Document:

Exhibit 10.2

         

        

         

                                      August 3, 2009

        

        CONFIDENTIAL

        

        Michael L. Krall

        Chairman, Chief Executive Officer and President

        PURE Bioscience

        1725 Gillespie Way

        El Cajon, CA 92020

        

        Dear Mr. Krall:

          

          This letter (the “Agreement”) constitutes the agreement between Rodman & Renshaw, LLC
        (“Rodman” or the “Placement Agent”) and PURE Bioscience (the
        “Company”), that Rodman shall serve as the exclusive placement agent for the Company, on a “reasonable best efforts” basis, in connection with the proposed placement (the
        “Placement”) of registered securities (the “Securities”) of the Company, including shares (the
        “Shares”) of the Company’s common stock, no par value per share (the “Common Stock”) and warrants to purchase shares of Common Stock. The terms of such Placement and the
        Securities shall be mutually agreed upon by the Company and the purchasers (each, a “Purchaser” and collectively, the “Purchasers”) and nothing herein constitutes that Rodman
        would have the power or authority to bind the Company or any Purchaser or an obligation for the Company to issue any Securities or complete the Placement. This Agreement and the documents executed and delivered by the Company and the Purchasers in connection with the Placement shall be collectively referred to herein as the “Transaction
        Documents.” The date of the closing of the Placement shall be referred to herein as the “Closing Date.” The Company expressly acknowledges and agrees that Rodman’s obligations
        hereunder are on a reasonable best efforts basis only and that the execution of this Agreement does not constitute a commitment by Rodman to purchase the Securities and does not ensure the successful placement of the Securities or any portion thereof or the success of Rodman with respect to securing any other financing on behalf of the Company. 

        

        SECTION 1.      COMPENSATION AND OTHER FEES.

        

        As compensation for the services provided by Rodman hereunder, the Company agrees to pay to Rodman:

        

        (A)     The fees set forth below with respect to the Placement:             

        

        1 Cash fee payable immediately upon (but only in the event of) the closing of the Placement and equal to 6% of the aggregate gross proceeds raised in the Placement from the sale of Shares sold at the Closing.

         

        2. Such number of warrants (the “Rodman Warrants”) to Rodman or its designees at the Closing to purchase shares of Common Stock equal to 5% of the aggregate number of Shares sold in the Placement. The Rodman Warrants shall have the same terms as the warrants (if any) issued to the Purchasers in the Placement except that
        the exercise price shall be 125% of the public offering price per share. The Rodman Warrants shall not have antidilution protections or be transferable for six months from the date of the Offering except as permitted by FINRA
        Rule 5110, and further, the number of Shares underlying the Rodman Warrants shall be reduced if necessary to comply with FINRA rules or regulations.

         

        
            

        

         

        

        (B)     The Company also agrees to reimburse Rodman’s expenses (with supporting invoices/receipts) up to a maximum of 1% of the aggregate gross proceeds raised in the placement, but in no event more
        than $35,000. Such reimbursement shall be payable immediately upon (but only in the event of) the closing of the Placement.

        

        SECTION 2.      REGISTRATION
        STATEMENT.

        

        The Company represents and warrants to, and agrees with, the Placement Agent that:

        (A)     The Company has filed with the Securities and Exchange Commission (the “Commission”) a registration statement on Form S-3 (Registration File No. 333-158555) under the Securities Act of 1933, as amended (the “Securities
        Act”), which became effective on May 8, 2009, for the registration under the Securities Act of the Shares. At the time of such filing, the Company met the requirements of Form S-3 under the Securities Act. Such registration statement meets the requirements set forth in Rule 415(a)(1)(x) under the Securities Act and complies with said Rule. The Company will file with the Commission pursuant to Rule 424(b)
        under the Securities Act, and the rules and regulations (the “Rules and Regulations”) of the Commission promulgated thereunder, a supplement to the form of prospectus included in such registration statement relating to the placement of the Shares and the plan of distribution thereof and will advise the Placement Agent of all further information (financial and other) with respect to the Company required
        to be set forth therein. Such registration statement, including the exhibits thereto, as amended at the date of this Agreement, is hereinafter called the “Registration Statement”; such prospectus in the form in which it appears in the Registration Statement is hereinafter called the “Base Prospectus”; and the supplemented form of prospectus, in the form in which it will be filed with the Commission pursuant to Rule 424(b) (including the Base Prospectus as so
        supplemented) is hereinafter called the “Prospectus Supplement.” Any reference in this Agreement to the Registration Statement, the Base Prospectus or the Prospectus Supplement shall be deemed to refer to and include the documents incorporated by reference therein (the “Incorporated Documents”) pursuant to Item 12 of Form S-3 which were filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), on or before the date of this
        Agreement, or the issue date of the Base Prospectus or the Prospectus Supplement, as the case may be; and any reference in this Agreement to the terms “amend,” “amendment” or “supplement” with respect to the Registration Statement, the Base Prospectus or the Prospectus Supplement shall be deemed to refer to and include the filing of any document under the Exchange Act after the date of this Agreement, or the issue date of the Base Prospectus or the
        Prospectus Supplement, as the case may be, deemed to be incorporated therein by reference. All references in this Agreement to financial statements and schedules and other information that is “contained,” “included,” “described,” “referenced,” “set forth” or “stated” in the Registration Statement, the Base Prospectus or the Prospectus
        Supplement (and all other references of like import) shall be deemed to mean and include all such financial statements and schedules and other information that is or is deemed to be incorporated by reference in the Registration Statement, the Base Prospectus or the Prospectus Supplement, as the case may be. No stop order suspending the effectiveness of the Registration Statement or the use of the Base Prospectus
        or the Prospectus Supplement has been issued, and no proceeding for any such purpose is pending or has been initiated or, to the Company's knowledge, is threatened by the Commission. For purposes of this Agreement, “free writing prospectus” has the meaning set forth in Rule 405 under the Securities Act and the “Time of Sale
        Prospectus” means the preliminary prospectus, if any, together with the free writing prospectuses, if any, used in connection with the Placement, including any documents incorporated by reference therein.

        
            

        

         

        (B)     The Registration Statement (and any further documents to be filed with the Commission) contains (or will contain) all exhibits and schedules as required by the Securities Act.
        Each of the Registration Statement and any post-effective amendment thereto, at the time it became effective, complied in all material respects with the Securities Act and the Exchange Act and the applicable Rules and Regulations and did not and, as amended or supplemented, if applicable, will not, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein
        not misleading. The Base Prospectus, the Time of Sale Prospectus, if any, and the Prospectus Supplement, each as of its respective date, comply in all material respects with the Securities Act and the Exchange Act and the applicable Rules and Regulations. Each of the Base Prospectus, the Time of Sale Prospectus, if any, and the Prospectus Supplement, as amended or supplemented, did not and will not contain as of
        the date thereof any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading, provided, however, that the Company makes no representation or warranty as to information contained in or admitted from the Registration Statement, the Time of Sale Prospectus, if any, or Prospectus Supplement, including any amendments or
        supplements thereto, in reliance upon, and in conformity with, written information furnished to the Company by or on behalf of Rodman expressly for use in or preparation thereof. The Incorporated Documents, when they were filed with the Commission, conformed in all material respects to the requirements of the Exchange Act and the applicable Rules and Regulations, and none of such documents, when they were filed
        with the Commission, contained any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein (with respect to Incorporated Documents incorporated by reference in the Base Prospectus or Prospectus Supplement), in light of the circumstances under which they were made not misleading; and any further documents so filed and incorporated by reference in the Base
        Prospectus, the Time of Sale Prospectus, if any, or Prospectus Supplement, when such documents are filed with the Commission, will conform in all material respects to the requirements of the Exchange Act and the applicable Rules and Regulations, as applicable, and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.
        No post-effective amendment to the Registration Statement reflecting any facts or events arising after the date thereof which represent, individually or in the aggregate, a fundamental change in the information set forth therein is required to be filed with the Commission. There are no documents required to be filed with the Commission in connection with the transaction contemplated hereby that (x) have not been filed as required pursuant to the Securities
        Act or (y) will not be filed within the requisite time period. There are no contracts or other documents required to be described in the Base Prospectus, the Time of Sale Prospectus, if any, or Prospectus Supplement, or to be filed as exhibits or schedules to the Registration Statement, that have not been described or filed as required. 

        (C)     The Company is eligible to use free writing prospectuses in connection with the Placement pursuant to Rules 164 and 433 under the Securities Act. Any free writing prospectus that the Company is
        required to file pursuant to Rule 433(d) under the Securities Act related to the Placement has been, or will be, filed with the Commission in accordance with the requirements of the Securities Act and the applicable rules and regulations of the Commission thereunder. Each free writing prospectus that the Company has filed, or is required to file, pursuant to Rule 433(d) under the Securities Act or that was
        prepared by or behalf of or used by the Company complies or will comply in all material respects with the requirements of the Securities Act and the applicable rules and regulations of the Commission thereunder. The Company will not, without the prior consent of the Placement Agent, prepare, use or refer to, any free writing prospectus related to the
        Placement.

        
            

        

         

        (D)     The Company has delivered or made available to, or will as promptly as practicable deliver or make available to, the
        Placement Agent complete conformed copies of the Registration Statement and of each consent and certificate of experts, as applicable, filed as a part thereof, and conformed copies of the Registration Statement (without exhibits), the Base Prospectus, the Time of Sale Prospectus, if any, and the Prospectus Supplement, as amended or supplemented, in such quantities and at such places as the
        Placement Agent reasonably requests. Neither the Company nor any of its directors and officers has distributed and none of them will distribute, prior to the Closing Date, any offering material in connection with the offering and sale of the Shares in the Placement other than the Base Prospectus, the Time of Sale Prospectus, if any, the
        Prospectus Supplement, the Registration Statement, copies of the documents incorporated by reference therein and any other materials permitted by the Securities Act. 

        SECTION 3.     REPRESENTATIONS AND WARRANTIES. The Placement Agent shall be entitled to rely upon any and all representations and warranties of the Company
        included in the Transaction Documents, subject to the qualifications and limitations therein. The Company agrees to amend this Agreement at the time it enters into purchase agreements with Purchasers to include any standard representations and warranties typically received by Rodman in an engagement agreement that are not included in the Transaction Documents.

        SECTION 4.     ENGAGEMENT
        TERM. Rodman’s engagement hereunder will be for the period of 30 days from the date hereof. The engagement may be terminated by either the Company or Rodman at any time upon 10 days’ written notice. Notwithstanding anything to the contrary contained herein, the provisions concerning confidentiality, indemnification and
        contribution contained herein and the Company’s obligations contained in the Indemnification Provisions will survive any expiration or termination of this Agreement, and the Company’s obligation to pay fees actually earned and payable and to reimburse expenses actually incurred and reimbursable pursuant to Section 1 hereof, will survive any expiration or termination of this Agreement. Rodman agrees not to use any
        confidential information concerning the Company provided to them by the Company for any purposes other than those contemplated under this Agreement.

        

        SECTION 5.     RODMAN
        INFORMATION. The Company agrees that any information or advice rendered by Rodman in connection with this engagement is for the confidential use of the Company only in their evaluation of the Placement
        and, except as otherwise required by law, the Company will not disclose or otherwise refer to the advice or information in any manner without Rodman’s prior written consent.

        

        SECTION 6.     NO FIDUCIARY RELATIONSHIP. This Agreement does not create, and shall not be construed as creating rights enforceable by any person or entity not a party hereto, except those entitled hereto by virtue of the indemnification provisions hereof. The Company acknowledges and agrees that Rodman
        is not and shall not be construed as a fiduciary of the Company and shall have no duties or liabilities to the equity holders or the creditors of the Company or any other person by virtue of this Agreement or the retention of Rodman hereunder, all of which are hereby expressly waived.

         

        SECTION 7.     CLOSING. The obligations of the Placement Agent and the Purchasers, and the closing of the sale of the Securities pursuant to the Transaction Documents are subject to the accuracy, when made and on the Closing Date, of the representations and warranties on the part of the Company and its
        Subsidiaries contained in the Transaction Documents, to the accuracy of the statements of the Company and its Subsidiaries made in any certificates pursuant to the provisions hereof, to the performance by the Company and its Subsidiaries of their obligations hereunder, and to each of the following additional terms and conditions:

        

        (A)     No stop order suspending the effectiveness of the Registration Statement shall have been issued and no proceedings for that purpose shall have been initiated or threatened by the Commission, and any request for additional information on the part of the Commission (to be included in the Registration Statement, the Base Prospectus or the
        Prospectus Supplement or otherwise) shall have been complied with to the reasonable satisfaction of the Placement Agent.

         

        
            

        

         

        

        (B)     The Placement Agent shall not have discovered and disclosed to the Company on or prior to the Closing Date that the Registration Statement, the Base Prospectus or the Prospectus Supplement or any amendment or supplement thereto contains an untrue statement of a fact which, in the opinion of counsel for the
        Placement Agent, is material or omits to state any fact which, in the opinion of such counsel, is material and is required to be stated therein or is necessary to make the statements therein not misleading.

        (C)     All corporate proceedings and other legal matters incident to the authorization, form, execution, delivery and validity of each of this Agreement, the Securities, the Registration Statement, the Base Prospectus and the Prospectus Supplement and all other legal matters relating to this Agreement and the
        transactions contemplated hereby shall be reasonably satisfactory in all material respects to counsel for the Placement Agent, and the Company shall have furnished to such counsel all documents and information that they may reasonably request to enable them to pass upon such matters.

        (D)     The Placement Agent shall have received from outside counsel to the Company such counsel’s written opinion, addressed to the Placement Agent and the Purchasers dated as of the Closing Date, in form and substance reasonably satisfactory to the Placement Agent.

        (E)     Neither the Company nor any of its Subsidiaries shall have sustained since April 30, 2009, any loss or interference with its business from fire, explosion, flood, terrorist act or other calamity, whether or not covered by insurance, or from any labor dispute or
        court or governmental action, order or decree, otherwise than as set forth in or contemplated by the Base Prospectus and (ii) since such date there shall not have been any change in the capital stock or long-term debt of the Company or any of its Subsidiaries or any change, or any development involving a prospective change, in or affecting the business, general affairs, management, financial position, stockholders’ equity, results of operations or prospects of the Company and its
        Subsidiaries, otherwise than as set forth in or contemplated by the Base Prospectus, the effect of which, in any such case described in clause (i) or (ii), is, in the judgment of the Placement Agent, so material and adverse as to make it impracticable or inadvisable to proceed with the sale or delivery of the Securities on the terms and in the manner contemplated by the Base Prospectus, the Time of Sale Prospectus, if any, and the Prospectus Supplement.

        (F)     The Common Stock is registered under the Exchange Act. The Company shall have taken no action designed to, or likely to have the effect of terminating the registration of the Common Stock under the Exchange Act or delisting or suspending from trading the Common Stock from the
        Trading Market, nor has the Company received any information suggesting that the Commission or the Trading Market is contemplating terminating such registration or listing.

        (G)     Subsequent to the execution and delivery of this Agreement, there shall not have occurred any of the following: (i) trading in securities generally on the New York Stock Exchange, the Nasdaq National Market or the NYSE Alternext US or in the over-the-counter market, or
        trading in any securities of the Company on any exchange or in the over-the-counter market, shall have been suspended or minimum or maximum prices or maximum ranges for prices shall have been established on any such exchange or such market by the Commission, by such exchange or by any other regulatory body or governmental authority having jurisdiction, (ii) a banking moratorium shall have been declared by federal or state authorities or a material disruption has occurred in commercial
        banking or securities settlement or clearance services in the United States, (iii) the United States shall have become engaged in hostilities in which it is not currently engaged, the subject of an act of terrorism, there shall have been an escalation in hostilities involving the United States, or there shall have been a declaration of a national emergency or war by the United States, or (iv) there shall have occurred any other calamity or crisis or any change in general economic,
        political or financial conditions in the United States or elsewhere, if the effect of any such event in clause (iii) or (iv) makes it, in the sole judgment of the Placement Agent, impracticable or inadvisable to proceed with the sale or delivery of the Securities on the terms and in the manner contemplated by the Base Prospectus and the Prospectus Supplement.

         

        
            

        

         

        (H)     No action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any governmental agency or body which would, as of the Closing Date, prevent the issuance or sale of the Securities or materially and adversely affect or potentially and adversely affect the
        business or operations of the Company; and no injunction, restraining order or order of any other nature by any federal or state court of competent jurisdiction shall have been issued as of the Closing Date which would prevent the issuance or sale of the Securities or materially and adversely affect or potentially and adversely affect the business or operations of the Company.

        (I)     The Company shall have prepared and filed with the Commission a Current Report on Form 8-K with respect to the Placement, including as an exhibit thereto this Agreement.

        (J)     The Company shall have entered into subscription agreements with each of the Purchasers and such agreements shall be in full force and effect and shall contain representations and warranties of the Company as agreed between the Company and the Purchasers.

        (K)     FINRA shall have raised no objection to the fairness and reasonableness of the terms and arrangements of this Agreement. In addition,
        the Company shall, if requested by the Placement Agent, make or authorize Placement Agent’s counsel to make on the Company’s behalf, an Issuer Filing with FINRA pursuant to FINRA
        Rule 5110 with respect to the Registration Statement and pay all filing fees required in connection therewith. 

         

        

        (L)     Prior to the Closing Date, the Company shall have furnished to the Placement Agent such further information, certificates and documents as the Placement Agent may reasonably request.

        All opinions, letters, evidence and certificates mentioned above or elsewhere in this Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form and substance reasonably satisfactory to counsel for the Placement Agent.

        SECTION
        8.     INDEMNIFICATION.     (A) To the extent permitted by law, the Company will indemnify Rodman and its affiliates, stockholders, directors, officers, employees and controlling persons
        (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) against all losses, claims, damages, expenses and liabilities, as the same are incurred (including the reasonable fees and expenses of counsel), relating to or arising out of its activities hereunder or pursuant to this engagement letter, except to the extent that any losses, claims, damages, expenses or liabilities (or actions in respect thereof) are found in a final judgment (not subject to
        appeal) by a court of law to have resulted primarily and directly from Rodman’s willful misconduct or gross negligence in performing the services described herein.

          

        (B)     Promptly after receipt by Rodman of notice of any claim or the commencement of any action or proceeding with respect to which Rodman is entitled to indemnity hereunder, Rodman will notify the Company in writing of such claim or of the commencement of such action or proceeding, and the Company will assume the defense of such
        action or proceeding and will employ counsel reasonably satisfactory to Rodman and will pay the fees and expenses of such counsel. Notwithstanding the preceding sentence, Rodman will be entitled to employ counsel separate from counsel for the Company and from any other party in such action if counsel for Rodman reasonably determines that it would be inappropriate under the applicable rules of professional responsibility for the same counsel to represent both the Company and Rodman. In
        such event, the reasonable fees and disbursements of no more than one such separate counsel will be paid by the Company. The Company will have the exclusive right to settle the claim or proceeding provided that the Company will not settle any such claim, action or proceeding without the prior written consent of Rodman, which will not be unreasonably withheld.

        

        
            

        

         

        (C)     The Company agrees to notify Rodman promptly of the assertion against it or any other person of any claim or the commencement of any action or proceeding relating to a transaction contemplated by this engagement letter.

        

        (D)     If for any reason the foregoing indemnity is unavailable to Rodman or insufficient to hold Rodman harmless, then the Company shall contribute to the amount paid or payable by Rodman as a result of such losses, claims, damages or liabilities in such proportion as is appropriate to reflect not only the relative benefits received
        by the Company on the one hand and Rodman on the other, but also the relative fault of the Company on the one hand and Rodman on the other that resulted in such losses, claims, damages or liabilities, as well as any relevant equitable considerations. The amounts paid or payable by a party in respect of losses, claims, damages and liabilities referred to above shall be deemed to include any legal or other fees and expenses incurred in defending any litigation, proceeding or other action
        or claim. Notwithstanding the provisions hereof, Rodman’s share of the liability hereunder shall not be in excess of the amount of fees actually received, or to be received, by Rodman under this engagement letter (excluding any amounts received as reimbursement of expenses incurred by Rodman).

        

        (E)     These indemnification provisions shall remain in full force and effect whether or not the transaction contemplated by this engagement letter is completed and shall survive the termination of this engagement letter, and shall be in addition to any liability that the Company might otherwise have to any indemnified party under
        this engagement letter or otherwise.

        

        SECTION 9.     GOVERNING
        LAW. This Agreement will be governed by, and construed in accordance with, the laws of the State of New York applicable to agreements made and to be performed entirely in such State. This Agreement may not be assigned by either party without the prior written consent of the other
        party. This Agreement shall be binding upon and inure to the benefit of the parties hereto, and their respective successors and permitted assigns. Any right to trial by jury with respect to any dispute arising under this Agreement or any transaction or conduct in connection herewith is waived. Any dispute arising under this Agreement may be brought into the courts of the State of New York or into the Federal Court located in New York, New York and, by execution and delivery of this
        Agreement, the Company hereby accepts for itself and in respect of its property, generally and unconditionally, the jurisdiction of aforesaid courts. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by delivering a copy thereof via overnight delivery (with evidence of delivery) to such party at the address in effect for
        notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. If either party shall commence an action or proceeding to enforce any provisions of a Transaction Document, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys fees and
        other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

         

        SECTION
        10.     ENTIRE AGREEMENT/MISC.
        This Agreement (including the attached Indemnification Provisions) embodies the entire agreement and understanding between the parties hereto, and supersedes all prior agreements and understandings,
        relating to the subject matter hereof. If any provision of this Agreement is determined to be invalid or unenforceable in any respect, such determination will not affect such provision in any other respect or any other provision of this Agreement, which will remain in full force and effect. This Agreement may not be amended or otherwise modified or waived except by an instrument in writing signed by both
        Rodman and the Company. The representations, warranties, agreements and covenants contained herein shall survive the closing of the Placement
        and delivery and/or exercise of the Securities, as applicable. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is
        delivered by facsimile transmission or a .pdf format file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or .pdf
        signature page were an original thereof. 

         

        
            

        

        

         

        SECTION 11.     NOTICES.
        Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number specified on the signature pages attached hereto prior to 6:30 p.m. (New York City time) on a
        business day, (b) the next business day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number on the signature pages attached hereto on a day that is not
        a business day or later than 6:30 p.m. (New York City time) on any business day, (c) the business day
        following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages
        hereto.

         

         

         

         

         

         

        
            

        

         

        Please confirm that the foregoing correctly sets forth our agreement by signing and returning to Rodman a copy of this Agreement.

        

		
		
		Very truly yours,

RODMAN & RENSHAW, LLC

By: /s/ John Borer

     Name: John Borer

     Title: Senior Managing Director

Address for notice:

1251 Avenue of the Americas, 20th Floor

New York, NY, 10020

Fax (646) 841-1640

Attention: General Counsel 

		

         

        

        Accepted and Agreed to as of

        the date first written above:

          

        PURE BIOSCIENCE

        

        By:  /s/ Andrew J. Buckland

        Name: Andrew J. Buckland

        Title: Chief Financial Officer

        

        Address for notice:

        1725 Gillespie Way

        El Cajon, CA 92020

        Fax (619) 596 8790Exhibit 10.1

 

TERMINATION
OF EMPLOYMENT AGREEMENT

 

This Termination of
Employment Agreement (this “Agreement”) is entered into as of             ,
2009 by and between [                    ]
(“Employee”), and 1st Pacific Bancorp, a California corporation (“Bancorp”)
and 1st Pacific Bank of California, a California state
bank (“Bank”) (collectively, Bancorp and Bank are referred to as the “Employer”)
and made effective as of the Effective Time of the Merger (as these terms are
defined below).

 

RECITALS

 

A.    Employee commenced employment with the
Employer on or about                           .

 

B.    In connection with that certain Agreement
and Plan of Merger, dated of even date herewith, by and among Employer, First
Business Bank, N.A., a national banking association, and FB Bancorp, a
California corporation (the “Merger Agreement”), Employee’s employment, with
Employer will terminate effective as of the Effective Time of the Merger (as
these terms are defined in the Merger Agreement).

 

C.    Employee and the Employer desire to settle
and compromise any and all possible claims against the Employer by Employee
arising out of their relationship to date, including Employee’s employment with
the Employer and the termination of Employee’s employment, and to provide for a
general release of any and all such claims.

 

AGREEMENT

 

1.     Separation Pay/Consideration.  Employer and Executive hereby agree: (i) that
this Agreement constitutes the new Exhibit A to the Employment Agreement
(as defined below), superseding any prior version attached as Exhibit A to
the Employment Agreement; and (ii) notwithstanding execution of this
Agreement Executive shall continue to be employed under the terms of the
Employment Agreement until the Effective Time of the Merger at which time
Employer and Executive agree that the Employment Agreement shall terminate
subject to the terms specified therein and this Agreement shall also become
effective.  In consideration of the
covenants and releases set forth herein, the Bank agrees to pay Employee the
amount payable to him and the non-monetary consideration (if any) due him,
pursuant to and in accordance with, Paragraphs 5.2, 5.3 or 5.4, as the
case may be, of the Employment Agreement dated                   
    , 200 , by and between the Employer and Employee
(the “Employment Agreement”), less all applicable state and federal deductions
(in each case, the “Severance Benefit”), $2,000 of which shall be consideration
for Employee’s release of ADEA claims as set forth in Section 5, below;
provided that no such Severance Benefit shall be made until at least eight (8) days
have past since Employee’s execution of this Agreement.  The check representing the Severance Benefit
shall be mailed to Employee at his home address at                                                                         .  Notwithstanding anything contained herein to
the contrary, if Employee qualifies as a “specified employee ,” as defined in Section 409A(a)(2)(B)(i) of
the Internal Revenue Code, as amended, payment of the Severance Benefit shall
be delayed for a period of six months from the date of termination of Employee’s
employment and calculated in accordance with Section 5.3.4 of the
Employment Agreement.  Payment of the
Severance Benefit hereunder shall be contingent upon the closing of the Merger
as contemplated in the Merger Agreement.

 

 

2.     Regulatory Restrictions.  The parties understand and agree that at the
time any payment would otherwise be made or benefit provided under Section 1
hereof, depending on the facts and circumstances existing at such time, the
satisfaction of such obligations by the Employer may be deemed by a regulatory
authority to be illegal, an unsafe and unsound practice, or for some other
reason not properly due or payable by the Employer.  Among other things, the regulations at 12
C.F.R. Part 30, Appendix A promulgated pursuant to Section 39(a) of
the Federal Deposit Insurance Act, and at 12 C.F.R. Part 359, or similar
regulations or regulatory action following similar principles may apply at such
time.  The Employer agrees that to the
extent reasonably feasible, it will in good faith seek to determine the
position of the appropriate regulatory authority in advance of each payment or
benefit otherwise due under this Agreement, including seeking the approval or
acquiescence of the appropriate regulatory authorities, if required.  The parties understand, acknowledge and agree
that, notwithstanding any other provision of this Agreement, the Employer shall
not be obligated to make any payment or provide any benefit under this
Agreement where (i) an appropriate regulatory authority does not approve
or acquiesce as required, or (ii) the Employer has been informed either
orally or in writing by a representative of the appropriate regulatory
authority that it is the position of such regulatory authority that making such
payment or providing such benefit would constitute an unsafe and unsound
practice, violate a written agreement with the regulatory authority, violate an
applicable rule, law or regulation, or would cause the representative of the
regulatory authority to recommend enforcement action against the Employer.

 

3.     Covenants.  During the term of any Section 409A
waiting period, Employee re-affirms and agrees that he shall comply with his
obligations and duties under Section 6 of the Employment Agreement, except
for Paragraph 6.6.1.

 

4.     Release of All Claims Except Age
Discrimination in Employment Act of 1967 (“ADEA”) Claims.

 

a.     In consideration of the payment and other benefits described in Section 1,
which Employee would otherwise not be entitled to except for signing this
Agreement, Employee does hereby unconditionally, irrevocably and absolutely
release and discharge the Employer and any related holding, parent, sister or
subsidiary entities and all of their respective boards of directors, officers,
employees, agents, volunteers, attorneys, insurers, divisions, successors and
assigns from any and all loss, liability, claims, demands, causes of action or
suits of any type, whether in law and/or in equity, related directly or
indirectly, or in any way connected with any transaction, affairs or
occurrences between them to date, including, but not limited to, Employee’s
employment with the Employer and the termination of said employment.  This Agreement specifically applies, without
limitation, to any and all contract or tort claims, claims for wrongful
termination, wage claims, and claims arising under Title VII of the Civil
Rights Act of 1991, the Americans with Disabilities Act, the Equal Pay Act, the
California Fair Employment and Housing Act, the Fair Labor Standards Act, the
Family and Medical Leave Act, the California Family Rights Act, the California
Labor Code, and any and all federal or state statutes or provisions governing
the employment relationship or discrimination in employment except the federal
statute specifically excluded hereafter. 
This release specifically excludes any and all loss, liability, claims,
demands, causes of action or suits of any type arising under the ADEA.  Employee’s release of ADEA claims will be
addressed separately in Section 5 of this Agreement.

 

2

 

b.     Employee irrevocably and absolutely agrees that he will not
prosecute nor allow to be prosecuted on his behalf, in any administrative
agency, whether federal or state, or in any court, whether federal or state,
any claim or demand of any type related to the matters released above, it being
the intention of the parties that with the execution by Employee of this
release, the Employer and any related holding, parent, sister or subsidiary
corporations or entities and all of their respective boards of directors,
officers, employees, agents, volunteers, attorneys, insurers, divisions,
successors and assigns will be absolutely, unconditionally and forever
discharged of and from all obligations to or on behalf of Employee related in
any way to the matters discharged herein.

 

5.     Release of All ADEA Claims.

 

a.     This section of the Agreement exclusively addresses Employee’s
release of claims arising under federal law involving discrimination on the
basis of age in employment (age 40 and above). 
This section is provided separately, in compliance with federal law,
including but not limited to the Older Workers’ Benefit Protection Act of 1990,
to ensure that Employee clearly understands his rights so that any release of
age discrimination claims under federal law (the ADEA) is knowing and voluntary
on the part of Employee.

 

b.     Employee represents, acknowledges and agrees that the Employer
has advised him, in writing, to discuss this Agreement with an attorney, and to
the extent, if any, that Employee has desired, Employee has done so; that the
Employer has given Employee twenty-one (21) days from receipt of this Agreement
to review and consider this Agreement before signing it, and Employee
understands that he may use as much of this twenty-one (21) day period as he
wishes prior to signing; that no promise, representation, warranty or
agreements not contained herein have been made by or with anyone to cause him
to sign this Agreement; that he has read this Agreement in its entirety, and
fully understands and is aware of its meaning, intent, content and legal
effect; and that he is executing this release voluntarily and free of any
duress or coercion.

 

c.     The parties acknowledge that for a period of seven (7) days
following the execution of this Agreement, Employee may revoke the Agreement,
and the Agreement shall not become effective or enforceable until the
revocation period has expired.  This
Agreement shall become effective eight (8) days after it has been signed
by Employee and the Employer, and in the event the parties do not sign on the
same date, then this Agreement shall become effective eight (8) days after
the date it is signed by Employee.

 

d.     In consideration of the separation payment and other benefits
made to Employee described in Section 1 of this Agreement, which Employee
would otherwise not be entitled to except for signing this Agreement, Employee
does hereby unconditionally, irrevocably and absolutely release and discharge
the Employer and any related holding, parent, sister or subsidiary entities and
all of their respective boards of directors, officers, employees, agents,
volunteers, attorneys, insurers, divisions, successors and assigns from any and
all loss, liability, claims, demands, causes of action or suits of any type
arising under the ADEA and related directly or indirectly to Employee’s
employment with the Employer and the termination of said employment.

 

3

 

6.     Section 1542 Waiver.  Employee does expressly waive all of the
benefits and rights granted to him pursuant to California Civil Code section
1542, which reads:

 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE
RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR.

 

Employee does certify
that he has read all of this Agreement, including the release provisions
contained herein and the quoted Civil Code section, above, and that he fully
understands all of the same.  Employee
hereby expressly agrees that this Agreement shall extend and apply to all
unknown, unsuspected and unanticipated injuries and damages (including, without
limitation, those arising under the ADEA), as well as those injuries and
damages that are now disclosed.

 

7.     Confidentiality.  Employee agrees that all matters relative to
this Agreement, including the negotiations leading up to this Agreement and its
terms, shall remain confidential. 
Accordingly, Employee hereby agrees that, with the exception of his
spouse or domestic partner, regulatory agencies of the Employer and tax and
legal advisors, he will not discuss, disclose or reveal to any other persons,
entities or organizations, whether within or outside of the Employer, the terms
and conditions of this Agreement.

 

8.     Non-Disparagement.  Employee agrees that he will not disparage
the Employer or any of its directors, employees, agents or volunteers or
otherwise interfere with the Employer’s business, vendor or other
relationships.  Employee agrees not to
make any derogatory or adverse statements, written or verbal, to anyone
regarding the Employer or any of its present or former directors, employees,
agents or volunteers.  The Employer
agrees that it will neither disparage Employee nor make any derogatory or
adverse statements, written or verbal, to anyone regarding Employee.  Nothing in this Section 8 shall prohibit
or relate to any statement by any person to any bank regulatory agency.

 

9.     Entire Agreement.  The parties further declare and represent
that no promise, inducement or agreement not herein expressed has been made to
them and that this Agreement contains the full and entire agreement between and
among the parties, and that the terms of this Agreement are contractual and not
a mere recital.

 

10.   Future Employment.  Employee agrees that the Employer will not be
obligated to offer employment to him or to hire him for any reason, regardless
of the circumstances, at any time on or after the date of this Agreement.  Employee agrees that he will not apply for
nor accept any such employment.

 

11.   Trade Secret/Proprietary Information.  Employee hereby reaffirms his obligations
under his Employment Agreement with the Employer to which this Agreement
relates, which shall remain in effect to the extent provided in the Employment
Agreement.  Employee further agrees that
he shall not disclose to any person(s) or entity(ies) at any time or in
any manner, directly or indirectly, any information relating to the operations
of the Employer which has not 

 

4

 

already been disclosed to
the general public.  Employee agrees that
this provision includes, but is not limited to, the following information:
proprietary information and/or trade secrets; secret formulae; customer lists
and/or names; product and service prices; customer charges; contracts; contract
negotiations and employee relations matters. 
Employee understands and agrees that this list is not all-inclusive.

 

12.   Return of Company Property.  Employee agrees to promptly return all
property or information belonging to the Employer, including all keys,
computers, cellular telephones, and any document or property Employee generated
during his employment at the Employer, and agrees that no such property will be
in his possession or control at the time he receives the consideration
specified in Section 1.  This
includes all property or information that may have come into his possession as
a result of his employment with the Employer. 
Employee further acknowledges that he has not retained any copies of any
such information.

 

13.   Applicable Law.  The validity, interpretation, and performance
of this Agreement shall be construed and interpreted according to the laws of
the State of California.

 

14.   Dispute Resolution.  Any dispute arising out of or related to this
Agreement shall be resolved through the procedures set forth in this Section 14.

 

a.     Each party shall make a good faith attempt to resolve any
dispute arising out of or relating to this Agreement through informal
negotiations between appropriate representatives from each party.

 

b.     If at any time either party feels that informal negotiations are
not leading to a resolution of the dispute, such party must give notice of a
request for mediation to the other party, which notice shall set forth the
names of not less than three (3) mediators from the panel of
JAMS/Endispute in San Diego County. The party receiving such notice shall agree
upon one or more such mediators with ten (10) days of receipt of such
notice and a mediation will be scheduled as soon as feasible between the
parties and their respective advisors, and the parties and their advisors will
cooperate fully with respect to sharing of information and attendance at
meetings in order to seek resolution. 
The parties will share mediation expenses with the party requesting the
mediation, paying one-half of such expense of the mediator fees and the other
party paying the other one-half of such expenses.

 

c.     If resolution of the matters between the parties cannot be
resolved in mediation within twenty (20) days of the selection of a mediator by
the party receiving such notice, then the matter shall be presented to binding
arbitration through JAMS/Endispute in San Diego, California, under the
then current applicable rules of JAMS/Endispute.  Each party shall be responsible for its or
his own costs and attorneys’ fees in connection with the arbitration.

 

15.   Complete Defense.  This Agreement may be pleaded as a full and
complete defense against any action, suit or proceeding which may be
prosecuted, instituted or attempted by either party in breach thereof relating
to any of the claims released hereby.

 

16.   Severability.  If any provision of this Agreement, or part
thereof, is held invalid, void or voidable as against public policy or
otherwise, the invalidity shall not affect other provisions, or parts thereof,
which may be given effect without the invalid provision or part.  To this extent, the provisions, and parts
thereof, of this Agreement are declared to be severable.

 

5

 

17.   No Admission of Liability.  It is understood that this Agreement is not
an admission of any liability by the Employer.

 

18.   Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective heirs, legal
representatives, successors and assigns.

 

19.   Counterparts.  This Agreement may be signed in
counterparts.  A facsimile signature
shall have the same force and effect as an original signature.

 

Employee and the Employer
have read the foregoing Agreement and know its contents and fully understand it.  Employee and the Employer acknowledge that
they have fully discussed this Agreement with their respective attorneys to the
extent desired, or have had the opportunity to do so, and fully understand the
consequences of this Agreement.  No party
is being influenced by any statement made by or on behalf of any of the other
party to this Agreement.  Employee and
the Employer have relied and are relying solely upon his or its own judgment,
belief and knowledge of the nature, extent, effect and consequences relating to
this Agreement and/or upon the advice of their own legal counsel concerning the
consequences of this Agreement.

 

IN WITNESS WHEREOF, the undersigned have executed this Agreement on the
dates shown below.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [INSERT EMPLOYEE
  NAME]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1st Pacific Bank of California:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1st Pacific Bancorp:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  
						

 

6

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