SEC Contract Filing

Filing Date: 2016-06-30

Document Content:
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>d219985dex101.htm
<DESCRIPTION>EX-10.1
<TEXT>
<HTML><HEAD>
<TITLE>EX-10.1</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.1 </B></P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>EXECUTION VERSION </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>SUBORDINATED NOTE PURCHASE AGREEMENT </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This SUBORDINATED NOTE PURCHASE AGREEMENT (this &#147;<U>Agreement</U>&#148;) is dated as of June&nbsp;30, 2016, and is made by and among
Franklin Financial Network, Inc., a Tennessee corporation (&#147;<U>Company</U>&#148;), and the several purchasers of the Subordinated Notes (each a &#147;<U>Purchaser</U>&#148; and collectively, the &#147;<U>Purchasers</U>&#148;). </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>RECITALS </U></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS, </B>Company has requested that the Purchasers purchase from Company $20,000,000 in aggregate principal amount of Subordinated
Notes (as defined herein), which aggregate amount is intended to qualify as Tier 2 Capital (as defined herein). </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS, </B>Company
has engaged Stephens Inc. as its exclusive placement agent (&#147;<U>Placement Agent</U>&#148;) for the offering of the Subordinated Notes. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS, </B>each of the Purchasers is an institutional &#147;accredited investor&#148; as such term is contemplated by Rule 501 of
Regulation D (&#147;<U>Regulation D</U>&#148;) promulgated under the Securities Act (as defined below), as well as a &#147;qualified institutional buyer&#148; as such term is defined in Rule 144A promulgated under the Securities Act. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS, </B>the sale of the Subordinated Notes by Company is being made pursuant to Rule 506(b) of Regulation D. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>WHEREAS, </B>each Purchaser is willing to purchase from Company a Subordinated Note in the principal amount set forth on the signature page
to this Agreement executed by such Purchaser (the &#147;<U>Subordinated Note Amount</U>&#148;) in accordance with the terms, subject to the conditions and in reliance on, the recitals, representations, warranties, covenants and agreements set forth
herein and in the Subordinated Notes. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>NOW, THEREFORE, </B>in consideration of the mutual covenants, conditions and agreements herein
contained and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto hereby agree as follows: </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>AGREEMENT </U></B></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B>1.
<U>DEFINITIONS</U>. </B> </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B>1.1 <U>Defined Terms</U>.</B> The following capitalized terms generally used in this Agreement and in the
Subordinated Notes have the meanings defined or referenced below. Certain other capitalized terms used only in specific sections of this Agreement may be defined in such sections. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;<U>Affiliate(s)</U>&#148; means, (i)&nbsp;with respect to any Person, such Person&#146;s immediate family members, partners, members or
parent and subsidiary corporations, and any other Person directly or indirectly controlling, controlled by, or under common control with said Person and their respective Affiliates, and (ii)&nbsp;with respect to Company, shall include any Person
beneficially owning or holding, directly or indirectly, ten percent (10%)&nbsp;or more of any class of voting or equity interest of Company or any Subsidiary of Company or any Person of which Company and its Subsidiaries beneficially own or hold, in
the aggregate, directly or indirectly, ten percent (10%)&nbsp;or more of any class of voting or equity interests. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;<U>Bank</U>&#148;
means Franklin Synergy Bank, a Tennessee state bank and wholly owned subsidiary of Company. </P>
 <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">1 </P>

<p Style='page-break-before:always'>
<HR SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>EXECUTION VERSION </B></P>
<p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">&#147;<U>Bank Regulatory Authority(ies)</U>&#148; means the FDIC, the FRB, the Department of
Financial Institutions, the CFPB and any other federal or state bank regulatory authorities with jurisdiction over