Document:

Exhibit 10.1

AMENDED AND RESTATED

EXECUTIVE EMPLOYMENT AGREEMENT

This AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT (this “Agreement”), dated as of May 15, 2014, is by and between SCOTT M. HALL (“Executive”), THE JACKSONVILLE BANK (the “Bank”) and the Bank's parent corporation JACKSONVILLE BANCORP, INC. (the “Company”).

Preliminary Statement.  Executive is employed by the Bank as President and the Company as Executive Vice President, and are parties to that certain Executive Employment Agreement, dated as of May 13th, 2009 (the “Original Employment Agreement”), and that certain First Amendment to the Employment Agreement, dated as of December 22nd, 2010 which the parties hereto desire to amend.  The Bank and the Company desire to continue to engage Executive and Executive desires to continue his employment with the Bank and the Company and to devote his full time business efforts to the Bank and the Company upon the terms set forth herein.

Therefore, the parties agree as follows:

	 	
1.

	
Employment.

 

(a)                 Bank. The Bank shall continue to employ Executive as President of the Bank with the duties, responsibilities and powers of such office as provided in the Bank's bylaws, as assigned to him from time to time and as customarily associated with such office and/or assigned to him by the Board of Directors of the Bank, and Executive shall serve the Bank in such capacity during the term of this Agreement.

 

(b)               Company. The Company shall continue to employ Executive as Executive Vice President of the Company with the duties, responsibilities and powers of such office as assigned to him from time to time and as customarily associated with such offices and/or as assigned to him by the Board of Directors of the Company, and Executive shall serve the Company in such capacities during the term of this Agreement.  Executive acknowledges and agrees that he shall not receive any separate compensation for his service to the Company.

 

(c)                 Executive, the Bank and the Company have received all necessary regulatory approvals for Executive's service under Sections 1(a) and 1(b) above.

 

(d)                Executive represents, warrants and covenants to the Bank and the Company that this Agreement and his performance of services hereunder does not breach or conflict with any other agreements or instruments to which Executive is a party or may be bound, and that he shall faithfully and diligently discharge his duties and responsibilities under this Agreement, and shall use his best efforts to implement the policies established by the Board of Directors and/or the Chief Executive Officer of each of the Bank and the Company.

(e)                 During the term of this Agreement, Executive shall devote his full and exclusive business time, attention, energy and skills to the business of the Bank and the Company, to the promotion of the interests of the Bank and the Company and to the fulfillment of Executive's obligations hereunder.

 

2.                  Term.  The initial term of this Agreement shall be three (3) years from May 13th, 2009, the effective date of the Original Employment Agreement (the “Effective Date”), unless sooner terminated as herein provided.    On the first anniversary date of the Effective Date, and on each anniversary date thereafter, the term of this Agreement shall automatically be extended for an additional one (1) period unless written notice of non-renewal has been given by any party hereto no less than ninety (90) days prior to any such anniversary date, in which event this Agreement shall terminate on the second anniversary date of the anniversary date as to which the notice of non-renewal was given, unless sooner terminated as herein provided.

 

	 	
3.

	
Compensation and Benefits.

 

(a)                 The Bank shall pay or provide to Executive the following compensation for his service hereunder:

 

(i)             A base salary of Two Hundred Ten Thousand and 00/100 Dollars ($210,000.00) per year, paid in equal installments in accordance with the Bank's standard payroll practices, reduced by deductions and withholdings for federal, state and local income taxes, Social Security taxes and other deductions (collectively, “Deductions and Withholdings”) required by applicable laws (the “Base Salary”), which Base Salary may be increased from time to time by and at the sole discretion of the Company's Board of Directors (or a committee thereof).

 

(ii)            For each fiscal year during the term of this Agreement, an annual bonus (the “Annual Bonus”) in cash of up to 33.33% of the Base Salary (the actual amount to be determined at the sole discretion of the Company's Board of Directors (or committee thereof)), payable no later than the 15th day of the third month after the end of the Bank's fiscal year to which the Annual Bonus relates, and subject to applicable Deductions and Withholdings.

 

(iii)          The option to purchase up to 300,000 shares of the Company’s common stock (“Common Stock”), pursuant and subject to the terms and conditions of that certain Incentive Stock Option Agreement (the “Plan”), dated as of October 8, 2013, by and between Executive and the Company (the “Equity Award”).  The Equity Award shall also be subject to any required (i) regulatory approvals or regulatory restrictions imposed by federal or state banking laws, and (ii) shareholder approvals (including the approval of an amendment to the Plan to, among other things, add a number of shares available for issuance under the Plan sufficient to grant the Equity Award).

 

(iv)          Reimbursement for authorized expenses (evidenced by an itemized account of such expenses timely submitted by Executive to the Bank), according to the Bank's established policies, within thirty (30) calendar days following the date on which Executive incurs the expenses, but, in each case, no later than December 31 of the year following the year in which Executive incurs the related expenses; provided that in no event shall the reimbursements or in-kind benefits to be provided by the Company or the Bank in one taxable year affect the amount of reimbursements or in-kind benefits to be provided in any other taxable year, nor shall Executive's right to reimbursement or in-kind benefits be subject to liquidation or exchange for another benefit.  Notwithstanding the foregoing, all reimbursements relating to the Additional Delayed Payments (as defined in Section 9) shall be made on the Permissible Payment Date (as defined in Section 9).

2

(v)            Paid vacation time each year pursuant to the Bank's policy as it may be revised from time to time.

 

(vi)          Participation in all medical and health care benefit plans through health insurance, corporate funds, medical reimbursement plans or other plans, if any, provided, or to be provided, by the Bank for its employees (“Benefit Plans”).

 

(vii)        The Executive shall receive the use of an automobile or an automobile allowance on terms determined by the Board of Directors from time to time.

 

(viii)       Club Dues on terms determined by the Board of Directors from time to time.

 

(b)               The above-stated terms of compensation shall not be deemed exclusive or prevent Executive from receiving any other compensation, including, without limitation, bonuses provided by the Bank and/or the Company.  Executive shall be entitled to participate in all current and future employee benefit plans and arrangements in which the executive officers of the Company or the Bank are permitted to participate.  Executive acknowledges and agrees that the Company does not separately compensate its officers who are also officers of the Bank and that no compensation or other benefits will be payable by the Company hereunder.  The foregoing notwithstanding, the Equity Award shall be the sole equity award to Executive during the term of this Agreement.

 

(c)                The payment of any Annual Bonus shall be subject to any approvals or non-objections required by any regulator of the Company or the Bank, and it is understood by the parties that it is contemplated that Executive will not be eligible to receive any such Annual Bonus or other short-term incentive compensation while the Company or the Bank is subject to restrictions imposed by any written agreements with any bank regulatory authority, or otherwise restricted under applicable law.

 

(d)                Executive agrees to repay any compensation previously paid or otherwise made available to him that is subject to recovery under any applicable governmental, regulatory, or self-regulatory authority, including Nasdaq or any other applicable securities exchange or market where the Company’s securities are then traded (each a “Governmental Authority”), where such compensation was in excess of what should have been paid or made available because a Governmental Authority has determined that the amount was inconsistent with any applicable law, order or other requirements of such Governmental Authority.  Executive agrees to return promptly any such compensation identified by the Company or the Bank.  If Executive fails to return such compensation promptly, Executive agrees that the amount of such compensation may be deducted from any and all other amounts owed by the Bank to Executive.  Executive acknowledges that the Company or the Bank may take appropriate disciplinary action (up to, and including, termination of employment) if Executive fails to return such incentive compensation.  The provisions of this Section 3(d) shall be modified to the extent, and remain in effect for the period, required by applicable law.

3

4.                   Termination.  Executives' employment under this Agreement shall terminate, upon the occurrence of any of the following events or circumstances, effective upon the date specified by the terminating party (the “Termination Date”):

 

(a)                 Death or Permanent Disability.  Upon Executive's death or upon written notice from the Bank or the Company to Executive, or from Executive to the Bank, in the event Executive becomes “permanently disabled”.  For purposes of this Agreement, Executive shall be deemed “'permanently disabled” if he has been disabled by bodily or mental illness, disease, or injury, to the extent that, in the opinion of the Board of Directors of the Bank, he is materially prevented from performing the duties of his employment hereunder, and provided further that such disability has continued substantially for six (6) months.  If requested by the Bank, Executive shall submit to an examination by a physician selected by the Bank for the purpose of determining or confirming the existence or extent of any disability.  Upon Executive’s death or his becoming permanently disabled, the Bank shall make the payments provided by Section 5, below;

 

(b)                Termination for Cause by the Bank or the Company.  Upon written notice from the Bank or the Company to Executive for "cause."  For purposes of this Section 4(b), “cause” shall include (i) a willful and continued failure by Executive to perform his duties as provided herein (other than as a result of a permanent disability) (ii) a breach by Executive of his duties hereunder or his fiduciary duties of loyalty, care or good faith to the Bank or the Company; (iii) a violation by Executive of any provision of this Agreement; (iv) a conviction or the entering of a plea of nolo contendere or similar plea by Executive for any felony or any crime involving fraud, dishonesty or a breach of trust; (v) a breach of the Company's Code of Ethics, (vi) commission by Executive of a willful or negligent act which causes material harm to the Bank or the Company; (vii) alcoholism or other form of drug or other addiction; (viii) any violation of laws or regulations such that Executive ceases to be eligible to serve as an executive officer of a depository institution or a depository institution holding company; or (ix) Executive becomes ineligible to be bonded at costs consistent with the Bank's and/or the Company's other executive officers.  Any notice of termination of Executive's employment with the Bank for cause shall set forth, in reasonable detail, the facts and circumstances claimed to provide the basis for termination of his employment under the provisions contained herein.  Upon Executive’s termination for “cause” pursuant to this Section 4(b), the Bank shall pay to Executive all accrued and unpaid Base Salary and any other compensation to which Executive is entitled pursuant to Section 3 above, through the Termination Date.  The Bank shall have no further obligations to Executive following the Termination Date of any termination pursuant to this Section 4(b);

4

(c)                Termination for Good Cause by Executive.  Upon written notice from Executive to the Bank and the Company for “good cause.”  For purposes of this Section 4(c), “good cause” shall include (i) a “Change in Control” as defined in Section 5 if such Change in Control results in a change in Executive’s position or duties within one year following the effective date of such Change in Control, (ii) the Bank's and/or the Company's failure to comply with any material provision of this Agreement, provided that the Bank or the Company, as the case may be, shall have thirty (30) days from the receipt of such notice to cure any such failure under this Agreement, and upon the cure of such failure, Executive shall have no right to terminate his employment under the provisions of this Section 4(c), (iii) a change in location of the Executive’s position with the Bank outside of the Jacksonville, Florida Metropolitan Statistical Area, whether as a result of a Change in Control or otherwise, that would require Executive to relocate outside of the Jacksonville, Florida Metropolitan Statistical Area or (iv) in the event that Executive is not elected President of the Bank, other than as a result of termination for cause pursuant to Section 4(b), or regulatory action or request, with substantially all the duties and powers which are customarily associated with such offices, or in the event the duties and powers assigned to Executive by the Board of Directors are reduced to substantially less than the duties and powers which are customarily associated with such offices (whether in connection with a Change in Control or otherwise); provided, however that the Bank or the Company, as applicable, shall have thirty (30) days from the receipt of written notice from Executive under this Section 4(c) to cure any such failure under this Agreement, and upon the cure of such failure, Executive shall have no right to terminate his employment under this Section 4(c). Any notice of termination of Executive's employment with the Bank or the Company under this Section 4(c) shall set forth, in reasonable detail, the facts and circumstances claimed to provide the basis for termination of his employment under the provisions contained herein.  Upon Executive’s termination pursuant to this Section 4(c), the Bank shall make the payments provided by Section 5, below; provided, however that if Executive terminates his employment hereunder by alleging a breach of this Agreement by the Bank and/or the Company pursuant to this Section 4(c) and it is ultimately determined that no reasonable basis existed for such termination, then Executive shall receive all accrued and unpaid Base Salary and any other compensation to which Executive is entitled pursuant to Section 3 above, through the Termination Date, but shall not be entitled to payment of any additional amounts set forth in Section 5 below;

 

(d)               Without Cause.  Upon thirty (30) days’ written notice by Executive to the Company and the Bank or upon thirty (30) days’ written notice from the Bank or the Company to Executive, of the termination of Executive’s employment hereunder.  Upon Executive’s termination of his employment pursuant to this Section 4(d), the Bank shall pay to Executive his base salary in equal installments in accordance with the Bank’s standard payroll practices, for a period of one (1) year following the termination date.  Upon Executive’s termination by the Bank or the Company pursuant to this Section 4(d), the Bank shall make the payments provided by Section 5, below; and

 

(e)                Expiration of Term.  Upon the expiration of the initial or any subsequent term of this Agreement following the Banks’s or Executive’s notice of non-renewal as set forth in Section 2.  Upon the termination of Executive’s employment pursuant to this Section 4(e), Executive shall receive all accrued and unpaid Base Salary and any other compensation to which Executive is entitled pursuant to Section 3 above, through the Termination Date, but shall not be entitled to payment of any additional amounts set forth in Section 5 below.

 

If Executive is a member of the Board of Directors of either the Company or the Bank and Executive's employment is terminated pursuant to this Section 4, Executive shall immediately resign from his position(s) on the Board(s) of Directors, effective as of the Termination Date.

5

	 	
5.

	
Compensation and Benefits Payable Upon Termination.

 

(a)                 Payment Upon Termination.

 

(i)             Termination by the Bank or the Company Without Cause.  Upon Executive’s termination by the Bank or the Company for any reason other than “cause” pursuant to Section 4(b), including termination as a result of Executive’s death or a permanent disability pursuant to Section 4(a), or termination by the Bank or the Company without cause pursuant to Section 4(d) above, then Bank (or its successor) shall continue to pay to Executive or his estate or beneficiaries, his Base Salary, in equal installments in accordance with the Bank's standard payroll practices (and reduced for any applicable Withholdings and Deductions), for a period of one (1) year following the Termination Date, and any unvested portion of the Equity Award as of the Termination Date shall be immediately vested.

 

(ii)            Termination by Executive for Good Cause.  If Executive's employment is terminated by Executive for “good cause” pursuant to Section 4(c) other than as a result of a Change in Control, but including a termination by Executive as a result of a change in Executive’s position or duties other than following a Change in Control, the Bank (or its successor) shall continue to pay to Executive, his Base Salary, in equal installments in accordance with the Bank's standard payroll practices, for a period of one (1) year following the Termination Date, and any unvested portion of the Equity Award as of the Termination Date shall be immediately vested.

 

(iii)          Termination by Executive for a Change in Control.  If Executive's employment is terminated by Executive for “good cause” pursuant to Section 4(c) as a result of a Change in Control that results in a change in Executive’s position or duties within one year following the effective date of such Change in Control, the Bank (or its successor) shall continue to pay to Executive, his Base Salary, in equal installments in accordance with the Bank's standard payroll practices, for a period of 2.9 years following the Termination Date, and any unvested portion of the Equity Award as of the Termination Date shall be immediately vested; provided, however that Executive agrees to a Termination Date of up to twelve (12) months following notice of Executive’s termination and shall provide transition services during such period, if requested by the Bank or the Company. As used herein, a “Change in Control” shall be deemed to have occurred if:

6

(1)            any “person” or “group” (as such terms are used and defined in the Securities Exchange Act of 1934, as amended (the “1934 Act”), Sections 3(a)(9) 13(d) and 14(d)) is or becomes a “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of securities of the Bank or the Company representing fifty percent (50%) or more of the combined voting power of the Bank’s or the Company's then outstanding securities eligible to vote for the election of the Board (the “Company Voting Securities”).  As used in this Agreement, any person or group who is, on the date hereof, the beneficial owner of twenty five percent (25%) or more of the outstanding Company Voting Securities is a “Controlling Person,” and any person or group that is, as of the date of determination, “controlled” for purposes of the Bank Holding Company Act of 1956, by a person or group is a “Controlled Person.” Notwithstanding the foregoing, the following events shall not be deemed to be a Change in Control:  (A) any acquisition of Company Voting Securities by the Company that reduces the number of Company Voting Securities outstanding and thereby results in any person or group (other than a Controlling Person or a Controlled Person) beneficially owning twenty-five percent (25%) or more of the outstanding Company Voting Securities, (B) an acquisition of Company Voting Securities by any employee benefit plan (or related trust) sponsored or maintained by the Company or any parent or subsidiary thereof, (C) an acquisition of Company Voting Securities by an underwriter temporarily holding such Company Voting Securities pursuant to an offering of such securities, or (D) an acquisition of Company Voting Securities and/or securities convertible into or exchangeable for Company Voting Securities pursuant to the Stock Purchase Agreement dated as of August 22, 2012 (as amended and/or restated, the “Stock Purchase Agreement”), by and among the Company and CapGen Capital Group IV LP, a Delaware limited partnership (“CapGen”), and each of the respective investors other than CapGen named on the signature pages to the Stock Purchase Agreement;

 

(2)            the Company consummates a reorganization, merger, consolidation, statutory share exchange or similar transaction involving the Bank or the Company with any person or entity other than a Controlling Person that requires the approval of the Company's shareholders, whether for such transaction or the issuance of securities in such transaction (a “Reorganization”), or consummates the sale or other disposition of all or substantially all of the Bank’s or the Company's assets (a “Sale”) to any person or entity that is not a Controlling Person; or

 

(3)            the Company's board of directors and/or shareholders approve a complete liquidation or dissolution of the Company in a transaction or series of transactions.

 

(b)                Severance Payments.  The compensation and benefits payable under Section 5(a) are hereinafter referred to as "Severance Benefits".  The payment of Severance Benefits is in recognition and consideration of the value of services by Executive to the Bank and the Company and is not in any way to be construed as a penalty or damages.  Executive shall not be required to mitigate the amount of any payment of Severance Benefits by seeking other employment or otherwise.  The payment of Severance Benefits shall not affect any other sums or benefits otherwise payable to Executive under any other employment compensation or benefit or welfare plan of the Company or the Bank.  The timing of payment or provision of Severance Benefits is subject to Section 9.  All Severance Benefits and other payments and benefits hereunder shall be subject to, and limited by, 12 U.S.C. 1828(k) and 12 C.F.R. Part 359, and the prior receipt of necessary regulatory approvals.  The Bank shall have no obligations to pay any taxes owed by Executive or to gross-up any payment or consideration hereunder for taxes and shall have no obligation to pay or deliver any consideration that would be subject to taxation pursuant to Internal Revenue Code of 1986 Sections 280G or 409A.

7

(c)                 Notwithstanding any other provision of this Agreement to the contrary, as a condition of any Severance Payment, Executive shall execute within 21 days following the Termination Date a complete, irrevocable, enforceable release and non-disparagement agreement substantially in the form attached hereto as Exhibit A.  All Severance Payments shall accrue from the Termination Date and shall be made or commence on the 60th day following the Termination Date, with any accrued but unpaid Severance Payment being paid on the date of the first payment.

 

	 	
6.

	
Non-Competition and Non-Disclosure.

 

(a)                 To induce the Bank and the Company to enter into this Agreement, Executive agrees that while employed by the Bank or the Company and for a period of one (1) year after the termination of employment or service of Executive hereunder (the “Restricted Period”), Executive shall not, within Jacksonville, Florida Metropolitan Statistical Area or any county where the Bank has offices as of the Termination Date (the “Restricted Area”), as principal, agent, trustee or through the agency or on behalf of any person or entity, (i) engage in the business of banking, fiduciary services, securities or insurance brokerage, investment management or services, lending or deposit taking (individually and collectively, the “Business”), (ii) control or beneficially own (directly or indirectly) 5% or more of the outstanding capital stock or other ownership interest (a “Principal Shareholder”) of any person or entity engaged in or controlling any such Business other than the Company or Bank, or (iii) serve as an officer, director, trustee, agent or employee of any corporation, or as a member, partner, employee or agent of any limited liability company or partnership, or as an owner, trustee, employee or agent of any other business or entity, which directly or indirectly conducts such Business within the Restricted Area. Following termination of Executive's employment with the Bank, the Company or any of their affiliates, and for the remainder of the Restricted Period, Executive shall not solicit or contact any Customer of the Bank or Company, an officer or employee of the Bank, the Company, or any of their affiliates (or any person whose employment with the Bank, the Company or any of their affiliates was terminated within the immediately preceding six month period) to leave their employment, or any director of the Bank, the Company, or any of their affiliates to terminate his or her service as such, or any director, officer or employee to become a director, officer or employee of any other person or entity engaged in the Business for any reason or otherwise interfere with any employment relationships of the Company, the Bank, or their affiliates.

 

(b)                Executive recognizes and acknowledges that he has had, and as an officer of the Company and the Bank will have, access to certain confidential information of the Company, the Bank and their respective subsidiaries and affiliates, including customer information and lists, credit information, organization, pricing, mark-ups, commissions, and other information and that all such information constitutes proprietary valuable, special and unique property belonging solely to the Company, the Bank and their subsidiaries and affiliates.  Such information, together with any information regarded as "trade secrets" under Florida law, is herein referred to as “Trade Secrets”.  Executive will not disclose or directly or indirectly utilize, in any manner, any such Trade Secrets for his own benefit or the benefit of anyone other than the Company, Bank and their subsidiaries and affiliates or disclose Trade Secrets to anyone other than bank regulatory agencies or to a court upon order thereof.

8

(c)                 Executive acknowledges and agrees that the payments for services hereunder, and his rights and benefits under this Agreement are contingent upon his compliance with the provisions of this Section 6.  Executive recognizes and agrees that the Company and the Bank will suffer irreparable harm in the event that Executive violates any of the provisions of this Section 6.  Executive and the Company and the Bank understand and agree that the purpose of this Section 6 is to protect the Company's and the Bank's legitimate business interests, and is not intended to impair or infringe upon Executive's right to work, earn a living, or acquire and possess property from the fruits of his labor. Executive and the Company and the Bank acknowledge and agree that the provisions of this Section 6 are not made in connection with any former services for the Company or the Bank provided by Executive, but rather are intended to protect the Company's and the Bank's interests.  Executive hereby acknowledges that the restrictions set forth in this Section 6 are reasonable and that they do not, and will not, unduly impair his ability to earn a living.  If, however, Section 6 is determined by any court of competent jurisdiction to be unenforceable under applicable law by reason of it extending for too long a period of time or over too large a geographic area or by reason of it being too extensive in any other respect or for any other reason, it shall be interpreted to extend only over the longest period of time for which it may be enforceable and over the largest geographic area as to which it may be enforceable and to the maximum extent in all other aspects as to which it may be enforceable, all as determined by such court.

 

(d)                In the event of a breach or threatened breach by Executive of the provisions of this Section 6, the Company, the Bank, or any subsidiary or affiliate of the Company or the Bank shall be entitled to an injunction or temporary restraining order preventing Executive and any others from violating any provision of this Section 6.  Nothing herein shall be construed as prohibiting or limiting the Company, the Bank, or any subsidiary or affiliate of the Company or the Bank from also exercising any other available rights or remedies for such breach or threatened breach, including, without limitation, the recovery of damages from Executive or others.

 

7.                  Arbitration.  Any dispute or controversy arising under or in connection with this Agreement other than as a result of the provisions of Section 6 hereof, shall be settled exclusively by arbitration.  The parties agree to submit the dispute to binding arbitration in accordance with the rules and regulations of the American Arbitration Association then in effect.  Any arbitration hereunder shall be conducted in Jacksonville, Florida.  In the event of any arbitration hereunder, judgment may be entered upon any award arising out of such arbitration in any court of competent jurisdiction and the prevailing party shall be entitled to recover all costs of the arbitration, including reasonable attorneys’ fees, from the non-prevailing party.

 

	 	
8.

	
Successors: Binding Agreement.

 

(a)                This Agreement shall be binding upon any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise), to all or substantially all of the business and/or assets of the Bank and/or the Company regardless of whether such occurrence constitutes a Change in Control hereunder and the Bank and the Company shall require any such successor to expressly assume and agree to perform this Agreement.  As used in this Agreement, “Company” and “Bank” shall mean the Company and Bank as herein respectively defined and their successors and assigns, including any successors and assigns to their respective businesses and/or assets as aforesaid, which is requited by this Agreement to assume and perform this Agreement, whether by operation of law or otherwise.  In the event any successor to the Company has total assets in excess of $10 billion and does not maintain a Florida-based holding company, then the term “successor” shall only include the bank resulting from such transaction.

9

(b)                This Agreement shall inure to the benefit of and be enforceable by Executive's personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.  If Executive should die while any amount would still be payable hereunder, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement, and otherwise at the times and in the amounts specified herein, to Executive's devisee, legatee or other designee or, if there is no such designee, to Executive's estate.

 

	 	
9.

	
Section 409A.

 

(a)                 Notwithstanding any provisions of this Agreement to the contrary, if Executive is a “specified employee” (within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”) and determined pursuant to procedures adopted by the Bank) at the time of his separation from service and if any portion of the payments or benefits to be received by Executive upon separation from service would be considered deferred compensation under Section 409A, amounts that would otherwise be payable pursuant to this Agreement during the six-month period immediately following the Termination Date (the “Delayed Payments”) and benefits that would otherwise be provided pursuant to this Agreement (the “Delayed Benefits”) during the six-month period immediately following the Termination Date (such period, the “Delay Period”) shall instead be paid or made available on the earlier of (i) the first business day of the seventh month following the Termination Date or (ii) Executive's death (the applicable date, the “Permissible Payment Date”).

 

(b)                 Each payment under this Agreement shall be considered a “separate payment” and not of a series of payments for purposes of Section 409A.

 

(c)                 A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits subject to Section 409A upon or following a termination of employment unless such termination is also a “separation from service” (within the meaning of Section 409A).

 

	 	
10.

	
Miscellaneous.

 

(a)                All notices required or permitted hereunder shall be given in writing by actual delivery or by Registered or Certified Mail (postage prepaid), at the following addresses or at such other places as shall be designated in writing:

10

If to Executive:

Scott M. Hall

809 Cherry Grove Road

Orange Park, FL  32073

 

If to the Company or Bank:

100 North Laura Street, Suite 1000

Jacksonville, Florida 32202

Attention: Chairman of the Board

(b)                If any provision of this Agreement shall be determined to be void by any court or arbitral authority of competent jurisdiction, then such determination shall not affect any provisions of this Agreement, all of which shall remain in full force and effect.

 

(c)                 Any waiver of any breach of this Agreement shall not be construed to be a continuing waiver or consent to any subsequent breach by either party hereto.  In the event of any action, suit or proceeding arising out of or related to this Agreement, the nonprevailing party shall reimburse the prevailing party for all reasonable attorneys’ fees and costs incurred by the prevailing party in connection therewith.

 

(d)                This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. It may be modified or terminated only by a writing signed by the party against whom enforcement of any waiver, change, modification, extension, discharge or termination is sought.

 

(e)                The recitals contained in this Agreement are expressly made a part hereof. Herein, references to any gender shall include all genders, and the singular shall include the plural and vice versa. The words “include”, “including” and derivations thereof shall mean without limitation by reason of enumeration or otherwise.

 

(f)                  This Agreement represents the entire understanding and agreement among the parties and supersedes any prior agreements or understandings with respect to the subject matter hereof.  It is intended and agreed that the Company, the Bank and its direct and indirect subsidiaries are express beneficiaries of this Agreement and may enforce the provisions hereof to the same extent as the Bank.

 

(g)                 This Agreement shall be governed by, and construed in accordance with, the laws of the State of Florida.

 

[Signatures on following page]

11

IN WITNESS WHEREOF, the Bank, the Company and Executive have entered into this Agreement as of the date first above written.

 

	
 

	
 

	
EXECUTIVE

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
/S/   SCOTT M. HALL

	
 

	 		
SCOTT M. HALL

	
	
 

	
 

	
 

	
 

	
 

	
 

	
THE JACKSONVILLE BANK

	
 

	
 

	
 

	
 

	
 

	 	By:	
/S/ KENDALL L. SPENCER

	
	
 

	
Name:

	
Kendall L. Spencer

	
 

	
 

	
Title:

	
Chief Executive Officer

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
JACKSONVILLE BANCORP, INC.

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/S/ DONALD F. GLISSON, JR.

	
 

	
 

	
Name:

	
Donald F. Glisson Jr.

	
 

	
 

	
Title:

	
Chairman of the Board & Executive Director

	
 

 

 

12Exhibit 10.1

 

SEPARATION AGREEMENT

AND RELEASE OF CLAIMS

This Separation Agreement and Release of Claims (“Agreement”) is entered into by and between Nancy A. Kolb (“Kolb”) and Uroplasty, Inc. (“Uroplasty”) (collectively referred to as the “parties” or individually referred to herein as “party”).

WHEREAS, Ms. Kolb has served as Vice President, Global Marketing and Vice President, HealthCare Policy and Reimbursement of Uroplasty;

WHEREAS, Ms. Kolb and Uroplasty are parties to an employment agreement dated as of May 22, 2012 (the “Employment Agreement”) and an Employee Confidentiality, Inventions, Non-Solicitation and Non-Compete Agreement dated as of May 16, 2007 (the “Confidentiality Agreement”);

WHEREAS, Uroplasty and Ms. Kolb desire to fully and finally settle all issues, differences and actual and potential claims between them, including, but in no way limited to, any claim that might arise out of Ms. Kolb’s employment with Uroplasty or her separation therefrom;

NOW, THEREFORE, in consideration of the mutual promises contained herein, the sufficiency and adequacy of which are acknowledged by the parties, Ms. Kolb and Uroplasty agree as follows:

1.            Termination.  Ms. Kolb hereby acknowledges her employment with Uroplasty ended on March 31, 2014 (the “Termination Date”).  Effective as of that date, Ms. Kolb hereby resigns all positions as an officer of Uroplasty and any of its subsidiaries, or trustee or administrator of benefit plans of Uroplasty and any of its subsidiaries.

2.            Consideration.  In exchange for Ms. Kolb’s release of claims, promises and covenants contained in this Agreement, Ms. Kolb will receive severance in the form of:

 

(a)            Continuation of consecutive salary payments for eight months, in an amount totaling $140,000, beginning on April 1, 2014 and ending on November 30, 2014, at Ms. Kolb’s ending base salary rate of $210,000 and payable in accordance with the regular payroll practices of the Company. The initial payment made by Uroplasty to Ms. Kolb under this provision shall be made on Uroplasty’s first regularly scheduled payroll date following the expiration of the rescission period identified in Section 10 below, and shall be no less than what Ms. Kolb’s total cumulative salary payments would be had she been paid since April 1, 2014, and the remaining payments shall be made consecutively on each subsequent payroll date until the $140,000 is paid in full.

(b)            Payment of the bonus that would accrue for the fiscal year of the Company ending March 31, 2014, consistent with the bonus plan for management employees adopted by the Board, and effective upon, and payable simultaneous with, payment of bonuses to other management employees who remain employed;

 

(c)            An additional payment equal to the number of shares of the restricted stock held by Ms. Kolb and scheduled to vest in June 2014 (5131) times the per share value of Uroplasty stock on the NASDAQ Exchange as of the date of this Agreement, which additional payment shall be made on Uroplasty’s first regularly scheduled payroll date following the expiration of the rescission period identified in Section 10 below; and

(d)            Effective as of the Separation Date, Ms. Kolb and her family are eligible to enroll in continued group health coverage, including medical and dental coverage, as otherwise required under applicable stated continuation law and the Consolidated Omnibus Budget Reconciliation Act of 1986, 29 U.S.C. §§ 1161-1168; 26 U.S.C. § 4980B(f), as amended, and all applicable regulations (referred to collectively as “COBRA”).  Uroplasty will pay for the employer portion of the premium cost for such medical and dental COBRA continuation coverage for Ms. Kolb and her spouse for the months of April 2014 through November 30, 2014 if Ms. Kolb enrolls in such continuation coverage.

3.            Stock Benefits.  Uroplasty and Ms. Kolb acknowledge that Ms. Kolb holds options to purchase an aggregate of 10,625 shares of Uroplasty Common Stock that shall, as described below, survive the Termination Date to the extent vested on the Termination Date, but that shall expire unless exercised within 90 days after the Termination Date, including the following:

 

	
Grant Date

	 	
Total Shares

	 	 	
Unvested Shares

	 	 	
Exercise Price

	 	
Expiration Date

	
6/08/10

	 	 	
6,525

	 	 	 	
-0-

	 	 	
$

	
4.94

	 	
6/29/14

	
6/07/11

	 	 	
4,100

	 	 	 	
1,366

	 	 	 	
7.98

	 	
6/29/14

 

4.            No Other Rights.  Ms. Kolb acknowledges and agrees that the consideration set forth in Section 2 is in exchange for entering into this Agreement.  The payments referenced in Section 2 shall be deemed to be income to Ms. Kolb solely in the year in which such payments are received by Ms. Kolb and shall not entitle Ms. Kolb to additional compensation or benefits of any kind, including but not limited to under any company bonus, stock compensation, incentive, or benefit plan or agreement, nor will it entitle Ms. Kolb to any increased retirement, 401(k) benefits or matching benefits, or deferred compensation or any other benefits.  Ms. Kolb further acknowledges and agrees that the benefits to be provided to her by this Agreement shall be in full payment and satisfaction of any and all financial obligations due to Ms. Kolb from Uroplasty.

5.            Tax Treatment.  Ms. Kolb agrees that the payments referenced in Section 2 will be treated as income subject to W-2 reporting and withholding pursuant to state and federal laws.  It is understood that Uroplasty makes no representations or warranties with respect to the tax consequences of the payments referenced in Section 2.  Ms. Kolb agrees to pay any amount that may be determined to be due and owing by her and not otherwise withheld as taxes, interest, penalties, or other government-required payments, arising out of the payments set forth in Section 2, for which she is solely responsible.

6.            409A Compliance.  This Agreement is intended to comply with the requirements of section 409A (“Section 409A”) of the Internal Revenue Code of 1986, as amended (“Code”), insofar as it relates to amounts subject to Section 409A, and this Agreement will be construed and administered accordingly.  To the extent that any provision hereof is modified in order to comply with or be exempt from Section 409A, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to Uroplasty and Ms. Kolb of the applicable provision without violating the provisions of Section 409A.

2

7.            Indemnity.  Uroplasty hereby agrees to indemnify Ms. Kolb as required by Minnesota Statutes Section 302A.521.

8.            Release of Claims.  Ms. Kolb, on behalf of herself, her spouse, successors, heirs, and assigns, hereby forever releases and discharges Uroplasty, including its predecessors, successors, assigns, parents, subsidiaries, and affiliated entities, and the directors, officers, employees, agents, shareholders and insurers of each (the “Released Parties”) to the fullest extent permitted by law from any and all claims, debts, liabilities, demands, promises, agreements, costs and expenses (including but not limited to attorneys’ fees), damages, including liquidated damages or punitive damages, actions, and causes of action, of whatever kind or nature, whether known or unknown, suspected or unsuspected, fixed or contingent, arising out of any act or omission occurring before Ms. Kolb’s execution of this Agreement (except any claims arising out of or contemplated by this Agreement, and any claims under federal and state law that may not be released as a matter of law) including but not limited to:  (a) any claims based on, arising out of, or related to Ms. Kolb’s employment with, or the termination of her employment with, Uroplasty, and any claims for compensation of any kind, including without limitation, amounts due under any contract, all regular salary, expenses, distributions, earned but unused vacation, bonuses and incentive compensation, and stock options; (b) any claims arising from rights under federal, state and/or local laws, including but not limited to those related to any form of retaliation, harassment or discrimination on any basis, or any related cause of action, and any labor code provisions, including but not limited to, any alleged violation of Title VII of the Civil Rights Act of 1964; The Civil Rights Act of 1991; sections 1981 through 1988 of Title 42 of the United States Code, as amended; the Americans with Disability Act of 1990, as amended; the Occupational Safety and Health Act, as amended; the Age Discrimination in Employment Act; the Older Worker Benefits Protection Act; the Family and Medical Leave Act; the Equal Pay Act; the Employee Retirement Income Security Act; the Minnesota Human Rights Act; Minn. § 181.81; Minn. Stat. § 176.82; Minn. Stat. §§ 181.931, 181.932, 181.935; and/or Minn. Stat. §§ 181.940–181.944; and any provision of the Minnesota or federal constitutions; (c) any claims grounded in contract or tort theories, including but not limited to claims for wrongful discharge, breach of express or implied contract; breach of implied covenant of good faith and fair dealing; tortious interference with contractual relations or prospective economic benefit; promissory estoppel; breach of promise; breach of manuals or other policies; violation of public policy; fraud; misrepresentation; defamation, including libel, slander, and self-publication defamation; negligence; negligent hiring, supervision or retention; assault; battery; invasion of privacy; false imprisonment; infliction of emotional distress; harassment; or any other wrongful or unlawful acts, omissions, statements or practices; and/or (d) any other claim of any kind whatsoever, including but not limited to any claim for damages or declaratory or injunctive relief of any kind.

Nothing in this Agreement is intended to or does:  (1) impose any condition, penalty, or other limitation affecting Ms. Kolb’s right to challenge this Agreement; (2) constitute an unlawful release or waiver of any of Ms. Kolb’s rights under any laws; (3) waive or release any claim that arises after this Agreement is signed; (4) waive or release Ms. Kolb’s right to file an administrative charge with any local, state, or federal administrative agency under applicable law, or participate in any agency investigation, although Ms. Kolb does waive and release her right to recover any monetary or other damages under such applicable law, including but not limited to compensatory damages, punitive damages, liquidated damages, or attorneys’ fees and costs; or (5) prevent or interfere with Ms. Kolb’s right to provide truthful testimony, if under subpoena or court order to do so, or respond as otherwise provided by law.

3

Ms. Kolb agrees, understands, and acknowledges that, except as expressly stated herein, any and all claims which she has, had, or might have had against any of the Released Parties are fully released and discharged by this Agreement.

In exchange for the mutual promises and undertakings set forth herein and upon expiration of all applicable revocation or rescission periods without Kolb having exercised or attempted to exercise those revocation or rescission rights, Uroplasty will release and forever discharge Kolb from any and all claims it may have against Kolb, known or unknown, by reason of any act or omission occurring through the date Uroplasty executes this Agreement, except for the following: (a) any claim relating to the enforcement of this Agreement; (b) the violation of any federal, state, or local statutory or public policy right or entitlement that may not be waived by law; (c) such claims or liability that arise out of conduct by Ms. Kolb with respect to which she would not be permitted indemnity under Minnesota Law; or (d) Uroplasty’s right to recoup (claw back) payments to Kolb, to the extent required by the Sarbannes-Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer Protection Act, or any other federal or state securities statute or rule adopted pursuant to statute; or (e) any wrongful act or omission that occurs after the date Uroplasty executes this Agreement.

9.            ADEA Compliance.  Ms. Kolb has been informed of her right to review and consider this Agreement for 21 calendar days, if she so chooses.  Ms. Kolb further agrees and acknowledges that (a) her waiver of rights under this Agreement is knowing and voluntary as required under the Age Discrimination in Employment Act (“ADEA”); (b) she understands the terms of this Agreement; (c) Uroplasty advised Ms. Kolb to consult with an attorney prior to executing this Agreement; and (d) Ms. Kolb may rescind this Agreement insofar as it extends to potential claims under the ADEA by providing written notice to Uroplasty within seven (7) calendar days after the date of her signature below.  To be effective, the rescission must be in writing and delivered to Uroplasty either by hand or by mail within the seven (7)-day period.  If delivered by mail, the rescission must be:  (i) postmarked within the seven (7)-day period; properly addressed to Chief Executive Officer, Uroplasty, Inc., 5420 Feltl Road, Minnetonka, MN 55343; and (iii) sent by certified mail, return receipt requested.  In the event of such a rescission, (1) all of Uroplasty’s obligations under the Agreement shall be null and void, but the cessation of Ms. Kolb’s employment will be unaffected, and (2) any payments made as of that date by Uroplasty pursuant to Section 2, above, shall be immediately repaid by Ms. Kolb to Uroplasty.

10.          MHRA Compliance.  Ms. Kolb also has been informed of her right to rescind this Agreement insofar as it extends to potential claims under the Minnesota Human Rights Act (“MHRA”), Minn. Stat. § 363A, et seq., by providing written notice to Uroplasty within fifteen (15) calendar days after the date of her signature below.  To be effective, the rescission must be in writing and delivered to Uroplasty either by hand or by mail within the fifteen (15)-day period.  If delivered by mail, the rescission must be:  (i) postmarked within the fifteen (15)-day period; properly addressed to Chief Financial Officer, Uroplasty, Inc., 5420 Feltl Road, Minnetonka, MN 55343; and (iii) sent by certified mail, return receipt requested.  In the event of such a rescission, (1) all of Uroplasty’s obligations under the Agreement shall be null and void, but the cessation of Ms. Kolb’s employment will be unaffected, and (2) any payments made as of that date by Uroplasty pursuant to paragraph 2, above, shall be immediately repaid by Ms. Kolb to Uroplasty.

4

11.          Employment Agreement/Noncompetition.  Ms. Kolb hereby acknowledges that, Uroplasty’s obligations under the Employment Agreement shall be, and are, terminated upon execution of this Agreement, but that the Confidentiality Agreement shall survive the Termination Date.  Ms. Kolb acknowledges that her continuing obligations under the Confidentiality Agreement include, without limitation: (a) the covenants against competition and solicitation, and (b) the obligations with respect to trade secrets and confidential information.

12.          Confidentiality of this Agreement.  The terms of this Agreement shall remain strictly confidential between the parties hereto, and shall not be disclosed to third persons; provided, however, that Ms. Kolb may disclose such terms to her spouse, and that the parties may disclose the terms to their respective legal counsel, accountants and financial advisors so long as such counsel, accountants and advisors agree to maintain the confidentiality thereof and provided further that such terms may be disclosed where compelled by judicial process, by the rules and regulations of the Securities and Exchange Commission or by the Internal Revenue Service or other appropriate agency, or in any proceedings in which one of the parties hereto alleges a breach of, or seeks the enforcement of, this Agreement.

13.          Return of Company Records and Property.  Ms. Kolb shall deliver to Uroplasty all records, manuals, books, blank forms, documents, letters, memoranda, notes, notebooks, reports, data, tables, calculations or copies thereof, which are the property of Uroplasty or which relate in any way to the business, products, practices or techniques of Uroplasty, and all other property, trade secrets and confidential information of Uroplasty, including, but not limited to, all documents which in whole or in part contain any trade secrets or confidential information of the Uroplasty, which in any of these cases are in her possession or under her control.

14.          Agreement to Cooperate.  Upon request, Ms. Kolb agrees to give assistance and cooperation in any matter relating to her expertise or experience as Uroplasty may request in a written request, signed by Uroplasty’s Chief Financial Officer, including but not limited to (1) providing information concerning, or assistance with, investigations, claims, litigations, matters or projects in which Ms. Kolb was involved or as to which Ms. Kolb potentially has knowledge by virtue of her employment with Uroplasty, and/or (2) Ms. Kolb’s attendance and truthful testimony where deemed appropriate by Uroplasty, with respect to any investigation or Uroplasty’s defense or prosecution of any existing or future claims or litigations relating to matters in which Ms. Kolb was involved or as to which Ms. Kolb potentially has knowledge by virtue of her employment with Uroplasty.  To the extent permitted by law, Uroplasty will pay Ms. Kolb a consulting fee of $100 per hour for time reasonably incurred by her in carrying out her obligations under this Section 14 and will reimburse Ms. Kolb’s reasonable expenses incurred in connection with any travel that may be required to fulfill her obligation under this paragraph.

15.          Non-Disparagement.  Ms. Kolb agrees she will refrain from making any comments or statements concerning Uroplasty, either in writing, electronically, orally, or otherwise that (a) are disparaging or defamatory or portray Uroplasty in a negative light, including comments about the pricing, products, policies, or services of Uroplasty, (b) in any way impair the reputation, goodwill, or legitimate business interest of Uroplasty, or (c) disparage the employees, agents, officers or directors of Uroplasty that is likely to have a negative impact on the reputation, goodwill, or legitimate business interest of Uroplasty in a reasonably foreseeable way.  Uroplasty agrees that with the possible exception of necessary internal high-level comments related to Uroplasty business which shall remain confidential within the company, its directors and officers will make no critical, disparaging or defamatory comments regarding Kolb in any respect or make any comments concerning any aspect of Uroplasty’s relationship with Kolb.

5

Nothing herein shall preclude the parties from testifying under oath pursuant to validly issued legal process, making any truthful statement to law enforcement or other governmental authority in response to a lawful and formal request by such agency or pursuant to court order, or making any truthful public disclosure that the party reasonably believes is required by law, provided that the party that believes such statement is required provides the other party with notice of the request, order or other need for disclosure in a timely manner prior to divulging the information.

In the event that any party to this non-disparagement provision believes that the other party has violated this provision, the aggrieved party may assert a claim for same by initiating a summary arbitration proceeding.  The party invoking arbitration shall notify the other party in writing (the “Written Notice”). The parties shall exercise their best efforts, in good faith, to agree upon selection of a single arbitrator. If the parties are unable to agree upon selection of a single arbitrator, they shall so notify the American Arbitration Association (“AAA”) or another agreed upon arbitration administrator and request that the arbitration provider work with the parties to select a single arbitrator. The arbitration shall be conducted as a summary arbitration proceeding at a location mutually convenient to the home office of Uroplasty and the current home address of Kolb.  The arbitration will be completed within 15 days of the date of the notice of arbitration.  Remedies for violation of this section will be at the arbitrator’s discretion.  The arbitrator shall have no authority to assess punitive or exemplary damages.  The arbitrator’s decision shall be final and binding and enforceable in any court of competent jurisdiction.  To the extent permitted by applicable law, each party shall bear its own costs, including attorneys’ fees, and share all costs of the arbitration equally.  Nothing provided herein shall interfere with either party’s right to seek or receive damages or costs as may be allowed by applicable statutory law.  Arbitration is the sole and exclusive remedy for violation of this non-disparagement provision.

16.          No Admission.  This Agreement shall not in any way be used or otherwise construed as an admission by Uroplasty that it has acted wrongfully with respect to Ms. Kolb or any other person, or that Ms. Kolb has any rights whatsoever against Uroplasty.  Uroplasty specifically disclaims any liability to, or wrongful acts against, Ms. Kolb or any other person, on the part of itself, its directors, its officers, its employees, its representatives or its agents.

17.          Remedies.  Any breach by Ms. Kolb of her covenants under this Agreement (including but not limited to the covenants in the Confidentiality Agreement) will likely cause irreparable harm to Uroplasty or its affiliates for which money damages could not reasonably or adequately compensate Uroplasty or its affiliates.  Accordingly, Uroplasty or any of its affiliates shall be entitled to all forms of injunctive relief (whether temporary, emergency, preliminary, prospective, or permanent) to enforce such covenants, in addition to damages and other available remedies, and Ms. Kolb consents to the issuance of such an injunction without the necessity of Uroplasty or any such affiliate posting a bond, or if a court requires a bond to be posted, with a bond of no greater than $500 in principal amount.    In the event of a legal action between the Parties alleging breach of any obligations under this Agreement, then the prevailing party in such action shall be entitled to recover, in addition to any other relief that might be available, that Party’s reasonable attorney’s fees and costs.

6

18.          Waiver of Breach.  The waiver by Uroplasty of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach.

19.          Miscellaneous.

 

(a)  Entire Agreement.  Except for any confidentiality, non-competition, non-solicitation or similar provisions in other agreements between Uroplasty and Ms. Kolb that continue to be applicable after Ms. Kolb’s employment ends, which are hereby specifically preserved, this Agreement is the entire agreement between Ms. Kolb and Uroplasty concerning the termination of Ms. Kolb’s employment and it supersedes all other agreements and arrangements relating to the end of Ms. Kolb’s employment including, without limitation, the Employment Agreement.  It is Ms. Kolb’s intent to be legally bound by the terms of this Agreement.  No amendments, modifications or waivers of this Agreement shall be binding unless made in writing and signed by both Ms. Kolb and a Uroplasty representative so authorized by the Board of Directors.

(b)  Nonassignable.  This Agreement is personal to Ms. Kolb and may not be assigned by Ms. Kolb without the written agreement of Uroplasty.

(c)  Severability. Ms. Kolb and Uroplasty agree that if any part, term, or provision of this Agreement should be held to be unenforceable, invalid, or illegal under any applicable law or rule, the offending term or provision shall be applied to the fullest extent enforceable, valid, or lawful under such law or rule, or, if that is not possible, the offending term or provision shall be struck and the remaining provisions of this Agreement shall not be affected or impaired in any way.  However, if Ms. Kolb’s release of claims set forth in this Agreement is held invalid, illegal, or unenforceable, Uroplasty may void this Agreement.

(d)  Governing Law.  This Agreement will be governed by the laws of the State of Minnesota, without giving effect to its conflict of laws rules.  Any action brought by Ms. Kolb or Uroplasty with respect to this Agreement shall be brought and maintained in a court of competent jurisdiction in the State of Minnesota.

(e)  Consultation.  Ms. Kolb hereby affirms and acknowledges that she has read the foregoing Agreement, that she has hereby been advised to consult with an attorney prior to signing this Agreement, and that she has done so.  Ms. Kolb agrees that the provisions set forth in this Agreement are written in language understandable to her and further affirms that she understands the meaning of the terms of this Agreement and their effect.  Ms. Kolb represents that she enters into this Agreement freely and voluntarily.

(f)  Construction.  Ms. Kolb acknowledges and agrees that no promises or representations have been made to induce her to sign this Agreement other than as expressly set forth herein and that she has signed this Agreement as a free and voluntary act.  Further, this Agreement has been entered into after review of its terms by Ms. Kolb and her counsel.  Therefore, there shall be no strict construction for or against either party.  No ambiguity or admission shall be construed against Uroplasty on the grounds that this Agreement or any of its provisions was drafted or prepared by Uroplasty.

(g)  Headings.  The headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement.

7

(h)  Counterparts.  This Agreement may be executed in separate counterparts, each of which will be an original and all of which taken together shall constitute one and the same agreement, and any party hereto may execute this Agreement by signing any such counterpart.

 

By signing below, Ms. Kolb acknowledges and affirms that she has read this Agreement completely.  Ms. Kolb also acknowledges and affirms that:

 

		·	She has had a sufficient period of at least twenty-one (21) days within which to consider whether or not to accept this Agreement;

 

		·	The provisions of this Agreement are understandable to her;

 

		·	She has had an opportunity to consult with an attorney of her choice, Uroplasty has encouraged her to do so, and she has freely exercised that opportunity to the extent desired; and

 

		·	She has entered into this Agreement freely and voluntarily.

 

IN WITNESS WHEREOF, the parties have executed this Agreement by their signatures below.

 

	
Dated:  April 21, 2014

		
/s/ Nancy Kolb

	
	
 

		
Nancy A. Kolb

	
	
 

		
 

	
	
Dated:  April 28, 2014

	
UROPLASTY, INC.

	
	
 

		
 

	
	
 

	By	
/s/ Brett Reynolds

	
	
 

		
Brett Reynolds, SVP and

	
	
 

		
Chief Financial Officer

	

 

 

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00231-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00231-of-00352.parquet"}]]