Document:

Exhibit 10.7

 

PLACEMENT AGENCY AGREEMENT

 

December 13, 2022

 

Ladenburg Thalmann & Co. Inc.

640 Fifth Avenue, 4th Floor

New York, New York 10019

 

Ladies and Gentlemen:

 

Introduction. Subject
to the terms and conditions herein (this “Agreement”), Midatech Pharma PLC, a public limited company organized under
the laws of England and Wales (the “Company”), hereby agrees to sell up to an aggregate of $10,000,000 of securities of
the Company, including, but not limited to, registered American Depositary Shares (the "Registered Shares”), unregistered
American Depositary Shares (the “Unregistered Shares”), unregistered pre-funded warrants to purchase ordinary shares
represented by American Depositary Shares (the “Pre-Funded Warrants” and the American Depositary Shares issuable upon
exercise of the Pre-Funded Warrants, the “Pre-Funded Warrant Shares), and unregistered warrants to purchase ordinary shares
represented by American Depositary Shares (the “Common Warrants”, and together with the Pre-Funded Warrants, the “Warrants”,
and the American Depositary Shares issuable upon exercise of the Common Warrants, the “Common Warrant Shares”, and
together with the Pre-Funded Warrant Shares, the “Warrant Shares”) (the Registered Shares, the Unregistered Shares,
the Warrants and Warrant Shares, collectively, the “Securities”) directly to various investors (each, an “Investor”
and, collectively, the “Investors”) through Ladenburg Thalmann & Co. Inc. (the “Placement Agent”)
as placement agent. The documents executed and delivered by the Company and the Investors in connection with the Offering (as defined
below), including, without limitation, a securities purchase agreement(s) (the “Purchase Agreement”), shall be collectively
referred to herein as the “Transaction Documents.” The Placement Agent may retain other brokers or dealers to act as
sub-agents or selected-dealers on its behalf in connection with the Offering (as defined below).

 

The Company hereby confirms
its agreement with the Placement Agent as follows:

 

Section 1.              Agreement
to Act as Placement Agent. 

 

(a)       On
the basis of the representations, warranties and agreements of the Company herein contained, and subject to all the terms and conditions
of this Agreement, the Placement Agent shall be the exclusive placement agent in connection with the offering and sale by the Company
of the Registered Shares pursuant to the Company's registration statement on Form F-3 (File No. 333-267932) (the “Registration
Statement”) (such offering, the “Registered Offering”) and a concurrent private placement of the Unregistered
Shares and the Warrants (such private placement, the “Private Placement” and, together with the Registered Offering,
the “Offering”) with the terms of the Offering to be subject to market conditions and negotiations between the Company,
the Placement Agent and the prospective Investors. The Placement Agent will act on a reasonable best efforts basis and the Company agrees
and acknowledges that there is no guarantee of the successful placement of the Securities, or any portion thereof, in the prospective
Offering. Under no circumstances will the Placement Agent or any of its “Affiliates” (as defined below) be obligated to underwrite
or purchase any of the Securities for its own account or otherwise provide any financing. The Placement Agent shall act solely as the
Company’s agent and not as principal. The Placement Agent shall have no authority to bind the Company with respect to any prospective
offer to purchase Securities and the Company shall have the sole right to accept offers to purchase Securities and may reject any such
offer, in whole or in part. Subject to the terms and conditions hereof, payment of the purchase price for, and delivery of, the Securities
shall be made at one or more closings (each a “Closing” and the date on which each Closing occurs, a “Closing
Date”). As compensation for services rendered, on each Closing Date, the Company shall pay to the Placement Agent the fees and
expenses set forth below:

 

    	 	 	 

    	 

    

 

(i)       A
cash fee equal to 8.0% of the gross proceeds received by the Company from the sale of the Securities at each closing of the Offering (the
“Closing”).

 

(ii)       A
management fee payable in cash equal to 1.0% of the total gross proceeds received by the Company from the sale of the Securities at each
Closing.

 

(iii)       The
Company also agrees to reimburse Placement Agent’s expenses up to $85,000 in the aggregate, which shall be payable immediately upon
a Closing of the Offering, in each case in accordance with the terms set forth in that certain Investment Banking Agreement dated September
22, 2022 between the Company and the Placement Agent (the “Investment Banking Agreement”), provided that such expense
cap in no way limits or impairs the indemnification and contribution provisions of this Agreement.

 

(iv)       Such
number of ordinary share purchase warrants (the “Placement Agent Warrants”) to the Placement Agent or its designees
at each Closing to purchase ordinary shares represented by American Depositary Shares equal to 4.0% of the aggregate number of Registered
Shares and Unregistered Shares sold in the Offering. The Placement Agent Warrants shall have the same terms as the Common Warrants issued
to the Investors in the Offering except that the exercise price shall be 125% of the offering price and shall have an expiration date
of three (3) years from the commencement of sales in the Offering.

 

(b)       The
term of the Placement Agent's exclusive engagement will be as provided in Section 2 of the Investment Banking Agreement. Notwithstanding
anything to the contrary contained herein, the provisions concerning confidentiality, indemnification and contribution contained herein
and the Company’s obligations contained in the indemnification provisions will survive any expiration or termination of this Agreement,
and the Company’s obligation to pay fees actually earned and payable and to reimburse expenses actually incurred and reimbursable
pursuant to Section 1 hereof and which are permitted to be reimbursed under FINRA Rule 5110(g)(4)(A), will survive any expiration or termination
of this Agreement. Nothing in this Agreement shall be construed to limit the ability of the Placement Agent or its Affiliates to pursue,
investigate, analyze, invest in, or engage in investment banking, financial advisory or any other business relationship with Persons (as
defined below) other than the Company. As used herein (i) “Persons” means an individual or corporation, partnership, trust,
incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or
subdivision thereof) or other entity of any kind and (ii) “Affiliate” means any Person that, directly or indirectly through
one or more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed
under Rule 405 under the Securities Act of 1933, as amended (the “Securities Act”).

 

    		2	

    	 

    

 

Section 2.             Representations,
Warranties and Covenants of the Company. The Company hereby represents, warrants and covenants
to the Placement Agent as of the date hereof, and as of each Closing Date, as follows:

 

(a)       Securities
Law Filings. The Company has filed with the Securities and Exchange Commission (the “Commission”) the Registration
Statement under the Securities Act, which was initially filed on October 18, 2022 and declared effective on October 26, 2022 for the registration
of the Company’s securities under the Securities Act. Following the determination of pricing among the Company and the prospective
Investors introduced to the Company by the Placement Agent, the Company will file with the Commission pursuant to Rules 430A and 424(b)
under the Securities Act, and the rules and regulations (the “Rules and Regulations”) of the Commission promulgated
thereunder, a prospectus supplement relating to the placement of the Registered Shares, their respective pricing and the plan of distribution
thereof and will advise the Placement Agent of all further information (financial and other) with respect to the Company required to be
set forth therein. Such registration statement, at any given time, including the exhibits thereto filed at such time, as amended at such
time, is hereinafter called the “Registration Statement”; such prospectus in the form in which it appears in the Registration
Statement at the time of effectiveness, together with any preliminary prospectus supplement relating to the Offering, if any (the “Preliminary
Prospectus Supplement”) is hereinafter called the “Base Prospectus”; and the final prospectus supplement,
in the form in which it will be filed with the Commission pursuant to Rule 424(b) (including the Base Prospectus as it may be amended
or supplemented) is hereinafter called the “Final Prospectus Supplement.” The Registration Statement at the time it
originally became effective is hereinafter called the “Original Registration Statement.” Any reference in this Agreement
to the Registration Statement, the Original Registration Statement, the Base Prospectus, the Preliminary Prospectus Supplement, if any
or the Final Prospectus Supplement shall be deemed to refer to and include the documents incorporated by reference therein (the “Incorporated
Documents”), if any, which were or are filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
at any given time, as the case may be; and any reference in this Agreement to the terms “amend,” “amendment” or
“supplement” with respect to the Registration Statement, the Original Registration Statement, the Base Prospectus, the Preliminary
Prospectus Supplement or the Final Prospectus Supplement shall be deemed to refer to and include the filing of any document under the
Exchange Act after the date of this Agreement, or the issue date of the Base Prospectus, the Preliminary Prospectus Supplement or the
Final Prospectus Supplement, as the case may be, deemed to be incorporated therein by reference. All references in this Agreement to financial
statements and schedules and other information which is “contained,” “included,” “described,” “referenced,”
“set forth” or “stated” in the Registration Statement, the Base Prospectus, the Preliminary Prospectus Supplement
or the Final Prospectus Supplement (and all other references of like import) shall be deemed to mean and include all such financial statements
and schedules and other information which is or is deemed to be incorporated by reference in the Registration Statement, the Base Prospectus,
the Preliminary Prospectus Supplement or the Final Prospectus Supplement, as the case may be. As used in this paragraph and elsewhere
in this Agreement, “Time of Sale Disclosure Package” means the Base Prospectus, any preliminary prospectus supplement,
the Final Prospectus Supplement, any securities purchase agreement between the Company and the Investors, and any issuer free writing
prospectus as defined in Rule 433 of the Act (each, an “Issuer Free Writing Prospectus”), if any, that the parties
hereto shall hereafter expressly agree in writing to treat as part of the Time of Sale Disclosure Package. The term “any Prospectus
Supplement” shall mean, as the context requires, the Base Prospectus, the Final Prospectus Supplement, and any supplement to
either thereof. The Company has not received any notice that the Commission has issued or intends to issue a stop order suspending the
effectiveness of the Registration Statement or the use of the Base Prospectus or any Prospectus Supplement or intends to commence a proceeding
for any such purpose.

 

    		3	

    	 

    

 

(b)       Assurances.
The Original Registration Statement, as amended, (and any further documents to be filed with the Commission) contains all exhibits and
schedules as required by the Securities Act. Each of the Registration Statement and any post-effective amendment thereto, at the time
it became effective, complied in all material respects with the Securities Act and the applicable Rules and Regulations and did not contain
any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements
therein not misleading. The Base Prospectus, and the Final Prospectus Supplement, each as of its respective date, comply or will comply
in all material respects with the Securities Act and the applicable Rules and Regulations. Each of the Base Prospectus and the Final Prospectus
Supplement, as amended or supplemented, did not and will not contain as of the date thereof any untrue statement of a material fact or
omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made,
not misleading. The Incorporated Documents, when they were filed with the Commission, conformed in all material respects to the requirements
of the Exchange Act and the applicable Rules and Regulations promulgated thereunder, and none of such documents, when they were filed
with the Commission, contained any untrue statement of a material fact or omitted to state a material fact necessary to make the statements
therein (with respect to Incorporated Documents incorporated by reference in the Base Prospectus or the Final Prospectus Supplement),
in light of the circumstances under which they were made not misleading. No post-effective amendment to the Registration Statement reflecting
any facts or events arising after the date thereof which represent, individually or in the aggregate, a fundamental change in the information
set forth therein is required to be filed with the Commission. There are no documents required to be filed with the Commission in connection
with the transaction contemplated hereby that (x) have not been filed as required pursuant to the Securities Act or (y) will not be filed
within the requisite time period. There are no contracts or other documents required to be described in the Base Prospectus or Final Prospectus
Supplement, or to be filed as exhibits or schedules to the Registration Statement, which have not been described or filed as required.

 

    		4	

    	 

    

 

(c)       Offering
Materials. Neither the Company nor any of its directors and officers has distributed and none of them will distribute, prior to each
Closing Date, any offering material in connection with the offering and sale of the Securities other than the Time of Sale Disclosure
Package.

 

(d)       Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by this Agreement and the Time of Sale Disclosure Package and otherwise to carry out its obligations hereunder and thereunder. The execution
and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby and thereby and under
the Final Prospectus Supplement have been duly authorized by all necessary action on the part of the Company and no further action is
required by the Company, the Company’s Board of Directors or an authorized committee thereof (the “Board of Directors”)
or the Company’s stockholders in connection therewith other than in connection with the Required Approvals (as defined in the Purchase
Agreement). This Agreement has been duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute
the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as limited by
general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive
relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(e)       No
Conflicts. The execution, delivery and performance by the Company of this Agreement and the transactions contemplated pursuant to
the Time of Sale Disclosure Package, the issuance and sale of the Securities and the consummation by it of the transactions contemplated
hereby and thereby to which it is a party do not and will not (i) conflict with or violate any provision of the Company’s or any
subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with,
or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of
any Lien (as defined in the Purchase Agreement) upon any of the properties or assets of the Company or any subsidiary, or give to others
any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement,
credit facility, debt or other instrument (evidencing a Company or subsidiary debt or otherwise) or other understanding to which the Company
or any subsidiary is a party or by which any property or asset of the Company or any subsidiary is bound or affected, or (iii) subject
to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or
other restriction of any court or governmental authority to which the Company or a subsidiary is subject (including federal and state
securities laws and regulations), or by which any property or asset of the Company or a subsidiary is bound or affected; except in the
case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect (as defined
in the Purchase Agreement).

 

    		5	

    	 

    

 

(f)       Certificates.
Any certificate signed by an officer of the Company and delivered to the Placement Agent or to counsel for the Placement Agent
shall be deemed to be a representation and warranty by the Company to the Placement Agent as to the matters set forth therein.

 

(g)Reliance.
The Company acknowledges that the Placement Agent will rely upon the accuracy and truthfulness of the foregoing representations and
warranties and hereby consents to such reliance.

 

(h)       Forward-Looking
Statements. No forward-looking statements (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange
Act) contained in the Time of Sale Disclosure Package has been made or reaffirmed without a reasonable basis or has been disclosed other
than in good faith.

 

(i)       Statistical
or Market-Related Data. Any statistical, industry-related and market-related data included or incorporated by reference in the Time
of Sale Disclosure Package, are based on or derived from sources that the Company reasonably and in good faith believes to be reliable
and accurate, and such data agree in all material respects with the sources from which they are derived.

 

(j)       FINRA
Affiliations. There are no affiliations with any FINRA member firm that is participating in the Registered Offering among the Company’s
officers or directors.

 

(k)       Representations
and Warranties Incorporated by Reference. Each of the representations and warranties (together with any related disclosure schedules
thereto) made by the Company to the Investors in the Purchase Agreement is hereby incorporated herein by reference (as though fully restated
herein) and is hereby made to, and in favor of, the Placement Agent.

 

Section 3.             Delivery
and Payment. Each Closing shall occur at the offices of Ellenoff Grossman & Schole LLP, 1345
Avenue of the Americas, New York, New York 10105 (“Placement Agent Counsel”) (or at such other place as shall be agreed
upon by the Placement Agent and the Company). Subject to the terms and conditions hereof, at each Closing, payment of the purchase price
for the Securities sold on such Closing Date shall be made by Federal Funds wire transfer, against delivery of such Securities, and such
Securities shall be registered in such name or names and shall be in such denominations, as the Placement Agent may request at least one
(1) business day before the time of purchase (as defined below).

 

Deliveries of the documents
with respect to the purchase of the Securities, if any, shall be made at the offices of Placement Agent Counsel. All actions taken at
a Closing shall be deemed to have occurred simultaneously.

 

Section 4.             Covenants
and Agreements of the Company. The Company further covenants and agrees with the Placement Agent
as follows:

 

    		6	

    	 

    

 

(a)       Registration
Statement Matters. The Company will advise the Placement Agent promptly after it receives notice thereof of the time when any amendment
to the Registration Statement has been filed or becomes effective or any supplement to any Prospectus Supplement or any amended Prospectus
Supplement has been filed and will furnish the Placement Agent with copies thereof. The Company will file promptly all reports and any
definitive proxy or information statements required to be filed by the Company with the Commission pursuant to Section 13(a), 14 or 15(d)
of the Exchange Act subsequent to the date of any Prospectus Supplement and for so long as the delivery of a prospectus is required in
connection with the Registered Offering. The Company will advise the Placement Agent, promptly after it receives notice thereof (i) of
any request by the Commission to amend the Registration Statement or to amend or supplement any Prospectus Supplement or for additional
information, and (ii) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or
any post-effective amendment thereto or any order directed at any Incorporated Document, if any, or any amendment or supplement thereto
or any order preventing or suspending the use of the Base Prospectus or any Prospectus Supplement or any amendment or supplement thereto
or any post-effective amendment to the Registration Statement, of the suspension of the qualification of the Securities for offering or
sale in any jurisdiction, of the institution or threatened institution of any proceeding for any such purpose, or of any request by the
Commission for the amending or supplementing of the Registration Statement or a Prospectus Supplement or for additional information. The
Company shall use its commercially reasonable efforts to prevent the issuance of any such stop order or prevention or suspension of such
use.  If the Commission shall enter any such stop order or order or notice of prevention or suspension at any time, the Company will
use its commercially reasonable efforts to obtain the lifting of such order at the earliest possible moment, or will file a new registration
statement and use its commercially reasonable efforts to have such new registration statement declared effective as soon as practicable. 
Additionally, the Company agrees that it shall comply with the provisions of Rules 424(b), 430A, 430B and 430C, as applicable, under
the Securities Act, including with respect to the timely filing of documents thereunder, and will use its reasonable efforts to confirm
that any filings made by the Company under such Rule 424(b) are received in a timely manner by the Commission.

 

(b)       Blue
Sky Compliance. The Company will cooperate with the Placement Agent and the Investors in endeavoring to qualify the Securities for
sale under the securities laws of such jurisdictions (United States and foreign) as the Placement Agent and the Investors may reasonably
request and will make such applications, file such documents, and furnish such information as may be reasonably required for that purpose,
provided the Company shall not be required to qualify as a foreign corporation or to file a general consent to service of process in any
jurisdiction where it is not now so qualified or required to file such a consent, and provided further that the Company shall not be required
to produce any new disclosure document other than a Prospectus Supplement. The Company will, from time to time, prepare and file such
statements, reports and other documents as are or may be required to continue such qualifications in effect for so long a period as the
Placement Agent may reasonably request for distribution of the Securities. The Company will advise the Placement Agent promptly of the
suspension of the qualification or registration of (or any such exemption relating to) the Securities for offering, sale or trading in
any jurisdiction or any initiation or threat of any proceeding for any such purpose, and in the event of the issuance of any order suspending
such qualification, registration or exemption, the Company shall use its commercially reasonable efforts to obtain the withdrawal thereof
at the earliest possible moment.

 

    		7	

    	 

    

 

(c)       Amendments
and Supplements to a Prospectus Supplement and Other Matters. The Company will comply with the Securities Act and the Exchange Act,
and the rules and regulations of the Commission thereunder, so as to permit the completion of the distribution of the Securities as contemplated
in this Agreement, the Incorporated Documents and any Prospectus Supplement. If during the period in which a prospectus is required by
law to be delivered in connection with the distribution of Shares contemplated by the Incorporated Documents or any Prospectus Supplement
(the “Prospectus Delivery Period”), any event shall occur as a result of which, in the judgment of the Company or in
the opinion of the Placement Agent or counsel for the Placement Agent, it becomes necessary to amend or supplement the Incorporated Documents
or any Prospectus Supplement in order to make the statements therein, in the light of the circumstances under which they were made, as
the case may be, not misleading, or if it is necessary at any time to amend or supplement the Incorporated Documents or any Prospectus
Supplement or to file under the Exchange Act any Incorporated Document to comply with any law, the Company will promptly prepare and file
with the Commission, and furnish at its own expense to the Placement Agent and to dealers, an appropriate amendment to the Registration
Statement or supplement to the Registration Statement, the Incorporated Documents or any Prospectus Supplement that is necessary in order
to make the statements in the Incorporated Documents and any Prospectus Supplement as so amended or supplemented, in the light of the
circumstances under which they were made, as the case may be, not misleading, or so that the Registration Statement, the Incorporated
Documents or any Prospectus Supplement, as so amended or supplemented, will comply with law. Before amending the Registration Statement
or supplementing the Incorporated Documents or any Prospectus Supplement in connection with the Registered Offering, the Company will
furnish the Placement Agent with a copy of such proposed amendment or supplement and will not file any such amendment or supplement to
which the Placement Agent reasonably objects, within two (2) business days, provided that the Company may file any document or report
determined by the Company to be required to be filed pursuant to the Securities Act or the Exchange Act or the rules and regulations promulgated
thereunder within the time periods required for such filing irrespective of any such objection. 

 

(d)       Copies
of any Amendments and Supplements to a Prospectus Supplement. The Company will furnish the Placement Agent, without charge, during
the period beginning on the date hereof and ending on the later of the last Closing Date of the Registered Offering, as many copies of
the Incorporated Documents and any Prospectus Supplement and any amendments and supplements thereto (including any Incorporated Documents,
if any) as the Placement Agent may reasonably request. 

 

(e)       Free
Writing Prospectus. The Company covenants that it will not, unless it obtains the prior written consent of the Placement Agent, make
any offer relating to the Registered Shares that would constitute a Company Free Writing Prospectus or that would otherwise constitute
a “free writing prospectus” (as defined in Rule 405 of the Securities Act) required to be filed by the Company with
the Commission or retained by the Company under Rule 433 of the Securities Act. In the event that the Placement Agent expressly consents
in writing to any such free writing prospectus (a “Permitted Free Writing Prospectus”), the Company covenants that
it shall (i) treat each Permitted Free Writing Prospectus as a Company Free Writing Prospectus, and (ii) comply with the requirements
of Rule 164 and 433 of the Securities Act applicable to such Permitted Free Writing Prospectus, including in respect of timely filing
with the Commission, legending and record keeping.

 

    		8	

    	 

    

 

(f)       Depositary.
The Company will maintain, at its expense, a depositary for the ordinary shares and American Depositary Shares until such date as no Warrants
are outstanding. 

 

(g)       No
Manipulation of Price.  The Company will not take, directly or indirectly, any action designed to cause or result in,
or that has constituted or might reasonably be expected to constitute, the stabilization or manipulation of the price of any securities
of the Company.

 

(h)       Acknowledgment.
The Company acknowledges that any advice given by the Placement Agent to the Company is solely for the benefit and use of the Board of
Directors of the Company and may not be used, reproduced, disseminated, quoted or referred to, without the Placement Agent's prior written
consent.

 

(i)       Announcement
of Offering. The Company acknowledges and agrees that the Placement Agent may, subsequent to the Closing, make public its involvement
with the Offering.

 

(j)       Reliance
on Others. The Company confirms that it will rely on its own counsel and accountants for legal and accounting advice.

 

(k)       Research
Matters. By entering into this Agreement, the Placement Agent does not provide any promise,
either explicitly or implicitly, of favorable or continued research coverage of the Company and the Company hereby acknowledges and agrees
that the Placement Agent’s selection as a placement agent for the Offering was in no way conditioned, explicitly or implicitly,
on the Placement Agent providing favorable or any research coverage of the Company. In accordance with FINRA Rule 2711(e), the parties
acknowledge and agree that the Placement Agent has not directly or indirectly offered favorable research, a specific rating or a specific
price target, or threatened to change research, a rating or a price target, to the Company or inducement for the receipt of business or
compensation.

 

    		9	

    	 

    

 

Section 5.             Conditions
of the Obligations of the Placement Agent. The obligations of the Placement Agent hereunder shall
be subject to the accuracy of the representations and warranties on the part of the Company set forth in Section 2 hereof, in each case
as of the date hereof and as of each Closing Date as though then made, to the timely performance by each of the Company of its covenants
and other obligations hereunder on and as of such dates, and to each of the following additional conditions: 

 

(a)       Compliance
with Registration Requirements; No Stop Order; No Objection from the FINRA. Each Prospectus Supplement (in accordance with Rule 424(b))
and “free writing prospectus” (as defined in Rule 405 of the Securities Act), if any, shall have been duly filed with
the Commission, as appropriate; no stop order suspending the effectiveness of the Registration Statement or any part thereof shall have
been issued and no proceeding for that purpose shall have been initiated or threatened by the Commission; no order preventing or suspending
the use of any Prospectus Supplement shall have been issued and no proceeding for that purpose shall have been initiated or threatened
by the Commission; no order having the effect of ceasing or suspending the distribution of the Securities or any other securities of the
Company shall have been issued by any securities commission, securities regulatory authority or stock exchange and no proceedings for
that purpose shall have been instituted or shall be pending or, to the knowledge of the Company, contemplated by any securities commission,
securities regulatory authority or stock exchange; all requests for additional information on the part of the Commission shall have been
complied with; and the FINRA shall have raised no objection to the fairness and reasonableness of the placement terms and arrangements.

 

(b)       Corporate
Proceedings. All corporate proceedings and other legal matters in connection with this Agreement, the Registration Statement and each
Prospectus Supplement, and the registration, sale and delivery of the Securities, shall have been completed or resolved in a manner reasonably
satisfactory to the Placement Agent's counsel, and such counsel shall have been furnished with such papers and information as it may reasonably
have requested to enable such counsel to pass upon the matters referred to in this Section 5. 

 

(c)       No
Material Adverse Effect. Subsequent to the execution and delivery of this Agreement and prior to each Closing Date, in the Placement
Agent's sole judgment after consultation with the Company, there shall not have occurred any Material Adverse Effect (as defined in the
Purchase Agreement). 

 

(d)       Opinions
of Counsel for the Company. The Placement Agent shall have received on each Closing Date the favorable opinion of Company US Counsel
and Company UK Counsel (each as defined in the Purchase Agreement), dated as of such Closing Date, including, without limitation, a negative
assurance letter addressed to the Placement Agent and in form and substance reasonably satisfactory to the Placement Agent.

 

    		10	

    	 

    

 

(e)       Officers’
Certificate. The Placement Agent shall have received on each Closing Date a certificate of the Company, dated as of such Closing Date,
signed by the Chief Executive Officer and Chief Financial Officer of the Company, to the effect that, and the Placement Agent shall be
satisfied that, the signers of such certificate have reviewed the Registration Statement, the Incorporated Documents, any Prospectus Supplement,
and this Agreement and to the further effect that: 

 

(i)       The
representations and warranties of the Company in this Agreement are true and correct in all material respects, as if made on and as of
such Closing Date, and the Company has complied with all the agreements and satisfied all the conditions on its part to be performed or
satisfied at or prior to such Closing Date in all material respects; 

 

(ii)       No
stop order suspending the effectiveness of the Registration Statement or the use of the Base Prospectus or any Prospectus Supplement has
been issued and no proceedings for that purpose have been instituted or are pending or, to the Company’s knowledge, threatened under
the Securities Act; no order having the effect of ceasing or suspending the distribution of the Securities or any other securities of
the Company has been issued by any securities commission, securities regulatory authority or stock exchange in the United States and/or
England and no proceedings for that purpose have been instituted or are pending or, to the knowledge of the Company, contemplated by any
securities commission, securities regulatory authority or stock exchange in the United States and/or England; 

 

(iii)       When
the Registration Statement became effective, at the time of sale, and at all times subsequent thereto up to the delivery of such certificate,
the Registration Statement and the Incorporated Documents, if any, when such documents became effective or were filed with the Commission,
and any Prospectus Supplement, contained all material information required to be included therein by the Securities Act and the Exchange
Act and the applicable rules and regulations of the Commission thereunder, as the case may be, and in all material respects conformed
to the requirements of the Securities Act and the Exchange Act and the applicable rules and regulations of the Commission thereunder,
as the case may be, and the Registration Statement and the Incorporated Documents, if any, and any Prospectus Supplement, did not and
do not include any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they were made, not misleading (provided, however, that the
preceding representations and warranties contained in this paragraph (iii) shall not apply to any statements or omissions made in reliance
upon and in conformity with information furnished in writing to the Company by the Placement Agent expressly for use therein) and, since
the effective date of the Registration Statement, there has occurred no event required by the Securities Act and the rules and regulations
of the Commission thereunder to be set forth in the Incorporated Documents which has not been so set forth; and

 

    		11	

    	 

    

 

(iv)       Subsequent
to the respective dates as of which information is given in the Registration Statement, the Incorporated Documents and any Prospectus
Supplement, there has not been: (a) any Material Adverse Effect; (b) any transaction that is material to the Company and the subsidiaries
taken as a whole, except transactions entered into in the ordinary course of business; (c) any obligation, direct or contingent, that
is material to the Company and the subsidiaries taken as a whole, incurred by the Company or any subsidiary, except obligations incurred
in the ordinary course of business; (d) any material change in the capital stock (except changes thereto resulting from the exercise of
outstanding stock options or warrants) or outstanding indebtedness of the Company or any subsidiary; (e) any dividend or distribution
of any kind declared, paid or made on the capital stock of the Company; or (f) any loss or damage (whether or not insured) to the property
of the Company or any subsidiary which has been sustained or will have been sustained which has a Material Adverse Effect.

 

(f)       Lock-Up
Agreements. On the date hereof, the Placement Agent shall have received the executed lock-up agreement, in the form attached hereto
as Exhibit A, from each individual and entity listed on Schedule I of the Purchase Agreement.

 

(g)       Stock
Exchange Listing. The Registered Shares shall be registered under the Exchange Act and shall be listed on the Trading Market (as defined
in the Purchase Agreement), and the Company shall not have taken any action designed to terminate, or likely to have the effect of terminating, the
registration of the ordinary shares and American Depositary Shares under the Exchange Act or delisting or suspending from trading the
ordinary shares and American Depositary Shares from the Trading Market, nor shall the Company have received any information suggesting
that the Commission or the Trading Market is contemplating terminating such registration or listing. 

 

(h)       Additional
Documents. On or before each Closing Date, the Placement Agent and counsel for the Placement Agent shall have received such information
and documents as they may reasonably require for the purposes of enabling them to pass upon the issuance and sale of the Securities as
contemplated herein, or in order to evidence the accuracy of any of the representations and warranties, or the satisfaction of any of
the conditions or agreements, herein contained. 

 

If any condition specified
in this Section 5 is not satisfied when and as required to be satisfied, this Agreement may be terminated by the Placement Agent by notice
to the Company at any time on or prior to a Closing Date, which termination shall be without liability on the part of any party to any
other party, except that Section 6 (Payment of Expenses), Section 7 (Indemnification and Contribution) and Section 8 (Representations
and Indemnities to Survive Delivery) shall at all times be effective and shall survive such termination.

 

    		12	

    	 

    

 

Section 6.             Payment
of Expenses. The Company agrees to pay all costs, fees and expenses incurred by the Company in
connection with the performance of its obligations hereunder and in connection with the transactions contemplated hereby, including, without
limitation: (i) all expenses incident to the issuance, delivery and qualification of the Securities (including all printing and engraving
costs); (ii) all fees and expenses of the depositary and/or transfer agent of the Company; (iii) all necessary issue, transfer and other
stamp taxes in connection with the issuance and sale of the Securities; (iv) all fees and expenses of the Company’s counsel,
independent public or certified public accountants and other advisors; (v) all costs and expenses incurred in connection with the preparation,
printing, filing, shipping and distribution of the Registration Statement (including financial statements, exhibits, schedules, consents
and certificates of experts), the Base Prospectus and each Prospectus Supplement, and all amendments and supplements thereto, and this
Agreement; (vi) all filing fees, reasonable attorneys’ fees and expenses incurred by the Company or the Placement Agent in connection
with qualifying or registering (or obtaining exemptions from the qualification or registration of) all or any part of the Securities for
offer and sale under the state securities or blue sky laws or the securities laws of any other country, and, if requested by the Placement
Agent, preparing and printing a “Blue Sky Survey,” an “International Blue Sky Survey” or other memorandum,
and any supplements thereto, advising the Placement Agent of such qualifications, registrations and exemptions; (vii) if applicable, the
filing fees incident to the review and approval by the FINRA of the Placement Agent's participation in the Registered Offering and distribution
of the Registered Shares; (viii) the fees and expenses associated with including the Registered Shares, Unregistered Shares and the Warrant
Shares on the Trading Market; (ix) all costs and expenses incident to the travel and accommodation of the Company’s and the Placement
Agent's employees on the “roadshow,” if any; and (x) all other fees, costs and expenses of the Company related to the
Offering. The fees and expenses of the Placement Agent’s counsel and any other out-of-pocket expenses of the Placement Agent in
connection with the Offering shall be reimbursed by the Company only to the extent set forth in the Investment Banking Agreement.

 

Section 7.             Indemnification
and Contribution. The Company agrees to indemnify the Placement Agent in accordance with the
provisions of Exhibit A to the Investment Banking Agreement, which is incorporated by reference herein and made a part hereof.

 

Section 8.             Representations
and Indemnities to Survive Delivery. The respective indemnities, agreements, representations,
warranties and other statements of the Company or any person controlling the Company, of its officers, and of the Placement Agent set
forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by or on behalf
of the Placement Agent, the Company, or any of its or their partners, officers or directors or any controlling person, as the case may
be, and will survive delivery of and payment for the Securities sold hereunder and any termination of this Agreement. A successor to a
Placement Agent, or to the Company, its directors or officers or any person controlling the Company, shall be entitled to the benefits
of the indemnity, contribution and reimbursement agreements contained in this Agreement. 

 

Section 9.             Notices.
All communications hereunder shall be in writing and shall be mailed, hand delivered, telecopied or e-mailed and confirmed to the parties
hereto as follows: 

 

If to the Placement Agent to the address set forth
above, attention: General Counsel, facsimile: (305) 572-4220

 

    		13	

    	 

    

 

With a copy to: 

 

Ellenoff Grossman & Schole LLP

1345 Avenue of the Americas, 11th Floor

New York, New York 10105

E-Mail: capmkts@egsllp.com

Attention: Michael Nertney

 

If to the Company,

 

1 Caspian
Point

Caspian
Way

Cardiff,
CF10 4DQ, United Kingdom

E-Mail:
Stephen.stamp@midatechpharma.com

Attention: Chief Executive Officer

 

With a copy to:

 

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo,
P.C.,

One Financial Center,

Boston, MA 02111

E-Mail: jsmccaffrey@mintz.com

Attention: Jason S. McCaffrey, Esq.

 

Any party hereto may change
the address for receipt of communications by giving written notice to the others.

 

Section 10.             Successors.
This Agreement will inure to the benefit of and be binding upon the parties hereto, and to the benefit of the employees, officers and
directors and controlling persons referred to in Section 7 hereof, and to their respective successors, and personal representative, and
no other person will have any right or obligation hereunder. 

 

Section 11.             Partial
Unenforceability. The invalidity or unenforceability of any section, paragraph or provision of
this Agreement shall not affect the validity or enforceability of any other section, paragraph or provision hereof. If any section, paragraph
or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such minor
changes (and only such minor changes) as are necessary to make it valid and enforceable. 

 

    		14	

    	 

    

 

Section 12.             Governing
Law Provisions. This Agreement shall be deemed to have been made and delivered in New York City
and both this Agreement and the transactions contemplated hereby shall be governed as to validity, interpretation, construction, effect
and in all other respects by the internal laws of the State of New York, without regard to the conflict of laws principles thereof. Each
of the Placement Agent and the Company: (i) agrees that any legal suit, action or proceeding arising out of or relating to this Agreement
and/or the transactions contemplated hereby shall be instituted exclusively in New York Supreme Court, County of New York, or in the United
States District Court for the Southern District of New York, (ii) waives any objection which it may have or hereafter to the venue of
any such suit, action or proceeding, and (iii) irrevocably consents to the jurisdiction of the New York Supreme Court, County of New York,
and the United States District Court for the Southern District of New York in any such suit, action or proceeding. Each of the Placement
Agent and the Company further agrees to accept and acknowledge service of any and all process which may be served in any such suit, action
or proceeding in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District of New
York and agrees that service of process upon the Company mailed by certified mail to the Company’s address shall be deemed in every
respect effective service of process upon the Company, in any such suit, action or proceeding, and service of process upon the Placement
Agent mailed by certified mail to the Placement Agent’s address shall be deemed in every respect effective service of process upon
the Placement Agent, in any such suit, action or proceeding. Notwithstanding any provision of this Agreement to the contrary, the Company
agrees that neither the Placement Agent nor its affiliates, and the respective officers, directors, employees, agents and representatives
of the Placement Agent, its affiliates and each other person, if any, controlling the Placement Agent or any of its affiliates, shall
have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company for or in connection with the engagement
and transaction described herein except for any such liability for losses, claims, damages or liabilities incurred by the Company that
are finally judicially determined to have resulted from the bad faith, willful misconduct or gross negligence of such individuals or entities.
If either party shall commence an action or proceeding to enforce any provision of this Agreement, then the prevailing party in such action
or proceeding shall be reimbursed by the other party for its reasonable attorney’s fees and other costs and expenses incurred with
the investigation, preparation and prosecution of such action or proceeding.

 

Section 13.             General
Provisions. 

 

(a)       This
Agreement constitutes the entire agreement of the parties to this Agreement and supersedes all prior written or oral and all contemporaneous
oral agreements, understandings and negotiations with respect to the subject matter hereof. Notwithstanding anything herein to the contrary,
the Investment Banking Agreement between the Company and the Placement Agent, shall continue to be effective and the terms therein shall
continue to survive and be enforceable by the Placement Agent in accordance with its terms, including, without limitation, Sections 4(b)
and 5 therein with respect to future offerings. This Agreement may be executed in two or more counterparts, each one of which shall be
an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement may not be amended
or modified unless in writing by all of the parties hereto, and no condition herein (express or implied) may be waived unless waived in
writing by each party whom the condition is meant to benefit. Section headings herein are for the convenience of the parties only and
shall not affect the construction or interpretation of this Agreement.

 

    		15	

    	 

    

 

(b)       The
Company acknowledges that in connection with the offering of the Securities: (i) the Placement Agent has acted at arms length, are not
agents of, and owe no fiduciary duties to the Company or any other person, (ii) the Placement Agent owes the Company only those duties
and obligations set forth in this Agreement and (iii) the Placement Agent may have interests that differ from those of the Company. The
Company waives to the full extent permitted by applicable law any claims it may have against the Placement Agent arising from an alleged
breach of fiduciary duty in connection with the offering of the Securities.

 

[The remainder of this page has been intentionally
left blank.]

 

    		16	

    	 

    

 

If the foregoing is in accordance
with your understanding of our agreement, please sign below whereupon this instrument, along with all counterparts hereof, shall become
a binding agreement in accordance with its terms.

 

 

	 	Very truly yours,	 
	 	 	 
	 	midatech pharma plc	 
	 	
    a public limited company organized under

    the laws of England and Wales
	 
	 	 	 	 
	 	 	 	 
	 	By:	 /s/ Stephen Stamp	 
	 	 	Name: Stephen Stamp	 
	 	 	Title: Chief Executive Officer and Chief Financial Officer	 
	 	 	 	 

 

 

The foregoing Placement Agency
Agreement is hereby confirmed and accepted as of the date first above written.

 

	LADENBURG THALMANN & CO. INC.	 	 
	 	 	 	 
	 	 	 	 
	By:	 /s/ Nicholas Stergis	 	 
	 	Name: Nicholas Stergis	 	 
	 	Title: Managing Director	 	 

 

 

17Document

Exhibit 10.1

CHIMICLES SCHWARTZ KRINER
& DONALDSON-SMITH LLP
Nicholas E. Chimicles, Pa. Id. No. 17928
Kimberly Donaldson Smith, Pa. Id. No. 84116
Timothy N. Mathews, Pa. Id. No. 91430
One Haverford Centre
361 West Lancaster Avenue
Haverford, PA 19041
Phone (610) 642-8500
Fax (610) 649-3633

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF PENNSYLVANIA

						
	SOUTHEASTERN PENNSYLVANIA TRANSPORTATION AUTHORITY, on behalf of itself and all others similarly situated,

             Plaintiff,

      v.

ORRSTOWN FINANCIAL SERVICES, INC., ORRSTOWN BANK, ANTHONY F. CEDDIA, JEFFREY W. COY, MARK K. KELLER, ANDREA PUGH, THOMAS R. QUINN, JR., GREGORY A. ROSENBERRY, KENNETH R. SHOEMAKER, GLENN W. SNOKE, JOHN S. WARD, BRADLEY S. EVERLY, JOEL R. ZULLINGER, JEFFREY W. EMBLY, SMITH ELLIOTT KEARNS & COMPANY, LLC, SANDLER O’NEILL & PARTNERS L.P., and JANNEY MONTGOMERY SCOTT LLC,

            Defendants.
	Civil Action No. 1:12-cv-00993

CLASS ACTION

STIPULATION AND AGREEMENT OF SETTLEMENT

    

This Stipulation and Agreement of Settlement, dated as of December 7, 2022 (“Stipulation”)1, is entered into by and  among  the  following  parties  to  this  putative  class  action  (“Action”  or “Litigation,” as further defined herein), by and through their counsel: (i) Plaintiff Southeastern Pennsylvania Transportation Authority (“SEPTA” or “Plaintiff”); (ii) Orrstown Financial Services, Inc. and Orrstown Bank (collectively, “Orrstown”); (iii) Anthony F. Ceddia, Jeffrey W. Coy,2 Mark K. Keller, Andrea Pugh, Thomas R. Quinn, Jr., Gregory A. Rosenberry,3 Kenneth R. Shoemaker, Glenn W. Snoke, John S. Ward, Bradley S. Everly, Joel R. Zullinger, and Jeffrey W. Embly (collectively, “Individual Defendants”); (iv) Smith Elliott Kearns & Company, LLC (“SEK”); and, (v) Piper Sandler & Co.4 and Janney Montgomery Scott LLC (collectively, the “Underwriters”).  Orrstown, Individual Defendants, SEK and Underwriters are collectively referred to herein as “Defendants.” 
This Stipulation memorializes the terms on which Plaintiff and Defendants (together, “Parties”) have agreed to resolve this Litigation (“Settlement”), and is intended to fully, finally, and forever resolve, discharge, and settle the Released Claims, subject to approval of the Court and the terms and conditions in this Stipulation. 
I.    SUMMARY OF THE LITIGATION
On May 25, 2012, SEPTA, a purchaser of Orrstown Financial Services, Inc. common stock, commenced this Action by filing a Class Action Complaint for Violations of Federal Securities Laws (“Initial Complaint”, Dkt. No. 1) in the United States District Court for the Middle District of Pennsylvania (“Court”), on behalf of itself and a proposed class of purchasers of Orrstown Financial Services, Inc. common stock from March 24, 2010 to October 27, 2011. The Initial Complaint asserted claims against Orrstown and certain Individual Defendants under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (“Exchange Act”) and United States Securities and Exchange Commission (“SEC”) Rule 10b-5 (collectively, the “Exchange Act Claims”), and under Sections 11, 12(a)(2), and 15 of the Securities Act of 1933, as amended (“Securities Act” and “Securities Act Claims”). 
As set forth in the Initial Complaint, the Exchange Act Claims and Securities Act Claims generally involved allegations that Orrstown’s filings with the SEC, which include filings by Orrstown in March 2010 for a $45 million public offering of 1.7 million shares of its common stock at $27 per share (the “March 2010 Offering” and “Offering Documents”) and Orrstown’s periodic, quarterly, and annual SEC reports beginning with Orrstown’s Form 10-K annual report for the fiscal year ended 2009 (the “Reports”): contained materially false and misleading statements about Orrstown’s loan portfolio, its financial condition, and whether Orrstown had taken adequate reserves to cover loan losses; concealed Orrstown’s failures of internal controls over financial reporting; and, included false and misleading audit opinions. As of April 27, 2012, Orrstown’s stock was trading at $7.94 per share. 

1 All capitalized terms used herein are defined herein.
2 Deceased.
3 Deceased.
4 Piper Sandler & Co. is the successor by merger to Sandler O’Neill + Partners L.P.
1

On August 20, 2012 the Court appointed SEPTA as Lead Plaintiff and approved Chimicles Schwartz Kriner & Donaldson-Smith LLP5 as Lead Counsel pursuant to applicable provisions of the Private Securities Litigation Reform Act of 1995 (“PSLRA”). (Dkt. No. 33).
Subsequently, and prior to Plaintiff filing its amended complaint in March 2013, the Parties engaged in substantive discussions about the Action, Plaintiff’s claims, and Defendants’ defenses thereto, and discussed whether resolution of the Action at that time was possible. 
The Parties, however, did not reach a resolution, and on March 4, 2013, Plaintiff filed its First Amended Complaint (“FAC”, Dkt. No. 40). In addition to the claims and allegations in the Initial Complaint, the FAC asserted Exchange Act Claims and Securities Act Claims, named as additional defendants SEK and the Underwriters, and extended the claims to Persons who purchased Orrstown Financial Services, Inc. common stock between March 15, 2010 and April 5, 2012, inclusive. 
Each group of Defendants moved to dismiss the FAC, which motion the Court granted on June 22, 2015. (Dkt. Nos. 92-93). SEPTA filed a motion for leave to amend, which the Court granted, and on February 6, 2016, SEPTA’s Second Amended Complaint (“SAC”) was deemed filed (Dkt. No. 101).  Each group of Defendants moved to dismiss the SAC in March 2016. 
On December 7, 2016, the Court granted in part and denied in part Defendants’ motions to dismiss the SAC. (Dkt. Nos. 126-127). The Court upheld certain of the Exchange Act Claims against Orrstown and certain Individual Defendants, and dismissed the Securities Act Claims in full, the Exchange Act Claims as against SEK, and all Exchange Act Claims for Reports filed prior to the second quarter of 2010. Id.     
    With the motions to dismiss resolved, the PSLRA-imposed stay of discovery was lifted, and the Parties commenced discovery in or around March 2017.  Plaintiff received and reviewed over a million pages of documents from Defendants and over two dozen other third-parties (including borrowers and Bank consultants), and deposed one representative from SEK and one of the Bank’s consultants.  Plaintiff also sought, and engaged in telephonic and written conferrals and ultimately motion practice regarding, the production of documents that had been withheld by certain Defendants and certain third parties based on an asserted confidential supervisory information (“CSI”) privilege.  
In December 2017 and January 2018, Plaintiff and certain Defendants exchanged opening and rebuttal expert reports addressing whether the Action could be certified under Fed. R. Civ. P. 23 as a class action. 
On April 11, 2019, Plaintiff sought leave to file the Third Amended Complaint (“TAC”) (Dkt. No. 182), which incorporated evidence and facts Plaintiff secured in discovery and reasserted the previously dismissed claims which included the Securities Act Claims against all Defendants and the Exchange Act Claims as against SEK, and expanded the class period to assert claims on behalf of Persons who purchased Orrstown Financial Services, Inc. common 

5 Effective January 2019, Plaintiff’s Counsel, which was known for 25 years as Chimicles & Tikellis LLP, changed its name to Chimicles Schwartz Kriner & Donaldson-Smith LLP, reflecting the retirement of former name partner Pamela Tikellis.
    2

stock from March 15, 2010 through April 26, 2012, inclusive (“Class Period”).  On February 14, 2020 the Court granted Plaintiff leave to file the TAC. (Dkt. Nos. 197-198).
In March 2020, Defendants moved the Court to certify for immediate interlocutory appeal the issue of whether the statutes of repose barred certain previously dismissed claims that were re-asserted in the TAC.  
In April 2020, Defendants moved to dismiss the TAC in its entirety.
On July 17, 2020, the Court ruled on Defendants’ motion for interlocutory appeal, finding that there existed substantial ground for difference of opinion on the issue of whether the reasserted claims were barred by the statute of repose, and certified the issue for interlocutory appeal (Dkt. Nos. 229- 230). 
On July 27, 2020, Defendants filed a petition to appeal pursuant to 28 U.S.C. §1292 in the United States Circuit Court for the Third Circuit, which SEPTA opposed on August 5, 2020.  The Third Circuit granted the petition on August 13, 2020.  The Parties filed their principal appeal briefs in November and December 2020, filed supplemental briefs in January 2021, and appeared for argument on February 10, 2021 before the Third Circuit Court of Appeals.  On September 2, 2021, in a unanimous, precedential opinion, the Third Circuit affirmed the Court’s ruling, holding that SEPTA could reassert the previously dismissed claims in the TAC. SEPTA v. Orrstown Fin. Servs., 12 F.4th 337 (3d Cir. 2021). 
Soon thereafter, while the motions to dismiss the TAC and motion to compel production of CSI were pending, the Parties agreed to engage the services of Robert Meyer, Esquire, an experienced and nationally recognized mediator with JAMS. After exchanging mediation briefs, the Parties participated in an all-day mediation with Mr. Meyer on January 19, 2022, but were unsuccessful in reaching a resolution. The Parties so informed the Court, and the Court rescheduled to July 13, 2022 the previously-continued December 9, 2021 hearing and oral argument on Defendants’ motions to dismiss the TAC.  
On August 18, 2022, the Court issued its order denying in part and granting in part Defendants’ motions to dismiss the TAC (Dkt. Nos. 276-277) (the “MTD Order”).  The August MTD Order, inter alia, upheld certain of the Securities Act Claims asserted in the TAC against SEK, the Underwriters, Orrstown, and certain Individual Defendants, and upheld certain of the Exchange Act Claims against SEK, Orrstown, and certain Individual Defendants. The August MTD Order granted Defendants’ motions to dismiss certain of Plaintiff’s Securities Act Claims and Exchange Act Claims that were based on certain statements in the Offering Documents and Reports. 
On August 18, 2022, the Court also issued an order (Dkt. Nos. 278-279) granting SEPTA’s motion to compel production of the withheld CSI, consisting of approximately 3,000 documents, which certain Defendants produced and Plaintiff reviewed.
On October 3, 2022, Defendants filed their answers to the TAC.
During an October 5, 2022 Court-scheduled status conference, the Parties informed the Court that they were re-engaging in settlement discussions with the aid of Mr. Meyer; and, 
    3

conferring regarding a proposed case schedule to set deadlines for key events through the date of trial. 
In the following weeks, the Parties separately engaged with Mr. Meyer to discuss their respective positions, and on October 28, 2022 the Parties participated in a scheduled all-day mediation session with Mr. Meyer. The October 28, 2022 mediation concluded without a settlement-in-principle, but the Parties agreed to continue discussing a potential resolution with Mr. Meyer’s assistance.
In early November 2022, Mr. Meyer presented the Parties with a mediator’s proposal to assist them in forging an agreement-in-principle to resolve the Action.
The parties accepted the mediator’s proposal, and on November 7, 2022 the Parties executed a memorandum of understanding, which set forth their agreement-in-principle to resolve and settle the Action in exchange for a total payment of $15 million to the Class, inclusive of fees and costs. 
The Parties then negotiated the terms of this Stipulation.
II.    PLAINTIFF’S CLAIMS AND THE BENEFITS OF SETTLEMENT
Plaintiff believes the claims asserted in the Litigation have merit and that evidence exists to support them. However, Plaintiff and its counsel recognize and acknowledge the expense and length of continued proceedings necessary to prosecute the Action through trial and appeals. They have also taken into account the uncertainty and risk of continued litigation through expert discovery, summary judgment and trial, including the difficulties and delays inherent in complicated securities class actions and claims arising under the PSLRA, and have taken into account the availability to Defendants of defenses to the securities law violations asserted in the Action. Accordingly, based on their evaluation, Plaintiff and Lead Counsel believe that the Settlement confers substantial benefits on the Class while eliminating the risk and uncertainty of continued litigation, including the possibility that Defendants might prevail, in whole or in part. Thus, Plaintiff and its counsel have concluded, after due investigation and carefully considering the relevant circumstances, including, without limitation, the claims asserted in the Action, the legal and factual defenses thereto, and the applicable law, that (i) it is in the best interests of the Class to enter into this Stipulation in order to avoid the uncertainties of litigation and to ensure that the benefits reflected herein are obtained for the Class and (ii) the terms and conditions of this Stipulation are fair, reasonable, and adequate, and in the best interests of the Class Members.
III.    DEFENDANTS’ DENIALS OF WRONGDOING AND LIABILITY
Defendants have denied and continue to deny every claim alleged and all charges of wrongdoing or liability arising out of any of the conduct, statements, acts or omissions alleged, or that could have been alleged, in the Litigation, that Plaintiff or the Class have suffered any damage, and that the price of Orrstown securities was artificially inflated by alleged misrepresentations, nondisclosures or otherwise by the conduct alleged in the Litigation. Defendants maintain that they have meritorious defenses to all claims alleged in the Litigation. Nonetheless, Defendants have concluded that it is desirable that the Action be fully and finally settled in the manner and upon the terms and conditions set forth in this Stipulation in order to avoid the cost, risks, and distraction of continued litigation. Each of the Defendants denies any 
    4

liability or wrongdoing, and this Stipulation shall in no event be construed or deemed to be evidence of, or an admission or concession on the part of any Defendant with respect to any claim or allegation of, any fault, liability, wrongdoing, or damage whatsoever or any infirmity in the defenses that Defendants have, or could have, asserted. Defendants expressly deny that Plaintiff has asserted any valid claims and expressly deny any and all allegations of fault, liability, wrongdoing, and damages.
IV.    TERMS OF STIPULATION AND AGREEMENT OF SETTLEMENT
NOW, THEREFORE, IT IS HEREBY STIPULATED AND AGREED by and among Plaintiff (for itself and Class Members) and Defendants, by and through their respective counsel, that, subject to approval of the Court, the Litigation and the Released Claims shall be finally and fully compromised, settled, and released, and the Litigation shall be dismissed with prejudice as to all Settling Parties upon and subject to the terms and conditions of the Stipulation. 
 1.    Definitions
As used in this Stipulation, the following terms have the meanings specified here: 
1.1    “Authorized Claimant” means any Class Member whose claim for recovery has been allowed pursuant to the terms of the Stipulation.
1.2    “Claims Administrator” means Kroll Settlement Administration, LLC.
1.3    “Class” means all Persons who purchased or otherwise acquired the common stock of Orrstown Financial Services, Inc. during the Class Period. Excluded from the Class are Defendants and their families, officers, affiliates, entities in which they have or had a controlling interest, and the legal representatives, heirs, successors-in-interest or assigns of any such excluded party. Also excluded from the Class are any Persons who timely and validly request exclusion from the Class, as approved by the Court.
1.4    “Class Member” or “Member of the Class” means a Person who falls within the definition of the Class as set forth in paragraph 1.3 above.
1.5    “Class Period” means the period from March 15, 2010 through April 26, 2012, inclusive.
1.6    “Defendants” means the defendants named in the TAC, consisting of (i) Orrstown Financial Services, Inc. and Orrstown Bank (collectively, “Orrstown”); (ii) Anthony F. Ceddia, Jeffrey W. Coy, Mark K. Keller, Andrea Pugh, Thomas R. Quinn, Jr., Gregory A. Rosenberry, Kenneth R. Shoemaker, Glenn W. Snoke, John S. Ward, Bradley S. Everly, Joel R. Zullinger, and Jeffrey W. Embly (collectively, “Individual Defendants”); (iii) Smith Elliott Kearns & Company, LLC (“SEK”); and, (iv) Piper Sandler & Co. and Janney Montgomery Scott LLC (collectively, the “Underwriters”).  
1.7    “Defendants’ Counsel” means the law firms of White and Williams, LLP, Goldberg Segalla LLP, Wachtell, Lipton, Rosen & Katz, and Cozen O’Connor.
1.8    “Defendants’ Released Parties” means (i) Defendants; (ii) each and all of their respective current and former parents, affiliates, subsidiaries, beneficial owners, successors, 
    5

predecessors, assigns, and assignees; (iii) the current and former officers, directors, employees, heirs, trusts, trustees, executors, estates, administrators, beneficiaries, attorneys, agents, affiliates, insurers (including but not limited to Liberty International Underwriters and Liberty Insurance Underwriters, Inc.), reinsurers, predecessors, successors, assigns, and advisors of each and all of the Persons or entities listed in (i) and (ii); and (iv) any entity in which a Defendants’ Released Party has a direct or indirect controlling interest or which has a direct or indirect controlling interest in a Defendants’ Released Party.
1.9    “Effective Date,” or the date upon which this Settlement becomes “effective,” is the date by which all of the events and conditions specified in ¶7.1 herein have been met and have occurred.
1.9A    “Escrow Account” means the account that is established, maintained, and controlled by the Escrow Agent into which Defendants shall deposit or cause to be deposited the Settlement Amount for the benefit of the Class pursuant to this Stipulation and subject to the jurisdiction of the Court.
1.10    “Escrow Agent” means Huntington National Bank.
1.11    “Escrow Agreement” means the agreement between Lead Counsel and Escrow Agent setting forth the terms under which the Escrow Agent shall maintain the Escrow Account.
1.11A “Fee and Expense Application” means the application or applications that Lead Counsel will submit for (a) an award of attorneys’ fees; plus (b) expenses or charges in connection with prosecuting the Litigation; plus (c) any interest on such attorneys’ fees and expenses at the same rate and for the same periods as earned by the Settlement Fund (until paid), as may be awarded by the Court, to be paid from the Settlement Fund. Lead Counsel reserves the right to make additional applications for payment of fees and expenses from the Settlement Fund, as may be appropriate.
1.12     “Final,” with respect to the Judgment or any other court order, means: (i) if no appeal is filed, the expiration date of the time provided for filing or noticing any appeal under the Federal Rules of Appellate Procedure, i.e., thirty (30) days after entry of the judgment or order; or (ii) if there is an appeal from the judgment or order, (a) the date of final dismissal of all such appeals, or the final dismissal of any proceeding on certiorari or otherwise, or (b) the date the judgment or order is finally affirmed on an appeal, the expiration of the time to file a petition for a writ of certiorari or other form of review, or the denial of a writ of certiorari or other form of review, and, if certiorari or other form of review is granted, the date of final affirmance following review pursuant to that grant. However, any appeal or proceeding seeking subsequent judicial review concerning only the issue of attorneys’ fees, costs, or expenses, the Plan of Allocation (as submitted or subsequently modified), or the procedures for determining Authorized Claimants’ recognized claims shall not in any way delay or preclude a judgment from becoming Final. 
1.13    “Judgment” means the final judgment to be entered by the Court approving the Settlement, substantially in the form attached hereto as Exhibit B.
1.14    “Lead Counsel” means Chimicles Schwartz Kriner & Donaldson-Smith LLP.
    6

1.15    “Litigation” or “Action” means this action, captioned Southeastern Pennsylvania Transportation Authority, et al., v. Orrstown Financial Services, et al, Civil Action No. 1:12-cv-00993 (M.D. Pa.). “Dkt. No” citations are to the docket in this Action.
1.16    “Net Settlement Fund” means the Settlement Fund less: (i) all Court-awarded attorneys’ fees, expenses, and interest, and any award to Plaintiff; (ii) Notice and Administration Expenses; (iii) Taxes and Tax Expenses; and (iv) any other Court-approved fees, expenses or deductions.
1.17    “Notice” means the long-form notice of pendency and proposed settlement of class action, substantially in the form of Exhibit A-1 attached hereto. 
1.18    “Notice and Administration Expenses” means all costs, fees, and expenses incurred in connection with providing notice to the Class and the administration of the Settlement, including but not limited to: (i) providing notice of the proposed Settlement by mail, publication, and other means to Class Members; (ii) receiving and reviewing claims; (iii) applying the Plan of Allocation; (iv) communicating with Persons regarding the proposed Settlement and claims administration process; (v) distributing the proceeds of the Settlement; and (vi) fees related to the Escrow Account and investment of the Settlement Fund.
1.19    “Person” means an individual, corporation, limited liability corporation, professional corporation, partnership, limited partnership, limited liability partnership, limited liability company, joint venture, association, joint stock company, estate, legal representative, trust, unincorporated association, government or any political subdivision or agency thereof, and any business or legal entity and their spouses, heirs, predecessors, successors, representatives, or assignees.
1.20    “Plaintiff” or “Lead Plaintiff” or “Class Representative” mean SEPTA.
1.21    “Plaintiff’s Released Parties” means (i) Plaintiff, Lead Counsel, and all other Class Members; (ii) the current and former parents, affiliates, subsidiaries, successors, predecessors, assigns, and assignees of each of the foregoing in (i); and, (iii) the current and former officers, directors, heirs, trusts, trustees, executors, estates, administrators, beneficiaries, agents, affiliates, insurers, reinsurers, predecessors, successors, assigns, and advisors of each of the Persons or entities listed in (i) and (ii), in their capacities as such and who has the right, ability, standing, or capacity to assert or maintain any of the Released Claims.
1.22    “Plan of Allocation” means the proposed plan, to be approved by the Court, whereby the Net Settlement Fund shall be allocated to Authorized Claimants. 
1.23    “Preliminary Approval Order” means the order, substantially in the form of Exhibit A attached hereto, to be entered by the Court preliminarily approving the Settlement, approving and directing the mailing of the Notice and publication of the Summary Notice, setting deadlines by which Class Members must object to the Settlement and exclude themselves from the Class, and approving the certification of this Action under Fed. R. Civ. P. 23 for settlement purposes only. 
    7

1.24    “Proof of Claim and Release” and “Claim Form” mean the Proof of Claim and Release form for submitting a claim, which, subject to approval of the Court, shall be substantially in the form attached hereto as Exhibit A-2.
1.25    “Released Claims” means all Released Defendants’ Claims and all Released Plaintiff’s Claims.
1.26    “Released Defendants’ Claims” means all claims, demands, rights, liabilities and causes of action of every nature and description, whether known or Unknown Claims, whether arising under federal, state, common or foreign law, that arise out of or relate in any way to the institution, prosecution, or settlement of the claims against Defendants, except for (i) claims relating to the enforcement of the Settlement; and (ii) claims for contractual indemnity as between Defendants. 
1.27    “Released Plaintiff’s Claims” means all claims, demands, rights, liabilities, and causes of action of every nature and description, whether known or Unknown Claims, accrued or unaccrued, in law or in equity, whether arising under federal, state, common or foreign law, whether direct, indirect, or derivative, that Lead Plaintiff or any other member of the Class (i) asserted in the TAC, or (ii) could have asserted in any forum that arise out of, relate to, or are based upon the allegations, transactions, facts, matters or occurrences, representations or omissions, set forth in the TAC and relate to or arise from the purchase or acquisition of Orrstown common stock during the Class Period. Released Plaintiff’s Claims do not include: (i) any claims relating to the enforcement of the Settlement; and (ii) any claims of any person or entity who or which submits a request for exclusion that is accepted by the Court.
1.28    “Releasee(s)” or “Released Parties” mean each and any of the Defendants’ Released Parties and each and any of the Plaintiff’s Released Parties.
1.29    “Releases” means the releases set forth in ¶4 of this Stipulation.
1.30    “Settlement” means the resolution of the Action in accordance with the terms and provisions of this Stipulation.
1.31    “Settlement Amount” means Fifteen Million Dollars ($15,000,000.00) in cash to be paid by wire transfer(s) to the Escrow Agent pursuant to ¶2.1-2.2 of this Stipulation.
1.32    “Settlement Fund” means the Settlement Amount plus all interest and accretions thereto, and which may be reduced by payments or deductions as provided for herein and approved by Court order. 
1.33    “Settlement Hearing” means the hearing to be held by the Court to consider, inter alia, whether the proposed Settlement is fair, reasonable, and adequate and should be approved, and whether to approve the proposed Plan of Allocation and Plaintiff’s Fee and Expense Application.
1.34    “Settling Parties” means Defendants and Plaintiff, on behalf of itself and the Class.
    8

1.35    “Summary Notice” means a summary form of the Notice for publication substantially in the form attached as Exhibit A-3 hereto, to be published as set forth in the Preliminary Approval Order.
1.36    “Tax” or “Taxes” mean any and all taxes, fees, levies, duties, tariffs, imposts, and other charges of any kind (together with any and all interest, penalties, additions to tax and additional amounts imposed with respect thereto) imposed by any governmental authority.
1.37    “Tax Expenses” means expenses and costs incurred in connection with the operation and implementation of ¶2.6-¶2.8 (including, without limitation, expenses of tax attorneys and/or accountants and mailing and distribution costs and expenses relating to filing (or failing to file) the returns described in ¶2.8).
1.38    “Unknown Claims” means any Released Plaintiff’s Claims which the Plaintiff or Class Member does not know or suspect to exist in their favor at the time of the release of such claims, and any Released Defendants’ Claims which Defendants do not know or suspect to exist in their favor at the time of the release of such claims, which, if known by them, might have affected their decision with respect to this Settlement. With respect to any and all Released Claims, the Settling Parties stipulate and agree that, upon the Effective Date of the Settlement, Plaintiff and Defendants shall expressly waive, and each of the other Class Members shall be deemed to have waived, and by operation of the Judgment shall have expressly waived, any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States, or principle of common law or foreign law, which is similar, comparable, or equivalent to California Civil Code §1542, which provides:
A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.
Plaintiff and Defendants acknowledge, and the Class Members shall be deemed by operation of law to have acknowledged, that the foregoing waiver was separately bargained for and a key element of the Settlement of which this release is a part.
2.    The Settlement
A.    The Settlement Amount
 2.1    Defendants shall pay into the Escrow Account the Settlement Amount of fifteen million dollars ($15,000,000) as follows: 
a.    Orrstown, on behalf of Orrstown, the Individual Defendants and the Underwriters, shall pay or cause to be paid thirteen million ($13,000,000) of the Settlement Amount within thirty (30) calendar days after the entry of the Preliminary Approval Order, by wire transfer in accordance with instructions to be provided by Lead Counsel
b.     SEK, on behalf of itself, shall pay or cause to be paid two million ($2,000,000) of the Settlement Amount within ten (10) calendar days after the later to occur of (i) receipt from Lead Counsel of the information necessary to effectuate a 
    9

transfer of funds to the Escrow Account by check, including the account name and “payable to” information, and a signed W-9 reflecting a valid taxpayer identification number for the qualified settlement fund in which the Settlement Amount is to be deposited, and (ii) the entry of the Judgment granting final approval of the Settlement. 
If either payment due date falls on a weekend or federal holiday, the payment due date will be on the next business day.  Orrstown and SEK are each only responsible for payment of that portion of the Settlement Amount set forth above as their respective portion of the Settlement Amount.
2.2     If the entire Settlement Amount is not timely paid into the Escrow Account, Lead Counsel may terminate the Settlement but only if (i) Lead Counsel has notified Defendants’ Counsel in writing via e-mail of Lead Counsel’s intention to terminate the Settlement, and (ii) the entire Settlement Amount is not transferred into the Escrow Account within three (3) calendar days after Lead Counsel has provided such written notice (with the same provision above if the payment date lands on a weekend or federal holiday). 
2.3     The Settlement Fund shall be applied as follows 
(a)    to pay all Notice and Administration Expenses;
(b)    to pay the Taxes and Tax Expenses described in ¶2.8 hereof;
(c)    to pay attorneys’ fees and expenses of counsel for Plaintiff (“Fee and Expense Award”), if and to the extent allowed by the Court; and,
(d)    after the Effective Date, to distribute the Net Settlement Fund to Authorized Claimants as allowed by the Stipulation, the Plan of Allocation, or the Court.
2.4    The obligations incurred pursuant to this Stipulation shall be in full and final disposition and settlement of all Released Claims. The Settlement Amount paid by Defendants or on behalf of Defendants is the sole monetary responsibility of the Released Parties under this Stipulation. 
2.5    The Released Parties are not responsible for payment of Notice and Administration Expenses, other than out of the Settlement Fund, as provided herein. 
B.    The Escrow Agent
2.6    The Escrow Agent shall invest the Settlement Amount deposited pursuant to ¶2.1 -2.2 hereof in United States Agency or Treasury Securities or other instruments backed by the Full Faith & Credit of the United States Government or an Agency thereof, or fully insured by the United States Government or an Agency thereof and shall reinvest the proceeds of these instruments as they mature in similar instruments at their then-current market rates. All risks related to the investment of the Settlement Fund in accordance with the investment guidelines set forth in this paragraph shall be borne by the Settlement Fund and the Released Parties shall have no responsibility for, interest in, or liability whatsoever with respect to investment decisions or the actions of the Escrow Agent, or any transactions executed by the Escrow Agent. The Escrow 
    10

Agent shall not disburse the Settlement Fund except as provided in the Stipulation, by an order of the Court, or with the written agreement of Counsel for the Parties.
2.7    Subject to further order(s) and/or directions as may be made by the Court, or as provided in the Stipulation, the Escrow Agent is authorized to execute such transactions as are consistent with the terms of the Stipulation. The Released Parties shall have no responsibility for, interest in, or liability whatsoever with respect to the actions of the Escrow Agent, or any transaction executed by the Escrow Agent. All funds held by the Escrow Agent shall be deemed and considered to be in custodia legis of the Court, and shall remain subject to the jurisdiction of the Court, until such time as such funds shall be distributed pursuant to the Stipulation and/or further order(s) of the Court.
 C.    Taxes
2.8    (a) The Settling Parties and the Escrow Agent agree to treat the Settlement Fund as being at all times a “qualified settlement fund” within the meaning of Treas. Reg. §1.468B-1. In addition, the Escrow Agent shall timely make such elections as necessary or advisable to carry out the provisions of ¶2.8, including the “relation-back election” (as defined in Treas. Reg. §1.468B-1) back to the earliest permitted date. Such elections shall be made in compliance with the procedures and requirements contained in such regulations. The Escrow Agent is responsible for timely and properly preparing and delivering the necessary documentation for signature by all necessary parties, and thereafter causing the appropriate filing to occur.
(b)    For the purpose of §1.468B of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder, the “administrator” shall be the Claims Administrator. The Claims Administrator shall timely and properly file all informational and other tax returns necessary or advisable with respect to the Settlement Fund (including, without limitation, the returns described in Treas. Reg. §1.468B-2(k)). Such returns (as well as the election described in ¶2.8(a) hereof) shall be consistent with this ¶2.8 and in all events shall reflect that all Taxes (including any estimated Taxes, interest or penalties) on the income earned by the Settlement Fund shall be paid out of the Settlement Fund as provided in ¶2.8(c) hereof.
(c)    All (i) Taxes (including any estimated Taxes, interest or penalties) arising with respect to the income earned by the Settlement Fund, including any Taxes or tax detriments that may be imposed upon the Released Parties or their counsel with respect to any income earned by the Settlement Fund for any period, after the deposit of the Settlement Amount, during which the Settlement Fund does not qualify as a “qualified settlement fund” for federal or state income tax purposes, and (ii) Tax Expenses, shall be paid out of the Settlement Fund; in all events the Released Parties and their counsel shall have no liability or responsibility for the Taxes or the Tax Expenses. Further, Taxes and Tax Expenses shall be treated as, and considered to be, a cost of administration of the Settlement Fund and shall be timely paid by the Escrow Agent out of the Settlement Fund without prior order from the Court and the Escrow Agent shall be authorized (notwithstanding anything herein to the contrary) to withhold from distribution to Authorized Claimants any funds necessary to pay such amounts, including the establishment of adequate reserves for any Taxes and Tax Expenses (as well as any amounts that may be required to be withheld under Treas. Reg. §1.468B-2(l)(2)); neither the Released Parties nor their counsel are responsible nor shall they have any liability for any Taxes or Tax Expenses. The Settling Parties 
    11

agree to cooperate with the Escrow Agent, each other, and their tax attorneys and accountants to the extent reasonably necessary to carry out the provisions of this ¶2.8.
D.     Class Certification
2.9    Solely for purposes of the Settlement, Defendants stipulate and agree to (a) certification of the Litigation as a class action pursuant to Rules 23(a) and 23(b)(3) of the Federal Rules of Civil Procedure on behalf of the Class; (b) certification of Plaintiff as the Class representative for the Class; and (c) appointment of Lead Counsel as Class counsel for the Class pursuant to Rule 23(g) of the Federal Rules of Civil Procedure. If the Settlement does not become effective for any reason, the stipulations provided for in this paragraph shall be null and void and shall not be referred to or used in any way in this Action or in any litigation, and the position of the Parties with respect to class action certification will be restored to that set forth in Section IV.7.
E.    Termination of Settlement
2.10    In the event that the Stipulation is not approved or the Stipulation is terminated, canceled, or fails to become effective for any reason, the Settlement Fund less Notice and Administration Expenses, Taxes and Tax Expenses paid, incurred, or due and owing in connection with the Settlement, shall be refunded pursuant to written instructions from Defendants’ Counsel in accordance with Section IV.7 herein.
3.    Preliminary Approval Order and Settlement Hearing
3.1    Upon execution of this Stipulation, Lead Counsel shall promptly submit the Stipulation and related materials to the Court, file an unopposed motion for preliminary approval of the Settlement as set forth in the Stipulation, and apply for entry of the Preliminary Approval Order, substantially in the form of Exhibit A attached hereto, requesting, inter alia, preliminary approval of the Settlement, approval for mailing of the Notice and publication of a Summary Notice (substantially in the forms of Exhibits A-1 and A-3 attached hereto), and certification of the Class for settlement purposes. The Notice shall include, inter alia, the general terms of the Settlement set forth in the Stipulation, the proposed Plan of Allocation, the general terms of the Fee and Expense Application, and a request to set a date for the Court to hold the Settlement Hearing.
4.    Releases
4.1    The obligations incurred pursuant to this Stipulation are (a) subject to approval by
the Court and entry of the Judgment, reflecting such approval becoming Final; and, (b) in full and final disposition of the Action with respect to the Released Parties and Released Claims.
4.2    Upon the Effective Date of the Settlement, by operation of the Judgment, Plaintiff, on behalf of itself and the Plaintiff’s Released Parties, and the Class Members shall have, fully, finally, and forever compromised, settled, released, resolved, relinquished, waived and discharged each and every Released Plaintiff’s Claim against Defendants’ Released Parties, and shall forever be barred and enjoined from commencing, instituting, prosecuting, or maintaining any and all of the Released Claims against any of the Defendants’ Released Parties in any jurisdiction. 
    12

4.3    Upon the Effective Date of the Settlement, by operation of the Judgment, Defendants shall have, fully, finally, and forever compromised, settled, released, resolved, relinquished, waived and discharged each and every Released Defendants’ Claim against Plaintiff’s Released Parties, and against each other, and shall forever be barred and enjoined from commencing, instituting, prosecuting, or maintaining any and all of the Released Claims against any of the Plaintiff’s Released Parties and against each other in any jurisdiction. 
4.4    Notwithstanding ¶¶ 4.2-4.3 above, nothing in the Judgment shall bar any action by any of the Settling Parties to enforce or effectuate the terms of this Stipulation or the Judgment.
5.    Notice, Claims Administration, Calculation of Claims and Supervision and Distribution of the Settlement Fund
5.1    Except as otherwise provided herein, the Net Settlement Fund shall be held in the Escrow Account until the Effective Date.
    5.2    Pursuant to the Class Action Fairness Act (“CAFA”), 28 U.S.C. § 1715, no later than ten (10) days after the Stipulation is filed with the Court, Defendants will serve proper notice of the proposed Settlement upon the appropriate representatives and, within three (3) business days thereafter, will provide written notification to Lead Counsel and the Court that they have done so. Defendants shall be responsible for all costs and expenses related to such notification.
5.3    Within ten (10) calendar days after the entry of the Preliminary Approval Order, at no cost to Plaintiff or the Class, Defendants shall provide Plaintiff with Orrstown’s transfer agent’s lists or records in electronic searchable form (such as Excel) of the names and addresses of Persons who were record holders of Orrstown common stock during the Class Period (“Orrstown Notice List”) , to the extent such records are retrievable by the transfer agent(s).  
5.4    Within twenty-one (21) calendar days after the entry of the Preliminary Approval Order, the Claims Administrator will mail the Notice and Claim Form to all members of the Class who can be identified with reasonable effort utilizing the Orrstown Notice List and proprietary lists maintained by the Claims Administrator of banks, brokers and other nominees. In the Notice, the nominees will be directed to provide names and addresses to the Claims Administrator or will request copies of the Notice/Claim Form that they will mail to their customers. Within twenty-eight (28) calendar days after the entry of the Preliminary Approval Order, the Claims Administrator will cause the publication or dissemination of the Summary Notice once each in Investors’ Business Daily and over PRNewswire.
5.5    Lead Counsel shall cause to be provided to Defendants’ Counsel copies of all requests for exclusion, and any written revocation of requests for exclusion, as expeditiously as possible, and within the sooner of three (3) calendar days of Lead Counsel’s receipt or fourteen (14) calendar days prior to the Settlement Hearing.
5.6    Prior to the Effective Date, and after the Court enters the Preliminary Approval Order, without further approval from Defendants or further order of the Court, Lead Counsel may pay from the Settlement Fund reasonable Notice and Administration Expenses incurred of up to $125,000. Additional amounts may be paid before the Effective Date upon approval from 
    13

Defendants or order of the Court. Taxes may be paid as incurred without further order of the Court or approval of Defendants. In the event the Effective Date of the Settlement does not occur, such payments shall be made from the Settlement Fund without recourse to Plaintiff or Lead Counsel.   
5.7    After the Effective Date of the Settlement, without further approval of Defendants or further order of the Court, Notice and Administration Expenses may be paid as incurred. Defendants shall have no responsibility for, and no liability whatsoever with respect to, notice to the Class or any Notice and Administrative Expenses, except that Defendants shall be responsible for providing any required notice under CAFA at their own expense, as provided for herein.
5.8    Within 120 calendar days after the mailing of the Notice or such other time as may be set by the Court, each Person claiming to be an Authorized Claimant shall be required to submit to the Claims Administrator a completed Claim Form, substantially in the form of Exhibit A-2 attached hereto, signed under penalty of perjury and supported by such documents as are specified therein. Any Person who files a Claim Form shall reasonably cooperate with the Claims Administrator, including by promptly responding to any inquiry made by the Claims Administrator.
5.9    After the Effective Date, and in accordance with the terms of the Stipulation, the Plan of Allocation, or such further approval and further order(s) of the Court as may be necessary or as circumstances may require, the Net Settlement Fund shall be distributed to Authorized Claimants, subject to and in accordance with the following provisions in this Section IV.5. 
5.10    The Claims Administrator, subject to such supervision and direction of the Court as may be necessary or as circumstances may require, shall administer and calculate the claims submitted by Class Members and shall oversee distribution of the Net Settlement Fund to Authorized Claimants in accordance with the terms of this Stipulation and the Court-approved Plan of Allocation.
5.11    All Members of the Class (except Persons who have timely and validly requested exclusion from the Class) shall be bound by all determinations and judgments in the Litigation concerning the Settlement, including, but not limited to, the releases provided for therein, whether favorable or unfavorable to the Class, regardless of whether such Persons seek or obtain by any means, including, without limitation, by submitting a Proof of Claim and Release form or any similar document, any distribution from the Settlement Fund or the Net Settlement Fund.
5.12    Except as otherwise ordered by the Court, all Class Members who fail to timely submit a valid Proof of Claim and Release or a request for exclusion within the period as may be ordered by the Court or otherwise allowed, shall be forever barred from receiving any payments pursuant to the Stipulation and the Settlement, but will in all other respects be subject to and bound by the provisions of the Stipulation, the releases contained herein, and the Judgment, and will be barred from bringing any action against the Released Parties concerning the Released Claims. Notwithstanding the foregoing, Lead Counsel shall have the discretion (but not an obligation) to accept late-submitted claims for processing by the Claims Administrator so long as distribution of the Net Settlement Fund to Authorized Claimants is not materially delayed thereby.
    14

5.13    After the Effective Date, and in accordance with the terms of the Stipulation, the Plan of Allocation, or such further approval and further order(s) of the Court as may be necessary or circumstances require, the Net Settlement Fund shall be distributed to the Authorized Claimants whose recognized claim computes to $10.00 or more. 
5.14    If there is any balance remaining in the Net Settlement Fund after a reasonable period of time after the date of the initial distribution of the Net Settlement Fund, Lead Counsel shall, if feasible, reallocate (which reallocation may occur on multiple occasions) such balance among Authorized Claimants in an equitable and economic fashion. Thereafter, any de minimis balance which still remains in the Net Settlement Fund shall be donated to MidPenn Legal Services, or a non-profit and non-sectarian organization(s) chosen by the Court. 
5.15    Lead Counsel shall be responsible for supervising the administration of the Settlement and disbursement of the Net Settlement Fund by the Claims Administrator. Lead Counsel shall have the discretion, but not the obligation, to advise the Claims Administrator to waive what Lead Counsel deem to be de minimis or formal or technical defects in any Proof of Claim submitted, or to accept untimely claims if distribution of the Net Settlement Fund will not be materially delayed thereby. Lead Counsel shall bear no responsibility for the exercise or non-exercise of this discretion. 
5.16     Defendants shall have no responsibility for, interest in, or liability whatsoever with respect to the distribution of the Net Settlement Fund, the Plan of Allocation, the determination, administration, or calculation of claims, the payment or withholding of Taxes or Tax Expenses, or any losses incurred in connection therewith, subject to Court approval. 
5.17    No Person shall have any claim of any kind against the Defendants with respect to the matters set forth in ¶¶5.6-5.15 and Plaintiff’s Released Parties release the Defendants’ Released Parties from any and all liability and claims arising from or with respect to the administration, investment or distribution of the Settlement Fund.
5.18    No Person shall have any claim of any kind against Defendants, Plaintiff, Lead Counsel, Defendants’ Counsel, or the Claims Administrator, based on determinations or distributions made substantially in accordance with the Stipulation and the Settlement contained herein, the Plan of Allocation, or further order(s) of the Court.
5.19    It is understood and agreed by the Settling Parties that any proposed Plan of Allocation of the Net Settlement Fund, including, but not limited to, any adjustments to an Authorized Claimant’s claim set forth therein, is not a part of the Stipulation and is to be considered by the Court separately from the Court’s consideration of the fairness, reasonableness, and adequacy of the Settlement set forth in the Stipulation, and any order or proceeding relating to the Plan of Allocation shall not operate to terminate or cancel the Stipulation or affect the finality of the Court’s Judgment approving the Stipulation and the Settlement.
6.    Plaintiff’s Attorneys’ Fees and Expenses
6.1    Lead Counsel will submit to the Court a Fee and Expense Application, for an award from the Settlement Fund of attorneys’ fees and payment of expenses incurred in prosecuting the Action, including any earnings on such amounts at the same rate and for the 
    15

same periods as earned by the Settlement Fund. Lead Counsel reserves the right to make additional applications for fees and expenses incurred. Defendants take no position on Lead Counsel’s Fee and Expense Application.
6.2    Any attorneys’ fees and expenses, as awarded by the Court, shall be paid to Lead Counsel from the Settlement Fund, as ordered, immediately after the Court executes the Judgment and an order awarding such fees and expenses, notwithstanding the existence of any timely filed objections thereto or to the Settlement, or potential for appeal therefrom, or collateral attack on Fee and Expense Application, the Settlement or any part thereof. 
 6.3    If the Effective Date does not occur, or the Judgment or the order making the Fee and Expense Award is reversed or modified, or the Stipulation is canceled or terminated for any other reason, and such reversal, modification, cancellation or termination becomes Final and not subject to review, and if the Fee and Expense Award has been paid to any extent, then Lead Counsel shall make the appropriate refund or repayment to the Settlement Fund no later than thirty (30) calendar days after receiving notice of the termination of the Settlement pursuant to this Stipulation, or notice from a court of appropriate jurisdiction of the disapproval of the Settlement by a Final non-appealable court order, or notice of any reduction or reversal of the award of attorneys’ fees and/or expenses by Final non-appealable court order.
 6.4    The procedure for and allowance or disallowance by the Court of Lead Counsel’s Fee and Expense Application, to be paid out of the Settlement Fund, are to be considered by the Court separately from the Court’s consideration of the fairness, reasonableness and adequacy of the Settlement set forth in the Stipulation, and shall have no effect on the terms of the Stipulation or on the validity or enforceability of the Settlement. The approval of the Settlement, and it becoming Final, shall not be contingent on any fee or expense award to Lead Counsel, or any appeals from such awards. Any order or proceeding relating to the Fee and Expense Application, or any appeal from any order relating thereto or reversal or modification thereof, shall not operate to terminate or cancel the Stipulation, or affect or delay the finality of the Judgment approving the Stipulation and the Settlement of the Litigation set forth therein.
6.5    Any fees and/or expenses awarded by the Court shall be paid solely from the Settlement Fund. 
7.    Conditions of Settlement, Effect of Disapproval, Cancellation or Termination
7.1    The Effective Date of the Stipulation shall be conditioned on the occurrence of all of the following events 
(a)    the Settlement Amount has been deposited into the Escrow Account;
(b)    the Court has entered the Preliminary Approval Order, substantially in the form set forth in Exhibit A attached hereto;
(c)    the Court has granted final approval to the Settlement as described herein, following notice to the Class and a hearing, as required by Rule 23 of the Federal Rules of Civil Procedure, and entered the Judgment, substantially in the form of Exhibit B attached hereto;
    16

(d)    Defendants have not exercised their option to terminate the Stipulation pursuant to ¶7.3 hereof; and
(e)    the Judgment has become Final.
7.2    Upon the Effective Date, any and all remaining interest or right of Defendants in or to the Settlement Fund, if any, shall be absolutely and forever extinguished and the Releases herein shall be effective. If the conditions specified in ¶7.1 hereof are not met, then the Stipulation shall be canceled and terminated subject to ¶7.4 hereof unless Lead Counsel and Defendants’ Counsel mutually agree in writing to proceed with the Stipulation.
7.3    Defendants shall have the option to terminate the Settlement if Class Members who in the aggregate purchased more than a certain number of shares of Orrstown Financial Services, Inc. common stock during the Class Period, timely and validly exclude themselves from the Class in accordance with and in the manner set forth in the Notice, as set forth in a confidential separate agreement (the “Supplemental Agreement”) to be executed between Plaintiff and Defendants, by and through their counsel, concurrently with this Stipulation. The terms of the Supplemental Agreement shall not be disclosed in any other manner other than the statements herein and in the Notice, or as otherwise provided in the Supplemental Agreement unless and until the Court otherwise directs or a dispute arises between Plaintiff and Defendants concerning its interpretation or application. If submission of the Supplemental Agreement to the Court is required for resolution of a dispute or is otherwise ordered by the Court, the Parties will undertake to have the Court review the Supplemental Agreement in camera without filing it on the docket. If the Court requires that the Supplemental Agreement be filed, the Parties shall request that it be filed under seal or with the percentage redacted.
7.4    Plaintiff and Defendants each shall have the right to terminate the Settlement and this Stipulation by providing written notice of their election to do so (“Termination Notice”) to all other parties hereto within thirty (30) calendar days only if one or more of the following occurs: 
(a)     the Court’s refusal to enter the Preliminary Approval Order substantially in the form set forth in Exhibit A attached hereto; 
(b)     the Court’s refusal to approve this Stipulation; 
(c)     the Court’s refusal to enter the Judgment, or a judgment substantially in the form of Exhibit B attached hereto; 
(d)     the date upon which the Judgment is reversed or vacated or altered following any appeal taken therefrom, or is successfully collaterally attacked; or 
(e)     the failure of the Effective Date to occur for any reason. 
For avoidance of doubt, no order of the Court or modification or reversal on appeal of any order of the Court concerning the Plan of Allocation, Fee and Expense Application, or the amount of any attorneys’ fees, expenses, and interest awarded by the Court to Lead Counsel or any amount awarded to Plaintiff shall operate to terminate or cancel this Stipulation or constitute grounds for cancellation or termination of the Stipulation.
    17

7.5    Unless otherwise ordered by the Court, if the Stipulation shall terminate, or be canceled, or shall not become effective for any reason, within five (5) business days after written notification of such event is sent by counsel for the terminating Settling Party to the other Settling Parties and the Escrow Agent, the Settlement Fund (including accrued interest), less expenses which have either been disbursed or are chargeable to the Settlement Fund pursuant to ¶¶ 2.8, 2.10, 5.4, 5.6 hereof, shall be refunded from the Escrow Account pursuant to written instructions from Defendants’ Counsel. The Escrow Agent or its designee shall apply for any tax refund owed on the Settlement Amount and pay the proceeds, after deduction of any fees or expenses incurred in connection with such application(s) for refund, pursuant to written instructions from Defendants’ Counsel.
7.6    If the Stipulation is not approved by the Court or the Settlement set forth in the Stipulation is terminated or fails to become effective in accordance with its terms, the Settling Parties shall be restored to their respective positions in the Litigation as of November 1, 2022. In such event, the terms and provisions of the Stipulation, with the exception of Section VI.1, and ¶¶ 2.6-2.8, 6.3, 7.5-7.7, and 9.5 hereof, shall have no further force and effect with respect to the Settling Parties and shall not be used in this Litigation or in any other proceeding for any purpose, and any judgment or order entered by the Court in accordance with the terms of the Stipulation shall be treated as vacated, nunc pro tunc. No order of the Court or modification or reversal on appeal of any order of the Court or modification or reversal on appeal of any order of the Court concerning the Plan of Allocation, Fee and Expense Application, or the amount of any attorneys’ fees, costs, expenses, and interest awarded by the Court to Lead Counsel shall operate to terminate or cancel this Stipulation or constitute grounds for cancellation or termination of the Stipulation. 
7.7    If the Effective Date does not occur, or if the Stipulation is terminated pursuant to its terms, neither Plaintiff nor Lead Counsel shall have any obligation to repay any amounts disbursed pursuant to ¶¶ 2.8, 2.10, 5.4, 5.6. In addition, any expenses already incurred pursuant to ¶¶ 2.8, 2.10, 5.4, 5.6 hereof at the time of such termination or cancellation but which have not been paid, shall be paid by the Escrow Agent in accordance with the terms of the Stipulation prior to the balance being refunded in accordance with ¶7.5 hereof.
7.8    In the event of a final order of a court of competent jurisdiction, not subject to any further proceedings, determining the transfer of the Settlement Fund, or any portion thereof, by or on behalf of Defendants to be a voidable preference, voidable transfer, fraudulent transfer, or similar transaction under Title 11 of the United States Code (Bankruptcy), or applicable state law, and any portion thereof is required to be refunded and such amount is not promptly deposited in the Settlement Fund by or on behalf of any Defendant, then, at the election of Plaintiff, as to Defendants, the Settlement may be terminated and the Judgment entered in favor of Defendants
pursuant to the Settlement shall be null and void and the Settlement Fund shall be promptly returned. Alternatively, at the election of Plaintiff, the Settling Parties shall jointly move the Court to vacate and set aside the release given and the Judgment entered in favor of the Defendants and that the Defendants and Plaintiff and the Members of the Class shall be restored to their litigation positions as of November 1, 2022, and the Settlement Fund shall be promptly returned.
    18

8.    No Admission of Wrongdoing or Concession by any Settling Party
8.1    The Settlement, this Stipulation (whether or not consummated) and the Exhibits hereto, including the contents thereof, the negotiations leading to the execution of this Stipulation and the Settlement, any proceedings taken pursuant to or in connection with this Stipulation, and/or approval of the Settlement (including any arguments proffered in connection therewith), and any communication relating thereto, are not evidence, nor an admission or concession by any Settling Party or its counsel, of any fault, liability or wrongdoing whatsoever, as to any facts or claims alleged or asserted in the Action, or any other actions or proceedings, or as to the validity or merit of any of the claims or defenses alleged or asserted in any such action or proceeding.
8.2    Neither the Settlement, this Stipulation (whether or not consummated) and the Exhibits hereto, including the contents thereof, the negotiations leading to the execution of this Stipulation and the Settlement, nor any proceedings taken pursuant to or in connection with this Stipulation, and/or approval of the Settlement (including any arguments proffered in connection therewith) shall be (a) offered or received against any Settling Party as evidence of or construed as or deemed to be evidence of any presumption, concession, or admission by any Settling Party of the truth of any allegations by Plaintiff, or the validity of any claim or defense that has been or could have been asserted in the Litigation, or the validity or deficiency of any defense that has been or could have been asserted in the Litigation or in any other litigation, including, but not limited to, litigation of the Released Claims, or that the consideration to be given hereunder represents the amount which could be or would have been recovered after trial or in any proceeding other than this Settlement; or, (b) offered or received against any Settling Party as evidence of a presumption, concession, or admission of any fault, misrepresentations, or omission, the absence of any fault, misrepresentation, or omission, with respect to any statement or written document approved or made by any Defendant, or against Plaintiff or any Member of the Class as evidence of any infirmity in the claims of Plaintiff and the Class; provided, however, that if this Stipulation is approved by the Court, the Settling Parties may refer to it to effectuate the releases granted them hereunder.
8.4    Settling Parties may file this Stipulation and/or Judgment from this Action in any other action that may be brought against them in order to support a defense or counterclaim based on principles of res judicata, collateral estoppel, release, good faith settlement, judgment bar or reduction, or any theory of claim preclusion or issue preclusion or similar defense or counterclaim.
9.    Miscellaneous Provisions
9.1    The Settling Parties (a) acknowledge that it is their intent to consummate this Stipulation; and (b) agree to cooperate to the extent reasonably necessary to effectuate and implement all terms and conditions of this Stipulation and to exercise their best efforts to accomplish the foregoing terms and conditions of this Stipulation.
9.2    The Settling Parties intend this Settlement to be a final and complete resolution of all disputes between them with respect to the Litigation. The Judgment will contain a finding that, during the course of the Litigation, the Settling Parties and their respective counsel at all times complied with the requirements of Federal Rule of Civil Procedure 11, and, based upon the publicly available information at the time, this Action was filed in good faith, and was not 
    19

frivolous. The Settling Parties agree that the Settlement Amount and the other terms of the Settlement were negotiated in good faith by the Settling Parties, and reflect a settlement that was reached voluntarily after consultation with competent legal counsel.
9.3    Plaintiff and its counsel and Defendants and their counsel shall not make any accusations of wrongful or actionable conduct by any party concerning the prosecution, defense, and resolution of the Action, and shall not otherwise suggest that the Settlement embodied in this Stipulation constitutes an admission of any claim or defense alleged. The Settling Parties reserve their right to rebut, in a manner that such party determines to be appropriate (while protecting from disclosure confidential communications made in furtherance of settlement), any contention made in any public forum regarding the Litigation, including that the Litigation was brought without a reasonable basis.
9.4    All agreements made and orders entered during the course of the Litigation relating to the confidentiality of information shall survive this Stipulation.
9.5    Whether or not this Stipulation is approved by the Court and whether or not the Settlement embodied in this Stipulation is consummated, the Settling Parties and their counsel shall use their best efforts to keep all negotiations, discussions, acts performed, agreements, drafts, documents signed and proceedings had in connection with this Stipulation confidential. Notwithstanding the foregoing, the Settling Parties agree that this Stipulation, when signed by or on behalf of the Settling Parties, will be made public and may be filed publicly as part of any motion for preliminary or final approval of the Settlement.
9.6    All of the Exhibits to the Stipulation are material and integral parts hereof and are fully incorporated herein by this reference. Notwithstanding the foregoing, if there is a conflict or inconsistency between the terms of this Stipulation and any exhibit attached thereto, the terms of this Stipulation shall prevail.
 9.7    Defendants shall determine the form of notice to be provided for the purpose of satisfying the requirements of the Class Action Fairness Act and will identify those who are entitled to receive notice as provided for therein. Defendants shall be responsible for providing such notice within ten (10) calendar days after this Stipulation is filed with the Court, as provided for in 28 U.S.C. §1715(b) and for all expenses and costs related thereto.
9.8    The Stipulation may be amended or modified only by a written instrument signed by or on behalf of all Settling Parties or their respective successors-in-interest.
9.9    The waiver by any Party of any breach of this Stipulation by any other Party shall not be deemed a waiver of any other prior or subsequent breach of this Stipulation.
9.10    The Stipulation and the Exhibits attached hereto and the Supplemental Agreement constitute the entire agreement among the Parties hereto and no representations, warranties or inducements have been made to any party concerning the Stipulation or its Exhibits other than the representations, warranties, and covenants contained and memorialized in such documents. Except as otherwise provided herein or in a separate written agreement, each party shall bear its own costs.
    20

9.11    Lead Counsel, on behalf of the Class, is expressly authorized by Plaintiff to take all appropriate action required or permitted to be taken by the Class pursuant to the Stipulation to effectuate its terms and is expressly authorized to enter into any modifications or amendments to the Stipulation on behalf of the Class which it deems appropriate.
9.12    Each counsel or other Person executing the Stipulation or any of its Exhibits on behalf of any party hereto hereby warrants that such Person has the full authority to do so.
9.13    The Stipulation may be executed in one or more counterparts. All executed counterparts and each of them shall be deemed to be one and the same instrument. A complete set of executed counterparts shall be filed with the Court. Signatures sent by facsimile or pdf via e- mail shall be deemed originals.
9.14    The Stipulation shall be binding upon, and inure to the benefit of, the successors and assigns of the Parties hereto.
9.15    The Court shall retain jurisdiction with respect to implementing and enforcing the terms of the Stipulation, and all Settling Parties submit to the Court’s jurisdiction for purposes of implementing and enforcing the Settlement embodied in the Stipulation and matters related to it. Any such actions, motions, or disputes arising under or to enforce this Stipulation or any portion thereof shall be commenced and maintained only in this Court.
9.16    Plaintiff and Defendants agree to suspend all activity in this Litigation except as necessary to present the Settlement to the Court and to cooperate in seeking the Court’s approval of the Preliminary Approval Order, which provides that all activity in this Litigation shall be stayed, and all Class Members shall be barred and enjoined from prosecuting any of the Released Claims against any of the Released Parties, pending final approval of the Settlement.
9.17    Nothing in the Stipulation, or the negotiations relating thereto, is intended to or shall be deemed to constitute a waiver of any applicable privilege or immunity, including, without limitation, attorney-client privilege, joint defense privilege, or work product protection.
9.18    Without further order of the Court, the Parties may agree to reasonable extensions of time to carry out any of the provisions of this Stipulation.
9.19    This Stipulation and the Exhibits hereto shall be considered to have been negotiated, executed and delivered, and to be wholly performed, in the Commonwealth of Pennsylvania, and the rights and obligations of the Parties to the Stipulation shall be construed and enforced in accordance with, and governed by, the internal, substantive laws of the Commonwealth of Pennsylvania without giving effect to Pennsylvania’s choice-of-law principles. This Stipulation shall not be construed more strictly against one party than another merely by virtue of the fact that it, or any part of it, may have been prepared by counsel for one of the Parties, it being recognized that it is the result of arm’s-length negotiations between all Parties and that all Parties have contributed substantially and materially to the preparation of this Stipulation.
9.20    Within ten (10) calendar days of entry of Final Judgment by the Court, each party receiving CSI shall certify to Orrstown’s counsel that all such CSI has been destroyed, or deleted if electronically stored.  The Parties understand and agree that such certifications may be 
    21

provided to those entities who have asserted that documents, information or things were protected by the CSI privilege.
IN WITNESS WHEREOF, the Parties have caused this Stipulation to be executed, by their duly authorized attorneys, as of December 7, 2022.
						
	

/s/ Nicholas E. Chimicles                                    
Nicholas E. Chimicles
Kimberly Donaldson-Smith
Timothy N. Mathews
CHIMICLES SCHWARTZ KRINER
& DONALDSON-SMITH LLP
One Haverford Centre
361 West Lancaster Avenue
Haverford, PA 19041
Telephone: (610) 642-8500
Fax: (610) 649-3633
nick@chimicles.com 
kimdonaldsonsmith@chimicles.com  
tnm@chimicles.com 

Counsel for Plaintiff Southeastern Pennsylvania Transportation Authority
	

/s/ David J. Creagan                                    
David J. Creagan
David E. Edwards
Farzana Islam
WHITE AND WILLIAMS, LLP
1650 Market Street
One Liberty Place, Suite 1800
Philadelphia, PA 19103
215-864-7032
Email: creagand@whiteandwilliams.com
edwardsd@whiteandwilliams.com
islamf@whiteandwilliams.com

Counsel for Orrstown Defendants

/s/  Michael Luongo                                     
Seth L. Laver 
Michael P. Luongo
GOLDBERG SEGALLA LLP
1700 Market Street
Suite 1418
Philadelphia, PA 19103
267-519-6820
Fax: 267-519-6801
Email: slaver@goldbergsegalla.com

Counsel for Defendant Smith Elliott Kearns & Company, LLC

/s/  Bradley R. Wilson                                 
Bradley R. Wilson
Emily R. Barreca
WACHTELL, LIPTON, ROSEN 
& KATZ
51 West 52nd Street
New York, NY 10019
(212) 403-1000
Email: BRWilson@wlrk.com

Counsel for Defendants Piper Sandler & Co. and Janney Montgomery Scott LLC

    22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00351-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00351-of-00352.parquet"}]]