Document:

exh10_2.htm

    Exhibit
10.2

     

     

     

    FORM
OF WAIVER
AGREEMENT

    (RETENTION
AGREEMENTS)

     

        WAIVER
AGREEMENT (this "Waiver"), made as of March 19, 2009, by and between Unity
Bancorp, Inc., a New Jersey corporation with an address at 64 Old Highway 22,
Clinton, NJ 08809 (the “Company”), Unity Bank, a New Jersey state commercial
bank with its principal place of business located at 64 Old Highway 22, Clinton,
NJ 08809 (the “Bank”) and __________, (the "Executive").  The Company
and the Bank shall be referred to herein collectively as the
“Employer”.

     

    

      WITNESSETH
:

      

      WHEREAS, the Employer and the Executive
have entered into that certain Retention Agreement, made as of March 19, 2007,
(and as may hereafter be further amended, modified, supplemented, extended,
renewed, restated or replaced, the "Retention Agreement"), which governs the
terms and conditions of the Executive’s employment with the
Employer;

      

      WHEREAS, as part of the Emergency
Economic Stabilization Act of 2008 (“EESA”), the United States Treasury (the
“Treasury”) adopted a program known as the Capital Purchase Program (“CPP”)
pursuant to which the Treasury will invest in United States insured depository
institutions;

      

      WHEREAS, the Company received an
investment of $20,649,000 from the Treasury pursuant to the CPP on December 5,
2008.

      

      WHEREAS, the terms of the CPP were
revised by the American Recovery and Reinvestment Act of 2009 (the “ARRA”),
which, among other things, imposed certain limitations upon the compensation of
executive officers of companies which participated in the CPP;

      

      WHEREAS, the Retention Agreement does
not comply with the requirements of the ARRA, in that it provides for certain
severance payments to the Executive; and

      

      WHEREAS,
the Executive is willing to waive such portions of the Retention Agreement which
do not comply with the ARRA subject to the terms and conditions contained
herein.

      NOW THEREFORE, in
consideration of the foregoing, and the respective agreements and covenants
contained herein, the parties hereto agree as follows:

      

           1.                      Waiver

      

      Subject to the terms and conditions
hereof, the Executive hereby agrees to waive all provisions of the Retention
Agreement that  would render the Employer in violation of the Section
111 of the EESA, as amended by the ARRA, and the regulations as may be
promulgated thereunder from time to time, including, but not limited
to:

      

      a.           Section
(b) of Article 1 of the Retention Agreement with respect to the Executive’s
rights to receive a payment equal to twelve (12) months of the Executive’s then
current Base Salary in the event of the Executive’s Termination Without
Cause;

      

      b.           Section
(c) of Article 1 of the Retention Agreement with respect to the Executive’s
right to receive a payment equal to twelve (12) months of the Executive’s then
current Base Salary upon the Executive’s Resignation With Cause;

      

      c.           Section
(a & d) of Article 2 of the Retention Agreement with respect to the
Executive’s right to receive a payment equal to the greater of: (i) twenty-four
(24) months of the Executive's Base Salary; or (ii) twenty-four (24) months of
the Executive's then current Base Salary plus any cash bonus received by the
Executive for the Employer's preceding fiscal year, in the event of a Change in
Control or Significant Acquisition;
provided,  however,  that
the  foregoing  waiver will be of no
further  force or effect,  and the Executive will be
entitled  to  exercise  all of  his
rights
and  remedies  under  the  Employment
Agreement, and applicable  law, automatically upon such time as the
Company is no longer prohibited from making the payments described above under
the EESA and regulations thereunder, whether because the Company’s obligation to
the Treasury arising from the Company’s participation in the CPP shall be
satisfied or excused, the EESA shall be further amended to eliminate the
prohibition on severance or otherwise.

      

      2           Further Limitations of
Waiver

      

      This Waiver by the Executive of the
benefits conferred upon him pursuant to the Retention Agreement shall be
construed only to the minimum extent necessary so that the Employer shall be in
compliance with the Section 111 of the EESA, the ARRA and the regulations as may
be promulgated from time to time thereunder (collectively, the “Acts”), and
shall not be construed to grant to the Employer additional benefits beyond what
is minimally required to comply with the Acts.

      

      3           Entire Agreement; Binding
Affect; Employment Agreement to Remain in Effect.  This Waiver
constitutes the entire and final agreement among the parties with respect to the
subject matter hereof and there are no agreements, understandings, warranties or
representations among the parties as to such subject matter except as set forth
herein.  This Waiver will inure to the benefit and bind the parties
hereto and the respective heirs, administrators, executors, representatives,
successors and permitted assigns of the parties hereto. Except as specifically
provided for hereunder, the Employment Agreement shall remain in full force and
effect, shall not be modified or otherwise revised by this Waiver
Agreement.

      

      4.           Defined
Terms.  Capitalized terms used herein and not otherwise defined
shall have the meanings ascribed to them in the Employment
Agreement.

      

      5.           Governing
Law.  This Waiver is executed and delivered in the State of New
Jersey and it is the desire and intention of the parties that it be in all
respects interpreted according to the laws of the State of New Jersey, without
giving effect to choice of law provisions thereof.

      

      6.           Counterparts.  This
Waiver may be executed in counterparts, each of which will be deemed an original
document, but all of which will constitute a single document.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      

      

      IN WITNESS WHEREOF, the
Company, the Bank and the Executive legally bound, have executed this Waiver
Agreement as of the date first noted above.

      

      

      

      Unity
Bancorp, Inc.

      

      

      

      By:  ________________________

      Name:  David D.
Dallas

      Title:     Chairman

      

      

      Unity
Bank

      

      

      

      By:  ________________________

      Name:  James A.
Hughes

      Title:     President/CEO

      

      

      

      ____________________________Exhibit 4.1

 

Exhibit 4.1

DATED this 8th day of January 2009

	(1)	 	BANCO SANTANDER, S.A.
	 
	(2)	 	ABBEY NATIONAL PLC

 

SHARE SUBSCRIPTION AGREEMENT

 

Slaughter and May

One Bunhill Row

London EC1Y 8YY

WSMR/WSW

 

 

CONTENTS

	 	 	 	 	 
	CLAUSE	 	 	 	PAGE
	 
	1.
	 	DEFINITIONS AND INTERPRETATION	 	3
	 
	 	 	 	 
	2.
	 	AGREEMENT TO SUBSCRIBE	 	4
	 
	 	 	 	 
	3.
	 	SIGNING AND COMPLETION	 	5
	 
	 	 	 	 
	4.
	 	WARRANTIES AND REPRESENTATIONS	 	5
	 
	 	 	 	 
	5.
	 	GENERAL PROVISIONS	 	6
	 
	 	 	 	 
	6.
	 	GOVERNING LAW AND JURISDICTION	 	9

 

 

AGREEMENT

DATED 8 January 2009

BETWEEN

	(1)	 	BANCO SANTANDER, S.A. incorporated under the laws of Spain, having its registered office at
Paseo de Pereda 9-12, Santander 39004, Spain, with Spanish tax identification number (CIF)
A39.000.013 (the “Subscriber”); and

	(2)	 	ABBEY NATIONAL PLC, a company incorporated in England and Wales (company number 02294747),
having its registered office at Abbey National House, 2 Triton Square, Regents Place, London,
NW1 3AN (the “Issuer”).

PRELIMINARY

	 	(A)	 	The Issuer is a public limited company with authorised share capital of
£2,475,000,000 divided into 24,750,000,000 ordinary shares of £0.10 each, of which
11,485,893,636 such ordinary shares are issued and fully paid up.
	 
	 	(B)	 	The Subscriber is the beneficial owner of all of the ordinary shares issued by the
Issuer.
	 
	 	(C)	 	The Subscriber wishes to subscribe for the Subscription Shares in exchange for the
transfer of the beneficial title to the A&L Shares from the Subscriber to the Issuer
pursuant to the terms of this agreement.
	 
	 	(D)	 	The Issuer’s acquisition of the A&L Shares from the Subscriber whereby it obtains a
majority of the voting rights in A&L, in exchange for the issue of the Subscription
Shares to the Subscriber, is a transaction falling within the Council Directive
90/434/EEC of 23 July 1990 on the common system of taxation applicable to mergers,
divisions, transfers of assets and exchanges of shares concerning companies of
different Member States.

IT IS AGREED:

	1.	 	DEFINITIONS AND INTERPRETATION

	1.1	 	In this agreement the following expressions have, unless inconsistent with the context or
otherwise specified, the following meanings:

	 	 	 	 	 
	 

	 	“A&L”
	 	Alliance & Leicester plc (company number 03263713),
a company incorporated in England and Wales having
its registered office at Carlton Park, Narborough,
Leicester, Leicestershire, LE19 0AL;
	 
	 	 	 	 
	 

	 	“A&L Shares”
	 	422,852,832 ordinary shares of £0.50 each in the
capital of A&L;
	 
	 	 	 	 
	 

	 	“Completion”
	 	completion of subscription of the Subscription Shares

 

4

	 	 	 	 	 
	 

	 	 	 	pursuant to the terms of this agreement;
	 
	 	 	 	 
	 

	 	“Completion Date”
	 	the date of this agreement;
	 
	 	 	 	 
	 

	 	“Encumbrance”
	 	any mortgage, charge, pledge, lien (other than a
lien arising by operation of law in the ordinary
course of trading), option, restriction, right of
first refusal, right of pre-emption, third party
right or interest, any other encumbrance or security
interest of any kind, and any other type of
preferential arrangement (including, without
limitation, title transfer and retention
arrangements) having a similar effect;
	 
	 	 	 	 
	 

	 	“Subscription Shares”
	 	12,631,375,230 ordinary shares of £0.10 each in the
capital of the Issuer to be subscribed for by the
Subscriber at Completion.

	1.2	 	In this agreement, unless inconsistent with the context or otherwise specified:

	 	(A)	 	the index and clause headings are inserted for ease of reference only and do not
affect its interpretation;
	 
	 	(B)	 	a reference to a clause is a reference to a clause of this agreement;
	 
	 	(C)	 	a reference to a person includes a reference to a firm, body corporate,
association, authority or partnership;
	 
	 	(D)	 	references to writing include any mode of reproducing words in a legible form and reduced
to paper; and
	 
	 	(E)	 	references to all or any part of any statute or statutory instrument include any statutory
amendment, modification or re-enactment in force from time to time and references to
any statute include any statutory instrument or regulations made under it.

	2.	 	AGREEMENT TO SUBSCRIBE

	2.1	 	Subject to clause 3, at Completion (and subject to Completion occurring) the Subscriber
agrees to subscribe for, and the Issuer agrees to allot and issue the Subscription Shares in
exchange for the transfer of the beneficial title to the A&L Shares from the Subscriber to the Issuer free from all
Encumbrances and together with all rights, benefits and advantages of any nature whatsoever
now or at any time after the date of this agreement attaching or accruing to them.

	2.2	 	For the avoidance of doubt, Part 1 of the Law of Property (Miscellaneous Provisions) Act 1994
shall not apply for the purposes of this clause.

 

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	3.	 	SIGNING AND COMPLETION

	3.1	 	Completion of the subscription for the Subscription Shares shall take place immediately after
signature of this agreement at such place as the Subscriber and the Issuer may agree on the
Completion Date or as soon as practicable thereafter.

	3.2	 	On Completion (and subject to Completion occurring):

	 	(A)	 	the Subscriber shall deliver or cause to be delivered to the Issuer a declaration
of trust (duly executed by the Subscriber in a form satisfactory to the Issuer) by
which the Issuer shall become beneficially entitled to the A&L Shares; and at the same
moment
	 
	 	(B)	 	the Issuer shall issue and allot the Subscription Shares to the Subscriber and
shall procure that the name of the Issuer is entered into the share register of the
Issuer and that the Issuer issues a share certificate to the Subscriber (or their
nominees) in respect of the Subscription Shares.

	4.	 	WARRANTIES AND REPRESENTATIONS

	4.1	 	The Subscriber warrants and represents to the Issuer that each of the statements set out in this
clause 4.1 (the “Subscriber’s Warranties”) is true and accurate in all respects and is
not misleading at the date of this agreement and at Completion, and that:

	 	(A)	 	the Subscriber is the sole beneficial owner of the A&L Shares;
	 
	 	(B)	 	there is no Encumbrance, nor is there any agreement, arrangement or obligation to
create or give any Encumbrance, on, over or affecting any of the A&L Shares
and no claim has been made by any person to be entitled to any Encumbrance;
	 
	 	(C)	 	the A&L Shares are fully paid up or credited as fully paid up;
	 
	 	(D)	 	the Subscriber has the legal right and full power and authority to execute and
deliver, and to exercise its rights and perform its obligations under this agreement
and all the documents which are to be executed by it at Completion;
	 
	 	(E)	 	all corporate action required by the Subscriber validly and duly to authorise the
execution and delivery of, and the exercise of its rights and performance of its
obligations under, this agreement and all other documents which are to be executed by
it at Completion has been duly taken; and
	 
	 	(F)	 	this agreement and all other documents which are to be executed by it at
Completion will, when executed, create legal, valid and binding obligations of the
Subscriber enforceable against the Subscriber in accordance with their terms.

	4.2	 	The Issuer warrants, represents and undertakes to the Subscriber that each of the statements set
out in this clause 4.2 (the “Issuer’s Warranties”) is true and accurate

 

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	 	 	in all respects and is not misleading at the date of this agreement and Completion, and that:

	 	(A)	 	the Issuer has the legal right and full power and authority to execute and
deliver, and to exercise its rights and perform its obligations under this agreement
and all the documents which are to be executed by it at Completion;
	 
	 	(B)	 	all corporate action required by the Issuer validly and duly to authorise the
execution and delivery of, and the exercise of its rights and performance of its
obligations under, this agreement and all other documents which are to be executed by
it at Completion has been duly taken; and
	 
	 	(C)	 	this agreement and all other documents which are to be executed by it at
Completion will, when executed, create legal, valid and binding obligations of the
Issuer enforceable against the Issuer in accordance with their terms.

	4.3	 	The Subscriber’s Warranties shall remain in full force and effect notwithstanding Completion.

	5.	 	GENERAL PROVISIONS

	5.1	 	Costs
	 
	 	 	Except as otherwise stated in any provision of this agreement, each party shall pay its own
costs and expenses incurred in the negotiation and preparation, execution and carrying into
effect of this agreement and all other documents referred to in it.

	5.2	 	Further assurance
	 
	 	 	Each party shall, at its own cost, from time to time on request, do or procure the doing of all
acts and/or execute or procure the execution of all documents in a form satisfactory to the
other party which the other party (acting reasonably) may consider necessary for giving full
effect to this agreement and the transactions contemplated by it.

	5.3	 	Entire agreement

	 	(A)	 	The written terms of this agreement and any other documents referred to in this
agreement (the “Subscription Documents”) constitute the entire understanding between
the parties, and constitute the whole agreement of the parties in relation to their
subject matter and supersede any previous agreement between the parties with respect
thereto.
	 
	 	(B)	 	Each party acknowledges that in entering into the Subscription Documents it is not
relying upon any pre-contractual statement which is not set out in the Subscription
Documents.
	 
	 	(C)	 	Except in the case of fraud, no party shall have any right of action against any other
party to this agreement arising out of or in connection with any pre-

 

7

	 	 	 	contractual statement except to the extent that it is repeated in the Subscription Documents.

	 	(D)	 	For the purposes of this clause, “pre-contractual statement” means any draft,
agreement, undertaking, representation, warranty, promise, assurance or arrangement of
any nature whatsoever, whether or not in writing, relating to
the subject matter of this agreement made or given by any person at any time prior
to this agreement becoming legally binding.

	5.4	 	Contracts (Rights of Third Parties) Act 1999
	 
	 	 	A person who is not a party to this agreement has no right under the Contracts (Rights of Third
Parties) Act 1999 to enforce any terms of this agreement, but this does not affect any right or
remedy of a third party which exists or is available apart from that Act.

5.5 Severability

If at any time any provision of this agreement is or becomes, or is adjudicated by any court of
competent jurisdiction or public authority to be, illegal, invalid or unenforceable in any
respect under the law of any jurisdiction, this shall not affect or impair:

	 	(A)	 	the legality, validity or enforceability in that jurisdiction of any other
provision of this agreement; or
	 
	 	(B)	 	the legality, validity or enforceability under the law of any other jurisdiction
of that or any other provision of this agreement.

	5.6	 	Amendment
	 
	 	 	This agreement may be amended or modified in whole or in part at any time by an agreement in
writing executed by or on behalf of the parties to this agreement.

	5.7	 	Waiver
	 
	 	 	No failure to exercise or delay in exercising any right or remedy under this agreement shall
constitute a waiver thereof and no waiver by either party of any breach or non-fulfilment by the
other party of any provision of this agreement shall be deemed to be a waiver of any subsequent
or other breach of that or any other provision of this agreement. No single or partial exercise
of any right or remedy under this agreement shall preclude or restrict the further exercise of
any such right or remedy. The rights and remedies provided in this agreement are cumulative and
not exclusive of any rights and remedies provided by law.

	5.8	 	Assignment
	 
	 	 	This agreement shall be binding upon and inure for the benefit of the successors of the parties,
but neither party may assign, encumber, dispose of or otherwise transfer any of its rights under
this agreement.

 

8

	5.9	 	Counterparts

	    	This agreement may be executed in one or more counterparts, and by the parties on separate
counterparts, but shall not be effective until each party has executed at least one counterpart.
Each counterpart shall constitute an original of this agreement, but all the counterparts shall
together constitute the same instrument.

	5.10	 	Notices

	 	(A)	 	A notice or other communication in connection with this agreement:

	 	(i)	 	must be in writing; and
	 
	 	(ii)	 	must be left at the address of the addressee or sent by prepaid
ordinary post (airmail if posted overseas) to the address of the addressee
which is specified in clause (B) of this agreement or, if the addressee
notifies another address or a facsimile number for such purpose, then to that
other address or facsimile number.

	 	(B)	 	The address of each party for the purposes of clause (A) is:

	 	(i)	 	Banco Santander, S.A. with registered office at Paseo de Pereda
9-12, Santander, Spain, and Spanish tax identification number (CIF)
A39.000.013 marked for the attention of the Secretario and
	 
	 	(ii)	 	Abbey National plc at the registered office of Abbey National
House, 2 Triton Square, Regents Place, London NW1 3AN, marked for the
attention of the Company Secretary.

	 	(C)	 	A notice or other communication shall take effect from the time it is received
(or, if earlier, the time it is deemed to be received in accordance with clause (D))
unless a later time is specified in it. A notice or communication sent by facsimile
transmission shall be confirmed by personal delivery or by post in accordance with
clause (A) within two business days of the facsimile taking effect.
	 
	 	(D)	 	Any notice or other communication given or made under or in connection with the
matters contemplated by this agreement shall be addressed as provided in clause (B)
and, if so addressed, shall be deemed to have been duly given or made as follows:

	 	(i)	 	if personally delivered, upon delivery at the address of the
relevant party;
	 
	 	(ii)	 	if sent by first class post, two business days after the date
of posting;
	 
	 	(iii)	 	if sent by airmail, six business days after the date of
posting; and
	 
	 	(iv)	 	if sent by facsimile transmission, on receipt of printed
confirmation of successful transmission.

 

9

	6.	 	GOVERNING LAW AND JURISDICTION

	6.1	 	This agreement is governed by, and shall be construed in accordance with, the law of England and
Wales.

	6.2	 	In relation to any legal action or proceedings to enforce this agreement or arising out of or in
connection with this agreement and the legal relationship established by this agreement each
of the parties irrevocably submits to the exclusive jurisdiction of the Courts of England and
Wales and waives any right to object to such proceedings
in such courts on the grounds of venue or on the grounds that the proceedings have been
brought in an inappropriate forum.

 

 

IN WITNESS WHEREOF the parties hereto or their duly authorised representatives have executed this
agreement the day and year first above written.

	 	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 	 
	for and on behalf of

	 	 	)	 	 	 	 
	 

	 	 	)	 	 	 	 
	BANCO SANTANDER, S.A. by

	 	 	)	 	 	 	 
	a duly authorised representative

	 	 	)	 	 	 	 
	of/for and on behalf of

	 	 	)	 	 	 	 
	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Authorised Representative	 
	 
	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 	 
	a duly authorised representative

	 	 	)	 	 	 	 
	of/for and on behalf of

	 	 	)	 	 	 	 
	 

	 	 	)	 	 	 	 
	ABBEY NATIONAL plc

	 	 	)	 	 	 	 
	 
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Authorised Representative

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