Document:

exv10w2

 

Exhibit 10.2

SECURITY DEPOSIT PLEDGE AGREEMENT

(Loan)

     This Security Deposit Pledge Agreement (this “Agreement”) is made and entered into as of
the 22nd day of December, 2006, by and between Genitope Corporation a Delaware corporation with its
principal place of business at 6900 Dumbarton Circle, Fremont, CA 94555, (“Debtor”) and General
Electric Capital Corporation, a Delaware corporation, with its principal place of business at 83
Wooster Heights Road, 5th Floor, Danbury, CT 06810 (“Secured Party”).

     In consideration of, and as an inducement for Secured Party to lend funds to Debtor under the
Master Security Agreement, dated as of October 31, 2006, and any Collateral Schedules and
Promissory Notes thereunder (the “Master Security Agreement and all Collateral Schedules and
Promissory Notes thereto being referred to as the “Loan Documents”), and to secure the payment and
performance of all of Debtor’s obligations under the Loan Documents, Debtor hereby deposits and
pledges with Secured Party the sum of Three Hundred Eighty-Eight Thousand Three Hundred
Ninety-Seven and 25/00 Dollars $388,397.25 (the “Security Deposit”), such pledge to be upon the
terms and conditions set forth below (all capitalized terms not otherwise defined herein shall have
the meanings set forth in the Loan Documents):

     1. Debtor delivers the Security Deposit to Secured Party to secure Debtor’s performance of
its obligations under the Loan Documents, including, but not limited to, the timely payment of the
Periodic Installments.

     2. The Security Deposit deposited with Secured Party shall accrue interest at 4% simple
interest per annum from the date of deposit through the date such Security Deposit is returned to
Debtor in connection with Section 5 hereof. Secured Party may commingle the Security Deposit with
its other funds.

     3. Upon any default by Debtor under the Loan Documents, interest accrual on the Security
Deposit shall cease and Secured Party may, at its option, apply the Security Deposit towards the
satisfaction of Debtor’s obligations under the Loan Documents and the payment of all costs and
expenses incurred by Secured Party as a result of such default, including but not limited to, costs
of repossessing equipment and reasonable attorneys’ fees. Such application shall not excuse the
performance at the time and in the manner prescribed of any obligation of Debtor or cure a default
of Debtor. Upon the application by Secured Party of any amount of the Security Deposit pursuant to
the terms of this paragraph, Debtor shall be obligated to immediately pay to Secured Party an
amount sufficient to cause the Security Deposit to equal the amount first set forth above as
reduced in accordance with Section 5 herein.

     4. Secured Party shall have no duty to first commence an action against or seek recourse from
Debtor, in the event of a default under the Loan Documents, before enforcing the provisions of, and
proceedings under the provisions of this Agreement. The obligations of Debtor under this Agreement
shall be absolute and unconditional and shall remain in full force and effect without regard to,
and shall not be released or discharged or in any way affected by:

	 	(a)	 	any amendment or modification of or supplement to the Loan Documents;
	 
	 	(b)	 	any exercise or non-exercise of any right, remedy or privilege under or in respect
to this Agreement, the Loan Documents, or any other instrument provided for in the Loan
Documents, or any waiver, consent, explanation, indulgence or actions or inaction with
respect to any such instrument; or

 

 

	 	(c)	 	any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition,
liquidation or similar proceeding of Debtor.

     5. So long as Debtor is not in default under the Loan Documents or under any other material
financial obligation, Secured Party agrees to reduce the Security Deposit to an amount equivalent
to 25% of the outstanding principal balance of the Loan. The Secured Party shall then refund to
Debtor any Security Deposit in excess of the reduced Security Deposit and accrued interest on the
refunded amount (less any portion of same cashed, sold, assigned or delivered pursuant to, and
under the circumstances specified in Paragraph 3 hereof). The refunds will take place every six
months commencing January 1, 2007.

     6. So long as Debtor is not in default under the Loan Documents, and in the event Debtor has
(i) borrowed $6,666,666.00 from Secured Party prior to November 30, 2006 and (ii) received the Food
and Drug Administration’s (“FDA”) approval of the marketing and use of Debtor’s drug, MyVax
personalized immunotherapy, Secured Party agrees to deliver to Debtor the Security Deposit and
accrued interest thereon (less any portion of same cashed, sold, assigned or delivered pursuant to
and under the conditions specified in paragraphs 3 and 5 hereof), but in no event will said refund
occur prior to August 31, 2007. Prior to the refund, Debtor shall supply Secured Party with
documented proof of the FDA approval acceptable to Secured Party in its sole discretion. Nothing
in this Section shall be deemed to require Secured Party to refund to Debtor any amount greater
than the amount of the Security Deposit on the date of such scheduled refund. Upon such refund,
Debtor will no longer be required to deposit any Security Deposit with Secured Party, and this
Agreement shall thereupon be without further effect.

     7. So long as Debtor is not in default under the Loan Documents, and in the event Debtor has
(i) borrowed $6,666,666.00 from Secured Party after November 30, 2006 and prior to December 30,
2006, and (ii) received the Food and Drug Administration’s (“FDA”) approval of the marketing and
use of Debtor’s drug, MyVax personalized immunotherapy, Secured Party agrees to deliver to Debtor
the Security Deposit and accrued interest thereon (less any portion of same cashed, sold, assigned
or delivered pursuant to and under the conditions specified in paragraphs 3 and 5 hereof), but in
no event will said refund occur prior to October 30, 2007. Prior to the refund, Debtor shall supply
Secured Party with documented proof of the FDA approval acceptable to Secured Party in its sole
discretion. Nothing in this Section shall be deemed to require Secured Party to refund to Debtor
any amount greater than the amount of the Security Deposit on the date of such scheduled refund.
Upon such refund, Debtor will no longer be required to deposit any Security Deposit with Secured
Party, and this Agreement shall thereupon be without further effect.

     8. Upon the termination of the Loan Documents and the satisfaction of all of the obligations
of Debtor thereunder, Secured Party shall deliver to Debtor the Security Deposit and accrued
interest thereon (less any portion of same cashed, sold, assigned or delivered pursuant to and
under the conditions specified in paragraphs 3 and 5 hereof), and this Agreement shall thereupon be
without further effect.

     9. Secured Party may, without the consent of Debtor, assign this Agreement to another
financial institution reasonably acceptable to Debtor. Debtor agrees that if Debtor receives
written notice of an assignment from Secured Party, Debtor will pay all amounts due hereunder to
such assignee or as instructed by Secured Party. Debtor also agrees to confirm in writing receipt
of the notice of assignment as may be reasonably requested by assignee. Debtor hereby waives and
agrees not to assert against any such assignee any defense, set-off, recoupment claim or
counterclaim, which Debtor has or may at any time have against Secured Party for any reason
whatsoever.

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed as of the date first above written.

	 	 	 	 	 	 	 	 	 
	SECURED PARTY:	 	 	 	DEBTOR:
	 
	 	 	 	 	 	 	 	 
	General Electric Capital Corporation	 	 	 	Genitope Corporation
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ John Edel 	 	 	 	By:
	 	/s/ John M. Vuko
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:

	 	John Edel 	 	 	 	Name:
	 	John M. Vuko
	 

	 	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Title:

	 	Senior Vice President 	 	 	 	Title:
	 	Vice President of Finance and Chief Financial Officerexv10w3

 

Exhibit 10.3

SEVERANCE AGREEMENT

          The Severance Agreement is made and entered into by and between Bonnie Charpentier (“Ms.
Charpentier) and Genitope Corporation (“the Company”).

          1. Employee Status. Ms. Charpentier was an employee of the Company until December 5,
2006 (“the Termination Date”).

          2. Purpose of Agreement. By this Agreement, the parties intend to fully and finally
resolve all issues, claims and obligations between them. The parties have entered into this
Agreement based on the promises and covenants contained herein.

          3. Severance Payment. In accordance with the terms of this Agreement, the Company
will pay to Ms. Charpentier a total sum equivalent to nine (9) months of her final base salary
(i.e., One Hundred and Eighty Three Thousand Dollars [$183,000], less taxes) by continuing her
regular base pay ($10,166.67, less taxes) by direct deposit on or about the Company’s regular
paydays (“Severance Checks”) during that period. These payments will be made regardless of whether
Ms. Charpentier obtains another job outside of the Company.

          4.  COBRA. Ms. Charpentier has the right to convert her Company-sponsored health
insurance pursuant to COBRA; assuming she timely and properly submits her COBRA application, the
Company will pay her premiums thereunder for the first nine (9) months on her behalf, granted she
fully executes this agreement. Again, these payments will be made regardless of whether Ms.
Charpentier obtains another job outside of the Company.

          5. Outstanding Options. Ms. Charpentier acknowledges that she holds the stock options
(the “Options”) set forth on Exhibit A attached hereto and incorporated herein by

 

 

this reference. Ms. Charpentier acknowledges and agrees that she has no other options or
other rights received from the Company to purchase any stock or securities of the Company. Ms.
Charpentier’s outstanding stock options will be partially vested as of the Termination Date and no
additional vesting will occur following the Termination Date. The Board of Directors of the
Company has approved, contingent upon the execution of this Agreement and Ms. Charpentier’s not
exercising her right of revocation as set forth in paragraph 16(b) of this Agreement, an amendment
to the terms of the Options to extend the period during which Ms. Charpentier may exercise her
Options from three months following the Termination Date to December 31, 2007. Therefore, any
Options that are vested in whole or in part as of the date hereof must be exercised, to the extent
vested, on or before December 31, 2007, the date such vested Options will expire. She understands
and agrees that, to the extent that the Options are unvested as of the Termination Date, such
Options, or unvested portions thereof, may not be exercised and will expire on the Termination
Date. Ms. Charpentier acknowledges and agrees that she does not enter into this Agreement on the
basis of or in reliance in any way on any representation or assurance of the Company or any
officer, director, employee or agent of the Company regarding the current or future value of her
Options or of any stock or securities of the Company.

          6. Waiver of Future Employment. Ms. Charpentier hereby waives any right of future
employment with the Company and agrees not to apply for such.

          7. No Solicitation. Ms. Charpentier further agrees that for the two-year period
following the Termination Date, she will not directly or indirectly solicit or encourage any
employee of the Company to work for any entity or individual other than the Company.

 

 

          8. Employment References. Should any prospective employer of Ms. Charpentier seek a
job reference regarding her, Ms. Charpentier agrees to direct such person or persons to the
Company’s Human Resources Department, which shall provide only the dates of Ms. Charpentier’s
employment with the Company and the last Company position she held.

          9. Confidentiality of Company Information. Ms. Charpentier acknowledges, agrees and
warrants that she will continue to maintain the confidentiality of all confidential and proprietary
information of the Company and shall abide by the terms and conditions of the Proprietary
Information and Inventions Agreement between her and the Company which she executed on October
26th, 2001, and which is attached hereto as Exhibit B. Ms. Charpentier further warrants
and represents that to the best of her knowledge she has returned to the Company all confidential
and proprietary information in her custody or possession. She further agrees that if she discovers
that she has retained any tangible property of the Company, she shall promptly notify the Company
of such in writing and will take reasonable steps in accordance with the Company’s instructions to
return such property to the Company. The provisions of this paragraph shall remain in effect at
all times in the future.

          10. Confidentiality of Agreement. Ms. Charpentier warrants and agrees, absolutely and
unconditionally, that she will keep the terms of this Agreement and the amount of money and
consideration she is receiving pursuant to this Agreement completely confidential and that she has
done so, with the exception that she may disclose or have disclosed its terms and/or the amount of
money and/or consideration she is receiving pursuant to this Agreement in confidence to her spouse,
attorneys, tax preparers, governmental taxing authorities, and as may be required by law. The
Company, on behalf of its officers, likewise agrees to keep the terms and/or consideration being
given pursuant to this Agreement confidential except that it may

 

 

disclose such to its counsel, tax preparers, governmental taxing authorities, and as may be
required by law. Notwithstanding the foregoing, Ms. Charpentier understands that the Company is
required by applicable securities laws to disclose the provisions of this Agreement in filings,
including the Company’s proxy statement, with the Securities and Exchange Commission (“SEC”),
including potentially filing a copy of this Agreement with the SEC.

          11. All Wages Paid. Ms. Charpentier acknowledges that all wages, including unused,
accrued vacation pay, due her from the Company as of her Termination Date have been paid to her.

          12. No Admission of Liability. By providing this Agreement to Ms. Charpentier, the
Company does not admit any liability to Ms. Charpentier or anyone. Similarly, Ms. Charpentier does
not admit any liability to the Company or anyone.

          13. Non-Disparagement. Ms. Charpentier agrees that she will not make any disparaging
or defamatory remarks about the Company or its affiliates, or their respective managers, directors,
officers, employees, agents or representatives to anyone in the future. The officers and the Board
of the Company similarly agree not to make any disparaging or defamatory remarks about Ms.
Charpentier to anyone outside of the Company. The parties further agree not to act in any way that
might damage the other.

          14. Release.

 

 

               (a) Ms. Charpentier hereby agrees that all rights under section 1542 of the Civil Code of the
State of California (“Civil Code section 1542”) and any similar federal, state and/or local laws
are hereby waived by her. Civil Code section 1542 provides as follows:

A general release does not extend to claims which the creditor does
not know or suspect to exist in his/her favor at the time of
executing the release, which if known by him/her must have
materially affected his/her settlement with the debtor.

(b) Notwithstanding the provisions of section 1542 of the California Civil Code or any similar or
federal, state and/or local laws, in order to provide a complete and full release, Ms. Charpentier
hereby irrevocably and unconditionally releases and forever discharges the Company and each and all
of its affiliates, and each of their respective officers, agents, directors, shareholders,
managers, insurers, employees and representatives, from all claims, issues and obligations, known
and unknown, suspected and unsuspected, statutory and nonstatutory, which Ms. Charpentier at any
time heretofore had or claimed to have or which she may have or claim to have regarding events that
have occurred prior to the time she executes this Agreement including, but not limited to, claims,
issues and/or obligations in any way connected with or based on Ms. Charpentier’s employment with
the Company or the termination of that employment. This release includes but is not limited to
releasing all claims Ms. Charpentier might have under all state, federal and local laws pertaining
to discrimination, harassment, the California Labor Code, family and medical leave laws, wage and
hour laws, disability laws, civil rights laws, as well as laws pertaining to claims of or for
emotional distress, defamation, breach of contract, breach of covenant of good faith and fair
dealing, as well as equal pay laws and laws pertaining to wrongful discharge. It is expressly
understood by Ms. Charpentier that among the various rights and claims being waived in this release
are those arising under the Age Discrimination in Employment Act of 1967. Ms. Charpentier
understands that rights or claims

 

 

under this law that may arise after the date this Agreement is executed by her are not waived. Ms.
Charpentier also understands that nothing in this Agreement is to be construed to interfere with
Ms. Charpentier’s ability to file a charge with the Equal Employment Opportunity Commission
concerning this Agreement or any conduct released herein, but acknowledges that by this Agreement
she waives any ability to further collect, directly or indirectly, any monetary or nonmonetary
award based on any conduct or omissions against the Company or any individual or entity released in
this Agreement. 

          15. Execution. To be effective, Ms. Charpentier must initial the lower right-hand
corner of each page of this Agreement and sign and date it at its end, then return the executed
original to Denise Taylor of the Company, by 5:00 p.m. PST on December 26, 2006, or it will be
deemed void.

          16. Consideration Period/Right to Consult Counsel/Rescission Period.

               (a) Ms. Charpentier understands that she is being given the opportunity to consider this
Agreement for a full twenty-one (21) days from her receipt of this Agreement. She is advised to
consult with an attorney before doing so if she so chooses. Ms. Charpentier hereby acknowledges
that she may execute this Agreement at any time prior to the expiration of the 21-day
period. She further acknowledges that she is executing this Agreement voluntarily, without any
threat or coercion from anyone.

               (b) Ms. Charpentier further understands that she has a full seven (7) days following her
execution of this Agreement to revoke her consent to this Agreement by notifying Denise Taylor of
the Company of such in writing within that period, and is hereby advised that this Agreement shall
not be effective or enforceable until this seven-day revocation period has expired (“the Effective
Date”). The Severance Checks described in paragraph 3 of

 

 

this Agreement will be provided to Ms. Charpentier within ten (10) calendar days after the
Effective Date of this Agreement.

          17. Entire Agreement. This Agreement sets forth the entire understandings between the
parties hereto, and supersedes any other statements, agreements or understandings between the
parties whatsoever, including, but not limited to, any prior offer of employment with the Company.

          18. Severability. If any term, clause or provision of this Agreement is construed to
be or adjudged invalid, void or unenforceable, such term, clause or provision will be construed as
severed from this Agreement, and the remaining terms, clauses and provisions will remain in full
force and effect.

          19. Modification. This Agreement may be modified only in a writing signed by both
parties.

          20. Governing Law. This Agreement shall be construed under applicable California
laws.

	 	 	 
	IT IS SO AGREED:
	 	 
	 
	 	 
	Date: 12/22/06

	 	/s/ Bonnie Charpentier
	 

	 	 
	 

	 	BONNIE CHARPENTIER
	 
	 	 
	Date: 12/22/06

	 	On behalf of
	 

	 	GENITOPE CORPORATION:
	 
	 	 
	 

	 	/s/ Dan W. Denney, Jr., Ph.D.
	 

	 	 
	 

	 	DAN W. DENNEY, JR., Ph.D.
	 

	 	Chairman & CEO

 

 

Exhibit A

Option Summary for Bonnie Charpentier

December 5, 2006

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Vested and Exercisable
	Grant Date	 	Shares	 	Price	 	As of 12/05/06
	12-11-01
	 	 	40,000	 	 	$	1.20	 	 	 	20,000	 
	07-01-03
	 	 	11,666	 	 	$	1.80	 	 	 	9,422	 
	08-22-03
	 	 	28,416	 	 	$	2.70	 	 	 	21,088	 
	07-21-04
	 	 	70,000	 	 	$	9.72	 	 	 	40,833	 
	04-01-05
	 	 	20,000	 	 	$	12.50	 	 	 	8,333	 
	04-27-06
	 	 	25,000	 	 	$	8.00	 	 	 	3,645

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