Document:

Exhibit
10.2

 

 

 

 

 

 

 

 

LOGIQ,
INC.

FORM
OF WARRANT

 

 

 

 

 

 

 

 

 

 

     

     

    

 

THE
SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
LAWS. THIS WARRANT MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED UNLESS (A) THERE IS AN EFFECTIVE REGISTRATION STATEMENT
FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS, (B) THE COMPANY RECEIVES AN OPINION
OF LEGAL COUNSEL FOR THE HOLDER, IN FORM, SUBSTANCE AND SCOPE REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED
UNDER SAID ACT OR (C) THE COMPANY, AT ITS OPTION, OTHERWISE SATISFIES ITSELF THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION. 

 

LOGIQ,
INC.

 

WARRANT
TO PURCHASE COMMON STOCK

 

		Warrant
                            No.: _________ 	  Number
                      of Shares Issuable: __________

 

Date
of Issuance: ___________

 

LOGIQ,
INC. a Delaware corporation (the “Company”), hereby certifies that, for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, _________________, the registered holder hereof (“Holder”),
or his/her/its permitted assigns, is entitled, subject to the terms set forth below, to purchase from the Company upon surrender of this
Warrant, at any time or times on or after the date hereof, but not after 5:00 P.M. Eastern Standard Time on the Expiration Date (as defined
herein) _______________ fully paid nonassessable shares of Common Stock (as defined herein) of the Company (the “Warrant
Shares”) at the Warrant Exercise Price per share provided in Section l (a) below.

 

Section
1. 

 

(a)
Definitions. The following words and terms as used in this Warrant shall have the following meanings:

 

(i)
“Common Stock” means (i) the Company’s common stock and (ii) any capital stock into which such Common Stock shall
have been changed or any capital stock resulting from a reclassification of such Common Stock.

 

(ii)
“Exercise Notice” means the written notice, in the form attached as Exhibit A hereto, of the holder’s election
to exercise this Warrant, which notice shall be signed by the holder and specify the number of Warrant Shares to be purchased, along
with the other information required in the notice.

 

(iii)
“Expiration Date” means ______________, or, if such date falls on a Saturday, Sunday or other day on which banks
are required or authorized to be closed in the City of New York or the State of New York (a “Holiday”), the next preceding
date that is not a Holiday.

 

(iv)
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust,
an unincorporated organization and a government or any department or agency thereof.

 

(v)
“Securities Act” means the Securities Act of 1933, as amended.

 

    -2-

     

    

 

(vi)
“Warrant” shall mean this Warrant No. ________, dated _____________, and all warrants issued in exchange, transfer
or replacement of any thereof.

 

(vi)
“Warrant Exercise Price” shall be equal to $_______ per share of Common Stock, subject to adjustment as hereinafter
provided.

 

(b)
Other Definitional Provisions.

 

(i)
Except as otherwise specified herein, all references herein (A) to the Company shall be deemed to include the Company’s successors and
(B) to any applicable law defined or referred to herein, shall be deemed references to such applicable law as the same may have been
or may be amended or supplemented from time to time.

 

(ii)
When used in this Warrant, the words “herein,” “hereof,” and “hereunder,” and words of similar
import, shall refer to this Warrant as a whole and not to any provision of this Warrant, and the words “Section,” “Schedule,”
and “Exhibit” shall refer to Sections of, and Schedules and Exhibits to, this Warrant unless otherwise specified.

 

(iii)
Whenever the context so requires, the neuter gender includes the masculine or feminine, and the singular number includes the plural,
and vice versa.

 

Section
2. Exercise of Warrant.

 

(a)
Cash Exercise. Subject to the terms and conditions hereof, this Warrant may be exercised by the holder hereof then registered
on the books of the Company, in whole or in part, at any time on any business day after the opening of business on the date hereof and
prior to 11:59 P.M. Eastern Standard Time on the Expiration Date by (i) delivery of the Exercise Notice to the Company specifying holder’s
election to exercise this Warrant on a cash basis, (ii) payment to the Company of an amount equal to the Warrant Exercise Price multiplied
by the number of Warrant Shares as to which the Warrant is being exercised (plus any applicable issue or transfer taxes) (the “Aggregate
Exercise Price”) in cash or by certified or official bank check or wire transfer, and (iii) the surrender of this Warrant (or an
indemnification undertaking with respect to this Warrant in the case of its loss, theft, or destruction) to a common carrier for delivery
to the Company as soon as practicable following such date; provided that if such Warrant Shares are to be issued in any name other than
that of the registered holder of this Warrant, such issuance shall be deemed a transfer and the provisions of Section 7 shall be applicable.

 

(b)
Issuance of Warrant Shares. In the event of any exercise of the rights represented by this Warrant in compliance with this Section
2, a certificate or certificates for the Warrant Shares so purchased, in such denominations as may be requested by the holder hereof
and registered in the name of, or as directed by, the holder, shall be delivered at the Company’s expense to, or as directed by, such
holder as soon as practicable after such rights shall have been so exercised, and in any event no later than ten (10) business days after
the Company’s receipt of the Exercise Notice, the Aggregate Exercise Price and this Warrant (or indemnification undertaking with
respect to this Warrant in the case of its loss, theft or destruction) Upon delivery of the Exercise Notice and Aggregate Exercise Price
referred to in clauses (i) and (ii) of Section 2 (a) above or delivery of the Exercise Notice referred to in clause (i) of Section 2
(b) above, as the case may be, the holder of this Warrant shall be deemed for all corporate purposes to have become the holder of record
of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of this Warrant as
required in Sections 2 (a) and (b) above or the certificates evidencing such Warrant Shares.

 

    -3-

     

    

 

(c)
Unless the rights represented by this Warrant shall have expired or shall have been fully exercised, the Company shall, as soon as practicable
and in any event no later than ten (10) business days after any exercise and at its own expense, issue a new Warrant identical in all
respects to the Warrant exercised except (i) it shall represent rights to purchase the number of Warrant Shares purchasable immediately
prior to such exercise under the Warrant exercised, less the number of Warrant Shares with respect to which such Warrant is exercised,
and (ii) the holder thereof shall be deemed for all corporate purposes to have become the holder of record of such Warrant Shares immediately
prior to the close of business on the date on which the Warrant is surrendered and payment of the amount due in respect of such exercise
and any applicable taxes is made, irrespective of the date of delivery of certificates evidencing such Warrant Shares, except that, if
the date of such surrender and payment is a date when the stock transfer books of the Company are properly closed, such person shall
be deemed to have become the holder of such Warrant Shares at the opening of business on the next succeeding date on which the stock
transfer books are open. Upon presentation of a duly executed Exercise Notice, the holder shall be entitled to exercise this Warrant
in whole or in part, if the holder shall have previously exercised and surrendered this Warrant and the Company shall not have issued
a new Warrant representing the number of shares issuable following such prior exercise.

 

(d)
No fractional shares of Common Stock are to be issued upon the exercise of this Warrant, but rather the number of shares of Common Stock
issued upon exercise of this Warrant shall be rounded up or down to the nearest whole number.

 

Section
3. Covenants as to Common Stock. The Company hereby covenants and agrees as follows:

 

(a)
This Warrant is duly authorized and validly issued.

 

(b)
All Warrant Shares which may be issued upon the exercise of the rights represented by this Warrant will, upon issuance, be validly issued,
fully paid and nonassessable and free from all taxes, liens and charges with respect to the issue thereof.

 

(c)
During the period within which the rights represented by this Warrant may be exercised, the Company will at all times have authorized
and reserved at least the number of shares of Common Stock needed to provide for the exercise of the rights then represented by this
Warrant and the par value of said shares will at all times be less than or equal to the applicable Warrant Exercise Price.

 

(d)
The Company will not, by amendment of its Certificate of Incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance
of any of the terms to be observed or performed by it hereunder, but will at all times in good faith assist in the carrying out of all
the provisions of this Warrant and in the taking of all such action as may reasonably be requested by the holder of this Warrant in order
to protect the exercise privilege of the holder of this Warrant against dilution or other impairment, consistent with the tenor and purpose
of this Warrant. Without limiting the generality of the foregoing, the Company (i) will not increase the par value of any shares of Common
Stock receivable upon the exercise of this Warrant above the Warrant Exercise Price then in effect, and (ii) will take all such actions
as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of Common
Stock upon the exercise of this Warrant.

 

(e)
This Warrant will be binding upon any entity succeeding to the Company by merger, consolidation or acquisition of all or substantially
all of the Company’s assets.

 

Section
4. Taxes. The Company shall not be required to pay any tax or taxes attributable to the initial issuance of the Warrant Shares
or any permitted transfer involved in the issue or delivery of any certificates for Warrant Shares in a name other than that of the registered
holder hereof or upon any permitted transfer of this Warrant.

 

    -4-

     

    

  

Section
5. Warrant Holder Not Deemed a Stockholder. Except as otherwise specifically provided herein, no holder, as such, of this
Warrant shall be entitled to vote or receive dividends or be deemed the holder of shares of the Company for any purpose, nor shall anything
contained in this Warrant be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company or
any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of
stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise,
prior to the issuance to the holder of this Warrant of the Warrant Shares which he or she is then entitled to receive upon the due exercise
of this Warrant.

 

In
addition, nothing contained in this Warrant shall be construed as imposing any liabilities on such holder to purchase any securities
or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company.

 

Section
6. Representations of Holder. The holder of this Warrant, by the acceptance hereof, represents (and any assignor shall represent)
that it is acquiring this Warrant and the Warrant Shares for its own account for investment purposes and not with a view to, or for sale
in connection with, any distribution hereof, and not with any present intention of distributing any of the same. Upon exercise of this
Warrant, the holder shall, if requested by the Company, confirm in writing, in a form satisfactory to the Company, that the Warrant Shares
so purchased are being acquired solely for the holder’s own account and not as a nominee for any other party, for investment, and not
with a view toward distribution or resale. If such holder cannot make such representations because they would be factually incorrect,
it shall be a condition to such holder’s exercise of the Warrant that the Company receive such other representations as the Company considers
reasonably necessary to assure the Company that the issuance of its securities upon exercise of the Warrant shall not violate any United
States Federal or state securities laws.

 

Section
7. Ownership and Transfer. 

 

(a)
The Company shall maintain at its principal executive offices (or such other office or agency of the Company as it may designate by notice
to the holder hereof), a register for this Warrant, in which the Company shall record the name and address of the person in whose name
this Warrant has been issued, as well as the name and address of each permissible transferee. The Company may treat the person in whose
name any Warrant is registered on the register as the owner and holder thereof for all purposes, notwithstanding any notice to the contrary,
but in all events recognizing any transfers made in accordance with the terms of this Warrant.

 

(b)
This Warrant and the rights granted to the holder hereof are transferable, in whole or in part, upon surrender of this Warrant, together
with a properly executed warrant power in the form of Exhibit B attached hereto; provided, however, that any transfer or assignment shall
be subject to the conditions set forth in Section 6 above and Section 7(c) below.

 

(c)
The holder of this Warrant understands that this Warrant has not been and is not expected to be, registered under the Securities Act
or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (a) there is an effective registration
statement under the Securities Act and applicable state securities laws covering any such transaction involving the securities, (b) the
Company receives an opinion of legal counsel for the holder, in form, substance and scope reasonably acceptable to the Company, that
registration is not required under the Securities Act, or (c) the Company, at its option, otherwise satisfies itself that such transaction
is exempt from registration. Any sale of such securities made in reliance on Rule 144 promulgated under the Securities Act may be made
only in accordance with the terms of said Rule and further, if said Rule is not applicable, any resale of such securities under circumstances
in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the
Securities Act) may require compliance with some other exemption under the Securities Act or the rules and regulations of the Securities
and Exchange Commission thereunder; and neither the Company nor any other person is under any obligation to register the Warrant Shares
under the Securities Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder.

 

Section
8. Adjustment of Warrant Exercise Price. In order to prevent dilution of the rights granted under this Warrant, the Warrant
Exercise Price shall be adjusted from time to time as follows:

 

(a)
Adjustment of Warrant Exercise Price upon Subdivision or Combination of Common Stock. If the Company at any time after the date
of issuance of this Warrant, subdivides (by any stock split, stock dividend, re-capitalization or otherwise) one or more classes of its
outstanding shares of Common Stock into a greater number of shares, the Warrant Exercise Price in effect immediately prior to such subdivision
will be proportionately reduced and the number of shares of Common Stock obtainable upon exercise of this Warrant will be proportionately
increased. If the Company at any time after the date of issuance of this Warrant combines (by combination, reverse stock split or otherwise)
one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Warrant Exercise Price in effect immediately
prior to such combination will be proportionately increased and the number of shares of Common Stock obtainable upon exercise of this
Warrant will be proportionately decreased.

 

    -5-

     

    

 

(b)
Reorganization, Reclassification, Consolidation, Merger or Sale. Any re-capitalization, reorganization reclassification, consolidation,
merger, sale of all or substantially all of the Company’s assets to another Person or other similar transaction which is effected in
such a way that holders of Common Stock are entitled to receive (either directly or upon subsequent liquidation) stock, securities or
assets with respect to or in exchange for Common Stock is referred to herein as an “Organic Change.” Prior to the consummation
of any Organic Change, the Company will make appropriate provision to insure that, upon the consummation of such Organic Change, the
holder hereof will thereafter have the right to acquire and receive in lieu of the Common Stock, such shares of stock, securities or
assets as may be issued or payable with respect to or in exchange for the number of shares of Common Stock immediately theretofore acquirable
and receivable upon exercise of this Warrant had such Organic Change not taken place. In any such case, the Company will make appropriate
provision with respect to such holders’ rights and interests to insure that the provisions of this Section 8(b) will thereafter be applicable
to this Warrant.

 

(c)
Notices.

 

(i)
Immediately upon any adjustment of the Warrant Exercise Price pursuant to this Section 8, the Company will give written notice thereof
to the holder of this Warrant, setting forth in reasonable detail and certifying the calculation of such adjustment.

 

(ii)
The Company will give written notice to the holder of this Warrant at least ten (10) days prior to the date on which the Company closes
its books or takes a record (A) with respect to any dividend or distribution upon the Common Stock, (B) with respect to any pro rata
subscription offer to holders of Common Stock or (C) for determining rights to vote with respect to any Organic Change, dissolution or
liquidation, except that in no event shall such notice be provided to such holder prior to such information being made known to the public.

 

(iii)
The Company will also give written notice to the holder of this Warrant at least ten (10) days prior to the date on which any Organic
Change, dissolution or liquidation will take place.

 

Section
9. Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant is lost, stolen, mutilated or destroyed, the Company shall,
on receipt of an indemnification undertaking, issue a new Warrant of like denomination and tenor as the Warrant so lost, stolen, mutilated
or destroyed.

 

Section
10. Notice. Any notices, consents, waivers, or other communications required or permitted to be given under the terms of this
Warrant must be in writing and will be deemed to have been delivered (i) upon receipt, when delivered personally; (ii) upon receipt,
when sent by facsimile, provided a copy is mailed by U.S. certified mail, return receipt requested; (iii) three (3) days after being
sent by U.S. certified mail, return receipt requested; or (iv) one (1) day after deposit with a nationally recognized overnight delivery
service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications
shall be:

 

If
to the Company: LOGIQ, INC.

85
Broad Street, 16-079New York, NY 10004

Attention:
____________________

Email:
____________________ 

 

		If
                              to the Holder:  	
____________________
 ____________________
	 	 	
____________________
	 	 	
____________________

 

Each
party shall provide five (5) days’ prior written notice to the other party of any change in address or facsimile number.

 

Section
11. Amendments. This Warrant and any term hereof may be changed, waived, discharged, or terminated only by an instrument in
writing signed by the Company and holder.

 

Section
12. Date. The date of this Warrant is ______________. This Warrant, in all events, shall be wholly void and of no effect after
the close of business on the Expiration Date, except that notwithstanding any other provisions hereof, the provisions of Section 7 shall
continue in full force and effect after such date as to any Warrant Shares or other securities issued upon the exercise of this Warrant.

 

Section
13. Amendment and Waiver. Except as otherwise provided herein, the provisions of this Warrant may be amended and the Company
may take any action herein prohibited, or omitted to perform any act herein required to be performed by it, only if the Company has obtained
the written consent of the holder of this Warrant.

 

Section
14. Descriptive Headings; Governing Law. The descriptive headings of the several sections of this Warrant are for convenience
of reference only and shall not limit or otherwise affect the meaning hereof. This Warrant shall be governed by and interpreted under
the laws of the State of Delaware, without giving effect to any choice of law or conflict of law provision.

 

[Signature
Page to Follow]

 

    -6-

     

    

 

This
Warrant has been duly executed by the parties as of the date first set forth above.

 

HOLDER:
___________________________________

 

    -7-

     

    

 

	LOGIQ,
    INC. 	 
	 	      	 
	By:	 	 
	Name:	Brent
    Y. Suen	 
	Title:	Executive
    Chairman	 

 

    -8-

     

    

 

EXHIBIT
A

 

WARRANT
EXERCISE NOTICE

 

(Complete
and Sign Only for Exercise of the Warrant in Whole or in Part)

 

TO:
LOGIQ, INC.

 

DATE:
________________________________

 

The
undersigned, the holder of the attached Warrant to which this Exercise Notice applies, hereby irrevocably elects to exercise the purchase
rights represented by such warrant for and to purchase thereunder shares of Common Stock, par value $0.0001 per share (the “Shares”),
from LOGIQ, INC., (or such other securities issuable pursuant to the terms of the Warrant) as follows:

 

Number
of shares exercised: ______________ Aggregate Exercise Price: $____________

 

{please
check √ payment method below}

☐
by cash    ☐ by certified or official bank check     ☐     by wire
transfer*

 

*
Wire transfer must be made in accordance with written wire instructions provided by the Company. 

 

The
undersigned hereby requests that the certificate(s) representing such securities be issued in the name(s) and delivered to the address(es)
as follows:

 

Name:
________________________

 

Address:
___________________________________________

 

Social
Security Number/FEIN: ______________________

 

Deliver
to: ______________________

 

Address:
___________________________________________

 

If
the foregoing subscription evidences an exercise of the Warrant to purchase fewer than all of the Shares (or other securities issuable
pursuant to the terms of the Warrant) to which the undersigned is entitled under such warrant, please issue a new warrant, of like tenor,
relating to the remaining portion of the securities issuable upon exercise of such warrant (or other securities issuable pursuant to
the terms of such warrant) in the name(s), and deliver the same to the address(es), as follow:

 

Name:
________________________

 

Address:
___________________________________________

 

Dated:
_________________________

 

______________________________________

(Name
of Holder) (Social Security or Taxpayer ID No. of Holder)

 

______________________________________

(Signature
of Holder or Authorized Signatory) 

 

    -9-

     

    

 

EXHIBIT
B

 

FORM
OF WARRANT POWER

 

FOR
VALUE RECEIVED, the undersigned does hereby assign and transfer to

____________________________________
Federal Identification No._____________, a warrant to purchase shares of the capital stock of LOGIQ, INC., a Delaware corporation,
represented by Warrant No.___________, standing in the name of the undersigned on the books of said corporation. The undersigned does
hereby irrevocably constitute and appoint ____________________________________, attorney to transfer the warrants of said corporation,
with full power of substitution in the premises.

 

Dated:
_____________________

 

	 	 
	 	{print
    name of individual or entity holding warrant}
	 	 	 
	 	 
	 	{signature
    of individual or authorized person of entity}
	 	 	 
	 	By:
    	
	 	{print
    name of authorized person of entity}
	 	 	 
	 	Its:	
	 	 	{print
    title of authorized person of entity}

 

 

-10-mpb-ex101_27.htm

Exhibit 10.1

[Mid Penn Bancorp, Inc. Letterhead]

June 30, 2021 

Castle Creek Capital Partners VI, L.P.  

6051 El Tordo

Rancho Santa Fe, CA 92091 

Ladies and Gentlemen: 

Reference is made to that certain Agreement and Plan of Merger by and between Mid Penn Bancorp, Inc. (the “Company”) and Riverview Financial Corporation (“Riverview”) dated June 30, 2021 (the “Merger Agreement”), pursuant to which Riverview will merge with and into the Company, with the Company as the surviving corporation in the merger (the “Merger”).  Riverview and Castle Creek Capital Partners, VI, L.P. (“Castle Creek”) are party to that certain agreement dated January 17, 2017 (the “Riverview Agreement”), executed in connection with that certain Stock Purchase Agreement, dated as of January 17, 2017, between Riverview, Castle Creek and the other purchasers identified on the signature pages thereto, pursuant to which Riverview granted Castle Creek certain investor rights specific to Castle Creek.  

As a material inducement to the Company’s willingness to execute and deliver the Merger Merger Agreement, the Company and Castle Creek are contemporaneously entering into this agreement (the “Side Letter Agreement”), which shall supersede the Riverview Agreement in its entirety, effective upon the Effective Time of the Merger.  Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement.  

The Company and Castle Creek hereby agree as follows: 

1.Termination of Riverview Agreement.  Effective immediately upon the Effective Time of the Merger, the Riverview Agreement, as well as any other side letters, agreements, documents or understandings between Riverview and Castle Creek related to Castle Creek’s investment in Riverview, are hereby terminated.  

 

2.Term.  This Side Letter Agreement shall terminate on the date that Castle Creek and its Affiliates in the aggregate no longer have a Minimum Ownership Interest (the “Term”).  Any and all obligations of the parties pursuant to the terms hereof shall expire at the end of the Term; provided, that any confidentiality and indemnification obligations of the parties shall expressly survive the termination of this Side Letter Agreement.  In the event that the Merger Agreement is terminated and the Effective Time does not occur, then this Side Letter Agreement shall be deemed null and void.

 

	
 
	
3.
	
Board Appointment.  

(a) Commencing on the first anniversary of the Effective Time and continuing thereafter so long as this Side Letter Agreement remains in effect, Castle Creek shall have the right, upon not less than ninety (90) days’ prior written notice to the Company, to designate a person reasonably acceptable to the Company (the “Board Representative”) to be elected or appointed to the Board of Directors of the Company (the “Board of Directors”) effective as of the date of such 

 

 

written notice. Any person who is a director, officer, employee, principal, advisor or Affiliate of Castle Creek or any of its Affiliates shall be deemed to be reasonably acceptable to the Company for purposes of the Board Representative.  The Company will cause the Board Representative to be elected or appointed to the Board of Directors of the Company as promptly as practicable after receipt of such written notice from Castle Creek, subject to satisfaction of all legal and regulatory requirements regarding service and election or appointment as a director of the Company, and subject to compliance with all corporate governance guidelines or principles that the Company may adopt, to its code of conduct and to its insider trading and other policies applicable to members of the Board of Directors, for as long as Castle Creek, together with its Affiliates, owns, in the aggregate, at least five percent (5%) of the Mid Penn Common Stock, taken as a whole, then outstanding (“Minimum Ownership Interest”). If Castle Creek no longer has a Minimum Ownership Interest, Castle Creek will have no further rights under this Side Letter Agreement and, at the written request of the Board of Directors, shall use reasonable best efforts to cause its Board Representative to resign from the Board of Directors as promptly as possible thereafter.  Castle Creek shall promptly inform the Company if and when it ceases to hold a Minimum Ownership Interest in the Company.  

(b) The Board Representative shall, subject to applicable law, be one of the Company’s nominees to serve on the Board of Directors as necessary or appropriate to assure the continued service of the Board Representative for the Term.  The Company shall use its reasonable best efforts to have the Board Representative elected as a director of the Company by the shareholders of the Company, and the Company shall solicit proxies for the Board Representative to the same extent as it does for any of its other Company nominees to the Board of Directors.  Notwithstanding the foregoing, if this Side Letter Agreement is terminated or expires pursuant to its terms, or Castle Creek no longer has a Minimum Ownership Interest, Castle Creek shall use reasonable best efforts to cause its Board Representative to resign from the Board of Directors as promptly as possible thereafter. Castle Creek covenants and agrees to hold any information obtained from its Board Representative in confidence (except to the extent that such information can be shown to have been (1) previously known by such party on a nonconfidential basis, (2) in the public domain through no fault of such party or (3) later lawfully acquired from other sources by the party to which it was furnished).  Notwithstanding anything to the contrary contained herein, at all times when Castle Creek maintains a Minimum Ownership Interest, it shall comply in all respects with the Federal Reserve’s Policy Statement on equity investments in banks and bank holding companies and any other guidance promulgated in connection with the matters addressed therein. 

(c) Subject to Section 3(a), upon the death, resignation, retirement, disqualification, or removal from office as a member of the Board of Directors of the Board Representative, Castle Creek shall have the right to designate the replacement for such Board Representative, which replacement shall satisfy all legal, bank regulatory and governance requirements regarding service as a director of the Company, and shall be reasonably acceptable to the Company (provided that all directors, officers, employees, principals, advisors and Affiliates of Castle Creek or any of its Affiliates shall be deemed reasonably acceptable to the Company for purposes hereof).  The Board of Directors shall use their respective commercially reasonable efforts to take all action required to fill the vacancy resulting therefrom with such person (including such person, subject to applicable Law, being one of the Company’s nominees to serve on the Board of Directors), using all reasonable best efforts to have such person elected as director of the Company by the 

2

 

 

shareholders of the Company and the Company soliciting proxies for such person to the same extent as it does for any of its other nominees to the Board of Directors, as the case may be. 

(d) The Board Representative shall be entitled to compensation, including fees, and indemnification and insurance coverage in connection with his or her role as a director, to the same extent as other directors on the Board of Directors, and the Board Representative shall be entitled to reimbursement for reasonable documented, out-of-pocket expenses incurred in attending meetings of the Board of Directors, in accordance with Company policy. 

(e) The Company acknowledges that the Board Representative may have certain rights to indemnification, advancement of expenses and/or insurance provided by Castle Creek and/or certain of its Affiliates (collectively, the “Castle Creek Indemnitors”).  The Company hereby agrees on behalf of itself that with respect to a claim by the Board Representative for indemnification arising out his or her service as a director of the Company (1) that it is the indemnitor of first resort (i.e., its obligations to the Board Representative with respect to indemnification, advancement of expenses and/or insurance (which obligations shall be the same as, but in no event greater than, any such obligations to members of the Board of Directors) are primary, and any obligation of the Castle Creek Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by the Board Representative are secondary), and (2) the Castle Creek Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of the Board Representative against the Company. 

4.Board Observer. The Company hereby agrees that, from and after the Closing, for so long as Castle Creek and its Affiliates in the aggregate have a Minimum Ownership Interest, and do not have a Board Representative currently serving on the Board of Directors, the Company shall invite a person designated by Castle Creek and reasonably acceptable to the Company (provided that all directors, officers, employees, principals, advisors and Affiliates of Castle Creek or any of its Affiliates shall be deemed reasonably acceptable to the Company for purposes hereof) (the “Observer”) to attend meetings of the Board of Directors in a non-voting, non-participating observer capacity; provided, however that in no event shall the Observer be entitled to attend more than six (6) meetings of the Board of Directors during the period from the date hereof to the first anniversary hereof and, thereafter, to attend more than four (4) meetings of the Board of Directors per year, except as mutually agreed between the Company and Castle Creek.  The Observer shall be entitled to attend such meetings only in the event Castle Creek does not have a Board Representative on the Board of Directors.  The Observer shall not have any right to vote on any matter presented to the Board of Directors or any committee thereof.  The Company shall give the Observer written notice of each meeting of the Board of Directors at the same time and in the same manner as the members of the Board of Directors, shall, with respect to meetings actually attended by the Observer, provide the Observer, on the date of the meeting, with all written materials and other information given to members of the Board of Directors (provided, however, that the Observer shall not be provided any confidential supervisory information), and shall permit the Observer to attend as an observer at all meetings thereof, subject to the limitations in this Section 4, and in the event the Company proposes to take any action by written consent in lieu of a meeting, the Company shall give written notice thereof to the Observer prior to the effective date of such consent describing the nature and substance of such action and including the proposed text of such written consents; provided, however, that (1) the Observer may be 

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excluded from executive sessions comprised solely of independent directors by the Chairman of the Board of Directors (or, if applicable, the lead or presiding independent director) if, in the written advice of counsel, such exclusion is necessary in order for the Company to comply with applicable law, regulation or stock exchange listing standards (it being understood that it is not expected that the Observer would be excluded from routine executive sessions), (2) the Company and the Board of Directors shall have the right to withhold any information and to exclude the Observer from any meeting or portion thereof if doing so is, in the written advice of counsel, (A) necessary to protect the attorney-client privilege between such party and counsel, (B) necessary to avoid a violation of fiduciary requirements under applicable law, or (C) necessary to avoid a violation of the Health Insurance Portability & Accountability Act of 1996, as amended, or any similar law, and (3) Castle Creek shall cause the Observer to agree to hold in confidence and trust and to act in a fiduciary manner, with respect to all information provided to such Observer (except to the extent that such information can be shown to have been (1) previously known by such party on a nonconfidential basis, (2) in the public domain through no fault of such party, or (3) later lawfully acquired from other sources by the party to which it was furnished). 

 

5.Limitations. The Company also may exclude the Observer and/or the Board Representative from portions of meetings of the Board of Directors to the extent that the Board of Directors will, in any such portion thereof, be discussing any matters that the Chairman of the Board of Directors determines in good faith is or may be adverse to the interests of Castle Creek provided, however, no matter shall be deemed to be adverse to the interests of Castle Creek merely because such matter may adversely impact the price of any of the Company’s Securities.  Castle Creek covenants and agrees to hold all information obtained from the Observer or Board Representative as provided in the prior sentence in confidence and to comply with all requirements and obligations applicable to members of the Board of Directors under the Securities Act, the Exchange Act, the Sarbanes Oxley Act of 2002 and all other Laws, in each case, only to the extent (if at all) applicable to the Observer or Board Member, as the case may be.  Each of the parties to this Side Letter Agreement hereby acknowledges that they are aware, and will ensure that their representatives and Affiliates are aware, that the United States securities laws prohibit any person who has material non-public information about a company from purchasing or selling securities of such company, or from communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is likely to purchase or sell such securities. 

6.Complete Agreement.  This Side Letter Agreement contains the entire agreement and understanding of the parties with respect to its subject matter.  There are no restrictions, agreements, promises, warranties, covenants or undertakings between the parties other than those expressly set forth herein or therein.  This Side Letter Agreement supersedes all prior agreements and understandings between the parties (including Riverview), both written and oral, with respect to its subject matter.

7.Parties in Interest.  This Side Letter Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns; provided, however, that neither this Side Letter Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any party hereto without the prior written consent of the other party.  Except for the provisions of Section 3(e) and except as otherwise expressly provided by this Side 

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Letter Agreement, following the Effective Time, nothing in this Side Letter Agreement, express or implied, is intended to confer upon any person, other than the parties hereto and their respective successors, any rights, remedies, obligations or liabilities under or by reason of this Side Letter Agreement.

8.Governing Law. This Side Letter Agreement and all acts and transactions pursuant hereto shall be governed, construed and interpreted in accordance with the laws of the Commonwealth of Pennsylvania, without giving effect to principles of conflicts of laws. 

9.Counterparts. This Side Letter Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, with the same effect as if all parties had signed the same document. All such counterparts will be deemed an original, will be construed together and will constitute one and the same instrument. 

 

10.Delivery by Facsimile or Electronic Transmission. This Side Letter Agreement and any signed agreement or instrument entered into in connection with this Side Letter Agreement, and any amendments or waivers hereto or thereto, to the extent signed and delivered by means of a facsimile machine or by e-mail delivery of a “.pdf” format data file, shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. No party hereto or to any such agreement or instrument shall raise the use of a facsimile machine or e-mail delivery of a “.pdf” format data file to deliver a signature to this Side Letter Agreement or any amendment hereto or the fact that any signature or agreement or instrument was transmitted or communicated through the use of a facsimile machine or e-mail delivery of a “.pdf” format data file as a defense to the formation of a contract and each party hereto forever waives any such defense

[Signature Page Follows] 

 

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Exhibit 10.1

 

IN WITNESS WHEREOF, the parties, in consideration of the foregoing and intending to be legally bound, have executed this Side Letter Agreement as of the date first above written. 

 

 

MID PENN BANCORP, INC.

 

By:  /s/ Rory G. Ritrievi

Name:  Rory G. Ritrievi

Title:  President & CEO

 

 

Agreed and acknowledged as of the date first above written: 

 

CASTLE CREEK CAPITAL PARTNERS VI, L.P. 

By:  Castle Creek Capital VI LLC, its general partner

Name:  /s/ Anthony R. Scavuzzo

Title:  Managing Principal

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