Document:

ex_102201.htm

Exhibit 10.2

 

 

THE BRYN MAWR TRUST COMPANY

 

EXECUTIVE CHANGE-OF-CONTROL

 

SEVERANCE AGREEMENT

 

This Agreement made as of [DATE] between The Bryn Mawr Trust Company, a Pennsylvania financial institution, subject to the provisions of the Pennsylvania Banking Code of 1965, as amended (the “Company”), and [NAME] (the “Employee”).

 

WHEREAS, the Employee has entered into an employment letter agreement of even date herewith and will be employed by the Company as its [TITLE] beginning [START DATE];

 

WHEREAS, the Company considers it essential to foster the employment of well qualified key management personnel, and, in this regard, the board of directors of the Company recognizes that, as is the case with many financial institutions, the possibility of a change of control of the Company’s publicly held parent company, Bryn Mawr Bank Corporation, (“BMBC”) may exist and that such possibility, and the uncertainty and questions which it may raise among the Company’s management, may result in the departure or distraction of key management personnel to the detriment of the Company and ultimately to the detriment of BMBC and its shareholders;

 

WHEREAS, the Boards of Directors of the Company and BMBC have determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of key members of the Company’s management to their assigned duties, without distraction in the face of potentially disturbing circumstances arising from the possibility of a change of control of the BMBC, although no such change is now contemplated; and

 

WHEREAS, in order to induce the Employee, who will be a key member of the Company’s management, to become an employee of the Company, the Company agrees that the Employee shall receive the compensation and benefits set forth in this Agreement in the event his/her employment with the Company is terminated subsequent to a “Change of Control” (as defined in Section 1 hereof) of BMBC, as a cushion against the financial and career impact on the Employee of any such Change of Control;

 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereinafter set forth and intending to be legally bound hereby, the parties hereto agree as follows:

 

1. Definitions. For all purposes of this Agreement, the following terms shall have the meanings specified in this Section, unless the context clearly otherwise requires:

 

(a) “Affiliate” and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 of the General Rules and Regulations issued under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). 

 

(b) “AIP” shall mean any Annual Incentive Plan of the Company, as in effect immediately prior to a Change of Control, or predecessor or prior plan, including the Company’s annual bonus plan applicable to Employee.

 

 

 

 

(c) “Base Salary” shall mean the total cash remuneration earned by the Employee on an annualized basis in all capacities with the Company and its Subsidiaries, including, without limitation, any amounts the payment of which has been deferred by the Employee, excluding only payments earned by or allocated to the Employee under the AIP.

 

(d) A Person shall be deemed the “Beneficial Owner” of any securities:

 

(i) that such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has the right to acquire (whether such right is exercisable immediately or only after the passage of time) pursuant to any agreement, arrangement or understanding (whether or not in writing) or upon the exercise of conversion rights, exchange rights, rights, warrants or options, or otherwise; provided, however, that a Person shall not be deemed the “Beneficial Owner” of securities tendered pursuant to a tender or exchange offer made by such Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted for payment, purchase or exchange;

 

(ii) that such Person or any of such Person’s Affiliates or Associates, directly or indirectly, has the right to vote or dispose of or has “beneficial ownership” of (as determined pursuant to Rule 13d-3 of the General Rules and Regulations issued under the Exchange Act), including without limitation pursuant to any agreement, arrangement or understanding, whether or not in writing; provided, however, that a Person shall not be deemed the “Beneficial Owner” of any security under this subsection (ii) as a result of an oral or written agreement, arrangement or understanding to vote such security if such agreement, arrangement or understanding (A) arises solely from a revocable proxy given in response to a public proxy or consent solicitation made pursuant to, and in accordance with, the applicable provisions of the General Rules and Regulations issued under the Exchange Act, and (B) is not then reportable by such Person on Schedule 13D under the Exchange Act (or any comparable or successor report); or

 

(iii) that are beneficially owned, directly or indirectly, by any other Person (or any Affiliate or Associate thereof) with which such Person (or any of such Person’s Affiliates or Associates) has any agreement, arrangement or understanding (whether or not in writing) for the purpose of acquiring, holding, voting (except pursuant to a revocable proxy as described in the proviso to subsection (ii) above) or disposing of any voting securities of BMBC; provided, however, that nothing in this Section 1(d) shall cause a Person engaged in business as an underwriter of securities to be the “Beneficial Owner” of any securities acquired through such Person’s participation in good faith in a firm commitment underwriting until the expiration of forty (40) days after the date of such acquisition.

 

(e) “Board” shall mean the board of directors of the Company or BMBC as the context of this Agreement indicates.

 

 

(f) “Change of Control” shall be deemed to have taken place if (i) any Person (except BMBC, any Subsidiary of BMBC, any employee benefit plan of BMBC or the Company, any Person or entity organized, appointed or established by BMBC or any Subsidiary of BMBC for or pursuant to the terms of any such employee benefit plan) together with all Affiliates and Associates of such Person, shall become the Beneficial Owner in the aggregate of 25% or more of the common stock of BMBC then outstanding, or (ii) during any twenty-four month period, individuals who at the beginning of such period constituted the Board of BMBC or the Company cease, for any reason, to constitute a majority thereof, unless the election, or the nomination for election by BMBC’s or the Company’s shareholders, as the case may be, of each director who was not a director at the beginning of such period was approved by a vote of at least two-thirds of the directors in office at the time of such election or nomination, who were directors at the beginning of such period.

 

 

 

 

(g) “Common Stock” shall mean the outstanding common stock of BMBC.

 

(h) “Person” shall mean any individual, firm, corporation, partnership or other entity.

 

(i) “Separation from Service” means, the Employee’s “separation from service”, within the meaning of Section 409A of the Code, from the Company To the extent required by the definition of “separation from service” under Section 409A of the Code, “Separation from Service” shall mean the Employee’s separation from service (as so defined) from both the Company and all other persons with whom the Company would be considered a “single employer under Section 414(b) or (c) of the Code, but replacing the phrase “at least 80 per cent” with the phrase “at least 50%” where it appears in Section 1563(a)(1), 2, and 3 of the Code and in the regulations under Section 414(c).

 

(j) “Specified Employee” means an individual who is a “specified employee” with respect to the Company within the meaning of Section 409A of the Code.”

 

(k) “Stock Plan” shall mean (i) BMBC’s Amended and Restated 2010 Long Term Incentive Plan; and (ii) any other stock option plan, stock option and stock appreciation rights plan, stock bonus plan, stock grant plan, or similar benefit plan established by BMBC and which exists for the benefit of the Employee at the time of a Change in Control.

 

(l) “Subsidiary” shall have the meaning ascribed to such term in Rule 12b-2 of the General Rules and Regulations issued under the Exchange Act.

 

(m) “Termination Date” shall mean the date of receipt of the Notice of Termination described in Section 2 hereof or any later date specified therein, as the case may be.

 

(n) “Termination upon a Change of Control” shall mean a Separation from Service upon or within two (2) years after a Change of Control either:

 

(i) initiated by the Company for any reason other than (x) the Employee’s continuous illness, injury or incapacity for a period of six consecutive months or (y) for “cause,” which shall mean misappropriation of funds, habitual insobriety, substance abuse, conviction of a crime involving moral turpitude, or gross negligence in the performance of his/her duties, which gross negligence has had a material adverse effect on the business, operations, assets, properties or financial condition of the Company and its Subsidiaries or BMBC and its Subsidiaries taken as a whole; or

 

 

 

 

(ii) initiated by the Employee following one or more of the following occurrences:

 

(A) a significant reduction by the Company or BMBC (if the Employee is an officer of BMBC) of the authority, duties or responsibilities of the Employee immediately prior to the Change of Control;

 

(B) any removal of the Employee from his/her officer position with BMBC, the Company and its Subsidiaries held by him/her immediately prior to the Change of Control, except in connection with promotions to higher office;

 

(C) a reduction by the Company in the Employee’s Base Salary as in effect immediately prior to the Change of Control;

 

(D) revocation or any modification of the AIP or Stock Plan, or any action taken pursuant to the terms of either plan, which materially (x) reduces the opportunity to receive compensation under any or both of such plans of equivalent amounts received by the Employee during the three (3) fiscal years immediately preceding the Change of Control, subject to the right of the Boards of Directors of BMBC or the Company, as appropriate, to establish in a manner consistent with past practice, prior to the Change of Control, reasonable goals under the AIP or Stock Plan, (y) reduces the compensation payable to the Employee under either or both of such plans but which does not effect comparable reductions in the compensation payable to the other participants in such plans, or (z) increases the compensation payable to other participants in either or both of such plans but which does not effect corresponding increases in the amount of compensation payable to the Employee;

 

(E) a transfer of the Employee, without his/her express written consent, to a location which is outside the Greater Philadelphia area (or the general area in which his/her principal place of business immediately preceding the Change of Control may be located at such time, if other than Bryn Mawr, Pennsylvania), or which is otherwise an unreasonable commuting distance from the Employee’s principal residence at the date of the Change of Control;

 

(F) the Employee being required to undertake business travel to an extent substantially greater than the Employee’s business travel obligations immediately prior to the Change of Control; or

 

(G) any failure of the Company to comply with and satisfy Section 13 of this Agreement.

 

2. Notice of Termination. Any Termination upon a Change of Control shall be communicated by a Notice of Termination to the other party hereto given in accordance with Section 14 hereof. For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) briefly summarizes the facts and circumstances deemed to provide a basis for termination of the Employee’s employment under the provision so indicated, and (iii) if the Termination Date is other than the date of receipt of such notice, specifies the Termination Date (which date shall not be more than 15 days after the giving of such notice).

 

3. Severance Compensation upon Termination. Subject to the provisions of Section 10 hereof, in the event of the Employee’s Termination upon a Change of Control, the Company shall pay to the Employee, within fifteen (15) days after the Termination Date (or as soon as possible thereafter in the event that the procedures set forth in paragraph (b) of Section 11 hereof cannot be completed within fifteen (15) days) an amount in cash equal to three (3) times the sum of the Employee’s Base Salary in effect either immediately prior to the Separation from Service or immediately prior to the Change of Control, whichever is higher.

 

 

 

 

4. Other Payments. Subject to the provisions of Section 10 hereof, in the event of the Employee’s Termination upon a Change of Control, the Company shall:

 

(a) pay to the Employee within fifteen (15) days after the Termination Date:

 

(i) unless the Employee has exercised such options, an amount equal to the excess, if any, of the aggregate fair market value of the shares of BMBC’s Common Stock subject to all stock options outstanding and unexercised as of the Termination Date, whether vested or unvested, granted to the Employee under the Stock Plan, over the aggregate exercise price of all such stock options. For purposes of this paragraph, fair market value shall mean the highest of (x) the closing price of BMBC’s Common Stock on the last business day the Common Stock was traded immediately preceding the Termination Date, if such Common Stock is publicly traded at such date, (y) if such Common Stock is not publicly traded at the Termination Date, the value determined by an independent appraiser, such appraiser to be selected by the Employee and to be reasonably satisfactory to the Company (the fees and expenses of such appraiser to be borne by the Company), or (z) the highest per share price of BMBC’s Common Stock paid (in connection with the Change of Control or at any time thereafter) by the Person or group whose acquisition of shares of Common Stock of BMBC has given rise to a Change of Control;

 

(ii) to the extent not theretofore paid, the Employee’s Base Salary through the Termination Date and a further amount equal to the Employee’s salary in lieu of his/her unused vacation pay, if any, both calculated at the salary rate in effect on the Termination Date, or, if higher, at the highest rate in effect at any time within the 90-day period preceding the Termination Date;

 

(iii) to the extent not theretofore paid, an amount equal to all awards earned by the Employee under the AIP in respect of complete plan periods prior to the Termination Date (excluding all amounts the payment of which was previously deferred under such plans which shall be payable in accordance with their terms). In the event that the Company’s financial statements for any fiscal years, included in such plan periods, have not yet been completed at the Termination Date, the Company shall pay to the Employee the amounts due hereunder as soon as possible thereafter;

 

(iv) payment in respect of the AIP for the uncompleted fiscal year during which Separation from Service occurs determined by multiplying the amount determined in Section 4(a)(iii) by a fraction, the numerator of which shall be the number of days between the Termination Date and the last day of the last full fiscal year prior to the Termination Date and the denominator of which shall be Three Hundred Sixty Five (365); and

 

 

(b) to the extent permitted by applicable law, continue or cause to be continued until thirty-six (36) whole months after the Termination Date, on the cost-sharing basis in effect immediately prior to the Change of Control, medical, dental, life and disability insurance benefits substantially equivalent in all material respects to and payable in the same amounts and according to the same schedule as those furnished by the Company to the Employee immediately prior to the Change of Control; provided, however, that the obligation of the Company to provide such benefits shall cease at such time as the Employee is employed on a full-time basis by a Person not owned or controlled by the Employee that provides the Employee, on substantially the same cost-sharing basis between the Company and the Employee in effect immediately prior to the Change of Control, with medical, dental, life and disability insurance benefits substantially equivalent in all material respects to those furnished by the Company and its Subsidiaries to the Employee immediately prior to the Change of Control;

 

 

 

 

(c) pay for reasonable career counseling services provided by [_________] or any such equivalent agency satisfactory to both the Company and the Employee payable in the same amounts and on the same schedule as in effect, immediately prior to the Change of Control, and payable for no more than thirty six (36) whole months after the Termination Date.

 

(d) Payments or reimbursements pursuant to subsection (b) and (d) of this Section 4 shall be subject to the following conditions:

 

(i) Payments shall be made on a calendar year basis;

 

(ii) Amounts payable with respect to a calendar year shall not affect amounts payable with respect to another calendar year; and

 

(iii) Payments with respect to expenses incurred must be made no later than the end of the calendar year following the calendar year in which they were incurred.

 

4A. Six (6) Month Delay in Payments. Notwithstanding anything in this Agreement to the contrary, if the Employee is a Specified Employee on the date of his Separation From Service, then in no event shall any amount payable to him or her be paid before the date that is six months after the date of such Separation From Service.

 

5. Establishment of Trust. Immediately upon a Change of Control as herein defined, the Company shall establish an irrevocable trust fund pursuant to a trust agreement to hold assets to satisfy its obligations hereunder. Funding of such trust fund shall be subject to the Company’s discretion, as to be set forth in the agreement pursuant to which the trust fund will be established.

 

6. Enforcement.

 

(a) In the event that the Company shall fail or refuse to make payment of any amounts due the Employee under Sections 3 and 4 hereof within the respective time periods provided therein, the Company shall pay to the Employee, in addition to the payment of any other sums provided in this Agreement, interest, compounded daily, on any amount remaining unpaid from the date payment is required under Section 3, 4 or 5, as appropriate, until paid to the Employee, at the prime rate published daily in the Wall Street Journal, each change in such rate to take effect on the effective date of the change in such prime rate.

 

(b) It is the intent of the parties hereto that the Employee not be required to incur any expenses associated with the enforcement of his/her rights under this Agreement by arbitration, litigation or other legal action because the cost and expense thereof would substantially detract from the benefits intended to be extended to the Employee hereunder. Accordingly, the Company shall pay the Employee on demand the amount necessary to reimburse the Employee in full for all expenses (including all attorneys’ fees and legal expenses) incurred by the Employee in enforcing any of the obligations of the Company under this Agreement.

 

7. No Mitigation. The Employee shall not be required to mitigate the amount of any payment or benefit provided for in this Agreement by seeking other employment or otherwise.

 

8. Nonexclusivity of Rights. Nothing in this Agreement shall prevent or limit the Employee’s continuing or future participation in or rights under any benefit, bonus, incentive or other plan or program provided by BMBC, the Company or any of its Subsidiaries or Affiliates and for which the Employee may qualify;   provided, however,  that if the Employee becomes entitled to and receives all of the payments provided for in this Agreement, the Employee agrees to waive his/her right to receive payments under any severance plan or program applicable to all employees of the Company.

 

 

 

 

9. No Set-Off. The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or other right which the Company may have against the Employee or others and the Company hereby agrees not to exercise any such rights with respect to payment due the Employee pursuant to this Agreement.

 

10. Certain Reduction of Payments.

 

(a) Anything in this Agreement to the contrary notwithstanding, in the event that it shall be determined as set forth herein that any payment or distribution by the Company to or for the benefit of the Employee, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (a “Payment”), would constitute an “excess parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and that it would be economically advantageous to the Employee to reduce the Payment to avoid or reduce the taxation of excess parachute payments under Section 4999 of the Code, the aggregate present value of amounts payable or distributable to or for the benefit of the Employee pursuant to this Agreement (such payments or distributions pursuant to this Agreement are hereinafter referred to as “Agreement Payments”) shall be reduced (but not below zero) to the Reduced Amount. The “Reduced Amount” shall be an amount expressed in present value which maximizes the aggregate present value of Agreement Payments without causing any Payment to be subject to the taxation under Section 4999 of the Code. For purposes of this Section 10, present value shall be determined in accordance with Section 280G(d)(4) of the Code.

 

(b) All determinations to be made under this Section 10 shall be made, in writing, by KPMG LLP, or the Company’s independent certified public accountant immediately prior to the Change of Control, if other than KPMG LLP, (the “Accounting Firm”), which firm shall provide its determinations and any supporting calculations in writing to both the Company and the Employee within ten (10) days of the Termination Date. Any such determination by the Accounting Firm shall be binding upon the Company and the Employee. The Employee shall in his or her sole discretion determine which and how much of the Agreement Payments shall be eliminated or reduced consistent with the requirements of this Section 10, which determination shall be made by delivery of written notice to the Company within 10 days of Employee’s receipt of the determination of the Accounting Firm. Within five (5) days after the Employee’s timely determination, the Company shall pay (or cause to be paid) or distribute (or cause to be distributed) to or for the benefit of the Employee, such amounts as are then due to the Employee under this Agreement. In the event Employee does not make such timely determination then within 15 days after Company’s receipt of the determination of the Accounting Firm, the Company in its sole discretion may pay (or cause to be paid) or distribute (or cause to be distributed) to or for the benefit of the Employee such portion of the Agreement Payments as it may deem appropriate, but no less than the Reduced Amount.

 

 

 

 

(c) As a result of the uncertainty in the application of Section 280G of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Agreement Payments, as the case may be, will have been made by the Company which should not have been made (“Overpayment”) or that additional Agreement Payments which have not been made by the Company could have been made (“Underpayment”), in each case, consistent with the calculations required to be made hereunder. Within two (2) years after the Separation from Service, the Accounting Firm shall review the determination made by it pursuant to the preceding paragraph. In the event that the Accounting Firm determines that an Overpayment has been made, any such Overpayment shall be treated for all purposes as a loan to the Employee which the Employee shall repay to the Company together with interest at the applicable Federal rate provided for in Section 7872(f)(2) of the Code (the “Federal Rate”);   provided, however,  that no amount shall be payable by the Employee to the Company if and to the extent such payment would not reduce the amount which is subject to taxation under Section 4999 of the Code. In the event that the Accounting Firm determines that an Underpayment has occurred, any such Underpayment shall be promptly paid by the Company to or for the benefit of the Employee together with interest thereon at the Federal Rate.

 

(d) All of the fees and expenses of the Accounting Firm in performing the determinations referred to in paragraphs (b) and (c) above shall be borne solely by the Company. The Company agrees to indemnify and hold harmless the Accounting Firm of and from any and all claims, damages and expenses of any nature resulting from or relating to its determinations pursuant to paragraphs (b) and (c) above, except for claims, damages or expenses resulting from the gross negligence or willful misconduct of the Accounting Firm.

 

11. Settlement of All Disputes.

 

(a) The Employee and the Company acknowledge that the Compensation Committee of the Company’s Board intends to review and approve a schedule indicating a method of calculating certain payments to be made to the Employee hereunder in the event of a Termination upon a Change of Control. In the event that the compensation plans referred to herein change prior to a Change of Control, the Compensation Committee of the Company’s Board may, prior to such Change of Control, revise the schedule to reflect such changes. The method of calculation set forth on such schedule, as so revised prior to a Change of Control, shall be followed by the parties hereto unless manifestly unfair to the Employee.

 

(b) In the event of any dispute, controversy or claim arising out of or relating to any provision of this Agreement or the Employee’s Termination upon a Change of Control, the Company shall appoint as the sole and exclusive arbiter of such dispute, controversy or claim, a committee composed of two persons who were members of the Company’s Board at any time within five (5) years prior to the Change of Control (which persons may, but need not be, directors of the Company at the time of such dispute, controversy or claim);  provided , however , that no person shall be eligible to serve thereon who (i) is at the Termination Date, or shall have been at any time within one year prior thereto, an executive officer of the Company, or (ii) shall be or have been at any time related in any manner to or otherwise affiliated with, or was first nominated by, the corporation, Person or group whose acquisition of shares of Common Stock of BMBC has given rise to a Change of Control. The decision of such committee and the award of any monetary judgment or other relief by such committee shall be final and binding upon the Employee and the Company, and shall not be subject to appeal. Judgment may be entered upon the decision and award of such committee by the Employee or the Company in any court of competent jurisdiction. The Company shall pay the persons selected pursuant to this subsection a reasonable fee for their services, and shall reimburse such persons for their expenses incurred in this capacity. In addition, the Company shall, to the maximum extent permitted by law, indemnify and hold harmless such persons of and from any and all claims, damages or expenses of any nature whatsoever relating to or arising from their activities in this capacity.

 

 

 

 

(c) In the event that the Company shall be unable to appoint the committee referred to in paragraph (b) above after good faith efforts to do so, or in the event that such committee cannot reach a unanimous agreement, any remaining dispute, controversy or claim arising out of or relating to any provision of this Agreement or the Employee’s Termination upon a Change of Control shall be settled by arbitration in the City of Philadelphia, in accordance with the commercial arbitration rules then in effect of the American Arbitration Association, before a panel of three (3) arbitrators, two (2) of whom shall be selected by the Company and the Employee, respectively, and the third of whom shall be selected by the other two arbitrators. Each arbitrator selected as provided herein is required to be or have been a director or an executive officer of a corporation whose shares of common stock were listed during at least one year of such service on the New York Stock Exchange or the American Stock Exchange or quoted on the National Association of Securities Dealers Automated Quotations System. Any award entered by the arbitrators shall be entered thereon by any party in accordance with applicable law in any court of competent jurisdiction. This arbitration provision shall be specifically enforceable. The fees of the American Arbitration Association and the arbitrators and any expenses relating to the conduct of the arbitration shall be paid by the Company.

 

(d) The party or parties challenging the right of the Employee to the benefits of this Agreement shall in all circumstances have the burden of proof.

 

12. Term of Agreement. The term of this Agreement shall be for three (3) years from the date hereof and shall automatically be extended for additional one-year periods unless written notice of termination of this Agreement is provided to the Employee by the Company at least one year prior to the expiration of the initial three (3) year term or any one-year renewal period;   provided, however,  that (i) after a Change of Control during the term of this Agreement, this Agreement shall remain in effect for a period of two (2) years and until all of the obligations of the parties hereunder are satisfied or have expired, and (ii) this Agreement shall terminate if, prior to the Change of Control, the employment of the Employee with the Company or any of its Subsidiaries shall terminate for any reason whatsoever.

 

13. Successor Company. The Company shall require any Person who acquires the majority of the Common Stock of the Company or BMBC or any successor or successors thereof (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company or BMBC, by agreement, in form and substance satisfactory to the Employee, to acknowledge expressly, in writing, that this Agreement is binding upon and enforceable against the Company or BMBC or any successor or successors thereto in accordance with the terms hereof and the instrument of transfer, and to become jointly and severally obligated with the Company to perform this Agreement, in the same manner and to the same extent that the Company would be required to perform this Agreement if no such acquisition purchaser, merger consolidation, succession or successions had taken place. Failure of the Company to obtain such agreement prior to the effectiveness of any such succession shall be a breach of this Agreement. As used in this Agreement, the Company shall mean the Company as hereinbefore defined and any such successor or successors to its business and/or assets, jointly and severally.

 

 

 

 

14. Notice. All notices and other communications required or permitted hereunder or necessary or convenient in connection herewith shall be in writing and shall be delivered personally or mailed by registered or certified mail, return receipt requested, or by overnight express courier service, as follows:

 

If to the Company, to:

The Bryn Mawr Trust Company

801 Lancaster Avenue

Bryn Mawr, PA 19010

Attention: General Counsel

 

If to the Employee, to:

 

[NAME]

[ADDRESS]

[ADDRESS]

 

 

or to such other names or addresses as the Company or the Employee, as the case may be, shall designate by notice to the other party hereto in the manner specified in this Section, or, in the case of Employee, to such other address listed as the residential address of Employee in the corporate records of the Company. Any such notice shall be deemed delivered and effective when received in the case of personal delivery, five (5) days after deposit, postage prepaid, with the U.S. Postal Service in the case of registered or certified mail, or on the next business day in the case of overnight express courier service.

 

15. Governing Law. This Agreement shall be governed by and interpreted under the laws of the Commonwealth of Pennsylvania without giving effect to any conflict of laws provisions that would apply the law of a different jurisdiction.

 

16. Contents of Agreement, Amendment and Assignment.

 

(a) This Agreement sets forth the entire understanding between the parties hereto and supersedes all prior and contemporaneous agreements with respect to the subject matter hereof[[, including, without limitation, the provisions of Section [_] of the employment letter agreement [of even date herewith] between the [__________ and Employee] (the “Employment Agreement”) as they would apply in the event of a Change of Control. For purposes of clarity, any payments made to Employee pursuant to the provisions of this Agreement shall be made instead of, and not in addition to, payments that would otherwise be made pursuant to Section [__] of the Employment Agreement.]] This Agreement cannot be changed, modified, extended or terminated except upon written amendment executed by the Employee and approved by the Board and executed on the Company’s behalf by a duly authorized officer. The provisions of this Agreement may provide for payments to the Employee under certain compensation or bonus plans (including without limitation the AIP and Stock Plan) under circumstances where such plans would not provide for payment thereof. It is the specific intention of the parties that the provisions of this Agreement shall supersede any provisions to the contrary in such plans, and such plans shall be deemed to have been amended to correspond with this Agreement without further action by the Company or the Boards of BMBC or the Company.

 

 

 

 

(b) Nothing in this Agreement shall be construed as giving the Employee any right to be retained in the employ of the Company.

 

(c) The Employee acknowledges that from time to time, the Company may establish, maintain and distribute employee manuals or handbooks or personnel policy manuals, and officers or other representatives of the Company may make written or oral statements relating to personnel policies and procedures. Such manuals, handbooks and statements are intended only for general guidance. No policies, procedures or statements of any nature by or on behalf of the Company (whether written or oral, and whether or not contained in any employee manual or handbook or personnel policy manual), and no acts or practices of any nature, shall be construed to modify this Agreement.

 

(d) All of the terms and provisions of this Agreement shall be binding upon and inure to the benefit of and be enforceable by the respective heirs, representatives, successors and assigns of the parties hereto, except that the duties and responsibilities of the Employee and the Company hereunder shall not be assignable in whole or in part by the Company.

 

17. Severability. If any provision of this Agreement or application thereof to anyone or under any circumstances shall be determined to be invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions or applications of this Agreement which can be given effect without the invalid or unenforceable provision or application.

 

18. Remedies Cumulative; No Waiver. No right conferred upon the Employee by this Agreement is intended to be exclusive of any other right or remedy, and each and every such right or remedy shall be cumulative and shall be in addition to any other right or remedy given hereunder or now or hereafter existing at law or in equity. No delay or omission by the Employee in exercising any right, remedy or power hereunder or existing at law or in equity shall be construed as a waiver thereof, including without limitation any delay by the Employee in delivering a Notice of Termination pursuant to Section 2 hereof after an event has occurred which would, if the Employee had resigned, have constituted a Termination upon a Change of Control pursuant to Section 1(n)(ii) of this Agreement.

 

19. Compliance with Section 409(A) of the Code. This Agreement is intended to comply with the provisions of Section 409A of the Code and shall be interpreted to be consistent with Section 409A of the Code.

 

 

20. Miscellaneous. All section headings in this Agreement are for convenience only. This Agreement may be executed in several counterparts, each of which is an original. It shall not be necessary in making proof of this Agreement or any counterpart hereof to produce or account for any of the other counterparts.

 

Signature Page Follows

 

 

 

 

IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have executed this Agreement as of the date first above written.

	 	
			THE BRYN MAWR TRUST COMPANY

			 

			 

			By: _______________________________

			Name: Francis J. Leto

			Title: President and Chief Executive Officer

			 

			 

			EMPLOYEE:

			 

			 

			 

			__________________________________

			[NAME]ASSET
PURCHASE AGREEMENT

 

THIS
ASSET PURCHASE AGREEMENT (this “Agreement”), is made as of December 12, 2017, by and between Barofold,
Inc., a Delaware corporation with an address at 12635 E. Mountview Blvd, Aurora, CO 80045 (the “Seller”), and
Pressure BioSciences, Inc., a Massachusetts corporation with an address at 14 Norfolk Avenue, South Easton, MA 02375 (the “Purchaser”).

 

WHEREAS,
Seller is the owner of the Assets (as defined herein) in connection with Seller’s operation of a technology company that
aims to improve the tolerability, efficacy and safety of protein therapeutics (the “Business”); and

 

WHEREAS,
Seller wishes to sell, and Purchaser wishes to purchase, the Assets upon the terms and conditions herein set forth.

 

NOW,
THEREFORE, in consideration of the mutual covenants, representations, warranties, conditions, and agreements hereinafter
expressed, and for other good and valuable consideration, the receipt and sufficiency which are hereby acknowledged, the parties
hereto agree as follows:

 

1.
DEFINITIONS. Without limiting the effect of any other terms defined in the text of this Agreement, the following words
shall have the meaning given them in this Section 1.

 

1.1
“Assets” means collectively, all rights, titles, formulations and interests in and to all the property related
to the Business, including, but not limited to, those items identified on Schedule 1.1 hereto.

 

1.2
“Governmental Authority” means any (i) nation, principality, state, commonwealth, province, territory, county,
municipality, district or other jurisdiction of any nature; (ii) federal, state, local, municipal, foreign or other government;
(iii) governmental or quasi-governmental authority of any nature (including any governmental division, subdivision, department,
agency, bureau, branch, office, commission, council, board, instrumentality, officer, official, representative, organization,
unit, body or entity and any court or other tribunal); (iv) multinational organization or body; or (v) person or entity exercising,
or entitled to exercise, any executive, legislative, judicial, administrative, regulatory, taxing or arbitral authority or power
of any nature.

 

1.3
“Legal Requirement” means any federal, state, local, municipal, foreign or other law, statute, legislation,
constitution, principle of common law, resolution, ordinance, code, Order, edict, decree, proclamation, treaty, convention, rule,
regulation, permit, ruling, directive, pronouncement, requirement (licensing or otherwise), specification, determination, decision,
opinion or interpretation that is, has been or may in the future be issued, enacted, adopted, passed, approved, promulgated, made,
implemented or otherwise put into effect by or under the authority of any Governmental Authority.

 

    	 	1	 

    	 

    

 

1.4
“Liability” or “Liabilities” means all liabilities and/or obligations, direct, indirect,
absolute or contingent, whether accrued, vested or otherwise and whether or not reflected or required to be reflected on the financial
statements of a person or entity.

 

1.5
“Lien” means any lien, security interest, pledge, option, title retention agreement, charge, claim, liability,
judgment, license, restriction, or encumbrance of any nature whatsoever.

 

1.6
“Order” means any judgment, order, writ, judgment, injunction, or decree of any court or other Governmental
Authority.

 

2.
SALE AND PURCHASE OF ASSETS; PURCHASE PRICE; CLOSING; POST-CLOSING:

 

2.1
On the terms and subject to the conditions set forth in this Agreement, at the Closing (as defined herein), but effective as of
the Closing Date, Seller shall sell, convey, assign, transfer and deliver to Buyer, and Buyer shall purchase and acquire from
Seller, free and clear of any Liens, all of Seller’s right, title and interest in and to all of the Assets.

 

2.2
On the date (“Closing Date”) of the consummation of the transactions contemplated hereby (the “Closing”),
Seller shall convey, sell, transfer and assign, and cause to be delivered to Purchaser evidence of, and Purchaser shall purchase,
acquire and accept from Seller, free from any Liens, all of Seller’s right, title and interest in and to the Assets.

 

2.3
At the Closing, (i) the Seller shall have changed its name so that the word “Barofold” is not a part of Seller’s
name; (ii) the Seller shall execute and deliver to the Purchaser a Bill of Sale substantially in the form attached hereto as Exhibit
A; (iii) the Seller and Purchaser shall execute the Assignment of Patent Rights substantially in the form attached hereto
as Exhibit B; (iv) the Seller shall execute and deliver to the Purchaser the intellectual property transfer documents required
for transfer of the intellectual property assets; and (v) Purchaser shall deliver One Hundred Fifty Thousand (150,000) restricted
shares of the Purchaser’s common stock to Seller.

 

2.4
Following the Closing Date and separate from the Closing, the Purchaser, on or before December 29, 2017, shall deliver One Hundred
Fifty Thousand and No/100 United States Dollars ($150,000) to Seller (the “Purchase Price”).

 

    	 	2	 

    	 

    

 

3.
NO ASSUMPTION OF LIABILITIES. Purchaser shall not assume any liabilities or obligations of Seller in connection with, related
to or with respect to the Assets, provided that Purchaser acknowledges that if it wants to maintain certain of the Assets it will
have to satisfy the obligations under the documents identified in Sections 16 -19 of Schedule 1.1 attached hereto.

 

4.
SELLER’S REPRESENTATIONS: Seller hereby represents and warrants to Purchaser as follows:

 

4.1
Corporate Existence. Barofold, Inc., is a corporation duly incorporated, validly existing and in good standing under the
laws of the State of Delaware, and has full power and authority to carry on its business as currently conducted. Barofold, Inc.
is duly qualified or licensed to do business in all the jurisdictions it is required to be so qualified or licensed;

 

4.2
Authorization. Seller has full power and authority to enter into and perform its obligations under this Agreement and to
consummate the transactions contemplated hereby. The execution, delivery and performance of this Agreement by Seller have been
duly authorized by all requisite action. This Agreement is the legal, valid and binding obligation of Seller, enforceable in accordance
with its terms, except that such enforcement may be subject to (i) bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting or relating to enforcement of creditors’ rights generally, and (ii) general principles of equity;

 

4.3
No Violation. The execution and delivery of this Agreement by Seller and the consummation of the transactions contemplated
herein do not and will not (i) violate or result in a default under the charter or governing documents of Seller, as applicable,
(ii) violate (with or without the giving of notice or the lapse of time or both) any Legal Requirement or Order applicable to
Seller or the Assets, (iii) violate or breach, or constitute a default under or grounds for termination of, or result in the acceleration
of the performance of the obligations of Seller under any contract related to the Assets to which Seller is a party or by which
the Assets are bound or affected, (iv) result in creation of any lien on any of the Assets or (v) prevent the carrying out of
the transactions contemplated hereby. Except as set forth in Schedule 4.3 no permit, consent, waiver, approval or authorization
of, or declaration to or filing or registration with, any Governmental Authority or third party is required in connection with
the execution, delivery or performance of this Agreement by Seller or the consummation by Seller of the transactions contemplated
hereby;

 

4.4
Licenses and Permits; Compliance with Law. Seller holds all licenses, certificates, permits, franchises and rights from
all applicable Governmental Authorities necessary for the use of the Assets. Seller is not presently charged with, or under governmental
investigation with respect to, any actual or alleged violation of any Legal Requirement or Order, nor is it presently the subject
of any pending or threatened adverse proceeding by any Governmental Authority having jurisdiction over the Assets;

 

    	 	3	 

    	 

    

 

4.5
Litigation. To the best of Seller’s knowledge, there is no suit, action, claim, litigation, grievance, proceeding
(administrative, judicial, or in arbitration, mediation or alternative dispute resolution), Governmental Authority or grand jury
investigation, or other action (any of the foregoing, an “Action”) pending, or to Seller’s knowledge,
threatened against Seller, by or against Seller (and Seller has not been a party to any Action including such claim) involving
the Assets, including, without limitation, any Action challenging, enjoining, or preventing this Agreement, or the consummation
of the transactions contemplated hereby. Seller has not received written notice of any such claim, asserting the invalidity, misuse
or unenforceability, infringement, misappropriation or other violation of any intellectual property of any third party, or challenging
Seller’s ownership of or rights to use any Assets, and, to Seller’s knowledge, there are no grounds for any such claim
or challenge;

 

4.6
Title. Seller is the sole and exclusive owner of all right, title and interest in and to the Assets, and has good title
to the Assets, free and clear of all Liens, including obligations to transfer or license such Assets, and there exists no material
restriction on the use or transfer or licensing of such Assets. To Seller’s knowledge, except as set forth on Schedule
4.6 the Assets and intellectual property rights related thereto are valid and enforceable and Seller does not have any obligation
to compensate any person or entity for its use of any Assets. Except as set forth on Schedule 4.6 Seller has not granted
to any person or entity any license (whether oral, written, implied or otherwise) to use the Assets. To Seller’s knowledge,
none of the Assets has been or is subject to any interference, cancellation, reexamination, reissue, opposition, or any other
proceeding challenging priority, scope, validity, or ownership anywhere in the world;

 

4.7
Liabilities. Seller does not have any Liabilities which are associated with the Assets. The consummation of the transactions
contemplated hereby will not alter, impair, extinguish or invalidate any Assets owned or used by Seller, provided that Buyer must
agree to be bound by the terms of the RALA, as amended;

 

4.8
No Adverse Actions. Seller has not:

 

(a)
suffered, permitted or incurred the imposition of any Lien or claim upon any of the Assets, other than Liens that have been released
prior to the date hereof;

 

(b)
committed, suffered, permitted or incurred any default in any Liability which has had or will have a material adverse effect upon
the Assets;

 

    	 	4	 

    	 

    

 

(c)
made or agreed to any adverse change in the terms of any contract or instrument to which it is a party which may have a material
adverse effect on the Assets;

 

(d)
waived, canceled, sold or otherwise disposed of, for less than the face amount thereof, any claim or right relating to the Assets
which it has against others;

 

(e)
made any disclosure of any confidential or proprietary information of Seller other than to Purchaser and its representatives,
agents, attorneys and accountants or to Seller’s own employees, representatives, agents, attorneys, accountants and prior
licensees in the ordinary course of business;

 

(f)
made any waiver of any claims or rights related to any of the Assets or abandonment or lapse of any of the Assets; or

 

(g)
committed to do any of the foregoing except as contemplated by this Agreement;

 

4.9
Brokers and Finders. Seller has not retained any broker or finder in connection with the transactions contemplated herein
so as to give rise to any valid claim for any brokerage or finder’s commission, fee or similar compensation; and

 

4.10
Disclosure and Accuracy. This Agreement and any schedules and exhibits hereto disclose all facts material to the Assets.
No statement contained herein or in any certificate, schedule, exhibit, list or other instrument furnished to Purchaser pursuant
to the provisions hereof contains or will contain any untrue statement of any material fact or omits or will omit to state a material
fact necessary in order to make the statements contained herein or therein not misleading.

 

5.
PURCHASER’S REPRESENTATIONS: Purchaser hereby represents and warrants to Seller as follows:

 

5.1
Corporate Existence. Purchaser is a corporation, duly incorporated, validly existing and in good standing under the laws
of the State of Massachusetts, and has full power and authority to carry on its business as currently conducted. Purchaser is
duly qualified or licensed to do business in all the jurisdictions it is required to be so qualified or licensed;

 

5.2
Authorization. Purchaser has full power and authority to enter into and perform its obligations under this Agreement and
to consummate the transactions contemplated hereby. The execution, delivery and performance of this Agreement by Purchaser have
been duly authorized by all requisite action. This Agreement is the legal, valid and binding obligation of Purchaser, enforceable
in accordance with its terms, except that such enforcement may be subject to (i) bankruptcy, insolvency, reorganization, moratorium
or other similar laws affecting or relating to enforcement of creditors’ rights generally, and (ii) general principles of
equity;

 

    	 	5	 

    	 

    

 

5.3
No Violation. The execution and delivery of this Agreement by Purchaser and the consummation of the transactions contemplated
herein do not and will not (i) violate or result in a default under the charter or by-laws of Purchaser, (ii) violate (with or
without the giving of notice or the lapse of time or both) any Legal Requirement or Order applicable to Purchaser, or (iii) prevent
the carrying out of the transactions contemplated hereby. No permit, consent, waiver, approval or authorization of, or declaration
to or filing or registration with, any Governmental Authority or third party is required in connection with the execution, delivery
or performance of this Agreement by Purchaser or the consummation by Purchaser of the transactions contemplated hereby;

 

5.4
Brokers and Finders. Purchaser has not retained any broker or finder in connection with the transactions contemplated herein
so as to give rise to any valid claim for any brokerage or finder’s commission, fee or similar compensation; and

 

5.5
Disclosure and Accuracy. No statement contained herein or in any certificate, schedule, exhibit, list or other instrument
furnished to Seller pursuant to the provisions hereof contains or will contain any untrue statement of any material fact or omits
or will omit to state a material fact necessary in order to make the statements contained herein or therein not misleading.

 

6.
CONDITIONS TO PURCHASER’S OBLIGATIONS AT CLOSING. All obligations of Purchaser under this Agreement are subject to
fulfillment on the Closing Date of each of the following conditions:

 

6.1
Representations and Warranties. The representations and warranties of Seller contained in Section 4 hereof and elsewhere
herein shall be true and correct in all material respects in each case at and as of the Closing Date as though such representations
and warranties were made at and as of such time;

 

6.2
Covenants. Seller shall have performed and complied in all material respects with all covenants, agreements and conditions
on its part required by this Agreement to be performed or complied with prior to or at the Closing Date; and

 

6.3
No Litigation or Contrary Judgment. On the Closing Date there shall exist no valid Order, statute, rule, regulation, executive
order, stay, decree, judgment or injunction which prohibits or prevents the consummation of the transactions contemplated by this
Agreement.

 

    	 	6	 

    	 

    

 

7.
CONDITIONS TO SELLER’S OBLIGATIONS. All obligations of Seller under this Agreement are subject to the fulfillment
at the Closing Date of each of the following conditions:

 

7.1
Representations and Warranties. The representations and warranties of Purchaser contained in Section 5 hereof and
elsewhere herein shall be true and correct in all material respects in each case at and as of the Closing Date as though such
representations and warranties were made at and as of such time;

 

7.2.
Covenants. Purchaser shall have performed and complied in all material respects with all agreements and conditions on its
part required by this Agreement to be performed or complied with prior to or at the Closing Date;

 

7.3
No Litigation or Contrary Judgment. On the Closing Date there shall exist no valid Order, statute, rule, regulation, executive
order, stay, decree, judgment or injunction which prohibits or prevents the consummation of the transactions contemplated by this
Agreement; and

 

8.
POST CLOSING COVENANTS.

 

8.1
Closing Payment. On or before December 29, 2017, Purchaser shall have delivered the Purchase Price to Seller as described
above in Section 2.4.

 

8.2
Return of Assets. If Seller has not delivered the Purchase Price to Seller on or before December 29, 2017, Purchaser agrees
that on or before January 12, 2018, it will convey, transfer and assign, and cause to be delivered to Seller evidence of, and
Seller shall accept from Purchaser, free from any Liens, all of Purchaser’s right, title and interest in and to the Assets.
Purchaser agrees that it shall not assign, encumber or fail to keep in effect all of the Assets until such time as Purchaser has
either delivered the Purchase Price to Seller or returned the Assets to Seller.

 

8.3
Further Assurances; Cooperation. From and after the Closing Date, the parties hereto shall, on request, cooperate with
one another by furnishing any additional information, executing and delivering any additional documents and instruments, and doing
any and all such other things as may be reasonably required by the parties hereto or their counsel to consummate or otherwise
implement the transactions contemplated by this Agreement. With respect to the assignment of the Assets, Seller and Purchaser
shall reasonably cooperate for the purposes of transferring ownership and the responsibility to administer the Assets to Purchaser.

 

8.4
Public Announcements. Seller agrees and acknowledges that, following the Closing, Purchaser shall have the right to make
all such public announcements as it shall deem, in its sole discretion, necessary or appropriate.

 

    	 	7	 

    	 

    

 

9.
INDEMNIFICATION.

 

9.1
By Seller. Seller agrees to indemnify and hold harmless Purchaser and its affiliates, and their respective shareholders,
directors, officers, employees, successors, assigns, and agents (the “Purchaser Indemnified Persons”) from
and against any and all claims, losses, damages, liabilities, expenses or costs (“Losses”), plus reasonable
attorneys’ fees and expenses incurred in connection with Losses and/or enforcement of this Agreement, incurred by Purchaser
by reason of or arising out of or in connection with (i) the breach of any representation or warranty contained herein or in any
certificate or other document delivered to Purchaser pursuant to the provisions of this Agreement, (ii) the failure of Seller
to perform any act required under this Agreement, (iii) a claim by any third party with respect to any Liability, contract, other
commitment or state of facts which constitutes a breach of any representation or warranty contained in Section 4 hereof
or in any certificate or other document delivered by or on behalf of Seller to Purchaser pursuant to the provisions of this Agreement,
or (iv) any Liability of Seller. Purchaser agrees to give prompt notice to Seller of any claim for which Purchaser seeks indemnification
hereunder, which notice shall include a reasonably detailed description of such claim, and a period of thirty (30) days to cure
such breach, and pay on such claim. If any claim is brought against Purchaser for which indemnification is sought from Seller
under this Section 9.1, then Purchaser shall control the contest, defense, settlement or compromise of any such claim (including
the engagement of counsel in connection therewith), at Seller’s cost and expense, including the cost and expense of reasonable
attorneys’ fees in connection with such contest, defense, settlement or compromise, and Seller shall have the right to participate
in the contest, defense, settlement or compromise of any such claim at its own cost and expense, including the cost and expense
of reasonable attorneys’ fees in connection with such participation; provided, however, that Purchaser shall not
settle or compromise any such claim without the prior written consent of Seller, which consent shall not be unreasonably withheld
or delayed. If Seller fails to assume the defense of such claim within 30 days of receipt of notice of such claim, or if at any
time Seller shall fail to defend in good faith any such claim, Purchaser may assume the defense thereof and may employ counsel
with respect thereto and all fees and expenses of such counsel shall be paid by Seller, and Purchaser may conduct and defend such
claim in such manner as it may deem appropriate; provided, however, that Purchaser shall not settle or compromise any such
claim without the prior written consent of Seller, which consent shall not be unreasonably withheld or delayed.

 

    	 	8	 

    	 

    

 

9.2
By Purchaser. Purchaser agrees to indemnify and hold harmless Seller and its affiliates, and their respective shareholders,
directors, officers, employees, successors, assigns, and agents (the “Seller Indemnified Persons”) from and
against any and all claims, losses, damages, liabilities, expenses or costs (“Losses”), plus reasonable attorneys’
fees and expenses incurred in connection with Losses and/or enforcement of this Agreement, incurred by Seller by reason of or
arising out of or in connection with (i) the breach of any representation or warranty contained herein or in any certificate or
other document delivered to Seller pursuant to the provisions of this Agreement, (ii) the failure of Purchaser to perform any
act required under this Agreement or (iii) a claim by any third party with respect to any Liability, contract, other commitment
or state of facts which constitutes a breach of any representation or warranty contained in Section 5 hereof or in any
certificate or other document delivered by or on behalf of Purchaser to Seller pursuant to the provisions of this Agreement. Seller
agrees to give prompt notice to Purchaser of any claim for which Seller seeks indemnification hereunder, which notice shall include
a reasonably detailed description of such claim, and a period of thirty (30) days to cure such breach, and pay on such claim.
If any claim is brought against Seller for which indemnification is sought from Purchaser under this Section 9.2, then
Seller shall control the contest, defense, settlement or compromise of any such claim (including the engagement of counsel in
connection therewith), at Purchaser’s cost and expense, including the cost and expense of reasonable attorneys’ fees
in connection with such contest, defense, settlement or compromise, and Seller shall have the right to participate in the contest,
defense, settlement or compromise of any such claim at its own cost and expense, including the cost and expense of reasonable
attorneys’ fees in connection with such participation; provided, however, that Seller shall not settle or compromise
any such claim without the prior written consent of Purchaser, which consent shall not be unreasonably withheld or delayed. If
Purchaser fails to assume the defense of such claim within 30 days of receipt of notice of such claim, or if at any time Purchaser
shall fail to defend in good faith any such claim, Seller may assume the defense thereof and may employ counsel with respect thereto
and all fees and expenses of such counsel shall be paid by Purchaser, and Seller may conduct and defend such claim in such manner
as it may deem appropriate; provided, however, that Seller shall not settle or compromise any such claim without the prior
written consent of Purchaser, which consent shall not be unreasonably withheld or delayed.

 

10.
MISCELLANEOUS.

 

10.1
Survival of Representations and Warranties. Notwithstanding any right of any party hereto to investigate the affairs of
any of the parties hereto and notwithstanding any knowledge of facts determined or determinable by any party hereto pursuant to
such investigation or right of investigation or otherwise acquired or learned by any of the parties hereto, each of the parties
hereto shall have the right to rely fully upon the representations, warranties, covenants and agreements of the other party hereto
contained in this Agreement and to pursue all rights and remedies in connection therewith. All representations, warranties, covenants
and agreements shall survive the Closing and shall expire on December 31, 2018 (the “Survival Date”).

 

10.2
Post Closing Obligations. Seller and Purchaser agree to comply with the post-closing covenants in Section 8 hereof.

 

    	 	9	 

    	 

    

 

10.3
Notices. All communications required or permitted to be given hereunder shall be in writing and shall be deemed to have
been duly given if (i) delivered personally with receipt acknowledged, (ii) sent by registered or certified mail, return receipt
requested, (iii) sent by telecopy or e-mail with confirmation or (iv) sent by overnight courier for next business day delivery,
addressed to the parties hereto at the addresses contained herein or to such other addresses, e-mail addresses or facsimile numbers
as any party hereto shall hereafter specify by communication to the other party in the manner provided in this Section 10.3.
Notice shall be deemed to have been given, received and dated on the earlier of: (i) when actually received or upon refusal to
accept delivery thereof, (ii) on the date when delivered personally or via telecopy or e-mail, (iii) one (1) business day after
being sent by overnight courier and (iv) four (4) business days after mailing.

 

10.4
Severability. If any term or provisions of this Agreement is held by a court of competent jurisdiction to be invalid, void,
or unenforceable, the remainder of the terms and provisions set forth herein shall remain in full force and effect and shall in
no way be affected, impaired or invalidated, and the parties hereto shall use their best efforts to find and employ an alternative
means to achieve the same or substantially the same result as that contemplated by such term or provision.

 

10.5
Governing Law; Interpretation; Jurisdiction; Waiver of Jury Trial. This Agreement shall in all respects be construed in
accordance with and governed by the substantive laws of the State of Massachusetts applicable to contracts executed and performed
entirely within the state, without reference to its choice of law rules. This Agreement shall be interpreted and construed in
accordance with the laws of the State of Massachusetts without giving effect to the principles of conflicts of laws thereof. Each
party hereto hereby irrevocably submits to the jurisdiction of the courts of the State of Massachusetts. Each party hereby irrevocably
waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of
any such suit, action or proceeding brought in any such court, any claim that any such suit, action or proceeding brought in such
a court has been brought in an inconvenient forum, and the right to object, with respect to any such suit, action or proceeding
brought in any such court, and that such court does not have jurisdiction over such party. In any such suit, action or proceeding,
each party hereby waives, to the fullest extent it may effectively do so, personal service of any summons, complaint or other
process and agrees that the service thereof may be made by certified or registered mail, addressed to such party at its address
set forth in the preamble herein. THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY PROCEEDING, WHETHER NOW EXISTING
OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY
OF THIS SECTION 10.5 WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES
IRREVOCABLY TO WAIVE TRIAL BY JURY AND THAT ANY PROCEEDING WHATSOEVER BETWEEN THEM SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT
JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

 

    	 	10	 

    	 

    

 

10.6 Entire
Agreement. The parties hereto agree that all understandings and agreements heretofore made between them with respect to the
subject matter hereof are merged into this Agreement and any schedules and exhibits attached hereto (collectively, the “Transaction
Documents”), which fully and completely express their agreement with respect to the subject matter hereof. There are
no promises, agreements, conditions, understandings, warranties or representations, oral or written, express or implied, among
the parties hereto, other than as set forth in the Transaction Documents. All prior agreements among the parties hereto with respect
to the subject matter hereof are superseded by the Transaction Documents, which integrate all promises, agreements, conditions
and understandings among the parties hereto with respect to the matters contained herein.

 

10.7 Termination,
Revocation, Waiver, Modification or Amendment. No termination, revocation, waiver, modification or amendment of this Agreement
shall be binding unless agreed to in writing and signed by an authorized officer of each of the parties hereto.

 

10.8 Counterparts.
This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and all of which shall constitute
one and the same agreement. The signature of any party hereto to a counterpart shall be deemed to be a signature to, and may be
appended to, any other counterpart.

 

10.9 Assignability.
This Agreement shall not be assignable by any party hereto without the prior written consent of the other party hereto.

 

10.10 Binding
Effect. This Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their respective successors
and permitted assigns.

 

10.11 Waiver.
No consent or waiver, express or implied, by any party hereto to or of any breach or default by any other party in the performance
by any other party of its obligations hereunder shall be deemed or construed to be a consent to or waiver of any other breach
or default in the performance by such other party of the same or any other obligation of such party hereunder. Failure on the
part of a party hereto to complain of any act or failure to act of any other party or to declare such other party in default,
irrespective of how long such failure continues, shall not constitute a waiver by such party of its rights hereunder.

 

    	 	11	 

    	 

    

 

10.12 Additional
Remedies. The rights and remedies of any party hereto under this Agreement shall not be mutually exclusive. The respective
rights and obligations hereunder shall be enforceable by specific performance, injunction or other equitable remedy, but nothing
herein contained is intended to, nor shall it limit or affect, any other rights in equity or any rights at law or by statute or
otherwise of any party hereto aggrieved as against the other for breach or threatened breach of any provision hereof, it being
the intention of this Section to make clear the agreement of the parties hereto that their respective rights and obligations hereunder
shall be enforceable in equity as well as at law or otherwise.

 

10.13 Expenses.
Each of the parties hereto shall pay the fees and expenses incurred by it in connection with the negotiation, preparation, execution
and performance of this Agreement, including, without limitation, reasonable attorneys’ fees.

 

10.14 Costs
of Enforcement. Except as otherwise set forth herein, the prevailing party hereto in any proceeding brought to enforce any
provision of this Agreement shall be entitled to recover the reasonable fees and costs of its counsel, plus all other costs of
such proceeding.

 

10.15 Headings.
The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

 

(Signature
page follows)

 

    	 	12	 

    	 

    

 

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

 

	 	SELLER
	 	 
	 	BAROFOLD,
    INC.
	 	 
	 	By:	                
	 	Name:	 
	 	Title:	 
	 	 
	 	PURCHASER
	 	 
	 	PRESSURE
    BIOSCIENCES, INC.
	 	 
	 	By:	 
	 	Name:
    	 
	 	Title:	 

 

Signature
page to Asset Purchase Agreement

 

    	 	 	 

    	 

    

 

EXHIBIT
A TO ASSET PURCHASE AGREEMENT

 

BILL
OF SALE 

 

BILL
OF SALE, made, executed and delivered on December 12, 2017 by Barofold, Inc., a Delaware corporation (the “Seller”)
and Pressure BioSciences, Inc., a Massachusetts corporation (the “Purchaser”).

 

WITNESSETH

 

WHEREAS,
the Seller and the Purchaser are parties to that certain Asset Purchase Agreement dated December 12, 2017 by and between Purchaser
and Seller (the “Agreement”), providing for, among other things, the transfer and sale to the Purchaser of
the Assets (such capitalized term and, except as defined herein, all other capitalized terms used herein shall have the same meanings
ascribed to them in the Agreement), and on the terms and conditions provided in the Agreement.

 

WHEREAS,
the Purchaser and the Seller now desire to carry out the intent and purpose of the Agreement by the Seller’s execution and
delivery to the Purchaser of this instrument evidencing the sale, conveyance, assignment, transfer and delivery to the Purchaser
of the Assets subject to the terms and conditions of the Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Seller does hereby, effective from and after the date hereof, sell, convey, assign, transfer
and deliver unto the Purchaser and its successors and assigns, forever, all of Seller’s right, title and interest in, to
and under the Assets subject to the terms and conditions of the Agreement and free and clear of Liens.

 

TO
HAVE AND TO HOLD the Assets unto the Purchaser, its successors and assigns, FOREVER.

 

This
Bill of Sale shall be construed and enforced in accordance with applicable federal law and the laws (other than the conflict of
law rules) of the State of Massachusetts.

 

In
the event that any provision of this Bill of Sale is construed to conflict with a provision of the Agreement, the provision of
the Agreement shall be deemed to be controlling.

 

This
instrument shall be binding upon and shall inure to the benefit of the respective successors and assigns of the Seller and the
Purchaser.

 

[The
rest of this page intentionally left blank] 

 

    	 	 	 

    	 

    

 

IN
WITNESS WHEREOF, this Bill of Sale has been duly executed and delivered by a duly authorized representative of the Seller on the
date first above written.

 

	 	BAROFOLD,
    INC.
	 	 
	 	By:	               
	 	Name:	
	 	Title:	

 

    	 	 	 

    	 

    

 

EXHIBIT
B TO ASSET PURCHASE AGREEMENT

 

PATENT

 

ASSIGNMENT
OF PATENT RIGHTS

(Company
to Company)

 

BaroFold,
Inc., a corporation having its principal place of business at 12635 E. Montview Blvd., Aurora, CO 80045 (herein referred to
as “Assignor”) owns the entire right, title and interest in any Letters Patent(s) (“said patent(s)”) and
any Patent application(s) (“said application(s)”) set forth on the attached Schedule A, as well as any invention(s)
(“said invention(s)”) disclosed in application(s) and patent(s) noted on the attached Schedule A.

 

WHEREAS,
Pressure BioSciences, Inc., a corporation having its principal place of business at 14 Norfolk Avenue, South Easton, MA
02375 its successors, legal representatives and assigns (the “Assignee”), is desirous of acquiring the entire right,
title, and interest in and to said invention(s), said application(s), and said patent(s), the right to file applications on said
invention(s), the entire right, title and interest in and to any applications for Letters Patent of the United States or other
countries claiming priority to said application(s), the right to recover any and all past, present, and future damages, including
provisional or other royalties, for any and all past, present, and future infringements of said application(s) and said patent(s),
and the entire right, title, and interest in and to any and all Letters Patent or Patents, United States or foreign, to be obtained
for said invention(s) and said application(s);

 

NOW,
THEREFORE, for good and sufficient consideration, the receipt of which is hereby acknowledged, the Assignor has sold, assigned,
transferred, and set over, and by these presents does sell, assign, transfer, and set over, unto the Assignee, its successors,
legal representatives, and assigns the entire right, title, and interest in and to said invention(s), said application(s), and
said patent(s), the right to file applications on said invention(s), the entire right, title and interest in and to any applications
for Letters Patent of the United States or other countries claiming priority to said application(s), including divisions, continuations,
and continuations-in-part of said application(s), the right to recover any and all past, present, and future damages, including
provisional or other royalties, for any and all past, present, and future infringements of said application(s) and said patent(s),
the entire right, title and interest in and to any and all Letters Patent or Patents, United States or foreign, to be obtained
for said invention(s) and said application(s), the entire right, title and interest in and to any and all reissues and extensions
of said patent(s), and all rights under the Hague Convention, the Paris Convention for the Protection of Industrial Property,
and under the Patent Cooperation Treaty, the same to be held and enjoyed by the Assignee, for its own use and behalf and the use
and behalf of its successors, legal representatives, and assigns, to the full end of the term or terms for which Letters Patent
or Patents may be granted as fully and entirely as the same would have been held and enjoyed by the Assignor had this sale and
assignment not been made;

 

AND
for the same consideration, the Assignor hereby covenants and agrees to and with the Assignee, its successors, legal representatives,
and assigns, that, at the time of execution and delivery of these presents, the Assignor is the sole and lawful owner of the entire
right, title, and interest in and to said invention(s), said application(s), and said patent(s), and that the same are unencumbered,
and that the Assignor has good and full right and lawful authority to sell and convey the same in the manner herein set forth;

 

    	 	 	 

    	 

    

 

AND
for the same consideration, the Assignor hereby covenants and agrees to and with the Assignee, its successors, legal representatives,
and assigns that until December 31, 2018 the Assignor will, whenever counsel of the Assignee, or the counsel of its successors,
legal representatives, and assigns, shall advise that any proceeding in connection with said invention(s), said application(s),
said patent(s), any application claiming priority to said application(s), any reissue or extension of said patent(s), and any
United States or foreign Letters Patent or Patents for said invention(s) or said application(s), including interference and derivation
proceedings, and any post-grant proceedings (e.g., opposition proceedings, post-grant reviews, Inter partes reviews, supplemental
examinations, etc.), is lawful and desirable, sign all reasonably requested papers and documents, take all lawful oaths, and do
all reasonably requested acts necessary or required to be done for the procurement, maintenance, enforcement and defense of Letters
Patent or Patents for said invention(s), without charge to the Assignee, its successors, legal representatives, and assigns, but
at the cost and expense of the Assignee, its successors, legal representatives, and assigns;

 

AND
the Assignor hereby requests the Commissioner of Patents to issue any and all aforementioned patent(s) of the United States to
the Assignee, as the Assignee of said invention(s) and the Letters Patent to be issued thereon for the sole use and behalf of
the Assignee, its successors, legal representatives, and assigns.

 

    	 	 	 

    	 

    

 

	Date:
    	 	 	By:	           
	 	 	 	Name:	
	 	 	 	Title:	
	 	 	 	Company:	Barofold,
    Inc.

 

	A
    notary public or other officer completing this certificate verifies only the identity of the individual who signed the document
    to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 

 

 

State
of ______________________)

)    ss.

County
of_____________________)

 

On
________________________, before me, _____________________________, Notary Public, personally appeared _______________________________________,
who proved to me on the basis of satisfactory evidence, to be the person(s) whose name(s) is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

REQUIRED
SENTENCE IF NOTARIZED IN CALIFORNIA: I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

 

WITNESS
my hand and official seal.

 

	 	 	 
	Signature
    of Notary Public	 	Place
    Notary Seal Above

 

	My
    Commission Expires:	 	 	 

 

 

    	 	 	 

    	 

    

For
and on behalf of ASSIGNEE:

 

	Date:
    	 	 	By:	             
	 	 	 	Name:	
	 	 	 	Title:	
	 	 	 	Company:	Pressure
    BioSciences, Inc.

 

	A
    notary public or other officer completing this certificate verifies only the identity of the individual who signed the document
    to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 

 

 

State
of ______________________)

)    ss.

County
of_____________________)

 

On
________________________, before me, _____________________________, Notary Public, personally appeared _______________________________________,
who proved to me on the basis of satisfactory evidence, to be the person(s) whose name(s) is/are subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

REQUIRED
SENTENCE IF NOTARIZED IN CALIFORNIA: I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.

 

WITNESS
my hand and official seal.

 

	 	 	 
	Signature
    of Notary Public	 	Place
    Notary Seal Above

 

	My
    Commission Expires:	 	 	 

 

 

    	 	 	 

    	 

    

 

SCHEDULE
A TO ASSIGMENT OF PATENT RIGHTS

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