STOCK REPURCHASE AGREEMENT
XXXXXXX
0
XXXXX
XXXXXXXXXX AGREEMENT
THIS
STOCK REPURCHASE AGREEMENT (the "Agreement") dated as of July 12, 2006, is
by
and between National Penn Bancshares, Inc., a Pennsylvania business corporation
(“NPBC"), and the Estate of Xxxxx X. Xxxxxxxxxx (the "Estate").
WHEREAS,
the Estate currently owns and desires to sell 500,000 shares of NPBC's common
stock (the "Stock"); and
WHEREAS,
NPBC desires to purchase the Stock (a) as part of its buy-back program in order
to manage the shares of common stock it has in its Treasury for its various
stock-based compensation plans, its dividend reinvestment plan, and for
potential acquisitions; (b) because NPBC believes that an investment in NPBC
is
a prudent way to utilize cash currently available; and (c) in order to prevent
a
depressing impact of the sale of the Stock in the open market on NPBC's stock
price; and
WHEREAS,
the Estate desires to sell the Stock in order to increase its liquidity and
to
diversify its assets;
WHEREAS,
the Estate believes that a sale of the Stock directly to NPBC will result in
the
most cost-effective sale of the Stock;
WHEREAS,
based on the foregoing, the Estate desires to sell the Stock directly to NPBC,
and NPBC desires to purchase the Stock directly from the Estate, on the terms
and conditions set forth herein.
NOW,
THEREFORE, in consideration of the foregoing, in reliance upon the
representations and warranties contained herein, and subject to the conditions
contained herein, the parties hereto, intending to be legally bound hereby,
agree as follows:
ARTICLE
I
PURCHASE
AND SALE OF STOCK
Section
1.1. Purchase
and Sale of Common Stock.
Subject
to the terms and conditions set forth in this Agreement, the Estate hereby
agrees to sell, transfer, convey and assign to NPBC, and NPBC
hereby agrees to purchase from the Estate, the Stock at a cash purchase price
determined in accordance with Section 1.2 below.
Section
1.2. Purchase
Price.
NPBC
shall pay to the Estate for the Stock (as more fully set forth in Section 1.3
below), upon delivery by the Estate to NPBC of the Stock (whether electronically
through the DWAC system or by delivery of one or more certificates representing
the Stock), a per share price
equal to Nineteen Dollars and Ninety Cents ($19.90) (the closing sale price
of
NPBC stock as of the last business day preceding the date of execution of this
Agreement, as reported on The Nasdaq Stock Market, less ten cents per share).
The total price payable by NPBC for the Stock shall be Nine Million Nine Hundred
Fifty Thousand Dollars and No Cents ($9,950,000.00) (the "Purchase Price”).
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Section
1.3. Closing.
The
consummation of the purchase and sale contemplated by this Agreement shall
take
place at the offices of NPBC, Philadelphia and Reading Avenues, Xxxxxxxxx,
Xxxxxxxxxxxx 00000 at a date and time mutually agreeable to the Estate and
NPBC,
and in any event as soon as reasonably practical after all of the conditions
to
closing set forth in this Agreement shall be satisfied (the "Closing Date").
On
the Closing Date, the Estate shall deliver or cause to be delivered to NPBC
the
Stock, either electronically through the DWAC system or by one or more NPBC
stock certificates representing the Stock, duly endorsed for transfer or
accompanied by duly executed stock powers; and NPBC shall deliver to the Estate
the Purchase Price by direct deposit or wire transfer of various amounts equal
in total to the Purchase Price to one or more accounts designated in writing
by
the Estate to NPBC.
ARTICLE
II
REPRESENTATIONS
AND WARRANTIES
Section
2.1. Representations
of NPBC.
NPBC
hereby represents and warrants to the Estate as follows:
(a)
NPBC
is a
Pennsylvania business corporation validly subsisting under the laws of the
Commonwealth of Pennsylvania and has all requisite corporate power and authority
to enter into this Agreement and consummate the transactions contemplated
hereby.
(b)
Upon
execution of this Agreement by NPBC, this Agreement will have been duly executed
and delivered by NPBC, and will constitute a valid and binding obligation of
NPBC, enforceable against NPBC in accordance with its terms, subject to
applicable bankruptcy, reorganization, insolvency, moratorium or similar laws
effecting creditors' rights generally and general principles of equity.
(c)
No
authorization, consent or approval of (or filing with) any third person,
any
court, any public body or any authority is necessary (or, if necessary, it
has
already been obtained) for the consummation by NPBC of the transactions
contemplated by this Agreement.
(d)
The
execution, delivery and performance of this Agreement by NPBC will not
constitute a breach, violation or default (or an event which, with notice or
lapse of time or both, will constitute a default) under, or result in the
termination of, accelerate the performance required by, result in the right
of
termination or acceleration under, or result in a creation of any lien or
encumbrance upon any of the properties or assets of NPBC under, any note, bond,
mortgage, indenture, deed of trust, license, lease, agreement or other
instrument as to which NPBC is a party or by which its properties or assets
are
bound.
Section
2.2. Representations
of the Estate.
The
Estate hereby represents and warrants to NPBC as follows:
(a)
The
Estate has the power and authority to enter into this Agreement and to
consummate
the transactions contemplated hereby.
(b)
The
Estate has good and valid title to the Stock free and clear of any
lien,
pledge, security interest or other encumbrance whatsoever, except for those
liens and encumbrances identified on Exhibit A attached hereto and made a part
hereof.
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(c)
Upon
execution of this Agreement by the Estate, this Agreement will have been
duly
and validly executed and delivered by the Estate, and will constitute a valid
and binding obligation of the Estate, enforceable against the Estate in
accordance with its terms, subject to applicable bankruptcy, reorganization,
insolvency, moratorium or similar laws effecting creditors' rights generally
and
general principles of equity.
(d)
No
authorization, consent or approval of (or filing with) any third person,
any
court, any public body or any authority is necessary (or, if necessary, it
has
already been obtained) for the consummation by the Estate of the transactions
contemplated by this Agreement.
(e) The
execution, delivery and performance of this Agreement by the Estate will not
constitute a breach, violation or default (or an event which, with notice or
lapse of time or both, will constitute a default) under, or result in the
termination of, accelerate the performance required by, result in the right
of
termination or acceleration under, or result in a creation of any lien or
encumbrance upon any of the properties or assets of the Estate under, any note,
bond, mortgage, indenture, deed of trust, license, lease, agreement or other
instrument as to which the Estate is a party or by which its properties or
assets are bound.
Section
2.3. Representations
of Executrix of the Estate.
The
Executrix of the Estate hereby represents and warrants to NPBC as follows:
(a)
The
Executrix, on behalf of the Estate, has the power and authority to enter
into this Agreement and to consummate the transactions contemplated hereby.
(b)
The
Executrix has such knowledge, experience and sophistication
in financial and business matters as to be able to enter into the transactions
contemplated by this Agreement without the assistance of an investor
representative.
(c)
The
Executrix has entered into this Agreement, and the transactions contemplated
by
this Agreement, freely and without any pressure from NPBC to sell the Stock
to
NPBC.
(d) The
Executrix has been advised by NPBC that it is entering into this Agreement
pursuant to a Pre-Determined Stock Repurchase Plan adopted by NPBC pursuant
to
Securities and Exchange Commission Rule 10b5-1, and that as of the date of
execution of this agreement, NPBC has not yet publicly released its financial
results for the quarter ended June 30, 2006.
ARTICLE
III
MISCELLANEOUS
Section
3.1. Governing
Law.
This
Agreement shall be construed under and governed by the laws of the Commonwealth
of Pennsylvania.
Section
3.2. Further
Instruments and Actions.
Each
party agrees to deliver any further instruments and to take any further actions
that may be responsibly and reasonably requested by the other, or counsel to
the
other, in order to carry out the provisions and purposes of this Agreement.
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Section
3.3. Entire
Agreement. This
Agreement constitutes the entire agreement between the parties with respect
to
the sale and transfer of the Stock, and there are no agreements, conditions
or
understandings, either oral or written, between NPBC and the Estate relating
to
these matters other than those contained in this Agreement. This Agreement
may
be altered or amended only by a written agreement signed by both NPBC and the
Estate.
Section
3.4. Counterparts.
This
Agreement may be executed in one or more counterparts, each of which shall
be
deemed an original, but all of which together shall constitute one and the
same
agreement.
IN
WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year
first above written.
Attest: | NATIONAL PENN BANCSHARES, INC. |
/s/:
Xxxxxx X. Xxxxx
|
By:
/s/
Xxxxx X. Xxxxxxx
|
Xxxxxx
X. Xxxxx,
|
Xxxxx
X. Xxxxxxx, Chairman and
|
Secretary
|
Chief
Executive Officer
|
THE ESTATE OF XXXXX X. XXXXXXXXXX | |
Witness:
/s/
Xxxxxxxx Xxxxxxxx
|
By:
/s/
Xxxxxxxxx X. Xxxxx, Executrix
|
Xxxxxxxxx
X. Xxxxx, Executrix
|
|
Witness:
/s/
Xxxxxxxx Xxxxxxxx
|
Xxxxxxxxx
X. Xxxxx
|
Xxxxxxxxx
X. Xxxxx,
|
|
Individually
(with respect to
|
|
Section
2.3 Only)
|
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EXHIBIT
A
LIENS
AND ENCUMBRANCES
Secured Party |
Number
of NPBC Shares
|
New
Century Bank
|
(Two
Hundred Sixty-Six Thousand,
|
Eight
Hundred Seventy-Eight Shares)
|
|
266,878
|
|
Wachovia
Bank, N.A.
|
(Two
Hundred Thirty-Three Thousand,
|
One
Hundred Twenty-Two Shares)
|
|
233,122
|
All
shares are to be delivered free and clear of all liens and
encumbrances.
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