Document:

rtnb_ex102.htm

Exhibit 10.2

 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS WARRANT 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 TO THE REGISTERED HOLDER (IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.

Warrant No.: 2015-_____ Number of Shares:  _______

Date of Issuance: October __, 2015 (subject to adjustment)

 

  

ROOT9B TECHNOLOGIES, INC.

A Delaware Corporation

Warrant

root9B Technologies, Inc., a Delaware corporation (the “Company”), for value received, hereby certifies that _____________ (the “Initial Holder”), or its registered assigns (the Initial Holder or such registered assigns shall be referred to as the “Registered Holder”), is entitled, subject to the terms set forth below, to purchase from the Company at any time on or after the Exercise Date (as hereinafter defined) and on or before the Expiration Date (as hereinafter defined), in whole or in part, _____________ shares (as adjusted from time to time pursuant to the provisions of this Warrant) of the Company’s common stock, $0.001 par value per share (“Common Stock”), at an Exercise Price equal to $1.50 per share (the “Exercise Price”).  The shares purchasable upon exercise of this Warrant are sometimes hereinafter referred to as the “Warrant Stock”.  “Exercise Date” means any date subsequent to the issuance date hereof and prior to the Expiration Date on which the Registered Holder elects by written notice to the Company to exercise this Warrant.

 

1. Exercise.

 

(a) Manner of Exercise.  This Warrant may be exercised by the Registered Holder, in whole or in part with the purchase/exercise form appended hereto as Exhibit A (the “Notice of Exercise”) duly executed by such Registered Holder or by such Registered Holder’s duly authorized attorney, at the principal office of the Company, or at such other office or agency as the Company may designate in writing, accompanied by payment in full of the Exercise Price payable in respect of the number of shares of Warrant Stock purchased upon such exercise.  The Exercise Price may be paid by cash, check, or wire transfer in immediately available funds.

 

(b) Effective Time of Exercise.  Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which this Warrant shall have been surrendered to the Company as provided in Section 1(a) above.  At such time, the person or persons in whose name or names any certificates for Warrant Stock shall be issuable upon such exercise as provided in Section 1(c) below shall be deemed to have become the holder or holders of record of the Warrant Stock represented by such certificates.

 

(c) Delivery to Holder.  As soon as practicable after the exercise of this Warrant, in whole or in part, and in any event within ten (10) calendar days thereafter, the Company at its expense will cause to be issued in the name of, and delivered to, the Registered Holder, or as such Registered Holder (upon payment by such Registered Holder of any applicable transfer taxes) may direct, certificates for Warrant Stock purchased hereunder which shall be transmitted by the Company’s transfer agent to the Registered Holder by (i) crediting the account of the Registered Holder’s broker with the Depository Trust Company through its Deposit Withdrawal Agent Commission (“DWAC”) system if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the resale of the Warrant Stock by the Holder or (B) the Warrant Stock is eligible for resale without volume or manner-of-sale limitations pursuant to Rule 144 of the Act, as amended from time to time, or any similar rule or regulation hereafter adopted by the SEC having substantially the same effect as such Rule (“Rule 144”), or (ii) if the conditions specified in (i)(A) or (i)(B) are not satisfied, by physical delivery to the address specified by the Registered Holder in the Notice of Exercise.

 

  

  

  

 

(d) Delivery of New Warrants Upon Exercise.  If this Warrant shall have been exercised in part, the Company shall, at the request of the Registered Holder and upon surrender of this Warrant, at the time of delivery of the certificate or certificates representing the Warrant Stock, deliver to the Registered Holder a new Warrant evidencing the rights of Registered Holder to purchase the unpurchased Warrant Stock called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant. The Registered Holder shall not be required to deliver the original of this Warrant in order to effect an exercise hereunder.

 

2. Adjustments.

 

(a) Stock Splits and Dividends.  If outstanding shares of the Company’s Common Stock shall be subdivided into a greater number of shares or a dividend in Common Stock shall be paid in respect of Common Stock, then the Exercise Price in effect immediately prior to such subdivision or at the record date of such dividend shall simultaneously with the effectiveness of such subdivision or immediately after the record date of such dividend be proportionately reduced.  If outstanding shares of Common Stock shall be combined into a smaller number of shares, then the Exercise Price in effect immediately prior to such combination shall, simultaneously with the effectiveness of such combination, be proportionately increased.  When any adjustment is required to be made in the Exercise Price, the number of shares of Warrant Stock purchasable upon the exercise of this Warrant shall be changed to the number determined by dividing (i) an amount equal to the number of shares issuable upon the exercise of this Warrant immediately prior to such adjustment, multiplied by the Exercise Price in effect immediately prior to such adjustment, by (ii) the Exercise Price in effect immediately after such adjustment.

 

(b) Reclassification, Etc.  In case of any reclassification or change of the outstanding securities of the Company or of any reorganization of the Company (or any other corporation the stock or securities of which are at the time receivable upon the exercise of this Warrant) or any similar corporate reorganization on or after the date hereof, then and in each such case the Registered Holder, upon the exercise hereof at any time after the consummation of such reclassification, change, reorganization, merger or conveyance, shall be entitled to receive, in lieu of the stock or other securities and property receivable upon the exercise hereof prior to such consummation, the stock or other securities or property to which such Registered Holder would have been entitled upon such consummation if such Registered Holder had exercised this Warrant immediately prior thereto, all subject to further adjustment as provided in Section 2(a); and in each such case, the terms of this Section 2 shall be applicable to the shares of stock or other securities properly receivable upon the exercise of this Warrant after such consummation.

 

(c)      Adjustment Certificate.  When any adjustment is required to be made in the Warrant Stock or the Exercise Price pursuant to this Section 2, the Company shall promptly mail to the Registered Holder a certificate setting forth (i) a brief statement of the facts requiring such adjustment, (ii) the Exercise Price after such adjustment and (iii) the kind and amount of stock or other securities or property into which this Warrant shall be exercisable after such adjustment.

 

3. Transfers.

 

(a) Unregistered Security.  Each Registered Holder acknowledges that this Warrant and the Warrant Stock have not been registered under the Securities Act of 1933, as amended (the “Act”), and agrees not to sell, pledge, distribute, offer for sale, transfer or otherwise dispose of this Warrant or any Warrant Stock issued upon its exercise in the absence of (i) an effective registration statement under the Act as to this Warrant or such Warrant Stock and registration or qualification of this Warrant or such Warrant Stock under any applicable U.S. federal or state securities law then in effect or (ii) an opinion of counsel, reasonably satisfactory to the Company, that such registration or qualification is not required.  Each certificate or other instrument for Warrant Stock issued upon the exercise of this Warrant shall bear a legend substantially to the foregoing effect.

 

  

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(b) Transferability.  Subject to the provisions of Section 3(a) hereof, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of the Warrant with a properly executed assignment (in the form of Exhibit B hereto) at the principal office of the Company. The Company shall, upon receipt of a transfer notice and appropriate documentation, register any transfer on the Company’s warrant register; provided, however, that the Company may require, as a condition to such transfer, an opinion reasonably satisfactory to the Company that said transfer does not require registration pursuant one or more exemptions provided under the Act.

 

(c) Warrant Register.  The Company will maintain a register containing the names and addresses of the Registered Holders of this Warrant.  Until any transfer of this Warrant is made in the warrant register, the Company may treat the Registered Holder of this Warrant as the absolute owner hereof for all purposes; provided, however, that if this Warrant is properly assigned in blank, the Company may (but shall not be required to) treat the bearer hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary.  Any Registered Holder may change such Registered Holder’s address as shown on the warrant register by written notice to the Company requesting such change.

 

4. No Impairment.  The Company will not, by amendment of its charter or through reorganization, consolidation, merger, dissolution, sale of assets or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the holder of this Warrant against impairment.

 

5. Termination.  This Warrant (and the right to purchase securities upon exercise hereof) shall terminate five (5) years from the date of issuance of this Warrant (the “Expiration Date”).

 

6. Notices of Certain Transactions.  In case:

 

(a) the Company shall take a record of the holders of its Common Stock (or other stock or securities at the time deliverable upon the exercise of this Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right, to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right, or

 

(b) of any reclassification of the capital stock of the Company, or

 

(c) of the voluntary or involuntary dissolution, liquidation or winding-up of the Company ((a), (b) and (c) of this Section 6 being referred to herein as a “Liquidation Event”), then, and in each such case, the Company will mail or cause to be mailed to the Registered Holder of this Warrant a notice specifying, as the case may be, (i) the date on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, or (ii) the effective date on which such reclassification, dissolution, liquidation or winding-up is to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock (or such other stock or securities at the time deliverable upon such reclassification, dissolution, liquidation or winding-up) are to be determined.  Such notice shall be mailed at least ten (10) days prior to the record date or effective date for the event specified in such notice.  Failure to so notify a Registered Holder shall not invalidate any such action.

 

7. Reservation of Stock.  The Company will at all times reserve and keep available out of its authorized but unissued stock, solely for the issuance and delivery upon the exercise of this Warrant and other similar Warrants, such number of its duly authorized shares of Common Stock as from time to time shall be issuable upon the exercise of this Warrant and other similar Warrants. All of the shares of Common Stock issuable upon exercise of this Warrant and other similar Warrants, when issued and delivered in accordance with the terms hereof and thereof, will be duly authorized, validly issued, fully paid and non-assessable, subject to no lien or other encumbrance other than restrictions on transfer arising under applicable securities laws and restrictions imposed by Section 3 hereof.

 

  

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8. Exchange of Warrants.  Upon the surrender by the Registered Holder of any Warrant or Warrants, properly endorsed, to the Company at the principal office of the Company, the Company will, subject to the provisions of Section 3 hereof, issue and deliver to or upon the order of such Registered Holder, at the Company’s expense, a new Warrant or Warrants of like tenor, in the name of such Registered Holder or as such Registered Holder (upon payment by such Registered Holder of any applicable transfer taxes) may direct, calling in the aggregate on the face or faces thereof for the number of shares of Common Stock called for on the face or faces of the Warrant or Warrants so surrendered.

 

9. Replacement of Warrants.  Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement (with surety if reasonably required) in an amount reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor.

 

10. 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, electronic mail 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, electronic mail or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, if sent by electronic mail with confirmed receipt, 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.

If to the Company:               root9B Technologies, Inc.

4521 Sharon Road #300

Charlotte, NC  28211-3627

                                Attn:  Joseph J. Grano, Jr., Chief Executive Officer

	
If to the Registered Holder:

	
At the address provided by the Registered Holder.

11. No Rights as Stockholder.  Until the exercise of this Warrant, the Registered Holder of this Warrant shall not have or exercise any rights by virtue hereof as a stockholder of the Company.

 

12. Representations of Registered Holder.  The Registered Holder hereby represents and acknowledges to the Company that:

 

(a) It understands that this Warrant and the Warrant Stock will be “restricted securities” as such term is used in the rules and regulations under the Act and that such securities have not been and will not be registered under the Act or any state securities law, and that such securities must be held indefinitely unless registration is effected or transfer can be made pursuant to appropriate exemptions;

 

(b) the Registered Holder has read, and fully understands, the terms of this Warrant set forth on its face and the attachments hereto, including the restrictions on transfer contained herein;

 

(c) the Registered Holder is purchasing for investment for its own account and not with a view to or for sale in connection with any distribution of this Warrant and the Warrant Stock and it has no intention of selling such securities in a public distribution in violation of the federal securities laws or any applicable state securities laws; provided that nothing contained herein will prevent the Registered Holder from transferring such securities in compliance with the terms of this Warrant and the applicable federal and state securities laws; and

 

  

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(d) the Company may affix the following legend (in addition to any other legend(s), if any, required by applicable state corporate and/or securities laws) to certificates for shares issued upon exercise of this Warrant:

 

“These securities have not been registered under the Securities Act of 1933, as amended.  They may not be sold, offered for sale, pledged or hypothecated in the absence of a registration statement in effect with respect to the securities under such Act or an opinion of counsel satisfactory to the Company that such registration is not required or unless sold pursuant to Rule 144 of such Act.”

 

13. No Fractional Shares.  No fractional shares will be issued in connection with any exercise hereunder.  In lieu of any fractional shares which would otherwise be issuable, the Company shall pay cash equal to the product of such fraction multiplied by the fair market value of one such share on the date of exercise, as determined in good faith by the Company’s Board of Directors.

 

14. Amendment or Waiver.  Any term of this Warrant may be amended or waived upon written consent of the Company and the Registered Holder.

 

15. Headings.  The headings in this Warrant are for purposes of reference only and shall not limit or otherwise affect the meaning of any provision of this Warrant.

 

16. Governing Law.  This Warrant shall be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of law.

 

 [Remainder of Page Intentionally Left Blank]

 

  

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IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed and delivered by its authorized officer as of the date first above written.

 

 

	 	
ROOT9B TECHNOLOGIES, INC. , a Delaware corporation

	 
	 	 	 	 
	
 

	
Signed:    

	/s/ 	 
	 	By:    	Name 	 
	 	Title:     	Title 	 
	 	 	 	 

  

Company Address:              root9B Technologies, Inc.

4521 Sharon Road #300

Charlotte, NC  28211-3627

                                Attn:  Joseph J. Grano, Jr., Chief Executive Officer

  

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EXHIBIT A

 

PURCHASE/EXERCISE FORM

 

To:           ROOT9B TECHNOLOGIES, INC. Dated:_________________

 

The undersigned holder, pursuant to the provisions set forth in the attached Warrant No. ___, hereby exercises the right to purchase _________________ shares of Common Stock covered by such Warrant.  Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

 

1.           Form of Exercise Price.  The undersigned holder intends that payment of the Exercise Price shall be made as:

 

	
  

	
____________

	
a “Cash Exercise” with respect to _________________ shares of Warrant Stock

 

2.           Payment of Exercise Price.  The Holder shall pay the aggregate Exercise Price in the sum of $___________________ to the Company in accordance with the terms of the Warrant.

 

The undersigned acknowledges that it has reviewed the representations and warranties contained in Section 12 of the Warrant and by its signature below hereby makes such representations and warranties to the Company.

 

Signature:                                                                      

 

Name (print):                                                                 

 

Title (if applic.)                                                             

 

Company (if applic.):                                                  

 

  

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EXHIBIT B

 

ASSIGNMENT FORM

 

FOR VALUE RECEIVED, _________________________________________ hereby sells, assigns and transfers all of the rights of the undersigned under the attached Warrant No. ___ with respect to the number of shares of Common Stock covered thereby set forth below, to:

 

	

Name of Assignee

	

Address/Fax Number

	

No. of Shares

	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  
	  	  	  

 

Dated:__________________________                               Signature:                                                                     

 

 

Witness:Exhibit 10.1

 

CHANGE
OF CONTROL AGREEMENT 

 

THIS CHANGE
OF CONTROL AGREEMENT (this “Agreement”) is made and entered into as of November 9, 2015 (the “Effective
Date”), by and between Trevor R. Burgess (the “Executive”) and C1 Financial, Inc. (the “Company”),
a Florida corporation.

 

WITNESSETH
THAT: 

 

WHEREAS,
the Company is currently considering undergoing a Change of Control (as defined below in Section 1(b)) pursuant to an Agreement
and Plan of Merger among Bank of the Ozarks, Inc., an Arkansas corporation (the “Buyer”), Bank of the Ozarks,
an Arkansas state banking corporation and wholly-owned subsidiary of the Buyer, the Company and C1 Bank, a Florida state bank
and wholly-owned subsidiary of the Company (as it may be amended from time to time, the “Merger Agreement”;
provided that, to the extent any amendment to the Merger Agreement would adversely affect the rights or obligations of
Executive hereunder, such amendment shall not be taken into account for purposes hereof); and

 

WHEREAS,
the Board of Directors of the Company (the “Board”) has determined to enter into this Agreement to reinforce
and encourage the continued attention and dedication of the Executive to his assigned duties in order to complete a Change of
Control;

 

NOW, THEREFORE,
in consideration of the mutual covenants and agreements set forth below, and for other good and valuable consideration, it is
hereby covenanted and agreed by the Executive and the Company as follows:

 

		1.	Definitions. As
used in this Agreement, the following terms shall have the following meanings:

 

		(a)	“Cause”:

 

(i) the Executive’s
willful and repeated refusal to perform his duties or responsibilities following written notice from the Company; it being
understood that the failure to achieve specified results or generally poor Company performance will not constitute Cause;

 

(ii) commission by the
Executive of embezzlement or actual fraud in the performance of his duties to the Company; or

 

(iii) the Executive’s
indictment for, conviction of, guilty plea or plea of nolo contendere to, a felony or any other criminal charge involving moral
turpitude.

 

Whether “Cause”
exists shall be determined in the sole and good faith discretion of the Board; provided that, any such determination (other
than as relating to the conduct described in clause (iii) above) shall be made pursuant to a resolution duly adopted by the affirmative
vote of not less than a majority of the members of the Board at a meeting of the Board called and held for such purpose (after
reasonable notice is provided to the Executive and the Executive is given an opportunity, together with counsel, to be heard before
the Board), finding that, in the good faith opinion of the Board, the Executive is guilty of the conduct that constitutes “Cause”,
and specifying the particulars thereof in detail.

 

		(b)	“Change of Control”:

 

(i) the occurrence of
the Effective Time (as defined in the Merger Agreement); or

 

(ii) the consummation
of an Acquisition Transaction (as defined in the Merger Agreement), where, (A) (x) after the date of the Merger Agreement and
prior to the

 

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termination thereof, an Acquisition Proposal (as defined in the Merger Agreement) (whether or not related to the
Acquisition Transaction resulting in the Change of Control hereunder) has been made known to senior management of the Company
or has been made directly to its shareholders generally (and not withdrawn) or any Person (as defined in the Merger Agreement)
has publicly announced (and not withdrawn) an Acquisition Proposal (whether or not related to the Acquisition Transaction resulting
in the Change of Control hereunder) and (y) thereafter the Merger Agreement is terminated by (1) either the Buyer or the Company
pursuant to Section 7.01(c) or Section 7.01(f) of the Merger Agreement (without the Requisite Company Shareholder Approval (as
defined in the Merger Agreement) having been obtained) or (2) the Buyer pursuant to ‎Section 7.01(d) or ‎Section 7.01(e)
of the Merger Agreement (but only if the breach of the Merger Agreement by the Company or the Company Bank (as defined in the
Merger Agreement) referred to in such Section 7.01(d) or Section 7.01(e), as applicable, is willful and knowing) and (B) such
Acquisition Transaction is consummated, or an agreement providing for the consummation of such Acquisition Transaction is entered
into, prior to the date that is twelve (12) months after the date of such termination of the Merger Agreement; and provided,
that, for purposes of this ‎clause (ii), all references in the definition of “Acquisition Transaction” in
the Merger Agreement to “20%” shall instead refer to “50%”.

 

		(c)	“Good Reason”:
in the absence of the written consent of the Executive:

 

(i) a diminution in the
Executive’s annual base salary, as is in effect immediately prior to the reduction giving rise to Good Reason;

 

(ii) a material diminution
in the authority, duties or responsibilities of the Executive;

 

(iii) any relocation
of the Executive’s principal place of business to a location more than 15 miles from the Executive’s principal place
of business prior to such relocation; or

 

(iv) any material breach
of this Agreement by the Company.

 

In order to invoke
a termination for Good Reason, the Executive shall provide written notice to the Company of the existence of one or more of the
conditions described in clauses (i) through (iv) within 30 days following the initial existence of such condition or conditions,
specifying in reasonable detail the conditions constituting Good Reason, and the Company shall have 30 days following receipt
of such written notice (the “Company Cure Period”) during which it may remedy the condition if such condition
is reasonably subject to cure. In the event that the Company fails to remedy the condition constituting Good Reason during the
applicable Company Cure Period, the Executive’s “separation from service” (within the meaning of Section 409A
of the Internal Revenue Code of 1986, as amended from time to time, and the rules, regulations and guidance thereunder (the “Code”))
must occur, if at all, within 60 days following such Company Cure Period in order for such termination as a result of such condition
to constitute a termination for Good Reason. Notwithstanding anything to the contrary in this Agreement, a temporary suspension
of the Executive’s duties, authorities, employment or other roles hereunder not in excess of 30 days by the Board based
upon the Board’s good faith judgment that such suspension is warranted pending investigation of any material allegations
relating to the conduct of the Executive or the conduct of Company which may implicate the Executive shall not give rise to Good
Reason.

 

		2.	Obligations of the Company
upon a Change of Control or Qualifying Termination.

 

		(a)	In connection with a Change
of Control, the Company shall pay to the Executive a total cash payment of $3,300,000 (the “Transaction Payment”)
as follows:

 

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(i)
Promptly following the execution of the Merger Agreement (but in no event later than December 31, 2015), a lump-sum cash payment
of $800,000; provided that, the Executive shall reimburse the after-tax amount of such cash payment to the Company on the
later of (x) the termination of the Merger Agreement and (y) the Board’s good faith determination that it is not possible
for a Change of Control to occur; and

 

(ii)
Subject to the Executive’s continued employment with the Company through the effective date of the Change of Control and,
within 15 days of such effective date, the Executive’s execution and delivery to the Company of a release of claims against
the Company and its affiliates in a form that is mutually satisfactory to the Company and the Executive (the “Release”)
and non-revocation of such Release, the Company shall pay to the Executive within 20 days of such effective date (but in no event
later than March 15 of the year following the Change of Control) a lump-sum cash payment of $2,500,000.

 

(c)
If the Executive’s employment terminates prior to a Change of Control due to either a termination by the Company without
Cause or a termination by the Executive for Good Reason (in either case, a “Qualifying Termination”), and the
Executive shall have executed and delivered to the Company within 15 days of the Qualifying Termination the Release and not revoked
such Release, the Company shall pay to the Executive within 20 days of the effective date of the Change of Control (but in no
event later than March 15 of the year following the Change of Control) the Transaction Payment.

 

(d)
The payments and benefits provided under this Section 2 shall be in full satisfaction of the Company’s obligations to the
Executive in connection with a Change of Control or Qualifying Termination, and in no event shall the Executive be entitled to
severance benefits (or other damages in respect of a termination of employment or claim for breach of this Agreement) beyond those
specified in this Section 2 in the case of a Change of Control or Qualifying Termination. For the avoidance of doubt, the Transaction
Payment shall not be paid more than once.

 

3.     No
Mitigation; No Offset. The Company’s obligation to make the payments provided for in this Agreement and otherwise to
perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right
or action which the Company may have against the Executive or others. 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 of the provisions of
this Agreement and, such amounts shall not be reduced whether or not the Executive obtains other employment.

 

4.     Section
409A. It is intended that this Agreement shall comply with the provisions of Section 409A of the Code and the Treasury regulations
relating thereto, or an exemption to Section 409A of the Code. Any payments that qualify for the “short-term deferral”
exception or another exception under Section 409A of the Code shall be paid under the applicable exception. For purposes of the
limitations on nonqualified deferred compensation under Section 409A of the Code, each payment of compensation under this Agreement
shall be treated as a separate payment of compensation. If the period during which a payment must be made under Section 2 of this
Agreement begins in one taxable year and ends in a second taxable year, such payment shall be made in the second taxable year
to the extent required to avoid any tax, interest or penalties under Section 409A of the Code.

 

		5.	Code Section 280G.

 

(a)
If any Transaction Payment received by Executive pursuant to Section 2 of this Agreement

 

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(or
any payments that the Executive would receive from the Company or otherwise in connection with a Change of Control) is subject
to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Executive shall be entitled
to receive an additional payment (a “Gross-Up Payment”) in an amount such that after payment by the Executive
of all taxes (including any interest or penalties imposed with respect to such taxes), including, without limitation, any income
taxes (and any interest and penalties imposed with respect thereto) and the Excise Tax imposed upon the Gross-Up Payment, the
Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the payments.

 

(b)
It is possible that after the determinations and selections made pursuant to this Section 5 the Executive will receive Transaction
Payments and a Gross-Up Payment that are, in the aggregate, either more or less than the limitations provided in Section 5(a)
(hereafter referred to as an “Excess Payment” or “Underpayment”, respectively). If it is
established, pursuant to a final determination of a court or an Internal Revenue Service proceeding that has been finally and
conclusively resolved, that an Excess Payment has been made, then the Executive shall refund the Excess Payment to the Company
promptly on demand, together with an additional payment in an amount equal to the product obtained by multiplying the Excess Payment
times the applicable annual federal rate (as determined in and under Section 1274(d) of the Code) times a fraction whose numerator
is the number of days elapsed from the date of the Executive’s receipt of such Excess Payment through the date of such refund
and whose denominator is 365. In the event that it is determined (i) by arbitration under Section 7(d) below, (ii) by a court
of competent jurisdiction or (iii) by the Accounting Firm (as defined below) upon request by the Executive or the Company, that
an Underpayment has occurred, the Company shall pay an amount equal to the Underpayment to the Executive within 10 days of such
determination together with an additional payment in an amount equal to the product obtained by multiplying the Underpayment times
the applicable annual federal rate (as determined in and under Section 1274(d) of the Code) times a fraction whose numerator is
the number of days elapsed from the date of the Underpayment through the date of such payment and whose denominator is 365.

 

(c)
For purposes of making all determinations required to be made under this Section 5, (i) the value of any noncash benefits or any
deferred payment or benefit shall be determined by Golden Parachute Tax Solutions, LLC (the “Accounting Firm”)
in accordance with the principles of Sections 280G(d)(3) and (4) of the Code and applicable guidance under Treasury Regulation
Section 1.280G-1, and U.S. Treasury Department rulings and releases; and (ii) for purposes of determining the amount of any Gross-Up
Payment, the Executive shall be deemed to pay federal income tax at the highest marginal rates applicable to individuals in the
calendar year in which any such Gross-Up Payment is to be made and deemed to pay state and local income taxes at the highest effective
rates applicable to individuals in the state or locality of the Executive’s residence or place of employment in the calendar
year in which any such Gross-Up Payment is to be made, net of the maximum reduction in federal income taxes that can be obtained
from deduction of such state and local taxes, taking into account limitations applicable to individuals subject to federal income
tax at the highest marginal rates. All determinations made by the Accounting Firm under this Section 5 shall be final and binding
on the Company and its successors. All fees and expenses of the Accounting Firm shall be borne solely by the Company.

 

		6.	Successors.

 

(a)
This Agreement is personal to the Executive and without the prior written consent of the Company shall not be assignable by the
Executive. This Agreement and any rights and benefits hereunder shall inure to the benefit of and be enforceable by the Executive’s
legal representatives, heirs or legatees. This Agreement and any rights and benefits hereunder shall inure to the benefit of and
be binding upon the Company and its successors and assigns.

 

    4 

     

    

 

(b)
The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to assume expressly and agree to satisfy all of the obligations
under this Agreement in the same manner and to the same extent that the Company would be required to satisfy such obligations
if no such succession had taken place. As used in this Agreement, “Company” shall mean the Company as hereinbefore
defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation
of law, or otherwise.

 

		7.	Miscellaneous.

 

(a)
Amendment. This Agreement may not be amended or modified otherwise than by a written agreement executed by the parties
hereto or their respective successors and legal representatives.

 

(b)
Withholding. The Company may withhold from any amounts payable under this Agreement such federal, state, local or foreign
taxes as shall be required to be withheld pursuant to any applicable law or regulation.

 

(c)
Applicable Law. The provisions of this Agreement shall be construed in accordance with the internal laws of the State of
Florida, without regard to the conflict of law provisions of any state.

 

(d)
Dispute Resolution. Any controversy or claim arising out of or relating to this Agreement or the breach of this Agreement
that is not resolved by the Executive and the Company shall be submitted to arbitration in St. Petersburg, Florida in accordance
with Florida law and the procedures of the American Arbitration Association. The determination of the arbitrator shall be conclusive
and binding on the Company and the Executive and judgment may be entered on the arbitrator(s)’ awards in any court having
competent jurisdiction.

 

(e)
Severability. The invalidity or unenforceability of any provision of this Agreement will not affect the validity or enforceability
of any other provision of this Agreement, and this Agreement will be construed as if such invalid or unenforceable provision were
omitted (but only to the extent that such provision cannot be appropriately reformed or modified).

 

(f)
Waiver of Breach. No waiver by any party hereto of a breach of any provision of this Agreement by any other party, or of
compliance with any condition or provision of this Agreement to be performed by such other party, will operate or be construed
as a waiver of any subsequent breach by such other party of any similar or dissimilar provisions and conditions at the same or
any prior or subsequent time. The failure of any party hereto to take any action by reason of such breach will not deprive such
party of the right to take action at any time while such breach continues.

 

(g)
Notices. Any notices to be given hereunder by either party to the other may be effected either by personal delivery in
writing or by mail, registered or certified, postage prepaid, with return receipt requested. Mailed notices shall be addressed
as follows:

 

If
to the Company:

C1 Financial, Inc.

100 5th Street South

St. Petersburg, Florida 33701

 

If
to the Executive:

At the address last on the records of the Company.

 

    5 

     

    

 

Either party
may change its address for notice by giving notice in accordance with the terms of this Section 7(g).

 

(h)
Headings Descriptive. The headings of sections and paragraphs of this Agreement are inserted for convenience only and shall
not in any way affect the meaning or construction of any provision of this Agreement.

 

(i)
Survivorship. Upon the expiration or other termination of this Agreement, the respective rights and obligations of the
parties hereto shall survive such expiration or other termination to the extent necessary to carry out the intentions of the parties
under this Agreement.

 

(j)
Entire Agreement. From and after the Effective Date, this Agreement shall supersede any other agreement or understanding
between the parties with respect to the subject matter hereof. The obligations under this Agreement are enforceable solely against
the Company and its affiliates.

 

(k)
Counterparts. This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all
of which taken together constitute one and the same agreement.

 

(l)
Authority/Certification. Each of the undersigned hereby personally warrants that he has the full authority to execute and
enter into this Agreement and has obtained all consents, approvals and authorities of any person, committee or entity necessary
to make this Agreement binding and fully enforceable against the party for which he signs. The Executive represents and warrants
that he has disclosed to the Company all provisions in any agreements with any current or prior employer that purport to restrict
his activities following employment with such employer and that, except as set forth in any such agreement, he is subject to no
agreement or restriction that would limit his ability to execute and deliver this Agreement.

 

 

[Signature
Page Follows]

 

    6 

     

    

 

IN WITNESS
WHEREOF, the parties have executed this Agreement on the day and year first above written.

 

	 	 	C1 FINANCIAL, INC.
	 	 	 
	 	 
	 	 	By:	 	/s/
        Cristian A. Melej

	 	 	Name:

        Title:
	 	Cristian A. Melej

        Chief Financial Officer

	 	 
	 	 	 
	 	 	EXECUTIVE
	 	 
	 	 	/s/
        Trevor R. Burgess

 

 

    7

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