Document:

EX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

This AGREEMENT is effective June 18, 2015 (the “Effective Date”) between Glacier Bancorp, Inc., (“Company”),
Glacier Bank (“Bank”) and Randall Chesler (“Executive”). 
 RECITALS 

 

	A.	Bank is a wholly owned subsidiary of the Company. Bank desires to retain Executive initially as its President and subsequently as its Chief Executive Officer on the terms and conditions set forth in this Agreement.

  

	B.	The Company desires to retain Executive as its President and Chief Executive Officer on the terms and conditions set forth in this Agreement. 

 

	C.	Executive desires to be employed by the Bank and the Company on the terms and conditions set forth in this Agreement. 

AGREEMENT 
  

	1.	Employment. The Bank and the Company agree to employ Executive in the positions identified below and on the terms and conditions set forth in this Agreement and Executive accepts employment by the Bank and the
Company in the positions set forth below and on the terms and conditions set forth in this Agreement. 

  

	 	A.	Employment as President of Bank. Beginning on August 1, 2015, Executive will be employed as President of the Bank. Executive’s employment as President of the Bank shall begin on the Effective Date of
this Agreement and continue until the expiration of the Term, unless earlier terminated pursuant to other terms of this Agreement. 

  

	 	(1)	Duties as President of Bank. While employed as President of the Bank, Executive will faithfully and diligently perform Executive’s assigned duties, which include but are not limited to the following:

  

	 	(a)	Bank Performance. Executive will be responsible for all aspects of the Bank’s performance, including without limitation, directing that daily operational and managerial matters are performed in a manner
consistent with the Bank’s and the Company’s policies. 

  

	 	(b)	Development and Preservation of Business. Executive will be responsible for the development and preservation of banking relationships and other business development efforts (including appropriate civic and
community activities) of the Bank. 

	 	(c)	Report to Company CEO. Executive will report directly to the Chief Executive Officer of the Company. The Chief Executive Officer of the Company may, from time to time, modify Executive’s title or add,
delete, or modify Executive’s performance responsibilities to accommodate management succession, as well as any other management objectives of the Bank or of the Company. Executive will assume any additional positions, duties and
responsibilities as may reasonably be requested of Executive with or without additional compensation, as appropriate and consistent with Sections 1.A.(1)(a) and 1.A.(1)(b) of this Agreement. 

 

	 	B.	Employment as Chief Executive Officer of Bank and President and Chief Executive Officer of Company. Beginning on January 1, 2017, in addition to being employed as President of the Bank, Executive shall also
be employed as the Bank’s Chief Executive Officer and the Company’s President and Chief Executive Officer. Executive’s employment as Chief Executive Officer of the Bank and President and Chief Executive Officer of the Company shall
continue until the expiration of the Term, unless earlier terminated pursuant to other terms of this Agreement. 

  

	 	(1)	Duties as Chief Executive Officer of Bank and President and Chief Executive Officer of Company. While employed as Chief Executive Officer of the Bank and President and Chief Executive Officer of the Company, in
addition to performing the duties as President of the Bank as set forth in Section 1.A(1), above, Executive will also faithfully and diligently perform Executive’s assigned duties, which include but are not limited to the following:

  

	 	(a)	Company Performance. Executive will be responsible for all aspects of the Company’s and Bank’s performance, including without limitation, directing that daily operational and managerial matters are
performed in a manner consistent with the Company’s policies. 

  

	 	(b)	Development and Preservation of Business. Executive will be responsible for the development and preservation of banking relationships, investor relationships and other business development efforts (including
appropriate civic and community activities) of the Bank and the Company. 

  

	 	(c)	 Report to Board. Executive will report directly to the Company’s board of directors. The Company’s board of directors may, from time
to time, modify Executive’s title or add, delete, or modify Executive’s performance responsibilities to accommodate management succession, as well as any other management objectives of the Bank or the Company. Executive

  
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will assume any additional positions, duties and responsibilities as may reasonably be requested of Executive with or without additional compensation, as appropriate and consistent with Sections
1.B(1)(a) and 1.B(1)(b) of this Agreement. 

  

	 	C.	Bank Board. During the Term of this Agreement, Executive will serve as a director of the Bank. 

  

	 	D.	Company Board. Beginning with the election of the Company’s board of directors in 2016, the Company will use its best efforts to nominate and recommend Executive for election to the Company’s board of
directors. If elected, Executive will serve as a director of the Company. 

  

	2.	Term. The term of this Agreement begins on August 1, 2015 (the “Start Date”) and shall terminate at midnight on December 31, 2017 (“Term”). Following expiration of the Term and
subject to and conditioned upon approval of the Company’s and the Bank’s board of directors, the Company and the Bank may continue to employ Executive pursuant to subsequent one (1) year employment agreements to be entered into
between the Company, the Bank and Executive. If the Company and the Bank elect not to renew Executive’s employment at the expiration of the Term, the Company and the Bank shall provide Executive with notice that Executive’s employment will
not be renewed on or before October 1, 2017. 

  

	3.	Extent of Services. Executive will devote all of Executive’s working time, attention and skill to the duties and responsibilities set forth in Sections 1.A(1), 1.B(1), 1.C and 1.D, as applicable from time to
time. To the extent that such activities do not interfere with Executive’s duties under Sections 1.A(1), 1.B(1), 1.C and 1.D, Executive may participate in other businesses as a passive investor, but (a) Executive may not actively
participate in the operation or management of those businesses, and (b) Executive may not, without the Company’s prior written consent, make or maintain any investment in a business with which the Company, the Bank or any of their
subsidiaries or divisions has an existing competitive or commercial relationship. Additionally, to the extent that such activities do not interfere with Executive’s duties under Sections 1.A(1), 1.B(1), 1.C and 1.D, Executive may serve on the
board of directors of one or more non-profit organizations or for-profit organizations, provided that Executive shall be prohibited from serving on the board of directors of any financial institutions, banks, bank holding companies or companies with
which the Company, the Bank or any of their subsidiaries or divisions has an existing competitive or commercial relationship. 

  

	4.	Salary. During the Term of this Agreement, Executive shall receive the following salary: 

  

	 	A.	Salary while employed as President of the Bank. During Executive’s employment as President of the Bank, specifically, for the period of time from August 1, 2015 through December 31, 2016, Executive
will receive an annual salary of $400,000.00. 

  
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	 	B.	Salary while employed as President and CEO of Bank and Company. During Executive’s employment as President and Chief Executive Officer of the Bank and the Company, specifically, for the period of time from
January 1, 2017 through December 31, 2017, Executive’s annual salary will be determined by the Company’s board of directors based on then current market data for chief executive officers of comparable financial institutions of
the Company, the Company’s total assets, Executive’s job performance, the Company’s performance and any other relevant factors as determined by the Company’s board of directors; provided, however, that Executive’s annual
salary for calendar year 2017 shall not be less than the greater of $631,000.00 or the 35th percentile of the then current base salary for chief executive officers of a custom peer group of the
Company to be developed by the Company’s Compensation Committee. 

  

	 	C.	Payment of Base Salary. Executive’s annual salary shall be paid in accordance with the Company’s regular payroll schedule. Executive’s annual salary shall be prorated during any partial calendar
year which this Agreement is in effect. 

  

	5.	Cash Incentive for 2015. Provided that Executive remains employed by the Bank and the Company as of February 15, 2016, the Company shall pay Executive a cash incentive payment for 2015 (to be paid on
February 15, 2016) in the amount of $200,000, less any applicable payroll taxes and withholdings. This cash incentive shall be in lieu of and Executive shall not be entitled to any additional cash incentives for 2015 under the Glacier Bancorp,
Inc. 2015 Short Term Incentive Plan. If Executive’s employment with the Bank or the Company is terminated for any reason prior to February 15, 2016, this cash incentive shall be forfeited and of no force or effect. 

 

	6.	Short Term Incentive Plan. Beginning on January 1, 2016, Executive shall be eligible to participate in the Glacier Bancorp, Inc. 2015 Short Term Incentive Plan (“STIP”). Executive shall be eligible
for cash incentives pursuant to the STIP based on the Company meeting certain financial goals (i.e. Threshold, Target and Max) set by the Company’s board of directors at the following levels: 

 

													
	 Calendar Year
	  	Cash Incentive Opportunity as a Percentage of Salary	 
	 	  	Threshold	 	 	Target	 	 	Max	 
	 2016
	  	 	0	% 	 	 	50	% 	 	 	75	% 
	 2017
	  	 	0	% 	 	 	60	% 	 	 	90	% 

 All STIP cash incentives shall be awarded and paid in accordance with and subject to the Company’s STIP
plan documents, as adopted and amended from time to time by the Company’s board of directors. Executive acknowledges having been provided a copy of the Company’s STIP plan documents prior to entering into this Agreement. 

 

	7.	Restricted Stock Award for 2015. 

  

	 	A.	 Award. Provided that Executive remains employed by the Bank and the Company as of February 15, 2016, the Company shall award Executive a
restricted stock award under the Glacier Bancorp, Inc. 2015 Stock Incentive Plan 

  
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for calendar year 2015 (to be awarded on February 15, 2016) in the amount of $200,000 (the “2015 Restricted Stock Award”). If Executive’s employment with the Bank or the
Company is terminated for any reason prior to February 15, 2016, the 2015 Restricted Stock Award shall be forfeited and of no force or effect. The 2015 Restricted Stock Award may not be sold, pledged, assigned, hypothecated, transferred or
disposed of in any manner other than by will of by the laws of descent or distribution. 

  

	 	B.	Vesting and Forfeiture of 2015 Restricted Stock Award. The 2015 Restricted Stock Award shall vest ratably over three years as follows: 

One-third (1/3) shall vest on February 15, 2017; 

One-third (1/3) shall vest on February 15, 2018; and 

One-third (1/3) shall vest on February 15, 2019. 

In the event Executive’s employment with the Company is terminated for any reason whatsoever prior to February 15, 2019, except for
termination as a result of retirement, death or disability, any unvested portion of the 2015 Restricted Stock Award will immediately be forfeited. In the event of Executive’s retirement, Executive becoming disabled (as defined in Appendix A of
the Glacier Bancorp, Inc. 2015 Stock Incentive Plan) or Executive’s death, any unvested shares of the 2015 Restricted Stock Award will vest immediately. For purposes of this provision, retirement is defined as meeting the “Rule of
80”. The “Rule of 80” is computed using Executive’s years of employment with the Bank and/or Company plus the Executive’s age on their last day of employment. If this number is equal to or greater than 80, the
Executive’s unvested shares will vest immediately on retirement. 
  

	 	C.	Terms of 2015 Restricted Stock Award. The 2015 Restricted Stock Award shall be made in accordance with and shall be subject to all terms and conditions of the Company’s LTIP (as defined below) plan
documents, as adopted and amended from time to time by the Company’s board of directors. Executive acknowledges having been provided a copy of the Company’s LTIP plan documents prior to entering into this Agreement. 

 

	8.	Long Term Incentive Plan. Beginning on January 1, 2016, Executive shall be eligible to participate in the Glacier Bancorp, Inc. 2015 Stock Incentive Plan (“LTIP”). Executive shall be eligible for
equity awards pursuant to the LTIP based on the Company meeting certain financial goals (i.e. Threshold, Target and Max) set by the Company’s board of directors at the following levels: 

 

													
	 Calendar Year
	  	Equity Opportunity as a Percentage of Salary	 
	 	  	Threshold	 	 	Target	 	 	Max	 
	 2016
	  	 	0	% 	 	 	40	% 	 	 	60	% 
	 2017
	  	 	0	% 	 	 	50	% 	 	 	75	% 

  
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 All LTIP equity awards shall be made in accordance with and shall be subject to all terms and
conditions of the Company’s LTIP plan documents, as adopted and amended from time to time by the Company’s board of directors. Executive acknowledges having been provided a copy of the Company’s LTIP plan documents prior to entering
into this Agreement. 
  

	9.	Equity Signing Bonus. 

  

	 	A.	Award. On the Start Date, the Company will award to Executive restricted stock in the amount of $400,000.00 (the “Restricted Stock Signing Bonus”) under the Company’s LTIP. The Restricted Stock
Signing Bonus may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner other than by will of by the laws of descent or distribution. 

 

	 	B.	Vesting and Forfeiture of Restricted Stock Signing Bonus. The Restricted Stock Signing Bonus shall vest ratably over a period of four years as follows: 

One-quarter (1/4) shall vest on August 1, 2016; 

One-quarter (1/4) shall vest on August 1, 2017; 

One-quarter (1/4) shall vest on August 1, 2018; and 

One-quarter (1/4) shall vest on August 1, 2019; 

In the event Executive’s employment with the Company is terminated for any reason whatsoever prior to August 1, 2019, except for
termination as a result of retirement, death or disability, any unvested portion of the Restricted Stock Signing Bonus will immediately be forfeited. In the event of Executive’s retirement, Executive becoming disabled (as defined in Appendix A
of the LTIP) or Executive’s death, any unvested shares of the Restricted Stock Signing Bonus will vest immediately. For purposes of this provision, retirement is defined as meeting the “Rule of 80”. The “Rule of 80” is
computed using Executive’s years of employment with the Bank and/or Company plus the Executive’s age on their last day of employment. If this number is equal to or greater than 80, the Executive’s unvested shares will vest immediately
on retirement. 
  

	 	C.	Terms of Restricted Stock Signing Bonus. The Restricted Stock Signing Bonus shall be made in accordance with and shall be subject to all terms and conditions of the Company’s LTIP plan documents, as adopted
and amended from time to time by the Company’s board of directors. Executive acknowledges having been provided a copy of the Company’s LTIP plan documents prior to entering into this Agreement. 

 

	10.	Cash Signing Bonus. On the Company’s first payroll date after the Start Date, the Company shall pay to Executive a cash signing bonus of $100,000.00, less any applicable payroll taxes and
withholdings. 

  

	11.	Relocation Benefits. Executive shall be entitled to relocation benefits in accordance with the Company’s Tier IV Employee Relocation Benefit program. 

  
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	12.	Income Deferral. Executive will be eligible to participate in any program available to the Company’s senior management for income deferral, for the purpose of deferring receipt of any or all of the
compensation Executive may become entitled to under this Agreement. 

  

	13.	Vacation and Benefits. 

  

	 	A.	Vacation and Holidays. Executive will accrue up to 160 hours of paid vacation each year, which accrual shall occur ratably over the Company’s payroll periods, in addition to all holidays observed by the
Bank. Accrual of vacation time shall be in accordance with the Company’s Employee Manual. Executive may carry over, in the aggregate, up to 160 hours of unused vacation to a subsequent year; provided, however, Executive may not accumulate in
excess of 160 hours of paid vacation at any given time (the “Cap”). Should Executive’s accumulation of paid vacation reach the Cap of 160 hours, Executive will no longer accrue additional paid vacation until Executive uses some of
Executive’s accumulated vacation time and Executive’s accumulated paid vacation balance drops below the Cap. Each calendar year, Executive shall take at least five (5) consecutive days of vacation. 

 

	 	B.	Benefits. Beginning on the Start Date, Executive will be entitled to participate in any group life insurance, disability, medical, dental, health and accident insurance plans, profit sharing and pension plans and
in other employee fringe benefit programs the Company may have in effect from time to time for its similarly situated employees, in accordance with and subject to any policies adopted by the Company’s board of directors with respect to the
plans or programs, including without limitation, any incentive or employee stock option plan, deferred compensation plan, 401(k) plan, and Supplemental Executive Retirement Plan (SERP). The Company through this Agreement does not obligate itself to
make any particular benefits available to its employees. The Company’s change, modification, or termination of any of its benefits during the Term of this Agreement shall not be a breach of this Agreement. 

 

	 	C.	Business Expenses. Subject to any applicable Company policies or the rules and regulations of the Internal Revenue Service, the Company will reimburse Executive for ordinary and necessary expenses which are
consistent with past practice at the Company (including, without limitation, travel, entertainment, and similar expenses) and which are incurred in performing and promoting the Bank’s and the Company’s business. Executive will present from
time to time itemized accounts of these expenses. Reimbursement will be made as soon as practicable but no later than the last day of the calendar year following the calendar year in which the expenses were incurred. 

 

	 	D.	 Directors and Officers Insurance; Indemnification. Executive will be covered by the Company’s directors and officers liability insurance
policy in effect from time to time. To the extent permitted by the Company’s Bylaws and the Montana Business Corporation Act, the Company will indemnify Executive in the event Executive is a party or is threatened to be made a party to any
threatened, pending or 

  
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completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that Executive is or was a director, officer or employee of the Company.

  

	14.	Termination of Employment. 

  

	 	A.	Termination by the Company for Cause. If the Company and the Bank terminate Executive’s employment for Cause (defined below) before the expiration of the Term of this Agreement, the Company will pay
Executive, within 10 business days following the termination of employment, or on the next regularly scheduled pay date, whichever is earlier, the salary earned and expenses reimbursable under this Agreement incurred through the date of termination.
Executive will have no right to receive compensation or other benefits for any period after termination under this Section 14.A. 

  

	 	B.	Termination by the Company without Cause or by Executive for Good Reason. If the Company and the Bank terminate Executive’s employment without Cause before the expiration of the Term of this Agreement, or
Executive terminates Executive’s employment for Good Reason (defined below)(other than for Good Reason pursuant to Section 14.H(1)(e)) before the expiration of the Term of this Agreement, the Company will pay Executive a payment equal to
the base salary set forth in Section 4, above, to which Executive would have been entitled for the remainder of the Term of the Agreement if Executive’s employment had not terminated. If Executive terminates his employment for Good Reason
pursuant to Section 14.H(1)(e), the Company will pay Executive a payment equal to two times Executive’s base salary as President of the Bank as set forth Section 4.A, above. Payment by the Company to Executive pursuant to this
Section 14.B. is conditioned upon Executive executing and not revoking a release of any and all claims which Executive could assert against the Company and the Bank relating to Executive’s employment or the termination of Executive’s
employment in a form acceptable to the Company. All payments made pursuant to this Section 14.B shall be completed no later than March 15 of the calendar year following the calendar year in which Executive’s employment terminates.

  

	 	C.	Death or Disability. This Agreement terminates (1) if Executive dies or (2) if Executive is unable to perform Executive’s duties and obligations under this Agreement for a period of 90 consecutive
days as a result of a physical or mental disability arising at any time during the Term of this Agreement, unless with reasonable accommodation Executive could continue to perform Executive’s essential functions under this Agreement and making
these accommodations would not pose an undue hardship on the Company or result in a direct threat to the health or safety of Executive or others (“Disability”). If termination occurs under this Section 14.C, the Company shall pay
Executive or Executive’s estate, within 10 business days following Executive’s termination of employment, all salary and benefits earned and expenses reimbursable through the date Executive’s employment terminated. Neither Executive
nor Executive’s estate will have any right to receive compensation or other benefits for any period after termination under this Section 14.C. 

  
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	 	D.	Termination Related to a Change in Control. The following provisions shall survive the expiration of the Term of this Agreement and the termination of Executive’s employment. 

 

	 	(1)	Termination by Company. If the Company, or its successor in interest by merger, or its transferee in the event of a purchase in an assumption transaction (for reasons other than Executive’s death,
disability, or for Cause) terminates Executive’s employment without Cause, as defined in Section 14.G: (a) within three (3) years following a Change in Control (as defined below); or (b) before a Change in Control but on or
after the date that any party either announces or is required by law to announce any prospective Change in Control transaction and a Change in Control occurs within six months after the termination, then Company will provide Executive with the
payment and benefits described in Section 14.D(3) below, provided that Executive executes a release of any and all claims which Executive could assert against the Company or the Bank relating to Executive’s employment or the termination of
Executive’s employment in a form acceptable to the Company. 

  

	 	(2)	Termination by Executive. If Executive terminates Executive’s employment with Good Reason, as defined in Section 14.H, within three (3) years following a Change in Control, the Company will provide
Executive with the payment and benefits described in Section 14.D(3) below, provided that Executive executes a release of any and all claims which Executive could assert against the Company or the Bank relating to Executive’s employment or
the termination of Executive’s employment in a form acceptable to the Company. 

  

	 	(3)	 Payments. If Section 14.D(1)(a) or Section 14.D(2) is triggered in accordance with its terms, the Company will: (i) subject to
Sections 14.E and 14.J below, beginning within 30 days after Executive’s separation from service as defined by Treasury Regulation § 1.409A-1(h) (“Separation from Service”), pay Executive in 36 substantially equal monthly
installments in an overall amount equal to 2.99 times the Executive’s annual salary (determined as of the day before the date Executive’s employment was terminated) and (ii) maintain and provide for 2.99 years following
Executive’s termination, at no cost to Executive, the benefits described in Section 13.B to which Executive is entitled (determined as of the day before the date of such termination); but if Executive’s participation in any such
benefit is thereafter barred or not feasible, as determined by the Company, or discontinued or materially reduced, the Company will arrange to provide Executive with benefits substantially similar to those benefits or reimburse Executive’s
out-of-pocket expenses of obtaining benefits of substantially similar type and 

  
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value. Subject to Sections 14.E and 14.J below, if Section 14.D(1)(b) is triggered in accordance with its terms, beginning within 30 days after a Change in Control, the Company will pay
Executive in 36 substantially equal monthly installments in an overall amount equal to 2.99 times the Executive’s annual salary (determined on the day before the date Executive’s employment was terminated). 

 

	 	E.	Limitations on Payments Related to Change in Control. The following apply notwithstanding any other provision of this Agreement: 

 

	 	(1)	the total of the payments and benefits described in Section 14.D(3) will be less than the amount that would cause them to be a “parachute payment” within the meaning of Section 280G(b)(2)(A) of the
Internal Revenue Code; 

  

	 	(2)	the payment and benefits described in Section 14.D(3) will be reduced by any compensation (in the form of cash or other benefits) received by Executive from the Company or its successor after the Change in Control
and/or after Executive’s termination of employment; and 

  

	 	(3)	Executive’s right to receive the payments and benefits described in Section 14.D(3) terminates (i) immediately if before the Change in Control transaction closes, Executive terminates Executive’s
employment without Good Reason, or the Company terminates Executive’s employment for Cause, or (ii) three years after a Change of Control occurs. 

  

	 	(4)	 Notwithstanding anything to the contrary in this or any other agreement or plan, including Section 14.E(1) of this Agreement, to the extent that
any payment or distribution of any type to or for the benefit of the Executive by the Company (or by any affiliate of the Company, any person or entity who acquires ownership or effective control of the Company or ownership of a substantial portion
of the Company’s assets (within the meaning of Section 280G of the “Code”, and the regulations thereunder), or any affiliate of such person or entity, whether paid or payable or distributed or distributable pursuant to the terms
of this Agreement or otherwise (the “Total Payments”), is or will be subject to the excise tax imposed under Section 4999 of the Code (the “Excise Tax”), then the Total Payments shall be reduced (but not below zero) only if
and to the extent that a reduction in the Total Payments would result in the Executive retaining a larger amount, on an after-tax basis (taking into account federal, state and local income taxes and the Excise Tax), than if the Executive received
the entire amount of such Total Payments. Unless the Executive shall have given prior written notice specifying a different order to the Company to effectuate the foregoing, the Company shall reduce or eliminate the Total Payments, by first reducing
or eliminating the portion of the Total Payments which are not payable in cash and then by reducing or 

  
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eliminating cash payments, in each case in reverse order beginning with payments or benefits which are to be paid the farthest in time from the Determination (as defined herein). Any notice given
by the Executive pursuant to the preceding sentence shall take precedence over the provisions of any other plan, arrangement or agreement governing the Executive’s rights and entitlements to any benefits or compensation. 

The determination of whether the Total Payments shall be reduced as provided in this Section and the amount of such reduction shall be made at
the Company’s expense by the Company’s independent auditors (the “Accounting Firm”). The Accounting Firm shall provide its determination (the “Determination”), together with detailed supporting calculations and
documentation to the Company and the Executive within ten (10) days of the last day of Executive’s employment. If the Accounting Firm determines that no Excise Tax is payable by the Executive with respect to the Total Payments, it shall
furnish the Executive with an opinion reasonably acceptable to the Executive that no Excise Tax will be imposed with respect to any such payments and, absent manifest error, such Determination shall be binding, final and conclusive upon the Company
and the Executive. If the Accounting Firm determines that an Excise Tax would be payable, the Executive shall have the right to accept the Determination of the Accounting Firm as to the extent of the reduction, if any, pursuant to this Section, or
to have such Determination reviewed by another accounting firm selected by the Executive, at the expense of the Company, in which case the determination of such second accounting firm shall be binding, final and conclusive upon the Company and
Executive. 
  

	 	F.	Return of Company and Bank Property. If and when Executive ceases, for any reason, to be employed by the Company and the Bank, Executive must return to the Company all keys, pass cards, identification cards, cell
phones, blackberries or other smart phones, tablets, electronic storage devices, company credit cards and any other property of the Company and the Bank. At the same time, Executive also must return to the Company and the Bank all originals and
copies (whether in memoranda, designs, devices, electronic storage devices, tapes, manuals, and specifications) which constitute proprietary or confidential information or material of the Company, the Bank or their subsidiaries or divisions. The
obligations in this paragraph include, without limitation, the return of documents and other materials which may be in Executive’s desk at work, in Executive’s car, in Executive’s place of residence, or in any other location under
Executive’s control. 

  

	 	G.	Cause. “Cause” means any one or more of the following: 

  

	 	(1)	Willful misfeasance or gross negligence in the performance of Executive’s duties; 

  
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	 	(2)	Conviction of a crime in connection with Executive’s duties, conviction of a felony or conviction of a crime of fraud, theft, conversion or dishonesty; or 

 

	 	(3)	Conduct demonstrably and significantly harmful to the Company or the Bank, as reasonably determined on the advice of legal counsel of the Company’s board of directors. 

 

	 	H.	Good Reason. Executive terminates employment for “Good Reason” if all four of the following criteria are satisfied: 

 

	 	(1)	Any one or more of the following conditions (each a “Condition”) arises without Executive’s consent: 

  

	 	(a)	The material reduction of Executive’s salary, unless the reduction is generally applicable to substantially all Company employees (or employees of a successor or controlling entity of the Company);

  

	 	(b)	The material diminution in Executive’s authority or duties as they exist on the date of this Agreement; 

  

	 	(c)	The material breach of this Agreement by the Company; or 

  

	 	(d)	A material relocation or transfer of Executive’s principal place of employment to a location outside Flathead County, Montana; 

  

	 	(e)	The Company fails to make Executive Chief Executive Officer of the Bank and President and Chief Executive Officer of the Company, in accordance with Section 1.B of this Agreement, for any reason other than
Executive’s death, Disability (as defined in Section 14.C), or Executive’s termination for Cause; and 

  

	 	(2)	Executive gives notice to the Company of the Condition within 90 days of the initial existence of the Condition; 

  

	 	(3)	The Company fails to reasonably remedy the Condition within 30 days following receipt of the notice described in Section 14.H(2) above; and 

 

	 	(4)	Executive terminates employment within 180 days following the initial existence of the Condition. 

  

	 	I.	Change in Control. “Change in Control” means a change “in the ownership or effective control” or “in the ownership of a substantial portion of the assets” of the Company, within the
meaning of Treas Reg. § 1.409A-3(i)(5). 

  

	 	J.	 Section 409A Compliance. Notwithstanding anything in this Agreement to the contrary, if any amounts that become due under this Agreement
on account of the 

  
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termination of Executive’s employment constitute “nonqualified deferred compensation” within the meaning of Internal Revenue Code Section 409A, payment of such amounts shall
not commence until Executive incurs a Separation from Service (as defined in Section 14.D(3)). If, at the time of Executive’s Separation from Service under this Agreement, Executive is a “specified employee” (under Internal
Revenue Code Section 409A), any amount that constitutes “nonqualified deferred compensation” within the meaning of Internal Revenue Code Section 409A that becomes payable to Executive on account of Executive’s Separation
from Service (including any amounts payable pursuant to the preceding sentence) will not be paid until after the end of the sixth calendar month beginning after Executive’s Separation from Service (the “409A Suspension Period”).
Within 14 calendar days after the end of the 409A Suspension Period, Executive shall be paid a lump sum payment in cash equal to any payments delayed because of the preceding sentence, together with interest on them for the period of delay at a rate
not less than the average prime interest rate published in the Wall Street Journal on any day chosen by the Company during that period. Thereafter, Executive shall receive any remaining payments as if there had not been an earlier delay.

  

	15.	Confidentiality. Executive will not, during the Term of this Agreement and for a period of five years after Executive’s employment with the Bank or Company has terminated, use for Executive’s own
purposes or disclose to any other person or entity any confidential business information concerning the Bank or Company or their business operations, unless (1) the Bank or Company consents to the use or disclosure of confidential information;
(2) the use or disclosure is consistent with Executive’s duties under this Agreement, or (3) disclosure is required by law or court order. For purposes of this Agreement, confidential business information includes, without limitation,
trade secrets (as defined under the Montana Uniform Trade Secrets Act, Montana Code § 30-14-402), customer information, various confidential information on investment management practices, marketing plans, pricing structure and technology of
either the Bank or Company. Executive will also treat the terms of this Agreement as confidential business information. 

  

	16.	Noncompetition. During the Term and the terms of any extensions or renewals of this Agreement and for a period of three years after Executive’s employment with the Bank or Company has terminated, unless such
termination is the result of the Bank’s and the Company’s election not to renew Executive’s employment, Executive will not, directly or indirectly, as a shareholder, director, officer, employee, proprietor, partner, member, agent,
consultant, lessor, creditor or otherwise 

  

	 	A.	provide management, supervisory or other similar services to any person or entity conducting a banking or lending business in counties in which the Bank or Company or a subsidiary or division of the Bank or the Company
had a branch or office during the term of this Agreement; 

  
 13 

	 	B.	persuade or entice, or attempt to persuade or entice any employee of the Bank, the Company or a subsidiary or division of the Bank or the Company to terminate his/her employment with the Bank, the Company or a
subsidiary of the Company; 

  

	 	C.	persuade or entice or attempt to persuade or entice any person or entity with whom Executive had pre-termination communications to change, terminate, cancel, rescind or revoke its banking or contractual relationships
with the Bank, Company or a subsidiary or division of the Bank or the Company. 

  

	17.	Enforcement. 

  

	 	A.	The Company, Bank and Executive stipulate that, in light of all of the facts and circumstances of the relationship between Executive and the Company and Bank, the agreements referred to in Sections 15 and 16 (including
without limitation their scope, duration and geographic extent) are fair and reasonably necessary for the protection of the Company’s and Bank’s confidential information, goodwill and other protectable interests. If a court of competent
jurisdiction should decline to enforce any of those covenants and agreements, Executive, the Company and Bank request the court to reform these provisions to restrict Executive’s use of confidential information and Executive’s ability to
compete with the Company or Bank to the maximum extent, in time, scope of activities and geography, the court finds enforceable. 

  

	 	B.	Executive acknowledges the Bank and the Company will suffer immediate and irreparable harm that will not be compensable by damages alone if Executive repudiates or breaches any of the provisions of Sections 15 or 16 or
threatens or attempts to do so. For this reason, under these circumstances, the Company or the Bank, in addition to and without limitation of any other rights, remedies or damages available to it at law or in equity, will be entitled to obtain
temporary, preliminary and permanent injunctions in order to prevent or restrain the breach, and neither the Company nor the Bank will be required to post a bond as a condition for the granting of this relief. 

 

	18.	Effect of Covenants. Executive specifically acknowledges the receipt of adequate consideration for the covenants contained in Sections 15 and 16 and that the Company and the Bank are entitled to require Executive
to comply with these Sections. These Sections will survive termination of this Agreement. Executive represents that if Executive’s employment is terminated, whether voluntarily or involuntarily, Executive has experience and capabilities
sufficient to enable Executive to obtain employment in areas which do not violate this Agreement and that the Company’s or Bank’s enforcement of a remedy by way of injunction will not prevent Executive from earning a livelihood.

  

	19.	Company Payment of Executive Legal Fees. The Company will reimburse Executive for the reasonable legal fees incurred by Executive in reviewing and finalizing this Agreement. Such reimbursement will be made within
a reasonable amount of time following Executive’s presentation of an invoice for the legal fees to the Company. 

  
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	20.	Jury Waiver. THE PARTIES TO THIS AGREEMENT HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT,
OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER VERBAL OR WRITTEN) OR ACTION OF EITHER PARTY OR ANY EXERCISE BY ANY PARTY OF THEIR RESPECTIVE RIGHTS UNDER THIS AGREEMENT (INCLUDING, WITHOUT LIMITATION, ANY ACTION TO RESCIND OR CANCEL
THIS AGREEMENT, AND ANY CLAIM OR DEFENSE ASSERTING THAT THIS AGREEMENT WAS FRAUDULENTLY INDUCED OR IS OTHERWISE VOID OR VOIDABLE). 

  

	21.	Miscellaneous Provisions. 

  

	 	A.	Entire Agreement. This Agreement constitutes the entire understanding and agreement between the parties concerning its subject matter and supersedes all prior agreements, correspondence, representations, or
understandings between the parties relating to its subject matter. 

  

	 	B.	Binding Effect. This Agreement will bind and inure to the benefit of the Company and its subsidiaries and their successors and assigns. Subject to the limitation on assignment set forth in Section 20.E, this
Agreement will bind and inure to the benefit of Executive and Executive’s heirs, legal representatives, successors and assigns. 

  

	 	C.	Litigation Expenses. In the event of any dispute or legal or equitable action arising from this Agreement, the prevailing party shall be entitled to all of its out-of-pocket expenses and costs including, without
limitation, reasonable attorneys’ fees and costs. 

  

	 	D.	Waiver. The failure of any party to insist upon strict performance of any of the terms and provisions of this Agreement shall not be construed as a waiver or relinquishment of any such terms or conditions or of
any other term or condition and the same shall be and remain in full force and effect. Any waiver by a party of its rights under this Agreement must be written and signed by the party waiving its rights. A party’s waiver of the other
party’s breach of any provision of this Agreement will not operate as a waiver of any other breach by the breaching party. 

  

	 	E.	Assignment. The services to be rendered by Executive under this Agreement are unique and personal. Accordingly, Executive may not assign any of Executive’s rights or duties under this Agreement. Any such
assignment or attempted assignment shall be void. 

  

	 	F.	Amendment. This Agreement may be modified only through a written instrument signed by all parties to this Agreement. 

  
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	 	G.	Severability. The provisions of this Agreement are severable. The invalidity of any provision will not affect the validity of other provisions of this Agreement. 

 

	 	H.	Governing Law and Venue. This Agreement will be governed by and construed in accordance with Montana law, except to the extent that certain regulatory matters may be governed by federal law. The parties must
bring any legal proceeding based on, arising out of, under or in connection with this Agreement in Flathead County, Montana. 

  

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

  

	 	J.	Attorney Representation. Executive is aware that in any contract, including this Agreement, the interests of the parties may conflict and that there may be issues upon which only an attorney is qualified to
advise. Executive acknowledges that Executive was free to and was encouraged to retain an attorney to thoroughly discuss all aspects of this Agreement. Executive further acknowledges that Executive had an opportunity to read and review
this Agreement and that Executive is knowingly, voluntarily and of Executive’s own free will entering into this Agreement. 

We would appreciate it if you would return a signed copy of this Agreement to Mick Blodnick no later than June 15, 2015. 

 

							
	Company:				GLACIER BANCORP, INC.
				
					By:		    /s/ Michael J. Blodnick
							Michael J. Blodnick, Chief Executive Officer
				
					Date:		    6/15/2015
			
	Bank: 				GLACIER BANK
				
					By:		    /s/ Michael J. Blodnick
							Michael Blodnick, Chief Executive Officer
				
					Date:		    6/15/2015
			
	Executive:				
					     /s/ Randall Chesler

					Randall Chesler
				
					Date:		    June 18, 2015

  
 16EXHIBIT 10.1

 

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES PURCHASE AGREEMENT (the “Agreement”), dated as of June 17, 2015, by and between Wisdom Homes of America Inc.,Nevada corporation, with headquarters located at 500 N NE 323 Loop, Tyler TX, 75708 (the “Company”) and GW Holdings Group, LLC, a New York Limited Liability Company with its address at 137 Montague Street, Suite 291, Brooklyn, NY 11201 (the “Buyer”).

 

 

WHEREAS:

 

A.  The Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended (the “1933 Act”);

 

B.  Buyer desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement an 8% convertible note of the Company, in the form attached hereto as Exhibit A in the aggregate principal amount of $30,000.00 (the “Note”), convertible into shares of common stock after six (6) months from the issuance date, $0.001 par value per share, of the Company (the “Common Stock”), upon the terms and subject to the limitations and conditions set forth in such Note.

 

C.  The Buyer wishes to purchase, upon the terms and conditions stated in this Agreement, such principal amount of Note as is set forth immediately below its name on the signature pages hereto; and

 

NOW THEREFORE, the Company and the Buyer severally (and not jointly) hereby agree as follows:

 

1.  Purchase and Sale of Note.

 

a. Purchase of Note. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the Buyer agrees to purchase from the Company such principal amount of Note as is set forth immediately below the Buyer’s name on the signature pages hereto.

 

b.  Form of Payment. On the Closing Date (as defined below), (i) the Buyer shall pay the purchase price for the Note to be issued and sold to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately available funds to the Company, in accordance with the Company’s written wiring instructions, against delivery of the Note in the principal amount equal to the Purchase Price as is set forth immediately below the Buyer’s name on the signature pages hereto, and (ii) the Company shall deliver such duly executed Note on behalf of the Company, to the Buyer, against delivery of such Purchase Price.

 

	 
	
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c. Closing Date. The date and time of the first issuance and sale of the Note pursuant to this Agreement (the “Closing Date”) shall be on or about June 17, 2015, or such other mutually agreed upon time. The closing of the transactions contemplated by this Agreement (the “Closing”) shall occur on the Closing Date at such location as may be agreed to by the parties.

  

2.  Buyer’s Representations and Warranties. The Buyer represents and warrants to the Company that:

 

a. Investment Purpose. As of the date hereof, the Buyer is purchasing the Note and the shares of Common Stock issuable upon conversion of or otherwise pursuant to the Note, such shares of Common Stock being collectively referred to herein as the “Conversion Shares” and, collectively with the Note, the “Securities”) for its own account and not with a present view towards the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the 1933 Act; provided, however, that by making the representations herein, the Buyer does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act.

 

b.  Accredited Investor Status. The Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D (an “Accredited Investor”).

 

c. Reliance on Exemptions. The Buyer understands that the Securities are being offered and sold to it in reliance upon specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying upon the truth and accuracy of, and the Buyer’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of the Buyer to acquire the Securities.

 

d.  Information. The Buyer and its advisors, if any, have been, and for so long as the Note remain s outstanding will continue to be, furnished with all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of the Securities which have been requested by the Buyer or its advisors. The Buyer and its advisors, if any, have been, and for so long as the Note remain outstanding will continue to be, afforded the opportunity to ask questions of the Company. Notwithstanding the foregoing, the Company has not disclosed to the Buyer any material nonpublic information and will not disclose such information unless such information is disclosed to the public prior to or promptly following such disclosure to the Buyer. Neither such inquiries nor any other due diligence investigation conducted by Buyer or any of its advisors or representatives shall modify, amend or affect Buyer’s right to rely on the Company’s representations and warranties contained in Section 3 below. The Buyer understands that its investment in the Securities involves a significant degree of risk. The Buyer is not aware of any facts that may constitute a breach of any of the Company's representations and warranties made herein.

  

e. Governmental Review. The Buyer understands that no United States federal or state agency or any other government or governmental agency has passed upon or made any recommendation or endorsement of the Securities.

 

	 
	
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f. Transfer or Re-sale. The Buyer understands that (i) the sale or re-sale of the Securities has not been and is not being registered under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the Securities are sold pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have delivered to the Company, at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in comparable transactions to the effect that the Securities to be sold or transferred may be sold or transferred pursuant to an exemption from such registration, which opinion shall be accepted by the Company, (c) the Securities are sold or transferred to an “affiliate” (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule) (“Rule 144”)) of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance with this Section 2(f) and who is an Accredited Investor, (d) the Securities are sold pursuant to Rule 144, or (e) the Securities are sold pursuant to Regulation S under the 1933 Act (or a successor rule) (“Regulation S”), and the Buyer shall have delivered to the Company, at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in corporate transactions, which opinion shall be accepted by the Company; (ii) any sale of such Securities made in reliance on Rule 144 may be made only in accordance with the terms of said Rule and further, if said Rule is not applicable, any re-sale of such Securities under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other person is under any obligation to register such Securities under the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder (in each case). Notwithstanding the foregoing or anything else contained herein to the contrary, the Securities may be pledged as collateral in connection with a bona fide margin account or other lending arrangement.

 

g.  Legends. The Buyer understands that the Note and, until such time as the Conversion Shares have been registered under the 1933 Act may be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular date that can then be immediately sold, the Conversion Shares may bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of the certificates for such Securities):

 

“NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

The legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security upon which it is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for sale under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) such holder provides the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Security may be made without registration under the 1933 Act, which opinion shall be accepted by the Company so that the sale or transfer is effected. The Buyer agrees to sell all Securities, including those represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements, if any. In the event that the Company does not accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, within 2 business days, it will be considered an Event of Default under the Note.

 

h.  Authorization; Enforcement. This Agreement has been duly and validly authorized. This Agreement has been duly executed and delivered on behalf of the Buyer, and this Agreement constitutes a valid and binding agreement of the Buyer enforceable in accordance with its terms.

 

i. Residency. The Buyer is a resident of the jurisdiction set forth immediately below the Buyer’s name on the signature pages hereto.

 

	 
	
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3.  Representations and Warranties of the Company. The Company represents and warrants to the Buyer that:

 

a. Organization and Qualification. The Company and each of its subsidiaries, if any, is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority (corporate and other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used, operated and conducted.

 

b.  Authorization; Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement, the Note and to consummate the transactions contemplated hereby and thereby and to issue the Securities, in accordance with the terms hereof and thereof, (ii) the execution and delivery of this Agreement, the Note by the Company and the consummation by it of the transactions contemplated hereby and thereby (including without limitation, the issuance of the Note and the issuance and reservation for issuance of the Conversion Shares issuable upon conversion or exercise thereof) have been duly authorized by the Company’s Board of Directors and no further consent or authorization of the Company, its Board of Directors, or its shareholders is required, (iii) this Agreement has been duly executed and delivered by the Company by its authorized representative, and such authorized representative is the true and official representative with authority to sign this Agreement and the other documents executed in connection herewith and bind the Company accordingly, and (iv) this Agreement constitutes, and upon execution and delivery by the Company of the Note, each of such instruments will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms.

 

c. Issuance of Shares. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note in accordance with its respective terms, will be validly issued, fully paid and non-assessable, and free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Company and will not impose personal liability upon the holder thereof.

 

d.  Acknowledgment of Dilution. The Company understands and acknowledges the potentially dilutive effect to the Common Stock upon the issuance of the Conversion Shares upon conversion of the Note. The Company further acknowledges that its obligation to issue Conversion Shares upon conversion of the Note in accordance with this Agreement, the Note is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company.

 

e. No Conflicts. The execution, delivery and performance of this Agreement, the Note by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance and reservation for issuance of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Certificate of Incorporation or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a default (or an event which with notice or lapse of time or both could become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which the Company or any of its subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws and regulations and regulations of any self-regulatory organizations to which the Company or its securities are subject) applicable to the Company or any of its subsidiaries or by which any property or asset of the Company or any of its subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as would not, individually or in the aggregate, have a material adverse effect). All consents, authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof. The Company is not in violation of the listing requirements of the Over-the-Counter Quotations Bureau (the “OTCQB”) and does not reasonably anticipate that the Common Stock will be delisted by the OTCQB in the foreseeable future, nor are the Company’s securities “chilled” by FINRA. The Company and its subsidiaries are unaware of any facts or circumstances, which might give rise to any of the foregoing.

 

	 
	
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f. Absence of Litigation. Except as disclosed in the Company’s public filings, there is no action, suit, claim, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company or any of its subsidiaries, threatened against or affecting the Company or any of its subsidiaries, or their officers or directors in their capacity as such, that could have a material adverse effect. The Company and its subsidiaries are unaware of any facts or circumstances, which might give rise to any of the foregoing.

 

g. Acknowledgment Regarding Buyer’ Purchase of Securities. The Company acknowledges and agrees that the Buyer is acting solely in the capacity of arm’s length purchasers with respect to this Agreement and the transactions contemplated hereby. The Company further acknowledges that the Buyer is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to this Agreement and the transactions contemplated hereby and any statement made by the Buyer or any of its respective representatives or agents in connection with this Agreement and the transactions contemplated hereby is not advice or a recommendation and is merely incidental to the Buyer’ purchase of the Securities. The Company further represents to the Buyer that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation of the Company and its representatives.

 

h. No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has directly or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances that would require registration under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities to the Buyer will not be integrated with any other issuance of the Company’s securities (past, current or future) for purposes of any shareholder approval provisions applicable to the Company or its securities.

 

i. Title to Property. The Company and its subsidiaries have good and marketable title in fee simple to all real property and good and marketable title to all personal property owned by them which is material to the business of the Company and its subsidiaries, in each case free and clear of all liens, encumbrances and defects except such as are described in the Company’s public filings or such as would not have a material adverse effect. Any real property and facilities held under lease by the Company and its subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as would not have a material adverse effect.

 

j. Bad Actor. No officer or director of the Company would be disqualified under Rule 506(d) of the Securities Act as amended on the basis of being a "bad actor" as that term is established in the September 19, 2013 Small Entity Compliance Guide published by the Securities and Exchange Commission.

 

k. Breach of Representations and Warranties by the Company. If the Company materially breaches any of the representations or warranties set forth in this Section 3, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered an Event of Default under the Note.

 

	 
	
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4.  COVENANTS.

 

a. Expenses. At the Closing, the Company shall reimburse Buyer for expenses incurred by them in connection with the negotiation, preparation, execution, delivery and performance of this Agreement and the other agreements to be executed in connection herewith (“Documents”), including, without limitation, reasonable attorneys’ and consultants’ fees and expenses, transfer agent fees, fees for stock quotation services, fees relating to any amendments or modifications of the Documents or any consents or waivers of provisions in the Documents, fees for the preparation of opinions of counsel, escrow fees, and costs of restructuring the transactions contemplated by the Documents. When possible, the Company must pay these fees directly, otherwise the Company must make immediate payment for reimbursement to the Buyer for all fees and expenses immediately upon written notice by the Buyer or the submission of an invoice by the Buyer. The Company’s obligation with respect to this transaction is to reimburse Buyer’s expenses shall be $1,500 in legal fees, which shall be deduced from the Note when funded.

 

b. Listing. The Company shall promptly secure the listing of the Conversion Shares upon each national securities exchange or automated quotation system, if any, upon which shares of Common Stock are then listed (subject to official notice of issuance) and, so long as the Buyer owns any of the Securities, shall maintain, so long as any other shares of Common Stock shall be so listed, such listing of all Conversion Shares from time to time issuable upon conversion of the Note. The Company will obtain and, so long as the Buyer owns any of the Securities, maintain the listing and trading of its Common Stock on the OTCQB or any equivalent replacement market, including the OTC Pinks as long as the Company continues to file reports under the Securities Exchange Act of 1934, the Nasdaq National Market (“Nasdaq”), the Nasdaq SmallCap Market (“Nasdaq SmallCap”), the New York Stock Exchange (“NYSE”), or the American Stock Exchange (“AMEX”) and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the Financial Industry Regulatory Authority (“FINRA”) and such exchanges, as applicable. The Company shall promptly provide to the Buyer copies of any notices it receives from the OTCQB and any other markets on which the Common Stock is then listed regarding the continued eligibility of the Common Stock for listing on such markets.

 

c. Corporate Existence. So long as the Buyer beneficially owns any Note, the Company shall maintain its corporate existence and shall not sell all or substantially all of the Company’s assets, except in the event of a merger or consolidation or sale of all or substantially all of the Company’s assets, where the surviving or successor entity in such transaction (i) assumes the Company’s obligations hereunder and under the agreements and instruments entered into in connection herewith and (ii) is a publicly traded corporation whose Common Stock is listed for trading on the OTCQB, OTC Pinks (as a fully reporting issuer), Nasdaq, Nasdaq SmallCap, NYSE or AMEX.

 

d. No Integration. The Company shall not make any offers or sales of any security (other than the Securities) under circumstances that would require registration of the Securities being offered or sold hereunder under the 1933 Act or cause the offering of the Securities to be integrated with any other offering of securities by the Company for the purpose of any stockholder approval provision applicable to the Company or its securities.

 

	 
	
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e. Breach of Covenants. If the Company materially breaches any of the covenants set forth in this Section 4, and in addition to any other remedies available to the Buyer pursuant to this Agreement, it will be considered an Event of Default under the Note.

 

5.  Governing Law; Miscellaneous.

 

a. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of New York or in the federal courts located in the state and county of New York. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Company and Buyer waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision, which may prove invalid or unenforceable under any law, shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Transaction Document by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

b.  Counterparts; Signatures by Facsimile. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party. This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

c. Headings. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the interpretation of, this Agreement.

 

d. Severability. In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision hereof.

 

	 
	
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e. Entire Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement may be waived or amended other than by an instrument in writing signed by the majority in interest of the Buyer.

 

f. Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:

 

If to the Company, to:

 

Wisdom Homes of America, Inc.

500 N NE 323 Loop

Tyler, TX 75708

Attention: James Pakulis

Email: jpakulis@searchcore.com

 

With a copy to:

 

Clyde Snow & Sessions, P.C.

201 South Main Street, Suite 1300

Salt Lake City, UT 84111

Attn: Brian A. Lebrecht

 

If to the Holder:

 

GW Holdings Group, LLC

137 Montague Street, Suite 291

Brooklyn, NY 11201

Attention: Yosef Gorowitz – Manager

Email: inbox@gwholdingsgroup.com

 

	 
	
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Each party shall provide notice to the other party of any change in address.

 

g. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns. Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the prior written consent of the other. Notwithstanding the foregoing, subject to Section 2(f), the Buyer may assign its rights hereunder to any person that purchases Securities in a private transaction from the Buyer or to any of its “affiliates,” as that term is defined under the 1934 Act, without the consent of the Company.

 

h. Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

 

i. Survival. The representations and warranties of the Company and the agreements and covenants set forth in this Agreement shall survive the closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the Buyer. The Company agrees to indemnify and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage arising as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties and covenants set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as they are incurred.

 

j. Further Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

k. No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

 

l. Remedies. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Buyer by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Agreement, that the Buyer shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing economic loss and without any bond or other security being required.

 

[remainder of page intentionally left blank; signature page to follow]

 

	 
	
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IN WITNESS WHEREOF, the undersigned Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.

 

 

	 	Wisdom Homes of America, Inc.	 
	 	  	 	 
		By:	/s/ James Pakulis 	 
	 	 	James Pakulis	 
	 	 	Chief Executive Officer	 
	 	 	 	 
		
GW Holdings Group, LLC.

	
		
   

	
		By:	/s/ Yosef Gorowitz	
		Name:	Yosef Gorowitz	
		Title:	Manager	
		 	 	

 

AGGREGATE SUBSCRIPTION AMOUNT:

 

	Aggregate Principal Amount of Note: 	
$30,000.00

	less $1,500.00 in legal fees	
 

 

The balance of $28,500.00 shall be wired to Wisdom Homes of America, Inc. in accordance with the wire transfer instructions provided by Wisdom Homes of America, Inc.

 

	 
	
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EXHIBIT A

144 NOTE - $30,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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