Document:

Wdesk | EX 10.26 WFT FORM OF ADDENDUM

Exhibit 10.26

COUNTRY APPENDIX
ADDITIONAL TERMS AND CONDITIONS TO [RESTRICTED SHARE/PERFORMANCE] UNIT AWARD AGREEMENT

This country-specific appendix ("Appendix") includes the following additional terms and conditions that govern the award of Units for all Holders that reside and/or work outside of the United States.

Notifications

This Appendix includes information regarding exchange controls and certain other issues of which the Holder should be aware with respect to the Holder’s participation in the Plan.  The information is based on the securities, exchange control and other laws in effect in the respective countries as of July 2014.  Such laws are often complex and change frequently.  As a result, the Company strongly recommends that the Holder not rely on the information in this Appendix as the only source of information relating to the consequences of the Holder’s participation in the Plan because the information may be out of date at the time that the Units vest, or Shares are delivered in settlement of the Units, or the Holder sells any Shares acquired under the Plan.
In addition, the information contained herein is general in nature and may not apply to the Holder’s particular situation, and the Company, nor its Affiliates, are in a position to assure the Holder of a particular result.  Accordingly, the Holder is advised to seek appropriate professional advice as to how the relevant laws in the Holder’s country of residence and/or work may apply to the Holder’s situation.  
Finally, if the Holder transfers employment after the date of grant, or is considered a resident of another country for local law purposes following the date of grant, the notifications contained herein may not be applicable to the Holder, and the administrator shall, in its discretion, determine to what extent the terms and conditions contained herein shall be applicable to the Holder.
Terms and Conditions Applicable to All Non-U.S. Jurisdictions

English Language.  The Holder acknowledges and agrees that it is the Holder’s express intent that this Agreement, the Plan and all other documents, rules, procedures, forms, notices and legal proceedings entered into, given or instituted pursuant to the Units, be drawn up in English.  If the Holder has received this Agreement, the Plan or any other rules, procedures, forms or documents related to the Units translated into a language other than English, and if the meaning of the translated version is different than the English version, the English version will control.

Repatriation; Compliance with Laws.  The Holder agrees, as a condition of the grant of the Units, to repatriate all payments attributable to the award and/or cash acquired under the Plan (including, but not limited to, dividends, dividend equivalents, and any proceeds derived from the sale of the Shares acquired pursuant to the Agreement) in accordance with all foreign exchange rules and regulations applicable to the Holder.  The Company and the administrator reserve the right to impose other requirements on the Holder’s participation in the Plan, on the Units and on any Shares acquired or cash payments made pursuant to the Agreement, to the extent the Company, or its Affiliates determines it is necessary or advisable in order to comply with local law or to facilitate the administration of the Plan, and to require the Holder to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.  Finally, the Holder agrees to take any and all actions as may be required to comply with the Holder’s personal legal and tax obligations under all laws, rules and regulations applicable to the Holder. 

Private Placement.  The grant of the Units is not intended to be a public offering of securities in the Holder’s country of residence and/or employment but instead is intended to be a private placement.  As a private 

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placement, the Company has not submitted any registration statement, prospectus or other filings with the local securities authorities (unless otherwise required under local law), and the grant of the Units is not subject to the supervision of the local securities authorities.    

Terms and Conditions Applicable to Argentina

Securities Law Information.  Units and Shares issued by the Company are offered as a private transaction.  This offering is not subject to supervision by any Argentine governmental authority.

Exchange Control Information.  If the Holder transfers proceeds from the sale of Shares or any cash dividends paid on such Shares into Argentina within 10 days of receipt (i.e., if the proceeds have not been held in the offshore bank or brokerage account for at least 10 days prior to transfer), the Holder will be required to deposit 30% of the proceeds into a non-interest bearing account in Argentina for 365 days.  The Argentine bank handling the transaction may request certain documentation in connection with the Holder’s request to transfer proceeds into Argentina, including evidence of the sale and proof that no funds were remitted out of Argentina to acquire the Shares.  If the bank determines that the 10-day rule or any other rule or regulation promulgated by the Argentine Central Bank has not been satisfied, it will require that 30% of the proceeds be placed in a non-interest bearing dollar denominated mandatory deposit account for a holding period of 365 days.  

The Holder is solely responsible for complying with any exchange control laws that may apply to the Holder as a result of participation in the Plan and/or the transfer of funds in connection with the Units.  The Holder should consult his or her local bank and/or exchange control advisor to confirm the exchange control rules and required documentation for a transfer of funds into Argentina.

Terms and Conditions Applicable to Azerbaijan

Securities Law Information.  By accepting the Units the Holder understands that the Agreement, the Plan and all other materials the Holder may receive regarding the Holder's participation in the Plan does not constitute advertising or the offering of securities in Azerbaijan.  The issuance of securities pursuant to the Plan has not been and will not be registered in Azerbaijan and therefore, the securities described in any Plan-related documents may not be used for sale or public circulation in Azerbaijan.  Further, the Holder understands that the Shares issued upon settlement of the Units will be deposited into a Company-designated brokerage account in the United States as soon as practical after the applicable settlement date and in no event will Shares issued upon settlement of the Units be delivered to the Holder in Azerbaijan.  

Terms and Conditions Applicable to Brazil

Exchange Control Information.  If the Holder is a resident or domiciled in Brazil, the Holder is required to submit annually a declaration of assets and rights held outside of Brazil to the Central Bank of Brazil if the aggregate value of such assets and rights is equal to or greater than US$100,000.  Assets and rights that must be reported include Shares acquired under the Plan.

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Terms and Conditions Applicable to Canada

Settlement in Shares.  Notwithstanding anything to the contrary in the Agreement, Appendix or the Plan, the Units shall be settled only in Shares of the Company (and may not be settled in cash).

Use of English Language.  The Holder acknowledges and agrees that it is the Holder's express wish that this Agreement, as well as all documents, notices and legal proceedings entered into, given or instituted pursuant hereto or relating directly or indirectly hereto, be drawn up in English.  Les parties reconnaissent avoir souhaité expressément que la convention ainsi les notices et la documentation juridique fournis ou mis en œuvre ou institués directement ou indirectement, relativement aux présentes, soient rédigés en anglais.

Terms and Conditions Applicable to China

Immediate Sale of Shares.  If the Holder is a People's Republic of China ("PRC") national, he or she may be required to immediately sell all Shares acquired upon vesting of the Units (in which case, this Appendix shall give the Company the authority to issue sales instructions on the Holder’s behalf).  The Holder agrees to sign any additional agreements, forms and/or consents that reasonably may be requested by the Company (or the Company’s designated brokerage firm) to effectuate the sale of the Shares (including, without limitation, as to the transfer of the sale proceeds and other exchange control matters noted below) and shall otherwise cooperate with the Company with respect to such matters.  The Holder acknowledges that neither the Company nor the designated brokerage firm is under any obligation to arrange for such sale of Shares at any particular price (it being understood that the sale will occur in the market) and that broker’s fees and similar expenses may be incurred in any such sale.  In any event, when the Shares are sold, the sale proceeds, less any tax withholding, any broker’s fees or commissions, and any similar expenses of the sale will be remitted to the Holder in accordance with applicable exchange control laws and regulations.

Administration.  The Company shall not be liable for any costs, fees, lost interest or dividends or other losses the Holder may incur or suffer resulting from the enforcement of the terms of this Appendix or otherwise from the Company’s operation and enforcement of the Plan, the Agreement and the Units in accordance with Chinese law including, without limitation, any applicable PRC exchange control rules, regulations and requirements.  

Terms and Conditions Applicable to Colombia

Exchange Control Information.   Investment and assets (such as Shares) held abroad must be registered with the Central Bank (Banco de la Republica) if the value the Holder’s aggregate investments and assets abroad (as of December 31st of the relevant fiscal year) equals or exceeds US$500,000.  In addition, when the Holder sells or otherwise dispose of any Units acquired under the Plan, if the investment was registered with the Central Bank, the Holder must cancel the registration no later than March 31st of the year following the year in which the Shares were sold.  If the Holder does not cancel the registration by the above-mentioned deadline, the Holder will be subject to a fine of up to 200% of the value of the registered amount.  

Terms and Conditions Applicable to Denmark

Treatment of Units Upon Termination of Employment.  Notwithstanding any provision in the Agreement or the Plan to the contrary, the treatment of the Units upon the Holder's termination of employment shall be governed by the Act on Stock Option in Employment Relations.

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Notifications Applicable To France

Use of English Language. The Holder acknowledges and agrees that it is the Holder's express wish that this Agreement, as well as all documents, notices and legal proceedings entered into, given or instituted pursuant hereto or relating directly or indirectly hereto, be drawn up in English.  Les parties reconnaissent avoir exigé la rédaction en anglais de la présente convention, ainsi que de tous documents exécutés, avis donnés et procédures judiciaires intentées, directement ou indirectement, relativement à ou suite à la présente convention.

Terms and Conditions Applicable to Germany

Exchange Control Information.  Cross-border payments in excess of €12,500 must be reported monthly to the State Central Bank.  The Holder is responsible for obtaining the appropriate form from the remitting bank and complying with the applicable reporting obligations. 

Terms and Conditions Applicable to India

Exchange Control Information.  The Holder understands that he or she must repatriate any proceeds from the sale of Shares acquired under the Plan to India within ninety (90) days after receipt.  The Holder must obtain a foreign inward remittance certificate (“FIRC”) from the bank where he or she deposits the foreign currency and must maintain the FIRC as evidence of the repatriation of funds in the event the Reserve Bank of India or the employer requests proof of repatriation.

Terms and Conditions Applicable to Indonesia

Exchange Control Information.  If the Holder remits funds (including proceeds from the sale of Shares) into Indonesia, the Indonesian bank through which the transaction is made will submit a report of the transaction to the Bank of Indonesia for statistical reporting purposes.  For transactions of US$10,000 or more, a more detailed description of the transaction must be included in the report and the Holder may be required to provide information about the transaction (e.g., the relationship between the Holder and the transferor of the funds, the source of the funds, etc.) to the bank in order for the bank to complete the report.

Notifications Applicable to Malaysia

Director Reporting Requirement.  If the Holder is a director of a local affiliate in Malaysia, the Holder has an obligation to notify the local affiliate in Malaysia in writing: (i) when the Holder is granted Units under the Plan, (ii) when the Holder’s Units are settled and the Holder receives Shares, (iii) when Shares are sold or (iv) when there is an event giving rise to a change with respect to the Holder’s interest in the Company.  The Holder must provide this notification within 14 days of the date the interest is acquired or disposed of or the occurrence of the event giving rise to the change to enable the local affiliate in Malaysia to comply with the relevant requirements of the Malaysian authorities.  The Malaysian Companies Act prescribes criminal penalties for directors who fail to provide such notice. 

Terms and Conditions Applicable to the Netherlands

Securities Law Information.  The Holder should be aware of Dutch insider-trading rules, which may impact the sale of Shares acquired at vesting of the Units.  In particular, the Holder may be prohibited from effectuating certain transactions involving Shares during the period in which the Holder possesses “inside information” regarding the Company.  

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By accepting the Units, the Holder acknowledges having read and understood the Securities Law Information and further acknowledges that it is the Holder's responsibility to comply with the following Dutch insider trading rules:  
Under Article 5:56 of the Dutch Financial Supervision Act, anyone who has “inside information” related to the Company is prohibited from effectuating a transaction in securities in or from the Netherlands.  “Inside information” is knowledge of a detail concerning the issuer to which the securities relate that is not public and which, if published, would reasonably be expected to affect the stock price, regardless of the development of the price.  The insider could be any employee of the Company or an Affiliate in the Netherlands who has inside information as described herein.

Waiver of Termination Rights.  As a condition to the grant of the Units, the Holder hereby waives any and all rights to compensation or damages as a result of a termination of service for any reason whatsoever, insofar as those rights result or may result from (a) the loss or diminution in value of such rights or entitlements under the Plan, or (b) the Holder ceasing to have rights under, or ceasing to be entitled to any Units under the Plan as a result of such termination.  

Notifications Applicable to Pakistan

Exchange Control Information.  The Holder is required to immediately repatriate to Pakistan the proceeds from the sale of Shares.  The proceeds must be converted into local currency and the receipt of proceeds must be reported to the State Bank of Pakistan (the “SBP”) by filing a “Proceeds Realization Certificate” issued by the bank converting the proceeds with the SBP.  The repatriated amounts cannot be credited to a foreign currency account.  The Holder should consult with the Holder's personal advisor prior to vesting and settlement of the Units to ensure compliance with the applicable exchange control regulations in Pakistan, as such regulations are subject to frequent change.  The Holder is responsible for ensuring compliance with all exchange control laws in Pakistan.

Notifications Applicable to Russia

U.S. Transaction.  Upon vesting of the Units, any Shares to be issued to the Holder shall be delivered to the Holder through a bank or brokerage account in the United States.  In no event will Shares be delivered to the Holder in Russia; instead, all Shares acquired upon vesting of the Units will be maintained on the Holder's behalf in the United States.  The Holder is not permitted to sell Shares acquired at vesting directly to a Russian legal entity or resident.

Exchange Control Information.  Under current exchange control regulations, within a reasonably short time after receipt, the Holder must repatriate any proceeds received under the Plan (e.g., proceeds from the sale of Shares, dividend equivalents, cash dividends) to Russia.  Such proceeds must be initially credited to the Holder through a foreign currency account at an authorized bank in Russia.  After the proceeds are initially received in Russia, they may be further remitted to foreign banks in accordance with Russian exchange control laws.  

The Holder is encouraged to contact his or her personal advisor before any Units vest and Shares are sold as significant penalties may apply in the case of non-compliance with exchange control requirements and because exchange control requirements change frequently.

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Securities Law Information.  This Agreement, the Plan and all other materials that the Holder may receive regarding participation in the Plan do not constitute advertising or an offering of securities in Russia.  The issuance of securities under the Plan has not and will not be registered in Russia; hence, the securities described in any Plan-related documents may not be used for offering or public circulation in Russia.

Terms and Conditions Applicable to Singapore

Director Notification Information.  If the Holder is a director, associate director or shadow director1 of a Singapore Subsidiary, the Holder is subject to certain notification requirements under the Singapore Companies Act, regardless of whether the Holder is a Singapore resident or employed in Singapore.  Among these requirements is an obligation to notify the Singapore Subsidiary of an interest (e.g., award of Units, Shares) in the Company or any related companies within two business days of (i) acquiring or disposing of such interest, (ii) any change in a previously disclosed interest (e.g., vesting of Units, sale of Shares), or (iii) becoming a director, associate director or shadow director if such an interest exists at the time..  The Holder may contact the Company to obtain a copy of the notification form.  

Securities Law Information.  The grant of the Units is being made pursuant to the “Qualifying Person” exemption” under section 273(1)(f) of the Securities and Futures Act (Chapter 289, 2006 Ed.) (“SFA”).  The Plan has not been lodged or registered as a prospectus with the Monetary Authority of Singapore.  The Holder should note that the Units are subject to section 257 of the SFA and the Holder will not be able to make (i) any subsequent sale of the Shares in Singapore or (ii) any offer of such subsequent sale of the Shares subject to the Units in Singapore, unless such sale or offer is made pursuant to the exemptions under Part XIII Division 1 Subdivision (4) (other than section 280) of the SFA.

Terms and Conditions Applicable to South Africa

Exchange Control Obligations.  The Holder is solely responsible for complying with applicable exchange control regulations and rulings (the “Exchange Control Regulations”) in South Africa.  As the Exchange Control Regulations change frequently and without notice, the Holder should consult his or her legal advisor prior to the acquisition or sale of Shares under the Plan to ensure compliance with current Exchange Control Regulations.  Neither the Company nor any of its Affiliates will be liable for any fines or penalties resulting from the Holder's failure to comply with applicable laws.

Terms and Conditions Applicable to Spain

Nature of Award.  In accepting the grant of Units, the Holder acknowledges that he or she consents to participation in the Plan and has received a copy of the Plan.

The Holder understands that the Company has unilaterally, gratuitously and discretionally decided to grant Units under the Plan to individuals who may be employees of the Company or Affiliate throughout the world.  The decision is a limited decision that is entered into upon the express assumption and condition that any grant will not economically or otherwise bind the Company or Affiliate on an ongoing basis.  Consequently, the Holder understands that the Units are granted on the assumption and condition that the Units and the Shares acquired upon lapse of the restrictions relating to the Units shall not become a part of any employment contract (either with the Company or the Company's Affiliates) and shall not be considered a mandatory benefit, salary for any purposes (including severance compensation) or any other right whatsoever.  In addition, the Holder understands that this grant would not be made to the Holder but for the assumptions and conditions referred to above; thus, the Holder acknowledges and freely accepts that should any or all of 

1 A shadow director is an individual who is not on the board of the Singapore Affiliate but who has sufficient control so that the board of directors acts in accordance with the “directions or instructions” of the individual.

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the assumptions be mistaken or should any of the conditions not be met for any reason, then any grant of Units shall be null and void.

The Holder understands and agrees that, as a condition of the grant of the Units, the termination of the Holder’s continuous status as an employee for any reason (including the reasons listed below) will automatically result in the loss of the Units to the extent the Units have not vested as of date the Holder is no longer actively employed.  In particular, the Holder understands and agrees that any unvested Units as of the date the Holder is no longer actively employed will be forfeited without entitlement to the underlying Shares or to any amount of indemnification in the event of the termination of the Holder’s continuous status as an employee by reason of, but not limited to, resignation, retirement, disciplinary dismissal adjudged to be with cause, disciplinary dismissal adjudged or recognized to be without cause, individual or collective dismissal on objective grounds, whether adjudged or recognized to be with or without cause, material modification of the terms of employment under Article 41 of the Workers’ Statute, relocation under Article  40 of the Workers’ Statute, Article 50 of the Workers’ Statute, unilateral withdrawal by the employer and  under Article 10.3 of the Royal Decree 1382/1985.  The Holder acknowledges that he or she has read and specifically accepts the conditions referred to in this Appendix.

Securities Law Information.  No “offer of securities to the public,” within the meaning of Spanish law, has taken place or will take place in the Spanish territory in connection with the Units.  The Plan, the Agreement (including this Appendix) and any other documents evidencing the grant of the Units have not been, nor will they be, registered with the Comisión Nacional del Mercado de Valores (the Spanish securities regulator), and none of those documents constitutes a public offering prospectus.

Exchange Control Information.  The acquisition, ownership and sale of Shares under the Plan must be declared for statistical purposes to the Spanish Dirección General de Comercio e Inversiones (the “DGCI”), the Bureau for Commerce and Investments, which is a department of the Ministry of Economy and Competitiveness.  Generally, the declaration must be made in January for Shares acquired or sold during (or owned as of December 31 of) the prior year.  The Holder may also be required to declare any securities accounts (including brokerage accounts held abroad) depending on the value of the transactions during the relevant year or the balances in such accounts as of December 31 of the relevant year.

When receiving foreign currency payments derived from the ownership of Shares (i.e., dividends or sale proceeds) exceeding €50,000, the Holder must inform the financial institution receiving the payment of the basis upon which such payment is made.  The Holder will need to provide the institution with the following information: (i) the Holder’s name, address, and tax identification number; (ii) the name and corporate domicile of the Company; (iii) the amount of the payment; the currency used; (iv) the country of origin; (v) the reasons for the payment; and (vi) further information that may be required.

The Holder is solely responsible for complying with any exchange control or other reporting requirement that may apply to the Holder as a result of participation in the Plan, the acquisition and/or sale of the Shares and/or the transfer of funds in connection with the award.  The Holder should consult his or her legal advisor to confirm the current reporting requirements when he or she acquires Shares, sells Shares and/or transfers any funds related to the Plan to Spain.

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Terms and Conditions Applicable to Thailand

Exchange Control Information.  The Holder must repatriate the proceeds from the sale of Shares and any cash dividends received in relation to the Shares to Thailand immediately upon receipt and to convert the funds to Thai Baht or deposit the proceeds in a foreign currency deposit account maintained by a bank in Thailand within 360 days of remitting the proceeds to Thailand.  If the amount of the proceeds is equal to or greater than US$50,000, the Holder must specifically report the inward remittance to the Bank of Thailand on a Foreign Exchange Transaction Form.  If the Holder does not comply with this obligation, the Holder may be subject to penalties assessed by the Bank of Thailand.  Because exchange control regulations change frequently and without notice, the Holder should consult a legal advisor before selling Shares to ensure compliance with current regulations.  It is the Holder's responsibility to comply with exchange control laws in Thailand, and neither the Company nor the Holder's employer will be liable for any fines or penalties resulting from the Holder's failure to comply with applicable laws.

Terms and Conditions Applicable to the United Kingdom

Tax Loan.  The following provision supplements Section 8 of the Agreement:
If payment or withholding of the income tax is due in connection with the Units and is not made within ninety (90) days after the end of the year in which the event giving rise to the income tax liability occurs or such other period specified in Section 222(1)(c) of the ITEPA 2003 (the “Due Date”), the amount of any uncollected income tax will constitute a loan owed by the Holder to the Company or Affiliate, effective on the Due Date.  Holder agrees that the loan will bear interest at then-current Official Rate of Her Majesty’s Revenue and Customs (“HMRC”), it will be immediately due and repayable, and the Company or Affiliate may recover it at any time thereafter by any of the means referred to in the Agreement.  
Notwithstanding the foregoing, if Holder is a director or executive officer of the Company (within the meaning of Section 13(k) of the U.S. Securities Exchange Act of 1934, as amended), Holder will not be eligible for such a loan to cover the income tax due as described above.  In the event that Holder is a director or executive officer and the income tax is not collected from or paid by Holder by the Due Date, the amount of any uncollected tax will constitute a benefit to Holder on which additional income tax and National Insurance Contributions (“NICs”) will be payable.  Holder acknowledges that the Company or Affiliate may recover any such additional income tax and NICs any time thereafter by any of the means referred to in the Agreement.  Holder will also be responsible for reporting and paying any income tax and NICs due on this additional benefit directly to HMRC under the self-assessment regime.  

Terms and Conditions Applicable to the Venezuela

Settlement of Units.  Settlement of vested Units shall be made in Shares, provided, however, that the Company has discretion to settle the Units in cash if it determines that cash settlement is necessary or advisable in light of changes in regulatory requirements in Venezuela.  In the event that the Units are settled in cash, the amount of the cash payment upon vesting and settlement of the Units shall be based on the fair market value (as determined by the Company) of the Shares subject to the vested Units, less any applicable Tax-Related Items.  

8Exhibit 10.1

 

WARRANT REPURCHASE AGREEMENT

 

THIS WARRANT REPURCHASE AGREEMENT (this “Agreement”) is made and entered into as of this 17th day of February, 2015, by and between WLR Recovery Fund IV, L.P. (“WLR Recovery”), WLR IV Parallel ESC, L.P. (“WLR Parallel” and, together with WLR Recovery, the “Sellers,” and each a “Seller”), and Talmer Bancorp, Inc., a Michigan corporation (the “Purchaser”).

 

RECITALS

 

WHEREAS, the Purchaser has granted warrants to Sellers to purchase in the aggregate up to 2,529,416 shares of Purchaser’s Class A Voting Common Stock, par value $1.00 per share (the “Common Shares”) pursuant to the following agreements (each as defined below and collectively, the “Warrant Agreements”):

 

1.              Warrant to Purchase Shares of Common Stock of First Michigan Bancorp, Inc. (n/k/a Talmer Bancorp, Inc.) dated April 30, 2010 issued to WLR Recovery Fund IV, L.P. to purchase up to 1,616,669 Common Shares at an exercise price of $6.00 per share (“Warrant One”);

 

2.              Warrant to Purchase Shares of Common Stock of First Michigan Bancorp, Inc. (n/k/a Talmer Bancorp, Inc.) dated April 30, 2010 issued to WLR IV Parallel ESC, L.P. to purchase up to 6,493 Common Shares at an exercise price of $6.00 per share (“Warrant Two”);

 

3.              Warrant to Purchase Shares of Common Stock of Talmer Bancorp, Inc. dated February 21, 2012 issued to WLR Recovery Fund IV, L.P. to purchase up to 108,686 Common Shares at an exercise price of $8.00 per share (“Warrant Three”);

 

4.              Warrant to Purchase Shares of Common Stock of Talmer Bancorp, Inc. dated February 21, 2012 issued to WLR IV Parallel ESC, L.P. to purchase up to 436 Common Shares at an exercise price of $8.00 per share (“Warrant Four”);

 

5.              Warrant to Purchase Shares of Common Stock of Talmer Bancorp, Inc. dated December 27, 2012 issued to WLR Recovery Fund IV, L.P. to purchase up to 793,943 Common Shares at an exercise price of $8.00 per share (“Warrant Five”); and

 

6.              Warrant to Purchase Shares of Common Stock of Talmer Bancorp, Inc. dated December 27, 2012 issued to WLR IV Parallel ESC, L.P. to purchase up to 3,189 Common Shares at an exercise price of $8.00 per share (“Warrant Six”).

 

WHEREAS, the Sellers desires to sell to Purchaser, and Purchaser desires to purchase from Sellers, the Warrants (as defined below) on the terms and conditions set forth in this Agreement (the “Repurchase Transaction”).

 

WHEREAS, after due consideration, the Audit Committee of the Board of Directors of the Purchaser (the “Audit Committee”), which consists solely of independent directors of the Board of Directors of the Purchaser (the “Board”), has reviewed and approved the Repurchase Transaction, and has reported such approval to the Board, which has also approved the Repurchase Transaction with the Board representative designated by the Sellers recusing himself from the process.

 

 

NOW, THEREFORE, in consideration of the premises and the agreements set forth below, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

ARTICLE I

SALE AND PURCHASE

 

1.                                      Purchase. Concurrently with the execution hereof and subject to the terms and conditions of this Agreement, the Sellers hereby sell, assign, transfer, convey and deliver to the Purchaser, and the Purchaser hereby does purchase, acquire and accept from the Sellers, warrants to purchase 2,529,416 Common Shares pursuant to the Warrant Agreements (the “Warrants”). The total purchase price for the Warrants shall be $19,892,462.14 (the “Purchase Price”) and is determined as follows:

 

a.              $8.30 per Warrant share for the Warrants reflected in Warrant One and Warrant Two;

 

b.              $6.97 per Warrant share for the Warrants reflected in Warrant Three and Warrant Four; and

 

c.               $7.10 per Warrant share for the Warrants reflected in Warrant Five and Warrant Six.

 

2.                                      Closing. The closing of the transactions contemplated hereby shall take place concurrently with the execution hereof (the “Closing Date”).  On the Closing Date, the Sellers  shall deliver or cause to be delivered to the Purchaser all of the Sellers’ right, title and interest in and to the Warrants, upon the delivery of which, the Warrant Agreements shall be terminated in their entirety and shall be null and void.  On the Closing Date, the Purchaser shall pay to the Sellers the Purchase Price in cash by wire transfer of immediately available funds in accordance with the wire transfer instructions provided by the Sellers to the Purchaser.

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF THE SELLERS

 

Each of the Sellers hereby represents and warrants to the Purchaser, severally but not jointly, as of the date hereof, and such representations and warranties shall survive the Closing Date, that:

 

1.                                      Existence and Power.

 

a.              Such Seller has been duly formed and is existing as a limited partnership in good standing under the laws of the state of its formation and has the power, authority and capacity to execute and deliver this Agreement, to perform its obligations hereunder, and to consummate the transactions contemplated hereby.

 

 

b.              The execution and delivery of this Agreement by such Seller and the consummation by such Seller of the transactions contemplated hereby (i) do not require the consent, approval, authorization, order, registration or qualification of, or (except for filings pursuant to Section 16 or Regulation 13D under the Securities Exchange Act of 1934 (the “Exchange Act”)) filing by such Seller with, any governmental authority or regulatory authority, including any stock exchange or self-regulatory organization, or court, or body or arbitrator having jurisdiction over such Seller; and (ii) except as would not have a material adverse effect on the ability of such Seller to consummate the transactions contemplated by this Agreement, do not and will not constitute or result in a breach, violation or default, or cause the acceleration or termination of any obligation or right of such Seller or any other party thereto, under (A) any note, bond, mortgage, deed, indenture, lien, instrument, contract, agreement, lease or license, whether written or oral, express or implied, to which such Seller is a party, (B) such Seller’s organizational documents or (C) any statute, law, ordinance, decree, order, injunction, rule, directive, judgment or regulation of any court, administrative or regulatory body, including any stock exchange or self-regulatory organization, governmental authority, arbitrator, mediator or similar body.

 

2.                                      Valid and Enforceable Agreement; Authorization. This Agreement has been duly executed and delivered by such Seller and, assuming the due execution and delivery of this Agreement by all parties thereto, constitutes a legal, valid and binding obligation of such Seller, enforceable against the Seller in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws of general application affecting enforcement of creditors’ rights generally and general principles of equity. Such Seller has duly taken all necessary limited partnership action to authorize the execution, delivery and performance of this Agreement and the transactions contemplated hereby.

 

3.                                      Ownership.

 

a.              WLR Recovery holds good and valid title to Warrant One, Warrant Three and Warrant Five free and clear of any liens, charges, claims, pledges, security interests or other encumbrances, whether arising by agreement, operation of law or otherwise, and there are no restrictions on such Seller’s right to transfer such Warrants to Purchaser and such Seller has not exercised the right to purchase any of the Common Shares pursuant to Warrant One, Warrant Three or Warrant Five.

 

b.              WLR Parallel holds good and valid title to Warrant Two, Warrant Four and Warrant Six free and clear of any liens, charges, claims, pledges, security interests or other encumbrances, whether arising by agreement, operation of law or otherwise, and there are no restrictions on such Seller’s right to transfer such Warrants to Purchaser and such Seller has not exercised the right to purchase any of the Common Shares pursuant to Warrant Two, Warrant Four and Warrant Six.

 

 

4.                                      Access to Information; Sophistication such Seller; Lack of Reliance. Such Seller acknowledges and agrees that, except as set forth in this Agreement, the Purchaser is not making any express or implied warranties in connection with the Repurchase Transaction. Such Seller acknowledges that such Seller (a) has a representative on the board of directors of the Purchaser, (b) is familiar with and has had an opportunity to investigate the financial condition, results of operations, assets, liabilities and potential future operations of the Purchaser, and (c) has been provided with such information, documents and other materials concerning the Purchaser, including its financial condition, results of operations, prospects and business, to enable such Seller to form an independent judgment regarding the advisability of the sale of its applicable Warrants on the terms and conditions contained herein. Such Seller has also had the opportunity to review the periodic and current reports filed by the Purchaser with the U.S. Securities and Exchange Commission.  Such Seller’s knowledge and experience in financial and business matters is such that the Seller is capable of evaluating the merits and risks of the Seller’s sale of its applicable Warrants in the Repurchase Transaction. Such Seller and/or the Seller’s advisor(s) have had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Purchaser concerning the Common Shares, the Purchaser and the Repurchase Transaction and all such questions have been answered to such Seller’s full satisfaction. Such Seller is not relying on the Purchaser with respect to the tax and other economic considerations of the Repurchase Transaction, and such Seller has relied on the advice of, or has consulted with, the Seller’s own advisors.

 

5.                                      Independent Appraisal.  In connection with this Agreement and the transactions contemplated hereby, such Seller has made its own independent appraisal of and investigation into, the value of such Seller’s Warrants, and, in deciding to enter into this Agreement, such Seller has not relied on the Purchaser or any affiliate, representative or agent of the Purchaser with respect to such matters.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

 

The Purchaser hereby represents and warrants to the Sellers as of the date hereof, and such representations and warranties shall survive the Closing Date, that:

 

1.                                      Existence and Power.

 

a.              The Purchaser is a corporation duly organized, validly existing and in good standing under the laws of the State of Michigan and has the power, authority and capacity to execute and deliver this Agreement, to perform the Purchaser’s obligations hereunder, and to consummate the transactions contemplated hereby.

 

b.              The execution and delivery of this Agreement by the Purchaser and the consummation by the Purchaser of the transactions contemplated hereby (i) do not require, except as have been obtained prior to the date hereof, the consent, approval, authorization, order, registration or qualification of, or (except for

 

 

filings pursuant to the Exchange Act or filings required by NASDAQ) filing by the Purchaser with, any governmental or regulatory authority, including any stock exchange or self-regulatory organization, or court, or body or arbitrator having jurisdiction over the Purchaser or any of its subsidiaries; and (ii) except as would not have a material adverse effect on the ability of the Purchaser to consummate the transactions contemplated by this Agreement, do not and will not constitute or result in a breach, violation or default, or cause the acceleration or termination of any obligation or right of the Purchaser, any of the Purchaser’s subsidiaries or any other party thereto, under (A) any note, bond, mortgage, deed, indenture, lien, instrument, contract, agreement, lease or license, whether written or oral, express or implied, to which the Purchaser or any of its subsidiaries is a party, (B) the Purchaser’s or any of its subsidiaries’ organizational documents or (C) any statute, law, ordinance, decree, order, injunction, rule, directive, judgment or regulation of any court, administrative or regulatory body, including any stock exchange or self-regulatory organization, governmental authority, arbitrator, mediator or similar body.

 

2.                                      Valid and Enforceable Agreement; Authorization. This Agreement has been duly executed and delivered by the Purchaser and, assuming the due execution and delivery of this Agreement by the Sellers, constitutes a legal, valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and other similar laws of general application affecting enforcement of creditors’ rights generally and general principles of equity. This Agreement and the Repurchase Transaction contemplated hereby have been approved by the unanimous approval of the Audit Committee, each member of which is disinterested with respect to this Agreement and the transactions contemplated hereby and the Audit Committee and has reported such approval to the Board, which has also approved the Repurchase Transaction with the Board representative designated by the Sellers recusing himself from the process.  The Purchaser has duly taken all necessary corporate action to authorize the execution, delivery and performance of this Agreement and the transactions contemplated hereby.

 

3.                                      Sufficient Funds. The Purchaser has access to legally available funds sufficient to consummate the transactions contemplated by this Agreement.

 

4.                                      No Reliance by the Purchaser. The Purchaser acknowledges and agrees that, except as set forth in this Agreement, the Sellers are not making and the Purchaser is not relying on any express or implied warranties in connection with the Repurchase Transaction.  The Purchaser is not relying on the Sellers with respect to the tax and other economic considerations of the Repurchase Transaction, and the Purchaser has relied on the advice of, or has consulted with, the Purchaser’s own advisors.

 

 

ARTICLE IV

MISCELLANEOUS PROVISIONS

 

1.                                      Notice. Any notice provided for in this Agreement shall be in writing and shall be either personally delivered, or mailed first class mail (postage prepaid) with return receipt requested or sent by reputable overnight courier service (charges prepaid) to the address and to the attention of the person set forth in this Agreement. Notices will be deemed to have been given hereunder when delivered personally, three business days after deposit in the U.S. mail postage prepaid with return receipt requested and two business days after deposit postage prepaid with a reputable overnight courier service for delivery on the next business day.

 

If to the Purchaser, to:

 

Talmer Bancorp, Inc.

2301 W. Big Beaver Road

Troy, MI 48084

Attn:  Dennis Klaeser

 

with a copy to:

 

Nelson Mullins Riley & Scarborough LLP

201 17th Street NW

Suite 1700

Atlanta, GA 30363

Attn:  Brennan Ryan

 

If to the Sellers, to:

 

WLR Recovery Fund IV, L.P.
 WLR IV Parallel ESC, L.P.
 c/o WL Ross & Co. LLC
 1166 Avenue of the Americas                              
 New York, NY 10036
 Attn:  Michael Gibbons, Chief Financial Officer

 

with a copy to:

 

Skadden, Arps, Slate, Meagher & Flom LLP

Four Times Square

New York, New York 10036

Attn:  David Ingles

 

2.                                      Entire Agreement. This Agreement embodies the entire agreement and understanding of the parties hereto with respect to the subject matter hereof and supersedes all prior written and contemporaneous oral agreements, representations, warranties, contracts, correspondence, conversations, memoranda and understandings between or among the parties or

 

 

any of their agents, representatives or affiliates relative to such subject matter, including, without limitation, any term sheets, emails or draft documents.

 

3.                                      Assignment; Binding Agreement. This Agreement and the various rights and obligations arising hereunder shall inure to the benefit of and be binding upon the parties hereto and their successors and assigns.

 

4.                                      Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but both of which taken together shall constitute one and the same instrument. Any counterpart or other signature hereupon delivered by facsimile shall be deemed for all purposes as constituting good and valid execution and delivery of this Agreement by such party.

 

5.                                      Governing Law. This Agreement shall in all respects be construed in accordance with and governed by the laws of the State of New York, without giving effect to principles of conflicts of laws.

 

6.                                      No Third Party Beneficiaries or Other Rights. Nothing herein shall grant to or create in any person not a party hereto any right to any benefits hereunder, and no such party shall be entitled to sue any party to this Agreement with respect thereto.

 

7.                                      Waiver; Consent. This Agreement and its terms may not be changed, amended, waived, terminated, augmented, rescinded or discharged (other than in accordance with its terms), in whole or in part, except by a writing executed by the parties hereto.

 

8.                                      Further Assurances. Each party hereto hereby agrees to execute and deliver, or cause to be executed and delivered, such other documents, instruments and agreements, and take such other actions consistent with the terms of this Agreement as may be reasonably necessary in order to accomplish the transactions contemplated by this Agreement.

 

9.                                      Costs and Expenses. Each party hereto shall each pay its own respective costs and expenses, including, without limitation, any commission or finder’s fee to any broker or finder, incurred in connection with the negotiation, preparation, execution and performance of this Agreement.

 

10.                               Severability. If any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby.

 

11.                               Time of Essence. Time is of the essence in the performance of each and every term of this Agreement.

 

12.                               Captions. The article and section captions herein are for convenience of reference only, do not constitute part of this Agreement and will not be deemed to limit or otherwise affect any of the provisions hereof.

 

 

13.                               Public Announcements. Subject to each party’s disclosure obligations imposed by law or obligations pursuant to any listing agreement with any securities exchange or the requirements of any self-regulatory organization, each of the parties hereto will cooperate with each other party in the development and dissemination of all public news releases and other public information containing disclosures with respect to this Agreement and any of the transactions contemplated by this Agreement, and no party hereto will make any such news release or public disclosure without first consulting with each other party hereto and receiving such party’s consent (which shall not be unreasonably withheld, delayed or conditioned), and each party shall coordinate with each other party with respect to any such news release or public disclosure.

 

14.                               Specific Performance. The parties acknowledge and agree that a party could not be made whole by monetary damages in the event that any of the provisions of this Agreement are not performed by each other party in accordance with their specific terms or are otherwise breached. Accordingly, the parties agree that, in any such event, the parties shall be entitled to seek an injunction or injunctions to specifically enforce the terms and provisions hereof in an action instituted in any court of the State of Michigan having subject matter jurisdiction in respect thereof, and the parties further hereby agree to waive any requirement for the securing or posting of a bond in connection with the obtaining of such injunctive or other equitable relief.

 

[Signature Page Follows]

 

 

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed as of the date first above written.

 

	
PURCHASER:
    	
 
    
	
 
    	
 
    
	
TALMER BANCORP, INC.
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   David T. Provost
    	
 
    
	
Name:
    	
David   T. Provost
    	
 
    
	
Title:
    	
Chief   Executive Officer
    	
 
    
	
 
    	
 
    
	
SELLERS:
    	
 
    
	
 
    	
 
    
	
WLR   RECOVERY FUND IV, L.P.
    	
 
    
	
 
    	
 
    
	
By:   WLR Recovery Associates IV LLC
    	
 
    
	
Its:  General Partner
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Michael J. Gibbons
    	
 
    
	
Name:
    	
Michael   J. Gibbons
    	
 
    
	
Title:
    	
Principal   Member
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
WLR   IV PARALLEL ESC, L.P.
    	
 
    
	
 
    	
 
    
	
By:   Invesco WLR IV Associates LLC
    	
 
    
	
Its:  General Partner
    	
 
    
	
 
    	
 
    
	
By:   Invesco Private Capital, Inc.
    	
 
    
	
Its:  Managing Member
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Michael J. Gibbons
    	
 
    
	
Name:
    	
Michael   J. Gibbons
    	
 
    
	
Title:
    	
Chief   Financial Officer

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