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Document

Exhibit 10.30

EXECUTIVE CHAIRMAN AGREEMENT
THIS EXECUTIVE CHAIRMAN AGREEMENT (the “Agreement”), dated as of the January 17, 2022, is by and between Sema4 Holdings Corp. (the “Corporation”) and Jason Ryan (the “Executive”).
W I T N E S S E T H :
WHEREAS, the Executive is a member of the board of directors of the Corporation (the “Board”);
WHEREAS, the Corporation wishes to set forth the terms and conditions of the Executive’s employment as Executive Chairman of the Board, on terms and conditions mutually agreeable and beneficial to the Corporation and the Executive; and
WHEREAS, the Executive is willing to render services to the Corporation pursuant to the terms and conditions hereof;
NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements of the parties herein contained, the parties, intending to be legally bound, hereby agree as follows:
1.POSITION AND DUTIES.
A.The Corporation shall employ the Executive in the position of Executive Chairman of the Board, and the Executive hereby accepts such employment, with such appointment to take effect as of January 18, 2022 (the “Effective Date”).  The Executive shall report directly to the board of directors of the Corporation (the “Board”).  The Executive shall perform the duties assigned to him by the Board with fidelity and to the best of his ability, including (and without limiting the Executive’s duties as a member of the Board), planning and facilitating the operations, deliberations, and meetings of the Board and advancing the Corporation’s strategic priorities regarding the closing and integration of the proposed acquisition of GeneDx, Inc., the Corporation’s leadership transition to a Co-CEO structure, and operational efficiencies and planning.  The Executive shall deal at all times in good faith with the Corporation.
B.The Executive’s services shall be performed remotely, subject to travel from time to time as reasonably required in connection with the Executive's duties.
2.TERM.
This Agreement shall commence on the Effective Date, shall continue thereafter until December 31, 2022 (the “End Date”) unless otherwise mutually agreed by the Board and the Executive or earlier terminated in accordance with the terms hereof (such period from the date hereof until the termination date hereof, the “Term”).  It is anticipated that the Executive will be employed 80% of his business time by the Corporation during the Term.
3.COMPENSATION.
In consideration for the Executive’s services hereunder, the Executive shall receive the following compensation:
A.Base Salary.  Beginning on the Effective Date and for the balance of the Term, the Corporation shall pay the Executive a base salary at a rate equal to $540,000 per annum (the 

“Base Salary”).  The Executive’s Base Salary shall be subject to customary federal, state and local withholdings for income taxes, F.I.C.A. and similar charges.  Throughout the Term, the Base Salary shall be payable in bi-weekly installments in arrears or in such other manner as the Corporation adopts as its payroll process for Corporation employees generally.  The Executive shall not participate in the Company’s annual cash bonus plan during the Term.
B.Benefits.  During the Term, the Executive shall receive the package of employee benefits that the Corporation elects to make available to its most senior executive officers.  In addition, the Executive shall receive four (4) weeks of vacation time per annum.  The benefit package and the Executive’s use of his vacation time shall be subject to the Corporation’s policies.
C.Business Expenses.  Subject to Section 3.D, the Executive shall be reimbursed for all reasonable and necessary business expenses incurred by him during the Term in connection with his employment.
D.Conditions to Reimbursement of Expenses.  Reimbursement shall be based upon adherence to and submission by the Executive of expense statements and other documentation thereof required in accordance with the Corporation’s expense reimbursement policies.
E.Life Insurance.  Executive consents to and agrees to cooperate with the Corporation’s obtaining of insurance on the Executive’s life under a policy or policies owned by and for the benefit of the Corporation.
4.EQUITY-BASED COMPENSATION AWARD; LOCK-UP PERIOD.
A.On the Effective Date and subject to the approval of the Board, the Corporation shall grant the Executive under the Sema4 Holdings Corp. 2021 Equity Incentive Plan (the “Plan”) an option (the “Stock Option”) to purchase 429,730 shares of the Corporation’s Class A common stock, 247,525 restricted stock units subject solely to service-based vesting conditions (the “Service-Based RSUs”), and 126,980 restricted stock units subject to both service- and performance-based vesting conditions (the “Performance-Based RSUs” and, together with the Stock Options and the Service-Based RSUs, the “Equity Awards”).  The terms of the Equity Awards shall be governed in all respects by the terms of the notice of grant and award agreement to be entered into in connection with such grant and the terms and conditions of the Incentive Plan; provided that:
(1)    the per share exercise price of the Stock Options shall be equal to the closing price of one share of the Corporation’s Class A common stock on the date of grant;
(2)    the Equity Awards shall vest and, as applicable, become exercisable on the earlier of (A) the End Date and (B) the consummation of a Corporate Transaction (within the meaning of the Incentive Plan), subject to (i) the Executive’s continued service with the Corporation under this Agreement through such earlier date, except as otherwise set forth in Section 5, and (ii) solely in the case the case of the Performance-Based RSUs, the Board’s determination of the achievement of performance goals for the Corporation and/or the Executive for calendar year 2022, which performance goals shall be established by the Board in consultation with the Executive; provided that in the event the consummation of a Corporate Transaction, the performance goals shall be deemed achieved in full; and
(4)    the Executive’s continued service as a member of the Board following the expiration of the Term shall be deemed to constitute continued “Service” for purposes of the Stock Options, such that the post-termination exercise period for the Stock Options shall not commence solely as a result of the expiration of the Term and shall only commence at such time 
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as the Executive ceases to be a member of the Board; provided that in any event the post-termination exercise period for the Stock Options shall not expire prior to December 31, 2024.
5.TERMINATION AND SEVERANCE.
A.As used in this Section 5:
“Cause” shall mean: (1) any repeated failure (except as result of sickness, illness or injury) or refusal by the Executive to perform any of his material duties pursuant to this Agreement after written notice and a reasonable opportunity to cure such material breach; (2) material breach by the Executive of the Proprietary Rights Agreement executed by the Executive with the Corporation after written notice and a reasonable opportunity to cure; (3) material breach by the Executive of any written corporate policy of the Corporation after written notice and a reasonable opportunity to cure, provided such breach is curable; (4) breach by the Executive of his fiduciary duty to the Corporation; (5) gross negligence or gross misconduct of the Executive in connection with the Corporation’s business or the performance of Executive’s duties; provided that in the case of gross negligence, such gross negligence results in harm to the Corporation; (6) the Executive’s conviction of or plea of nolo contendere to any crime that would impair the reputation of the Corporation, any crime involving theft, embezzlement or other misappropriation of money or other property, or any crime which constitutes a felony in the jurisdiction involved; or (7) the Executive’s habitual absence or abuse of alcohol or controlled or illegal substances.  No termination for Cause shall be effective unless the Board makes a Cause determination after written notice to the Executive and the Executive has been provided the opportunity (with counsel of Executive’s choice) to be heard at a meeting of the Board prior to its determination.
“Disability” shall mean the Executive’s inability to perform the essential duties of Executive’s employment hereunder with reasonable accommodation by reason of any medically determined physical or mental impairment that has lasted a period of not less than one-hundred-eighty (180) days (whether or not consecutive) in any consecutive three-hundred-sixty-five (365) day period as determined by a physician that is mutually acceptable to the Corporation and Executive.  If Corporation and Executive cannot agree on a physician, each party shall select a physician and the two physicians shall select a third who shall be the approved physician for this purpose.
“Good Reason” shall mean: (1) any material breach by the Corporation of its obligations to the Executive pursuant to this Agreement (including, without limitation, a failure to pay Base Salary in accordance with Section 3.A); (2) the Executive is no longer the Executive Chairman of the Board or is required to report directly to anyone other than the Board, and (3) a material reduction in Executive’s authority, duties or responsibility; provided, however, that none of these events shall constitute Good Reason unless (i) the Executive notifies the Corporation in writing of the event(s) constituting Good Reason within sixty (60) days after the Executive first becomes aware of the occurrence of such event(s), (ii) the Corporation has failed to cure such event(s) within thirty (30) days after receipt of such notice, and (iii) the Executive resigns from all positions then held by the Executive no later than thirty (30) days after the expiration of such cure period.
B.Termination. This Agreement, the Term and the Executive’s employment hereunder shall terminate upon any of the following:
(i)in the event of any determination by the Board that there is Cause for such termination, upon written notice of termination from the Board to the Executive (following the expiration of the applicable cure period, if any);
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(ii)immediately upon the death or Disability of the Executive;
(iii)in the event of any determination by the Executive that there is Good Reason for such termination, upon written notice of termination from the Executive to the Board (following the expiration of the cure period);
(iv)at the election of the Board to terminate this Agreement without Cause, upon sixty (60) days’ written notice to the Executive; or
(v)at the election of the Executive to terminate this Agreement without Good Reason, upon sixty (60) days’ written notice to the Board.
C.General.  Upon the termination of the Executive’s employment for any reason, the Executive (or his estate, as the case may be) shall be entitled to receive (i) any Base Salary hereunder accrued prior to the date of such termination, and (ii) any amount payable to the Executive under the policies and procedures of the Corporation with respect to payments to executive officers for accrued vacation and unreimbursed business expenses for which proper documentation is provided (collectively, the “Accrued Compensation”).
D.Severance Benefits Upon Termination by the Corporation Without Cause or by the Executive for Good Reason. Upon the termination of the Executive’s employment by the Board without Cause or by the Executive for Good Reason, the Executive will be entitled to receive the Accrued Compensation and, subject to the requirements of Section 5.E, will be entitled to receive the following payments and benefits, in each case, less required deductions and withholdings: 
(i)Cash Severance. The Corporation shall pay the Executive, as severance, an aggregate amount equal to the remainder of the Executive’s Base Salary from the date of such termination through the End Date, payable in a lump sum on the Corporation’s first regular payroll date following the date that the Release (as defined below) becomes effective and irrevocable, subject to standard payroll deductions and withholdings.
(ii)Benefits Continuation. Provided that the Executive is then eligible for and timely elects continued coverage under COBRA, the Corporation shall directly pay, or reimburse the Executive for, the monthly COBRA premiums to continue the Executive’s coverage (including coverage for eligible dependents, if applicable) through the period starting on the Executive’s termination date and ending on the earliest to occur of: (a) the End Date; (b) the date Executive becomes eligible for group health insurance coverage through a new employer; and (c) the date Executive ceases to be eligible for COBRA continuation coverage for any reason, including plan termination. In the event Executive becomes covered under another employer's group health plan or otherwise ceases to be eligible for COBRA during this time period, the Executive must immediately notify the Corporation of such event. Notwithstanding the foregoing, if the Corporation determines, in its sole discretion, that it cannot pay the COBRA premiums without a substantial risk of violating applicable law, the Corporation instead shall pay to the Executive, on the first day of each calendar month, a fully taxable cash payment equal to the applicable COBRA premiums for that month, subject to applicable tax withholdings, for the remainder of the COBRA premium period.  The Executive may, but is not obligated to, use such payments toward the cost of COBRA premiums.  For the avoidance of doubt, the Executive’s eligibility for continued coverage under COBRA shall be determined in accordance with applicable law, and this Section 5.D(iii) shall solely govern the Corporation’s obligations to directly pay, or reimburse the Executive for, the monthly COBRA premiums to continue the Executive’s coverage (including coverage for eligible dependents, if applicable). 
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(iii)Equity Award Acceleration.  The vesting of all unvested Equity Awards outstanding and held by the Executive as of the date of such termination shall be accelerated such that 100% of the shares underlying such awards shall be deemed immediately vested and, as applicable, exercisable, with the performance goals applicable to the Performance-Based RSUs deemed achieved in full; provided that, for the avoidance of doubt, this Section 5.D(iii) shall apply only to the Equity Awards, and shall not apply to any other equity-based incentive compensation awards that have been or may be granted to the Executive in connection with his service on the Board.
E.Conditions to Receipt of Severance Benefits.  As a condition to receiving the payments and benefits set forth in Section 5.D, (i) the Executive must execute and deliver to the Corporation a release of claims in a form reasonably acceptable to the Corporation (the “Release”) and the Release must have become effective and the revocation period provided therein must have expired without the Executive having revoked the Release within the 60-day period following the date of termination, and (ii) the Executive must not have revoked or breached the provisions of such Release or breached Section 9 of this Agreement, or the Proprietary Rights Agreement.  The Corporation shall provide the Release to the Executive within 21 days following the date of termination.  In the event the Corporation does not provide the Release to the Executive within 21 days following the date of termination, the Release shall no longer be required and the Executive shall nonetheless be entitled to the payments and benefits set forth in Section 5.D.  However, in the event that the Executive is provided the Release within the 21-day period following the date of termination, but the Executive does not execute and deliver the Release, the Release does not become effective and irrevocable within such period or the Executive revokes or breaches the provisions of the Release or breaches Section 9 of this Agreement or the provisions of the Proprietary Rights Agreement, the Executive (A) will be deemed to have voluntarily resigned the Executive’s employment hereunder without Good Reason, (B) will not be entitled to the payments, benefits or accelerated vesting described in Section 5.D and (C) will be required to reimburse the Corporation, in cash within five business days after written demand is made by the Corporation therefore, for an amount equal to the value of any payments or benefits the Executive received pursuant to Section 5.D.
6.PROPRIETARY RIGHTS AGREEMENT.
The Executive agrees to execute and abide by the Proprietary Information and Inventions Agreement (the “Proprietary Rights Agreement”) which the Corporation requires each employee to execute, which is attached here to as Exhibit A and which is incorporated and made part of this Agreement. 
7.AGREEMENT ASSIGNMENT.
It is agreed that this is a personal contract between the parties and that the rights and interests of the Executive hereunder may not be sold, transferred, assigned, pledged or hypothecated otherwise than by will or the laws of descent or distribution.  The Corporation may assign this Agreement to a successor to all or substantially all of the business of the Corporation, and upon such assignment and the assumption of the obligations of the Corporation hereunder by such successor the Corporation shall be released from any further liability pursuant hereto.
8.EXCLUSIVE EMPLOYMENT.
During his employment with the Corporation, the Executive will not do anything to compete with the present or contemplated business of the Corporation, suffer to exist any conflict of interest in respect of his relationship with the Corporation or plan or organize any competitive business activity (with the understanding that the ownership by the Executive of less than one percent (1%) of the outstanding shares of common stock of a publicly traded corporation shall 
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not be deemed to violate the requirements of this sentence).  The Executive is not a party to and will not enter into any agreement that conflicts with his duties or obligations to the Corporation; all corporate opportunities which are consistent with the business and purpose of the Corporation are to be the property of the Corporation and cannot be used or disclosed by the Executive for any purpose other than performing his duties for the Corporation, and the Executive shall present to the Corporation any such opportunities of which he becomes aware; provided, however, that the provisions of this sentence are subject to the provisions of Article Eighth of the Amended and Restated Certificate of Incorporation of the Corporation.  The Executive shall at all times strictly comply with the Corporation’s conflicts of interest policy and any other policies adopted by the Board.
9.RESTRICTIVE COVENANTS.
A.In consideration of his employment and the provisions of this Agreement, the Executive agrees that during his employment with the Corporation, and for a period of twelve (12) months following the termination of his employment with the Corporation for any reason, he will not solicit on behalf of himself or any organization other than the Corporation any person or entity who is then or within the last twelve (12) months was a customer or vendor of the Corporation or render services directly or indirectly anywhere within the United States of America for himself or on behalf of any third-party to any organization that is a competitor of the Corporation as of the date of such termination.
B.The Executive agrees that for twelve (12) months following the termination of his employment for any reason, he will not hire, solicit, recruit, encourage to leave or entice away, or endeavor to hire, solicit, recruit, encourage to leave or entice away from the Corporation any employee or exclusive consultant of the Corporation.  The Corporation agrees that this Section 9.B shall not be breached if following termination of his employment by Corporation, the Executive is associated with an organization that places general solicitations for employment and an employee or exclusive consultant of the Corporation is hired by such organization as a result of such general solicitation and without any specific solicitation of such employee or exclusive consultant.
C.The Executive agrees that the restrictions and agreements contained in this Section 9 are reasonable and necessary to protect the legitimate interests of the Corporation and that any violation of this Section 9 will cause substantial and irreparable harm to the Corporation that would not be quantifiable and for which no adequate remedy would exist at law.  Accordingly, the Executive authorizes the issuance of injunctive relief against him, without the requirement of posting bond, for any violation of this Section 9.  In addition, the parties agree that the prevailing party in any legal action to enforce this Agreement shall be entitled to recover its reasonable attorneys’ fees incurred in enforcing this Agreement from the non-prevailing party.
D.The Executive agrees that the restrictions and agreements contained in this Section 9 shall not in any way limit the Executive’s obligations to the Corporation as a member of the Board.
10.409A COMPLIANCE.
Notwithstanding any other provision of this Agreement, the Corporation and the Executive intend that any payments, benefits or other provisions applicable to this Agreement comply with the payout and other limitations and restrictions imposed under Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”, and the Internal Revenue Code of 1986, as amended, the “Code”), as clarified or modified by guidance from the U.S. Department of Treasury or the Internal Revenue Service, in each case if and to the extent Section 409A is otherwise applicable to this Agreement and such compliance is necessary to avoid the penalties 
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otherwise imposed under Section 409A.  In this connection, the Corporation and the Executive agree that the payments, benefits and other provisions applicable to this Agreement, and the terms of any deferral and other rights regarding this Agreement,  shall be deemed modified if and to the extent necessary to comply with the payout and other limitations and restrictions imposed under Section 409A, as clarified or supplemented by guidance from the U.S. Department of Treasury or the Internal Revenue Service, in each case if and to the extent Section 409A is otherwise applicable to this Agreement and such compliance is necessary to avoid the penalties otherwise imposed under Section 409A.  Any payments and benefits under this Agreement that qualify for the “short-term deferral” exemption or another exemption under Section 409A shall be paid under the applicable exemption.  For purposes of the Section 409A, each payment of compensation under this Agreement shall be treated as a separate payment of compensation.  Notwithstanding anything in this Agreement to the contrary, if any amounts or benefits payable under this Agreement in the event of Executive’s termination of employment constitute “nonqualified deferred compensation” within the meaning of Code Section 409A, payment of such amounts and benefits shall commence when the Executive incurs a “separation from service” within the meaning of Treasury Regulation 1.409A-1(h) (“Separation from Service”).  Such payments or benefits shall be provided in accordance with the timing provisions of this Agreement by substituting the Agreement’s references to “termination of employment” or “termination” with Separation from Service.  In addition, if at the time of Executive’s Separation from Service the Executive is a “specified employee” within the meaning of Code Section 409A(a)(2)(B)(i), any amount or benefits that the constitutes “nonqualified deferred compensation” within the meaning of Code Section 409A that becomes payable to Executive on account of the Executive’s Separation from Service will not be paid until after the earlier of (i) first business day of the seventh month following Executive’s Separation from Service, or (ii) the date of the Executive’s death (the “409A Suspension Period”).  Within 14 calendar days after the end of the 409A Suspension Period, the Executive shall be paid a cash lump sum payment equal to any payments and benefits that the Corporation would otherwise have been required to provide under this Agreement but for the imposition of the 409A Suspension Period delayed because of the preceding sentence.  Thereafter, the Executive shall receive any remaining payments and benefits due under this Agreement in accordance with the terms of this Section (as if there had not been any 409A Suspension Period beforehand).  To the extent not otherwise specified in this Agreement, all (A) reimbursements and (B) in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of Section 409A, including, where applicable, the requirement that (1) any reimbursement is for expenses incurred during the Executive’s lifetime (or during a shorter period of time specified in this Agreement); (2) the amount of expenses eligible for reimbursement, or in kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in kind benefits to be provided, in any other calendar year; (3) the reimbursement of an eligible expense will be made no later than the last day of the calendar year following the year in which the expense is incurred; and (4) the right to reimbursement or in kind benefits is not subject to liquidation or exchange for another benefit
11.SECTION 280G. 
In the event that the severance and other benefits provided for in this Agreement or otherwise payable to the Executive (i) constitute “parachute payments” within the meaning of Section 280G of the Code and (ii) but for this Section 11, would be subject to the excise tax imposed by Section 4999 of the Code, then, the Executive’s severance and other benefits under this Agreement shall be payable either (i) in full, or (ii) as to such lesser amount which would result in no portion of such severance and other benefits being subject to the excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999 of the Code, results in the receipt by the Executive on an after-tax basis of the greatest amount of severance benefits under this Agreement, notwithstanding  that all or some portion of such 
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severance benefits may be taxable under Section 4999 of the Code.  Any reduction shall be made in the following order: (i) reduction of cash payments, (ii) cancellation of accelerated vesting of equity awards, and (iii) reduction of other benefits payable to the Executive.  Unless the Corporation and the Executive otherwise agree in writing, any determination required under this Section 11 shall be made in writing by the Corporation’s independent public accountants (the “Accountants”), whose determination shall be conclusive and binding upon the Executive and the Corporation for all purposes.  For purposes of making the calculations required by this Section 11, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code.  The Corporation and the Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section 11.  The Corporation shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 11.
12.INDEMNIFICATION
The Corporation shall indemnify the Executive, to the maximum extent permitted by applicable law, and in the same or better manner and to the same or better extent with respect to each aspect of the indemnification as provided to any other executive of the Corporation (including without limitation any Directors and Officers insurance coverage), against all costs, charges and expenses incurred or sustained by the Executive in connection with any action, suit or proceeding to which the Executive may be made a party, brought by any shareholder of the Corporation directly or derivatively or by any third party by reason of any act or omission of the Executive as an officer, director or employee of the Corporation or of any subsidiary or affiliate of the Corporation.
13.NO DUTY TO MITIGATE
In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any provisions of this Agreement.
14.GENERAL PROVISIONS.
A.This Agreement shall be construed in accordance with and governed by the laws of the State of New York, without reference to the principles thereof respecting conflicts of laws.  Each party to this Agreement, by his or its execution hereof, hereby irrevocably submits to the exclusive jurisdiction of the federal and state courts sitting in the County of New York, State of New York for the purpose of any and all actions, suits or proceedings arising in whole or in part out of, related to, based upon or in connection with this Agreement.
B.Any notices provided hereunder must be in writing and shall be deemed effective upon the earlier of personal delivery or the third day after mailing by U.S. registered or certified mail, return receipt requested and postage prepaid, to the Corporation at its primary office location and to Executive at Executive’s address as listed on the Corporation payroll.
C.This Agreement shall inure to the benefit of and be binding upon the Corporation, its permitted successors and assigns and the Executive, his heirs, executors, administrators and legal representatives.
D.This Agreement and the Proprietary Rights Agreement set forth the entire understanding of the parties hereto with respect to the employment of the Executive by the Corporation.  Any and all other previous agreements and understandings between or among the 
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parties regarding the subject matter hereof, whether written or oral, are hereby released, merged herein and superseded by this Agreement.
E.No statement, representation, warranty, covenant or agreement not expressly set forth in this Agreement shall affect or be used to interpret, change or restrict the express terms and provisions of this Agreement.
F.This Agreement may not be amended or modified without a writing signed by each of the Executive and the Corporation.  The terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only by written document executed by the party entitled to the benefits of such terms or provisions.  No such waiver or consent shall be deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this Agreement, whether or not similar.  Each such waiver or consent shall be effective only in the specific instance and for the purpose for which it was given, and shall not constitute a continuing waiver or consent.
G.This Agreement may be executed in two counterparts, each of which shall be an original, and which together shall constitute one and the same instrument.  A facsimile transmission by a party of a signed signature page hereof shall have the same effect as delivery by such party of a manually executed original counterpart hereof.
H.If for any reason any provision of this Agreement is held invalid, such invalidity shall not affect any other provision of this Agreement not held invalid, and each such other provision shall, to the full extent consistent with law, continue in full force and effect.  If any provision of this Agreement shall be held invalid in part, such invalidity shall not affect the rest of such provision not held invalid, and the rest of such provision, and the rest of this Agreement, shall, to the full extent consistent with law, continue in full force and effect.
[Signature Page Follows]

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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date first above written.
THE CORPORATION:
Sema4 Holdings Corp.
By: /s/ Joshua Ruch    
Name:    Joshua Ruch
Title:    Chairman of the Compensation Committee of the Corporation.
THE EXECUTIVE:
/s/ Jason Ryan    
Jason Ryan

Exhibit A
Proprietary Information and Inventions Agreement

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SEMA4 PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

In consideration of the compensation now and hereafter paid for my services by Sema4 (the “Company” or “Sema4”), I hereby agree to the terms of this Proprietary Information and Inventions Agreement (the “Agreement”) as follows:

1.NONDISCLOSURE.

1.1Recognition of Company’s Rights; Nondisclosure. At all times during my performance of duties for the benefit of the Company, whether as an employee of Company or through another arrangement with the Company (collectively referred to herein as “Employment”), and thereafter, I will hold in strictest confidence and will not disclose, use, lecture upon or publish any of the Company's Proprietary Information (defined in section 1.2 below), Third Party Information (defined in section 1.3 below), or Personal Information (defined in section 1.4 below) except as such disclosure, use or publication may be required in connection with my Employment, or unless an officer of the Company (other than me, if I am an officer of the Company) expressly authorizes such in writing. I will obtain Company's written approval before publishing or submitting for publication any material (written, verbal, or otherwise) that relates to my work at the Company and/or incorporates any Proprietary Information, Third Party, or Personal Information. I hereby assign to the Company any rights I may have or acquire in such Proprietary Information and recognize that all Proprietary Information shall be the sole property of the Company and its assigns. I have been informed and acknowledge that the unauthorized taking of the Company’s Proprietary Information, Third Party, or Personal Information may subject me to civil and/or criminal penalties. I understand that I may disclose Proprietary Information, Third Party, or Personal Information to the extent required by law, court order, or other legal authority with jurisdiction, provided that I promptly inform the Company in writing of such requirement (to the extent legally permissible) and comply, at the Company’s written request and expense, with the Company’s legal efforts to prevent or limit the scope of such required disclosure. In the event such legally compelled disclosure is made as permitted hereunder, I shall continue in all other ways to maintain the confidentiality obligations and use restrictions herein with respect to such information.

1.2Proprietary Information. The term “Proprietary Information” shall mean any and all confidential and/or proprietary knowledge, materials, data or information of the Company. By way of illustration but not limitation, “Proprietary Information” includes: (a) trade secrets, inventions, mask works, ideas, processes, formulas, algorithms, source and object codes, data, programs, other works of authorship, brand names, logos, know-how, improvements, discoveries, developments, designs, techniques and materials (hereinafter collectively referred to as “Works”); and (b) information regarding plans for research, development, new products, marketing and selling,

business plans, budgets and unpublished financial statements, licenses, prices and costs, suppliers and customers; and (c) sensitive personnel information including the skills and compensation of other employees of the Company. Notwithstanding the foregoing, it is understood that, at all such times, I am free to use information which is generally known in the trade or industry, which is not gained as result of a breach of this Agreement, and my own skill, knowledge, know-how and experience.

1.3Third Party Information. I understand, in addition, that the Company has received, and in the future will receive from third parties (including the U.S. government), confidential, proprietary, or otherwise private information (“Third Party Information”), which information is subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. During the term of my Employment and thereafter, I will hold Third Party Information in the strictest confidence and will not disclose to anyone (other than Company personnel who need to know such information in connection with their work for the Company) or use Third Party Information, except in connection with my work for the Company, or unless expressly authorized in writing by an officer of the Company (other than me, if I am an officer of the Company). I understand that any unauthorized use of information received from the U.S. government may result in severe civil and/or criminal penalties including but not limited to loss of security clearance, fines and/or imprisonment.

1.4Personal Information. I understand that the Company has received and in the future will receive personally identifiable information from employees, patients, consultants or third parties including names, addresses, telephone or facsimile numbers, Social Security Numbers, background information, credit card or banking information, health information, or other information entrusted to the Company (“Personal Information”). During the term of my Employment and thereafter, I will hold Personal Information in the strictest confidence and will not disclose to anyone (other than Company personnel who need to know such information in connection with their work for the Company) or use Personal Information, except in connection with my work for the Company, or unless expressly authorized in writing by an officer of the Company (other than me, if I am an officer of the Company). I understand that there are laws in the United States and other countries that protect Personal Information, and that I must not use Personal Information other than for the purpose for which it was originally disclosed to me or make any disclosures of Personal Information to any third party or

			
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from one country to another without prior managerial approval.

1.1No Improper Use of Information of Prior Employers and Others. During my Employment by the Company, I will not improperly use or disclose any confidential information or trade secrets, if any, of any former employer or any other person to whom I have an obligation of confidentiality, and I will not bring onto the premises of the Company any unpublished documents or any property belonging to any former employer or any other person to whom I have an obligation of confidentiality unless such use has been consented to in writing by that former employer or person. I will use in the performance of my duties only information which is generally known and used by persons with training and experience comparable to my own, which is common knowledge in the industry or otherwise legally in the public domain, or which is otherwise provided or developed by the Company.

1.2Safeguarding Proprietary Information, Third Party Information, or Personal Information. I understand that avoiding loss or theft of Proprietary Information, Third Party Information and/or Personal Information is an important part of my duties. I will not allow any other person to use my office access privileges or computer passwords without prior managerial approval. I will follow all lawful instructions from the Company and from third parties with whom the Company does business (including the U.S. government) regarding the avoidance of loss or theft of Proprietary Information, Third Party Information, or Personal Information, including but not limited to placing appropriate legends upon documents signifying their sensitive nature. I will only use secure networks established by or approved by the Company when using Proprietary Information, Third Party Information, or Personal Information. I will immediately report to the Company any loss or suspected loss of Proprietary Information, Third Party Information, or Personal Information, as well as any suspicious activity such as external hacking attempts, or unusual internal activity. I agree that I will suggest to the Company any actionable ideas I have for the improvement of the Company’s protection of Proprietary Information, Third Party Information, or Personal Information.

1.3Disposal of Proprietary Information, Third Party Information, or Personal Information. Given the sensitivity of Proprietary Information, Third Party Information, and Personal Information, I understand that I may only dispose of such information by secure methods approved by the Company.

1.4Responsibility to Seek Prior Approval. I understand that the sensitivity of Proprietary Information, Third Party Information, or Personal Information requires

me to exercise caution when handling such information. If I ever have any reasonable doubt or hesitation about how to handle Proprietary Information, Third Party Information, or Personal Information, I understand that I must raise my concerns with the Company’s management before acting.

2.ASSIGNMENT OF WORKS.

2.1Proprietary     Rights.    The term “Proprietary Rights” shall mean all trade secret, patent, copyright, mask work, trademark and any other intellectual or industrial property rights or Moral Rights, in each case, in or to any Work throughout the world. The term “Moral Rights” refers to any rights to claim authorship of an Work or to object to or prevent the modification of any Work, or to withdraw from circulation or control the publication or distribution of any Work, and any similar right, existing under judicial or statutory law of any country in the world, or under any treaty, regardless of whether or not such right is denominated or generally referred to as a “moral right.”

2.2Prior or Separate Works. I understand that, except as set forth herein and except to the extent any such Work has been assigned, leased, or transferred to the Company, this Agreement excludes Works that I have, alone or jointly with others, conceived, created, developed or reduced to practice or caused to be conceived, created, developed or reduced to practice either prior to the commencement of my Employment with the Company or in the performance of any employment or engagement by Icahn School of Medicine at Mount Sinai (“ISMMS”) or another entity that is permitted by the Company in accordance with this Agreement, and that are my property or the property of third parties (including ISMMS), as such conception, creation, development, reduction to practice and/or ownership can be demonstrated by competent electronic or written records (each such Work referred to herein as “Prior or Separate Work”). However, if, in the course of my Employment with the Company, I incorporate a Prior or Separate Work in which I have an ownership interest (but not Prior or Separate Works that are the property of a third party) into a Company product, service, process or machine, to the maximum extent I have the right to provide such a license, the Company is hereby granted and shall have a nonexclusive, royalty-free, irrevocable, perpetual, worldwide license (with rights to sublicense through multiple tiers of sublicensees) to copy, distribute, derive, modify, display, perform, make, have made, use, sell, offer to sell and otherwise exploit such Prior or Separate Work. Notwithstanding the foregoing, I agree that I will not incorporate, or permit to be incorporated, Prior or Separate Works in any Company product, service, process or machine without the Company's prior written consent.

2.3Assignment of Works. Subject to Sections 2.4, and 2.6, I hereby irrevocably assign and agree

			
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to assign in the future (when any such Works or Proprietary Rights are first conceived, created, developed, reduced to practice or fixed in a tangible medium) to the Company all my right, title and interest in and to any and all Works (and all Proprietary Rights with respect thereto), on an exclusive, perpetual and worldwide basis, whether or not patentable or registrable under copyright or similar statutes, made or conceived or reduced to practice or learned by me, either alone or jointly with others, during the period of, or in connection with, my Employment with the Company. Works assignable to the Company pursuant to this Section 2.3, or to a third party as directed by the Company pursuant to this Section 2, are hereinafter referred to as “Company Works.” To the extent that any Moral Rights cannot be assigned under applicable law pursuant to this Section 2.3, I hereby irrevocably waive such Moral Rights.

1.4Unassigned Works. I recognize that this Agreement will not be deemed to require assignment of any invention that I am bound to assign to a third party or that is developed entirely on my own time without using the Company’s equipment, supplies, facilities, Proprietary Information, or Third Party Information, which invention does not result from work performed by me for the Company.

1.5Obligation to Keep Company Informed. During the period of my Employment and for six (6) months after termination of my Employment with the Company, I will promptly disclose to the Company fully and in writing all Works authored, conceived or reduced to practice by me, either alone or jointly with others. In addition, I will promptly disclose to the Company all patent applications filed by me or on my behalf within a year after termination of Employment. The Company will keep in confidence and will not use for any purpose or disclose to third parties without my consent any personal confidential information disclosed in writing to the Company pursuant to this Agreement.

1.6Government or Third Party. I agree to assign all my right, title and interest in and to any particular Company Work to a third party, including without limitation the United States, as directed by the Company.

1.7Works for Hire. I acknowledge that all original works of authorship which are made by me (solely or jointly with others) within the scope of my Employment and which are protectable by copyright shall be considered “works made for hire” pursuant to United States Copyright Act (17 U.S.C., Section 101).

1.8Enforcement of Proprietary Rights. I will assist the Company in every proper way to obtain, and from time to time to enforce, United States and foreign Proprietary Rights relating to Company Works in any and all

countries. To that end I will execute, verify and deliver such documents and perform such other acts (including appearances as a witness) as the Company may reasonably request for use in applying for, obtaining, perfecting, evidencing, sustaining and enforcing such Proprietary Rights and/or the assignment thereof. In addition, I will execute, verify and deliver assignments of such Proprietary Rights to the Company or its designee. My obligation to assist the Company with respect to Proprietary Rights relating to such Company Works in any and all countries shall continue beyond the termination of my Employment, but the Company shall compensate me at a reasonable rate after my termination for the time actually spent by me at the Company's request on such assistance.

In the event the Company is unable for any reason, after reasonable effort, to secure my signature on any document needed in connection with the actions specified in the preceding paragraph, I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my agent and attorney in fact, which appointment is coupled with an interest, to act for and in my behalf to execute, verify and file any such documents and to do all other lawfully permitted acts to further the purposes of the preceding paragraph with the same legal force and effect as if executed by me. I hereby waive and quitclaim to the Company any and all claims, of any nature whatsoever, which I now or may hereafter have for infringement of any Proprietary Rights assigned hereunder to the Company.

3.RECORDS. I agree to keep and maintain adequate, reasonable, and current records (in the form of notes, sketches, drawings and in any other form that may be required by the Company) of all Proprietary Information developed by me and all Works made by me during the period of my Employment at the Company, which records shall be available to and remain the sole property of the Company at all times.

4.DUTY OF LOYALTY DURING EMPLOYMENT; NO OUTSIDE BUSINESS ACTIVITY. Except as set forth herein, I understand that my Employment with the Company requires my full attention and effort.   I agree that, during the period of my Employment by the Company, I will not, without the Company’s express written consent, be employed by another entity or engage in any business activity other than for the Company, including but not limited to business activity that is competitive with, or would otherwise conflict with or distract me from, my Employment by the Company. The Company acknowledges that part-time work for ISMMS shall not violate this Section 4.

5.NO    SOLICITATION    OF    EMPLOYEES, CONSULTANTS, CONTRACTORS OR CUSTOMERS. I agree that for the period of my Employment by the Company and for one (1) year after the date my Employment by the

			
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Company ends for any reason, including but not limited to voluntary termination by me or involuntary termination by the Company, I will not, either directly or through others,
(i) solicit or attempt to solicit any employee, independent contractor or consultant of the Company to become an employee, consultant or independent contractor to or for any other person or entity, or to otherwise diminish their relationship with the Company, or (ii) solicit any customers of the Company with whom I had contact or whose identity I learned as a result of my Employment with the Company.

The parties agree that for purposes of this Agreement, a customer is any person or entity to which the Company has provided goods or services at any time during the period commencing prior to my Employment with the Company and ending on the date my Employment with the Company ends.

6.NO CONFLICTING AGREEMENT OR OBLIGATION. I represent that my performance of all the terms of this Agreement and of my duties as an employee of the Company does not and will not breach any agreement or obligation of any kind, including but not limited to those made prior to my Employment by the Company, such as agreements or obligations I may have with prior employers or entities for which I have provided services.

7.RETURN OF DOCUMENTS. When my Employment with the Company terminates for any reason, I will deliver to the Company any and all drawings, notes, memoranda, specifications, devices, formulas, and documents, together with all copies thereof, and any other material containing or disclosing any Company Works, Third Party Information, Personal Information or Proprietary Information. I further agree that any property situated on the Company's premises and owned by the Company, including disks and other storage media, filing cabinets or other work areas, is subject to inspection by Company personnel at any time with or without notice. Prior to leaving, I will cooperate with the Company in completing and signing the Company’s termination statement.

I understand that I am not required to use my personally- owned technology for my work. If I choose to use my personally-owned technology for work, I hereby give my consent that the Company may review my personally-owned technology at any time, including but not limited to upon my departure from the Company, solely to ensure compliance with confidentiality obligations to the Company and others. For clarity, this provision does not authorize the Company to collect or use any information that is personal and not Proprietary Information, Third Party Information, or Personal Information.

8.NOTICES. Notices provided for in this Agreement shall be in writing and shall be deemed to have been duly

received: (a) when delivered in person or sent by facsimile transmission, (b) on the first business day after such notice is sent by air express overnight courier service, or (c) on the third business day following deposit in the United States mail, registered or certified mail, return receipt requested, postage prepaid and addressed, to the following address, as applicable:

8.1Notices to me shall be sent to my address reflected in the Company’s personnel record.

9.NOTIFICATION OF NEW EMPLOYER. In the event that my Employment with the Company terminates for any reason, I authorize the Company to provide notice of my rights and obligations under this Agreement to my subsequent employers and to any other entity or person to whom I provide services or in which I have a financial interest.

10.GENERAL PROVISIONS.

10.1Legal and Equitable Remedies. I recognize that in the course of Employment with the Company, I will have access to Proprietary Information, to Third Party Information, to Personal Information, and to employees, consultants, contractors, clients, and customers of the Company. I also recognize that the services I will provide to the Company are personal and unique. I understand that because of this the Company may sustain irreparable injury if I violate this Agreement. In order to limit or prevent such irreparable injury, the Company shall have the right to enforce this Agreement and any of its provisions by injunction, specific performance or other equitable relief, without bond and without prejudice to any other rights and remedies that the Company may have for a breach of this Agreement.

10.2Governing Law.   This Agreement shall be governed by laws of the State of New York, without giving effect to any choice of law or conflict of laws rules or provisions that would cause the application of the laws of any jurisdiction other than the State of New York.

10.3Severability. In the event that any one or more of the provisions of this Agreement will be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions of this Agreement will not be affected thereby.

10.4Successors and Assigns. This Agreement will be binding upon my heirs, executors, administrators and other legal representatives and will be for the benefit of the Company, its successors, and its assigns. I hereby consent that my personal obligations under this Agreement may be assigned by the Company.

			
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10.1Survival. The provisions of this Agreement shall survive the termination of my Employment and the assignment of this Agreement by the Company to any successor in interest or other assignee.

10.2Terms of Employment. I agree and understand that nothing in this Agreement shall confer upon me any right with respect to continuation of Employment by the Company, nor shall it interfere in any way with my right or the Company's right to terminate my Employment at any time, with or without cause.

10.3Waiver. The failure of a party to insist on strict adherence to any term of this Agreement on any occasion will not be considered a waiver of such party’s rights or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.
10.4

10.5Entire Agreement. The obligations pursuant to Sections 1 and 2 of this Agreement shall apply to any time during my previous or future Employment by the Company as a consultant or otherwise if no other agreement governs nondisclosure and assignment of inventions during such period. This Agreement is the final, complete and exclusive agreement of the parties with respect to the subject matter hereof and supersedes and merges all prior discussions between us.

10.6Amendments. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing and signed by the party to be charged. Any subsequent change or changes in my duties, salary or compensation will not affect the validity or scope of this Agreement.

I   HAVE   READ    THIS    AGREEMENT    CAREFULLY    AND
UNDERSTAND AGREE TO ITS TERMS. This Agreement shall be effective as of the first day of my Employment with the Company.

/s/ Jason Ryan

(Signature)
    Jason Ryan

(Printed Name)

ACCEPTED AND AGREED TO:
SEMA4 HOLDINGS CORP.

By:     Name: Eric Schadt, Ph.D.
Title: Chief Executive Officer
			
	Sema4 PIIA – Page 5ex41

72622817v6    EXHIBIT 4.1           SUBORDINATED NOTE PURCHASE AGREEMENT  This SUBORDINATED NOTE PURCHASE AGREEMENT (this “Agreement”) is  dated as of March 11, 2022, and is made by and among Citizens Community Bancorp, Inc., a  Maryland corporation (“Company”), and the several purchasers of the Subordinated Notes named  on Schedule I hereto (each a “Purchaser” and collectively, the “Purchasers”).  RECITALS  WHEREAS, Company has requested that the Purchasers purchase from Company up to     $35 million in aggregate principal amount of Subordinated Notes (as defined herein), which  aggregate amount is intended to qualify as Tier 2 Capital (as defined herein).  WHEREAS, Company has engaged Janney Montgomery Scott LLC and Hovde Group,  LLC as its co-placement agents (collectively, the “Placement Agent”) for the offering of the  Subordinated Notes.  WHEREAS, each of the Purchasers is an “accredited investor” as such term is defined in  by Rule 501 of Regulation D (“Regulation D”) promulgated under the Securities Act of 1933, as  amended (the “Securities Act”) or a QIB (as defined herein).  WHEREAS, the offer and sale of the Subordinated Notes by Company is being made in  reliance upon the exemptions from registration available under Section 4(a)(2) of the Securities  Act and Rule 506(b) of Regulation D promulgated thereunder.  WHEREAS, each Purchaser is willing to purchase from Company a Subordinated Note in  the principal amount set forth in Schedule I (the “Subordinated Note Amount”) in accordance with  the terms, subject to the conditions and in reliance on, the recitals, representations, warranties,  covenants and agreements set forth herein and in the Subordinated Notes.  NOW, THEREFORE, in consideration of the mutual covenants, conditions and  agreements herein contained and other good and valuable consideration, the receipt of which is  hereby acknowledged, the parties hereto hereby agree as follows:  AGREEMENT  1. DEFINITIONS.  1.1 Defined Terms.  The following capitalized terms used in this Agreement and in  the Subordinated Notes have the meanings defined or referenced below.  Certain other capitalized  terms used only in specific sections of this Agreement may be defined in such sections.  “Affiliate(s)” means, with respect to any Person, such Person’s immediate family  members, partners, members or parent and subsidiary corporations, and any other Person directly  or indirectly controlling, controlled by, or under common control with said Person and their  respective Affiliates.  “Agreement” has the meaning set forth in the preamble hereto.   

 

       2         “Bank” means Citizens Community Federal National Association, a federally chartered  national bank and a wholly owned subsidiary of the Company   “Business Day” means any day other than a Saturday, Sunday or any other day on which  banking institutions in the State of Wisconsin are permitted or required by any applicable law or  executive order to close.  “Closing” has the meaning set forth in Section 2.4.  “Closing Date” means March 11, 2022.  “Company” has the meaning set forth in the preamble hereto and shall include any  successors to Company by merger or otherwise.  “Company’s Liabilities” means Company’s obligations under the Transaction Documents.  “Company’s Reports” means (a) audited financial statements of the Company included in  the SEC Reports for the years ended December 31, 2021, December 31, 2020, and December 31,  2019; and (b) the Company’s report for the year ended December 31, 2021 as filed with the FRB  as required by regulations of the FRB.  “Disbursement” has the meaning set forth in Section 3.1.  “DTC” has the meaning set forth in Section 5.7.  “Equity Interest” means any and all shares, interests, participations or other equivalents  (however designated) of capital stock of a corporation, any and all equivalent ownership interests  in a Person which is not a corporation, and any and all warrants, options or other rights to purchase  any of the foregoing.  “Event of Default” has the meaning set forth in the Subordinated Notes.  “Exchange Act” means the Securities Exchange Act of 1934, as amended.  “FDIC” means the Federal Deposit Insurance Corporation.  “FRB” means the Board of Governors of the Federal Reserve Board.  “GAAP” means generally accepted accounting principles in effect from time to time in the  United States of America.  “Governmental Agency(ies)” means, individually or collectively, any federal, state, county  or local governmental department, commission, board, regulatory authority or agency (including,  without limitation, each applicable Regulatory Agency) with jurisdiction over Company or any of  its Subsidiaries.  “Governmental Licenses” has the meaning set forth in Section 4.3.  

 

       3         “Hazardous Materials” means flammable explosives, asbestos, urea formaldehyde  insulation, polychlorinated biphenyls, radioactive materials, hazardous wastes, toxic or  contaminated substances or similar materials, including, without limitation, any substances which  are “hazardous substances,” “hazardous wastes,” “hazardous materials” or “toxic substances”  under the Hazardous Materials Laws and/or other applicable environmental laws, ordinances or  regulations.  “Hazardous Materials Laws” mean any laws, regulations, permits, licenses or requirements  pertaining to the protection, preservation, conservation or regulation of the environment which  relates to real property, including:  the Clean Air Act, as amended, 42 U.S.C. Section 7401 et seq.;  the Federal Water Pollution Control Act, as amended, 33 U.S.C. Section 1251 et seq.; the Resource  Conservation and Recovery Act of 1976, as amended, 42 U.S.C. Section 6901 et seq.; the  Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended  (including the Superfund Amendments and Reauthorization Act of 1986), 42 U.S.C. Section 9601  et seq.; the Toxic Substances Control Act, as amended, 15 U.S.C. Section 2601 et seq.; the  Occupational Safety and Health Act, as amended, 29 U.S.C. Section 651, the Emergency Planning  and Community Right-to-Know Act of 1986, 42 U.S.C. Section 11001 et seq.; the Mine Safety  and Health Act of 1977, as amended, 30 U.S.C. Section 801 et seq.; the Safe Drinking Water Act,  42 U.S.C. Section 300f et seq.; and all comparable state and local laws and regulations.  “Holder” has the meaning set forth in the Subordinated Notes.  “Indebtedness” means and includes:  (i) all items arising from the borrowing of money that,  according to GAAP as in effect from time to time, would be included in determining total liabilities  as shown on the consolidated balance sheet of Company and its Subsidiaries; and (ii) all  obligations secured by any lien in property owned by Company or any Subsidiary whether or not  such obligations shall have been assumed; provided, however, Indebtedness shall not include  deposits or other borrowings created, incurred or maintained in the ordinary course of the business  of the Company or Bank (including, without limitation, federal funds purchased, advances from  any Federal Home Loan Bank, secured deposits of municipalities, letters of credit issued by  Company or Bank and repurchase arrangements) and consistent with customary  banking practices  and applicable laws and regulations.   “Leases” means all leases, licenses or other documents providing for the use or occupancy  of any portion of any Property, including all amendments, extensions, renewals, supplements,  modifications, sublets and assignments thereof and all separate letters or separate agreements  relating thereto.   “Material Adverse Effect” means, with respect to any Person, any change or effect that (i)  is or would be reasonably likely to be material and adverse to the financial condition, results of  operations or business of such Person, or (ii) would materially impair the ability of such Person to  perform its respective obligations under any of the Transaction Documents, or otherwise materially  impede the consummation of the transactions contemplated hereby; provided, however, that  “Material Adverse Effect” shall not be deemed to include the impact of (1) changes in banking  and similar laws, rules or regulations of general applicability or interpretations thereof by  Governmental Agencies, (2) changes in GAAP or regulatory accounting requirements applicable  

 

       4         to financial institutions and their holding companies generally, (3) changes after the date of this  Agreement in general economic or capital market conditions affecting financial institutions or their  market prices generally and not specifically related to Company, Bank or Purchasers, (4) any acts  of God, natural disasters, terrorism, armed hostilities, sabotage, war, epidemic, pandemic or  disease outbreak (including the COVID-19 virus) or any escalation or worsening of any of the  foregoing that do not disproportionately affect the operations or business of the Company or Bank  in comparison to other banking institutions with similar operations, (5) direct effects of compliance  with this Agreement on the operating performance of Company or Purchasers, including expenses  incurred by Company, Bank  or Purchasers in consummating the transactions contemplated by this  Agreement, and (6) the effects of any action or omission taken by Company or the Bank with the  prior written consent of Purchasers, and vice versa, or as otherwise contemplated by this  Agreement and the Subordinated Notes.  “Maturity Date” means April 1, 2032.  “Person” means an individual, a corporation (whether or not for profit), a partnership, a  limited liability company, a joint venture, an association, a trust, an unincorporated organization,  a government or any department or agency thereof (including a Governmental Agency) or any  other entity or organization.  “Placement Agent” has the meaning set forth in the Recitals.  “Purchaser” or “Purchasers” has the meaning set forth in the preamble hereto.  “QIB” has the meaning set forth in Section 5.7.  “Regulation D” has the meaning set forth in the Recitals.  “Regulatory Agency” means any federal or state agency charged with the supervision or  regulation of depository institutions or holding companies of depository institutions, or engaged  in the insurance of depository institution deposits, or any court, administrative agency or  commission or other authority, body or agency having supervisory or regulatory authority with  respect to Company, Bank or any of their Subsidiaries.  “Secondary Market Transaction” has the meaning set forth in Section 5.4.  “Securities Act” has the meaning set forth in the Recitals.  “SEC” means the Securities and Exchange Commission.  “SEC Reports” has the meaning set forth in Section 4.9.   “Subordinated Note” means the Subordinated Note (or collectively, the “Subordinated  Notes”) in the forms of Subordinated Note or Global Subordinated Note attached as Exhibits A-1  and A-2 hereto, as amended, restated, supplemented or modified from time to time, and each  Subordinated Note delivered in substitution or exchange for such Subordinated Note.  

 

       5         “Subordinated Note Amount” has the meaning set forth in the Recitals.  “Subsidiary” means with respect to any Person, any corporation or entity in which a  majority of the outstanding Equity Interest is directly or indirectly owned by such Person.  “Tier 2 Capital” has the meaning given to the term “Tier 2 capital” in 12 C.F.R. Part 217,  as amended, modified and supplemented and in effect from time to time or any replacement  thereof.    “Transaction Documents” has the meaning set forth in Section 3.2.1.  1.2 Interpretations.  The foregoing definitions are equally applicable to both the  singular and plural forms of the terms defined.  The words “hereof”, “herein” and “hereunder” and  words of like import when used in this Agreement shall refer to this Agreement as a whole and not  to any particular provision of this Agreement.  The word “including” when used in this Agreement  without the phrase “without limitation,” shall mean “including, without limitation.” All references  to time of day herein are references to Eastern Time unless otherwise specifically provided.  All  references to the Agreement and Subordinated Notes shall be deemed to be to such documents as  amended, modified or restated from time to time.  With respect to any reference in this Agreement  to any defined term, (i) if such defined term refers to a Person, then it shall also mean all heirs,  legal representatives and permitted successors and assigns of such Person, and (ii) if such defined  term refers to a document, instrument or agreement, then it shall also include any amendment,  replacement, extension or other modification thereof.   1.3 Exhibits Incorporated.  All Exhibits attached are hereby incorporated into this  Agreement.  2. SUBORDINATED DEBT.  2.1 General Matters.  2.1.1 Certain Terms.  Subject to the terms and conditions herein contained,  Company proposes to issue and sell to the Purchasers, severally and not jointly, Subordinated  Notes in an aggregate principal amount equal to the aggregate of the Subordinated Note Amounts.   Purchasers, severally and not jointly, each agree to purchase the Subordinated Notes from the  Company on the Closing Date in accordance with the terms of, and subject to the conditions and  provisions set forth in, this Agreement and the Subordinated Notes.  The Subordinated Note  Amounts shall be disbursed in accordance with Section 3.1.  The Subordinated Notes shall bear  interest per annum as set forth in the Subordinated Notes.  The unpaid principal balance of the  Subordinated Notes plus all accrued but unpaid interest thereon shall be due and payable on the  Maturity Date, or such earlier date on which such amount shall become due and payable on account  of (i) acceleration by Purchasers in accordance with the terms of the Subordinated Notes and this  Agreement or (ii) Company’s delivery of a notice of redemption or repayment in accordance with  the terms of the Subordinated Notes.  

 

       6         2.1.2 Subordination.  The Subordinated Notes shall be subordinated in  accordance with the subordination provisions set forth therein.  2.1.3 Redemptions.  Any redemption of the Subordinated Notes shall be made  on a pro-rata basis, and, for purposes of a redemption processed through the DTC, on a “Pro Rata  Pass-Through Distribution of Principal” basis, among all Subordinated Notes outstanding at the  time thereof.  2.2 Maturity Date.  On the Maturity Date, all sums due and owing under this  Agreement and the Subordinated Notes shall be repaid in full.  Company acknowledges and agrees  that Purchasers have not made any commitments, either express or implied, to extend the terms of  the Subordinated Notes past their Maturity Date, and shall not extend such terms beyond the  Maturity Date unless Company and Purchasers hereafter specifically otherwise agree in writing.  2.3 Unsecured Obligations; No Sinking Fund.  The obligations of Company to  Purchasers under the Subordinated Notes shall be unsecured. The Subordinated Notes are not  entitled to the benefit of any sinking fund.  2.4 The Closing.  The closing of the sale and purchase of the Subordinated Notes (the  “Closing”) shall occur at the offices of Company at 10:00 a.m. (local time) on the Closing Date,  or remotely via the electronic or other exchange of documents and signature pages, or at such other  place or time or on such other date as the parties hereto may agree.  2.5 Payments.  Company agrees that matters concerning payments and application of  payments shall be as set forth in this Agreement and in the Subordinated Notes.  2.6 No Right of Offset.  Each Purchaser hereby expressly waives any right of offset it  may have against Company or any of its Subsidiaries.  2.7 Use of Proceeds.  Company shall use the net proceeds from the sale of  Subordinated Notes for general corporate purposes.  3. DISBURSEMENT.  3.1 Disbursement.  On the Closing Date, assuming all of the terms and conditions set  forth in Section 3.2 have been satisfied by Company and Company has executed and delivered to  each of the Purchasers this Agreement and such Purchaser’s the Subordinated Notes and any other  related documents in form and substance reasonably satisfactory to Purchasers, each Purchaser  shall disburse the Subordinated Note Amount set forth next to its name in Schedule I in  immediately available funds to Company in exchange for a Subordinated Note with a principal  amount equal to such Subordinated Note Amount (the “Disbursement”).  The Company will  deliver to the respective Purchaser one or more certificates representing the Subordinated Notes in  definitive form (or provide evidence of the same with the original to be delivered by the Company  by overnight delivery on the next calendar day in accordance with the delivery instructions of  Purchaser), registered in such names and denominations as such Purchasers may request.  

 

       7         3.2 Conditions Precedent to Disbursement.  In conjunction with and as additional  (but independent) supporting evidence for certain of the covenants, representations and warranties  made by Company herein, prior to and as a condition of each Purchaser’s obligation to  consummate the purchase of the Subordinated Note and to effect the Disbursement, Company shall  deliver or cause to be delivered to Purchasers each of the following (or Purchaser shall waive, in  writing, such delivery, which written waiver shall be binding only on the Purchaser granting such  waiver):  3.2.1 Transaction Documents.  This Agreement and such Purchaser’s  Subordinated Note (collectively, the “Transaction Documents”), each duly authorized and  executed by Company.  3.2.2 Authority Documents.  3.2.2.1 A copy, certified by the Secretary or Assistant Secretary of  Company, of the Articles of Incorporation of Company;  3.2.2.2 A certificate of existence of Company issued by the Secretary of  State of Maryland and a certificate of corporate existence of the Bank issued by the Office of the  Comptroller of the Currency;   3.2.2.3 A copy, certified by the Secretary or Assistant Secretary, of the  Bylaws of Company;  3.2.2.4 A copy, certified by the Secretary or Assistant Secretary of  Company, of the resolutions of the board of directors of Company authorizing the issuance of the  Subordinated Notes and the execution, delivery and performance of the Transaction Documents;  and  3.2.2.5 An incumbency certificate of the Secretary or Assistant  Secretary of Company certifying the names of the officer or officers of Company authorized to  sign the Transaction Documents and the other documents provided for in this Agreement.  3.2.3 Other Requirements.  Such other additional information regarding the  Company, the Bank and any other Subsidiary of Company and their respective assets, liabilities  (including any liabilities arising from, or relating to, legal proceedings) and contracts as a  Purchaser may reasonably require.  3.2.4 Officer’s Certificate.  A certificate signed on behalf of Company by a  senior executive officer certifying that the representations and warranties of Company set forth in  this Agreement are true and correct in all respects on and as of the date of this Agreement and on  and as of the Closing Date as though made on and as of the Closing Date, except where the failure  to be true and correct (without regard to any materiality or Material Adverse Effect qualifications  contained therein), individually or in the aggregate, would not be reasonably likely to have a  Material Adverse Effect (and except that (i) representations and warranties made as of a specified  date shall only be required to be true and correct as of such date and (ii) the representations and  

 

       8         warranties of Company set forth in Sections 4.2.1 and 4.2.3 of this Agreement shall be true and  correct in all respects).  3.2.5   Opinion of Counsel.  Purchasers and Placement Agent shall have  received the opinions of each of Taft Stettinius & Hollister LLP and Venable LLP,  counsel for  the Company, dated the Closing Date, substantially in the forms annexed hereto as Exhibits B-1  and B-2.    3.2.6   Aggregate Investments.  Prior to, or contemporaneously with the  Closing, each Purchaser shall have actually subscribed for the Subordinated Note Amount set forth  on such Purchaser’s signature page.    3.2.7 Other Documents.  Such other certificates, affidavits, schedules,  resolutions, notes and/or other documents which are provided for hereunder or as a Purchaser may  reasonably request.  3.2.8 Conditions to the Company’s Obligations.  With respect to a given  Purchaser, the obligation of the Company to consummate the sale of the Subordinated Notes and  to effect the Closing is subject to delivery by or at the direction of such Purchaser to the Company  of this Agreement, duly authorized and executed by such Purchaser.  4. REPRESENTATIONS AND WARRANTIES OF COMPANY.   Company hereby represents and warrants to each Purchaser as follows:  4.1 Organization and Authority.  4.1.1 Organization Matters of Company and Its Subsidiaries.  4.1.1.1  Company is a duly organized corporation, is validly existing  and in good standing under the laws of the Maryland and has all requisite corporate power and  authority to conduct its business and activities as presently conducted, to own its properties, and  to perform its obligations under the Transaction Documents.  Company is duly qualified as a  foreign corporation to transact business and is in good standing in each other jurisdiction in which  such qualification is required, whether by reason of the ownership or leasing of property or the  conduct of business, except where the failure so to qualify or to be in good standing would not  reasonably be expected to result in, individually or in the aggregate, a Material Adverse Effect.   Schedule 4.1.1.1 lists each state where the Company is engaged in business as a foreign  corporation.  Company is duly registered as a bank holding company under the Bank Holding  Company Act of 1956, as amended.  4.1.1.2 Bank is validly existing as a federally chartered national bank  and has all requisite corporate power and authority to conduct its business and activities as  presently conducted and to own its properties.  Bank is duly qualified as a foreign corporation to  transact business and is in good standing in each other jurisdiction in which such qualification is  required, whether by reason of the ownership or leasing of property or the conduct of business,  

 

       9         except where the failure so to qualify or to be in good standing would not reasonably be expected  to result in a Material Adverse Effect.  Schedule 4.1.1.2 lists each state where the Bank is engaged  in business as a foreign corporation.  The deposit accounts of Bank are insured by the FDIC up to  applicable limits.  Neither Company nor Bank has received any notice or other information  indicating that Bank is not an “insured depository institution” as defined in 12 U.S.C. Section  1813, nor has any event occurred which could reasonably be expected to adversely affect the status  of Bank as an FDIC-insured institution.  4.1.1.3 Schedule 4.1.1.3 lists the Subsidiaries of the Company other  than the Bank.  4.1.1.4 All of the issued and outstanding shares of capital stock or other  equity interests in Bank have been duly authorized and validly issued, are fully paid and non- assessable and are owned by Company directly free and clear of any security interest, mortgage,  pledge, lien, encumbrance or claim except as set forth in Section 4.5.5; none of the outstanding  shares of capital stock of, or other equity interests in, Bank were issued in violation of the  preemptive or similar rights of any security holder of Bank or any other entity.  4.1.2 Capital Stock and Related Matters.  The Articles of Incorporation of  Company authorizes Company to issue 30,000,000 shares of common stock, $0.01 par value and  1,000,000 shares of preferred stock, $0.01 par value.  As of the date of this Agreement, there are  10,536,544 shares of the Company’s common stock issued and outstanding and no shares of the  Company’s preferred stock issued and outstanding.  All of the outstanding capital stock of  Company has been duly authorized and validly issued and is fully paid and non-assessable.  Except  as set forth on Schedule 4.1.2, there are, as of the date hereof, no outstanding options, rights,  warrants or other agreements or instruments obligating Company to issue, deliver or sell, or cause  to be issued, delivered or sold, additional shares of the capital stock of Company or obligating  Company to grant, extend or enter into any such agreement or commitment to any Person except  pursuant to Company’s equity incentive plans duly adopted by Company’s Board of Directors.   4.2 No Impediment to Transactions.  4.2.1 Transaction is Legal and Authorized.  The issuance of the Subordinated  Notes, the borrowing of the aggregate of the Subordinated Note Amounts, the execution of the  Transaction Documents and compliance by Company with all of the provisions of the Transaction  Documents are within the corporate and other powers of Company.    4.2.2 Agreement.  The Agreement has been duly authorized, executed and  delivered by the Company, and, assuming due authorization, execution and delivery by the other  parties thereto, constitutes the legal, valid and binding obligations of Company, enforceable  against the Company in accordance with its terms, except as enforcement thereof may be limited  by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or  affecting creditors’ rights generally or by general equitable principles.  4.2.3 Subordinated Notes.  The Subordinated Notes have been duly authorized  by Company and when executed by the Company and issued, delivered to and paid for by the  

 

       10         Purchasers in accordance with the terms of the Agreement, will have been duly executed,  authenticated, issued and delivered, and will constitute legal, valid and binding obligations of  Company enforceable in accordance with their terms, except as enforcement thereof may be  limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or  affecting creditors’ rights generally or by general equitable principles.  4.2.4 No Defaults or Restrictions.  Neither the execution and delivery of the  Transaction Documents nor compliance with their respective terms and conditions will (whether  with or without the giving of notice or lapse of time or both) (i) violate, conflict with or result in a  breach of, or constitute a default under:  (1) the Articles of Incorporation or Bylaws of Company;  (2) any of the terms, obligations, covenants, conditions or provisions of any corporate restriction  or of any contract, agreement, indenture, mortgage, deed of trust, pledge, bank loan or credit  agreement, or any other agreement or instrument to which Company or Bank, as applicable, is now  a party or by which it or any of its properties may be bound or affected; (3) any judgment, order,  writ, injunction, decree or demand of any court, arbitrator, grand jury, or Governmental Agency  applicable to Company or Bank; or (4) any statute, rule or regulation applicable to Company,  except, in the case of item (2), (3) or (4) for such violations and conflicts that would not reasonably  be expected to have, singularly or in the aggregate, a Material Adverse Effect on Company and  the Bank taken as a whole, or (ii) result in the creation or imposition of any lien, charge or  encumbrance of any nature whatsoever upon any property or asset of Company. Neither Company  nor Bank is in default in the performance, observance or fulfillment of any of the terms,  obligations, covenants, conditions or provisions contained in any indenture or other agreement  creating, evidencing or securing Indebtedness of any kind or pursuant to which any such  Indebtedness is issued, or any other agreement or instrument to which Company or Bank, as  applicable, is a party or by which Company or Bank, as applicable, or any of its properties may be  bound or affected, except, in each case, only such defaults that would not reasonably be expected  to have, singularly or in the aggregate, a Material Adverse Effect on Company.  4.2.5 Governmental Consent.  No governmental orders, permissions,  consents, approvals or authorizations are required to be obtained by Company that have not been  obtained, and no registrations or declarations are required to be filed by Company that have not  been filed in connection with, or, in contemplation of, the execution and delivery of, and  performance under, the Transaction Documents, except for applicable requirements, if any, of the  Securities Act, the Exchange Act, or state securities laws or “blue sky” laws of the various states  and any applicable federal or state banking laws and regulations.  4.3 Possession of Licenses and Permits. Each of Company and Bank possess such  permits, licenses, approvals, consents and other authorizations (collectively, “Governmental  Licenses”) issued by the appropriate Governmental Agencies necessary to conduct the business  now operated by it except where the failure to possess such Governmental Licenses would not,  singularly or in the aggregate, have a Material Adverse Effect on Company or such applicable  Subsidiary; Company and each Subsidiary of Company is in compliance with the terms and  conditions of all such Governmental Licenses, except where the failure so to comply would not,  individually or in the aggregate, have a Material Adverse Effect on Company or such applicable  Subsidiary of Company; all of the Governmental Licenses are valid and in full force and effect,  except where the invalidity of such Governmental Licenses or the failure of such Governmental  

 

       11         Licenses to be in full force and effect would not have a Material Adverse Effect on Company or  such applicable Subsidiary of Company; and neither Company nor any Subsidiary of Company  has received any notice of proceedings relating to the revocation or modification of any such  Governmental Licenses.  4.4 Financial Condition.  4.4.1 Financial Statements.  The financial statements of the Company  included in Company’s Reports (including the related notes, where applicable), which have been  provided to Purchasers (i) have been prepared from, and are in accordance with, the books and  records of the Company and the Bank; (ii) fairly present in all material respects the results of  operations, changes in stockholders’ equity and financial position of Company and its consolidated  Subsidiaries, for the respective fiscal periods or as of the respective dates therein set forth (subject  in the case of unaudited statements to recurring year-end audit adjustments normal in nature and  amount), as applicable; (iii) complied as to form, as of their respective dates of filing in all material  respects with applicable accounting, banking requirements and rules and regulations of the SEC,  as applicable, with respect thereto; and (iv) have been prepared in accordance with GAAP  consistently applied during the periods involved, except, in each case, (w) as required by any  regulatory accounting practices; (x) as indicated in such statements or in the notes thereto; (y) for  any statement therein or omission therefrom that was corrected, amended or supplemented or  otherwise disclosed or updated in a subsequent Company Report, and (z) to the extent that any  unaudited interim financial statements do not contain the footnotes required by GAAP, and were  or are subject to normal and recurring year-end adjustments, which were not or are not expected  to be material in amount, either individually or in the aggregate. The books and records of  Company and the Bank have been, and are being, maintained in all material respects in accordance  with GAAP and any other applicable legal and accounting requirements.  Neither Company nor  Bank has any material liability of any nature whatsoever (whether absolute, accrued, contingent  or otherwise and whether due or to become due), except for those liabilities that are reflected or  reserved against on the consolidated balance sheet of the Company contained in Company’s  Reports for the Company’s most recently completed quarterly, semi-annual or annual fiscal period,  as applicable, and for liabilities incurred in the ordinary course of business consistent with past  practice or in connection with this Agreement and the transactions contemplated hereby.   4.4.2 Controls. The records, systems, controls, data and information of  Company and the Bank are recorded, stored, maintained and operated under means (including any  electronic, mechanical or photographic process, whether computerized or not) that are under the  exclusive ownership and direct control of it or its accountants including all means of access thereto  and therefrom, except for any non-exclusive ownership and non-direct control that would not  reasonably be expected to have a Material Adverse Effect on the system of internal accounting  controls described in the following sentence.  Company, on a consolidated basis, has devised and  maintained a system of internal accounting controls sufficient to provide reasonable assurances (i)  that the assets of Company and the Bank are properly recorded and (ii) regarding the reliability of  financial reporting and the preparation of financial statements for external purposes in accordance  with GAAP.  

 

       12         4.4.3 Absence of Default.  Since the end of the Company’s fiscal year ended  December 31, 2021, no event has occurred which either of itself or with the lapse of time or the  giving of notice or both, would give any creditor of Company the right to accelerate the maturity  of any material Indebtedness of Company.  The Company is not in default under any other Lease,  agreement or instrument, or any law, rule, regulation, order, writ, injunction, decree, determination  or award, non-compliance with which could reasonably be expected to result in a Material Adverse  Effect on Company.  4.4.4 Solvency.  After giving effect to the consummation of the transactions  contemplated by this Agreement, Company has capital sufficient to carry on its business and  transactions and is solvent and able to pay its debts as they mature.  No transfer of property is  being made and no Indebtedness is being incurred in connection with the transactions  contemplated by this Agreement with the intent to hinder, delay or defraud either present or future  creditors of Company or any Subsidiary of Company.  4.4.5 Ownership of Property.  Company and each of its Subsidiaries has good  and marketable title as to all real property owned by it and good title to all assets and properties  owned by Company and such Subsidiary in the conduct of its businesses, whether such assets and  properties are real or personal, tangible or intangible, including assets and property reflected in the  most recent balance sheet contained in Company’s Reports or acquired subsequent thereto (except  to the extent that such assets and properties have been disposed of in the ordinary course of  business, since the date of such balance sheet), subject to no encumbrances, liens, mortgages,  security interests or pledges, except (i) those items which secure liabilities for public or statutory  obligations or any discount with, borrowing from or other obligations to the Federal Home Loan  Bank, inter-bank credit facilities, reverse repurchase agreements or any transaction by Bank acting  in a fiduciary capacity, (ii) statutory liens for amounts not yet delinquent or which are being  contested in good faith, (iii) a lien in favor of Chippewa Valley Bank with respect to all of the  shares of stock issued by the Bank and held by the Company, and (iv) such as do not, individually  or in the aggregate, materially affect the value of such property and do not materially interfere with  the use made and proposed to be made of such property by Company or any of its Subsidiaries.   Company and each of its Subsidiaries, as lessee, has the right under valid and existing Leases of  real and personal properties that are material to Company or such Subsidiary, as applicable, in the  conduct of its business to occupy or use all such properties as are presently occupied and used by  it.  Such existing Leases and commitments to lease constitute or will constitute operating leases  for both tax and financial accounting purposes except as otherwise disclosed in the Company’s  Reports and the lease expense and minimum rental commitments with respect to such Leases and  lease commitments are as disclosed in all material respects in Company’s Reports.  4.4.6 No Material Adverse Change.  Since the date of the latest financial  statements included within the Company’s Reports, there has been no development or event which  has had or could reasonably be expected to have a Material Adverse Effect on Company or Bank.  4.5 Legal Matters.  4.5.1 Compliance with Law.  Company and Bank (i) has complied with and  (ii) to the Company’s knowledge is not under investigation with respect to, and have not been  

 

       13         threatened to be charged with or given any notice of any material violation of any applicable  statutes, rules, regulations, orders and restrictions of any domestic or foreign government, or any  instrumentality or agency thereof, having jurisdiction over the conduct of its business or the  ownership of its properties, except where any such failure to comply or violation would not  reasonably be expected to have a Material Adverse Effect on Company or any of its Subsidiaries.   Each of the Company and Bank is, and at all times prior to the date hereof has been, in compliance  with (x) all applicable statutes, rules, regulations, orders and restrictions of any domestic or foreign  government, or any Governmental Agency applicable to it, and (y) its own privacy policies and  written commitments to their respective customers, consumers and employees, concerning data  protection and the privacy and security of personal data and the nonpublic personal information of  their respective customers, consumers and employees, except in each case where the failure to so  comply would not reasonably be expected to result, individually or in the aggregate, in a Material  Adverse Effect.  At no time during the two years prior to the date hereof has Company or Bank  received any written notice asserting any of the foregoing.  4.5.2 Sarbanes-Oxley; Internal Control Over Financial Reporting;  Disclosure Controls.  The Company is in compliance in all material respects with all of the  provisions of the Sarbanes-Oxley Act of 2002 that are applicable to it and with all laws  administered by and regulations of any Governmental Agency applicable to it, the failure to  comply with which would have a Material Adverse Effect.  Except as set forth in the SEC Reports,  (i) the Company maintains internal control over financial reporting (as such term is defined in  Rule 13a-15(f) under the Exchange Act) designed to provide reasonable assurance regarding the  reliability of financial reporting and the preparation of financial statements for external purposes  in accordance with GAAP and such internal control over financial reporting is effective; and (ii)  the Company maintains disclosure controls and procedures (as such term is defined in Rule 13a- 15(e) and 15d-15(e) under the Exchange Act), and such disclosure controls and procedures were  evaluated by management of the Company and were determined to be effective as of December  31, 2021, and since the date of such evaluation, there has been no significant changes in the  disclosure controls and procedures that are reasonably likely to materially adversely affect such  disclosure controls and procedures.  None of Company, Company’s Subsidiaries nor any of their  officers or directors is now operating under any restrictions, agreements, memoranda, commitment  letter, supervisory letter or similar regulatory correspondence, or other commitments (other than  restrictions of general application) imposed by any Governmental Agency, nor are, to Company’s  knowledge, (a) any such restrictions threatened, (b) any agreements,  supervisory letters or similar  regulatory correspondence, or other commitments being sought by any Governmental Agency, or  (c) any legal or regulatory violations previously identified by, or penalties or other remedial action  previously imposed by, any Governmental Agency unresolved.  4.5.3 Pending Litigation.  There are no actions, suits, proceedings or written  agreements pending, or, to Company’s knowledge, threatened or proposed, against Company,  Bank or any of its Subsidiaries at law or in equity or before or by any federal, state, municipal, or  other governmental department, commission, board, or other administrative agency, domestic or  foreign, that, either separately or in the aggregate, would reasonably be expected to have a Material  Adverse Effect on Company or any of its Subsidiaries taken as a whole or affect issuance or  payment of the Subordinated Notes; and neither Company and any of its Subsidiaries is a party to  or named as subject to the provisions of any order, writ, injunction, or decree of, or any written  

 

       14         agreement with, any court, commission, board or agency, domestic or foreign, that either  separately or in the aggregate, will have a Material Adverse Effect on Company and any of its  Subsidiaries taken as a whole.  4.5.4 Environmental.  No Property is or, to the Company’s knowledge, has  been a site for the use, generation, manufacture, storage, treatment, release, threatened release,  discharge, disposal, transportation or presence of any Hazardous Materials and neither the  Company nor any of its Subsidiaries has engaged in such activities, and there are no claims or  actions pending or, to the Company’s knowledge, threatened against the Company or any of its  Subsidiaries by any Governmental Agency or by any other Person relating to any Hazardous  Materials or pursuant to any Hazardous Materials Law..    4.5.5 Brokerage Commissions.  Other than with respect to the Placement  Agent, neither Company nor any Affiliate of Company is obligated to pay any brokerage  commission or finder’s fee to any Person in connection with the transactions contemplated by this  Agreement.  4.5.6 Investment Company Act.  Neither Company nor Bank is an  “investment company” or a company “controlled” by an “investment company,” within the  meaning of the Investment Company Act of 1940, as amended.  4.6 No Misstatement.  No information, exhibit, report, schedule or document, when  viewed together as a whole, furnished by Company to Purchasers in connection with the  negotiation, execution or performance of this Agreement contains any untrue statement of a  material fact, or omits to state a material fact necessary to make the statements contained therein  not misleading in light of the circumstances when made or furnished to Purchasers and as of the  Closing Date.  4.7 Tax Matters.  Each of Company and Bank has (i) filed all material foreign, U.S.  federal, state and local tax returns, information returns and similar reports that are required to be  filed, and all such tax returns are true, correct and complete in all material respects, and (ii) paid  all material taxes required to be paid by it and any other material assessment, fine or penalty levied  against it other than taxes (x) currently payable without penalty or interest, or (y) being contested  in good faith by appropriate proceedings.  4.8 Exempt Offering of Securities.  Neither Company nor any Person acting on its  behalf has taken any action which would subject the offering, issuance or sale of the Subordinated  Notes to the registration requirements of the Securities Act.  Neither the Company nor any Person  acting on its behalf has engaged or will engage in any form of general solicitation or general  advertising (within the meaning of Regulation D) in connection with any offer or sale of the  Subordinated Notes pursuant to the transactions contemplated by the Transaction Documents.   Assuming the accuracy of Purchasers’ representations and warranties set forth in this Agreement,  no registration under the Securities Act is required for the offer and sale of the Subordinated Notes  by the Company to Purchasers.  No “bad actor” disqualifying event described in Rule 506(d)(1)(i)  -(viii) of the Securities Act (a “Disqualification Event”) is applicable to the Company or, to the  Company’s knowledge, any Person described in Rule 506(d)(1) (each, a “Company Covered  

 

       15         Person”).  To the Company’s knowledge, no Company Covered Person is subject to a  Disqualification Event.  The Company has complied, to the extent applicable, with its disclosure  obligations under Rule 506(e).  4.9 SEC Reports; Disclosure Materials.  The Company has filed all reports,  schedules, forms, statements and other documents required to be filed by it under the Exchange  Act, including pursuant to Section 13(a) or 15(d) thereof, for the twenty-four (24) months  preceding the date hereof (the foregoing materials, including the exhibits thereto and documents  incorporated by reference therein, being collectively referred to herein as the “SEC Reports” and  together with this Agreement (including the Exhibits and Schedules hereto), on a timely basis or  has received a valid extension of such time of filing and has filed any such SEC Reports prior to  the expiration of any such extension.  As of their respective filing dates, the SEC Reports complied  in all material respects with the requirements of the Securities Act and the Exchange Act and the  rules and regulations of the Commission promulgated thereunder, and none of the SEC Reports,  when filed, contained any untrue statement of a material fact or omitted to state a material fact  required to be stated therein or necessary in order to make the statements therein, in light of the  circumstances under which they were made, not misleading.    5 GENERAL COVENANTS, CONDITIONS AND AGREEMENTS.   Company hereby further covenants and agrees with each Purchaser as follows:  5.1 Affiliate Transactions.  Company shall not itself, nor shall it cause, permit or allow  any Subsidiary to enter into any material transaction, including, the purchase, sale or exchange of  property or the rendering of any service, with any Affiliate of Company except in the ordinary  course of business and pursuant to the reasonable requirements of Company’s or such Affiliate’s  business and upon terms consistent with applicable laws and regulations and no less favorable to  Company or such Affiliate than would be obtained in a comparable arm’s length transaction with  a Person not an Affiliate.  5.2 Compliance with Laws.  5.2.1 Generally, Company shall comply and cause each of its Subsidiaries to  comply in all material respects with all applicable statutes, rules, regulations, orders and  restrictions in respect of the conduct of its business and the ownership of its properties, except, in  each case, where such noncompliance would not reasonably be expected to have a Material  Adverse Effect on Company.  5.2.2 Regulated Activities.  Company shall not itself, nor shall it cause, permit  or allow Bank to (i) engage in any business or activity not permitted by all applicable laws and  regulations, except where such business or activity would not reasonably be expected to have a  Material Adverse Effect on Company or Bank or (ii) make any loan or advance secured by the  capital stock of another bank or depository institution, or acquire the capital stock, assets or  obligations of or any interest in another bank or depository institution, in each case other than in  accordance with applicable laws and regulations and safe and sound banking practices.  

 

       16         5.2.3 Taxes.  Company shall and shall cause Bank and any other Subsidiary to  promptly pay and discharge all taxes, assessments and other governmental charges imposed upon  Company, Bank or any other Subsidiary or upon the income, profits, or property of Company or  any Subsidiary and all claims for labor, material or supplies which, if unpaid, might by law become  a lien or charge upon the property of Company or Bank.  Notwithstanding the foregoing, none of  Company or Bank or any other Subsidiary shall be required to pay any such tax, assessment, charge  or claim, so long as the validity thereof shall be contested in good faith by appropriate proceedings,  and appropriate reserves therefor shall be maintained on the books of Company and Bank.  5.2.4 Corporate Existence.  Company shall do or cause to be done all things  reasonably necessary to maintain, preserve and renew its corporate existence and that of Bank and  their respective rights and franchises, and comply in all material respects with all related laws  applicable to Company and Bank.  5.2.5 Dividends, Payments, and Guarantees During Event of Default.  During  the continuance of an Event of Default and except as required by any federal or state Governmental  Agency, Company agrees not to (a) declare or pay any dividends on, or redeem, purchase, acquire  or make a liquidation payment with respect to, any of its capital stock; (b) make any payment of  principal of, or interest or premium, if any, on, or repay, repurchase or redeem any of Company’s  Indebtedness that ranks equal with or junior to the Subordinated Notes; or (c) make any payments  under any guarantee that ranks equal with or junior to the Subordinated Notes, other than (i) any  dividends or distributions in shares of, or options, warrants or rights to subscribe for or purchase  shares of, any class of Company’s common stock; (ii) any declaration of a non-cash dividend in  connection with the implementation of a shareholders’ rights plan, or the issuance of stock under  any such plan in the future, or the redemption or repurchase of any such rights pursuant thereto;  (iii) as a result of a reclassification of Company’s capital stock or the exchange or conversion of  one class or series of Company’s capital stock for another class or series of Company’s capital  stock; (iv) the purchase of fractional interests in shares of Company’s capital stock pursuant to the  conversion or exchange provisions of such capital stock or the security being converted or  exchanged; or (v) purchases of any class of Company’s common stock related to the issuance of  common stock or rights under any benefit plans for Company’s directors, officers or employees or  any of Company’s dividend reinvestment plans.  5.2.6 Tier 2 Capital.  If all or any portion of the Subordinated Notes ceases to  qualify as Tier 2 Capital, other than due to the limitation imposed on the capital treatment of  subordinated debt during the five (5) years immediately preceding the Maturity Date of the  Subordinated Notes, Company will immediately notify the Holders thereof, and thereafter  Company and the Holders will work together in good faith to execute and deliver all agreements  as reasonably necessary in order to restructure the applicable portions of the obligations evidenced  by the Subordinated Notes to qualify as Tier 2 Capital, if requested by Company; provided,  however, that nothing contained in this Agreement shall limit the Company’s right to redeem the  Subordinated Notes upon the occurrence of a Tier 2 Capital Event as described in the Subordinated  Notes.    5.3 Absence of Control.  It is the intent of the parties to this Agreement that in no event  shall Purchasers, by reason of any of the Transaction Documents, be deemed to control, directly  

 

       17         or indirectly, Company, and Purchasers shall not exercise, or be deemed to exercise, directly or  indirectly, a controlling influence over the management or policies of Company.  5.4 Secondary Market Transactions.  Each Holder shall have the right at any time  and from time to time to securitize its Subordinated Notes or any portion thereof in a single asset  securitization or a pooled loan securitization of rated single or multi-class securities secured by or  evidencing ownership interests in the Subordinated Notes (each such securitization is referred to  herein as a “Secondary Market Transaction”).  In connection with any such Secondary Market  Transaction, the Company shall, at the Company’s expense, reasonably cooperate in good faith  with Holders and otherwise reasonably assist Holders in satisfying the market standards to which  Holders customarily adhere or which may be reasonably required in the marketplace or by  applicable rating agencies in connection with any such Secondary Market Transactions, but in no  event shall the Company be required to incur more than $10,000 (without reimbursement) in costs  or expenses in connection therewith.  Subject to any written confidentiality obligation, all  information regarding the Company may be furnished, without liability except in the case of gross  negligence or willful misconduct, to any Holder and to any Person reasonably deemed necessary  by Holder in connection with such Secondary Market Transaction.  Purchaser shall cause any  Person to whom Purchaser wishes to deliver confidential Company information related to the  Secondary Market Transaction to execute and deliver to Company a non-disclosure agreement  reasonably acceptable to the Company unless such Person is a party to a commercially reasonable  non-disclosure agreement to which Company is a third party beneficiary. All documents, financial  statements, appraisals and other data relevant to Company or the Subordinated Notes may be  retained by any such Person, subject to the terms of any applicable confidentiality agreements.  5.5 Information Available to Facilitate Resales.    5.5.1 Current Public Information.  With a view to making available to  Purchaser or Holder the benefits of certain SEC rules and regulations permitting the sale of the  Subordinated Notes without registration as soon as allowed, the Company shall, at all times from  the date of this Agreement through the date that the restrictive legend is removed, make and keep  available adequate current public information with respect to the Company, as those terms are  understood and defined in Rule 144(c) or any similar or analogous rules promulgated under the  Securities Act, and, upon written request by Purchaser or Holder, Company shall provide a written  statement that Company has complied with such requirements.  5.5.2 144A Information.  While any Subordinated Note meets the definition of  “restricted securities” within the meaning of the Securities Act, the Company will make available,  upon request by Purchaser or Holder, to any seller of such Subordinated Note the information  specified in Rule 144A(d)(4) under the Securities Act, unless the Company is then subject to  Section 13 or 15(d) of the Exchange Act.  5.6 CUSIP Number.  Prior to the Closing Date, the Company shall cause (i) CUSIP  numbers to be obtained for the Subordinated Notes and printed on the Subordinated Notes pursuant  to a recommendation promulgated by the Committee on Uniform Security Identification  Procedures and (ii) the Subordinated Notes to be quoted on Bloomberg.  

 

       18         5.7 DTC Eligibility.  The Company shall use commercially reasonable efforts to  provide that the Subordinated Notes owned by Purchasers that are Qualified Institutional Buyers,  as defined in Rule 144A under the Securities Act (each, a “QIB”), shall be issued in the form of  one or more Global Subordinated Notes (in the form attached hereto as Exhibit A-2) registered in  the name of Cede & Co. as nominee of The Depository Trust Company (“DTC”) or a nominee of  DTC.    6. REPRESENTATIONS, WARRANTIES AND COVENANTS OF PURCHASERS.  Each Purchaser hereby represents and warrants to Company, and covenants with Company,  severally and not jointly, as follows:  6.1 Legal Power and Authority.  It has all necessary power and authority to execute,  deliver and perform its obligations under this Agreement and to consummate the transactions  contemplated hereby.  It is an entity duly organized, validly existing and in good standing under  the laws its jurisdiction of organization.  6.2 Authorization and Execution.  The execution, delivery and performance of this  Agreement has been duly authorized by all necessary action on the part of such Purchaser, and this  Agreement, assuming due authorization, execution and delivery by the other parties hereto, is a  legal, valid and binding obligation of such Purchaser, enforceable against such Purchaser in  accordance with its terms, except as enforcement thereof may be limited by bankruptcy,  insolvency, reorganization, moratorium or other similar laws relating to or affecting creditors’  rights generally or by general equitable principles.  6.3 No Conflicts.  Neither the execution, delivery or performance of the Transaction  Documents nor the consummation of any of the transactions contemplated thereby will conflict  with, violate, constitute a breach of or a default (whether with or without the giving of notice or  lapse of time or both) under (i) its organizational documents, (ii) any agreement to which it is  party, (iii) any law applicable to it or (iv) any order, writ, judgment, injunction, decree,  determination or award binding upon or affecting it.  6.4 Purchase for Investment.  It is purchasing the Subordinated Note for its own  account and not with a view to distribution and with no present intention of reselling, distributing  or otherwise disposing of the same.  It has no present or contemplated agreement, undertaking,  arrangement, obligation, Indebtedness or commitment providing for, or which is likely to compel,  a disposition of the Subordinated Notes in any manner.  6.5 Accredited Investor/QIB Status.  It is and will be on the Closing Date an  “accredited investor” as such term is defined in Rule 501(a) of Regulation D or a QIB, as  applicable.  6.6 Financial and Business Sophistication.  It has such knowledge and experience in  financial and business matters that it is capable of evaluating the merits and risks of the prospective  investment in the Subordinated Notes.  It has relied solely upon its own knowledge of, and/or the  

 

       19         advice of its own legal, financial or other advisors with regard to, the legal, financial, tax and other  considerations involved in deciding to invest in the Subordinated Notes.  6.7 Ability to Bear Economic Risk of Investment.  It recognizes that an investment  in the Subordinated Notes involves substantial risk.  It has the ability to bear the economic risk of  the prospective investment in the Subordinated Notes, including the ability to hold the  Subordinated Notes indefinitely, and further including the ability to bear a complete loss of all of  its investment in Company.  6.8 Information.  It acknowledges that:  (i) it is not being provided with the disclosures  that would be required if the offer and sale of the Subordinated Notes were registered under the  Securities Act, nor is it being provided with any offering circular or prospectus prepared in  connection with the offer and sale of the Subordinated Notes; (ii) it has conducted its own  examination of Company and the terms of the Subordinated Notes to the extent it deems necessary  to make its decision to invest in the Subordinated Notes; and (iii) it has availed itself of publicly  available financial and other information concerning Company to the extent it deems necessary to  make its decision to purchase the Subordinated Notes.  It has reviewed the information set forth in  the SEC Reports and the Company’s Reports and the exhibits and schedules hereto.   6.9 Access to Information.  It acknowledges that it and its advisors have been  furnished with all materials relating to the business, finances and operations of Company that have  been requested of it or its advisors and have been given the opportunity to ask questions of, and to  receive answers from, persons acting on behalf of Company concerning terms and conditions of  the transactions contemplated by this Agreement in order to make an informed and voluntary  decision to enter into this Agreement.   6.10 Investment Decision.  It has made its own investment decision based upon its own  judgment, due diligence and advice from such advisors as it has deemed necessary and not upon  any view expressed by any other Person or entity, including the Placement Agent.  Neither such  inquiries nor any other due diligence investigations conducted by it or its advisors or  representatives, if any, shall modify, amend or affect its right to rely on Company’s representations  and warranties contained herein.  It is not relying upon, and has not relied upon, any advice,  statement, representation or warranty made by any Person by or on behalf of Company, including  the Placement Agent, except for the express statements, representations and warranties of  Company made or contained in this Agreement.  Furthermore, it acknowledges that nothing in this  Agreement or any other materials presented by or on behalf of Company to it in connection with  the purchase of the Subordinated Notes constitutes legal, tax or investment advice.  6.11 Private Placement; No Registration; Restricted Legends.  It understands and  acknowledges that the Subordinated Notes are being sold by Company without registration under  the Securities Act in reliance on the exemption from federal and state registration set forth in,  respectively, Rule 506(b) of Regulation D promulgated under Section 4(a)(2) of the Securities Act  and Section 18 of the Securities Act, or any state securities laws, and accordingly, may be resold,  pledged or otherwise transferred only if exemptions from the Securities Act and applicable state  securities laws are available to it.  It is not subscribing for the Subordinated Notes as a result of or  subsequent to any advertisement, article, notice or other communication published in any  

 

       20         newspaper, magazine or similar media or broadcast over television or radio, or presented at any  seminar or meeting.  It further acknowledges and agrees that all certificates or other instruments  representing the Subordinated Notes will bear the restrictive legend set forth in the form of  Subordinated Note.  It further acknowledges its primary responsibilities under the Securities Act  and, accordingly, will not sell or otherwise transfer the Subordinated Notes or any interest therein  without complying with the requirements of the Securities Act and the rules and regulations  promulgated thereunder and the requirements set forth in this Agreement.   6.12 Placement Agent.  Purchaser will purchase the Subordinated Note directly from  Company and not from the Placement Agent and understands that neither the Placement Agent nor  any other broker or dealer has any obligation to make a market in the Subordinated Notes.  6.13 Tier 2 Capital.  If all or any portion of the Subordinated Notes ceases to qualify as  Tier 2 Capital, other than due to the limitation imposed on the capital treatment of subordinated  debt during the five (5) years immediately preceding the Maturity Date of the Subordinated Notes,  Company will promptly notify the Purchasers, and thereafter Company and the Purchasers will  work together in good faith to execute and deliver all agreements as reasonably necessary in order  to restructure the applicable portions of the obligations evidenced by the Subordinated Notes to  qualify as Tier 2 Capital, if requested by Company; provided, however, that nothing contained in  this Agreement shall limit the Company’s right to redeem the Subordinated Notes upon the  occurrence of a  Tier 2 Capital Event as described in the Subordinated Notes.  6.14 Accuracy of Representations.  It understands that Company will rely upon the  truth and accuracy of the foregoing representations, acknowledgements and agreements in  connection with the transactions contemplated by this Agreement, and agrees that if any of the  representations or acknowledgements made by it are no longer accurate as of the Closing Date, or  if any of the agreements made by it are breached on or prior to the Closing Date, it shall promptly  notify the Company.  6.15 Representations and Warranties Generally.  The representations and warranties  of Purchaser set forth in this Agreement are true and correct as of the date hereof and will be true  and correct as of the Closing Date and as otherwise specifically provided herein.  Any certificate  signed by a duly authorized representative of Purchaser and delivered to the Company or to counsel  for Company shall be deemed to be a representation and warranty by Purchaser to Company as to  the matters set forth therein.  7 TERMINATION.    7.1 Termination.  This Agreement may be terminated, with respect to any Purchaser,  prior to the Closing:  7.1.1 By mutual written agreement of the Company and such Purchaser; or  7.1.2 By the Company or such Purchaser, upon written notice to the other parties,  in the event that the Closing does not occur within five (5) business days of the date of this  Agreement; provided, that the right to terminate this Agreement pursuant to this Section 7.1.2 shall  

 

       21         not be available to any party whose failure to fulfill any obligation under this Agreement shall  have been the cause of, or shall have resulted in, the failure of the Closing to occur on or prior to  such date.  7.2 Effect of Termination.  In the event of any termination of this Agreement as  provided in Section 7.1, this Agreement (other than Section 8, which shall remain in full force and  effect) shall forthwith become wholly void and of no further force and effect.  8 MISCELLANEOUS.  8.1 Prohibition on Assignment by Company.  Except as described in Section 4  (Merger and Sale of Assets) of the Subordinated Notes, Company may not assign, transfer or  delegate any of its rights or obligations under this Agreement or the Subordinated Notes without  the prior written consent all of the Noteholders (as defined in the Subordinated Note).  In addition,  in accordance with the terms of the Subordinated Notes, any transfer of such Subordinated Notes  by the Noteholders must be made in accordance with the Assignment Form attached thereto and  the requirements and restrictions thereof.  8.2 Time of the Essence.  Time is of the essence for this Agreement.  8.3 Waiver or Amendment.  Except as may apply to any particular waiving or  consenting Noteholder, no waiver or amendment of any term, provision, condition, covenant or  agreement herein or in the Subordinated Notes shall be effective except with the consent of the  holders of not less than more than fifty percent (50%) in aggregate principal amount (excluding  any Subordinated Notes held by Company or any of its Affiliates) of the Subordinated Notes at  the time outstanding; provided, however, that without the consent of each holder of an affected  Subordinated Note, no such amendment or waiver may:  (i) reduce the principal amount of the  Subordinated Note; (ii) reduce the rate of or change the time for payment of interest on any  Subordinated Note; (iii) extend the maturity of any Subordinated Note, (iv) change the currency  in which payment of the obligations of Company under this Agreement and the Subordinated  Notes are to be made; or (v) lower the percentage of aggregate principal amount of outstanding  Subordinated Notes required to approve any amendment of this Agreement or the Subordinated  Notes, (vi) make any changes to Section 4 (Merger and Sale of Assets), Section 5 (Events of  Default; Acceleration; Compliance Certificate); Section 6 (Affirmative Covenants of the Issuer);  Section 7 (Negative Covenants of the Issuer); or Section 8 (Failure to Make Payment) of the  Subordinated Notes that adversely affects the rights of any holder of a Subordinated Note; or (vii)  disproportionately affect any of the holders of the then outstanding Subordinated Notes.   Notwithstanding the foregoing, Company may amend or supplement the Subordinated Notes  without the consent of the holders of the Subordinated Notes to cure any ambiguity, defect or  inconsistency or to provide for uncertificated Subordinated Notes in addition to or in place of  certificated Subordinated Notes, or to make any change that does not adversely affect the rights of  any holder of any of the Subordinated Notes.  No failure to exercise or delay in exercising, by a  Purchaser or any holder of the Subordinated Notes, of any right, power or privilege hereunder shall  operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege  preclude any other or further exercise thereof, or the exercise of any other right or remedy provided  by law.  The rights and remedies provided in this Agreement are cumulative and not exclusive of  

 

       22         any right or remedy provided by law or equity.  No notice or demand on Company in any case  shall, in itself, entitle Company to any other or further notice or demand in similar or other  circumstances or constitute a waiver of the rights of Purchasers to any other or further action in  any circumstances without notice or demand.  No consent or waiver, expressed or implied, by  Purchasers to or of any breach or default by Company in the performance of its obligations  hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or  default in the performance of the same or any other obligations of Company hereunder.  Failure  on the part of Purchasers to complain of any acts or failure to act or to declare an Event of Default,  irrespective of how long such failure continues, shall not constitute a waiver by Purchasers of their  rights hereunder or impair any rights, powers or remedies on account of any breach or default by  Company.  8.4 Severability.  Any provision of this Agreement which is unenforceable or invalid  or contrary to law, or the inclusion of which would adversely affect the validity, legality or  enforcement of this Agreement, shall be of no effect and, in such case, all the remaining terms and  provisions of this Agreement shall subsist and be fully effective according to the tenor of this  Agreement the same as though any such invalid portion had never been included herein.   Notwithstanding any of the foregoing to the contrary, if any provisions of this Agreement or the  application thereof are held invalid or unenforceable only as to particular persons or situations, the  remainder of this Agreement, and the application of such provision to persons or situations other  than those to which it shall have been held invalid or unenforceable, shall not be affected thereby,  but shall continue valid and enforceable to the fullest extent permitted by law.  8.5 Notices.  Any notice which any party hereto may be required or may desire to give  hereunder shall be deemed to have been given if in writing and if delivered personally, or if mailed,  postage prepaid, by United States registered or certified mail, return receipt requested, or if  delivered by a responsible overnight commercial courier promising next Business Day delivery,  addressed:  if to Company: Jim Broucek  Citizens Community Bancorp, Inc.  2174 EastRidge Center  Eau Claire, WI 54701  Telephone: (715) 839-4662  Email: jbroucek@ccf.us    with a copy to: Joseph Kinning  Taft Stettinius & Hollister LLP  2200 IDS Center  80 South 8th Street  Minneapolis, MN 55402  Attention: Joseph T. Kinning  Telephone: (612) 977-8533  Email: jkinning@taftlaw.com      

 

       23         if to Purchasers: To the addresses indicated on Schedule I.    or to such other address or addresses as the party to be given notice may have furnished in writing  to the party seeking or desiring to give notice, as a place for the giving of notice; provided that no  change in address shall be effective until five (5) Business Days after being given to the other party  in the manner provided for above.  Any notice given in accordance with the foregoing shall be  deemed given when delivered personally or, if mailed, three (3) Business Days after it shall have  been deposited in the United States mails as aforesaid or, if sent by overnight courier, the Business  Day following the date of delivery to such courier (provided next Business Day delivery was  requested).  8.6 Successors and Assigns.  This Agreement shall inure to the benefit of the parties  and their respective heirs, legal representatives, successors and assigns; except that, unless a  Purchaser consents in writing, no assignment made by Company in violation of this Agreement  shall be effective or confer any rights on any purported assignee of Company.  The term  “successors and assigns” will not include a purchaser of any of the Subordinated Notes from  merely because of such purchase.  8.7 No Joint Venture.  Nothing contained herein or in any document executed  pursuant hereto and no action or inaction whatsoever on the part of a Purchaser, shall be deemed  to make a Purchaser a partner or joint venturer with Company.  8.8 Documentation.  All documents and other matters required by any of the  provisions of this Agreement to be submitted or furnished to a Purchaser shall be in form and  substance satisfactory to such Purchaser.  8.9 Entire Agreement.  This Agreement and the Subordinated Notes along with the  Exhibits thereto constitute the entire agreement between the parties hereto with respect to the  subject matter hereof and may not be modified or amended in any manner other than by  supplemental written agreement executed by the parties hereto.  No party, in entering into this  Agreement, has relied upon any representation, warranty, covenant, condition or other term that is  not set forth in this Agreement or in the Subordinated Notes.  8.10 Choice of Law.  This Agreement shall be governed by and construed in accordance  with the laws of the State of New York without giving effect to its laws or principles of conflict of  laws.  Nothing herein shall be deemed to limit any rights, powers or privileges which a Purchaser  may have pursuant to any law of the United States of America or any rule, regulation or order of  any department or agency thereof and nothing herein shall be deemed to make unlawful any  transaction or conduct by a Purchaser which is lawful pursuant to, or which is permitted by, any  of the foregoing.  8.11 No Third Party Beneficiary.  This Agreement is made for the sole benefit of  Company and the Purchasers, and no other person shall be deemed to have any privity of contract  hereunder nor any right to rely hereon to any extent or for any purpose whatsoever, nor shall any  other person have any right of action of any kind hereon or be deemed to be a third party  

 

       24         beneficiary hereunder, except that Placement Agent has the right to rely on the representations and  warranties of Company set forth in Section 4 of this Agreement.  8.12 Legal Tender of United States.  All payments hereunder shall be made in coin or  currency which at the time of payment is legal tender in the United States of America for public  and private debts.  8.13 Captions; Counterparts.  Captions contained in this Agreement in no way define,  limit or extend the scope or intent of their respective provisions.  This Agreement may be executed  in any number of counterparts and by different parties hereto in separate counterparts, each of  which when so executed and delivered shall be deemed to be an original and all of which taken  together shall constitute but one and the same instrument.  In the event that any signature is  delivered by facsimile transmission, or by e-mail delivery of a “.pdf” format data file, such  signature shall create a valid and binding obligation of the party executing (or on whose behalf  such signature is executed) with the same force and effect as if such facsimile signature page were  an original thereof.  8.14 Knowledge; Discretion.  All references herein to Purchaser’s or Company’s  knowledge shall be deemed to mean the knowledge of such party based on the actual knowledge  of such party’s Chief Executive Officer and Chief Financial Officer or such other persons holding  equivalent offices.  Unless specified to the contrary herein, all references herein to an exercise of  discretion or judgment by a Purchaser, to the making of a determination or designation by a  Purchaser, to the application of a Purchaser’s discretion or opinion, to the granting or withholding  of a Purchaser’s consent or approval, to the consideration of whether a matter or thing is  satisfactory or acceptable to a Purchaser, or otherwise involving the decision making of a  Purchaser, shall be deemed to mean that such Purchaser shall decide using the reasonable  discretion or judgment of a prudent lender.  8.15 Waiver Of Right To Jury Trial.  TO THE EXTENT PERMITTED UNDER  APPLICABLE LAW, THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND  INTENTIONALLY WAIVE ANY RIGHT THAT THEY MAY HAVE TO A TRIAL BY JURY  IN ANY LITIGATION ARISING IN ANY WAY IN CONNECTION WITH ANY OF THE  TRANSACTION DOCUMENTS, OR ANY OTHER STATEMENTS OR ACTIONS OF  COMPANY OR PURCHASERS.  THE PARTIES ACKNOWLEDGE THAT THEY HAVE  BEEN REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING  OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL SELECTED OF THEIR OWN  FREE WILL.  THE PARTIES FURTHER ACKNOWLEDGE THAT (i) THEY HAVE READ  AND UNDERSTAND THE MEANING AND RAMIFICATIONS OF THIS WAIVER, (ii) THIS  WAIVER HAS BEEN REVIEWED BY THE PARTIES  AND THEIR COUNSEL AND IS A  MATERIAL INDUCEMENT FOR ENTRY INTO THIS AGREEMENT (iii) THIS WAIVER  SHALL BE EFFECTIVE AS TO EACH OF SUCH TRANSACTION DOCUMENTS AS IF  FULLY INCORPORATED THEREIN.  8.16 Expenses.  Except as otherwise provided in this Agreement, each of the parties will  bear and pay all other costs and expenses incurred by it or on its behalf in connection with the  transactions contemplated pursuant to this Agreement.   

 

       25         8.17 Survival.  Each of the representations and warranties set forth in this Agreement  shall survive the consummation of the transactions contemplated hereby for a period of one year  after the date hereof.  Except as otherwise provided herein, all covenants and agreements contained  herein shall survive until, by their respective terms, they are no longer operative.    [Signature Pages Follow]  

 

      [Company Signature Page to Subordinated Note Purchase Agreement]         IN WITNESS WHEREOF, Company has caused this Subordinated Note Purchase  Agreement to be executed by its duly authorized representative as of the date first above written.     CITIZENS COMMUNITY BANCORP, INC.      By:        Stephen M. Bianchi  President and Chief Executive Officer        

 

                 IN WITNESS WHEREOF, the Purchaser has caused this Subordinated Note Purchase  Agreement to be executed by its duly authorized representative as of the date first above written.       PURCHASER:      By:      Its:      ______________________________                                                                   [Purchaser Signature Page to Subordinated Note Purchase Agreement]

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