Document:

Exhibit 10.1

 

AGREEMENT

 

This AGREEMENT (the “Agreement”)
is made and entered into as of March 25, 2016, by and between The Community Financial Corporation, a Maryland corporation (the
“Company”), and Basswood Capital Management, L.L.C., a Delaware limited liability company (“BCM”),
acting on behalf of the Funds (as defined below) and certain managed accounts.

 

RECITALS

 

WHEREAS, BCM is the investment
manager or adviser to certain private investment funds and managed accounts and, in such capacity, is the beneficial owner of 9.8%
of the common stock, par value $0.01 per share, of the Company (the “Common Stock”); and

 

WHEREAS, the Board of
Directors of the Company (the “Board”) has determined that it is in the best interest of the Company’s
shareholders to add Eric Goldberg, a representative of BCM (the “BCM Nominee”), to the Board and to cause the
BCM Nominee to be added to the Board of Directors of Community Bank of the Chesapeake, a Maryland-chartered commercial bank and
wholly owned subsidiary of the Company (the “Bank”);

 

NOW, THEREFORE, in consideration
of the premises, the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I.

AGREEMENTS

 

Section 1.1. The Annual
Meeting. 

 

(a)BCM hereby agrees
(i) not to nominate any person for election to the Board, or to propose any business to be presented to the Company’s shareholders,
at the Company’s 2016 Annual Meeting of Shareholders (the “Annual Meeting”) and (ii) not to submit any
notice in respect thereof pursuant to the Amended and Restated Articles of Incorporation of the Company.

 

(b)The Company agrees
that it shall (i) nominate the BCM Nominee for election as a director of the Company at the Annual Meeting, to be placed in the
class of directors with a term ending at the Company’s 2017 Annual Meeting of Shareholders, and (ii) solicit proxies for
the BCM Nominee’s election as a director to the same extent as for the election or re-election of any other Company nominee
for election to the Board at the Annual Meeting.

 

Section 1.2. Bank
Board. At or prior to the time the BCM Nominee is elected as a director of the Company, the Company will cause the Bank to
take all steps necessary (including increasing the size of its Board of Directors) to add, and shall add, the BCM Nominee to the
Board of Directors of the Bank.

 

 

     

     

    

ARTICLE II.

MISCELLANEOUS PROVISIONS

 

Section 2.1. Representations
and Warranties.

 

(a)Each of the parties
hereto represents and warrants to the other party that:

 

(i) such
party has all requisite authority and power to execute and deliver this Agreement and to consummate the transactions contemplated
hereby;

 

(ii)the
execution and delivery of this Agreement and the consummation of the actions contemplated hereby have been duly and validly authorized
by all required action on the part of such party and no other proceedings on the part of such party are necessary to authorize
the execution and delivery of this Agreement and the actions contemplated hereby;

 

(iii)the
Agreement has been duly and validly executed and delivered by such party and constitutes the valid and binding obligation of such
party enforceable against such party in accordance with its terms; and

 

(iv)this
Agreement will not result in a violation of any terms or provisions of any agreements to which such person is a party or by which
such party may otherwise be bound or of any law, rule, license, regulation, judgment, order or decree governing or affecting such
party.

 

(b)The parties hereto
acknowledge, warrant and represent that they have carefully read this Agreement, understand it, have consulted with and received
the advice of counsel regarding this Agreement, agree with its terms, are duly authorized to execute it and freely, voluntarily
and knowingly execute it.

 

Section 2.2. General.

 

(a)This Agreement
contains the entire agreement between the parties with respect to the subject matter hereof and thereof and supersedes all prior
and contemplated arrangements and understandings with respect thereto.

 

(b)This Agreement
may be signed in counterparts, each of which shall constitute an original and all of which together shall constitute one and the
same Agreement.

 

(c)All notices and
other communications required or permitted hereunder shall be effective upon receipt and shall be in writing and may be delivered
in person, electronic mail, express delivery service or U.S. mail, in which event it may be mailed by first-class, certified or
registered, postage prepaid, addressed to the party to be notified at the respective addresses set forth below, or at such other
addresses which may hereinafter be designated in writing:

 

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If to the Company:

 

The Community Financial Corporation

3035 Leonardtown Road

Waldorf, Maryland 20601

Attention: William J. Pasenelli

E-mail: wpasenelli@cbtc.com

 

with a copy to:

 

Kilpatrick Townsend & Stockton LLP

607 14th Street, NW, Suite 900

Washington, DC 20005

Attention: Gary R. Bronstein, Esq.

E-Mail: gbronstein@kilpatricktownsend.com

 

If to BCM:

 

Basswood Capital Management, L.L.C.

645 Madison Avenue, 10th Floor

New York, NY 10022

Attention: Marc E. Samit

E-Mail: marc@basswoodpartners.com 

 

with a copy to:

 

Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, New York 10019

Attention: Michael A. Schwartz, Esq.

E-Mail: mschwartz@willkie.com

 

(d)Whenever possible,
each provision of this Agreement shall be interpreted in such manner as to be effective and valid, but if any provision of this
Agreement is held to be invalid or unenforceable in any respect, such invalidity or unenforceability shall not render invalid or
unenforceable any other provision of this Agreement.

 

(e)It is hereby agreed
and acknowledged that it will be impossible to measure in money the damages that would be suffered if the parties fail to comply
with any of the obligations herein imposed on them and that in the event of any such failure, an aggrieved person will be irreparably
damaged and will not have an adequate remedy at law. Any such person, therefore, shall be entitled to injunctive relief, including
specific performance, to enforce such obligations, without the posting of any bond, and, if any action should be brought in equity
to enforce any of the provisions of this Agreement, none of the parties hereto shall raise the defense that there is an adequate
remedy at law.

 

(f)Each party hereto
shall do and perform or cause to be done and performed all such further acts and things and shall execute and deliver all such
other agreements, certificates, instruments and documents as any other party hereto reasonably may request in order to carry out
the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

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(g)This Agreement
shall be governed by and construed in accordance with the laws of the State of Delaware without regard to conflicts of laws principles.

 

 

 

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

 

	 	THE COMMUNITY FINANCIAL CORPORATION	 
	 	 	 	 
	 	By:	/s/ William J. Pasenelli	 
	 	 	Name: William J. Pasenelli	 
	 	 	Title: President and Chief Executive Officer	 

 

 

 

 

[Signature Page to Agreement]

 

 

     

     

    

 

 

	 	BASSWOOD CAPITAL MANAGEMENT, L.L.C.	 
	 	 	 	 
	 	 	 	 
	 	   By:	/s/ Matthew Lindenbaum	 
	 	 	Name: Matthew Lindenbaum	 
	 	 	Title: Managing Member	 

 

 

 

 

[Signature Page to Agreement]EX-4.4

 Exhibit 4.4 

KBS GROWTH & INCOME REIT, INC. 

FORM OF MULTIPLE CLASS PLAN 

Effective as of
                        , 2016 

I.        Introduction 

As permitted by Section 5.4 of KBS Growth & Income REIT, Inc.’s (the “Corporation”) Second Articles of Amendment and Restatement
(“Charter”) and required by the Articles Supplementary designating the Class T Common Stock of the Corporation (the “Articles”), effective as of the date set forth above, the Corporation’s board of directors (the
“Board”) adopts this Multiple Class Plan (the “Plan”) to establish certain features of the Class A Common Stock and the Class T Common Stock. Each capitalized term in this Plan not otherwise defined herein has the same meaning as
that set forth in the Charter or the Articles, as appropriate. 
 In addition to the terms of the Common Stock, including the Class A Common Stock,
described in the Charter and the Class T Common Stock described in the Articles, the Class A Common Stock and the Class T Common Stock shall have the features described below. 

II.        Class-Specific Expenses 

 A.        Class T Common Stock Servicing
Fee.      Subject to the terms and conditions contained herein and in the dealer manager agreement between the Corporation and KBS Capital Markets Group LLC (the “Dealer Manager”), the Corporation will pay
the Dealer Manager of an Offering a Class T Common Stock servicing fee (as described herein, the “Servicing Fee”) solely to the extent there is a broker dealer of record with respect to such share of Class T Common Stock that has entered a
currently effective selected dealer agreement or servicing agreement that provides for the payment to such broker dealer of the Servicing Fee with respect to such share of Class T Common Stock, and such broker dealer of record is in compliance with
the applicable terms of such selected dealer agreement or servicing agreement related to such payment. To the extent payable, the Servicing Fee is an annual fee of 1% of the purchase price per share (ignoring any discounts that may be available to
certain categories of purchasers) of Class T Common Stock sold in a primary Offering of the Corporation. The Servicing Fee accrues daily upon issuance of a share of Class T Common Share and is paid monthly in arrears. No Servicing Fee is payable
with respect to shares of Class T Common Stock issued pursuant to the Corporation’s distribution reinvestment plan or issued as a stock dividend. 

Notwithstanding the foregoing, the Servicing Fee will cease to accrue with respect to a share of Class T Common Stock upon the occurrence of the following
events: (i) the date at which aggregate underwriting compensation from all sources equals 10% of the gross proceeds from the primary Offering in which the share of Class T Common Stock was sold, as calculated by the Corporation with the assistance
of the Dealer Manager after the termination of the primary Offering in which the share of Class T Common Stock was sold, (ii) with respect to a particular share of Class T Common Stock, the fourth anniversary of the issuance of the share, (iii) a
listing of the Corporation’s Common Stock on a national securities exchange, (iv) a merger or other extraordinary transaction of the Corporation, and (v) the date the share of Class T Common Stock associated with the Servicing Fee is no longer
outstanding, such as upon its redemption or 

  
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the Corporation’s dissolution. Underwriting compensation includes selling commissions, dealer manager fees, and servicing fees being paid in connection with an Offering as well as other
items of value paid in connection with an Offering that are viewed by FINRA as underwriting compensation. 

 B.        Expense Allocation.    The officers of the
Corporation, or a person duly appointed by the officers of the Corporation, will track all expenses of the Corporation and may allocate expenses to a specific class of Common Stock if (i) an expense is actually incurred in a different amount by such
class of Common Stock or (ii) such class of Common Stock receives services of a different kind or to a different degree than the other classes of Common Stock (the expenses described in clauses (i) and (ii) shall hereinafter be referred to as
“Class-Specific Expenses”). The Servicing Fee is a Class-Specific Expense of the Class T Common Stock that will be allocated solely to the shares of Class T Common Stock. Notwithstanding anything contained herein to the contrary, no
expense provided for herein shall be treated as a Class-Specific Expense if the officers of the Corporation, or a person duly appointed by the officers of the Corporation, determines after consultation with the Corporation’s tax advisors that
such treatment as a Class-Specific Expense could jeopardize the Corporation’s ability to qualify as a REIT. Expenses shall be allocated to each class of Common Stock at the same time as all other classes of Common Stock. 

III.        Amendments 

The Plan may not be materially amended unless approved by a majority of the entire Board, including a majority of the Independent Directors. 

  
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