Document:

ex_397702.htm

EXHIBIT 10.1

 

 

First Amendment To Amended and Restated Credit Agreement

 

 

By And Among

 

 

Escalade, Incorporated

 

And

 

Indian Industries, Inc.

 

And

 

The Other Loan Parties Hereto

 

And

 

The Lenders Party Hereto

 

And

 

JPMorgan Chase Bank, N.A.,

As Administrative Agent

 

 

 

Dated As Of July 18, 2022

 

 

 

 

 

  

First Amendment To Amended and Restated 

Credit Agreement

 

 

This First Amendment To Amended and Restated Credit Agreement (this “First Amendment”) is made as of July 18, 2022, by and among Escalade, Incorporated, Indian Industries, Inc., the Other Loan Parties hereto, the Lenders party hereto and JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”). The parties hereto agree as follows:

 

W I T N E S S E T H:

 

Whereas, as of January 21, 2022, the parties hereto entered into a certain Amended and Restated Credit Agreement (the “Agreement”); and

 

Whereas, the parties desire to amend the Agreement to, among other things, increase the Revolving Commitment and to amend certain definitions and covenants, subject to and as provided in this First Amendment;

 

Now, Therefore, in consideration of the premises, and the mutual promises herein contained, the parties agree that the Agreement shall be, and it hereby is, amended as provided herein and the parties further agree as follows:

 

Article I

 

Definitions

 

Section 1.01 Defined Terms. Section 1.01 of the Agreement is hereby amended by substituting the following definitions in lieu of the like existing definitions:

 

“Revolving Commitment” means, with respect to each Lender, the amount set forth on the Commitment Schedule opposite such Lender’s name, or in the Assignment and Assumption or other documentation or record (as such term is defined in Section 9-102(a)(70) of the New York Uniform Commercial Code) as provided in Section 9.04(b)(ii)(C), pursuant to which such Lender shall have assumed its Revolving Commitment, as applicable, as such Revolving Commitment may be reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04; provided, that at no time shall the Revolving Exposure of any Lender exceed its Revolving Commitment. As of the First Amendment Effective Date, the aggregate amount of the Lenders’ Revolving Commitments is $75,000,000.

 

Section 1.01 Defined Terms. Section 1.01 of the Agreement is hereby further amended by adding the following new definitions to the Agreement:

 

“First Amendment Effective Date” means July 18, 2022.

 

 

	
			First Amendment to Amended and Restated Credit Agreement

				
			Page 1

			

 

 

 

Article VI

 

Negative Covenants

 

SECTION 6.12 Financial Covenants. Section 6.12 of the Agreement is hereby amended by substituting the following new clause (b) in lieu of the like existing clause (b):

 

(b)         Funded Debt to EBITDA Ratio. The Loan Parties shall achieve a Funded Debt to EBITDA Ratio of not more than (i) 3.00 to 1.00 as of the end of each Fiscal Quarter from October 1, 2022 through December 31, 2022, and (ii) 2.75 to 1.00 as of the Fiscal Quarter ending March 31, 2023 and as of the end of each Fiscal Quarter thereafter, calculated as of the 12-month period then ended.

 

 

Part II. Continuing Effect

 

Except as expressly modified herein:

 

(a)         All terms, conditions, representations, warranties and covenants contained in the Agreement shall remain the same and shall continue in full force and effect, interpreted, wherever possible, in a manner consistent with this First Amendment; provided, however, in the event of any irreconcilable inconsistency, this First Amendment shall control;

 

(b)         The representations and warranties contained in the Agreement shall survive this First Amendment in their original form as continuing representations and warranties of Borrowers; and

 

(c)         Capitalized terms used in this First Amendment, and not specifically herein defined, shall have the meanings ascribed to them in the Agreement.

 

In consideration hereof, each Borrower represents, warrants, covenants and agrees that:

 

(aa)         Each representation and warranty set forth in the Agreement, as hereby amended, remains true and correct as of the date hereof in all material respects, except to the extent that such representation and warranty is expressly intended to apply solely to an earlier date and except changes reflecting transactions permitted by the Agreement;

 

(bb)         There currently exist no offsets, counterclaims or defenses to the performance of the Obligations (such offsets, counterclaims or defenses, if any, being hereby expressly waived);

 

(cc)         Except as expressly waived in this First Amendment, there does not exist any Default or Event of Default; and

 

(dd)         After giving effect to this First Amendment and any transactions contemplated hereby, no Default or Event of Default is or will be occasioned hereby or thereby.

 

 

Part III. Independent Credit Decision

 

Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender, based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this First Amendment.

 

	
			First Amendment to Amended and Restated Credit Agreement

				
			Page 2

			

 

 

 

Part IV. Commitment Schedule

 

Subject to Part V hereof, the Agreement is hereby amended by substituting the Commitment Schedule attached hereto in lieu of the Commitment Schedule attached to the Agreement.

 

 

Part V. Conditions Precedent

 

Notwithstanding anything contained in this First Amendment to the contrary, this First Amendment shall not become effective until each of the following conditions precedent have been fulfilled to the satisfaction of the Administrative Agent:

 

(a)         The Administrative Agent shall have received counterparts of this First Amendment, duly executed by the Administrative Agent, Borrowers, the Loan Guarantors and the Lenders;

 

(b)         The Administrative Agent shall have received a Replacement Revolving Note, duly executed by Borrowers;

 

(c)         The Administrative Agent shall have received a Consent and Reaffirmation, duly executed by Guarantors;

 

(d)         The Administrative Agent shall have received a duly executed certificate of the Secretary of each Borrower and Guarantor (A) certifying as to the authorizing resolutions of such Borrower and Guarantor, and (B) certifying as complete and correct as to attached copies of its Articles of Incorporation and By‐Laws or Articles of Organization and Operating Agreement, as applicable, or certifying that such Articles of Incorporation or By‐Laws or Articles of Organization or Operating Agreement, as applicable, have not been amended (except as shown) since the previous delivery thereof to the Administrative Agent;

 

(e)         The Administrative Agent shall have received such documentation and other information requested in connection with applicable “know your customer” and anti-money laundering rules and regulations, including the USA Patriot Act; and

 

(f)         All legal matters incident to this First Amendment shall be reasonably satisfactory to the Administrative Agent and its counsel.

 

 

Part V. Expenses

 

The Borrowers agree to pay or reimburse the Administrative Agent for all reasonable expenses of the Administrative Agent (including, without limitation, reasonable attorneys’ fees) incurred in connection with this First Amendment. The Borrowers shall also pay all fees as set forth in that certain Fee Letter dated as of the First Amendment Effective Date.

 

	
			First Amendment to Amended and Restated Credit Agreement

				
			Page 3

			

 

 

 

Part VI. Counterparts

 

This First Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of this First Amendment by telefacsimile or other electronic method of transmission shall have the same force and delivery of an original executed counterpart of this First Amendment. Any party delivering an executed counterpart of this First Amendment by telefacsimile or other electronic method of transmission shall also deliver an original executed counterpart of this First Amendment, but the failure to do so shall not affect the validity, enforceability, and binding effect of this First Amendment.

 

In Witness Whereof, the parties hereto have caused this First Amendment to be executed by their respective officers duly authorized as of the date first above written.

 

 

[This Space Intentionally Left Blank]

 

	
			First Amendment to Amended and Restated Credit Agreement

				
			Page 4

			

 

 

 

Signature Page Of

Escalade, Incorporated

To First Amendment to Amended and Restated Credit Agreement

 

 

	
			 

				
			Escalade, Incorporated

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ STEPHEN WAWRIN

				
			 

			
	
			 

				
			 

				
			Stephen Wawrin, Chief Financial Officer

				
			 

			

 

 

 

 

Signature Page Of

Indian Industries, Inc.

To First Amendment to Amended and Restated Credit Agreement

 

 

	
			 

				
			Indian Industries, Inc.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ STEPHEN WAWRIN

				
			 

			
	
			 

				
			 

				
			Stephen Wawrin, Chief Financial Officer

				
			 

			

 

 

 

 

CONSENT AND REAFFIRMATION

 

Each of the undersigned Loan Guarantors hereby consents to the foregoing First Amendment, and further agrees that the execution and delivery of such First Amendment shall in no way affect, impair, discharge, relieve or release the obligations of the undersigned under its Loan Guaranty, which obligations are hereby ratified, confirmed and reaffirmed in all respects and shall continue in full force and effect, until all obligations of the Borrowers to the Lenders, the Issuing Bank and the Administrative Agent are fully, finally and irrevocably paid and performed. Each Loan Guarantor further acknowledges that the failure to consent to any subsequent amendment shall not affect the liability of such Loan Guarantor under its Loan Guaranty. Capitalized terms used herein and not defined have the meanings ascribed thereto in the Agreement.

 

	 	
			BEAR ARCHERY, INC.

			 

			By: /s/ STEPHEN WAWRIN___________

			Stephen Wawrin, Chief Financial Officer

			 

			 

			EIM COMPANY, INC.

			 

			By: /s/ STEPHEN WAWRIN___________

			Stephen Wawrin, Chief Financial Officer

			 

			 

			ESCALADE INSURANCE, INC.

			 

			By: /s/ STEPHEN WAWRIN___________

			Stephen Wawrin, Chief Financial Officer

			 

			 

			ESCALADE SPORTS PLAYGROUND, INC.

			 

			By: /s/ STEPHEN WAWRIN___________

			Stephen Wawrin, Chief Financial Officer

			 

			 

			HARVARD SPORTS, INC.

			 

			By: /s/ STEPHEN WAWRIN___________

			Stephen Wawrin, Chief Financial Officer

			

 

 

 

 

	 	
			SOP SERVICES, INC.

			 

			By: /s/ STEPHEN WAWRIN___________

			Stephen Wawrin, Chief Financial Officer

			 

			 

			U.S. WEIGHT, INC.

			 

			By: /s/ STEPHEN WAWRIN___________

			Stephen Wawrin, Chief Financial Officer

			 

			 

			WEDCOR HOLDINGS, INC.

			 

			By: /s/ STEPHEN WAWRIN___________

			Stephen Wawrin, Chief Financial Officer

			 

			 

			GOALSETTER SYSTEMS, INC.

			 

			By: /s/ STEPHEN WAWRIN___________

			Stephen Wawrin, Chief Financial Officer

			 

			 

			LIFELINE PRODUCTS, LLC

			 

			By: /s/ STEPHEN WAWRIN___________

			Name:   Stephen Wawrin

			Title:     Chief Financial Officer

			 

			 

			VICTORY MADE, LLC

			 

			By: /s/ STEPHEN WAWRIN___________

			Stephen Wawrin, Chief Financial Officer

			 

			 

			VICTORY TAILGATE, LLC

			 

			By: /s/ STEPHEN WAWRIN___________

			Stephen Wawrin, Chief Financial Officer

			

 

 

 

 

 

 

Signature Page Of

JPMorgan Chase Bank, N.A.

To First Amendment to Amended and Restated Credit Agreement

 

 

	 	
			JPMORGAN CHASE BANK, N.A.,

			individually and as Administrative Agent,

			Swingline Lender and Issuing Bank

			 

			 

			By: /s/THOMAS W. HARRISON

			 

			Name: Thomas W. Harrison

			 

			Title: Executive Director

			

 

 

 

 

 

Signature Page Of

Old National Bank

To First Amendment to Amended

and Restated Credit Agreement

 

	 	
			OLD NATIONAL BANK,

			as a Lender

			 

			 

			By: /s/ JEFF BONE

			 

			Name: Jeff Bone

			 

			Title: V.P.

			

 

 

 

 

COMMITMENT SCHEDULE

 

	
			Lender

				
			Revolving Commitment

				
			Term 

			Commitment

				
			Swingline Commitment

				
			Total

			Commitment

			
	
			JPMorgan Chase Bank, N.A.

				
			$51,442,307.82

				
			$29,803,877.46

				
			$7,500,000.00*

				
			  $81,246,185.28

			
	
			Old National Bank

				
			$23,557,692.18

				
			$13,648,504.54

				
			$0.00

				
			  $37,206,196.72

			
	
			Total

				
			$75,000,000.00

				
			$43,452,382.00

				
			$7,500,000.00

				
			$118,452,382.00

			

 

 

 

 

*The Swingline Commitment is part of JPMorgan Chase Bank, N.A.’s Revolving Commitment.Exhibit
10.1

 

SUNNYSIDE
BANCORP, INC.

 

SUBSCRIPTION
AGREEMENT

 

This
Subscription Agreement (this “Agreement”) is made and entered into as of June 29, 2022, by and among Sunnyside
Bancorp, Inc., a Maryland corporation (the “Company”), and VECTA PARTNERS LLC, a Delaware limited liability
company (“Purchaser”). Certain terms used and not otherwise defined in the text of this Agreement are defined
in Section 9 hereof.

 

RECITALS

 

WHEREAS,
the Company and Purchaser are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded
by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”) and the regulations promulgated
thereunder by the United States Securities and Exchange Commission (the “Commission”);

 

WHEREAS,
the Company desires to sell to Purchaser, and Purchaser desires to purchase from the Company shares of common stock, $0.01 par value
per share (the “Common Stock”), in accordance with the terms and provisions of this Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing and the mutual representations, warranties and covenants herein contained, the parties hereto
hereby agree as follows:

 

1.
Subscription; Payment. The Purchaser, intending to be legally bound under this Agreement, hereby irrevocably agrees to purchase
from the Company, the number of shares of Common Stock set forth on the signature page attached hereto (the “Shares”)
at a per share price equal to $20.25 (the “Share Price”) for an aggregate purchase price equal to $4,500,000
(the “Capital Commitment”). This Subscription is submitted to Purchaser in accordance with and subject to the
terms and conditions described in this Subscription Agreement. Purchaser shall either: (i) enclose herewith a certified or official bank
check payable to the Company, or (ii) transmit by wire transfer the amount of the Capital Commitment.

 

2.
Closing. The closing of the sale and purchase of the Shares (the “Closing”) shall take place remotely on the
date hereof or on such other date and at such other time and place as the Parties shall agree in writing. All actions and transactions
required to take place at the Closing shall, unless otherwise specified herein, be deemed to have taken place simultaneously effective
as of the close of business on such date. Promptly after the Closing, the Company shall deliver to Purchaser the Shares to be issued
in such Closing through book-entry form.

 

3.
Representations and Warranties of Purchaser. Purchaser represents and warrants to the Company that the statements contained in
this Section 3 are true and complete as of the date of this Agreement:

 

3.1.
Authority. Purchaser represents that Purchaser has all requisite power and authority to enter into this Agreement and the instruments
referred to herein to which it is a party and to consummate the transactions contemplated hereby and thereby.

 

    	1

    	 

    

 

3.2.
Validity. This Agreement has been duly executed and delivered by Purchaser, and the instruments referred to herein to which it
is a party will be duly executed and delivered by Purchaser, and each such agreement and instrument constitutes or will constitute a
valid and binding obligation of Purchaser, enforceable against it in accordance with its terms, except as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, and any other laws of general application affecting enforcement of creditors’
rights generally, and as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable
remedies.

 

3.3.
Investment Representations and Warranties. Purchaser understands and agrees that the offering and sale of the Shares has not been
registered under the Securities Act or any applicable state securities laws and is being made in reliance upon federal and state exemptions
for transactions not involving a public offering which depend upon, among other things, the bona fide nature of the investment intent
and the accuracy of Purchaser’s representations as expressed herein.

 

3.4.
Acquisition for Own Account. Purchaser is acquiring the Shares for its own account for investment and not with a view toward distribution
in a manner which would violate the Securities Act or any applicable state securities laws.

 

3.5.
Ability to Protect Its Own Interests and Bear Economic Risks. Purchaser, by reason of the business and financial experience of
its management, has the capacity to protect its own interests in connection with the transactions contemplated by this Agreement and
is capable of evaluating the merits and risks of the investment in the Shares. Purchaser is able to bear the economic risk of an investment
in the Shares and is able to sustain a loss of all of its investment in the Shares without economic hardship, if such a loss should occur.

 

3.6.
Accredited Investor. Purchaser is an “accredited investor” as that term is defined in Regulation D promulgated under
the Securities Act.

 

3.7.
Access to Information. Purchaser has had adequate opportunity to ask questions of, and receive answers from, the Company’s
officers, employees, agents, accountants, and representatives concerning the Company’s business, operations, financial condition,
assets, liabilities, and all other matters relevant to its investment in the Shares. Purchaser understands that an investment in the
Shares bears significant risk and represents that it has reviewed the SEC Reports, which serve to qualify the Company representations
set forth in this Agreement.

 

3.8.
Restricted Securities. Purchaser understands that the Shares will be characterized as “restricted securities” under
the federal securities laws inasmuch as they are being acquired from the Company in a private placement under Section 4(a)(2) of the
Securities Act and that under such laws and applicable regulations the Shares may be resold without registration under the Securities
Act only in certain limited circumstances. Purchaser acknowledges that the Shares must be held indefinitely unless subsequently registered
under the Securities Act and under applicable state securities laws or an exemption from such registration is available. Purchaser understands
that the Company is under no obligation to register the Shares, except as provided in this Agreement. Purchaser is aware of the provisions
of Rule 144 under the Securities Act which permit limited resale of securities purchased in a private placement.

 

    	2

    	 

    

 

3.9.
Tax Advisors. Purchaser has had the opportunity to review with Purchaser’s own tax advisors the federal, state and local
tax consequences of this investment, where applicable, and the transactions contemplated by this Agreement. Purchaser is relying solely
on Purchaser’s own determination as to tax consequences or the advice of such tax advisors and not on any statements or representations
of the Company or any of its agents and understands that Purchaser (and not the Company) shall be responsible for Purchaser’s own
tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement.

 

4.
Representations and Warranties by the Company. The Company represents and warrants to Purchaser that the statements contained
in this Section 4 are true and complete as of the date of this Agreement.

 

4.1.
Organization. Each of the Company and Sunnyside Federal Savings and Loan Association of Irvington, a wholly-owned subsidiary of
the Company (the “Subsidiary”), (a) is duly incorporated or otherwise organized, validly existing and in good
standing under the laws of the jurisdiction of its formation, (b) is duly qualified to do business as a foreign entity and is in good
standing in each jurisdiction where the nature of the property owned or leased by it or the nature of the business conducted by it makes
such qualification necessary, except where the failure to be so qualified would not have a Material Adverse Effect, and (c) has all requisite
corporate power and authority to own or lease and operate its assets and carry on its business as presently being conducted.

 

4.2.
Consents. Neither the execution, delivery or performance of this Agreement by the Company, nor the consummation by it of the obligations
and transactions contemplated hereby or thereby (including, without limitation, the issuance, the reservation for issuance and the delivery
of the Shares) requires any consent of, authorization by, exemption from, filing with or notice to any Governmental Entity or any other
Person, other than filings required under applicable U.S. federal and state securities laws.

 

4.3.
Authorization; Enforcement. The Company has all requisite corporate power and has taken all necessary corporate action required
for the due authorization, execution, delivery and performance by the Company of this Agreement and the consummation of the transactions
contemplated hereby and thereby (including, without limitation, the issuance of the Shares and the provision to Purchaser of the rights
contemplated by this Agreement) and no action on the part of the stockholders of the Company is required. The execution, delivery and
performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby and thereby,
have been duly authorized by all necessary corporate action on the part of the Company. This Agreement has been duly executed and delivered
by the Company, and the instruments referred to herein to which it is a party will be duly executed and delivered by the Company, and
each such agreement constitutes or will constitute a legal, valid and binding obligation of the Company enforceable against it in accordance
with its terms, except to the extent that enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance, and any other laws of general application affecting enforcement of creditors’ rights generally, and as limited by laws
relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

    	3

    	 

    

 

4.4.
Valid Issuance of Shares. The Shares have been duly and validly authorized and, when issued and paid for pursuant to this Agreement,
the Shares will be validly issued, fully paid and non-assessable, and the Shares shall be free and clear of all Encumbrances.

 

4.5
No Conflicts. The Company and its Subsidiary are not in violation of their respective certificates of incorporation, as amended,
or the by-laws, and the Company and the Subsidiary are not in default (and no event has occurred which, with notice or lapse of time
or both, would cause them to be in default) under, nor has there occurred any event giving others (with notice or lapse of time or both)
any rights of termination, amendment, acceleration or cancellation of, any material agreement, indenture or instrument to which the Company
or any Subsidiary is a party. The business of the Company and its Subsidiary is not being conducted in violation of any law, ordinance
or regulation of any Governmental Entity, except where the violation would not result in a Material Adverse Effect.

 

4.6.
No General Solicitation. Neither the Company, nor any of its Affiliates or any other Person acting on the Company’s behalf,
has directly or indirectly engaged in any form of general solicitation or general advertising with respect to the Shares, nor have any
of such Persons made any offers or sales of any security of the Company or its Affiliates or solicited any offers to buy any security
of the Company or its Affiliates under circumstances that would require registration of the Shares under the Securities Act.

 

4.7.
Taxes. The Company and its Subsidiary have properly filed all federal, state, local, and other tax returns and reports which are
required to be filed by them, which returns and reports were properly completed and are true and correct in all material respects, and
all taxes, interest, and penalties due and owing have been timely paid. There are no outstanding waivers or extensions of time with respect
to the assessment or audit of any tax or tax return of the Company or the Subsidiary or claims now pending or matters under discussion
between the Company or the Subsidiary and any taxing authority in respect of any tax of the Company.

 

4.8.
Compliance with Laws.

 

(a)
Each of the Company and the Subsidiary has been and is in material compliance with the terms of, all franchises, permits, licenses and
other rights and privileges necessary to conduct their respective present and proposed businesses and each is in compliance with and
has not violated, in any material respect, (i) any judgments, orders, decrees, injunctions or writs applicable to the Company or Subsidiary,
or (ii) any applicable provisions of any laws, statutes, ordinances, rules or regulations applicable to the conduct of their respective
business.

 

5.
Covenants.

 

5.1.
Best Efforts. Each party shall use its best efforts to timely satisfy each of the conditions to be satisfied by it as provided
in Section 6 of this Agreement.

 

5.2.
Use of Proceeds. The Company will use the proceeds from the sale of the Shares for general corporate purposes.

 

    	4

    	 

    

 

6.
Conditions of Parties’ Obligations.

 

6.1.
Conditions of the Purchasers’ Obligations at the Closing. The obligations of Purchaser under Section 1 hereof are subject
to the fulfillment, prior to the Closing, of all of the following applicable conditions, any of which may be waived in whole or in part
by Purchaser in its absolute discretion.

 

(a)
Representations and Warranties. The representations and warranties of the Company contained in this Agreement and in any certificate,
if any, or other writing, if any, delivered by the Company pursuant hereto shall have been true and correct as of the date of first set
forth above.

 

(b)
Performance. The Company shall have performed and complied in all material respects with all agreements, obligations and conditions
contained in this Agreement that are required to be performed or complied by it on or before the Closing Date.

 

(c)
Qualification Under State Securities Laws. All registrations, qualifications, permits and approvals, if any, required under applicable
state securities laws shall have been obtained for the lawful execution, delivery and performance of this Agreement.

 

(d)
Consents and Waivers. The Company shall have obtained all consents or waivers necessary to execute and perform its obligations
under this Agreement. All corporate and other action and governmental filings necessary to effectuate the terms of this Agreement and
other agreements and instruments executed and delivered by the Company in connection herewith shall have been made or taken, and no Material
Adverse Effect has occurred with respect to the operation of the Company’s business.

 

6.2.
Conditions of the Company’s Obligations. The obligations of the Company under Section 1 hereof are subject to the fulfillment
prior to or on the Closing Date of all of the following conditions, any of which may be waived in whole or in part by the Company: (i)
Purchaser at the Closing shall have performed all of its obligations hereunder required to be performed by it at or prior to the Closing,
and (ii) the representations and warranties of Purchaser at the Closing contained in this Agreement shall be true and correct.

 

7.
Transfer Restrictions. Purchaser understands that the Company may, as a condition to the transfer of any of the Shares, require
that the request for transfer be accompanied by an opinion of counsel reasonably satisfactory to the Company, to the effect that the
proposed transfer does not result in a violation of the Securities Act, unless such transfer is covered by an effective registration
statement or by Rule 144 or Rule 144A under the Securities Act; provided, however, that an opinion of counsel shall not
be required for a transfer by Purchaser if transferring to such Purchaser’s family member or trust for the benefit of an individual
Purchaser; provided, further, that (i) the transferee in each case agrees to be subject to the restrictions in this Section
7 and provides the Company with a representation letter containing substantially the same representations and warranties in Sections
3.3 through 3.9 hereof, (ii) the Company satisfies itself that the number of transferees is sufficiently limited and (iii) in the case
of transferees that are partners or limited liability company members, the transfer is for no consideration. It is understood and agreed
that notwithstanding the fact that the certificates evidencing any Shares may not bear legends restricting transfer under the Securities
Act of 1933, the Shares are nevertheless restricted securities and may only be sold pursuant to an effective registration statement or
under Rule 144 or Rule 144A under the Securities Act.

 

    	5

    	 

    

 

8.
Reserved.

 

9.
Definitions. Unless the context otherwise requires, the terms defined in this Section 9 shall have the meanings specified for
all purposes of this Agreement.

 

Except
as otherwise expressly provided, all accounting terms used in this Agreement, whether or not defined in this Section 9, shall be construed
in accordance with GAAP. If the Company has one or more Subsidiaries, such accounting terms shall be determined on a consolidated basis
for the Company and each of its Subsidiaries, and the financial statements and other financial information to be furnished by the Company
pursuant to this Agreement shall be consolidated and presented with consolidating financial statements of the Company and each of its
Subsidiaries.

 

“Affiliate”
shall have the meaning ascribed to such term in Rule 12b-2 of the General Rules and Regulations under the Exchange Act.

 

“Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized
or required by law to remain closed.

 

“Code”
means the Internal Revenue Code of 1986, as amended.

 

“Commission”
means the Securities and Exchange Commission.

 

“Encumbrances”
means a lien, claim, judgment, charge, mortgage, security interest, pledge, escrow, equity or other encumbrance other than restrictions
pursuant to any applicable state or federal securities laws.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“FINRA”
means the Financial Industry Regulatory Authority.

 

“GAAP”
means U.S. generally accepted accounting principles consistently applied.

 

“Governmental
Entity” means any national, federal, state, municipal, local, territorial, foreign or other government or any department,
commission, board, bureau, agency, regulatory authority or instrumentality thereof, or any court, judicial, administrative or arbitral
body or public or private tribunal.

 

    	6

    	 

    

 

“Indebtedness”
means (1) all indebtedness for borrowed money, (2) all obligations issued, undertaken or assumed as the deferred purchase price of property
or services (including, without limitation, “capital leases” in accordance with GAAP) (other than trade payables entered
into in the ordinary course of business), (3) all reimbursement or payment obligations with respect to letters of credit, surety bonds
and other similar instruments, (4) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations
so evidenced incurred in connection with the acquisition of property, assets or businesses, (5) all indebtedness created or arising under
any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property or assets
acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement in the
event of default are limited to repossession or sale of such property), (6) all monetary obligations under any leasing or similar arrangement
which, in connection with GAAP, consistently applied for the periods covered thereby, is classified as a capital lease, and (7) all indebtedness
referred to in clauses (1) through (6) above secured by (or for which the holder of such Indebtedness has an existing right, contingent
or otherwise, to be secured by) any mortgage, lien, pledge, charge, security interest or other encumbrance upon or in any property or
assets (including accounts and contract rights) owned by any Person, even though the Person which owns such assets or property has not
assumed or become liable for the payment of such indebtedness.

 

“Lien”
means any mortgage, lien, pledge, charge, security interest or other similar encumbrance upon or in any property or assets (including
accounts and contract rights).

 

“Majority
Subsidiary” means any corporation, association trust, limited liability company, partnership, joint venture or other business
association or entity, at least 50% of the outstanding voting securities of which are at the time owned or record by the Company.

 

“Material
Adverse Effect” means any (i) adverse effect on the issuance or validity of the Shares or the transactions contemplated
hereby or on the ability of the Company to perform its obligations under this Agreement, or (ii) material adverse effect on the condition
(financial or otherwise), properties, assets, liabilities, business or operations of the Company.

 

“Material
Contract” means all written and oral contracts, agreements, deeds, mortgages, leases, subleases, licenses, instruments,
notes, commitments, commissions, undertakings, arrangements and understandings which are required to be filed as exhibits by the Company
with the Commission pursuant to Items 601(b)(2), 601(b)(4) or 601(b)(10) of Regulation S-K promulgated by the Commission.

 

“Person”
means and includes all natural persons, corporations, business trusts, associations, companies, partnerships, joint ventures, limited
liability companies and other entities and governments and agencies and political subdivisions.

 

    	7

    	 

    

 

“Permitted
Liens” means any Lien disclosed in an SEC Report and: (1) any Lien for taxes not yet due or delinquent or being contested
in good faith by appropriate proceedings for which adequate reserves have been established in accordance with GAAP, (2) any statutory
Lien arising in the ordinary course of business by operation of law with respect to a liability that is not yet due or delinquent, (3)
any Lien created by operation of law, such as materialmen’s liens, mechanics’ liens and other similar liens, arising in the
ordinary course of business with respect to a liability that is not yet due or delinquent or that are being contested in good faith by
appropriate proceedings, (4) Liens (a) upon or in any equipment acquired or held by the Company or any of its Subsidiaries to secure
the purchase price of such equipment or indebtedness incurred solely for the purpose of financing the acquisition or lease of such equipment,
or (b) existing on such equipment at the time of its acquisition, provided that the Lien is confined solely to the property so acquired
and improvements thereon, and the proceeds of such equipment, (5) Liens incurred in connection with the extension, renewal or refinancing
of the indebtedness secured by Liens of the type described in clauses (1) through (4) above, provided that any extension, renewal or
replacement Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the Indebtedness being
extended, renewed or refinanced does not increase, (6) leases, subleases, licenses and sublicenses granted to others in the ordinary
course of the Company’s business, not interfering in any material respect with the business of the Company and its Subsidiaries
taken as a whole, and (7) Liens in favor of customs and revenue authorities arising as a matter of law to secure payments of custom duties
in connection with the importation of goods.

 

“Purchaser”
has the meaning assigned to it in the introductory paragraph of this Agreement and shall include any Affiliates of the Purchaser.

 

“Trading
Market” means the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date
in question: the NYSE Amex Equities, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market, the New York
Stock Exchange or the OTC Markets Group Inc.

 

10.
Enforcement.

 

10.1.
Cumulative Remedies. None of the rights, powers or remedies conferred upon the Purchaser on the one hand or the Company on the
other hand shall be mutually exclusive, and each such right, power or remedy shall be cumulative and in addition to every other right,
power or remedy, whether conferred by this Agreement or now or hereafter available at law, in equity, by statute or otherwise.

 

10.2.
No Implied Waiver. Except as expressly provided in this Agreement, no course of dealing between the Company and the Purchasers
or any other holder of shares of Common Stock and no delay in exercising any such right, power or remedy conferred hereby or now or hereafter
existing at law in equity, by statute or otherwise, shall operate as a waiver of, or otherwise prejudice, any such right, power or remedy.

 

11.
Confidentiality. Except as otherwise agreed in writing by the Company, Purchaser agrees that it will use reasonable care to keep
confidential and not disclose, divulge, or use for any purpose (other than to monitor its investment in the Company) any confidential
information obtained from the Company pursuant to the terms of this Agreement (including notice of the Company’s intention to file
a registration statement), unless Purchaser can demonstrate that such confidential information (a) is known or becomes known to the public
in general (other than as a result of a breach of this Section 11 by the Purchaser), (b) is or has been made known or disclosed to Purchaser
by a third party without knowledge by Purchaser of any obligation of confidentiality such third party owes to the Company with respect
to the information, or (c) was known to Purchaser prior to disclosure to Purchaser by the Company; provided, however, that
Purchaser may disclose confidential information to its attorneys, accountants, consultants, and other professionals to the extent necessary
to obtain their services in connection with monitoring its investment in the Company provided that Purchaser informs such person that
such information is confidential and directs such person to maintain the confidentiality of such information. Notwithstanding anything
to the contrary herein, the confidentiality obligations of this Section 11 shall survive the termination of this Agreement.

 

    	8

    	 

    

 

12.
Miscellaneous.

 

12.1.
Waivers and Amendments. Upon the approval of the Company and the written consent of Purchaser, the obligations of the Company
and the rights of Purchaser under this Agreement may be waived (either generally or in a particular instance, either retroactively or
prospectively and either for a specified period of time or indefinitely). Neither this Agreement, nor any provision hereof, maybe changed,
waived, discharged or terminated orally or by course of dealing, but only by an instrument in writing executed by the Company and Purchaser.

 

12.2.
Notices. All notices, requests, consents, and other communications under this Agreement shall be in writing and shall be deemed
delivered (a) when delivered, if delivered personally, (b) four business days after being sent by registered or certified mail, return
receipt requested, postage prepaid; (c) one business day after being sent via a reputable international overnight courier service guaranteeing
next business day delivery, or (d) when receipt is acknowledged, in the case of facsimile, in each case to the intended recipient as
set forth below.

 

If
to the Company:

 

Sunnyside
Bancorp, Inc.

56
Main Street

Irvington,
NY 10533

Attention:
Fredrick Schulman

Email:_
fschulman@sunnysidefederal.com

 

with
additional copy to:

 

Hinman,
Howard & Kattell

707
Westchester Avenue, Suite 407

White
Plains, NY 10604

Attention:
Nir Gozal

Email:
ngozal@hhk.com

 

and

 

Thompson
LLP

75
Broad Street, Suite 2120

New
York, NY 10004

Attention:
Ben Thompson

Email:
bthompson@thomplegal.com

 

    	9

    	 

    

 

If
to Purchaser:

 

Vecta
Partners LLC

One
World Trade Center, Suite 8500

New
York, NY 10006

Attention:
Mark Silber

Email:
mark@rhodiumre.com

 

or
at such other address as the Company or Purchaser each may specify by written notice to the other parties hereto in accordance with this
Section 12.2.

 

12.3.
No Waivers. No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof
nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power
or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

 

12.4.
Successors and Assigns. All the terms and provisions of this Agreement shall be binding upon and inure to the benefit of and be
enforceable by the respective parties hereto, the successors and permitted assigns of Purchaser and the successors of the Company, whether
so expressed or not. None of the parties hereto may assign its rights or obligations hereof without the prior written consent of the
Company, except that a Purchaser may, without the prior consent of the Company, assign its rights to purchase the Shares hereunder to
any of its Affiliates (provided such Affiliate agrees to be bound by the terms of this Agreement and makes the same representations and
warranties set forth in Section 3 hereof). This Agreement shall not inure to the benefit of or be enforceable by any other Person.

 

12.5.
Headings. The headings of the Sections and paragraphs of this Agreement have been inserted for convenience of reference only and
do not constitute a part of this Agreement.

 

12.6.
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without
regard to its conflict of law principles.

 

12.7.
Jurisdiction. Any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in
connection with, this Agreement or the transactions contemplated hereby shall be brought in any federal or state court located in the
City and County of New York, New York, and each of the parties hereby consents to the jurisdiction of such courts (and of the appropriate
appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any
objection which it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that
any such suit, action or proceeding which is brought in any such court has been brought in an inconvenient forum. Process in any such
suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court.
Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 12.2 shall be deemed effective
service of process on such party.

 

    	10

    	 

    

 

12.8.
Waiver of Jury Trial. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, PURCHASER AND THE COMPANY HEREBY
WAIVE AND COVENANT THAT NEITHER THE COMPANY NOR PURCHASER WILL ASSERT, ANY RIGHT TO TRIAL BY JURY ON ANY ISSUE IN ANY PROCEEDING, WHETHER
AS PLAINTIFF, DEFENDANT OR OTHERWISE, IN RESPECT OF ANY ISSUE, CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON
THIS AGREEMENT, ANY OTHER AGREEMENT OR THE SUBJECT MATTER HEREOF OR THEREOF OR IN ANY WAY CONNECTED WITH, RELATED OR INCIDENTAL TO THE
DEALINGS OF PURCHASER AND THE COMPANY HEREUNDER OR THEREUNDER, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER IN
TORT OR CONTRACT OR OTHERWISE. The Company acknowledges that it has been informed by Purchaser that the provisions of this Section 12.8
constitute a material inducement upon which Purchaser is relying and will rely in entering into this Agreement. Purchaser or the Company
may file an original counterpart or a copy of this Section 12.8 with any court as written evidence of the consent of Purchaser and the
Company to the waiver of the right to trial by jury.

 

12.9.
Counterparts; Effectiveness. This Agreement may be executed in any number of counterparts and by different parties hereto in separate
counterparts, with the same effect as if all parties had signed the same document. All such counterparts (including counterparts delivered
by facsimile or other electronic format) shall be deemed an original, shall be construed together and shall constitute one and the same
instrument. This Agreement shall become effective when each party hereto shall have received counterparts hereof signed by all of the
other parties hereto.

 

12.10.
Entire Agreement. This Agreement contain the entire agreement among the parties hereto with respect to the subject matter hereof
and thereof and, except as set forth below, such agreements supersede and replace all other prior agreements, written or oral, among
the parties hereto with respect to the subject matter hereof and thereof. Notwithstanding the foregoing, this Agreement shall not supersede
any confidentiality or other non-disclosure agreements that may be in place between the Company and Purchaser.

 

12.11.
Severability. If any provision of this Agreement shall be found by any court of competent jurisdiction to be invalid or unenforceable,
the parties hereby waive such provision to the extent that it is found to be invalid or unenforceable. Such provision shall, to the maximum
extent allowable by law, be modified by such court so that it becomes enforceable, and, as modified, shall be enforced as any other provision
hereof, all the other provisions hereof continuing in full force and effect.

 

[Signature
page follows]

 

    	11

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Subscription Agreement to be duly executed as of the day and year first written
above.

 

	 	THE
    COMPANY
	 	 
	 	Sunnyside
                                            Bancorp, Inc.

	 	 	 
	 	By:	/s/
                                            Fredrick Schulman

	 	Name:	Fredrick
    Schulman
	 	Title:	Chief
    Executive Officer 

 

[PURCHASER’S
SIGNATURE PAGE SEPARATELY ATTACHED]

 

[Subscription
Agreement – Company Signature Page]

 

    	12

    	 

    

 

PURCHASER
SIGNATURE PAGE

 

The
undersigned Purchaser hereby executes the Subscription Agreement with Sunnyside Bancorp, Inc. (the “Company”) and
hereby authorizes this signature page to be attached to a counterpart of such document executed by a duly authorized officer of the Company.

 

	Name
    of Purchaser:	 	VECTA
    PARTNERS LLC
	(PLEASE
    TYPE OR PRINT)	 	 
	 	 	 
	Signatory
    of Authorized Signatory	 	 
	of
    Purchaser:	 	/s/
    Mark Silber
	 	 	 
	Name
    of Authorized Signatory:	 	Mark
    Silber
	 	 	 
	Title
    of Authorized Signatory:	 	Sole
    Member and Manager
	 	 	 
	Number
    of Shares to be Purchased:	 	222,222
	 	 	 
	Price
    Per Share:	 	$20.25
	 	 	 
	Purchase
    Price:	 	$4,500,000
	 	 	 
	Address:	 	One
    World Trade Center, Suite 8500
	 	 	New
    York, NY 10006
	 	 	 
	Email:	 	mark@rhodiumre.com

 

[Subscription
Agreement – Purchaser Signature Page]

 

    	13

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