JUNIOR SUBORDINATED NOTE SUBSCRIPTION AGREEMENT
Exhibit 10.27
JUNIOR SUBORDINATED NOTE SUBSCRIPTION AGREEMENT
THIS JUNIOR SUBORDINATED NOTE SUBSCRIPTION AGREEMENT, dated as of December 15, 2006 (this “Agreement”), between Valley Financial Corporation, a Virginia corporation (the “Company”), and Valley Financial Statutory Trust III, a statutory trust created under the laws of the State of Delaware (the “Trust”), relating to the Junior Subordinated Notes due 2037 (the “Notes”), issuable pursuant to an Indenture, dated the date hereof, between the Company and Wilmington Trust Company, as Trustee (the “Indenture”).
1. The Trust hereby offers to purchase from the Company, and the Company hereby accepts such offer and agrees to issue and sell to the Trust, on the date hereof, FIVE MILLION ONE HUNDRED FIFTY-FIVE THOUSAND AND 00/100 DOLLARS ($5,155,000) aggregate principal amount of Notes, in consideration of the payment on or before the date hereof of FIVE MILLION ONE HUNDRED FIFTY-FIVE THOUSAND AND 00/100 DOLLARS ($5,155,000) in immediately available funds.
2. The Company represents and warrants that the Notes have been duly authorized and executed by the Company, and, when duly authenticated and delivered to the Trust in accordance with the terms hereof and of the Indenture, will constitute the valid and binding obligations of the Company entitled to the benefits of the Indenture, enforceable against the Company in accordance with their terms, except to the extent that enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally or by general principles of equity (regardless of whether considered in a proceeding in equity or at law).
3. This Agreement and the rights and obligations of each of the parties hereto shall be construed and enforced in accordance with and governed by the laws of the State of New York without reference to its conflict of laws provisions (other than Section 5-1401 of the General Obligations Law).
4. ANY LEGAL ACTION OR PROCEEDING BY OR AGAINST ANY PARTY HERETO OR WITH RESPECT TO OR ARISING OUT OF THIS AGREEMENT MAY BE BROUGHT IN OR REMOVED TO THE COURTS OF THE STATE OF NEW YORK, IN AND FOR THE COUNTY OF NEW YORK, OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK (IN EACH CASE SITTING IN THE BOROUGH OF MANHATTAN). BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY ACCEPTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS (AND COURTS OF APPEALS THEREFROM) FOR LEGAL PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT.
5. This Agreement may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. Delivery of an executed signature page of this Agreement by facsimile transmission shall be effective as delivery of a manually executed counterpart hereof.
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VALLEY FINANCIAL CORPORATION | ||
By: | /s/ Xxxxx X. Xxxxxxxx | |
Xxxxx X. Xxxxxxxx | ||
President and Chief Executive Officer | ||
Valley Financial Statutory Trust III | ||
By: | /s/ Xxxxx X. Xxxxxxxx | |
Xxxxx X. Xxxxxxxx | ||
Administrative Trustee | ||
By: | /s/ Xxxxxxxx X. Xxxxxx | |
Xxxxxxxx X. Xxxxxx, CPA | ||
Administrative Trustee | ||
By: | /s/ J. Xxxxxxx Xxxxxxx | |
J. Xxxxxxx Xxxxxxx | ||
Administrative Trustee |