Document:

sybx-ex1031_660.htm

CONFIDENTIAL TREATMENT REQUESTED

 

P-6671 SOW 2 Rev l for Facility Use (Suite 3 May 2019 to Dec 2022)
CONFIDENTIAL

Exhibit 10.31

 

 

 

 

 

Proposal P-6671 (SOW 2 Revision 1) For

 

Statement of Work for Azzur of New England Facility Use
(Suite 3 – May 1, 2019 to December 31, 2022)

 

1 

Portions of this Exhibit, indicated by the mark “[***]”, were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

CONFIDENTIAL TREATMENT REQUESTED

 

P-6671 SOW 2 Rev l for Facility Use (Suite 3 May 2019 to Dec 2022)
CONFIDENTIAL

THIS STATEMENT OF WORK #2 Rev 1 (the “Statement of Work”) by and between Synlogic Operating Company, Inc. (“Synlogic”) and Azzur Group (d/b/a Azzur of New England LLC) (“Service Provider”), will be effective as of the last date of signature below, and upon execution will be incorporated into the Master Contract Services Agreement between Synlogic and Service Provider dated 08 September 2018 (the “Agreement”). Capitalized terms used in this Statement of Work will have the same meaning as set forth in the Agreement.

 

 

Table of Contents

	
Section 1 – Background/Scope
	
3

	
Section 2 – Technical Requirements
	
3

	
Section 3 – Detailed Estimate
	
4

	
Section 4 – Change History
	
9

	
Proposed Suite 3 Layout
	
10

2 

Portions of this Exhibit, indicated by the mark “[***]”, were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

CONFIDENTIAL TREATMENT REQUESTED

 

P-6671 SOW 2 Rev l for Facility Use (Suite 3 May 2019 to Dec 2022)
CONFIDENTIAL

Section 1 – Background/Scope

Upon execution of this Statement of Work and initiation of a purchase order, Azzur will commence performing this Services set forth in this Statement of Work. This Statement of Work is for the use of Azzur of New England LLC’s Waltham cleanroom suite 3 that is planned to be built in the existing space located at 411 Waverley Oaks Rd., #126, Waltham, MA 02452 (see Layout Diagram Attached). The proposed clean room 3 is to be appropriately designed to allow for future expansion to include a [***]. Azzur will not subcontract use of cleanroom 3 or the performance of any Services under this Statement of Work to a 3rd party without Synlogic’s written approval.

Section 2 – Technical Requirements

AZZUR personnel will be experienced with FDA facility compliance expectations. AZZUR has based this Statement of Work upon the following documents.

	
 
	
•
	
Code of Federal Regulations Title 21 Part 210 – Current Good Manufacturing Practice in the Manufacturing, Processing, Packing, or Holding of Drugs; General

	
 
	
•
	
Code of Federal Regulations Title 21 Part 211 – Current Good Manufacturing Practice for Finished Pharmaceutical

	
 
	
•
	
ASTM E-2500 – 07 – Standard Guide for Specification, Design, and Verification of Pharmaceutical and Biopharmaceutical Manufacturing Systems and Equipment

	
 
	
•
	
ISPE Good Practice Guide – Applied Risk Management for Commissioning and Qualification

	
 
	
•
	
ISPE Good Practice Guide – Science and Risk-Based Approach for the Delivery of Facility Systems and Equipment

	
 
	
•
	
ISPE Good Practice Guide – Good Engineering Practices

	
 
	
•
	
PDA Technical Report 56 – Application of Phase Appropriate Quality System and cGMP to the Development of Therapeutic Protein Drug Substance

Synlogic’s personnel using the classified areas are to be trained on Azzur SOPs on gowning, personnel movement, material control etc.

3 

Portions of this Exhibit, indicated by the mark “[***]”, were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

CONFIDENTIAL TREATMENT REQUESTED

 

P-6671 SOW 2 Rev l for Facility Use (Suite 3 May 2019 to Dec 2022)
CONFIDENTIAL

Section 3 – Detailed Estimate

	
a)
	
Fixed Priced Costs – Cleanroom Use

The proposed cleanroom (Suite 3) for use by Synlogic includes a total of approximately 700 sq ft with [***]. The location of this proposed new cleanroom suite 3 is an expansion into the existing warehouse space located at 411 Waverley Oaks Rd., #126, Waltham, MA 02452.

The following items are included in the cost of the cleanroom use:

	
 
	
•
	
Access to qualified/maintained core and gowning areas – Qualified to ISO standards

	
 
	
o
	
All entry/exit door to classified spaces will be interlocked

	
 
	
o
	
Room differential pressures which will meet [***] classification

	
 
	
o
	
Temperature specification range of [***] with operation specification control of [***] 

	
 
	
o
	
Humidity specification range of [***] with operational control at [***]

	
 
	
o
	
Differential pressure, temperature and humidity will be continually monitored using a validated controlled environmental monitoring system (CEMS) on a routine basis

	
 
	
•
	
Cleanroom cleaning

	
 
	
o
	
Weekly – Horizontal and vertical surfaces including wiped using IPA, floors vacuumed and mopped using the latest version of the following approved cleaning solution [***]

	
 
	
o
	
Monthly – Same as weekly cleaning followed by second cleaning using approved cleaning solution on all surfaces [***]

	
 
	
o
	
Quarterly (once every 3 months) – Same as monthly cleaning [***]

	
 
	
o
	
Triple clean – Quarterly cleaning performed 3 times. Performed on an as needed basis between campaigns or at Synlogic’s request.

	
 
	
•
	
Security and badge access control

	
 
	
•
	
Back-up power

	
 
	
•
	
Routine Environmental Monitoring

4 

Portions of this Exhibit, indicated by the mark “[***]”, were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

CONFIDENTIAL TREATMENT REQUESTED

 

P-6671 SOW 2 Rev l for Facility Use (Suite 3 May 2019 to Dec 2022)
CONFIDENTIAL

	
 
	
o
	
Weekly TAP, Viable Air and Surface Monitoring – Additional environmental monitoring may be completed upon request as time & materials.

	
 
	
•
	
Utilities

	
 
	
o
	
Power, water (hand washing sink)

	
 
	
•
	
Pest Control

	
 
	
•
	
Waste Disposal (Biological, Hazardous, Non-Hazardous)

	
 
	
•
	
BSC certification/maintenance

	
 
	
•
	
Any other repair or maintenance on all aspects of the classified space (e.g. HVAC maintenance, routine repairs). Such events will require downtime in terms of operations and will be scheduled based on Synlogic’s needs.

	
b)
	
Fixed Priced Costs – Storage

Storage space is available on a monthly basis and includes the following:

	
 
	
•
	
Dedicated storage location ([***])

	
 
	
•
	
Temperature and humidity will be continually monitored using a validated controlled environmental monitoring system (CEMS) on a routine basis

	
 
	
•
	
Any other repair or maintenance on the [***] storage units will require downtime in terms of operations and will be scheduled based on Synlogic’s needs.

The table below includes the all-inclusive fixed costs for cleanroom use and storage costs for each year. [***] Storage costs are based on the requirements provided by Synlogic. All costs listed in the table below are fixed costs that will be invoiced to Synlogic, at the beginning of each month irrespective of actual usage during the given month. Overages in storage space use compared to below amounts per month will be invoiced at the end of each month. The overage costs are the same as the unit costs quoted below. This SOW has been drafted for a total use duration of 44 months starting May 1st, 2019 to December 31st, 2022. The costs quoted include a price increase of [***] year over year to cover for increase in personnel, utilities and other costs.

Table 1: Fixed Costs (Cleanroom Use and Storage)

							
	
Type
	
Unit Cost/mo (2019)
	
2019 Cost
	
2020 Cost
	
2021 Cost
	
2022 Cost
	
Totals

	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

5 

Portions of this Exhibit, indicated by the mark “[***]”, were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

CONFIDENTIAL TREATMENT REQUESTED

 

P-6671 SOW 2 Rev l for Facility Use (Suite 3 May 2019 to Dec 2022)
CONFIDENTIAL

							
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

	
Totals
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

 

	
c)
	
Variable Costs – Personnel Support

Azzur personnel at various levels will support activities including project management, sampling, material receipt/release, inventory control, training and general consulting for the duration of Synlogic’s use of cleanroom 3 and associate storage and other use. These costs are variable and will be invoiced every two weeks based on actual time spent on various Synlogic related activities during that period. Timesheets will be provided with all invoices related to personnel costs. Off-hours support will be provided, as needed with advance notice and the costs are the same as detailed below. The costs quoted include a price increase of [***] year over year due to increase in salaries, benefits costs, raises etc. The table below summarized the estimated variable costs for the duration of 44 months.

Table 2: Variable Costs (Personnel Support)

								
	
Type
	
Unit Cost/hr (2019)
	
Estimated Hrs/mo
	
2019 Cost
	
2020 Cost
	
2021 Cost
	
2022 Cost
	
Totals

	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

	
Totals
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

 

	
d)
	
Variable Costs – Process Gases, Shipping, Consumables, Liquid Nitrogen

This section provides the standard costs for use of process gases, shipping, consumables and liquid nitrogen at the Azzur site in Waltham.

The following items are included in these costs:

	
 
	
•
	
Access to process gases ([***]). Azzur will house and maintain gas cylinders for Synlogic use. Process gases will be piped into the cleanroom for use.

	
 
	
•
	
[***] during processing for freezing steps.

	
 
	
•
	
Shipping of materials to and from the Azzur site using an Azzur van.

The table below includes the costs of all items listed above for the duration of the project. These costs are variable and will be invoiced at the end of every month based on actual usage during that period. The costs quoted include a price increase of [***] year over year due to increase in 

6 

Portions of this Exhibit, indicated by the mark “[***]”, were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

CONFIDENTIAL TREATMENT REQUESTED

 

P-6671 SOW 2 Rev l for Facility Use (Suite 3 May 2019 to Dec 2022)
CONFIDENTIAL

rent, personnel costs, utilities etc. The table below summarized the estimated variable costs for the duration of 44 months.

Table 3: Variable Costs [***]

								
	
Type
	
Unit Cost/Mo (2019)
	
Estimated Units or events/mo
	
2019 Cost
	
2020 Cost
	
2021 Cost
	
2022 Cost
	
Totals

	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

	
Totals
	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

 

*Consumables will be invoiced based on [***] for storage, handling and related costs. Estimated unit cost is an average amount per month.

The below table shows the total estimated project costs based on the fixed and estimated variable costs shown in tables above.

Table 4: Overall Project Cost Estimate for 44 Months

					
	
Category
	
Source
	
Type and Invoicing
	
Total Costs
	
Notes/Assumptions

	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

	
[***]
	
[***]
	
[***]
	
[***]
	
[***]

	
GRAND TOTAL
	
$4,785,040
	
 

 

Right of First Refusal

Synlogic has the first right of refusal to rent Cleanroom Suite 3 following December 31st, 2022. Each time that Azzur intends to rent Cleanroom Suite 3 to an alternate client party during the 6-month period after December 31, 2022, Azzur will first promptly notify Synlogic and offer the opportunity to rent Cleanroom Suite 3 on substantially similar terms as Azzur offered to the third party. Synlogic will notify Azzur of its decision to rent Cleanroom Suite 3 on substantially similar terms as Azzur offered to the third party within 15 days after receiving Azzur’s notice. If Synlogic does not give written notice to Azzur of its intent to rent Cleanroom Suite 3 within such 15-day period, Azzur will be free to rent Cleanroom Suite 3 to such alternate client without further obligation to Synlogic.

Option to Extend

Synlogic has the option to extend beyond the current end date of this SOW (Dec 2022) provided a letter of intent to extend for a minimum of 3 months at least 6 month before the end date and a new SOW for the extension signed at least 3 months prior to the end date.

7 

Portions of this Exhibit, indicated by the mark “[***]”, were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

CONFIDENTIAL TREATMENT REQUESTED

 

P-6671 SOW 2 Rev l for Facility Use (Suite 3 May 2019 to Dec 2022)
CONFIDENTIAL

Early Termination of Contract

At any time during the duration of Cleanroom Suite 3 rental (May 1st, 2019 to December 31st, 2022), if Synlogic anticipates having to terminate this contract for the rental duration early, it will provide a written notice to Azzur at least 4 months in advance of the effective date of the termination.

Option to Sub-lease Cleanroom

At any time during the duration of Cleanroom 3 rental, if Synlogic anticipates not using the Cleanroom 3, a written notice will be provided at least 3 months in advance to the non-occupancy start date, to Azzur. In such an instance, Azzur will make efforts to find an alternate client to occupy the space for the duration that Cleanroom 3 remains unoccupied. Provided an alternate client is available and willing to occupy the space, Azzur will not charge Synlogic for the duration the alternate client is occupying Cleanroom 3. If Azzur is unable to find an alternate client to occupy Cleanroom 3, Azzur will continue to invoice Synlogic based on the terms of this SOW.

Option to use Alternate Cleanroom, Termination in Event Cleanroom Suite 3 is not Available

Azzur shall inform Synlogic within 2 business days of the delivery of the prefabricated cleanroom suite 3 and related equipment for humidity control to Azzur’s facility located at 411 Waverley Oaks Rd., #126, Waltham, MA 02452. In the event that the new cleanroom suite 3 is anticipated to not be ready prior to the start date of use (May 1st, 2019), the existing Cleanroom Suite 1 will be offered to Synlogic, at its election, as a back-up option starting July 1st, 2019, on the terms set out in Proposal P-6454 (SOW No. 1). This determination will be made on the later of March 31st, 2019 or 5 business days after notification by Azzur to Synlogic of the delivery of the prefabricated suite 3 and related equipment for humidity control, as set out above. In the event that cleanroom suite 3 is not available to Synlogic on May 1st, 2019, Synlogic shall have the option to terminate this SOW upon notice to Azzur and any deposit paid by Synlogic shall be returned to Synlogic in full within 30 days of such termination. If Synlogic does not exercise its option to terminate the SOW in the event of a delay, the parties agree that any costs relating to cleanroom suite 3 (other than the deposit) shall not be incurred until such time as the cleanroom suite 3 becomes available to Synlogic. The rates of Cleanroom Suite 1 rental will be subject to the terms and conditions outlined in SOW P-6464.

Invoicing

All invoices related to the fixed costs identified in table 1 will be generated at the start of any given month. Any overages in items listed in table 1 will be invoiced at the end of any given month. All invoices related to the variable costs identified in table 2 will be generated once every two weeks based on actual time spent during that period (with timesheets). All invoices related to the variable costs identified in table 3 will be generated every month based on actual usage for any given month. An initial invoice following acceptance of this proposal will be generated for a 

8 

Portions of this Exhibit, indicated by the mark “[***]”, were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

CONFIDENTIAL TREATMENT REQUESTED

 

P-6671 SOW 2 Rev l for Facility Use (Suite 3 May 2019 to Dec 2022)
CONFIDENTIAL

deposit of [***] of the first twelve months of fixed costs [***] within [***] of acceptance by Synlogic of this SOW. The deposit will be applied to the three invoices relating to fixed costs for February, March and April 2020. In order for Azzur to invoice the deposit amount, an initial PO for the first twelve months of fixed and variable costs listed in this SOW will be required. This initial PO will for the twelve months spanning May 2019 through April 20120 and amounts to [***]. Additional POs will need to be generated for the subsequent durations listed in this SOW on a twelve months basis, except for the last PO will be for a duration of 8 months in 2022. The below table shows the PO schedule for the entire duration of 44 months from May 2019 to Dec 2022

Table 5: PO Amounts and Schedules

			
	
PO Duration
	
Amount
	
Need by Date

	
May 2019 to April 2020
	
[***]
	
Upon signing of the SOW

	
May 2020 to April 2021
	
[***]
	
March 31st 2020

	
May 2021 to April 2022
	
[***]
	
March 31st 2021

	
May 2022 to Dec 2022
	
[***]
	
March 31st 2022

	
Total Amount
	
$4,785,040
	
 

 

Section 4 – Change History

		
	
Date
	
Reason for Change

	
22Oct2018
	
Initial Submission

	
30Nov2018
	
Revision 1

 

SOW Generated by (Azzur):

/s/ Ravi Samavedam

Date – 30Nov2018
Name: Ravi Samavedam
Title: General Manager, Azzur Group
Address: 411 Waverley Oaks Rd. #126

Waltham, MA 02452
Phone: [***]
Cell: [***]
Email: [***]

9 

Portions of this Exhibit, indicated by the mark “[***]”, were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

CONFIDENTIAL TREATMENT REQUESTED

 

P-6671 SOW 2 Rev l for Facility Use (Suite 3 May 2019 to Dec 2022)
CONFIDENTIAL

SOW Accepted by (Synlogic):

/s/ Todd Shegog

Date – 12/7/2018
Name: Todd Shegog
Title: CFO
Address: 301 Binney Street Suite 402 Cambridge, MA 02142
Phone:
Cell: [***]
Email: [***]

10 

Portions of this Exhibit, indicated by the mark “[***]”, were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

CONFIDENTIAL TREATMENT REQUESTED

 

P-6671 SOW 2 Rev l for Facility Use (Suite 3 May 2019 to Dec 2022)
CONFIDENTIAL

[***]

Cleanroom Suite 3 Proposed Expansion is into existing warehouse space of the Azzur site in Waltham.

 

 
 
11 

Portions of this Exhibit, indicated by the mark “[***]”, were omitted and have been filed separately with the Secretary of the Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.EX-10.2

 Exhibit 10.2 

CHANGE IN CONTROL AGREEMENT 

This CHANGE IN CONTROL AGREEMENT (this
“Agreement”) is entered into effective as of this 12th day of March, 2019, by and between Middlefield Banc Corp., an Ohio corporation (“Middlefield”), and Thomas G. Caldwell, its President and Chief Executive Officer (the
“Executive”). 
 WHEREAS, recognizing the contributions made and expected to be made by the
Executive to the profitability, growth, and financial strength of Middlefield and subsidiaries, intending to assure itself of the current and future continuity of management, intending to establish minimum severance benefits for certain officers and
other key employees, including the Executive, intending to ensure that officers and other key employees are not practically disabled from discharging their duties if a proposed or actual transaction involving a change in control arises, and finally
desiring to provide additional inducement for the Executive to remain in the employment of Middlefield, Middlefield entered into a Severance Agreement with the Executive dated as of January 7, 2008, 

WHEREAS, Middlefield and the Executive intend that this Agreement replace the January 7, 2008
Severance Agreement, and 
 WHEREAS, none of the conditions or events included in the definition of the
term “golden parachute payment” that is set forth in section 18(k)(4)(A)(ii) of the Federal Deposit Insurance Act [12 U.S.C. 1828(k)(4)(A)(ii)] and in Federal Deposit Insurance Corporation Rule 359.1(f)(1)(ii) [12 CFR 359.1(f)(1)(ii)]
exists or, to the best knowledge of Middlefield, is contemplated insofar as either of Middlefield or any of its subsidiaries is concerned. 

NOW THEREFORE, in consideration of these premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows. 
 1. Change in
Control. (a) If a Change in Control occurs before the Executive’s employment termination, Middlefield shall make a lump-sum payment to the Executive in cash in an amount equal to two and one-half (2.5) times the Executive’s annual compensation. For this purpose annual compensation means (x) the Executive’s annual base salary on the date of the Change in Control, plus
(y) the average of the cash bonus and cash incentive compensation earned for the three calendar years immediately preceding the year in which the Change in Control occurs, regardless of when the bonus or incentive compensation is paid
and regardless of whether the bonus or incentive compensation is subject to elective deferral or vesting. Middlefield recognizes that the bonus and incentive compensation earned by the Executive for a particular year’s service might be paid in
the year after the calendar year in which the bonus or incentive compensation is earned. The amount payable to the Executive hereunder shall not be reduced to account for the time value of money or discounted to present value. The payment required
under this section 1(a) is payable on the date of the Change in Control. The Executive shall be entitled to a payment under this section 1(a) on no more than one occasion. 

 (b) If the Executive’s employment terminates within 24 months after the Change in
Control, Middlefield shall also (x) cause the Executive to become fully vested in any non-qualified plans, programs, or arrangements in which the Executive participated if the plan, program, or
arrangement does not address the effect of a change in control and (y) continue or cause to be continued life, health, and disability insurance coverage substantially identical to the coverage maintained for the Executive before
termination and in accordance with the same schedule prevailing before employment termination. The insurance coverage may cease when the Executive becomes employed by another employer or 24 months after the Executive’s termination, whichever
occurs first. If under the terms of the life, health, or disability policy coverage maintained by Middlefield it is not possible to continue the Executive’s coverage after termination or if when employment termination occurs the Executive is a
specified employee within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended, and applicable guidance thereunder (“Code Section 409A”), if the continued insurance benefit specified in this section 1(b)
would be considered deferred compensation under Code Section 409A, and finally if an exemption from the six-month delay requirement of Code Section 409A(a)(2)(B)(i) is not available for that
insurance benefit, instead of continued insurance coverage under this section 1(b) Middlefield shall pay to the Executive in a single lump sum an amount in cash equal to the present value of the Employer’s projected cost to maintain that
particular insurance benefit had the Executive’s employment not terminated, assuming continued coverage for 24 months. The lump-sum payment shall be made 30 days after employment termination or, if a six-month delay is required by Code Section 409A, on the first day of the seventh month after the month in which the Executive’s employment terminates. 

2. Change in Control Defined. For purposes of this Agreement the term Change in Control means a change in the ownership of
Middlefield, a change in the effective control of Middlefield, or a change in the ownership of a substantial portion of the assets of Middlefield, in each case as provided under Code Section 409A and Treasury Rule
1.409A-3(i)(5), as the same may be amended from time to time. For purposes of clarification and without intending to affect the foregoing reference to Code Section 409A for the definition of Change in
Control, as of the effective date of this Agreement a Change in Control event as defined in Treasury Rule 1.409A-3(i)(5) would include the following – 

(a) Change in ownership: a change in ownership of Middlefield occurs on the date any one person or group accumulates ownership of
Middlefield stock constituting more than 50% of the total fair market value or total voting power of Middlefield stock, or 
 (b) Change
in effective control: (x) any one person or more than one person acting as a group acquires within a 12-month period ownership of Middlefield stock possessing 30% or more of the total voting
power of Middlefield stock, or (y) a majority of Middlefield’s board of directors is replaced during any 12-month period by directors whose appointment or election is not endorsed in advance
by a majority of Middlefield’s board of directors, or 

  
 2 

 (c) Change in ownership of a substantial portion of assets: a change in ownership of
a substantial portion of Middlefield’s assets occurs if in a 12-month period any one person or more than one person acting as a group acquires from Middlefield assets having a total gross fair market
value equal to or exceeding 40% of the total gross fair market value of all of Middlefield’s assets immediately before the acquisition or acquisitions. For this purpose, gross fair market value means the value of Middlefield’s assets, or
the value of the assets being disposed of, determined without regard to any liabilities associated with the assets. 
 3. No
Benefits After Termination with Cause. (a) Despite anything in this Agreement to the contrary, the Executive shall not be entitled to benefits under this Agreement if the Executive’s employment terminates with Cause. For purposes of
this Agreement the term Cause means the Executive shall have committed any of the following acts – 
 1) an act of
fraud, embezzlement, or theft while employed by Middlefield or a subsidiary, or conviction of the Executive for or plea of no contest to a felony or conviction of or plea of no contest to a misdemeanor involving moral turpitude, or the actual
incarceration of the Executive for 45 consecutive days or more, or 
 2) gross negligence, insubordination, disloyalty, or
dishonesty in the performance of the Executive’s duties as an officer of Middlefield or a subsidiary; willful or reckless failure by the Executive to adhere to Middlefield’s or subsidiary’s written policies; intentional wrongful
damage by the Executive to the business or property of Middlefield or subsidiary, including without limitation its reputation, which in Middlefield’s sole judgment causes material harm to Middlefield or subsidiary; breach by the Executive of
fiduciary duties to Middlefield and its stockholders, whether in the Executive’s capacity as an officer or as a director of Middlefield or subsidiary, or 

3) removal of the Executive from office or permanent prohibition of the Executive from participating in the affairs of
Middlefield’s subsidiary bank or banks by an order issued under section 8(e)(4) or (g)(1) of the Federal Deposit Insurance Act, 12 U.S.C. 1818(e)(4) or (g)(1), or 

4) intentional wrongful disclosure of secret processes or confidential information of Middlefield or affiliates, which in
Middlefield’s sole judgment causes material harm to Middlefield or affiliates, or 
 5) any actions that have caused the
Executive to be terminated for cause under any employment agreement existing on the date hereof or hereafter entered into between the Executive and Middlefield or a subsidiary, or 

6) the occurrence of any event that results in the Executive being excluded from coverage, or having coverage limited for the
Executive as compared to other executives of Middlefield or affiliates, under a blanket bond or other fidelity or insurance policy covering directors, officers, or employees, or 

  
 3 

 7) intentional wrongful engagement in any competitive activity. For purposes
of this Agreement, competitive activity means the Executive’s participation, without the consent of Middlefield’s board of directors, in the management of any business enterprise if (x) the enterprise engages in substantial and
direct competition with Middlefield, (y) the enterprise’s revenues derived from any product or service competitive with any product or service of Middlefield or a subsidiary amounted to 10% or more of the enterprise’s revenues
for its most recently completed fiscal year, and (z) Middlefield’s revenues from the product or service amounted to 10% of Middlefield’s revenues for its most recently completed fiscal year. A competitive activity does not
include mere ownership of securities in an enterprise and the exercise of rights appurtenant thereto, provided the Executive’s share ownership does not represent practical or legal control of the enterprise. For this purpose, ownership of less
than 5% of the enterprise’s outstanding voting securities shall conclusively be presumed to be insufficient for practical or legal control, and ownership of more than 50% shall conclusively be presumed to constitute practical and legal control.

 (b) For purposes of this Agreement, no act or failure to act on the Executive’s part shall be deemed to have been intentional if it
was due primarily to an error in judgment or negligence. An act or failure to act on the Executive’s part shall be considered intentional if it is not in good faith and if it is without a reasonable belief that the action or failure to act is
in Middlefield’s best interests. Any act or failure to act based upon authority granted by resolutions duly adopted by the board of directors or based upon the advice of counsel for Middlefield shall be conclusively presumed to be in good faith
and in Middlefield’s best interests. For purposes of this Agreement the term subsidiary means any entity in which Middlefield directly or indirectly beneficially owns 50% or more of the outstanding voting securities. 

(c) The Executive shall not be deemed under this Agreement to have been terminated with Cause unless and until there is delivered to the
Executive a copy of a resolution duly adopted by the affirmative vote of at least three-fourths (3⁄4) of the directors (excluding the Executive) of Middlefield then
in office at a meeting of the board of directors called and held for such purpose, which resolution shall (x) contain findings that, in the good faith opinion of the board, the Executive has committed an act constituting Cause and
(y) specify the particulars thereof. Notice of that meeting and the proposed determination of Cause shall be given to the Executive a reasonable time before the board’s meeting. The Executive and the Executive’s counsel (if the
Executive chooses to have counsel present) shall have a reasonable opportunity to be heard by the board at the meeting. Nothing in this Agreement limits the Executive’s or beneficiaries’ right to contest the validity or propriety of the
board’s determination of Cause, and they shall have the right to contest the validity or propriety of the board’s determination of Cause even if that right does not exist under any employment agreement of the Executive. 

  
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 4. No Benefits after Termination Because of Death or Disability. Despite
anything in this Agreement to the contrary, the Executive shall not be entitled to benefits under this Agreement if the Executive dies while actively employed by Middlefield or a subsidiary or if the Executive becomes totally disabled while actively
employed by Middlefield or a subsidiary. For purposes of this Agreement, the term totally disabled means that because of injury or sickness the Executive is unable to perform the Executive’s duties. The benefits, if any, payable to the
Executive or the Executive’s beneficiary or estate relating to the Executive’s death or disability shall be determined solely by such benefit plans or arrangements as Middlefield or subsidiary may have with the Executive relating to death
or disability, not by this Agreement. 
 5. Term of Agreement. The initial term of this Agreement shall be for a period of
three years, commencing on the effective date. On the first anniversary of the effective date of this Agreement and on each anniversary thereafter, this Agreement shall be extended automatically for one additional year, unless Middlefield’s
board of directors gives notice to the Executive in writing at least 90 days before the anniversary that the term of this Agreement will not be extended. If the board of directors determines not to extend the term, it shall promptly notify the
Executive. References herein to the term of this Agreement mean the initial term and extensions of the initial term. If the board of directors decides not to extend the term of this Agreement, this Agreement shall nevertheless remain in force until
its term expires. 
 6. This Agreement Is Not an Employment Contract. The parties hereto acknowledge and agree that
(x) this Agreement is not a management or employment agreement and (y) nothing in this Agreement shall give the Executive any rights or impose any obligations to continued employment by Middlefield or any subsidiary or
successor of Middlefield. 
 7. Payment of Legal Fees. Middlefield is aware that after a Change in Control management could
cause or attempt to cause Middlefield to refuse to comply with its obligations under this Agreement, or could institute or cause or attempt to cause Middlefield to institute litigation seeking to have this Agreement declared unenforceable, or could
take or attempt to take other action to deny Executive the benefits intended under this Agreement. In these circumstances the purposes of this Agreement would be frustrated. Middlefield desires that the Executive not be required to incur the
expenses associated with the enforcement of rights under this Agreement, whether by litigation or other legal action, because the cost and expense thereof would substantially detract from the benefits intended to be granted to the Executive
hereunder. Middlefield desires that the Executive not be forced to negotiate settlement of rights under this Agreement under threat of incurring expenses. Accordingly, if after a Change in Control occurs it appears to the Executive that
(x) Middlefield has failed to comply with any of its obligations under this Agreement, or (y) Middlefield or any other person has taken any action to declare this Agreement void or unenforceable, or instituted any litigation
or other legal action designed to deny, diminish, or to recover from the Executive the benefits intended to be provided to the Executive hereunder, Middlefield irrevocably authorizes the Executive from time to time to retain counsel of the
Executive’s choice, at Middlefield’s expense as provided in this section 7, to represent the Executive in the initiation or defense of any litigation or other legal action, whether by or against Middlefield or any director, officer,
stockholder, or other person affiliated with Middlefield, in any jurisdiction. Despite any existing or previous attorney-client relationship between Middlefield and any counsel chosen by the Executive under this section 7, Middlefield irrevocably
consents to the Executive entering into an attorney-client relationship 

  
 5 

 
with that counsel and Middlefield and the Executive agree that a confidential relationship shall exist between the Executive and that counsel. The fees and expenses of counsel selected from time
to time by the Executive as provided in this section shall be paid or reimbursed to the Executive by Middlefield on a regular, periodic basis upon presentation by the Executive of a statement or statements prepared by counsel in accordance with
counsel’s customary practices, up to a maximum aggregate amount of $500,000, whether suit be brought or not, and whether or not incurred in trial, bankruptcy, or appellate proceedings. Middlefield’s obligation to pay the Executive’s
legal fees under this section 7 operates separately from and in addition to any legal fee reimbursement obligation Middlefield may have with the Executive under any other agreement. Despite any contrary provision of this Agreement however,
Middlefield shall not be required to pay or reimburse the Executive’s legal expenses if doing so would violate section 18(k) of the Federal Deposit Insurance Act [12 U.S.C. 1828(k)] and Rule 359.3 of the Federal Deposit Insurance Corporation
[12 CFR 359.3]. 
 8. Withholding of Taxes. Middlefield may withhold from any benefits payable under this Agreement all
Federal, state, local or other taxes as may be required by law, governmental regulation, or ruling. 
 9. Successors and
Assigns. (a) This Agreement is binding on successors. This Agreement shall be binding upon Middlefield and any successor to Middlefield, including any persons acquiring directly or indirectly all or substantially all of the business
or assets of Middlefield by purchase, merger, consolidation, reorganization, or otherwise. But this Agreement and Middlefield’s obligations under this Agreement are not otherwise assignable, transferable, or delegable by Middlefield. By
agreement in form and substance satisfactory to the Executive, Middlefield shall require any successor to all or substantially all of the business or assets of Middlefield expressly to assume and agree to perform this Agreement in the same manner
and to the same extent Middlefield would be required to perform had no succession occurred. 
 (b) This Agreement is enforceable by the
Executive’s heirs. This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, and legatees. 

(c) This Agreement is personal and is not assignable. This Agreement is personal in nature. Without written consent of the other party,
neither party shall assign, transfer, or delegate this Agreement or any rights or obligations under this Agreement except as expressly provided in this section 9. Without limiting the generality of the foregoing, the Executive’s right to
receive payments hereunder is not assignable or transferable, whether by pledge, creation of a security interest, or otherwise, except for a transfer by Executive’s will or by the laws of descent and distribution. If the Executive attempts an
assignment or transfer that is contrary to this section 9, Middlefield shall have no liability to pay any amount to the assignee or transferee. 

  
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 10. Notices. Any notice under this Agreement shall be deemed to have been
effectively made or given if in writing and personally delivered, delivered by mail properly addressed in a sealed envelope, postage prepaid by certified or registered mail, or if delivered by a nationally recognized overnight delivery service.
Unless otherwise changed by notice, notice shall be properly addressed to the Executive if addressed to the address of the Executive on the books and records of Middlefield at the time of the delivery of the notice, and properly addressed to
Middlefield if addressed to the board of directors, Middlefield Banc Corp., 15985 East High Street, Middlefield, Ohio, 44062-0035 Attention: Corporate Secretary. 

11. Captions and Counterparts. The headings and subheadings used in this Agreement are included solely for convenience and shall
not affect the interpretation of this Agreement. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same agreement. 

12. Amendments and Waivers. No provision of this Agreement may be modified, waived, or discharged unless the waiver,
modification, or discharge is agreed to in a writing signed by the Executive and by Middlefield. No waiver by either party hereto at any time of any breach by the other party hereto or waiver of compliance with any condition or provision of this
Agreement to be performed by the other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 

13. Severability. The provisions of this Agreement are severable. The invalidity or unenforceability of any provision shall not
affect the validity or enforceability of the other provisions of this Agreement. Any provision held to be invalid or unenforceable shall be reformed to the extent and solely to the extent necessary to make it valid and enforceable. 

14. Governing Law. The validity, interpretation, construction, and performance of this Agreement shall be governed by and
construed in accordance with the substantive laws of the State of Ohio, without giving effect to the principles of conflict of laws of such state. 

15. Entire Agreement. This Agreement constitutes the entire agreement between Middlefield and the Executive concerning the
subject matter. No rights are granted to the Executive under this Agreement other than those specifically set forth. No agreements or representations, oral or otherwise, expressed or implied concerning the subject matter hereof have been made by
either party that are not set forth expressly in this Agreement. This Agreement supersedes and replaces in its entirety the January 7, 2008 Severance Agreement between Middlefield and the Executive, and from and after the date of this Agreement
the January 7, 2008 Severance Agreement shall be of no further force or effect. 
 16. No Mitigation Required. Middlefield
hereby acknowledges that it will be difficult and could be impossible (x) for the Executive to find reasonably comparable employment after termination and (y) to measure the amount of damages the Executive suffers as a result
of termination. Additionally, Middlefield acknowledges that its general severance pay plans do not provide for mitigation, offset, or reduction of any severance payment received thereunder. Middlefield further acknowledges that the payment of
benefits by Middlefield under 

  
 7 

 
this Agreement is reasonable and shall be liquidated damages. The Executive shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment
or otherwise, nor will any profits, income, earnings, or other benefits from any source whatsoever create any mitigation, offset, reduction, or any other obligation on the part of the Executive hereunder or otherwise. 

17. Compliance with Internal Revenue Code Section 409A. (a) Interpretation. The intent of the
parties is that payments and benefits under this Agreement comply with Code Section 409A or comply with an exemption of the application of Code Section 409A and, accordingly, all provisions of this Agreement shall be construed in a manner
consistent with the requirements for avoiding taxes or penalties under Code Section 409A. References in this Agreement to Code Section 409A include rules, regulations, and guidance of general application issued by the Department of the
Treasury under Code Section 409A. 
 (b) Action. Neither the Executive nor Middlefield shall take any action to accelerate or
delay the payment of any monies or provision of any benefits in any matter which would not be in compliance with Code Section 409A. 

(c) Separation from Service. A termination of employment shall not be deemed to have occurred for purposes of any provision of this
Agreement unless such termination is also a “separation from service” (within the meaning of Code Section 409A) and, for purposes of this Agreement, references to a “termination” or “termination of employment” or
like references shall mean separation from service. If the Executive is deemed on the date of separation from service with Middlefield to be a “specified employee,” within the meaning of that term under Code Section 409A(a)(2)(B) and
using the identification methodology selected by Middlefield from time to time, or if none, the default methodology, then with regard to any payment or benefit that is required to be delayed in compliance with Code Section 409A(a)(2)(B), such
payment or benefit shall not be made or provided prior to the earlier of (i) the expiration of the six-month period measured from the date of the Executive’s separation from service or (ii) the
date of the Executive’s death. In the case of benefits required to be delayed under Code Section 409A, however, the Executive may, to the extent permissible under Code Section 409A, pay the cost of benefit coverage, and thereby obtain
benefits, during such six-month delay period and then be reimbursed by Middlefield thereafter when delayed payments are made pursuant to the next sentence. On the first day of the seventh month following the
date of the Executive’s separation from service or, if earlier, on the date of the Executive’s death, all payments delayed pursuant to this section 17(c) (whether they would have otherwise been payable in a single sum or in installments in
the absence of such delay) shall be paid or reimbursed to the Executive in a lump sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.
If any cash payment is delayed under this section 17(c), then interest shall be paid on the amount delayed, with such interest to be calculated at the prime rate reported in The Wall Street Journal for the date of the Executive’s
termination to the date of payment. 

  
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 (d) Treatment of Installment Payments. If under this Agreement an amount is to be
paid in two or more installments, for purposes of Code Section 409A, each installment shall be treated as a separate payment. In the event any payment payable upon termination of employment would be exempt from Code Section 409A under
Treasury Rule 1.409A-1(b)(9)(iii) but for the amount of such payment, the determination of the payments to the Executive that are exempt under such provision shall be made by applying the exemption to payments
based on chronological order beginning with the payments paid closest in time on or after such termination of employment. 
 (e) Payment
Period. When, if ever, a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within ten (10) days following the date of termination”), the actual date of
payment within the specified period shall be within the sole discretion of Middlefield. 
 IN WITNESS
WHEREOF, the parties have executed this Change in Control Agreement as of the date first written above. 
  

							
	EXECUTIVE	 		 	MIDDLEFIELD BANC CORP.
				
	  
	 		 	By:	 	  

	Thomas G. Caldwell	 		 		 	James R. Heslop, II
		 		 	Its:	 	Executive Vice President and Chief Operating Officer

  
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