Document:

Unassociated Document

    EXHIBIT
      10.1

    

    

    

    $15,000,000

    

      COMMERCE
      HARRISBURG CAPITAL TRUST III

      PENNSYLVANIA
      COMMERCE BANCORP, INC.

    

    7.75%
      Capital Securities

    

    (Liquidation
      Amount $100,000 per Capital Security)

    

    PURCHASE
      AGREEMENT

    

    September
      29, 2006            

    

    COMMERCE
      BANK, N.A.

    Commerce
      Atrium

    1701
      Route 70 East

    Cherry
      Hill, NJ 08034-5400

    

    Ladies
      and Gentlemen:

    

    Commerce
      Harrisburg Capital Trust III (the “Trust”), a statutory trust organized under
      the Statutory Trust Act (the “Delaware Act”) of the State of Delaware (Chapter
      38, Title 12, of the Delaware Code. 12 Del. C. Section 3801 et seq), and
      Pennsylvania Commerce Bancorp, Inc., a Pennsylvania corporation (the “Company”),
      as depositor of the Trust and as guarantor, hereby confirms its agreement with
      you as follows:

    

    Section
      1  Introduction.
      

     

    The
      Company agrees, upon the terms and conditions set forth in this Purchase
      Agreement (this “Agreement”), to issue and sell to you (the “Purchaser”), an
      aggregate liquidation amount of $15,000,000 (the “Capital Securities”) of the
      Trust.

     

    The
      Capital Securities and the Common Securities (as defined herein) are to be
      issued pursuant to the terms of a Declaration of Trust dated as of September
      29,
      2006 (the “Trust Agreement”), relating to the Trust among the Company, as
      Sponsor, (and, together with the Trust, the “Offerors”), Wilmington Trust
      Company, as property trustee (the “Property Trustee”), Wilmington Trust Company,
      as Delaware trustee (the “Delaware Trustee”) and the Administrative Trustees
      named therein (collectively, with the Property Trustee, the Delaware Trustee
      and
      the Administrative Trustees, the “Issuer Trustees”). The Capital Securities will
      be guaranteed by the Company on a subordinated basis and subject to certain
      limitations with respect to distributions and payments upon liquidation,
      redemption or otherwise (the “Guarantee”) pursuant to the Guarantee Agreement
      relating to the Capital Securities dated as of September 29, 2006 (the
“Guarantee Agreement”), between the Company and Wilmington Trust Company, as
      Guarantee Trustee (the “Guarantee Trustee”). The 

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    assets
      of
      the Trust will consist of junior subordinated deferrable interest debentures,
      due September 29, 2036, (the “Junior Subordinated Debentures”) of the Company
      which will be issued under an indenture, as supplemented from time to time,
      dated as of September 29, 2006 (as so supplemented, the “Indenture”), between
      the Company and Wilmington Trust Company, as Trustee (the “Debenture Trustee”).
      Under certain circumstances, the Junior Subordinated Debentures will be
      distributable to the holders of undivided beneficial interests in the assets
      of
      the Trust. The entire proceeds from the sale of the Capital Securities will
      be
      combined with the entire proceeds from the sale by the Trust to the Company
      of
      the Trust’s common securities (the “Common Securities”), and will be used by the
      Trust to purchase an equivalent amount of the Junior Subordinated
      Debentures.

     

    Section
      2  Representations
      and Warranties. 

     

    Each
      of
      the Offerors represents and warrants to, and agrees with, the Purchaser as
      follows:

     

    (a)  The
      Company is duly incorporated and validly existing as a corporation in good
      standing under the laws of the Commonwealth of Pennsylvania with full power
      and
      authority (corporate and other) to own, lease, and operate its properties and
      conduct its business as presently conducted; the Company is duly registered
      under the Bank Holding Company Act of 1956, as amended (the “BHCA”); the Company
      has no material subsidiaries except those described in its Annual Report on
      Form
      10-K for the fiscal year ended December 31, 2005 (the “Annual Report”) (each a
“Subsidiary”); the Company owns, directly or indirectly, beneficially and of
      record, all of the outstanding capital stock of each Subsidiary free and clear
      of any claim, lien, encumbrance or security interest. The Company and each
      of
      its Subsidiaries is duly qualified to do business and is in good standing as
      a
      foreign corporation in each jurisdiction in which any of them own or lease
      properties, has an office, or in which the business conducted by any of them
      make such qualification necessary, except where the failure to so qualify would
      not have a material adverse effect on the condition (financial or otherwise),
      business, prospects, assets, properties, results of operations, or net worth
      of
      the Company or any of the Subsidiaries (“Material Adverse Effect”), and no
      proceeding has been instituted in any), jurisdiction revoking, limiting or
      curtailing, or seeking to revoke, limit or curtail, such power and authority
      or
      qualification.

     

    (b)  The
      Capital Securities have been duly and validly authorized for issuance and sale
      to the Purchaser pursuant to this Agreement and, when executed and authenticated
      in accordance with the terms of the Trust Agreement and delivered to the
      Purchaser against payment of the consideration set forth herein, will constitute
      valid and legally binding obligations of the Trust enforceable in accordance
      with their terms and the Purchaser shall be entitled to the benefits provided
      by
      the Trust Agreement. The Trust Agreement has been duly authorized and, when
      executed by the Trustees thereof and delivered by the Trustees thereof, will
      have been duly executed and delivered by the Trustees and will constitute the
      valid and legally binding instrument of the Trustees, enforceable in accordance
      with its terms, (except as enforcement thereof may be limited by bankruptcy,
      insolvency or other laws relating to or affecting enforcement of creditors’
rights generally or by general principles of equity (regardless of whether
      enforcement is sought in a proceeding in equity or at law)). The Junior
      Subordinated Debentures have been duly and validly authorized for delivery
      by
      the Company and, when duly authenticated in accordance with the terms of the
      Indenture and delivered to the Trust against payment of the consideration set
      forth herein, will constitute valid and legally binding obligations of the
      Company enforceable against the Company in accordance with their terms (except
      as such enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, receivership, readjustment of debt, moratorium, fraudulent
      conveyance or similar laws relating to or affecting creditors’ rights generally,
      general equity principles (whether considered in a proceeding in equity or
      at
      law)) and the Trust shall be entitled to the benefits provided by the Indenture.
      The Indenture has been duly authorized and, when executed by the proper officers
      of the Company and delivered by the Company, will have been duly executed and
      delivered by the Company and will constitute the valid and legally binding
      instrument of the Company, enforceable in accordance with its terms, (except
      as
      enforcement thereof may be limited by bankruptcy, insolvency or other laws
      relating to or affecting enforcement of creditors’ rights generally or by
      general principles of equity (regardless of whether enforcement is sought in
      a
      proceeding in equity or at law)).

     

     

    
      
         

      

      
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    (c)  Neither
      the Trust nor the Company or any Subsidiary, is, or with the giving of notice
      or
      lapse of time or both will be, in material violation or breach of, or in default
      under, nor will the execution or delivery of, or the performance and
      consummation of the transactions contemplated by this Agreement (including
      the
      offer, sale, or delivery of the Capital Securities), conflict with, or result
      in
      a material violation or breach of, or constitute a material default under,
      any
      provision of the organization documents of the Trust or the Articles of
      Incorporation, Bylaws (as amended or restated) of the Company, or other
      governing documents of the Trust, the Company or any Subsidiary, or of any
      provision of any material agreement, contract, mortgage, deed of trust, lease,
      loan agreement, indenture, note, bond, or other evidence of indebtedness, or
      other material agreement or instrument to which the Trust, the Company or any
      Subsidiary is a party or by which any of them is bound or to which any of their
      properties is subject, nor will the performance by the Offerors of their
      obligations hereunder violate any material rule, regulation, order, or decree,
      applicable to the Trust, the Company or any Subsidiary of any court or any
      regulatory body, administrative agency, or other governmental body having
      jurisdiction over the Trust, the Company or any Subsidiary or any of their
      respective properties, or any material order of any court or governmental agency
      or authority entered in any proceeding to which the Trust, the Company or any
      Subsidiary was or is now a Party or by which it is bound, except those, which
      are not material to the Company and the Trust taken as a whole. No consent,
      approval, filing, authorization, registration, qualification, or order,
      including with or by any bank regulatory agency, is required for the execution,
      delivery, and performance of this Agreement or the consummation of the
      transactions contemplated by this Agreement, other than such that have been
      obtained or made. This Agreement has been duly authorized, executed and
      delivered by the Company and the Trust and constitutes a valid and binding
      obligation of the Company and the Trust and is enforceable against the Company
      and the Trust in accordance with the terms.

     

    (d)  Beard
      Miller Company LLP has audited, reviewed, and expressed its opinion with respect
      to the audited financial statements and schedules of the Company filed with
      the
      Securities and Exchange Commission (the “SEC”) as part of the Annual Report, and
      whose report is included in the Annual Report, are independent accountants
      as
      required by the SEC.

     

    (e)  The
      audited financial statements and the related notes thereto included in the
      Annual Report present fairly the financial position of the entities purported
      to
      be shown thereby as of the respective dates of such financial statements and
      schedules, and the results of operations and changes in equity and in cash
      flows
      of the entities purported to be shown thereby for the respective periods covered
      thereby, all in conformity with generally accepted accounting principles
      consistently applied throughout the periods involved, except as may be disclosed
      in the Annual Report. All material adjustments necessary for a fair presentation
      of the results of such periods have been made.

     

     

    
      
         

      

      
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    (f)  There
      is
      no litigation or governmental proceeding, action, or investigation pending
      or,
      to the knowledge of the Trust or the Company, threatened, to which the Trust,
      the Company or any Subsidiary is or may be a party or to which property owned
      or
      leased by the Company or any Subsidiary is or may be subject, or related to
      environmental or discrimination matters which is required to be disclosed in
      the
      Annual Report and is not so disclosed.

     

    (g)  Either
      the Company or a Subsidiary, as the case may be, has good and marketable title
      in fee simple to all items of real property and good and marketable title to
      all
      the personal properties and assets reflected as owned by the Company or a
      Subsidiary in the Annual Report, in each case clear of all liens, mortgages,
      pledges, charges, or encumbrances of any kind or nature except those, if any,
      reflected in the financial statements described above or which are not material
      to the Company or any Subsidiary; all material properties held or used by the
      Company or a Subsidiary under leases, licenses, franchises or other agreements
      are held by them under valid, existing, binding, and enforceable leases,
      franchises, licenses, or other agreements with respect to which it is not in
      default.

     

    (h)  Except
      as
      reflected in or contemplated by the Annual Report, since the respective dates
      as
      of which information has been given in the Annual Report and prior to the
      Closing Date (as such term is hereinafter defined):

     

    (i)  Neither
      the Company nor any Subsidiary has or will have incurred any material
      liabilities or obligations, direct or contingent, or entered into any material
      transaction not in the ordinary course of business;

     

    (ii)  Neither
      the Company nor any Subsidiary has or will have paid or declared any dividend
      or
      other distribution with respect to its capital stock (other than those
      consistent with past practices) and neither the Company nor any Subsidiary
      has
      or will be delinquent in the payment of principal or interest on any outstanding
      debt obligations; and

     

    (iii)  There
      has
      not been and will not be any material change in capital stock or any material
      change in the indebtedness of the Company or any Subsidiary (except as may
      result from the closing of the transactions contemplated by this Agreement),
      or
      any adverse change in the condition (financial or otherwise), or any development
      involving a prospective adverse change in their respective businesses (resulting
      from litigation or otherwise), prospects, properties, condition (financial
      or
      otherwise), net worth, or results of operations which is material to the Company
      or any Subsidiary.

     

     

    
      
         

      

      
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    (i)  There
      is
      no contract or other document, transaction, or relationship required to be
      described in the Annual Report or to be filed as an exhibit to the Annual Report
      that has not been described or filed, as required.

     

    (j)  All
      documents delivered or to be delivered by the Offerors or any of their
      representatives in connection with the issuance and sale of the Capital
      Securities were on the dates on which they were delivered, or will be on the
      dates on which they are to be delivered, true, complete, and correct in all
      material respects.

     

    (k)  The
      Company and each Subsidiary have filed all necessary federal and all state
      and
      foreign income and franchise tax returns and paid all taxes shown as due
      thereon; and no tax deficiency has been asserted or threatened against the
      Company or any Subsidiary that would have a Material Adverse
      Effect.

     

    (l)  Neither
      the Trust nor the Company or any Subsidiary has, directly or indirectly, at
      any
      time:

     

    (i)  made
      any
      unlawful contribution to any candidate for political office, or failed to
      disclose any contribution in violation of law; or

     

    (ii)  made
      any
      payment to any federal, state, local, or foreign government officer or official,
      or other person charged with similar public or quasi-public duties, other than
      payments required or permitted by the laws of the United States or any
      jurisdiction thereof or applicable foreign jurisdictions.

     

    (m)  The
      Company or a Subsidiary owns or possesses adequate rights to use all material
      patents, patent applications, trademarks, service marks, trade names, trademark
      registrations, servicemark registrations, copyrights, and licenses necessary
      for
      the conduct of the business of the Company and the Subsidiaries or ownership
      of
      their respective properties, and neither the Company nor any Subsidiary has
      received notice of conflict with the asserted rights of others in respect
      thereof which has not been resolved.

     

    (n)  The
      Company and each Subsidiary have in place and effective such policies of
      insurance, with limits of liability in such amounts, as are normal and prudent
      in the ordinary scope of business similar to that of the Company and such
      Subsidiary in the respective jurisdictions in which they conduct
      business.

     

    (o)  The
      Company and each Subsidiary have and hold, and at the Closing Date (as defined
      herein) will have and hold, and are operating in compliance with, and have
      fulfilled and performed all of their material obligations with respect to,
      all
      permits, certificates, franchises, grants, easements, consents, licenses,
      approvals, charters, registrations, authorizations, and orders (collectively,
      “Permits”) required under all laws, rules, and regulations in connection with
      their respective businesses, and all of such Permits are in full force and
      effect; and there is no pending proceeding, and neither the Company nor any
      Subsidiary has received notice of any material threatened proceeding, relating
      to the revocation or modification of any such Permits. Neither the Company
      nor
      any Subsidiary is or has been (by virtue of any action, omission to act,
      contract to which it is a party or by which it is bound, or any occurrence
      or
      state of facts whatsoever) in violation of any applicable federal, state,
      municipal, or local statutes, laws, ordinances, rules, regulations and/or orders
      issued pursuant to foreign, federal, state, municipal, or local statutes, laws,
      ordinances, rules, or regulations (including those relating to any aspect of
      banking, bank holding companies, environmental protection, occupational safety
      and health, and equal employment practices) heretofore or currently in effect,
      except such violation that has been fully cured or satisfied without recourse
      or
      that is not reasonably likely to have a Material Adverse Effect.

     

     

    
      
         

      

      
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    (p)  The
      provisions of any employee pension benefit plan (“Pension Plan”) as defined in
      Section 3(2) of the Employee Retirement Income Security Act of 1974, as amended
      (“ERISA”), in which the Company or any Subsidiary is a participating employer
      are in substantial compliance with ERISA, and neither the Company nor any
      Subsidiary is in material violation of ERISA. The Company, each Subsidiary,
      or
      the plan sponsor thereof, as the case may be, has duly and timely filed the
      reports required to be filed by ERISA in connection with the maintenance of
      any
      Pension Plans in which the Company or any Subsidiary is a participating
      employer, and no facts, including any “reportable event”, as defined by ERISA
      and the regulations thereunder, exist in connection with any Pension Plan in
      which the Company or any Subsidiary is a participating employer which might
      constitute grounds for the termination of such plan by the Pension Benefit
      Guaranty Corporation or for the appointment by the appropriate U.S. District
      Court of a trustee to administer any such plan. The provisions of any employee
      benefit welfare plan, as defined in Section 3(1) of ERISA, in which the Company
      or any Subsidiary is a participating employer, are in substantial compliance
      with ERISA, and the Company, any Subsidiary, or the plan sponsor thereof, as
      the
      case may be, has duly and timely filed the reports required to be filed by
      ERISA
      in connection with the maintenance of any such plans.

     

    (q)  Neither
      the Company nor the Trust is an open-end investment company, unit investment
      trust or face-amount certificate company that is, or is required to be
      registered under Section 8 of the Investment Company Act of 1940, as amended,
      or
      subject to regulation under such Act.

     

    (r)  The
      Company is a member in good standing of the Federal Reserve System and the
      deposits of each bank or savings bank Subsidiary are insured by the Federal
      Deposit Insurance Corporation (“FDIC”) up to the legal limits.

     

    (s)  Neither
      this Agreement nor any certificate, statement or other document delivered or
      to
      be delivered by the Offerors or any Subsidiary contains or will contain any
      untrue statement of a material fact or omits or will omit to state a material
      fact required to be stated therein or necessary to make the statements therein
      not misleading.

     

    (t)  Any
      certificate signed by any director or officer of the Company or the Trust,
      as
      the case may be, and delivered to the Purchaser or to counsel for the Purchaser
      shall be deemed a representation and warranty of the Company or the Trust,
      as
      the case may be, to the Purchaser as to the matters covered
      thereby.

     

     

    
      
         

      

      
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    Any
      certificate delivered by the Company or the Trust, as the case may be, to their
      respective counsel for purposes of enabling such counsel to render an opinion
      pursuant to Section 6 will also be furnished to the Purchaser and counsel
      for the Purchaser and shall be deemed to be additional representations and
      warranties to the Purchaser by the Company and the Trust as to the matters
      covered thereby.

     

    Section
      3  Purchase
      Sale and Delivery to Purchaser; Closing. 

     

    On
      the
      basis of the representations and warranties herein contained and subject to
      the
      terms and conditions herein set forth, the Trust and the Company, as the case
      may be, agree that the Trust will issue and sell to the Purchaser, and the
      Purchaser agrees, to purchase from the Trust, the Capital Securities. The
      purchase price for the Capital Securities shall be $15,000,000 (“Purchase
      Price”).

     

    Payment
      of the Purchase Price for, and delivery of, the Capital Securities shall be
      made
      at the offices of Blank Rome LLP, One Logan Square, Philadelphia, Pennsylvania
      19103, or at such other place as shall be agreed upon by the Purchaser, the
      Trust and the Company, at 11:00 A.M. Eastern Standard Time, on the date of
      this
      Agreement, or such other time not later than ten (10) business days after such
      date as shall be agreed upon by the Purchaser, the Trust and the Company (such
      time and date of payment and delivery being herein called the “Closing
      Date”).

     

    Payment
      for the Capital Securities shall be made to the Trust by wire transfer of next
      day funds, against delivery to the Purchaser of the Capital Securities to be
      purchased by it. The Capital Securities shall be issued in the form of one
      or
      more fully registered notes in the form of Exhibit A-1 to the Trust Agreement
      in
      such name or names as the Purchaser may request in writing at least two business
      days before the Closing Date.

     

    Section
      4  Agreements
      of the Offerors. 

     

    Each
      of
      the Offerors covenants and agrees with the Purchaser that:

     

    (a)  The
      Offerors shall take or cause to be taken in cooperation with the Purchaser
      and
      counsel to the Purchaser all actions required in exempting, qualifying or
      registering the Capital Securities for sale under the Federal securities laws
      and the Blue Sky Laws of such jurisdictions as the Purchaser may reasonably
      designate, provided the Offerors shall not be required to qualify generally
      as
      foreign corporations or to consent generally to the service of process under
      the
      law of any such state (except with respect to the offering and sale of the
      Capital Securities), and will continue such exemptions, qualifications or
      registrations in effect so long as reasonably requested by the Purchaser
      (including, without limitation, compliance with all undertakings given pursuant
      to such exemptions, qualifications or registrations). In each jurisdiction
      where
      any of the Capital Securities shall have been exempted, qualified or registered
      as provided above, the Offerors will file such reports and statements as may
      be
      required to continue such exemption, qualification or registration for a period
      of not less than one year from the date of this Agreement.

     

     

    
      
         

      

      
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    (b)  The
      Company will furnish to its security holders annual reports containing financial
      statements audited by independent public accountants and quarterly reports
      containing financial statements and financial information which may be
      unaudited. During the period ending ten years after the date of this Agreement,
      (i) as soon as practicable after the end of the fiscal year, the Company will
      furnish to the Purchaser two copies of the annual report of the Company
      containing the consolidated balance sheet of the Company as of the close of
      such
      fiscal year and corresponding consolidated statements of earnings, stockholders’
equity and cash flows for the year then ended, such consolidated statements
      financial statements to be under the certificate or opinion of the Company’s
      independent accountants, and (ii) the Company will file promptly and will
      furnish to the Purchaser at or before the filing thereof copies of all reports
      and any definitive proxy or information statements required to be filed by
      the
      Company with the SEC pursuant to Section 13, 14, or 15 of the Securities
      Exchange Act of 1934, as amended. During such ten-year period the Company also
      will furnish to the Purchaser one copy of the following:

     

    (i)  as
      soon
      as practicable after the filing thereof, each other report, statement, or other
      document filed by the Company with the SEC;

     

    (ii)  as
      soon
      as available, each report, statement, or other document of the Company mailed
      to
      its stockholders.

     

    (c)  The
      Offerors will use their best efforts to satisfy or cause to be satisfied the
      conditions to the obligations of the Purchaser in Section 6 hereof.

     

    (d)  The
      Company shall prepare and timely file with the SEC, from time to time, such
      reports as may be required by the Securities Act Regulations.

     

    (e)  The
      Trust
      shall comply in all respects with the undertakings given by the Trust in
      connection with the exemption, qualification or registration of the Capital
      Securities for offering and sale under the Federal securities and/or Blue Sky
      Laws.

     

    (f)  The
      Trust
      shall apply the net proceeds from the sale of the Capital Securities to be
      sold
      by it hereunder in the manner and for the purposes specified in writing to
      the
      Purchaser.

     

    Section
      5  Payment
      of Expenses and Fees.

     

    (a)  Whether
      or not the transactions contemplated hereunder are consummated, or if this
      Agreement is terminated for any reason, the Company will pay or cause to be
      paid
      the costs, fees, and expenses incurred in connection with the offering of the
      Capital Securities as follows:

     

    (i)  All
      costs, fees, and expenses incurred in connection with the performance of the
      Purchaser, the Company and the Trust’s obligations hereunder, including all fees
      and expenses of the Purchaser, the Company and the Trust’s accountants and
      counsel.

     

    (ii)  All
      filing and registration fees and expenses, including the legal fees and
      disbursements of counsel, incurred in connection with exempting, qualifying
      or
      registering all or any part of the Capital Securities, the Guarantee and the
      Junior Subordinated Debentures for offer and sale under Federal securities
      and/or the Blue Sky Laws.

     

     

    
      
         

      

      
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    (iii)  All
      fees
      and expenses of the Offerors’ registrar and transfer agent, all transfer taxes,
      if any, and all other fees and expenses incurred in connection with the sale
      and
      delivery of the Capital Securities to the Purchaser; and

     

    (iv)  All
      other
      costs and expenses incident to the performance of the Company’s and the Trust’s
      obligations hereunder which are not otherwise provided for in this Section
      5(a).

     

    Section
      6  Conditions
      to the Obligations of the Purchaser. 

     

    The
      obligations of the Purchaser under this Agreement shall be subject to the
      accuracy of the representations and warranties on the part of the Company and
      the Trust set forth herein as of the Closing Date, and to the accuracy of the
      statements of the Offerors’ directors and officers, to the performance by the
      Company and the Trust of their obligations hereunder, and to the following
      additional conditions, except to the extent expressly waived in writing by
      the
      Purchaser:

    

    (a)  The
      Capital Securities, the Guarantee and the Junior Subordinated Debentures shall
      have been qualified or registered for sale, or subject to an available exemption
      from such qualification or registration, under the Federal securities and Blue
      Sky Laws of such jurisdictions as shall have been reasonably specified by the
      Purchaser.

     

    (b)  Since
      the
      dates as of which information is given in the Annual Report:

     

    (i)  There
      shall not have been any material adverse change, or any development involving
      a
      prospective material adverse change, in the ability of the Company or any
      Subsidiary to conduct their respective business (whether by reason of any court,
      legislative, other governmental action, order, decree, or otherwise, or in
      the
      general affairs, condition (financial and otherwise), business, prospects,
      properties, management, financial position or earnings, results of operations,
      or net worth of the Company or any Subsidiary, whether or not arising from
      transactions in the ordinary course of business, and

     

    (ii)  Neither
      the Company nor any Subsidiary shall have sustained any material loss or
      interference from any labor dispute, strike, fire, flood, windstorm, accident.
      or other calamity (whether or not insured) or from any court or governmental
      action, order, or decree, the effect of which on the Company or any Subsidiary,
      in any such case described in clause (b)(i) or (ii) above, is in the reasonable
      opinion of the Purchaser so material and adverse as to make it impracticable
      or
      inadvisable to proceed with the private offering or the delivery of the Capital
      Securities on the terms and in the manner contemplated in this
      Agreement.

     

    (c)  There
      shall have been furnished to the Purchaser on the Closing Date, except as
      otherwise expressly provided below:

     

    (i)  The
      favorable opinion of Mette, Evans & Woodside, counsel to the Company, dated
      as of the Closing Date, in form and substance substantially in the form and
      substance reasonably satisfactory to the Purchaser.

     

    (ii)  The
      favorable opinions, dated the Closing Date, of Richards, Layton & Finger,
      counsel to the Property Trustee, the Delaware Trustee and the Debenture Trustee,
      and special Delaware counsel to the Trust, substantially in the form and
      substance reasonably satisfactory to the Purchaser.

     

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

     

    (iii)  The
      favorable opinion, dated the Closing Date, of Blank Rome LLP, counsel to the
      Purchaser as to such matters as the Purchaser shall reasonably
      request.

     

    In
      rendering such opinions specified in clause (c)(ii), or (iii) above, counsel
      may
      rely upon an opinion or opinions, each dated the Closing Date, of other counsel
      retained by them or the Company as to laws of any jurisdiction other than the
      United States, the Commonwealth of Pennsylvania or the State of Delaware,
      provided that (A) such reliance is expressly authorized by each opinion so
      relied upon and a copy of each such opinion is delivered to the Purchaser,
      and
      (B) counsel shall state in their opinion that they believe that they and the
      Purchaser are justified in relying thereon. Insofar as such opinions involve
      factual matters, such counsel may rely, to the extent such counsel deems proper,
      upon certificates of officers of the Company, its subsidiaries and the Trust
      and
      certificates of public officials.

    

    (d)  On
      the
      Closing Date, a certificate signed by the Chairman of the Board, the President,
      a Vice Chairman of the Board or any Executive or Senior Vice President and
      the
      principal financial or accounting officer of the Company, dated the Closing
      Date, to the effect that the signers of such certificate have carefully examined
      the Annual Report and this Agreement and that:

     

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

     

    (ii)  Each
      of
      the respective signatories of the certificate has carefully examined the Annual
      Report and any amendments thereto, and such documents contain all statements
      and
      information required to be made therein. and neither the Annual Report nor
      any
      amendment thereto includes any untrue statement of a material fact or omits
      to
      state any material fact required to be stated therein or necessary to make
      the
      statements therein not misleading and, since the date on which the Annual Report
      was initially filed, no event has occurred that was required to be set forth
      in
      an amendment to the Annual Report that has not been so set forth;
      and

     

    (iii)  Since
      the
      date on which the Annual Report was initially filed with the SEC, there has
      not
      been any material adverse change or a development involving a prospective
      material adverse change in the business, properties, financial condition. or
      earnings of the Company or any of its Subsidiaries, neither the Company nor
      any
      Subsidiary has incurred any material liability or obligation, direct or
      indirect, or entered into any transaction that is material to the Company or
      such Subsidiary, as the case may be, since such date and except as disclosed
      there has not been any material change in the outstanding capital stock of
      the
      Company, or any change that is material to the Company or any of its
      Subsidiaries in the short-term debt or long-term debt of the Company or any
      Subsidiary; since such date and except as so disclosed, neither the Company
      nor
      any of its Subsidiaries have incurred any material contingent obligations,
      and
      no material litigation is pending or threatened against the Company or any
      Subsidiary; and, since such date and except as so disclosed in writing to the
      Purchaser, neither the Company nor any of its Subsidiaries have sustained any
      material loss or interference from any strike, fire, flood, windstorm, accident
      or other calamity (whether or not insured) or from any court or governmental
      action, order, or decree.

     

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (e)  Prior
      to
      the Closing Date, the Company shall have furnished to the Purchaser such further
      information, certificates and documents as the Purchaser may reasonably request
      in connection with the offering of the Capital Securities.

     

    If
      any
      condition specified in this Section shall not have been fulfilled when and
      as
      required to be fulfilled, this Agreement may be terminated by the Purchaser
      by
      notice from the Purchaser to the Company at any time without liability on the
      part of the Purchaser, or the Company, except for expenses to be paid by the
      Company pursuant to Section 5 hereof or reimbursed by the Company pursuant
      to
      Section 7 and except to the extent provided in Section 8.

     

    Section
      7  Reimbursement
      of Purchaser’s Expenses. 

     

    If
      the
      sale of the Capital Securities provided for herein is not consummated (x) by
      reason of acts of the Company pursuant to Section 10 hereof which permits
      termination of this Agreement, (y) by reason of any failure, refusal or
      inability on the part of the Company to perform any agreement on its part to
      be
      performed pursuant to this Agreement or (z) because any other condition of
      the
      Purchaser’s obligations set forth in Section 6 of this Agreement is not
      fulfilled (unless such failure to perform such agreement or fulfill such
      condition is due to the default or omission of the Purchaser or its counsel),
      then the Company, shall reimburse the Purchaser for all reasonable out-of-pocket
      expenses (including reasonable fees and expenses of their counsel) incurred
      by
      them in connection with this Agreement and the proposed purchase of the Capital
      Securities.

    

    Section
      8  Indemnification
      and Contribution.

     

    (a)  (a)The
      Company and the Trust agree to jointly and severally indemnify and hold harmless
      the Purchaser and each person, if any, who controls the Purchaser within the
      meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act,
      against any and all losses, claims, damages, expenses, liabilities, or actions
      in respect thereof (“Claims”), joint or several to which such Purchaser or each
      such controlling person may become subject under the Securities Act, the
      Exchange Act, the Securities Act Regulations, Blue Sky Laws or other federal
      or
      state statutory laws or regulations, at common law or otherwise (including
      payments made in settlement of any litigation, if such settlement is effected
      with the written consent of the Company, which consent shall not be unreasonably
      withheld), insofar as such Claims arise out of or are based upon the inaccuracy
      or breach of any representation, warranty, or covenant of the Company or the
      Trust contained in this Agreement, any untrue statement or alleged untrue
      statement of any material fact contained in the Annual Report, or any amendment
      thereto, or in any application filed under any Federal securities or Blue Sky
      Law or other document executed by the Offerors for that purpose or based upon
      written information furnished by the Offerors and filed in any state or other
      jurisdiction to exempt, to qualify or register any or all of the Capital
      Securities under the securities laws thereof (any such document, application,
      or
      information being hereinafter called a “Blue Sky Application”), or arise out of
      or are based upon the omission or alleged omission to state in any of the
      foregoing a material fact required to be stated therein or necessary to make
      the
      statements therein not misleading. The Company agrees to reimburse the Purchaser
      and each such controlling person promptly for any reasonable legal fees or
      other
      expenses incurred by the Purchaser or any such controlling person in connection
      with investigating or defending any such Claim or appearing as a third-party
      witness in connection with any such Claim.

     

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    (b)  Promptly
      after receipt by an indemnified party under subsection (a) of this Section
      8 of
      notice of the commencement of any action in respect of a Claim, such indemnified
      party will, if a Claim in respect thereof is to be made against an indemnifying
      party under such subsection, notify the indemnifying party in writing of the
      commencement thereof. In case any such action is brought against any indemnified
      party, and such indemnified party notifies an indemnifying party of the
      commencement thereof, the indemnifying party will be entitled to participate
      in
      and, to the extent that it may wish, jointly with all other indemnifying
      Parties, similarly notified, assume the defense thereof, with counsel reasonably
      satisfactory to such indemnified party, provided, however, if the defendants
      in
      any such action include both the indemnified party and the indemnifying party
      and the indemnified party shall have reasonably concluded that there may be
      legal defenses available to the indemnified party and/or other indemnified
      parties that are different from or additional to those available to the
      indemnifying party, the indemnified party or parties shall have the right to
      select separate counsel to assume such legal defenses and to otherwise
      participate in the defense of such action on behalf of such indemnified party
      or
      parties.

     

    (c)  Upon
      receipt of notice from the indemnifying party to such indemnified party of
      the
      indemnifying party’s election to assume the defense of such action and upon
      approval by the indemnified party of counsel selected by the indemnifying party,
      the indemnifying party will not be liable to such indemnified party under
      subsection (a) of this Section 8 for any legal fees or other expenses
      subsequently incurred by such indemnified party in connection with the defense
      thereof, unless:

     

    (i)  the
      indemnified party shall have employed separate counsel in connection with the
      assumption of legal defenses in accordance with the proviso to the last sentence
      of subsection b of this Section (it being understood, however, that the
      indemnified party shall not be liable for the legal fees and expenses of more
      than one separate counsel, if one or both of the Purchaser or their controlling
      persons are the indemnified parties); or 

     

    (ii)  the
      indemnifying party shall not have employed counsel reasonably satisfactory
      to
      the indemnified party to represent the indemnified party within a reasonable
      time after the indemnified party’s notice to the indemnifying party of
      commencement of the action; or

     

    (d)  The
      obligations of the Company, the Trust and the Purchaser under this Section
      8
      shall be in addition to any liability that the Company, the Trust or the
      Purchaser may otherwise have.

     

    Section
      9  Effective
      Date. 

     

    This
      Agreement shall become effective immediately on the date hereof.

     

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    Section
      10  Termination.
      

     

    Without
      limiting the right to terminate this Agreement pursuant to any other provision
      hereof, this Agreement may be terminated by the Purchaser prior to the Closing
      Date, if:

     

    (a)  The
      Offerors shall have failed, refused, or been unable, at or prior to the Closing
      Date to perform any agreement on its part to be performed
      hereunder.

     

    (b)  Any
      other
      condition to the obligations of the Purchaser hereunder is not fulfilled;
      or

     

    (c)  In
      the
      reasonable judgment of the Purchaser, payment for and delivery of the Capital
      Securities is rendered impracticable or inadvisable because:

     

    (i)  Any
      event
      shall have occurred or shall exist that makes untrue or incorrect in any
      material respect any statement or information contained in the Annual Report
      or
      that is not reflected in the Annual Report but should be reflected therein
      to
      make the statements or information contained therein not misleading in any
      material respect; or

     

    (ii)  Any
      outbreak or escalation of major hostilities or other national or international
      calamity or any substantial change in political, financial or economic
      conditions shall have occurred or shall have accelerated to such extent, in
      the
      reasonable judgment of the Purchaser, as to have a material adverse effect
      on
      the general securities market or make it impracticable or inadvisable to proceed
      with completion of the sale and payment for the Capital Securities as provided
      in this Agreement.

     

    Any
      termination pursuant to this Section 10 shall be without liability on the part
      of the Purchaser to the Company or on the part of the Company to the Purchaser
      (except for expenses to be paid by the Company pursuant to Section 5 or
      reimbursed by the Company pursuant to Section 7 and except as to indemnification
      to the extent provided in Section 8).

     

    Section
      11  Representations
      and Indemnities to Survive Delivery. 

     

    The
      respective indemnity and contribution agreements of the Company and the
      representations, warranties, covenants, other statements of the Offerors and
      of
      their directors and officers set forth in or made pursuant to this Agreement
      will remain in full force and effect, regardless of any investigation made
      by or
      on behalf of the Purchaser or any of their officers, directors, or any
      controlling person and will survive delivery of and payment for the Capital
      Securities sold hereunder or the termination or cancellation of this
      Agreement.

     

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

     

    Section
      12  Notices.
      

     

    All
      communications hereunder shall be in writing and, if sent to the Company, will
      be mailed, delivered, or telecopied (with receipt confirmed) to 

     

    Pennsylvania
      Commerce Bancorp, Inc. 

    c/o
      Commerce Bank/Harrisburg, N.A.

    3801
      Paxton Street

    Harrisburg,
      PA 17111

    Attention:
      Mark Zody

    

    With
      copies to:

    

    Mette,
      Evans & Woodside

    3401
      North Front Street

    P.
      O. Box
      5950

    Harrisburg,
      PA 17110-0950

    Attn:
      Timothy Hoy, Esquire

    

    If
      sent
      to the Trust, will be mailed, delivered, or telecopied (with receipt confirmed)
      to 

    

    Commerce
      Harrisburg Capital Trust II

    c/o
      Commerce Bank/Harrisburg, N.A.

    3801
      Paxton Street

    Harrisburg,
      PA 17111

    Attention:
      Mark Zody

    

    With
      copies to:

    

    Mette,
      Evans & Woodside

    3401
      North Front Street

    P.
      O. Box
      5950

    Harrisburg,
      PA 17110-0950

    Attn:
      Timothy Hoy, Esquire

    

    and
      if
      sent to the Purchaser, will be mailed, delivered, or telecopied (with receipt
      confirmed) to:

    

    Commerce
      Bank, N.A.

    Commerce
      Atrium

    1701
      Route 70 East

    Cherry,
      Hill, NJ 08034-5400

    Attention:
      Douglas J. Pauls

     

     

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    
 

    With
      copies to

    

    Blank
      Rome LLP

    One
      Logan
      Square

    Philadelphia,
      PA 19103

    Attention:
      Lawrence R. Wiseman, Esquire

    

    Section
      13  Successors.

     

    This
      Agreement will inure to the benefit of and be binding upon the parties hereto
      and their respective successors or assigns, and to the benefit of the directors
      and officers (and their personal representatives) and controlling persons
      referred to in Section 8, and no other person shall acquire or have any right
      or
      obligation hereunder.

     

    Section
      14  Partial
      Unenforceability.

     

    If
      any
      section, subsection, clause, or provision of this Agreement is for any reason
      determined to be invalid or unenforceable, such determination shall not affect
      the validity or enforceability of any other section, subsection, clause, or
      provision hereof.

     

    Section
      15  Governing
      Law; Submission to Jurisdiction; Appointment of Agent for Service of
      Process.
      

     

    This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Delaware, without regard to principles of conflict of laws. The parties
      hereto hereby declare that it is their intention that this Agreement shall
      be
      regarded as made under the laws of the State of Delaware and that the laws
      of
      said State shall be applied in interpreting its provisions in all cases where
      legal interpretation shall be required. Each of the parties hereto agrees (a)
      that this Agreement involves at least $100,000.00, and (b) that this Agreement
      has been entered into by the parties hereto in express reliance upon 6
Del.
      C.§
2708.
      Each of the parties hereto hereby irrevocably and unconditionally agrees (a)
      to
      be subject to the jurisdiction of the courts of the State of Delaware and of
      the
      federal courts sitting in the State of Delaware, and (b) (1) to the extent
      such
      party is not otherwise subject to service of process in the State of Delaware,
      to appoint and maintain an agent in the State of Delaware as such party's agent
      for acceptance of legal process, and (2) that, to the fullest extent permitted
      by applicable law, service of process may also be made on such party by prepaid
      certified mail with a proof of mailing receipt validated by the United States
      Postal Service constituting evidence of valid service, and that service made
      pursuant to (b) (1) or (2) above shall, to the fullest extent permitted by
      applicable law, have the same legal force and effect as if served upon such
      party personally within the State of Delaware. .

     

    Section
      16  Entire
      Agreement.

     

    This
      Agreement embodies the entire agreement among the parties hereto with respect
      to
      the transactions contemplated herein, and there have been and are no agreements
      among the parties with respect to such transactions other than as set forth
      or
      provided for herein.

     

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

     

    Section
      17  Counterparts.

     

    This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed an original, but all of which taken together shall constitute one and
      the
      same instrument.

     

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    

    If
      the
      foregoing is in accordance with your understanding of our agreement, kindly
      sign
      and return to us the enclosed counterparts hereof, whereupon it will become
      a
      binding agreement among the Company, the Trust and the Purchaser, in accordance
      with its terms.

    

    Very
      truly yours,

    

    COMMERCE
      BANK, N.A.

    

    By: _____________________

    Name:

    Title:

    

    COMMERCE
      HARRISBURG CAPITAL TRUST III

     

    

    By: _____________________

    Name:

    Title:

    

    

    PENNSYLVANIA
      COMMERCE BANCORP, INC.

    

    By: _____________________

    Name:

    Title:

     

     

     

    17<PAGE>
EXHIBIT 4.3

              NOT VALID UNLESS COUNTERSIGNED BY THE TRANSFER AGENT.
              INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE

NUMBER                                                                    SHARES
------                                                                    ------

                                   PENGE CORP.

                                                           REGISTERED SECURITIES
                                                           CUSIP NO. 70705P 10 5

                   AUTHORIZED COMMON STOCK: 50,000,000 SHARES
                                PAR VALUE: $.001

THIS CERTIFIES THAT

IS THE RECORD HOLDER OF

SHARES OF                          PENGE CORP.                     COMMON STOCK

TRANSFERABLE ON THE BOOKS OF THE CORPORATION IN PERSON OR BY DULY AUTHORIZED
ATTORNEY UPON SURRENDER OF THIS CERTIFICATE PROPERLY ENDORSED. THIS CERTIFICATE
IS NOT VALID UNTIL COUNTERSIGNED BY THE TRANSFER AGENT AND REGISTERED BY THE
REGISTRAR. W

        ITNESS THE FACSIMILE SEAL OF THE CORPORATION AND THE FACSIMILE
SIGNATURES OF ITS DULY AUTHORIZED OFFICERS.

DATED:

                          [PENGE CORP. CORPORATE SEAL]

-------------------------------                  -------------------------------
     KC HOLMES, PRESIDENT                               KIRK FISCHER, CEO

AMERICAN REGISTRAR & TRANSFER CO. PO BOX 1796, SALT LAKE CITY, UTAH 84110
COUNTERSIGNED ______________________________________
                 Registrar - Authorized Signature

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