Document:

Exhibit 4.5

 

THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS.

 

WARRANT

to purchase

895,968

Shares of Common Stock
 of CoBiz Financial Inc.

 

1.                                       Definitions. Unless the context otherwise requires, when used herein the following terms shall have the meanings indicated.

 

“Affiliate” means, with respect to any Person, any Person directly or indirectly controlling, controlled by or under common control with, such other Person.  For purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”) when used with respect to any Person, means the possession, directly or indirectly, of the power to cause the direction of management and/or policies of such Person, whether through the ownership of voting securities by contract or otherwise.

 

“Board of Directors” means the board of directors of the Company, including any duly authorized committee thereof.

 

“Business Combination” means a merger, consolidation, statutory share exchange or similar transaction that requires the approval of the Company’s stockholders.

 

“business day” means any day except Saturday, Sunday and any day on which banking institutions in the State of New York generally are authorized or required by law or other governmental actions to close.

 

“Capital Stock” means (A) with respect to any Person that is a corporation or company, any and all shares, interests, participations or other equivalents (however designated) of capital or capital stock of such Person and (B) with respect to any Person that is not a corporation or company, any and all partnership or other equity interests of such Person.

 

“Charter” means, with respect to any Person, its certificate or articles of incorporation, articles of association, or similar organizational document.

 

“Common Stock” means the common stock, par value $0.01 per share, of the Company.

 

 

“Company” means the Person whose name, corporate or other organizational form and jurisdiction of organization is set forth in Item 1 of Schedule A hereto.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations promulgated thereunder.

 

“Exercise Price” means the amount set forth in Item 2 of Schedule A hereto.

 

“Expiration Date” means the date set forth in Item 3 of Schedule A hereto.

 

“Expiration Time” means 5:00 p.m., New York City time on the Expiration Date.

 

“Fair Market Value” means, with respect to any security or other property, the fair market value of such security or other property as determined by the Board of Directors, acting in good faith.

 

“Governmental Entities” means, collectively, all United States and other governmental, regulatory or judicial authorities.

 

“Market Price” means, with respect to a particular security, on any given day, the last reported sale price regular way or, in case no such reported sale takes place on such day, the average of the last closing bid and ask prices regular way, in either case on the principal national securities exchange on which the applicable securities are listed or admitted to trading, or if not listed or admitted to trading on any national securities exchange, the average of the closing bid and ask prices as furnished by two members of the Financial Industry Regulatory Authority, Inc. selected from time to time by the Company for that purpose. “Market Price” shall be determined without reference to after hours or extended hours trading. If such security is not listed and traded in a manner that the quotations referred to above are available for the period required hereunder, the Market Price per share of Common Stock shall be deemed to be the fair market value per share of such security as determined in good faith by the Board of Directors in reliance on an opinion of a nationally recognized independent investment banking corporation retained by the Company for this purpose and certified in a resolution to the Warrantholder. For the purposes of determining the Market Price of the Common Stock on the “trading day” preceding, on or following the occurrence of an event, (i) that trading day shall be deemed to commence immediately after the regular scheduled closing time of trading on the principal stock exchange on which the Common Stock is then listed or traded (or, if not so listed or traded, the New York Stock Exchange) or, if trading is closed at an earlier time, such earlier time and (ii) that trading day shall end at the next regular scheduled closing time, or if trading is closed at an earlier time, such earlier time (for the avoidance of doubt, and as an example, if the Market Price is to be determined as of the last trading day preceding a specified event and the closing time of trading on a particular day is 4:00 p.m. and the specified event occurs at 5:00 p.m. on that day, the Market Price would be determined by reference to such 4:00 p.m. closing price).

 

“Ordinary Cash Dividends” means a regular quarterly cash dividend on shares of Common Stock out of surplus or net profits legally available therefor (determined in accordance with U.S. GAAP in effect from time to time), provided that Ordinary Cash

 

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Dividends shall not include any cash dividends to the extent the aggregate per share dividends paid on the outstanding Common Stock in any quarter exceed the Quarterly Dividend Threshold, as adjusted for any stock split, stock dividend, reverse stock split, reclassification or similar transaction.

 

“Person” has the meaning given to it in Section 3(a)(9) of the Exchange Act and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act.

 

“Per Share Fair Market Value” has the meaning set forth in Section 13(C).

 

“Pro Rata Repurchases” means any purchase of shares of Common Stock by the Company or any Affiliate thereof pursuant to (A) any tender offer or exchange offer subject to Section 13(e) or 14(e) of the Exchange Act or Regulation 14E promulgated thereunder or (B) any other offer available to substantially all holders of Common Stock, in the case of both (A) or (B), whether for cash, shares of Capital Stock of the Company, other securities of the Company, evidences of indebtedness of the Company or any other Person or any other property (including, without limitation, shares of Capital Stock, other securities or evidences of indebtedness of a subsidiary), or any combination thereof, effected while this Warrant is outstanding. The “Effective Date” of a Pro Rata Repurchase shall mean the date of acceptance of shares for purchase or exchange by the Company under any tender or exchange offer which is a Pro Rata Repurchase or the date of purchase with respect to any Pro Rata Repurchase that is not a tender or exchange offer.

 

“Quarterly Dividend Threshold” means the amount set forth in Item 4 of Schedule A hereto.

 

“Regulatory Approvals” with respect to the Warrantholder, means, to the extent applicable and required to permit the Warrantholder to exercise this Warrant for shares of Common Stock and to own such Common Stock without the Warrantholder being in violation of applicable law, rule or regulation, the receipt of any necessary approvals and authorizations of, filings and registrations with, notifications to, or expiration or termination of any applicable waiting period under, the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations thereunder.

 

“SEC” means the U.S. Securities and Exchange Commission.

 

“Securities Act” means the Securities Act of 1933, as amended, or any successor statute, and the rules and regulations promulgated thereunder.

 

“Shares” has the meaning set forth in Section 2.

 

“trading day” means (A) if the shares of Common Stock are not traded on any national or regional securities exchange or association or over-the-counter market, a business day or (B) if the shares of Common Stock are traded on any national or regional securities exchange or association or over-the-counter market, a business day on which such relevant exchange or quotation system is scheduled to be open for business and on which the shares of Common Stock (i) are not suspended from trading on any national or

 

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regional securities exchange or association or over-the-counter market for any period or periods aggregating one half hour or longer; and (ii) have traded at least once on the national or regional securities exchange or association or over-the-counter market that is the primary market for the trading of the shares of Common Stock.  The term “trading day” with respect to any security other than the Common Stock shall have a correlative meaning based on the primary exchange or quotation system on which such security is listed or traded.

 

“U.S. GAAP” means United States generally accepted accounting principles.

 

“Warrantholder” has the meaning set forth in Section 2.

 

“Warrant” means this Warrant.

 

“Warrant Shares” means the number of Shares set forth in Item 6 of Schedule A hereto, as may be adjusted pursuant to the terms hereof from time to time.

 

2.                                       Number of Shares; Exercise Price. This certifies that, for value received, the person in whose name this Warrant is registered as set forth in Item 9 of Schedule A or such person’s permitted assigns (the “Warrantholder”) is entitled, upon the terms and subject to the conditions hereinafter set forth, to acquire from the Company, in whole or in part, after the receipt of all applicable Regulatory Approvals, if any, up to an aggregate of the number of fully paid and nonassessable shares of Common Stock set forth in Item 6 of Schedule A hereto, at a purchase price per share of Common Stock equal to the Exercise Price. The number of shares of Common Stock (the “Shares”) and the Exercise Price are subject to adjustment as provided herein, and all references to “Common Stock,” “Shares” and “Exercise Price” herein shall be deemed to include any such adjustment or series of adjustments.

 

3.                                       Exercise of Warrant; Term. Subject to Section 2, to the extent permitted by applicable laws and regulations, the right to purchase the Shares represented by this Warrant is exercisable, in whole or in part by the Warrantholder, at any time or from time to time after the execution and delivery of this Warrant by the Company on the date hereof, but in no event later than the Expiration Time, by (A) the surrender of this Warrant and Notice of Exercise annexed hereto, duly completed and executed on behalf of the Warrantholder, at the principal executive office of the Company located at the address set forth in Item 7 of Schedule A hereto (or such other office or agency of the Company in the United States as it may designate by notice in writing to the Warrantholder at the address of the Warrantholder appearing on the books of the Company), and (B) payment of the Exercise Price for the Shares thereby purchased by having the Company withhold, from the shares of Common Stock that would otherwise be delivered to the Warrantholder upon such exercise, shares of Common Stock issuable upon exercise of the Warrant equal in value to the aggregate Exercise Price as to which this Warrant is so exercised based on the Market Price of the Common Stock on the trading day on which this Warrant is exercised and the Notice of Exercise is delivered to the Company pursuant to this Section 3.

 

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If the Warrantholder does not exercise this Warrant in its entirety, the Warrantholder will be entitled to receive from the Company within a reasonable time, and in any event not exceeding three business days, a new warrant in substantially identical form for the purchase of that number of Shares equal to the difference between the number of Shares subject to this Warrant and the number of Shares as to which this Warrant is so exercised.  Notwithstanding anything in this Warrant to the contrary, the Warrantholder hereby acknowledges and agrees that its exercise of this Warrant for Shares is subject to the condition that the Warrantholder will have first received any applicable Regulatory Approvals.

 

4.                                       Issuance of Shares; Authorization; Listing. Certificates for Shares issued upon exercise of this Warrant will be issued in such name or names as the Warrantholder may designate (or, if requested by the Warrantholder and agreed by the Company, Shares will be issued via book-entry transfer crediting the specified account of such named Person or Persons) and will be delivered to such named Person or Persons within a reasonable time, not to exceed three business days after the date on which this Warrant has been duly exercised in accordance with the terms of this Warrant. The Company hereby represents and warrants that any Shares issued upon the exercise of this Warrant in accordance with the provisions of Section 3 will be duly and validly authorized and issued, fully paid and nonassessable and free from all taxes, liens and charges (other than liens or charges created by the Warrantholder, income and franchise taxes incurred in connection with the exercise of the Warrant or taxes in respect of any transfer occurring contemporaneously therewith). The Company agrees that the Shares so issued will be deemed to have been issued to the Warrantholder as of the close of business on the date on which this Warrant and payment of the Exercise Price are delivered to the Company in accordance with the terms of this Warrant, notwithstanding that the stock transfer books of the Company may then be closed or certificates representing such Shares may not be actually delivered on such date. The Company will at all times until the Expiration Time (or, if such date shall not be a business day, then on the next succeeding business day) reserve and keep available, out of its authorized but unissued Common Stock, solely for the purpose of providing for the exercise of this Warrant, the aggregate number of shares of Common Stock then issuable upon exercise of this Warrant at any time. The Company will (A) procure, at its sole expense, the listing of the Shares issuable upon exercise of this Warrant at any time, subject to issuance or notice of issuance, on all principal stock exchanges on which the Common Stock is then listed or traded and (B) maintain such listings of such Shares at all times after issuance. The Company will use reasonable best efforts to ensure that the Shares may be issued without violation of any applicable law or regulation or of any requirement of any securities exchange on which the Shares are listed or traded.

 

5.                                       No Fractional Shares or Scrip. No fractional Shares or scrip representing fractional Shares shall be issued upon any exercise of this Warrant. In lieu of any fractional Share to which the Warrantholder would otherwise be entitled, the Warrantholder shall be entitled to receive a cash payment equal to the Market Price of the Common Stock on the last trading day preceding the date of exercise less the pro-rated Exercise Price for such fractional share.

 

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6.                                       No Rights as Stockholders; Transfer Books. This Warrant does not entitle the Warrantholder to any voting rights or other rights as a stockholder of the Company prior to the date of exercise hereof. The Company will at no time close its transfer books against transfer of this Warrant in any manner which interferes with the timely exercise of this Warrant.

 

7.                                       Charges, Taxes and Expenses. Issuance of Shares to the Warrantholder upon the exercise of this Warrant shall be made without charge to the Warrantholder for any issue or transfer tax or other incidental expense in respect of the issuance of such Shares (other than liens or charges created by the Warrantholder, income and franchise taxes incurred in connection with the exercise of the Warrant or taxes in respect of any transfer occurring contemporaneously therewith), all of which taxes and expenses shall be paid by the Company.

 

8.                                       Transfer/Assignment.

 

(A)                              Subject to compliance with clause (B) of this Section 8, this Warrant and all rights hereunder are transferable, in whole or in part, upon the books of the Company by the registered holder hereof in person or by duly authorized attorney, and a new warrant shall be made and delivered by the Company, of the same tenor and date as this Warrant but registered in the name of one or more transferees, upon surrender of this Warrant, duly endorsed, to the office or agency of the Company described in Section 3. All expenses (other than stock transfer taxes) and other charges payable in connection with the preparation, execution and delivery of the new warrants pursuant to this Section 8 shall be paid by the Company.

 

(B)                                Subject to the further provisions of this clause (B), the Warrant and the Shares issuable upon exercise of the Warrant will bear a legend substantially to the effect:

 

“THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS.”

 

In the event that the Warrant or the Shares issuable upon exercise of the Warrant (i) become registered under the Securities Act or (ii) are eligible to be transferred without restriction in accordance with Rule 144 under the Securities Act or another exemption from registration under the Securities Act (other than Rule 144A under the Securities Act), the Company shall issue new certificates or other instruments representing the Warrant or such Shares, which shall not contain the legend set forth above; provided that the Warrantholder surrenders to the Company the previously issued certificates or other instruments.

 

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Subject to compliance with applicable securities laws, the Warrantholder may transfer, sell, assign or otherwise dispose of (“Transfer”) all or a portion of the Warrant or the Shares issuable upon exercise of the Warrant at any time, and the Company shall take all steps as may be reasonably requested by the Warrantholder to facilitate such Transfer.  If such Transfer is (i) registered under the Securities Act or (ii) made in accordance with Rule 144 under the Securities Act or another exemption from registration under the Securities Act (other than Rule 144A under the Securities Act) such that the securities will thereafter no longer be “restricted securities” (as defined in Rule 144 under the Securities Act), any new certificates or other instruments representing the Warrant or such Shares issued by the Company in connection with such Transfer shall not contain the legend set forth above.

 

9.                                       Exchange and Registry of Warrant. This Warrant is exchangeable, upon the surrender hereof by the Warrantholder to the Company, for a new warrant or warrants of like tenor and representing the right to purchase the same aggregate number of Shares. The Company shall maintain a registry showing the name and address of the Warrantholder as the registered holder of this Warrant. This Warrant may be surrendered for exchange or exercise in accordance with its terms, at the office of the Company, and the Company shall be entitled to rely in all respects, prior to written notice to the contrary, upon such registry.

 

10.                                 Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant, and in the case of any such loss, theft or destruction, upon receipt of a bond, indemnity or security reasonably satisfactory to the Company, or, in the case of any such mutilation, upon surrender and cancellation of this Warrant, the Company shall make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the right to purchase the same aggregate number of Shares as provided for in such lost, stolen, destroyed or mutilated Warrant.

 

11.                                 Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a business day, then such action may be taken or such right may be exercised on the next succeeding day that is a business day.

 

12.                                 Rule 144 Information. The Company covenants that it will use its reasonable best efforts to timely file all reports and other documents required to be filed by it under the Securities Act and the Exchange Act and the rules and regulations promulgated by the SEC thereunder (or, if the Company is not required to file such reports, it will, upon the request of any Warrantholder, make publicly available such information as necessary to permit sales pursuant to Rule 144 under the Securities Act), and it will use reasonable best efforts to take such further action as any Warrantholder may reasonably request, in each case to the extent required from time to time to enable such holder to, if permitted by the terms of this Warrant, sell this Warrant without registration under the Securities Act within the limitation of the exemptions provided by (A) Rule 144 under the Securities Act, as such rule may be amended from time to time,

 

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or (B) any successor rule or regulation hereafter adopted by the SEC. Upon the written request of any Warrantholder, the Company will deliver to such Warrantholder a written statement that it has complied with such requirements.

 

13.                                 Adjustments and Other Rights. The Exercise Price and the number of Shares issuable upon exercise of this Warrant shall be subject to adjustment from time to time as follows; provided, that if more than one subsection of this Section 13 is applicable to a single event, the subsection shall be applied that produces the largest adjustment and no single event shall cause an adjustment under more than one subsection of this Section 13 so as to result in duplication:

 

(A)                              Stock Splits, Subdivisions, Reclassifications or Combinations. If the Company shall (i) declare and pay a dividend or make a distribution on its Common Stock in shares of Common Stock, (ii) subdivide or reclassify the outstanding shares of Common Stock into a greater number of shares, or (iii) combine or reclassify the outstanding shares of Common Stock into a smaller number of shares, the number of Shares issuable upon exercise of this Warrant at the time of the record date for such dividend or distribution or the effective date of such subdivision, combination or reclassification shall be proportionately adjusted so that the Warrantholder after such date shall be entitled to purchase the number of shares of Common Stock which such holder would have owned or been entitled to receive in respect of the shares of Common Stock subject to this Warrant after such date had this Warrant been exercised immediately prior to such date. In such event, the Exercise Price in effect at the time of the record date for such dividend or distribution or the effective date of such subdivision, combination or reclassification shall be adjusted to the number obtained by dividing (x) the product of (1) the number of Shares issuable upon the exercise of this Warrant before such adjustment and (2) the Exercise Price in effect immediately prior to the record or effective date, as the case may be, for the dividend, distribution, subdivision, combination or reclassification giving rise to this adjustment by (y) the new number of Shares issuable upon exercise of the Warrant determined pursuant to the immediately preceding sentence.

 

(B)                                [Reserved]

 

(C)                                Other Distributions. In case the Company shall fix a record date for the making of a distribution to all holders of shares of its Common Stock of securities, evidences of indebtedness, assets, cash, rights or warrants (excluding Ordinary Cash Dividends, dividends of its Common Stock and other dividends or distributions referred to in Section 13(A)), in each such case, the Exercise Price in effect prior to such record date shall be reduced immediately thereafter to the price determined by multiplying the Exercise Price in effect immediately prior to the reduction by the quotient of (x) the Market Price of the Common Stock on the last trading day preceding the first date on which the Common Stock trades regular way on the principal national securities exchange on which the Common Stock is listed or admitted to trading without the right to receive such distribution, minus the amount of cash and/or the Fair Market Value of the securities, evidences of indebtedness, assets, rights or warrants to be so distributed in respect of one share of Common Stock (such amount and/or Fair Market Value, the “Per Share Fair Market Value”) divided by (y) such Market Price on such date specified in

 

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clause (x); such adjustment shall be made successively whenever such a record date is fixed. In such event, the number of Shares issuable upon the exercise of this Warrant shall be increased to the number obtained by dividing (x) the product of (1) the number of Shares issuable upon the exercise of this Warrant before such adjustment, and (2) the Exercise Price in effect immediately prior to the distribution giving rise to this adjustment by (y) the new Exercise Price determined in accordance with the immediately preceding sentence. In the case of adjustment for a cash dividend that is, or is coincident with, a regular quarterly cash dividend, the Per Share Fair Market Value would be reduced by the per share amount of the portion of the cash dividend that would constitute an Ordinary Cash Dividend. In the event that such distribution is not so made, the Exercise Price and the number of Shares issuable upon exercise of this Warrant then in effect shall be readjusted, effective as of the date when the Board of Directors determines not to distribute such shares, evidences of indebtedness, assets, rights, cash or warrants, as the case may be, to the Exercise Price that would then be in effect and the number of Shares that would then be issuable upon exercise of this Warrant if such record date had not been fixed.

 

(D)                               Certain Repurchases of Common Stock. In case the Company effects a Pro Rata Repurchase of Common Stock, then the Exercise Price shall be reduced to the price determined by multiplying the Exercise Price in effect immediately prior to the Effective Date of such Pro Rata Repurchase by a fraction of which the numerator shall be (i) the product of (x) the number of shares of Common Stock outstanding immediately before such Pro Rata Repurchase and (y) the Market Price of a share of Common Stock on the trading day immediately preceding the first public announcement by the Company or any of its Affiliates of the intent to effect such Pro Rata Repurchase, minus (ii) the aggregate purchase price of the Pro Rata Repurchase, and of which the denominator shall be the product of (i) the number of shares of Common Stock outstanding immediately prior to such Pro Rata Repurchase minus the number of shares of Common Stock so repurchased and (ii) the Market Price per share of Common Stock on the trading day immediately preceding the first public announcement by the Company or any of its Affiliates of the intent to effect such Pro Rata Repurchase. In such event, the number of shares of Common Stock issuable upon the exercise of this Warrant shall be increased to the number obtained by dividing (x) the product of (1) the number of Shares issuable upon the exercise of this Warrant before such adjustment, and (2) the Exercise Price in effect immediately prior to the Pro Rata Repurchase giving rise to this adjustment by (y) the new Exercise Price determined in accordance with the immediately preceding sentence. For the avoidance of doubt, no increase to the Exercise Price or decrease in the number of Shares issuable upon exercise of this Warrant shall be made pursuant to this Section 13(D).

 

(E)                                 Business Combinations. In case of any Business Combination or reclassification of Common Stock (other than a reclassification of Common Stock referred to in Section 13(A)), the Warrantholder’s right to receive Shares upon exercise of this Warrant shall be converted into the right to exercise this Warrant to acquire the number of shares of stock or other securities or property (including cash) which the Common Stock issuable (at the time of such Business Combination or reclassification) upon exercise of this Warrant immediately prior to such Business Combination or

 

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reclassification would have been entitled to receive upon consummation of such Business Combination or reclassification; and in any such case, if necessary, the provisions set forth herein with respect to the rights and interests thereafter of the Warrantholder shall be appropriately adjusted so as to be applicable, as nearly as may reasonably be, to the Warrantholder’s right to exercise this Warrant in exchange for any shares of stock or other securities or property pursuant to this paragraph. In determining the kind and amount of stock, securities or the property receivable upon exercise of this Warrant following the consummation of such Business Combination, if the holders of Common Stock have the right to elect the kind or amount of consideration receivable upon consummation of such Business Combination, then the consideration that the Warrantholder shall be entitled to receive upon exercise shall be deemed to be the types and amounts of consideration received by the majority of all holders of the shares of common stock that affirmatively make an election (or of all such holders if none make an election).

 

(F)                                 Rounding of Calculations; Minimum Adjustments. All calculations under this Section 13 shall be made to the nearest one-tenth (1/10th) of a cent or to the nearest one-hundredth (1/100th) of a share, as the case may be. Any provision of this Section 13 to the contrary notwithstanding, no adjustment in the Exercise Price or the number of Shares into which this Warrant is exercisable shall be made if the amount of such adjustment would be less than $0.01 or one-tenth (1/10th) of a share of Common Stock, but any such amount shall be carried forward and an adjustment with respect thereto shall be made at the time of and together with any subsequent adjustment which, together with such amount and any other amount or amounts so carried forward, shall aggregate $0.01 or 1/10th of a share of Common Stock, or more.

 

(G)                                Timing of Issuance of Additional Common Stock Upon Certain Adjustments. In any case in which the provisions of this Section 13 shall require that an adjustment shall become effective immediately after a record date for an event, the Company may defer until the occurrence of such event (i) issuing to the Warrantholder of this Warrant exercised after such record date and before the occurrence of such event the additional shares of Common Stock issuable upon such exercise by reason of the adjustment required by such event over and above the shares of Common Stock issuable upon such exercise before giving effect to such adjustment and (ii) paying to such Warrantholder any amount of cash in lieu of a fractional share of Common Stock; provided, however, that the Company upon request shall deliver to such Warrantholder a due bill or other appropriate instrument evidencing such Warrantholder’s right to receive such additional shares, and such cash, upon the occurrence of the event requiring such adjustment.

 

(H)                               [Reserved]

 

(I)                                    Other Events. The Exercise Price or the number of Shares into which this Warrant is exercisable shall not be adjusted in the event of a change in the par value of the Common Stock or a change in the jurisdiction of incorporation of the Company.

 

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(J)                                   Statement Regarding Adjustments. Whenever the Exercise Price or the number of Shares into which this Warrant is exercisable shall be adjusted as provided in Section 13, the Company shall forthwith file at the principal office of the Company a statement showing in reasonable detail the facts requiring such adjustment and the Exercise Price that shall be in effect and the number of Shares into which this Warrant shall be exercisable after such adjustment, and the Company shall also cause a copy of such statement to be sent by mail, first class postage prepaid, to each Warrantholder at the address appearing in the Company’s records.

 

(K)                               Notice of Adjustment Event. In the event that the Company shall propose to take any action of the type described in this Section 13 (but only if the action of the type described in this Section 13 would result in an adjustment in the Exercise Price or the number of Shares into which this Warrant is exercisable or a change in the type of securities or property to be delivered upon exercise of this Warrant), the Company shall give notice to the Warrantholder, in the manner set forth in Section 13(J), which notice shall specify the record date, if any, with respect to any such action and the approximate date on which such action is to take place. Such notice shall also set forth the facts with respect thereto as shall be reasonably necessary to indicate the effect on the Exercise Price and the number, kind or class of shares or other securities or property which shall be deliverable upon exercise of this Warrant. In the case of any action which would require the fixing of a record date, such notice shall be given at least 10 days prior to the date so fixed, and in case of all other action, such notice shall be given at least 15 days prior to the taking of such proposed action. Failure to give such notice, or any defect therein, shall not affect the legality or validity of any such action.

 

(L)                                 Proceedings Prior to Any Action Requiring Adjustment. As a condition precedent to the taking of any action which would require an adjustment pursuant to this Section 13, the Company shall take any action which may be necessary, including obtaining regulatory, New York Stock Exchange, NASDAQ Stock Market or other applicable national securities exchange or stockholder approvals or exemptions, in order that the Company may thereafter validly and legally issue as fully paid and nonassessable all shares of Common Stock that the Warrantholder is entitled to receive upon exercise of this Warrant pursuant to this Section 13.

 

(M)                        Adjustment Rules. Any adjustments pursuant to this Section 13 shall be made successively whenever an event referred to herein shall occur. If an adjustment in Exercise Price made hereunder would reduce the Exercise Price to an amount below par value of the Common Stock, then such adjustment in Exercise Price made hereunder shall reduce the Exercise Price to the par value of the Common Stock.

 

14.                                 [Reserved]

 

15.                                 No Impairment. The Company will not, by amendment of its Charter or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all the provisions of this

 

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Warrant and in taking of all such action as may be necessary or appropriate in order to protect the rights of the Warrantholder.

 

16.                                 Governing Law. This Warrant will be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State. To the extent permitted by applicable law, each of the Company and the Warrantholder hereby unconditionally waives trial by jury in any civil legal action or proceeding relating to the Warrant or the transactions contemplated hereby or thereby.

 

17.                                 Binding Effect. This Warrant shall be binding upon any successors or assigns of the Company.

 

18.                                 Amendments. This Warrant may be amended and the observance of any term of this Warrant may be waived only with the written consent of the Company and the Warrantholder.

 

19 .                              Prohibited Actions. The Company agrees that it will not take any action which would entitle the Warrantholder to an adjustment of the Exercise Price if the total number of shares of Common Stock issuable after such action upon exercise of this Warrant, together with all shares of Common Stock then outstanding and all shares of Common Stock then issuable upon the exercise of all outstanding options, warrants, conversion and other rights, would exceed the total number of shares of Common Stock then authorized by its Charter.

 

20.                                 Notices. Any notice, request, instruction or other document to be given hereunder by any party to the other will be in writing and will be deemed to have been duly given (a) on the date of delivery if delivered personally, or by facsimile, upon confirmation of receipt, or (b) on the second business day following the date of dispatch if delivered by a recognized next day courier service. All notices hereunder shall be delivered as set forth in Item 8 of Schedule A hereto, or pursuant to such other instructions as may be designated in writing by the party to receive such notice.

 

21.                                 Entire Agreement. This Warrant, the forms attached hereto and Schedule A hereto (the terms of which are incorporated by reference herein) contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior and contemporaneous arrangements or undertakings with respect thereto.

 

[Remainder of page intentionally left blank]

 

12

 

	
[Form of Notice of Exercise]
    
	
 
    
	
 
    	
Date:
    	
 
    	
 
    

 

TO: CoBiz Financial Inc.

 

RE: Election to Purchase Common Stock

 

The undersigned, pursuant to the provisions set forth in the attached Warrant, hereby agrees to subscribe for and purchase the number of shares of the Common Stock set forth below covered by such Warrant. The undersigned, in accordance with Section 3 of the Warrant, hereby agrees to pay the aggregate Exercise Price for such shares of Common Stock via the cashless exercise provision of Section 3 of the Warrant. A new warrant evidencing the remaining shares of Common Stock covered by such Warrant, but not yet subscribed for and purchased, if any, should be issued in the name set forth below.

 

	
Number   of Shares of Common Stock
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Aggregate   Exercise Price:
    	
 
    	
 
    
				

 

	
 
    	
Holder:
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
						

 

13

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by a duly authorized officer.

 

Dated: November 23, 2011

 

	
 
    	
COBIZ FINANCIAL INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Attest:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

[Signature Page to Warrant]

 

14

 

 

SCHEDULE A

 

Item 1

Name: CoBiz Financial Inc.

Corporate or other organizational form: Corporation

Jurisdiction of organization: Colorado

 

Item 2

Exercise Price: $10.79

 

Item 3

Expiration Date: December 19, 2018

 

Item 4

Quarterly Dividend Threshold: $0.07

 

Item 5

[reserved]

 

Item 6

Number of shares of Common Stock underlying the Warrant (the “Warrant Shares”): 895,968

 

Item 7

Company’s address:

 

CoBiz Financial Inc.
 821 17th Street
 Denver Colorado 80202

 

Item 8

Notice information:

 

	
CoBiz   Financial Inc.
    	
CSS   LLC
    
	
821   17th Street
    	
175   West Jackson Blvd
    
	
Denver,   Colorado 80202
    	
Suite   440
    
	
Attention:   Steven Bangert
    	
Chicago,Il   60604
    
	
Facsimile:   303-244-9700
    	
Attention:   Mike Moran
    
	
 
    	
moran@csstrading.com
    
	
 
    	
Tel:   312 542-8510
    

 

Item 9

Name of Registered Warrantholder: CSS LLC

 

15Exhibit 10.29

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (“Agreement”) is made as of June 23, 2009 (the “Effective Date”), by and between CoBiz Bank d/b/a Colorado Business Bank (the “Company”) and Scott Page (“Employee”).  Notwithstanding the date set forth above, the effective date (the “Effective Date”) of this Agreement shall be the date the Employee begins employment with the Company.

 

1.             Employment.  The Company agrees to employ Employee, and Employee agrees to work for the Company, in the capacity or capacities specified on Exhibit A or in such other capacities with the Company and its subsidiaries as may be determined from time to time by the Company, on the terms and subject to the conditions established in this Agreement.  Employee will report to the Reporting Person designated in Exhibit A, subject to change by the Company from time to time.  This Agreement and Employee’s employment by the Company shall continue for the term set forth in Section 5(a) below or until earlier termination as provided in Section 5(b) below.  Terms capitalized and not otherwise defined herein are used as defined in Exhibit B.

 

2.             Responsibilities of Employment.  Employee shall devote his full business time and effort to the performance of his responsibilities under this Agreement and shall not provide services to, or own any equity or other interest in, any other entity, other than passive investments that do not interfere with the performance of Employee’s responsibilities hereunder.  Employee shall perform his responsibilities diligently, faithfully and to the best of his abilities.  Employee shall comply with and carry out the policies, programs and directions of the Company, including, without limitation, the Company’s Code of Ethics and Insider Trading Policies as in effect from time to time.

 

3.             Compensation.  The Company will compensate Employee for his services as follows:

 

(a)           Base Compensation.  The Company will pay Employee not less than the monthly base compensation specified on Exhibit A, payable in accordance with the Company’s normal payroll schedule.  Employee’s base compensation will be reviewed annually and may be increased or decreased from time to time, so long as a decrease does not amount to a decrease constituting Good Reason as defined in Exhibit B, in the sole discretion of the Company’s Board of Directors or such officers as the Board of Directors designate as having such discretion.

 

(b)           Plans.  Employee will be eligible to participate in all medical, dental, vision and other employee welfare plans maintained by the Company from time to time and available to similarly situated employees of the Company, in accordance with the terms of such plans.

 

(c)           Vacation.  Employee will be entitled to paid vacation each year as specified on Exhibit A, subject to the Company’s general vacation policy as in effect from time to time.

 

(d)           Stock.  CoBiz Financial Inc., a Colorado corporation and the owner of all outstanding capital stock of the Company (“CoBiz”), has an incentive equity plan for key

 

 

employees of CoBiz and its subsidiaries, including the Company.  Within a reasonable time following the Effective Date, CoBiz will: (i) grant non-qualified options to Employee to purchase a total of 15,000 shares of CoBiz common stock vesting ratably over a three-year period, which options will expire seven years after their issuance and will have an exercise price that is equal to the fair market value of the CoBiz stock on the date such options are granted, subject to the terms and conditions of the CoBiz equity incentive plan pursuant to which the options are granted; and (ii) make a grant of 10,000 shares of CoBiz restricted common stock vesting ratably over a five-year period, subject to the terms and conditions of the CoBiz equity incentive plan pursuant to which the restricted stock is granted, as such plan may be amended from time to time.

 

(e)           Discretionary Bonus Plan.  Employee will be eligible to participate in such discretionary bonus plans as the Company may establish from time to time for similarly situated employees of the Company, in accordance with the terms of any such plans and any amendments thereto.  Employee shall be eligible to receive a performance bonus of up to fifty percent (50%) of his annual base compensation, provided that (i) the Company, in its sole discretion, awards such bonuses in a given year and (ii) Employee meets certain performance criteria as established by the Company upon consultation with Employee; provided, however, that Employee will receive a bonus payment in the first year of the Initial Term of at least twenty percent (20%), but no more than fifty percent (50%), of his annual base compensation (the “Mandatory Bonus”), of which $25,000 will be paid to Employee on the Effective Date or within a reasonable time thereafter (but in no event later than December 31, 2009), and the remainder of such Mandatory Bonus will be calculated and paid to Employee in January 2010.  For the avoidance of doubt, Employee will receive the Mandatory Bonus for his first year of employment with the Company in an amount totaling at least $50,000, but may receive an additional amount in accordance with the Company’s discretionary bonus plan and subject to the conditions set forth in subsections (i) and (ii) of this Section 3(e).  Except as otherwise provided herein, this Section 3(e) shall not be construed to require the Company to provide any discretionary bonus plans or programs.  The Company may terminate or modify such plans or programs at any time, in its sole discretion.

 

(f)            Equity Incentive Plans.  Employee will be eligible to participate in such stock option and other equity incentive plans as the Company may establish from time to time for similarly situated employees of the Company, in accordance with the terms of any such plans and any amendments thereto.  This subparagraph shall not be construed to require the Company to provide any such plans or programs.  The Company may terminate or modify such plans or programs at any time, in its sole discretion.

 

(g)           Automobile Allowance.  Employee will be entitled to an automobile allowance of $600 per month, which will be paid to Employee not later than the last day of each month.

 

The payment of compensation and the provision of benefits will be subject to all applicable federal, state and local tax withholding and reporting requirements.

 

4.             Reimbursement of Expenses.  Employee will be entitled to reimbursement of ordinary and necessary out-of-pocket expenses reasonably incurred by him on behalf of the Company in the course of performing his duties hereunder under the Company’s expense

 

 

reimbursement policy, as may be amended from time to time, applicable to similarly situated employees, upon furnishing appropriate documentation in accordance with such policy as in effect at the time the expense is incurred.

 

5.             Term; Termination.

 

(a)           Term.  The initial term of this Agreement will begin on the Effective Date and will continue until the fifth (5th) anniversary of the Effective Date (the “Initial Term”) or, if sooner, until this Agreement is terminated pursuant to Section 5(b).  If this Agreement continues in effect until the fifth (5th) anniversary of the Effective Date, it will thereafter automatically renew for successive one-year terms (each, a “Renewal Term”) unless either party gives written notice of non-renewal to the other at least thirty (30) days prior to the end of the then-current term or this Agreement is otherwise terminated as provided herein.  Should Employee continue in his position or any other position after expiration of the Initial Term (if there is no Renewal Term) or after any Renewal Term (if there is no subsequent Renewal Term), he will thereafter become an employee “at will” subject to the policies and procedures of the Company as applicable to all employees until such time as the parties enter into a written agreement modifying Employee’s “at-will” employment.

 

(b)           Termination.  This Agreement, the Employee’s base compensation and any and all other rights of the Employee under this Agreement or as an employee of the Company will terminate (except as otherwise provided in this Agreement): (i) immediately upon the death of the Employee; (ii) upon the termination of employment due to the Disability of the Employee immediately upon notice from either party to the other; (iii) upon termination of the employment of Employee for Cause, immediately upon notice of such termination from the Company to the Employee after the end of any applicable cure period, or at such later time as such notice may specify; (iv) upon termination of the employment of Employee without Cause, immediately upon notice from the Company to the Employee, or at such later time as such notice may specify; (v) upon voluntary resignation by the Employee for Good Reason, immediately upon notice of such termination from the Employee to the Company after the end of any applicable cure period, or at such later time as such notice may specify; (vi) upon voluntary resignation by the Employee without Good Reason, immediately upon notice from the Employee to the Company, or at such later time as such notice may specify; or (vii) if either party gives notice of non-renewal under Section 5(a), then at the end of the then current Initial Term or Renewal Term.

 

6.             Effect of Termination.  Upon termination of this Agreement by the Company or by Employee, including termination upon the death or Disability of Employee, the rights and obligations of Employee and the Company shall be as provided in this Section 6.

 

(a)           Compensation through Termination Date .  Upon any termination of this Agreement pursuant to Section 5(b), the Company (i) will pay Employee his base compensation pursuant to Section 3(a) through the date of termination, (ii) will pay Employee for vacation accrued but not taken under Section 3(c) in accordance with its vacation policy, and (iii) will reimburse Employee pursuant to Section 4 for expenses incurred prior to the termination, provided that the request for such reimbursement is made by the Employee no later than 10 days after the termination of this Agreement.  Except as specifically provided in this Section 6, the

 

 

Company will have no obligation to pay any severance, salary, benefits or other compensation or damages at or after the date of termination.  All payments under this Section 6(a) shall be at the earliest possible time and no later than 15 days after the Employee’s termination date.

 

(b)           Severance Upon Termination Without Cause or for Good Reason.  If Employee’s employment is terminated by the Company without Cause pursuant to Section 5(b)(iv) or by Employee with Good Reason pursuant to Section 5(b)(v), then, in addition to the amounts payable under Section 6(a), the Company will pay Employee severance equal to his base compensation under Section 3(a) as in effect on the date of termination for the Severance Period specified in Exhibit A.  If Employee’s employment is terminated by the Company without Cause pursuant to Section 5(b)(iv) or by Employee with Good Reason pursuant to Section 5(b)(v) prior to the second anniversary of the Effective Date, then the vesting of Employee’s shares of CoBiz restricted stock, as granted under Section 1(d) above pursuant to the CoBiz equity incentive plan, will accelerate so that a total of forty percent (40%) of such shares of restricted stock granted to Employee are vested upon the effective date of Employee’s termination, but in no event shall such acceleration be increased under Section 6(d) in the event that such termination occurs within 365 days after a Change of Control.

 

(c)           Additional Severance for Bonus.  If severance is payable under Section 6(b) and if Employee received a bonus from the Company in respect of the last full fiscal year ending prior to the date of termination, the Company shall pay to Employee additional severance equal to the average of the bonuses paid to Employee in respect of each year in the three-year period ending with such last full fiscal year (or if Employee had not been employed for all of that three-year period, the average of the bonuses paid with respect to each full fiscal year in which Employee was employed), in each case, pro rated to the effective date of the termination.

 

(d)           Increased Severance Upon Termination Following Change of Control.  If severance is payable under Section 6(b), and if notice of such termination without Cause by the Company or termination by the Employee with Good Reason pursuant to Section 6(b) was given by the Company or Employee within 365 days after a Change of Control, (i) the severance payable under Section 6(c) shall be the full amount of the bonus or average bonus described therein and shall not be pro rated to the date of termination and (ii) except as otherwise provided in Section 6(b), the severance payable under Sections 6(b) and (c) shall be increased by multiplying the amount otherwise payable (as adjusted pursuant to clause (i)) by the Change of Control Multiple specified in Exhibit A.  For the avoidance of doubt, the increased severance payable to Employee pursuant to this Section 6(d) will be paid to the Employee over the time period specified in Section 6(e) below.  If any excise tax imposed under the Internal Revenue Code Section 4999 or any successor provision, as amended after the date hereof, is due and owing by Employee as a result of any amount paid or payable pursuant to this Section 6(d), Company shall indemnify and hold Employee harmless against all such excise taxes and any interest, penalties or costs with respect thereto.

 

(e)           Payment.  Severance payable under Sections 6(b) and (c) (as potentially adjusted under Section 6(d)) shall be payable in 12 equal monthly installments commencing on the last day of the first full calendar month following the date the Employee’s release under Section 6(h) becomes fully and finally effective after the effective date of termination.  All severance payments shall be subject to normal withholding.

 

 

(f)            Continuation of Benefits.  If severance is payable under Section 6(b), provided that the Employee timely elects COBRA continuation coverage under any one or more of the Company’s medical, dental and vision insurance plans for the Employee and/or the Employee’s covered dependents, the Company will pay or reimburse the Employee for that portion of the COBRA continuation coverage premiums for the Employee and his covered dependents that would result in the Employee’s portion of such COBRA continuation coverage premiums being equal to the premiums paid by similarly situated active employees of the Company for the same coverage, for the shorter of (i) the Severance Period or (ii) the maximum period of COBRA continuation coverage available to the Employee and his dependents.  The payment or reimbursement by the Company as provided in the immediately preceding sentence shall be made as necessary to cause the cost to Employee of such coverage to equal the cost that Employee would have incurred if continued direct participation under the plans had been permissible.  The Company’s obligation for payment or reimbursement under this Section 6(f) as to each such plan shall terminate if and when Employee becomes eligible to participate in a medical, dental or vision plan, as the case may be, of another employer, without regard to the relative level of benefits provided by the Company’s plan and the plan of the other employer.

 

(g)           Death or Disability.  If Employee’s employment is terminated as a result of Employee’s death pursuant to Section 5(b)(i) or Disability pursuant to Section 5(b)(ii), the Company shall pay severance to Employee or his estate as in the case of a termination by Employee for Good Reason pursuant to Section 6(b) (with no increase to such severance under Section 6(d) in the event that such termination occurred within 365 days after a Change of Control), which shall be paid in 12 equal monthly installments commencing on the last day of the first full calendar month following the Employee’s termination date; provided that, if Employee is insured under a long-term disability or life insurance policy provided or sponsored by the Company, excluding any policy held in the name of and payable to the Company such as a bank owned life insurance policy, (whether or not such premiums are paid by or taxable to the Employee in whole or in part), the total severance amount payable hereunder shall be offset by the full amount of the proceeds of such policy and any remaining severance amount after such offset shall be paid as provided in Section 6(e).

 

(h)           Severance Conditioned on Release.  Employee’s right to receive severance and premiums for COBRA continuation coverage in the Company’s medical, dental and vision insurance plans as provided in Sections 6 (b) through 6(g) will (i) be contingent upon Employee’s execution of a release of all claims against the Company and its Affiliates (other than the right to receive severance and premiums for COBRA continuation coverage under this Section 6) in form and substance and under procedures reasonably believed by the Company to be adequate to effectively waive all such claims under applicable laws and (ii) automatically terminate upon any breach by Employee of Section 7 or 8 of this Agreement.  The Company will provide the form of such release to Employee at the time of any termination as a result of which severance is payable.  If the release does not become fully and finally effective until legally prescribed periods have elapsed, notwithstanding any other provision of this Agreement, no severance shall be payable until all such periods have elapsed and the release has become fully and finally effective.

 

(i)            Deferral.  The Company may elect to defer any payment of severance that may become due to Employee if, at the time the payment becomes due, the Company or any

 

 

bank owned by the Company is not in compliance with any regulatory-mandated minimum capital requirements or if making the payments would cause the Company’s or any such bank’s capital to fall below such minimum capital requirements, provided, however, that any such deferral complies in all respects with Internal Revenue Code Section 409A (“Section 409A”) to the extent applicable.  In this event, the Company will resume making the payments as soon as it can do so without violating such minimum capital requirements or as soon as payment is permitted under Section 409A if applicable.

 

(j)            Compliance with Section 409A.  It is intended that the severance payments and benefits provided under this Section 6 be exempt from the provisions of Section 409A to the fullest extent possible.  To the extent that any such payment or benefit is subject to Section 409A then, notwithstanding anything in this Agreement to the contrary, any amount that becomes payable under this Agreement to the Employee upon the Employee’s termination of employment shall not be paid unless such termination of employment constitutes a separation from service under Section 409A and payment of any severance amount under Section 6 shall not commence until sixty (60) days after such separation from service.  A “separation from service” means a separation from service with the Company and all other persons or entities with whom the Company would be considered a single employer under Section 409A.  If the Company determines in good faith that the Employee is a “specified employee” under Section 409A then, to the extent required under Section 409A, any amount that otherwise would be payable to the Employee during the six-month period following the Employee’s separation from service shall be suspended until the lapse of such six-month period (or, if earlier, the date of death of the Employee).  The amount that otherwise would be payable to the Employee during such period of suspension shall be paid in a single payment on the day following the end of such six-month period (or, if such day is not a business day, on the next succeeding business day) or within thirty (30) days following the death of the Employee during such six-month period, provided that the death of the Employee during such six-month period shall not cause the acceleration of any amount that otherwise would be payable on any date during such six-month period following the date of the Employee’s death.  Any amounts not subject to the suspension described in the preceding sentence shall be paid as otherwise provided in this Agreement.

 

7.             Protective Covenants.

 

(a)           Non-Solicitation / Non-Disparagement.  Employee agrees that, without the Company’s prior written consent, during the period commencing on the Effective Date and ending on the first anniversary of the effective date of termination of Employee’s employment with the Company, neither Employee nor any Affiliate of Employee will:

 

(i)            Solicit or induce, directly or indirectly, any Person who is or was during the six-month period preceding such solicitation or inducement an employee or agent of the Company or of any Affiliate of the Company to terminate such Person’s relationship with the Company or such Affiliate or to enter into an employment or agency relationship with any Person other than the Company or an Affiliate of the Company;

 

(ii)           Solicit or induce, directly or indirectly, any customer of the Company or of any Affiliate of the Company to terminate or reduce the extent of such

 

 

customer’s business with the Company or such Affiliate or to become a customer of any other Person in respect of products or services offered by the Company or any of its Affiliates; or

 

(iii)          Make any statements or take any action that could reasonably be expected to damage the reputation, standing or business of the Company or of any Affiliate of the Company.

 

(b)           Judicial Modification. Employee acknowledges and agrees that the restrictions set forth in this Section 7 are reasonable and necessary in duration and scope to protect the legitimate interests and expectations of the Company.  If, contrary to the agreement and intent of the parties, a court of competent jurisdiction should find that any such restriction is unenforceable as written, the parties intend and agree that such restriction will be deemed modified to the minimum extent necessary to render it enforceable and will be enforced as so modified.

 

8.             Confidentiality.  Except as may be required in connection with his employment under this Agreement, Employee will not, directly or indirectly, use or disclose to any other Person any information of a confidential or proprietary nature belonging or relating to the Company or any of its Affiliates, or any information the disclosure of which could reasonably be expected to have an adverse effect on the Company, its businesses, property or financial condition, including but not limited to information concerning the Company’s methods of operation, techniques, know-how, plans, policies, customers, suppliers, representatives or other matters of any kind or description relating to the products, services, or businesses of the Company or any of its Affiliates.  All records, files, documents, equipment and the like relating to the Company’s businesses which Employee may prepare, use, possess or observe shall be and remain the sole property of the Company, and upon termination of his employment hereunder for any reason, Employee shall return to the Company any items of that nature and any copies thereof which he may have in his possession or control.

 

9.             Indemnity.

 

(a)           Indemnification.  Company will indemnify Employee (and, upon his death, his heirs, executors and administrators) to the fullest extent permitted by law against all losses, liabilities, costs and expenses, including reasonable attorneys’ fees, court and investigative costs, judgments, fines and amounts paid in settlement (collectively, “Losses”) reasonably incurred by him in connection with or arising out of any pending, threatened or completed action, suit or proceeding brought by a third party in which he may become involved by reason of his having been an officer or director of the Company or any Affiliate of the Company, unless the acts or omissions giving rise to the pending, threatened or completed action arise or result, in whole or in part, from the actual or alleged gross negligence or willful misconduct of the Employee.  The indemnification rights provided for herein are not exclusive and will supplement any rights to indemnification that Employee may have under any applicable bylaw or charter provision of Company or any Affiliate of the Company or any applicable statute.

 

(b)           Advancement of Expenses.  In the event that Employee becomes a party, or is threatened to be made a party, to any pending, threatened or completed action, suit or

 

 

proceeding for which the Company is required to indemnify him, the Company will, to the fullest extent permitted by law, advance all Expenses incurred by Employee in connection with the investigation, defense, settlement or appeal of any threatened, pending or completed action, suit or proceeding, subject to receipt by the Company of a written undertaking from Employee to reimburse the Company for all amounts actually paid by the Company to or on behalf of Employee in the event it shall be ultimately determined that the Company is not obligated to indemnify Employee for such amounts, and to assign to the Company all rights of Employee to indemnification under any policy of directors and officers liability insurance to the extent of the amounts actually paid by Company to or on behalf of Employee.

 

(c)           Litigation.  Unless precluded by an actual or potential conflict of interest, Company will have the right to recommend counsel to Employee to represent him in connection with any claim covered by this Section 9.  Further, Employee’s choice of counsel, his decision to contest or settle any such claim, and the terms and amount of the settlement of any such claim will be subject to Company’s prior reasonable approval in writing.

 

10.           Damages for Breach / Injunctive Relief. Employee acknowledges that should he breach Section 7 or 8 of this Agreement, the Company will be entitled to pursue all available remedies, including injunctive relief and money damages.  The parties acknowledge and agree that any breach of Employee’s covenants set forth in Section 7 or 8 will result in irreparable damage to the Company for which there may be no adequate remedy at law.  Therefore, the parties agree that the Company may in its sole discretion seek an order enjoining any breach of such covenants, without prejudice to any other right or remedy to which the Company may be entitled at law or in equity.  The parties further agree that, in any action brought by the Company as a result of Employee’s breach of any of the covenants set forth in Section 7 or 8 above, the Company shall be entitled to all reasonable costs and expenses, including reasonable attorneys’ fees incurred in connection therewith.

 

11.           Arbitration.  Any dispute arising out of this Agreement or connected with Employee’s employment will be submitted to binding arbitration in Denver, Colorado.  The arbitration will be conducted by one arbitrator selected by the parties from the Judicial Arbiter Group or, if the Judicial Arbiter Group is not available, by the American Arbitration Association or another arbitral body selected by the parties. The American Arbitration Association Employment Arbitration Rules shall govern the arbitration.  The decision of the arbitrator may be entered as a judgment in any court of competent jurisdiction.  Notwithstanding this arbitration provision, the Company will be entitled to apply to any court of competent jurisdiction for injunctive relief under Section 10.  The prevailing party in any arbitration shall be entitled to his or its reasonable costs and expenses, including reasonable attorneys’ fees incurred in connection therewith.

 

12.           EESA Compliance.

 

(a)           CoBiz has entered into agreements with the U.S. Treasury Department (“UST”) under which CoBiz issued preferred shares (“Preferred Shares”) and other securities to the UST as part of the Troubled Assets Relief Program Capital Purchase Program (“CPP”) established under the Emergency Economic Stabilization Act of 2008 (“EESA”).  Employee may be deemed to be a highly compensated person subject to the executive compensation limitations

 

 

set forth in Section 111 of EESA, has determined that CoBiz’s participation in the CPP is of material benefit to Employee and agrees to abide by all existing and future terms of EESA, and any regulations thereunder, restricting payment of compensation to Employee.

 

(b)           EESA imposes certain restrictions on employment agreements (including this Agreement), severance, bonus and incentive compensation, stock options and awards, and other compensation and benefit plans and arrangements (“Plans”) maintained by CoBiz, Company and their affiliates and requires that such restrictions remain in place for so long as the UST holds any debt or equity securities issued by CoBiz.  The parties hereby agree that all Plans providing benefits to Employee shall be construed and interpreted at all times that the UST maintains any debt or equity investment in CoBiz in a manner consistent with EESA, and all such Plans shall be deemed to have been amended as determined by CoBiz and Company so as to comply with the restrictions imposed by EESA.  Employee recognizes that such changes may result in the reduction or elimination of benefits otherwise provided to Employee under this Agreement or any other Plan.  Notwithstanding any other terms of this Agreement or any other Plan providing benefits to Employee, to the extent that any provision of this Agreement or any other Plan is determined by CoBiz or Company, to be subject to and not in compliance with EESA, including the timing, amount or entitlement of Employee to any payment of severance, bonus or any other amounts, such provisions shall be interpreted and deemed to have been amended to comply with the terms of EESA.  Without limiting the foregoing, any “golden parachute payment” or other severance payments due in connection with termination of Employee’s employment with Company provided under this Agreement or any other Plan, as defined for purposes of EESA, including any benefits payable under Section 6, shall be prohibited if such termination occurs while UST holds any debt or equity securities issued by CoBiz and it is determined that such a payment to Employee would constitute a violation of EESA.  The parties hereto further agree that (i) Employee shall at no time be entitled to receive any compensation based upon incentives that encourage Employee to take unnecessary and excessive risks on behalf of Company or CoBiz; and (ii) Employee shall promptly repay Company, CoBiz or any other affiliated entity compensating Employee, within thirty (30) days of demand, the amount of any bonus or incentive compensation paid to Employee based upon statements of earnings, gains or other criteria that are later determined by the Company or CoBiz to be materially inaccurate.  If Employee fails to repay the Company within thirty (30) days of demand, the Company will be entitled to recover all of its reasonable costs and expenses, including reasonable attorneys’ fees, incurred in connection with its efforts to collect such payment from Employee.

 

13.           Governing Law; Interpretation.  This Agreement will be governed by and construed in accordance with the laws of the State of Colorado.  The titles of the Sections have been inserted for convenient reference only and will not affect the construction of this Agreement.

 

14.           Severability.  The invalidity or unenforceability of any provision of this Agreement will not affect the validity or unenforceability of any other provision.  If any provision is found to be invalid or unenforceable as written, it will be deemed modified to the minimum extent necessary to render it valid and enforceable.

 

 

15.           Benefit.  This Agreement may not be assigned by either party without the written consent of the other, and any assignment without such consent will be null and void; provided that the Company may assign this Agreement, without Employee’s consent, to any successor to all or substantially all of the Company’s business and assets or to any successor to all or substantially all of the business and assets of the Affiliate of the Company for which Employee primarily worked.  Subject to that limitation, this Agreement will be binding upon and inure to the benefit of the parties and their heirs, personal representatives, successors and assigns.

 

16.           Notices.  All notices given under this Agreement will be in writing.  Any notice may be transmitted by any means selected by the sender.  A notice that is mailed to a party at its address given below, registered or certified mail, return receipt requested, with all postage prepaid, will be deemed to have been given and received on the earlier of the date reflected on the return receipt or the third business day after it is posted.  A notice sent by facsimile transmission to a party at its facsimile number given below will be deemed to have been given and received upon confirmation of transmission by the sender’s facsimile machine.  A notice transmitted by recognized overnight courier service to a party at its address given below will be deemed given and received on the first business day after it is delivered to the courier.  A notice given by any other means will be deemed given and received only upon actual receipt.  The addresses and facsimile numbers of the parties for notice purposes are as follows:

 

If to the Company:

 

CoBiz Bank d/b/a Colorado Business Bank

821 Seventeenth Street

Denver, CO 80202

Attn: Chief Executive Officer

Facsimile No.: (303)       -

 

If to the Employee:

 

To the address or facsimile number set forth on Exhibit A.

 

Either party may change his or its address or facsimile number for notice purposes by written notice to the other party.

 

17.           Modification.  No failure by either party to insist upon the strict performance of this Agreement on one or more occasions will constitute a waiver of any right or remedy hereunder.  This Agreement may be amended, and any right or remedy hereunder may be waived, only in a writing signed by the party against whom the amendment or waiver is asserted.

 

18.           Waiver of Other Benefits.  Employee irrevocably waives any right he might otherwise have to receive any severance, damages or other post-termination payments or benefits from the Company, except for those provided in this Agreement.  This waiver expressly includes, without limitation, any amounts payable under any severance plan or policy adopted by the Company.

 

 

19.           Survival.  The provisions of Sections 6 (insofar as they require payments after termination) and 7 through 21 shall survive the termination of this Agreement.

 

20.           Entire Agreement.  This Agreement sets forth the entire agreement and understanding of the parties with respect to the subject matter hereof and supersedes any and all prior and contemporaneous negotiations, understandings and agreements with regard to the subject matter hereof, whether oral or written.  In entering into this Agreement, neither party has made or relied upon any representation or promise not set forth herein.

 

21.           Interpretation of Agreement.  The parties acknowledge and agree that the terms and conditions of this Agreement have been arrived at after thorough bargaining and negotiation, and that the Agreement shall not be construed more strictly against one party than another merely by virtue of the fact that it may have been prepared by one of the parties.

 

[Remainder of this page left blank intentionally.]

 

 

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

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
CoBiz Bank d/b/a Colorado Business Bank
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
EMPLOYEE:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Scott Page
    

 

 

EXHIBIT A

 

TERMS OF EMPLOYMENT

 

	
Name of Employee:
    	
Scott Page
    
	
 
    	
 
    
	
Capacity(ies):
    	
Colorado Market President
    
	
 
    	
 
    
	
Reporting Person:
    	
Jonathan C. Lorenz
    
	
 
    	
 
    
	
Minimum Base Compensation:
    	
$20,833.33 per month
    
	
 
    	
 
    
	
Vacation:
    	
4 weeks per year
    
	
 
    	
 
    
	
Severance Period:
    	
12 months following the effective date of   termination of employment.
    
	
 
    	
 
    
	
Change of Control Multiple:
    	
2
    
	
 
    	
 
    
	
Address and Facsimile Number of Employee:
    	
 
    
	
 
    	
 
    
	
 
    	
(          )             -
    

 

A-1

 

EXHIBIT B

 

Definitions

 

“Affiliate” means, with respect to a specified Person, (i) any other Person directly or indirectly controlling, controlled by or under common control with the specified Person, (ii) any trust in which the specified Person holds 10% or more of the beneficial interest, as beneficiary, settler or otherwise, (iii) any member of the immediate family of the specified Person, (iv) any director, executive officer, manager, member, partner or trustee of the specified Person, or (v) any other Person in which the specified person or any Affiliate of the specified Person owns a beneficial interest of 10% or more.

 

“Cause” for the termination by the Company of Employee’s employment means (i) a breach by Employee of Section 7 or 8 of the Agreement, (ii) a breach of any other provision of this Agreement by Employee which, if curable, has not been cured within 15 days after notice from the Company, (iii) theft or embezzlement from or other dishonesty involving the Company by Employee, (iv) the commission by Employee of a crime involving moral turpitude or constituting a felony, (v) gross negligence or willful misconduct with respect to Employee’s duties and responsibilities to the Company, (vi) the willful failure or refusal of Employee to perform his duties under this Agreement or to carry out the lawful instructions of the Reporting Person or Board of Directors, (vii) a material violation of the standards of conduct or code of ethics established by the Company or (viii) Employee engages in self-dealing or attempts to obtain any improper personal benefit or profit from the Company or any transaction in which the Company or any Affiliate of the Company has an interest.

 

“Change of Control” means a change of control, as defined in the following sentences, of the Company or CoBiz (as defined in Section 3(d) of the Agreement).  Change of Control of either the Company or CoBiz (each, for the purposes of the following events, the “Subject Entity”) shall be deemed to have occurred if: (i) any person (as such term is defined in Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the “1934 Act”)), other than a person who is a shareholder of the Subject Entity as of the date of this Agreement, acquires beneficial ownership (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of 50% or more of the combined voting power of the then outstanding voting securities of the Subject Entity; or (ii) the individuals who were members of the Subject Entity’s Board of Directors as of the date of this Agreement (the “Current Board Members”) cease for any reason to constitute a majority of the Board of Directors of the Subject Entity or its successor; provided, however, that if the election or the nomination for election of any new director of the Subject Entity or its successor is approved by a vote of a majority of the individuals who are Current Board Members, such new director shall, for the purposes of this paragraph, be considered a Current Board Member; or (iii) the Subject Entity’s shareholders approve (A) a merger or consolidation of the Subject Entity and the shareholders of the Subject Entity immediately before such merger or consolidation do not, immediately after such merger or consolidation, own, directly or indirectly, more than 50% of the combined voting power of the then outstanding voting securities of the entity resulting from such merger or consolidation in substantially the same proportion as their ownership of the combined voting power of the outstanding securities of the Subject Entity immediately before such merger or consolidation; or (B) a complete liquidation or dissolution or an agreement for the sale or other disposition of all or substantially

 

B-1

 

all of the assets of the Subject Entity.  Notwithstanding the foregoing, a Change of Control will not be deemed to have occurred: (x) solely because 50% or more of the combined voting power of the then outstanding voting securities of the Subject Entity are acquired by a trustee or other fiduciary holding securities under one or more employee benefit plans maintained for employees of the Subject Entity or its subsidiaries; (y) if Employee agrees in writing to waive a particular Change of Control for the purposes of this Agreement; or (z) if the events set forth in subsections (i) and (iii) above occur among or between Affiliates of the Company or CoBiz.

 

“Disability” has the meaning given to that term (or the most closely analogous term) in the Company’s long-term disability insurance policy as in effect at the relevant time.  If no such policy is in effect, “Disability” means a mental or physical condition that prevents Employee from performing the essential functions of his position hereunder, with or without reasonable accommodations by the Company, as determined by the Company in its discretion.

 

“Good Reason” for the termination by Employee of his employment means (i) Employee is removed from all of the capacities described in Exhibit A, other than for Cause, and is not offered another position with the Company or an Affiliate of the Company that is commensurate with Employee’s education, experience and abilities so as to result in a material diminution of Employee’s authority, duties or responsibilities; (ii) the Company decreases Employee’s base compensation, unless such decrease is an amount that is less than ten percent (10%) of the Employee’s base salary that occurs as part of a compensation reduction instituted by the Company in good faith and which reduces the base compensation of all similarly situated employees of the Company by a comparable percentage to the decrease in Employee’s base compensation, or arbitrarily and capriciously materially decreases Employee’s bonus; or (iii) the Company transfers Employee to a location outside the metropolitan area in which Employee’s employment was based on the date of this Agreement so as to result in a material geographic change; provided that no such action or event shall constitute Good Reason if Employee consents to the action or event, whether before, at or after the time that it is taken.  Notwithstanding anything to the contrary herein, no such action or event shall constitute Good Reason unless Employee gives written notice to the Company within 45 days after the action or event, which notice shall specify the action or event and indicate that Employee believes it constitutes Good Reason as defined herein, and the Company fails to cure the action or event within 30 days after such notice.  In addition, a termination by Employee of his employment shall not be a termination for Good Reason unless notice of the termination is given by Employee within 90  days after the end of the 30-day cure period set forth in the preceding sentence.

 

“Person” means any individual and any corporation, partnership, trust, unincorporated organization, association, limited liability company or other entity.

 

B-2

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