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Exhibit 10.1
SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT
THIS SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”), dated as of June 22, 2021 (the “Amendment Effective Date”), is made among Rubius Therapeutics, Inc., a Delaware corporation (the “Borrower”), SLR Investment Corp., fka Solar Capital Ltd., a Maryland corporation (“SLR”), in its capacity as collateral agent (in such capacity, together with its successors and assigns in such capacity, “Collateral Agent”) and the Lenders listed on Schedule 1.1 of the Loan and Security Agreement (as defined below) or otherwise a party hereto from time to time including SLR in its capacity as a Lender (each a “Lender” and collectively, the “Lenders”).
Borrower, the Lenders and Collateral Agent are parties to a Loan and Security Agreement dated as of December 21, 2018 (as amended, restated or modified from time to time, the “Loan and Security Agreement”).  Borrower has requested that the Lenders agree to certain amendments to the Loan and Security Agreement.  The Lenders have agreed to such request, subject to the terms and conditions hereof.
Accordingly, the parties hereto agree as follows:
SECTION 1Definitions; Interpretation.
(a)Terms Defined in Loan and Security Agreement.  All capitalized terms used in this Amendment (including in the recitals hereof) and not otherwise defined herein shall have the meanings assigned to them in the Loan and Security Agreement.
(b)Interpretation.  The rules of interpretation set forth in Section 1.1 of the Loan and Security Agreement shall be applicable to this Amendment and are incorporated herein by this reference.
SECTION 2Amendments to the Loan and Security Agreement. 
(a)The Loan and Security Agreement shall be amended as follows effective as of the Amendment Effective Date:
(i)Amended Definitions.  The following definitions are hereby amended as follows:
“Amortization Date” is July 1, 2024.
“Applicable Rate” means (a) 5.50% plus (b) the greater of (i) 2.10% or (ii) the rate per annum rate published by the Intercontinental Exchange Benchmark Administration Ltd. (the “Service”) (or on any successor or substitute page of such Service, or any successor to or substitute for such Service, as determined by Collateral Agent) for a term of one month, which determination by Collateral Agent shall be conclusive in the absence of manifest error; provided that if, at any time, Lenders notify Collateral Agent that Lenders have determined that (x) Lenders are unable to determine or ascertain such rate, (y) the applicable regulator has made public statements to the effect that the rate published by the Service is no longer used for determining interest rates for loans or (z) by reason of circumstances affecting the foreign exchange and interbank markets generally, deposits in eurodollars in the applicable amounts or for the relative maturities are not being offered for such period, then the Applicable Rate shall be equal to an alternate benchmark rate and spread agreed between Collateral Agent and Borrowers (which may include SOFR, to the extent publicly available quotes of SOFR exist at the relevant time), giving due consideration to (A) market convention or (B) selection, endorsement or recommendation by a relevant Governmental Body.  Such alternative benchmark rate and spread shall be binding unless the Required Lenders object within five (5) days following notification of such amendment.
“Maturity Date” is June 1, 2026.

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“Obligations” are all of Borrower’s obligations to pay when due any debts, principal, interest, Lenders’ Expenses, the Prepayment Premium, all fees under the Fee Letter, the Second Amendment Fee and any other amounts Borrower owes the Collateral Agent or the Lenders now or later, in connection with, related to, following, or arising from, out of or under, this Agreement or, the other Loan Documents, or otherwise, and including interest accruing after Insolvency Proceedings begin (whether or not allowed) and debts, liabilities, or obligations of Borrower assigned to the Lenders and/or Collateral Agent in connection with this Agreement and the other Loan Documents, and the performance of Borrower’s duties under the Loan Documents.
“Prepayment Premium” is, with respect to any Term Loan subject to prepayment prior to the Maturity Date, whether by mandatory or voluntary prepayment, acceleration or otherwise, an additional fee payable to the Lenders in amount equal to:
(i)  for a prepayment made on or after the Second Amendment Effective Date through and including the first anniversary of the Second Amendment Effective Date, one percent (1.00%) of the principal amount of such Term Loan prepaid; 
(ii)  for a prepayment made on any date which is after the first anniversary of the Second Amendment Effective Date and through and including the second anniversary of the Second Amendment Effective Date, one half of one percent (0.50%) of the principal amount of such Term Loan prepaid; and 
(iii)  for a prepayment made on any date which is after the second anniversary of the Second Amendment Effective Date prior to the Maturity Date, one quarter of one percent (0.25%) of the principal amount of the Term Loans prepaid.
Notwithstanding the foregoing, Collateral Agent and Lender agree to waive the Prepayment Premium if SLR (in its sole and absolute discretion) agrees in writing to refinance the Term Loans prior to the Maturity Date.
(ii)New Definitions.  
“Second Amendment” means that certain Second Amendment to Loan and Security Agreement, Fee Letter and Exit Fee Agreement, dated as of the Second Amendment Effective Date, by and among Borrower, the lenders party thereto from time to time and Collateral Agent.
“Second Amendment Effective Date” means June 22, 2021.
“Second Amendment Fee” means $150,000 which shall be fully-earned and due and payable on the Second Amendment Effective Date.
“Fourth Draw Period” is the period commencing on the Second Amendment Effective Date and ending on the earlier of (a) the Maturity Date or (b) the occurrence of an Event of Default.
(iii)Section 1.4.  Section 1.4 of the Loan and Security Agreement is hereby amended by adding the new definition set forth below to the table therein.
	“Term D Loan”
	Section 2.2(a)(iv)

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(iv)Section 2.2.  Section 2.2(a) of the Loan and Security Agreement is hereby amended by amending and restated clause (iii) as set forth below and adding new clause (iv) as set forth below.
(iii)  Subject to the terms and conditions of this Agreement, the Lenders agree, severally and not jointly, during the Third Draw Period, to make term loans to Borrower in an aggregate principal amount of up to Twenty Five Million Dollars ($25,000,000.00) according to each Lender’s Term C Loan commitment as set forth on Schedule 1.1 hereto (such term loans are hereinafter referred to 

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singly as a “Term C Loan”, and collectively as the “Term C Loans”).  After repayment of any Term C Loan, no Term C Loan may be re-borrowed.
(iv)  Subject to the terms and conditions of this Agreement, the Lenders agree, severally and not jointly, during the Fourth Draw Period, to consider, in their sole and unfettered discretion, making term loans to Borrower in an aggregate principal amount of up to Thirty Five Million Dollars ($35,000,000.00) according to each Lender’s Term D Loan amount as set forth on Schedule 1.1 hereto (such term loans are hereinafter referred to singly as a “Term D Loan”, and collectively as the “Term D Loans”; each Term A Loan, Term B Loan, Term C Loan or Term D Loan is hereinafter referred to singly as a “Term Loan” and the Term A Loans, the Term B Loans, the Term C Loans and the Term D Loans are hereinafter referred to collectively as the “Term Loans”).  After repayment of any Term D Loan, no Term D Loan may be re-borrowed.
(v)Section 2.4.  Section 2.4 of the Loan and Security Agreement is hereby amended by adding new clause (d) as follows:
(d)  Second Amendment Fee.  The Second Amendment Fee, when due hereunder to be shared between the Lenders in accordance with their respective Pro Rata Shares.
(vi)Schedule 1.1.  Schedule 1.1 to the Loan and Security Agreement is hereby amended and restated as set forth on Exhibit A.
(b)References Within Loan and Security Agreement.  Each reference in the Loan and Security Agreement to “this Agreement” and the words “hereof,” “herein,” “hereunder,” or words of like import, shall mean and be a reference to the Loan and Security Agreement as amended by this Amendment.
SECTION 3Conditions of Effectiveness.  The effectiveness of this Amendment shall be subject to the satisfaction of each of the following conditions precedent: 
(a)Fees and Expenses.  The Borrower shall have paid (i) all invoiced costs and expenses then due in accordance with Section 5(e), and (ii) all other fees, costs and expenses, if any, due and payable as of the Amendment Effective Date under the Loan and Security Agreement.
(b)This Amendment.  Collateral Agent shall have received this Amendment, executed by Collateral Agent, the Lenders and the Borrower.
(c)Perfection Certificate.  Collateral Agent and the Lenders shall have received an updated Perfection Certificate attached hereto as Exhibit B.
(d)Officer’s Certificate.  Collateral Agent shall have received a certificate of an officer of Borrower with respect to incumbency and resolutions authorizing the execution and delivery of this Amendment, in form acceptable to Collateral Agent and the Lenders.
(e)Legal Opinion.  A legal opinion of Borrower’s counsel, in form and substance satisfactory to Collateral Agent.
(f)Representations and Warranties; No Default.  On the Amendment Effective Date, after giving effect to the amendment of the Loan and Security Agreement contemplated hereby:
(i)The representations and warranties contained in Section 4 shall be true and correct on and as of the Amendment Effective Date as though made on and as of such date; and
(ii)There exist no Events of Default or events that with the passage of time would result in an Event of Default.

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SECTION 4Representations and Warranties.  To induce the Lenders to enter into this Amendment, the Borrower hereby confirms, as of the date hereof, (a) that the representations and warranties made by it in Section 5 of the Loan and Security Agreement and in the other Loan Documents are true and correct in all material respects; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; (b) that there has not been and there does not exist a Material Adverse Change; and (c) that the information included in the Perfection Certificate delivered to Collateral Agent on the Effective Date remains true and correct. For the purposes of this Section 4, (i) each reference in Section 5 of the Loan and Security Agreement to “this Agreement,” and the words “hereof,” “herein,” “hereunder,” or words of like import in such Section, shall mean and be a reference to the Loan and Security Agreement as amended by this Amendment, and (ii) any representations and warranties which relate solely to an earlier date shall not be deemed confirmed and restated as of the date hereof (provided that such representations and warranties shall be true, correct and complete in all material respects as of such earlier date).
SECTION 5Miscellaneous.
(a)Loan Documents Otherwise Not Affected; Reaffirmation; No Novation.  
(i)Except as expressly amended pursuant hereto or referenced herein, the Loan and Security Agreement and the other Loan Documents shall remain unchanged and in full force and effect and are hereby ratified and confirmed in all respects.  The Lenders’ and Collateral Agent’s execution and delivery of, or acceptance of, this Amendment shall not be deemed to create a course of dealing or otherwise create any express or implied duty by any of them to provide any other or further amendments, consents or waivers in the future.  
(ii)Borrower hereby expressly (1) reaffirms, ratifies and confirms its Obligations under the Loan and Security Agreement and the other Loan Documents, (2) reaffirms, ratifies and confirms the grant of security under Section 4.1 of the Loan and Security Agreement, (3) reaffirms that such grant of security in the Collateral secures all Obligations under the Loan and Security Agreement, and with effect from (and including) the Amendment Effective Date, such grant of security in the Collateral: (x) remains in full force and effect notwithstanding the amendments expressly referenced herein; and (y) secures all Obligations under the Loan and Security Agreement, as amended by this Amendment, and the other Loan Documents, (4) agrees that this Amendment shall be a “Loan Document” under the Loan and Security Agreement and (5) agrees that the Loan and Security Agreement and each other Loan Document shall remain in full force and effect following any action contemplated in connection herewith.
(iii)This Amendment is not a novation and the terms and conditions of this Amendment shall be in addition to and supplemental to all terms and conditions set forth in the Loan Documents. Nothing in this Amendment is intended, or shall be construed, to constitute an accord and satisfaction of Borrower’s Obligations under or in connection with the Loan and Security Agreement and any other Loan Document or to modify, affect or impair the perfection or continuity of Collateral Agent’s security interest in, (on behalf of itself and the Lenders) security titles to or other liens on any Collateral for the Obligations.
(b)Conditions.  For purposes of determining compliance with the conditions specified in Section 4, each Lender that has signed this Amendment shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless Collateral Agent shall have received notice from such Lender prior to the Amendment Effective Date specifying its objection thereto.
(c)Release.  In consideration of the agreements of Collateral Agent and each Lender contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Borrower, on behalf of itself and its successors, assigns, and other legal representatives, hereby fully, absolutely, unconditionally and irrevocably releases, remises and forever discharges Collateral Agent and each Lender, and its successors and assigns, and its present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives (Collateral Agent, Lenders and all such other persons being hereinafter referred to collectively as the “Releasees” and individually as a “Releasee”), of and from all demands, actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever of every name and nature, known or unknown, suspected or unsuspected, both at 

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law and in equity, which Borrower, or any of its successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the day and date of this Amendment, including, without limitation, for or on account of, or in relation to, or in any way in connection with the Loan and Security Agreement, or any of the other Loan Documents or transactions thereunder or related thereto.  Borrower understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.  Borrower agrees that no fact, event, circumstance, evidence or transaction which could now be asserted or which may hereafter be discovered shall affect in any manner the final, absolute and unconditional nature of the release set forth above.  
(d)No Reliance.  The Borrower hereby acknowledges and confirms to Collateral Agent and the Lenders that the Borrower is executing this Amendment on the basis of its own investigation and for its own reasons without reliance upon any agreement, representation, understanding or communication by or on behalf of any other Person.
(e)Costs and Expenses.  The Borrower agrees to pay to Collateral Agent on the Amendment Effective Date, the reasonable out-of-pocket costs and expenses of Collateral Agent and the Lenders party hereto, and the reasonable and documented fees and disbursements of counsel to Collateral Agent and the Lenders party hereto (including reasonable and documented allocated costs of internal counsel), in connection with the negotiation, preparation, execution and delivery of this Amendment and any other documents to be delivered in connection herewith on the Amendment Effective Date or after such date.
(f)Binding Effect.  This Amendment binds and is for the benefit of the successors and permitted assigns of each party.  
(g)Governing Law.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL IN ALL RESPECTS BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES that would result in the application of any laws other than the laws OF the State of New York), INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, REGARDLESS OF THE LOCATION OF THE COLLATERAL.
(h)Complete Agreement; Amendments; Exit Fee Agreement.  This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements with respect to such subject matter.  All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents.  For the avoidance of doubt and notwithstanding anything to the contrary in this Amendment, Borrower (a) reaffirms its obligations under the Exit Fee Agreement, including without limitation its obligation to pay the Exit Fee (as defined in the Exit Fee Agreement) if and when due thereunder, and (b) agrees that the defined term “Loan Agreement” as defined in the Exit Fee Agreement shall on and after the Amendment Effective Date mean the Loan and Security Agreement as amended by this Amendment and as may be amended, restated or modified from time to time on or after the Amendment Effective Date.
(i)Severability of Provisions.  Each provision of this Amendment is severable from every other provision in determining the enforceability of any provision.
(j)Counterparts.  This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Amendment.  Delivery of an executed counterpart of a signature page of this Amendment by facsimile, portable document format (.pdf) or other electronic transmission will be as effective as delivery of a manually executed counterpart hereof.
(k)Loan Documents. This Amendment and the documents related thereto shall constitute Loan Documents.

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(l)Electronic Execution of Certain Other Documents.  The words “execution,” “execute”, “signed,” “signature,” and words of like import in or related to any document to be signed in connection with this Amendment and the transactions contemplated hereby (including without limitation assignments, assumptions, amendments, waivers and consents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Collateral Agent, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.
[Balance of Page Intentionally Left Blank; Signature Pages Follow] 
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IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment, as of the date first above written.
BORROWER:
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RUBIUS THERAPEUTICS, INC.,
as Borrower
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By:  /s/ Jose Carmona       ________________________
Name: Jose Carmona        ­­­­­­­­­­­­________________________
Title:  Chief Financial Officer_______________________
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[Signature Page to Second Amendment (Solar/Rubius)]
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COLLATERAL AGENT:
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SLR INVESTMENT CORP.,
as Collateral Agent 
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By:  /s/ Anthony J. Storino________________________
Name: Anthony J. Storino ­­­­­­­­­­­­________________________
Title:  Authorized Signatory_______________________
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[Signature Page to Second Amendment (Solar/Rubius)]
LENDERS:
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SLR INVESTMENT CORP.,
as Lender
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By:  /s/ Anthony J. Storino________________________
Name: Anthony J. Storino ­­­­­­­­­­­­________________________
Title:  Authorized Signatory_______________________
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SUNS SPV LLC,
as Lender
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By:  /s/ Anthony J. Storino________________________
Name: Anthony J. Storino ­­­­­­­­­­­­________________________
Title:  Authorized Signatory_______________________
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SCP PRIVATE CREDIT INCOME FUND SPV LLC
as Lender
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By:  /s/ Anthony J. Storino________________________
Name: Anthony J. Storino ­­­­­­­­­­­­________________________
Title:  Authorized Signatory_______________________
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SCP PRIVATE CREDIT INCOME BDC SPV LLC
as Lender
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By:  /s/ Anthony J. Storino________________________
Name: Anthony J. Storino ­­­­­­­­­­­­________________________
Title:  Authorized Signatory_______________________
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SCP PRIVATE CORPORATE LENDING FUND SPV LLC
as Lender
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By:  /s/ Anthony J. Storino________________________
Name: Anthony J. Storino ­­­­­­­­­­­­________________________
Title:  Authorized Signatory_______________________
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SCP CAYMAN DEBT MASTER FUND SPV LLC
as Lender
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By:  /s/ Anthony J. Storino________________________

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Name: Anthony J. Storino ­­­­­­­­­­­­________________________
Title:  Authorized Signatory_______________________
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[Signature Page to Second Amendment (Solar/Rubius)]

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Exhibit A
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SCHEDULE 1.1

Lenders, Commitments and Amounts
	 
	Term A Loans
	 

	Lender
	Term Loan Commitment
	Commitment Percentage

	SLR INVESTMENT CORP.
	$13,430,457.00 
	53.72%

	SUNS SPV LLC
	$2,060,528.00 
	8.24%

	SCP PRIVATE CREDIT INCOME FUND SPV LLC
	$3,493,239.00 
	13.97%

	SCP PRIVATE CREDIT INCOME BDC SPV LLC
	$2,623,954.00 
	10.50%

	SCP PRIVATE CORPORATE LENDING FUND SPV LLC
	$2,079,845.00 
	8.32%

	SCP CAYMAN DEBT MASTER FUND SPV LLC
	$1,311,977.00 
	5.25%

	TOTAL
	$25,000,000.00 
	100.00%

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	Term B Loans
	 

	Lender
	Term Loan Commitment
	Commitment Percentage

	SLR INVESTMENT CORP.
	$13,430,457.00 
	53.72%

	SUNS SPV LLC
	$2,060,528.00 
	8.24%

	SCP PRIVATE CREDIT INCOME FUND SPV LLC
	$3,493,239.00 
	13.97%

	SCP PRIVATE CREDIT INCOME BDC SPV LLC
	$2,623,954.00 
	10.50%

	SCP PRIVATE CORPORATE LENDING FUND SPV LLC
	$2,079,845.00 
	8.32%

	SCP CAYMAN DEBT MASTER FUND SPV LLC
	$1,311,977.00 
	5.25%

	TOTAL
	$25,000,000.00 
	100.00%

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	Term C Loans
	 

	Lender
	Term Loan Commitment
	Commitment Percentage

	SLR INVESTMENT CORP.
	$13,430,457.00 
	53.72%

	SUNS SPV LLC
	$2,060,528.00 
	8.24%

	SCP PRIVATE CREDIT INCOME FUND SPV LLC
	$3,493,239.00 
	13.97%

	SCP PRIVATE CREDIT INCOME BDC SPV LLC
	$2,623,954.00 
	10.50%

	SCP PRIVATE CORPORATE LENDING FUND SPV LLC
	$2,079,845.00 
	8.32%

	SCP CAYMAN DEBT MASTER FUND SPV LLC
	$1,311,977.00 
	5.25%

	TOTAL
	$25,000,000.00 
	100.00%

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	Total Commitments (all committed Term Loans)
	 

	Lender
	Term Loan Commitment
	Commitment Percentage

	SLR INVESTMENT CORP.
	$40,291,371.00 
	53.72%

	SUNS SPV LLC
	$6,181,584.00 
	8.24%

	SCP PRIVATE CREDIT INCOME FUND SPV LLC
	$10,479,717.00 
	13.97%

	SCP PRIVATE CREDIT INCOME BDC SPV LLC
	$7,871,862.00 
	10.50%

	SCP PRIVATE CORPORATE LENDING FUND SPV LLC
	$6,239,535.00 
	8.32%

	SCP CAYMAN DEBT MASTER FUND SPV LLC
	$3,935,931.00 
	5.25%

	TOTAL
	$75,000,000.00 
	100.00%

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	Term D Loans*
	 

	Lender
	Term Loan Amount
	Amount Percentage

	SLR INVESTMENT CORP.
	$18,802,640.00 
	53.72%

	SUNS SPV LLC
	$2,884,739.00 
	8.24%

	SCP PRIVATE CREDIT INCOME FUND SPV LLC
	$4,890,535.00 
	13.97%

	SCP PRIVATE CREDIT INCOME BDC SPV LLC
	$3,673,535.00 
	10.50%

	SCP PRIVATE CORPORATE LENDING FUND SPV LLC
	$2,911,783.00 
	8.32%

	SCP CAYMAN DEBT MASTER FUND SPV LLC
	$1,836,768.00 
	5.25%

	TOTAL
	$35,000,000.00 
	100.00%

* Funding of the Term D Loans subject to approval by the Lenders in their sole and unfettered discretion.
	 
	Total Amount (all Term Loans)
	 

	Lender
	Term Loan Amount
	Amount Percentage

	SLR INVESTMENT CORP.
	$59,094,011.00 
	53.72%

	SUNS SPV LLC
	$9,066,323.00 
	8.24%

	SCP PRIVATE CREDIT INCOME FUND SPV LLC
	$15,370,252.00 
	13.97%

	SCP PRIVATE CREDIT INCOME BDC SPV LLC
	$11,545,397.00 
	10.50%

	SCP PRIVATE CORPORATE LENDING FUND SPV LLC
	$9,151,318.00 
	8.32%

	SCP CAYMAN DEBT MASTER FUND SPV LLC
	$5,772,699.00 
	5.25%

	TOTAL
	$110,000,000.00 
	100.00%

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Exhibit B
Perfection Certificate

​pgc-ex102_86.htm

 

Exhibit 10.2

AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

This Employment Agreement (the “Agreement”) is made and entered into, effective as of August 5, 2021 (the “Effective Date”), by and among Peapack-Gladstone Financial Corporation, a New Jersey corporation (the “Company”), Peapack-Gladstone Bank, a New Jersey-chartered commercial bank (the “Bank”), and ______________ (“Executive”).  References to the “Bank” shall refer to both the Bank and the Company except where context indicates otherwise.  

RECITALS

WHEREAS, the Bank desires to continue to employ Executive in an executive capacity in the conduct of its businesses, and Executive desires to be so employed on the terms contained herein;

WHEREAS, the Bank, the Company, and Executive previously entered into an employment agreement, dated _____________ __, _______ (the “Prior Employment Agreement”);

WHEREAS, the Bank, the Company, and Executive previously entered into a change in control agreement, dated _____________ __, _______, (the “Prior Change in Control Agreement” and together with the Prior Employment Agreement, the “Prior Agreements”), for avoidance of doubt, the term Prior Agreements does not include the Retirement Transition Agreement, and the accompanying Side Letter, entered into by and amount the Bank, the Company and Executive dated ____ (the “Retirement Transition Agreement”);

WHEREAS, as of the Effective Date, the Prior Agreements shall terminate and shall be null and void and of no further effect.  

NOW, THEREFORE, in consideration of the mutual covenants herein contained, and upon the other terms and conditions hereinafter provided, the parties hereby agree as follows:

1.POSITION AND RESPONSIBILITIES.

(a)Employment.  During the Term (as defined in Section 2(a) below), Executive agrees to serve as _______________________ of the Bank and the Company or any successor executive position with the Bank and the Company that is agreed to and consented by Executive (the “Executive Position”), and will perform the duties and will have all powers associated with Executive Position as are appropriate for a person in the position of the Executive Position, as well as those as shall be assigned by the Board of Directors of Company or the Bank (the “Board”).  Executive will report directly to the [Board/Chief Executive Officer].  During the period provided in this Agreement, Executive also agrees to serve, if elected, as an officer, director or trustee of any subsidiary or affiliate of the Bank and in such capacity carry out such duties and responsibilities reasonably appropriate to that office.   

 

(b)Responsibilities.  During Executive’s employment hereunder, Executive will be employed on a full-time basis and devote Executive’s full business time and best efforts, business judgment, skill and knowledge to the performance of Executive’s duties and responsibilities related to the Executive Position.  Except as otherwise provided in Section 1(c), Executive will not engage in any other business activity during the term of this Agreement except as may be approved by the Board.

(c)Principal Place of Employment.  Executive’s principal place of employment during the Term shall be at 500 Hills Drive, Bedminster, NJ 07921 or any other location(s) at which the Bank and Executive mutually agree.  

(d)Service on Other Boards and Committees.  The Bank encourages participation by Executive on community boards and committees and in activities generally considered to be in the public interest, but the Board shall have the right to approve or disapprove, in its sole discretion, Executive’s participation on such boards and committees.  

2.TERM.

(a)Term and Annual Renewal.  Subject to Sections 2(b) and 2(c), the term of this Agreement and the period of Executive’s employment hereunder will begin as of the Effective Date and will continue through December 31, 2023 (the “Term”).  Commencing on January 1, 2022 and continuing on each January 1st thereafter (the “Renewal Date”), the Term will extend automatically for one additional year, so that the Term will be three (3) years from such Renewal Date, unless either the Bank or Executive by written notice to the other given at least 30 days prior to such Renewal Date notifies the other of its intent not to extend the same.  If notice not to extend is given by either the Bank or Executive, this Agreement will terminate as of the last day of the then current Term.  Reference herein to the “Term” shall refer to both such initial term and such extended terms.    

At least 30 days prior to each Renewal Date, the disinterested members of the Board will conduct a comprehensive performance evaluation and review of Executive for purposes of determining whether to take action regarding non-renewal of the Agreement, and the results thereof will be included in the minutes of the Board’s meeting.  

(b)Change in Control.  Notwithstanding anything in this Agreement to the contrary, in the event the Bank or the Company has entered into an agreement to effect a transaction that would be considered a Change in Control as defined under Section 5 hereof, the Term of this Agreement shall be extended automatically so that it is scheduled to expire no less than two (2) years beyond the effective time of the Change in Control, subject to extensions as set forth above in Section 2(a).  

(c)Continued Employment Following Expiration of Term.  Nothing in this Agreement mandates or prohibits a continuation of Executive’s employment following the expiration of the term of this Agreement, upon the terms and conditions as the Bank and Executive may mutually agree. 

 

2

 

3.COMPENSATION, BENEFITS AND REIMBURSEMENT.

(a)Base Salary.  In consideration of Executive’s performance of the responsibilities and duties set forth in this Agreement, Executive shall receive an annual base salary at a rate per annum equal to $___________ per year (“Base Salary”).  Such Base Salary shall be payable in accordance with the customary payroll practices of the Bank.  Executive’s Base Salary shall be reviewed annually for appropriate increases by the Chief Executive Officer, the Board or Compensation Committee of the Board (the “Compensation Committee”), as appropriate, pursuant to the normal performance review policies for senior level executives.  During Term, Executive’s Base Salary may be increased but not be decreased unless written consent is received from Executive.  Any changes to Base Salary pursuant to this Section 3(a) shall become the “Base Salary” for purposes of this Agreement.

 

(b)Bonus and Incentive Compensation.  Executive shall be eligible to receive an annual bonus during the Term pursuant to Executive’s participation in the Executive Performance Plan or any other short-term and/or long-term incentive program in which senior management is eligible to participate (collectively, referred to as the “Incentive Program”).  The annual bonus shall be based on the terms and conditions, including such performance goals, established by the Chief Executive Officer, the Board or the Compensation Committee, as appropriate, pursuant to the Incentive Program.  Nothing paid to Executive under the Incentive Program will be deemed to be in lieu of the other compensation to which Executive is entitled under this Agreement.  The terms of the Incentive Program shall determine the amount, time and manner of the payment of the bonuses earned thereunder.  

(c)Benefit Plans.  Executive will be entitled to participate in all employee benefit plans, arrangements and perquisites offered to salaried employees and senior level executives of the Bank, on the same terms and conditions as such plans are available to other salaried employees.  [Executive shall also be entitled to receive an annual contribution pursuant to the Deferred Compensation Retention Award Plan Agreement dated August 4, 2017, and as further amended, between the Bank and Executive (“the “Deferred Compensation Agreement”)].  Without limiting the generality of the foregoing provisions of this Section 3(c), Executive also will be entitled to participate in any employee benefit plans including but not limited to retirement plans, pension plans, profit-sharing plans, health-and-accident plans, or any other employee benefit plan or arrangement made available by the Bank in the future to management employees, subject to and on a basis consistent with the terms, conditions and overall administration of such plans and arrangements as applicable to other management employees.  Except as otherwise provided herein, the terms of the Bank’s benefit plans or arrangements, including the Deferred Compensation Agreement, shall determine the benefits payable thereunder, if any, to Executive, including following Executive’s termination of employment or retirement.

 

(d)Vacation.  Executive will be entitled to no less than six weeks of paid vacation time each year during the term of this Agreement measured on a calendar year basis, in accordance with the Bank’s customary practices, holidays and other paid absences in accordance with the Bank’s policies and procedures for officers.  Any unused paid time off during an annual period will be treated in accordance with the Bank’s personnel policies as in effect from time to time.  

 

(e)Expense Reimbursements.  The Bank will reimburse Executive for all reasonable travel, entertainment and other reasonable expenses incurred by Executive during the course of performing Executive’s obligations under this Agreement, including, without limitation, fees for memberships in such organizations as Executive and the Board mutually agree are necessary and appropriate in connection with the performance of Executive’s duties under this Agreement.  All reimbursements shall be made as soon as practicable upon substantiation of such expenses by Executive in accordance with the applicable policies and procedures of the Bank.  

3

 

	
4.
	
TERMINATION AND TERMINATION PAY.  

Subject to Section 5 of this Agreement which governs the occurrence of a Change in Control, Executive’s employment under this Agreement will terminate under the following circumstances:

(a)Death.  This Agreement and Executive’s employment with the Bank will terminate upon Executive’s death, in which event the Bank’s sole obligation shall be to pay or provide Executive’s estate or beneficiary any “Accrued Obligations.”  

For purposes of this Agreement, “Accrued Obligations” means the sum of: (i) any Base Salary earned through Executive’s Date of Termination, (ii) unpaid expense reimbursements (subject to, and in accordance with, Section 3(e) of this Agreement), (iii) unused paid time off that accrued through the Date of Termination, (iv) any earned but unpaid incentive compensation for the year immediately preceding the year of termination and (v) any vested benefits Executive may have under any employee benefit plan of the Bank through the Date of Termination, which vested benefits shall be paid and/or provided in accordance with the terms of such employee benefit plans.  Unless otherwise provided by the applicable employee benefit plan, the Accrued Obligations, if any, will be paid to Executive (or Executive’s estate or beneficiary) within 30 days following Executive’s Date of Termination.  Nothing in this Section shall entitle the Executive to any benefit or compensation under another plan, program or agreement, which would otherwise become cancelled or forfeited under the other plan, program or agreement.

(b)Disability.  The Bank shall be entitled to terminate Executive’s employment and this Agreement due to Executive’s Disability.  If Executive’s employment is terminated due to Executive’s Disability, the Bank’s sole obligation under this Agreement shall be to pay or provide Executive any Accrued Obligations.  For purposes of this Agreement, “Disability” means that Executive is deemed disabled for purposes of the Bank’s long-term disability plan or policy that covers Executive or is determined to be disabled by the Social Security Administration.   

(c)Termination for Cause.  The Board may immediately terminate Executive’s employment and this Agreement at any time for “Cause.”  In the event Executive’s employment is terminated for Cause, the Bank’s sole obligation will be to pay or provide to Executive any Accrued Obligations.  Termination for “Cause” means termination because of, in the good faith determination of the Board, Executive’s:

(i)material failure to perform the duties assigned to Executive related to the Executive Position or imposed upon Executive by applicable law, and such failure to perform constitutes self-dealing, willful misconduct or recklessness; 

4

(ii)committing an act of dishonesty in the performance of Executive’s duties related to the Executive Position or engaging in conduct materially detrimental to the business of the Bank; 

(iii)conviction of a felony or misdemeanor involving moral turpitude;

(iv)material failure to perform Executive’s duties related to the Executive Position, which such breach or failure is not remedied by Executive within 30 days after written demand from the Bank; 

(v)knowingly failure to follow lawful, written directives of the Board; or 

(vi)engagement in any material employment act or practice, including but not limited to sexual harassment, forbidden by the Bank in its employment manual as revised from time to time.  

(d)Resignation by Executive without Good Reason. Executive may resign from employment during the term of this Agreement without Good Reason upon at least 30 days prior written notice to the Board, provided, however, that the Bank may accelerate the Date of Termination upon receipt of written notice of Executive’s resignation.  In the event Executive resigns without Good Reason, the Bank’s sole obligation under this Agreement will be to pay or provide to Executive any Accrued Obligations.  

(e)Termination Without Cause or With Good Reason.

	
 
	
(i)
	
The Board may immediately terminate Executive’s employment at any time for a reason other than Cause (a termination “Without Cause”), and Executive may, by written notice to the Board, terminate this Agreement at any time within 90 days following an event constituting “Good Reason,” as defined below (a termination “With Good Reason”); provided, however, that the Bank will have 30 days to cure the “Good Reason” condition, but the Bank may waive its right to cure.  In the event of termination as described under Section 4(e)(i) during the Term and subject to the requirements of Section 4(e)(iii), the Bank will pay or provide Executive with the following:

(A)any Accrued Obligations; and

(B)a gross severance payment equal to the greater of: (1) two times Executive’s Base Salary in effect as of the Date of Termination; or (2) amount of Base Salary that Executive would have earned had Executive remained employed for the remaining Term (the “Severance Payment”).  The Severance Payment will be payable in equal installments in accordance with the Bank’s regular payroll practices during a two-year period, with the first payment to commence on the Bank’s first regular payroll date after the Release (as defined in Section 4(e)(iii)) is executed and becomes irrevocable.    

5

	
 
	
(ii)
	
“Good Reason” exists if, without Executive’s express written consent, any of the following occurs:

	
 
	
(A)
	
a material reduction in Executive’s Base Salary;

	
 
	
(B)
	
a material reduction in Executive’s authority, duties or responsibilities from the position and attributes associated with the Executive Position; 

	
 
	
(C)
	
the Bank requiring Executive to be based primarily at any office or location resulting in an increase in Executive’s commute of 25 miles or more; or 

	
 
	
(D)
	
a material breach of this Agreement by the Bank.

	
 
	
(iii)
	
Notwithstanding anything to the contrary in Section 4(e)(i), Executive will not receive any payments or benefits under this Section 4(e) unless and until Executive executes a release of claims (the “Release”) against the Bank and any affiliate, and their officers, directors, successors and assigns, releasing said persons from any and all claims, rights, demands, causes of action, suits, arbitrations or grievances relating to the employment relationship, including claims under the Age Discrimination in Employment Act, but not including claims for benefits under tax-qualified plans or other benefit plans in which Executive is vested, claims for benefits required by applicable law or claims with respect to obligations set forth in this Agreement that survive the termination of this Agreement.  The Release must be executed and become irrevocable by the 60th day following the Date of Termination, provided that if the 60-day period spans two (2) calendar years, then, to the extent necessary to comply with Code Section 409A, the payments and benefits described in this Section 4(e) will be paid, or commence, in the second calendar year.  

(f)Effect on Status as a Director.  In the event of Executive’s termination of employment under this Agreement for any reason, such termination will also constitute Executive’s resignation as a director of the Bank or the Company, or as a director or trustee of any subsidiary or affiliate thereof, to the extent Executive is acting as a director or trustee of any of the aforementioned entities.  

(g)Notice; Effective Date of Termination.  Notice of Termination of employment under this Agreement must be communicated by or to Executive or the Bank, as applicable, in accordance with Section 17.  “Date of Termination” as referenced in this Agreement means Executive’s termination of employment pursuant to this Agreement, which will be effective on the earliest of: (i) immediately after the Bank gives notice to Executive of Executive’s termination Without Cause, unless the parties agree to a later date, in which case, termination will be effective as of such later date; (ii) immediately upon approval by the Board of termination of Executive’s employment for Cause; (iii) immediately upon Executive’s death or Disability; or (iv) 30 days after Executive gives written notice to the Bank of Executive’s resignation from employment 

6

(including With Good Reason), provided that the Bank may set an earlier termination date at any time prior to the date of termination of employment, in which case Executive’s resignation shall be effective as of such date.  

	
5.
	
CHANGE IN CONTROL.

(a)Change in Control Defined.  For purposes of this Agreement, the term “Change in Control” means: (i) a change in the ownership of the Corporation; (ii) a change in the effective control of the Corporation; or (iii) a change in the ownership of a substantial portion of the assets of the Corporation as defined in accordance with Code Section 409A.  For purposes of this Section 5(a), the term “Corporation” is defined to include the Bank, the Company or any of their successors, as applicable.  

	
 
	
(i)
	
A change in the ownership of a Corporation occurs on the date that any one person, or more than one person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(v)(B)), acquires ownership of stock of the Corporation that, together with stock held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of the stock of such Corporation.

	
 
	
(ii)
	
A change in the effective control of the Corporation occurs on the date that either (A) any one person, or more than one person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(vi)(D)) acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Corporation possessing 30 percent or more of the total voting power of the stock of the Corporation, or (B) a majority of the members of the Board is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election, provided that this subsection “(B)” is inapplicable where a majority stockholder of the Corporation is another corporation.

	
 
	
(iii)
	
A change in ownership of a substantial portion of the Corporation’s assets occurs on the date that any one person or more than one person acting as a group (as defined in Treasury Regulation 1.409A-3(i)(5)(vii)(C)) acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Corporation that have a total gross fair market value equal to or more than 40 percent of the total gross fair market value of (A) all of the assets of the Corporation, or (B) the value of the assets being disposed of, either of which is determined without regard to any liabilities associated with such assets.  For all purposes hereunder, the definition of Change in Control shall be construed to be consistent with the requirements of Treasury Regulation 1.409A-3(i)(5), except to the extent that such regulations are superseded by subsequent guidance.  

7

(b)Change in Control Benefits.  Upon the termination of Executive’s employment by the Bank (or any successor) Without Cause or by Executive With Good Reason upon or within two (2) years following the effective time of a Change in Control, the Bank (or any successor) will pay or provide Executive, or Executive’s estate in the event of Executive’s subsequent death, with the following:

(i)any Accrued Obligations;

	
 
	
(ii)
	
a cash lump sum payment (the “Change in Control Severance”) in an amount equal to the sum of: (A) three (3) times the sum of Executive’s Base Salary (or Executive’s Base Salary in effect immediately prior to the Change in Control, if higher); plus (B) three (3) times the greater of (i) Executive’s average annual bonus paid (but not less than target) by the Bank to Executive for the three (3) annual performance periods preceding the Date of Termination; or (ii) the annual bonus paid by the Bank to Executive with respect to the most recent annual performance period.  The Change in Control Severance is payable within 30 days following Executive’s Date of Termination; and

	
 
	
(iii)
	
Provided that Executive is eligible for and timely elects continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1986, as amended (“COBRA”), the Bank will pay Executive 18 consecutive monthly cash payments (commencing with the first month following Executive’s Date of Termination and continuing until the 18th month following Executive’s Date of Termination) each equal to the monthly COBRA premium in effect as of the Date of Termination for the level of coverage in effect for Executive (including Executive’s spouse and dependents, if applicable) under the Bank’s group health plan (the “Monthly COBRA Costs”).  Following the foregoing 18-month period, if Executive secures an individual policy for health coverage for Executive and, where applicable, Executive’s spouse and dependents, the Bank will reimburse Executive for the monthly cost of such coverage for the period commencing on the first day following the 18-month period and ending on the last day of the 36-month following the Date of Termination; provided that the amount of the Bank’s reimbursement for any month during this period will not exceed the Monthly COBRA Costs.  Notwithstanding the foregoing, the Bank reserves the right to restructure the foregoing continued coverage arrangement in any manner reasonably necessary or appropriate to avoid penalties or negative tax consequences to the Bank or Executive, as determined by the Bank in its sole and absolute discretion.  

Notwithstanding the foregoing, the payments and benefits provided in this Section 5(b) shall be payable to Executive in lieu of any payments or benefits that are payable under Section 4(e).  

8

6.COVENANTS OF EXECUTIVE.

(a)Non-Solicitation/Non-Compete.  Executive hereby covenants and agrees that during the “Restricted Period,” Executive shall not, without the written consent of the Bank, either directly or indirectly:

	
 
	
(i)
	
solicit, offer employment to, or take any other action intended (or that a reasonable person acting in like circumstances would expect) to have the effect of causing any officer or employee of the Bank, or any of its respective subsidiaries or affiliates, to terminate his or her employment with the Bank and/or accept employment with another employer; or

	
 
	
(ii)
	
own or hold any proprietary interest in, or be employed by or receive remuneration from, any corporation, partnership, sole proprietorship or other entity (collectively, an “entity”) “engaged in competition” (as defined below) with the Bank or any of its subsidiaries. For purposes of the preceding sentence, (i) the term “proprietary interest” means direct or indirect ownership of an equity interest in an entity other than ownership of less than 2 percent of any class stock in a publicly-held entity, and (ii) an entity shall be considered to be “engaged in competition” if such entity is, or is a holding company for or a subsidiary of an entity which is engaged in the business of (A) providing banking, trust services, asset management advice, or similar financial services to consumers, businesses individuals or other entities, and (B) the entity, holding company or subsidiary maintains any physical offices for the transaction of such business located within 50 miles of the main office of the Bank; provided, however, that this Section 6(a)(ii) will not prohibit or otherwise restrict Executive’s ability, or the ability of any entity controlled by Executive, to become an investor or a fund manager (or have any type of employment or consulting relationship, including a full-time senior level employee position) with any hedge fund, investment partnership, investment corporation or any other collective investment vehicle that is engaged primarily in the purchase and/or sale of securities (a “Hedge Fund”), even if such Hedge Fund has an ownership interest in a Business; or

	
 
	
(iii)
	
call upon any person or entity which is or has been within 24 months prior to the termination or other cessation of Executive’s employment for any reason, a customer of the Bank or any subsidiary (each a “Customer”) for the direct or indirect purpose of soliciting or selling deposit, loan or trust products or services or induce any Customer to curtail, cancel, not renew, or not continue their business with the Bank or any subsidiary or affiliate.  

The restrictions contained in this Section 6(a) shall not apply in the event of Executive’s termination of employment on or after the effective time of a Change in Control.  

For purposes of this Section 6(a), the “Restricted Period” will be: (i) at all times during Executive’s period of employment with the Bank; and (ii) except as provided above, during 

9

the period beginning on Executive’s Date of Termination and ending on the one-year anniversary of the Date of Termination

(b)Confidentiality.  Executive recognizes and acknowledges that Executive has been and will be the recipient of confidential and proprietary business information concerning the Bank, including without limitation, past, present, planned or considered business activities of the Bank, and Executive acknowledges and agrees that Executive will not, during or after the term of Executive’s employment, disclose such confidential and proprietary information for any purposes whatsoever, except as may be expressly permitted in writing signed by the Bank, or as may be required by regulatory inquiry, law or court order.  

(c)Information/Cooperation.  Executive will, upon reasonable notice, furnish such information and assistance to the Bank as may be reasonably required by the Bank, in connection with any litigation in which it or any of its subsidiaries or affiliates is, or may become, a party; provided, however, that Executive shall not be required to provide information or assistance with respect to any litigation between Executive and the Bank or any other subsidiaries or affiliates.

(d)Reliance.  Except as otherwise provided, all payments and benefits to Executive under this Agreement will be subject to Executive’s compliance with this Section 6, to the extent applicable.  The parties hereto, recognizing that irreparable injury will result to the Bank, its business and property in the event of Executive’s breach of this Section 6, agree that, in the event of any such breach by Executive, the Bank will be entitled, in addition to any other remedies and damages available, to an injunction to restrain the violation hereof by Executive and all persons acting for or with Executive. Executive represents and admits that Executive’s experience and capabilities are such that Executive can obtain employment in a business engaged in other lines of business than the Bank, and that the enforcement of a remedy by way of injunction will not prevent Executive from earning a livelihood.  Nothing herein will be construed as prohibiting the Bank from pursuing any other remedies available to them for such breach or threatened breach, including the recovery of damages from Executive.

(e)Survival.  Any termination of Executive’s services or of this Agreement shall have no effect on the continuing operation of this Section 6, which shall survive in accordance with their terms.  

(f)Retirement Transition Agreement.  To the extent that Executive is a party to the Retirement Transition Agreement, if there are any inconsistencies with respect to the covenants of Executive set forth in the Retirement Transition Agreement as compared to the restrictive covenants of this Agreement, the restrictive covenants set forth in the Retirement Transition Agreement would govern.  

7.SOURCE OF PAYMENTS.

All payments provided in this Agreement shall be timely paid by check or direct deposit from the general funds of the Bank (or any successor of the Bank).  

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8.EFFECT ON PRIOR AGREEMENTS AND EXISTING BENEFITS PLANS.

This Agreement contains the entire understanding between the parties hereto and supersedes the Prior Agreements between the Bank or any predecessor of the Bank and Executive, except that this Agreement shall not affect or operate to reduce any benefit or compensation inuring to Executive under another plan, program or agreement (other than the Prior Agreements) between the Bank and Executive.    

9.NO ATTACHMENT; BINDING ON SUCCESSORS.

	
(a)
	
Except as required by law, no right to receive payments under this Agreement shall be subject to anticipation, commutation, alienation, sale, assignment, encumbrance, charge, pledge, or hypothecation, or to execution, attachment, levy, or similar process or assignment by operation of law, and any attempt, voluntary or involuntary, to affect any such action shall be null, void, and of no effect.

	
(b)
	
The Bank shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all the business or assets of the Bank, expressly and unconditionally to assume and agree to perform the Bank’s obligations under this Agreement, in the same manner and to the same extent that the Bank would be required to perform if no such succession or assignment had taken place.

10.MODIFICATION AND WAIVER.

	
(a)
	
This Agreement may not be modified or amended except by an instrument in writing signed by the parties hereto.  

	
(b)
	
No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel against the enforcement of any provision of this Agreement, except by written instrument of the party charged with such waiver or estoppel.  No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future as to any act other than that specifically waived.

11.Applicable law AND OTHER MANDATORY PROVISIONS.

Notwithstanding anything herein contained to the contrary, the following provisions shall apply:

	
(a)
	
The Bank may terminate Executive’s employment at any time, but any termination by the Bank other than termination for Cause shall not prejudice Executive’s right to compensation or other benefits under this Agreement.  Executive shall have no right to receive compensation or other benefits under this Agreement for any period after Executive’s termination for Cause, other than the Accrued Obligations.  

	
(b)
	
In no event shall the Bank (nor any affiliate) be obligated to make any payment pursuant to this Agreement that is prohibited by Section 18(k) of the Federal Deposit Insurance Act (codified at 12 U.S.C. sec. 1828(k)), 12 C.F.R. Part 359, or any other applicable law.

11

	
(c)
	
Notwithstanding anything in this Agreement to the contrary, to the extent that a payment or benefit described in this Agreement constitutes “non-qualified deferred compensation” under Section 409A of the Code, and to the extent that such payment or benefit is payable upon Executive’s termination of employment, then such payments or benefits will be payable only upon Executive’s “Separation from Service.”  For purposes of this Agreement, a “Separation from Service” will have occurred if the Bank and Executive reasonably anticipate that either no further services will be performed by Executive after the Date of Termination (whether as an employee or as an independent contractor) or the level of further services performed is less than 50 percent of the average level of bona fide services in the 36 months immediately preceding the termination.  For all purposes hereunder, the definition of Separation from Service shall be interpreted consistent with Treasury Regulation Section 1.409A-1(h)(ii). 

(d)Notwithstanding the foregoing, if Executive is a “Specified Employee” (i.e., a “key employee” of a publicly traded company within the meaning of Section 409A of the Code and the final regulations issued thereunder) and any payment under this Agreement is triggered due to Executive’s Separation from Service, then solely to the extent necessary to avoid penalties under Section 409A of the Code, no payment shall be made during the first six (6) months following Executive’s Separation from Service.  Rather, any payment which would otherwise be paid to Executive during such period shall be accumulated and paid to Executive in a lump sum on the first day of the seventh month following such Separation from Service.  All subsequent payments shall be paid in the manner specified in this Agreement.    

(e)If the Bank cannot provide Executive or Executive’s dependents any continued health insurance or other welfare benefits as required by this Agreement because Executive is no longer an employee, applicable rules and regulations prohibit such benefits or the payment of such benefits in the manner contemplated, or it would subject the Bank to penalties, then the Bank will pay Executive a cash lump sum payment reasonably estimated to be equal to the value of such benefits or the value of the remaining benefits at the time of such determination. Such cash payment will be made in a lump sum within 30 days after the later of Executive’s Date of Termination or the effective date of the rules or regulations prohibiting such benefits or subjecting the Bank to penalties.  Notwithstanding the foregoing, if such cash payment would violate the requirements of Treasury Regulation Section 1.409A-3(j), Executive’s cash payment in lieu of the continued health insurance or welfare benefits as required by this Agreement will be payable at the same time the related premium payments would have been paid by the Bank and for the duration of the applicable coverage period.  

(f)To the extent not specifically provided in this Agreement, any compensation or reimbursements payable to Executive shall be paid or provided no later than two and one-half (2.5) months after the calendar year in which such compensation is no longer subject to a substantial risk of forfeiture within the meaning of Treasury Regulation Section 1.409A-1(d).

(g)Each payment pursuant to this Agreement is intended to constitute a separate payment for purposes Treasury Regulation Section 1.409A-2(b)(2).  

	
(h)
	
Notwithstanding anything in this Agreement to the contrary, Executive understands that nothing contained in this Agreement limits Executive’s ability to file a charge or complaint with the Securities and Exchange Commission (“SEC”) about a possible securities law violation 

12

		
without approval of the Bank (or any affiliate).  Executive further understands that this Agreement does not limit Executive’s ability to communicate with the SEC or otherwise participate in any investigation or proceeding that may be conducted by the SEC, including providing documents or other information, without notice to the Bank (or any affiliate) related to the possible securities law violation.  This Agreement does not limit Executive’s right to receive any resulting monetary award for information provided to the SEC.

	
(i)
	
Executive agrees that Executive shall be subject to any compensation clawback or recoupment policies that may be applicable to Executive as an employee of the Bank, as in effect from time to time and as approved by the Board or a duly authorized committee thereof, whether or not approved before or after the Effective Date.  

12.SEVERABILITY.

If any provision of this Agreement is determined to be void or unenforceable, then the remaining provisions of this Agreement will remain in full force and effect.

13.GOVERNING LAW.

This Agreement shall be governed by the laws of the State of New Jersey, but only to the extent not superseded by federal law.

14.ARBITRATION.  

Any dispute or controversy arising under or in connection with this Agreement shall be settled exclusively by arbitration, conducted within 50 miles of Bedminster, New Jersey, in accordance with the Commercial Rules of the American Arbitration Association then in effect.  Judgment may be entered on the arbitrators’ award in any court having jurisdiction.  The above notwithstanding, the Bank may seek injunctive relief in a court of competent jurisdiction in New Jersey to restrain any breach or threatened breach of any provision of this Agreement, without prejudice to any other rights or remedies that may otherwise be available to the Bank.

15.INDEMNIFICATION.

The Bank will provide Executive (including Executive’s heirs, executors and administrators) with coverage under a standard directors’ and officers’ liability insurance policy at its expense, and will indemnify Executive (and Executive’s heirs, executors and administrators) in accordance with the charter and bylaws of the Bank and to the fullest extent permitted under applicable law against all expenses and liabilities reasonably incurred by Executive in connection with or arising out of any action, suit or proceeding in which Executive may be involved by reason of having been a trustee, director or officer of the Bank or any subsidiary or affiliate of the Bank.  

 

16.TAX Withholding.

The Bank may withhold from any amounts payable to Executive hereunder all federal, state, local or other taxes that the Bank may reasonably determine are required to be withheld pursuant to any applicable law or regulation (it being understood that Executive is responsible for payment of all taxes in respect of the payments and benefits provided herein).  

13

 

17.Notice.  

For the purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by certified or registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth below or if sent by facsimile or email, on the date it is actually received.  

 

		
	
To the Bank
	
Peapack Gladstone Bank

500 Hills Drive, Suite 300

Bedminster, New Jersey 07921

Attention: Corporate Secretary

 

	
To Executive:
	
Most recent address on file with the Bank

 

18.PRIOR AGREEMENTS.

 

Executive, the Bank and the Company hereby acknowledge and agree that as of the Effective Date: (1) this Agreement shall supersede and replace the Prior Agreements as of the Effective Date; and (2) the Prior Agreements shall terminate, be null and void and of no further effect.  

[Signature Page Follows]

14

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first 

written above.  

 

 

		
	
 
	
PEAPACK-GLADSTONE BANK

	
 
	
 

	
 
	
 

	
 
	
By: .         

	
 
	
Name: 

	
 
	
Title:  

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
PEAPACK-GLADSTONE FINANCIAL CORPORATION

	
 
	
 

	
 
	
 

	
 
	
By: .         

	
 
	
Name: 

	
 
	
Title:  

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
EXECUTIVE

	
 
	
 

	
 
	
 

	
 
	
 

	
 
	
[Name]

 

 

 

15

 

 

SCHEDULE TO EXHIBIT

 

This Schedule of Executive Officers who have executed a form of employment agreement is included pursuant to Instruction 2 of Item 601(a) of Regulation S-K for the purposes of setting forth the material details in which the specific agreements differ from the form agreement filed herewith as Exhibit 10.2: 

 

			
	
Name of Executive Officer
	
Title
	
Base Salary

	
Douglas L. Kennedy

 
	
President and Chief Executive Officer
	
$731,000

	
Jeffrey J. Carfora

 
	
Chief Financial Officer
	
$376,000

	
John P. Babcock

 
	
President, Wealth Management
	
$545,000

	
Gregory M. Smith

 
	
President, Commercial Lending
	
$340,000

 

 

 

 

 

16

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