Document:

Unassociated Document

Exhibit 10.15

 

AMENDMENT #2 TO SUBSCRIPTION AGREEMENT

 

This AMENDMENT #2 TO SUBSCRIPTION AGREEMENT (this "Amendment"), dated as of June 30, 2009, is made by and between NEW CENTURY BANK, a Pennsylvania bank with main office in Phoenixville, Chester County, Pennsylvania (the "Bank") and JAY S. SIDHU, an individual (the "Subscriber"). 

 

Background

 

A. Pursuant to a Subscription Agreement, as amended by Amendment to Subscription Agreement (collectively, as so amended, the "Subscription Agreement"), Subscriber has subscribed to purchase 136,364 shares of the Bank's voting common stock (the "Purchased Shares") in the Bank's pending offering (the "Offering"), along with a Warrant (the "Warrant") for the purchase of an additional 485,743 shares of the Bank's common stock at an exercise price of $5.50 per share (the "Warrant Shares") , for an aggregate purchase price of $750,000 (the "Purchase Price"), or $5.50 per Purchased Share.

B. The approval of the Board of Governors of the Federal Reserve System ("FRB") and the Pennsylvania Banking Department ("PADOB") would be required for Subscriber to acquire shares, or a warrant for shares, of the Bank's common stock in the amount of 10% or more of the Bank's outstanding common stock. The parties have determined that the issuance of the Purchased Shares and the Warrant for all of the Warrant Shares is likely to require prior approval of the Regulators, which cannot feasibly be obtained prior to closing on the subscription, which is to occur this date.

 

C. The parties wish to provide a means for Subscriber to obtain the Purchased Shares this date and the Bank to obtain this date the subscription proceeds invested by Subscriber, while also avoiding an acquisition by Subscriber that would require a prior approval.

 

NOW, THEREFORE, intending to be legally bound hereby, and for other good and valuable consideration the receipt and sufficiency is hereby acknowledged, the parties hereto agree as follows:

 

1    Issuance of Purchase Shares. The Bank shall issue that number of Purchased Shares, and a proportional number of the Warrant Shares, to Subscriber on this date, in an aggregate amount that shall not exceed 9.9% of the Bank's outstanding shares of common stock (calculated in accordance with the requirements of the Regulators including without limitation by taking into account the assumed exercise by Subscriber of the Warrant for all Warrant Shares covered thereby). The parties have determined and agreed that this shall be 110,910 Purchased Shares and a Warrant for 373,407 Warrant Shares (the "Issued Securities"). The balance of the Purchased Shares and any warrant for the balance of the Warrant Shares (the "Unpurchased Securities") shall not be issued by the Bank unless and until all necessary regulatory approvals are obtained.

 

2. Release of Subscription Proceeds to Bank; Disposition of Unpaid Purchase Price. The allocable purchase price for the Issued Securities is $610,000.00 (the "Releasable Purchase Price"). The Subscriber authorizes Bank to release the Releasable Purchase Price from the subscription escrow and take delivery of such funds for use for any proper corporate purposes. The balance of the Purchase Price, or $140,000.00 (the "Unpaid Purchase Price") shall remain in escrow until the Subscriber receives all necessary regulatory approvals for acquiring the Unpurchased Securities.

 

3. Blocking of Rights to Remaining Purchased Shares and Warrant Shares. Unless and until Subscriber shall have received any necessary approvals from the Regulators for Subscriber's ownership of the Unpurchased Securities, Subscriber agrees that Bank shall not be obligated to issue, and the Bank shall not issue, any of the Unpurchased Securities as would cause the Subscriber to own, directly or indirectly, not more than 9.9% of the Bank's outstanding common stock (calculated as provided in Section 2). During the period prior to the receipt of all necessary approvals, Subscriber shall not be entitled to any of the benefits of the Unpurchased Securities, and without limiting the foregoing shall not be entitled to transfer, exercise, vote, or cause the exercise or voting of any of the Unpurchased Securities.

  

  

  

 

4. Termination of Escrow and Refund of Unpaid Purchase Price in Absence of Approvals.  Notwithstanding any provision of this Amendment or the Subscription Agreement, so long as Subscriber shall not have received all applicable approvals of Regulators for Subscriber's purchase of the Unpurchased Securities, either Subscriber or Bank, by written notice to the other party, may terminate the Subscription Agreement as to all or part of the Unpurchased Securities, and thereupon the Bank shall cause the portion of the Unpaid Purchase Price allocable to the Unpurchased Securities as to which the Subscription Agreement is being terminated to be repaid immediately to Subscriber.

 

5. Miscellaneous.

 

(a) Entire Agreement. This Amendment and the Subscription Agreement contain the entire agreement and understanding of the parties with respect to its subject matter, but this Amendment supersedes the Subscription Agreement to the extent its express terms are inconsistent with the express terms of the Subscription Agreement. This Amendment supersedes all prior agreements, arrangements and understandings between the parties, either written or oral, with respect to its subject matter.

 

(b) Captions. The captions contained in this Amendment are for reference purposes only and are not part of this Amendment.

 

(c) Agreements; Waivers. No provision of this Amendment may be waived or amended except in a written instrument signed, in the case of an amendment, by the Bank and the Subscriber or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought. No waiver of any default with respect to any provision, condition or requirement of this Amendment shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right.

 

(d) Execution. This Agreement may be executed through the use of separate signature pages or in any number of counterparts, and each of such counterparts shall, or all purposes, constitute one agreement binding on all parties, notwithstanding that all parties are not signatories to the same counterpart. Any facsimile or other electronic signature of any party hereto shall constitute a legal, valid and binding execution hereof by such party.

 

(e) Severability. Each provision of this Amendment is intended to be severable from every other provisions, and the invalidity or illegality of any portion hereof shall not affect the validity or legality of the remainder hereof.

 

(f) Non-Assignment. This Agreement is not transferable or assignable by the Subscriber.

 

(g) Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Amendment shall be governed by and construed and enforced in accordance with the internal laws of the Commonwealth of Pennsylvania, without regard to the principles of conflicts of law thereof. Each party agrees that all proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Amendment (whether brought against a party hereto or its respective Affiliates, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the Commonwealth of Pennsylvania (the "Pennsylvania Courts"). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the Pennsylvania Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any proceeding, any claim that it is not personally subject to the jurisdiction of any Pennsylvania Court, or that such proceeding has been commenced in an improper or inconvenient forum. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Amendment and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any proceeding arising out of or relating to this Amendment or the transactions contemplated hereby. If either party shall commence a proceeding to enforce any provisions of this Amendment, then the prevailing party in such proceeding shall be reimbursed by the other party for its reasonable attorney's fees and other reasonable costs and expenses incurred with the investigation, preparation and prosecution of such proceeding.

 

 

  

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(h) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Bank, the Subscriber and their respective successors, heirs, personal representatives and permitted assigns, subject to restrictions on assignment set forth above.

 

IN WITNESS WHEREOF, this Amendment #2 has been duly executed respectively by the Bank and the Subscriber as of the date set forth above.

 

 

 

	
NEW CENTURY BANK

	  
	
By:

	/s/ James W. McKeighan, III
	  	
James W. McKeighan, III

	  	
President

	  
	 
	  
	/s/ Jay S. Sidhu                      
	
Jay S. Sidhu, Individually

 

 

 

 

- 3 -Unassociated Document

Exhibit 10.16

 

STOCK OPTION AGREEMENT

(Non-Qualified Option - Immediate Vesting – Director or Employee)

THIS AGREEMENT GRANTS A NON-QUALIFIED STOCK OPTION (“NQO”)

Dear _______________________________ (“Grantee”):

In view of your contributions toward the achievement of the business goals and objectives of NEW CENTURY BANK (the "Bank") and the expectation of your future contributions, the Board of Directors of the Bank is pleased to award you an option to purchase shares of the Common Stock of the Bank pursuant to the 2004 Incentive Equity and Deferred Compensation Plan of New Century Bank (the "Plan"). This is the stock option agreement between you and the Bank. The option awarded to you is subject to the following terms.

1. NUMBER OF SHARES: You are awarded an option to purchase a total of ______ shares of the Common Stock of the Bank, subject to the terms, conditions and restrictions set forth in this Agreement and the Plan.

2. TYPE OF OPTION: The option awarded to you is a Non-Qualified Option as that term is defined in the Plan.  This option is NOT to be treated as an “incentive stock option” under Section 422 of the Internal Revenue Code.

3. EXERCISE PRICE: The shares may be purchased upon your exercise of this option for the price of $11.00 per share

4. DATE OF GRANT OF AWARD: The Grant Date of the award of this option is December 20, 2005, which is also the date of this Agreement.

5. STATED EXPIRATION DATE: Unless earlier terminated as explained below, the option awarded to you expires (with respect to any number of shares subject to this option not previously exercised) on the 10th anniversary of the Grant Date stated above. This is the Stated Expiration Date.

6. DATE OPTION BECOMES EXERCISABLE; LOSS OF OPTION IN CERTAIN CIRCUMSTANCES: The stock option awarded to you is exercisable at any time after the Grant Date stated above. The stock option remains exercisable by you until the expiration of the option in accordance with the terms of this Agreement and the terms of the Plan.

7. EXERCISE OF OPTION: You may exercise the option awarded to you from time to time as provided above by delivering to the Bank all of the following:

(a) Written notice of the exercise marked to the attention of the Chief Financial Officer specifying the number of whole shares in respect of which you are exercising the option, in the form of “Notice of Stock Option Exercise” attached to this Agreement or another form acceptable to the Bank, completed and signed by you.

 

 

  

  

  

 

(b) Except as noted in paragraph 7(d) below, payment of the exercise price by certified check payable to the order of the Bank.

(c) Payment of any federal, state and local withholding taxes required in respect of such exercise in any combination of the forms of payment described in (b) above.

(d) You may pay the exercise price by directing the Bank to withhold from those shares of Common Stock that would otherwise be received upon the exercise of the Stock Option either (i) shares of Common Stock of the Bank already owned by you, (ii) shares of Common Stock of the Bank you are entitled to receive as a result of stock option exercises that you are entitled to make for such purpose, but only if those options are “in the money,” or (iii) any combination of the foregoing.  Notwithstanding the foregoing, shares of Common Stock of the Bank may only be applied against the exercise price or to pay any federal, state or local withholding or other taxes to the extent consistent with any restrictions applicable to such shares. If shares of Common Stock of the Bank are to be applied in whole or partial payment of the exercise price or any withholding taxes, they shall be applied at their Fair Market Value (as determined by the Bank) on the relevant date.

Upon receipt of the payment and documents and payments listed above, the Bank will issue you a certificate for the number of shares with respect to which you have exercised the option.

8. EXERCISE DATE: The date on which the Bank receives the documents specified above in complete and otherwise acceptable form and the payments specified above will be treated as the Exercise Date with respect to your exercise of the stock option.

9. NON-ASSIGNABILITY OF OPTION: Except as provided by the Plan, the option awarded to you is exercisable only by you. The option may not be transferred, assigned, pledged as security or hypothecated in any other way and shall not be subject to execution, attachment or similar process even if you agree with someone else that it will be, except that if you die while still employed with the Bank , your estate or the person who acquires the right to exercise the Stock Option upon your death by bequest or inheritance may exercise your option. Upon any attempt by you to transfer, assign, pledge, hypothecate or otherwise dispose of this option or of any portion thereof or upon the levy of any execution, attachment or similar process on this option or on any portion thereof, the option awarded to you will immediately expire with respect to the number of shares not exercised prior to such event.

10. RIGHTS IN SHARES SUBJECT TO OPTION: You will not be treated as a holder of any of the shares subject to this option or of any rights of a holder of such shares unless and until the shares are issued to you as evidenced by stock certificates.

11. EFFECT ON EMPLOYMENT: This Agreement is not an employment agreement or service contract. Therefore, none of the rights awarded to you by this Agreement affect, in any way, your employment or service relationship with the Bank.

12. TERMINATION OF EMPLOYMENT OR SERVICE: Except as otherwise provided in the Plan or this Agreement, upon termination of your employment (and service as a director, if applicable) with the Bank, the unexercised portion of this option will terminate according to the following terms:

 

 

  

  

  

 

(a) If the termination of your employment and service as a director is on account of death or disability or you terminate on account of retirement which has been approved by the Bank, your option will terminate on the Stated Expiration Date described above.

(b) If the termination of your employment or severance from service as a director is for “Cause” as defined in the Plan, your option will terminate automatically with respect to any shares not previously exercised, effective immediately as of your termination or separation.

 

(c) If the termination of your employment and service as a director is by your own act, your option will terminate at the close of business on the earlier of the Stated Expiration Date described above or on the ninetieth (90th) day following the date of your termination or separation.

(d) If the termination of your employment and service as a director is for any other reason, your option will terminate at the close of business on the earlier of the Stated Expiration Date described above or on the third (3rd) anniversary of the date that your employment with the Bank and services as a director shall have terminated.

13. OPTION AWARDED SUBJECT TO PLAN PROVISIONS: The Plan provisions take precedence over the provisions of this Agreement, Therefore, in the case of any inconsistency between any provision of this Agreement and any provision of the Plan in effect on the Grant Date, the provision of the Plan will control.

14. DETERMINATION OF “FAIR MARKET VALUE”; NO WARRANTY OR REPRESENTATION REGARDING TAX CONSEQUENCES:

(a) “Fair Market Value” as defined in the Plan as of any date of reference shall be determined by the Bank.  The Bank’s determination and method of determination shall be conclusive upon you if consistent with Sections 422 and 409A of the Code (or successor provisions) and any regulations or interest thereunder at the time of the valuation.  The Bank may, but shall not be obligated to, obtain an independent appraisal to determine “Fair Market Value.”

(b) Bank does not make any representations or warranties to you with respect to any federal, state or other income or other tax consequences with respect to the grant or exercise of this option or any disposition of this option or any shares issuable upon its exercise (including without limitation whether the grant or any exercise or disposition of any option shares or rights or stock acquired as a result of exercise of this option is at “fair market value”).  It is your responsibility to consult with your own tax advisor with respect to such matters.

15. COUNTERPARTS: This Agreement may be executed in one or more counterparts each of which shall be deemed an original and all of which shall be deemed one and the same agreement.

IN WITNESS WHEREOF, the Bank and the Grantee have duly executed this Agreement as of the Grant Date.

	
NEW CENTURY BANK

 

 

By: ________________________________

Print Name: Kenneth B. Mumma

Title: Chairman & CEO

	
Grantee:

 

 

________________________________

(Signature)

Print Name: _______________________

 

  

  

  

 

NEW CENTURY BANK

2004 INCENTIVE EQUITY AND DEFERRED COMPENSATION PLAN

NOTICE OF STOCK OPTION EXERCISE

To:           New Century Bank

From:      ___________________________                Date:           ____________________, 20____

(Grantee Name)

Address: ______________________________________________________________________

Tel.No. (______) _______ - ___________

Date of Grant: _______________, _______

Number of Shares Exercised: ________                                                                           Exercise Price Per Share: $_________   

	 	Total Exercise Price:	$ __________. ____
	 	PLUS (Contact Payroll to Determine):	 
	 	Federal Income Tax Withholding	$ __________. ____
	  	
F.I.C.A. Tax Withholding

	
$ __________. ____

	  	
Pennsylvania Personal Income Tax Withholding

	
$ __________. ____

	  	
Local Earned Income Tax Withholding

	
$ __________. ____

	  	
Subtotal of withholding taxes

	
$ __________. ____

	  	  	  
	  	
TOTAL REMITTANCE

	
$ __________. ____

______________________________________________________________________

THE FOLLOWING SECTION IS ONLY APPLICABLE IF THE USE OF SHARES TO PAY PART OF THE EXERCISE PRICE IS EXPRESSLY PERMITTED UNDER SECTION 7 OF THIS STOCK OPTION AGREEMENT

_____ Check this box if you want to use all or part of any shares you own or are being exercised that are “in the money” to pay exercise price or taxes.  How many shares:  _________.]

	
LESS “Fair Market Value” of any shares being exercised that are 

requested and may be used to pay exercise price or taxes, AS 

DETERMINED BY BANK (Contact Payroll to Determine):

 

	
 

 

$ __________. ____

	
NET REMITTANCE

	
$ __________. ____

 (IF THIS SECTION IS APPLICABLE, attach properly endorsed certificates of stock to be used to pay part of price).  Please note that value of this stock and the final amount of remittance due is subject to adjustment pending Bank’s determination of applicable stock value.)

______________________________________________________________________

Attach certified check for remittance due.

Please accept the above notice of exercise and issue share certificates as required.

__________________________________

(signature of person authorized to exercise)

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