchase additional shares of the Bank’s common stock, there are no
outstanding options, rights of first refusal or offer, preemptive rights, stock purchase rights or other agreements, either directly
or indirectly, for the purchase or acquisition from the Bank of any shares of capital stock of the Bank or any securities convertible
into or exchangeable for shares of capital stock of the Bank.

 

(d)         The
Bank is not a party or subject to any agreement or understanding and, to the knowledge of the Bank, there is no agreement or understanding
that affects or relates to the voting or giving of written consents with respect to any securities of the Bank or the voting by
any director of the Bank. The Bank is not under any contractual or other obligation to register any of its presently outstanding
securities or any of its securities that may hereafter be issued.

 

2.4    Subsidiaries.
The Bank does not own, directly or indirectly, any ownership, equity, or voting interest in any corporation, partnership, joint
venture or other entity, and has no agreement or commitment to purchase any such interest.

 

2.5    Governmental
Consents. Except for any required governmental approvals and any notice filings related to the transactions contemplated by
this Agreement that may be required under applicable state or federal securities laws, no consent, approval, order or authorization
of, or registration, qualification, designation, declaration or filing with, any federal, state or local governmental authority
on the part of the Bank is required in connection with the consummation of the transactions contemplated by this Agreement.

 

2.6    Offering.
Subject in part to the truth and accuracy of Investor’s representations set forth in Section 3 of this Agreement, the offer,
sale and issuance of the Series A Preferred Stock as contemplated by this Agreement is exempt from the registration requirements
of the Securities Act of 1933, as amended (“Securities Act”) and all applicable state securities laws and neither
the Bank nor any authorized agent acting on its behalf will take any action hereafter that would cause the loss of such exemption.

 

 

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2.7    Litigation.
There is no action, suit, proceeding or investigation pending or, to the knowledge of the Bank, currently threatened against the
Bank that questions the validity of this Agreement, or the right of the Bank to enter into this Agreement, or to consummate the
transactions contemplated thereby, or that might result, either individually or in the aggregate, in a Material Adverse Effect
or any change in the current equity ownership of the Bank, or in any impairment of the right or ability of the Bank to carry on
its business as now conducted, or in any material liability of the Bank, nor is the Bank aware that there is any basis for the
foregoing. The foregoing includes, without limitation, actions, suits, proceedings or investigations pending or threatened (or
any basis therefor known to the Bank) involving the prior employment of any of the Bank’s employees, their use in connection
with the Bank’s business of any information or techniques allegedly proprietary to any of their former employers, or their
obligations under any agreements with prior employers. The Schedule of Exceptions lists all actions, suits, proceedings, arbitrations
and investigations pending or, to the knowledge of the Bank, threatened, to which the Bank is a party or its property is subject.
The Bank is not a party or subject to the provisions of any order, writ, injunction, judgment or decree of any court or government
agency or instrumentality. There is no action, suit, proceeding or investigation by the Bank currently pending or that the Bank
intends to initiate.

 

2.8    Trademarks
and Trade Names. Except as would not reasonably be expected to result in a Material Adverse Effect, the Bank has sufficient
title and ownership of all trademarks, service marks, trade names, copyrights, trade secrets, information, proprietary rights
and processes necessary for its business as now conducted and as proposed to be conducted without any conflict with or infringement
of the rights of others. There are no outstanding options, licenses, or agreements of any kind relating to the foregoing, nor
is the Bank bound by or a party to any options, licenses or agreements of any kind with respect to the trademarks, service marks,
trade names, copyrights, trade secrets, licenses, information, proprietary rights and processes of any other person or entity.
The Schedule of Exceptions contains a complete list of all trademarks and pending trademark applications of the Bank. The Bank
has no reason to believe, nor has the Bank received any communications alleging, that the Bank has violated or, by conducting
its business as proposed, would violate any of the trademarks, service marks, trade names, copyrights or trade secrets or other
proprietary rights of any other person or entity.

 

2.9    Compliance
with Other Instruments. The Bank is not in violation or default of any provision of its Charter, as amended (the “Charter”),
or Bylaws, as amended (“Bylaws”), or of any instrument, judgment, order, writ, decree or contract to which
it is a party or by which it is bound, or of any provision of any federal or state statute, rule or regulation applicable to the
Bank. The execution, delivery and performance of this Agreement, and the consummation of the actions contemplated hereby will
not result in any such violation or be in conflict with or constitute, with or without the passage of time and giving of notice,
either a default under any such provision, instrument, judgment, order, writ, decree or contract or an event that results in the
creation of any lien, charge or encumbrance upon any assets of the Bank or the suspension, revocation, impairment, forfeiture,
or nonrenewal of any material permit, license, authorization, or approval applicable to the Bank, its business or operations or
any of its assets or properties.

 

2.10    Agreements;
Proposed Actions. Except for loan agreements, promissory notes, security agreements and other agreements entered into in the
ordinary course of the Bank’s lending business, the Schedule of Exceptions contains a complete and accurate list of all
contracts, agreements and understandings, oral or written, to which the Bank is currently a party or by which the Bank is currently
bound providing for potential payments by or to the Bank in excess of $10,000 (collectively, the “Material Contracts”),
including security agreements, license agreements, joint venture agreements, credit agreements and instruments relating to the
borrowing of money by the Bank. The Bank has performed in all material respects all obligations imposed on it under the Material
Contracts, and neither the Bank nor, to the knowledge of the Bank, any other party thereto is in default thereunder, nor to the
knowledge of the Bank is there any event that with notice or lapse of time, or both, would constitute a default by the Bank or
any other party thereunder. True and complete copies of each such Material Contract (or written summaries of the terms of any
such oral contract) have been delivered to Investor by the Bank.

 

Other
than as described in the Schedule of Exceptions, the Bank is not a party to any:

 

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(a)    agreements,
understandings or proposed actions between the Bank and any of its officers, directors, shareholders, affiliates, or any affiliate
thereof; 

(b)    contracts
with employees, agents, consultants, advisors, salespeople, sales representatives, or agents that cannot be canceled by the Bank
with not more than thirty days’ notice without liability, penalty or premium; any agreement or arrangement providing for
the payment of any bonus or commission based on sales or earnings; or any compensation agreement or arrangement affecting or relating
to former employees of the Bank;

(c)    employment
agreements, whether express or implied, or any other agreement for services that contains severance or termination pay liabilities
or obligations;

(d)    non-competition
agreements or other arrangements that would prevent the Bank from carrying on its business anywhere in the world;

(e)    written
notices or, to the knowledge of the Bank, any other form of notice that any party to any Material Contract intends to cancel,
terminate or refuse to renew such contract (if such contract is renewable);

(f)    material
disputes with any customers, suppliers, shareholders, licensors or licensees;

(g)    joint
venture contracts or arrangements or any other agreement that involves distribution of dividends or sharing of profits with other
persons; 

(h)    instruments
evidencing indebtedness for borrowed money by way of a direct loan, sale of debt securities, purchase money obligation, conditional
sale or guarantee, or otherwise, except for trade indebtedness incurred in the ordinary course of business, and except as disclosed
in the Financial Statements (as described below) and; 

(i)    agreements
or commitments to provide indemnification.

 

2.11    Related
Party Transactions. Other than as provided for in Section 4.3 of this Agreement regarding payment of the Purchase Price
under this Agreement, no employee, officer, director or shareholder of the Bank or member of his or her immediate family is indebted
to the Bank, nor is the Bank indebted (or committed to make loans or extend or guarantee credit) to any of them. To the best of
the knowledge of the Bank, none of such persons has any direct or indirect ownership interest in any firm or corporation with
which the Bank is affiliated or with which the Bank has a business relationship, or any firm or corporation that competes with
the Bank. No member of the immediate family of any officer or director of the Bank is directly or indirectly interested in any
material contract with the Bank.

 

2.12    Licenses,
Permits, Authorizations; Filings; Compliance

 

(a)    The
Bank has all franchises, permits, licenses, and any similar authority necessary for the conduct of its business as now being conducted
by it except where the failure to have such franchises, permits, licenses or authority would not reasonably be expected to have
a Material Adverse Effect, and the Bank believes it can obtain, without undue burden or expense, any similar authority for the
conduct of its business as currently planned to be conducted but not giving effect to any plans that Investor has to expand the
Bank’s current business operations following the Closing. The Bank is not in default in any material respect under any of
such franchises, permits, licenses or other similar authority.

 

(b)    The
Bank has timely filed all forms, reports, registration statements, schedules and other documents (“Regulatory Documents”)
that were required to be filed with any governmental authority and has paid all fees and assessments due and payable in connection
therewith. The Bank has previously delivered or made available to Investor a true, correct and complete copy of each Regulatory
Document filed with a governmental authority prior to the date hereof requested by Investor (including filings with the Department
of Financial Institutions for the State of Tennessee and capital restoration plans filed with the FDIC), and will deliver or make
available to Investor promptly after the filing thereof a true, correct and complete copy of each Regulatory Document filed by
the Bank with any governmental authority after the date hereof.

 

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(c)    Except
as would not have a Material Adverse Effect, the Bank is in compliance with all federal, state, and local laws, rules, regulations,
ordinances, decrees and orders applicable to it, to its employees or to its property. Other than the FDIC Stipulation and Consent
Order dated June 3, 2009 (“Consent Order”) and the FDIC Corrective Action Directive dated August 17, 2010 (“Directive”),
the Bank has not received any written notification or, to the knowledge of the Bank, any other form of notification of any asserted
present or past unremedied failure by the Bank to comply with any of such laws, rules, regulations, ordinances, decrees or orders.
Other than the Consent Order and Directive, except for normal examinations conducted by any governmental authority in the ordinary
course of business, no governmental authority has initiated any administrative proceeding or, to the knowledge of the Bank, investigation
into or related to the business or operations of the Bank. There is no unresolved violation, criticism or exception by any governmental
authority with respect to any report or statement by any governmental authority relating to any examination of the Bank.

 

2.13    Corporate
Books and Records. The Bank has furnished to Investor for its examination true and complete copies of (a) the Charter
and Bylaws of the Bank as currently in effect, including all amendments thereto, (b) the minute books of the Bank, and
(c) the stock transfer books of the Bank. The contents of the minute books reflect all meetings of the shareholders and the Bank’s
board of directors and any committees thereof since the Bank’s inception, and such minutes accurately reflect in
all material respects the material actions taken at such meetings. The stock transfer books accurately reflect all issuances and
transfers of shares of capital stock of the Bank since its inception.

 

2.14    Title
to Property and Assets. The Bank owns its property and assets, including without limitation the property and assets
reflected in the Bank Financial Statements, free and clear of all mortgages, liens, loans and encumbrances, except such encumbrances
and liens that arise in the ordinary course of business and do not materially impair the Bank’s ownership or use
of such property or assets. With respect to the property and assets it leases, the Bank is in compliance in all material respects
with such leases and, to its knowledge, holds a valid leasehold interest free of any liens, claims or encumbrances.

 

2.15    Financial
Statements. The Bank has delivered to Investor audited consolidated financial statements for Bank Holding Company as
of and for the year ended December 31, 2011, and unaudited financial statements as of and for the years ended December 31, 2012
and December 31, 2013 (the “Financial Statements”). The Financial Statements have been prepared in conformity
with GAAP on a basis consistent with prior accounting periods and fairly present the financial position, results of operations
and changes in financial position of the Bank Holding Company as of the dates and for the periods indicated. The Bank Holding
Company has no liabilities or obligations of any nature (absolute, contingent or otherwise) that are not fully reflected
or reserved against in the balance sheet included in the most recent Financial Statement, except (i) liabilities or obligations
incurred since the date of the such balance sheet in the ordinary course of business and consistent with past practice, (ii) liabilities
or obligations not exceeding $5,000 individually or $10,000 in the aggregate, and (iii) liabilities or obligations otherwise disclosed
in this Agreement or in the Schedule of Exceptions. All accounts receivable of the Bank arose in the ordinary course of business
and are carried at values determined in accordance with GAAP consistently applied. No person has any lien on any of such accounts
receivable and no request or agreement for material deduction or discount has been made with respect to any of such accounts receivable.
The Bank maintains systems of accounting that are reasonably adequate for its business.

 

2.16    Absence
of Certain Changes or Events. Except for transactions specifically contemplated in this Agreement, since the date of the consolidated
balance sheet of the Bank Holding Company as of December 31, 2013 (“Balance Sheet”), neither the Bank, nor
any of its officers, directors or shareholders in their representative capacities on behalf of the Bank, have:

 

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(a)    taken
any action or entered into or agreed to enter into any transaction, agreement or commitment other than in the ordinary course
of business;

(b)    forgiven
or canceled any indebtedness or waived any claims or rights of material value;

(c)    granted
any increase in the compensation of directors, officers, employees or consultants;

(d)    suffered
any change having a Material Adverse Effect;

(e)    borrowed
or agreed to borrow any funds, incurred or become subject to, whether directly or by way of assumption or guarantee or otherwise,
any obligations or liabilities in excess of $5,000 individually or $10,000 in the aggregate, except liabilities and obligations
that are incurred in the ordinary course of business and consistent with past practice, or increased, or experienced any change
in any assumptions underlying or methods of calculating, any bad debt, contingency or other reserves;

(f)    paid,
discharged or satisfied any material claims, liabilities or obligations other than the payment, discharge or satisfaction in the
ordinary course of business and consistent with past practice of claims, of liabilities and obligations reflected or reserved
against in the Balance Sheet or incurred in the ordinary course of business and consistent with past practice since the date of
the Balance Sheet, or prepaid any obligation having a fixed maturity of more than 90 days from the date such obligation was
issued or incurred;

(g)    knowingly
permitted or allowed any of its property or assets to be subjected to any encumbrance; 

(h)    purchased
or sold, transferred or otherwise disposed of any of its material properties or assets;

(i)    made
any single capital expenditure or commitment in excess of $5,000 for additions to property, plant, equipment or intangible capital
assets or otherwise or made aggregate capital expenditures in excess of $20,000  for additions to property, plant, equipment
or intangible capital assets or otherwise; 

(j)    made
any change in accounting methods or practices or internal control procedures; or 

(k)    paid,
loaned or advanced any amount to, or sold, transferred or leased any properties or assets to any shareholder or any of the Bank’s
officers, directors or employees, or any affiliate of the Bank except for (i) compensation paid to officers and employees at rates
not exceeding the rates of compensation paid during the fiscal year last ended, and (ii) advances for travel and other business-related
expenses. 

2.17    Insurance.
The Bank maintains insurance against liabilities, claims and risks of a nature and in such amounts as are described in the Schedule
of Exceptions. All insurance policies of the Bank are in full force and effect, all premiums with respect thereto have been paid,
and no notice of cancellation or termination has been received with respect to any such policy or binder.

 

2.18    Employee
Benefit Plans

 

(a)    The
Schedule of Exceptions lists and describes all “employee benefit plans” (as such term is defined in ERISA § 3(3))
and any other material employee compensation or benefit plan, program or arrangement of any kind, including without limitation
deferred compensation, severance pay, retirement, employment agreements, change in control agreements, insurance, stock purchase,
stock option, and other benefit plans, programs or arrangements) that the Bank
maintains or to which the Bank
contributes, has any obligation to contribute or any material liability (“Employee Benefit
Plans”). Copies of each written Employee Benefit Plan, and all related documents, including funding agreements and employee
booklets, as amended to the date hereof, have been provided to Investor. In the case of any unwritten Employee Benefit Plan, a
written description thereof, which accurately describes all material provisions of such Employee Benefit Plan, has been provided
to Investor. 

 

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(b)    There
are no currently promised improvements, increases or changes to the benefits provided under the Employee Benefit Plans. Each Employee
Benefit Plan is, and has been, established and administered in compliance with all applicable laws, the terms of such Employee
Benefit Plan and all written and oral understandings between the Bank
and the employees of the Bank, in each case, in all material respects. No prohibited transaction
(as such term is defined in Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”) and
Section 406 of ERISA) has occurred with respect to an Employee Benefit Plan that is subject to either of such provisions for which
an exemption is not available. To the knowledge of the Bank, the Bank
and each Employee Benefit Plan providing health benefits complies with the applicable provisions
of the Health Insurance Portability and Accountability Act (“HIPAA”) and has done so since the applicable effective
date of each applicable provision of HIPAA.

(c)    All
obligations required under the Employee Benefit Plans and all applicable laws have been satisfied in all material respects and
there are no defaults, violations or funding deficiencies thereunder. There are no claims (other than claims for benefits in the
normal course), actions or lawsuits asserted or instituted against, and there are no pending or threatened legal proceedings or
claims against the assets of any Employee Benefit Plan (other than a Multiemployer Plan) or against any fiduciary of such Employee
Benefit Plan with respect to the operation of such Employee Benefit Plan, which, if adversely determined, would reasonably be
expected to have a Material Adverse Effect.

2.19    Tax
Returns, Payments and Elections. The Bank has filed all tax returns and reports (including information returns and reports)
as required by law. These returns and reports are true and correct in all material respects. The Bank has paid all taxes and other
assessments due, except those contested by it in good faith that are listed in the Schedule of Exceptions. The provision for taxes
of the Bank as shown in the Financial Statements is adequate for taxes due or accrued as of the date thereof. The Bank has not
made any elections pursuant to the Code (other than elections that relate solely to methods of accounting, depreciation or amortization)
that would have a material effect on the Bank, its financial condition, its business as presently conducted or proposed to be
conducted or any of its properties or material assets. The Bank has never had any tax deficiency proposed or assessed against
it and has not executed any waiver of any statute of limitations on the assessment or collection of any tax or governmental charge.
None of the Bank’s federal income tax returns and none of its state income or franchise tax or sales or use tax returns
has ever been audited by governmental authorities. Since the date of the Balance Sheet, the Bank has not incurred any taxes, assessments
or governmental charges other than in the ordinary course of business and the Bank has made adequate provisions on its books of
account for all taxes, assessments and governmental charges with respect to its business, properties and operations for such period.
The Bank has withheld or collected from each payment made to each of its employees, the amount of all taxes (including federal
income taxes, Federal Insurance Contribution Act taxes and Federal Unemployment Tax Act taxes) required to be withheld or collected
therefrom, and has paid the same to the proper tax receiving officers or authorized depositories.

 

2.20    Labor
and Employment Matters. The Bank is not bound by or subject to (and none of its assets or properties is bound by or subject
to) any written or oral, express or implied, contract, commitment or arrangement with any labor union, and no labor union has
requested or, to the knowledge of the Bank, has sought to represent any of the employees, representatives or agents of the Bank.
There are no labor disputes, employee grievances or material disciplinary actions pending or, to the knowledge of the Bank, threatened
against or involving the Bank or any of its present or former employees. The Bank has complied with all provisions of law relating
to employment and employment practices, terms and conditions of employment, wages and hours, except where the failure to comply
would not have a Material Adverse Effect. The Bank is not engaged in any unfair labor practice and has no liability for any arrears
of wages or taxes or penalties for failure to comply with any such provisions of law. To the knowledge of the Bank, no employee
(or person performing similar functions) of the Bank is in violation of any employment agreement, non-competition agreement, proprietary
information agreement or other contract or agreement relating to the relationship of such employee with the Bank or any other
party.

 

 

 

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The
Schedule of Exceptions lists the current compensation amounts of all directors, officers and employees of the Bank. All employees
of the Bank are employed on an “at will” basis, and, to the knowledge of the Bank, are eligible to work and are lawfully
employed in the United States.

 

2.21    Environmental
and Safety Laws.  Except where such violation would not have a Material Adverse Effect, the Bank is not in violation
of any applicable statute, law or regulation relating to the environment or occupational health and safety, and to the knowledge
of the Bank, no material expenditures are currently required in order to comply with any such existing statute, law or regulation.

 

2.22    Disclosure.
 No representation or warranty of the Bank in this Agreement and no statements in the Schedule of Exceptions omits to state a material
fact necessary to make the statements herein or therein not misleading, in light of the circumstances in which they were made,
not misleading.

 

		3.0	REPRESENTATIONS
                                         AND WARRANTIES OF INVESTOR

 

Investor
hereby represents and warrants that:

 

3.1    Authorization.
 Investor has full power and authority to enter into this Agreement and the Promissory Note (as defined below), and this Agreement
and the Promissory Note each constitutes its valid and legally binding obligation, enforceable in accordance with its terms, except
as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement
of creditors’ rights generally, and except as limited by laws relating to the availability of specific performance, injunctive
relief or other equitable remedies. Investor represents and warrants that to its knowledge, it is not required to obtain, prepare
or file any authorization, approval, consent, filing or registration with any governmental authority in order to consummate the
transactions contemplated by this Agreement, including, without limitation, the issuance of the Promissory Note.

 

3.2    Investment
for Own Account.  he Series A Preferred Stock is being acquired by Investor for investment for Investor’s own account,
not as a nominee or agent, and not with a view to the distribution of any part thereof. Investor has no present intention of selling,
granting any participation in or otherwise distributing any of the Series A Preferred Stock, nor does Investor have any contract,
undertaking, agreement or arrangement with any person or entity to sell, transfer or grant a participation to such person or entity
with respect to any of the Series A Preferred Stock.

 

3.3    Disclosure
of Information.  Investor represents that it has had an opportunity to ask questions and receive answers from the Bank regarding
the terms and conditions of the offering of the Series A Preferred Stock and the business, properties, prospects and financial
condition of the Bank. The foregoing, however, does not limit or modify the representations and warranties of the Bank in Section
2 of this Agreement or the right of Investor to rely thereon.

 

3.4    Sophistication.
 Investor is an “accredited investor” as defined in Rule 501(a) promulgated under the Securities Act of 1933, as amended
and has such knowledge and experience in financial and business matters as to make Investor capable of evaluating the merits and
risks of this investment and of making an informed investment decision with respect to the investment. Investor is in a financial
position to be able to bear the economic risk of the investment and to hold the Series A Preferred Stock for an indefinite period
of time. Investor is not relying on the Bank or any of its affiliates with respect to an analysis or consideration of economic
considerations relating to making an investment decision in the Series A Preferred Stock. In regard to such considerations and
analysis, Investor has relied on the advice of, or has consulted with, only its own advisors.

 

3.5    Restricted
Securities.  Investor understands that the shares of Series A Preferred Stock that it is purchasing are characterized as “restricted
securities” under the U.S. federal securities laws inasmuch as they are being acquired from the Bank in a transaction not
involving a public offering; and that under such laws and applicable regulations such securities may be resold without registration
under the Securities Act only in certain limited circumstances. In this connection, Investor represents that it is familiar with
SEC Rule 144, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act.

 

 

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3.6    Legends.
 It is understood that the certificates evidencing the Series A Preferred Stock may be endorsed with a restrictive legend substantially
in the following form:

 

The
securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Act”)
and are “restricted securities” as that term is defined in Rule 144 as promulgated under the Act. The securities may
not be sold or transferred for value without an effective registration statement under the Act, pursuant to the provisions of
Rule 144 under the Act, or pursuant to an exemption from registration under the Act, the availability of which is to be established
to the satisfaction of the Company.

 

		4.0	COVENANTS

 

4.1    Confidentiality;
Public Announcements. Each of the parties hereto will hold, and will cause its agents, representatives, consultants and advisers
to hold, in confidence all documents and the confidential information furnished to it by or on behalf of another party to this
Agreement in connection with the transactions contemplated by this Agreement. Each of the parties will consult with one another
before issuing any press release or otherwise making any public statements with respect to the transactions contemplated by this
Agreement and shall not issue any such press release or make any such public statement prior to such consultation except as may
be required by applicable law.

 

4.2    Bank
Holding Company Loan.Investor acknowledges that the Bank Holding Company is in default under the terms of that certain
Promissory Note and Commercial Loan Agreement dated as of December 30, 2008 by and between Jefferson Federal Bank and the Company
(the “Loan Agreement”), the underlying promissory note for which has been sold by Jefferson Federal Bank to
Investor.  Investor agrees that it shall not, and it shall cause each of its affiliates not to, seek acceleration of the
Note under the default provisions of the Loan Agreement, or seek any payment under the Loan Agreement in violation of the Consent
Order or Directive.

 

4.3    Promissory
Note. Simultaneous with the execution of this Agreement, Investor shall issue to the Bank a promissory note, in substantially
the form of Exhibit A attached hereto (the “Promissory Note”) pursuant to which Investor shall promise
to pay to the Bank, on or before October 30, 2014, subject to the satisfaction of the closing conditions set forth in Section
5.1, $______, which amount shall be the amount necessary to fund the Purchase Price.

 

		5.0	CONDITIONS TO THE
                                                                                                                                OBLIGATIONS OF THE PARTIES

 

5.1    Conditions
to Investor’s Obligations at Closing. The obligations of Investor under Section 1.1 of this Agreement are subject to
the fulfillment on or before the Closing, of each of the following conditions (subject to the right of Investor to waive any such
condition by notice to the Bank in writing):

 

(a)    Representations
and Warranties. The representations and warranties of the Bank contained in Section 2 must be true and correct in all material
respects on and as of the Closing with the same effect as though such representations and warranties had been made on and as of
the date of the Closing. Each of the representations and warranties of the Bank contained in Sections 2.3, 2.15, and 2.22 must
be true and correct in all respects on and as of the Closing with the same effect as though such representations and warranties
had been made on and as of the date of the Closing.

 

(b)    Performance.
The Bank shall have performed and complied in all material respects with all agreements, obligations and conditions contained
in this Agreement that are required to be performed or complied with by it on or before the Closing.

 

(c)    Legal
Investment. On the Closing Date, the sale and issuance of the Shares shall be legally permitted by all laws and regulations
to which Investor and the Bank are subject.

 

 

    	9

    	 

    

 

(d)    Consents,
Permits, and Waivers. The Bank shall have obtained any and all consents, permits and waivers necessary or appropriate for
consummation of the transactions contemplated by the Agreement including, without limitation, issuance of the Shares.

 

(e)    Filing
of Articles of Amendment to the Bank’s Charter. The Articles of Amendment to the Bank’s Charter establishing the
Series A Preferred Stock shall have been filed with the Secretary of State of the State of Tennessee and shall continue to be
in full force and effect as of the Closing Date.

 

(f)    Cancellation
of Promissory Note. Upon Investor’s payment in full of the Purchase Price at the Closing, the Promissory Note shall
be cancelled and the original thereof shall be returned to Investor.

 

5.2    Conditions
to the Obligation of Bank. The obligations of the Bank to Investor in connection with the Closing pursuant to this Agreement
are subject to the fulfillment on or before the Closing of each of the following conditions by Investor (subject to the right
of Bank to waive any such condition by notice to Investor in writing):

 

(a)    Representations
and Warranties. The representations and warranties of Investor contained in Section 3 must be true and correct in all material
respects on and as of the Closing with the same effect as though such representations and warranties had been made on and as of
the date of the Closing.

 

(b)    Payment
of Purchase Price. Investor shall have delivered to the Bank the amount of purchase price for the Series A Preferred Stock
being purchased by Investor at the Closing, as specified in Section 1.1 of this Agreement, in U.S. dollars by check, wire transfer
funding of Investor’s obligation under the Promissory Note, an executed copy of which was delivered to the Bank as of the
date hereof, or any combination thereof.

 

(c)    Performance.
Investor shall have performed and complied in all material respects with all agreements, obligations and conditions contained
in this Agreement that are required to be performed or complied with by it on or before the Closing.

(d)    Filing
of Articles of Amendment to the Bank’s Charter. The Articles of Amendment to the Bank’s Charter establishing the
Series A Preferred Stock shall have been filed with the Secretary of State of the State of Tennessee and shall continue to be
in full force and effect as of the Closing Date.

 

(e)    Consents,
Permits, and Waivers. The Bank shall have obtained any and all consents, permits and waivers necessary or appropriate for
consummation of the transactions contemplated by the Agreement including, without limitation, issuance of the Shares.

 

(f)    Legal
Investment. On the Closing Date, the sale and issuance of the Shares shall be legally permitted by all laws and regulations
to which Investor and the Bank are subject.

		6.0	MISCELLANEOUS PROVISIONS

 

6.1    Survival
of Warranties. The warranties, representations and covenants of the Bank and Investor contained in or made pursuant to this
Agreement shall survive the execution and delivery of this Agreement and the Closing. Notwithstanding the forgoing, nothing in
this Section 6.1 shall be construed to extend the representations, warranties and covenants contained herein beyond the period
set forth in the applicable statute of limitations.

 

6.2    Successors and Assigns. The terms and conditions of this Agreement shall inure to the benefit of, and be binding
upon the respective successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer
upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

 

    	10

    	 

    

 

6.3    Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of
Washington, as such laws are applied to agreements among Washington residents entered into and to be performed entirely within
Washington.

 

6.4    Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be
an original, but all of which together shall constitute one and the same instrument.

 

6.5    Notices. Any notice required in connection with this Agreement shall be given in writing and shall be deemed
effectively given upon personal delivery to the party to be notified, or upon verbal confirmation of receipt by the recipient
when transmitted by electronic mail, or upon delivery by confirmed facsimile transmission or nationally recognized overnight courier
service, or upon deposit with the United States Post Office, by registered or certified mail, postage prepaid and addressed to
the party to be notified at the address indicated for such party on the signature pages hereof, or at such other address as such
party may designate by ten (10) days’ advance written notice to the other parties.

 

6.6    Finders’
Fees. Each party represents that it neither is nor will be obligated for any finders’ fees or commissions in connection
with this transaction. Each party agrees to indemnify and to hold harmless the other party from any liability for any commission
or compensation in the nature of finders’ fees and the costs and expenses (including legal, travel and out-of-pocket expenses)
of defending against such liability or asserted liability for which such party or any of its officers, partners, employees, or
representatives is responsible.

 

6.7    Fees
and Expenses. Whether or not the Closing occurs, except as otherwise specified in this Agreement, each party shall bear its
own respective costs and expenses (including fees and disbursements of its counsel, accountants, financial advisors and other
experts) incurred by it in connection with the preparation, negotiation, execution, delivery and performance of this Agreement,
each of the other documents and instruments executed in connection with or contemplated by this Agreement and the consummation
of the transactions contemplated by this Agreement. If any action at law or in equity is necessary to enforce or interpret the
terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements
in addition to any other relief to which such party may be entitled.

 

6.8    Severability.
If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded
from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable
in accordance with its terms.

 

6.9    Amendments
and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively), only with the written consent of the parties.
No amendment to or modification of this Agreement will be binding unless in writing and signed by an authorized representative
of each party. No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent
breach or condition, whether of like or different nature.

 

6.10    Entire
Agreement. This Agreement and the documents referred to herein constitutes the entire agreement among the parties with respect
to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral, among the parties,
or any of them, with respect to the subject matter hereof.

 

 

 

    	11

    	 

    

 

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

 

 

	“INVESTOR”	 	“BANK”
	 	 	 
	Complete
    Financial Solutions, Inc.	 	American
    Patriot Bank 
	 	 	 	 	 
	By:	
        /s/Allen
Ringer 
	 	By:	
        /s/ James
        Randall Hall

	Name:	Allen
        Ringer	 	Name:	James
        Randall Hall
	Title:	CEO	 	Title:	CEO
        
	 	 	 	 	 
	Address:	 	 	Address:	 
	 	 	 	 	 
	 	 	 	 	 

 

 

 

 12American Patriot Financial Group, Inc. 8-K

EXHIBIT 10.2

 

FIRST
AMENDMENT TO

COMMON
STOCK PURCHASE AGREEMENT

This
First Amendment to Common Stock Purchase Agreement (“Amended Agreement”), is made as of September 30, 2014, by and
among Complete Financial Solutions, Inc., a Nevada corporation (“Investor”), American Patriot Bank, Greeneville, Tennessee
(“Bank”), and American Patriot Financial Group, Inc., a Tennessee corporation (the “Bank Holding Company”),
and amends that certain Common Stock Purchase Agreement dated June 27, 2014, between Investor, Bank, and Bank Holding Company
(the “Original Agreement”).

1.         RECITALS

A.    Investor
and Bank have entered into a Series A Preferred Stock Purchase Agreement of even date (the “Preferred Stock Purchase Agreement”).

B.    Concurrently
with the execution of the Preferred Stock Purchase Agreement, the parties desire to enter into this Amended Agreement for the
purpose of updating and amending the terms of the Original Agreement.

NOW,
THEREFORE, in consideration of the covenants, promises and representations set forth herein, and for other good and valuable consideration,
THE PARTIES HERETO AGREE AS FOLLOWS:

2.         TERMS
OF AMENDED AGREEMENT

2.1    Section
4.2 of the Original Agreement is hereby amended and restated in its entirety to read as follows:

“4.2   
Change in Control Application. Subject to the terms and conditions herein provided, each of the parties hereto agrees
to use commercially reasonable efforts to take or cause to be taken all action and to do or cause to be done all things reasonably
necessary, proper or advisable under applicable laws and regulations to submit a Change in Control application within twelve (12)
months following the Initial Closing, the fees and expenses of preparation of which shall be borne by Investor. After the Initial
Closing, each party hereto, at the request of and without any further cost or expense to the other party, shall take any further
actions reasonably necessary or desirable to consummate and make effective a Change in Control, including obtaining approval by
the Federal Reserve of Investor's application submitted under Regulation Y, as well as approval by all necessary and appropriate
regulatory authorities, including the FDIC and the Commissioner of TDFI. The Bank Holding Company further agrees, at the request
of and without any further cost or expense to Investor, to enable Bank to take any further actions reasonably necessary or desirable
to carry out the purposes of this Section 4.2.”

2.2
   Section 4.5 of the Original Agreement is hereby amended and restated in its entirety to read as follows:

“4.5   
Future Transactions. Within 18 months of effectiveness of a Change in Control, subject to (i) receipt of all required
regulatory approvals and (ii) compliance with applicable federal and state securities laws, the parties agree to use reasonable
efforts to take or cause to be taken the following actions under applicable laws and regulations:

(a)    Consolidation
of Ownership. Investor and Bank Holding Company will effectuate a transaction such that upon its completion Investor will
own I 00% of Bank (the “Acquisition”) and common stockholders will receive fair consideration. The final structure
of the Acquisition will be determined
by various relevant factors, including whether the common stock of Bank Holding Company continues to be registered under Section
12 of the Securities Exchange Act of 1934. The Acquisition may be structured as an exchange offer of Investor common stock for
all the outstanding shares of common stock of Bank owned by Bank Holding Company, or by the delivery of adequate consideration
to Bank Holding Company which can subsequently be distributed to shareholders in a liquidating distribution.

    	 

    	 

    

(b)    Redemption
of Bank Holding Company Preferred Shares. Investor will either (i) offer to redeem the preferred shares of Bank Holding Company
for their cash value, or (ii) provided an exemption from registration is available, give the holders of the preferred shares the
option to accept Investor common shares in lieu of cash. The unregistered common shares would be provided at a discount to their
then current market value.”

3.0         MISCELLANEOUS
PROVISIONS

3.1
   Except as otherwise amended herein, the patties ratify and affirm their respective obligations under the
Original Agreement.

3.2
   Capitalized terms used in this Amended Agreement without definition shall have the respective meanings set
forth in the Original Agreement.

3.3
   Counterparts. This Amended Agreement may be signed in one or more counterparts (by facsimile or otherwise),
all of which shall be treated as one and the same instrument.

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

 

	“INVESTOR”	 	“BANK”
	 	 	 
	Complete
    Financial Solutions, Inc.	 	American
    Patriot Bank 
	 	 	 	 	 
	By:	/s/Allen
                                         Ringer 
	 	By:	/s/ James
                                         Randall Hall

	Name:	Allen
    Ringer	 	Name:	James
    Randall Hall
	Title:	CEO	 	Title:	CEO
	 	 	 	 	 
	 	 	 	“BANK
    HOLDING COMPANY”
	 	 	 	 	 
		 	 	American
    Patriot Financial Group, Inc.
	 	 	 	 	 
	 	 	 	 By:	 /s/ James
    Randall Hall
	 	 	 	 Name:	 James
    Randall Hall
	 	 	 	 Title:	CEO

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