Document:

ex10_19.htm

Exhibit 10.19

 

FARMERS & MERCHANTS BANK OF CENTRAL CALIFORNIA

FARMERS & MERCHANTS BANCORP

EXECUTIVE RETIREMENT PLAN – EQUITY COMPONENT

	
1.

	
Purpose of the Plan.  The purpose of this Plan is to serve as part of a program to attract, retain and reward a select group of the Bank’s executive officers and directors by providing retirement benefits in excess of the limitations on contributions or benefits imposed by the IRC.

	
2. 

	
Definitions.  As used in this Plan, the following terms shall have the meanings indicated below:

"Bank" shall mean Farmers & Merchants Bank of Central California and any of its subsidiaries.

"Board of Directors" shall mean the Board of Directors of the Bank and Holding Company.

"Plan Award" shall mean, in respect of any Participant, a dollar amount as determined by the Committee for purposes of such Participant's participation in the Plan.

"Termination for Cause" shall mean the Bank terminating the Participant’s employment for conviction of a felony resulting in a material economic adverse effect on the Bank.

“Change of Control” shall mean a change of control of the Holding Company. Such a Change of Control  will be deemed to have occurred immediately before any of the following occur: (i)  individuals, who were members of the Board of Directors of the Holding Company immediately prior to a meeting of the shareholders of the Holding Company which meeting involved a contest for the election of directors, do not constitute a majority of the Board of Directors of the Holding Company following such election or meeting, (ii) an acquisition, directly or indirectly, of more than 35% of the outstanding shares of any class of voting securities of the Holding Company by any Person, (iii) a merger (in which the Holding Company is not the surviving entity), consolidation or sale of all, or substantially all, of the assets of the Holding Company, or (iv) there is a change, during any period of one year, of a majority of the Board of Directors of the Holding Company as constituted as of the beginning of such period, unless the election of each director who is not a director at the beginning of such period was approved by a vote of at least a majority of the directors then in office who were directors at the beginning of such period.  If any of the events or circumstances described in (i)-(iv), above, shall occur to or be applicable to the Bank, then such Change of Control shall be deemed for all purposes of this agreement to also be a “Change of Control” of the Holding Company.  For purposes of this agreement, the term “Person” shall mean and include any individual, corporation, partnership, group, association or other “person”, as such term is used in Section 14(d) of the Securities Exchange Act of 1934, other than the Holding Company, the Bank, any other wholly owned subsidiary of the Holding Company or any employee benefit plan(s) sponsored by the Holding Company, Bank or other subsidiary of the Holding Company. Notwithstanding the foregoing, a Change of Control shall not be deemed to have occurred unless the change also constitutes the occurrence of a "change in control event,” as defined in Treasury Regulation Section 1.409A-3(i)(5), with respect to the Participant.

"Committee" shall mean the Personnel Committee of the Board of Directors or such other committee that the Board of Directors may designate from time to time.

  

  

  

 

“Disability” shall mean when a Participant (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is by reason of  any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering employees of Bank.  Disability shall be determined by a physician acceptable to both the Committee and the Participant, and shall be interpreted to comply with the definition of “disability” under Section 409A and the regulations thereunder.

“Full Year of Service” shall mean any year in which an individual completes at least 1,400 hours of employment with the Bank or the Holding Company.

"Holding Company" shall mean Farmers & Merchants Bancorp.

“Normal Retirement Age” shall mean the Participant’s sixty-fifth (65th) birthday.

"Participant" shall mean (i) the President, (ii) any of the Executive Vice Presidents, (iii) any of the Senior Vice Presidents, and (iv) any of the Directors of the Bank who is selected for participation in the Plan based on the recommendation of the Committee and the approval of the Board of Directors.

"Plan" shall mean the Farmers & Merchants Bank of Central California and Farmers & Merchants Bancorp Executive Retirement Plan as set forth in this document, as successor of any prior plans of the same name, and as the same may be amended or supplemented from time to time.

“Stock” shall mean shares of the Holding Company’s common stock, par value $0.01, subject to such conditions on vesting and transfer and other restrictions as established in or pursuant to this Plan.

“Retirement Account” shall mean the account maintained on the books of the Bank as described in Section 5.

“Retirement Date” shall mean the day on or after the Participant’s Normal Retirement Age when the Participant’s Employment is Terminated.

“Termination of Employment” or “Employment is Terminated” shall mean the Participant has a separation from service with the Bank for any reason, voluntary or involuntary, other than death, as defined under Treasury Regulation Section 1.409A-l(h).  Subject to the foregoing, whether a separation from service has occurred is determined based on whether the facts and circumstances indicate that the Bank and the Participant reasonably anticipated that no further services would be performed after a certain date or that the level of bona fide services the Participant would perform after such date (as an employee or independent contractor) would permanently decrease to no more than 20 percent of the average level of bona fide services performed over the immediately preceding 36-month period (or the full period in which the Participant provided services to the Bank if the Participant has been providing services for less than 36 months). A Participant will not be deemed to have experienced a separation from service if such Participant is on military leave, sick leave, or other bona fide leave of absence, to the extent such leave does not exceed a period of six months or, if longer, such longer period of time during which a right to re-employment is protected by either statute or contract. If the period of leave exceeds six months and the individual does not retain a right to re-employment under an applicable statute or by contract, the separation from service will be deemed to occur on the first date immediately following such six-month period.

  

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3.

	
Retirement Compensation.  Participants in the Plan will be eligible to earn Retirement Compensation in the form of a Plan Award.

 

	
  

	
a)

	
The Committee may, in its sole discretion, grant one or more Plan Awards to any Participant.

 

	
  

	
b)

	
As more fully described Section 5 hereof, Plan Awards will be credited to each Participant’s Retirement Account, and equivalent amounts transferred to a rabbi trust established under Section 19 for investment in a mix of shares of Stock and liquid assets.  The Retirement Accounts shall be credited with income or debited with loss based on the hypothetical investment of such accounts in accordance with the investments in the rabbi trust.

 

	
  

	
c)

	
All rights associated with the Stock held in the rabbi trust shall be exercised by the trustee or the person designated by the trustee, and shall in no event be exercisable by or rest with the Participants, except that voting rights with respect to Stock will be exercised by the Company.  The Company shall have the right, at any time and from time to time in its sole discretion, to substitute assets of equal fair market value for any asset held by the rabbi trust.  This right is exercisable by the Company in a nonfiduciary capacity without the approval or consent of any person in a nonfiduciary capacity. A Participant shall have no voting or dividend or other rights of a shareholder with respect to shares of Stock until a distribution of shares of Stock is made under Section 10 hereof.

 

	
  

	
d)

	
Shares of Stock owned by the rabbi trust shall be held in a brokerage account established by the trustee of the rabbi trust established under Section 19 hereof.  Upon a distribution of shares of Stock to a Participant under Section 10 hereof, shares of Stock shall be transferred into a brokerage account established in the Participant’s name.

	
  

	
e)

	
The trustee of the rabbi trust shall at all times be deemed to an “agent independent of the issuer” for purposes of SEC Rule 10b-18.   As such, neither the Bank, the Holding Company nor any of their respective affiliates will exercise any direct or indirect control or influence over the prices or amounts of the Stock to be purchased, the timing of, or the manner in which, the Stock is to be purchased, or the selection of a broker or dealer through which purchases may be executed.  For purposes of the foregoing, the revision not more than once in any three months period of the mix of liquid assets and Stock to be held by the Plan shall not constitute such control or influence.

	
  

	
f)

	
Notwithstanding the provisions of Section 3 (c), a Participant’s Retirement Account shall be credited with the amount of any dividends paid with respect to all shares of Stock credited to the Retirement Account with respect to a Plan Award, and with appreciation and depreciation in the value of such shares, even though the Plan Award is not fully vested, provided that all amounts credited to the Retirement Account shall remain subject to vesting and forfeiture in accordance with Section 4 and Section 9 hereof.

 

	
  

	
g)

	
Unless the Committee otherwise expressly provides, subject to the guidelines of Section 4 and Section 9 hereof, shares of Stock that have not vested at the time of Termination of Employment shall not vest.

 

  

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4.

	
Vesting.  A Participant's entitlement to his or her Retirement Account balance shall vest based on the Participant's Full Years of Service with the Bank, measured beginning with the later of: (i) the quarter after which he or she is awarded a Plan Award; or (ii) the quarter after which he or she executes the attached Payment Election, as set forth in the vesting schedule below.  The receipt of an additional Plan Award shall result in a new vesting schedule for such additional Plan Award. In the event of (i) a Change of Control, or (ii) the termination of the Participant's employment at the Bank due to his or her death or Disability, his or her Retirement Account balance shall become 100% vested.

 

	 
Post-Award Full Years of Service

	 
Percentage of 

Award Vested

	 	 
	Less than 1 year      	0%
	1 year to less than 2 years        	50%
	2 years or more  	100%

                                                                                                                                                                                                                                           

	
5.

	
Retirement Account.  The Bank shall establish a Retirement Account on its books for the Participant.  Plan Awards will be credited to this account and transferred to the rabbi trust established under Section 19 (b) upon the earlier of a Change of Control or the end of each calendar month. The Company shall, in its discretion, direct the trustee to invest trust assets in a mix of Stock and liquid assets.  The Company intends to maintain a sufficient level of liquid assets in the rabbi trust for required payroll tax withholding upon payment of Retirement Account balances under Section 10.

Liquid assets in the rabbi trust shall be invested in a money market or short-term bond fund (or other equivalent interest bearing instruments approved by the Committee).

A Participant shall be entitled to the amount set forth in the Retirement Account applicable to him or her, subject to the terms and conditions of this Plan, including the vesting rules set forth in Section 4, the forfeiture rules set forth in Section 9 and the payment rules set forth in Section 10.

	
6.

	
Earnings on Retirement Account Balances. Earnings, including dividends paid by the Holding Company on the shares of Stock owned by the rabbi trust, and losses will be credited or debited to each Participant’s Retirement Account balance based on the hypothetical investment of such accounts in accordance with the investments in the rabbi trust.

	
7.

	
Notice of Plan Award and Statement of Accounts. As soon as practicable following a determination by the Committee to grant a Plan Award to a Participant, the Committee shall give written notice to the Participant of the dollar amount of the Plan Award.  Such notice shall enclose a copy of the Plan.  The Bank shall also provide to the Participant, within sixty (60) days after each calendar year-end, a statement setting forth the Participant’s account balance.

	
8.

	
Accounting Device Only.  The Retirement Account is solely a device for measuring amounts to be paid under this Plan.  It is not a trust fund of any kind.  The Participant is a general unsecured creditor of the Bank for the payment of benefits.  The benefits represent the mere Bank promise to pay such benefits. The Participant’s rights are not subject in any manner to anticipation, alienation, transfer, assignment, pledge, encumbrance, attachment, or garnishment by the Participant’s creditors.

	
9.

	
Forfeiture.  Except in the event of (i) Change of Control, (ii) death or (iii) Disability, on termination of a Participant’s status as a Participant (whether upon the Participant’s Retirement Date or Termination of Employment without Cause), that portion of the Retirement Account that is not vested upon the occurrence of such event shall be forfeited by the Participant. Notwithstanding anything to the contrary, in the event of the Participant's Termination for Cause, all entitlement and other rights of Participant to any Retirement Account balance, whether or not vested, shall be cancelled, terminated and forfeited in their entirety.  Amounts forfeited by any individual Participant will, in the sole discretion of the Committee, either (i) remain in the Plan and be used to offset future Plan credits required under Section 6 for the remaining Participants, or (ii) withdrawn from the Plan (and the rabbi trust); provided that any shares of Stock not distributed to Participants shall revert to the Holding Company upon termination of the trust.

 

  

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10.

	
Payment.   Except in the event of a Change of Control, payment of Retirement Account balances which are deemed invested in shares of Stock owned by the rabbi trust shall be made through the distribution of shares to the Participant, to the extent permitted under applicable law and subject to such restrictive legends as may be required under securities laws (subject to payroll tax withholding, which may be satisfied with cash proceeds from the sale of shares in the rabbi trust).  In the event of a Change of Control, payment of all balances shall be made in cash.

 

	
  

	
a)

	
Retirement. Upon the Participant attaining his or her Retirement Date (i.e., Termination of Employment at or after Normal Retirement Age), the Bank shall pay the vested portion of Participant's Retirement Account in accordance with the Participant’s Election on the attached Payment Election.

 

	
  

	
b)

	
Disability.  If Participant’s Termination of Employment is due to Disability, the Bank shall pay the vested portion of the Participant's Retirement Account in accordance with the Participant’s Election on the attached Payment Election for a Retirement under subsection a) above (if Termination of Employment is at or after Normal Retirement Age) or as elected on the attached Payment Election for a Termination without Cause under subsection e) below (if Termination of Employment is before Normal Retirement Age).

 

	
  

	
c)

	
Death.  Notwithstanding any distribution election, in the event of the Participant's death (i) while employed by the Bank or the Holding Company, the full amount of Participant's vested Retirement Account shall be paid to the Participant's heirs, devisees or designated beneficiaries in one lump sum payment within sixty (60) days following the Participant’s death, or (ii) while receiving payments of his Retirement Account as a result of his prior Termination of Employment, the remaining portion of Participant’s vested Retirement Account which had not been previously paid out shall be paid to the Participant's heirs, devisees or designated beneficiaries in one lump sum payment within sixty (60) days following the Participant’s death.

	
  

	
d)

	
Change of Control.  In the event of a Change of Control, the Bank shall pay the full amount of the Participant's Retirement Account (or the remaining portion of the Participant’s Retirement Account if payments had already commenced as a result of a prior Termination of Employment) in a lump sum immediately prior to the Change of Control.

	
  

	
e)

	
Termination without Cause.  In the event of the Participant’s Termination of Employment with the Bank other than for Cause before Normal Retirement Age, the Bank shall pay the vested portion of Participant's Retirement Account in accordance with the Participant’s Election on the attached Payment Election.

 

	
11.

	
Beneficiary Designation.  The Participant shall have the right, at any time to submit a Beneficiary Designation Form designating primary and secondary beneficiaries to whom payment under this Plan shall be made in the event of death prior to complete distribution of the benefits due and payable under the Plan. Each beneficiary designation shall become effective only when receipt thereof is acknowledged in writing by the Bank.  The Participant's Beneficiary designation shall be deemed automatically revoked if the Beneficiary predeceases the Participant or if the Participant names a spouse as beneficiary and the marriage is subsequently dissolved.  If the Participant dies without a valid beneficiary designation, all payments shall be made to the Participant's estate.

 

  

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12.

	
Assignment of Rights.    Neither the Participant nor any designated beneficiary shall have any right to sell, assign, transfer, or otherwise convey the right to receive any payments hereunder without the prior written consent of the Bank.

	
13.

	
Domestic Relations Orders.  Notwithstanding any other provision of this Plan regarding the time or form of payment to the contrary, the Committee may in its sole discretion pay, or direct payment of all or any portion of the Participant’s Retirement Account directly to an alternate payee in order to comply with a domestic relations order (“DRO”) as defined in Code Section 414(p)(1)(B).  The Committee may, but is not required to, establish regular procedures for reviewing and commenting on draft DROs before issuance by the family court and for advising the Participant and alternate payee regarding the changes which are required in a DRO issued by the court to make it acceptable to the Plan.  To facilitate any payment to be made in compliance with a DRO, the Committee shall have the right, but shall not be required, to establish a separate account for the alternate payee and may, but shall not be required, to allow the alternate payee to self-direct the deemed investment thereof subject to such conditions as it deems appropriate.  The Committee may in its sole discretion decide to make all payments required in a DRO in cash, without regard to whether the Participant’s Retirement Account has deemed investments in Shares.  Any payment made under this Section to an alternate payee shall reduce the Retirement Account of the Participant by the amount thereof, and shall fully discharge the Bank’s obligation under this Plan or otherwise with respect to such amount.  No payment made by the Bank to an alternate payee with respect to a Participant shall constitute a waiver of the Bank’s right to refuse to accept another DRO concerning any remaining account of the Participant, nor shall the fact of such payment affect in any way the applicability of this Section to any other Participant.   Any payments made under a DRO to an alternate payee shall be net of any applicable withholding.  This Section (and any DRO) shall be interpreted and applied in a manner that complies with the applicable provisions of Section 409A of the Code and the applicable regulations and other guidance promulgated thereunder.

	
14.

	
Unfunded and Unsecured Obligation. Neither the Holding Company nor the Bank is required to earmark or otherwise set aside any funds or other assets or in any way secure payment of its obligations under the Plan.  Any asset which may be set aside by the Holding Company or the Bank for accounting purposes or in a rabbi trust is not to be treated as held in trust for any Participant or for his or her account.  Each Participant shall have only the rights of a general, unsecured creditor of the Holding Company and/or the Bank with respect to any of his or her rights under the Plan.

	
15.

	
Claims Procedure.  Any claim pertaining to a Participant's benefits under the Plan shall be filed with the Chairman of the Committee for the consideration of the Committee.  Written notice of the disposition of a claim shall be furnished the Participant within 30 days after the application therefore is filed.  In the event the claim is denied, the specific reasons for such denial shall be set forth, pertinent provisions of the Plan shall be cited and, where appropriate, an explanation as to how the Participant can perfect his or her claim will be provided.

	
16.

	
No Contract of Employment.  Nothing contained herein shall be construed to be a contract of employment for any term of years, nor as conferring upon the Participant the right to continue to be employed by the Bank, in any capacity, nor in any way vary the Bank’s policy of at-will employment. It is expressly understood by the parties hereto that this Plan relates exclusively to the compensation as set forth in this agreement.

 

  

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17.

	
Construction of Agreement.  Any payments under this Plan shall be independent of, and in addition to, those under any other retirement plan, program, or agreement which may be in effect between the parties hereto, or any other compensation payable to the Participant or the Participant’s designated beneficiary by the Bank.  All legal issues pertaining to the Plan shall be determined in accordance with the laws of the State of California except as preempted by Federal law.

	
18.

	
Amendment and Termination.  The Bank shall have the right at any time to modify, alter or amend this Plan, in whole or in part, provided that the amendment shall not reduce any Participant's interest in the Plan, calculated as of the date on which the amendment is adopted. Upon Plan termination, the Bank may accelerate the distribution of Retirement Account balances only in accordance with the requirements of Section 409A and the regulations issued thereunder.  Bank reserves the right to change this Plan, including reducing any Participant’s interest in this Plan in order to make such Plan compliant with Section 409A.

	
19.

	
The Committee.

	
  

	
a)

	
 
The Committee shall, for the purpose of administering the Plan, choose a secretary and an assistant secretary (either of whom is hereafter referred to as "Secretary") who shall keep minutes of the Committee's proceedings and all records and documents pertaining to the Committee’s administration of the Plan. The Secretary may execute any certificates or other written direction on behalf of the Committee. A majority of the members of the Committee shall constitute a quorum.

 

	
  

	
b)

	
The Committee on behalf of the Participants shall be charged with the general administration of the Plan and shall have all powers necessary to accomplish those purposes including, but not by way of limitation, the following:

 

 

	

-

	

to construe, interpret, and administer the Plan;

	

-

	

to make determinations under the Plan;

	

-

	

to establish a rabbi trust for the Plan and to deposit amounts calculated under Sections 5 and 6 into such trust established by the Committee (provided, however, that notwithstanding anything in the Plan or other agreement to the contrary, in no event shall a contribution be made to a trust for the purpose of restricting assets to the provision of benefits under the Plan in connection with a change in the financial health of the Bank or any affiliated entity in a manner that would result in the inclusion of amounts in the gross income of the Participants pursuant to Section 409A(b) of the Code;

	

-

	

to maintain the necessary records for the administration of the Plan; and

	

-

	

to make and publish such rules for the regulation of the Plan as are not inconsistent with the terms hereof.

Decisions and determinations by the Committee shall be final and binding upon all parties and shall be given the maximum deference allowed by law.

	
  

	
c)

	
The members of the Committee shall serve without bond and without compensation (except for director fees) for their services hereunder. All expenses of the Committee shall be paid by the Bank. The Bank shall furnish the Committee with such clerical and other assistance as is necessary in the performance of its duties. No member of the Committee shall be liable for the act or omission of any other member of the Committee, nor for any act or omission on his or her own part, excepting only his or her own willful misconduct or gross negligence. The Bank shall indemnify and hold harmless each member of the Committee against any and all expenses and liabilities arising out of his or her membership on the Committee, excepting only expenses and liabilities arising out of his or her own willful misconduct or gross negligence.

 

  

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20.

	
Gross-Up Payment.  Upon a Change of Control, a Participant shall be entitled to a “Gross-Up Payment” under the terms and conditions set forth herein, and such payment shall include the Excise Tax reimbursement due pursuant to subsection a) and any federal and state tax reimbursements due pursuant to subsection b).

 

	
  

	
a)

	
 
In the event that any payment or benefit (as those terms are defined within the meaning of Section 280G(b)(2) of the Internal Revenue Code of 1986, as amended (the “Code”)) paid, payable, distributed or distributable to a Participant (hereinafter referred to as “Payments”) pursuant to the terms of this Plan or otherwise in connection with or arising out a Change of Control would be subject to the Excise Tax imposed by Section 4999 of the Code or any interest or penalties are incurred by the Participant with respect to such Excise Tax, then the Participant will be entitled to receive an additional payment (“Gross-Up Payment”) in an amount equal to the total Excise Tax, interest and penalties imposed on the Participant as a result of the Payment and the Excise Taxes on any federal and state tax reimbursements as set forth in subsection b).

 

	
  

	
b)

	
If the Bank is obligated to pay the Participant pursuant to subsection a), the Bank also shall pay the Participant an amount equal to the “total presumed federal and state taxes” that could be imposed on the Participant with respect to the Excise Tax reimbursements due to the Participant pursuant to subsection a) and the federal and state tax reimbursements due to the Participant pursuant to this subsection.  For purposes of the preceding sentence, the “total presumed federal and state taxes” that could be imposed on the Participant shall be conclusively calculated using a combined tax rate equal to the sum of the (a) the highest individual income tax rate in effect under (i) Federal tax law and (ii) the tax laws of the state in which the Participant resides on the date that the payment is computed and (b) the hospital insurance portion of FICA.

 

	
  

	
c)

	
No adjustments will be made in this combined rate for the deduction of state taxes on the federal return, the loss of itemized deductions or exemptions, or for any other purpose for paying the actual taxes.

 

	
  

	
d)

	
It is further intended that in the event that any payments would be subject to other “penalty” taxes (in addition to the Excise Tax in subsection a)) imposed by Congress or the Internal Revenue Service that these taxes would also be included in the calculation of the Gross-Up Payment, including any federal and state tax reimbursements pursuant to subsection b).

 

	
  

	
e)

	
An initial determination as to whether a Gross-Up Payment is required pursuant to the Plan and the amount of such Gross-Up Payment shall be made at the Bank’s expense by an accounting firm appointed by the Bank prior to any Change of Control.  The accounting firm shall provide its determination, together with detailed supporting calculations and documentation to the Bank and the Participant prior to submission of the proposed change of control to the Holding Company’s shareholders, Board of Directors or appropriate regulators for approval.  If the accounting firm determines that no Excise Tax is payable by the Participant with respect to a Payment or Payments, it shall furnish the Participant with an opinion reasonably acceptable to the Participant that no Excise Tax will be imposed with respect to any such Payment or Payments.  Within ten (10) days of the delivery of the determination to the Participant, the Participant shall have the right to dispute the determination.  The existence of the dispute shall not in any way affect the Participant’s right to receive the Gross-Up Payment in accordance with the determination.  Upon the final resolution of a dispute, the Bank or its successor shall promptly pay to the Participant any additional amount required by such resolution.  If there is no dispute, the determination shall be binding, final and conclusive upon the Bank and the Participant, except to the extent that any taxing authority subsequently makes a determination that the Excise Tax or additional Excise Tax is due and owing on the payments made to the Participant.  If any taxing authority determines that the Excise Tax or additional Excise Tax is due and owing, the entity acquiring control of the Bank shall pay the Excise Tax and any penalties assessed by such taxing authority.

 

  

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f)

	
Notwithstanding anything contained in this Section to the contrary, in the event that according to the determination, an Excise Tax will be imposed on any Payment or Payments, the Bank or its successor shall pay to the applicable government taxing authorities as Excise Tax withholding, the amount of the Excise Tax that the Bank has actually withheld from the Payment or Payments.

Payment of these amounts will be made in a lump sum immediately prior to the Change of Control.   In the event that it is determined under subsection e) that additional Excise Tax is due and owing, any reimbursement of taxes required to be made by the entity acquiring control of the Bank or Holding Company shall be made no later than the end of the calendar year next following the calendar year in which the Participant remits the related taxes.

	
21.

	
Section 409A.  This Plan is intended to be consistent with the provisions of Section 409A of the Code and its provisions shall be interpreted consistent with such intent.

	
(a)

	
Distribution Elections.  If otherwise payable under the Plan, a Participant’s Retirement Account balance shall be distributed as elected by Participant on the attached Payment Election for a Retirement under subsection a) of Section 10 (if Termination of Employment is at or after Normal Retirement Age) or as elected on the attached Payment Election for a Termination without Cause under subsection e) of Section 10 (if Termination of Employment is before Normal Retirement Age), provided that such election has been made prior to the calendar year in which the Participant performs the services for which the contributions to the Participant’s Retirement Account are made (or otherwise in accordance with the requirements of Section 409A), and in accordance with such procedures as shall be established by the Bank.  If no such election has been made for either of such payment events, the Participant shall be deemed to have elected to receive payment upon such payment event in a lump sum on the later of (A) the 15th day of the month following the six-month anniversary of the date of Termination of Employment or (B) January 15th of the year following the date of Termination of Employment.  The Bank has the discretion to establish sub-accounts for one or more Participants and to maintain separate payment elections in respect of each such sub-account provided that such elections comply with the payment election requirements of Section 409A.  The Bank also has the discretion to permit changes in payment elections provided such changes are made in accordance with the requirements of Section 409A and such procedures as shall be established by the Bank.

	
(b)

	
Distributions To A Specified Employee.  Notwithstanding any provision to the contrary in the Plan, a distribution to which a Participant would otherwise be entitled upon a Termination of Employment will be delayed until one day following the expiration of the six (6)-month period from the date of the Participant’s Termination of Employment if the Bank in good faith determines that the Participant is a “specified employee,” as defined in Section 409A and regulations issued thereunder, at the time of such Termination of Employment, and that the delayed commencement is required in order to avoid a prohibited distribution under Code Section 409A(a)(2).  In the event that a delay of any payment is required under this provision, such payment shall be accumulated and paid in a single lump sum on the delayed payment date, and any remaining payments due under the Plan shall be paid in accordance with the normal payment dates specified for them herein.

  

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22.

	
Headings.  Headings and subheadings in this Plan are inserted for convenience or reference only and are not to be considered in the construction of the provisions hereof.

	
23.

	
Intent. To the extent that this Plan may be construed to be a plan maintained to provide deferred compensation, it is intended to be limited to a “select group of management or highly compensated employees” within the meaning of Section 201(2) of ERISA. The Plan is intended to be exempt from the participation, vesting, funding, and fiduciary requirements of Title 1 of ERISA, to the fullest extent permitted under the law. The Plan shall at all times be “unfunded” within the meaning of ERISA.

 

	
24.

	
 
Gender and Number. Where the context permits, words in any gender shall, include any other gender; words in the singular shall include the plural, and the plural shall include the singular.

IN WITNESS WHEREOF, the Bank has caused this Plan to be duly executed this 13th day of December 2011.

FARMERS & MERCHANTS BANK OF CENTRAL CALIFORNIA

FARMERS & MERCHANTS BANCORP

 

/s/ Stewart C. Adams, Jr.

Stewart C. Adams, Jr.

Chairman of the Personnel Committee of the Board

 

 

 10EXHIBIT 10.1

SHARE TRANSFER AGREEMENT

This Share Transfer Agreement (this “Transfer Agreement”) is entered into this 13th day of December, 2011 (the “Effective Date”), by and between Rosetta Genomics Ltd., an Israeli company (NASDAQ: ROSG) (the “Seller”), and the purchasers listed in Exhibit A attached hereto (each, a “Purchaser” and collectively, the “Purchasers”) with respect to the sale by Seller of the Shares (as defined below) to Purchasers, based on and subject to the promises, representations, warranties and agreements of the parties set forth herein.

RECITALS

A.           The Seller holds 4,955,000 ordinary shares, nominal value of one hundredth New Israeli Shekel (NIS 0.01) each, in Rosetta Green Ltd., an Israeli company (TASE: RSGN) (the “Shares” and the “Company”, respectively), which constitutes as of Effective Date approximately 50.03% of the issued and outstanding share capital of the Company and the entire fully diluted holdings of Seller in the Company; and

B.           The Seller is willing to sell the Shares to the Purchasers, at an aggregate purchase price of nine hundred thousand United States Dollar (US $900,000) (the “Aggregate Purchase Price”) and the Purchasers have agreed to purchase the Shares being transferred hereunder in accordance with and subject to the terms and conditions set forth herein.

AGREEMENT

NOW THEREFORE, in consideration of the mutual promises, representations, warranties and agreements made herein, the parties hereby agree as follows:

 

1.      Sale and Purchase of the Shares.

 

(a)         Seller hereby agrees to sell to Purchasers and Purchasers hereby agree to purchase from Seller, the Shares, together with any and all rights, privileges and obligations which Seller may have with respect thereto, at a cash purchase price equal to the Aggregate Purchase Price, payable at the Closing (as defined below). The numbers of Shares and proportional amounts out of the Aggregate Purchase Price to be purchased and paid by each of the Purchasers are as set forth in Exhibit A.

 

(b)         Conditional Compensation:

 

(i)         In addition to the Aggregate Purchase Price, the Seller shall be entitled to an additional cash amount of two million United States Dollar (US $2,000,000) (“Conditional Compensation”), payable by the Purchasers, severally and not jointly, subject to the occurrence of all of the following prior conditions (“Prior Conditions”): (A) within three (3) years from the Effective Date, an acquisition of the Company is consummated in which all of the issued and outstanding shares of the Company are acquired for cash, at a price per share reflecting a Company valuation of at least ninety million United States Dollars (US $90,000,000) (“Acquisition Transaction”); and (B) in such Acquisition Transaction, each of the Purchasers has sold all of its shares in the Company in consideration for actually received cash amount reflecting at least five times (5X) of the weighted average price per share paid by each of the Purchasers for shares in the Company.

 

(ii)        In the event that the Prior Conditions are met  (determined at the discretion of the Purchasers in good faith), the Conditional Compensation shall be payable to the Seller not later than sixty (60) business days from the date in which the Purchasers actually receive all of the cash amounts to which they are entitled under the Acquisition Transaction.

  

  

  

 

(iii)       For the avoidance of doubt, in the event that for any reason whatsoever, the Prior Conditions are not met in full (determined at the discretion of the Purchasers in good faith), the entitlement to Conditional Compensation hereunder shall be null and void. Furthermore, as of the Closing, the Purchasers shall have full, complete and unconditional title and interest in and to the Shares purchased hereunder, free of any third party rights, liens or other encumbrances of any kind, and the Shares purchased hereunder by the Purchasers shall be, as of the Closing, fully paid and non-assessable.

 

2.      Closing.  The closing of the sale and purchase of the Shares shall take place at a closing (the “Closing”), which will be held at the offices of Pearl Cohen Zedek Latzer LLP, 50 Congress St., Suite 640, Boston, MA 02109 on such date, time and place as the Purchasers and the Seller shall mutually agree, subject to the fulfillment to the Purchasers’ satisfaction, or waiver, until December 15, 2011 (the “Target Date”) of the conditions detailed in Section 3(a) below, and subject to the fulfillment to the Seller's satisfaction, or waiver, until the Target Date of the conditions detailed in Section 3(b) below, provided however, that in the event the Closing does not occur by the Target Date, the Target Date may be extended by up to one additional 7-day period upon the mutual consent of the Seller and the Purchasers, and provided further, that the Target Date (including any extensions thereof) shall not be extended beyond December 15, 2011.

 

3.      Transactions at Closing. At the Closing (the “Closing Date”), the following transactions shall occur, which transactions shall be deemed to take place simultaneously and no transaction shall be deemed to have been completed or any document delivered until all such transactions have been completed and all required documents delivered:

 

(a)         The Seller shall deliver to the Purchasers the following documents:

 

(i)         Duly executed share transfer deeds with respect to the transfer of all the Shares to the Purchasers, in the forms attached hereto as Schedule 3(a)(i);

 

(ii)        True and correct copy of a resolution of the Board of Directors of the Seller, substantially in the form attached hereto as Schedule 3(a)(ii), approving this Transfer Agreement, the sale of the Shares, the release of claims and the other transactions contemplated hereby;

 

(iii)       A written notice to the Company, and to Meitav Benefits Ltd. (the trustee administering the Shares), notifying of the sale and purchase hereunder and requesting the amendment of the shareholders register of the Company and the trustee;

 

(iv)       A certificate, duly executed by the chief  executive officer of the Seller, dated as of the date of the Closing, in the form attached hereto as Schedule 3(a)(iv) confirming that the representations and warranties made by the Seller in Section 4 are true and correct when made and are true and correct on and as of the Closing Date, as though made on the Closing Date, and that the Seller has performed all obligations required under this Transfer Agreement to be performed by it on or before the Closing;

 

(v)       A signed agreement for termination of the shareholders agreement entered into between Seller and Plan B Ventures I, LLC, dated November 25, 2010 (the “Shareholders Agreement”), in the form attached hereto as Schedule 3(a)(vi);

 

(b)         Each Purchaser shall deliver to the Seller the following documents:

 

(i)         Duly executed share transfer deeds with respect to the transfer of the Shares to the Purchaser, in the forms attached hereto as Schedule 3(a)(i);

 

(ii)        A copy of an executed Undertaking towards the Israeli Chief Scientist ("OCS") in accordance with Section 5(e) below.

 

(iii)       A signed agreement for termination of the Shareholders Agreement in the form attached hereto as Schedule 3(a)(vi).

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(c)         The Aggregate Purchase Price shall be paid by Purchasers in accordance with Exhibit A, by wire transfer of immediately available funds subject to and upon the occurrence of all of the above.

 

4.      Representations and Warranties of Seller.  Seller represents and warrants to the Purchasers and agrees and undertakes as follows:

 

(a)         Seller has the power and authority to execute and deliver this Transfer Agreement, to sell the Shares hereunder and to carry out and perform its obligations under the terms of this Transfer Agreement. All actions on the part of Seller necessary for the authorization, execution, delivery and performance of this Transfer Agreement and the obligations hereunder have been taken.  This Transfer Agreement has been duly executed and delivered by Seller and constitutes a valid and binding obligation of Seller, enforceable against Seller, and Seller’s successors and assigns, in accordance with its terms.  Sale of the shares does not require the consent or approval of any third party and is not subject to any preemptive rights, rights of first refusal, tag along or any similar rights other than the restrictions and limitations under the Shareholders Agreement. Notwithstanding the above, Purchaser hereby represents and warrants to Seller, its Chief Executive Officer, Directors, Officers, General Counsel, employees and advisors that it will not pursue any legal action if this agreement is overturned in any Bankruptcy procedure into which the Seller may enter.

 

(b)         Seller is the lawful owner of the Shares to be sold hereunder and upon sale and delivery of, and payment for, the Shares, as provided herein, Seller will convey to Purchasers good and marketable title to the Shares, free and clear of any and all liens, encumbrances, equities, claims, restrictions, options, proxies or other agreements of any kind whatsoever.

 

(c)         Neither the sale of the Shares being sold by Seller nor the consummation of any other of the transactions herein contemplated by Seller or the fulfillment of the terms hereof by Seller will conflict with, result in a breach or violation of, or constitute a default under any law or the terms of any indenture or other agreement or instrument to with Seller is a party or bound, or any judgment, order or decree applicable to Seller of any court, regulatory body, administrative agency, governmental body or arbitrator having jurisdiction over Seller.

 

(d)         No consent, approval, authorization or order of any court or governmental agency or body is required for the consummation by Seller of the transactions contemplated herein. For the avoidance of doubt, Seller hereby warrants and represents that the sale of the Shares hereunder is a valid and binding transaction.

 

(e)         No action, proceeding or governmental inquiry or investigation is pending against the Seller, or against any of the Seller's properties, before any court, arbitration board or tribunal or administrative or other governmental agency. The foregoing includes, without limiting its generality, actions pending or threatened against the Seller involving bankruptcy and/or insolvency.

 

(f)         Seller has had the opportunity to consult with an independent tax, financial and/or legal advisor with respect to the sale of the Shares prior to executing this Transfer Agreement, and Seller represents that the per share price and the Aggregate Purchase Price for the Shares being transferred hereunder have been mutually agreed to by Seller and Purchaser.

 

(g)         Seller has not, nor will it, incur, directly or indirectly, as a result of any action taken by Seller, any liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with this Transfer Agreement.

 

(h)         Seller has made its own investigation of any restrictions imposed upon, or rights applicable to, the Shares, or upon or for the benefit of Seller as the holder thereof, by law or by any written agreement applicable to the Shares, all, as held by Seller immediately prior to the Closing Date.  Further, Seller has executed and delivered all instruments and documents and otherwise complied with all obligations required, as of the Effective Date, to be complied with by Seller under applicable law and written agreements applicable to the Shares and to this transfer and sale of the Shares to Purchaser.

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(i)         Seller represents that it has no lawsuits, claims, or actions pending in its name, or on behalf of any other person or entity, against the Purchasers and/or Company and/or against any person or entity acting on their behalf or otherwise referred to herein. Seller also represents that it does not intend to bring any claims on its own behalf or on behalf of any other person or entity against the Purchasers and/or Company and/or against any person or entity acting on their behalf or otherwise referred to herein.

 

5.      Representations and Warranties of Purchasers.  Each of the Purchasers represents and warrants to Seller and agrees as follows:

 

(a)         Purchaser has the power and authority to execute and deliver this Transfer Agreement, to purchase the Shares hereunder and to carry out and perform its obligations under the terms of this Transfer Agreement.  All actions on the part of Purchaser necessary for the authorization, execution, delivery and performance of this Transfer Agreement and the obligations hereunder and thereunder have been taken. The Transfer Agreement has been duly executed and delivered by each Purchaser and constitutes a valid and binding obligation of the Purchaser, enforceable against Purchaser, and Purchaser’s successors and assigns, in accordance with their terms .

 

(b)         Neither the purchase of the Shares by Purchaser nor the consummation of any other of the transactions herein contemplated by Purchaser or the fulfillment of the terms hereof by Purchaser will conflict with, result in a breach or violation of, or constitute a default under any law or the terms of any indenture or other agreement or instrument to with Purchaser is a party or bound, or any judgment, order or decree applicable to Purchaser of any court, regulatory body, administrative agency, governmental body or arbitrator having jurisdiction over Purchaser.

 

(c)         No consent, approval, authorization or order of or any filling with any court or governmental agency or body is required for the consummation by Purchaser or by all of the Purchasers of the transactions contemplated herein, including, without limitation, pursuant to Israeli Restrictive Trade Practices Law 5748-1988.

 

(d)         It is aware that the Shares are subject to the lock-up rules of the TASE listing rules applicable to shares held by an Interested Party (as such term is defined in the Israeli Companies Law) at an initial public offering of a company and agrees to comply with such restrictions and to take all necessary actions required under the TASE Lock Up.

 

(e)         In the event that, immediately after the Closing, a Purchaser holds 5% or more of the Company's issued share capital or of the voting rights in the Company, then, such Purchaser shall deliver to the Company an executed copy of an Undertaking towards the OCS substantially in the form required by the OCS.

 

6.      Mutual Release of Claims; Indemnification.

 

(a)         Release of Claims by Seller.  Seller agrees that, in consideration of Purchasers entering into this Transfer Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and accepted, Seller, on behalf of itself, and its heirs, executors, officers, directors, employees, investors, shareholders, administrators, affiliates, divisions, subsidiaries, predecessor and successor corporations, and assigns, hereby fully and forever releases each of the Purchasers, the Company and their respective heirs, family members, executors, officers, directors, employees, investors, shareholders, administrators, affiliates, consultants, divisions, subsidiaries, predecessor and successor corporations, and assigns from, and agrees not to sue or otherwise institute or cause to be instituted any legal or administrative proceedings concerning any claim, duty, obligation or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Seller or any other person or entity on its behalf may possess, arising from any omissions, acts or facts that have occurred up until and including the effective date of this Transfer Agreement including, without limitation,

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(i)         Any and all claims relating to, or arising from, the per share or Aggregate Purchase Price for the Shares hereunder, which has been mutually agreed to by the Seller and the Purchasers, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable corporate law, and securities fraud under any applicable law;

 

(ii)        Any and all claims relating to, or arising from, the Conditional Compensation and any and all aspects related thereto, which has been mutually agreed to by the Seller and the Purchasers;

 

(iii)       Any and all claims for breach of contract, both express and implied (except for breaches of this Transfer Agreement by any Purchaser); breach of a covenant of good faith and fair dealing, both express and implied; promissory estoppels; negligent or intentional infliction of emotional distress; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; breach of fiduciary duty; defamation; libel; slander and negligence;

 

(iv)       Any and all claims for any loss, cost, damage, or expense arising as a result of, or out of any dispute over, any loss of opportunities, alternatives transactions, economic effects such as market cap and/or stock price, tax effects and/or any other impact of the transactions contemplated hereunder to or on Seller or on any of its officers, employees, shareholders, investors, affiliates, divisions, administrators, trustees or receivers, as a result of this Transfer Agreement; and

 

(v)       Any and all claims for attorneys’ fees and related costs.

Seller agrees and undertakes that the release set forth in this section shall be and remain in effect in all respects as a complete general release as to the matters released and survive termination or cancellation of this Transfer Agreement for any reason.

 

(b)         Release of Claims by Purchasers.  Each Purchaser agrees that, in consideration of Seller entering into this Transfer Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and accepted, such Purchaser, on behalf of itself, and its heirs, executors, officers, directors, employees, investors, shareholders, administrators, affiliates, divisions, subsidiaries, predecessor and successor corporations, and assigns, hereby fully and forever releases the Seller, the Company and their respective heirs, family members, executors, officers, directors, employees, investors, shareholders, administrators, affiliates, consultants, divisions, subsidiaries, predecessor and successor corporations, and assigns from, and agrees not to sue or otherwise institute or cause to be instituted any legal or administrative proceedings concerning any claim, duty, obligation or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that such Purchaser or any other person or entity on its behalf may possess, arising from any omissions, acts or facts that have occurred up until and including the effective date of this Transfer Agreement including, without limitation,

 

(i)         Any and all claims relating to, or arising from, the per share or Aggregate Purchase Price for the Shares hereunder, which has been mutually agreed to by the Seller and the Purchasers, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable corporate law, and securities fraud under any applicable law;

 

(ii)        Any and all claims relating to, or arising from, the Conditional Compensation and any and all aspects related thereto, which has been mutually agreed to by the Seller and the Purchasers;

 

(iii)       Any and all claims for breach of contract, both express and implied (except for breaches of this Transfer Agreement by Seller); breach of a covenant of good faith and fair dealing, both express and implied; promissory estoppels; negligent or intentional infliction of emotional distress; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; breach of fiduciary duty; defamation; libel; slander and negligence;

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(iv)      Any and all claims for any loss, cost, damage, or expense arising as a result of, or out of any dispute over, any loss of opportunities, alternatives transactions, economic effects such as market cap and/or stock price, tax effects and/or any other impact of the transactions contemplated hereunder to or on the Purchaser or on any of its officers, employees, shareholders, investors, affiliates, divisions, administrators, trustees or receivers, as a result of this Transfer Agreement; and

 

(v)       Any and all claims for attorneys’ fees and related costs.

 

Each Purchaser agrees and undertakes that the release set forth in this section shall be and remain in effect in all respects as a complete general release as to the matters released and survive termination or cancellation of this Transfer Agreement for any reason.

 

(c)         Indemnification by Seller. Seller and any of its successors shall be liable for, and indemnify and hold the Company and the Purchasers and any of their officers, shareholders, employees and consultants, harmless against, and hold them harmless from damages, liabilities and expenses (including reasonable attorneys fees) sustained or incurred by Purchasers or any of them, resulting from, or arising out of, or in connection with, (x) a breach of Seller representations, warranties or covenants made in this Transfer Agreement or the enforcement of the provisions hereof, and (y) any and all actions, suits, proceedings, judgments, costs and legal or other expenses incident to any of the foregoing and/or resulting from or related to the transactions contemplated under this Transfer Agreement, whether filed by Seller, its officers, shareholders, successors or by any third party.

 

(d)         Indemnification by Purchasers. Each Purchaser and any of its successors shall be liable for, and indemnify and hold the Company and the Seller and any of their officers, shareholders, employees and consultants, harmless against, and hold them harmless from damages, liabilities and expenses (including reasonable attorneys fees) sustained or incurred by Seller, resulting from, or arising out of, or in connection with (x) a breach of such Purchaser representations, warranties or covenants made in this Transfer Agreement or the enforcement of the provisions hereof, and (y) any and all actions, suits, proceedings, judgments, costs and legal or other expenses incident to any of the foregoing and/or resulting from or related to the transactions contemplated under this Transfer Agreement, if filed by the Purchaser.

 

7.      General Provisions.

 

(a)         The parties agree to execute and/or provide any further documents or instruments reasonably necessary or desirable to carry out the purposes or intent of this Transfer Agreement, or as may be requested by the Seller, Purchasers, Company or its transfer agent or by any other entity, in connection with the transfer of the Shares hereunder. Without derogating from the generality of the above, each Purchaser shall provide the Company and the Seller with all information necessary for the purpose of publishing immediate reports and any other filings required pursuant to the Israeli Securities Law-1968 and the regulations promulgated thereunder.

 

(b)         The parties understand, acknowledge, and agree that this Transfer Agreement is binding upon and shall inure to the benefit of the parties and their respective successors, administrators, executors, representatives and heirs.

 

(c)         The parties understand, acknowledge, and agree that this Transfer Agreement constitutes the entire agreement between the parties and that it may not be altered, amended, modified, or otherwise changed in any respect whatsoever except by writing duly executed by the parties hereto.

 

(d)         The parties shall each bear their own costs, expert fees, attorneys’ fees and other fees incurred in connection with this Transfer Agreement.

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(e)         This Transfer Agreement shall be governed by and construed according to the laws of the State of Israel, without regard to the conflict of laws provisions thereof.  Any dispute arising under or in relation  to this Agreement shall be resolved in the competent court for Tel Aviv-Jaffa district, and each of the parties hereby submits irrevocably and exclusively to the jurisdiction of such court. In case any one or more of the covenants, warranties and/or agreements set forth in this Transfer Agreement shall have been breached by any party hereto, the other parties may proceed to protect and enforce their rights at law or in equity, including by an action for specific performance, injunctive relief and other forms of equitable relief (without posting any bond and without proving that damages would be inadequate) of any such covenant or agreement contained in this Transfer Agreement. All remedies hereunder shall be cumulative and the election of any one remedy shall not preclude any other remedy.

 

(f)         No waiver with respect to any breach or default in the performance of any obligation under the terms of this Transfer Agreement shall be deemed to be a waiver with respect to any subsequent breach or default, whether of similar or different nature.  Nothing in this Transfer Agreement shall be deemed to be a waiver of any remedy available to any party under applicable law. No delay or omission to exercise any right, power, or remedy accruing to any party upon any breach or default under this Transfer Agreement, shall be deemed a waiver of any other breach or default theretofore or thereafter occurring.

 

(g)         The representations, warranties, covenants and agreements made in this Transfer Agreement shall survive the closing of the transactions contemplated hereby.

 

(h)         This Transfer Agreement may be executed in any number of counterparts, each of which shall be deemed an original and enforceable against the parties actually executing such counterpart, and all of which together shall constitute one and the same instrument. Facsimile or telecopied counterparts of this Transfer Agreement shall have the same effect as originally signed counterparts.

 

(i)         This Transfer Agreement is executed voluntarily and without any duress or undue influence on the part or behalf of the parties hereto.  The parties acknowledge that they (a) have read this Transfer Agreement, (b) have been represented in the preparation, negotiation, and execution of this Transfer Agreement by legal counsel of their own choice or that they have voluntarily declined to seek such counsel, (c) understand the terms and consequences of this Transfer Agreement and of the releases it contains and (d) are fully aware of the legal and binding effect of this Transfer Agreement.

 

(j)         If any provision of this Transfer Agreement is held by a court of competent jurisdiction to be unenforceable under applicable law, then such provision shall be excluded from this Transfer Agreement and the remainder of this Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms; provided, however, that in such event this Agreement shall be interpreted so as to give effect, to the greatest extent consistent with and permitted by applicable law, to the meaning and intention of the excluded provision as determined by such court of competent jurisdiction.

 

(k)         Any notice sent with respect to this Transfer Agreement shall be sent to the addresses set forth below and shall be effective (a) if mailed, three (3) business days after mailing, (b) if sent by messenger, upon delivery, and (c) if sent via facsimile, upon transmission and electronic confirmation of receipt or (if transmitted and received on a non-business day) on the first business day following transmission and electronic confirmation of receipt (provided, however, that any notice of change of address shall only be valid upon receipt):

 

	

If to Seller:

	
Rosetta Genomics Ltd.

	  	
10 Plaut Street, Rehovot

	  	
Israel, 76706

	  	
Fax: +972 (073) 2220701

	  	
Attn:

	  	
Ken Berlin, CEO

	  	
Oded Biran, Adv., General Counsel

 

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With a copy (which shall not constitute notice) to:

	  	
Tulchinsky Stern Marciano Cohen Levitski & Co.

	  	
4 Berkowitz Street

	  	
Museum Tower, 12th Floor

Tel Aviv

Israel, 64238

Fax: +972 (3) 6075050

Attn: David Cohen, Adv.

	  	  
	
If to Purchasers:

	

To the addresses set forth in Exhibit A

 

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IN WITNESS WHEREOF, the parties hereto have executed and delivered this Transfer Agreement as of the date first above written.

 

	  	  	
/s/ Kenneth A. Berlin

	  	  	
ROSETTA GENOMICS LTD.

	  	  	  
	  	  	
By:

	
Kenneth A. Berlin

	  	  	
Title:

	
President and CEO

	  	  	
Address:

	  
	 	 	 
	  	  	  

	
/s/ Alexander Rabinovitch

	  	
/s/ Barbara W. Goldman

	
ALEXANDER RABINOVITCH

	  	
PLAN B VENTURES I, LLC

	  	  	  
	
By:

	  	  	
By:

	
Barbara W. Goldman

	
Title:

	  	  	
Title:

	
Partner

	
Address:

	  	  	
Address:

	  
	  	  	  

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Exhibit A

 

	
Number of

Shares

	 	
Respective

Purchase Price

	 	
Address

	 	
Purchaser

	
2,477,500

	 	US$	450,000	 	
436 Atlantic Avenue

Marblehead, MA  01945

Fax: 781 823 0098

Attn: Barbara W. Goldman

 

With a copy to:

 

Pearl Cohen Zedek Latzer LLP

50 Congress Street

Suite 640

Boston, MA 02109

Fax: 617 228 5721

Attn: Oded Kadosh

	 	
Plan B Ventures I, LLC

	 	 	 	 	 	 	 	 
	
2,477,500

	 	US$	450,000	 	  	 	
Alexander Rabinovitch

 

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