As filed with the Securities and Exchange Commission
on August 31, 2023
Registration No. 333-
____________________________________________________________________________________________
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________
FORM S-8
REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933
_______________________________
Customers Bancorp, Inc.
(Exact Name of Registrant as Specified in Its Charter)
_______________________________
Pennsylvania
(State or other jurisdiction
of incorporation or organization) |
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27-2290659
(I.R.S. Employer
Identification No.) |
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701 Reading Avenue
West Reading, PA
(Address of Principal Executive Offices) |
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19611
(Zip code) |
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Restricted Stock Unit
Inducement Awards
(Full Title of the Plan) |
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Jay S. Sidhu
Chairman and Chief Executive Officer
Customers Bancorp, Inc.
701 Reading Avenue
West Reading, PA 19611
(610) 933-2000
(Name, address, including zip code, and telephone number, including area code, of agent for service) |
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_______________________________
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Copies to: |
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Thomas L. Hanley, Esq.
Stradley Ronon Stevens & Young, LLP
2005 Market Street, Suite 2600
Philadelphia, PA 19103-7018
(215) 564-8000 |
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Indicate by check mark whether the Registrant
is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.
See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and
“emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer |
☒ |
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Accelerated filer |
☐ |
Non-accelerated filer |
☐ |
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Smaller reporting company |
☐ |
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Emerging growth company
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☐ |
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. ☐
____________________________________________________________________________________________
EXPLANATORY NOTE
This Registration Statement on Form S-8 (this
“Registration Statement”) is being filed by Customers Bancorp, Inc. (the “Registrant”), relating to an
aggregate of 22,300 shares of the Company’s Voting Common Stock, par value $1.00 per share (the “Shares”) that are
issuable pursuant to restricted stock unit award agreements between the Company and twenty-six employees, providing for employee
inducement grants. The restricted stock units will vest in three equal installments on July 10, 2024, July 10, 2025 and July 10, 2026. The awards are being made outside of the Customers Bancorp, Inc. 2019 Stock
Incentive Plan (as amended) pursuant to the exception for inducement awards under Rule 303A(8) of the NYSE Listed Company Manual.
The awards were approved by the Registrant’s Board of Directors, including all of the independent directors present at the
meeting at which such awards were approved, comprising a majority of the independent directors.
PART I
INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS
Information required by Part I of this Registration
Statement to be contained in the Section 10(a) prospectus is omitted from this Registration Statement in accordance with Rule 428(b)(1)
under the Securities Act of 1933, as amended, and the introductory note to Part I of Form S-8. The documents containing the information
specified in Part I have been or will be delivered to the recipients of the awards specified in the Award Agreements as required by Rule
428(b).
PART II
INFORMATION REQUIRED IN THE REGISTRATION STATEMENT
Item
3. |
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Incorporation of Documents by Reference. |
The Registrant hereby incorporates by reference the
documents listed below that the Registrant has previously filed with the Securities and Exchange Commission (the “SEC”) (other
than, in each case, documents or information deemed to have been furnished and not filed in accordance with applicable SEC rules):
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The Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on February 28, 2023; |
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The Registrant’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2023, filed with the SEC on May 9, 2023; |
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The Registrant’s
Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2023, filed with the SEC on August 9, 2023; |
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The Registrant’s Current Reports on Form 8-K filed with the SEC on June 1, 2023 and June 16, 2023; |
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The portions of the Registrant’s definitive Proxy Statement filed with the SEC on April 19, 2023 that are incorporated by reference in Part III of the Registrant’s Annual Report on Form 10-K referred to above; and |
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The description of the Registrant’s Voting Common Stock set forth in Exhibit 4.6 to the Registrant’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on February 28, 2023. |
The Registrant also incorporates by reference all other
documents subsequently filed by the Registrant with the SEC pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Securities Exchange
Act of 1934, as amended (other than, in each case, information deemed to have been furnished and not filed in accordance with applicable
SEC rules), after the date of this Registration Statement but prior to the filing of a post-effective amendment to this Registration Statement
which indicates that all securities offered hereby have been sold or which deregisters all securities then remaining unsold. Such documents
shall be deemed to be incorporated by reference in this Registration Statement and to be a part hereof from the date of filing of such
documents.
Any statement contained in a document incorporated
or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of this Registration Statement
to the extent that a statement contained herein or in any subsequently filed document which is also deemed to be incorporated by reference
herein modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed, except as so modified
or superseded, to constitute a part of this Registration Statement.
Item 6. |
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Indemnification of Directors and Officers. |
Section 1713 of Subchapter B of Chapter 17 of the Pennsylvania
Business Corporation Law (“PBCL”) permits a Pennsylvania corporation to limit the personal liability of its directors for
monetary damages, subject to certain limitations and conditions. Sections 1741 through 1750 of Subchapter D, Chapter 17, of the PBCL contain
provisions for mandatory and discretionary indemnification of a corporation’s directors, officers and other personnel, and related
matters.
Article Eight of the Registrant’s bylaws limits
the personal liability of directors for monetary damages and provides for indemnification of officers and directors, as described below.
These provisions may not be amended to increase the directors’ exposure to liability or to decrease the indemnification to directors,
officers or others except by the affirmative vote of two-thirds of the entire board of directors or 80% of the votes which all shareholders
are entitled to cast.
Under Section 1713 of the PBCL, if a bylaw adopted
by the shareholders so provides, a director shall not be personally liable, as such, for monetary damages for any action taken unless
(i) the director has breached or failed to perform the duties of his or her office as provided in the applicable subchapter of the PBCL
and (ii) such breach or failure to perform constitutes self-dealing, willful misconduct or recklessness. The bylaw cannot eliminate the
personal liability of directors for any responsibility or liability of a director under a criminal statute or liability for the payment
of taxes pursuant to Federal, State or local law.
Section 8.01 of the Registrant’s bylaws provides
that, to the fullest extent permitted under Subchapter B of Chapter 17 of the PBCL, directors shall not be personally liable to the corporation
or its shareholders or others for monetary damages for any action taken or any failure to take any action. Consistent with the limitations
provided in Section 1713 of the PBCL, this bylaw provision does not apply if the director has breached or failed to perform the duties
of his or her office and such breach or failure constitutes self-dealing, willful misconduct or recklessness, and also does not apply
to the responsibility or liability of a director under any criminal statute or with respect to the payment of taxes pursuant to local,
state or federal law.
Under Section 1741 of the PBCL, subject to certain
limitations, a corporation has the power to indemnify directors and officers under certain prescribed circumstances against expenses (including
attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred in connection with an action
or proceeding, whether civil, criminal, administrative or investigative (other than derivative or corporate actions), to which any such
officer or director is a party or is threatened to be made a party by reason of such officer or director being a representative of the
corporation or serving at the request of the corporation as a representative of another domestic or foreign corporation for profit or
not-for-profit, partnership, joint venture, trust or other enterprise, so long as the director or officer acted in good faith and in a
manner reasonably believed to be in, or not opposed to, the best interests of the corporation and, with respect to any criminal proceeding,
such officer or director had no reasonable cause to believe his or her conduct was unlawful.
Section 1742 of the PBCL permits indemnification in
derivative and corporate actions if the director or officer acted in good faith and in a manner reasonably believed to be in, or not opposed
to, the best interests of the corporation, except in respect of any claim, issue or matter as to which the officer or director has been
adjudged to be liable to the corporation unless and only to the extent that the proper court determines upon application that, despite
the adjudication of liability but in view of all the circumstances of the case, the officer or director is fairly and reasonably entitled
to indemnity for the expenses that the court deems proper.
Under Section 1743 of the PBCL, indemnification is
mandatory to the extent that the officer or director has been successful on the merits or otherwise in defense of any action or proceeding
referred to in Section 1741 or 1742 of the PBCL.
Section 1744 of the PBCL provides that, unless ordered
by a court, any indemnification under Section 1741 or 1742 of the PBCL shall be made by the corporation only as authorized in the specific
case upon a determination that the officer or director met the applicable standard of conduct, and such determination must be made (i)
by the board of directors by a majority vote of a quorum of directors not parties to the action or proceeding, (ii) if a quorum is not
obtainable, or if obtainable and a majority vote of a quorum of disinterested directors so directs, by independent legal counsel in a
written opinion, or (iii) by the shareholders.
Section 1745 of the PBCL provides that expenses (including
attorneys’ fees) incurred by a director or officer in defending any action or proceeding referred to in Subchapter D of Chapter
17 of the PBCL may be paid by the corporation in advance of the final disposition of such action or proceeding upon receipt of an undertaking
by or on behalf of such person to repay such amount if it shall ultimately be determined that he or she is not entitled to be indemnified
by the corporation. Except as otherwise provided in the corporation’s bylaws, advancement of expenses must be authorized by the
board of directors.
Section 1746 of the PBCL provides generally that the
indemnification and advancement of expenses provided by Subchapter D of Chapter 17 of the PBCL shall not be deemed exclusive of any other
rights to which an officer or director seeking indemnification or advancement of expenses may be entitled under any bylaw, agreement,
vote of shareholders or disinterested directors or otherwise, both as to action in the officer or director’s official capacity and
as to action in another capacity while holding that office. In no event may indemnification be made in any case where the act or failure
to act giving rise to the claim for indemnification is determined by a court to have constituted willful misconduct or recklessness.
Section 1747 of the PBCL grants a corporation the power
to purchase and maintain insurance on behalf of any director or officer against any liability asserted against the officer or director
or incurred by the officer or director in his or her capacity as officer or director, whether or not the corporation would have the power
to indemnify the officer or director against that liability under Subchapter D of Chapter 17 of the PBCL.
Sections 1748 and 1749 of the PBCL extend the indemnification
and advancement of expenses provisions contained in Subchapter D of Chapter 17 of the PBCL to successor corporations in fundamental changes
and to officers and directors serving as fiduciaries of employee benefit plans.
Section 1750 of the PBCL provides that the indemnification
and advancement of expenses provided by, or granted pursuant to, Subchapter D of Chapter 17 of the PBCL shall, unless otherwise provided
when authorized or ratified, continue as to a person who has ceased to be a director or officer and shall inure to the benefit of the
heirs and personal representatives of such person.
Section 8.02 of the Registrant’s bylaws requires
the Registrant to indemnify each of the Registrant’s directors and officers in such capacity in which any such director or officer
acts for or on behalf of the Registrant, including as an employee or agent. Section 8.02(a) requires the Registrant to indemnify any person
who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether
civil, criminal, administrative or investigative by reason of the fact such person was a director or officer of the Registrant or its
subsidiaries, or any other direct or indirect subsidiary of the corporation, or is or was serving at the request of the Registrant as
a director or officer of another corporation or entity, against expenses (including attorney’s fees), judgments, fines and amounts
paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding, to the fullest
extent authorized or permitted by the laws of the Commonwealth of Pennsylvania. Section 8.02(b) requires the Registrant to pay the expenses
(including attorney’s fees) incurred in defending a civil or criminal action, suit or proceeding in advance of the final disposition
of any action, suit or proceeding upon the receipt of (i) an undertaking by or on behalf of the director or officer to repay such amount
if it is ultimately determined that he or she is not entitled to be indemnified as authorized under the bylaws and (ii) if requested at
the discretion of the board of directors, adequate security or a bond to cover such amounts for which it is ultimately determined that
he or she is not entitled to such indemnity. Section 8.02(c) provides that the right to indemnification and advancement of expenses is
not exclusive of any other right to which such persons seeking indemnification and advancement of expenses may be entitled under any agreement,
vote of shareholders or disinterested directors, or otherwise. Section 8.02(d) provides that the Registrant may purchase and maintain
insurance on behalf of any person, may enter into contracts of indemnification with any person and may create a fund of any nature for
the benefit of any person and may otherwise secure in any manner our obligations with respect to indemnification and advancement of expenses
regardless of the source of the indemnification right and without respect to whether or not the Registrant would have the power to indemnify
such person under the bylaws.
The foregoing is only a summary of certain aspects
of Pennsylvania law and the Registrant's bylaws relating to limitation of liability and indemnification of directors and officers, and
does not purport to be complete. It is qualified in its entirety by reference to the detailed provisions of Sections 1713 and Sections
1741 through 1750 of the PBCL and the Registrant's bylaws.
As permitted by the PBCL, the Registrant maintains
directors’ and officers’ liability insurance in amounts and on terms which the Registrant’s board of directors deems
reasonable. In the ordinary course of business, the Registrant’s board of directors regularly reviews the scope and adequacy of
such insurance coverage.
Any underwriting agreement or distribution agreement
that the Registrant enters into with any underwriters or agents involved in the offering or sale of any securities registered hereby may
require such underwriters or dealers to indemnify the Registrant, some or all of its directors and officers and its controlling persons,
if any, for specified liabilities, which may include liabilities under the Securities Act, as amended.
Insofar as indemnification for liabilities arising
under the Securities Act may be permitted to directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise,
the Registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities
Act and is, therefore, unenforceable.
The following exhibits are filed
herewith or are incorporated herein by reference to other filings made by the Registrant with the SEC.
Exhibit Number |
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Description |
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4.1 |
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Amended and Restated Articles of Incorporation of Customers Bancorp, Inc., incorporated by reference to Exhibit 3.1 to the Registrant’s Form 8-K filed with the SEC on April 30, 2012. |
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4.2 |
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Amended and Restated Bylaws of Customers Bancorp, Inc., incorporated by reference to Exhibit 3.2 to the Registrant’s Form 8-K filed with the SEC on April 30, 2012. |
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4.3 |
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Articles of Amendment to the Amended and Restated Articles of Incorporation of Customers Bancorp, Inc., incorporated by reference to Exhibit 3.1 to the Registrant’s Form 8-K filed with the SEC on July 2, 2012. |
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4.4 |
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Articles of Amendment to the Amended and Restated Articles of Incorporation of Customers Bancorp, Inc., incorporated by reference to Exhibit 3.1 to the Registrant’s Form 8-K filed with the SEC on June 3, 2019. |
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4.5 |
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Amendment to Amended and Restated Bylaws of Customers Bancorp, Inc., incorporated by reference to Exhibit 3.1 to the Registrant’s Form 8-K filed with the SEC on June 19, 2019. |
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4.6 |
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Form of Award Agreement. |
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(a) The undersigned
Registrant hereby undertakes:
(1) To
file, during any period in which offers or sales are being made, a post-effective amendment to the Registration Statement:
(i) To
include any prospectus required by Section 10(a)(3) of the Securities Act;
(ii) To
reflect in the prospectus any facts or events arising after the effective date of the Registration Statement (or 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 SEC pursuant to Rule 424(b) if, in the aggregate, the changes in volume and
price represent no more than a 20% 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;
provided, however, that paragraphs
(a)(1)(i) and (a)(1)(ii) do not apply if the information required to be included in a post-effective amendment by those paragraphs is
contained in reports filed with or furnished to the SEC by the Registrant pursuant to Section 13 or Section 15(d) of the Exchange Act
that are incorporated by reference in the Registration Statement.
(2) That,
for the purpose of determining any liability under the Securities Act, 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.
(3) 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.
(b) The undersigned
Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, each filing of the Registrant’s
annual report pursuant to Section 13(a) or Section 15(d) of the Exchange Act (and, where applicable, each filing of an employee benefit
plan’s annual report pursuant to Section 15(d) of the Exchange Act) that is incorporated by reference in the Registration Statement
shall be deemed to be a new Registration Statement relating to the securities offered herein, and the offering of such securities at that
time shall be deemed to be the initial bona fide offering thereof.
(c) Insofar
as indemnification for liabilities arising under the Securities Act 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 SEC such
indemnification is against public policy as expressed in the Securities 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 Securities Act and will be governed by the final adjudication of such issue.
SIGNATURES
Pursuant to the requirements of the Securities Act
of 1933, as amended, the Registrant certifies that it has reasonable grounds to believe that it meets all the requirements for filing
on Form S-8 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized,
in the Borough of West Reading, Commonwealth of Pennsylvania, on August 31, 2023.
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Customers Bancorp, Inc. |
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By: |
/s/ Jay S. Sidhu |
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Jay S. Sidhu
Chairman and Chief Executive Officer |
POWER OF ATTORNEY
By so signing, each of the undersigned, in his or her
capacity as a director or officer, or both, as the case may be, of Customers Bancorp, Inc., does hereby appoint Jay S. Sidhu, Carla A.
Leibold and Andrew B. Sachs, and each of them severally, his or her true and lawful attorney-in-fact and agent, with full power of substitution
and resubstitution, to execute in his or her, place and stead, in his or her capacity as a director or officer, or both, as the case may
be, of Customers Bancorp, Inc., any and all amendments to this Registration Statement and post-effective amendments thereto and all instruments
necessary or incidental in connection therewith, and to file the same with the Securities and Exchange Commission. Each of said attorneys-in-fact
and agents shall have full power and authority to do and perform in the name and on behalf of each of the undersigned, in any and all
capacities, every act whatsoever requisite or necessary to be done in the premises as fully, and for all intents and purposes, as each
of the undersigned might or could do in person, the undersigned hereby ratifying and approving the acts of said attorneys-in-fact and
each of them and their substitutes lawfully done or caused to be done by virtue of this power of attorney.
Pursuant to the requirements of
the Securities Act of 1933, this Registration Statement has been signed below by the following persons in the capacities and on the dates
indicated.
/s/ Jay S. Sidhu |
Chairman, Chief Executive Officer and Director (Principal Executive Officer) |
August 31, 2023 |
Jay S. Sidhu
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/s/ Carla A. Leibold |
Executive Vice President – Chief Financial Officer (Principal Financial Officer) |
August 31, 2023 |
Carla A. Leibold
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/s/ Jessie John D. Velasquez |
Executive Vice President - Chief Accounting Officer (Principal Accounting Officer) |
August 31, 2023 |
Jessie John D. Velasquez
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/s/ Andrea R. Allon |
Director |
August 31, 2023 |
Andrea R. Allon
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/s/ Bernard B. Banks |
Director |
August 31, 2023 |
Bernard B. Banks
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/s/ Robert J. Buford |
Director |
August 31, 2023 |
Robert J. Buford
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/s/ Rajeev V. Date |
Director |
August 31, 2023 |
Rajeev V. Date
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/s/ Robert N. Mackay |
Director |
August 31, 2023 |
Robert N. Mackay
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/s/ Daniel K. Rothermel |
Director |
August 31, 2023 |
Daniel K. Rothermel
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/s/ T. Lawrence Way |
Director |
August 31, 2023 |
T. Lawrence Way
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/s/ Steven J. Zuckerman |
Director |
August 31, 2023 |
Steven J. Zuckerman |
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Exhibit 4.6
RESTRICTED
STOCK UNIT AWARD AGREEMENT
CUSTOMERS
BANCORP, INC. (the "Company") is pleased to award you Restricted Stock Units. This Restricted Stock Unit Award Agreement
(the “Agreement”) is made as of ______________ by and between Customers Bancorp, Inc. and ______________ (the “Grantee”).
WHEREAS, the Grantee is being recruited as a valued member of the Venture Banking Team of the Company or one of its subsidiaries; and
WHEREAS, the grant of the Restricted Stock Units is being made outside of the Customers Bancorp, Inc. 2019 Stock Incentive Plan; and
WHEREAS, the grant
of the Restricted Stock Units is being made in reliance on the inducement award exemption from the shareholder approval requirements under
Section 303A.08 of the New York Stock Exchange Listed Company Manual.
Pursuant to the actions
of a majority of the independent members of the Company’s Board of Directors, the Company wishes to conditionally transfer rights
to receive Restricted Stock Units of common stock, of the Company, to the Grantee pursuant to the terms and conditions set forth herein,
including the “Standard Terms and Conditions” attached hereto and made a part hereof.
NOW, THEREFORE, the Company and the Grantee, intending to be legally bound, hereby agree as follows:
1.Subject
to and as soon as practicable following the satisfaction of the vesting conditions set forth in Paragraph 2 below, and subject to your
acceptance of this agreement, the Company hereby awards the Grantee _________ Restricted Stock Units of the Company’s common stock
(“Award Shares”).
2.(a) Subject
to Paragraph 2(b) and (c) below, the Grantee shall be entitled to receive the Award Shares that shall be the earlier of (i) the vesting
schedule as outlined below or (ii) the date of the Grantee’s death, or (iii) a “Change in Control” as defined below:
Quantity |
Vest Date |
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July
10, 2024 |
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July
10, 2025 |
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July
10, 2026 |
(b) Unless otherwise determined by a majority of the
independent members of the Company’s Board of Directors, the vesting of Restricted Stock Units will be suspended during the period
of any approved leave of absence in which the Grantee has a right to reinstatement. Upon the Grantee’s return to employment, vesting
will resume.
(c) If the Grantee’s employment or service with
the Company is terminated for any reason other than death prior to the vesting schedule, this Agreement shall automatically terminate,
the Grantee shall forfeit all unvested Restricted Stock Units and rights hereunder, and no Restricted Stock Units or other consideration
shall be transferred to Grantee pursuant to this Agreement.
(d) For purposes of Paragraph 2(a), a “Change
in Control” is defined as means: (i) the consummation of a merger or consolidation of the Company with or into another entity or
any other corporate reorganization (however effected, including by general offer or court-sanctioned compromise, arrangement or otherwise)
if more than 50% of the combined voting power of the continuing or surviving entity’s issued shares or securities outstanding immediately
after such merger, consolidation or other reorganization is owned by persons who were not shareholders of the Company immediately prior
to such merger, consolidation or other reorganization; (ii) the sale, transfer or other disposition of all or substantially all of the
Company’s assets; (iii) individuals who constitute the Board (the “Incumbent Directors”) cease for any reason, including,
without limitation, as a result of a tender offer, proxy contest, merger or similar transaction, to constitute at least a majority of
the Board; provided, however, that any individual shall be considered an Incumbent Director if such person’s election or nomination
for election was approved by a vote of at least a majority of the Incumbent Directors; but, provided further that any such person whose
initial assumption of office is in connection with an actual or threatened solicitation of proxies or consents by or on behalf of a person
other than the Board, including by reason of agreement intended to avoid or settle any such actual or threatened contest or solicitation,
shall not be considered an Incumbent Director; (iv) any transaction as a result of which any person becomes the “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing at least 50% of the
total voting power represented by the Company’s then outstanding voting securities (e.g., issued shares); or (v) the completion
of a liquidation or dissolution of the Company. For purposes of this subparagraph (d), the term “person” shall have the same
meaning as when used in sections 13(d) and 14(d) of the Exchange Act but shall exclude (X) a trustee or other fiduciary holding securities
under an employee benefit plan of the Company or of any Subsidiary, and (Y) a company owned directly or indirectly by the shareholders
of the Company in substantially the same proportions as their ownership of the shares of Stock of the Company
3. Unless
the Grantee and the Company make other arrangements satisfactory to the Company with respect to the payment of withholding taxes, no Award
Shares shall be transferred to the Grantee pursuant to Paragraph 2(a), above until the grantee has satisfied all tax obligations regarding
the vesting thereof.
4.
Nothing in this Agreement shall confer upon Grantee any right to continue in the employment of the Company, or shall interfere with or
restrict in any way the rights of such person to terminate Grantee’s employment at any time, subject to the terms of any employment
agreement by and between the Company and Grantee.
5.
This Agreement shall be governed by the substantive law of the Commonwealth of Pennsylvania, without giving effect to the choice of law
principles thereof.
6.This
Agreement is subject to the Terms and Conditions attached hereto and the Grantee hereby acknowledges receipt of a copy thereof. Except
as otherwise stated, all terms used herein and not defined herein shall have the meanings set forth in the Terms and Conditions.
The Company has executed this Agreement with intent to be legally bound hereby, as of the first date set forth above.
The undersigned hereby
accepts the foregoing Restricted Stock Units and the terms and conditions hereof.
CUSTOMERS BANCORP, INC.
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Grantee:
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Customers Bancorp, Inc.
2023 Inducement Awards
Standard Terms and Conditions (“Standard
Terms”)
Applicable to all Inducement Awards
1.Purpose.
The Grantee is being recruited as a valued member of the Venture Banking Team of Customers Bancorp, Inc. (the “Company”) or
one of its Subsidiaries and in connection therewith is being awarded Restricted Stock Units pursuant to an Award Agreement. The award
is being made outside of the Customers Bancorp, Inc. 2019 Stock Incentive Plan in reliance on the inducement award exemption from the
shareholder approval requirements under Section 303A.08 of the New York Stock Exchange Listed Company Manual.
2.Definitions.
For purposes of the Standard Terms, the following terms shall be defined as set forth below:
“Affiliate” means, with respect to a Person,
any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control
with, such Person.
“Award” means any Restricted Stock Unit
awarded pursuant to an Award Agreement.
“Award Agreement” means an RSU Agreement
or any other agreement governing the grant or award of any Restricted Stock Unit.
“Board” means the Board of Directors of
the Company.
“Cause” means, with respect to a Grantee
and in the absence of an Award Agreement otherwise defining Cause, (1) the Grantee’s plea of nolo contendere to, conviction of or
indictment for, any crime (whether or not involving the Company or its Affiliates) (i) constituting a felony or (ii) that has, or could
reasonably be expected to result in, an adverse impact on the performance of the Grantee’s duties to the Service Recipient, or otherwise
has, or could reasonably be expected to result in, an adverse impact on the business or reputation of the Company or its Affiliates, (2)
conduct of the Grantee, in connection with his or her employment or service, that has resulted, or could reasonably be expected to result,
in material injury to the business or reputation of the Company or its Affiliates, (3) any material violation of the policies of the Service
Recipient, including, but not limited to, those relating to sexual harassment or the disclosure or misuse of confidential information,
or those set forth in the manuals or statements of policy of the Service Recipient; (4) the Grantee’s act(s) of gross negligence
or willful misconduct in the course of his or her employment or service with the Service Recipient; (5) misappropriation by the Grantee
of any assets or business opportunities of the Company or its Affiliates; (6) embezzlement or fraud committed by the Grantee, at the Grantee’s
direction, or with the Grantee’s prior actual knowledge; or (7) willful neglect in the performance of the Grantee’s duties
for the Service Recipient or willful or repeated failure or refusal to perform such duties. If, subsequent to the Termination of a Grantee
for any reason other than by the Service Recipient for Cause, it is discovered that the Grantee’s employment or service could have
been terminated for Cause, such Grantee’s employment or service shall, at the discretion of the Committee, be deemed to have been
terminated by the Service Recipient for Cause for all purposes under the Plan, and the Grantee shall be required to repay to the Company
all amounts received by him or her in respect of any Award following such Termination that would have been forfeited under the Plan had
such Termination been by the Service Recipient for Cause. In the event that there is an Award Agreement defining Cause, “Cause”
shall have the meaning provided in such agreement, and a Termination by the Service Recipient for Cause hereunder shall not be deemed
to have occurred unless all applicable notice and cure periods in such Award Agreement are complied with.
“Change in Control” means: (1) the consummation
of a merger or consolidation of the Company with or into another entity or any other corporate reorganization (however effected, including
by general offer or court-sanctioned compromise, arrangement or otherwise) if more than 50% of the combined voting power of the continuing
or surviving entity’s issued shares or securities outstanding immediately after such merger, consolidation or other reorganization
is owned by persons who were not shareholders of the Company immediately prior to such merger, consolidation or other reorganization;
(2)the sale, transfer or other disposition of all or substantially all of the Company’s assets; (3) individuals who constitute the
Board (the “Incumbent Directors”) cease for any reason, including, without limitation, as a result of a tender offer, proxy
contest, merger or similar transaction, to constitute at least a majority of the Board; provided, however, that any individual shall be
considered an Incumbent Director if such person’s election or nomination for election was approved by a vote of at least a majority
of the Incumbent Directors; but, provided further that any such person whose initial assumption of office is in connection with an actual
or threatened solicitation of proxies or consents by or on behalf of a person other than the Board, including by reason of agreement intended
to avoid or settle any such actual or threatened contest or solicitation, shall not be considered an Incumbent Director; (4) any transaction
as a result of which any person becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly
or indirectly, of securities of the Company representing at least 50% of the total voting power represented by the Company’s then
outstanding voting securities (e.g., issued shares). For purposes of this subsection (d), the term “person” shall have the
same meaning as when used in sections 13(d) and 14(d) of the Exchange Act but shall exclude (i) a trustee or other fiduciary holding securities
under an employee benefit plan of the Company or of any Subsidiary, and (ii) a company owned directly or indirectly by the shareholders
of the Company in substantially the same proportions as their ownership of the shares of Stock of the Company; or (5) the completion of
a liquidation or dissolution of the Company.
Notwithstanding the foregoing, in the case of an Award that constitutes
deferred compensation subject to section 409A of the Code, no “Change in Control” shall be deemed to have occurred as a result
of any event unless that event has resulted in a “change in the ownership or effective control” of the Company or “in
the ownership of a substantial portion of the assets” of the Company within the meaning of section 409A(a)(2)(A)(v) of the Code
and the regulations and guidance issued thereunder. The Committee shall have full and final authority, which shall be exercised in its
sole discretion, to determine conclusively whether a Change in Control has occurred pursuant to the above definition, the date of such
Change in Control and any incidental matters relating thereto; provided that any exercise of authority in conjunction with a determination
of whether a Change in Control is a “change in control event” as defined in U.S. Treasury Regulation Section 1.409A-3(i)(5)
shall be consistent with such regulation.
“Code” means the U.S. Internal Revenue
Code of 1986, as amended from time to time, including the rules and regulations thereunder and any successor provisions, rules and regulations
thereto.
“Committee” means the Board or such other
committee consisting of two or more individuals appointed by the Board to administer the Awards and each other individual or committee
of individuals designated to exercise authority under the Award Agreement and the Terms and Conditions.
“Company” means Customers Bancorp, Inc.
“Corporate Event” has the meaning set forth
in Section 5(b) hereof.
“Data” has the meaning set forth in Section
11(d) hereof.
“Disability” means, in the absence of an
Award Agreement otherwise defining Disability, the permanent and total disability of such Grantee within the meaning of Section 22(e)(3)
of the Code. In the event that there is an Award Agreement defining Disability, “Disability” shall have the meaning provided
in such Award Agreement.
“Exchange Act” means the U.S. Securities
Exchange Act of 1934, as amended from time to time, including the rules and regulations thereunder and any successor provisions, rules
and regulations thereto.
“Fair Market Value” means, as of any date
when the Stock is listed on one or more national securities exchanges, the closing price reported on the principal national securities
exchange on which such Stock is listed and traded on the date of determination or, if the closing price is not reported on such date of
determination, the closing price reported on the most recent date prior to the date of determination. If the Stock is not listed on a
national securities exchange, “Fair Market Value” shall mean the amount determined by the Board in good faith, and in a manner
consistent with Section 409A of the Code, to be the fair market value per share of Stock.
“Grantee” means the Person who has been
granted an Award under an Award Agreement or, if applicable, such other Person who holds an Award.
“Participant Agreement” means an employment
or other services agreement between a Participant and the Service Recipient that describes the terms and conditions of such Participant’s
employment or service with the Service Recipient and is effective as of the date of determination.
“Person” means any individual, corporation,
partnership, firm, joint venture, association, joint-stock company, trust, unincorporated organization, or other entity.
“Qualified Member” means a member of the
Committee who is a “Non-Employee Director” within the meaning of Rule 16b-3 under the Exchange Act or an “independent
director” as defined under, as applicable, the NYSE Listed Company Manual or other applicable stock exchange rules.
“Qualifying Committee” has the meaning
set forth in Section 3(b) hereof.
“Restricted Stock Unit” means a notional
unit representing the right to receive one share of Stock (or the cash value of one share of Stock, if so determined by the Committee)
on a specified settlement date.
“RSU Agreement” means a written agreement
between the Company and a Grantee evidencing the terms and conditions of an individual Award of Restricted Stock Units.
“Securities Act” means the U.S. Securities
Act of 1933, as amended from time to time, including the rules and regulations thereunder and any successor provisions, rules and regulations
thereto.
“Service Recipient” means, with respect
to a Grantee holding an Award, either the Company or an Affiliate of the Company by which the original recipient of such Award is, or
following a Termination was most recently, principally employed or to which such original recipient provides, or following a Termination
was most recently providing, services, as applicable.
“Stock” means the common stock, par value
$1.00 per share, of the Company.
“Subsidiary” means any corporation, partnership,
joint venture, limited liability company or other entity during any period in which at least a majority of the voting or profits interest
is owned, directly or indirectly, by the Company or any successor to the Company.
“Termination” means the termination of
a Grantee’s employment or service, as applicable, with the Service Recipient; provided, however, that, if so determined by the Committee
at the time of any change in status in relation to the Service Recipient (e.g., a Grantee ceases to be an employee and begins providing
services as a consultant, or vice versa), such change in status will not be deemed a Termination hereunder. Unless otherwise determined
by the Committee, in the event that the Service Recipient ceases to be an Affiliate of the Company (by reason of sale, divestiture, spin-off,
or other similar transaction), unless a Grantee’s employment or service is transferred to another entity that would constitute the
Service Recipient immediately following such transaction, such Grantee shall be deemed to have suffered a Termination hereunder as of
the date of the consummation of such transaction. Notwithstanding anything herein to the contrary, a Grantee’s change in status
in relation to the Service Recipient (for example, a change from employee to consultant) shall not be deemed a Termination hereunder with
respect to any Awards constituting “nonqualified deferred compensation” subject to Section 409A of the Code that are payable
upon a Termination unless such change in status constitutes a “separation from service” within the meaning of Section 409A
of the Code. Any payments in respect of an Award constituting nonqualified deferred compensation subject to Section 409A of the Code that
are payable upon a Termination shall be delayed for such period as may be necessary to meet the requirements of Section 409A(a)(2)(B)(i)
of the Code. On the first business day following the expiration of such period, the Grantee shall be paid, in a single lump sum without
interest, an amount equal to the aggregate amount of all payments delayed pursuant to the preceding sentence, and any remaining payments
not so delayed shall continue to be paid pursuant to the payment schedule applicable to such Award.
3.Administration.
(a)Authority
of the Committee. Except as otherwise provided below, the Award, Award Agreement and the Terms and Conditions shall be administered
by the Committee. The Committee shall have full and final authority, in each case subject to and consistent with the provisions of the
Award, Award Agreement and the Terms and Conditions, to construe and interpret the Award, Award Agreement and the Terms and Conditions
and correct defects, supply omissions, and reconcile inconsistencies therein and make all other decisions and determinations as the Committee
may deem necessary or advisable for the administration of the Award, Award Agreement and the Terms and Conditions. Any action of the Committee
shall be final, conclusive, and binding on all Persons, including, without limitation, the Company, its shareholders and Affiliates, Grantees,
and beneficiaries of Grantees. Notwithstanding anything in the Award, Award Agreement and the Terms and Conditions to the contrary, the
Committee shall have the ability to accelerate the vesting of any outstanding Award at any time and for any reason, including upon a Corporate
Event, subject to Section 5(d), or in the event of a Grantee’s Termination by the Service Recipient other than for Cause, or due
to the Grantee’s death, Disability or retirement (as such term may be defined in an applicable Award Agreement, or, if no such definition
exists, in accordance with the Company’s then-current employment policies and guidelines). For the avoidance of doubt, the Board
shall have the authority to take all actions under the Award, Award Agreement and the Terms and Conditions that the Committee is permitted
to take.
(b)Manner
of Exercise of Committee Authority. At any time that a member of the Committee is not a Qualified Member, any action of the Committee
relating to an Award granted or to be granted to a Grantee who is then subject to Section 16 of the Exchange Act in respect of the Company,
must be taken by the remaining members of the Committee or a subcommittee, designated by the Committee or the Board, composed solely of
two or more Qualified Members (a “Qualifying Committee”). Any action authorized by such a Qualifying Committee shall be deemed
the action of the Committee for purposes of the Award, Award Agreement and the Terms and Conditions. The express grant of any specific
power to a Qualifying Committee, and the taking of any action by such a Qualifying Committee, shall not be construed as limiting any power
or authority of the Committee.
(c)Delegation.
To the extent permitted by applicable law, the Committee may delegate to officers or employees of the Company or any of its Affiliates,
or committees thereof, the authority, subject to such terms as the Committee shall determine, to perform such functions under the Award,
Award Agreement and the Terms and Conditions, including, but not limited to, administrative functions, as the Committee may determine
appropriate. The Committee may appoint agents to assist it in administering the Award, Award Agreement and the Terms and Conditions. Any
actions taken by an officer or employee delegated authority pursuant to this Section 3(c) within the scope of such delegation shall, for
all purposes under the Award, Award Agreement and the Terms and Conditions, be deemed to be an action taken by the Committee.
(d)Sections
409A and 457A. The Committee shall take into account compliance with Sections 409A and 457A of the Code in connection with any grant
of an Award, to the extent applicable. While the Awards granted hereunder are intended to be structured in a manner to avoid the imposition
of any penalty taxes under Sections 409A and 457A of the Code, in no event whatsoever shall the Company or any of its Affiliates be liable
for any accelerated or additional tax, interest, or penalties that may be imposed on a Grantee as a result of Section 409A or Section
457A of the Code or any damages for failing to comply with Section 409A or Section 457A of the Code or any similar state or local laws
(other than for withholding obligations or other obligations applicable to employers, if any, under Section 409A or Section 457A of the
Code).
4.Restricted
Stock Units.
(a)General.
Restricted Stock Units may be in such form and having such terms and conditions as the Committee shall deem appropriate. The provisions
of separate Restricted Stock Units shall be set forth in separate RSU Agreements, which agreements need not be identical.
(b)Vesting.
Restricted Stock Units shall vest in such manner, on such date or dates, or upon the achievement of performance or other conditions, in
each case as set forth in an RSU Agreement; provided, however, that notwithstanding any such vesting dates, the Committee may in its sole
discretion accelerate the vesting of any Restricted Stock Unit at any time and for any reason. Unless otherwise specifically determined
by the Committee, the vesting of a Restricted Stock Unit shall occur only while the Grantee is employed by or rendering services to the
Service Recipient, and all vesting shall cease upon a Grantee’s Termination for any reason.
(c)Settlement.
Restricted Stock Units shall be settled in Stock, cash, or property, as determined by the Committee, in its sole discretion, on the date
or dates determined by the Committee and set forth in an RSU Agreement. Unless otherwise set forth in a Grantee’s RSU Agreement,
a Grantee shall not be entitled to dividends, if any, or dividend equivalents with respect to Restricted Stock Units prior to settlement.
(d)Termination
of Employment or Service. Except as provided in an RSU Agreement or otherwise determined by the Committee, in the event of a Grantee’s
Termination for any reason prior to the time that such Grantee’s Restricted Stock Units have been settled, (1) all vesting with
respect to such Grantee’s Restricted Stock Units outstanding shall cease, (2) all of such Grantee’s unvested Restricted Stock
Units outstanding shall be forfeited for no consideration as of the date of such Termination, and (3) any shares remaining undelivered
with respect to vested Restricted Stock Units then held by such Grantee shall be delivered on the delivery date or dates specified in
the RSU Agreement.
(e)Compliance
With Section 409A. Unless the Committee provides otherwise in an Award Agreement, each Restricted Stock Unit shall be paid in full
to the Grantee no later than the fifteenth day of the third month after the end of the first calendar year in which the Restricted Stock
Unit is no longer subject to a “substantial risk of forfeiture” within the meaning of Code Section 409A. If the Committee
provides in an Award Agreement that a Restricted Stock Unit is intended to be subject to Code Section 409A, the Award Agreement shall
include terms that are intended to satisfy the requirements of Section 409A.
5.Adjustment
for Recapitalization, Merger, etc.
(a)Capitalization
Adjustments. The aggregate number of shares of Stock that may be delivered in connection with an Award, the number of shares of Stock
covered by each outstanding Award, and the price per share of Stock underlying each such Award shall be equitably and proportionally adjusted
or substituted, as determined by the Committee, in its sole discretion, as to the number, price, or kind of a share of Stock or other
consideration subject to such Awards (1) in the event of changes in the outstanding Stock or in the capital structure of the Company by
reason of stock dividends, extraordinary cash dividends, stock splits, reverse stock splits, recapitalizations, reorganizations, mergers,
amalgamations, consolidations, combinations, exchanges, or other relevant changes in capitalization occurring after the date of grant
of any such Award (including any Corporate Event); (2) in connection with any extraordinary dividend declared and paid in respect of shares
of Stock, whether payable in the form of cash, stock, or any other form of consideration; or (3) in the event of any change in applicable
laws or circumstances that results in or could result in, in either case, as determined by the Committee in its sole discretion, any substantial
dilution or enlargement of the rights intended to be granted to, or available for, Grantees in the Award, Award Agreement and the Terms
and Conditions.
(b)Corporate
Events. Notwithstanding the foregoing, except as provided by the Committee in an Award Agreement or otherwise, in connection with
(i) a merger, amalgamation, or consolidation involving the Company in which the Company is not the surviving corporation, (ii) a merger,
amalgamation, or consolidation involving the Company in which the Company is the surviving corporation but the holders of shares of Stock
receive securities of another corporation or other property or cash, (iii) a Change in Control, or (iv) the reorganization, dissolution
or liquidation of the Company (each, a “Corporate Event”), the Committee may provide for any one or more of the following:
| (1) | The assumption or substitution of any or all Awards in connection with such Corporate Event, in which case the Awards shall be subject
to the adjustment set forth in subsection (a) above; |
| (2) | The acceleration of vesting of any or all Awards not assumed or substituted in connection with such Corporate Event, subject to the
consummation of such Corporate Event; |
| (3) | The cancellation of any or all Awards not assumed or substituted in connection with such Corporate Event (whether vested or unvested)
as of the consummation of such Corporate Event, together with the payment to the Grantees holding vested Awards (including any Awards
that would vest upon the Corporate Event but for such cancellation) so canceled of an amount in respect of cancellation equal to an amount
based upon the per-share consideration being paid for the Stock in connection with such Corporate Event; and |
| (4) | The replacement of any or all Awards (other than Awards that are intended to qualify as “stock rights” that do not provide
for a “deferral of compensation” within the meaning of Section 409A of the Code) with a cash incentive program that preserves
the value of the Awards so replaced (determined as of the consummation of the Corporate Event), with subsequent payment of cash incentives
subject to the same vesting conditions as applicable to the Awards so replaced and payment to be made within thirty (30) days of the applicable
vesting date. |
Payments to holders pursuant to paragraph (3) above shall be made in cash
or, in the sole discretion of the Committee, and to the extent applicable, in the form of such other consideration necessary for a Grantee
to receive property, cash, or securities (or a combination thereof) as such Grantee would have been entitled to receive upon the occurrence
of the transaction if the Grantee had been, immediately prior to such transaction, the holder of the number of shares of Stock covered
by the Award at such time (less any applicable exercise or base price). In addition, in connection with any Corporate Event, prior to
any payment or adjustment contemplated under this subsection (b), the Committee may require a Grantee to (A) represent and warrant as
to the unencumbered title to his or her Awards, (B) bear such Grantee’s pro-rata share of any post-closing indemnity obligations,
and be subject to the same post-closing purchase price adjustments, escrow terms, offset rights, holdback terms, and similar conditions
as the other holders of Stock, and (C) deliver customary transfer documentation as reasonably determined by the Committee. The Committee
need not take the same action or actions with respect to all Awards or portions thereof or with respect to all Grantees. The Committee
may take different actions with respect to the vested and unvested portions of an Award.
(c)Fractional
Shares. Any adjustment provided under this Section 4 may, in the Committee’s discretion, provide for the elimination of any
fractional share that might otherwise become subject to an Award. No cash settlements shall be made with respect to fractional shares
so eliminated.
(d)Double-Trigger
Vesting. Notwithstanding any other provisions of the Plan, an Award Agreement to the contrary, with respect to any Award that is assumed
or substituted in connection with a Change in Control, the vesting, payment, purchase or distribution of such Award may not be accelerated
by reason of the Change in Control for any Grantee unless the Grantee experiences an involuntary Termination as a result of the Change
in Control. Unless otherwise provided for in an Award Agreement, any Award held by a Grantee who experiences an involuntary Termination
as a result of a Change in Control shall immediately vest as of the date of such Termination. For purposes of this Section 5(d), a Grantee
will be deemed to experience an involuntary Termination as a result of a Change in Control if the Grantee experiences a Termination by
the Service Recipient other than for Cause as defined in the applicable Award Agreement or in a written change in control, retention,
severance or similar plan maintained by the Company in which the Grantee participates), or otherwise experiences a Termination under circumstances
which entitle the Grantee to mandatory severance payment(s) pursuant to applicable law or, in the case of a non-employee director of the
Company, if the non-employee director’s service on the Board terminates in connection with or as a result of a Change in Control,
in each case, at any time beginning on the date of the Change in Control up to and including the first (1st) anniversary of the Change
in Control.
6.Transferability
of Awards. Awards may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by
the applicable laws of descent and distribution, and to the extent subject to exercise, Awards may not be exercised during the lifetime
of the Grantee other than by the Grantee. Notwithstanding the foregoing, Awards and a Grantee’s rights under the Award agreement
and the Terms and Conditions shall be transferable to a Grantee’s spouse, lineal ascendants, lineal descendants, or to a duly established
trust for the benefit of one or more of these individuals.
7.Employment
or Service Rights. Neither the Award, the Standard Terms nor any action taken thereunder or hereunder shall be construed as giving
any individual any right to be retained in the employ or service of the Company or an Affiliate of the Company.
8.Compliance
with Laws. The obligation of the Company to deliver Stock upon issuance, vesting, exercise, or settlement of any Award shall be subject
to all applicable laws, rules, and regulations, and to such approvals by governmental agencies as may be required. Notwithstanding any
terms or conditions of any Award to the contrary, the Company shall be under no obligation to offer to sell or to sell, and shall be prohibited
from offering to sell or selling, any shares of Stock pursuant to an Award unless such shares have been properly registered for sale with
the U.S. Securities and Exchange Commission pursuant to the Securities Act (or with a similar non-U.S. regulatory agency pursuant to a
similar law or regulation) or unless the Company has received an opinion of counsel, satisfactory to the Company, that such shares may
be offered or sold without such registration pursuant to an available exemption therefrom and the terms and conditions of such exemption
have been fully complied with. The Company shall be under no obligation to register for sale or resale under the Securities Act any of
the shares of Stock to be offered or sold under the Award or the Terms and Conditions or any shares of Stock to be issued upon exercise
or settlement of an Award. If the shares of Stock offered for sale or sold under the Award are offered or sold pursuant to an exemption
from registration under the Securities Act, the Company may restrict the transfer of such shares and may legend the Stock certificates
representing such shares in such manner as it deems advisable to ensure the availability of any such exemption.
9.Withholding
Obligations. As a condition to the issuance, vesting, exercise, or settlement of any Award (or upon the making of an election under
Section 83(b) of the Code), the Committee may require that a Grantee satisfy, through deduction or withholding from any payment of any
kind otherwise due to the Grantee, or through such other arrangements as are satisfactory to the Committee, the amount of all federal,
state, and local income and other taxes of any kind required or permitted to be withheld in connection with such issuance, vesting, exercise,
or settlement (or election). The Committee, in its discretion, may permit shares of Stock to be used to satisfy tax withholding requirements,
and such shares shall be valued at their Fair Market Value as of the issuance, vesting, exercise, or settlement date of the Award, as
applicable. Depending on the withholding method, the Company may withhold by considering the applicable minimum statutorily required withholding
rates or other applicable withholding rates in the applicable Grantee’s jurisdiction, including maximum applicable rates that may
be utilized without creating adverse accounting treatment under Financial Accounting Standards Board Accounting Standards Codification
Topic 718 (or any successor pronouncement thereto).
10.Amendment
of Awards.
(a)Amendment
of Awards. The Board or the Committee may amend the terms of any one or more Awards at any time and from time to time.
(b)Shareholder
Approval; No Material Impairment. Notwithstanding anything herein to the contrary, no amendment to an Award shall be effective without
shareholder approval to the extent that such approval is required pursuant to applicable law or the applicable rules of each national
securities exchange on which the Stock is listed. Additionally, no amendment to an Award shall materially impair a Grantee’s rights
under any Award unless the Grantee consents in writing (it being understood that no action taken by the Board or the Committee that is
expressly permitted under the Award Agreement or Standard Terms shall constitute an amendment to the Award for such purpose). Notwithstanding
the foregoing, subject to the limitations of applicable law, if any, and without an affected Grantee’s consent, the Board or the
Committee may amend the terms of the Award from time to time as necessary to bring such Award into compliance with applicable law, including,
without limitation, Section 409A of the Code.
(c)No
Repricing of Awards Without Shareholder Approval. Notwithstanding subsection (a) or (b) above, or any other provision of the Award
Agreement or Standard Terms, the repricing of an Award shall not be permitted without shareholder approval. For this purpose, a “repricing”
means any of the following (or any other action that has the same effect as any of the following): (1) changing the terms of an Award
to lower its exercise or base price (other than on account of capital adjustments resulting from share splits, etc., as described in Section
5(a) hereof), (2) any other action that is treated as a repricing under GAAP, and (3) repurchasing for cash or canceling an Award in exchange
for another Award at a time when its exercise or base price is greater than the Fair Market Value of the underlying Stock, unless the
cancellation and exchange occurs in connection with an event set forth in Section 5(b) hereof.
11.Miscellaneous.
(a)Certificates.
Stock acquired pursuant to Awards may be evidenced in such a manner as the Committee shall determine. If certificates representing Stock
are registered in the name of the Grantee, the Committee may require that (1) such certificates bear an appropriate legend referring to
the terms, conditions, and restrictions applicable to such Stock, (2) the Company retain physical possession of the certificates, and
(3) the Grantee delivers a stock power to the Company, endorsed in blank, relating to the Stock. Notwithstanding the foregoing, the Committee
may determine, in its sole discretion, that the Stock shall be held in book-entry form rather than delivered to the Grantee pending the
release of any applicable restrictions.
(b)Other
Benefits. No Award granted or paid out under the Award Agreement and the Standard Terms shall be deemed compensation for purposes
of computing benefits under any retirement plan of the Company or its Affiliates nor affect any benefits under any other benefit plan
now or subsequently in effect under which the availability or amount of benefits is related to the level of compensation.
(c)Clawback/Recoupment
Policy. Notwithstanding anything contained herein to the contrary, all Awards shall be and remain subject to any incentive compensation
clawback or recoupment policy currently in effect or as may be adopted by the Board (or a committee or subcommittee of the Board) and,
in each case, as may be amended from time to time. No such policy adoption or amendment shall in any event require the prior consent of
any Grantee. No recovery of compensation under such a clawback policy will be an event giving rise to a right to resign for “good
reason” or “constructive termination” (or similar term) under any agreement with the Company or any of its Affiliates.
In the event that an Award is subject to more than one such policy, the policy with the most restrictive clawback or recoupment provisions
shall govern such Award, subject to applicable law.
(d)Data
Privacy. As a condition of receipt of any Award, each Grantee explicitly and unambiguously consents to the collection, use, and transfer,
in electronic or other form, of personal data as described in this Section by and among, as applicable, the Company and its Affiliates
for the exclusive purpose of implementing, administering, and managing the Award Agreement or the Standard Terms. In furtherance of such
implementation, administration, and management, the Company and its Affiliates may hold certain personal information about a Grantee,
including, but not limited to, the Grantee’s name, home address, telephone number, date of birth, social security or insurance number
or other identification number, salary, nationality, job title(s), information regarding any securities of the Company or any of its Affiliates,
and details of all Awards (the “Data”). In addition to transferring the Data amongst themselves as necessary for the purpose
of implementation, administration, and management of the Award Agreement or the Standard Terms, the Company and its Affiliates may each
transfer the Data to any third parties assisting the Company in the implementation, administration, and management of the Award Agreement
and the Standard Terms. Recipients of the Data may be located in the Grantee’s country or elsewhere, and the Grantee’s country
and any given Grantee’s country may have different data privacy laws and protections. By accepting an Award, each Grantee authorizes
such Data recipients to receive, possess, use, retain, and transfer the Data, in electronic or other form, for the purposes of assisting
the Company in the implementation, administration, and management of the Award Agreement and the Standard Terms, including any requisite
transfer of such Data as may be required to a broker or other third party with whom the Company or the Grantee may elect to deposit any
shares of Stock. The Data related to a Grantee will be held only as long as is necessary to implement, administer, and manage the Award
Agreement and the Standard Terms. A Grantee may, at any time, view the Data held by the Company with respect to such Grantee, request
additional information about the storage and processing of the Data with respect to such Grantee, recommend any necessary corrections
to the Data with respect to the Grantee, or refuse or withdraw the consents herein in writing, in any case without cost, by contacting
his or her local human resources representative. The Company may cancel the Award Agreement, and in the Committee’s discretion,
the Grantee may forfeit any outstanding Awards if the Grantee refuses or withdraws the consents described herein. For more information
on the consequences of refusal to consent or withdrawal of consent, Grantees may contact their local human resources representative.
(e)Grantees
Outside of the United States. The Committee may modify the terms of any Award under the Award Agreement or the Standard Terms made
to or held by a Grantee who is then a resident, or is primarily employed or providing services, outside of the United States in any manner
deemed by the Committee to be necessary or appropriate in order that such Award shall conform to laws, regulations, and customs of the
country in which the Grantee is then a resident or primarily employed or providing services, or so that the value and other benefits of
the Award to the Grantee, as affected by non-U.S. tax laws and other restrictions applicable as a result of the Grantee’s residence,
employment, or providing services abroad, shall be comparable to the value of such Award to a Grantee who is a resident, or is primarily
employed or providing services, in the United States. An Award may be modified under this Section in a manner that is inconsistent with
the express terms of the Plan, so long as such modifications will not contravene any applicable law or regulation or result in actual
liability under Section 16(b) of the Exchange Act for the Grantee whose Award is modified.
(f)No
Liability of Committee Members. Neither any member of the Committee nor any of the Committee’s permitted delegates shall be
liable personally by reason of any contract or other instrument executed by such member or on his or her behalf in his or her capacity
as a member of the Committee or for any mistake of judgment made in good faith, and the Company shall indemnify and hold harmless each
member of the Committee and each other employee, officer, or director of the Company to whom any duty or power relating to the administration
or interpretation of the Award Agreement or the Standard Terms may be allocated or delegated, against all costs and expenses (including
counsel fees) and liabilities (including sums paid in settlement of a claim) arising out of any act or omission to act in connection with
the Award Agreement or the Standard Terms, unless arising out of such Person’s own fraud or willful misconduct; provided, however,
that approval of the Board shall be required for the payment of any amount in settlement of a claim against any such Person. The foregoing
right of indemnification shall not be exclusive of any other rights of indemnification to which such Persons may be entitled under the
Company’s certificate or articles of incorporation or by-laws, each as may be amended from time to time, as a matter of law, or
otherwise, or any power that the Company may have to indemnify them or hold them harmless.
(g)Payments
Following Accidents or Illness. If the Committee shall find that any Person to whom any amount is payable under the Award Agreement
or the Standard Terms is unable to care for his or her affairs because of illness or accident, or is a minor, or has died, then any payment
due to such Person or his or her estate (unless a prior claim therefor has been made by a duly appointed legal representative) may, if
the Committee so directs the Company, be paid to his or her spouse, child, relative, an institution maintaining or having custody of such
Person, or any other Person deemed by the Committee to be a proper recipient on behalf of such Person otherwise entitled to payment. Any
such payment shall be a complete discharge of the liability of the Committee and the Company therefor.
(h)Governing
Law. The Award Agreement or the Standard Terms shall be governed by and construed in accordance with the internal laws of the Commonwealth
of Pennsylvania without reference to the principles of conflicts of laws thereof.
(i)Electronic
Delivery. Any reference herein to a “written” agreement or document or “writing” will include any agreement
or document delivered electronically or posted on the Company’s intranet (or other shared electronic medium controlled or authorized
by the Company to which the Grantee has access) to the extent permitted by applicable law.
(j)Arbitration.
All disputes and claims of any nature that a Grantee (or such Grantee’s transferee or estate) may have against the Company arising
out of or in any way related to the Award Agreement or the Standard Terms must be submitted solely and exclusively to binding arbitration
in accordance with the then-current employment arbitration rules and procedures of the American Arbitration Association (AAA) to be held
in Berks County, Pennsylvania. All information regarding the dispute or claim and arbitration proceedings, including any settlement, shall
not be disclosed by the Grantee or any arbitrator to any third party without the written consent of the Company, except with respect to
judicial enforcement of any arbitration award. Any arbitration claim must be brought solely in the Grantee’s (or such Grantee’s
transferee’s or estate’s) individual capacity and not as a claimant or class member (or similar capacity) in any purported
multiple-claimant, class, collective, representative or similar proceeding, and the arbitrator may not permit joinder of any multiple
claimants and their claims without the express written consent of the Company. Any arbitrator selected to adjudicate the claim must be
knowledgeable in the industry standards and practices, and, by signing an Award Agreement, each Grantee will be deemed to agree that any
claims pursuant to the Award Agreement or the Standard Terms is inherently a matter involving interstate commerce and thus, notwithstanding
the choice of law provision included herein, the Federal Arbitration Act shall govern the interpretation and enforcement of this arbitration
provision. The arbitrator shall not be permitted to award any punitive or similar damages, but may award attorney’s fees and expenses
to the prevailing party in any arbitration. Any decision by the arbitrator shall be binding on all parties to the arbitration.
(k)Statute
of Limitations. A Grantee or any other person filing a claim for benefits under the Award Agreement or the Standard Terms must file
the claim within one (1) year of the date the Grantee or other person knew or should have known of the facts giving rise to the claim.
This one-year statute of limitations will apply in any forum where a Grantee or any other person may file a claim and, unless the Company
waives the time limits set forth above in its sole discretion, any claim not brought within the time periods specified shall be waived
and forever barred.
(l)Funding.
No provision of the Standard Terms shall require the Company, for the purpose of satisfying any obligations under the Award Agreement
or the Standard Terms, to purchase assets or place any assets in a trust or other entity to which contributions are made or otherwise
to segregate any assets, nor shall the Company be required to maintain separate bank accounts, books, records, or other evidence of the
existence of a segregated or separately maintained or administered fund for such purposes. Grantees shall have no rights under the Award
Agreement or the Standard Terms other than as unsecured general creditors of the Company, except that insofar as they may have become
entitled to payment of additional compensation by performance of services, they shall have the same rights as other employees and service
providers under general law.
(m)Reliance
on Reports. Each member of the Committee and each member of the Board shall be fully justified in relying, acting, or failing to act,
and shall not be liable for having so relied, acted, or failed to act in good faith, upon any report made by the independent public accountant
of the Company and its Affiliates and upon any other information furnished in connection with the Plan by any Person or Persons other
than such member.
(n)Treatment
of Dividends and Dividend Equivalents on Unvested Awards. Notwithstanding any other provision of the Award, Award Agreement or the
Terms and Conditions to the contrary, with respect to any Award that provides for or includes a right to dividends or dividend equivalents,
if dividends are declared during the period that an equity Award is outstanding, such dividends (or dividend equivalents) shall be accumulated
but remain subject to vesting requirement(s) to the same extent as the applicable Award and shall only be paid at the time or times such
vesting requirement(s) are satisfied. Except as otherwise determined by the Committee, no interest will accrue or be paid on the amount
of any cash dividends withheld.
(o)Code
Section 409A. Anything under Award Agreement or the Terms and Conditions to the contrary notwithstanding, to the extent applicable,
it is intended that any Award which provide for a “deferral of compensation” subject to Section 409A of the Code and rules,
regulation and guidance issued thereunder (collectively, “Code Section 409A”) shall comply with the provisions of Code Section
409A and the Award shall be construed and applied in a manner consistent with this intent. In furtherance thereof, any amount constituting
a “deferral of compensation” under Treasury Regulation Section 1.409A-1(b) that is payable to a Grantee upon a Separation
from Service of the Grantee (within the meaning of Treasury Regulation Section 1.409A-1(h)) (other than due to the Grantee’s death),
occurring while the Grantee shall be a “specified employee” (within the meaning of Treasury Regulation Section 1.409A-1(i))
of the Company or applicable Subsidiary, shall not be paid until the earlier of (x) the date that is six months following such Separation
from Service or (y) the date of the Grantee’s death following such Separation from Service.
(p)Titles
and Headings. The titles and headings of the sections in these Standard Terms are for convenience of reference only, and in the event
of any conflict, the text of the Standard Terms, rather than such titles or headings, shall control.
Exhibit 5.1
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Stradley Ronon Stevens & Young, LLP
Suite 2600
2005 Market Street Philadelphia, PA 19103-7018
Telephone 215.564.8000
Fax 215.564.8120
www.stradley.com |
August 31, 2023
Customers Bancorp, Inc.
701 Reading Avenue
West Reading PA 19611
Re: Customers Bancorp, Inc. – Form S-8 Registration Statement
Ladies and Gentlemen:
We have acted as counsel to and for Customers Bancorp, Inc., a Pennsylvania corporation (the “Company”), in connection with
the preparation and filing with the Securities and Exchange Commission (the “Commission”) by the Company of a registration
statement on Form S-8 (the “Registration Statement”) for the purpose of registering under the Securities Act of 1933, as amended
(the “Securities Act”), 22,300 shares of the Company’s Voting Common Stock, par value $1.00 per share (the “Shares”),
that are issuable pursuant to restricted stock unit award agreements providing for employee inducement grants between the Company and
certain employees, which will be entered into in connection with the commencement of each such employee’s employment with the Company
pursuant to the exception for inducement awards under Rule 303A(8) of the NYSE Listed Company Manual. Such grants will be subject to the
terms and conditions contained in a restricted stock unit award agreement (an “Award Agreement”).
We have examined copies of
(i) the Registration Statement, including the Section 10(a) prospectus constituting a part of the Registration Statement, (ii) the form
of Award Agreement, (iii) the Company’s Amended and Restated Articles of Incorporation, included as Exhibit 3.1 to the Company’s
Current Report on Form 8-K filed with the Commission on April 30, 2012, (iv) the Articles of Amendment to the Company’s Amended
and Restated Articles of Incorporation, included as Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the Commission
on July 2, 2012, (v) the Articles of Amendment to the Company’s Amended and Restated Articles of Incorporation, included as Exhibit
3.1 to the Company’s Current Report on Form 8-K filed with the Commission on June 3, 2019, (vi) the Company’s Amended and
Restated Bylaws, included as Exhibit 3.2 to the Company’s Current Report on Form 8-K filed with the Commission on April 30, 2012,
(vii) the Amendment to the Company’s Amended and Restated Bylaws, included as Exhibit 3.1 to the Company’s Current Report
on Form 8-K filed with the Commission on June 19, 2019, (viii) the resolutions of the Company’s board of directors authorizing the
issuance of the securities pursuant to the Award Agreements and (ix) such other records, documents and statutes as we have deemed necessary
for purposes of this opinion letter.
Philadelphia,
PA • Harrisburg, PA • Malvern, PA • Cherry Hill, NJ • Wilmington, DE • Washington, DC • New York, NY •
Chicago, IL
A Pennsylvania
Limited Liability Partnership
Customers Bancorp, Inc.
August 31, 2023
Page 2
In rendering this opinion, we have assumed and relied
upon, without independent investigation, (i) the authenticity, completeness, truth and due authorization and execution of all documents
submitted to us as originals, (ii) the genuineness of all signatures on all documents submitted to us as originals, and (iii) the conformity
to the originals of all documents submitted to us as certified, electronic or photostatic copies.
The law covered by the opinions expressed herein is
limited to the federal statutes, judicial decisions and rules and regulations of the governmental agencies of the United States of America
and the statutes, judicial and administrative decisions and rules and regulations of the governmental agencies of the Commonwealth of
Pennsylvania. We are not rendering any opinion as to compliance with any federal or state law, rule, or regulation relating to securities,
or to the sale or issuance thereof, except to the extent that such compliance is related to the valid issuance of the Shares. This opinion
letter is being furnished in connection with the requirements of Item 601(b)(5) of the Commission’s Regulation S-K, and we express
no opinion as to any matter pertaining to the contents of the Registration Statement or the Section 10(a) prospectus constituting a part
of the Registration Statement, other than as expressly stated herein with respect to the issuance of the Shares.
In addition, our opinions are limited and qualified
in all respects by the effects of (i) general principles of equity and limitations on availability of equitable relief, including specific
performance, whether applied by a court of law or equity, and (ii) bankruptcy, insolvency, reorganization, moratorium, arrangement, fraudulent
conveyance or fraudulent transfer, receivership, and other laws now or hereafter in force affecting the rights and remedies of creditors
generally (not just creditors of specific types of debtors) and other laws now or hereafter in force affecting generally only creditors
of specific types of debtors.
This opinion letter is given only with respect to laws
and regulations presently in effect. We assume no obligation to advise you of any changes in law or regulation which may hereafter occur,
whether the same are retroactively or prospectively applied, or to update or supplement this letter in any fashion to reflect any facts
or circumstances which hereafter come to our attention.
Based upon, and subject to, the foregoing, and subject
to the qualifications, assumptions and limitations herein stated, we are of the opinion that when the Shares have been issued and delivered
pursuant to and in accordance with the applicable Award Agreement, including receipt by the Company of any consideration
provided therein, the Shares will be validly issued, fully paid and nonassessable.
This opinion is to be used only in connection with
the Registration Statement and the offering of the Shares described herein. This opinion is for your benefit and may be relied upon by
you and by persons entitled to rely upon it pursuant to the applicable provisions of the Securities Act.
We hereby consent to your filing of this opinion as
an exhibit to the Registration Statement. In giving such consent, we do not hereby admit that we are “experts” within the
meaning of the Securities Act, or the Rules and Regulations of the Commission issued thereunder, with respect to any part of the Registration
Statement, including this exhibit.
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Very truly yours, |
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/s/ STRADLEY RONON STEVENS & YOUNG, LLP |
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM
We consent to the incorporation by reference in this Registration
Statement on Form S-8 of our reports dated February 28, 2023 relating to the consolidated financial statements of Customers Bancorp, Inc.
and subsidiaries, and the effectiveness of Customers Bancorp, Inc. and subsidiaries’ internal control over financial reporting,
appearing in the Annual Report on Form 10-K of Customers Bancorp, Inc. and subsidiaries for the year ended December 31, 2022.
/s/ Deloitte & Touche LLP
Philadelphia, Pennsylvania
August 31, 2023
Exhibit 107
Calculation of Filing Fee Table
Form S-8
(Form Type)
Customers Bancorp, Inc.
(Exact Name of Registrant as Specified in its Charter)
Table 1: Newly Registered Securities
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Security Type |
Security Class Title |
Fee Calculation Rule |
Amount Registered(1) |
Proposed Maximum Offering Price Per Share |
Maximum Aggregate Offering Price |
Fee Rate |
Amount of Registration Fee |
Equity |
Voting
Common Stock, $1.00 par value per share |
457(c)
457(h) |
22,300 |
$35.08(2) |
$782,284 |
0.00011020 |
$86.21 |
Total Offering Amounts |
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$782,284 |
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$86.21 |
Total Fee Offsets |
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$0 |
Net Fee Due |
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$86.21 |
(1) |
Pursuant to Rule 416 under the Securities Act of 1933, as amended (the “Securities Act”), this Registration Statement on Form S-8 shall also cover any additional shares of the Registrant’s voting common stock, par value $1.00 per share (the “Voting Common Stock”) which become issuable under the inducement awards registered hereby by reason of any stock dividend, stock split, recapitalization, or any other similar transaction effected without the receipt of consideration which results in an increase in the number of outstanding shares of Voting Common Stock. |
(2) |
Estimated solely for the purpose of determining the registration fee pursuant to Rules 457(c) and 457(h) under the Securities Act, based on the average of the high and low prices of the Voting Common Stock as reported on the New York Stock Exchange on August 30, 2023. |
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