Document:

Exhibit 10.1
SUBORDINATED NOTE PURCHASE AGREEMENT
This SUBORDINATED NOTE PURCHASE AGREEMENT (this “Agreement”) is dated as of November 5, 2021, and is made by and between National Bank Holdings Corporation, a Delaware corporation (the “Company”), and each purchaser of the Subordinated Note (as defined herein) identified on the signature page hereto (each a “Purchaser” and collectively, the “Purchasers”).
RECITALS
WHEREAS, the Company has requested that the Purchasers purchase from the Company up to $40,000,000 in aggregate principal amount of Subordinated Notes, which aggregate amount is intended to be eligible to qualify as Tier 2 Capital (as defined herein);
WHEREAS, the Company has engaged Keefe, Bruyette & Woods, Inc. as its exclusive placement agent (“Placement Agent”) for the offering of the Subordinated Notes;
WHEREAS, each of the Purchasers is an “accredited investor” as such term is defined in Rule 501(a)(1)-(3) and (7) of Regulation D (“Regulation D”) adopted under the Securities Act of 1933, as amended (the “Securities Act”), or a QIB (as defined herein); 
WHEREAS, the offer and sale of the Subordinated Notes by the Company is being made in reliance upon the exemptions from registration available under Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D; and
WHEREAS, each Purchaser is willing to purchase from the Company a Subordinated Note in the principal amount set forth on such Purchaser’s signature page to this Agreement (the “Subordinated Note Amount”) in accordance with the terms, subject to the conditions and in reliance on, the recitals, representations, warranties, covenants and agreements set forth herein and in the Subordinated Notes.
NOW, THEREFORE, in consideration of the mutual covenants, conditions and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:
AGREEMENT
1.DEFINITIONS.
1.1Defined Terms.  The following capitalized terms used in this Agreement have the meanings defined or referenced below.  Certain other capitalized terms used only in specific sections of this Agreement may be defined in such sections. 
“Affiliate(s)” means, with respect to any Person, such Person’s immediate family members, partners, members or parent and Subsidiary corporations, and any other Person directly or indirectly controlling, controlled by, or under common control with said Person and their respective Affiliates.

“Agreement” has the meaning set forth in the preamble hereto.
“Bank” means NBH Bank, a Colorado state-chartered bank, member of the Federal Reserve Bank of Kansas City and wholly-owned Subsidiary of the Company.
“Business Day” means any day other than a Saturday, Sunday or any other day on which banking institutions in the State of Delaware are permitted or required by any applicable law or executive order to close.
“Bylaws” means the Amended and Restated Bylaws of the Company, as in effect on the Closing Date.
“Charter” means the Certificate of Incorporation of the Company, as amended and as in effect on the Closing Date. 
“Closing” has the meaning set forth in Section 2.2.
“Closing Date” means November 5, 2021.
“Company” has the meaning set forth in the preamble hereto and shall include any successors to the Company.
“Company Covered Person” has the meaning set forth in Section 4.2.4.
“Company’s Reports” means (i) the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the SEC on February 24, 2021, including the audited financial statements of the Company contained therein; (ii) the Company’s Quarterly Reports on Form 10-Q for the quarter ended March 31, 2021, as filed with the SEC on May 4, 2021, and for the quarter ended June 30, 2021, as filed with the SEC on August 4, 2021, including the unaudited financial statements of the Company contained therein and (iii) the Company’s public reports for the year ended December 31, 2020 and the periods ended March 31, 2021 and June 30, 2021; as filed with the FRB as required by regulations of the FRB. 
“control” (including the terms “controlling,” “controlled by” and “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.
“Disqualification Event” has the meaning set forth in Section 4.2.4.
“Equity Interest” means any and all shares, interests, participations or other equivalents (however designated) of capital stock of a corporation, any and all equivalent ownership interests in a Person which is not a corporation, and any and all warrants, options or other rights to purchase any of the foregoing.
“Event of Default” has the meaning set forth in the Subordinated Notes.
“Exchange Act” means the Securities Exchange Act of 1934, as amended.

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“FDIC” means the Federal Deposit Insurance Corporation.
“FRB” means the Board of Governors of the Federal Reserve System.
“GAAP” means generally accepted accounting principles in effect from time to time in the United States of America.
“Governmental Agency(ies)” means, individually or collectively, any federal, state, county or local governmental department, commission, board, regulatory authority or agency (including, without limitation, each applicable Regulatory Agency) with jurisdiction over the Company or any of its Subsidiaries.
“Governmental Licenses” has the meaning set forth in Section 4.3.
“Hazardous Materials” means flammable explosives, asbestos, urea formaldehyde insulation, polychlorinated biphenyls, radioactive materials, hazardous wastes, toxic or contaminated substances or similar materials, including, without limitation, any substances which are “hazardous substances,” “hazardous wastes,” “hazardous materials” or “toxic substances” under the Hazardous Materials Laws and/or other applicable environmental laws, ordinances or regulations.
“Hazardous Materials Laws” mean any laws, regulations, permits, licenses or requirements pertaining to the protection, preservation, conservation or regulation of the environment which relates to real property, including:  the Clean Air Act, as amended, 42 U.S.C. Section 7401 et seq.; the Federal Water Pollution Control Act, as amended, 33 U.S.C. Section 1251 et seq.; the Resource Conservation and Recovery Act of 1976, as amended, 42 U.S.C. Section 6901 et seq.; the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (including the Superfund Amendments and Reauthorization Act of 1986), 42 U.S.C. Section 9601 et seq.; the Toxic Substances Control Act, as amended, 15 U.S.C. Section 2601 et seq.; the Occupational Safety and Health Act, as amended, 29 U.S.C. Section 651 et seq., the Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C. Section 11001 et seq.; the Mine Safety and Health Act of 1977, as amended, 30 U.S.C. Section 801 et seq.; the Safe Drinking Water Act, 42 U.S.C. Section 300f et seq.; and all comparable state and local laws and regulations.
“Indebtedness” means:  (i) all obligations in respect of indebtedness for borrowed money that, according to GAAP as in effect from time to time, would be included in determining total liabilities as shown on the consolidated balance sheet of the Company; and (ii) all obligations for indebtedness of the type referred to in the preceding clause (i) of persons other than the Company or any of its Subsidiaries, secured by any lien on  property owned by the Company or any Subsidiary whether or not such obligations shall have been assumed (it being understood that the amount of such obligations described in clause (ii), for the purposes of this definition, shall be the lesser of the aggregate principal amount of such obligations and the fair market value (as determined by the Company in good faith) of the property of the Company or any Subsidiary securing such obligations); provided, however, Indebtedness shall not include deposits or other indebtedness created, incurred or maintained in the ordinary course of the Company’s or the Bank’s business (including, without limitation, federal funds purchased, advances from any Federal Home Loan Bank, secured deposits of municipalities, letters of credit issued by the 

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Company or the Bank or any other Subsidiary, repurchase arrangements and derivatives transactions and consistent with customary banking practices and applicable laws and regulations.
“Leases” means all leases, licenses or other documents providing for the use or occupancy of any portion of any Property, including all amendments, extensions, renewals, supplements, modifications, sublets and assignments thereof and all separate letters or separate agreements relating thereto.
“Material Adverse Effect” means any change or effect that (i) is or would be material and adverse to the financial condition, results of operations or business of the Company and its Subsidiaries, taken as a whole, or (ii) would materially impair the ability of the Company to perform its respective obligations under any of the Transaction Documents; provided, however, that “Material Adverse Effect” shall not be deemed to include the impact of (1) changes after the date of this Agreement in banking and similar laws, rules or regulations of general applicability or interpretations thereof by Governmental Agencies, (2) changes after the date of this Agreement in GAAP or regulatory accounting requirements applicable to financial institutions in the United States and their holding companies generally, (3) changes after the date of this Agreement in general economic or capital market conditions affecting financial institutions or their market prices generally and not specifically related to the Company or the Bank (4) direct effects of compliance with this Agreement on the operating performance of the Company or the Bank including expenses incurred by the Company, the Bank or the Purchasers in consummating the transactions contemplated by this Agreement, and (5) the effects of any action or omission taken by the Company with the prior written consent of the Purchasers, and vice versa, or as otherwise contemplated by this Agreement and the Subordinated Notes, (6) the effects of any declaration of a state of emergency by the government of the United States or any State of the United States; and (7) the effects of any epidemic, pandemic or disease outbreak, or continuation or extension of any epidemic, pandemic or disease outbreak, affecting the United States, except, in the case of the foregoing clauses (1), (2), (3), (6) or (7), to the extent that the Company is disproportionately adversely affected thereby relative to other financial institutions with similar operations. 
“Maturity Date” means November 15, 2031.
“Person” means an individual, a corporation (whether or not for profit), a partnership, a limited liability company, a joint venture, an association, a trust, an unincorporated organization, a government or any department or agency thereof (including a Governmental Agency) or any other entity or organization.
“Placement Agent” has the meaning set forth in the Recitals.
“Property” means any real property owned or leased by the Company or any Affiliate or Subsidiary of the Company.
“Purchaser” or “Purchasers” has the meaning set forth in the preamble hereto.
“QIB” means a “qualified institutional buyer” as defined in Rule 144A under the Securities Act.
“Regulation D” has the meaning set forth in the Recitals.

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“Regulatory Agency” means any federal or state agency charged with the supervision or regulation of depository institutions or holding companies of depository institutions, or engaged in the insurance of depository institution deposits, or any court, administrative agency or commission or other authority, body or agency having supervisory or regulatory authority with respect to the Company, the Bank or any of their Subsidiaries.
“Secondary Market Transaction” has the meaning set forth in Section 5.5.
“Securities Act” has the meaning set forth in the Recitals.
“Subordinated Note” means the Subordinated Note (or, in the case that more than one Subordinated Note is outstanding, collectively, the “Subordinated Notes”) in the form attached as Exhibit A hereto, as amended, restated, supplemented or modified from time to time, and each Subordinated Note delivered in substitution, subdivision or exchange for such Subordinated Note.
“Subordinated Note Amount” has the meaning set forth in the Recitals.
“Subsidiary” means with respect to any Person, any other Person in which a majority of the outstanding voting shares of Equity Interest entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees or equivalent Person or body thereof, is directly or indirectly owned by such Person.
“Tier 2 Capital” has the meaning given to the term “Tier 2 capital” in 12 C.F.R. Part 217, as amended, modified and supplemented and in effect from time to time or any replacement thereof.
“Transaction Documents” means this Agreement and each Subordinated Note.
1.2Interpretations.  The foregoing definitions are equally applicable to both the singular and plural forms of the terms defined.  The words “hereof”, “herein” and “hereunder” and words of like import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement.  The word “including” when used in this Agreement without the phrase “without limitation,” shall mean “including, without limitation.” All references to time of day herein are references to Eastern Time unless otherwise specifically provided.  All references to this Agreement and the Subordinated Notes shall be deemed to be to such documents as amended, modified or restated from time to time.  With respect to any reference in this Agreement to any defined term, (i) if such defined term refers to a Person, then it shall also mean all heirs, legal representatives and permitted successors and assigns of such Person, and (ii) if such defined term refers to a document, instrument or agreement, then it shall also include any amendment, replacement, extension or other modification thereof.
1.3Exhibits Incorporated.  All Exhibits attached hereto are hereby incorporated into this Agreement.
2.SUBORDINATED DEBT.
2.1Certain Terms.  Subject to the terms and conditions herein contained, the Company agrees to issue and sell to the Purchasers, severally and not jointly, Subordinated Notes 

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in an aggregate principal amount equal to the aggregate of the Subordinated Note Amounts.  The Purchasers, severally and not jointly, each agree to purchase the Subordinated Notes from the Company in an amount equal to such Purchaser’s Subordinated Note Amount from the Company on the Closing Date in accordance with the terms of, and subject to the conditions set forth in, this Agreement and the Subordinated Notes.  The Subordinated Note Amounts shall be disbursed in accordance with Section 3.1.  
2.2The Closing.  The execution and delivery of the Transaction Documents and the closing of the sale and purchase of the Subordinated Notes (the “Closing”) shall occur remotely via electronic or other exchange of documents and signature pages, at 10:00 a.m. Eastern Time on the Closing Date, or at such other place or time or on such other date as the parties hereto may agree.  
2.3No Right of Offset.  Each Purchaser hereby expressly waives any right of offset it may have against the Company or any of its Subsidiaries.
2.4Use of Proceeds.  The Company shall use the net proceeds from the sale of Subordinated Notes for general corporate purposes, which may include, without limitation, the repayment of certain outstanding indebtedness; provided; however, that no part of the proceeds from the sale of any of the Subordinated  Notes  will  be  used  by  the  Company  or  any  of  its Subsidiaries  or  Affiliates,  directly  or indirectly, to pay Stifel, Nicolaus & Company, Incorporated or any affiliate of Stifel, Nicolaus & Company, Incorporated, including the Placement Agent.
3.DISBURSEMENT.
3.1Disbursement.  On the Closing Date, assuming all of the conditions set forth in Section 3.2 have been satisfied by the Company or waived by the Purchaser, each Purchaser shall disburse to the Company in immediately available funds the Subordinated Note Amount set forth on each Purchaser’s respective signature page to this Agreement in exchange for a Subordinated Note with a principal amount equal to such Subordinated Note Amount.
3.2Conditions Precedent to Disbursement.  
3.2.1Conditions to the Purchasers’ Obligation. The obligation of each Purchaser to consummate the purchase of the Subordinated Notes to be purchased by such Purchaser at Closing and to effect the Disbursement is subject to the satisfaction or delivery by or at the direction of the Company to such Purchaser (or, with respect to the opinion of counsel, the Placement Agent), on or prior to the Closing Date, of  each of the following (unless such Purchaser shall have waived such satisfaction or delivery):
3.2.1.1Transaction Documents.  Each of the this Agreement and each Purchaser’s Subordinated Notes has been duly authorized and executed by the Company.
3.2.1.2Authority Documents.
(a)A copy, certified by the Secretary or Assistant Secretary of the Company, of the Charter of the Company;

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(b)A certificate of existence of the Company issued by the Secretary of State of the State of Delaware;
(c)A copy, certified by the Secretary or Assistant Secretary of the Company, of the Bylaws of the Company;
(d)A copy, certified by the Secretary or Assistant Secretary of the Company, of the resolutions of the Board of Directors of the Company, or any duly authorized committee thereof, authorizing the execution, delivery and performance of the Transaction Documents;
(e)An incumbency certificate of the Secretary or Assistant Secretary of the Company certifying the names of the officer or officers of the Company authorized to sign the Transaction Documents and the other documents provided for in this Agreement; 
(f)The opinions of (i) Wachtell, Lipton, Rosen & Katz, counsel to the Company, dated as of the Closing Date, substantially in the form set forth at Exhibit B attached hereto addressed to the Purchasers and the Placement Agent and (ii) Angela Petrucci, as General Counsel of the Company, dated as of the Closing Date, substantially in the form set forth at Exhibit C attached hereto addressed to the Purchasers and the Placement Agent; and
3.2.2Conditions to the Company’s Obligation.
3.2.2.1With respect to a given Purchaser, the obligation of the Company to consummate the sale of the Subordinated Notes and to effect the Disbursement is subject to the satisfaction or delivery by or at the direction of such Purchaser, on or prior to the Closing Date, of each of the following (unless the Company shall have waived such satisfaction or delivery):
(a)The delivery to the Company of this Agreement duly authorized and executed by each Purchaser; and
(b)The disbursement to the Company in immediately available funds the Subordinated Note Amount set forth on each Purchaser’s respective signature page to this Agreement.
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4.REPRESENTATIONS AND WARRANTIES OF THE COMPANY.
The Company hereby represents and warrants to each Purchaser, as of the date hereof, as follows:
4.1Organization and Authority.
4.1.1Organization Matters of the Company and Its Subsidiaries.
4.1.1.1The Company is a duly organized corporation, is validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to conduct its business and activities as presently conducted, to own its properties, and to perform its obligations under the Transaction Documents.  The Company is duly qualified as a foreign corporation to transact business and is in good standing in each other jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except where the failure to so qualify or to be in good standing would not reasonably be expected to result in a Material Adverse Effect.  The Company is duly registered as a bank holding company under the Bank Holding Company Act of 1956, as amended.
4.1.1.2The entities set forth on Schedule A attached hereto are the only direct or indirect Subsidiaries of the Company as of the date hereof.  Each Subsidiary of the Company (other than the Bank) has been duly organized and is validly existing either as a corporation or limited liability company, or, in the case of the Bank, has been duly chartered and is validly existing as a Colorado state-chartered bank, in each case in good standing under the laws of the jurisdiction of its incorporation, has the corporate or similar power and authority to own, lease and operate its properties and to conduct its business and is duly qualified as a foreign corporation to transact business and is in good standing in each jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct of business, except where the failure to so qualify or to be in good standing would not reasonably be expected to result in a Material Adverse Effect.  All of the issued and outstanding shares of capital stock or other equity interests in each Subsidiary of the Company have been duly authorized and validly issued, are fully paid and non-assessable and are owned by the Company, directly or through Subsidiaries of the Company, free and clear of any security interest, mortgage, pledge, lien, encumbrance or claim.  None of the outstanding shares of capital stock of, or other Equity Interests in, any Subsidiary of the Company were issued in violation of the preemptive or similar rights of any security holder of such Subsidiary of the Company or any other entity.
4.1.1.3The Bank is a Colorado state-chartered bank.  The deposit accounts of the Bank are insured by the FDIC up to applicable limits.  The Bank has not received any notice or other information indicating that the Bank is not an “insured depository institution” as defined in 12 U.S.C. Section 1813, nor has any event occurred which could reasonably be expected to adversely affect the status of the Bank as an FDIC-insured institution.  
4.1.2Capital Stock and Related Matters.  The Charter of the Company authorizes the Company to issue 200,000,000 shares of Class A Common Stock, $0.01 par value, 200,000,000 shares of Class B Non-Voting Common Stock, $0.01 par value, and 50,000,000 shares of preferred stock, $0.01 par value.  As of August 2, 2021, there were 30,800,985 shares of 

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the Company’s Class A Common Stock issued and outstanding, no shares of the Company’s Class B Non-Voting Common Stock issued and outstanding, and no shares of the Company’s preferred stock issued and outstanding. All of the outstanding capital stock of the Company has been duly authorized and validly issued and is fully paid and non-assessable.  Except pursuant to the Company’s equity incentive plans duly adopted by the Company’s Board of Directors, there are, as of the date hereof, no outstanding options, rights, warrants or other agreements or instruments obligating the Company to issue, deliver or sell, or cause to be issued, delivered or sold, additional shares of the capital stock of the Company or obligating the Company to grant, extend or enter into any such agreement or commitment to any Person other than the Company. 
4.2No Impediment to Transactions.
4.2.1Transaction is Legal and Authorized.  The issuance of the Subordinated Notes, the borrowing of the aggregate of the Subordinated Note Amounts, the execution of the Transaction Documents and compliance by the Company with all of the provisions of the Transaction Documents are within the corporate and other powers of the Company.  
4.2.2Agreement.  This Agreement has been duly authorized, executed and delivered by the Company, and, assuming due authorization, execution and delivery by the other Purchasers, constitutes the legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting creditors’ rights generally or by general equitable principles.
4.2.3Subordinated Notes.  The Subordinated Notes issued on the Closing Date have been duly authorized by the Company and when duly executed by the Company and issued by the Company and delivered to and paid for by the Purchasers in accordance with the terms of this Agreement, will have been duly executed, issued and delivered, and will constitute legal, valid and binding obligations of the Company and enforceable against the Company in accordance with their terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting creditors’ rights generally or by general equitable principles. 
4.2.4Exemption from Registration.  Neither the Company, nor any of its Subsidiaries or Affiliates, nor any Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the Subordinated Notes.  Assuming the accuracy of the representations and warranties of each of the Purchasers set forth in this Agreement, the Subordinated Notes will be issued in a transaction exempt from the registration requirements of the Securities Act.  No “bad actor” disqualifying event described in Rule 506(d)(1)(i)-(viii) of the Securities Act (a “Disqualification Event”) is applicable to the Company or, to the Company’s knowledge, any Person described in Rule 506(d)(1) of Regulation D (each, a “Company Covered Person”).  To the Company’s knowledge, no Company Covered Person is subject to a Disqualification Event.  
4.2.5No Defaults or Restrictions.  Neither the execution and delivery of the Transaction Documents by the Company nor the compliance by the Company with their respective terms and conditions will (whether with or without the giving of notice or lapse of time or both) 

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(i) violate, conflict with or result in a breach of, or constitute a default under:  (1) the Charter or Bylaws of the Company; (2) any of the terms, obligations, covenants, conditions or provisions of any corporate restriction or of any material contract, agreement, indenture, mortgage, deed of trust, pledge, bank loan or credit agreement, or any other agreement or instrument to which the Company or Bank, as applicable, is now a party or by which it or any of its properties may be bound or affected; (3) any judgment, order, writ, injunction, decree or demand of any court, arbitrator, grand jury, or Governmental Agency applicable to the Company or the Bank; or (4) any statute, rule or regulation applicable to the Company, except, in the case of items (2), (3) or (4), for such violations and conflicts, breaches and defaults that would not, singularly or in the aggregate, reasonably be expected to result in a Material Adverse Effect on the Company and its Subsidiaries taken as a whole, or (ii) result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any property or asset of the Company.  Neither the Company nor the Bank is in default in the performance, observance or fulfillment of any of the terms, obligations, covenants, conditions or provisions contained in any indenture or other agreement creating, evidencing or securing Indebtedness of any kind or pursuant to which any such Indebtedness is issued, or any other agreement or instrument to which the Company or the Bank, as applicable, is a party or by which the Company or the Bank, as applicable, or any of its properties may be bound or affected, except, in each case, for defaults that would not, singularly or in the aggregate, reasonably be expected to result in a Material Adverse Effect.
4.2.6Governmental Consent.  No governmental orders, permissions, consents, approvals or authorizations are required to be obtained by the Company that have not been obtained, and no registrations or declarations are required to be filed by the Company that have not been filed in connection with, or, in contemplation of, the execution and delivery of, and performance under, the Transaction Documents, except for applicable requirements, if any, of the Securities Act, the Exchange Act or state securities laws or “blue sky” laws of the various states and any applicable federal or state banking laws and regulations.
4.3Possession of Licenses and Permits.  The Company and each of its Subsidiaries possess such permits, licenses, approvals, consents and other authorizations (collectively, “Governmental Licenses”) issued by the appropriate Governmental Agencies necessary to conduct the business now operated by them except where the failure to possess such Governmental Licenses would not, singularly or in the aggregate, reasonably be expected to have a Material Adverse Effect on the Company or such applicable Subsidiary. The Company and each Subsidiary of the Company is in compliance with the terms and conditions of all such Governmental Licenses, except where the failure to so comply would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect on the Company or such applicable Subsidiary of the Company. All of the Governmental Licenses are valid and in full force and effect, except where the invalidity of such Governmental Licenses or the failure of such Governmental Licenses to be in full force and effect would not reasonably be expected to have a Material Adverse Effect on the Company or such applicable Subsidiary of the Company. Neither the Company nor any Subsidiary of the Company has received any notice of proceedings relating to the revocation or modification of any such Governmental Licenses.

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4.4Financial Condition.
4.4.1Company Financial Statements.  The financial statements of the Company included in the Company’s Reports (including the related notes, where applicable), which have been provided to the Purchasers (i) have been prepared from, and are in accordance with, the books and records of the Company; (ii) fairly present in all material respects the results of operations, cash flows, changes in stockholders’ equity and financial position of the Company and its consolidated Subsidiaries, for the respective fiscal periods or as of the respective dates therein set forth (subject in the case of unaudited statements to recurring year-end audit adjustments normal in nature and amount), as applicable; (iii) complied as to form, as of their respective dates of filing in all material respects with applicable accounting and banking requirements as applicable, with respect thereto; and (iv) have been prepared in accordance with GAAP consistently applied during the periods involved, except, in each case, (x) as indicated in such statements or in the notes thereto, (y) for any statement therein or omission therefrom that was corrected, amended, or supplemented or otherwise disclosed or updated in a subsequent Company’s Report, and (z) to the extent that any unaudited interim financial statements do not contain the footnotes required by GAAP, and were or are subject to normal and recurring year-end adjustments, which were not or are not expected to be material in amount, either individually or in the aggregate.  The books and records of the Company have been, and are being, maintained in all material respects in accordance with GAAP and any other applicable legal and accounting requirements. The Company does not have any material liability of a nature that is required by GAAP to be set forth in a consolidated balance sheet of the Company (whether absolute, accrued, contingent or otherwise and whether due or to become due), except for those liabilities that are reflected or reserved against on the consolidated balance sheet (or notes thereto) of the Company contained in the Company’s Reports for the Company’s most recently completed quarterly or annual fiscal period, as applicable, and for liabilities incurred in the ordinary course of business consistent with past practice or in connection with this Agreement and the transactions contemplated hereby.
4.4.2Absence of Default.  Since the end of the Company’s last fiscal year ended December 31, 2020, no event has occurred which either of itself or with the lapse of time or the giving of notice or both, would give any creditor of the Company the right to accelerate the maturity of any material Indebtedness of the Company.  The Company is not in default under any Lease, agreement or instrument, or any law, rule, regulation, order, writ, injunction, decree, determination or award, except for such defaults that would not reasonably be expected to result, singularly or in the aggregate, in a Material Adverse Effect on the Company.
4.4.3Solvency.  After giving effect to the consummation of the transactions contemplated by this Agreement, the Company has capital sufficient to carry on its business and transactions and is solvent and able to pay its debts as they mature.  No transfer of property is being made and no Indebtedness is being incurred in connection with the transactions contemplated by this Agreement with the intent to hinder, delay or defraud either present or future creditors of the Company or any Subsidiary of the Company.
4.4.4Ownership of Property.  The Company and each of its Subsidiaries has good and marketable title as to all real property owned by it and good title to all assets and properties owned by the Company and such Subsidiary in the conduct of its businesses, whether 

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such assets and properties are real or personal, tangible or intangible, including assets and property reflected in the most recent balance sheet contained in the Company’s Reports or acquired subsequent thereto (except to the extent that such assets and properties have been disposed of in the ordinary course of business, since the date of such balance sheet), subject to no encumbrances, liens, mortgages, security interests or pledges, except (i) those items which secure liabilities for public or statutory deposits, obligations or any discount with, borrowing from or other obligations to the Federal Home Loan Bank, the FRB, inter-bank credit facilities, reverse repurchase agreements or any transaction by the Bank acting in a fiduciary capacity, (ii) statutory liens for amounts not yet due or delinquent or which are being contested in good faith and (iii) such as would not reasonably be expected to result, individually or in the aggregate, in a Material Adverse Effect.  The Company and each of its Subsidiaries, as lessee, has the right under valid and existing Leases of real and personal properties that are material to the Company or such Subsidiary, as applicable, in the conduct of its business to occupy or use all such properties as presently occupied and used by it.  
4.5No Material Adverse Effect.  Since the end of the Company’s last fiscal year ended December 31, 2020, there has been no development or event that has had or would reasonably be expected to have, singularly or in the aggregate, a Material Adverse Effect.
4.6Legal Matters.
4.6.1Compliance with Law.  The Company and each of its Subsidiaries (i) has complied with and (ii) to the Company’s knowledge, is not under investigation with respect to, and, to the Company’s knowledge, has not been threatened to be charged with or given any notice of any material violation of, any applicable statutes, rules, regulations, orders and restrictions of any domestic or foreign government, or any instrumentality or agency thereof, having jurisdiction over the conduct of its business or the ownership of its properties, except where any such failure to comply or violation would not reasonably be expected to result, singularly or in the aggregate, in a Material Adverse Effect.  The Company and each of its Subsidiaries is in compliance with, and at all times prior to the date hereof has been in compliance with its own privacy policies and written commitments to customers, consumers and employees, concerning data protection, the privacy and security of personal data, and the nonpublic personal information of its customers, consumers and employees, in each case except where any such failure to comply would not reasonably be expected to result, individually or in the aggregate, in a Material Adverse Effect.  At no time during the two years prior to the date hereof has the Company or any of its Subsidiaries received any written notice asserting any violations of any of the foregoing, except for violations that (A) have been resolved or (B) have not had, and are not reasonably expect to have, a Material Adverse Effect.
4.6.2Regulatory Enforcement Actions.  The Company, the Bank and its other Subsidiaries are in compliance in all material respects with all laws administered by and regulations of any Governmental Agency applicable to it or to them, except where the failure to comply would not reasonably be expected to have, singularly or in the aggregate, a Material Adverse Effect.  None of the Company, the Bank, the Company’s or the Bank’s Subsidiaries nor any of their officers or directors is now operating under any restrictions, agreements, memoranda, commitment letter, supervisory letter or similar regulatory correspondence, or other commitments (other than restrictions of general application) imposed by any Governmental Agency, nor are, to 

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the Company’s knowledge any such restrictions threatened, or any agreements, memoranda or commitments being sought by any Governmental Agency.  To the Company’s knowledge, no legal or regulatory violations previously identified by, or penalties or other remedial action previously imposed by, any Governmental Agency remains unresolved, except such violations, penalties or other remedial actions as would not reasonably be expected to result in a Material Adverse Effect.
4.6.3Pending Litigation.  There are no actions, suits, proceedings or written agreements pending, or, to the Company’s knowledge, threatened or proposed, against the Company or any of its Subsidiaries at law or in equity  before or by any Governmental Agency, that would reasonably be expected to have, singularly or in the aggregate, a Material Adverse Effect.  Neither the Company nor any of its Subsidiaries is a party to or named as subject to the provisions of any order, writ, injunction, or decree of, or any written agreement with, any court, commission, board or agency, domestic or foreign, that would reasonably be expected to result, singularly or in the aggregate, in a Material Adverse Effect.
4.6.4Environmental.  Except as would not reasonably be expected to result, singularly or in the aggregate, in a Material Adverse Effect, no Property is or, to the Company’s knowledge, has been a site for the use, generation, manufacture, storage, treatment, release, threatened release, discharge, disposal, transportation or presence of any Hazardous Materials and neither the Company nor any of its Subsidiaries has engaged in such activities. There are no claims or actions pending or, to the Company’s knowledge, threatened in writing against the Company or any of its Subsidiaries by any Governmental Agency or by any other Person relating to any Hazardous Materials or pursuant to any Hazardous Materials Law, except for such claims or actions that would not reasonably be expected to have, singularly or in the aggregate, a Material Adverse Effect.
4.6.5Brokerage Commissions.  Except for commissions paid to the Placement Agent, neither the Company nor any Affiliate of the Company is obligated to pay any brokerage commission, Placement Agent or finder’s fee to any Person in connection with the transactions contemplated by this Agreement.
4.6.6Investment Company Act.  Neither the Company nor any of its Subsidiaries is an “investment company” or a company “controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940, as amended.
4.7No Misstatement.  None of the representations or warranties made in the Transaction Documents or in any certificate delivered to the Purchasers by the Company prior to the Closing Date required pursuant to the terms of or in connection with this Agreement contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements contained therein not misleading in light of the circumstances in which they were made.
4.8Internal Accounting Controls.  The Company and the Bank have established and maintain a system of internal control over financial reporting that pertains to the maintenance of records that accurately and fairly reflect the transactions and dispositions of the Company’s assets (on a consolidated basis), provides reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that the Company’s and the Bank’s receipts and expenditures are being made only in accordance with authorizations 

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of the Company’s management and Board of Directors, and provides reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets of the Company on a consolidated basis that could reasonably be expected to have a Material Adverse Effect.  Such internal control over financial reporting is sufficient to provide reasonable assurance regarding the reliability of the Company’s financial reporting and the preparation of the Company’s financial statements for external purposes in accordance with GAAP.  Since the conclusion of the Company’s last completed fiscal year, there has not been and there currently is not (i) any significant deficiency or material weakness in the design or operation of its internal control over financial reporting which is reasonably likely to adversely affect its ability to record, process, summarize and report financial information, or (ii) any fraud, whether or not material, that involves management or other employees who have a role in the Company’s or the Bank’s internal control over financial reporting.  The Company (A) has implemented and maintains disclosure controls and procedures reasonably designed and maintained to ensure that material information relating to the Company is made known to the Chief Executive Officer and the Chief Financial Officer of the Company by others within the Company and (B) has disclosed, based on its most recent evaluation prior to the date hereof, to the Company’s outside auditors and the audit committee of the Company’s Board of Directors any significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to materially and adversely affect the Company’s internal controls over financial reporting.  Such disclosure controls and procedures are effective for the purposes for which they were established.
4.9Tax Matters.  The Company, the Bank and each other Subsidiary of the Company have (i) filed all material foreign, U.S. federal, state and local tax returns, information returns and similar reports that are required to be filed, and all such tax returns are true, correct and complete in all material respects, and (ii) paid all material taxes required to be paid by it and any other material assessment, fine or penalty levied against it other than taxes (x) currently payable without penalty or interest, or (y) being contested in good faith by appropriate proceedings.
4.10Representations and Warranties Generally.  The representations and warranties of the Company set forth in this Agreement that do not contain a “Material Adverse Effect” qualification or other express materiality or similar qualification are true and correct in all material respects as of the Closing Date; provided that any representations and warranties made as of a specified date need only be true and correct as of such date. The representations and warranties of the Company set forth in this Agreement that contain a “Material Adverse Effect” qualification or any other express materiality or similar qualification are true and correct as of the Closing Date; provided that any representations and warranties made as of a specified date need only be true and correct as of such date.  
5.GENERAL COVENANTS, CONDITIONS AND AGREEMENTS.
The Company hereby further covenants and agrees with the Purchaser, from the date hereof until the Closing Date, as follows:
5.1Compliance with Transaction Documents.  The Company shall comply with, observe and timely perform each and every one of its covenants, agreements and obligations under the Transaction Documents.

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5.2Affiliate Transactions.  The Company shall not itself, nor shall it cause, permit or allow any of its Subsidiaries to enter into any transaction, including, the purchase, sale or exchange of property or the rendering of any service, with any Affiliate of the Company except (i) transactions solely between or among (A) the Company and any of its Subsidiaries or (B) Subsidiaries of the Company or (ii) upon terms consistent with applicable laws and regulations and reasonably found by the appropriate board(s) of directors of the Company or any of its Subsidiaries involved in such transaction to be fair and reasonable and no less favorable to the Company or such Subsidiary than would be obtained in a comparable arm’s length transaction with a Person not an Affiliate. 
5.3Compliance with Laws.
5.3.1Generally.  The Company shall comply and cause the Bank and each of its other Subsidiaries to comply in all material respects with all applicable statutes, rules, regulations, orders and restrictions in respect of the conduct of its business and the ownership of its properties, except, in each case, where such noncompliance would not reasonably be expected to have, singularly or in the aggregate, a Material Adverse Effect.
5.3.2Regulated Activities.  The Company shall not itself, nor shall it cause, permit or allow the Bank or any other of its Subsidiaries to (i) engage in any business or activity not permitted by all applicable laws and regulations, except where such business or activity would not reasonably be expected to have a Material Adverse Effect or (ii) make any loan or advance secured by the capital stock of another bank or depository institution, or acquire the capital stock, assets or obligations of or any interest in another bank or depository institution, in each case other than in accordance with applicable laws and regulations and, to the extent applicable, safe and sound banking practices.
5.3.3Taxes.  The Company shall and shall cause the Bank and any other of its Subsidiaries to timely pay and discharge all taxes, assessments and other governmental charges imposed upon the Company, the Bank or any of its Subsidiaries or upon the income, profits, or property of the Company or any of its Subsidiaries and all claims for labor, material or supplies which, if unpaid, might by law become a lien or charge upon the property of the Company, the Bank or any other of its Subsidiaries, except, in each case, where failure to do so would not reasonably be expected to have, singularly or in the aggregate, a Material Adverse Effect.  Notwithstanding the foregoing, none of the Company, the Bank or any other of its Subsidiaries shall be required to pay any such tax, assessment, charge or claim, so long as the validity thereof shall be contested in good faith by appropriate proceedings, and appropriate reserves therefor shall be maintained on the books of the Company, the Bank or any of its Subsidiary, as the case may be.
5.3.4Corporate Existence.  The Company shall do or cause to be done all things reasonably necessary to maintain, preserve and renew (i) its existence and (ii) the existence of the Bank and its other Subsidiaries and (iii) its and their rights and franchises, except, in the case of clauses (ii) and (iii) if the Company determines that such preservation is no longer desirable in the conduct of the business of the Company and its Subsidiaries, taken as a whole; provided, however, that the Company may consummate a merger in which (a) the Company is the surviving 

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entity or (b) if the Company is not the surviving entity, the surviving entity assumes, by operation of law or otherwise, all of the obligations of the Company under the Subordinated Notes.
5.4Absence of Control.  It is the intent of the parties to this Agreement that in no event shall any Purchaser, by reason of any of the Transaction Documents, be deemed to control, directly or indirectly, the Company, and no Purchasers shall exercise, or be deemed to exercise, directly or indirectly, a controlling influence over the management or policies of the Company.
6.REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PURCHASER.
Each Purchaser hereby represents and warrants to the Company, and covenants with the Company as follows:
6.1Legal Power and Authority.  Such Purchaser has all necessary power and authority to execute, deliver and perform such Purchaser’s obligations under this Agreement and to consummate the transactions contemplated hereby.  Such Purchaser is an entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization.
6.2Authorization and Execution.  The execution, delivery and performance of this Agreement has been duly authorized by all necessary action on the part of such Purchaser. This Agreement has been duly executed and delivered by such Purchaser. Assuming due authorization, execution and delivery of this Agreement by the Company, this Agreement is a legal, valid and binding obligation of such Purchaser, enforceable against such Purchaser in accordance with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting creditors’ rights generally or by general equitable principles.
6.3No Conflicts.  Neither the execution, delivery or performance of the Transaction Documents nor the consummation of any of the transactions contemplated thereby will conflict with, violate, constitute a breach of or a default (whether with or without the giving of notice or lapse of time or both) under (i) such Purchaser’s organizational documents, (ii) any agreement to which such Purchaser is party, (iii) any law applicable to such Purchaser or (iv) any order, writ, judgment, injunction, decree, determination or award binding upon or affecting such Purchaser.
6.4Purchase for Investment.  Such Purchaser is purchasing the Subordinated Notes for its own account and not with a view to distribution and with no present intention of reselling, distributing or otherwise disposing of the same.  Such Purchaser has no present or contemplated agreement, undertaking, arrangement, obligation, Indebtedness or commitment providing for, or which is likely to compel, a disposition of the Subordinated Notes in any manner.
6.5Institutional Accredited Investor.  Such Purchaser is and will be on the Closing Date either (i) an “accredited investor” as such term is defined in Rule 501(a) of Regulation D and as contemplated by subsections (1)-(3) and (7) of Rule 501(a) of Regulation D, and has no less than $5,000,000 in total assets, or (ii) a QIB. 
6.6Financial and Business Sophistication.  Such Purchaser has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of 

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the prospective investment in the Subordinated Notes.  Such Purchaser has relied solely upon its own knowledge of, and/or the advice of its own legal, financial, tax or other advisors with regard to, the legal, financial, tax and other considerations involved in deciding to purchase the Subordinated Notes.
6.7Ability to Bear Economic Risk of Investment.  Such Purchaser recognizes that an investment in the Subordinated Notes is a speculative investment that involves substantial risk, including risks related to the Company’s business, operating results, financial condition and cash flows, which risks it has carefully considered in connection with making an investment in the Subordinated Notes.  It has the ability to bear the economic risk of the prospective investment in the Subordinated Notes, including the ability to hold the Subordinated Notes indefinitely, and further including the ability to bear a complete loss of all of its investment in the Company. 
6.8Information.  Such Purchaser acknowledges that  (i) it is not being provided with the disclosures that would be required if the offer and sale of the Subordinated Notes were registered under the Securities Act, nor is it being provided with any offering circular, private placement memorandum or prospectus prepared in connection with the offer and sale of the Subordinated Notes; (ii) it has conducted its own examination of the Company and the terms of the Subordinated Notes to the extent it deems necessary to make its decision to invest in the Subordinated Notes; (iii) it has availed itself of publicly available financial and other information concerning the Company to the extent it deems necessary to make its decision to purchase the Subordinated Notes (including meeting with representatives of the Company); and (iv) it has not received nor relied on any form of general solicitation or general advertising (within the meaning of Regulation D) from the Company in connection with the offer and sale of the Subordinated Notes.  It has reviewed the information set forth in the Company’s Reports, including the risk factors set forth therein, the exhibits hereto in connection with the transactions contemplated by this Agreement. 
6.9Access to Information.  Such Purchaser acknowledges that it and its advisors have been furnished with all materials relating to the business, finances and operations of the Company that have been requested by it or its advisors and have been given the opportunity to ask questions of, and to receive answers from, persons acting on behalf of the Company concerning terms and conditions of the transactions contemplated by this Agreement in order to make an informed and voluntary decision to enter into this Agreement.
6.10Investment Decision.  Such Purchaser has made its own investment decision based upon its own judgment, due diligence and advice from such advisors as it has deemed necessary and not upon any view expressed by any other Person, including the Company of the Placement Agent.  Neither such inquiries nor any other due diligence investigations conducted by such Purchaser or its advisors or representatives, if any, shall modify, amend or affect its right to rely on the Company’s representations and warranties contained herein.  Such Purchaser is not relying upon, and has not relied upon, any advice, statement, representation or warranty made by any Person by or on behalf of the Company, including, without limitation, the Placement Agent, except for the express statements, representations and warranties of the Company made or contained in this Agreement.  Furthermore, such Purchaser acknowledges that (i) the Placement Agent has not performed any due diligence review on behalf of it and (ii) nothing in this Agreement or any other 

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materials presented by or on behalf of the Company to it in connection with the purchase of the Subordinated Notes constitutes legal, tax or investment advice.
6.11Private Placement; No Registration; Restricted Legends.  The Purchaser understands and acknowledges that the Subordinated Notes are “restricted securities” under the Securities Act and are being sold by the Company without registration under the Securities Act in reliance on the exemption from federal and state registration set forth in, respectively, Rule 506(b) of Regulation D promulgated under Section 4(a)(2) of the Securities Act and Section 18 of the Securities Act, or any applicable state securities laws, and accordingly, may be resold, pledged or otherwise transferred only in compliance with the registration requirements of federal and state securities laws or if exemptions from the Securities Act and applicable state securities laws are available to it.  Further, while any Subordinated Notes remain in the restricted holding period pursuant to Rule 144 under the Securities Act, the Purchaser understands and acknowledges that any resale of such Subordinated Notes will be limited to a QIB under Rule 144A under the Securities Act. The Purchaser is not subscribing for the Subordinated Notes as a result of or subsequent to any general solicitation or general advertising, in each case within the meaning of Rule 502(c) of Regulation D, any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast over television or radio, or presented at any seminar or meeting. The Purchaser has not been solicited with respect to investment in the Subordinated Notes except in the jurisdiction of its address appearing on the Purchaser’s signature page to this Agreement. The Purchaser further acknowledges and agrees that all certificates or other instruments representing the Subordinated Notes will bear the restrictive legend set forth in the form of Subordinated Note.  The Purchaser further acknowledges its primary responsibilities under the Securities Act and, accordingly, will not sell or otherwise transfer the Subordinated Notes or any interest therein without complying with the requirements of the Securities Act and the rules and regulations promulgated thereunder and the requirements set forth in this Agreement. Neither the Placement Agent nor the Company have or has made or are or is making any representation, warranty or covenant, express or implied, as to the availability of any exemption from registration under the Securities Act or any applicable state securities laws for the resale, pledge or other transfer of the Subordinated Notes, or that the Subordinated Notes purchased by the Purchaser will ever be able to be lawfully resold, pledged or otherwise transferred. 
6.12Placement Agent.  Such Purchaser will purchase the Subordinated Notes  directly from the Company and not from the Placement Agent and understands that neither the Placement Agent nor any other broker or dealer has any obligation to make a market in the Subordinated Notes.
6.13Not Debt of the Bank; Not Savings Accounts, Etc.  Such Purchaser acknowledges that the Company is a bank holding company and the Company’s rights and the rights of the Company’s creditors, including, the Noteholders (as defined in the Subordinated Notes), to participate in the assets of any Subsidiary during its liquidation or reorganization are structurally subordinate to the prior claims of the Subsidiary’s creditors. Such Purchaser acknowledges and agrees that the Subordinated Notes are not savings accounts or deposits of the Bank and are not insured or guaranteed by the FDIC or any Governmental Agency, and that no Governmental Agency has passed upon or will pass upon the offer or sale of the Subordinated Notes or has made or will make any finding or determination as to the fairness of this investment.

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6.14Accuracy of Representations.  Such Purchaser understands that each of the Placement Agent and the Company are relying and will rely upon the truth and accuracy of the foregoing representations, acknowledgements and agreements in connection with the transactions contemplated by this Agreement, and agrees that if any of the representations or acknowledgements made by the Purchaser are no longer accurate as of the Closing Date, or if any of the agreements made by it are breached on or prior to the Closing Date, it shall promptly notify the Placement Agent and the Company.
6.15Representations and Warranties Generally; Reliance by the Company.  The representations and warranties of the Purchaser set forth in this Agreement are true and correct as of the date hereof and will be true and correct as of the Closing Date and as otherwise specifically provided herein.  Any certificate signed by a duly authorized representative of such Purchaser and delivered to the Company or to counsel for the Company shall be deemed to be a representation and warranty by the Purchaser to the Company as to the matters set forth therein.  The Purchaser acknowledges and agrees that the Company and, for purposes of the legal opinion to be delivered pursuant to Section 3.2.1.2, counsel for the Company, may rely upon the accuracy of the representations and warranties of the Purchaser, and compliance by the Purchaser with its agreements contained in this Section 6, and the Purchaser hereby consents to such reliance.
7.MISCELLANEOUS.
7.1Prohibition on Assignment by the Company.  Except as described in Section 8(b) (Merger or Sale of Assets) of the Subordinated Notes, the Company may not assign, transfer or delegate any of its rights or obligations under this Agreement or the Subordinated Notes without the prior written consent of all the Noteholders (as defined in the Subordinated Note).  
7.2Time of the Essence.  Time is of the essence for this Agreement.
7.3Waiver or Amendment.  No waiver or amendment of any term, provision, condition, covenant or agreement herein shall be effective unless in writing and signed by the Company and Purchasers constituting Noteholders (as defined in the Notes) holding, at such time, an aggregate principal amount of Subordinated Notes equal to or greater than 50.1% of the aggregate principal amount of all Subordinated Notes outstanding at such time. In addition, the Company may amend or supplement any Transaction Document to cure any ambiguity, defect or inconsistency or to provide for uncertificated Subordinated Notes in addition to or in place of certificated Subordinated Notes or to make any change that does not materially adversely affect the rights of any Purchaser. Failure on the part of the Purchasers to complain of any acts or failure to act or to declare an Event of Default, irrespective of how long such failure continues, shall not constitute a waiver by the Purchasers of their rights hereunder or impair any rights, powers or remedies on account of any breach or default by the Company.
7.4Required Waiver Disclosure.  Appendix A hereto sets forth certain disclosures relating to the Placement Agent that the Company is providing to the Purchasers. Notwithstanding anything to the contrary herein or otherwise, the Company makes no representation or warranty as to the completeness or accuracy of the information set forth on Appendix A.

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7.5Severability.  Any provision of this Agreement which is unenforceable or invalid or contrary to law, or the inclusion of which would adversely affect the validity, legality or enforcement of this Agreement, shall be of no effect and, in such case, all the remaining terms and provisions of this Agreement shall subsist and be fully effective according to the tenor of this Agreement the same as though any such invalid portion had never been included herein.  Notwithstanding any of the foregoing to the contrary, if any provisions of this Agreement or the application thereof are held invalid or unenforceable only as to particular Persons or situations, the remainder of this Agreement, and the application of such provision to Persons or situations other than those to which it shall have been held invalid or unenforceable, shall not be affected thereby, but shall continue valid and enforceable to the fullest extent permitted by law.
7.6Notices.  Any notice which any party hereto may be required or may desire to give hereunder shall be deemed to have been given if in writing and if delivered personally, or if mailed, postage prepaid, by United States registered or certified mail, return receipt requested, or if delivered by a responsible overnight commercial courier promising next business day delivery, or if by email with confirmation of transmission, addressed:
	if to the Company:
	National Bank Holdings Corporation
7800 East Orchard Road, Suite 300 
Greenwood Village, Colorado 80111
Tel: (303) 529-3349
Attention: Angela Petrucci, General Counsel
​

	with a copy to:
	legal@nbhbank.com
​
and
​
Wachtell, Lipton, Rosen & Katz
51 West 52nd Street
New York, New York 10019
Tel:  (212) 403-1000
Attention:  Mark F. Veblen, Esq.
​

	if to the Purchaser:
	To the address indicated on the Purchaser’s signature page to this Agreement.

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or to such other address or addresses as the party to be given notice may have furnished in writing to the party seeking or desiring to give notice, as a place for the giving of notice; provided that no change in address shall be effective until five (5) Business Days after being given to the other party in the manner provided for above.  Any notice given in accordance with the foregoing shall be deemed given when delivered personally or, if mailed, three (3) Business Days after it shall have been deposited in the United States mails as aforesaid or, if sent by overnight courier, the Business Day following the date of delivery to such courier (provided next Business Day delivery was requested).

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7.7Successors and Assigns.  This Agreement shall inure to the benefit of the parties and their respective heirs, legal representatives, successors and assigns; except that (i) unless each Purchaser consents in writing, no assignment made by the Company in violation of this Agreement shall be effective or confer any rights under this Agreement on any purported assignee of the Company, and (ii) unless such assignment complies with the Assignment Form attached to the Subordinated Notes, no assignment made by any Purchaser shall be effective or confer any rights under this Agreement on any purported assignee of any Purchaser.  The term “successors and assigns” will not include a purchaser of any of the Subordinated Notes from any Purchaser merely because of such purchase but shall include a purchaser of any of the Subordinated Notes pursuant to an assignment complying with the Assignment Form attached to the Subordinated Notes.
7.8No Joint Venture.  Nothing contained herein or in any document executed pursuant hereto and no action or inaction whatsoever on the part of the Purchaser, shall be deemed to make a Purchaser a partner or joint venturer with the Company.
7.9Public Announcement.  The Company and each Purchaser agree that no public release, statement, announcement, or other disclosure detailing the purchase of Subordinated Notes pursuant to this Agreement that refers to the other party or parties by name shall be issued by any party without the prior written consent of the other party so named (which consent shall not be unreasonably withheld, conditioned or delayed), except as otherwise required by law or the applicable rules or regulations of any securities exchange or securities market, in which case the Company shall use commercially reasonable efforts, to the extent permitted by applicable law, to allow the Purchasers reasonable time to comment on such release or announcement in advance of such issuance.
7.10Entire Agreement.  The Transaction Documents, along with any exhibits hereto and thereto, constitute the entire agreement between the parties hereto with respect to the subject matter hereof and may not be modified or amended in any manner other than by supplemental written agreement executed by the parties hereto.  No party, in entering into this Agreement, has relied upon any representation, warranty, covenant, condition or other term that is not set forth in the Transaction Documents.
7.11Choice of Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York without giving effect to its laws or principles of conflict of laws (other than Section 5-1401 of the New York General Obligations Law).  
7.12No Third Party Beneficiary.  This Agreement is made for the sole benefit of the Company and the Purchasers, and no other Person shall be deemed to have any privity of contract hereunder nor any right to rely hereon to any extent or for any purpose whatsoever, nor shall any other Person have any right of action of any kind hereon or be deemed to be a third party beneficiary hereunder; provided, that the Placement Agent may rely on the representations and warranties contained herein to the same extent as if it were a party to this Agreement.
7.13Legal Tender of United States.  All payments hereunder shall be made in coin or currency which at the time of payment is legal tender in the United States of America for public and private debts.

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7.14Captions; Counterparts.  Captions contained in this Agreement in no way define, limit or extend the scope or intent of their respective provisions.  This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument.  In the event that any signature is delivered by facsimile transmission, or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page were an original thereof. 
7.15Knowledge; Discretion.  All references herein to a Purchaser’s or the Company’s knowledge shall be deemed to mean the knowledge of such party based on the actual knowledge of such party’s Chief Executive Officer and Chief Financial Officer or such other persons holding equivalent offices.  Unless specified to the contrary herein, all references herein to an exercise of discretion or judgment by a Purchaser, to the making of a determination or designation by a Purchaser, to the application of a Purchaser’s discretion or opinion, to the granting or withholding of a Purchaser’s consent or approval, to the consideration of whether a matter or thing is satisfactory or acceptable to a Purchaser, or otherwise involving the decision making of the Purchaser, shall be deemed to mean that the Purchaser shall decide using the reasonable discretion or judgment of a prudent lender.
7.16Waiver of Right to Jury Trial.  TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, THE PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT THAT THEY MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION ARISING IN ANY WAY IN CONNECTION WITH ANY OF THE TRANSACTION DOCUMENTS, OR ANY OTHER STATEMENTS OR ACTIONS OF THE COMPANY OR THE PURCHASERS.  THE PARTIES HERETO ACKNOWLEDGE THAT THEY HAVE BEEN REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL SELECTED OF THEIR OWN FREE WILL.  THE PARTIES HERETO FURTHER ACKNOWLEDGE THAT (I) THEY HAVE READ AND UNDERSTAND THE MEANING AND RAMIFICATIONS OF THIS WAIVER, (II) THIS WAIVER HAS BEEN REVIEWED BY THE PARTIES HERETO AND THEIR COUNSEL AND IS A MATERIAL INDUCEMENT FOR ENTRY INTO THIS AGREEMENT AND (III) THIS WAIVER SHALL BE EFFECTIVE AS TO EACH OF SUCH TRANSACTION DOCUMENTS AS IF FULLY INCORPORATED THEREIN.
7.17Expenses.  Except as otherwise provided in this Agreement, each of the parties will bear and pay all other costs and expenses incurred by it or on its behalf in connection with the transactions contemplated pursuant to this Agreement; provided that at the Closing the Company shall bear, and upon request by Purchasers, reimburse each Purchaser for all reasonable out-of-pocket fees and expenses of attorneys incurred by such Purchaser in connection with the negotiation and preparation of this Agreement and undertaking of the transactions contemplated pursuant to this Agreement for a flat fee of $5,000.00. 
7.18Survival.  Each of the representations and warranties set forth in this Agreement shall survive the consummation of the transactions contemplated hereby for a period of one year after the date hereof (or, in the case of the representations and warranties of the Company, the date 

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that there are no Subordinated Notes outstanding, if earlier). Except as otherwise provided herein, all covenants and agreements contained herein shall survive until, by their respective terms, they are no longer operative.
​
[Signature Pages Follow]
​
​

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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized representative as of the date first written above.
	​
	COMPANY:
NATIONAL BANK HOLDINGS CORPORATION
​
​
By:​ ​ 
Name:
Title: 

	​
	 ​

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​

[Company Signature Page to Subordinated Note Purchase Agreement]
​

​

IN WITNESS WHEREOF, the Purchaser has caused this Agreement to be executed by its duly authorized representative as of the date first written above.
	​
	 ​

	​
	PURCHASER:
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By:​ ​

Name:

 

Title:

 

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	Address of Purchaser:
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[●]
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	Principal Amount of Purchased Subordinated Note: 
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$[●]
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​Exhibit 10.4

 

PATENT PURCHASE AGREEMENT

 

This agreement (the "Agreement") is entered into on November
30, 2018 (the "Effective Date”).

 

By and between:

 

TRUSTATE INTERNATIONAL, INC.,
a Barbados Corporation with an address of Chamberlain Place, Broad Street Bridgetown, Barbados; email:
tmichael@reardoncapital.com (the "Seller”)

 

and

 

TRUENORTH QUANTUM INC., an
Alberta Canada Corporation with an address of #307C, 2 Campbell Drive, Uxbridge, Ontario, Canada; email:
gary@truenorthquantum.com (the "Purchaser”)

 

(each a "Party" and collectively the "Parties”)

 

The Parties hereby agree as follows:

 

	1	BACKGROUND

 

	 	1.1.	Seller is the sole and exclusive owner of certain Patents (defined below).
	 	 	 
	 	1.2.	Seller wishes to sell to Purchaser all right, title and interest in the Patents and any and all rights associated therewith. Purchaser
wishes to purchase from Seller all right, title and interest in the Patents and any and all rights associated therewith.

 

	2.	DEFINITIONS

 

	 	2.1.	"Affiliate" means, with respect to any Person, any Entity in any country that controls, is controlled by or is under common
control with such Person. The term "control" means possession directly or indirectly of the power to direct or cause the direction
of the management and policies of an Entity, whether through the ownership of voting securities, by trust, management agreement, contract
or otherwise; provided, however, that beneficial ownership of more than fifty percent (50%) of the voting equity interests of an entity
shall be deemed to be control.

 

	 	2.2.	"Assigned Patent Rights" means all right, title and interest in the Patents and (a) all causes of action (whether currently
pending, filed, or otherwise) and other enforcement rights under the Patents including, without limitation, all rights to sue, to countersue
and to pursue damages, injunctive relief, and any other remedies of any kind for past, current and future infringement; and (b) all rights
to recover and collect settlement arrangements, license payments (including lump sum payments), royalties and other payments due now
or hereafter due or payable with respect thereto, under or on account of any of the Patents or any of the foregoing; and (c) any and
all privileges, including the benefit of all attorney-client privilege and attorney work product privilege.

 

	 	2.3.	"Entity" means any corporation, partnership, limited liability company, association, joint stock company, trust, joint venture,
unincorporated organization, governmental entity (or any department, agency, or political subdivision thereof) or any other legal entity.

 

	 	2.4.	"Executed Assignment" means an executed original of the Patent Assignment Agreement in Exhibit 2.4.

 

 

 

    	 	1	 

     

    

 

	 	2.5.	"Patents" means each and all of the patents and patent applications listed on Exhibit A hereto, all reissues, reexaminations,
extensions, continuations, continuations in part, continuing prosecution applications, provisionals and divisions of such patents, and
any patents or patent applications which correspond to or claim priority to any of the foregoing, and all foreign counterparts of the
foregoing, whether or not listed on Exhibit A.

 

	 	2.6.	"Person" means any individual or Entity.

 

	3.	DOCUMENT DELIVERY, EXCLUSIVITY AND CONSIDERATION

 

	 	3.1.	The Seller hereby confirms that it has conducted a thorough and diligent search for, and has delivered all documents relating to the
Patents (“Documents’) to the Purchaser and that there are no other Documents in the custody or control of Seller, its agents,
counsel or related parties. Documents shall be the originals of the patent prosecution files and all other documents, communications
and files (electronic or otherwise) relating to the Assigned Patent Rights in possession or control of Seller and its agents, counsel
and related parties that pertain to the ownership, prosecution, maintenance and enforcement of the Patents.", including, without
limitation:

 

	 	1.	File histories including:

 

	 	a.	Prosecution file history for the Patents, including:

 

		i.	File histories
                                            of any Patent including current owner of record, jurisdiction where the application/registration
                                            is located; and any application number;

 

		ii.	File histories
                                            of any parent, child or other related patents/applications (i.e. those that claim priority
                                            to any Patent or that any Patent either claims priority to and/or incorporates by reference)
                                            - regardless of whether they are listed in this Agreement and regardless of whether the related
                                            patents are abandoned or alive;

 

		iii.	Any relevant
                                            communications with, by and to prosecution counsel or agent with respect to the Patents;
                                            and

 

		iv.	File-stamped
                                            copies of all assignment records for all Patents (including copies of all supporting documentation).

 

		b.	Any prior
                                            art references that have been disclosed to the patent offices in the course of patent prosecution
                                            that would constitute prior art, that would render any of the Patents invalid or unenforceable,
                                            or would have a material adverse effect on any pending application for any Patent.

 

	 	c.	Pre-filing documents such as:

 

		i.	Invention disclosure records;

 

		ii.	Inventor notebooks;

 

		iii.	Memos,
                                            notes, letters, emails etc. requesting that a patent application be prepared;

 

		iv.	Memos,
                                            notes, letters, emails etc. discussing the decision of whether to file a patent application;

 

		v.	Memos,
                                            notes, letters, emails etc. discussing or describing any products that the proposed invention
                                            relates to ;

 

 

 

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		vi.	Documents,
                                            including without limitation any memos, notes, letters, emails, presentations, etc. related
                                            to or arising from any efforts to create products based on the proposed inventions, relating
                                            to the design, development, marketing, sale, offers for sale, public disclosure, or ownership
                                            of the products, the proposed inventions and/or patents, including any agreements with third
                                            parties (e.g. joint development (or similar) agreements or non-disclosure agreements); and

 

		vii.	All documents
                                            related to the conception, reduction to practice, or development of the invention.

 

	 	d.	Post-issuance documents such as:

 

		i.	Ribbon copies of the Patents;

 

		ii.	Certificates
                                            of correction and related documents (notes, memos etc related to requests for correction);
                                            and

 

		iii.	Re-examinations; reissues; post
                                            grant review/challenges.

 

 

	 	2.	Any agreements granting any rights under the Patents (including without limitation any licenses, releases, covenants not to sue or any
other grant or right) related to or arising from the Patents and applications.

 

	 	3.	Any documents discussing enforcement, threatened enforcement, investigation of infringement, licensing (including all offers to license),
liens or charges, valuation, granting any rights under any of the claims of the acquired patents (including releases, covenants not to
sue or any other grant or right) or other monetization related to or arising from the Patents (regardless of whether they are listed
in this Agreement) including:

 

		a.	Documents that relate in any way to an evaluation of the Patents including without
limitation documents that relate to strengths, weaknesses etc. of the enforceability and/or validity of the patents, infringement and/or
non-infringement of any specific entity or by industries in general;

 

		b.	Documents that relate to the enforceability of the Patents;

 

		c.	Documents that relate to the validity of the Patents; and

 

		d.	Documents that either are, or discuss a damages analysis regarding any of the Patents.

 

	 	4.	Any documents related to marking of patented articles including articles made by Seller that were or should have been marked, and marking
requirements (including steps taken to enforce marking requirements) in any agreements identified hereunder.

 

	 	5.	Assignments of the Patents (regardless of whether they are listed in this Agreement).

 

	 	6.	Any documents relating to governmental incentives or other programs relating to the technology underlying the Patents.

 

	 	7.	Names of law firms and/or individual lawyers involved in any of the Patents so that the privileged nature of any produced documents can
be determined.

 

	 	8.	Documents related to each named inventor of the Patents including:

 

 

 

    	 	3	 

     

    

 

		a.	Employment agreements with each inventor;

 

		b.	Patent Assignments signed by each inventor; and

 

		c.	Invention Assignments signed by each inventor.

 

	 	9.	A list of any actions that must be taken by the Company within ninety (90) days of the anticipated closing date with respect to the Patents,
including the payment of any registration, maintenance or renewal fees or the filing of any documents, applications or certificates.

 

	 	10.	A list of any proceedings or actions before any governmental entity (including the United States Patent and Trademark Office or equivalent
authority anywhere in the world) in which claims are being or were raised relating to the validity, enforceability, scope, ownership
or infringement of any of the Patents.

 

	 	11.	Confirmation in writing that with respect to each Patent, it is currently in compliance with the legal requirements (including payment
of filing, examination and maintenance fees and filing of any necessary oaths, proofs of use or other documents) for maintaining, registering,
filing, certifying or otherwise perfecting or recording the same with or by such governmental entity, and, if not, the steps required
to bring such item into compliance with same.

 

	 	3.2.	Exclusivity. In consideration of the Purchaser's due diligence investigation of the Patents, the Seller agrees that, during the period
between the Effective Date and the date of closing (the “Closing Date”), Seller shall not discuss, negotiate or pursue with
any third parties any offers or proposals with respect to or otherwise relating to any of the Patents.

 

	 	3.3.	Consideration for the Patents. The consideration for the acquisition of the Patents and subject to the consummation of the Closing, shall
be CDN$500,000 to be satisfied:

 

	 	3.3.1.	by the advance of CDN$100,000 (the “Advance”) upon execution of this Agreement to be used exclusively by the Seller for legal
and other transactional fees necessary for the completion of the acquisition of the Assigned Patent Rights, with the remaining amount
(the “Remaining Amount”), if any, being returned to the Purchaser on the Closing Date;

 

	 	3.3.2.	the remaining balance, after accounting for the Remaining Amount, shall be paid by the issuance of units (“Units”) in the
capital stock the Purchaser, at a deemed value of CDN$0.50 per Unit. Each Unit shall consist of one common share in the capital stock
of the Purchaser as constituted at the date hereof (“Common Share(s)”) and one full Common Share purchase warrant priced
at $1.00 CAD exercisable for a period of three (3) years from the Closing Date. Common Shares issued hereunder shall be adjusted for
any share dividends, consolidations and / or share splits between the date hereof and the Closing Date.

 

	4.	TRANSFER OF PATENTS AND ADDITIONAL RIGHTS

 

	 	4.1.	Assignment of Patents. Seller hereby sells, assigns, transfers and conveys to Purchaser all right, title and interest in and to the Assigned
Patent Rights and at Closing will provide Purchaser with the Executed Assignment for the Assigned Patent Rights.

 

	 	4.2.	Additional Patents. Seller hereby represents and warrants to Purchaser that the only patents, reissues, reexaminations, extensions, continuations,
continuations in part, continuing prosecution applications, provisionals and divisions of the Patents and patents and patent applications
that claim priority to any of the foregoing are listed on Exhibit A, including any foreign counterparts thereof. In the event that Purchaser
discovers, at any time, any patents, reissues, reexaminations, extensions, continuations, continuations in part, continuing prosecution
applications, provisionals and/or divisions of the Patents or patents and patent applications that claim priority or otherwise relate
to any of the foregoing, or any foreign counterparts thereof that are owned by Seller (the "Additional Patents”, then the Additional
Patents shall be sold, including by transferring, assigning and setting over, to Purchaser, all right, title and interest thereto, for
no additional consideration, and the Additional Patents shall be deemed "Patents", as applicable, under this Agreement, for
all intents and purposes. In such event, the Parties shall sign an amended Exhibit A to add the Additional Patents thereto and in the
event that Purchaser's notification to Seller is subsequent to the Closing, then the Parties shall conduct a subsequent closing and the
provisions of Section 5.1 shall apply to the sale, assignment transfer and setting over to Purchaser of the Additional Patents, mutatis
mutandis.

 

 

 

    	 	4	 

     

    

 

	 	4.3.	Non-Assumption of Liabilities. It is expressly understood and agreed that Purchaser shall not be liable for and hereby disclaims any
assumption of any of the obligations, claims or liabilities of Seller and/or its Affiliates and/or of any third party of any kind or
nature whatsoever arising from or in connection with any circumstances, causes of action, breach, violation, default or failure to perform
with respect to the Assigned Patent Rights prior to the assignment and sale thereof to Purchaser.

 

	5.	CLOSING AND ADDITIONAL OBLIGATIONS

 

	 	5.1.	The Closing Date shall be on or before December 31, 2021 subject to the following conditions having been previously and/or simultaneously
met:

 

	 	5.1.1.	Purchaser shall have its common shares listed and posted for trading on a recognized public stock exchange;
	 	 	 
	 	5.1.2.	Seller will engage mutually acceptable legal counsel to advise on all corporate matters to effect the acquisition of the Assigned Patent
Rights hereunder;
	 	 	 
	 	5.1.3.	approved legal counsel will provide a written opinion as to the validity of acquisition of the Assigned Patent rights in accordance with
Barbados Common Law;
	 	 	 
	 	5.1.4.	all documentation and registrations to vest ownership of the Assigned Patent Rights in the name of the Purchaser will be completed;
	 	 	 
	 	5.1.5.	all Advances that have not been spent shall be returned to the Purchaser and adjusted for in the Final Closing Payment on the Closing
Date;
	 	 	 
	 	5.1.6.	Seller shall execute and deliver to Purchaser the Executed Assignment and a copy of any and all corporate approvals required by it in
order to execute, deliver and perform this Agreement and the transactions contemplated hereunder.
	 	 	 
	 	5.1.7.	the representations and warranties of Seller contained in this Agreement shall be true at and as of the Closing, as if the Closing was
substituted for the date in such representations and warranties;
	 	 	 
	 	5.1.8.	the completion to the satisfaction of Purchaser of its financial, commercial, intellectual property and legal due diligence examination
of the Assigned Patent Rights. In this regard Purchaser may terminate this Agreement and not consummate the Closing, at its sole discretion,
only after Seller fails to resolve any deficiencies that Purchaser reasonably believes are material based on the results of the Purchaser's
due diligence examination of the Assigned Patent Rights;
	 	 	 
	 	5.1.9.	all corporate and other proceedings in connection with the transactions contemplated by this Agreement shall have been performed by Seller,
all documents and instruments incident to such transactions and reasonably requested by Purchaser shall be reasonably satisfactory in
substance and form to Purchaser and its counsel, shall have been executed and Purchaser and its counsel shall have received counterpart
originals or certified or other copies of such documents and instruments as Purchaser or its counsel may reasonably request.

 

	 	5.2.	Further Cooperation. At the reasonable request of Purchaser, Seller will execute and deliver such other instruments and do and perform
such other acts and things as may be necessary or desirable for effecting completely the consummation of the transactions contemplated
hereby, including execution, acknowledgment and recordation of other such papers for fully perfecting and conveying unto Purchaser the
benefit of the transactions contemplated hereby.

 

	 	5.3.	Payment of Fees. Purchaser will pay any maintenance fees, annuities, and the like due or payable on the Patents for the period commencing
ninety (90) days after the Closing Date.

 

 

 

    	 	5	 

     

    

 

	6.	REPRESENTATIONS AND WARRANTIES OF SELLER

 

Seller hereby represents and warrants to Purchaser as follows that,
as of the Effective Date:

 

	 	6.1.	Authority. Seller has the full power and authority, and has obtained all third party consents, approvals or other authorizations required,
to enter into this Agreement and to carry out its obligations hereunder, including, without limitation, the assignment of the Assigned
Patent Rights to Purchaser. The execution and delivery of this Agreement and the related transaction documents and the consummation of
the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate actions on the part of Seller.
This Agreement and the other transaction documents have been duly executed and delivered by Seller, and constitute legal, valid and binding
obligations of Seller, enforceable in accordance with their terms.
	 	 	 
	 	6.2.	Non-Contravention. Seller's execution, delivery, and performance of its obligations under this Agreement will not conflict with or violate
the corporate documents of Seller or any laws to which Seller is subject, or any agreement or other obligation of Seller or binding upon
Seller's assets or result in the creation or imposition of any mortgage, lien, charge, pledge, security interest, other encumbrance or
third party right upon any of the Assigned Patent Rights.
	 	 	 
	 	6.3.	Title and Contest. Seller owns all right, title, and interest to the Assigned Patent Rights, including all right, title, and interest
to sue for infringement of the Patents and all attorney-client privilege. The identity of all inventors of the inventions underlying
the Patents has been fully disclosed to the U.S. Patent Office as required by U.S. law. The Assigned Patent Rights are free and clear
of all liens, claims, mortgages and security interests. There are no actions, suits, investigations, claims or proceedings threatened,
pending or in progress relating in any way to the Assigned Patent Rights. Seller is not obligated or under any liability whatsoever to
make any payments by way of royalties, fees or otherwise to any owner or licensee of, or other claimant with respect to the use of any
of the Assigned Patent Rights or subject matter disclosed and claimed in the Patents or in connection with the licensing or sale of any
of the Assigned Patent Rights to third parties.
	 	 	 
	 	6.4.	No Joint Development Activity. No Patent (i) is the product or subject of any joint development activity or agreement with any third
party; (ii) is the subject of any consortia agreement; or (iii) has been financed in whole or in part by any third party.
	 	 	 
	 	6.5.	No Preexisting Licenses. Except as otherwise listed on Exhibit 6.5 (the "PreExisting Licenses"), no exclusive or non-exclusive
licenses under the Patents or interest or rights in any of the Assigned Patent Rights have ever been granted.
	 	 	 
	 	6.6.	Terminal Disclaimers. Except as otherwise listed on Exhibit 6.6, there are no terminal disclaimers of any kind related to or affecting
any of the Assigned Patent Rights. Exhibit 6.6 includes a list of all terminal disclaimers that exist with respect to or that affect
the Assigned Patent Rights and provides a description of each such terminal disclaimer, including the subject earlier issued patent(s)
and the respective expiration dates thereof.
	 	 	 
	 	6.7.	Pending United States Applications. Except as otherwise listed on Exhibit 6.7, there are no pending US patent applications of any kind
constituting an Assigned Patent Right. Exhibit 6. 7 includes a list of all pending US patent applications and the respective confirmation
numbers issued by the USPTO therefor.
	 	 	 
	 	6.8.	Patent Marking. To Seller's best knowledge, no licensee under the Assigned Patent Rights would be required to mark any product or services
under the Patents and/or their containers, labels, and/or other packaging with any applicable patent numbers.
	 	 	 
	 	6.9.	Enforcement. Seller has not put a third party on notice of actual or potential infringement of any of the Patents. Seller has not invited
any third party to enter into a license under any of the Patents. Seller has not initiated any enforcement action with respect to any
of the Patents.
	 	 	 
	 	6.10.	Patent Office Proceedings. To Seller's best knowledge, none of the Patents has been or is currently involved in any reexamination, reissue,
interference proceeding, or any similar proceeding, or that any such proceedings are pending or threatened.

 

 

 

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	 	6.11.	Prosecution Obligations; Fees. No actions must be taken by Seller before any governmental entity (including the United States Patent
and Trademark Office or equivalent authority anywhere in the world) within ninety (90) days of the Closing Date with respect to any of
the Assigned Patent Rights. All maintenance fees, annuities, and the like due or payable on the Patents until the lapse of ninety (90)
days following the Closing Date have been timely paid. For the avoidance of doubt, such timely payment includes payment of registration,
maintenance, and renewal fees for which the fee payment window has opened even if the surcharge date is in the future.
	 	 	 
	 	6.12.	Validity and Enforceability. To Seller's knowledge, the Patents have never been found invalid or unenforceable for any reason in any
administrative, arbitration, judicial or other proceeding, and there are no proceedings or actions before any governmental entity (including
the United States Patent and Trademark Office or equivalent authority anywhere in the world) in which claims are or were raised relating
to the validity, enforceability, scope, ownership or infringement of any of the Patents, other than official notices from patent offices
in the course of patent prosecution. Seller does not know of and has not received any notice or information of any kind from any source
suggesting that the Patents may be invalid or unenforceable.
	 	 	 
	 	6.13.	Compliance with Applicable Law. The Patents are currently in compliance with all legal requirements (including payment of filing, examination
and maintenance fees and the filing of any necessary oaths, proofs of use or other documents) for maintaining, registering, filing, certifying
or otherwise perfecting or recording such Patents.
	 	 	 
	 	6.14.	Prior Art Disclosure. To Seller's knowledge (based upon a good faith review of all relevant materials), Seller fully satisfied the duty
to disclose to the United State Patent and Trademark Office all information suspected or known to be material to with respect to the
Patents. Seller has no direct or indirect knowledge with respect to any information that was not submitted to the United States Patent
and Trademark Office related to the Patents. Seller represents that it has disclosed all relevant information to the USPTO related to
the prosecution of the Patents.

 

	7.	REPRESENTATIONS AND WARRANTIES OF PURCHASER

 

Purchaser hereby represents and warrants to Seller as follows that,
as of the Effective Date:

 

	 	7.1.	Purchaser is an Alberta company.
	 	 	 
	 	7.2.	Purchaser has the full power and authority, and has obtained all third party consents, approvals or other authorizations required, to
enter into this Agreement and to carry out its obligations hereunder.
	 	 	 
	 	7.3.	Purchaser's execution, delivery, and performance of its obligations under this Agreement will not conflict with or violate any laws to
which Purchaser is subject, or any agreement or other obligation directly or indirectly applicable to Purchaser or binding upon Purchaser's
assets.

 

	8.	MISCELLANEOUS

 

	 	8.1.	LIMITATION OF LIABILITY. EXCEPT IN THE CASE OF FRAUD, WITHOUT WAIVING ANY OTHER RIGHTS OF THE PARTIES, INCLUDING ANY RIGHT TO SEEK SPECIFIC
PERFORMANCE OR SEEK OTHER EQUITABLE RELIEF, SELLER'S TOTAL LIABILITY (INCLUDING PAYMENT OBLIGATIONS) WILL NOT EXCEED THE VALUE OF THE
ADVANCE AND THE UNITS ISSUED UNDER SECTION 3.3. THE PARTIES ACKNOWLEDGE THAT THESE LIMITATIONS ON POTENTIAL LIABILITIES WERE AN ESSENTIAL
ELEMENT IN SETTING CONSIDERATION UNDER THIS AGREEMENT.
	 	 	 
	 	8.2.	LIMITATION ON CONSEQUENTIAL DAMAGES. EXCEPT IN THE CASE OF FRAUD, NEITHER PARTY WILL BE LIABLE TO THE OTHER (WHETHER IN CONTRACT, WARRANTY,
TORT (INCLUDING NEGLIGENCE) OR OTHERWISE), AND NOTWITHSTANDING ANY FAULT, NEGLIGENCE (WHETHER ACTIVE, PASSIVE OR IMPUTED), REPRESENTATION,
STRICT LIABILITY OR PRODUCT LIABILITY, FOR COVER OR FOR ANY INCIDENTAL, INDIRECT OR CONSEQUENTIAL, MULTIPLIED, PUNITIVE, SPECIAL, OR
EXEMPLARY DAMAGES OR LOSS OF REVENUE, PROFIT, SAVINGS OR BUSINESS ARISING FROM OR OTHERWISE RELATED TO THIS AGREEMENT, EVEN IF A PARTY
OR ITS REPRESENTATIVES HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE PARTIES ACKNOWLEDGE THAT THESE EXCLUSIONS OF POTENTIAL
DAMAGES WERE AN ESSENTIAL ELEMENT IN SETTING CONSIDERATION UNDER THIS AGREEMENT.

 

 

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	 	8.3.	Compliance With Laws. Notwithstanding anything contained in this Agreement to the contrary, the obligations of the Parties will be subject
to all laws, present and future, of any government having jurisdiction over the Parties and this transaction, and to orders, regulations,
directions or requests of any such government.
	 	 	 
	 	8.4.	Assignment. This Agreement may not be assigned by Seller without the prior written consent of Purchaser. Purchaser may assign its rights
and obligations hereunder upon the provision of written notice to Seller. A "Change of Control" transaction of Seller shall
be deemed an assignment and therefore subject to Purchaser's consent as aforesaid. Under no circumstances will any assignment be permitted
to an entity acquiring Seller through insolvency, bankruptcy, assignment for the benefit of one or more creditors (through foreclosure
or any other means) or any similar proceeding, any or all of which shall require the consent of Purchaser. For purposes hereof, a "Change
of Control" shall mean (i) the sale, transfer, or assignment of securities of Seller representing a majority of the voting power
of all of Seller's outstanding voting securities to an acquiring Entity; and (ii) the sale of all or substantially all of Seller's business
or assets. A Change of Control for purposes hereof will not include an internal reorganization or restructuring of Seller into a different
legal form, or reduction in ownership or sale of equity by any director, officer, or shareholder of Seller to any other existing director,
officer, or shareholder of Seller as of the Effective Date.
	 	 	 
	 	8.5.	Confidentiality of Terms. The Parties hereto will keep the terms and existence of this Agreement and the identities of the Parties and
their Affiliates confidential and will not now or hereafter divulge any of this information to any third party except as follows: (a)
with the prior written consent of the other Party; (b) subject to obligations of confidentiality and/or privilege at least as stringent
as those contained herein, to a Party's legal and financial counsel and other professional advisors, in their capacity of advising a
Party in such matters; (c) subject to obligations of confidentiality and/or privilege at least as stringent as those contained herein,
to a counterparty engaged in due diligence in connection with a proposed merger, acquisition, reorganization, or financing of all or
substantially of a Party's assets or equity or in connection with a proposed sale or exclusive license of the Assigned Patent Rights,
as applicable; (d) by Purchaser, in order to perfect Purchaser's interest in the Assigned Patent Rights with any governmental patent
office (including, without limitation, recording the Executed Assignment in any governmental patent office); (e) to enforce Purchaser's
right, title and interest in and to the Assigned Patent Rights; (f) to any governmental body having jurisdiction and specifically requiring
such disclosure; or (g) as required during the course of litigation and subject to a protective order with a confidentiality designation
of "Outside Attorneys' Eyes Only" or higher; provided that, in (f) and (g) above, (i) the disclosing party will use all legitimate
and legal means available to minimize the disclosure to third parties, including, without limitation, seeking a confidential treatment
request or protective order whenever appropriate or available; and (ii) the disclosing Party will provide the other Party with at least
ten (10) days' prior written notice of such disclosure.
	 	 	 
	 	8.6.	Governing Law; Forum. This Agreement, its performance and interpretation shall be governed by the substantive law of the Province of
Alberta exclusive of its choice of law rules and attorn the courts of therein.
	 	 	 
	 	8.7.	Notices. All notices given hereunder will be given in writing, will refer to this Agreement and will be: (i) personally delivered, (ii)
delivered prepaid by an internationally recognized express courier service, or (iii) sent postage prepaid registered or certified U.S.
mail (return receipt requested); AND (iv) an electronic copy sent via email, all to the addresses set forth above for the Seller and
the Purchaser. Notices are deemed received on (a) the date of receipt if delivered personally or by express courier (or if delivery refused,
the date of refusal), or (b) the fifth (5th) calendar day after the date of posting if sent by US mail. Notice given in any other manner
will be deemed to have been received only if and when received at the address of the Person to be notified. Either party may from time
to time change its address for notices under this Agreement by giving the other party written notice of such change in accordance with
this Section.

 

	 	8.8.	Relationship of Parties. The Parties are independent contractors and not partners, joint venturers, or agents of the other. Neither Party
assumes any liability of or has any authority to bind, or control the activities of, the other. 8.9 Severability. If any provision of
this Agreement is found to be invalid or unenforceable, then the remainder of this Agreement will have full force and effect, and the
invalid provision will be modified, or partially enforced, to the maximum extent permitted to .effectuate its original objective.

 

	 	8.9.	Waiver. Failure by either Party to enforce any term of this Agreement will not be deemed a waiver of future enforcement of that or any
other term in this Agreement or any other agreement that may be in place between the Parties.

 

 

 

    	 	8	 

     

    

 

	 	8.10.	Miscellaneous. This Agreement, including its exhibits, constitutes the entire agreement between the Parties with respect to the subject
matter hereof, and merges and supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions. Neither
of the Parties will be bound by any conditions, definitions, warranties, obligations (including obligations to prosecute any of the Patents),
understandings, or representations with respect to the subject matter hereof other than as expressly provided herein. The section headings
contained in this Agreement are for reference purposes only and will not affect in any way the meaning or interpretation of this Agreement.
No oral explanation or oral information by either Party hereto will alter the meaning or interpretation of this Agreement. No amendments
or modifications will be effective unless in writing and signed by authorized representatives of both Parties. The Exhibits referenced
herein and attached hereto are incorporated into this Agreement as though fully set forth herein.

 

		8.11.	Counterparts; Electronic Signature. This Agreement may be executed in counterparts, each of which will
be deemed an original, and all of which together constitute one and the same instrument. Each Party will execute and deliver to the other
Party a copy of this Agreement bearing its original signature. Prior to such execution and delivery, in order to expedite the process
of entering into this Agreement, the Parties acknowledge that Transmitted Copies of this Agreement will be deemed original documents.
"Transmitted Copies" means copies that are reproduced or transmitted via email of a .pdf file, photocopy, facsimile or other
process of complete and accurate reproduction and transmission.

 

In witness whereof, the Parties
have caused this Agreement to be executed as of the Effective Date by their respective duly authorized representatives.

 

	TRUESTATE INTERNATIONAL, INC.	TRUENORTH QUANTUM INC.
	 	 
	 	 
	per :/s/ Trevor Michael	per: /s/ Gary Bartholomew
	         Trevor Michael	          Gary Bartholomew
	        Director and President	           Executive Chairman

 

 

 

 

 

 

 

 

 

 

    	 	9	 

     

    

 

Exhibit A

 

THE PATENTS

 

	Patent 

No.	Serial No.	Country	Filing Date	Issue Date	Title
	 	60/821,065	US	08/01/2006	 	Systems and Methods for Securely Providing and/or Accessing Information
	7624440	11/830,891	US	07/31/2007	11/24/2009	Systems and Methods for Securely Providing and/or Accessing Information
	 	PCT/US07/74928	WO	08/01/2007	 	Systems and Methods for Securely Providing and/or Accessing Information
	8650391	12/616,493	US	11/11/2009	02/11/2014	Systems and Methods for Securely Providing and/or Accessing Information

 

 

 

 

 

 

 

 

 

 

    	 	10	 

     

    

 

 

Exhibit 2.4

 

ASSIGNMENT AGREEMENT

 

This Assignment Agreement (the "Agreement")
is made and entered into on ●November 30, 2018 (the "Effective Date"), by:

 

TRUSTATE INTERNATIONAL, INC.,
a Barbados Corporation with an address of Chamberlain Place, Broad Street Bridgetown, Barbados; email:
tmichael@reardoncapital.com (the "Assignor”)

 

and

 

TRUENORTH QUANTUM INC., an
Alberta Canada Corporation with an address of #307C, 2 Campbell Drive, Uxbridge, Ontario, Canada; email:
gary@truenorthquantum.com (the "Assignee”)

 

RECITALS

 

A.       Assignor is the owner of:

 

		·	the United States Patents set forth on Exhibit A hereto (the "US Patents");

 

		·	the non-United States patents set forth on Exhibit B hereto (the "Foreign
Patents");

 

		·	the United States patent applications set forth on Exhibit C hereto (the
"US Patent Applications");

 

		·	the United States provisional patent applications
set forth on Exhibit D hereto (the "US Provisional Patent Applications"); and/or

 

		·	the foreign patent applications set forth on
Exhibit E hereto (the "Foreign Patent Applications");

 

which collectively shall be referred to herein as the "Patents";
AND

 

B.       Assignor
and Assignee have agreed by way of a purchase agreement (the "Purchase Agreement") dated ●November 30, 2018, by and between
Assignor and Assignee, the terms of which are incorporated herein by reference, that Assignor shall sell, transfer, and assign and set
over unto Assignee and Assignee shall accept, all rights, title and interest in and to the Patents as specified in this Agreement. In
the event of any conflict between the terms of this Patent Assignment Agreement and the referenced Purchase Agreement, the terms of the
Purchase Agreement shall prevail;

 

NOW, THEREFORE, in consideration of the foregoing
premises, and the covenants and agreements in this Assignment, Assignor and Assignee agree as follows:

 

		1.	Assignor does hereby sell, transfer, convey, assign and deliver to Assignee all of Assignor's right, privilege,
title and interest in, to and under the Patents and in the case of patent applications in and to any patents that may issue therefrom,
including, in all instances, any counterparts of any of the foregoing in any jurisdiction throughout the world, and any and all divisions,
continuations, reissues or reexaminations of any of the foregoing, and, further, all applications for industrial property protection,
including without limitation, all applications for patents, utility models, copyright, and designs which may hereafter be filed for any
inventions described in said Patents in any country or countries, together with the right to file such applications and the right to claim
for the same the priority rights derived from the inventions and the Patents under the laws of the United States, the International Convention
for the Protection of Industrial Property, or any other international agreement or the domestic laws of the country in which any such
application is filed, as may be applicable, in each instance the same to be held by Assignee for Assignee's own use and enjoyment, and
for the use and enjoyment of Assignee's successors, assigns and other legal representatives, as fully and entirely as the same would have
been held and enjoyed by Assignor if this Assignment and sale had not been made; together with all claims for damages, royalties, income
or other remuneration (hereinafter "Damages") by reason of past, present and future infringements of the Patents or other rights
being assigned hereunder, along with the right to sue for and collect such Damages for the use and benefit of Assignee and its successors,
assigns and other legal representatives.

 

 

 

    	 	11	 

     

    

 

		2.	Insofar as this assignment concerns European patents and patent applications, Assignor does hereby declare
that it is the owner of said Patents and that Assignor has assigned same, along with all rights and duties appurtenant
thereto, to Assignee and agree that the assignment will be recorded in the register with the European Patent Office; and Assignee hereby
declares that Assignee has agreed to the assignment of the aforementioned Patents to it and that Assignee will simultaneously apply for
recording of the assignment in the register with the European Patent Office.

  

		3.	Assignor hereby authorizes and requests the Commissioner for Patents of the United States, and any officer
of any country or countries foreign to the United States, whose duty it is to issue patents or other evidence or forms of intellectual
property protection or applications as aforesaid, to issue the same to Assignee and its successors, assigns and other legal representatives
in accordance with the terms of this instrument.

 

		4.	Assignor agrees that, whenever reasonably requested by Assignee, Assignor will execute all papers, take
all rightful oaths, and do all acts which may be reasonably necessary for securing and maintaining the Patents in any country and for
vesting title thereto in Assignee, its successors, assigns and legal representatives or nominees.

 

		5.	Assignor authorizes and empowers Assignee, its successors, assigns and legal representatives or nominees,
to invoke and claim for any application for patent or other form of protection for the inventions, the benefit of the right of priority
provided by the International Convention for the Protection of Industrial Property, as amended, or by any convention which may henceforth
be substituted for it, or any other international agreement or the domestic laws of the country in which any such application is filed,
as may be applicable, and to invoke and claim such right of priority without further written or oral authorization from Assignor.

 

		6.	Assignor hereby acknowledges and agrees that all of the rights, title and interest in and to the Patents
sold, transferred, assigned and set over to Assignee hereunder include all income, royalties, damages and payments now or hereafter due
or payable with respect thereto, and all causes of action (whether in law or equity) and the right to sue, counterclaim, and recover for
the past, present and future infringement of the rights assigned or to be assigned hereunder.

 

		7.	Assignor hereby consents that a copy of this Agreement shall be deemed a full legal and formal equivalent
of any assignment, consent to file or like document that may be required in any country for any purpose and more particularly in proof
of the right of Assignee or nominee to claim the aforesaid benefit of the right of priority provided by the International Convention for
the Protection of Industrial Property, as amended, or by any convention which may henceforth be substituted for it.

 

IN WITNESS WHEREOF, the Parties have executed this Assignment on the
Effective Date.

 

 

	TRUESTATE INTERNATIONAL, INC.	TRUENORTH QUANTUM INC.
	 	 
	 	 
	per :/s/ Trevor Michael	per: /s/ Gary Bartholomew
	         Trevor Michael	          Gary Bartholomew
	        Director and President	           President and CEO

 

 

 

    	 	12	 

     

    

 

EXHIBIT A

 

TO ASSIGNMENT AGREEMENT

 

	Patent Number	Issue Date	Title 
	7624440	11/24/2009	Systems and Methods for Securely Providing and/or Accessing Information
	8650391	02/11/2014	Systems and Methods for Securely Providing and/or Accessing Information

 

 

 

 

 

 

 

 

 

 

    	 	13	 

     

    

 

 

EXHIBIT B

 

TO ASSIGNMENT AGREEMENT

 

Foreign Patents

 

 

	Patent Number	Issue Date	Title
	 	 	 
	None	 	 

 

 

 

 

 

 

 

 

 

 

    	 	14	 

     

    

 

EXHIBIT C

 

TO ASSIGNMENT AGREEMENT

 

US Patent Applications

 

 

 

	Patent Number	Issue Date	Title
	 	 	 
	None	 	 

 

 

 

 

 

 

 

 

 

    	 	15	 

     

    

 

 

 

EXHIBIT D

 

TO ASSIGNMENT AGREEMENT

 

US Provisional Applications

 

	Patent Number	Issue Date	Title 	Inventor(s)
	60/821,065	08/01/2006	Systems
    and Methods for Securely Providing and/or Accessing Information	Ramsey Jallad, 

Patrick Stach and John Terrill

 

 

 

 

 

 

 

 

 

 

    	 	16	 

     

    

 

EXHIBIT E

 

TO ASSIGNMENT AGREEMENT

 

Foreign Patent Applications

 

	Patent Number	Issue Date	Title
	PCT/US07 /74928	Systems and Methods for Securely Providing and/or Accessing Information	 

 

 

 

 

 

 

 

    	 	17	 

     

    

 

Exhibit 5.1.10

 

Inventor Oath and Declaration

 

Declaration for Utility and Design Patent Applications

 

As a below named inventor, I hereby declare that:

 

Each inventor's residence, mailing address,
and citizenship are as stated below next to his or her name.

 

I believe the inventors named below
to be the original and first inventor(s) or original, first, and joint inventor(s) of the subject matter which is claimed and for which
a patent is sought on the invention entitled

 

Insert Title:

 

the application of which is attached hereto unless the following is
checked

 

□       was
filed on _______as United States Application Number _______ and

 

was filed on_______as PCT International Application Number
_______

 

_______and was amended on _______(if
applicable).

 

The above-identified application was made or authorized to be made by me.

 

I hereby state that I have reviewed and understand
the contents of the above identified application, including the claim(s), as amended by any amendment specifically referred to above.

 

I acknowledge the duty to disclose information
which is material to patentability as defined in 37 CFR 1.56, including for continuation-in-part applications, material information which
became available between the filing date of the prior application and the national or PCT international filing date of the continuation-in-part
application.

 

I hereby acknowledge that any willful false statement
made in this declaration is punishable under section 1001 of title 18 by fine or imprisonment of not more than 5 years, or both.

 

Hereby executed by the undersigned on the date opposite the undersigned
name:

 

Full Name of Sole/First Inventor _____________

Inventor's Signature _______Date_______

Residence_________________________________ Citizenship___________

                           (City,
State, Country) (Country)

Mailing Address____________________________________________

 

 

 

    	 	18	 

     

    

 

 

Full Name of Second/Joint Inventor ________________________________

Inventor's Signature_______________________ Date__________________

Residence _________________ Citizenship________________________

                        (City,
State, Country) (Country) 

Mailing Address_____________________________

 

 

Full Name of Second/Joint Inventor ________________________________

Inventor's Signature_______________________ Date__________________

Residence _________________ Citizenship________________________

                        (City,
State, Country) (Country) 

Mailing Address_____________________________

 

 

 

    	 	19	 

     

    

 

Exhibit 6.6

 

TERMINAL DISCLAIMERS

 

	US Application or Patent No.	Subject to a Terminal Disclaimer 

with US Application or Patent No.
	 	 
	l   8650391	l7624440

 

 

 

    	 	20	 

     

    

 

Exhibit 6.7

 

PENDING UNITED STATES APPLICATIONS

 

 

	Pending US Patent Application	USPTO Confirmation Number
	NONE	 

 

 

 

 

 

 

    	 	21

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