Document:

EX-10.1

 Exhibit 10.1 

[Calyxt Letterhead] 
 December 19, 2018 

Mr. Bill Koschak 
 *************** 

*************** 
 Dear Mr. Koschak, 

On behalf of Calyxt, Inc., (the “Company”), I am pleased to offer you a position with the Company as Chief Financial Officer. This offer letter
agreement (this “Letter”) sets forth the terms of your offer which, if you accept, will govern your employment with the Company. 
  

	1.	 Certain Definitions. Certain words or phrases used in this Letter with initial capital letters will have
the meanings set forth in paragraph 9 hereof. 

  

	2.	 Employment. If you accept the terms of this Letter by December 21, 2018, the Company will employ
you beginning on January 7, 2019 (the “Effective Date”) at the latest, upon the terms and conditions set forth in this Letter, and ending as provided in paragraph 6 hereof. Notwithstanding anything in this Letter to the contrary, you will
be an at-will employee of the Company and you or the Company may terminate your employment with the Company for any reason or no reason at any time. The period during which you are employed by the Company is
referred to in this Letter as the “Employment Term.” 

  

	3.	 Position and Duties. You shall serve as Chief Financial Officer of the Company and shall have the
duties, responsibilities and authority consistent with an executive serving in such position, subject to the Company’s sole right to expand or reduce such duties, responsibilities and authority, either generally or in specific instances. You
shall devote all of your business time and attention to the performance of your duties under this Letter and will not engage in any other business activities, without the prior consent of the Company’s Board of Directors. Notwithstanding the
foregoing, you will be permitted to purchase and own less than five percent (5%) of the publicly-traded securities of any corporation, provided that such ownership represents a passive investment and that you are not a controlling person of, or a
member of a group that controls such corporation, and provided further that this ownership does not interfere with the performance of your duties and responsibilities to the Company, including but not limited to the duties and responsibilities set
forth in this Section 3. You will report to the Chief Executive Officer of Calyxt. 

  

  
 2800 Mount Ridge Road,
Roseville, MN 55113 
 (651) 683-2803 

www.calyxt.com 

	4.	 Place of Employment and Permanent Residence. 

The principal place of your employment will be the Company’s office in Roseville, Minnesota, except that you may be required to travel on
Company business during your employment. 
  

	5.	 Compensation and Benefits. 

 

	 	(a)	 Salary. The Company shall pay you an annualized salary of $320,000 (the “Base Salary”) during
the Employment Period in periodic installment in accordance with the Company’s payroll practices as may be in effect from time to time, but not less frequently than monthly. Your Base Salary will be subject to review at least annually by the
Board and the Board may, but will not be required to, increase your Base Salary during the Employment Term. 

  

	 	(b)	 Sign-On Bonus. 

 

	 	i.	 Cash Sign-On Bonus. In consideration of your foregone
compensation at your previous employer, the Company will give you a one-time Cash Sign-On Bonus in the amount of one hundred eighty thousand dollars ($180,000), minus
all appropriate deductions for local, state, federal and payroll tax withholdings. This Bonus will be paid in two installments: a single payment of one hundred thousand dollars ($100,000) payable sixty (60) days of the Effective Date and one
payment of eighty thousand dollars ($80,000) payable twelve (12) months of the Effective Date. 

  

	 	ii.	 Each respective Cash Sign-On Cash Bonus installment will be vested in
the amount of 25% on the date of payment, an additional 15% on the first anniversary of the date of payment, and 5% of the remaining amount will vest on the last day of each calendar quarter beginning after the first anniversary of the payment.

  

	 	iii.	 If you voluntarily terminate your employment with the Company or your employment is terminated by the Company
for Cause one (1) year after the Effective Date, you agree to repay the entire unvested gross amount of the Cash Sign-On Bonus to the Company. If you voluntarily terminate your employment with the Company
or your employment is terminated by the Company for Cause before the first anniversary of the Effective Date, you agree to repay the entire gross amount of the Cash Sign-On Bonus to the

  
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Company. The reimbursement will be made by certified or bank check no later than thirty (30) days following your Termination Date. In the event of a repayment, the Company will make
appropriate adjustments to your tax withholdings, reflecting the fact of said repayment. 

  

	 	iv.	 Sign-On Equity Award. In addition to the award of Stock
described by Section 5 (d) (i) below, and in consideration of equity interest and other losses you may occur because of leaving your current position, the Company will offer to you thirty thousand (30,000) Stock Options, subject to Board
approval. 

  

	 	(c)	 Annual Performance Bonus. For each calendar year of the Employment Term, you will be eligible to receive
an annual performance bonus (“Annual Performance Bonus”) from the Company, with an amount of such bonus equal up to forty five percent (45%) of your Base Salary and a multiplier on Annual Target of 0.7 to 1.5x. You are eligible to earn a
prorated Annual Performance Bonus for your individual contribution and the Company’s performance between the Effective Date and December 31, 2019. Your Annual Performance Bonus will be based on achievement of individual and/or Company
performance goals that are established by the Board in its sole discretion at the beginning of each calendar year. Following the close of each calendar year, the Board shall determine whether you have earned an Annual Performance Bonus, and the
amount of any such bonus, based on the goals established at the beginning of the year. Payment of the Annual Performance Bonus is expressly conditioned upon your employment with the Company on the date the Annual Performance Bonus is paid, except as
provided in paragraph 6(e) below and as provided in paragraph 6(d) in case of Termination Without Cause (as defined in paragraph 9 and conditions detailed in paragraph 7). The Annual Performance Bonus will be paid within seventy-five (75) days
after the end of the calendar year to which it relates. Your target Annual Performance Bonus will be subject to periodic review and adjustment by the Board, in its sole discretion, from time to time. 

 

	 	(d)	 Equity Award. 

 

	 	(i)	 Not later than thirty days after the Effective Date, subject to Board approval, you will be granted a stock
option (the “Option”) to purchase up to 150,000 shares of the Company’s Common Stock, pursuant to the Company’s Stock Incentive Plan (the “Plan”). 

 

	 	(ii)	 You will be eligible to participate in and receive additional stock option or equity award grants under the
Company’s equity incentive plan from time to time in the sole discretion of the Board, and in accordance with the terms and conditions of such plans. 

  
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	 	(e)	 Executive Benefits Package. You will be entitled during your employment to participate in the
Company’s Executive Benefits Package. The Company’s “Executive Benefits Package” means those benefits (including benefits for which substantially all of the employees of the Company are from time to time generally eligible), as
determined from time to time by the Company’s Board of Directors (the “Board”). The Company reserves the right to amend or cancel any employee benefit plans, programs, or practices at any time in its sole discretion, subject to the
terms of the employee benefit plan and applicable law. 

  

	 	(f)	 Vacation. During the Employment Period, you will be entitled to take paid vacation pursuant to the
Company’s existing policies regarding paid vacations. You will be entitled to accrue twenty (20) days of paid vacation per calendar year. Beginning on the Effective Date, your vacation time will accrue on a monthly basis at a rate of 1.67
days per month. Vacation time that is not used by you in the calendar year it accrues may be carried over to the next calendar year, but you will cease to accrue additional vacation time beyond your annual accrual (i.e., 20 days) in any calendar
year until you have taken vacation and your accrued vacation time has dropped below the maximum annual accrual of 20 days. 

  

	 	    	 In addition, you will receive a one-time vacation grant of 5 days to be
used between the Effective Date and the first anniversary of the Effective Date. 

  

	6.	 Termination Events. 

Your employment with the Company will continue until terminated upon the occurrence of any of the following events: 

 

	 	(a)	 Your death; 

  

	 	(b)	 Your Permanent Disability; 

 

	 	(c)	 Your written notice of your termination of your employment to the CEO; 

 

	 	(d)	 The termination of your employment by the Company at any time Without Cause (as defined in paragraph 9) with
the termination to take effect as determined by the Company; or 

  

	 	(e)	 The termination of your employment by the Company For Cause (as defined in paragraph 9), with the termination
to take effect immediately upon written notice by the Company to the Employee or upon a date determined by the Company. 

  
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	7.	 Consequences of Termination. 

 

	 	(a)	 Compensation upon Termination by Company—For Cause. Upon the termination of your employment For
Cause, you will cease to have any rights to Base Salary, bonus awards, expense reimbursements, fringe benefits or any other compensation or benefits of any nature, except that you will be entitled to receive any Base Salary that has accrued but is
unpaid, any reimbursable expenses that have been incurred but are unpaid as of your Termination Date, which will be paid in accordance with Company’s usual payroll procedures. (collectively, the “Accrued Amounts”).

  

	 	(b)	 Compensation upon Termination by Company—Not For Cause. 

 

	 	    	 Upon the termination Without Cause of your employment provided for in paragraph 6(d), you will cease to have
any rights to Base Salary, bonus awards, expense reimbursements, fringe benefits or any other compensation or benefits of any nature, except that you will be entitled to receive the Accrued Amounts and Annual Performance Bonus on a prorata temporis
basis. 

  

	 	(c)	 Compensation upon Termination—By You. Upon your voluntary termination of your employment provided
for in paragraph 6(c), you will cease to have any rights to Base Salary, bonus awards, expense reimbursements, fringe benefits or any other compensation or benefits of any nature, except that you will be entitled to receive the Accrued Amounts.

  

	 	(d)	 Compensation Upon Termination—Death or Permanent Disability. In the event your employment is
terminated because of death or Permanent Disability, you will cease to have any rights to Base Salary, bonus awards, expense reimbursements, fringe benefits or any other compensation or benefits of any nature, except that you will be entitled to
receive the Accrued Amounts. In the event your employment is terminated as a result of your death, your spouse or, if you are not married at the time of your death, your estate will be entitled to the Accrued Amounts. 

 

	8.	 Competitive Activity: Confidentiality: Non-Solicitation: Discoveries
and Inventions: Works Made for Hire. 

  

	 	(a)	 Acknowledgements and Agreements. You hereby acknowledge and agree that in the performance of your duties to the
Company, you will be brought into frequent contact with existing Customers and Potential Customers of the Company throughout the world. You agree that trade secrets and confidential information of the Company, more fully described in subparagraph
8(e)(i), gained by you during your association 

  
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with the Company, have been developed by the Company through substantial expenditures of time, effort and money and constitute valuable and unique property of the Company. You further understand
and agree that the foregoing makes it necessary for the protection of the Company’s Business that you do not compete with the Company during your employment with the Company and that you do not compete with the Company for a reasonable period
thereafter, as further provided in the following subparagraphs. 

  

	 	(b)	 Competitive Activity. 

 

	 	(i)	 While employed by the Company, and for a period of one (1) year following your Termination Date, you are
obligated to provide notice to Calyxt of future activity and responsibilities (as provided for in subparagraph 8(b)(ii)) prior to starting a new position. Upon receipt of such notice, the Company will have a
10-day window to exercise a non-compete for a period not to exceed 12 months from the Termination Date. In such event, and only if your employment terminates “Not
For Cause”, the Company will pay you, during the 12-month period, your base salary according to the Company payroll schedule less applicable withholdings, so long as you are not otherwise employed. In the
event you breach this clause, you agree to reimburse immediately all non-compete payments you received from the Company. You agree and understand that should the Company exercise its non-compete option under this subparagraph, you will be bound by the terms of this Competitive Activity/non-compete provision, even if you are terminated for cause or you
voluntary terminate, and thus do not receive the non-compete payments described herein. 

  

	 	(ii)	 Direct or Indirect Competition. For the purpose of subparagraph 8(b)(i) but without limitation thereof, you
will be in violation thereof if you engage in any or all of the activities set forth therein directly as an individual on your own account, or indirectly as a partner, joint venturer, employee, agent, salesperson, consultant, officer and/or
director of any firm, association, partnership, corporation or other entity, or as a stockholder of any corporation in which you or your spouse, child or parent owns, directly or indirectly, individually or in the aggregate, more than five percent
of the outstanding stock. 

  

	 	(iii)	 If it is judicially determined that you have violated subparagraph 8(b)(i), then the period applicable to each
obligation that you have been determined to have violated will automatically be extended from the date of judicial determination by a period of time equal in length to the period during which such violation(s) occurred. 

 

	 	(c)	 The Company. For purposes of this subparagraph 8(c), the Company will include any and all direct and indirect
subsidiary, parent, affiliated, or related companies of the Company for which you worked or had responsibility at the time of termination of your employment and at any time during the two-year period prior to
such termination. 

  
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	 	(d)	 Non-Solicitation. 

 

	 	(i)	 Of Customers. You will not directly or indirectly at any time during the period of your employment or for a
period of twenty-four (24) months following your Termination Date, directly or indirectly, solicit, divert, or take away or supervise any other person, firm, or other entity in soliciting, diverting, or taking away any Customer or Prospective
Customer of the Company for the purpose of selling, performing or providing Business Services to that Customer or Prospective Customer. 

  

	 	(ii)	 Of Employees. You will not, directly or indirectly, at any time during the period of your employment or for a
period of twenty-four (24) months following your Termination Date solicit, hire, employ, engage, affiliate with for profit, retain (or assist any other person or entity in soliciting, hiring, employing, engaging, affiliating for profit or
retaining) any person who was a Company employee or consultant or independent contractor at any time during the one (1)-year period prior to your soliciting, hiring, employing, engaging, affiliating for profit or retaining, whether for your benefit
or the benefit of any other person or organization other than the Company, or solicit, induce, or encourage any such person to terminate or leave the Company’s employ, engagement, or other remunerative relationship with the Company. You
acknowledge that this covenant is necessary to enable the Company to maintain a stable workforce and remain in business. 

  

	 	(g)	 Confidentiality. 

  

	 	(i)	 You will keep in strict confidence, and will not, directly or indirectly, at any time, during or after your
employment with the Company, disclose, furnish, disseminate, make available or, except in the course of performing your duties of employment, use any trade secrets or confidential business and technical information of the Company or its Customers,
suppliers or vendors, without limitation as to when or how you may have acquired such information. Such confidential information will include, without limitation, all information belonging to the Company, its affiliates, subsidiaries, or any other
person or entity that has entrusted information to the Company in confidence, technology, computer programs or programming, systems, software, software codes, designs, data bases, trade secrets, know-how,
research, methods, manuals, records, product or service ideas or plans, work-in-progress, results, algorithms, inventions, developments, original works of authorship, discoveries, experimental processes,
experimental results, 

  
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unpublished patent applications, laboratory notebooks, processes, formulas, investigation or research techniques, engineering designs and drawings, hardware configuration information, regulatory
information, medical reports, clinical data and analysis reagents, cell lines, biological materials, chemical formulas, financial information including but not limited to price lists, pricing methodologies, cost data, financial forecasts, historical
financial data, and budgets, marketing information, including but not limited to market share data, marketing plans, licenses, business plans, lists of the needs and preferences of Customers and Prospective Customers, promotional materials, training
courses and other training and instructional materials, vendor and product information, all agreements with third parties and terms of agreements, transactions and potential transactions, negotiations, information relating to employees and
consultants of the Company, including names, contact information, and expertise, lists of or information relating to suppliers and vendors and other business information disclosed by the Company {whether by oral, written, graphic or machine-readable
format) which confidential information is designated in writing to be confidential or proprietary, or if given orally, is confirmed in writing as having been disclosed as confidential or proprietary within a reasonable time {not to exceed 30 days
after the oral disclosure), or which information would, under the circumstances appear to a reasonable person to be confidential or proprietary. 

  

	 	(ii)	 You specifically acknowledge that all such confidential information, whether reduced to writing, maintained on
any form of electronic media, or maintained in your mind or memory and whether compiled by the Company, and/or you, derives independent economic value from not being readily known to or ascertainable by proper means by others who can obtain economic
value from its disclosure or use, that reasonable efforts have been made by the Company to maintain the secrecy of such information, that such information is the sole property of the Company and that any retention and your use of such information
during your employment with the Company {except in the course of performing your duties and obligations to the Company) or after the termination of your employment will constitute a misappropriation of the Company’s trade secrets.

  

	 	(iii)	 The U.S. Defend Trade Secrets Act of 2016 (“DTSA”) provides that an individual shall
not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (A) is made in confidence to a federal, state or local government official, either directly or indirectly, or to an
attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit 

  
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or other proceeding, if such filing is made under seal. In addition, the DTSA provides that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of
law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret,
except pursuant to court order. 

  

	 	(iv)	 You agree that upon termination of your employment with the Company, for any reason, you will return to the
Company, in good condition, all property of the Company, including without limitation, the originals and all copies of any documents in whatever form (electronic, hard copy, etc.) or materials which contain, reflect, summarize, describe, analyze or
refer or relate to any items of information listed in subparagraph 8(e)(i) of this Letter. You agree that all confidential information, as listed in subparagraph 8(e)(i) of this Letter is the sole property of the Company and you have no right, title
or interest to this property. In the event that such items are not so returned, the Company will have the right to charge you for all reasonable damages, costs, attorneys’ fees and other expenses incurred in searching for, taking, removing
and/or recovering such property. 

  

	 	(v)	 Notwithstanding the above, you will have no liability to the Company with regard to any confidential
information you can prove was in the public domain at the time it was disclosed or entered the public domain through no fault of yours. 

  

	 	(h)	 Discoveries and Inventions; Work Made for Hire. 

 

	 	(i)	 You agree that upon conception and/or development of any idea, discovery, invention, improvement, software,
writing or other material or design that: (A) relates to the business of the Company, or (B) relates to the Company’s actual or demonstrably anticipated research or development, or (C) results from any work performed by you for
the Company, you will assign to the Company the entire right, title and interest in and to any such idea, discovery, invention, improvement, software, writing or other material or design. (together, “Discoveries and Inventions”) Subject to
the requirements of applicable state law, if any, you understand that Discoveries and Inventions will not include, and the provisions of this Letter will not apply to any idea, discovery, invention, improvement, software, writing or other material
or design that qualifies fully for exclusion under the provisions of applicable state law. You also agree that any idea, discovery, invention, improvement, software, writing or other material or design that relates to the business of the Company or
relates to the Company’s actual or demonstrably anticipated research or development which is 

  
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conceived or suggested by you, either solely or jointly with others, within one year following termination of your employment under this Letter or any successor agreements will be presumed to
have been so made, conceived or suggested in the course of such employment with the use of the Company’s equipment, supplies, facilities, and/or trade secrets. 

 

	 	(ii)	 You agree that during your employment, and for one year after termination of your employment under this Letter
or any successor agreements, you will disclose immediately and fully to the Company any Discovery and Invention conceived, made or developed by you solely or jointly with others. The Company agrees to keep any such disclosures confidential. You also
agree to record descriptions of all work in the manner directed by the Company, agree that all such records and copies, samples and experimental materials will be the exclusive property of the Company, and agree not to remove these records from the
Company’s place of business except as expressly permitted by Company policy which may, from time to time, be revised at the sole election of the Company for the purpose of furthering the Company’s business. You agree that at the request of
and without charge to the Company, but at the Company’s expense, you will execute a written assignment of the idea, discovery, invention, improvement, software, writing or other material or design to the Company and will assign to the Company
any application for letters patent or for trademark registration made thereon, and to any common-law or statutory copyright therein; and that you will do whatever may be necessary or desirable to enable the
Company to secure any patent, trademark, copyright, or other property right therein in the United States and in any foreign country, and any division, renewal, continuation, or continuation in part thereof, or for any reissue of any patent issued
thereon. In the event the Company is unable, after reasonable effort, and in any event after ten business days, to secure you signature on a written assignment to the Company of any application for letters patent or to any common-law or statutory copyright or other property right therein, whether because of your physical or mental incapacity or for any other reason whatsoever, you irrevocably designate and appoint the General Counsel
of the Company as your attorney-in-fact to act on your behalf to execute and file any such application and to do all other lawfully permitted acts to further the
prosecution and issuance of such letters patent, copyright or trademark. Any assignment of the rights to an idea, discovery, invention, improvement, software, writing or other material or design includes all rights of attribution, paternity,
integrity, modification, disclosure and withdrawal, any other rights throughout the world that may be known or referred to as “moral rights.’’ “artists rights,” “droit moral,” or the like. (“Moral
Rights”) To the extent that Moral Rights cannot be assigned under applicable law, you hereby waive and agree not to enforce any and all Moral Rights, including, without limitation, any limitation on subsequent modification, to the extent
permitted under applicable law. 

  
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	 	(iii)	 You acknowledge that, to the extent permitted by law, all work papers, reports, documentation, drawings,
photographs, negatives, tapes and masters therefor, prototypes and other materials (hereinafter, “items”), including without limitation, any and all such items generated and maintained on any form of electronic media, generated by you
during your employment with the Company will be considered a “work made for hire” and that ownership of any and all copyrights in any and all such items will belong to the Company. The item will recognize the Company as the copyright
owner, will contain all proper copyright notices, e.g., “(creation date), All Rights Reserved,” and will be in condition to be registered or otherwise placed in compliance with registration or other statutory requirements throughout the
world. 

  

	 	(i)	 Communication of Contents of Letter. While employed by the Company and for one year thereafter, you will
communicate the contents of paragraph 8 of this Letter to any person, firm, association, partnership, corporation or other entity that you intend to be employed by, associated with, or represent. 

 

	 	(j)	 Confidentiality Agreements. You agree that you will not disclose to the Company or induce the Company to use
any secret or confidential information belonging to your former employers. Except as indicated, you warrant that you are not bound by the terms of a confidentiality agreement or other agreement with a third party that would preclude or limit your
right to work for the Company and/or to disclose to the Company any ideas, inventions, discoveries, improvements or designs or other information that may be conceived during employment with the Company. You agree to provide the Company with a copy
of any and all agreements with a third party that preclude or limit your right to make disclosures or to engage in any other activities contemplated by your employment with the Company. 

 

	 	(k)	 Relief. You acknowledge and agree that the remedy at law available to the Company for breach of any of
your obligations under this Letter would be inadequate. You therefore agree that, in addition to any other rights or remedies that the Company may have at law or in equity, temporary and permanent injunctive relief may be granted in any proceeding
which may be brought to enforce any provision contained in subparagraphs 8(b), 8(d), 8(e), 8(f), 8(9) and 8(h) inclusive, of this Letter, without the necessity of proof of actual damage or the need to post a bond. 

 

	 	(I)	 Reasonableness. You acknowledge that your obligations under this paragraph 8 are reasonable in the
context of the nature of the Company’s Business and the competitive injuries likely to be sustained by the Company if you were to violate such obligations. You further acknowledge that this Letter is made in consideration of, and is adequately
supported by the agreement of the Company to perform its obligations under this Letter and by other consideration, which you acknowledge constitutes good, valuable and sufficient consideration. 

  
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	9.	 Definitions. 

 

	 	(a)	 “Customer’’ means any client, customer or account, including, but not limited to any
person, firm, corporation, association or other business entity of any kind to which the Company has provided or is providing products or services. 

  

	 	(b)	 “Company’s Business” means the research, development, and/or commercialization of
products and services based on gene-editing technologies in the field of agriculture, food and plant sciences, which is to be construed to include all research, development, and/or commercialization of products and services as may hereinafter evolve
within the gene editing field or is in planning or developmental stages at the Company. 

  

	 	(c)	 “Permanent Disability” means that, because of accident, disability, or physical or mental
illness, you are incapable of performing your duties to the Company or any subsidiary, as determined by the Board. Notwithstanding the foregoing, you will be deemed to have become incapable of performing your duties to the Company or any subsidiary,
if you are incapable of so doing for (i) a continuous period of 90 days and remain so incapable at the end of such 90 day period or (ii) periods amounting in the aggregate to 180 days within any one period of 365 days and remain so
incapable at the end of such aggregate period of 180 days. 

  

	 	(d)	 “Prospective Customer’’ means any prospective client, customer or account, including,
without limitation, any person, firm, corporation, association or other business entity of any kind with which the Company had any negotiations or substantial discussions regarding the possibility of providing products or services within the one
(1) year period preceding your Termination Date 

  

	 	(e)	 “Section 409A” means Section 409A of the Internal Revenue Code of 1986, as amended, and
any guidance issued thereunder. 

  

	 	(f)	 “Termination Date” means the effective date of your termination of employment with the
Company. 

  

	 	(g)	 “Termination For Cause” means the termination by the Company of your employment with the
Company or any subsidiary as a result of (i) your conviction of or plea of guilty or nolo contendere to a crime that constitutes a felony or a crime that constitutes a misdemeanor involving moral turpitude; (ii) your engagement in an act
of fraud, dishonesty, or unauthorized disclosure of Confidential Information (as defined in this Letter); (iii) your willful failure or refusal to comply with any valid and legal directive of the Board of Directors or the CEO; (iv) your gross
negligence or willful misconduct with respect to the Company or any subsidiary or affiliate of the Company; (v) your failure or refusal to perform your duties and responsibilities as Chief Financial Officer,

  
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(other than such failure resulting from incapacity due to physical or mental illness) which is not cured within five (5) days after written notice thereof to you; (vi) your material
failure to comply with the Company’s written policies or rules, as they may be in effect from time to time during your employment, which is not cured within five (5) days after written notice thereof to you; (vii) your willful misconduct
which has, or can reasonably expected to have, a direct and material adverse monetary effect on the Company or (viii) your material breach of this Letter or any other agreement with the Company, which is not cured within thirty (30) days
after written notice thereof to you. 

  

	 	(h)	 “Termination Without Cause” means the termination by the Company of your employment with the
Company for any reason other than a termination for Permanent Disability, death, or a Termination for Cause. 

  

	10.	 Section 409(A). 

 

	 	{a)	 General Compliance. This Letter is intended to comply with Section 409(A) or an exemption
thereunder and will be construed and administered in accordance with Section 409(A). Notwithstanding any other provision of this Letter, payments provided under this Letter may only be made upon an event and in a manner that complies with
Section 409(A) or an applicable exemption. Any payments under this Letter that may be excluded from Section 409(a) either as separation pay provided due to an involuntary separation from service or as a short-term deferral will be excluded
from Section 409(A) to the maximum extent possible. For purposes of Section 409(A), each installment payment provided under this Letter will be treated as a separate payment. Any payments to be made under this Letter upon a termination of
employment will only be made upon a “separation from service” under Section 409A. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Letter comply with
Section 409A and in no event will the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by you on account of non-compliance with
Section 409A. 

  

	 	(b)	 Specified Employees. Notwithstanding any other provision of this Letter, if any payment or benefit
provided to you in connection with your termination of employment is determined to constitute “non-qualified deferred compensation” within the meaning of Section 409A and you are determined to
be a “specified employee” at that time as defined in Section 409A(a)(2)(b)(i), then such payment or benefit will not be paid until the first payroll date to occur following the six-month
anniversary of the Termination Date (the “Specified Employee Payment Date”) or, if earlier, on your death. The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date (and interest on such
amounts calculated based on the applicable federal rate published by the Internal Revenue Service for the month in which your separation from service occurs shall be paid to the you in lump sum on the specified Employee Payment date and thereafter,
any remaining payments will be paid without delay in accordance with their original schedule. 

  
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	11.	 Representations. As of the Effective Date, you represent and warrant to the Company that:

  

	 	(a)	 Your acceptance of employment with the Company and your performance of the duties and responsibilities under
this Letter will not conflict with or result in a violation of, a breach of, or a default under any contract, agreement or understanding to which he is a party or otherwise bound. 

 

	 	(b)	 Your acceptance of employment with the Company and the performance of your duties and responsibilities under
this Letter will not violate any non-solicitation, non-competition or other similar covenant or agreement of a prior employer. 

 

	12.	 Survival. Upon the termination of this Letter, the respective rights and obligations of the parties
hereto will survive this termination to the extent necessary to carry out the intention of the parties to this Letter. 

  

	13.	 Taxes. The Company may withhold from any amounts payable under this Letter all federal, state, city or
other taxes as the Company is required to withhold pursuant to any applicable law, regulation or ruling. Notwithstanding any other provision of this Letter, the Company will not be obligated to guarantee any particular tax result for you with
respect to any payment provided to you hereunder, and you will be responsible for any taxes imposed on you with respect to any such payment. 

  

	14.	 Notices. Any notice provided for in this Letter will be in writing, with a copy to respective individual
email addresses, and will be either personally delivered, sent by reputable overnight carrier or mailed by first class mail, return receipt requested, to the recipient at the address below indicated: 

Notices to You: 
 Mr. Bill
Koschak 
 *************** 

*************** 
 Notices to the
Company: 
 Mr. Jim Blome, CEO 

Calyxt, Inc. 
 2800 Mount Ridge
Road 
 Roseville, MN 55113 

  
 Page 14 of 16 

 or such other address or to the attention of such other person as the recipient party will
have specified by prior written notice to the sending party. Any notice under this Letter will be deemed to have been given when so delivered. 
  

	15.	 Severability. Whenever possible, each provision of this letter will be interpreted in such manner as to
be effective and valid under applicable law, but if any provision of this Letter is held to be invalid or unenforceable in any respect under any applicable law, such invalidity or unenforceability will not affect any other provision, but this Letter
will be reformed, construed and enforced as if such invalid or unenforceable provision had never been contained herein. Should a determination be made by the Court designated in paragraph 20 hereof that the character, duration, or geographical scope
of paragraph 8 of the Letter is unreasonable in light of the circumstances as they then exist, then it is the intention and the agreement of the parties to the letter that the provision be construed by the Court in such a manner as to impose only
those restrictions on the parties that are reasonable in light of the circumstances as they then exist and as are necessary to assure the parties of the intended benefit of the Letter. If, in any judicial proceeding, the Court refuses to enforce all
of the separate provisions included in the Letter because, taken together, they are more extensive than necessary to assure the parties of the intended benefit of the Letter, those provisions which, if eliminated, would permit the remaining separate
provisions to be enforced in such proceeding, will, for the purpose of such proceeding, be deemed eliminated from the Letter. 

  

	16.	 Complete Agreement. This Letter embodies the complete agreement and understanding between the parties
with respect to the subject matter hereof and effective as of its date supersedes and preempts any prior understandings, agreements or representations by or between the parties, written or oral, which may have related to the subject matter hereof in
any way. 

  

	17.	 Counterparts. This Letter may be executed in separate counterparts, each of which will be deemed to be
an original and both of which taken together will constitute one and the same agreement. 

  

	18.	 Successors and Assigns. This Letter will bind and inure to the benefit of and be enforceable by you, the
Company and your and the Company’s respective heirs, executors, personal representatives, successors and assigns, except that neither party may assign any rights or delegate any obligations hereunder without the prior written consent of the
other party. You hereby consent to the assignment by the Company of all of its rights and obligations hereunder to any successor to the Company by merger or consolidation or purchase of all or substantially all of the Company’s assets, provided
such transferee or successor assumes the liabilities of the Company hereunder. 

  
 Page 15 of 16 

	19.	 Governing Law. This Letter will be governed by, and construed in accordance with, the internal,
substantive laws of the State of Minnesota. You agree that the state and federal courts located in the State of Minnesota, without regard to or application of conflict of laws principles, will have jurisdiction in any action, suit or proceeding
against you based on or arising out of this Letter and you hereby: (a) submit to the personal jurisdiction of such courts; (b) consent to service of process in connection with any action, suit or proceeding against you; and (c) waive
any other requirement (whether imposed by statute, rule of court or otherwise) with respect to personal jurisdiction, venue or service of process. 

  

	20.	 Amendment and Waiver. The provisions of this Letter may be amended or waived only with the prior written
consent of you and the Company, and no course of conduct or failure or delay in enforcing the provisions of this Letter will affect the validity, binding effect or enforceability of this Letter. 

 

	21.	 Acknowledgement of Full Understanding. I acknowledge and agree that I have fully read and understand
this Letter, and I have had the opportunity to ask questions and consult with an attorney of my choice before signing this Letter. 

 If
these terms are acceptable to you, please sign and date this Letter in the appropriate space below and return it to me as soon as possible. We look forward to you becoming a part of our team. 

Please call me with any questions. 
  

	
	Sincerely,
	
	/s/ Jim Blome
	Jim BLOME, CEO
	  
 Date: 12/19/2018

  

	
	Agreed and Accepted:
	
	/s/ William Koschak
	William Koschak
	  
 Date: 12/21/2018

  
 Page 16 of 16inserraempext2019

           AMENDED    AND  RESTATEDEMPLOYMENT        AGREEMENT        THIS   AMENDED     AND    RESTATED    EMPLOYMENT      AGREEMENT     (the "Agreement")                                                   "Effective             is madeandenteredinto asofthis 3rd day ofJanuary,2019(the   Date"),                               "Executive"), by andamongThomasJ. Inserra(the          on theonehand,andPacificMercantileBank,                                  "Bank"), a California banking corporation (the    on the other hand (Executive and the Bank collectively,the "Parties").                                    RECITALS        WHEREAS,   Pacific MercantileBancorp("PMB") is a bankholding companyregistered underthe Bank Holding CompanyAct of 1956, as amended,subjectto the primary supervision andregulationofthe BoardofGovernorsofthe FederalReserveSystem("FRB").       WHEREAS,   the Bank is a California charteredcommercial bank and wholly-owned subsidiaryofPMB, subjectto theprimary supervisionandregulationoftheCalifomiaDepartment ofBusinessOversight("CDBO") andthe FRB by virtue ofits membershipin the FederalReserve Bank of SanFrancisco.        WHEREAS,   Executive is currently employed by the Bank pursuant to that certain                                              "Prior EmploymentAgreementdatedasofMay   31, 2016 (the   Agreement");and       WHEREAS,the  Bankdesiresto continueto retaintheservicesofExecutiveandExecutive desiresto continue to provide such servicesto the Bank, upon the terms and subject to the conditions set forth in this Agreement,which amendsand restatesthe Prior Agreementin its entirety.        NOW,  THEREFORE,basedon   the foregoingpremisesandin considerationofthemutual covenantsandrepresentationscontainedherein,the Partiesheretoagreeas follows:                                 "Em^loyer")       1.    Tenn.  The Bank (the           hereby employs Executive, and Executive herebyacceptsemploymentwith Employer,underthe termsofthis Agreement. The term ofthis                                               "Initial Agreementshall be for a period of three (3) years (the Term") commencingas of the Effective Date,subjectto the terminationprovisionsofparagraph4. Theterm ofthis Agreement shall be automaticallyextendedfor one (1) additional year, unlesseither party gives the other written noticeofnon-renewalnot lessthansix (6) monthsbeforetheexpirationoftheInitial Term. Theterm ofthis Agreement,asin effect from time to time in accordancevvith the foregoing,shall                         "Term". be refen-edto herein as the     The period of time betvveenthe Effective Date and the termination of the Executive's employment hereundershall be referred to herein as the "EmploymentPeriod."        2.    Employment.              (a)   Positionsand Reporting. Executive shall be employedas the Executive Vice President,ChiefCreditOfficer andChiefRiskOfficer ofthe Bank. During theEmployment Period,Executiveshall reportdirectly to the ChiefExecutiveOfficer oftheBank.   SN'IRM:485961475.3                    -1- 

 

            (b)   Authority andDuties. Executiveshallexercisesuchauthority,performsuch executiveduties and functions and dischargesuch responsibilitiesas are reasonablyassociated vvith Executive'sposition as Executive Vice President,Chief Credit Officer and Chief Risk Officer, commensuratewith the authority vestedin Executivepursuantto this Agreementand consistentwith the bylaws ofthe Bank and ofPMB. During the EmploymentPeriod,Executive shalldevotehis full businesstime, skill andeffortsto thebusinessofEmployerandits subsidiaries and shall not during the EmploymentPeriodengagein any otherbusinessactivities, duties,or pursuitswhatsoever,or directly or indirectly renderany servicesof a business,commercial,or           natureto any other    or organization,whetherfor compensationor otherwise, professional              person                                      "Board"). without the prior written consent of the Board of Directors of Employer (the Notvvithstandingtheforegoing,Executivemay(i) servein anycapacitywith anycivic, educational or charitableorganization,or any tradeassociation,without seekingor obtainingapprovalby the Board, provided such activities and service do not materially interfere or conflict with the performanceofhis dutieshereunderand(ii) with theapprovalofthe Boardserveon theboardsof directorsof other corporationsthat are not involved in commercialbanking or similar business activities;provided,however,Executiveshall not directly or indirectly acquire,hold, or retainany beneficialinterestin anybusinesscompetingwith or similar in natureto the businessofEmployer exceptpassiveshareholderinvestmentsin otherfinancial institutionsandtheir respectiveaffiliates which do not exceedthreepercent(3%) of the outstandingvoting securitiesin the aggregatein anysinglefinancial institution andits affiliates on a consolidatedbasis.              (c)   Executiveherebyrepresentsand agreesthat the servicesto be performed hereunderare of a special,unique, unusual,extraordinary,and intellectual characterthat gives them a peculiar value, the loss of which cannotbe reasonablyor adequatelycompensatedin damagesin an action at lavv. Executivethereforeexpresslyagreesthat Employer,in additionto any otherrights or remediesthat Employermay possess,shall be entitledto injunctive and other equitablereliefto preventor remedya breachofthis Agreementby Executive.       3.    CompensationandBenefits.              (a)   Salary. During the Term Executiveshall receivean annualbasesalaryof                                             "Base $330,000payablein equalsemimonthlypayments(the   Salary"). SuchBaseSalaryshall be subjectto review in the eleventh(11th) monthafterthe EffectiveDate,andat eachanniversaryof the Effective Date thereafter,or during Executive'snormal officer review period, for possible adjustmentby the ChiefExecutiveOfficer in concurrencevvith the CompensationCommitteeof theBankbasedon variousfactorsincluding,but not limited to, marketconditions,theconsolidated resultsofoperationsoftheBankandPMB andtheperformanceofExecutive,but shall in no event be decreasedfrom the level set forth aboveduring the Term. All paymentsof BaseSalaryshall be subjectto applicableadjustmentsfor withholding taxes,pro-rationsfor any partial payment periodsand suchotherapplicablepayroll proceduresofthe Bank.              (b)   SalaryContinuationDuring Disability. IfExecutivefor any reason(except asexpresslyprovidedbelow) becomestemporarilyor permanentlydisabledso thathe is unableto perform the duties under this Agreement,Executive shall be paid the Base Salary otherwise payableto Executivepursuantto subparagraph3(a) ofthis Agreement,reducedby the amounts receivedby Executivefrom statedisability insurance,or worker'scompensationor othersimilar   SMRH:485961475.3                      -2- 

 

insurancebenefitsthroughpoliciesprovidedby Employer,for a ofsix (6) monthsfrom the                                         "disability"period dateofdisability. For purposesofthis paragraph3(b), shall be definedasprovidedin the Employer'sdisability insuranceprogram.             (c)  CashIncentivePayments.Executiveshall be eligible to participatein the ManagementAnnual IncentivePlan. Executive'sbonus,ifany, shall be paid in onelump sumto Executiveat suchtime as otherexecutivebonusesarepaid. The ChiefExecutiveOfficer retains the discretionto determinevvhethera pro-ratabonusis appropriateif the Executiveis terminated or leavesthe employoftheBankprior to the annualdeterminationofbonuses.All cashincentive paymentsshall be subjectto applicableadjustmentsfor applicablewithholding andpayroll taxes. Notwithstandingany provision of any incentive plan or arrangement,no right of continued employmentor anymodificationofthe"at will" natureofExecutive'semploymentwith Employer shall be confen-eduponExecutivethereunderor resulttherefrom.             (d)  Insurance Benefits. During the Employment Period, Executive shall receive such group life, disability, and health (including medical, dental, vision and hospitalization),accidentand disability insurancecoverageand other benefitswhich Employer extends,as a matterof policy, to all of its executiveemployees,exceptas otherwiseprovided herein,andshall be entitledto participatein all benefitandotherincentiveplansofthe Employer, on the samebasisasotherlike employeesofEmployer.             (e)  Vacation. Executiveshall be entitledto four (4) weeksof annualvacation during the EmploymentPeriodat his thenexistingrate of BaseSalary,which shall be scheduled in Executive'sdiscretion, subject to and taking into account applicable banking laws and regulationsand businessneeds. Vacationwill accruein accordancewith the Bank'spersonnel policies.             (f)  Business Expenses. During the Employment Period, Employer shall promptly reimbursethe Executivefor all documentedordinaryand necessarybusinessexpenses incurredby Executivein theperformanceofhis dutiesunderthis Agreement.Executiveshall also be reimbursedfor reasonableexpensesincurred in activities associatedwith promoting the businessof Employer,including expensesfor entertainment,travel, conventions,andeducational programs. All such expensesdescribedabove will be subject to compliancewith applicable policiesof Employer. All suchreimbursementsshall be madeuponpresentationandapprovalof receipts,invoicesor otherappropriateevidenceof suchexpensein accordancewith the policies Employerin effectfrom time to time.             (g)  Professional License Expenses. During the Employment Period, Employer shall reimbursethe Executive for all documentedordinary and necessaryexpenses incurred by Executive in maintaining professionalbusinesslicensesand certificationsthat he possessesasofthe dateofthis Agreement. All suchexpensesdescribedabovewill be subjectto compliancewith applicablepolicies of Employer. All suchreimbursementsshall be madeupon presentationand approvalof receipts,invoicesor otherappropriateevidenceof suchexpensein accordancevvith the policies Employerin effect from time to time.             (h)  Car Allovvance. The Bank shall provide the Executive with a monthly automobileallowanceof $950.00per monthduring the EmploymentPeriod. Executiveshall (A)   SN'Dy4:485961475.3                -j- 

 

obtain and maintain public liability insuranceand property damageinsurancepolicies with insurer(s)acceptableto Employerandwith suchcoveragein suchamountsasmay be reasonably acceptableto Employer,and(B) providecopiesof suchpolicies,endorsementsor otherevidence of insuranceacceptableto Employer. Any amountspaid by Executive for excessinsurance coveragerequiredby Employershall be reimbursed.              (i)   Incentive Compensation. Executive shall have the opportunity to participatein an annualincentiveplan uponthe termsandsubjectto the conditionsapprovedby theBoardofDirectors(or duly authorizedcommitteethereof)ofPMB. Any suchannualincentive plan may be amended,suspendedor terminated,in whole or in part, by the BoardofDirectors(or duly authorizedcommitteethereof)of PMB in its solediscretion.        4.    Terminationof Employment.              (a)   Terminationfor Cause. The Board of Bank may terminateExecutive's                         "Cause"          "Cause." employment hereunderfor        or without         For purposesof this Agreement              "Cause" terminationfor      shall mean(i) convictionof a crime directly relatedto his employment hereunder, (ii) conviction of a crime involving moral turpitude, (iii) willful and gross mismanagementof the businessand affairs of Employer,(iv) willful and intentionalviolation of any stateor federalbankingor securitieslaws, or of the bylaws, rules, policies or resolutionsof Bank, or therulesor regulationsofor anyfinal orderissuedby the FRB, the CDBO, or theFederal                              "FDIC"), DepositInsuranceCorporation(the      (v) any violation ofthe Employer'spolicy against harassment,equal employment opportunity policy, drug and alcohol policy and/or the confidentiality agreementthat Employeeshall executeat the commencementof his employment and(vi) breachofanymaterialprovisionofthis Agreement. For puqiosesofthis Agreement,no                                                    "willful" act, or the failure to act, on Executive'spart shall be considered unlessdone,or omitted to be done,not in good faith and without reasonablebeliefthatthe actionor omissionwas in the best interestsof Employer. Executiveshall not be deemedto have beenterminatedfor Cause unlessand until there shall have beendeliveredto him a notice of termination. In the event employmentof Executiveis terminatedpursuantto this subparagraph4(a), Employershall have no further liability to Executiveotherthan for compensationaccruedand for reimbursementof businessexpensesincurredthroughthe dateof terminationbut not yet paid. Terminationunder this subparagraph4(a)shallnotprejudiceanyremedythattheEmployermayhaveat law, in equity, or underthis Agreement.              (b)   Terminationby EmployerWithout Causeor by Executivefor GoodReason.                                                          "Cause" Employer may  terminate the employment of Executive vvithout     (as defined in subparagraph4(a)) at any time during the Employment Period by giving written notice to Executivespecifyingthereinthe effective dateof termination. Executiveshall havethe right at anytime to terminatehis employmentwith theBankfor anyreasonor for no reason.For purposes of this Agreement, and subject to Employer's opportunity to cure as provided in Section4(c) hereof,Executiveshall have"GoodReason"to terminatehis employmenthereunder if suchterminationshall be the resultof:                    (i)   a material diminution during the Employment Period in the Executive'stitle, duties or responsibilitiesas set forth in Section2 hereofvvithout Executive's consent;   SMRM:4S5961475.3                      -4- 

 

                (ii)  a material breachby Employer of the compensationand benefits provisionssetforth in Section3 hereof;                  (iii) a material breach by Employer of any material terms of this Agreement;or                  (iv)  the relocationof Executive'sprincipal placeof employmentto any locationmorethan50 miles from the Bank'sheadquartersat the Effective Date.             (c)  NoticeandOpportunityto Cure. Notvvithstandingthe foregoing,it shall be aconditionprecedentto Employer'sright to terminatethis Agreementundersubparagraph4(a)(vi)                                         "Good andExecutive'sright to terminatehis employmentfor Reason"that (1) the party alleging a breachshall first havegiven the otherparty written noticestatingwith specificity the reasonfor the termination("breach")and (2) ifsuch breachis susceptibleofcureor remedy,a period of30 daysfrom and afterthe giving ofsuchnoticeto curethe breach. Ifthe breachcannotreasonably be cured or remediedvvithin 30 days, the period for remedyor cure shall be extendedfor a reasonabletime (not to exceed30 days),providedthe party againstwhom a breachis allegedhas madeandcontinuesto makea diligent effort to effect suchremedyor cure.             (d)  TerminationUpon Death or PermanentDisability. This Agreementshall                                                     "permanent terminateautomaticallyupon: (i) the deathof Executive,and (ii) the disability" of Executiveas suchterm is defined in the disability insuranceprovided by Employer, or if such insuranceis not providedby Employer,the term shall meanthatExecutivehasbeendeemedby a medical careproviderto indefinitely be unableto perform the essentialfunctionsofExecutive's position with or without accommodation.If the EmploymentPeriodis terminatedby reasonof thepermanentdisability oftheExecutive,Employershall give 30-days'advancewritten noticeto thateffectto the Executiveor his representative.EmployerandEmployeeshall comply vvith any obligationstheymayrespectivelyhave,understateor federallaw, to interactregardingreasonable accommodations.       5.    Consequencesof Termination. The following are the benefitsto vvhich Executive is entitleduponterminationofemploymentin all positionsvvith Employer,andsuchpaymentsand benefitsshall be the exclusivepaymentsand benefitsto vvhich Executiveis entitled upon such termination. Exceptin the caseof terminationofemploymentby Employerfor Cause,or dueto death,thepost-terminationpayments(otherthanthoserequiredby law) andbenefitsshall only be provided if the Executive first enters into a form of general releaseagreementreasonably satisfactoryto EmployerreleasingEmployerfrom anyandall claims,knownandunknown,related to the Executive'semploymentvvith the Bank.             (a)  TerminationWithoutCauseor for GoodReason.In theeventoftermination                                       "Cause" ofExecutive'semployment(i) by Employerwithout (otherthanupondeathor permanent                           "Good disability), or (ii) by Executivefor Reason",Executiveshall be entitled to the following severancepay:                  (i)   SeverancePay- a lump sumamountequalto tvvelve (12) monthsof theExecutive'sannualBaseSalary. This lump sumpaymentshall be paid no laterthanthirty (30) daysafterthe final day ofExecutive'semploymentwith Employer.   SMRH:485961475.3                  -5- 

 

            (b)   TerminationUpon Disability. In the eventof terminationofExecutive's employmenthereunderby Employeron accountof permanentdisability, Employershall pay to Executivethe accruedBaseSalaryand accruedand unusedvacationeamedthroughthe dateof disability. Suchpaymentshall be madeno laterthansixty (60) daysafterthe dateofdisability.              (c)   TeiTnination Upon Death. In the event of termination of Executive's employmenthereunderon  account of Executive'sdeath, Employer shall pay to Executive's beneficiaryor beneficiariesor his estate,asthe casemay be, theaccruedBaseSalaryandaccrued andunusedvacationeamedthroughthe dateof death. Suchpaymentshall be madeno laterthan sixty (60) daysafterthe dateofdeath. In addition,Executive'sbeneficiary(ies)or his estateshall be entitled to the paymentof benefitspursuantto any life insurancepolicy of Executive, as providedfor in Section3(d) above. Executive'sbeneficiaryor estateshallnot berequiredto remit to Employerany paymentsreceivedpursuantto any life insurancepolicy purchasedpursuantto Section3(d) above.              (d)   Termination for Causeor Due to End of the Term. In the event the employmentof Executiveis terminatedby Employerfor Cause,no severancepaymentor benefit shall be provided. In the event the employmentof Executiveis terminatedas a result of the expirationoftheTerm, Executiveshall be entitledto no severancepaymentor benefitofanykind notwithstandinganyprovisionto thecontraryin the Employer'semployeemanualor policiesthen in effect, except as to matters such as coverageunder The ConsolidatedOmnibus Budget ReconciliationAct of 1985 ("COBRA") andunusedvacationrequiredby law withoutreferenceto suchmanualor policies.              (e)   Accrued Rights. Notwithstanding the foregoing provisions of this Section5, in the eventof terminationofExecutive'semploymenthereunderfor any reasonor for no reason,Executiveshall beentitledto paymentofanyunpaidportionofhis BaseSalarythrough the effective date of termination,paymentof any unreimbursedexpensesincurred pursuantto Sections3(f) or 3(g)above,andpaymentofany accruedbut unpaidbenefitssolely in accordance with thetermsofany incentivebonusor employeebenefitplan or programofEmployer.              (f)   Non-assignability.NeitherExecutivenor any otherpersonor entity acting on his behalfor as his representativeshall haveany povveror right to transfer,assign,anticipate, hypothecate,mortgage,commute,modify, or othervviseencumberin advanceany of the rights or benefitsofExecutiveunderthis Section5, nor shall any of said rights or benefitsbe subjectto seizurefor the paymentof any debts,judgments,alimony or separatemaintenance,owed by Executiveor any other personor entity, or be transferableby operationof law in the event of bankruptcy, insolvency or othervvise. The terms of this Section 5(f) shall not affect the interpretationofany otherprovisionofthis Agreement.              (g)   Regulatory Restrictions. Notwithstanding anything to the contrary containedin this Agreement:                    (i)   If Executive is removed and/or permanently prohibited from participating in the conductof Employer'saffairs by an order issuedunder Section 8(e)(4) or 8(g)(l) ofthe FederalDeposit InsuranceAct ("FDIA") (12 U.S.C. 1818(e)(4)and (g)(l)), all obligationsof Employer underthis Agreementshall terminate,as ofthe effective date of such   SMRI-I:485961475.3                    -6- 

 

order, exceptfor the paymentof BaseSalarydue and owing on the effectivedateof said order, reimbursementof businessexpensesincurred as of the effective date of terminationand such mattersrequiredby law.                    (ii)  If Executive is suspendedand/or temporarily prohibited from participating in the conductof Employer'saffairs by a notice servedunder Section 8(e)(3) or 8(g)(l) ofthe FDIA (12 U.S.C. 1818(e)(3)and (g)(l)), all obligationsof Employer underthis Agreementshall be suspendedasofthedateofservice,unlessstayedby appropriateproceedings. If the chargesin the notice are dismissed,Employer shall (i) pay Executiveall or part of the compensationvvithheld while its contractobligationswere suspendedand (ii) reinstate(in whole or in part) any of its obligationswhich weresuspended.                    (iii) If Bank is in default(asdefinedin Section3(x)(l) oftheFDIA), all obligationsunderthis Agreementshall terminateasofthe dateofdefault,but the vestedrights of thepartiesshall not be affected.                    (iv)  All obligationsunderthis Agreementshall be terminated,exceptto the extenta determinationis madethat continuationofthecontractis necessaryfor the continued                                                                   "Director"), operationof Employer(i) by the directorof the FDIC or his or her designee(the at thetime theFDIC entersinto anagreementto provideassistanceto or on behalfofEmployerunder the authority containedin 13(c) of the FDIA; or (ii) by the Director, at the time the Director approvesa supervisorymergerto resolveproblemsrelatedto operationof Employer vvhen the Employeris determinedby the Directorto be in an unsafeandunsoundcondition. Any rights of the Executivethathavealreadyvested,hovvever,shall not be affectedby suchaction.                    (v)   No paymentsshallbemadepursuantto this paragraph5 or anyother provision herein in violation of the requirementsof Section 18(k) of the FDIA (12 U.S.C. §1828(k)).              (h)   IRC Section 280G. In no event shall the payment(s)describedin this paragraph5 exceedthe amountpermittedby Section280GoftheIntemalRevenueCodeof 1986, asamendedf'Section280G"). Therefore,ifthe aggregatepresentvalue(determinedasofthedate ofthechangeofcontrol in accordancevvith theprovisionsof Section280G)ofboththe severance paymentandall otherpaymentsto Executivein the natureof compensationvvhich are contingent on a changein ownershipor effectivecontrolofBankor PMB or in the ownershipofa substantial                                  "Aggregate                          '"parachute portion of the assetsof the Bank (the      Severance")vvould result in a          asdefinedunderSection280G,thenthe AggregateSeveranceshall not be greaterthan payment,"                                "base             "base an amountequalto 2.99 multiplied by Executive's amount"for the  period," as those terms are defined under Section280G. In the eventthe AggregateSeveranceis requiredto be reducedpursuantto this subparagraph5(h), the lastpaymentsin time shall be reducedfirst.              (i)   Conditionsto SeveranceBenefits. The Bank shall have the right to seek repaymentof the severancepaymentsandbenefitsor to terminatepaymentsor benefitsprovided by this paragraph5 (i) in theeventthattheExecutivefails to honor,in accordancewith theirterms, the provisionsofparagraphs6 or 9 hereofor(ii) to the extentsuchpaymentsor benefitsvvould violate Section18(k) ofthe FDIA (12 U.S.C. §1828(k)).   SN'1RH:485961475.3                    -7- 

 

     6.    Confidentialitv. Executive agrees that he will not at any time during the EmploymentPeriodor atanytime thereafterfor anyreason,in anyfashion,form or manner,except as requiredby law to comply vvith legal process,eitherdirectly or indirectly, divulge, discloseor communicateto anyperson,firm, corporationor otherbusinessentity, in anymannerwhatsoever, any financial information or trade or businesssecretsof Employer, its subsidiariesor affiliates including,without limiting the generalityoftheforegoing,thetechniques,methodsor systemsof its operationor management,any information regardingits financial matters,customerlists, computersoftware,anyofits customerslists, governmentalrelationsstrategiesandmethodologies, customercontacts,underwriting methodology, loan program configuration and qualification strategies,marketingstrategiesand its mannerof operation,its plansor othermaterial        "Busmess").        proposals, data(the        Theprovisionsofthis Section6 shall not apply to (i) informationdisclosed in the performanceofExecutive'sdutiesto Employerbasedon his good faith beliefthatsucha disclosureis in thebestinterestsofEmployer;(ii) informationthatis, atthetime ofthedisclosure, public knowledge;(iii) infoiTnation disseminatedby Employer to third parties in the ordinary courseofbusiness;(iv) informationlawfully receivedby Executivefrom a third party who, based upon inquiry by Executive,is not boundby a confidentialrelationshipto Employeror otherwise improperly receivedthe information; or (v) informationdisclosedundera requirementof law or asdirectedby applicablelegalauthorityhavingjurisdictionoverExecutive. In theeventExecutive is requiredby lavv to disclosesuchinformationdescribedabove,Executivewill provideEmployer and their counselvvith immediatenotice of such requestso that they may considerseekinga protective order. Notwithstandingthe foregoing, Executive may disclose such information concerningthe businessor operationsof Employerand its subsidiariesand affiliates as may be required by the FRB, CDBO, FDIC or other regulatory agencyhaving jurisdiction over the operationsof Employerin connectionwith an examinationof Bank or PMB or otherproceeding conductedby suchregulatoryagency.       Executive agreesthat all written, printed or electronicmaterial, notebooksand records including, without limitation, computerdisks,usedand/ordevelopedby Executivefor Employer during the Term ofthis Agreement,otherthanExecutive'spersonaladdresslists, telephonelists, notesand diaries, are solely the property of Employer, and that Executivehas no right, title or interest therein. Upon termination of Executive's employment, Executive or Executive's representativeshall promptly deliver possessionof all such materials (including any copies thereof)to the Bank.       Notwithstandingany otherprovision in this Agreement,Executiveshall not be held liable for a disclosureof Employer'strade secret(s)that is made either (i) in confidenceeither to a governmentofficial, either directly or indirectly, or to an attorney solely for the purposeof reportingor investigatinga suspectedviolation ofthelaw; or (ii) in a complaintor otherdocument filed in a lawsuit so long asthe filing is madeunderseal. To the extentExecutivefiles a lavvsuit allegingretaliationby the Employerfor reportinga suspectedviolation ofthe lavv, Employeemay disclosethe trade secretto Executive'sattorneyand use the tradesecretinformation in a court proceedingso long as Employeefiles any documentcontainingthe trade secretunder seal and doesnot disclosethetradesecretexceptpursuantto court order.      7.    Key-manLife Insurance.Employershall havethe right to obtainandhold a "key- man" life insurancepolicy on the life of Executivevvith the Bank as beneficiaryof the policy.   SIVIRFI:485961475.3               -8- 

 

Executiveagreesto provide any infoi-mation requiredfor the issuanceof suchpolicy and submit himselftoany physicalexaminationrequiredfor suchpolicy.        8.    UnsecuredGeneralCreditor. NeitherExecutivenor anyotherpersonor entity shall have any legal right or equitablerights interestsor claims in or to any property or assetsof Employerundertheprovisionsofthis Agreement.No assetsofEmployershall be heldunderany trust for the benefitof Executiveor any otherpersonor entity or held in any way as securityfor the fulfilling oftheobligationsofEmployerunderthis Agreement.All ofEmployer'sassetsshall be and remainthe general,unpledged,unrestrictedassetsofEmployer. Employer'sobligations under this Agreementare unfi.inded and unsecuredpromises,and to the extent such promises involve the paymentof money,they arepromisesto pay moneyin the future. Executiveandany personor entity claiming throughhim shall be unsecuredgeneralcreditorswith respectto any rights or benefitshereunder.        9.    BusinessProtectionCovenants.              (a)   CovenantNot to Compete. Executiveagreesthat he will not, during the EmploymentPeriod,voluntarily or involuntarily, directly or indirectly, (i) engagein any banking or financial productsor servicebusiness,loan originationor deposit-takingbusinessor any other businesscompetitivevvith thatoftheBankor its subsidiariesor affiliates("CompetitiveBusiness") vvithin OrangeCounty, Los AngelesCounty, SanDiego Countyand SanBernardinoCounty(the "Market        Area"), (ii) directly or indirectly own any interestin (other than lessthanthreepercent (3%) ofanypublicly tradedcompanyor mutualfund), manage,operate,control,be employedby, or provide managementor consultingservicesin any capacityto any firm, coi-poration,or other entity (otherthan Employeror its subsidiariesor affiliates) engagedin any CompetitiveBusiness in the Market Area, or (iii) directly or indirectly solicit or otherwiseintentionally causeany employee,officer, or memberofthe Boardor any ofits subsidiariesor affiliates to engagein any actionprohibitedunder(i) or (ii) ofthis paragraph9(a).              (b)   InducingEmployeesTo LeaveTheBank;EmploymentofEmployees.Any attempton the part ofthe Executiveto induceothersto leaveEmployer'semploy, or the employ of any of its subsidiariesor affiliates, or any effort by Executiveto interfere with Employer's relationshipwith its other employeesvvould be harmful and damagingto Employer. Executive agreesthat during the EmploymentPeriod and for a period of twelve (12) monthsthereafter, Executivewill not in any vvay, directly or indirectly: (i) induceor attemptto induceany employee ofthe Employeror any of its subsidiariesofaffiliates to quit employmentwith Employeror the relevantsubsidiaryor affiliate; (ii) otherwiseinterferewith or disrupt the relationshipsbetween Employerand its subsidiariesand affiliates and their respectiveemployees;(iii) solicit or recruit any employeeof Employeror any subsidiaryor affiliate or any former employeeof Employeror any subsidiaryor affiliate.              (c)   NonsolicitationofBusiness. For a period oftwelve (12) monthsfrom the date of termination of employment, Executive vvill not, using Employer's trade secretsor confidential information, divert or attemptto divert from Employer or any of its subsidiariesor affiliates,anybusinessEmployeror a relevantsubsidiaryor affiliate hadenjoyedor solicitedfrom its customers,borrovvers,depositorsor investorsduringthetwelve(12) monthsprior to termination ofhis employment.   SN'IRFI:485961475.3                   -9- 

 

            (d)   Bank's Ownership of Inventions. To the extent that Executive has intellectual property rights of any kind in any pre-existing vvorks which are subsequently incorporatedin any work or work productproducedin renderingservicesto Bank, PMB or any their subsidiariesor affiliates, ExecutiveherebygrantsBank a royalty-free, irrevocable,world- wide, perpetualnon-exclusivelicense(with the right to sublicense),to make,havemade,copy, modify, use, sell, license, disclose,publish or othervvisedisseminateor transfer such subject matter. Similarly, Executiveagreesthat all inventions,discoveries,improvements,tradesecrets, original vvorks of authorship,developments,formulae, techniques,processes,and knovv-hovv, whetheror not patentable,andwhetheror not reducedto practice,that are conceived,developed or reducedto practiceduringExecutive'semploymentwith Employer,eitheraloneorjointly with others,ifon Employer'stime, usingEmployer'sfacilities, or relatingto Employershall be ovvned exclusivelyby the Bank, and Executiveherebyassignsto the Bank all ofExecutive'sright, title andinterestthroughoutthe world in all suchintellectualproperty. Executiveagreesthatthe Bank shall be the soleownerof all domesticand foreignpatentsor otherrights pertainingthereto,and further agreesto executeall documentsthat the Bank reasonablydeterminesto be necessaryor convenient for use in applying for, prosecuting, perfecting, or enforcing patents or other intellectual property rights, including the executionof any assignments,patentapplications,or otherdocumentsthattheBankmay reasonablyrequest. This provision is intendedto apply to the extentpermittedby applicablelavv andis expresslylimited by Section2870oftheCaliforniaLabor Code,which is setforth in its entiretyin Exhibit A to this Agreement. By signingthis Agreement, Executiveacknowledgesthat this Paragraphshall constitutevvritten notice of the provisionsof Section2870.              (e)   Bank'sOvvnershipofCopyrights. Executiveagreesthat all original works of authorshipnot othervvise within the scope of paragraph9(d) above that are conceivedor developedduring Executive'semploymentwith Employer,either aloneorjointly with others,if on Employer'stime, using Employer facilities, or relating to Employer, or its subsidiariesor             "vvorks affiliates, are   for hire" to the greatestextent permitted by law and shall be ovvned exclusivelyby the Bank, and Executiveherebyassignsto the Bank all ofExecutive'sright, title, andinterestin all suchoriginal works ofauthorship. Executiveagreesthat the Bank shall be the sole owner of all rights pertainingthereto,and further agreesto executeall documentsthat the Bankreasonablydeterminesto be necessaryor convenientfor establishingin the Bank'snamethe copyrightto any suchoriginal vvorks ofauthorship.        10.   Resignations.The Executiveagreesthatuponterminationofemployment,for any reason,he will submit his resignationsfrom all offices vvith the Bank and PMB and all of their respectivesubsidiariesandaffiliates.        11.   OtherAgreements.ThePartiesfurtheragreethatto the extentofanyinconsistency betvveenthis Agreementand any employeemanualor policy of Employer,that the termsof this Agreementshall supersedethetermsof suchemployeemanualor policy.        12.   Notice. For the purposesof this Agreement,notices, demandsand all other communicationsprovided for in this Agreementshall be in vvriting and shall be personally delivered or (unlessothervvisespecified) mailed by United Statescertified or registeredmail, return receiptrequested,postageprepaid,or sentby facsimile,providedthat the facsimile cover   SMRM:485961475.3                     -10- 

 

sheetcontainsa notationofthedateandtime oftransmission,and shall be deemedreceived:(i) if personallydelivered,uponthe dateofdeliveryto the addressofthepersonto receivesuchnotice, (ii) ifmailed in accordancewith the provisionsofthis Section12, two (2) businessdaysafterthe dateplacedin the United Statesmail, (iii) if mailedotherthan in accordancewith the provisions ofthis Section12 or mailedfrom outsidetheUnited States,uponthedateofdeliveryto theaddress of the personto receivesuchnotice, or (iv) if given by facsimile,when sent. Notices shall be addressedasfollows:              IftotheEmployer:              Pacific MercantileBank             949 SouthCoastDrive             Third Floor             CostaMesa,Califomia, 92626             Attn: ChiefExecutiveOfficer              Ifto the Executive,to:              Mr. ThomasJ. Inserra             30312ChapalaCourt             LagunaNiguel,CA 92677  or to suchotherrespectiveaddressesasthePartiesheretoshalldesignateto theotherby like notice, providedthatnoticeofa changeofaddressshall be effectiveonly uponreceiptthereof.      13.   Arbitration. Any disputeor controversyarisingunderor in cormectionvvith this Agreement, the inception or termination of the Executive's employment, or any alleged discriminationor tort claim relatedto such employment,including issuesraisedregardingthe Agreement'sformation, inteipretation or breach, shall be settled exclusively by binding arbitration. Theonly exceptionto therequirementofbindingarbitrationshall befor claimsarising underthe National Labor RelationsAct which are broughtbeforethe National Labor Relations Board, claims for medical and disability benefitsunderthe Califomia Workers' Compensation Act, EmploymentDevelopmentDepartmentclaims,or as may otherwisebe requiredby stateor federal law. Hovvever, nothing herein shall prevent the Executive from filing and pursuing proceedingsbeforethe California Departmentof Fair Employmentand Housing, or the United StatesEqual EmploymentOpportunity Commission(althoughif Executivechoosesto pursuea claim follovving the exhaustionofsuchadministrativeremedies,thatclaim would be subjectto the provisionsofthis Agreement).In additionto anyotherrequirementsimposedby law, thearbitrator selectedshall be a retiredCalifomiaSuperiorCourtJudge,or an otherwisequalified individual to vvhom the partiesmutually agree,and shall be subjectto disqualificationon the samegroundsas vvould apply to ajudgeofsuchcourt. All rules ofpleading(including the right ofdemurrer),all rules of evidence,all rights to resolution of the dispute by meansof motions for summary judgmentjudgmenton the pleadings,andjudgmentunderCodeofCivil ProcedureSection631.8 shall apply andbe observed.The arbitratorshall havethe immunity ofajudicialofficer from civil liability when acting in the capacity of an arbitrator, which immunity supplementsany other existing immunity. Likewise, all communicationsduring or in connectionwith the arbitration   SMRH:485961475.3                  -11- 

 

proceedingsare privileged in accordancewith Cal. Civil Code Section47(b). As reasonably requiredto allow full useand benefitofthis agreement'smodificationsto the Act's procedures, thearbitratorshall extendthetimessetby theAct for the giving ofnoticesandsettingofhearings. Avvards shall includethe arbitrator'swritten reasonedopinion. Resolutionofall disputesshall be basedsolely uponthe lavv governingthe claimsanddefensespleaded,and the arbitratormay not invoke any basis(includingbut not limited to, notionsof'justcause")otherthansuchcontrolling law. By this binding arbitrationprovision,both ExecutiveandEmployergive up their respective right to trial byjury ofany claim onemayhaveagainstthe other.        14.   Waiver of Breach. Any vvaiver of any breachof this Agreementshall not be construedto be a continuingvvaiver or consentto any subsequentbreachon the part eitherofthe Executiveor of Employer. No delayor omissionin the exerciseof any power, remedy,or right hereinprovidedor otherwiseavailableto any party shall impair or affect the right of suchparty thereafterto exercisethe same. Any extensionof time or other indulgencegrantedto a party hereundershall not othervvisealteror affectany power,remedyor right of any otherparty, or the obligationsof the party to whom suchextensionor indulgenceis grantedexceptas specifically waived.        15.   Non-Assignment;Successors.Neitherparty heretomay assignhis or its rights or delegatehis or its dutiesunderthis Agreementwithout theprior written consentoftheotherparty; provided,hovvever,that: (i) this Agreementshall inure to the benefit of and be binding uponthe successorsandassignsofEmployeruponany saleofall or substantiallyall ofEmployer'sassets, or upon any merger,consolidationor reorganizationof Bank vvith or into any othercoiporation, all as thoughsuchsuccessorsandassignsofthe Bank andtheir respectivesuccessorsandassigns vvere the Bank; and(ii) this Agreementshall inureto the benefitofandbe bindinguponthe heirs, assignsor designeesofExecutiveto the extentofany paymentsdueto themhereunder.As used in this Agreement,theterm "Bank" or "Employer" shall be deemedto referto any suchsuccessor or assignofthe Bank or Employerreferredto in theprecedingsentence.        16.   Withholding of Taxes. All paymentsrequiredto be madeby Employer to the Executiveunderthis Agreementshallbesubjectto thewithholdinganddeductionofsuchamounts, if any, relating to tax, and other payroll deductionsas Employer may reasonablydetermineit shouldwithhold and/ordeductpursuantto any applicablelavv or regulation(including, but not limited to, Executive'sportion ofsocial securitypaymentsand incometax withholding) now in effect or vvhich may becomeeffectiveany time during theterm of this Agreement.        17.   Section409A. If Executivedetermines,in good faith, that any compensationor benefitsprovidedby this Agreementmayresultin the applicationofSection409A ofthe Internal                                  "Code"), RevenueCodeof  1986, as amended(the      Executiveshall provide written noticethereof (describing in reasonabledetail the basis therefor) to Employer, and Employer shall, in consultationwith Executive,modify this Agreementin the leastrestrictivemannernecessaryin order to excludesuch compensationfrom the definition of "deferredcompensation"within the meaningof suchSection409A of the Codeor in orderto comply with the provisionsof Section 409A ofthe Code,otherapplicableprovision(s)ofthe Codeand/orany rules,regulationsor other regulatoryguidanceissuedundersuchstatutoryprovisionsandvvithoutanydiminutionin thevalue ofthe paymentsto Executive. Any paymentsthat, underthe termsofthis Agreement,qualify for   SMRH:485961475.3                     -12- 

 

the "short-term" defen-al exception under Treasury RegulationsSection 1.409A-l(b)(4), the "separation          pay" exceptionunder TreasuryRegulationsSection 1.409A-l(b)(9)(iii) or another exceptionunder Section409A of the Code will be paid underthe applicableexceptionsto the greatestextent possible. Each paymentunder this Agreementshall be treated as a separate paymentfor purposesof Section409A ofthe Code. Anything in this Agreementto the contrary notwithstanding,if at the time of Executive'sseparationfrom service within the meaningof Section409A ofthe Code,Executiveis considereda "specifiedemployee"within the meaningof Section409A(a)(2)(B)(i)oftheCode,andifany paymentthatExecutivebecomesentitledto under this Agreementis considereddeferredcompensationssubjectto interest,penaltiesandadditional tax imposedpursuantto Section409A of the Code as a result of the application of Section 409A(a)(2)(B)(i)of the Code,thenno suchpaymentshall be payableprior to the datethat is the earlierof(i) six monthsandonedayExecutive'sseparationfrom serviceor (ii) Executive'sdeath. In no event shall the date of terminationof Executive'semploymentbe deemedto occur until Executiveexperiencesa "separationfrom service" vvithin the meaningof Section409A of the Code, and notvvithstandinganything containedherein to the contrary, the date on which such separationfrom servicetakesplaceshallbetheDateofTermination.All reimbursementsprovided underthis Agreementshall be providedin accordancevvith the requirementsof Section409A of the Code,including, whereapplicable,the requirementthat (A) the amountof expenseseligible for reimbursementduring one calendaryear vvill not affect the amountof expenseseligible for reimbursementin any othercalendaryear; (B) the reimbursementof an eligible expensevvill be madeno later than the last day of the calendaryear following the calendaryear in which the expenseis incurred;and (C) the right to any reimbursementwill not be subjectto liquidation or exchangefor anotherbenefit. Notwithstandingthe foregoing,Employermakesno representation or covenantto ensurethat the paymentsand benefitsunderthis Agreementare exemptfrom, or compliantwith, Section409A ofthe Code.        18.  Indemnification.To thefullest extentpermittedby lavv, regulation,andtheArticles of IncorporationandBylavvs ofBankandPMB, the Bank and/orPMB asappropriateshall pay as andvvhenincurredall expenses,including legal andattorneycosts,incurredby, or shall satisfyas and vvhen enteredor levied ajudgmentor fine renderedor levied against,Executivein an action broughtby a third party againstExecutive(whetheror not the Bankis joinedasa partydefendant) to impose a liability or penalty on Executive for an act allegedto have been committed by Executivewhile an officer oftheBankand/orPMB; provided,however,thatExecutivewasacting in good faith, vvithin what Executive reasonablybelieved to be the scope of Executive's employmentor authorityand for a purposewhich the Executivereasonablybelievedto be in the best interestsof the Bank or the Bank's shareholdersand the best interestsof PMB or PMB's shareholders,andin the caseofacriminal proceeding,thatthe Executivehadno reasonablecause to believe that Executive'sconduct vvas unlavvful. Paymentsauthorized hereunderinclude amountspaid and expensesincurredin settling any suchactionor threatenedaction. All rights hereunderare limited by any applicablestateor Federallavvs. Anything hereinto the contrary notvvithstanding,this Agreementis subjectto the requirementsand limitations set forth in state and federal laws, rules, regulationsor ordersregardingthe indemnificationand prepaymentof legal expenses,including Section 18(k) of the FDIA and Part 359 of the FDIC's Rules and Regulationsor anysuccessorregulationthereto. Further,andto theextentthatthereis anyconflict betvveenstateandfederallavv, federallaw shall supersedeandcontrol.   SMRH:485961475.3                  -13- 

 

      19.   Severability. To theextentanyprovisionofthis Agreementor portionthereofshall be invalid or unenforceable,it shall be considereddeletedtherefrom(but only for so long as such provisionor portionthereofshallbe invalid or unenforceable)andthe remainderofsuchprovision andofthis Agreementshall be unaffectedand shall continuein full force andeffectto the fullest extentpermittedby law ifenforcementwould not frustratetheoverall intentoftheParties(assuch intent is manifestedby all provisionsoftheAgreementincluding suchinvalid, void, or otherwise unenforceableportion).        20.   Payment. All amountspayableby the Bank to Executiveunderthis Agreement shall bepaidpromptly on the datesrequiredfor suchpaymentin this Agreementwithout noticeor demand. Any salary,benefitsor otheramountspaid or to be paid to Executiveor providedto or in respectof the Executivepursuantto this Agreementshall not be reducedby amountsowing from Executiveto Bank.        21.   Expenses.Eachparty shall pay his or its ovvn feesand expensesincurredby him or it in the drafting, reviewandnegotiationofthis Agreement.        22.   Authority. Each of the Partiesheretoherebyrepresentsthat each has taken all actionsnecessaryin orderto executeanddeliverthis Agreement.        23.   Counterparts.This Agreementmay be executedin oneor morecounterparts,each of which shall be deemedto be an original but all of which togethervvill constituteone and the sameinstrument.        24.   GoverningLaw. This Agreementshall be construed,interpretedand enforcedin accordancewith the lavvs of the Stateof California, vvithout giving effect to the choiceof lavv principlesthereof.       25.   Entire Agreement;Amendments.This Agreementandwritten agreements,ifany, enteredinto concurrentlyherewithconstitutethe entireagreementby Employer,on the onehand, and Executive on the other hand with respectto the subject matter hereofand mergesand supersedesany and all prior discussions,negotiations,agreementsor understandingsbetween Executive and Employer with respectto the subject matter hereof, whether vvritten or oral, including the Prior Agreement. This Agreementmay be amendedor modified only by a written instrumentexecutedby Executiveand Employer. With regardto suchamendments,alterations, or modifications,facsimile signaturesshall be effective as original signatures.Any amendment, alteration, or modification requiring the signatureof more than one party may be signed in counterparts.        26.   FurtherActions. Eachparty agreesto perform any further acts and executeand deliverany furtherdocumentsreasonablynecessaryto carry out theprovisionsofthis Agreement.       27.   Time of Essence. Time is of the essenceof each and every term, condition, obligationandprovisionhereof.        28.   No Third PartyBeneficiaries.This Agreementandeachandeveryprovisionhereof is for the exclusivebenefitofthe Partiesandnot for the benefitofanythird party.   SMRM:485961475.3                     -14- 

 

      29.   Headings. The headingsin this Agreementare inserted only as a matter of convenience,andin no vvay define,limit, or extendor interpretthe scopeofthis Agreementor of anyparticularprovisionhereof.       30.   RegulatoryApproval ofthis Agreement. The Partiesacknowledgeand agreethat entry into this Agreementis andpaymentofseveranceunderparagraph5 maybe subjectto receipt of approval from the FRB pursuantto Section 1828(k) and Part 359 of the FDIC Rules and Regulations,the FDIC and the CDBO. If suchapproval is requiredbut not obtainedor if such approval is conditionedupon modificationsspecifiedby the FRB, the FDIC or the CDBO the Partiesagreeto negotiatein good faith to amendthis Agreementto provide for substantially equivalenttermsconsistentwith regulatoryrequirements.                                [signaturepagefollows]   SMRI-I:485961475.3                   -15- 

 

      IN WITNESS  WHEREOF,the   Partieshaveexecutedthis Agreementas ofthe datefirst written above.                                  PACIFIC MERCANTILE   BANK                                  By:     ^                                 Name: ThomasM. Vertin                                 Title: PresidentandChiefExecutiveOfficer                                  EXECUTIVE:                                     ^j                                 ThomasJ. Inserra   SMRJ-I:485961475.3                   -16- 

 

                                  EXHIBIT  A                           CaliforniaLaborCode§2870 Employmentagreements;assignmentof  rights        (a)   Any provisionin an employmentagreementvvhich providesthatan employeeshall assign,or offer to assign,any of his or her rights in an inventionto his or her employershall not apply to an inventionthat the employeedevelopedentirely on his or her own time without usin^ the employer's equipment, supplies, facilities, or trade secret information except for those inventionsthat either:              (1)   Relateat the time ofconceptionor reductionto practiceofthe inventionto the employer'sbusiness,or actual or demonstrablyanticipatedresearchor developmentof the employer;or              (2)   Resultfrom any work performedby the employeefor the employer.        (b)   To the extent a provision in an employmentagreementpurports to require an employeeto assignan invention otherwiseexcludedfrom being requiredto be assignedunder subdivision(a), theprovisionis againstthe public policy ofthis stateandis unenforceable.   SMRH:485961475.3                     -17-

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