If the securities being registered on this form are to be offered in connection with the formation of a holding company and
there is compliance with General Instruction G, check the following box. ☐
If this Form is filed to
register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same
offering. ☐
If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities
Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering: ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a
smaller reporting company. See the definitions of large accelerated filer, accelerated filer, non-accelerated filer, smaller reporting company and emergency growth company in Rule 12b-2 of
the Exchange Act.
If an emerging growth company, indicate by check mark if the registrant has elected not to use
the extended transition period for complying with any new or revised financial accounting standards provided pursuant to section 7(a)(2)(B) of the Securities Act. ☐
If applicable, place an X in the box to designate the appropriate rule provision relied upon in conducting this transaction:
LIST OF EXHIBITS
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Exhibit
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Description
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A
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Bank Merger Agreement
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B
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Form of Shareholder Support Agreement
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C
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Form of Claims Letter
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D
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Form of Restrictive Covenant Agreement
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AGREEMENT AND PLAN OF MERGER
THIS AGREEMENT AND PLAN OF MERGER
(this
Agreement
) is made and entered into as of May 18, 2017, by and among
Seacoast Banking Corporation of Florida
, a Florida corporation (
SBC
),
Seacoast National Bank
, a national banking association and wholly owned subsidiary of SBC (
SNB
and collectively with SBC,
Seacoast
),
NorthStar Banking Corporation
, a Florida corporation (
NorthStar
) and
NorthStar Bank
, a Florida chartered bank and wholly-owned subsidiary of NorthStar (the
Bank
and
collectively with NorthStar, the
Company
).
Preamble
WHEREAS,
the Boards of Directors of SBC and NorthStar have approved this Agreement and the transactions described herein and have
declared the same advisable and in the best interests of each of SBC and NorthStar and each of SBC and NorthStars shareholders;
WHEREAS,
this Agreement provides for the acquisition of NorthStar by SBC pursuant to the merger of NorthStar with and into SBC (the
Merger
) and the merger of the Bank with and into SNB (the
Bank Merger
) pursuant to the terms of the Plan of Merger and Merger Agreement between SNB and the Bank attached hereto as
Exhibit A
(the
Bank Merger Agreement
); and
WHEREAS,
concurrently with the execution and delivery of this Agreement, as a
condition and inducement to Seacoasts willingness to enter into this Agreement, (i) the Companys directors, (ii) certain of the Companys executive officers, and (iii) each beneficial holder of five percent
(5%) or more of the outstanding shares of NorthStar Common Stock, have executed and delivered to SBC an agreement in substantially the form of
Exhibit B
(the
Shareholder Support Agreement
), pursuant to which they have
agreed, among other things, subject to the terms of such Shareholder Support Agreement, to vote the shares of NorthStar Common Stock held of record by such Persons or as to which they otherwise have sole voting power to approve and adopt this
Agreement and the transactions contemplated hereby, including the Merger and the Bank Merger.
Certain terms used and not otherwise
defined in this Agreement are defined in Section 7.1.
NOW, THEREFORE
, in consideration of the above and the mutual
warranties, representations, covenants, and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as
follows:
ARTICLE 1
TRANSACTIONS AND TERMS OF MERGER
1.1
Merger
.
Subject to the terms and conditions of this Agreement, at the Effective Time (as defined in Section 1.4
herein), NorthStar shall be merged with and into SBC in accordance with the provisions of the FBCA. SBC shall be the surviving corporation (the
Surviving Corporation
) resulting from the Merger and the separate corporate existence
of NorthStar shall thereupon cease. SBC shall continue to be governed by the Laws of the State of Florida, and the separate corporate existence of SBC with all of its rights, privileges, immunities, powers and franchises shall continue unaffected by
the Merger.
1.2
Bank Merger
.
Prior to the Effective Time, the Boards of Directors of SNB and the Bank will execute the Bank
Merger Agreement. Subject to the terms and conditions of this Agreement and the Bank Merger Agreement, the Bank shall be merged with and into SNB in accordance with the provisions of 12 U.S.C. Section 215 and with the effect provided in 12
U.S.C. Section 215. SNB shall be the surviving bank (the
Surviving Bank
) resulting from the Bank Merger and the separate existence of the Bank shall thereupon cease.
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SNB shall continue to be governed by the Laws of the United States, and the separate existence of SNB with all of its rights, privileges, immunities, powers and franchises shall continue
unaffected by the Bank Merger. Subject to the satisfaction of the conditions to closing set forth in the Bank Merger Agreement, the Bank Merger shall occur immediately following the Merger unless otherwise determined by Seacoast in its sole
discretion.
1.3
Time and Place of Closing
.
Unless otherwise mutually agreed to by SBC and the Company, the closing of the
Merger (the
Closing
) shall take place in the offices of Alston & Bird LLP, One Atlantic Center, 1201 West Peachtree Street, Atlanta, Georgia 30309 at 10:00 a.m., Atlanta time, on the date when the Effective Time is to
occur (the
Closing Date
).
1.4
Effective Time
.
Subject to the terms and conditions of this Agreement, on
the Closing Date, the Parties will cause articles of merger to be filed with the Secretary of State of the State of Florida as provided in the FBCA (the
Articles of Merger
). The Merger shall take effect when the Articles of Merger
becomes effective (the
Effective Time
). Subject to the terms and conditions hereof, the Parties shall use their reasonable best efforts to cause the Effective Time to occur on a mutually agreeable date following the date on which
satisfaction or waiver of the conditions set forth in Article 5 has occurred (other than those conditions that by their nature are to be satisfied at the Closing, but subject to the fulfillment or waiver of those conditions).
1.5
Conversion of the NorthStar Common Stock
.
(a) At the Effective Time, in each case subject to Section 1.5(d) and excluding Dissenting Shares and subject to certain adjustments, by
virtue of the Merger and without any action on the part of the Parties or the holder thereof, each share of NorthStar Common Stock that is issued and outstanding immediately prior to the Effective Time shall be converted into the right to receive:
(i) the number of shares of SBC Common Stock that is equal to the Exchange Ratio (the
Stock Consideration
); and (ii) $2.40 per share of NorthStar Common Stock in cash (the
Cash Consideration
and,
together with the Stock Consideration, the
Merger Consideration
);
provided, however
, that in the event the conditions set forth in Section 5.2(i)(A) of this Agreement are not satisfied, Seacoast shall have the option
to adjust the Merger Consideration downward by an amount that equals the difference between the NorthStar Consolidated Tangible Shareholders Equity and the NorthStar Target Consolidated Tangible Shareholders Equity and waive the
satisfaction of such condition set forth in Section 5.2(i)(A) herein. At least ten (10) days prior to the Closing Date, the Company and Seacoast shall agree on a schedule setting forth the expected NorthStar Consolidated Tangible
Shareholders Equity amount as of the Closing Date. The consideration which all of NorthStar shareholders and option holders are entitled to receive pursuant to this Article 1 is referred to herein as the
Aggregate Merger
Consideration
.
(b) At the Effective Time, all shares of NorthStar Common Stock shall no longer be outstanding and shall
automatically be cancelled and retired and shall cease to exist as of the Effective Time, and each certificate or electronic book-entry previously representing any such shares of NorthStar Common Stock (the
NorthStar Certificates
)
shall thereafter represent only the right to receive the Merger Consideration and any cash in lieu of fractional shares pursuant to Section 1.5(c), and any Dissenting Shares shall thereafter represent only the right to receive applicable
payments as set forth in Section 2.3.
(c) Notwithstanding any other provision of this Agreement, each holder of shares of NorthStar
Common Stock exchanged pursuant to the Merger who would otherwise have been entitled to receive a fraction of a share of SBC Common Stock (after taking into account all the NorthStar Certificates delivered by such holder) shall receive, in lieu
thereof, cash (without interest) in an amount equal to such fractional part of a share of SBC Common Stock multiplied by the average closing price per share of SBC Common Stock on the NASDAQ Global Select Market for the five (5) trading day
period ending on the trading day preceding the Closing Date, less any applicable withholding Taxes. No such holder will be entitled to dividends, voting rights, or any other rights as a shareholder in respect of any fractional shares.
(d) If, prior to the Effective Time, the issued and outstanding shares of SBC Common Stock or NorthStar Common Stock shall have been
increased, decreased, changed into or exchanged for a different
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number or kind of shares or securities as a result of a reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split, or other similar change in
capitalization, then an appropriate and proportionate adjustment shall be made to the Stock Consideration.
(e) Each share of NorthStar
Common Stock issued and outstanding immediately prior to the Effective Time and owned by any of the Parties or their respective Subsidiaries (in each case other than shares of NorthStar Common Stock held on behalf of third parties) shall, by virtue
of the Merger and without any action on the part of the holder thereof, cease to be outstanding, shall be cancelled and retired without payment of any consideration therefore and shall cease to exist (together with the Dissenting Shares, the
Excluded Shares
).
1.6
SBC Common Stock
.
At and after the Effective Time, each share of SBC Common Stock
issued and outstanding immediately prior to the Effective Time shall remain an issued and outstanding share of SBC Common Stock and shall not be affected by the Merger.
1.7
NorthStar Equity Awards
.
NorthStar shall take all actions necessary (including delivering all required notices and obtaining
all necessary approvals and consents) to cause each NorthStar Equity Award issued and outstanding immediately prior to the Effective Time to be (a) vested in accordance with its terms, (b) exercised in accordance with its terms, and/or
(c) terminated, so that no NorthStar Equity Awards shall be outstanding as of the Effective Time. If NorthStar Common Stock is issued to holders of NorthStar Equity Awards as a result of such vesting, exercise or termination, such shares of the
NorthStar Common Stock shall be treated as all other shares of the NorthStar Common Stock under this Agreement. Each NorthStar Equity Award which is an option to purchase NorthStar Common Stock and which is not exercised and which is terminated
immediately prior to the Effective Time pursuant to this Section 1.7, shall cease to be outstanding and shall be converted into the right to promptly receive from SBC following the Effective Time an amount in cash, without interest, equal to
the product of (x) the aggregate number of shares of NorthStar Common Stock subject to such NorthStar Equity Award immediately prior to its termination,
multiplied by
(y) the excess, if any, of $16.00 over the exercise price per
share of the NorthStar Equity Award. Prior to the Effective Time, NorthStar shall take all actions necessary to terminate the NorthStar Stock Plans as of the Effective Time and to cause the provisions in any other NorthStar Benefit Plan providing
for the issuance, transfer or grant of any capital stock of NorthStar or any interest in respect of any capital stock of NorthStar to terminate and be of no further force and effect as of the Effective Time, and NorthStar shall ensure that following
the Effective Time no person who was, immediately prior to the Effective Time, a holder of any NorthStar Equity Award or a participant in any NorthStar Stock Plan or other NorthStar Benefit Plan, shall have any right thereunder to acquire any
capital stock of SBC, SNB, NorthStar or the Bank, except as provided in Section 1.5 of this Agreement with respect to NorthStar Common Stock which such person received or became entitled to receive in accordance with the vesting or exercise of
such NorthStar Equity Award prior to the Effective Time.
1.8
Organizational Documents of Surviving Corporation; Directors and
Officers
.
(a) The Organizational Documents of SBC in effect immediately prior to the Effective Time shall be the Organizational
Documents of the Surviving Corporation after the Effective Time until otherwise amended or repealed.
(b) The directors of SBC immediately
prior to the Effective Time shall be the directors of the Surviving Corporation as of the Effective Time. The officers of SBC immediately prior to the Effective Time shall be the officers of the Surviving Corporation as of the Effective Time, until
the earlier of their resignation or removal or otherwise ceasing to be an officer or until their respective successors are duly elected and qualified, as the case may be.
1.9
Tax Consequences
.
It is the intention of the Parties to this Agreement that the Merger and the Bank Merger, for federal
income Tax purposes, shall qualify as reorganizations within the meaning of Section 368(a) of the Internal Revenue Code and that this Agreement shall constitute a plan of reorganization for purposes of
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Sections 354 and 361 of the Internal Revenue Code. The business purpose of the Merger and the Bank Merger is to combine two financial institutions to create a strong commercial banking franchise.
SBC shall have the right to revise the structure of the Merger and/or the Bank Merger contemplated by this Agreement in order to assure that the Merger and the Bank Merger, for federal income Tax purposes shall qualify as a
reorganization within the meaning of Section 368(a) of the Internal Revenue Code or to substitute an interim corporation that is wholly owned by SBC (
Interim
), which interim corporation may merge with and into
NorthStar,
provided
, that no such revision to the structure of the Merger or the Bank Merger shall (a) result in any changes in the amount or type of the consideration that the holders of shares of NorthStar Common Stock are entitled to
receive under this Agreement or (b) adversely affect the Tax treatment of the Merger and/or the Bank Merger with respect to NorthStar shareholders as a result of the transactions contemplated by this Agreement. SBC may exercise this right of
revision by giving written notice to NorthStar in the manner provided in Section 7.9, which notice shall be in the form of an amendment to this Agreement.
ARTICLE 2
DELIVERY
OF MERGER CONSIDERATION
2.1
Exchange Procedures
.
(a)
Delivery of Transmittal Materials
. Prior to the Effective Time, SBC shall appoint an exchange agent (the
Exchange and
Paying Agent
) to act as exchange agent hereunder. At or immediately prior to the Effective Time, SBC shall deposit, or cause to be deposited, with the Exchange and Paying Agent (i) SBC Common Stock issuable pursuant to
Section 1.5(a) in book-entry form equal to the aggregate Stock Consideration (excluding any fractional share consideration), and (ii) cash in immediately available funds in an amount sufficient to pay the aggregate Cash Consideration,
fractional share consideration and any dividends under Section 2.1(d). As promptly as practicable after the Effective Time (and within five Business Days), the Exchange and Paying Agent shall send to each former holder of record of shares of
NorthStar Common Stock, including holders of NorthStar Equity Awards who received or became entitled to receive NorthStar Common Stock which in accordance with the vesting or exercise of such NorthStar Equity Award prior to the Effective Time as
provided in Section 1.7, but excluding the holders, if any, of Dissenting Shares, immediately prior to the Effective Time transmittal materials for use in exchanging such holders NorthStar Certificates for the Merger Consideration (which
shall specify that delivery shall be effected, and risk of loss and title to the NorthStar Certificates shall pass, only upon proper delivery of such NorthStar Certificates (or effective affidavit of loss in lieu thereof as provided in
Section 2.1(e)) to the Exchange and Paying Agent).
(b)
Delivery of Merger Consideration
. After the Effective Time, following
the surrender of a NorthStar Certificate to the Exchange and Paying Agent (or effective affidavit of loss in lieu thereof as provided in Section 2.1(e)) in accordance with the terms of the letter of transmittal, duly executed, the holder of
such NorthStar Certificate shall be entitled to receive in exchange therefor the Merger Consideration in respect of the shares of the NorthStar Common Stock represented by its NorthStar Certificate or Certificates. If any portion of the Merger
Consideration is to be paid to a Person other than the Person in whose name a NorthStar Certificate so surrendered is registered, it shall be a condition to such payment that such NorthStar Certificate shall be properly endorsed or otherwise be in
proper form for transfer, and the Person requesting such payment shall pay to the Exchange and Paying Agent any transfer or other similar Taxes required as a result of such payment to a Person other than the registered holder of such NorthStar
Certificate, or establish to the reasonable satisfaction of the Exchange and Paying Agent that such Tax has been paid or is not payable. Payments to holders of Dissenting Shares shall be made as required by the FBCA.
(c)
Payment of Taxes
. The Exchange and Paying Agent (or, after the agreement with the Exchange and Paying Agent is terminated, SBC)
shall be entitled to deduct and withhold from the Merger Consideration (including cash in lieu of fractional shares of SBC Common Stock) otherwise payable pursuant to this Agreement to any holder of the NorthStar Common Stock such amounts as the
Exchange and Paying Agent or SBC, as the
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case may be, is required to deduct and withhold under the Internal Revenue Code, or any provision of state, local or foreign Tax law, with respect to the making of such payment. To the extent the
amounts are so withheld by the Exchange and Paying Agent or SBC, as the case may be, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to the holder of shares of the NorthStar Common Stock in respect of
whom such deduction and withholding was made by the Exchange and Paying Agent or SBC, as the case may be.
(d)
Return of Merger
Consideration to SBC
. At any time upon request by SBC, SBC shall be entitled to require the Exchange and Paying Agent to deliver to it any remaining portion of the Merger Consideration not distributed to holders of the NorthStar Certificates
that was deposited with the Exchange and Paying Agent (the
Exchange Fund
) (including any interest received with respect thereto and other income resulting from investments by the Exchange and Paying Agent, as directed by SBC), and
holders shall be entitled to look only to SBC (subject to abandoned property, escheat or other similar laws) with respect to the Merger Consideration, any cash in lieu of fractional shares of SBC Common Stock and any dividends or other distributions
with respect to SBC Common Stock payable upon due surrender of their NorthStar Certificates, without any interest thereon. Notwithstanding the foregoing, neither SBC nor the Exchange and Paying Agent shall be liable to any holder of a NorthStar
Certificate for Merger Consideration (or dividends or distributions with respect thereto) or cash from the Exchange Fund in each case delivered to a public official pursuant to any applicable abandoned property, escheat or similar law.
(e)
Lost Certificates
. In the event any NorthStar Certificates shall have been lost, stolen or destroyed, upon the making of an
affidavit of that fact by the Person claiming such NorthStar Certificate(s) to be lost, stolen or destroyed and, if required by SBC or the Exchange and Paying Agent, the posting by such Person of a bond in such sum as SBC may reasonably direct as
indemnity against any claim that may be made against NorthStar or SBC with respect to such NorthStar Certificate(s), the Exchange and Paying Agent will issue the Merger Consideration deliverable in respect of the shares of NorthStar Common Stock
represented by such lost, stolen or destroyed NorthStar Certificates.
2.2
Rights of Former NorthStar Shareholders
.
On or
before the Closing Date, the stock transfer books of NorthStar shall be closed as to holders of NorthStar Common Stock and no transfer of NorthStar Common Stock by any such holder shall thereafter be made or recognized. Until surrendered for
exchange in accordance with the provisions of Section 2.1, each NorthStar Certificate (other than NorthStar Certificates representing Excluded Shares) shall from and after the Effective Time represent for all purposes only the right to receive
the Merger Consideration in exchange therefor and any cash in lieu of fractional shares of SBC Common Stock to be issued or paid in consideration therefor upon surrender of such certificate in accordance with Section 1.5(c), and any dividends
or distributions to which such holder is entitled pursuant to this Article 2. No dividends or other distributions with respect to SBC Common Stock with a record date after the Effective Time shall be paid to the holder of any unsurrendered NorthStar
Certificate with respect to the shares of SBC Common Stock represented thereby, and no cash payment in lieu of fractional shares shall be paid to any such holder pursuant to Section 1.5(c), and all such dividends, other distributions and cash
in lieu of fractional shares of SBC Common Stock shall be paid by SBC to the Exchange and Paying Agent and shall be included in the Exchange Fund, in each case until the surrender of such NorthStar Certificate in accordance with this Article 2.
Subject to the effect of applicable abandoned property, escheat or similar laws, following surrender of any such NorthStar Certificate there shall be paid to the holder of a SBC stock certificate representing whole shares of SBC Common Stock issued
in exchange therefor, without interest, (i) at the time of such surrender, the amount of dividends or other distributions, if applicable, with a record date after the Effective Time theretofore paid with respect to such whole shares of SBC
Common Stock and the amount of any cash payable in lieu of a fractional share of SBC Common Stock to which such holder is entitled pursuant to Section 1.5(c), and (ii) at the appropriate payment date, the amount of dividends or other
distributions, if applicable, with a record date after the Effective Time but prior to such surrender and with a payment date subsequent to such surrender payable with respect to such whole shares of SBC Common Stock. SBC shall make available to the
Exchange and Paying Agent cash for these purposes, if necessary.
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2.3
Dissenters Rights
.
Any Person who otherwise would be deemed a holder of
Dissenting Shares (a
Dissenting Shareholder
) shall not be entitled to receive the applicable Merger Consideration with respect to the Dissenting Shares unless and until such Person shall have failed to perfect or shall have
effectively withdrawn or lost such holders right to dissent from the Merger under the FBCA. Each Dissenting Shareholder shall be entitled to receive only the payment provided by the provisions of Sections 607.1301 through 607.1333 of the
FBCA with respect to shares of NorthStar Common Stock owned by such Dissenting Shareholder. NorthStar shall give SBC (i) prompt notice of any written demands for appraisal, attempted withdrawals of such demands, and any other instruments served
pursuant to applicable Law received by NorthStar relating to shareholders rights of appraisal and (ii) the opportunity to direct all negotiations and proceedings with respect to demand for appraisal under the FBCA. NorthStar shall not,
except with the prior written consent of SBC, voluntarily make any payment with respect to any demands for appraisals of Dissenting Shares, offer to settle or settle any such demands or approve any withdrawal of any such demands. Any payments made
in respect of Dissenting Shares shall be made by SBC as the Surviving Corporation.
ARTICLE 3
REPRESENTATIONS AND WARRANTIES
3.1
Company Disclosure Letter
.
Prior to the execution and delivery of this Agreement, the Company has delivered to Seacoast a
letter (the
Company Disclosure Letter
) setting forth, among other things, items the disclosure of which is necessary or appropriate either in response to an express disclosure requirement contained in a provision hereof or as an
exception to one or more of the Companys representations or warranties contained in this Article 3 or to one or more of its covenants contained in Article 4;
provided
, that (a) no such item is required to be set forth in the
Company Disclosure Letter as an exception to any representation or warranty of the Company if its absence would not result in the related representation or warranty being deemed untrue or incorrect under the standard established by Section 3.2,
and (b) the mere inclusion of an item in the Company Disclosure Letter as an exception to a representation or warranty shall not be deemed an admission by the Company that such item represents a material exception or fact, event or circumstance
or that such item is reasonably likely to result in a Material Adverse Effect with respect to the Company. Any disclosures made with respect to a subsection of Section 3.3 shall be deemed to qualify any subsections of Section 3.3
specifically referenced or cross-referenced that contains sufficient detail to enable a reasonable Person to recognize the relevance of such disclosure to such other subsections. All representations and warranties of Seacoast shall be qualified by
reference to Seacoasts SEC Reports and such disclosures in any such SEC Reports or other publicly available documents filed with or furnished by Seacoast to the SEC or any other Governmental Authority prior to the date hereof (but excluding
any risk factor disclosures contained under the heading Risk Factors, any disclosure of risks included in any forward-looking statements disclaimer or any other statements that are similarly forward-looking in nature).
3.2
Standards
.
(a) No representation or warranty of any Party hereto contained in this Article 3 (other than the representations and warranties in
(i) Section 3.3(c) and 3.4(c), which shall be true and correct in all respects (except for inaccuracies that are
de minimis
in amount), and (ii) Sections 3.3(b)(i), 3.3(b)(ii), 3.3(d) and 3.4(b)(i), which shall be true and
correct in all material respects) shall be deemed untrue or incorrect, and no Party shall be deemed to have breached any of its representations or warranties, as a consequence of the existence or absence of any fact, circumstance or event unless
such fact, circumstance or event, individually or taken together in the aggregate with all other facts, circumstances or events inconsistent with such Partys representations or warranties contained in this Article 3, has had or is reasonably
likely to have a Material Adverse Effect on such Party;
provided
, that, for purposes of Sections 5.2(a) and 5.3(a) only, the representations and warranties which are qualified by references to material, Material Adverse
Effect or to the Knowledge of any Party shall be deemed not to include such qualifications.
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(b) Unless the context indicates specifically to the contrary, a
Material Adverse
Effect
on a Party shall mean any change, event, development, violation, inaccuracy or circumstance the effect, individually or in the aggregate, of which is or is reasonably likely to have, a material adverse impact on (i) the
executive management team, condition (financial or otherwise), property, business, assets (tangible or intangible) or results of operations or prospects of such Party taken as a whole or (ii) prevents or materially impairs, or would be
reasonably likely to prevent or materially impair, the ability of such Party to perform its obligations under this Agreement or to timely consummate the Merger, the Bank Merger, or the other transactions contemplated by this Agreement;
provided,
however
, that Material Adverse Effect shall not be deemed to include for purposes of (b)(i) above, (A) the impact of actions and omissions of a Party (or any of its subsidiaries) taken with the prior written consent of the other
Party in contemplation of the transactions contemplated hereby, (B) changes after the date of this Agreement in GAAP or regulatory accounting requirements for the financial services industry, (C) changes after the date of this Agreement in
laws, rules or regulations or interpretations of laws, rules or regulations by Governmental Authorities of general applicability to banks and their holding companies and (D) changes after the date of this Agreement in general economic or market
conditions in the United States or any state or territory thereof, in each case generally affecting banks and their holding companies, except to the extent with respect to clauses (B), (C) or (D) that the effect of such changes are
disproportionately adverse to the condition (financial or otherwise), property, business, assets (tangible or intangible), liabilities or results of operations of such Party and its Subsidiaries taken as a whole, as compared to other banks and their
holding companies. Similarly, unless the context indicates specifically to the contrary, a
Material Adverse Change
is an event, change or occurrence resulting in a Material Adverse Effect on such Party and its subsidiaries, taken
as a whole.
3.3
Representations and Warranties of the Company
.
Subject to and giving effect to Sections 3.1 and 3.2
and except as set forth in the Company Disclosure Letter, NorthStar and the Bank, jointly and severally, hereby represent and warrant to Seacoast as follows:
(a)
Organization, Standing, and Power
. Each Subsidiary of NorthStar is listed in
Section 3.3(a) of the Company Disclosure
Letter
. NorthStar and each of its Subsidiaries are duly organized, validly existing, and (as to corporations) are in good standing under the Laws of the jurisdiction of its formation. NorthStar and each of its Subsidiaries have the requisite
corporate power and authority to own, lease, and operate their properties and assets and to carry on their businesses as now conducted. NorthStar and each of its Subsidiaries are duly qualified or licensed to do business and in good standing in the
States of the United States and foreign jurisdictions where the character of their assets or the nature or conduct of their business requires them to be so qualified or licensed. NorthStar is a bank holding company within the meaning of the BHC Act.
The Bank is registered with the Federal Reserve Board as a Florida state non-member bank. The Bank is an insured depository institution as defined in the Federal Deposit Insurance Act and applicable regulations thereunder, its deposits
are insured by the Deposit Insurance Fund and all premiums and assessments required to be paid in connection therewith have been paid when due. No action for the revocation or termination of such deposit insurance is pending, or to the Knowledge of
NorthStar, threatened.
(b)
Authority; No Breach of Agreement
.
(i) NorthStar and the Bank each has the corporate power and authority necessary to execute, deliver, and perform its
obligations under this Agreement and to consummate the transactions contemplated hereby. The execution, delivery, and performance of this Agreement, and the consummation of the transactions contemplated hereby, have been duly and validly authorized
by all necessary corporate action (including valid authorization and adoption of this Agreement by its duly constituted Board of Directors and, in the case of the Bank, its sole shareholder), subject only to the NorthStar Shareholder Approval and
such regulatory approvals as are required by law. Subject to the NorthStar Shareholder Approval and assuming due authorization, execution, and delivery of this Agreement by each of SBC and SNB, this Agreement represents a legal, valid, and binding
obligation of each of NorthStar and the Bank enforceable against NorthStar and the Bank in accordance with its terms (except in all cases as such enforceability may
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be limited by (A) bankruptcy, insolvency, reorganization, moratorium, receivership, conservatorship, and other Laws affecting the enforcement of creditors rights generally or the
rights of creditors of insured depository institutions, and (B) except that the availability of the equitable remedy of specific performance or injunctive relief is subject to the discretion of the court before which any proceeding may be
brought).
(ii) As of the date hereof, NorthStars Board of Directors has (A) by the affirmative vote of all
directors voting, which constitute at least a majority of the entire Board of Directors of NorthStar, duly approved and declared advisable this Agreement and the Merger and the other transactions contemplated hereby, including the Bank Merger
Agreement and the Bank Merger; (B) determined that this Agreement and the transactions contemplated hereby, including the Bank Merger, are advisable and in the best interests of NorthStar and the holders of NorthStar Common Stock;
(C) resolved to recommend adoption of this Agreement, the Merger and the other transactions contemplated hereby, including the Bank Merger, to the holders of shares of NorthStar Common Stock (such recommendations being the
NorthStar
Directors Recommendation
); (D) directed that this Agreement be submitted to the holders of shares of the NorthStar Common Stock for their adoption; and (E) no Knowledge of any fact, event or circumstance that would cause
any beneficial holder of five percent (5%) or more of the outstanding shares of NorthStar Common Stock to vote against the adoption of this Agreement, the Merger and the other transactions contemplated hereby, including the Bank Merger.
(iii) The Banks Board of Directors has, by the affirmative vote of all directors voting, which constitutes at least a
majority of the entire Board of Directors of the Bank, duly approved and declared advisable the Bank Merger Agreement, the Bank Merger and the other transactions contemplated thereby.
(iv) Neither the execution and delivery of this Agreement or the Bank Merger Agreement by it nor the consummation by it of the
transactions contemplated hereby or thereby, nor compliance by it with any of the provisions hereof or thereof, will (A) violate, conflict with or result in a breach of any provision of its Organizational Documents, (B) constitute or
result in a Default under, or require any Consent pursuant to, or result in the creation of any Lien on any material assets of NorthStar or any of its Subsidiaries under any Contract or Permit, or (C) subject to receipt of the Regulatory
Consent and the expiration of any waiting period required by Law, violate any Law or Order applicable to NorthStar or its Subsidiaries or any of their respective material assets.
(v) Other than in connection or compliance with the provisions of the Securities Laws, and other than (A) the Regulatory
Consents, (B) notices to or filings with the Internal Revenue Service or the Pension Benefit Guaranty Corporation or both with respect to any Benefit Plans, (C) filing of the Articles of Merger with the Secretary of State of the State of
Florida as required by the FBCA and (D) as set forth in
Section 3.3(b)(v)(D) of the Company Disclosure Letter
, no order of, notice to, filing with, or Consent of, any Governmental Authority or other third party is necessary in
connection with the execution, delivery or performance of this Agreement and the consummation by NorthStar and the Bank of the Merger, the Bank Merger and the other transactions contemplated by this Agreement.
(c)
Capital Stock
. NorthStars authorized capital stock consists of (i) 7,500,000 shares of NorthStar Common Stock, of which,
as of the date of this Agreement, 1,928,100 shares are validly issued and outstanding, and (ii) 2,500,000 shares of NorthStar Preferred Stock, of which, as of the date of this Agreement, no shares are outstanding. Set forth in
Section 3.3(c) of the Company Disclosure Letter
is a true and complete schedule of all outstanding Rights to acquire shares of the NorthStar Common Stock, including grant date, vesting schedule, exercise price, expiration date and the
name of the holder of such Rights. As of the date hereof, there were 238,850 options outstanding for shares of NorthStar Common Stock granted and vested and unvested in accordance with the NorthStar Stock Plans and such restricted shares represent
all of the Rights issued under the NorthStar Stock Plans. Except as set forth in this Section 3.3(c) or in Section 3.3(c) of the Company Disclosure Letter, there are no shares of NorthStar Common Stock or other equity securities of
NorthStar outstanding and no outstanding Rights relating to NorthStar Common Stock, and no Person has any Contract or any right or privilege (whether pre-emptive or contractual) capable of becoming a Contract or Right for the purchase, subscription
or issuance of any securities of NorthStar. All of the outstanding shares of NorthStar Common Stock are duly and
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validly issued and outstanding and are fully paid and, except as expressly provided otherwise under applicable Law, nonassessable under the FBCA. None of the outstanding shares of NorthStar
Common Stock have been issued in violation of any preemptive rights of the current or past shareholders of NorthStar. There are no Contracts among NorthStar and its shareholders or by which NorthStar is bound with respect to the voting or transfer
of NorthStar Common Stock or the granting of registration rights to any holder thereof. All of the outstanding shares of NorthStar Common Stock and all Rights to acquire shares of NorthStar Common Stock have been issued in compliance with all
applicable federal and state Securities Laws. All issued and outstanding shares of capital stock of its Subsidiaries have been duly authorized and are validly issued, fully paid and nonassessable and have been issued in compliance with all legal
requirements and is not subject to any preemptive or similar rights. All of the outstanding shares of capital stock of its Subsidiaries are owned by NorthStar or a wholly-owned Subsidiary thereof, free and clear of all Liens. Neither NorthStar nor
any of its Subsidiaries has any direct or indirect ownership interest in any firm, corporation, bank, joint venture, association, partnership or other entity (other than the Bank and the Subsidiaries), nor are they under any current or prospective
obligation to form or participate in, provide funds to, make any loan, capital contribution, guarantee, credit enhancement or other investment in, or assume any liability or obligation of, any Person other than lending transactions which occur in
the ordinary course of business consistent with past practice. NorthStar does not have any outstanding bonds, debentures, notes or other obligations having the right to vote (or convertible into, or exchangeable or exercisable for, securities having
the right to vote) with the shareholders of NorthStar on any matter.
(d)
Financial Statements; Regulatory Reports
.
(i) NorthStar has delivered or made available (which shall include access to the following by electronic data room) to Seacoast
true and complete copies of (A) all monthly reports and financial statements of NorthStar and its Subsidiaries that were prepared for NorthStars or the Banks Board of Directors since December 31, 2015, including the NorthStar
Financial Statements; (B) the Annual Report of Bank Holding Companies to the Federal Reserve Board for the year ended December 31, 2016, of NorthStar and its Subsidiaries required to file such reports; (C) all call reports and
consolidated and parent company only financial statements, including all amendments thereto, made to the Federal Reserve Board and the FDIC since December 31, 2015 of NorthStar and its Subsidiaries required to file such reports; and
(D) NorthStars Annual Report to Shareholders for the year ended 2016 and all subsequent Quarterly Reports to Shareholders.
(ii) NorthStars Financial Statements, true and correct copies of which have been made available to Seacoast, have been
(and all financial statements to be delivered to Seacoast as required by this Agreement will be) prepared in accordance with GAAP applied on a consistent basis throughout the periods covered, except, in each case, as indicated in such statements or
in the notes thereto. NorthStars Financial Statements fairly present (and all financial statements to be delivered to Seacoast as required by this Agreement will fairly present) in all material respects the financial position, results of
operations, changes in shareholders equity and cash flows of NorthStar and its Subsidiaries as of the dates thereof and for the periods covered thereby (subject to, in the case of unaudited statements, recurring audit adjustments normal in
nature and amount). All call and other regulatory reports referred to above have been filed on the appropriate form and prepared in all material respects in accordance with such forms instructions and the applicable rules and regulations of
the regulating federal and/or state agency. As of the date of the latest balance sheet forming part of NorthStars Financial Statements (the
NorthStar Latest Balance Sheet
), none of NorthStar or its Subsidiaries has had, nor
are any of such entities assets subject to, any material liability, commitment, indebtedness or obligation (of any kind whatsoever, whether absolute, accrued, contingent, known or unknown, matured or unmatured) that is not reflected and
adequately provided for in accordance with GAAP. No report, including any report filed with the FDIC, the Federal Reserve Board, the Florida Office of Financial Regulation or other banking regulatory agency or other federal or state regulatory
agency, and no report, proxy statement, registration statement or offering materials made or given to shareholders of NorthStar or the Bank since January 1, 2014, as of the respective dates thereof, contained any untrue statement of a material
fact or omitted to state a material fact required to be stated
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therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. No report, including any report filed with the FDIC, the Federal
Reserve Board, or other banking regulatory agency, and no report, proxy statement, registration statement or offering materials made or given to shareholders of NorthStar or the Bank to be filed or disseminated after the date of this Agreement will
contain any untrue statement of a material fact or will omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they will be made, not misleading.
NorthStars Financial Statements are supported by and consistent with the general ledger and detailed trial balances of investment securities, loans and commitments, depositors accounts and cash balances on deposit with other
institutions, true and complete copies of which have been made available to Seacoast. NorthStar and the Bank have timely filed all reports and other documents required to be filed by them with the FDIC and the Federal Reserve Board. The call reports
of the Bank and the accompanying schedules as filed with the FDIC, for each calendar quarter beginning with the quarter ended December 31, 2013, through the Closing Date have been, and will be, prepared in accordance with applicable regulatory
requirements, including applicable regulatory accounting principles and practices through periods covered by such reports.
(iii) Each of NorthStar and its Subsidiaries maintains accurate books and records reflecting its assets and liabilities and
maintains proper and adequate internal accounting controls, which provide assurance that (A) transactions are executed with managements authorization; (B) transactions are recorded as necessary to permit preparation of the
consolidated financial statements of NorthStar in accordance with GAAP and to maintain accountability for NorthStars consolidated assets; (C) access to NorthStars assets is permitted only in accordance with managements
authorization; (D) the reporting of NorthStars assets is compared with existing assets at regular intervals; and (E) accounts, notes and other receivables and assets are recorded accurately, and proper and adequate procedures are
implemented to effect the collection thereof on a current and timely basis. Such records, systems, controls, data and information of NorthStar and its Subsidiaries is recorded, stored, maintained and operated under means (including any electronic,
mechanical or photographic process, whether computerized or not) that are under the exclusive ownership and direct control of NorthStar or its Subsidiaries. The corporate record books of NorthStar and its Subsidiaries are complete and accurate in
all material respects and reflect all meetings, consents and other actions of the boards of directors and shareholders of NorthStar and its Subsidiaries, respectively.
(iv) Since January 1, 2014, neither NorthStar nor any Subsidiary nor any current director, officer, nor to
NorthStars Knowledge, any former officer or director or current employee, auditor, accountant or representative of NorthStar or any Subsidiary has received or otherwise had or obtained Knowledge of any complaint, allegation, assertion or
claim, whether written or oral, regarding a material weakness, significant deficiency or other defect or failure in the accounting or auditing practices, procedures, methodologies or methods of NorthStar or any Subsidiary or their respective
internal accounting controls. No attorney representing NorthStar or any Subsidiary, whether or not employed by NorthStar or any Subsidiary, has reported evidence of a material violation (as such term is interpreted under Section 307 of the
Sarbanes-Oxley Act and the SECs regulations thereunder) by NorthStar or any Subsidiary or any officers, directors, employees or agents of NorthStar or any of its Subsidiaries to NorthStars Board of Directors or any committee thereof or
to any director or officer of NorthStar. For purposes of the Agreement, Knowledge of NorthStar shall mean the actual knowledge of the individuals listed in
Section 3.3(d)(iv) of the Company Disclosure Letter
, after reasonable inquiry.
(v) NorthStars independent public accountants, which have expressed their opinion with respect to the NorthStar
Financial Statements (including the related notes), are and have been throughout the periods covered by such Financial Statements (A) a registered public accounting firm (as defined in Section 2(a)(12) of the Sarbanes-Oxley Act) (to the
extent applicable during such period), (B) independent with respect to NorthStar within the meaning of Regulation S-X and (C) with respect to NorthStar, in compliance with subsections (g) through (l) of
Section 10A of the 1934 Act and related Securities Laws. NorthStars independent public accountants have not resigned or been dismissed as independent public accountants of NorthStar as a result of or in connection with any disagreements
with NorthStar on a matter of accounting
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principles or practices, financial statement disclosure or auditing scope or procedure.
Section 3.3(d)(v) of the Company Disclosure Letter
lists all nonaudit services performed by
NorthStars independent public accountants for the Company since January 1, 2014.
(vi) There is no transaction,
arrangement or other relationship between NorthStar or any of its Subsidiaries and any unconsolidated or other affiliated entity that is not reflected in the NorthStar Financial Statements. NorthStar has no Knowledge of (A) any significant
deficiency in the design or operation of internal controls which could adversely affect NorthStars ability to record, process, summarize and report financial data or any material weaknesses in internal controls or (B) any fraud, whether
or not material, that involves management or other employees who have a significant role in NorthStars internal controls. Since December 31, 2015, there have been no significant changes in internal controls or in other factors that could
significantly affect internal controls of NorthStar.
(vii) None of NorthStar or its Subsidiaries has any material
Liabilities, except Liabilities which are accrued or reserved against in the NorthStar Latest Balance Sheet included in NorthStars Financial Statements delivered prior to the date of this Agreement or reflected in the notes thereto. The
Company has not incurred or paid any Liability since the date of the NorthStar Latest Balance Sheet, except for such Liabilities incurred or paid (A) in the ordinary course of business consistent with past business practice and which are not
reasonably likely to have, individually or in the aggregate, a Material Adverse Effect or (B) in connection with the transactions contemplated by this Agreement. Except as disclosed in
Section 3.3(d)(vii) of the Company Disclosure
Letter
, none of NorthStar or its Subsidiaries is directly or indirectly liable, by guarantee or otherwise, to assume any Liability or any Person for any amount in excess of $10,000. NorthStar has delivered to SBC true and complete NorthStar
Financial Statements as of December 31, 2016 and the Company shall deliver promptly, when available, all subsequent Quarterly Reports.
(viii) Prior to the Effective Time, NorthStar shall deliver to Seacoast true and complete copies of (A) all monthly
reports and financial statements of NorthStar and its Subsidiaries that were prepared for NorthStar or the Bank since December 31, 2016, including the NorthStar 2016 Financial Statements; (B) the Annual Report of Bank Holding Companies to
the Federal Reserve Board for the year ended December 31, 2016, of NorthStar and its Subsidiaries required to file such reports; and (C) NorthStars Annual Report to Shareholders for the year ended 2016 and all subsequent Quarterly
Reports to Shareholders, if any.
(e)
Absence of Certain Changes or Events
. Since January 1, 2015, (A) NorthStar and each
of its Subsidiaries has conducted its business only in the ordinary course, (B) neither NorthStar nor any Subsidiary has taken any action which, if taken after the date of this Agreement, would constitute a breach of Section 4.1 or 4.2,
and (C) there have been no facts, events, changes, occurrences, circumstances or effects that have had, or are reasonably likely to have, individually or in the aggregate, a Material Adverse Effect on NorthStar and its Subsidiaries, taken as a
whole.
(f)
Tax Matters
.
(i) All Taxes of NorthStar and each of its Subsidiaries that are or were due or payable (whether or not shown or required to be
shown on any Tax Return) have been fully and timely paid. NorthStar and each of its Subsidiaries has timely filed all Tax Returns in all jurisdictions in which Tax Returns are required to have been filed by it or on its behalf, and each such Tax
Return is true, complete and accurate in all material respects and has been prepared in compliance with all applicable Laws. Neither NorthStar nor any of its Subsidiaries is the beneficiary of any extension of time within which to file any Tax
Return. There have been no examinations or audits of any Tax Return by any Taxing Authority. NorthStar and each of its Subsidiaries has made available to Seacoast true and correct copies of the United States federal, state and local income Tax
Returns and related workpapers filed by it for each of the three most recent fiscal years ended on or before December 31, 2016. No claim has ever been made by a Taxing Authority in a jurisdiction where NorthStar or any of its Subsidiaries does
not file a Tax Return that NorthStar or any of its Subsidiaries is or may be subject to Taxes by that jurisdiction, and to the Knowledge of NorthStar and each of its Subsidiaries, no basis for such a claim exists.
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(ii) Neither NorthStar nor any of its Subsidiaries has received any notice of
assessment or proposed assessment in connection with any Tax, and there is no threatened or pending dispute, action, suit, proceeding, claim, investigation, audit, examination, or other Litigation regarding any Tax of NorthStar, any of its
Subsidiaries or the assets of NorthStar or any of its Subsidiaries. No officer or employee responsible for Tax matters of NorthStar or any of its Subsidiaries expects any Taxing Authority to assess any additional Tax for any period for which a Tax
Return has been filed. There are no agreements, waivers or other arrangements providing for an extension of time with respect to the assessment of any Tax or deficiency against NorthStar or any of its Subsidiaries, and neither NorthStar nor any of
its Subsidiaries has waived or extended the applicable statute of limitations for the assessment or collection of any Tax or agreed to a Tax assessment or deficiency.
(iii) Neither NorthStar nor any of its Subsidiaries is a party to a Tax allocation, sharing, indemnification or similar
agreement or any agreement pursuant to which it has any obligation to any Person with respect to Taxes, and neither NorthStar nor any of its Subsidiaries has been a member of an affiliated group filing a consolidated federal, state or local income
Tax Return or any combined, affiliated or unitary group for any Tax purpose (other than the group of which it is currently a member), and neither NorthStar or any of its Subsidiaries has any Tax liability under Treasury Regulation
Section 1.1502-6 or any similar provision of Law, or as a transferee or successor, by contract or otherwise.
(iv)
NorthStar and its Subsidiaries have withheld and paid over to the appropriate Taxing Authority all amounts of Taxes required to have been withheld and paid over by it, and has complied in all respects with all information reporting and backup
withholding requirements under all applicable federal, state, local and foreign Laws in connection with amounts paid or owing to any Person, including Taxes required to have been withheld and paid in connection with amounts paid or owing to any
employee or independent contractor, and Taxes required to be withheld and paid pursuant to Sections 1441, 1442 and 3406 of the Internal Revenue Code or similar provisions under state, local or foreign Law.
(v) Neither NorthStar nor any of its Subsidiaries has been a party to any distribution occurring during the five-year period
ending on the date hereof in which the parties to such distribution treated the distribution as one to which Section 355 of the Internal Revenue Code applied. No Liens for Taxes exist with respect to any assets of NorthStar of any of its
Subsidiaries, except for statutory Liens for Taxes not yet due and payable.
(vi) Neither NorthStar nor any of its
Subsidiaries is or has ever been a United States real property holding corporation within the meaning of Internal Revenue Code Section 897(c) or any comparable provision of state Tax Law. Neither NorthStar nor any of its Subsidiaries has been
or will be required to include any item in income or exclude any item of deduction from taxable income for any Tax period (or portion thereof) ending after the Closing Date as a result of any: (A) change in method of accounting pursuant to
Section 481 of the Internal Revenue Code or any comparable provision under state, local or foreign Tax Laws; (B) closing agreement as described in Section 7121 of the Internal Revenue Code or any comparable
provision under state, local, or foreign Tax Laws, executed on or prior to the Closing Date; (C) intercompany transaction or excess loss account described in Treasury Regulations under Section 1502 of the Internal Revenue Code or any
comparable provision under state, local, or foreign Tax Laws; (D) installment sale or open transaction disposition made on or prior to the Closing Date; or (E) prepaid amount received on or prior to the Closing Date.
(vii) NorthStar and each of its Subsidiaries has disclosed on its Tax Returns any position taken for which substantial
authority (within the meaning of Internal Revenue Code Section 6662(d)(2)(B)(i) or comparable provision of state or local Tax Law) did not exist at the time the return was filed. Neither NorthStar nor any of its Subsidiaries has participated in
any reportable transaction, as defined in Treasury Regulation Section 1.6011-4(b)(1) or any comparable provision of state or local Law, or a transaction substantially similar to a reportable transaction. Neither NorthStar nor any of its
Subsidiaries is a party to any joint venture, partnership, or other arrangement or contract which could be treated as a partnership for federal income Tax purposes.
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(viii) The unpaid Taxes of NorthStar and each of its Subsidiaries (A) did
not, as of the date of the NorthStar Latest Balance Sheet, exceed the reserve for Tax Liability (excluding any reserve for deferred Taxes established to reflect timing differences between book and Tax income) set forth on the face of the NorthStar
Latest Balance Sheet (rather than in any notes thereto) and (B) do not exceed that reserve as adjusted for the passage of time through the Closing Date in accordance with the past custom and practice of NorthStar and each of its Subsidiaries in
filing its Tax Returns. Since the date of the NorthStar Latest Balance Sheet, neither NorthStar nor any of its Subsidiaries has incurred any liability for Taxes arising from extraordinary gains or losses, as that term is used in GAAP, outside the
ordinary course of business consistent with past practice.
(g)
Environmental Matters
.
(i) NorthStar and the Bank have delivered, or caused to be delivered to Seacoast, or provided Seacoast access to, true and
complete copies of all environmental site assessments, test results, analytical data, boring logs and other environmental reports and studies held by NorthStar and each of its Subsidiaries relating to its Properties and Facilities (collectively, the
NorthStar Environmental Reports
).
(ii) NorthStar and each of its Subsidiaries and their respective
Facilities and Properties are, and have been, in compliance with all Environmental Laws, except as set forth in the NorthStar Environmental Reports and except for violations that are not reasonably likely to have, individually or in the aggregate, a
Material Adverse Effect, and there are no past or present events, conditions, circumstances, activities or plans related to the Properties or Facilities that did or would violate or prevent compliance or continued compliance with any of the
Environmental Laws.
(iii) There is no Litigation pending or, to the Knowledge of NorthStar, threatened before any
Governmental Authority or other forum in which NorthStar or any of its Subsidiaries or any of their respective Properties or Facilities (including but not limited to Properties and Facilities that secure or secured loans made by NorthStar or its
Subsidiaries and Properties and Facilities now or formerly held, directly or indirectly, in a fiduciary capacity by NorthStar or its Subsidiaries) has been or, with respect to threatened Litigation, may be named as a defendant (A) for alleged
noncompliance (including by any predecessor) with or Liability under any Environmental Law or (B) relating to the release, discharge, spillage, or disposal into the environment of any Hazardous Material, whether or not occurring at, on, under,
adjacent to, or affecting (or potentially affecting) any such Properties or Facilities.
(iv) Except as disclosed in the
NorthStar Environmental Reports, during the period of (A) NorthStars or any of its Subsidiaries ownership or operation (including but not limited to ownership or operation, directly or indirectly, in a fiduciary capacity) of, or
(B) NorthStars or any of its Subsidiaries participation in the management (including but not limited to such participation, directly or indirectly, in a fiduciary capacity) of their respective Properties and Facilities, to the
Knowledge of NorthStar or its Subsidiaries, there have been no releases, discharges, spillages, or disposals of Hazardous Material in, on, under, adjacent to, or affecting (or potentially affecting) such Properties or Facilities.
(h)
Compliance with Permits, Laws and Orders
.
(i) NorthStar and each of its Subsidiaries has in effect all Permits and has made all filings, applications and registrations
with Governmental Authorities that are required for it to own, lease or operate its properties and assets and to carry on its business as now conducted (and has paid all fees and assessments due and payable in connection therewith) and there has
occurred no Default under any Permit applicable to their respective business or employees conducting their respective businesses.
(ii) Neither NorthStar nor any of its Subsidiaries is and has not since December 31, 2013, been in Default under any Laws
or Orders applicable to its business or employees conducting its business. As of the date of this Agreement, none of NorthStar or any of its Subsidiaries knows of any reason why all Regulatory Consents required for the consummation of the
transactions contemplated by this Agreement, including the Merger and the Bank Merger, should not be obtained on a timely basis.
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(iii) Neither NorthStar nor any of its Subsidiaries has received any notification
or communication from any Governmental Authority, (A) asserting that NorthStar or any of its Subsidiaries is in Default under any of the Permits, Laws or Orders which such Governmental Authority enforces, (B) threatening or contemplating
revocation or limitation of, or which could have the effect of revoking or limiting, any Permits, or (C) requiring or advising that it may require NorthStar or any of its Subsidiaries (x) to enter into or consent to the issuance of a cease
and desist order, formal agreement, directive, commitment, or memorandum of understanding, or (y) to adopt any resolution of its Board of Directors or similar undertaking that restricts materially the conduct of its business or in any material
manner relates to its management.
(iv) NorthStar and each of its Subsidiaries are and, at all times since
December 31, 2013, have been, in compliance with all Laws applicable to their business, operations, properties or assets, including Sections 23A and 23B of the Federal Reserve Act, the Equal Credit Opportunity Act, the Fair Housing Act,
the Community Reinvestment Act, the Home Mortgage Disclosure Act, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001, the Bank Secrecy Act, the Truth in Lending
Act, the Sarbanes-Oxley Act of 2002, the Fair Debt Collection Practices Act, the Electronic Fund Transfer Act, the Fair Credit Reporting Act and all other applicable fair lending Laws and other applicable Laws relating to discriminatory business
practices.
(v) Neither NorthStar nor any of its Subsidiaries is subject to any cease-and-desist or other order or
enforcement action issued by, or is a party to any written agreement, consent agreement or memorandum of understanding with, or is a party to any commitment letter or similar undertaking to, or is subject to any order or directive by, or has been
ordered to pay any civil money penalty by, or has been since December 31, 2013, a recipient of any supervisory letter from, or since December 31, 2013, have adopted any policies, procedures or board resolutions at the request or suggestion
of any Regulatory Authority or other Governmental Authority that currently restricts in any material respect the conduct of their business or that in any material manner relates to their capital adequacy, ability to pay dividends, credit or risk
management policies, management or business (each, whether or not set forth in the Company Disclosure Letter, a
Company Regulatory Agreement
), nor has NorthStar or any of its Subsidiaries been advised in writing or, to the
Knowledge of NorthStar, orally, since December 31, 2013, by any Regulatory Authority or other Governmental Authority that it is considering issuing, initiating, ordering or requesting any such Company Regulatory Agreement.
(vi) There (A) is no written, or to the Knowledge of NorthStar, oral unresolved violation, criticism or exception by any
Governmental Authority with respect to any report or statement relating to any examinations or inspections of NorthStar or any of its Subsidiaries, (B) have been no written, or to the Knowledge of NorthStar, oral formal or informal inquiries
by, or disagreements or disputes with, any Governmental Authority with respect to its or its Subsidiaries business, operations, policies or procedures since December 31, 2013, and (C) is not any pending or, to the Knowledge of
NorthStar, threatened, nor has any Governmental Authority indicated an intention to conduct any, investigation or review of NorthStar or any of its Subsidiaries.
(vii) Neither NorthStar, the Bank (nor to the Knowledge of NorthStar any of their respective directors, executives, officers,
employees or Representatives) (A) has used or is using any corporate funds for any illegal contribution, gift, entertainment or other unlawful expense relating to political activity, (B) has used or is using any corporate funds for any
direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds, (C) has violated or is violating any provision of the Foreign Corrupt Practices Act of 1977, as amended, or (D) has made
any bribe, unlawful rebate, payoff, influence payment, kickback or other unlawful payment.
(viii) Except as required by
the Bank Secrecy Act, to the Knowledge of NorthStar, no employee of NorthStar or any Subsidiary has provided or is providing information to any law enforcement agency regarding the commission or possible commission of any crime or the violation or
possible violation of any applicable Law by NorthStar or any of its Subsidiaries or any employee thereof acting in its capacity as
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such. Neither NorthStar nor any of its Subsidiaries nor any officer, employee, contractor, subcontractor or agent of NorthStar or any such Subsidiary has discharged, demoted, suspended,
threatened, harassed or in any other manner discriminated against any employee of NorthStar or any Subsidiary in the terms and conditions of employment because of any act of such employee described in 18 U.S.C. Section 1514A(a).
(ix) Since December 31, 2013, NorthStar and each of its Subsidiaries have filed all reports and statements, together with
any amendments required to be made with respect thereto, that NorthStar and each of its Subsidiaries was required to file with any Governmental Authority and all other reports and statements required to be filed by NorthStar and each of its
Subsidiaries since December 31, 2013, including any report or statement required to be filed pursuant to the Laws of the United States, any state or political subdivision, any foreign jurisdiction, or any other Governmental Authority, have been
so filed, and NorthStar and each of its Subsidiaries have paid all fees and assessments due and payable in connection therewith.
(x) The Bank is not authorized to act in any capacity as a corporate fiduciary.
(i)
Labor Re
lations
.
(i) Neither NorthStar nor any of its Subsidiaries is the subject of any Litigation asserting that NorthStar or any of its
Subsidiaries has committed an unfair labor practice (within the meaning of the National Labor Relations Act or comparable state Law) or seeking to compel NorthStar or any of its Subsidiaries to bargain with any labor organization as to wages or
conditions of employment, nor is NorthStar or any of its Subsidiaries a party to or bound by any collective bargaining agreement, Contract, or other agreement or understanding with a labor union or labor organization, nor is there any strike or
other labor dispute involving it pending or, to its Knowledge, threatened, nor, to its Knowledge, is there any activity involving its employees seeking to certify a collective bargaining unit or engaging in any other organization activity.
(ii) (A) Each individual that renders services to NorthStar or any of its Subsidiaries who is classified as (1) an
independent contractor or other non-employee status or (2) an exempt or non-exempt employee, is, to the Knowledge of NorthStar, properly so classified for all purposes, and (B) NorthStar and each of its Subsidiaries have paid or properly
accrued in the ordinary course of business all wages and compensation due to employees of NorthStar and its Subsidiaries, including all overtime pay, vacations or vacation pay, holidays or holiday pay, sick days or sick pay, and bonuses.
(iii) Neither NorthStar nor any of its Subsidiaries is in conflict with, or in default or in violation of, any applicable
Federal, state or local Law, or any collective bargaining agreement or arrangement respecting employment, employment practices, terms and conditions of employment, Tax withholding, prohibited discrimination, equal employment, fair employment
practices, immigration status, employee safety and health, facility closings and layoffs (including the Worker Adjustment and Retraining Notification Action of 1988), or wages and hours.
(iv) No executive officer of NorthStar or any of its Subsidiaries is, or is now expected to be, in violation of any material
term of any employment Contract, confidentiality, disclosure or proprietary information agreement, non-competition agreement or any other agreement or any restrictive covenant, and the continued employment of each such executive officer does not
subject NorthStar or any of its Subsidiaries to any liability with respect to any of the foregoing matters.
(j)
Employee Benefit
Plans
.
(i)
Section 3.3(j)(i) of the Company Disclosure Letter
sets forth each Benefit Plan whether or not
such Benefit Plan is or is intended to be (A) arrived at through collective bargaining or otherwise, (B) funded or unfunded, (C) covered or qualified under the Internal Revenue Code, ERISA, or other applicable law, (D) set forth
in an employment agreement, consulting agreement, individual award agreement, or (E) written or oral.
(ii) NorthStar
has delivered to Seacoast prior to the date of this Agreement correct and complete copies of the following documents: (A) all Benefit Plan documents (and all amendments thereto), (B) all trust
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agreements or other funding arrangements for its Benefit Plans (including insurance or group annuity Contracts), and all amendments thereto, (C) with respect to any Benefit Plans or
amendments, the most recent determination letters, as well as a correct and complete copy of each pending application for a determination letter (if any), and all rulings, opinion letters, information letters, or advisory opinions issued by the
Internal Revenue Service, the United States Department of Labor, or the Pension Benefit Guaranty Corporation after December 31, 1994, (D) for the past three (3) years, annual reports or returns, audited or unaudited financial
statements, actuarial valuations and reports, and summary annual reports prepared for any Benefit Plans, including but not limited to the annual report on Form 5500 (if such report was required), (E) the most recent summary plan description for
each Benefit Plan for which a summary plan description is required by Law, including any summary of material modifications thereto, (F) in the case of Benefit Plans that are Rights or individual award agreements under the NorthStar Stock Plan,
a representative form of award agreement together with a list of persons covered by such representative form and the number of shares of NorthStar Common Stock covered thereby, (G) all documents evidencing any agreements or arrangements with
service providers relating to Benefit Plans, (H) all material correspondence and/or notifications from any Governmental Authority or administrative service with regard to any Benefit Plan, and (I) nondiscrimination testing data and results
for the two most recently completed plan years (if applicable) with regard to any Benefit Plan.
(iii) All of the Benefit
Plans have been administered in compliance with their terms and with the applicable provisions of ERISA and the Internal Revenue Code and (if applicable) in a manner that complies with and is exempt from tax or other penalty under the Patient
Protection and Affordable Care Act, in combination with the Health Care and Reconciliation Act of 2010 (together, the
Affordable Care Act
); and any other applicable Laws. All Benefit Plans that are employee pension benefit plans,
as defined in Section 3(2) of ERISA, that are intended to be tax qualified under Section 401(a) of the Internal Revenue Code, have received a current, favorable determination letter from the Internal Revenue Service or have filed a timely
application therefor, and there are no circumstances that will or could reasonably result in revocation of any such favorable determination letter or negative consequences to an application therefor. Each trust created under any of its ERISA Plans
has been determined to be exempt from Tax under Section 501(a) of the Internal Revenue Code and neither NorthStar nor any of its Subsidiaries is aware of any circumstance that will or could reasonably result in revocation of such exemption.
With respect to each of its Benefit Plans, to the Knowledge of NorthStar, no event has occurred that will or could reasonably give rise to a loss of any intended Tax consequences under the Internal Revenue Code or to any Tax under Section 511
of the Internal Revenue Code. There are no pending or, to the Knowledge of NorthStar, threatened Litigation, governmental audits or investigations or other proceedings, or participant claims (other than claims for benefits in the normal course of
business) with respect to any Benefit Plan.
(iv) Neither NorthStar nor any of its Subsidiaries has engaged in a
transaction with respect to any of their Benefit Plans that would subject NorthStar or any of its Subsidiaries to a Tax or penalty imposed by either Section 4975 of the Internal Revenue Code or Section 502(i) of ERISA. Neither NorthStar
nor any of its Subsidiaries nor any administrator or fiduciary of any of their Benefit Plans (or any agent of any of the foregoing) has engaged in any transaction, or acted or failed to act in any manner with respect to any of their Benefit Plans
that could subject it to any direct or indirect Liability (by indemnity or otherwise) for breach of any fiduciary, co-fiduciary, or other duty under ERISA. No oral or written representation or communication with respect to any aspect of the Benefit
Plans of NorthStar or any of its Subsidiaries have been made to employees of NorthStar or any such Subsidiary that is not in conformity with the written or otherwise preexisting terms and provisions of such plans.
(v) NorthStar, any Subsidiary or any ERISA Affiliates thereof do not and have never sponsored, maintained, contributed to, or
been obligated under ERISA or otherwise to contribute to (A) a defined benefit plan (as defined in ERISA Section 3(35) or Internal Revenue Code Section 414(j); (B) a multi-employer plan (as defined in
ERISA Sections 3(37) and 4001(a)(3); (C) a multiple employer plan (meaning a plan sponsored by more than one employer within the meaning of ERISA Sections 4063 or 4064 or Internal Revenue Code Section 413(c); or (D) a
multiple employer welfare arrangement as defined in
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ERISA Section 3(40). Neither NorthStar nor any of its Subsidiaries nor any of their ERISA Affiliates have incurred and there are no circumstances under which any could reasonably incur any
Liability under Title IV of ERISA or Internal Revenue Code Section 412.
(vi) Neither NorthStar nor any of its
Subsidiaries nor ERISA Affiliates has any incurred current or projected obligations or Liability for post-employment or post-retirement health, medical, surgical, hospitalization, death or life insurance benefits under any of its Benefit Plans,
other than with respect to benefit coverage mandated by Internal Revenue Code Section 4980B or other applicable Law.
(vii) No Benefit Plan exists and there are no other Contracts, plans, or arrangements (written or otherwise) covering any
Company employee that, individually or collectively, as a result of the execution of this Agreement or the consummation of the transactions contemplated by this Agreement (whether alone or in connection with any other event(s)), would reasonably be
expected to, (A) result in any material severance pay upon any termination of employment, (B) accelerate the time of payment or vesting or result in any material payment or material funding (through a grantor trust or otherwise) of
compensation or benefits under, materially increase the amount payable, require the security of material benefits under or result in any other material obligation pursuant to, any such NorthStar Plans, contracts, plans, or arrangements, or
(C) result in the payment of any amount that would, individually or in combination with any other such payment, result in the loss of a deduction under Internal Revenue Code Section 280G or be subject to an excise tax under
Section 4999 of the Internal Revenue Code.
(viii) Each Benefit Plan that is a non-qualified deferred
compensation plan (as defined for purposes of Internal Revenue Code Section 409A) is in documentary compliance with, and has been operated and administered in compliance with, Internal Revenue Code Section 409A and the applicable
guidance issued thereunder, and no Benefit Plan provides any compensation or benefits which could subject, or have subjected, a covered service provider to gross income inclusion or tax pursuant to Internal Revenue Code Section 409A. Neither
NorthStar nor any of its Subsidiaries has any indemnification obligation pursuant to any Benefit Plan or any Contract to which NorthStar or any of its Subsidiaries is a party for any Taxes imposed under Section 4999 or 409A of the Internal
Revenue Code. The Company has made available to Seacoast true and complete copies of any Section 280G calculations (whether or not final) with respect to any disqualified individual, if applicable, in connection with the transactions
contemplated by this Agreement.
(k)
Material Contracts
.
(i) Except as listed in
Section 3.3(k) of the Company Disclosure Letter
, as of the date of this Agreement, neither
NorthStar nor any of its Subsidiaries nor any of their respective assets, businesses, or operations is a party to, or is bound or affected by, or receives benefits under, (A) any employment, severance, termination, consulting, retention, or
retirement Contract, (B) any Contract relating to the borrowing of money by NorthStar or any of its Subsidiaries or the guarantee by NorthStar or any of its Subsidiaries of any such obligation (other than Contracts evidencing deposit
liabilities, purchases of federal funds, fully-secured repurchase agreements, and Federal Home Loan Bank advances of the Bank or Contracts pertaining to trade payables incurred in the ordinary course of business consistent with past practice),
(C) any Contract containing covenants that limit the ability of NorthStar or any of its Subsidiaries or any of their Affiliates (including, after the Effective Time, Seacoast or any of its Affiliates) to engage in any line of business or to
compete in any line of business or with any Person, or that involve any restriction of the geographic area in which, or method by which, NorthStar or any of its Subsidiaries Affiliates (including, after the Effective Time, Seacoast or any of its
Affiliates) may carry on its business, (D) any Contract or series of related Contracts for the purchase of materials, supplies, goods, services, equipment or other assets that (x) provides for or is reasonably likely to require annual
payments by NorthStar or any of its Subsidiaries of $25,000 or more or (y) have a term exceeding 12 months in duration (except those entered into in the ordinary course of business with respect to loans, lines of credit, letters of credit,
depositor agreements, certificates of deposit and similar routine banking activities and equipment maintenance agreements that are not material), (E) Contract involving Intellectual Property (excluding
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generally commercially available off the shelf software programs licensed pursuant to shrink wrap or click and accept licenses), (F) any Contract relating
to the provision of data processing, network communications or other material technical services to or by NorthStar or any of its Subsidiaries, (G) any Contract to which any Affiliate, officer, director, employee or consultant of NorthStar or
any of its Subsidiaries is a party or beneficiary (except with respect to loans to, or deposits from, directors, officers and employees entered into in the ordinary course of business consistent with past practice and in accordance with all
applicable regulatory requirements with respect to it), (H) any Contract with respect to the formation, creation, operation, management or control of a joint venture, partnership, limited liability company or other similar arrangement or
agreement, (I) any Contract that provides any rights to investors in NorthStar or any of its Subsidiaries, including registration, preemptive or anti-dilution rights or rights to designate members of or observers to the NorthStar Board of
Directors, (J) any Contract that provides for potential material indemnification payments by NorthStar or any of its Subsidiaries, or (K) any other Contract or amendment thereto that would be required to be filed as an exhibit to any SEC
Report (as described in Items 601(b)(4) and 601(b)(10) of Regulation S-K) if NorthStar were required to file such with the SEC. With respect to each of its Contracts that is described above: (w) the Contract is valid and binding on
NorthStar or any of its Subsidiaries thereto and, to the Knowledge of NorthStar, each other party thereto and is in full force and effect, enforceable in accordance with its terms (except in all cases as such enforceability may be limited by
(1) bankruptcy, insolvency, reorganization, moratorium, receivership, conservatorship and other Laws now or hereafter in effect relating to or affecting the enforcement of creditors rights generally or the rights of creditors of insured
depository institutions and (2) general equitable principles and except that the availability of the equitable remedy of specific performance or injunctive relief is subject to the discretion of the court before which any proceeding may be
brought); (x) neither NorthStar nor any of its Subsidiaries is in Default thereunder; (y) neither NorthStar nor any of its Subsidiaries has repudiated or waived any material provision of any such Contract; and (z) no other party to
any such Contract is, to the Knowledge of NorthStar, in Default in any material respect or has repudiated or waived any material provision of any such Contract. Except as set forth in
Section 3.3(k)(i)(A) of the Company Disclosure
Letter
, no Consent is required by any such Contract for the execution, delivery or performance of this Agreement or the consummation of the Merger, the Bank Merger or the other transactions contemplated hereby or thereby. Except as set forth in
Section 3.3(k)(i)(B) of the Company Disclosure Letter
, all indebtedness for money borrowed of NorthStar or any of its Subsidiaries is prepayable without penalty or premium.
(ii) All interest rate swaps, caps, floors, collars, option agreements, futures, and forward contracts, and other similar risk
management arrangements, contracts or agreements, whether entered into for its own account or its customers, were entered into (A) in the ordinary course of business consistent with past practice and in accordance with prudent business
practices and all applicable Laws and (B) with counterparties believed to be financially responsible, and each of them is enforceable in accordance with its terms (except in all cases as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, receivership, conservatorship, moratorium, or similar Laws affecting the enforcement of creditors rights generally and except that the availability of the equitable remedy of specific performance or
injunctive relief is subject to the discretion of the court before which any proceeding may be brought), and is in full force and effect. Neither NorthStar nor any of its Subsidiaries, nor to the Knowledge of NorthStar, any other party thereto, is
in Default of any of its obligations under any such agreement or arrangement. The NorthStar Financial Statements disclose the value of such agreements and arrangements on a mark-to-market basis in accordance with GAAP and, since January 1,
2014, there has not been a change in such value that, individually or in the aggregate, has resulted in a Material Adverse Effect on NorthStar.
(l)
Legal Proceedings
. There is no Litigation pending or, to the Knowledge of NorthStar, threatened against NorthStar or any of its
Subsidiaries or any of their assets, interests, or rights, nor are there any Orders of any Governmental Authority or arbitrators outstanding against NorthStar or any of its Subsidiaries, nor do any facts or circumstances exist that would be likely
to form the basis for any material claim against the Company that, if adversely determined, individually or in the aggregate, would have a Material Adverse Effect on NorthStar or any of its Subsidiaries. There is no Litigation, pending or, to the
Knowledge of NorthStar,
A-22
threatened, against any officer, director, advisory director or employee of NorthStar or any of its Subsidiaries, in each case by reason of any person being or having been an officer, director,
advisory director or employee of NorthStar or any of its Subsidiaries.
(m)
Intellectual Property
.
(i) NorthStar owns, or is licensed or otherwise possesses legally enforceable and unencumbered rights to use all Intellectual
Property (including the Technology Systems) that is used by NorthStar or any of its Subsidiaries in their businesses. Except as set forth in
Section 3.3(m)(i) of the Company Disclosure Letter
, NorthStar has not (A) licensed to any
Person in source code form any Intellectual Property owned by NorthStar or (B) entered into any exclusive agreements relating to Intellectual Property owned by NorthStar.
(ii)
Section 3.3(m)(ii) of the Company Disclosure Letter
lists all patents and patent applications, all registered
and unregistered trademarks and applications therefor, trade names and service marks, registered copyrights and applications therefor, domain names, web sites, and mask works owned by or exclusively licensed to NorthStar or any of its Subsidiaries
included in its Intellectual Property, including the jurisdictions in which each such Intellectual Property right has been issued or registered or in which any application for such issuance and registration has been filed. No royalties or other
continuing payment obligations are due in respect of any third-party patents, trademarks or copyrights, including software.
(iii) All patents, registered trademarks, service marks and copyrights held by the Company are valid and subsisting. Since
January 1, 2014, neither NorthStar nor any of its Subsidiaries (A) have been sued in any Litigation which involves a claim of infringement of any patents, trademarks, service marks, copyrights or violation of any trade secret or other
proprietary right of any third party or (B) has not brought any Litigation for infringement of its Intellectual Property or breach of any license or other Contract involving its Intellectual Property against any third party.
(n)
Loan and Investment Portfolios
.
(i) All loans, loan agreements, notes or borrowing arrangements (including leases, credit enhancements, commitments,
guarantees and interest-bearing assets) (collectively,
Loans
) in which NorthStar or any of its Subsidiaries is the creditor (A) were at the time and under the circumstances in which made, made for good, valuable and adequate
consideration in the ordinary course of business of NorthStar or any of its Subsidiaries and are the legal, valid and binding obligations of the obligors thereof, enforceable in accordance with their terms, (B) are evidenced by notes,
agreements or other evidences of indebtedness that are true, genuine and what they purport to be and (C) to the extent secured, have been secured by valid Liens that have been perfected. True and complete lists of all Loans as of April 30,
2017 and on a monthly basis thereafter, and of the investment portfolios of NorthStar as of such date, are disclosed on
Section 3.3(n)(i) of the Company Disclosure Letter
.
(ii) Except as specifically set forth on
Section 3.3(n)(ii) of the Company Disclosure Letter
, neither NorthStar nor
any Subsidiary is a party to any Loan that was, as of the most recent month-end prior to the date of this Agreement, (A) delinquent by more than thirty (30) days in the payment of principal or interest, (B) to the Knowledge of
NorthStar, otherwise in material default for more than thirty (30) days, (C) classified as substandard, doubtful, loss, other assets especially mentioned or any comparable classification by
NorthStar or any Regulatory Authority having jurisdiction over NorthStar or any of its Subsidiaries, (D) an obligation of any director, executive officer or 10% shareholder of NorthStar or the Bank who is subject to Regulation O of the Federal
Reserve Board (12 C.F.R. Part 215), or any Person controlling, controlled by or under common control with any of the foregoing, or (E) in violation of any Law.
(iii) Each outstanding Loan (including Loans held for resale to investors) in which NorthStar or any of its Subsidiaries is the
creditor was solicited and originated, and is and has been administered and, where applicable, serviced, and the relevant loan or other similar files are being maintained, in all material respects, in accordance with the relevant notes or other
credit or security documents, the written
A-23
underwriting standards of NorthStar and the Bank (and, in the case of Loans held for resale to investors, the underwriting standards, if any, of the applicable investors) and with all applicable
federal, state and local Laws.
(iv) None of the agreements pursuant to which NorthStar or any of its Subsidiaries has sold
Loans or pools of Loans or participations in Loans or pools of Loans contain any obligation to repurchase such Loans or interests therein solely on account of a payment default by the obligor on any such Loan.
(v) Neither NorthStar nor any Subsidiary is now nor have they ever been since December 31, 2013, subject to any material
fine, suspension, settlement or other contract or other administrative agreement or sanction by, or any reduction in any loan purchase commitment from, any Governmental Authority or Regulatory Authority relating to the origination, sale or servicing
of mortgage or consumer Loans.
(o)
Adequacy of Allowances for Losses
. Each of the allowances for losses on loans, financing leases
and other real estate included on the NorthStar Latest Balance Sheet (along with any subsequent balance sheet required to be delivered hereunder) is, and with respect to the consolidated balance sheets delivered as of the dates subsequent to the
execution of this Agreement will be as of the dates thereof, adequate in accordance with applicable regulatory guidelines and GAAP in all material respects, and, to the Knowledge of NorthStar, there are no facts or circumstances that are likely to
require in accordance with applicable regulatory guidelines or GAAP a future material increase in any such provisions for losses or a material decrease in any of the allowances therefor. Each of the allowances for losses on loans, financing leases
and other real estate reflected on the books of NorthStar at all times from and after the date of the NorthStar Latest Balance Sheet is, and will be, adequate in accordance with applicable regulatory guidelines and GAAP in all material respects,
and, to the Knowledge of NorthStar, there are no facts or circumstances that are likely to require, in accordance with applicable regulatory guidelines or GAAP, a future material increase in any of such provisions for losses or a material decrease
in any of the allowances therefor.
(p)
Loans to Executive Officers and Directors
. Neither NorthStar nor any of its Subsidiaries
have extended or maintained credit, arranged for the extension of credit, or renewed an extension of credit, in the form of a personal loan to or for any director or executive officer (or equivalent thereof) of NorthStar or the Bank, except as
permitted by Section 13(k) of the 1934 Act, as applicable, and as permitted by Federal Reserve Regulation O and that have been made in accordance with the provisions of Regulation O.
Section 3.3(p) of the Company Disclosure Letter
identifies any loan or extension of credit maintained by NorthStar or any of its Subsidiaries to which the second sentence of Section 13(k)(1) of the 1934 Act applies.
(q)
Community Reinvestment Act
. The Bank has complied in all material respects with the provisions of the Community Reinvestment Act of
1977 (
CRA
) and the rules and regulations thereunder, the Bank has a CRA rating of not less than satisfactory in its most recently completed exam, has received no material criticism from regulators with respect to
discriminatory lending practices, and to the Knowledge of NorthStar, there are no conditions, facts or circumstances that could result in a CRA rating of less than satisfactory or material criticism from regulators or consumers with
respect to discriminatory lending practices.
(r)
Privacy of Customer Information
.
(i) NorthStar and its Subsidiaries, as applicable, are the sole owners of all individually identifiable personal information
(
IIPI
) relating to customers, former customers and prospective customers that will be transferred to Seacoast or a Subsidiary of Seacoast pursuant to this Agreement and the other transactions contemplated hereby. For purposes of
this
Section 3.2(r)
, IIPI means any information relating to an identified or identifiable natural person, including, but not limited to personally identifiable financial information as that term is defined in 12
CFR Part 1016.
(ii) NorthStar and its Subsidiaries collection and use of such IIPI, the transfer of such IIPI to
Seacoast or any of its Subsidiaries, and the use of such IIPI by Seacoast or any of its Subsidiaries complies with all applicable privacy policies, the Fair Credit Reporting Act, the Gramm-Leach-Bliley Act and all other applicable state, federal and
foreign privacy Laws, and any contract or industry standard relating to privacy.
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(s)
Technology Systems
.
(i) Except to the extent disclosed on
Section 3.3(s)(i) of the Company Disclosure Letter
, no material action will
be necessary as a result of the transactions contemplated by this Agreement to enable use of the Technology Systems to continue by the Surviving Corporation and its Subsidiaries to the same extent and in the same manner that it has been used by
NorthStar and its Subsidiaries prior to the Effective Time.
(ii) The Technology Systems (for a period of 18 months prior
to the Effective Time) have not suffered unplanned disruption causing a Material Adverse Effect on the Company. Except for ongoing payments due under Contracts with third parties, the Technology Systems are free from any Liens (other than Permitted
Liens). Access to business-critical parts of the Technology Systems is not shared with any third party.
(iii) NorthStar
has furnished to Seacoast a true and correct copy of its disaster recovery and business continuity arrangements.
(iv)
Neither NorthStar nor any of its Subsidiaries has received notice of and is not aware of any material circumstances, including the execution of this Agreement, that would enable any third party to terminate any of its or any of its
Subsidiaries agreements or arrangements relating to the Technology Systems (including maintenance and support).
(t)
Insurance
Policies
. NorthStar and each of its Subsidiaries maintain in full force and effect insurance policies and bonds in such amounts and against such liabilities and hazards of the types and amounts as (i) it reasonably believes to be adequate
for its business and operations and the value of its properties, and (ii) are comparable to those maintained by other banking organizations of similar size and complexity. A true and complete list of all such insurance policies is attached as
Section 3.3(t) of the Company Disclosure Letter
. Neither NorthStar nor any of its Subsidiaries is now liable for, nor has NorthStar nor any such Subsidiary received written notice of, any material retroactive premium adjustment.
NorthStar and each of its Subsidiaries are in compliance in all material respects with their respective insurance policies and are not in Default under any of the terms thereof and each such policy is valid and enforceable and in full force and
effect, and neither NorthStar nor any of its Subsidiaries has received any written notice of a material premium increase or cancellation with respect to any of its insurance policies or bonds and, except for policies insuring against potential
liabilities of officers, directors and employees of NorthStar and its Subsidiaries, NorthStar or its Subsidiaries are the sole beneficiary of any such policy, and all premiums and other payments due under any such policy have been paid, and all
claims thereunder have been filed in due and timely fashion. Within the last three years, none of NorthStar or any of its Subsidiaries have been refused any basic insurance coverage sought or applied for (other than certain exclusions for coverage
of certain events or circumstances as stated in such policies), and neither NorthStar nor the Bank has any reason to believe that its existing insurance coverage cannot be renewed as and when the same shall expire, upon terms and conditions standard
in the market at the time renewal is sought as favorable as those presently in effect.
(u)
Corporate Documents
. NorthStar has
delivered to SBC, with respect to NorthStar and each of its Subsidiaries, true and correct copies of its Organizational Documents and the charters of each of the committees of its board of directors, all as amended and currently in effect. All of
the foregoing, and all of the corporate minutes and stock transfer records of NorthStar and each of its Subsidiaries that will be made available to SBC after the date hereof, are current, complete and correct in all material respects.
(v)
State Takeover Laws
. NorthStar has taken all action required to be taken by it in order to exempt this Agreement and the
transactions contemplated hereby from, and this Agreement and the transactions contemplated hereby are exempt from, the requirements of any moratorium, control share, fair price, affiliate transaction,
anti-greenmail, business combination or other anti-takeover Laws of any jurisdiction (collectively,
Takeover Laws
). NorthStar has taken all action required to be taken by it in order to make this Agreement
and the transactions contemplated hereby comply with, and this Agreement and the transactions contemplated hereby do comply with, the requirements of any provisions of its Organizational Documents concerning business combination,
fair price, voting requirement, constituency requirement or other related provisions.
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(w)
Certain Actions
. Neither NorthStar nor any of its Subsidiaries or Affiliates has taken
or agreed to take any action, and to the Knowledge of NorthStar, there are no facts or circumstances that are reasonably likely to (i) prevent the Merger and the Bank Merger from qualifying as a reorganization within the meaning of
Section 368(a) of the Internal Revenue Code, or (ii) materially impede or delay receipt of any required Regulatory Consents. To the Knowledge of NorthStar, there exists no fact, circumstance, or reason that would cause any required Consent
not to be received in a timely manner.
(x)
Real and Personal Property
. NorthStar and its Subsidiaries have good, valid and
marketable title to all material real property owned by it free and clear of all Liens, except Permitted Liens and other standard exceptions commonly found in title policies in the jurisdiction where such real property is located, and such
encumbrances and imperfections of title, if any, as do not materially detract from the value of the properties and do not materially interfere with the present or proposed use of such properties or otherwise materially impair such operations.
NorthStar and its Subsidiaries have paid, and will pay, any and all applicable tangible personal property Taxes owed or due by NorthStar or its Subsidiaries. NorthStar and its Subsidiaries have good, valid and marketable title to, or in the case of
leased property and leased tangible assets, a valid leasehold interest in, all material tangible personal property owned by them, free and clear of all Liens (other than Permitted Liens). Each of NorthStar and its Subsidiaries has complied with the
terms of all leases to which it is a party in all material respects, and all such leases are valid and binding in accordance with their respective terms and in full force and effect, and there is not under any such lease any material existing
Default by NorthStar or such Subsidiary or, to the Knowledge of NorthStar, any other party thereto, or any event which with notice or lapse of time or both would constitute such a Default.
(y)
Brokers and Finders
. Except for Sandler ONeill & Partners, L.P., neither NorthStar nor any of its Subsidiaries nor
any of their respective directors, officers, employees or Representatives, has employed any broker or finder or incurred any Liability for any financial advisory fees, investment bankers fees, brokerage fees, commissions, or finders fees
in connection with this Agreement or the transactions contemplated hereby.
(z)
Fairness Opinion
. Prior to the execution of this
Agreement, NorthStar has received the opinion of Sandler ONeill & Partners, L.P. (which, if initially rendered verbally, has or will be confirmed by written opinion, dated the same date) to the effect that as of the date thereof and
based upon and subject to the matters set forth therein, the Aggregate Merger Consideration is fair, from a financial point of view, to the shareholders of NorthStar and a signed copy of the written opinion has been or will be promptly delivered to
SBC solely for informational purposes. Such opinion has not been amended or rescinded as of the date of this Agreement.
(aa)
Transactions with Affiliates
. Except as set forth in
Section 3.3(aa) of the Company Disclosure Letter
, there are no agreements, contracts, plans, arrangements or other transactions between NorthStar and any of its Subsidiaries, on
the one hand, and any (i) officer or director of NorthStar or any of its Subsidiaries, (ii) record or beneficial owner of five percent (5%) or more of the voting securities of NorthStar, (iii) affiliate or family member of any
such officer, director or record or beneficial owner or (iv) any other affiliate of NorthStar, on the other hand, except those of a type available to non-affiliates of NorthStar generally.
(bb)
Representations Not Misleading
. No representation or warranty by NorthStar and the Bank in this Agreement contains any untrue
statement of a material fact or omits to state a material fact necessary to make the statements contained therein, in light of the circumstances in which they were made, not misleading.
3.4
Representations and Warranties of Seacoast
.
Subject to and giving effect to Section 3.2, SBC and SNB, jointly and
severally, hereby represent and warrant to the Company as follows:
(a)
Organization, Standing, and Power
. Each of SBC and SNB is
(i) duly organized, validly existing, and (as to SBC) in good standing under the Laws of the jurisdiction in which it is incorporated and (ii) duly qualified or licensed to do business and in good standing in the States of the United
States and foreign jurisdictions where the character of their assets or conduct of their business requires them to be so qualified or
A-26
licensed, except in the cause of clause (ii) where the failure to be so qualified or licensed, individually or in the aggregate, has not had or would not reasonably be excepted to have a
Material Adverse Effect on SBC or SNB. SBC is a bank holding company within the meaning of the BHC Act and meets the applicable requirements for qualification as such. SNB is a national banking association domiciled in the State of Florida. SNB is
an insured institution as defined in the Federal Deposit Insurance Act and applicable regulations thereunder, and its deposits are insured by the Deposit Insurance Fund and all premiums and assessments required to be paid in connection
therewith have been paid when due. No action for the revocation or termination of such deposit insurance is pending or, to the knowledge of SBC, threatened.
(b)
Authority; No Breach of Agreement
.
(i) SBC and SNB each have the corporate power and authority necessary to execute, deliver and perform its obligations under
this Agreement and to consummate the transactions contemplated hereby. The execution, delivery, and performance of this Agreement, and the consummation of the transactions contemplated hereby have been duly and validly authorized by all necessary
corporate action (including valid authorization and adoption of this Agreement by its duly constituted Board of Directors and in the case of SNB, its sole shareholder). Assuming due authorization, execution and delivery of this Agreement by
NorthStar and the Bank, this Agreement represents a legal, valid and binding obligation of each of SBC and SNB, enforceable against each of SBC and SNB, in accordance with its terms (except in all cases as such enforceability may be limited by
(A) bankruptcy, insolvency, reorganization, receivership, conservatorship, moratorium or similar Laws affecting the enforcement of creditors rights generally and (B) except that the availability of the equitable remedy of specific
performance or injunctive relief is subject to the discretion of the court before which any proceeding may be brought).
(ii) SBCs Boards of Directors has duly approved and declared advisable this Agreement and the Merger and the other
transactions contemplated hereby, including the Ban Merger Agreement and the Bank Merger. SNBs Board of Directors has, by the affirmative vote of all directors voting, which constitute at least a majority of the entire Board of Directors of
SNB, duly approved and declared advisable the Bank Merger Agreement, the Bank Merger and the other transactions contemplated hereby and thereby.
(iii) Neither the execution and delivery of this Agreement by SBC or SNB, nor the consummation by either of them of the
transactions contemplated hereby, nor compliance by them with any of the provisions hereof, will (A) violate conflict with or result in a breach of any provision of their respective Organizational Documents, or (B) constitute or result in
a Default under, or require any Consent pursuant to, or result in the creation of any Lien on any material asset under, any Contract or Permit, or (C) subject to receipt of the Required Consents and the expiration of any waiting period required
by Law, violate any Law or Order applicable to SBC or SNB or any of their respective material assets.
(c)
Capital Stock
. SBCs
authorized capital stock consists of (i) 60 million shares of SBC Common Stock, of which, as of April 30, 2017, 43,502,445 shares are issued (of which 43,411,260 shares are issued and outstanding and 91,185 shares were held in its
treasury) and (ii) 4 million shares of preferred stock, 2,000 shares of which have been designated as Series A Preferred Stock and 50,000 of which has been designated as Series B Preferred Stock (collectively,
SBC Preferred
Stock
), of which, as of the date of this Agreement, no shares are issued or outstanding. As of the date of this Agreement, there were 432,672 restricted shares of SBC Common Stock validly issued and outstanding and the restricted shares
were each issued in accordance with the SBC Stock Plans and such restricted shares represent all of the Rights issued under the SBC Stock Plans. Except as set forth in this Section 3.4(c), Section 3.4(c) of the disclosure letter delivered
by Seacoast to the Company (the
Seacoast Disclosure Letter
) or as set forth in its SEC Reports, as of the date of this Agreement there were no equity securities of SBC outstanding (other than the SBC Common Stock) and no
outstanding Rights relating to SBC Common Stock, and no Person has any Contract or any right or privilege (whether preemptive or contractual) capable of becoming a Contract or Right for the purchase, subscription or issuance of any securities of
SBC. All of the outstanding shares of SBC Common Stock are duly and validly issued and outstanding and are fully paid and, except as expressly provided otherwise under applicable Law, non-assessable under the FBCA. None of the outstanding shares of
SBC Common Stock have been issued in violation of any preemptive rights of the current
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or past shareholders of SBC. All of the outstanding shares of SBC Common Stock and all Rights to acquire shares of SBC Common Stock have been issued in compliance in all material respects with
all applicable federal and state Securities Laws. All issued and outstanding shares of capital stock of its Subsidiaries have been duly authorized and are validly issued, fully paid and (except as provided in 12 U.S.C. Section 55)
nonassessable. The outstanding capital stock of each of its Subsidiaries has been issued in compliance with all legal requirements and is not subject to any preemptive or similar rights. SBC owns all of the issued and outstanding shares of capital
stock of SNB free and clear of all liens, charges, security interests, mortgages, pledges and other encumbrances.
(d)
Financial
Statements
. The financial statements of SBC and its Subsidiaries included (or incorporated by reference) in the SBC SEC Reports (including the related notes, where applicable) (A) have been prepared from, and are in accordance with, the
books and records of SBC and its Subsidiaries; (B) fairly present in all material respects the consolidated results of operations, cash flows, changes in stockholders equity and consolidated financial position of SBC and its Subsidiaries
for the respective fiscal periods or as of the respective dates therein set forth (subject in the case of unaudited statements to recurring audit adjustments normal in nature and amount); (C) complied as to form, as of their respective dates of
filing with the SEC, in all material respects with applicable accounting requirements and with the published rules and regulations of the SEC with respect thereto; and (D) have been prepared in accordance with GAAP consistently applied during
the periods involved, except, in each case, as indicated in such statements or in the notes thereto. As of the date hereof, the books and records of SBC and its Subsidiaries have been maintained in all material respects in accordance with GAAP and
any other applicable legal and accounting requirements and reflect only actual transactions.
(e)
Legal Proceedings
. There is no
Litigation that would be required to be disclosed in a Form 10-K or Form 10-Q pursuant to Item 103 of Regulation S-K of SEC Rules and Regulations that are not so disclosed, pending or, to its Knowledge, threatened against Seacoast, or against
any asset, interest, or right of any of them, nor are there any Orders of any Governmental Authority or arbitrators outstanding against Seacoast.
(f)
Compliance with Laws
.
(i) SBC and each of its Subsidiaries are, and at all times since December 31, 2014, have been, in compliance in all
material respects with all laws applicable to their businesses, operations, properties, assets, and employees. SBC and each of its Subsidiaries have in effect, and at all relevant times since December 31, 2014, held all material Permits
necessary for them to own, lease or operate their properties and assets and to carry on their businesses and operations as now conducted and, to SBCs Knowledge, no suspension or cancellation of any such Permits is threatened and there has
occurred no violation of, default under (with or without notice or lapse of time or both) or event giving to others any right of revocation, non-renewal, adverse modification or cancellation of, with or without notice or lapse of time or both, any
such Permit. The deposit accounts of SNB are insured by the FDIC through the Deposit Insurance Fund to the fullest extent permitted by law, and all premiums and assessments required to be paid in connection therewith have been paid when due. No
action for the revocation or termination of such deposit insurance is pending or, to the Knowledge of SBC, threatened.
(ii) Since January 1, 2014, neither SBC nor any of its Subsidiaries has received any written notification or communication
from any Governmental Authority (A) requiring SBC or any of its Subsidiaries to enter into or consent to the issuance of a cease and desist order, formal or written agreement, directive, commitment, memorandum of understanding, board
resolution, extraordinary supervisory letter or other formal or informal enforcement action of any kind that imposes any restrictions on its conduct of business or that relates to its capital adequacy, its credit or risk management policies, its
dividend policy, its management, its business or its operations (any of the foregoing, a
SBC Regulatory Agreement
), or (B) threatening or contemplating revocation or limitation of, or which would have the effect of revoking
or limiting, FDIC insurance coverage, and, to the Knowledge of SBC, neither SBC nor any of its Subsidiaries has been advised by any Governmental Authority that such Governmental Authority is contemplating issuing or requesting (or is considering the
appropriateness of issuing or requesting) any such judgment,
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order, injunction, rule, agreement, memorandum of understanding, commitment letter, supervisory letter, decree or similar submission. Neither SBC nor any of its Subsidiaries is currently a party
to or subject to any SBC Regulatory Agreement.
(iii) Neither SBC nor any of its Subsidiaries (nor, to the Knowledge of
SBC, any of their respective directors, executives, representatives, agents or employees) (A) has used or is using any corporate funds for any illegal contributions, gifts, entertainment or other unlawful expenses relating to political
activity, (B) has used or is using any corporate funds for any direct or indirect unlawful payments to any foreign or domestic governmental officials or employees, (C) has violated or is violating any provision of the Foreign Corrupt
Practices Act of 1977, (D) has established or maintained, or is maintaining, any unlawful fund of corporate monies or other properties or (E) has made any bribe, unlawful rebate, payoff, influence payment, kickback or other unlawful
payment of any nature.
(g)
Reports
. Except as set forth on
Section 3.4(g) of the Seacoast Disclosure Letter
, SBC has
and each of its Subsidiaries have timely filed all reports, statements, and certifications, together with any amendments required to be made with respect thereto, that they were required to file since December 31, 2014 and prior to the date
hereof with Governmental Authorities, and have paid all fees and assessments due and payable in connection therewith. There is no unresolved violation or exception of which SBC has been given notice by any Governmental Authority with respect to any
such report, statement or certification. No report, including any report filed with the SEC, the FDIC, the OCC, the Federal Reserve Board or other banking regulatory agency, and no report, proxy statement, statement or offering materials made or
given to shareholders of SBC or SNB since December 31, 2014, as of the respective dates thereof, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading. As of their respective dates, all of the foregoing reports complied as to form in all material respects with the published rules and regulations of the
Governmental Authority with jurisdiction thereof and with respect thereto. There are no outstanding comments from or unresolved issues raised by the Governmental Authorities with respect to any of the foregoing reports filed by SBC or its
Subsidiaries.
(h)
Community Reinvestment Act
. SNB has complied in all material respects with the provisions of the CRA and the
rules and regulations thereunder, has a CRA rating of not less that satisfactory in its most recently completed exam, has received no material criticism from regulators with respect to discriminatory lending practices, and has no
knowledge of any conditions, facts of circumstances that could result in a CRA rating of less than satisfactory or material criticism from regulators or consumers with respect to discriminatory lending practices.
(i)
Legality of Seacoast Securities
. All shares of SBC Common Stock to be issued pursuant to the Merger have been duly authorized and,
when issued pursuant to this Agreement, will be validly and legally issued, fully paid and nonassessable, and will be, at the time of their delivery, free and clear of all Liens and any preemptive or similar rights.
(j)
Certain Actions
. Neither SBC nor any of its Subsidiaries or Affiliates has taken or agreed to take any action and it has no
Knowledge of any fact or circumstance, that is reasonably likely to (i) prevent the Merger and the Bank Merger from qualifying as a reorganization with the meaning of Section 368(e) of the Internal Revenue Code, or (ii) materially
impede or delay receipt of any required Regulatory Consents. To SBCs Knowledge, there exists no fact, circumstance, or reason that would cause any required Regulatory Consent not to be received in a timely manner.
(k)
Brokers and Finders
. Except for Raymond James & Associates, Inc., neither SBC nor any of its Subsidiaries, nor any of
their respective directors, officers, employees or Representatives, has employed any broker or finder or incurred and Liability for any financial advisory fees, investment bankers fees, brokerage fees, commissions, or finders fees in
connection with this Agreement or the transactions contemplated hereby.
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(l)
Sufficiency of Funds
. Seacoast has sufficient cash on hand or other sources of
immediately available funds to enable it to make payment of the aggregate Cash Consideration and consummate the transactions contemplated by this Agreement.
(m)
Representations Not Misleading
. No representation or warranty by Seacoast in this Agreement contains any untrue statement of a
material fact or omits to state a material fact necessary to make the statements contained therein, in light of the circumstances in which they were made, not misleading.
ARTICLE 4
COVENANTS
AND ADDITIONAL AGREEMENTS OF THE PARTIES
4.1
Conduct of Business Prior to Effective Time
.
During the period from
the date of this Agreement until the earlier of the termination of this Agreement pursuant to Article 6 or the Effective Time, except as expressly contemplated or permitted by this Agreement, (a) NorthStar and the Bank shall (i) conduct
their business in the ordinary course consistent with past practice, (ii) use reasonable best efforts to maintain and preserve intact their business organization, employees and advantageous business relationships and (iii) maintain their
books, accounts and records in the usual manner on a basis consistent with that heretofore employed and each Party shall (b) take no action that would adversely affect or delay the satisfaction of the conditions set forth in Section 5.1(a)
or 5.1(b) or the ability of either Party to perform its covenants and agreements under this Agreement or to consummate the transactions contemplated hereby.
4.2
Forbearances
.
During the period from the date of this Agreement until the earlier of the termination of this Agreement
pursuant to Article 6 or the Effective Time, except as expressly contemplated or permitted by this Agreement or as otherwise indicated in this Section 4.2, neither NorthStar nor the Bank shall, without the prior written consent of the chief
executive officer or chief financial officer of SBC (which consent shall not be unreasonably withheld or delayed):
(a) amend its
Organizational Documents or any resolution or agreement concerning indemnification of its directors or officers;
(b) (i) adjust,
split, combine, subdivide or reclassify any capital stock, (ii) make, declare, set aside or pay any dividend or make any other distribution on, or directly or indirectly redeem, purchase or otherwise acquire, any shares of its capital stock or
any securities or obligations convertible (whether currently convertible or convertible only after the passage of time or the occurrence of certain events) into or exchangeable for any shares of its capital stock, (iii) grant any Rights,
(iv) issue, sell, pledge, dispose of, grant, transfer, guarantee, encumber, or authorize the issuance, sale, pledge, disposition, grant, transfer, guarantee or encumbrance of, any shares of its capital stock except pursuant to the exercise of
NorthStar Equity Awards outstanding as of the date of this Agreement, or (v) make any change in any instrument or Contract governing the terms of any of its securities;
(c) other than in the ordinary course of business or consistent with past practice or permitted by this Agreement, make any investment (either
by purchase of stock or securities, contributions to capital, property transfers, or purchase of any property or assets) in any other Person;
(d) (i) charge off (except as may otherwise be required by law or by regulatory authorities or by GAAP) or sell (except in the ordinary course
of business consistent with past practices) any of its portfolio of loans, discounts or financing leases, or (ii) sell any asset held as other real estate or other foreclosed assets for an amount less than its book value;
(e) terminate or allow to be terminated any of the policies of insurance it maintains on its business or property, cancel any material
indebtedness owing to it or any claims that it may have possessed, or waive any right of substantial value or discharge or satisfy any material noncurrent liability;
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(f) enter into any new line of business, or change its lending, investment, underwriting, risk
and asset liability management and other banking and operating policies, except as required by applicable Laws or any policies imposed on it by any Governmental Authority;
(g) except in the ordinary course of business consistent with past practices: (i) lend any money or pledge any of its credit in
connection with any aspect of its business whether as a guarantor, surety, issuer of a letter of credit or otherwise, (ii) mortgage or otherwise subject to any Lien or other liability any of its assets, (iii) except for property held as
other real estate owned, sell, assign or transfer any of its assets in excess of $50,000 in the aggregate or (iv) incur any material liability, commitment, indebtedness or obligation (of any kind whatsoever, whether absolute or contingent), or
cancel, release or assign any indebtedness of any Person or any claims against any Person, except pursuant to Contracts in force as of the date of this Agreement and disclosed in
Section 4.2(g) of the Company Disclosure Letter
or
transfer, agree to transfer or grant, or agree to grant a license to, any of its material Intellectual Property;
(h) other than in the
ordinary course of business consistent with past practice, incur any indebtedness for borrowed money (other than short-term indebtedness incurred to refinance short-term indebtedness (it being understood that for purposes of this
Section 4.2(h), short-term shall mean maturities of six months or less)); assume, guarantee, endorse or otherwise as an accommodation become responsible for the obligations of any Person;
(i) other than purchases of investment securities in the ordinary course of business consistent with past practice or in consultation with
SBC, restructure or change its investment securities portfolio or its gap position, through purchases, sales or otherwise, or the manner in which the portfolio is classified or reported;
(j) terminate or waive any material provision of any Contract other than normal renewals of Contracts without materially adverse changes of
terms or otherwise amend or modify any material Contract;
(k) other than in the ordinary course of business and consistent with past
practice or as required by Benefit Plans and Contracts as in effect at the date of this Agreement, (i) increase in any manner the compensation or fringe benefits of, or grant any bonuses to, any of its officers, employees or directors, whether
under a Benefit Plan or otherwise, (ii) pay any pension or retirement allowance not required by any existing Benefit Plan or Contract to any such officers, employees or directors, (iii) become a party to, amend or commit itself to any
Benefit Plan or Contract (or any individual Contracts evidencing grants or awards thereunder) or employment agreement, retention agreement or severance arrangement with or for the benefit of any officer, employee or director, or (iv) accelerate
the vesting of, or the lapsing of restrictions with respect to, Rights pursuant to any NorthStar Stock Plan, except pursuant to Section 1.7, (v) make any changes to a Benefit Plan that are not required by Law or (vi) hire or terminate
the employment of a chief executive officer, president, chief financial officer, chief risk officer, chief credit officer, internal auditor, general counsel or other officer holding the position of senior vice president or above or any employee with
annual base salary and annual incentive compensation that is reasonably anticipated to exceed $100,000;
(l) settle any Litigation, except
in the ordinary course of business;
(m) revalue any of its or its Subsidiaries assets or change any method of accounting or
accounting practice used by it or its Subsidiaries, other than changes required by GAAP or the FDIC or any Regulatory Authority;
(n) file
or amend any Tax Return except in the ordinary course of business; settle or compromise any Tax Liability; or make, change or revoke any Tax election or change any method of Tax accounting, except as required by applicable Law; enter into any
closing agreement as described in Section 7121 of the Internal Revenue Code (or any similar provision of state, local or foreign Law); surrender any claim for a refund of Taxes; or consent to any extension or waiver of the
limitations period applicable to any claim or assessment with respect of Taxes;
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(o) knowingly take, or knowingly omit to take, any action that is reasonably likely to result in
any of the conditions to the Merger set forth in Article 5 not being satisfied, except as may be required by applicable Law;
provided
, that nothing in this Section 4.2(o) shall preclude NorthStar from exercising its rights under
Sections 4.5 or 4.12;
(p) merge or consolidate with any other Person;
(q) acquire assets outside of the ordinary course of business consistent with past practices from any other Person with a value or purchase
price in the aggregate in excess of $50,000, other than purchase obligations pursuant to Contracts to the extent in effect immediately prior to the execution of this Agreement and described in
Section 4.2(q) of the Company Disclosure
Letter
;
(r) enter into any Contract that is material and would have been material had it been entered into prior to the execution of
this Agreement;
(s) the Bank shall not make any adverse changes in the mix, rates, terms or maturities of its deposits or other
Liabilities;
(t) close or relocate any existing branch or facility;
(u) make any extension of credit that, when added to all other extensions of credit to a borrower and its affiliates, would exceed its
applicable regulatory lending limits;
(v) take any action or fail to take any action that will cause NorthStars Consolidated
Tangible Shareholders Equity at the Effective Time to be less than the NorthStar Target Consolidated Tangible Shareholders Equity;
(w) make any loans, or enter into any commitments to make loans, which vary other than in immaterial respects from its written loan policies,
a true and correct copy of such policies has been provided to Seacoast;
provided
, that this covenant shall not prohibit the Bank from extending or renewing credit or loans in the ordinary course of business consistent with past lending
practices or in connection with the workout or renegotiation of loans currently in its loan portfolio;
provided further
, that from the date hereof, any new individual loan or new extension of credit in excess of $500,000 and which is
unsecured, or $1 million and which is secured, shall require the written approval of the chief executive officer, chief financial officer or chief credit officer of SNB, which approval or rejection shall be given at least two (2) Business Days
after the loan package is delivered to SNB;
(x) take any action that at the time of taking such action is reasonably likely to prevent,
or would materially interfere with, the consummation of the Merger;
(y) knowingly take any action that would prevent or impede the Merger
and the Bank Merger from qualifying as a reorganization within the meaning of Section 368(a) of the Internal Revenue Code; or
(z)
agree or commit to take any of the actions prohibited by this Section 4.2.
4.3
Litigation
.
Each of SBC and NorthStar
shall promptly notify each other in writing of any Litigation issued, commenced, brought, conducted or heard by or before, or otherwise involving, any Governmental Authority pending or, to the Knowledge of SBC or NorthStar, as applicable, threatened
against SBC, NorthStar or any of their respective Subsidiaries or directors that (a) questions or would reasonably be expected to question the validity of this Agreement or the other agreements contemplated hereby or any actions taken or to be
taken by SBC, NorthStar or their respective Subsidiaries with respect hereto or thereto, or (b) seeks to enjoin or otherwise restrain the transactions contemplated hereby or thereby. NorthStar shall give Seacoast the opportunity to participate
in the defense or settlement of any shareholder or derivative Litigation against NorthStar or any of
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its Subsidiaries and/or its directors relating to the transactions contemplated by this Agreement, and no such settlement shall be agreed to without Seacoasts prior written consent, which
shall not be unreasonably withheld or delayed.
4.4
State Filings
.
Upon the terms and subject to the conditions of this
Agreement and prior to or in connection with the Closing, SBC and NorthStar shall execute and the Parties shall cause to be filed the Articles of Merger with the Secretary of State of the State of Florida.
4.5
NorthStar Shareholder Approval; Registration Statement and Proxy Statement/ Prospectus
.
(a) NorthStar shall call a meeting of the holders of the NorthStar Common Stock (the
NorthStar Shareholders
) to be held as
soon as reasonably practicable after the Registration Statement is declared effective by SEC for the purpose of obtaining the NorthStar Shareholder Approval and such other matters as the Board of Directors of NorthStar or SBC may direct. NorthStar
shall use its reasonable best efforts to cause such meeting to occur as soon as reasonably practicable. SBC shall be entitled to have a representative attend such meeting of shareholders. The Board of Directors of NorthStar shall make the NorthStar
Directors Recommendation to the NorthStar Shareholders and the NorthStar Directors Recommendation shall be included in the Proxy Statement/Prospectus;
provided
, that the NorthStar Board of Directors may withdraw, modify, or change
in an adverse manner to Seacoast NorthStar Directors Recommendation if the Board of Directors of NorthStar concludes in good faith (after consultation with its outside legal counsel) that the failure to so withdraw, modify, or change its
recommendations would constitute, or would be reasonably likely to result in, a breach of its fiduciary duties to the NorthStar Shareholders under applicable Law. Notwithstanding such withdrawal of such NorthStar Directors Recommendation,
NorthStar shall nevertheless submit this Agreement to the NorthStar Shareholders for adoption.
(b) As soon as reasonably practicable
after the execution of this Agreement (but in no event later than sixty (60) days following the date of this Agreement), SBC shall file the Registration Statement with the SEC and shall use all reasonable efforts to cause the Registration
Statement to be declared effective under the 1933 Act as promptly as practicable after filing thereof. Each Party agrees to cooperate with the other Party, and its Representatives, in the preparation of the Registration Statement and the Proxy
Statement/Prospectus. The Parties agree to use all reasonable best efforts to obtain all Permits required by the Securities Laws to carry out the transactions contemplated by this Agreement, and each Party agrees to furnish all information
concerning it and the holders of its capital stock as may be reasonably requested in connection with any such action.
(c) Each Party
agrees, as to itself and its Subsidiaries, that none of the information supplied or to be supplied by it for inclusion or incorporation by reference in (i) the Registration Statement will, at the time the Registration Statement and each
amendment and supplement thereto, if any, become effective under the 1933 Act, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not
misleading, and (ii) the Proxy Statement/Prospectus and any amendment or supplement thereto, at the date of mailing to the NorthStar Shareholders and at the times of the meeting of the NorthStar Shareholders, will contain an untrue statement of
a material fact or omit to state a material fact necessary in order to make the statements, in light of the circumstances under which they were made, not misleading, or necessary to correct any statement in any earlier statement in the Proxy
Statement/Prospectus or any amendment or supplement thereto. Each Party further agrees that if it shall become aware prior to the Effective Time of any information furnished by it that would cause any of the statements in the Proxy
Statement/Prospectus or the Registration Statement to be false or misleading with respect to any material fact, or to omit to state any material fact necessary to make the statements therein not false or misleading, to promptly inform the other
Party thereof and to take the necessary steps to correct the Proxy Statement/Prospectus or the Registration Statement.
4.6
Listing
of SBC Common Stock
.
SBC shall cause the shares of SBC Common Stock to be issued in the Merger to be approved for listing on NASDAQ, subject to official notice of issuance, prior to the Effective Time.
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4.7
Reasonable Best Efforts
.
(a) Subject to the terms and conditions of this Agreement, the Parties will use all reasonable best efforts to take, or cause to be taken, in
good faith, all actions, and to do, or cause to be done, all things necessary, proper or desirable, or advisable under applicable Laws, including using its reasonable best efforts to lift or rescind any Order adversely affecting its ability to
consummate the transactions contemplated hereby and to cause to be satisfied the conditions in Article 5, to permit consummation of the Merger as promptly as practicable and otherwise to enable consummation of the transactions contemplated
hereby, and each will cooperate fully with and furnish information to, the other Party to that end, and obtain all consents of, and give all notices to and make all filings with, all Governmental Authorities and other third parties that may be or
become necessary for the performance of its obligations under this Agreement and the consummation of the transactions contemplated hereby;
provided
, that nothing contained herein shall preclude any Party from exercising its rights under this
Agreement.
(b) Immediately following the Effective Time (or such later time as SBC may direct), the Parties shall take all actions
necessary to consummate the Bank Merger and cause the Bank Merger Agreement effecting the Bank Merger to be filed with the Office of the Comptroller of the Currency.
(c) Each Party undertakes and agrees to use its reasonable efforts to cause the Merger and the Bank Merger to qualify, and to take no action
that would cause the Merger and the Bank Merger to not qualify, for treatment as reorganizations within the meaning of Section 368(a) of the Internal Revenue Code for federal income Tax purposes.
(d) The Parties shall consult with respect to the character, amount and timing of restructuring charges to be taken by each of them in
connection with the transactions contemplated hereby and shall take such charges in accordance with GAAP, as such Parties mutually agree upon.
4.8
Applications and Consents
.
(a) The Parties shall cooperate in seeking all Consents of Governmental Authorities and other Persons necessary to consummate the transactions
contemplated hereby.
(b) Without limiting the foregoing, the Parties shall cooperate in (i) the filing of applications and notices,
as applicable, with the Board of Governors of the Federal Reserve System under the BHC Act, and obtaining approval of such applications and notices, (ii) the filing of any required applications or notices with any foreign or state banking,
insurance or other Regulatory Authorities and obtaining approval of such applications and notices, (iii) making any notices to or filings with the Small Business Administration, (iv) making any notices or filings under the HSR Act, and
(v) making any filings with and obtaining any Consents in connection with compliance with the applicable provisions of the rules and regulations of any applicable industry self-regulatory organization, including approvals from FINRA and any
relevant state regulator in connection with a change of control of any Subsidiaries that are broker-dealers, or that are required under consumer finance, mortgage banking and other similar Laws (collectively, the
Regulatory
Consents
). Each Party shall file any application and notice required of it to any Regulatory Authority within sixty (60) days following the date of this Agreement.
(c) Each Party will promptly furnish to the other Party copies of applications filed with all Governmental Authorities and copies of written
communications received by such Party from any Governmental Authorities with respect to the transactions contemplated hereby. Each Party agrees that it will consult with the other Party with respect to the obtaining of all Regulatory Consents and
other material Consents advisable to consummate the transactions contemplated by this Agreement and each Party will keep the other Party apprised of the status of material matters relating to completion of the transactions contemplated hereby. All
documents that the Parties or their respective Subsidiaries are responsible for filing with any Governmental Authority in
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connection with the transactions contemplated hereby (including to obtain Regulatory Consents) will comply as to form in all material respects with the provisions of applicable Law.
4.9
Notification of Certain Matters
.
Each Party will give prompt notice to the other (and subsequently keep such other Party
informed on a current basis) upon its becoming aware of the occurrence or existence of any fact, event, development or circumstance that (a) is reasonably likely to result in any Material Adverse Effect on it, or (b) would cause or
constitute a breach of any of its representations, warranties, covenants, or agreements contained herein;
provided
, that any failure to give notice in accordance with the foregoing with respect to any breach shall not be deemed to constitute
the failure of any condition set forth in Sections 5.2(a) or 5.2(b), or Sections 5.3(a) or 5.3(b), as the case may be, to be satisfied, or otherwise constitute a breach of this Agreement by such Party due to its failure to give such notice
unless the underlying breach would independently result in a failure of the conditions set forth in Sections 5.2(a) or 5.2(b), or Sections 5.3(a) or 5.3(b), as the case may be or give rise to a termination right under Section 6.1. NorthStar
shall deliver to Seacoast a copy of each written opinion (or any withdrawal of such opinion) of Sandler ONeill + Partners, L.P. or any other financial advisor, as soon as reasonably practicable after the Companys receipt thereof.
4.10
Investigation and Confidentiality
.
(a) Upon reasonable notice and subject to applicable Laws, each Party shall permit the other to make or cause to be made such investigations
of the business and Properties of it and its Subsidiaries and of its Subsidiaries financial and legal conditions as the other reasonably requests;
provided,
that such investigation shall be reasonably related to the transactions
contemplated hereby and shall not interfere unnecessarily with normal operations. No investigation by a Party shall affect the representations and warranties of the other or the right of a Party to rely thereon. Neither Party shall be required to
provide access to or to disclose information where such access or disclosure would jeopardize the attorney-client privilege of NorthStar (after giving due consideration to the existence of any common interest, joint defense or similar agreement
between the Parties) or contravene any Law or binding agreement entered into prior to the date of this Agreement. The Parties will make appropriate substitute disclosure arrangements under circumstances in which the restrictions of the preceding
sentence apply.
(b) Each Party shall, and shall cause its directors, officers, employees and Representatives to, maintain the
confidentiality of all confidential information furnished to it by the other Party concerning its and its Subsidiaries businesses, operations, and financial positions to the extent required by, and in accordance with, the Confidentiality
Agreement, and shall not use such information for any purpose except in furtherance of the transactions contemplated by this Agreement. No investigation by either Party shall affect the representations and warranties of the other Party or the right
of such investigating Party to rely thereon.
4.11
Press Releases; Publicity
.
Prior to the Effective Time, Seacoast shall
provide NorthStar with a draft of any press release, other public statement or shareholder communication related to this Agreement and the transactions contemplated hereby prior to issuing such press release, public statement or shareholder
communication or making any other public or shareholder disclosure related thereto and Seacoast shall consider any comments and/or modifications to any such press release or public statement provided by NorthStar;
provided
, that nothing in
this Section 4.11 shall be deemed to prohibit any Party from making any disclosure that its counsel deems necessary or advisable in order to satisfy such Partys disclosure obligations imposed by Law, SEC or NASDAQ.
4.12
Acquisition Proposals
.
(a) NorthStar agrees that it will not, and will cause its directors, officers, employees and Representatives and Affiliates not to,
(i) initiate, solicit, or knowingly encourage or facilitate inquiries or proposals with respect to, (ii) engage or participate in any negotiations concerning, or (iii) provide any confidential or nonpublic information or data to, or
have or participate in any discussions with, any Person
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relating to, any Acquisition Proposal;
provided
, that, in the event NorthStar receives an unsolicited
bona fide
Acquisition Proposal that does not violate (i) and
(ii) above at any time prior to, but not after, the time this Agreement is adopted by the NorthStar Shareholder Approval, and NorthStars Board of Directors concludes in good faith (after consultation with its financial advisor and outside
legal counsel) that there is a reasonable likelihood that such Acquisition Proposal constitutes or is reasonably likely to result in a Superior Proposal, NorthStar may, and may permit its officers and Representatives to, furnish or cause to be
furnished nonpublic information or data and participate in such negotiations or discussions to the extent that the Board of Directors of NorthStar concludes in good faith (after consultation with its financial advisor and outside legal counsel) that
failure to take such actions would constitute, or would be reasonably likely to result in, a breach of its fiduciary obligations to the NorthStar Shareholders under applicable Law;
provided further
, that prior to providing any nonpublic
information permitted to be provided pursuant to the foregoing proviso, NorthStar shall have entered into a confidentiality agreement with such third party on terms no less favorable to it than the Confidentiality Agreement. NorthStar will
immediately cease and cause to be terminated any activities, discussions or negotiations conducted before the date of this Agreement with any Persons other than Seacoast with respect to any Acquisition Proposal. NorthStar shall promptly (and in any
event within two Business Days) advise Seacoast following the receipt or notice of any Acquisition Proposal and the substance thereof (including the identity of the Person making such Acquisition Proposal), and will keep Seacoast apprised of any
related developments, discussions and negotiations on a current basis. NorthStar agrees that any breach by its Representatives of this Section 4.12 shall be deemed a breach by NorthStar.
(b) Notwithstanding the foregoing, if NorthStars Board of Directors concludes in good faith (after consultation with its financial
advisor and outside legal counsel) that an Acquisition Proposal constitutes a Superior Proposal and that failure to accept such Superior Proposal would constitute, or would be reasonably likely to result in, a breach of its fiduciary obligations to
the NorthStar Shareholders under applicable Laws, the NorthStar Board of Directors may at any time prior to the NorthStar Shareholder Approval (i) withdraw or modify (a
Change in Recommendation
) the NorthStar Directors
Recommendation or make or cause to be made any third party or public communication proposing or announcing an intention to withdraw or modify the NorthStar Board of Directors recommendation for the NorthStar shareholder approval of this Agreement,
and (ii) terminate this Agreement to enter into a definitive agreement with respect to such Superior Proposal;
provided, however
, that the Board of Directors of NorthStar may not make a Change in Recommendation, and terminate this
Agreement, with respect to an Acquisition Proposal unless (i) NorthStar shall not have breached this Section 4.12 in any material respect and (ii) (A) the Board of Directors of NorthStar determines in good faith (after
consultation with counsel and its financial advisors) that such Superior Proposal has been made and has not been withdrawn and continues to be a Superior Proposal after taking into account all adjustments to the terms of this Agreement that may be
offered by SBC under this Section 4.12(b); (B) NorthStar has given SBC at least four (4) Business Days prior written notice of its intention to take such actions set forth above (which notice shall specify the material terms and
conditions of any such Superior Proposal (including the identity of the Person making such Superior Proposal) and has contemporaneously provided an unredacted copy of the relevant proposed transaction agreements with the Person making such Superior
Proposal, subject to SNB executing any required confidentiality or nondisclosure agreement; and (C) before effecting such Change in Recommendation, NorthStar has negotiated, and has caused its representatives to negotiate in good faith with SBC
during such notice period to the extent SBC wishes to negotiate, to enable SBC to revise the terms of this Agreement such that it would cause such Superior Proposal to no longer constitute a Superior Proposal. In the event of any material change to
the terms of the such Superior Proposal, NorthStar shall, in each case, be required to deliver to SBC a new written notice, the notice period shall have recommenced and NorthStar shall be required to comply with its obligations under this
Section 4.12 with respect to such new written notice. NorthStar will advise SBC in writing within twenty-four (24) hours following the receipt of any Acquisition Proposal and the substance thereof (including the identity of the Person
making such Acquisition Proposal) and will keep SBC apprised of any related developments, discussions and negotiations (including the terms and conditions of the Acquisition Proposal) on a current basis.
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4.13
Takeover Laws
.
If any Takeover Law may become, or may purport to be,
applicable to the transactions contemplated hereby, NorthStar and the members of its Board of Directors will grant such approvals and take such actions as are necessary (other than any action requiring the approval of its shareholders (other than as
contemplated by Section 4.5)) so that the transactions contemplated by this Agreement may be consummated as promptly as practicable on the terms contemplated hereby and otherwise act to eliminate or minimize the effects of any Takeover Law on
any of the transactions contemplated by this Agreement.
4.14
Employee Benefits and Contracts
.
(a) Following the Effective Time, SBC shall maintain or cause to be maintained employee benefit plans and compensation opportunities for the
benefit of employees (as a group) who are full-time active employees of NorthStar on the Closing Date (
Covered Employees
) that provide employee benefits and compensation opportunities which, in the aggregate, are substantially
comparable to the employee benefits and compensation opportunities that are made available on a uniform and non-discriminatory basis to similarly situated employees of SBC or its Subsidiaries, as applicable;
provided, however
, that in no
event shall any Covered Employee be eligible to participate in any closed or frozen plan of SBC or its Subsidiaries; and
provided further
that in no event shall SBC be required to take into account any retention arrangements or equity
compensation when determining whether employee benefits are substantially comparable. SBC shall give the Covered Employees full credit for their prior service with NorthStar and its Subsidiaries (i) for purposes of eligibility (including
initial participation and eligibility for current benefits) and vesting under any qualified or non-qualified employee benefit plan maintained by SBC and in which Covered Employees may be eligible to participate and (ii) for all purposes under
any welfare benefit plans, vacation plans and similar arrangements maintained by SBC.
(b) With respect to any employee benefit plan of
SBC that is a health, dental, vision or other welfare plan in which any Covered Employee is eligible to participate, for the plan year in which such Covered Employee is first eligible to participate, SBC or its applicable Subsidiary shall use its
commercially reasonable best efforts to (i) cause any pre-existing condition limitations or eligibility waiting periods under such SBC or Subsidiary plan to be waived with respect to such Covered Employee to the extent such condition was or
would have been covered under the NorthStar Benefit Plan in which such Covered Employee participated immediately prior to the Effective Time, and (ii) recognize any health, dental, vision or other welfare expenses incurred by such Covered
Employee in the year that includes the Closing Date (or, if later, the year in which such Covered Employee is first eligible to participate) for purposes of any applicable deductible and annual out-of-pocket expense requirements under any such
health, dental, vision or other welfare plan.
(c) Nothing in this Section 4.14 shall be construed to limit the right of SBC or any
of its Subsidiaries (including, following the Closing Date, NorthStar) to amend or terminate any NorthStar Benefit Plan or other employee benefit plan, to the extent such amendment or termination is permitted by the terms of the applicable plan, nor
shall anything in this Section 4.14 be construed to require SBC or any of its Subsidiaries (including, following the Closing Date, NorthStar) to retain the employment of any particular Covered Employee for any fixed period of time following the
Closing Date, and the continued retention (or termination) by SBC or any of its Subsidiaries of any Covered Employee subsequent to the Effective Time shall be subject in all events to SBCs or its applicable Subsidiarys normal and
customary employment procedures and practices, including customary background screening and evaluation procedures, and satisfactory employment performance.
(d) If, within six (6) months after the Effective Time, any Covered Employee (other than those Covered Employees who receive change in
control benefits or retention benefits pursuant to employment or retention agreements with NorthStar), is terminated by SBC or its Subsidiaries other than (i) for cause or (ii) as a result of death or disability, then SBC shall pay
severance to such Covered Employee in an amount as set forth in the severance policies set forth in
Section 4.14(d)(i) of the Seacoast Disclosure Letter
(and based upon the non-exempt and exempt status and/or title for the Covered
Employee with NorthStar at the Closing). Any severance to which a Covered Employee may be entitled in connection with a termination occurring more than six (6) months after the Effective Time will be as set forth in the severance policies set
forth in
Section 4.14(d)(ii) of the Seacoast Disclosure Letter
.
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(e) Except to the extent otherwise expressly provided in this Section 4.14, SBC shall honor,
and SBC shall be obligated to perform, all agreements that are set forth in
Section 4.14(e) of the Company Disclosure Letter
.
4.15
Indemnification
.
(a) From and after the Effective Time, in the event of any threatened or actual claim, action, suit, proceeding, or investigation, whether
civil, criminal, or administrative, in which any Person who is now, or has been at any time prior to the date of this Agreement, or who becomes prior to the Effective Time, a director or officer of NorthStar or any of its Subsidiaries (each an
Indemnified Party
) is, or is threatened to be, made a party based in whole or in part on, or arising in whole or in part out of, or pertaining to (i) the fact that the Indemnified Party is or was a director, officer, or
employee of NorthStar, its Subsidiaries or any of its predecessors, or (ii) this Agreement or any of the transactions contemplated hereby, whether in any case asserted or arising before or after the Effective Time, Seacoast shall indemnify,
defend and hold harmless, to the same extent such Indemnified Parties have the right to be indemnified and/or have the right to advancement of expenses pursuant to (x) the Organizational Documents of NorthStar or such Subsidiary, as applicable,
(y) the FBCA or other applicable Law, and (z) any contractual agreement set forth in
Section 4.15(a) of the Company Disclosure Letter
, each such Indemnified Party against any Liability (including advancement of reasonable
attorneys fees and expenses prior to the final disposition of any claim, suit, proceeding, or investigation to each Indemnified Party to the fullest extent permitted by Law upon receipt of any undertaking required by applicable Law),
judgments, fines, and amounts paid in settlement in connection with any such threatened or actual claim, action, suit, proceeding, or investigation. In the event of any such threatened or actual claim, action, suit, proceeding, or investigation
(whether asserted or arising before or after the Effective Time), the Indemnified Parties may retain counsel reasonably satisfactory to them;
provided
, that (1) Seacoast shall have the right to assume the defense thereof and upon such
assumption Seacoast shall not be required to advance to any Indemnified Party any legal expenses of other counsel or any other expenses subsequently incurred by any Indemnified Party in connection with the defense thereof, except that if Seacoast
elects not to assume such defense or counsel for the Indemnified Parties reasonably advises the Indemnified Parties that there are material issues that raise conflicts of interest between Seacoast and the Indemnified Parties, the Indemnified Parties
may retain counsel reasonably satisfactory to them, and Seacoast shall advance the reasonable fees and expenses of such counsel for the Indemnified Parties, (2) Seacoast shall not be liable for any settlement effected without its prior written
consent (which consent shall not be unreasonably withheld), and (3) Seacoast shall have no obligation hereunder to any Indemnified Party when and if a court of competent jurisdiction shall determine, and such determination shall have become
final, that indemnification of such Indemnified Party in the manner contemplated hereby is prohibited by applicable Law.
(b) Seacoast
agrees that all existing rights to indemnification and all existing limitations on Liability existing in favor of the directors, officers, and employees of NorthStar and the Bank as provided in their respective Organizational Documents and any
contractual agreement set forth in
Section 4.15(b) of the Company Disclosure Letter
as in effect as of the date of this Agreement shall survive the Merger and shall continue in full force and effect, and shall be honored by such entities
or their respective successors as if they were the indemnifying party thereunder, without any amendment thereto;
provided
, that nothing contained in this Section 4.15(b) shall be deemed to preclude the liquidation, consolidation, or
merger of SBC or SNB, in which case all of such rights to indemnification and limitations on Liability shall be deemed to so survive and continue notwithstanding any such liquidation, consolidation or merger. Without limiting the foregoing, in any
case in which approval by Seacoast is required to effectuate any indemnification for any director or officer of NorthStar or the Bank, Seacoast shall direct, at the election of the Indemnified Party that the determination of any such approval shall
be made by independent counsel mutually agreed upon between Seacoast and the Indemnified Party.
(c) Seacoast, from and after the
Effective Time, will directly or indirectly cause the Persons who served as directors or officers of NorthStar or the Bank at or before the Effective Time to be covered by NorthStars
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existing directors and officers liability insurance policy;
provided
, that Seacoast may substitute therefor policies of at least the same coverage and amounts containing terms
and conditions that are not less advantageous than such policy;
provided further
, that in no event shall the aggregate premiums applicable to coverage exceed 150% of the current annual premium paid by NorthStar (as set forth in the Company
Disclosure Letter) for such insurance. Such insurance coverage shall commence at the Effective Time and will be provided for a period of no less than six (6) years after the Effective Time.
(d) If SBC or SNB or any of their respective successors or assigns shall consolidate with or merge into any other Person and shall not be the
continuing or surviving Person of such consolidation or merger or shall transfer all or substantially all of its assets to any Person, then and in each case, proper provision shall be made so that the successors and assigns of SBC or SNB, as
applicable, as the surviving entities shall assume the obligations set forth in this Section 4.15.
(e) The provisions of this
Section 4.15 are intended to be for the benefit of and shall be enforceable by, each Indemnified Party and his or her heirs and representatives.
4.16.
Resolution of Certain Matters
.
NorthStar shall use its reasonable best efforts and take any and all actions (including
completing any necessary filings with Regulatory Authorities) to resolve the items set forth on
Section 4.16 of the Seacoast Disclosure Letter
, all subject to SBCs reasonable satisfaction.
4.17
Claims Letters
.
Concurrently with the execution and delivery of this Agreement and effective upon the Closing, NorthStar
has caused each director of NorthStar and the Bank to execute and deliver a Claims Letter in the form attached hereto as
Exhibit C
.
4.18
Restrictive Covenant Agreement
.
Concurrently with the execution and delivery of this Agreement, NorthStar has caused each
director of NorthStar and the Bank set forth on
Section 4.18 to the Seacoast Disclosure Letter
to execute and deliver a Restrictive Covenant Agreement in the form attached hereto as
Exhibit D
.
4.19.
Systems Integration; Operating Functions
.
From and after the date hereof, NorthStar shall and shall cause the Bank and its
directors, officers and employees to, and shall make all commercially reasonable best efforts (without undue disruption to either business) to cause the Banks data processing consultants and software providers to, cooperate and assist
NorthStar and Seacoast in connection with an electronic and systems conversion of all applicable data of NorthStar and the Bank to the Seacoast systems, including the training of employees of NorthStar and the Bank during normal banking hours.
Following the date hereof, NorthStar shall provide Seacoast access to the Banks data files to facilitate the conversion process, including but not limited to, (i) sample data files with data dictionary no later than 30 days following the
date of this Agreement; (ii) a full set of data files, including electronic banking and online bill payment data, for mapping and mock conversion no later than 90 days prior to the targeted conversion date as determined by Seacoast;
(iii) a second full set of data files from which to establish CIS records, deposit shells, electronic banking accounts, bill payment payees and order debit cards no later than 21 days prior to the targeted conversion date; and (iv) a final
set of data files no later than the date of the targeted conversion date. NorthStar shall cooperate with Seacoast in connection with the planning for the efficient and orderly combination of the parties and the operation of SNB (including the former
operations NorthStar) after the Merger and the Bank Merger, and in preparing for the consolidation of appropriate operating functions to be effective at the Effective Time or such later date as Seacoast may decide. NorthStar shall take any action
Seacoast may reasonably request prior to the Effective Time to facilitate the combination of the operations of the Bank with SNB. Without limiting the foregoing, NorthStar shall provide office space and support services (and other reasonably
requested support and assistance) in connection with the foregoing, and senior officers NorthStar and Seacoast shall meet from time to as NorthStar or Seacoast may reasonably request, to review the financial and operational affairs of NorthStar and
its Subsidiaries, and NorthStar shall give due consideration to Seacoasts input on such matters, with the understanding that, notwithstanding any other provision contained in this Agreement, (i) neither SBC nor SNB shall be permitted to
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exercise control of NorthStar or the Bank prior to the Effective Time, and (ii) neither NorthStar nor the Bank shall be under any obligation to act in a manner that could reasonably be
deemed to constitute anti-competitive behavior under federal or state antitrust Laws.
4.20.
Closing Payments
.
Immediately
prior to the Closing, NorthStar shall wire, in immediately payable funds, the sums due to the persons listed on
Section 4.20 of the Seacoast Disclosure Letter
.
ARTICLE 5
CONDITIONS
PRECEDENT TO OBLIGATIONS TO CONSUMMATE
5.1
Conditions to Obligations of Each Party
.
The respective obligations of
each Party to perform this Agreement and to consummate the Merger and the other transactions contemplated hereby are subject to the satisfaction of the following conditions, unless waived by each Party pursuant to Section 7.7:
(a)
NorthStar Shareholder Approval
. NorthStar shall have obtained the NorthStar Shareholder Approval.
(b)
Regulatory Approvals
. All Regulatory Consents required by law to consummate the transactions contemplated by this Agreement and the
Bank Merger Agreement (the
Required Consents
) shall (i) have been obtained or made and be in full force and effect and all waiting periods required by Law shall have expired, and (ii) not be subject to any condition or
consequence that would, after the Effective Time, have a Material Adverse Effect on Seacoast or any of its Subsidiaries, including NorthStar and the Bank.
(c)
No Orders or Restraints; Illegality
. No Order issued by any Governmental Authority (whether temporary, preliminary, or permanent)
preventing the consummation of the Merger shall be in effect and no Law or Order shall have been enacted, entered, promulgated or enforced by any Governmental Authority that prohibits, restrains or makes illegal the consummation of the Merger.
(d)
Registration Statement
. The Registration Statement shall be effective under the 1933 Act, no stop orders suspending the
effectiveness of the Registration Statement shall have been issued, and no action, suit, proceeding, or investigation by the SEC to suspend the effectiveness thereof shall have been initiated and be continuing.
(e)
Listing of SBC Common Stock
. The shares of SBC Common Stock to be issued to the holders of the Company Common Stock upon
consummation of the Merger shall have been approved for listing on NASDAQ.
5.2
Conditions to Obligations of Seacoast
.
The
obligations of Seacoast to perform this Agreement and consummate the Merger and the other transactions contemplated hereby are subject to the satisfaction of the following conditions, unless waived by Seacoast pursuant to Section 7.7:
(a)
Representations and Warranties
. The representations and warranties of the Company set forth in this Agreement, after giving effect
to Sections 3.1 and 3.2, shall be true and correct as of the date of this Agreement and as of the Closing Date as though made at and as of the Closing Date (except that representations and warranties that by their terms speak specifically as of
the date of this Agreement or some other date shall be true and correct as of such date), and Seacoast shall have received certificates, dated the Closing Date, signed on behalf of the Company by the chief executive officer and the chief financial
officer of NorthStar, to such effect.
(b)
Performance of Agreements and Covenants
. Each and all of the agreements and covenants of
the Company to be performed and complied with pursuant to this Agreement prior to the Effective Time shall have been duly performed and complied with in all material respects and Seacoast shall have received certificates, dated the Closing Date,
signed on behalf of the Company by the chief executive officer and the chief financial officer of NorthStar, to such effect.
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(c)
Corporate Authorization
. Seacoast shall have received from the Company
(i) certified resolutions of its Board of Directors and shareholders authorizing the execution and delivery of this Agreement and the Bank Merger Agreement and the consummation of the transactions contemplated hereby and thereby; (ii) a
certificate as to the incumbency and signatures of officers authorized to execute this Agreement; and (iii) certificates of good standing, dated not more than three (3) Business Days before the Closing Date, from the Secretary of State of
the State of Florida.
(d)
Consents
. The Company shall have obtained all Consents required as a result of the transactions
contemplated by this Agreement pursuant to the Contracts set forth in Section 3.3(b) and Section 3.3(k) of the Company Disclosure Letter.
(e)
Material Adverse Effect
. Since the date hereof, there shall not have occurred any fact, circumstance or event, individually or
taken together with all other facts, circumstances or events that has had or is reasonably likely to have a Material Adverse Effect on NorthStar or the Bank.
(f)
Tax Opinions
. Seacoast shall have received a written opinion from Alston & Bird LLP in a form reasonably satisfactory to
it, dated the date of the Effective Time, substantially to the effect that the Merger will constitute a reorganization within the meaning of Section 368(a) of the Internal Revenue Code, and each of SBC and NorthStar will be a party to that
reorganization within the meaning of Section 368(b) of the Internal Revenue Code. In rendering such opinion, Alston & Bird LLP shall be entitled to rely upon representations of officers of Seacoast and the Company reasonably
satisfactory in form and substance to such counsel.
(g)
Claims Letters
. Seacoast shall have received from the Persons listed in
Section 4.17 of the Seacoast Disclosure Letter
an executed written agreement in substantially the form of
Exhibit C
.
(h)
Restrictive Covenant Agreement
. Each of the Persons as set forth in
Section 4.18 of the Seacoast Disclosure Letter
shall have entered into the Restrictive Covenant Agreement in substantially the form of
Exhibit D
.
(i)
NorthStar
Consolidated Tangible Shareholders Equity
. As of the close of business on the fifth (5th) Business Day prior to the Closing Date, (A) NorthStars Consolidated Tangible Shareholders Equity shall be an amount not less
than the NorthStar Target Consolidated Tangible Shareholders Equity, and (B) the Banks general allowance for loan and lease losses shall be an amount not less than $1.82 million in the aggregate.
(j)
Vesting, Exercise or Termination of NorthStar Equity Awards
. All outstanding NorthStar Equity Awards shall have been vested,
exercised and/or terminated as provided in Section 1.7, and NorthStars Board of Directors and shareholders shall have taken all action necessary to terminate the NorthStar Stock Plans effective prior to the Effective Time. No NorthStar
Equity Awards, whether vested or unvested, shall be outstanding as of the Effective Time.
(k)
Completion of Section 4.16
Items
. Each of the items set forth in
Section 4.16 of the Seacoast Disclosure Letter
shall have been completed and finalized prior to the Effective Time, all to the reasonable satisfaction of Seacoast.
(l)
FIRPTA Certificate.
Seacoast shall have received from NorthStar and the Bank, under penalties of perjury, a certificate stating
that each of NorthStar and the Bank, respectively, is not and has not been a United States real property holding corporation, dated as of the Closing Date and in form and substance required under Treasury Regulation Section 1.897-2(h) and as
reasonably acceptable to Seacoast.
(m)
Approval of 280G Payments
. If the execution of this Agreement and the
consummation of the transactions contemplated hereby would entitle any Person who is a disqualified individual to a parachute payment (as such terms are defined in Section 280G of the Internal Revenue Code) absent
approval by the
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shareholders of the Company, then, at least three (3) Business Days prior to the Closing Date, the Company will take all necessary actions (including obtaining any required waivers or
consents from each disqualified individual) to submit to a shareholder vote, in a manner that satisfies the stockholder approval requirements for exemption under Section 280G(b)(5)(A)(ii) of the Internal Revenue Code and the regulations
promulgated thereunder, the right of each disqualified individual to receive or retain, as applicable, any payments and benefits to the extent necessary so that no payment or benefit received by such disqualified person shall be deemed a parachute
payment. Such vote shall establish the disqualified individuals right to the payment or benefits. The Company and the shareholders will be responsible for all liabilities and obligations related to the matters described in this
Section 5.2(m), including any claims by disqualified individuals that they are entitled to payment or reimbursement for any related excise taxes. The Company will provide to Seacoast copies of any waivers, consents, and shareholder information
statements or disclosures relating to Section 280G and the shareholder vote described in this Section 5.2(m), a reasonable period of time before disseminating such materials to the disqualified individuals and the Companys
shareholders, and will work with Seacoast in good faith regarding any comments provided by Seacoast thereto.
5.3
Conditions to
Obligations of the Company
.
The obligations of the Company to perform this Agreement and consummate the Merger and the other transactions contemplated hereby are subject to the satisfaction of the following conditions, unless waived by the
Company pursuant to Section 7.7:
(a)
Representations and Warranties
. The representations and warranties of Seacoast set forth
in this Agreement, after giving effect to Sections 3.1 and 3.2, shall be true and correct as of the date of this Agreement and as of the Closing Date as though made at and as of the Closing Date (except that representations and warranties that
by their terms speak specifically as of the date of this Agreement or some other date shall be true and correct as of such date) and NorthStar shall have received a certificate, dated the Closing Date, signed on behalf of Seacoast by a duly
authorized officer of Seacoast, to such effect.
(b)
Performance of Agreements and Covenants
. Each and all of the agreements and
covenants of Seacoast to be performed and complied with pursuant to this Agreement prior to the Effective Time shall have been duly performed and complied with in all material respects and NorthStar shall have received a certificate, dated the
Closing Date, signed on behalf of Seacoast by a duly authorized officer of Seacoast, to such effect.
(c)
Tax Opinion
. NorthStar
shall have received a written opinion from Bush Ross, P.A. in a form reasonably satisfactory to it, dated the date of the Effective Time, substantially to the effect that, (i) the Merger will constitute a reorganization within the meaning of
Section 368(a) of the Internal Revenue Code, (ii) each of SBC and NorthStar will be a party to that reorganization within the meaning of Section 368(b) of the Internal Revenue Code, (iii) no gain or loss will be recognized by
holders of the NorthStar Common Stock to the extent such holders exchange their NorthStar Stock solely for SBC Common Stock pursuant to the Merger, (iv) that basis in the shares of SBC Common Stock received in the Merger will consist of the
basis for the shares of NorthStar Common Stock exchanged therefor (reduced by an amount of any cash received), and (v) the holding period for the shares of SBC Common Stock received in the Merger will include the holding period for the shares
of NorthStar Common Stock exchanged therefor. In rendering such opinion, Bush Ross, P.A. shall be entitled to rely upon representations of officers of Seacoast and the Company reasonably satisfactory in form and substance to it.
(d)
Material Adverse Effect
. Since the date hereof, there shall not have occurred any fact, circumstance or event, individually or
taken together with all other facts, circumstances or events that has had or is reasonably likely to have a Material Adverse Effect on Seacoast.
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ARTICLE 6
TERMINATION
6.1
Termination
.
Notwithstanding any other provision of this Agreement, and notwithstanding NorthStar Shareholder Approval, this Agreement and the Bank Merger Agreement may be terminated and the Merger and the Bank Merger abandoned at any
time prior to the Effective Time:
(a) By mutual consent of the Board of Directors of NorthStar and the Board of Directors or Executive
Committee of the Board of Directors of SBC; or
(b) By the Board of Directors of either Party in the event of a breach of any
representation, warranty, covenant or agreement contained in this Agreement on the part of the other Party, which breach would result in, if occurring or continuing on the Closing Date, the failure of the conditions to the terminating Partys
obligations set forth in Sections 5.2 or 5.3, as the case dictates, and that cannot be or has not been cured within thirty (30) days after the giving of written notice to the breaching Party specifying the existence and nature of such
breach, provided that the right to effect such cure shall not extend beyond the date set forth in subparagraph (d) below; or
(c) By
the Board of Directors of either Party in the event that (i) any Regulatory Consent required to be obtained from any Governmental Authority has been denied by final non-appealable action of such Governmental Authority, or (ii) the
NorthStar Shareholder Approval has not been obtained by reason of the failure to obtain the required vote at the NorthStar shareholders meeting where this Agreement was presented to such shareholders for approval and voted upon; or
(d) By the Board of Directors of either Party in the event that the Merger has not been consummated by February 28, 2018, if the failure
to consummate the transactions contemplated hereby on or before such date is not caused by any breach of this Agreement by the Party electing to terminate pursuant to this Section 6.1(d); or
(e) By the Board of Directors of SBC in the event that (i) NorthStar has withdrawn, qualified or modified the NorthStar Directors
Recommendation in a manner adverse to Seacoast or shall have resolved to do any of the foregoing, (ii) NorthStar has failed to substantially comply with its obligations under Sections 4.5 or 4.12, or (iii) the Board of Directors of
NorthStar has recommended, endorsed, accepted or agreed to an Acquisition Proposal; or
(f) By the Board of Directors of NorthStar in the
event that (i) the Board of Directors of NorthStar has determined in accordance with Section 4.12 that a Superior Proposal has been made with respect to it and has not been withdrawn, and (ii) neither NorthStar nor any of its
Representatives has failed to comply in all material respects with Section 4.12; or
(g) By the Board of Directors of SBC if holders
of more than five percent (5.0%) in the aggregate of the outstanding NorthStar Common Stock shall have voted such shares against this Agreement or the Merger at any meeting called for the purpose of voting thereon and shall have given notice of
their intention to exercise their dissenters rights in accordance with the FBCA; or
(h) By the Board of Directors of NorthStar in
the event the Board of Directors of NorthStar so determines by a vote of the majority of the members of the entire Board of Directors of NorthStar, at any time during the five (5)-day period commencing with the Determination Date (as defined below),
if both of the following conditions are satisfied:
(i) the number obtained by dividing the Average Closing Price by the
Starting Price (each as defined below) (the
Buyer Ratio
) shall be less than 0.85; and
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(ii) (x) the Buyer Ratio shall be less than (y) the number (the
Index Ratio
) obtained by (A) dividing the Final Index Price by the Initial Index Price (each as defined below), and (B) subtracting 0.20 from the quotient in clause (ii)(y)(A);
subject, however, to the following three (3) sentences. If NorthStar elects to exercise the termination right pursuant to this Section 6.1(h),
NorthStar shall give written notice to Seacoast not later than the end of the five (5)-day period referred to above (
provided
that such notice of election to terminate may be withdrawn at any time within the aforementioned five (5)-day
period). During the five (5)-day period commencing with its receipt of such notice, Seacoast shall have the option to increase the consideration to be received by the holders of NorthStar Common Stock hereunder, by adjusting the Stock Consideration
(calculated to the nearest one ten-thousandth ( 1/10,000)) to equal the lesser of (x) the quotient (rounded to the nearest one ten-thousandth (1/10,000)) of (A) the product of (1) the Starting Price, multiplied by
(2) 0.85, and further multiplied by (3) the Stock Consideration (as then in effect), divided by (B) the Average Closing Price, and (y) the quotient (rounded to the nearest one ten-thousandth (1/10,000)) of (A) the
product of (1) the Index Ratio, multiplied by (2) the Stock Consideration (as then in effect), divided by (B) the Buyer Ratio. If Seacoast so elects within such five (5)-day period, it shall give prompt written notice to NorthStar of
such election and the revised Stock Consideration, whereupon no termination shall have occurred pursuant to this Section 6.1(h), and this Agreement shall remain in effect in accordance with its terms (except as the Stock Consideration shall
have been so modified).
For purposes of this Section 6.1(h), the following terms shall have the meanings indicated:
Average Closing Price
means the average of the VWAP of SBC Common Stock during the ten (10) consecutive full Trading
Days ending on the Trading Day prior to the Determination Date.
Determination Date
means the later of (i) the
date on which the last Regulatory Approval is obtained without regard to any requisite waiting period or (ii) the date on which the NorthStar Shareholder Approval is obtained.
Final Index Price
means the average of the Index Prices for the ten (10) consecutive Trading Days ending on the
Trading Day prior to the Determination Date.
Index Group
means the Nasdaq Bank Index or, if such index is not
available, such substitute or similar index as substantially replicates the Nasdaq Bank Index.
Index Price
means the
closing price on any given Trading Day of the Index Group.
Initial Index Price
means the average of the Index Prices
for the ten (10) consecutive Trading Days ending on the last Trading Day immediately preceding the date of the first public announcement of entry into this Agreement.
Starting Price
means $23.50.
If SBC or any company belonging in the Index Group declares or effects a stock dividend, reclassification, recapitalization, split-up,
combination, exchange of shares or similar transaction between the date of this Agreement and the Determination Date, the prices for the SBC Common Stock or the common stock of such other company, as the case may be, shall be appropriately adjusted
for the purposes of applying this Section 6.1(h).
6.2
Effect of Termination
.
In the event of the termination and
abandonment of this Agreement pursuant to Section 6.1, this Agreement shall become void and have no effect, and none of Seacoast, the Company, any of their respective Subsidiaries, or any of the officers or directors of any of them, shall have
any Liability of any nature whatsoever hereunder or in conjunction with the transactions contemplated hereby, except that (i) the
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provisions of Section 4.10(b), Article 6 and Article 7 shall survive any such termination and abandonment, and (ii) a termination of this Agreement shall not relieve the breaching
Party from Liability for an uncured willful breach of a representation, warranty, covenant, or agreement of such Party contained in this Agreement.
ARTICLE 7
MISCELLANEOUS
7.1
Definitions
.
(a) Except as otherwise provided herein, the capitalized terms set forth below shall have the following meanings:
1933 Act
shall mean the Securities Act of 1933, as amended, and the rules and regulations thereunder.
1934 Act
shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations
thereunder.
Acquisition Proposal
shall mean, other than the transactions contemplated by this
Agreement, any written offer, proposal or inquiry relating to, or any third party indication of interest in, (i) any acquisition or purchase, direct or indirect, of 25% or more of the consolidated assets of NorthStar and its Subsidiaries or 25%
or more of any class of equity or voting securities of NorthStar or the Bank, (ii) any tender offer (including a self-tender offer) or exchange offer that, if consummated, would result in such third party beneficially owning 25% or more of any
class of equity or voting securities of NorthStar or the Bank, (iii) a merger, consolidation, share exchange, business combination, reorganization, recapitalization, liquidation, dissolution or other similar transaction involving NorthStar or
any of its Subsidiaries, or (iv) any other transaction the consummation of which could reasonably be expected to impede, interfere with, prevent or materially delay the Merger or that could reasonably be expected to dilute materially the
benefits to Seacoast of the transactions contemplated hereby.
Affiliate
of a Person shall mean
(i) any other Person directly, or indirectly through one or more intermediaries, controlling, controlled by or under common control with such Person or (ii) any director, partner or officer of such Person or, for any Person that is a
limited liability company, any manager or managing member thereof. For purposes of this definition, control (and its derivatives) shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through ownership of equity, voting or other interests, as trustee or executor, by contract or otherwise.
Benefit Plan
shall mean any employee benefit plan (as that term is defined in Section 3(3)
of ERISA), and the NorthStar Stock Plan, and any other employee benefit plan, policy, or agreement, whether or not covered by ERISA, and any pension, retirement, profit-sharing, deferred compensation, equity compensation, employment, stock purchase,
gross-up, retention, incentive compensation, employee stock ownership, severance, vacation, bonus, or deferred compensation plan, policy, or arrangement, any medical, vision, dental, or other written health plan, any life insurance plan, fringe
benefit plan, and any other employee program or agreement, whether formal or informal, that is entered into, maintained by, sponsored in whole or in part by, or contributed to by NorthStar or any Subsidiaries thereof, or under which NorthStar or any
Subsidiaries thereof could have any obligation or Liability, whether actual or contingent, with respect to any NorthStar employee.
BHC Act
shall mean the federal Bank Holding Company Act of 1956, as amended, and rules and regulations
thereunder.
Business Day
shall mean any day that NASDAQ is normally open for trading for a full
day and that is not a Saturday, a Sunday or a day on which banks in New York, New York are authorized or required to close for regular banking business.
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Confidentiality Agreement
shall mean that certain
Confidentiality Agreement, dated February 6, 2017, by and between Seacoast and NorthStar.
Consent
shall mean any consent, approval, authorization, clearance, exemption, waiver, or similar affirmation by any Person pursuant to any Contract, Law, Order, or Permit.
Consolidated Tangible Shareholders Equity
shall mean as to a Party as of the close of business on the
fifth (5th) Business Day prior to the Closing Date (the
Measuring Date
), the consolidated shareholders equity of such Party as set forth on its balance sheet on the Measuring Date calculated in accordance with GAAP and
including the recognition of or accrual for all Permitted Expenses paid or incurred, or projected to be paid or incurred, in connection with this Agreement and the transactions contemplated by it, excluding (i) any change related to recapture
of any of the allowance for loan and lease losses following the date of this Agreement and receipt of any related regulatory approval, and (ii) all intangible assets, and minus any change since March 31, 2017 in unrealized gains or plus
any unrealized losses (as the case may be) in such Partys Subsidiaries securities portfolio due to mark-to-market adjustments as of the Measuring Date. The calculation of Consolidated Tangible Shareholders Equity shall be delivered
by each Party to the other Party, accompanied by appropriate supporting detail, no later than the close of business on the fourth (4th) Business Day preceding the Closing Date, and such calculation shall be subject to verification and approval
by the other Party, which approval shall not be unreasonably withheld.
Contract
shall mean any written
or oral agreement, arrangement, commitment, contract, indenture, instrument, lease, understanding, note, bond, license, mortgage, deed of trust or undertaking of any kind or character to which any Person is a party or that is binding on any Person
or its capital stock, assets, or business.
Default
shall mean (i) any breach or violation of or
default under any Contract, Law, Order, or Permit, (ii) any occurrence of any event that with the passage of time or the giving of notice or both would constitute a breach or violation of or default under any Contract, Law, Order, or Permit, or
(iii) any occurrence of any event that with or without the passage of time or the giving of notice would give rise to a right to terminate or revoke, change the current terms of, or renegotiate, or to accelerate, increase, or impose any
Liability under, any Contract, Law, Order, or Permit, in all instances subject to any stated grace or cure period.
Dissenting Shares
shall mean shares of NorthStar Common Stock that are owned by shareholders that properly
demand and exercise their dissenters rights and who comply in all respects with the provisions of Section 607.1301 to 607.1333 of the FBCA.
Environmental Laws
shall mean all Laws relating to pollution or protection of human health or the
environment (including ambient air, surface water, ground water, land surface, or subsurface strata) and which are administered, interpreted, or enforced by the United States Environmental Protection Agency and state and local agencies with
jurisdiction over, and including common Law in respect of, pollution or protection of the environment, including the Comprehensive Environmental Response, Compensation and Liability Act, as amended, the Resource Conservation and Recovery Act, as
amended, and other Laws relating to emissions, discharges, releases, or threatened releases of any Hazardous Material, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport, or handling of
any Hazardous Material, including all requirements for permits, licenses and other authorizations that may be required.
ERISA Affiliate
of any Person means any entity that is, or at any relevant time was, a member of (i) a
controlled group of corporations (as defined in Section 414(b) of the Internal Revenue Code), (ii) a group of trades or businesses under common control (as defined in Section 414(c) of the Internal Revenue Code) or (iii) an
affiliated service group (as defined under Section 414(m) of the Internal Revenue Code or the regulations under Section 414(o) of the Internal Revenue Code) with such Person.
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ERISA Plan
shall mean any Benefit Plan that is an
employee welfare benefit plan, as that term is defined in Section 3(l) of ERISA, or an employee pension benefit plan, as that term is defined in Section 3(2) of ERISA.
Exchange Ratio
shall mean 0.5605.
Exhibits
A through D, inclusive, shall mean the Exhibits so marked, copies of which are attached to this
Agreement. Such Exhibits are hereby incorporated by reference herein and made a part hereof, and may be referred to in this Agreement and any other related instrument or document without being attached hereto.
Facilities
shall mean all buildings and improvements on the Property of any Person.
FBCA
shall mean the Florida Business Corporation Act.
FDIC
shall mean the Federal Deposit Insurance Corporation.
FINRA
shall mean the Financial Industry Regulatory Authority.
Federal Reserve Board
shall mean the Board of Governors of the Federal Reserve System.
Financial Statements
shall mean (i) the consolidated balance sheets (including related notes and
schedules, if any) of a Party and its Subsidiaries as of March 31, 2017, and as of December 31, 2015 and 2016, and the related consolidated statements of operations, cash flows (as to annual financial statements only), and
shareholders equity and comprehensive income (loss) (including related notes and schedules, if any) for the three months ended March 31, 2017 and for each of the two years ended December 31, 2015 and 2016, as delivered by such Party
to the other Party or as filed or to be filed by such Party in its SEC Reports, and (ii) the consolidated balance sheets of such Party and its Subsidiaries (including related notes and schedules, if any), and related statements of operations,
cash flows (as to annual financial statements only), and shareholders equity and comprehensive income (loss) (including related notes and schedules, if any) filed with respect to periods ended subsequent to March 31, 2017.
GAAP
shall mean accounting principles generally accepted in the United States of America, consistently
applied during the periods involved.
Governmental Authority
shall mean each Regulatory Authority and
any other domestic or foreign court, administrative agency, commission or other governmental authority or instrumentality (including the staff thereof), or any industry self-regulatory authority (including the staff thereof).
Hazardous Material
shall mean (i) any hazardous substance, hazardous material, hazardous waste,
regulated substance, or toxic substance (as those terms are defined by any applicable Environmental Laws), and (ii) any chemicals, pollutants, contaminants, petroleum, petroleum products that are or become regulated under any applicable local,
state, or federal Law (and specifically shall include asbestos requiring abatement, removal, or encapsulation pursuant to the requirements of governmental authorities and any polychlorinated biphenyls).
HSR Act
means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, any successor statute
thereto, and the rules and regulations promulgated thereunder.
Intellectual Property
shall mean
(i) any patents, copyrights, trademarks, service marks, mask works or similar rights throughout the world, and applications or registrations for any of the foregoing, (ii) any proprietary interest, whether registered or unregistered, in
know-how, copyrights, trade secrets, database rights, data in databases, website content, inventions, invention disclosures or applications, software (including source and object code), operating and manufacturing procedures, designs, specifications
and the like, (iii) any proprietary interest in any similar intangible asset of a technical, scientific or creative nature, including slogans, logos and the like and (iv) any proprietary interest in or to any documents or other tangible
media containing any of the foregoing.
Internal Revenue Code
shall mean the Internal Revenue Code of
1986, as amended, any successor statute thereto, and the rules and regulations thereunder.
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Knowledge
of any Party or
known to
a Party
and any other phrases of similar import means, with respect to any matter in question relating to a Party, if any of the Chairman of the Board, Chief Executive Officer, President, Chief Operating Officer, Chief Financial Officer or General Counsel
of such Party have actual knowledge of such matter, after due inquiry of their direct subordinates who would be likely to have knowledge of such matter.
Law(s)
shall mean any code, law (including any rule of common law), ordinance, regulation, rule, or statute
applicable to a Person or its assets, Liabilities, or business, including those promulgated, interpreted, or enforced by any Governmental Authority.
Liability
shall mean any direct or indirect, primary or secondary, liability, indebtedness, obligation,
penalty, cost, or expense (including costs of investigation, collection, and defense), claim, deficiency, or guaranty of any type, whether accrued, absolute or contingent, liquidated or unliquidated, matured or unmatured, or otherwise.
Lien
shall mean any mortgage, pledge, reservation, restriction (other than a restriction on transfers
arising under the Securities Laws), security interest, lien, or encumbrance of any nature whatsoever of, on, or with respect to any property or property interest, other than Liens for property Taxes not yet due and payable.
Litigation
shall mean any action, arbitration, cause of action, claim, complaint, criminal prosecution,
demand letter, governmental or other examination or investigation, hearing, inquiry, administrative or other proceeding, or notice (written or oral) by any Person alleging potential Liability, but shall not include claims of entitlement under any
Benefit Plans that are made or received in the ordinary course of business.
NASDAQ
shall mean the
National Market System of The NASDAQ Stock Market.
NorthStar Common Stock
shall mean the $0.01 par
value per share common stock of NorthStar.
NorthStar Equity Award
shall mean an award, grant, unit,
option to purchase, or other right to receive a share or shares of NorthStar Common Stock and shall specifically include any restricted stock awards.
NorthStar Shareholder Approval
shall mean the approval of this Agreement by the holders of at least a
majority of the outstanding shares of the Company Common Stock.
NorthStar Stock Plan
shall mean any
equity compensation plan, stock purchase plan, incentive compensation plan, or any other Benefit Plan under which NorthStar Equity Awards have been or may be issued.
NorthStar Target Consolidated Tangible Shareholders Equity
shall mean NorthStars Consolidated
Tangible Shareholders Equity equal to $22.25 million, less any Permitted Expenses.
OCC
shall mean
the Office of the Comptroller of the Currency.
Order
shall mean any administrative decision or award,
decree, injunction, judgment, order, quasi-judicial decision or award, ruling, or writ of any federal, state, local, or foreign or other court, arbitrator, mediator, tribunal, administrative agency, or Governmental Authority.
Organizational Documents
shall mean the articles of incorporation, certificate of incorporation, charter,
bylaws or other similar governing instruments, in each case as amended as of the date specified, of any Person.
Party
shall mean Seacoast, on the one hand, or the Company, on the other hand, and
Parties
shall mean Seacoast and the Company.
Permit
shall mean any federal, state,
local, and foreign governmental approval, authorization, certificate, easement, filing, franchise, license, or permit from Governmental Authorities that are required for the operation of the businesses of a Person or its Subsidiaries.
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Permitted Expenses
shall mean (i) the reasonable expenses
of NorthStar and the Bank incurred in connection with the Merger and the Bank Merger (including fees and expenses of attorneys, accountants or other consultants but excluding any fees and expenses incurred in connection with the resolution of those
certain matters set forth in
Section 4.16 of the Company Disclosure Letter
), and (ii) the fee payable to NorthStars financial advisor in accordance with the engagement letter disclosed to Seacoast prior to the execution of
this Agreement.
Permitted Liens
shall mean (i) Liens for current Taxes and assessment not yet past
due or the amount or validity of which is being contested in good faith by appropriate proceedings, (ii) mechanics, workmens, repairmans, warehousemens and carriers Liens arising in the ordinary course of business
of NorthStar or any of its Subsidiaries consistent with past practice, or (iii) restrictions on transfers under applicable securities Laws.
Person
shall mean any natural person or any legal, commercial, or governmental entity, including, a
corporation, general partnership, joint venture, limited partnership, limited liability company, trust, business association, or person acting in a representative capacity, as well as any syndicate or group that would be deemed to be a person under
Section 13(d)(3) of the 1934 Act.
Property
shall mean all real property leased or owned by any
Person and its Subsidiaries, either currently or in the past.
Proxy Statement/Prospectus
shall mean the
proxy statement and other proxy solicitation materials of NorthStar and the prospectus of SBC constituting a part of the Registration Statement.
Registration Statement
shall mean the Registration Statement on Form
S-4,
or other appropriate form, including any pre-effective or post-effective amendments or supplements thereto, filed with the SEC by SBC under the 1933 Act with respect to the shares of SBC Common Stock to
be issued to the shareholders of NorthStar in connection with the transactions contemplated by this Agreement.
Regulatory Authorities
shall mean, collectively, the Federal Trade Commission, the United States Department
of Justice, the Federal Reserve Board, the OCC, the FDIC, the Consumer Financial Protection Bureau, the Internal Revenue Service, all federal and state regulatory agencies having jurisdiction over the Parties and their respective Subsidiaries,
FINRA, and the SEC (including, in each case, the staff thereof).
Representative
shall mean any
investment banker, financial advisor, attorney, accountant, consultant, agent or other representative of a Person.
Rights
shall mean, with respect to any Person, securities, or obligations convertible into or exercisable
for, or giving any other Person any right to subscribe for or acquire, or any options, calls, restricted stock, deferred stock awards, stock units, phantom awards, dividend equivalents, or commitments relating to, or any stock appreciation right or
other instrument the value of which is determined in whole or in part by reference to the market price or value of, shares of capital stock of such Person, whether vested or unvested or exercisable or unexercisable, and shall include the NorthStar
Equity Awards.
SBC Common Stock
shall mean the $0.10 par value per share common stock of SBC.
SEC
shall mean the United States Securities and Exchange Commission or any successor thereto.
SEC Reports
shall mean all forms, proxy statements, registration statements, reports, schedules, and other
documents filed, or required to be filed, by a Party or any of its Subsidiaries with the SEC.
Securities
Laws
shall mean the 1933 Act, the 1934 Act, the Investment Company Act of 1940, the Investment Advisers Act of 1940, and the Trust Indenture Act of 1939, each as amended, state securities and Blue Sky Laws, including in each
case the rules and regulations thereunder.
Subsidiary
or
Subsidiaries
shall have the
meaning assigned in
Rule 1-02(x)
of Regulation S-X of the SEC.
Superior Proposal
means any bona fide, unsolicited, written Acquisition Proposal for at least a majority of
the outstanding shares of NorthStar Common Stock on terms that the Board of Directors of
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NorthStar concludes in good faith to be more favorable from a financial point of view to its shareholders than the Merger and the other transactions contemplated by this Agreement (including the
terms, if any, proposed by Seacoast to amend or modify the terms of the transactions contemplated by this Agreement), (1) after receiving the written advice of its financial advisor (which shall be a nationally recognized investment banking
firm, Seacoast acknowledging that Sandler ONeill + Partners, L.P. is a nationally recognized investment banking firm), (2) after taking into account the likelihood of consummation of such transaction on the terms set forth therein (as
compared to, and with due regard for, the terms herein) and (3) after taking into account all legal (after consultation with outside counsel), financial (including the financing terms of any such proposal), regulatory and other aspects of such
proposal and any other relevant factors permitted under applicable Law.
Tax or Taxes
shall
mean all federal, state, local, and foreign taxes, charges, fees, levies, imposts, duties, or other like assessments, including assessments for unclaimed property, as well as income, gross receipts, excise, employment, sales, use, transfer,
intangible, recording, license, payroll, franchise, severance, documentary, stamp, occupation, windfall profits, environmental, federal highway use, commercial rent, customs duties, capital stock, paid-up capital, profits, withholding, Social
Security, single business and unemployment, disability, real property, personal property, registration, ad valorem, value added, alternative or add-on minimum, estimated, or other tax or governmental fee of any kind whatsoever, or any amount in
respect of unclaimed property or escheat, imposed by or required to be paid or withheld by the United States or any state, local, or foreign government or subdivision or agency thereof, whether disputed or not, including any related interest,
penalties, and additions imposed thereon or with respect thereto, and including any liability for Taxes of another Person pursuant to a contract, as a transferee or successor, under Treasury Regulation Section 1.1502-6 or analogous provision of
state, local or foreign Law or otherwise.
Tax Return
shall mean any report, return, declaration, claim
for refund, or information return or statement relating to Taxes, including any associated schedules, forms, attachments or amendments and any related or supporting information, estimates, elections, or statements provided or required to be provided
to a Taxing Authority in connection with Taxes, including any return of an Affiliated or combined or unitary group that includes a Party or its Subsidiaries and including without limitation any estimated Tax return.
Taxable Period
shall mean any period prescribed by any Taxing Authority.
Taxing Authority
shall mean any federal, state, local, municipal, foreign, or other Governmental Authority,
instrumentality, commission, board or body having jurisdiction over the Parties to impose or collect any Tax.
Technology Systems
shall mean the electronic data processing, information, record keeping, communications,
telecommunications, hardware, third-party software, networks, peripherals, portfolio trading and computer systems, including any outsourced systems and processes, and Intellectual Property used by NorthStar and the Bank.
Termination Fee
shall mean $1,650,000.
VWAP
shall mean the daily volume weighted average price of SBC Common Stock on NASDAQ or such other exchange
or market on which the SBC Common Stock is then listed or quoted for trading on the day in question.
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(b) The terms set forth below shall have the meanings ascribed thereto in the referenced
sections:
|
|
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Articles of Merger
|
|
Section 1.4
|
Agreement
|
|
Parties
|
Bank
|
|
Parties
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Bank Merger
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|
Preamble
|
Bank Merger Agreement
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Preamble
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Closing
|
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Section 1.3
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Closing Date
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Section 1.3
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Company
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Parties
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Company Disclosure Letter
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Section 3.1
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Covered Employees
|
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Section 4.14(a)
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CRA
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Section 3.3(q)
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Dissenting Shareholder
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Section 2.3
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Effective Time
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Section 1.4
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Exchange and Paying Agent
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Section 2.1
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IIPI
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Section 3.3(r)
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Indemnified Party
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Section 4.15(a)
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Material Adverse Effect
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Section 3.2(b)
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Merger
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Preamble
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Merger Consideration
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Section 1.5(a)
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NorthStar
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Parties
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NorthStar Certificates
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Section 1.5(b)
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NorthStar Directors Recommendation
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Section 3.3(b)(ii)
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NorthStar Latest Balance Sheet
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Section 3.3(d)(ii)
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Regulatory Consents
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Section 4.8(b)
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Required Consents
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Section 5.1(b)
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Sarbanes-Oxley Act
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Section 3.3(d)(iv)
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SBC
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Parties
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Seacoast
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Parties
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Seacoast SEC Reports
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Section 3.4(d)(i)
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Shareholder Support Agreement
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Preamble
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SNB
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Parties
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Surviving Bank
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Section 1.2
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Surviving Corporation
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Section 1.1
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Takeover Laws
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Section 3.3(v)
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(c) Any singular term in this Agreement shall be deemed to include the plural, and any plural term the
singular. Whenever the words include, includes, or including are used in this Agreement, they shall be deemed followed by the words without limitation. The words hereby, herein,
hereof or hereunder, and similar terms are to be deemed to refer to this Agreement as a whole and not to any specific section.
7.2
Non-Survival of Representations and Covenants
.
Except for Articles 1 and 2, Sections 4.7(b), 4.7(c), 4.10(b), 4.14 and 4.15,
and this Article 7, the respective representations, warranties, obligations, covenants, and agreements of the Parties shall be deemed only to be conditions of the Merger and shall not survive the Effective Time.
7.3
Expenses
.
(a) Except as otherwise provided in this Section 7.3 or in Section 7.4, each of the Parties shall bear and pay all direct costs and
expenses incurred by it or on its behalf in connection with the transactions contemplated hereunder, including filing, registration, and application fees, printing fees, and fees and expenses of its own
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financial or other consultants, investment bankers, accountants, and counsel, except that Seacoast shall bear and pay the filing fees payable in connection with the Registration Statement and the
Proxy Statement/Prospectus and one half of the printing costs incurred in connection with the printing of the Registration Statement and the Proxy Statement/Prospectus.
(b) Nothing contained in this Section 7.3 or Section 7.4 shall constitute or shall be deemed to constitute liquidated damages for
the willful breach by a Party of the terms of this Agreement or otherwise limit the rights of the non-breaching Party.
7.4
Termination Fee
.
(a) In the event that (A) (i) either Party terminates this Agreement pursuant to
Section 6.1(c)(ii), or (ii) SBC terminates this Agreement pursuant to Section 6.1(b), as a result of a willful breach of a covenant or agreement by NorthStar or the Bank, or pursuant to Sections 6.1(e)(i) or 6.1(e)(ii),
(B) at any time after the date of this Agreement and prior to such termination NorthStar shall have received or there shall have been publicly announced an Acquisition Proposal that has not been formally withdrawn or abandoned prior to such
termination, and (C) within 18 months following such termination, NorthStar consummates a transaction or enters into a definitive agreement to consummate a transaction with respect to an Acquisition Proposal, NorthStar shall pay Seacoast the
Termination Fee within five (5) Business Days after the date it becomes payable pursuant hereto, by wire transfer of immediately available funds;
provided that
for purposes of this Section 7.4(a) all references in the definition of
Acquisition Proposal to 25% shall be to 50%.
(b) In the event that SBC terminates this Agreement
pursuant to Section 6.1(e)(iii), NorthStar shall pay to Seacoast the Termination Fee within five (5) Business Days after the date this Agreement is terminated, by wire transfer of immediately available funds. In the event that NorthStar
terminates this Agreement pursuant to Section 6.1(f), NorthStar shall pay to Seacoast the Termination Fee on the date this Agreement is terminated, by wire transfer of immediately available funds.
(c) NorthStar and the Bank hereby acknowledges that the agreements contained in this Section 7.4 are an integral part of the transactions
contemplated by this Agreement and that, without these agreements, Seacoast would not enter into this Agreement. In the event that NorthStar fails to pay when due any amount payable under this Section 7.4, then (i) NorthStar shall
reimburse Seacoast for all costs and expenses (including disbursements and reasonable fees of legal counsel) incurred in connection with the collection of such overdue amount, and (ii) NorthStar shall pay to Seacoast interest on such overdue
amount (for the period commencing as of the date such overdue amount was originally required to be paid and ending on the date such overdue amount is actually paid in full) at a rate per annum equal to five percent (5%) over the prime
rate (as published in the Money Rates column in
The Wall Street Journal
or, if not published therein, in another national financial publication selected by Seacoast) in effect on the date such overdue amount was originally
required to be paid.
(d) Assuming NorthStar and the Bank are not in breach of their obligations under this Agreement, including Sections
4.5 and 4.12, then the payment of the Termination Fee shall fully discharge NorthStar and the Bank from and be the sole and exclusive remedy of Seacoast with respect to, any and all losses that may be suffered by Seacoast based upon, resulting from
or rising out of the circumstances giving rise to such termination of this Agreement under Section 7.4(a) or 7.4(b). In no event shall NorthStar be required to pay the Termination Fee on more than one occasion.
7.5
Entire Agreement
.
Except as otherwise expressly provided herein, this Agreement (including the Company Disclosure Letter,
Seacoast Disclosure Letter and the Exhibits) constitutes the entire agreement between the Parties with respect to the transactions contemplated hereunder and supersedes all prior arrangements or understandings with respect thereto, written or oral,
other than the Confidentiality Agreement, which shall remain in effect. The representations and warranties in this Agreement are the product of negotiations among the Parties hereto and are for the sole benefit of the Parties. Any inaccuracies in
such
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representations and warranties are subject to waiver by the Parties hereto in accordance herewith without notice or liability to any other Person. In some instances, the representations and
warranties in this Agreement may represent an allocation among the Parties hereto of risks associated with particular matters regardless of the knowledge of any of the Parties hereto. Consequently, Persons other than the Parties may not rely upon
the representations and warranties in this Agreement as characterizations of actual facts or circumstances as of the date of this Agreement or as of any other date. Notwithstanding any other provision hereof to the contrary, no consent, approval, or
agreement of any third party beneficiary will be required to amend, modify or waive any provision of the Agreement. Nothing in this Agreement expressed or implied, is intended to confer upon any Person, other than the Parties or their respective
successors, any rights, remedies, obligations, or liabilities under or by reason of this Agreement.
7.6
Amendments
.
Before
the Effective Time, this Agreement (including the Company Disclosure and the Exhibits) may be amended by a subsequent writing signed by each of the Parties, whether before or after the NorthStar Shareholder Approval has been obtained, except to the
extent that any such amendment would require the approval of the shareholders of NorthStar, unless such required approval is obtained.
7.7
Waivers
.
(a)
Prior to or at the Effective Time, either Party shall have the right to waive any Default in the performance of any term of this Agreement by the other Party, to waive or extend the time for the compliance or fulfillment by the other Party of any
and all of such other Partys obligations under this Agreement, and to waive any or all of the conditions precedent to its obligations under this Agreement, except any condition which, if not satisfied, would result in the violation of any Law.
No waiver by a Party shall be effective unless in writing signed by a duly authorized officer of such Party.
(b) The failure of any Party
at any time or times to require performance of any provision hereof shall in no manner affect the right of such Party at a later time to enforce the same or any other provision of this Agreement. No waiver of any condition or of the breach of any
term contained in this Agreement in one or more instances shall be deemed to be or construed as a further or continuing waiver of such condition or breach or a waiver of any other condition or of the breach of any other term of this Agreement.
7.8
Assignment
.
Except as expressly contemplated hereby, neither this Agreement nor any of the rights, interests, or obligations
hereunder shall be assigned by any Party hereto (whether by operation of Law or otherwise) without the prior written consent of each other Party. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of, and be
enforceable by the Parties and their respective successors and assigns.
7.9
Notices
.
All notices or other communications
which are required or permitted hereunder shall be in writing and sufficient if delivered by hand, by facsimile or electronic transmission, by registered or certified mail, postage pre-paid, or by courier or overnight carrier, to the Persons at the
addresses set forth below (or at such other address as may be provided hereunder), and shall be deemed to have been delivered as of the date so delivered:
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Seacoast:
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Seacoast Banking Corporation of Florida
815
Colorado Avenue
Stuart, Florida 34994
Telecopy Number: (772)
288-6086
Attention: Dennis Hudson
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Copy to Counsel (which
shall not constitute
notice):
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Alston & Bird LLP
1201 West Peachtree
Street
Atlanta, Georgia 30309
Telecopy Number: (404)
881-7777
Attention: Randolph A. Moore III
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Company:
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NorthStar Banking Corporation
Rivergate
Tower
400 North Ashley Drive, Suite 1400
Tampa, Florida
33602
Telecopy Number:
Attention: Scott Jacobsen
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Copy to Counsel (which
shall not constitute
notice):
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Bush Ross, P.A.
1801 North Highland Avenue
Tampa, Florida 33602
Telecopy Number: (813) 223-9620
Attention: John N. Giordano
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7.10
Governing Law; Venue
.
This Agreement shall be governed by and construed in accordance with
the Laws of the State of Florida, without regard to any applicable principles of conflicts of Laws that would result in the application of the law of another jurisdiction, except that the Laws of the United States shall govern the consummation of
the Bank Merger. The Parties agree that any action to enforce this Agreement, as well as any action relating to or arising out of this Agreement, shall be brought and determined exclusively in the state or federal courts located in Hillsborough
County, Florida. With respect to any such court action, each Party hereby (i) irrevocably submits to the personal jurisdiction of such courts; (ii) consents to service of process; (iii) consents to venue; and (iv) waives any
other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction, service of process, or venue. Each Party further agrees that the state or federal courts located in Hillsborough County, Florida are
convenient forums for any dispute that may arise from this Agreement and that neither Party shall raise as a defense that the dispute in such courts is brought in an inconvenient forum or that the venue of such dispute is improper.
7.11
Counterparts
.
This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original,
but all of which together shall constitute one and the same instrument. The exchange of copies of this Agreement and of signature pages by facsimile or electronic transmission shall constitute effective execution and delivery of this Agreement as to
the Parties and may be used in lieu of the original Agreement for all purposes. Signatures of the Parties transmitted by facsimile or electronic transmission shall be deemed to be their original signatures for all purposes.
7.12
Captions
.
The captions contained in this Agreement are for reference purposes only and are not part of this Agreement.
7.13
Interpretations
.
Neither this Agreement nor any uncertainty or ambiguity herein shall be construed or resolved against any
Party, whether under any rule of construction or otherwise. No Party to this Agreement shall be considered the draftsman. The Parties acknowledge and agree that this Agreement has been reviewed, negotiated, and accepted by all Parties and their
attorneys and shall be construed and interpreted according to the ordinary meaning of the words used so as fairly to accomplish the purposes and intentions of the Parties.
7.14
Severability
.
If any term or provision of this Agreement is determined by a court of competent jurisdiction to be invalid,
void or unenforceable, the remaining provisions hereof, or the application of such provision to Persons or circumstances other than those as to which it has been held invalid or unenforceable, shall remain in full force and effect and in no way be
affected, impaired or invalidated thereby, so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination, the Parties shall negotiate in good
faith in an effort to agree upon a suitable and equitable substitute provision to effect the original intent of the Parties. If any provision of this Agreement is so broad as to be unenforceable, the provision shall be interpreted to be only so
broad as is enforceable.
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7.15
Attorneys Fees
.
In any action at law or suit in equity to enforce this Agreement or the rights of any of the Parties hereunder, the prevailing Party in such
action or suit shall be entitled to receive its reasonable attorneys fees and costs and expenses incurred in such action or suit.
7.16
Specific Performance
. The Parties agree that irreparable damage would occur if any provision of this Agreement were not
performed in accordance with the terms hereof and that, except as set forth in Section 7.4(d) of this Agreement, the Parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy to which they are
entitled at law or in equity. Further, no Party has any requirement to post a bond or other security before it can obtain specific performance.
7.17.
Waiver of Jury Trial
.
THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT THAT ANY PARTY MAY HAVE TO TRIAL BY JURY IN RESPECT OF ANY
PROCEEDING, LITIGATION OR COUNTERCLAIM BASED ON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. IF THE SUBJECT MATTER OF ANY
LAWSUIT IS ONE IN WHICH THE WAIVER OF JURY TRIAL IS PROHIBITED, NO PARTY TO THIS AGREEMENT SHALL PRESENT AS A NONCOMPULSORY COUNTERCLAIM IN ANY SUCH LAWSUIT ANY CLAIM BASED ON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.
FURTHERMORE, NO PARTY TO THIS AGREEMENT SHALL SEEK TO CONSOLIDATE ANY SUCH ACTION IN WHICH A JURY TRIAL CANNOT BE WAIVED.
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IN WITNESS WHEREOF
, each of the Parties has caused this Agreement to be executed on its
behalf and its seal to be hereunto affixed and attested by officers thereunto as of the day and year first above written.
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SEACOAST BANKING CORPORATION OF FLORIDA
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By:
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/s/ Dennis S. Hudson, III
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Dennis S. Hudson, III
Chief Executive
Officer
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SEACOAST NATIONAL BANK
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By:
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/s/ Dennis S. Hudson, III
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Dennis S. Hudson, III
Chief Executive
Officer
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NORTHSTAR BANKING CORPORATION
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By:
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/s/ Scott Jacobsen
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Scott Jacobsen
President and Chief Executive
Officer
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NORTHSTAR BANK
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By:
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/s/ Scott Jacobsen
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Scott Jacobsen
President and Chief Executive
Officer
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Exhibit A
PLAN OF MERGER AND MERGER AGREEMENT
NORTHSTAR BANK
with and
into
SEACOAST NATIONAL BANK
under the charter of
SEACOAST NATIONAL BANK
under the title of
SEACOAST NATIONAL BANK
(Resulting Bank)
THIS AGREEMENT is made this [●] day of [●], 2017, between Seacoast National Bank (hereinafter referred to as Seacoast
Bank and the Resulting Bank), a national banking association, with its main office located at 815 Colorado Avenue, Stuart, FL 34994 and NorthStar Bank, a Florida-chartered bank, with its main office located at 400 N Ashley Drive,
Suite 1400, Tampa, FL 33602, (hereinafter referred to as NorthStar and, together with Seacoast Bank, the Banks).
WHEREAS, at least a majority of the entire Board of Directors of Seacoast Bank has approved this Agreement and authorized its execution
pursuant to the authority given by and in accordance with the provisions of The National Bank Act (the Act);
WHEREAS, at
least a majority of the entire Board of Directors of NorthStar has approved this Agreement and authorized its execution in accordance with Florida Statutes §658.42 and the Act;
WHEREAS, Seacoast Banking Corporation of Florida (SBCF), which owns all of the outstanding shares of Seacoast Bank, and NorthStar
Banking Corporation, which owns all of the outstanding shares of NorthStar, have entered into an Agreement and Plan of Merger (the Plan of Merger) which, among other things, contemplates the merger of NorthStar Banking Corporation with
and into SBCF, all subject to the terms and conditions of such Plan of Merger (the BHC Merger); and
WHEREAS, each of the
Banks is entering into this Agreement to provide for the merger of NorthStar with and into Seacoast Bank, with Seacoast Bank being the surviving company of such merger transaction subject to, and as soon as practicable following, the closing of the
BHC Merger.
NOW, THEREFORE, for and in consideration of the premises and the mutual promises and agreements herein contained, the parties
hereto agree as follows:
SECTION 1
Subject to the terms and conditions of this Agreement and the closing of the BHC Merger, at the Effective Time (as defined below) and pursuant
to the Act, NorthStar shall be merged with and into Seacoast Bank (the Merger). Upon consummation of the Merger, Seacoast Bank shall continue its existence as the surviving company and Resulting Bank under the charter of the Resulting
Bank and the separate corporate existence of NorthStar shall cease. The closing of the Merger shall become effective at the time specified in the certificate of merger issued by the Office of the Comptroller of the Currency (the OCC) in
connection with the Merger (such time when the Merger becomes effective, the Effective Time).
SECTION 2
The name of the Resulting Bank shall be Seacoast National Bank or such other name as such bank may adopt prior to the Effective
Time. The Resulting Bank will exercise trust powers.
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SECTION 3
The business of the Resulting Bank shall be that of a national banking association. This business initially shall be conducted by the
Resulting Bank at its main office which shall be located at 815 Colorado Avenue, Stuart, FL 34994, as well as all of the banking offices of Seacoast National Bank and the banking offices of NorthStar that are acquired in the Merger (which such
banking offices are set forth on
Exhibit A
to this Agreement and shall continue to conduct operations after the closing of the Merger as branch offices of Seacoast National Bank). The savings accounts of the Resulting Bank will be issued by
the Resulting Bank in accordance with the Act.
SECTION 4
Immediately upon the Merger becoming effective, the amount of issued and outstanding capital stock of the Resulting Bank shall be the amount
of capital stock of Seacoast National Bank issued and outstanding immediately prior to the Merger becoming effective. Preferred stock shall not be issued by the Resulting Bank.
SECTION 5
All assets of
NorthStar and the Resulting Bank, as they exist at the Effective Time, shall pass to and vest in the Resulting Bank without any conveyance or other transfer; and the Resulting Bank shall be considered the same business and corporate entity as each
constituent bank with all the rights, powers and duties of each constituent bank and the Resulting Bank shall be responsible for all the liabilities of every kind and description, of each of NorthStar and the Resulting Bank existing as of the
Effective Time, all in accordance with the provisions of the Act.
SECTION 6
Seacoast Bank and NorthStar shall contribute to the Resulting Bank acceptable assets having a book value, over and above liability to its
creditors, in such amounts as set forth on the books of Seacoast Bank and NorthStar at the Effective Time.
SECTION 7
At the Effective Time, each outstanding share of common stock of NorthStar shall be cancelled with no consideration being paid therefor.
Outstanding certificates representing shares of the common stock of NorthStar shall, at the Effective Time, be cancelled.
SECTION 8
Upon the
Effective Time, the then outstanding shares of common stock of Seacoast Bank (the Seacoast Bank Common Stock) shall continue to remain outstanding shares of Seacoast Bank Common Stock, all of which shall continue to be owned by SBCF.
SECTION 9
The
directors of the Resulting Bank following the Effective Time shall consist of those directors of Seacoast Bank as of the Effective Time, who shall serve until their respective successors are duly elected or appointed and qualified or until their
earlier death, resignation or removal. The executive officers of the Resulting Bank
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following the Effective Time shall consist of those executive officers of Seacoast Bank as of the Effective Time, who shall serve until their respective successors are duly elected or appointed
and qualified or until their earlier death, resignation or removal.
SECTION 10
This Agreement has been approved by SBCF, which owns all of the outstanding shares of Seacoast Bank and by NorthStar Banking Corporation,
which owns all of the outstanding shares of NorthStar.
SECTION 11
The effectiveness of this Agreement is subject to satisfaction of the following terms and conditions:
(a) The BHC Merger shall have closed and become effective.
(b) The OCC shall have approved this Agreement and the Merger and shall have issued all other necessary authorizations and approvals for the
Merger, and any statutory waiting period shall have expired.
SECTION 12
Each of the Banks hereby invites and authorizes the OCC to examine each of such Banks records in connection with the Merger.
SECTION 13
Effective as
of the Effective Time, the Articles of Association and Bylaws of the Resulting Bank shall consist of the Articles of Association and Bylaws of Seacoast Bank as in effect immediately prior to Effective Time.
SECTION 14
This
Agreement shall terminate if and at the time of any termination of the Plan of Merger.
SECTION 15
This Agreement embodies the entire agreement and understanding of the Banks with respect to the transactions contemplated hereby, and
supersedes all other prior commitments, arrangements or understandings, both oral and written, among the Banks with respect to the subject matter hereof.
The provisions of this Agreement are intended to be interpreted and construed in a manner so as to make such provisions valid, binding and
enforceable. In the event that any provision of this Agreement is determined to be partially or wholly invalid, illegal or unenforceable, then such provision shall be deemed to be modified or restricted to the extent necessary to make such provision
valid, binding and enforceable, or, if such provision cannot be modified or restricted in a manner so as to make such provision valid, binding and enforceable, then such provision shall be deemed to be excised from this Agreement and the validity,
binding effect and enforceability of the remaining provisions of this Agreement shall not be affected or impaired in any manner.
No
waiver, amendment, modification or change of any provision of this Agreement shall be effective unless and until made in writing and signed by the Banks. No waiver, forbearance or failure by any Bank of its rights to enforce any provision of this
Agreement shall constitute a waiver or estoppel of such Banks right to enforce any other provision of this Agreement or a continuing waiver by such Bank of compliance with any provision hereof.
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Except to the extent federal law is applicable hereto, this Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Florida without regard to principles of conflicts of laws.
This
Agreement will be binding upon, inure to the benefit of, and be enforceable by, the Banks respective successors and permitted assigns.
Unless otherwise expressly stated herein, this Agreement shall not benefit or create any right of action in or on behalf of any person or
entity other than the Banks.
This Agreement may be executed in counterparts (including by facsimile or optically-scanned electronic mail
attachment), each of which shall be deemed to be original, but all of which together shall constitute one and the same instrument.
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IN WITNESS WHEREOF, the undersigned have signed this Plan of Merger and Merger Agreement
effective as of the date and year first set forth above.
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SEACOAST NATIONAL BANK
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By:
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Dennis S. Hudson III
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As its:
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Chief Executive Officer
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NORTHSTAR BANK
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By:
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Scott Jacobsen
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As its:
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President and Chief Executive Officer
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EXHIBIT A
BANKING OFFICES OF THE RESULTING BANK
Main Office:
815 Colorado Avenue
Stuart, FL 34994
Branch Offices:
[NTD: SEACOAST TO PROVIDE LIST OF CURRENT BRANCHES]
400
North Ashley Drive
Tampa, FL 33602
715 Indian Rocks Rd. N.
Belleair Bluffs, FL 33770
402 S. MacDill Ave.
Tampa, FL 33609
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Exhibit B
FORM OF COMPANY SHAREHOLDER SUPPORT AGREEMENT
THIS SHAREHOLDER SUPPORT AGREEMENT (this
Agreement
) is made and entered into as of May 18, 2017, by and among Seacoast
Banking Corporation of Florida, a Florida corporation (
Buyer
), NorthStar Banking Corporation, a Florida corporation (
Seller
), and each of the undersigned (i) directors of Seller and directors of NorthStar
Bank (
NorthStar
) that are beneficial owners of any shares of Seller Stock (as defined below), (ii) executive officers of Seller or executive officers of NorthStar that are beneficial owners of any shares of Seller Stock, and
(iii) each beneficial holder of five percent (5%) or more of the outstanding shares of Seller Stock (each of (i), (ii) and (iii), a
Shareholder
, and collectively, the
Shareholders
).
RECITALS
WHEREAS
,
the Shareholders desire that Buyer and Seller consummate the transactions (the
Transactions
) set forth in that certain Agreement and Plan of Merger, dated as of May 18, 2017 (as the same may be amended or supplemented, the
Merger Agreement
), by and among Buyer, Seacoast National Bank, Seller and NorthStar, that provides for, among other things, the merger of Seller with and into Buyer (the
Merger
); and
WHEREAS
, the Shareholders, Seller and Buyer are executing this Agreement as an inducement and condition to Buyer entering into,
executing and performing the Merger Agreement and consummating the Transactions.
NOW, THEREFORE
, in consideration of, and as a
material inducement to, entering into and the execution and delivery by Buyer of the Merger Agreement and the mutual covenants, conditions and agreements contained herein and therein, and other good and valuable consideration, the receipt and
sufficiency of which are acknowledged, the parties, intending to be legally bound, hereby agree as follows:
1.
Representations and
Warranties
. Each Shareholder represents and warrants to Buyer severally, but not jointly, as follows:
(a) The
Shareholder has voting power over the number of shares (
Shareholders Shares
) of the common stock of Seller, par value $0.01 per share (
Seller Stock
), set forth below such Shareholders name on the
signature page hereto. Except for the Shareholders Shares, the Shareholder does not have voting power over any shares of Seller Stock.
(b) This Agreement has been duly authorized, executed and delivered by, and constitutes a valid and binding agreement of, the
Shareholder, enforceable in accordance with its terms.
(c) Neither the execution and delivery of this Agreement nor the
consummation by the Shareholder of the transactions contemplated hereby will result in a violation of, or a default under, or conflict with, any contract, trust, commitment, agreement, understanding, arrangement or restriction of any kind to which
the Shareholder is a party or bound or to which the Shareholders Shares are subject. Consummation by the Shareholder of the transactions contemplated hereby will not violate, or require any consent, approval, or notice under, any provision of
any judgment, order, decree, statute, law, rule or regulation applicable to the Shareholder or the Shareholders Shares.
(d) The Shareholders Shares and the certificates representing the Shareholders Shares are now, and at all times
during the term hereof will be, held by the Shareholder, or by a nominee or custodian for the benefit of such Shareholder, free and clear of all pledges, liens, security interests, claims, proxies, voting trusts or agreements, understandings or
arrangements or any other encumbrances whatsoever (any such encumbrance, a
Lien
), except for (i) any such Liens arising hereunder, and (ii) Liens, if any, which have been previously disclosed in writing to Buyer and will
be satisfied and released at Closing.
(e) The Shareholder understands and acknowledges that Buyer entered into the Merger
Agreement in reliance upon the Shareholders execution and delivery of this Agreement. The Shareholder acknowledges that the irrevocable proxy set forth in Section 4 of this Agreement is granted in consideration of the execution and
delivery of the Merger Agreement by Buyer.
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(f) No broker, investment banker, financial adviser or other Person is entitled
to any brokers, finders, financial advisers or other similar fee or commission in connection with the transactions contemplated hereby based upon arrangements made by or on behalf of the Shareholder.
(g) The Shareholder represents that there are no outstanding or valid proxies or voting rights given to any Person in
connection with Shareholders Shares.
2.
Voting Agreements
. The Shareholder agrees with, and covenants to, Buyer as
follows:
(a) At any meeting of shareholders of Seller called to vote upon the Merger Agreement, the Merger and the
Transactions, and at any adjournment or postponement thereof, or in any other circumstances upon which a vote, consent or other approval with respect to the Merger Agreement, the Merger and the Transactions is sought (collectively, the
Shareholders Meeting
), the Shareholder shall vote (or cause to be voted) all of the Shareholders Shares in favor of the approval of the terms of the Merger Agreement, the Merger and each of the Transactions, and shall
not grant any proxies to any third party, except where such proxies are expressly directed to vote in favor of the Merger Agreement, the Merger and the Transactions. The Shareholder hereby waives all notice and publication of notice of any
Shareholders Meeting to be called or held with respect to the Merger Agreement, the Merger and the Transactions.
(b)
At any Shareholders Meeting or in any other circumstances upon which their vote, consent or other approval is sought, the Shareholder shall vote (or cause to be voted) such Shareholders Shares against (i) any acquisition proposal,
including, without limitation, any merger or exchange agreement or merger or exchange (other than the Merger Agreement, the Merger and the Transactions), consolidation, combination, sale of substantial assets, reorganization, recapitalization,
dissolution, liquidation or winding up of or by Seller; (ii) any action or agreement that would result in a breach of any covenant, representation or warranty or any other obligation or agreement of Seller contained in the Merger Agreement or
of Shareholder contained in this Agreement; and (iii) any amendment of Sellers articles of incorporation or bylaws or other proposal or transaction involving Seller or any of its Subsidiaries, which amendment or other proposal or
transaction would in any manner delay, impede, frustrate, prevent or nullify the Merger Agreement, or any of the Transactions, other than an amendment or other proposal or transaction required by a Regulatory Authority or other Governmental
Authority (each of the foregoing in clauses (i), (ii) or (iii) above, a
Competing Transaction
).
Shareholder
further agrees not to vote or execute any written consent to rescind or amend in any manner any prior vote or written consent, as a shareholder of Seller, to approve or adopt the Merger Agreement unless this Agreement shall have been terminated in
accordance with its terms.
3.
Covenants
. The Shareholder agrees with, and covenants to, Buyer as follows:
(a) Without the prior written consent of Buyer, the Shareholder shall not (i)
Transfer
(which term
shall include, without limitation, for the purposes of this Agreement, any sale, gift, pledge, transfer, hypothecation or other disposition), or consent to any Transfer of, any or all of the Shareholders Shares or any interest therein,
(ii) enter into any contract, option or other agreement, arrangement or understanding with respect to any Transfer of any or all of Shareholders Shares or any interest therein, (iii) grant or solicit any proxy, power of attorney or
other authorization in or with respect to Shareholders Shares, except for this Agreement, (iv) deposit Shareholders Shares into a voting trust or enter into any voting agreement, arrangement or understanding with respect to
Shareholders Shares for any purpose (other than to satisfy its obligations under this Agreement), or (v) initiate a shareholders vote or action by consent of Sellers shareholders with respect to a Competing Transaction;
provided, however, that the foregoing shall not preclude a Transfer in connection with bona fide estate planning purposes to the Shareholders affiliates or immediate family members, provided that as a condition to such Transfer, such affiliate
or immediate family member shall execute an agreement that is identical to this Agreement (except to reflect the change in the ownership of the Shareholders Shares) and provided further, that the assigning Shareholder shall remain jointly and
severally liable for any breaches by any of his or her affiliates or immediate family members of
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the terms hereof. The restriction on the Transfer of the Shareholders Shares set forth in this Section 3(a) shall terminate upon the first to occur of (x) the Effective Time of
the Merger and the Transactions or (y) the date upon which the Merger Agreement is terminated in accordance with its terms.
(b) The Shareholder hereby waives any rights of appraisal, or rights to dissent from the Merger or the Transactions that such
Shareholder may have.
(c) The Shareholder shall not, nor shall it permit any investment banker, attorney or other adviser
or representative of the Shareholder to, directly or indirectly, (i) solicit, initiate, knowingly induce or encourage, or knowingly take an action to facilitate the making of the submission of any Competing Transaction, or (ii) except as
provided in the Merger Agreement, participate in any discussions or negotiations regarding, or furnish to any person any information with respect to, or take any other action to facilitate any inquiries or the making of any proposal that
constitutes, or may reasonably be expected to lead to, any Competing Transactions, other than the Merger or the Transactions contemplated by the Merger Agreement.
4.
Irrevocable Proxy
. Subject to the last sentence of this Section 4, by execution of this Agreement, Shareholder does
hereby appoint Buyer with the full power of substitution and resubstitution, as Shareholders true and lawful attorney and irrevocable proxy, to the full extent of Shareholders rights with respect to Shareholders Shares, to vote
each of such Shareholder Shares that Shareholder shall be entitled to so vote with respect to the matters set forth in Section 2 hereof at any Shareholders Meeting, and at any adjournment or postponement thereof, and in connection with
any action of the shareholders of Seller taken by written consent. Shareholder intends this proxy to be irrevocable and coupled with an interest hereafter until the termination of this Agreement pursuant to the terms of Section 9 hereof and
hereby revokes any proxy previously granted by Shareholder with respect to the Shareholder Shares. Notwithstanding anything contained herein to the contrary, this irrevocable proxy shall automatically terminate upon the termination of this
Agreement.
5.
Certain Events
. The Shareholder agrees that this Agreement and the obligations hereunder shall attach to the
Shareholders Shares and shall be binding upon any person or entity to which legal or beneficial ownership of Shareholders Shares shall pass, whether by operation of law or otherwise, including the Shareholders successors or
assigns. In the event of any stock split, stock dividend, merger, exchange, reorganization, recapitalization or other change in the capital structure of the Seller affecting the Seller Common Stock, or the acquisition of additional shares of Seller
Stock or other voting securities of Seller by Shareholder, the number of shares of Seller Stock subject to the terms of this Agreement shall be adjusted appropriately and this Agreement and the obligations hereunder shall attach to any additional
shares of Seller Stock or other voting securities of the Seller issued to or acquired by the Shareholder.
6.
Specific Performance;
Remedies; Attorneys Fees
. Shareholder acknowledges that it is a condition to the willingness of Buyer to enter into the Merger Agreement that Shareholder execute and deliver this Agreement and that it will be impossible to measure in
money the damage to Buyer if Shareholder fails to comply with the obligations imposed by this Agreement and that, in the event of any such failure, irreparable damage will occur and Buyer will not have any adequate remedy at law. It is accordingly
agreed that Buyer shall be entitled to seek specific performance and injunctive or other equitable relief as a remedy for any such breach or to prevent any breach and to enforce specifically the terms and provisions of this Agreement, in addition to
any other remedy to which they are entitled at law or in equity. Seller agrees that it shall not oppose the granting of such relief on the basis that Buyer has an adequate remedy at law. In addition, any third party participating with Shareholder or
receiving from Shareholder assistance in violation of this Agreement and of the rights of Buyer hereunder, and any such participation by such third party with Shareholder in activities in violation of the Shareholders agreement with Buyer set
forth in this Agreement may give rise to claims by Buyer against such third party and Buyer acknowledges that Shareholder may be responsible for any associated liabilities caused by such third party. In any legal action or other proceeding relating
to this Agreement and the transactions contemplated hereby or if the enforcement of any provision of this Agreement is brought against either Party, the prevailing Party in such action or proceeding shall be entitled to recover all reasonable
expenses relating thereto (including
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reasonable attorneys fees and expenses, court costs and expenses incident to arbitration, appellate and post-judgment proceedings) from the other Party, in addition to any other relief to
which such prevailing Party may be entitled.
7.
Further Assurances
. The Shareholder shall, upon the request of the Buyer,
promptly execute and deliver any additional documents and take such further actions as may reasonably be deemed by the Buyer to be necessary or desirable to carry out the provisions hereof and to vest in the Buyer the power to vote such
Shareholders Shares as contemplated by Section 2 and 4 of this Agreement and the other irrevocable proxies provided herein.
8.
Confidentiality.
The undersigned recognizes and acknowledges that he or she may have access to certain confidential
information of the Buyer and its subsidiaries (including that obtained from the Seller and its shareholders in connection with the Transactions), the Seller and its Subsidiaries and their shareholders, including, without limitation, customer lists,
information regarding customers, confidential methods of operation, lending, credit information, organization, pricing, mark-ups, commissions and other information and that all such information constitutes valuable, special and unique property of
the Buyer, the Seller and the Buyers shareholders. All such information, which shall exclude any information that is publicly known or hereafter becomes publicly known other than as a result of any action or omission by the undersigned, is
herein referred to as
Confidential Information
. The undersigned will not disclose or directly or indirectly utilize in any manner any such Confidential Information for Shareholders own benefit or the benefit of anyone other
than the Buyer and/or its shareholders during the term of this Agreement and for a period of two (2) years after the termination of this Agreement pursuant to Section 9; provided that the undersigned may disclose such Confidential
Information as required by law, court order or other valid and appropriate legal process
.
9.
Term of Agreement;
Termination
. The term of this Agreement shall commence on the date hereof. This Agreement may be terminated at any time prior to consummation of the transactions contemplated by the Merger Agreement by the written consent of the parties
hereto, and this Agreement shall be automatically terminated upon either (i) the termination of the Merger Agreement in accordance with its terms, or (ii) the consummation of the Merger. Upon such termination, no party shall have any
further obligations or liabilities hereunder;
provided, however
, that such termination shall not relieve any party from liability for any breach of this Agreement prior to such termination;
provided further
that the provisions of
Section 8 of this Agreement shall remain in full force and effect regardless of any such termination pursuant to this Section 9.
10.
Severability
. In the event that any one or more provisions of this Agreement shall for any reason be held invalid, illegal
or unenforceable in any respect by any court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, and the parties shall use their reasonable best efforts to substitute a
valid, legal and enforceable provision which, insofar as practical, implements the purpose and intents of this Agreement.
11.
Miscellaneous
.
(a) Capitalized terms used and not otherwise defined in this Agreement shall have the
respective meanings assigned to them in the Merger Agreement. As used herein, the singular shall include the plural and any reference to gender shall include all other genders. The terms
include
,
including
and
similar phrases shall mean including without limitation, whether by enumeration or otherwise.
(b) All notices, requests,
claims, demands and other communications under this Agreement shall be in writing and shall be deemed given if delivered personally or sent by reliable overnight delivery or by facsimile or electronic transmission to the parties at the following
addresses (or at such other address for a party as shall be specified by like notice): (i) if to the Buyer or Seller, to the addresses set forth in Section 7.9 of the Merger Agreement; and (ii) if to the Shareholder, to its address
shown below its signature on the last page hereof.
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(c) The headings contained in this Agreement are for reference purposes only and
shall not affect in any way the meaning or interpretation of this Agreement.
(d) This Agreement may be executed in two or
more counterparts by facsimile or other electronic means, all of which shall be considered and have the same force and effect as one and the same agreement.
(e) This Agreement (including the documents and instruments referred to herein) constitutes the entire agreement and
understanding of the parties with respect to the subject matter hereof, and supersedes all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof.
(f) This Agreement shall be governed by and construed and interpreted in accordance with the laws of the State of Florida
without regard to the applicable conflicts of laws principles thereof.
(g) If any term, provision, covenant or restriction
herein, or the application thereof to any circumstance, shall, to any extent, be held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions herein and the
application thereof to any other circumstances, shall remain in full force and effect, shall not in any way be affected, impaired or invalidated, and shall be enforced to the fullest extent permitted by law.
(h) Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned, in whole or
in part, by operation of law or otherwise, by any of the parties without the prior written consent of the other parties, except as expressly contemplated by Section 3(a) of this Agreement. Any assignment in violation of the foregoing shall be
void.
(i) No amendment, modification or waiver in respect of this Agreement shall be effective against any party unless it
shall be in writing and signed by both parties.
(j) The parties acknowledge that nothing in this Agreement shall be
interpreted to give rise to joint obligations among the Shareholders. No Shareholder shall be deemed to be in breach of this Agreement as a result of the actions of any other Shareholder.
(k) Notwithstanding any other provision of this Agreement, the obligations of the Shareholder under this Agreement shall not be
applicable in connection with an Acquisition Proposal that is a Superior Proposal, provided that Seller and its Affiliates have complied with the terms and conditions of the Merger Agreement, including Section 4.5 and 4.12 of the Merger
Agreement.
(l) Notwithstanding anything to the contrary in this Agreement, nothing herein is intended or shall be
construed or require the Shareholder, in his or her capacity as a director, officer, or employee of the Company, to act or fail to act in accordance with his or her fiduciary duties as a director or officer, subject to the terms and conditions of
the Merger Agreement.
[Signatures on following pages]
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IN WITNESS WHEREOF, the undersigned parties have executed and delivered this Support Agreement as
of the day and year first above written.
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SELLER
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NORTHSTAR BANKING CORPORATION
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By:
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Name: Scott Jacobsen
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Title: President and Chief Executive Officer
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BUYER
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SEACOAST BANKING CORPORATION OF FLORIDA
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By:
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Name: Dennis S. Hudson, III
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Title: Chairman and Chief Executive Officer
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SHAREHOLDER
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Name:
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Address:
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Number of Shares of Common Stock Over Which Shareholder Has Voting Power and Capacity of Ownership:
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[Signature Page to the Shareholder Support Agreement]
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Exhibit C
FORM OF CLAIMS LETTER
May 18, 2017
Seacoast Banking Corporation
of Florida
815 Colorado Avenue
Stuart, Florida 34994
Attention: Dennis S. Hudson, III
Gentlemen:
This claims letter (
Claims Letter
) is delivered pursuant to Section 4.17 of that certain Agreement and Plan of Merger,
dated as of May 18, 2017 (as the same may be amended or supplemented, the
Merger Agreement
), by and among Seacoast Banking Corporation of Florida, a Florida corporation (
Buyer
), Seacoast National Bank, a
national banking association and wholly owned subsidiary of Buyer, NorthStar Banking Corporation, a Florida corporation (
Seller
) and NorthStar Bank, a Florida state-chartered bank and wholly owned subsidiary of Seller. Capitalized
terms used herein and not otherwise defined shall have the respective meanings ascribed to them in the Merger Agreement.
Concerning
claims which the undersigned may have against Seller or Buyer or any of their respective Subsidiaries in all capacities, whether as an officer, director, employee, partner, controlling person or Affiliate or otherwise of Seller, NorthStar Bank or
any Seller entity, and in consideration of the premises, and the mutual covenants contained herein and in the Merger Agreement and the mutual benefits to be derived hereunder and thereunder, and other good and valuable consideration, the receipt and
sufficiency of which are acknowledged, the undersigned, intending to be legally bound, hereby affirms and agrees to the following in each and every such capacity of the undersigned.
1.
Claims
.
The undersigned does not have, and is not aware of, any claims he or she might have against Seller or Buyer or any of
their respective Subsidiaries, except for: (i) compensation and related benefits for services rendered that have been accrued but not yet paid in the ordinary course of business consistent with past practice; (ii) contract rights, under
written loan commitments and agreements between the undersigned and Seller, specifically limited to possible future advances in accordance with the terms of such commitments or agreements; (iii) certificates of deposit and deposit accounts;
(iv) fees owed on account of any services rendered by the undersigned that have been accrued but not yet paid in the ordinary course of business consistent with past practice; (v) checks issued by any other depositor of Seller;
(vi) any rights that the undersigned has or may have under the Merger Agreement including, without limitation, the indemnification rights set forth in Section 4.15 thereof; and (vii) amounts payable to the undersigned pursuant to the
Merger Agreement or any ancillary document referred to therein in his or her capacity as a shareholder of Seller or as an officer or director of Seller or a holder of a NorthStar Equity Award (collectively, the
Disclosed Claims
).
2.
Releases
.
Upon the Closing, the undersigned hereby fully, finally and irrevocably releases and forever discharges
Seller, NorthStar Bank, Buyer, Seacoast National Bank and all other Seller entities and Buyer entities, and their respective directors, officers, employees, agents, attorneys, representatives, Subsidiaries, partners, Affiliates, controlling persons
and insurers in their capacities as such, and their respective successors and assigns, and each of them (hereinafter, individually and collectively, the
Releasees
) of and from any and all liabilities, losses, claims, demands,
debts, accounts, covenants, agreements, obligations, costs, expenses, actions or causes of action of every nature, character or description, now accrued or which may hereafter accrue, without limitation and whether or not in law, equity or
otherwise, based in whole or in part on any known or unknown facts, conduct, activities, transactions, events or occurrences, matured or unmatured, contingent or otherwise, which have or allegedly have existed, occurred, happened, arisen or
transpired from the beginning of time to the date of the closing of the transactions contemplated by the Merger Agreement, except for the Disclosed Claims (collectively, the
Claims
). The undersigned further irrevocably releases,
discharges, and transfers to Buyer, as successor to Seller, respectively, all claims, actions and interests of the undersigned in any Intellectual Property of any nature whatsoever created, developed, registered, licensed or used by or for the
undersigned or the Seller, NorthStar Bank or any Seller entity (which shall also be considered to be Claims). The undersigned represents,
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warrants and covenants that no Claim released herein has been assigned, expressly, impliedly, by operation of law or otherwise, and that all Claims released hereby are owned solely by the
undersigned, which has the sole authority to release them.
3.
Forbearance
.
The undersigned shall forever refrain and
forebear from commencing, instituting, prosecuting or making any lawsuit, action, claim or proceeding before or in any court, Regulatory Authority, Governmental Authority, Taxing Authority arbitral or other authority to collect or enforce any Claims
which are released and discharged hereby.
4.
Miscellaneous
.
(a) This Claims Letter shall be governed by, and construed in accordance with, the laws of the State of Florida without regard to conflict of
laws principles (other than the choice of law provisions thereof).
(b) This Claims Letter contains the entire agreement between the
parties with respect to the Claims released hereby, and such Claims Letter supersedes all prior agreements, arrangements or understandings (written or otherwise) with respect to such Claims, and no representation or warranty, oral or written,
express or implied, has been made by or relied upon by any party hereto, except as expressly contained herein, or in the Merger Agreement.
(c) This Claims Letter shall be binding upon and inure to the benefit of the undersigned and the Releasees and their respective heirs, legal
representatives, successors and assigns.
(d) In any legal action or other proceeding relating to this Claims Letter and the transactions
contemplated hereby or if the enforcement of any right or benefit provided by this Claims Letter is brought against a party, the prevailing party in any such Litigation pursuant to which an arbitral panel, court or other Governmental Authority
issues a final order, judgment, decree or award granting substantially the relief sought shall be entitled upon demand to be paid by the other party all reasonable costs incurred in connection with such Litigation, including the reasonable legal
fees and charges of one counsel, court costs and expenses incident to arbitration, appellate and post-judgement proceedings, provided no party shall be entitled to any punitive or exemplary damages, which are hereby waived.
(e) IN ANY CIVIL ACTION, COUNTERCLAIM, PROCEEDING, OR LITIGATION, WHETHER AT LAW OR IN EQUITY, WHICH ARISES OUT OF, CONCERNS, OR RELATES TO
THIS CLAIMS LETTER, ANY AND ALL TRANSACTIONS CONTEMPLATED BY THIS CLAIMS LETTER, THE PERFORMANCE OF THIS CLAIMS LETTER, OR THE RELATIONSHIP CREATED BY THIS CLAIMS LETTER, WHETHER SOUNDING IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE, TRIAL
SHALL BE TO A COURT OF COMPETENT JURISDICTION AND NOT TO A JURY. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY. ANY PARTY MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS CLAIMS LETTER WITH ANY COURT, AS WRITTEN
EVIDENCE OF THE CONSENT OF THE PARTIES TO THIS CLAIMS LETTER OF THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. NEITHER PARTY HAS MADE OR RELIED UPON ANY ORAL REPRESENTATIONS TO OR BY ANY OTHER PARTY REGARDING THE ENFORCEABILITY OF THIS PROVISION. EACH
PARTY HAS READ AND UNDERSTANDS THE EFFECT OF THIS JURY WAIVER PROVISION. EACH PARTY ACKNOWLEDGES THAT IT HAS BEEN ADVISED BY ITS OWN COUNSEL WITH RESPECT TO THE TRANSACTIONS GOVERNED BY THIS CLAIMS LETTER AND SPECIFICALLY WITH RESPECT TO THE TERMS
OF THIS SECTION.
(f) This Claims Letter may not be modified, amended or rescinded except by the written agreement of the undersigned and
the Buyer, it being the express understanding of the undersigned and the Releasees that no term hereof may be waived by the action, inaction or course of dealing by or between the undersigned or the Releasees, except in strict accordance with this
paragraph, and further that the waiver of any breach of this Claims Letter shall not constitute or be construed as the waiver of any other breach of the terms hereof.
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(g) The undersigned represents, warrants and covenants that he or she is fully aware of his or
her rights to discuss any and all aspects of this matter with any attorney he or she chooses, and that the undersigned has carefully read and fully understands all the provisions of this Claims Letter, and that the undersigned is voluntarily
entering into this Claims Letter.
(h) This Claims Letter shall become effective upon the consummation of the Merger, and its operation to
extinguish all of the Claims released hereby is not dependent on or affected by the performance or non-performance of any future act by the undersigned or the Releasees.
[
Signatures on following page
.]
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Sincerely,
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Signature of Officer or Director
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Printed Name of Officer or Director
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On behalf of Releasees, the undersigned thereunto duly authorized, acknowledges receipt of this letter
as of May 18, 2017.
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SEACOAST BANKING CORPORATION OF FLORIDA
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By:
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Name: Dennis S. Hudson, III
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Title: Chairman and Chief Executive Officer
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[
Signature Page to Claims Letter
]
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Exhibit D
FORM OF RESTRICTIVE COVENANT AGREEMENT
[FORM OF OUTSIDE DIRECTOR AGREEMENT 3 YEAR]
THIS RESTRICTIVE COVENANT AGREEMENT (the
Agreement
) is made and entered into as of May 18, 2017, by and between
Seacoast Banking Corporation of Florida, a Florida corporation (
Buyer
), and the undersigned director (
Director
) of NorthStar Banking Corporation, a Florida corporation (
NorthStar
) and/or
NorthStar Bank, a Florida chartered bank and wholly owned subsidiary of NorthStar (
Merger Sub
and collectively with NorthStar,
Seller
) and shall become effective as of the Effective Time of the Merger as
provided in the Merger Agreement (defined below).
WHEREAS, Buyer, Seacoast National Bank, a national banking association and wholly owned
subsidiary of Buyer (
SNB
), NorthStar and Merger Sub are parties to that certain Agreement and Plan of Merger, dated as of May 18, 2017, as the same may be amended or supplemented (the
Merger Agreement
),
that provides for, among other things, the merger of NorthStar with and into Buyer, and the subsequent merger of Merger Sub with and into SNB (the
Merger
);
WHEREAS, Director is a shareholder and director of Seller;
WHEREAS, as a result of the Merger and pursuant to the transactions contemplated by the Merger Agreement, Director and/or an Affiliate of
Director is selling shares of Company Common Stock held by Director and/or the Directors Affiliate to Buyer and will receive Merger Consideration in exchange for such shares;
WHEREAS, Director is in possession of trade secrets and valuable confidential business information of Seller, and has substantial
relationships with its banking customers;
WHEREAS, prior to the date hereof, Director has served as a member of the Board of Directors of
Seller, and, therefore, Director has knowledge of the Confidential Information (hereinafter defined);
WHEREAS, the Director acknowledges
that the Buyer has legitimate business interests to justify the enforcement of this Agreement;
WHEREAS, as a result of the Merger, Buyer
will succeed to all of the Confidential Information, for which Buyer, as of the Effective Time, will have paid valuable considerations and desires reasonable protection; and
WHEREAS, the Merger Agreement contemplates that, upon the execution and delivery of the Merger Agreement by Seller, as a condition and
inducement to the willingness of Buyer and SNB to enter into the Merger Agreement, Director will enter into and perform this Agreement.
NOW THEREFORE, in consideration of the premises and for other good and valuable consideration, including, without limitation, the Merger
Consideration to be received by Director and/or the Directors Affiliate, the sufficiency and receipt of which are hereby acknowledged, the parties hereto, intending to be legally bound, covenant and agree as follows:
1.
Certain Definitions
.
(a)
Affiliated Company
means any company or entity controlled by, controlling or under common control with Buyer or Seller.
(b)
Confidential Information
means all information regarding Seller, Buyer and their respective Affiliated Companies
and any of their respective activities, businesses or customers that is not generally known to persons not employed by Seller, Buyer or their respective Affiliated Companies, and that is not generally disclosed publicly to persons not employed by
Seller, Buyer or their respective Affiliated Companies (except to applicable regulatory authorities and/or pursuant to confidential or other relationships where there is no expectation of public disclosure or use by third Persons).
Confidential Information
shall include, without
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limitation, all customer information, customer lists, confidential methods of operation, lending and credit information, commissions, mark-ups, product/service formulas, information concerning
techniques for use and integration of websites and other products/services, current and future development and expansion or contraction plans of Seller, Buyer or their respective Affiliated Companies, sale/acquisition plans and contacts, marketing
plans and contacts, information concerning the legal affairs of and information concerning the pricing of products and services, strategy, tactics and financial affairs of Seller, Buyer or their respective Affiliated Companies.
Confidential
Information
also includes any confidential information, trade secrets or any equivalent term under any applicable federal, state or local law.
Confidential Information
shall not include
information that (i) has become generally available to the public by the act of one who has the right to disclose such information without violating any right or privilege of Seller or Buyer or their respective Affiliated Companies or any duty
owed to any of them; or (ii) is independently developed by a person or entity without reference to or use of Confidential Information. Director acknowledges and agrees that the trading in Buyer or Seller securities using Confidential
Information or other non-public information may violate federal and state securities laws.
(c) Capitalized terms used but not
defined herein shall have the same meanings provided in the Merger Agreement.
2.
Restrictive Covenants
.
(a)
Nondisclosure of Confidential Information.
From the Effective Time and for a period of five (5) years thereafter, Director
shall not directly or indirectly transmit or disclose any Confidential Information to any Person, or use or permit others to use any such Confidential Information, directly or indirectly, for any purpose for so long as such information remains
Confidential Information, without the prior express written consent of the Chief Executive Officer of Buyer, which consent may be withheld in the sole discretion of Buyers Chief Executive Officer. Anything herein to the contrary
notwithstanding, Director shall not be restricted from disclosing information that is required to be disclosed by law, court order or other valid and appropriate legal process;
provided, however
, that in the event such disclosure is required
by law, Director shall (i) if allowed by law or legal process, provide Buyer with prompt notice of such requirement so that Buyer may seek an appropriate protective order prior to any such required disclosure by Director; and (ii) use
commercially reasonable efforts to obtain assurances that any Confidential Information disclosed will be accorded confidential treatment;
provided
,
further
, that no such notice or efforts shall be required in connection with any
routine audit or investigation by any Governmental Authority or Taxing Authority that does not expressly reference Seller, Buyer or any of their respective Affiliated Companies. If, in the absence of a required waiver or protective order, Director
is nonetheless, in the good faith written opinion of his legal counsel, required to disclose Confidential Information, disclosure may be made only as to that portion of the Confidential Information that counsel advises Director is required to be
disclosed.
(b)
Nonrecruitment of Employees
. Director hereby agrees that, for three (3) years following the Effective Time,
Director shall not, without the prior written consent of the Buyers Chief Executive Officer, which consent may be withheld at the sole discretion of the Buyers Chief Executive Officer, directly or indirectly solicit or recruit or attempt
to solicit or recruit for employment or encourage to leave employment with Buyer or any of its Affiliated Companies, on his or her own behalf or on behalf of any other Person, (i) any then-current employee of Buyer or any of its Affiliated
Companies or (ii) any employee of Seller who worked at Seller or any of its Affiliated Companies during Directors services as a director of Seller or any Seller Affiliated Company and who has not ceased employment for a minimum of a six
month period with Buyer, Seller or any Affiliated Companies, as applicable. It is acknowledged that general advertisements shall not be deemed to violate this provision.
(c)
Nonsolicitation of Customers
. Director hereby agrees that, for three (3) years following the Effective Time, Director shall
not, without the prior written consent of the Buyers Chief Executive Officer, which consent may be withheld at the sole discretion of Buyers Chief Executive Officer, directly or indirectly, on behalf of himself, herself or of anyone
other than Seller, Buyer or any Affiliated Company, in the Restricted
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Area (as defined in Section 2(d) below), solicit or attempt to solicit any customer or client of Seller for the purpose of either (i) providing any Business Activities (as defined in
Section 2(d)) or (ii) inducing such customer or client to cease, reduce, restrict or divert its business with Seller, Buyer or any Affiliated Company. It is acknowledged that general advertisements shall not be deemed to violate this
provision.
(d)
Noncompetition
. Director hereby agrees that, for three (3) years following the Effective Time, Director shall
not, without the prior written consent of Buyers Chief Executive Officer, which consent may be withheld at the sole discretion of Buyers Chief Executive Officer, prepare or apply to commence, or engage or participate in, Business
Activities with, for or on behalf of any other (i) financial institution as an officer, director, manager, owner, partner, joint venture, consultant, independent contractor, employee, or shareholder of, or (ii) Person, business or
enterprise, in either case that competes in the Restricted Area with the Buyer and its Affiliated Companies with respect to Business Activities. For purposes of this Agreement,
Business Activities
shall be any business activities
conducted by Buyer, Seller or any of their Affiliated Companies, which consist of commercial or consumer loans and extensions of credit, letters of credit, commercial and consumer deposits and deposit accounts, securities repurchase agreements and
sweep accounts, cash management services, money transfer and bill payment services, internet or electronic banking, automated teller machines, IRA and retirement accounts, commercial or consumer mortgage loans, and commercial or consumer home equity
lines of credit. For the avoidance of doubt, nothing in this Section 2(d) shall prohibit a Director from providing to any entity which engages in Business Activities within the Restricted Area (i) services that the Director provides as of
the date of this Agreement, and (ii) services that the Director has provided prior to the date of this Agreement as a part of such Directors current business. For purposes of this Agreement, the
Restricted Area
shall
mean Brevard, Broward, DeSoto, Glades, Hendry, Highlands, Hillsborough, Indian River, Lake, Manatee, Martin, Okeechobee, Orange, Palm Beach, Pinellas, Polk, Seminole, St. Lucie and Volusia counties in Florida. Nothing in this Section 2(d) shall
prohibit Director from acquiring or holding, for investment purposes only, less than five percent (5%) of the outstanding securities of any company or business organization which may compete directly or indirectly with Seller, Buyer or any of
their Affiliated Companies. Nothing in this Agreement shall prohibit a Director or any of such Directors Affiliated Companies from continuing to hold outstanding securities of an entity that engages in Business Activities; provided that, such
securities were held by the Director or any of such Directors Affiliated Company as of the date of this Agreement. If Buyer is sold during the term of the Agreement, the terms under Section 2(b), 2(c), and 2(d) hereof shall be
automatically reduced from three (3) to two (2) years.
(e)
Enforceability of Covenants.
Director acknowledges and agrees that
the covenants in this Agreement are direct consideration for a sale of a business and should be governed by standards applicable to restrictive covenants entered into in connection with a sale of a business. Director acknowledges that each of Buyer
and its Affiliated Companies have a current and future expectation of business within the Restricted Area and from the current and proposed customers of Seller that are derived from the acquisition of Seller by Buyer. Director acknowledges that the
term, geographic area, and scope of the covenants set forth in this Agreement are reasonable, and agrees that he will not, in any action, suit or other proceeding, deny the reasonableness of, or assert the unreasonableness of, the premises,
consideration or scope of the covenants set forth herein. Director agrees that his position as a director of Seller involves duties and authority relating to all aspects of the Business Activities and all of the Restricted Area. Director further
acknowledges that complying with the provisions contained in this Agreement will not preclude him from engaging in a lawful profession, trade or business, or from becoming gainfully employed. Director and Buyer agree that Directors obligations
under the above covenants are separate and distinct under this Agreement, and the failure or alleged failure of the Buyer to perform its obligations under any other provisions of this Agreement shall not constitute a defense to the enforceability of
this covenant. Director and Buyer agree that if any portion of the foregoing provisions is deemed to be unenforceable because the geography, time or scope of activities restricted is deemed to be too broad, the court shall be authorized to
substitute for the overbroad term an enforceable term that will enable the enforcement of the covenants to the maximum extent possible under applicable law. Director acknowledges and agrees that any breach or threatened breach of this covenant will
result in irreparable damage and injury to the Buyer and its Affiliated Companies and that damages arising out of such breach would be difficult to ascertain.
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Director hereby agrees that, in addition to all other remedies provided at law or in equity, Buyer will be entitled to exercise all rights including, without limitation, obtaining one or more
temporary restraining orders, injunctive relief and other equitable relief, including specific performance in the event of any breach or threatened breach of this Agreement, without the necessity of posting any bond or security (all of which are
waived by the Director), and to exercise all other rights or remedies, at law or in equity, including, without limitation, the rights to damages.
3.
Successors
.
(a) This
Agreement is personal to Director, is not assignable by Director, and none of Directors duties hereunder may be delegated.
(b) This
Agreement may be assigned by, and shall be binding upon and inure to the benefit of the Buyer and any of its Affiliated Companies and their successors and assigns.
4.
Miscellaneous
.
(a)
Waiver
. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing signed by Director and Buyer. No waiver by either party hereto at any time of any breach by the
other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of dissimilar provisions or conditions at the same or any prior subsequent time.
(b)
Severability
. If any provision or covenant, or any part thereof, of this Agreement should be held by any court to be invalid,
illegal or unenforceable, either in whole or in part, such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of the remaining provisions or covenants, or any part thereof, of this Agreement, all of
which shall remain in full force and effect.
(c)
Attorneys Fees
. In any legal action or other proceeding relating to this
Agreement and the transactions contemplated hereby or if the enforcement of any right or benefit provided by this Agreement is brought against a Party, the prevailing Party in any such legal action or other proceeding pursuant to which an arbitral
panel, court or other Governmental Authority issues a final order, judgment, decree or award granting substantially the relief sought shall be entitled upon demand to be paid by the other Party, all reasonable costs incurred in connection with such
legal action or other proceeding, including the reasonable legal fees and charges of counsel, court costs and expenses incident to arbitration, appellate and post-judgment proceedings, provided no party shall be entitled to any punitive or exemplary
damages, which are hereby waived.
(d)
Governing Law and Forum Selection
. Buyer and Director agree that this Agreement shall be
governed by and construed and interpreted in accordance with the laws of the State of Florida without giving effect to its conflicts of law principles. Director agrees that any action to enforce this Agreement, as well as any action relating to or
arising out of this Agreement, shall be filed only in the state courts of Hillsborough County, Florida. With respect to any such court action, Director hereby (i) irrevocably submits to the personal jurisdiction of such courts;
(ii) consents to service of process; (iii) consents to venue; and (iv) waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction, service of process, or venue. Both
parties hereto further agree that the state courts of Hillsborough County, Florida are convenient forums for any dispute that may arise herefrom and that neither party shall raise as a defense that such courts are not convenient forums.
(e)
Notices
. All notice, consent, demand, request or other communication given to a party hereto in connection with this Agreement
shall be in writing and shall be deemed to have been given such party (i) when delivered personally to such party or (ii) provided that a written acknowledgement of receipt is obtained, five (5) days after being sent by prepaid
certified or registered mail or two (2) days after being sent by a nationally
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recognized overnight courier, to the address (if any) specified below for such party (or to such other address at such party shall have specified by ten (10) days advance notice given
in accordance with this Section 4(e), or (iii) in the case of Buyer only, on the first business day after it is sent by electronic transmission or facsimile to the facsimile number set forth below (or to other such facsimile number as
shall have specified by ten (10) days advance notice given in accordance with this Section 4(e)), with a confirmation copy sent by certified or registered mail or by overnight courier in accordance with this Section 4(e).
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To Buyer:
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Seacoast Banking Corporation of Florida
815
Colorado Avenue
Stuart, Florida 34994
Facsimile Number:
(772) 288-6086
Attention: Dennis S. Hudson, III
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To Director:
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To the address set forth under such Directors name on the signature page of this Agreement
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Any party may change the address to which notices, requests, demands and other communications shall be delivered or mailed by
giving notice thereof to the other party in the same manner provided herein.
(f)
Amendments and Modifications
. This Agreement may
be amended or modified only by a writing signed by both parties hereto, which makes specific reference to this Agreement.
(g)
Entire
Agreement
. Except as provided herein, this Agreement contains the entire agreement between Buyer and Director with respect to the subject matter hereof and, from and after the date hereof, this Agreement shall supersede any prior agreement,
understanding and arrangement, oral or written, between the parties with respect to the subject matter hereof.
(h)
Counterparts
.
This Agreement may be executed in identical counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. A facsimile signature shall constitute and have the same force and
effect as an original signature for all purposes under this Agreement.
(i)
Termination
. If the Merger Agreement is terminated in
accordance with Article 6 thereof, this Agreement shall become null and void.
[Signatures on following page]
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IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Agreement as of the
date first above written.
BUYER:
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SEACOAST BANKING CORPORATION OF FLORIDA
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By:
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Name:
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Dennis S. Hudson, III
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Title:
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Chairman and Chief Executive Officer
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DIRECTOR:
[
Signature Page to Restrictive Covenant Agreement
]
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APPENDIX B
May 17, 2017
Board of Directors
NorthStar Banking Corporation
400 North Ashley Drive, Suite 1400
Tampa, FL 33602
Ladies and Gentlemen:
NorthStar Banking
Corporation (NorthStar), NorthStar Bank, a wholly-owned subsidiary of NorthStar (Bank and together with NorthStar, Company), Seacoast Banking Corporation of Florida (SBC) and Seacoast National Bank, a
wholly-owned subsidiary of SBC (SNB and together with SBC, Seacoast), are proposing to enter into an Agreement and Plan of Merger (the Agreement) pursuant to which NorthStar will merge with and into SBC with SBC
being the surviving corporation (the Merger). Pursuant to the terms of the Agreement, at the Effective Time, each share of common stock, $0.01 par value per share, of NorthStar (Company Common Stock) issued and outstanding
immediately prior to the Effective Time, except for certain shares of Company Common Stock as specified in the Agreement, will be converted into the right to receive, subject to certain adjustments set forth in the Agreement, (i) 0.5605 shares
of SBC Common Stock (the Stock Consideration), and (ii) $2.40 in cash (the Cash Consideration). The Stock Consideration and the Cash Consideration are collectively referred to herein as the Merger
Consideration. Capitalized terms used herein without definition have the meanings assigned to them in the Agreement. The terms and conditions of the Merger are more fully set forth in the Agreement. You have requested our opinion as to the
fairness, from a financial point of view, of the Merger Consideration to the holders of Company Common Stock.
Sandler
ONeill & Partners, L.P. (Sandler ONeill, we or our), as part of its investment banking business, is regularly engaged in the valuation of financial institutions and their securities in
connection with mergers and acquisitions and other corporate transactions. In connection with this opinion, we have reviewed and considered, among other things: (i) an execution copy of the Agreement, dated May 18, 2017; (ii) certain
publicly available financial statements and other historical financial information of Company that we deemed relevant; (iii) certain publicly available financial statements and other historical financial information of Seacoast that we deemed
relevant; (iv) certain internal financial projections for Company for the years ending December 31, 2017 through December 31, 2021, as provided by the senior management of Company; (v) publicly available consensus mean analyst
earnings per share estimates for Seacoast for the years ending December 31, 2017 and December 31, 2018, as well as an estimated long-term earnings per share growth rate for the years thereafter, as provided by the senior management of
Seacoast; (vi) the pro forma financial impact of the Merger on Seacoast based on certain assumptions relating to purchase accounting adjustments, cost savings and transaction expenses, as provided by the senior management of Seacoast;
(vii) the publicly reported historical price and trading activity for SBC Common Stock, including a comparison of certain stock market information for SBC Common Stock and certain stock indices as well as publicly available information for
certain other
SANDLER ONEILL + PARTNERS, L.P.
1251 Avenue of the Americas, 6th Floor, New York, NY 10020
T:
(212) 466-7700 / (800) 635-6855
www.sandleroneill.com
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similar companies, the securities of which are
publicly traded; (viii) a comparison of certain financial information for Company and Seacoast with similar financial institutions for which information is publicly available; (ix) the financial terms of certain recent business
combinations in the banking industry (on a regional and nationwide basis), to the extent publicly available; (x) the current market environment generally and the banking environment in particular; and (xi) such other information, financial
studies, analyses and investigations and financial, economic and market criteria as we considered relevant. We also discussed with certain members of the senior management of Company the business, financial condition, results of operations and
prospects of Company and held similar discussions with certain members of the senior management of Seacoast regarding the business, financial condition, results of operations and prospects of Seacoast.
In performing our review, we have relied upon the accuracy and completeness of all of the financial and other information that was available
to and reviewed by us from public sources, that was provided to us by Company or Seacoast or their respective representatives or that was otherwise reviewed by us, and we have assumed such accuracy and completeness for purposes of rendering this
opinion without any independent verification or investigation. We have relied on the assurances of the respective managements of Company and Seacoast that they are not aware of any facts or circumstances that would make any of such information
inaccurate or misleading. We have not been asked to and have not undertaken an independent verification of any of such information and we do not assume any responsibility or liability for the accuracy or completeness thereof. We did not make an
independent evaluation or perform an appraisal of the specific assets, the collateral securing assets or the liabilities (contingent or otherwise) of Company or Seacoast or any of their respective subsidiaries, nor have we been furnished with any
such evaluations or appraisals. We render no opinion or evaluation on the collectability of any assets or the future performance of any loans of Company or Seacoast. We did not make an independent evaluation of the adequacy of the allowance for loan
losses of Company or Seacoast, or of the combined entity after the Merger, and we have not reviewed any individual credit files relating to Company or Seacoast. We have assumed, with your consent, that the respective allowances for loan losses for
both Company and Seacoast are adequate to cover such losses and will be adequate on a pro forma basis for the combined entity.
In
preparing its analyses, Sandler ONeill used certain internal financial projections for Company for the years ending December 31, 2017 through December 31, 2021, as provided by the senior management of Company. In addition, Sandler
ONeill used publicly available consensus mean analyst earnings per share estimates for Seacoast for the years ending December 31, 2017 and December 31, 2018, as well as an estimated long-term earnings per share growth rate for the
years thereafter, as provided by the senior management of Seacoast. Sandler ONeill also received and used in its pro forma analyses certain assumptions relating to purchase accounting adjustments, cost savings and transaction expenses, as
provided by the senior management of Seacoast. With respect to the foregoing information, the respective senior managements of Company and Seacoast confirmed to us that such information reflected (or, in the case of the publicly available consensus
mean analyst earnings per share estimates referred to above, were consistent with) the best currently available projections, estimates and judgments of those respective senior managements as to the future financial performance of Company and
Seacoast, respectively, and the other matters covered thereby, and we assumed that the future financial performance reflected in such information would be achieved. We express no opinion as to such information, or the assumptions on which such
information is based. We have also assumed that there has been no material change in the respective assets, financial condition, results of operations, business or prospects of Company or Seacoast since the date of the most recent financial
statements made available to us. We have
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assumed in all respects material to our analysis that
Company and Seacoast will remain as going concerns for all periods relevant to our analysis.
We have also assumed, with your consent,
that (i) each of the parties to the Agreement will comply in all material respects with all material terms and conditions of the Agreement and all related agreements, that all of the representations and warranties contained in such agreements
are true and correct in all material respects, that each of the parties to such agreements will perform in all material respects all of the covenants and other obligations required to be performed by such party under such agreements and that the
conditions precedent in such agreements are not and will not be waived, (ii) in the course of obtaining the necessary regulatory or third party approvals, consents and releases with respect to the Merger, no delay, limitation, restriction or
condition will be imposed that would have an adverse effect on Company, Seacoast or the Merger or any related transaction, (iii) the Merger and any related transactions will be consummated in accordance with the terms of the Agreement without
any waiver, modification or amendment of any material term, condition or agreement thereof and in compliance with all applicable laws and other requirements, and (iv) the Merger will qualify as a tax-free reorganization for federal income tax
purposes. Finally, with your consent, we have relied upon the advice that Company has received from its legal, accounting and tax advisors as to all legal, accounting and tax matters relating to the Merger and the other transactions contemplated by
the Agreement. We express no opinion as to any such matters.
Our opinion is necessarily based on financial, economic, market and other
conditions as in effect on, and the information made available to us as of, the date hereof. Events occurring after the date hereof could materially affect this opinion. We have not undertaken to update, revise, reaffirm or withdraw this opinion or
otherwise comment upon events occurring after the date hereof. We express no opinion as to the trading value of SBC Common Stock at any time or what the value of SBC Common Stock will be once it is actually received by the holders of Company Common
Stock.
We have acted as Companys financial advisor in connection with the Merger and will receive a fee for our services, which fee
is contingent upon the closing of the Merger. We will also receive a fee for rendering this opinion, which opinion fee will be credited in full towards the transaction fee which will become payable to Sandler ONeill on the day of closing of
the Merger. Company has also agreed to indemnify us against certain claims and liabilities arising out of our engagement and to reimburse us for certain of our out-of-pocket expenses incurred in connection with our engagement. We have not provided
any other investment banking services to Company in the two years preceding the date of this opinion. In the two years preceding the date hereof, Sandler ONeill has provided certain investment banking services to, and received fees from,
Seacoast. Most recently, Sandler ONeill acted as joint book-running manager in connection with Seacoasts offer and sale of common stock, which transaction closed in February 2017, and financial advisor to the Board of Directors of
Seacoast in connection with Seacoasts acquisition of Grand Bankshares, Inc., which transaction closed in July 2015. In addition, in the ordinary course of our business as a broker-dealer, we may purchase securities from and sell securities to
Seacoast and its affiliates. We may also actively trade the equity and debt securities of Seacoast and its affiliates for our own account and for the accounts of our customers.
Our opinion is directed to the Board of Directors of Company in connection with its consideration of the Agreement and the Merger and does not
constitute a recommendation to any shareholder of Company as to how any such shareholder should vote at any meeting of shareholders called to consider and vote upon the approval of the Agreement and the Merger. Our opinion is directed only to the
fairness, from a financial point of view, of the
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Merger Consideration to the holders of Company Common
Stock and does not address the underlying business decision of Company to engage in the Merger, the form or structure of the Merger or any other transactions contemplated in the Agreement, the relative merits of the Merger as compared to any other
alternative transactions or business strategies that might exist for Company or the effect of any other transaction in which Company might engage. We also do not express any opinion as to the fairness of the amount or nature of the compensation to
be received in the Merger by any officer, director or employee of Company or Seacoast, or any class of such persons, if any, relative to the compensation to be received in the Merger by any other shareholder. This opinion has been approved by
Sandler ONeills fairness opinion committee. This opinion shall not be reproduced without Sandler ONeills prior written consent;
provided,
however, Sandler ONeill will provide its consent for the opinion to be
included in regulatory filings to be completed in connection with the Merger.
Based upon and subject to the foregoing, it is our opinion
that, as of the date hereof, the Merger Consideration is fair to holders of Company Common Stock from a financial point of view.
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Very truly yours,
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APPENDIX C
607.1301 Appraisal rights; definitions. The following definitions apply to ss. 607.1302-607.1333:
(1) Affiliate means a person that directly or indirectly through one or more intermediaries controls, is controlled
by, or is under common control with another person or is a senior executive thereof. For purposes of s. 607.1302(2)(d), a person is deemed to be an affiliate of its senior executives.
(2) Beneficial shareholder means a person who is the beneficial owner of shares held in a voting trust or by a
nominee on the beneficial owners behalf.
(3) Corporation means the issuer of the shares held by a
shareholder demanding appraisal and, for matters covered in ss. 607.1322-607.1333, includes the surviving entity in a merger.
(4) Fair value means the value of the corporations shares determined:
(a) Immediately before the effectuation of the corporate action to which the shareholder objects.
(b) Using customary and current valuation concepts and techniques generally employed for similar businesses in the context of
the transaction requiring appraisal, excluding any appreciation or depreciation in anticipation of the corporate action unless exclusion would be inequitable to the corporation and its remaining shareholders.
(c) For a corporation with 10 or fewer shareholders, without discounting for lack of marketability or minority status.
(5) Interest means interest from the effective date of the corporate action until the date of payment, at the rate
of interest on judgments in this state on the effective date of the corporate action.
(6) Preferred shares
means a class or series of shares the holders of which have preference over any other class or series with respect to distributions.
(7) Record shareholder means the person in whose name shares are registered in the records of the corporation or
the beneficial owner of shares to the extent of the rights granted by a nominee certificate on file with the corporation.
(8) Senior executive means the chief executive officer, chief operating officer, chief financial officer, or
anyone in charge of a principal business unit or function.
(9) Shareholder means both a record shareholder
and a beneficial shareholder.
History. s. 118, ch. 89-154; s. 21, ch. 2003-283; s. 2, ch. 2005-267.
607.1302 Right of shareholders to appraisal.
(1) A shareholder of a domestic corporation is entitled to appraisal rights, and to obtain payment of the fair value of that
shareholders shares, in the event of any of the following corporate actions:
(a) Consummation of a conversion of
such corporation pursuant to s. 607.1112 if shareholder approval is required for the conversion and the shareholder is entitled to vote on the conversion under ss. 607.1103 and 607.1112(6), or the consummation of a merger to which such corporation
is a party if shareholder approval is required for the merger under s. 607.1103 and the shareholder is entitled to vote on the merger or if such corporation is a subsidiary and the merger is governed by s. 607.1104;
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(b) Consummation of a share exchange to which the corporation is a party as the
corporation whose shares will be acquired if the shareholder is entitled to vote on the exchange, except that appraisal rights shall not be available to any shareholder of the corporation with respect to any class or series of shares of the
corporation that is not exchanged;
(c) Consummation of a disposition of assets pursuant to s. 607.1202 if the shareholder
is entitled to vote on the disposition, including a sale in dissolution but not including a sale pursuant to court order or a sale for cash pursuant to a plan by which all or substantially all of the net proceeds of the sale will be distributed to
the shareholders within 1 year after the date of sale;
(d) An amendment of the articles of incorporation with respect to
the class or series of shares which reduces the number of shares of a class or series owned by the shareholder to a fraction of a share if the corporation has the obligation or right to repurchase the fractional share so created;
(e) Any other amendment to the articles of incorporation, merger, share exchange, or disposition of assets to the extent
provided by the articles of incorporation, bylaws, or a resolution of the board of directors, except that no bylaw or board resolution providing for appraisal rights may be amended or otherwise altered except by shareholder approval; or
(f) With regard to a class of shares prescribed in the articles of incorporation prior to October 1, 2003, including any
shares within that class subsequently authorized by amendment, any amendment of the articles of incorporation if the shareholder is entitled to vote on the amendment and if such amendment would adversely affect such shareholder by:
1. Altering or abolishing any preemptive rights attached to any of his or her shares;
2. Altering or abolishing the voting rights pertaining to any of his or her shares, except as such rights may be affected by
the voting rights of new shares then being authorized of any existing or new class or series of shares;
3. Effecting an
exchange, cancellation, or reclassification of any of his or her shares, when such exchange, cancellation, or reclassification would alter or abolish the shareholders voting rights or alter his or her percentage of equity in the corporation,
or effecting a reduction or cancellation of accrued dividends or other arrearages in respect to such shares;
4. Reducing
the stated redemption price of any of the shareholders redeemable shares, altering or abolishing any provision relating to any sinking fund for the redemption or purchase of any of his or her shares, or making any of his or her shares subject
to redemption when they are not otherwise redeemable;
5. Making noncumulative, in whole or in part, dividends of any of
the shareholders preferred shares which had theretofore been cumulative;
6. Reducing the stated dividend preference
of any of the shareholders preferred shares; or
7. Reducing any stated preferential amount payable on any of the
shareholders preferred shares upon voluntary or involuntary liquidation.
(2) Notwithstanding subsection (1), the
availability of appraisal rights under paragraphs (1)(a), (b), (c), and (d) shall be limited in accordance with the following provisions:
(a) Appraisal rights shall not be available for the holders of shares of any class or series of shares which is:
1. Listed on the New York Stock Exchange or the American Stock Exchange or designated as a national market system security on
an interdealer quotation system by the National Association of Securities Dealers, Inc.; or
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2. Not so listed or designated, but has at least 2,000 shareholders and the
outstanding shares of such class or series have a market value of at least $10 million, exclusive of the value of such shares held by its subsidiaries, senior executives, directors, and beneficial shareholders owning more than 10 percent of such
shares.
(b) The applicability of paragraph (a) shall be determined as of:
1. The record date fixed to determine the shareholders entitled to receive notice of, and to vote at, the meeting of
shareholders to act upon the corporate action requiring appraisal rights; or
2. If there will be no meeting of
shareholders, the close of business on the day on which the board of directors adopts the resolution recommending such corporate action.
(c) Paragraph (a) shall not be applicable and appraisal rights shall be available pursuant to subsection (1) for the
holders of any class or series of shares who are required by the terms of the corporate action requiring appraisal rights to accept for such shares anything other than cash or shares of any class or any series of shares of any corporation, or any
other proprietary interest of any other entity, that satisfies the standards set forth in paragraph (a) at the time the corporate action becomes effective.
(d) Paragraph (a) shall not be applicable and appraisal rights shall be available pursuant to subsection (1) for the
holders of any class or series of shares if:
1. Any of the shares or assets of the corporation are being acquired or
converted, whether by merger, share exchange, or otherwise, pursuant to the corporate action by a person, or by an affiliate of a person, who:
a. Is, or at any time in the 1-year period immediately preceding approval by the board of directors of the corporate action
requiring appraisal rights was, the beneficial owner of 20 percent or more of the voting power of the corporation, excluding any shares acquired pursuant to an offer for all shares having voting power if such offer was made within 1 year prior to
the corporate action requiring appraisal rights for consideration of the same kind and of a value equal to or less than that paid in connection with the corporate action; or
b. Directly or indirectly has, or at any time in the 1-year period immediately preceding approval by the board of directors of
the corporation of the corporate action requiring appraisal rights had, the power, contractually or otherwise, to cause the appointment or election of 25 percent or more of the directors to the board of directors of the corporation; or
2. Any of the shares or assets of the corporation are being acquired or converted, whether by merger, share exchange, or
otherwise, pursuant to such corporate action by a person, or by an affiliate of a person, who is, or at any time in the 1-year period immediately preceding approval by the board of directors of the corporate action requiring appraisal rights was, a
senior executive or director of the corporation or a senior executive of any affiliate thereof, and that senior executive or director will receive, as a result of the corporate action, a financial benefit not generally available to other
shareholders as such, other than:
a. Employment, consulting, retirement, or similar benefits established separately and
not as part of or in contemplation of the corporate action;
b. Employment, consulting, retirement, or similar benefits
established in contemplation of, or as part of, the corporate action that are not more favorable than those existing before the corporate action or, if more favorable, that have been approved on behalf of the corporation in the same manner as is
provided in s.607.0832; or
c. In the case of a director of the corporation who will, in the corporate action, become a
director of the acquiring entity in the corporate action or one of its affiliates, rights and benefits as a director that are provided on the same basis as those afforded by the acquiring entity generally to other directors of such entity or such
affiliate.
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(e) For the purposes of paragraph (d) only, the term beneficial
owner means any person who, directly or indirectly, through any contract, arrangement, or understanding, other than a revocable proxy, has or shares the power to vote, or to direct the voting of, shares, provided that a member of a national
securities exchange shall not be deemed to be a beneficial owner of securities held directly or indirectly by it on behalf of another person solely because such member is the recordholder of such securities if the member is precluded by the rules of
such exchange from voting without instruction on contested matters or matters that may affect substantially the rights or privileges of the holders of the securities to be voted. When two or more persons agree to act together for the purpose of
voting their shares of the corporation, each member of the group formed thereby shall be deemed to have acquired beneficial ownership, as of the date of such agreement, of all voting shares of the corporation beneficially owned by any member of the
group.
(3) Notwithstanding any other provision of this section, the articles of incorporation as originally filed or any
amendment thereto may limit or eliminate appraisal rights for any class or series of preferred shares, but any such limitation or elimination contained in an amendment to the articles of incorporation that limits or eliminates appraisal rights for
any of such shares that are outstanding immediately prior to the effective date of such amendment or that the corporation is or may be required to issue or sell thereafter pursuant to any conversion, exchange, or other right existing immediately
before the effective date of such amendment shall not apply to any corporate action that becomes effective within 1 year of that date if such action would otherwise afford appraisal rights.
(4) A shareholder entitled to appraisal rights under this chapter may not challenge a completed corporate action for which
appraisal rights are available unless such corporate action:
(a) Was not effectuated in accordance with the applicable
provisions of this section or the corporations articles of incorporation, bylaws, or board of directors resolution authorizing the corporate action; or
(b) Was procured as a result of fraud or material misrepresentation.
History. s. 119, ch. 89-154; s. 5, ch. 94-327; s. 31, ch. 97-102; s. 22, ch. 2003-283; s. 1, ch. 2004-378; s. 3, ch.
2005-267.
607.1303 Assertion of rights by nominees and beneficial owners.
(1) A record shareholder may assert appraisal rights as to fewer than all the shares registered in the record
shareholders name but owned by a beneficial shareholder only if the record shareholder objects with respect to all shares of the class or series owned by the beneficial shareholder and notifies the corporation in writing of the name and
address of each beneficial shareholder on whose behalf appraisal rights are being asserted. The rights of a record shareholder who asserts appraisal rights for only part of the shares held of record in the record shareholders name under this
subsection shall be determined as if the shares as to which the record shareholder objects and the record shareholders other shares were registered in the names of different record shareholders.
(2) A beneficial shareholder may assert appraisal rights as to shares of any class or series held on behalf of the shareholder
only if such shareholder:
(a) Submits to the corporation the record shareholders written consent to the assertion
of such rights no later than the date referred to in s. 607.1322(2)(b)2.
(b) Does so with respect to all shares of the
class or series that are beneficially owned by the beneficial shareholder.
History. s. 23, ch. 2003-283.
607.1320 Notice of appraisal rights.
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(1) If proposed corporate action described in s. 607.1302(1) is to be submitted
to a vote at a shareholders meeting, the meeting notice must state that the corporation has concluded that shareholders are, are not, or may be entitled to assert appraisal rights under this chapter. If the corporation concludes that appraisal
rights are or may be available, a copy of ss. 607.1301-607.1333 must accompany the meeting notice sent to those record shareholders entitled to exercise appraisal rights.
(2) In a merger pursuant to s. 607.1104, the parent corporation must notify in writing all record shareholders of the
subsidiary who are entitled to assert appraisal rights that the corporate action became effective. Such notice must be sent within 10 days after the corporate action became effective and include the materials described in s. 607.1322.
(3) If the proposed corporate action described in s. 607.1302(1) is to be approved other than by a shareholders meeting,
the notice referred to in subsection (1) must be sent to all shareholders at the time that consents are first solicited pursuant to s. 607.0704, whether or not consents are solicited from all shareholders, and include the materials described in
s. 607.1322.
History. s. 120, ch. 89-154; s. 35, ch. 93-281; s. 32, ch. 97-102; s. 24, ch. 2003-283.
607.1321 Notice of intent to demand payment.
(1) If proposed corporate action requiring appraisal rights under s. 607.1302 is submitted to a vote at a shareholders
meeting, or is submitted to a shareholder pursuant to a consent vote under s. 607.0704, a shareholder who wishes to assert appraisal rights with respect to any class or series of shares:
(a) Must deliver to the corporation before the vote is taken, or within 20 days after receiving the notice pursuant to s.
607.1320(3) if action is to be taken without a shareholder meeting, written notice of the shareholders intent to demand payment if the proposed action is effectuated.
(b) Must not vote, or cause or permit to be voted, any shares of such class or series in favor of the proposed action.
(2) A shareholder who does not satisfy the requirements of subsection (1) is not entitled to payment under this chapter.
History. s. 25, ch. 2003-283; s. 7, ch. 2004-378.
607.1322 Appraisal notice and form.
(1) If proposed corporate action requiring appraisal rights under s. 607.1302(1) becomes effective, the corporation must
deliver a written appraisal notice and form required by paragraph (2)(a) to all shareholders who satisfied the requirements of s. 607.1321. In the case of a merger under s. 607.1104, the parent must deliver a written appraisal notice and form
to all record shareholders who may be entitled to assert appraisal rights.
(2) The appraisal notice must be sent no
earlier than the date the corporate action became effective and no later than 10 days after such date and must:
(a)
Supply a form that specifies the date that the corporate action became effective and that provides for the shareholder to state:
1. The shareholders name and address.
2. The number, classes, and series of shares as to which the shareholder asserts appraisal rights.
3. That the shareholder did not vote for the transaction.
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4. Whether the shareholder accepts the corporations offer as stated in
subparagraph (b)4.
5. If the offer is not accepted, the shareholders estimated fair value of the shares and a
demand for payment of the shareholders estimated value plus interest.
(b) State:
1. Where the form must be sent and where certificates for certificated shares must be deposited and the date by which those
certificates must be deposited, which date may not be earlier than the date for receiving the required form under subparagraph 2.
2. A date by which the corporation must receive the form, which date may not be fewer than 40 nor more than 60 days after the
date the subsection (1) appraisal notice and form are sent, and state that the shareholder shall have waived the right to demand appraisal with respect to the shares unless the form is received by the corporation by such specified date.
3. The corporations estimate of the fair value of the shares.
4. An offer to each shareholder who is entitled to appraisal rights to pay the corporations estimate of fair value set
forth in subparagraph 3.
5. That, if requested in writing, the corporation will provide to the shareholder so requesting,
within 10 days after the date specified in subparagraph 2., the number of shareholders who return the forms by the specified date and the total number of shares owned by them.
6. The date by which the notice to withdraw under s. 607.1323 must be received, which date must be within 20 days after the
date specified in subparagraph 2.
(c) Be accompanied by:
1. Financial statements of the corporation that issued the shares to be appraised, consisting of a balance sheet as of the end
of the fiscal year ending not more than 15 months prior to the date of the corporations appraisal notice, an income statement for that year, a cash flow statement for that year, and the latest available interim financial statements, if any.
2. A copy of ss. 607.1301-607.1333.
History. s. 26, ch. 2003-283.
607.1323 Perfection of rights; right to withdraw.
(1) A shareholder who wishes to exercise appraisal rights must execute and return the form received pursuant to s. 607.1322(1)
and, in the case of certificated shares, deposit the shareholders certificates in accordance with the terms of the notice by the date referred to in the notice pursuant to s. 607.1322(2)(b)2. Once a shareholder deposits that shareholders
certificates or, in the case of uncertificated shares, returns the executed forms, that shareholder loses all rights as a shareholder, unless the shareholder withdraws pursuant to subsection (2).
(2) A shareholder who has complied with subsection (1) may nevertheless decline to exercise appraisal rights and withdraw
from the appraisal process by so notifying the corporation in writing by the date set forth in the appraisal notice pursuant to s. 607.1322(2)(b)6. A shareholder who fails to so withdraw from the appraisal process may not thereafter withdraw without
the corporations written consent.
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(3) A shareholder who does not execute and return the form and, in the case of
certificated shares, deposit that shareholders share certificates if required, each by the date set forth in the notice described in subsection (2), shall not be entitled to payment under this chapter.
History. s. 27, ch. 2003-283.
607.1324 Shareholders acceptance of corporations offer.
(1) If the shareholder states on the form provided in s. 607.1322(1) that the shareholder accepts the offer of the corporation
to pay the corporations estimated fair value for the shares, the corporation shall make such payment to the shareholder within 90 days after the corporations receipt of the form from the shareholder.
(2) Upon payment of the agreed value, the shareholder shall cease to have any interest in the shares.
History. s. 28, ch. 2003-283.
607.1326 Procedure if shareholder is dissatisfied with offer.
(1) A shareholder who is dissatisfied with the corporations offer as set forth pursuant to s. 607.1322(2)(b)4. must
notify the corporation on the form provided pursuant to s. 607.1322(1) of that shareholders estimate of the fair value of the shares and demand payment of that estimate plus interest.
(2) A shareholder who fails to notify the corporation in writing of that shareholders demand to be paid the
shareholders stated estimate of the fair value plus interest under subsection (1) within the timeframe set forth in s. 607.1322(2)(b)2. waives the right to demand payment under this section and shall be entitled only to the payment
offered by the corporation pursuant to s. 607.1322(2)(b)4.
History. s. 29, ch. 2003-283.
607.1330 Court action.
(1) If a shareholder makes demand for payment under s. 607.1326 which remains unsettled, the corporation shall commence a
proceeding within 60 days after receiving the payment demand and petition the court to determine the fair value of the shares and accrued interest. If the corporation does not commence the proceeding within the 60- day period, any shareholder who
has made a demand pursuant to s.607.1326 may commence the proceeding in the name of the corporation.
(2) The proceeding
shall be commenced in the appropriate court of the county in which the corporations principal office, or, if none, its registered office, in this state is located. If the corporation is a foreign corporation without a registered office in this
state, the proceeding shall be commenced in the county in this state in which the principal office or registered office of the domestic corporation merged with the foreign corporation was located at the time of the transaction.
(3) All shareholders, whether or not residents of this state, whose demands remain unsettled shall be made parties to the
proceeding as in an action against their shares. The corporation shall serve a copy of the initial pleading in such proceeding upon each shareholder party who is a resident of this state in the manner provided by law for the service of a summons and
complaint and upon each nonresident shareholder party by registered or certified mail or by publication as provided by law.
(4) The jurisdiction of the court in which the proceeding is commenced under subsection (2) is plenary and exclusive. If
it so elects, the court may appoint one or more persons as appraisers to receive evidence and recommend a decision on the question of fair value. The appraisers shall have the powers described in the order appointing them or in any amendment to the
order. The shareholders demanding appraisal rights are entitled to the same discovery rights as parties in other civil proceedings. There shall be no right to a jury trial.
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(5) Each shareholder made a party to the proceeding is entitled to judgment for
the amount of the fair value of such shareholders shares, plus interest, as found by the court.
(6) The corporation
shall pay each such shareholder the amount found to be due within 10 days after final determination of the proceedings. Upon payment of the judgment, the shareholder shall cease to have any interest in the shares.
History. s. 2, ch. 2004-378.
607.1331 Court costs and counsel fees.
(1) The court in an appraisal proceeding shall determine all costs of the proceeding, including the reasonable compensation
and expenses of appraisers appointed by the court. The court shall assess the costs against the corporation, except that the court may assess costs against all or some of the shareholders demanding appraisal, in amounts the court finds equitable, to
the extent the court finds such shareholders acted arbitrarily, vexatiously, or not in good faith with respect to the rights provided by this chapter.
(2) The court in an appraisal proceeding may also assess the fees and expenses of counsel and experts for the respective
parties, in amounts the court finds equitable:
(a) Against the corporation and in favor of any or all shareholders
demanding appraisal if the court finds the corporation did not substantially comply with ss. 607.1320 and 607.1322; or
(b) Against either the corporation or a shareholder demanding appraisal, in favor of any other party, if the court finds that
the party against whom the fees and expenses are assessed acted arbitrarily, vexatiously, or not in good faith with respect to the rights provided by this chapter.
(3) If the court in an appraisal proceeding finds that the services of counsel for any shareholder were of substantial benefit
to other shareholders similarly situated, and that the fees for those services should not be assessed against the corporation, the court may award to such counsel reasonable fees to be paid out of the amounts awarded the shareholders who were
benefited.
(4) To the extent the corporation fails to make a required payment pursuant to s. 607.1324, the shareholder
may sue directly for the amount owed and, to the extent successful, shall be entitled to recover from the corporation all costs and expenses of the suit, including counsel fees.
History. s. 30, ch. 2003-283; s. 98, ch. 2004-5.
607.1332 Disposition of acquired shares.
Shares acquired by a corporation pursuant to payment of the agreed value thereof or pursuant to payment of the judgment entered therefor, as
provided in this chapter, may be held and disposed of by such corporation as authorized but unissued shares of the corporation, except that, in the case of a merger or share exchange, they may be held and disposed of as the plan of merger or share
exchange otherwise provides. The shares of the surviving corporation into which the shares of such shareholders demanding appraisal rights would have been converted had they assented to the merger shall have the status of authorized but unissued
shares of the surviving corporation.
History. s. 31, ch. 2003-283.
607.1333 Limitation on corporate payment.
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(1) No payment shall be made to a shareholder seeking appraisal rights if, at the
time of payment, the corporation is unable to meet the distribution standards of s. 607.06401. In such event, the shareholder shall, at the shareholders option:
(a) Withdraw his or her notice of intent to assert appraisal rights, which shall in such event be deemed withdrawn with the
consent of the corporation; or
(b) Retain his or her status as a claimant against the corporation and, if it is
liquidated, be subordinated to the rights of creditors of the corporation, but have rights superior to the shareholders not asserting appraisal rights, and if it is not liquidated, retain his or her right to be paid for the shares, which right the
corporation shall be obliged to satisfy when the restrictions of this section do not apply.
(2) The shareholder shall
exercise the option under paragraph (1)(a) or paragraph (b) by written notice filed with the corporation within 30 days after the corporation has given written notice that the payment for shares cannot be made because of the restrictions
of this section. If the shareholder fails to exercise the option, the shareholder shall be deemed to have withdrawn his or her notice of intent to assert appraisal rights.
History. s. 32, ch. 2003-283.
C-9
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 20. Indemnification of Directors and Officers of Seacoast
The Florida Business Corporation Act, as amended, or the FBCA, permits, under certain circumstances, the
indemnification of officers, directors, employees and agents of a corporation with respect to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, to which such person was or is a
party or is threatened to be made a party, by reason of his or her being an officer, director, employee or agent of the corporation, or is or was serving at the request of, such corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, against liability incurred in connection with such proceeding, including appeals thereof;
provided, however,
that the officer, director, employee or agent acted in good faith
and in a manner that he or she reasonably believed to be in, or not opposed to, the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful. The
termination of any such third-party action by judgment, order, settlement, or conviction or upon a plea of
nolo contendere
or its equivalent does not, of itself, create a presumption that the person (i) did not act in good faith and in a
manner which he or she reasonably believed to be in, or not opposed to, the best interests of the corporation or (ii) with respect to any criminal action or proceeding, had reasonable cause to believe that his or her conduct was unlawful.
In the case of proceedings by or in the right of the corporation, the FBCA permits for indemnification of any person by reason
of the fact that such person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of, such corporation as a director, officer, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise, against liability incurred in connection with such proceeding, including appeals thereof;
provided, however
, that the officer, director, employee or agent acted in good faith and in a manner that he or she
reasonably believed to be in, or not opposed to, the best interests of the corporation, except that no indemnification is made where such person is adjudged liable, unless a court of competent jurisdiction determines that, despite the adjudication
of liability but in view of all circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which such court shall deem proper.
To the extent that such person is successful on the merits or otherwise in defending against any such proceeding, Florida law
provides that he or she shall be indemnified against expenses actually and reasonably incurred by him or her in connection therewith.
Our Bylaws contain indemnification provisions similar to the FBCA, and further provide that we may purchase and maintain
insurance on behalf of directors, officers, employees and agents in their capacities as such, or serving at the request of the corporation, against any liabilities asserted against such persons whether or not we would have the power to indemnify
such persons against such liability under our Bylaws.
Insofar as indemnification for liabilities arising under the
Securities Act of 1933, as amended, may be permitted to our directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that, in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.
Item 21. Exhibits and
Financial Statement Schedules.
(a)
List of Exhibits
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Certain exhibits and schedules to the Agreement and Plan of Merger have been omitted. Such exhibits and schedules are
described in the Agreement and Plan of Merger. Seacoast Banking Corporation of Florida hereby agrees to furnish to the Securities and Exchange Commission, upon its request, any or all of such omitted exhibits and schedules.
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Exhibit 3.1.1
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Amended and Restated articles of incorporation
(incorporated herein by reference from Exhibit 3.1 to Seacoasts Quarterly Report on Form 10-Q, filed May 10, 2006).
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Exhibit 3.1.2
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Articles of Amendment to the Amended
and Restated articles of incorporation (incorporated herein by reference from Exhibit 3.1 to Seacoasts Form 8-K, filed December 23, 2008).
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Exhibit 3.1.3
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Articles of Amendment to the Amended
and Restated articles of incorporation
(
incorporated herein by reference from Exhibit 3.4 to Seacoasts Form S-1, filed June 22, 2009).
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Exhibit 3.1.4
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Articles of Amendment to the Amended and
Restated articles of incorporation (incorporated herein by reference from Exhibit 3.1 to Seacoasts Form 8-K, filed July 20, 2009).
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Exhibit 3.1.5
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Articles of Amendment to the Amended and
Restated articles of incorporation (incorporated herein by reference from Exhibit 3.1 to Seacoasts Form 8-K, filed December 3, 2009).
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Exhibit 3.1.6
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Articles of Amendment to the Amended
and Restated articles of incorporation (incorporated herein by reference from Exhibit 3.1 to Seacoasts Form 8-K/A, filed July 14, 2010).
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Exhibit 3.1.7
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Articles of Amendment to the Amended and
Restated articles of incorporation (incorporated herein by reference from Exhibit 3.1 to Seacoasts Form 8-K, filed June 25, 2010).
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Exhibit 3.1.8
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Articles of Amendment to the Amended and
Restated articles of incorporation (incorporated herein by reference from Exhibit 3.1 to Seacoasts Form 8-K, filed June 1, 2011).
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Exhibit 3.1.9
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Articles of Amendment to the Amended
and Restated articles of incorporation (incorporated herein by reference from Exhibit 3.1 to Seacoasts Form 8-K, filed December 13, 2013).
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Exhibit 3.2
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Amended and Restated By-laws
of the Corporation (incorporated herein by reference from Exhibit 3.2 to Seacoasts Form 8-K, filed December 21, 2007).
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Exhibit 4.1
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Specimen Common Stock Certificate
(incorporated herein by reference from Exhibit 4.1 to Seacoasts Form 10-K, filed March, 17, 2014).
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Exhibit 5.1
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Legal Opinion of Alston
& Bird, LLP *
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Exhibit 8.1
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Tax Opinion of Alston
& Bird, LLP *
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Exhibit 8.2
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Tax Opinion of Bush Ross, P.A. *
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Exhibit 21.1
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Subsidiaries of the Registrant (incorporated
herein by reference from Exhibit 21 Seacoasts Form 10-K, filed March 16, 2017).
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Exhibit 23.1
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Consent of Alston
& Bird (included in Exhibit 5.1) *
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Exhibit 23.2
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Consent of Crowe Horwath LLP *
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Exhibit 24
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Power of Attorney *
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Exhibit 99.1
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Form of Proxy to be used at NorthStar Banking Corporation Special Shareholders Meeting
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Exhibit 99.2
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Consent of Sandler ONeill & Partners, L.P.
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(b)
Financial Statement Schedules
None. All other schedules for which provision is made in Regulation S-X of the Securities and Exchange Commission are not
required under the related restrictions or are inapplicable, and, therefore, have been omitted.
(c)
Opinion of Financial Advisors
Furnished as Appendix B to the proxy statement/prospectus, which forms a part of this Registration Statement on Form S-4.
Item 22. Undertakings.
The undersigned registrant hereby undertakes to file, during any period in which offers or sales are being made, a
post-effective amendment to this Registration Statement:
(i) To include any prospectus required by Section 10(a)(3)
of the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after the effective date of
the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any
increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in
the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20 percent change in the maximum aggregate offering price set forth in the Calculation of
Registration Fee table in the effective Registration Statement; and
(iii) To include any material information with
respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.
The undersigned registrant hereby undertakes that, for the purpose of determining any liability under the Securities Act of
1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial
bona fide
offering
thereof.
The undersigned registrant hereby undertakes to remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the termination of the offering.
The undersigned registrant
hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrants annual report pursuant to section 13(a) or section 15(d) of the Securities Exchange Act of 1934, as amended
(and, where applicable, each filing of an employee benefit plans annual report pursuant to section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial
bona fide
offering thereof.
The undersigned registrant hereby undertakes as follows: that prior to any public reoffering of the securities registered
hereunder through use of a prospectus which is a part of this registration statement, by any person or party who is deemed to be an underwriter within the meaning of Rule 145(c), the issuer undertakes that such reoffering prospectus will contain the
information called for by the applicable registration form with respect to reofferings by persons who may be deemed underwriters, in addition to the information called for by the other items of the applicable form.
II-3
The registrant undertakes that every prospectus (i) that is filed pursuant
to the immediately preceding paragraph, or (ii) that purports to meet the requirements of Section 10(a)(3) of the Act and is used in connection with an offering of securities subject to Rule 415, will be filed as a part of an
amendment to the registration statement and will not be used until such amendment is effective, and that, for purposes of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new
registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial
bona fide
offering thereof.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers
and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in
the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in
the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
The undersigned registrant hereby undertakes to respond to requests for information that is incorporated by reference into the
prospectus pursuant to Items 4, 10(b), 11 or 13 of this Form, within one business day of receipt of such request, and to send the incorporated documents by first class mail or other equally prompt means. This includes information contained in
documents filed subsequent to the effective date of the registration statement through the date of responding to the request.
The undersigned registrant hereby undertakes to supply by means of a post-effective amendment all information concerning a
transaction, and the company being acquired involved therein, that was not the subject of and included in the registration statement when it became effective.
II-4
SIGNATURES
Pursuant to the requirements of the Securities Act, the registrant has duly caused this registration statement to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of Stuart and State of Florida, on September 20, 2017.
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SEACOAST BANKING CORPORATION OF FLORIDA
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By:
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/
S
/ D
ENNIS
S. H
UDSON
, III
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Name: Dennis S. Hudson, III
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Title: Chief Executive Officer
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Pursuant to the requirements of the Securities Act of 1933, this registration statement
has been signed by the following persons in the capacities and on the dates indicated.
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Signature
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Title
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Date
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/
S
/ D
ENNIS
S. H
UDSON
,
III
Dennis S. Hudson, III
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Chairman of the Board of Directors, Chief Executive Officer and Director (principal executive officer)
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September 20, 2017
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/
S
/ C
HARLES
M. S
HAFFER
Charles M. Shaffer
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Executive Vice President and Chief Financial Officer (principal financial and accounting officer)
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September 20, 2017
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*
Dennis J. Arczynski
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Director
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September 20, 2017
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*
Stephen E. Bohner
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Director
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September 20, 2017
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Jacqueline L. Bradley
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Director
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September 20, 2017
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*
H. Gilbert Culbreth, Jr.
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Director
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September 20, 2017
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*
Julie H. Daum
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Director
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September 20, 2017
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*
Christopher E. Fogal
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Director
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September 20, 2017
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*
Maryann B. Goebel
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Director
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September 20, 2017
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*
Roger O. Goldman
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Director
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September 20, 2017
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Signature
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Title
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Date
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Dennis S. Hudson, Jr.
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Director
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September 20, 2017
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*
Timothy Huval
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Director
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September 20, 2017
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*
Herbert Lurie
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Director
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September 20, 2017
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*
Alvaro J. Monserrat
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Director
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September 20, 2017
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*
Thomas E. Rossin
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Director
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September 20, 2017
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*
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/s/ Dennis S. Hudson, III
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Dennis S. Hudson, III
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Attorney-in-Fact
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