Document:

Exhibit 10.2

 

 

MARINA BIOTECH, INC.

 

2014 LONG-TERM INCENTIVE PLAN

 

* * * * * 

 

1. Purpose.   The
purpose of the Marina Biotech, Inc. 2014 Long-Term Incentive Plan (the “Plan”) is to further and promote the interests
of Marina Biotech, Inc. (the “Company”), its Subsidiaries and its stockholders by enabling the Company and its Subsidiaries
to attract, retain and motivate employees, directors and consultants, or those who will become employees directors or consultants,
and to align the interests of those individuals and the Company’s stockholders. To do this, the Plan offers performance-based
incentive awards and equity-based opportunities providing such employees, directors and consultants with a proprietary interest
in maximizing the growth, profitability and overall success of the Company and its Subsidiaries.

 

2. Definitions.   For purposes of
the Plan, the following terms shall have the meanings set forth below:

 

 2.1 “Award”
means an award or grant made to a Participant under Sections 6, 7, 8 and/or 9 of the Plan.

 

 2.2 “Award
Agreement” means the agreement executed by a Participant pursuant to Sections 3.2 and 15.7 of the Plan in connection
with the granting of an Award.

 

 2.3 “Board” means the
Board of Directors of the Company, as constituted from time to time.

 

 2.4 “Code”
means the Internal Revenue Code of 1986, as in effect and as amended from time to time, or any successor statute thereto, together
with any rules, regulations and interpretations promulgated thereunder or with respect thereto.

 

 2.5 “Committee”
means the committee of the Board established to administer the Plan, as described in Section 3 of the Plan, or if no such committee
has been appointed or established, the Board.

 

 2.6 “Common
Stock” means the Common Stock, par value $0.006 per share, of the Company, or any security of the Company issued by the
Company in substitution or exchange therefor.

 

 2.7 “Company”
means Marina Biotech, Inc., a Delaware corporation, or any successor entity to Marina Biotech, Inc.

 

 2.8 “Exchange
Act” means the Securities Exchange Act of 1934, as in effect and as amended from time to time, or any successor statute
thereto, together with any rules, regulations and interpretations promulgated thereunder or with respect thereto.

 

 2.9 “Fair
Market Value” means on, or with respect to, any given date(s), the average of the highest and lowest market prices of
the Common Stock, as reported on a public exchange for such date(s) or, if the Common Stock was not traded on such date(s), on
the next preceding day or days on which the Common Stock was traded. If at any time the Common Stock is not traded on an exchange,
the Fair Market Value of a share of the Common Stock shall be determined in good faith by the Board.

 

 2.10 “Incentive
Stock Option” means any stock option granted pursuant to the provisions of Section 6 of the Plan (and the relevant
Award Agreement) that is intended to be (and is specifically designated as) an “incentive stock option” within the
meaning of Section 422 of the Code.

 

 2.11 “Non-Qualified
Stock Option” means any stock option granted pursuant to the provisions of Section 6 of the Plan (and the relevant Award
Agreement) that is not (and is specifically designated as not being) an Incentive Stock Option.

 

 2.12 “Participant”
means any individual who is selected from time to time under Section 5 to receive an Award under the Plan.

 

 2.13 “Performance
Units” means the monetary units granted under Section 9 of the Plan and the relevant Award Agreement.

 

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 2.14 “Plan”
means the Marina Biotech, Inc. 2014 Long-Term Incentive Plan, as set forth herein and as in effect and as amended from time to
time (together with any rules and regulations promulgated by the Committee with respect thereto).

 

 2.15 “Restricted
Shares” means the restricted shares of Common Stock granted pursuant to the provisions of Section 8 of the Plan and the
relevant Award Agreement.

 

 2.16 “Stock
Appreciation Right” means an Award described in Section 7.2 of the Plan and granted pursuant to the provisions of Section
7 of the Plan.

 

 2.17 “Subsidiary(ies)”
means any corporation (other than the Company), trust, partnership or limited liability company in an unbroken chain of entities,
including and beginning with the Company, if each of such entities, other than the last entity in the unbroken chain, owns, directly
or indirectly, more than fifty percent (50%) of the voting shares, partnership, beneficial or membership interests in one of the
other entities in such chain.

 

3. Administration.

 

 3.1 The Committee.   The
Plan shall be administered by the Committee. Subject to the last sentence of this Section 3.1, the Committee shall be appointed
from time to time by the Board and shall be comprised of not less than two (2) of the then members of the Board who are Non-Employee
Directors (within the meaning of SEC Rule 16b-3(b)(3)) of the Company and Outside Directors (within the meaning of Section 162(m)
of the Code). Consistent with the Bylaws of the Company, members of the Committee shall serve at the pleasure of the Board and
the Board, subject to the immediately preceding sentence, may at any time and from time to time remove members from, or add members
to, the Committee. In the event that the Board has not appointed the Committee, then the Board shall have all the powers of the
Committee under the Plan.

 

 3.2 Plan Administration
and Plan Rules.   The Committee is authorized to construe and interpret the Plan and to promulgate, amend
and rescind rules and regulations relating to the implementation, administration and maintenance of the Plan. Subject to the terms
and conditions of the Plan, the Committee shall make all determinations necessary or advisable for the implementation, administration
and maintenance of the Plan including, without limitation, (a) selecting the Plan’s Participants, (b) making Awards in such
amounts and form as the Committee shall determine, (c) imposing such restrictions, terms and conditions upon such Awards as the
Committee shall deem appropriate, and (d) correcting any technical defect(s) or technical omission(s), or reconciling any technical
inconsistency(ies), in the Plan and/or any Award Agreement. The Committee may designate persons other than members of the Committee
to carry out the day-to-day ministerial administration of the Plan under such conditions and limitations as it may prescribe,
except that the Committee shall not delegate its authority with regard to the selection for participation in the Plan and/or the
granting of any Awards to Participants. The Committee’s determinations under the Plan need not be uniform and may be made
selectively among Participants, whether or not such Participants are similarly situated. Any determination, decision or action
of the Committee in connection with the construction, interpretation, administration, implementation or maintenance of the Plan
shall be final, conclusive and binding upon all Participants and any person(s) claiming under or through any Participants. The
Company shall effect the granting of Awards under the Plan, in accordance with the determinations made by the Committee, by execution
of written agreements and/or other instruments in such form as is approved by the Committee. The Committee may, in its sole discretion,
delegate its authority to one or more senior executive officers for the purpose of making Awards to Participants who are not subject
to Section 16 of the Exchange Act.

 

 3.3 Liability
Limitation.   Neither the Board nor the Committee, nor any member of either, shall be liable for any act,
omission, interpretation, construction or determination made in good faith in connection with the Plan (or any Award Agreement),
and the members of the Board and the Committee shall be entitled to indemnification and reimbursement by the Company in respect
of any claim, loss, damage or expense (including, without limitation, attorneys’ fees) arising or resulting therefrom to
the fullest extent permitted by law and/or under any directors and officers liability insurance coverage which may be in effect
from time to time.

 

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4. Term of Plan/Common
Stock Subject to Plan.

 

 4.1 Term.   Unless
terminated earlier by the Board, the Plan shall terminate on August 6, 2024, except with respect to Awards then outstanding.
After such date no further Awards shall be granted under the Plan.

 

 4.2 Common
Stock.   The maximum number of shares of Common Stock in respect of which Awards may be granted or paid
out under the Plan, subject to adjustment as provided in Section 13.2 of the Plan, shall not exceed 5,000,000 shares. In the event
of a change in the Common Stock of the Company that is limited to a change in the designation thereof to “Capital Stock”
or other similar designation, or to a change in the par value thereof, or from par value to no par value, without increase or
decrease in the number of issued shares, the shares resulting from any such change shall be deemed to be the Common Stock for
purposes of the Plan. Common Stock which may be issued under the Plan may be either authorized and unissued shares or issued shares
which have been reacquired by the Company (in the open-market or in private transactions) and which are being held as treasury
shares. No fractional shares of Common Stock shall be issued under the Plan.

 

 4.3 Computation
of Available Shares.   For the purpose of computing the total number of shares of Common Stock available
for Awards under the Plan, there shall be counted against the limitations set forth in Section 4.2 of the Plan the maximum number
of shares of Common Stock potentially subject to issuance upon exercise or settlement of Awards granted under Sections 6 and 7
of the Plan, the number of shares of Common Stock issued under grants of Restricted Shares pursuant to Section 8 of the Plan and
the maximum number of shares of Common Stock potentially issuable under grants or payments of Performance Units pursuant to Section
9 of the Plan, in each case determined as of the date on which such Awards are granted. If any Awards expire unexercised or are
forfeited, surrendered, cancelled, terminated or settled in cash in lieu of Common Stock, the shares of Common Stock which were
theretofore subject (or potentially subject) to such Awards shall again be available for Awards under the Plan to the extent of
such expiration, forfeiture, surrender, cancellation, termination or settlement of such Awards.

 

5. Eligibility.   Individuals
eligible for Awards under the Plan shall consist of employees, directors and consultants, or those who will become employees,
directors or consultants, of the Company and/or its Subsidiaries whose performance or contribution, in the sole discretion of
the Committee, benefits or will benefit the Company or any Subsidiary.

 

6. Stock Options.

 

 6.1 Terms and
Conditions.   Stock options granted under the Plan shall be in respect of Common Stock and may be in the
form of Incentive Stock Options or Non-Qualified Stock Options (sometimes referred to collectively herein as the “Stock
Option(s)”). Such Stock Options shall be subject to the terms and conditions set forth in this Section 6 and any additional
terms and conditions, not inconsistent with the express terms and provisions of the Plan, as the Committee shall set forth in
the relevant Award Agreement.

 

 6.2 Grant.   Stock
Options may be granted under the Plan in such form as the Committee may from time to time approve. Stock Options may be granted
alone or in addition to other Awards under the Plan or in tandem with Stock Appreciation Rights. Special provisions shall apply
to Incentive Stock Options granted to any employee who owns (within the meaning of Section 422(b)(6) of the Code) more than ten
percent (10%) of the total combined voting power of all classes of stock of the Company or its parent corporation or any subsidiary
of the Company, within the meaning of Sections 424(e) and (f) of the Code (a “10% Shareholder”).

 

 6.3 Exercise
Price.   The exercise price per share of Common Stock subject to a Stock Option shall be determined by
the Committee; provided, however, that the exercise price of a Stock Option shall not be less than one hundred percent
(100%) of the Fair Market Value of the Common Stock on the date of the grant of such Stock Option; provided, further,
however, that, in the case of a 10% Shareholder, the exercise price of an Incentive Stock Option shall not be less than
one hundred ten percent (110%) of the Fair Market Value of the Common Stock on the date of grant.

 

 6.4 Term.   The
term of each Stock Option shall be such period of time as is fixed by the Committee; provided, however, that the
term of any Incentive Stock Option shall not exceed ten (10) years (five (5) years, in the case of a 10% Shareholder)
after the date immediately preceding the date on which the Incentive Stock Option is granted.

 

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 6.5 
Method of Exercise.   A Stock Option may be exercised, in whole or in part, by giving written notice
of exercise to the Secretary of the Company, or the Secretary’s designee, specifying the number of shares to be
purchased. Such notice shall be accompanied by payment in full of the exercise price (and applicable tax withholding) in
cash, by certified check, bank draft, or money order payable to the order of the Company, or, if permitted by the Committee
in its sole discretion, by delivery of shares of Common Stock satisfying such requirements as the Committee shall establish,
or through such other mechanism as the Committee shall permit, in its sole discretion. Payment instruments shall be received
by the Company subject to collection. The proceeds received by the Company upon exercise of any Stock Option may be used by
the Company for general corporate purposes. Any portion of a Stock Option that is exercised may not be exercised again.

 

 6.6 Tandem
Grants.   If Non-Qualified Stock Options and Stock Appreciation Rights are granted in tandem, as designated
in the relevant Award Agreements, the right of a Participant to exercise any such tandem Stock Option shall terminate to the extent
that the shares of Common Stock subject to such Stock Option are used to calculate amounts or shares receivable upon the exercise
of the related tandem Stock Appreciation Right.

 

7. Stock Appreciation Rights.

 

 7.1 Terms and
Conditions.   The grant of Stock Appreciation Rights under the Plan shall be subject to the terms and conditions
set forth in this Section 7 and any additional terms and conditions, not inconsistent with the express terms and provisions of
the Plan, as the Committee shall set forth in the relevant Award Agreement.

 

 7.2 Stock Appreciation
Rights.   A Stock Appreciation Right is an Award granted with respect to a specified number of shares of
Common Stock entitling a Participant to receive an amount equal to the excess of the Fair Market Value of a share of Common Stock
on the date of exercise over the Fair Market Value of a share of Common Stock on the date of grant of the Stock Appreciation Right,
multiplied by the number of shares of Common Stock with respect to which the Stock Appreciation Right shall have been exercised.

 

 7.3 Grant.   A
Stock Appreciation Right may be granted in addition to any other Award under the Plan or in tandem with or independent of a Non-Qualified
Stock Option.

 

 7.4 Date of
Exercisability.   In respect of any Stock Appreciation Right granted under the Plan, unless otherwise (a)
determined by the Committee (in its sole discretion) at any time and from time to time in respect of any such Stock Appreciation
Right, or (b) provided in the Award Agreement, a Stock Appreciation Right may be exercised by a Participant, in accordance with
and subject to all of the procedures established by the Committee, in whole or in part at any time and from time to time during
its specified term. The Committee may also provide, as set forth in the relevant Award Agreement and without limitation, that
some Stock Appreciation Rights shall be automatically exercised and settled on one or more fixed dates specified therein by the
Committee.

 

 7.5 Form of
Payment.   Upon exercise of a Stock Appreciation Right, payment may be made in cash, in Restricted Shares
or in shares of unrestricted Common Stock, or in any combination thereof, as the Committee, in its sole discretion, shall determine
and provide in the relevant Award Agreement.

 

 7.6 Tandem
Grant.   The right of a Participant to exercise a tandem Stock Appreciation Right shall terminate to the
extent such Participant exercises the Non-Qualified Stock Option to which such Stock Appreciation Right is related.

 

8. Restricted Shares.

 

 8.1 Terms and
Conditions.   Grants of Restricted Shares shall be subject to the terms and conditions set forth in this
Section 8 and any additional terms and conditions, not inconsistent with the express terms and provisions of the Plan, as the
Committee shall set forth in the relevant Award Agreement. Restricted Shares may be granted alone or in addition to any other
Awards under the Plan. Subject to the terms of the Plan, the Committee shall determine the number of Restricted Shares to be granted
to a Participant and the Committee may provide or impose different terms and conditions on any particular Restricted Share grant
made to any Participant. With respect to each Participant receiving an Award of Restricted Shares, there shall be issued a stock
certificate (or certificates) in respect of such Restricted Shares. Such stock

 

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certificate(s) shall be registered in the name
of such Participant, shall be accompanied by a stock power duly executed by such Participant, and shall bear, among other required
legends, the following legend:

 

“The transferability of this certificate
and the shares of stock represented hereby are subject to the terms and conditions (including, without limitation, forfeiture events)
contained in the Marina Biotech, Inc. 2014 Long-Term Incentive Plan and an Award Agreement entered into between the registered
owner hereof and Marina Biotech, Inc. Copies of such Plan and Award Agreement are on file in the office of the Secretary of Marina
Biotech, Inc. Marina Biotech, Inc. will furnish to the recordholder of the certificate, without charge and upon written request
at its principal place of business, a copy of such Plan and Award Agreement. Marina Biotech, Inc. reserves the right to refuse
to record the transfer of this certificate until all such restrictions are satisfied, all such terms are complied with and all
such conditions are satisfied.”

 

Such stock certificate evidencing such shares
shall, in the sole discretion of the Committee, be deposited with and held in custody by the Company until the restrictions thereon
shall have lapsed and all of the terms and conditions applicable to such grant shall have been satisfied.

 

 8.2 Restricted
Share Grants.   A grant of Restricted Shares is an Award of shares of Common Stock granted to a Participant,
subject to such restrictions, terms and conditions as the Committee deems appropriate, including, without limitation, (a) restrictions
on the sale, assignment, transfer, hypothecation or other disposition of such shares, (b) the requirement that the Participant
deposit such shares with the Company while such shares are subject to such restrictions, and (c) the requirement that such shares
be forfeited upon termination of employment for specified reasons within a specified period of time or for other reasons (including,
without limitation, the failure to achieve designated performance goals).

 

 8.3 Restriction
Period.   In accordance with Sections 8.1 and 8.2 of the Plan and unless otherwise determined by the Committee
(in its sole discretion) at any time and from time to time, Restricted Shares shall only become unrestricted and vested in the
Participant in accordance with such vesting schedule relating to such Restricted Shares, if any, as the Committee may establish
in the relevant Award Agreement (the “Restriction Period”). During the Restriction Period, such stock shall
be and remain unvested and a Participant may not sell, assign, transfer, pledge, encumber or otherwise dispose of or hypothecate
such Award. Upon satisfaction of the vesting schedule and any other applicable restrictions, terms and conditions, the Participant
shall be entitled to receive payment of the Restricted Shares or a portion thereof, as the case may be, as provided in Section
8.4 of the Plan.

 

 8.4 Payment
of Restricted Share Grants.   After the satisfaction and/or lapse of the restrictions, terms and conditions
established by the Committee in respect of a grant of Restricted Shares, a new certificate, without the legend set forth in Section
8.1 of the Plan, for the number of shares of Common Stock which are no longer subject to such restrictions, terms and conditions
shall, as soon as practicable thereafter, be delivered to the Participant, provided that the removal of such legend is permitted
by applicable federal and state securities laws.

  

 8.5 Shareholder
Rights.   A Participant shall have, with respect to the shares of Common Stock underlying a grant of Restricted
Shares, all of the rights of a shareholder of such stock (except as such rights are limited or restricted under the Plan or in
the relevant Award Agreement). Any stock dividends paid in respect of unvested Restricted Shares shall be treated as additional
Restricted Shares and shall be subject to the same restrictions and other terms and conditions that apply to the unvested Restricted
Shares in respect of which such stock dividends are issued.

 

9. Performance Units.

 

 9.1 Terms and
Conditions.   Performance Units shall be subject to the terms and conditions set forth in this Section
9 and any additional terms and conditions, not inconsistent with the express provisions of the Plan, as the Committee shall set
forth in the relevant Award Agreement.

 

 9.2 Performance
Unit Grants.   A Performance Unit is an Award of units (with each unit representing such monetary amount
as is designated by the Committee in the Award Agreement) granted to a Participant, subject to such terms and conditions as the
Committee deems appropriate, including, without limitation, the requirement that the Participant forfeit such units (or a portion
thereof) in the event certain performance criteria or other conditions are not met within a designated period of time.

 

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 9.3 Grants.   Performance
Units may be granted alone or in addition to any other Awards under the Plan. Subject to the terms of the Plan, the Committee
shall determine the number of Performance Units to be granted to a Participant and the Committee may impose different terms and
conditions on any particular Performance Units granted to any Participant.

 

 9.4 Performance
Goals and Performance Periods.   Participants receiving a grant of Performance Units shall only earn into
and be entitled to payment in respect of such Awards if the Company and/or the Participant achieves certain performance goals
(the “Performance Goals”) during and in respect of a designated performance period (the “Performance
Period”). The Performance Goals and the Performance Period shall be established by the Committee, in its sole discretion.
The Committee shall establish Performance Goals for each Performance Period prior to, or as soon as practicable after, the commencement
of such Performance Period. The Committee shall also establish a schedule or schedules for Performance Units setting forth the
portion of the Award which will be earned or forfeited based on the degree of achievement, or lack thereof, of the Performance
Goals at the end of the relevant Performance Period. In setting Performance Goals, the Committee may use, but shall not be limited
to, such measures as total shareholder return, return on equity, net earnings growth, sales or revenue growth, cash flow, comparisons
to peer companies, individual or aggregate Participant performance or such other measure or measures of performance as the Committee,
in its sole discretion, may deem appropriate. Such performance measures shall be defined as to their respective components and
meaning by the Committee (in its sole discretion). During any Performance Period, the Committee shall have the authority to adjust
the Performance Goals and/or the Performance Period in such manner as the Committee, in its sole discretion, deems appropriate
at any time and from time to time.

 

 9.5 Payment
of Units.   With respect to each Performance Unit, the Participant shall, if the applicable Performance
Goals have been achieved, or partially achieved, as determined by the Committee in its sole discretion, by the Company and/or
the Participant during the relevant Performance Period, be entitled to receive payment in an amount equal to the designated value
of each Performance Unit times the number of such units so earned. Payment in settlement of earned Performance Units shall be
made as soon as practicable following the conclusion of the respective Performance Period in cash, in unrestricted Common Stock,
or in Restricted Shares, or in any combination thereof, as the Committee, in its sole discretion, shall determine and provide
in the relevant Award Agreement.

 

10. Other Provisions.

 

 10.1 Performance-Based
Awards.   Performance Units, Restricted Shares, and other Awards subject to performance criteria that are
intended to be “qualified performance-based compensation” within the meaning of section 162(m) of the Code shall be
paid solely on account of the attainment of one or more pre-established, objective performance goals within the meaning of section
162(m) and the regulations thereunder. Until otherwise determined by the Committee, the performance goals shall be the attainment
of pre-established levels of any of net income, market price per share, earnings per share, return on equity, return on capital
employed and/or cash flow, regulatory approval of products, strategic alliances and joint ventures and patent issuances. The payout
of any such Award to a Covered Employee may be reduced, but not increased, based on the degree of attainment of other performance
criteria or otherwise at the discretion of the Committee. For purposes of the Plan, “Covered Employee” has the same
meaning as set forth in Section 162(m) of the Code.

 

 10.2 Maximum
Yearly Awards.   The maximum annual Common Stock amounts in this Section 10.2 are subject to adjustment
under Section 13.2 and are subject to the Plan maximum under Section 4.2.

 

 10.2.1 Performance-Based
Awards.   The maximum amount payable in respect of Performance Units, performance-based Restricted Shares
and other Awards in any calendar year may not exceed 1,000,000 shares of Common Stock (or the then equivalent Fair Market Value
thereof) in the case of any individual Participant.

 

 10.2.2  
Stock Options and SARs.   Each individual Participant may not receive in any calendar year Awards of
Options or Stock Appreciation Rights exceeding 1,000,000 underlying shares of Common Stock.

 

11. Dividend Equivalents.   In
addition to the provisions of Section 8.5 of the Plan, Awards of Stock Options, and/or Stock Appreciation Rights, may, in the
sole discretion of the Committee and if provided

 

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for in the relevant Award Agreement, earn dividend
equivalents. In respect of any such Award which is outstanding on a dividend record date for Common Stock, the Participant shall
be credited with an amount equal to the amount of cash or stock dividends that would have been paid on the shares of Common Stock
covered by such Award had such covered shares been issued and outstanding on such dividend record date. The Committee shall establish
such rules and procedures governing the crediting of such dividend equivalents, including, without limitation, the amount, timing,
form of payment and payment contingencies and/or restrictions of such dividend equivalents, as it deems appropriate or necessary.

 

12. Non-transferability
of Awards.   Unless otherwise provided in the Award Agreement, no Award under the Plan or any Award Agreement,
and no rights or interests herein or therein, shall or may be assigned, transferred, sold, exchanged, encumbered, pledged, or
otherwise hypothecated or disposed of by a Participant or any beneficiary(ies) of any Participant, except by testamentary disposition
by the Participant or the laws of intestate succession. No such interest shall be subject to execution, attachment or similar
legal process, including, without limitation, seizure for the payment of the Participant’s debts, judgments, alimony, or
separate maintenance. Unless otherwise provided in the Award Agreement, during the lifetime of a Participant, Stock Options and
Stock Appreciation Rights are exercisable only by the Participant.

 

13. Changes in Capitalization and Other Matters.  

 

 13.1 No Corporate
Action Restriction.   The existence of the Plan, any Award Agreement and/or the Awards granted hereunder
shall not limit, affect or restrict in any way the right or power of the Board or the stockholders of the Company to make or authorize
(a) any adjustment, recapitalization, reorganization or other change in the Company’s or any Subsidiary’s capital
structure or its business, (b) any merger, consolidation or change in the ownership of the Company or any Subsidiary, (c)
any issue of bonds, debentures, capital, preferred or prior preference stocks ahead of or affecting the Company’s or any
Subsidiary’s capital stock or the rights thereof, (d) any dissolution or liquidation of the Company or any Subsidiary, (e)
any sale or transfer of all or any part of the Company’s or any Subsidiary’s assets or business, or (f) any other
corporate act or proceeding by the Company or any Subsidiary. No Participant, beneficiary or any other person shall have any claim
against any member of the Board or the Committee, the Company or any Subsidiary, or any employees, officers, shareholders or agents
of the Company or any subsidiary, as a result of any such action.

 

 13.2 Recapitalization
Adjustments.   In the event that the Board determines that any dividend or other distribution (whether
in the form of cash, Common Stock, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization,
merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Common Stock or other securities of the Company,
or other corporate transaction or event affects the Common Stock such that an adjustment is determined by the Board, in its sole
discretion, to be necessary or appropriate in order to prevent dilution or enlargement of benefits or potential benefits intended
to be made available under the Plan, the Board may, in such manner as it in good faith deems equitable, adjust any or all of (i)
the number of shares of Common Stock or other securities of the Company (or number and kind of other securities or property) with
respect to which Awards may be granted, (ii) the number of shares of Common Stock or other securities of the Company (or number
and kind of other securities or property) subject to outstanding Awards, and (iii) the exercise price with respect to any Stock
Option, or make provision for an immediate cash payment to the holder of an outstanding Award in consideration for the cancellation
of such Award.

 

 13.3 Mergers.   If
the Company enters into or is involved in any merger, reorganization, recapitalization, sale of all or substantially all of the
Company’s assets, liquidation, or business combination with any person or entity (such merger, reorganization, recapitalization,
sale of all or substantially all of the Company’s assets, liquidation, or business combination to be referred to herein
as a “Merger Event”), the Board may take such action as it deems appropriate, including, but not limited to,
replacing such Stock Options with substitute stock options and/or stock appreciation rights in respect of the shares, other securities
or other property of the surviving corporation or any affiliate of the surviving corporation on such terms and conditions, as
to the number of shares, pricing and otherwise, which shall substantially preserve the value, rights and benefits of any affected
Stock Options or Stock Appreciation Rights granted hereunder as of the date of the consummation of the Merger Event. Notwithstanding
anything to the contrary in the Plan, if any Merger Event occurs, the Company shall have the right, but not the obligation, to
cancel each Participant’s Stock Options and/or Stock Appreciation Rights and to pay to each affected

 

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Participant in connection with the cancellation
of such Participant’s Stock Options and/or Stock Appreciation Rights, an amount equal to the excess of the Fair Market Value,
as determined by the Board, of the Common Stock underlying any unexercised Stock Options or Stock Appreciation Rights (whether
then exercisable or not) over the aggregate exercise price of such unexercised Stock Options and/or Stock Appreciation Rights.

 

Upon receipt by any affected
Participant of any such substitute stock options, stock appreciation rights (or payment) as a result of any such Merger Event,
such Participant’s affected Stock Options and/or Stock Appreciation Rights for which such substitute options and/or stock
appreciation rights (or payment) were received shall be thereupon cancelled without the need for obtaining the consent of any such
affected Participant.

 

14. Amendment, Suspension and Termination.   

 

 14.1 In General.   The
Board may suspend or terminate the Plan (or any portion thereof) at any time and may amend the Plan at any time and from time
to time in such respects as the Board may deem advisable to insure that any and all Awards conform to or otherwise reflect any
change in applicable laws or regulations, or to permit the Company or the Participants to benefit from any change in applicable
laws or regulations, or in any other respect the Board may deem to be in the best interests of the Company or any Subsidiary.
No such amendment, suspension or termination shall (x) materially adversely affect the rights of any Participant under any outstanding
Stock Options, Stock Appreciation Rights, Performance Units, or Restricted Share grants, without the consent of such Participant,
or (y) increase the number of shares available for Awards pursuant to Section 4.2 or increase the Maximum Yearly Awards under
Section 10.2 or change the performance criteria listed in Section 10.1, without shareholder approval; provided, however,
that the Board may amend the Plan, without the consent of any Participants, in any way it deems appropriate to satisfy Code Section
409A and any regulations or other authority promulgated thereunder, including any amendment to the Plan to cause certain Awards
not to be subject to Code Section 409A.

 

 14.2 Award
Agreement Modifications.   The Committee may (in its sole discretion) amend or modify at any time and from
time to time the terms and provisions of any outstanding Stock Options, Stock Appreciation Rights, Performance Units, or Restricted
Share grants, in any manner to the extent that the Committee under the Plan or any Award Agreement could have initially determined
the restrictions, terms and provisions of such Stock Options, Stock Appreciation Rights, Performance Units, and/or Restricted
Share grants, including, without limitation, changing or accelerating (a) the date or dates as of which such Stock Options or
Stock Appreciation Rights shall become exercisable, (b) the date or dates as of which such Restricted Share grants shall become
vested, or (c) the performance period or goals in respect of any Performance Units. No such amendment or modification shall, however,
materially adversely affect the rights of any Participant under any such Award without the consent of such Participant; provided,
however, that the Committee may amend an Award without the consent of the Participant, in any way it deems appropriate to satisfy
Code Section 409A and any regulations or other authority promulgated thereunder, including any amendment to or modification of
such Award to cause such Award not to be subject to Code Section 409A.

 

15. Miscellaneous.   

 

 15.1 Tax Withholding.   The
Company shall have the right to deduct from any payment or settlement under the Plan, including, without limitation, the exercise
of any Stock Option or Stock Appreciation Right, or the delivery, transfer or vesting of any Common Stock or Restricted Shares,
any federal, state, local or other taxes of any kind which the Committee, in its sole discretion, deems necessary to be withheld
to comply with the Code and/or any other applicable law, rule or regulation. Shares of Common Stock may be used to satisfy any
such tax withholding. Such Common Stock shall be valued based on the Fair Market Value of such stock as of the date the tax withholding
is required to be made, such date to be determined by the Committee. In addition, the Company shall have the right to require
payment from a Participant to cover any applicable withholding or other employment taxes due upon any payment or settlement under
the Plan.

 

 15.2 No Right
to Employment.   Neither the adoption of the Plan, the granting of any Award, nor the execution of any
Award Agreement, shall confer upon any employee of the Company or any Subsidiary any right to continued employment with the Company
or any Subsidiary, as the case may be, nor shall it

 

    	8

    	 

    

 

interfere in any way with the right, if any,
of the Company or any Subsidiary to terminate the employment of any employee at any time for any reason.

 

 15.3 Unfunded
Plan.   The Plan shall be unfunded and the Company shall not be required to segregate any assets in connection
with any Awards under the Plan. Any liability of the Company to any person with respect to any Award under the Plan or any Award
Agreement shall be based solely upon the contractual obligations that may be created as a result of the Plan or any such award
or agreement. No such obligation of the Company shall be deemed to be secured by any pledge of, encumbrance on, or other interest
in, any property or asset of the Company or any Subsidiary. Nothing contained in the Plan or any Award Agreement shall be construed
as creating in respect of any Participant (or beneficiary thereof or any other person) any equity or other interest of any kind
in any assets of the Company or any Subsidiary or creating a trust of any kind or a fiduciary relationship of any kind between
the Company, any Subsidiary and/or any such Participant, any beneficiary thereof or any other person.

 

 15.4 Payments
to a Trust.   The Committee is authorized to cause to be established a trust agreement or several trust
agreements or similar arrangements from which the Committee may make payments of amounts due or to become due to any Participants
under the Plan.

 

 15.5 Other
Company Benefit and Compensation Programs.   Payments and other benefits received by a Participant under
an Award made pursuant to the Plan shall not be deemed a part of a Participant’s compensation for purposes of the determination
of benefits under any other employee welfare or benefit plans or arrangements, if any, provided by the Company or any Subsidiary
unless expressly provided in such other plans or arrangements, or except where the Board expressly determines in writing that
inclusion of an Award or portion of an Award should be included to accurately reflect competitive compensation practices or to
recognize that an Award has been made in lieu of a portion of competitive annual base salary or other cash compensation. Awards
under the Plan may be made in addition to, in combination with, or as alternatives to, grants, awards or payments under any other
plans or arrangements of the Company or its Subsidiaries. The existence of the Plan notwithstanding, the Company or any Subsidiary
may adopt such other compensation plans or programs and additional compensation arrangements as it deems necessary to attract,
retain and motivate employees.

 

 15.6 Listing,
Registration and Other Legal Compliance.   No Awards or shares of the Common Stock shall be required to
be issued or granted under the Plan unless legal counsel for the Company shall be satisfied that such issuance or grant will be
in compliance with all applicable federal and state securities laws and regulations and any other applicable laws or regulations.
The Committee may require, as a condition of any payment or share issuance, that certain agreements, undertakings, representations,
certificates, and/or information, as the Committee may deem necessary or advisable, be executed or provided to the Company to
assure compliance with all such applicable laws or regulations. Certificates for shares of the Restricted Shares and/or Common
Stock delivered under the Plan may be subject to such stock-transfer orders and such other restrictions as the Committee may deem
advisable under the rules, regulations, or other requirements of the Securities and Exchange Commission, any stock exchange upon
which the Common Stock is then listed, and any applicable federal or state securities law. In addition, if, at any time specified
herein (or in any Award Agreement or otherwise) for (a) the making of any Award, or the making of any determination, (b) the issuance
or other distribution of Restricted Shares and/or Common Stock, or (c) the payment of amounts to or through a Participant with
respect to any Award, any law, rule, regulation or other requirement of any governmental authority or agency shall require either
the Company, any Subsidiary or any Participant (or any estate, designated beneficiary or other legal representative thereof) to
take any action in connection with any such determination, any such shares to be issued or distributed, any such payment, or the
making of any such determination, as the case may be, shall be deferred until such required action is taken. With respect to persons
subject to Section 16 of the Exchange Act, transactions under the Plan are intended to comply with all applicable conditions of
Rule 16b-3 promulgated under the Exchange Act.

 

 15.7 Award
Agreements.   Each Participant receiving an Award under the Plan shall enter into an Award Agreement with
the Company in a form specified by the Committee. Each such Participant shall agree to the restrictions, terms and conditions
of the Award set forth therein and in the Plan.

 

 15.8 Designation
of Beneficiary.   Each Participant to whom an Award has been made under the Plan may designate a beneficiary
or beneficiaries to exercise any option or to receive any payment which

 

    	9

    	 

    

 

under the terms of the Plan and the relevant
Award Agreement may become exercisable or payable on or after the Participant’s death. At any time, and from time to time,
any such designation may be changed or cancelled by the Participant without the consent of any such beneficiary. Any such designation,
change or cancellation must be on a form provided for that purpose by the Committee and shall not be effective until received by
the Committee. If no beneficiary has been designated by a deceased Participant, or if the designated beneficiaries have predeceased
the Participant, the beneficiary shall be the Participant’s estate. If the Participant designates more than one beneficiary,
any payments under the Plan to such beneficiaries shall be made in equal shares unless the Participant has expressly designated
otherwise, in which case the payments shall be made in the shares designated by the Participant.

 

 15.9 Leaves
of Absence/Transfers.   The Committee shall have the power to promulgate rules and regulations and to make
determinations, as it deems appropriate, under the Plan in respect of any leave of absence from the Company or any Subsidiary
granted to a Participant. Without limiting the generality of the foregoing, the Committee may determine whether any such leave
of absence shall be treated as if the Participant has terminated employment with the Company or any such Subsidiary. If a Participant
transfers within the Company, or to or from any Subsidiary, such Participant shall not be deemed to have terminated employment
as a result of such transfers.

 

 15.10 Code
Section 409A.   This Plan and all Awards hereunder are intended to comply with the requirements of Code
Section 409A and any regulations or other authority promulgated thereunder. Notwithstanding any provision of the Plan or any Award
Agreement to the contrary, the Board and the Committee reserve the right (without the consent of any Participant and without any
obligation to do so or to indemnify any Participant or the beneficiaries of any Participant for any failure to do so) to amend
this Plan and/or any Award Agreement as and when necessary or desirable to conform to or otherwise properly reflect any guidance
issued under Code Section 409A after the date hereof without violating Code Section 409A. In the event that any payment or benefit
made hereunder would constitute payments or benefits pursuant to a non-qualified deferred compensation plan within the meaning
of Code Section 409A and, at the time of a Participant’s “separation from service”, such Participant is a “specified
employee” within the meaning of Code Section 409A, then any such payments or benefits shall be delayed until the six-month
anniversary of the date of such Participant’s “separation from service”. Each payment made under this Plan shall
be designated as a “separate payment” within the meaning of Code Section 409A.

 

 15.11 Governing
Law.   The Plan and all actions taken thereunder shall be governed by and construed in accordance with
the laws of the State of Delaware, without reference to the principles of conflict of laws thereof. Any titles and headings herein
are for reference purposes only, and shall in no way limit, define or otherwise affect the meaning, construction or interpretation
of any provisions of the Plan.

 

 15.12 Effective
Date.   The Plan shall be effective upon its approval by the Board and adoption by the Company, subject
to the approval of the Plan by the Company’s stockholders in accordance with Sections 162(m) and 422 of the Code.

 

[remainder of page intentionally left blank]

 

 

 

 

 

 

 

 

 

 

 

    	10

    	 

    

 

IN
WITNESS WHEREOF, this Plan is adopted by the Company on this 6​th day of August, 2014.

 

 

	 	MARINA BIOTECH, INC.
	 	 
	 	By:	/s/ J. Michael French
	 	Name: 

Title:	 J. Michael French
President & CEO

 

 

 

 

 

 

    	11UNTY - 8K Exhibit 10.1 - Bedner Retention Agreement

		

			 

		

		
			Exhibit 10.1
		

		
			RETENTION AGREEMENT
		

		
			RETENTION AGREEMENT (this "Agreement") made as of this 18th day of September, 2014, by and between UNITY BANK, a New Jersey state bank with its principal place of' business located at 64 Old Highway 22, Clinton, New Jersey 08809 (the "Bank"), UNITY BANCORP, INC. a New Jersey corporation with its principal place of business located at 64 Old Highway 22, Clinton, New Jersey 08809 ("Unity") (Bank and Unity collectively, "Employer"), and ALAN J. BEDNER, an individual residing at 2336 Ridge Drive,  Hellertown, PA, 18055 (the "Executive").
		

		
			WITNESSETH:
		

		
			 
		

		
			WHEREAS, Executive is presently employed by Employer as an executive officer of the Bank in the position of Executive Vice President and Chief Financial Officer; and
		

		
			WHEREAS, Employer wishes to ensure that it will continue to retain Executive in its employ and to receive Executive's undivided effort and attention;
		

		
			NOW, THEREFORE, in consideration of the mutual promises and undertakings herein contained, the parties hereto, intending to be legally bound, agree as follows:
		

			
	
			
				 1.
			Termination. Executive may be terminated at any time, without prejudice to Executive's right to compensation or benefits as provided herein or pursuant to any other benefit plan or policy of Employer. Executive's rights upon a termination shall be as follows:

			
	
			
				 (a)
			Cause. Employer may terminate Executive for "cause." Upon such a termination, Executive shall be entitled to no further compensation or employment related benefits from and after the date of such termination, except for the payment of accrued and unpaid compensation through the date of such termination and except for the provision of any statutorily required benefits. As used in this Agreement, the term "cause" shall mean the Executive's dishonesty, willful misconduct, breach of fiduciary duty involving personal profit, intentional failure to perform stated duties, willful violation of any law, rule or regulation (other than traffic violations or similar minor offenses which do not adversely effect Employer's reputation or standing in the community) or a material breach of any provision of this Agreement. For purposes of this provision, no act or failure to act, on the part of the Executive, shall be considered "willful" unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action or omission was in the best interests of the Company.

			
	
			
				 (b)
			Termination Without Cause. Upon a termination of Executive's employment by Employer without "cause," Executive shall be entitled to receive a payment equal to twelve (12) months of his then current Base Salary (as defined below). For purposes of this Agreement, Executive's "Base Salary" at any time shall be the Executive's annual salary most recently approved by the Board of Directors of Employer or any committee thereof. Such payment shall be made to Executive in a single lump sum payment to be made in accordance with Section 16 hereof. In addition, Employer shall continue to provide the Executive with the hospital, health, medical and life insurance benefits which the Executive is receiving at the time of such 
		
		
 

		

			 

		

 

		

			 

		

			termination for a period of twelve (12) months after such termination. Executive shall also be entitled to payments for periods or partial periods that occurred prior to the date of termination and for which the Executive has not yet been paid.

		
			The Executive shall have no duty to mitigate damages in connection with his termination by Employer without "cause." However, it is understood and agreed that, upon receiving a lump sum payment of any amounts which may become due under this paragraph (b), no further amounts shall be owed to the Executive and the Employer shall have no further obligation to provide any further benefits to the Executive, except as expressly set forth herein. It is also understood and agreed that, notwithstanding any provisions of this paragraph (b) and in the event the Executive obtains new employment during any period that the Employer is obligated to provide hospital, health, medical and life insurance benefits hereunder and such new employment provides for hospital, health, medical and life insurance benefits in a manner substantially similar to the benefits to be provided by Employer hereunder, Employer may permanently terminate the duplicative benefits it is obligated to provide hereunder.
		

			
	
			
				 (c)
			Resignation With Cause. Executive shall have the right to resign his employment with Employer at any time hereunder, providing notice as required by the Employer's employment related policies then in effect. In the event such a resignation is for "good cause" (as defined below), such resignation shall be deemed a termination without "cause" under paragraph (b) hereof, and Executive shall, solely in the event the Executive delivers a written resignation for "good cause" to the Employer within 15 days of the occurrence of either of the events described in subparagraphs (i) and (ii) of this paragraph (c), be entitled to receive all such amounts and benefits as are provided for under such paragraph (b) above.

		
			For purposes of this provision, the term "good cause" shall mean any of the following:
		

			
	
			
				 (i)
			A material reduction in Executive's duties, responsibilities, title or employment status from its level as of the date hereof; or

			
	
			
				 (ii)
			Any reduction in Executive's Base Salary.

			
	
			
				 2.
			Change in Control; Significant Acquisition. 

			
	
			
				 (a)
			For purposes of this Agreement, a "Change in Control" shall mean:

			
	
			
				 (i)
			a reorganization, merger, consolidation or sale of all or substantially all of the assets of Unity or a similar transaction in which Unity is not the resulting entity; or

			
	
			
				 (ii)
			individuals who constitute the Incumbent Board (as herein defined) of Unity cease for any reason to constitute a majority thereof; or

			
	
			
				 (iii)
			the occurrence of an event of a nature that would be required to be reported in response to Item 1 of the Current Report on Form 8-K, as in effect on the date hereof, pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act"); or

		 

		

			 

		

 

		

			 

		

			
	
			
				 (iv)
			Without limitation, a "change in control" shall be deemed to have occurred at such time as any "person" (as the term is used in Section 13(d) and 14(d) of the Exchange Act) other than Unity or the trustees or any administrator of any employee stock ownership plan and trust, or any other employee benefit plans, established by Employer from time-to-time is or becomes a "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act) directly or indirectly, of securities of Unity representing 35% or more of Unity's outstanding securities ordinarily having the right to vote at the election of directors; or

			
	
			
				 (v)
			A proxy statement soliciting proxies from stockholders of Unity is disseminated by someone other than the current management of Unity, seeking stockholder approval of a plan of reorganization, merger or consolidation of Unity or similar transaction with one or more corporations as a result of which the outstanding shares of the class of securities then subject to the plan or transaction are exchanged or converted into cash or property or securities not issued by Unity, and the proponent of such proxy statement shall have obtained the vote required to approve such proposal; or

			
	
			
				 (vi)
			A tender offer is made for 35% or more of the voting securities of Unity and shareholders owning beneficially or of record 35% or more of the outstanding securities of Unity have tendered or offered to sell their shares pursuant to such tender and such tendered shares have been accepted by the tender offeror.

		
			For these purposes, "Incumbent Board" means the Board of Directors of Unity on the date hereof, provided that any person becoming a director subsequent to the date hereof whose election was approved by a vote of at least three-quarters of the directors comprising the Incumbent Board, or whose nomination for election by members or stockholders was approved by the same nominating committee serving under an Incumbent Board, shall be considered as if he were a member of the Incumbent Board.
		

			
	
			
				 (b)
			Upon the occurrence of a Change in Control, and, in connection with such Change in Control, if Executive's employment with Employer and/or its successors is terminated within eighteen (18) months of such Change in Control, regardless of whether such termination is by Employer or its successor, through Executive's resignation of employment with Employer or its successor, or Executive's failure to accept an offer of employment with any successor to Employer, Executive shall be entitled to receive a payment equal to twenty-four (24) months of the Executive's Base Salary plus any cash bonus received by the Executive for the Employer's preceding fiscal year. Such payment shall be made to Executive in a single lump sum payment and shall be made in accordance with Section 16 hereof. In addition to the foregoing, Executive shall, during the twenty-four (24) months following the termination of his employment be entitled to receive from Employer or its successor, hospital, health, medical and life insurance benefits on the terms and at the same cost to Executive as Executive was receiving such benefits upon the date of termination of Executive's employment. Notwithstanding the preceding sentence, in the event the Executive obtains new employment during any period that the Employer is obligated to provide hospital, health, medical and life insurance benefits hereunder and such new employment provides for hospital, health, medical and life insurance benefits in a manner substantially similar to the benefits to be provided by Employer hereunder, Employer may permanently terminate the duplicative benefits it is obligated to provide hereunder. It is hereby understood and agreed that payments that may become due to the Executive under this paragraph (b) shall be in lieu of, and not in addition to, any payments the Executive may be entitled to under paragraph (b) or (c) of Section 1 hereof. Notwithstanding the forgoing, upon a Change in Control, Executive shall not have the right to receive the payments provided for above due to the Executive's resignation of employment with Employer or its successor (other than for cause under paragraph (c) of Section 1 hereof) or Executive's failure to accept an offer of employment with any successor to Employer if, following such transaction, (i) a majority of the individuals constituting the Board of the resulting entity are members of the Incumbent Board and (ii) a majority of the "senior officer positions" of the resulting entity are held by individuals who held "senior officer positions" with the Employer prior to such transaction.

		
			For purposes hereof, the "senior officer positions" shall include such of the following positions as the Employer shall separately maintain prior to any such transaction: the Chairman, Chief Executive Officer, President, Chief Financial Officer, Chief Operating Officer, and Chief Administrative Officer/Director of Sales.
		

			
	
			
				 (c)
			Upon the occurrence of a Change in Control, subject to paragraph (f) hereof, the vesting period for any unvested stock options or unvested awards of Unity common stock previously granted to Executive shall accelerate and become fully vested on the date of the Change in Control.

			
	
			
				 (d)
			For purposes of this Agreement, a "Significant Acquisition" shall mean an acquisition of another entity by Unity (either by way of merger, purchase of substantially all assets of such other entity or purchase of all outstanding shares of securities of such other entity) pursuant to which: (i) Unity shall, as all or part of the consideration for such acquisition, issue to the shareholders of such other entity, such number of voting securities as shall equal 35% or more of the then outstanding voting Unity securities (measured prior to the consummated Significant Acquisition); and (ii) in the case of a merger, Unity shall be the surviving entity.

			
	
			
				 (e)
			If Executive's employment with Employer is terminated within eighteen (18) months of the consummation of a Significant Acquisition, regardless of whether such termination is by Employer or through Executive's resignation of employment with Employer, Executive shall be entitled to receive a payment equal to twenty-four (24) months of the Executive's Base Salary plus any cash bonus received by the Executive for the Employer's preceding fiscal year. Such payment shall be made to Executive in a single lump sum payment and shall be made in accordance with Section 16 hereof. In addition to the foregoing, Executive shall, during the twenty-four (24) months following the termination of his employment be entitled to receive from Employer or its successor, hospital, health, medical and life insurance benefits on the terms and at the same cost to Executive as Executive was receiving such benefits upon the date of termination of Executive's employment. Notwithstanding the preceding sentence, in the event the Executive obtains new employment during any period that the Employer is obligated to provide hospital, health, medical and life insurance benefits hereunder and such new employment provides for hospital, health, medical and life insurance benefits in a manner substantially similar to the benefits to be provided by Employer hereunder, Employer may permanently terminate the duplicate benefits it is obligated to provide hereunder. In the event Executive becomes entitled to receive the amount due under this paragraph (e), subject to paragraph (f) hereof, the unvested stock options or unvested awards of Unity common stock previously granted to Executive shall accelerate and become fully vested on the date of Executive's termination of employment. It is hereby understood and agreed that payments that may become due to the Executive under this paragraph (e) shall be in lieu of, and not in addition to, any payments the Executive may be entitled to under paragraph (b) or (c) of Section 1 hereof.

			
	
			
				 (f)
			Notwithstanding anything contained in this Section 2 above, in the event all compensation to be provided to Executive conditioned upon the occurrence of a Change in Control, whether under this Agreement or in connection with any other agreement or benefit plan of the Employer to which Executive is a party or in which he participates, exceeds 2.99 times the Executive's Base Amount, as that term is defined under Section 280G of the Internal Revenue Code and regulations of the Internal Revenue Service promulgated thereunder, the total compensation to be paid to the Executive shall be reduced to an amount that is $1.00 less than 2.99 times the Executive's Base Amount. Executive shall have the right to determine which benefits to which he would otherwise be entitled shall be reduced.

			
	
			
				 3.
			No Guaranty of Employment. Nothing in this Agreement shall be construed to guarantee the employment of the Executive. Executive shall remain an "employee at will" of Employer at all times during the term of this Agreement.

			
	
			
				 4.
			Notices. Any and all notices, demands or requests required or permitted to be given under this Agreement shall be given in writing and sent: (i) by registered or certified U.S. mail, return receipt requested; (ii) by hand; (iii) by overnight courier; or (iv) by telecopier addressed to the parties hereto at their addresses set forth above or such other addresses as they may from time-to-time designate by written notice, given in accordance with the terms of this Section 4, together with copies thereof as follows:

		
			In the case of the Executive, to the address set forth on the first page hereof or to such other address as Executive shall provide in writing to the Employer for the provisions of notice hereunder.
		

		
			In the case of Employer, to the address set forth on the first page hereof, with a copy to:
		

		
			Hinman, Howard & Kattell, LLP
		

		
			Attn: Miriam R. Schindel, Esq.
		

		
			106 Corporate Park Drive, Suite 317
		

		
			White Plains, New York 10604
		

		
			Telecopier No. (914) 694-4510
		

		
			 
		

		
			Notice given as provided in this Section 4 shall be deemed effective: (i) on the date hand delivered; (ii) on the first business day following the sending thereof by overnight courier; (iii) on the seventh calendar day (or, if it is not a business day, then the next succeeding business day thereafter) after the depositing thereof into the exclusive custody of the U.S. Postal Service; or (iv) on the date telecopied.
		

			
	
			
				 5.
			Term. This Agreement shall have a term of three years from the date hereof; provided, however, that in the event the term of this Agreement would terminate at any time after the Employer has engaged in substantive negotiations regarding a transaction which would lead to a Change in Control, this Agreement shall continue to remain in full force in effect until the earlier to occur of (i) the effectuation of such transaction leading to a Change in Control or (ii) the termination of the negotiations for the proposed transaction which would have resulted in the Change in Control. Notwithstanding the preceding sentence or any other provision of this Agreement, the term of this Agreement shall immediately end upon: (i) the Bank or Unity entering into a Memorandum of Understanding with the Federal Deposit Insurance Corporation (“FDIC”) or the New Jersey Department of Banking and Insurance (“NJDBI”); (ii) a cease-and-desist order being issued with respect to the Bank or Unity by the FDIC or the NJDBI; or (iii) receipt by either the Bank or Unity of any notice under Federal or state law, which in any way restricts the payment of any amount or benefits which may become due under this Agreement. It is hereby understood and agreed that, upon the occurrence of any of the events described in the foregoing clauses (i), (ii) or (iii), this Agreement shall be deemed terminated and the Employer shall have no further obligation to pay any amounts to the Executive or provide any further benefits to the Executive.

			
	
			
				 6.
			Assignability. Neither this Agreement nor the rights or obligations of Executive hereunder may be assigned, whether by operation of law or otherwise. This Agreement shall be binding upon the Employer, its successors and assignees.  The Bank and Unity shall require any successor or assignee, whether direct or indirect, by purchase, merger, consolidation or otherwise, to all or substantially all the business or assets of the Bank and Unity, to expressly and unconditionally agree, in writing, to assume and discharge the obligations of the Bank and Unity under this Agreement, in the same manner and to the same extent that the Bank and Unity would be required to perform if no such succession or assignment had taken place.  

			
	
			
				 7.
			Waiver. The waiver by Employer or the Executive of a breach of any provision of this Agreement by the other shall not operate or be construed as a waiver of any subsequent or other breach hereof.

			
	
			
				 8.
			Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey without giving effect to principles of conflict of laws.

			
	
			
				 9.
			Entire Agreement: Termination of Change in Control Agreement. This Agreement contains the entire agreement of the parties hereto with respect to the subject matter hereof and may not be amended, waived, changed, modified or discharged, except by an agreement in writing signed by the parties hereto.

			
	
			
				 10.
			Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which taken together shall constitute one and the same instrument.

			
	
			
				 11.
			Amendment. This Agreement may be modified or amended only by an amendment in writing signed by both parties.

			
	
			
				 12.
			Severability. If any provision of this Agreement shall be held invalid or unenforceable, such invalidity or unenforceability shall attach only to such provision, only to the extent it is invalid or unenforceable, and shall not in any manner affect or render invalid or unenforceable any other severable provision of this Agreement, and this Agreement shall be carried out as if any such invalid or unenforceable provision were not contained herein.

			
	
			
				 13.
			Section Headings. The headings contained in this Agreement are solely for convenience of reference and shall be given no effect in the construction or interpretation of this Agreement.

			
	
			
				 14.
			Fees and Expenses. If any party to this Agreement institutes any action or proceeding to enforce this Agreement, the prevailing party in such action or proceeding shall be entitled to recover from the non-prevailing party all legal costs and expenses incurred by the prevailing party in such action, including, but not limited to, reasonable attorney's fees and other reasonable legal costs and expenses.

			
	
			
				 15.
			Legal Representation. The Executive hereby acknowledges that  Executive was given the opportunity to consult with independent legal counsel regarding this Agreement prior to his execution of this Agreement.

			
	
			
				 16.
			Release. All payments and benefits under Sections 1 or 2 hereof shall be contingent upon Executive executing a general release of claims in favor of Unity, its subsidiaries and affiliates, and their respective officers, directors, shareholders, partners, members, managers, agents or employees, and which must be executed by the Executive no later than the twenty second (22nd) day after the termination of Executive's employment. Payments under this Agreement that are contingent upon such release shall, subject to Section 17, commence within eight (8) days after such release becomes effective; provided, however, that if Executive's termination of employment occurs on or after November 15 of a calendar year, then severance payments shall, subject to the effectiveness of such release and Section 17, commence on the first business day of the following calendar year.

			
	
			
				 17.
			Section 409A Compliance. If the Executive is a "specified employee" for purposes of Section 409A of the Code, to the extent required to comply with Section 409A of the Code, any payments required to be made pursuant to this Agreement which are deferred compensation and subject to Section 409A of the Code (and do not qualify for an exemption thereunder) shall not commence until one day after the day which is six (6) months from the date of termination. Should this Section 17 result in a delay of payments to the Executive, on the first day any such payments may be made without incurring a penalty pursuant to Section 409A (the "409A Payment Date"), the Employer shall begin to make such payments as described in this Section 17, provided that any amounts that would have been payable earlier but for application of this Section 17 shall be paid in lump-sum on the 409A Payment Date.

		
			IN WITNESS WHEREOF, the parties hereto have executed this Agreement under their respective hands and seals as of the day and year first above written.
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						ATTEST:

					
					
						UNITY BANK

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By: 

					
					
						/s/          David Dallas

				
	
					
						 

					
					
						 

					
					
						David Dallas, Chairman of the Board

				
	
					
						 

					
					
						 

				
	
					
						ATTEST:

					
					
						UNITY BANCORP, INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By

					
					
						/s/          David Dallas

				
	
					
						 

					
					
						 

					
					
						David Dallas, Chairman of the Board

				
	
					
						 

					
					
						 

				
	
					
						WITNESS:

					
					
						EXECUTIVE

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						/s/          Alan J. Bedner

				
	
					
						 

					
					
						Alan J. Bedner

					
						Executive Vice President and Chief Financial Officer

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