Document:

EXHIBIT 10.17

 

CODORUS VALLEY BANCORP, INC.

CHANGE IN CONTROL AND

SUPPLEMENTAL BENEFIT TRUST AGREEMENT

 

 

This Agreement made this 25th day
of January, 2006, by and among CODORUS VALLEY BANCORP, INC., a corporation organized and existing under the laws of the Commonwealth
of Pennsylvania (the "Corporation"), PEOPLESBANK, a Codorus Valley Company, a wholly owned bank subsidiary of the Corporation
organized under the laws of the Commonwealth of Pennsylvania (the "Bank") and HERSHEY TRUST COMPANY (the "Trustee");

 

WITNESSETH:

 

WHEREAS, the Corporation
and the Bank (hereinafter collectively referred to as the "Company") have heretofore entered into unfunded plans of deferred
compensation (hereinafter referred to as the "Plans, Plan(s), or Plan") as listed in Appendix A;

 

WHEREAS, the Company has
incurred and expects to incur liability under the terms of the Plans with respect to the individuals covered under each Plan ("Plan
Participants");

 

WHEREAS, the Company intends
to establish a trust effective as of the date hereof, known as the Codorus Valley Bancorp, Inc. Change in Control and Supplemental
Benefits Trust Agreement ("Trust" or "Trust Agreement") for the purpose, in certain events, of assisting it
in fulfilling its obligations under the Plans and it is the desire of the Company to establish the Trust in accordance with the
Model Trust format set forth in Revenue Procedure 92-64;

 

WHEREAS, the Company wishes
to establish this Trust and to contribute to the Trust, at such times and under such conditions as set forth herein, assets that
shall be held therein, subject to the claims of the Company's creditors in the event of the Company's Insolvency, as herein defined,
until paid to Plan Participants and their beneficiaries in such manner and at such times as specified in the respective Plans;

 

WHEREAS, it is the intention
of the parties that this Trust shall constitute an unfunded arrangement and shall not affect the status of the Plans as unfunded
plans maintained for the purpose of providing deferred compensation for a select group of management or highly compensated employees
for purposes of Title I. of the Employee Retirement Income Security Act of 1974;

 

WHEREAS, the Company desires
the Trustee to hold and administer all funds contributed by the Company and the Trustee is willing to hold and administer such
funds pursuant to the terms of this Trust Agreement.

 

NOW, THEREFORE, the parties
do hereby adopt this Trust and agree that the Trust shall be comprised, held and disposed of as follows:

 

    	-1- 

     

    

 

Section 1. - Establishment of Trust

 

(a)          The Company hereby
deposits with the Trustee in trust the sum of one hundred dollars ($100.00) which shall become the principal of the Trust to be
held, administered and disposed of by the Trustee as provided in this Trust Agreement.

 

(b)          The Trust hereby
established shall be irrevocable.

 

(c)          The Trust is
intended to be a grantor trust, of which the Company is the grantor, within the meaning of subpart E, part I, subchapter J, chapter
1, subtitle A of the Internal Revenue Code of 1986, as amended, and shall be construed accordingly.

 

(d)          The principal
of the Trust, and any earnings thereon shall be held separate and apart from other funds of the Company and shall be used exclusively
for the uses and purposes of Plan Participants and general creditors as herein set forth. Plan Participants and their beneficiaries
shall have no preferred claim on, or any beneficial ownership interest in, any assets of the Trust. Any rights created under the
Plan(s) and this Trust Agreement shall be mere unsecured contractual rights of Plan Participants and their beneficiaries against
the Company. Any assets held by the Trust will be subject to the claims of the Company's general creditors under federal and state
law in the event of Insolvency, as defined in Section 3(a) herein.

 

(e)          Except as otherwise
provided in Section 13(e) hereto, upon a Change of Control, the Company shall, as soon as possible, but in no event longer than
thirty (30) days following the Change of Control, as defined herein, make an irrevocable contribution to the Trust in an amount
that is sufficient to pay each Plan Participant or beneficiary the benefits to which Plan Participants or their beneficiaries would
be entitled pursuant to the terms of the Plans as of the date on which the Change of Control occurred. The contribution under this
Section 1(e) shall be determined in accordance with Section 13(f).

 

(f)          The Company,
in its sole discretion, may at any time, or from time to time, make additional deposits of cash or other property in trust with
the Trustee to augment the principal to be held, administered and disposed of by the Trustee as provided in this Trust Agreement.
Neither Trustee nor any Plan Participant or beneficiary shall have any right to compel such additional deposits.

 

Section 2. -
Payments to Plan Participants and Their Beneficiaries

 

(a)          The Company
shall deliver to the Trustee a schedule (the "Payment Schedule") that indicates the amounts payable in respect of each
Plan Participant (and his or her beneficiaries), that provides a formula or other instructions acceptable to the Trustee for determining
the amounts so payable, the form in which such amount is to be paid (as provided for or available under the Plan), and the time
of commencement for payment of such amounts. Except as otherwise provided herein, the Trustee shall make payments to the Plan Participants
and their beneficiaries in accordance with such Payment Schedule. The Trustee shall make provision for the reporting and withholding
of any federal, state or local taxes that may be required to be withheld with respect to the payment of benefits pursuant to the
terms of the Plan and shall pay amounts withheld to the appropriate taxing authorities or determine that such amounts have been
reported, withheld and paid by the Company.

 

    	-2- 

     

    

(b)          The entitlement
of a Plan Participant or his or her beneficiaries to benefits under the Plan shall be determined by the Company or such party as
it shall designate under the Plan, and any claim for such benefits shall be considered and reviewed under the procedures set out
in the Plan.

 

(c)          The Company
may make payment of benefits directly to Plan Participants or their beneficiaries as they become due under the terms of the Plan(s).
The Company shall notify the Trustee of its decision to make payment of benefits directly prior to the time amounts are payable
to Participants or their beneficiaries. In addition, if the principal of the Trust, and any earnings thereon, are not sufficient
to make payment of benefits in accordance with the terms of the Plan(s), the Company shall make the balance of each such payment
as it falls due. The Trustee shall notify the Company where principal and earnings are not sufficient.

 

Section 3. - Trustee Responsibility Regarding Payments to Trust Beneficiary
When the Company Is Insolvent

 

(a)          The Trustee
shall cease payment of benefits to Plan Participants and their beneficiaries if the Company is Insolvent. The Company shall be
considered "Insolvent" for purposes of this Trust Agreement if (i) the Company is unable to pay its debts as they become
due, or (ii) the Company is subject to a pending proceeding as a debtor under the United States Bankruptcy Code, or (iii) the Company
is determined to be insolvent by any federal or state regulatory agency with jurisdiction over the Company.

 

(b)          At all times
during the continuance of this Trust, as provided in Section 1(d) hereof, the principal and income of the Trust shall be subject
to claims of general creditors of the Company under federal and state law as set forth below.

 

(1)          The Board
of Directors and the Chief Executive Officer of the Company shall have the duty to inform the Trustee in writing of the Company's
Insolvency. If a person claiming to be a creditor of the Company alleges in writing to the Trustee that the Company has become
Insolvent, the Trustee shall determine whether the Company is Insolvent and, pending such determination, the Trustee shall discontinue
payment of benefits to Plan Participants or their beneficiaries.

 

(2)          Unless the
Trustee has actual knowledge of the Company's Insolvency, or has received notice from the Company or a person claiming to be a
creditor alleging that the Company is Insolvent, the Trustee shall have no duty to inquire whether the Company is Insolvent. The
Trustee may in all events rely on such evidence concerning the Company's solvency as may be furnished to the Trustee and that provides
the Trustee with a reasonable basis for making a determination concerning the Company's solvency.

 

    	-3- 

     

    

 

(3)          If at any
time the Trustee has determined that the Company is Insolvent, the Trustee shall discontinue payments to Plan Participants or their
beneficiaries and shall hold the assets of the Trust for the benefit of the Company's general creditors. Nothing in this Trust
Agreement shall in any way diminish any rights of Plan Participants or their beneficiaries to pursue their rights as general creditors
of the Company with respect to benefits due under the Plan(s) or otherwise.

 

(4)          The Trustee
shall resume the payment of benefits to Plan Participants or their beneficiaries in accordance with Section 2 of this Trust Agreement
only after the Trustee has determined that the Company is not Insolvent (or is no longer Insolvent).

 

(c)          Provided that
there are sufficient assets, if the Trustee discontinues the payment of benefits from the Trust pursuant to Section 3(b) hereof
and subsequently resumes such payments, the first payment following such discontinuance shall include the aggregate amount of all
payments due to Plan Participants or their beneficiaries under the terms of the Plan for the period of such discontinuance, less
the aggregate amount of any payments made to Plan Participants or their beneficiaries by the Company in lieu of the payments provided
for hereunder during any such period of discontinuance.

 

Section 4. - Payments to the Company

 

Except as provided
in Section 3 or Section 13(e) hereof, after the Trust has become irrevocable, the Company shall have no right or power to direct
the Trustee to return to the Company or to divert to others any of the Trust assets before all payment of benefits have been made
to Plan Participants and their beneficiaries pursuant to the terms of the Plans.

 

Section 5. - Investment Authority

 

(a)          The powers
of the Trustee shall include the following:

 

(1)          To retain,
whether originally a part of the trust estate or subsequently acquired, and to purchase or otherwise acquire and then retain, any
property, whether or not such property is authorized for investment under the Pennsylvania Prudent Investor Act or by other law.

 

(2)          To hold any
part of the trust estate in cash or uninvested for any period deemed advisable.

 

(3)          To register
any securities at any time in its name as Trustee, or in nominee registration, with or without indicating the trust character of
the securities so registered.

 

(4)          With respect
to any securities held hereunder, to vote upon any proposition or election at any meeting of the person or entity issuing such
securities, and to grant proxies, discretionary or otherwise, to vote at any such meeting, to exercise conversion, subscription
or other rights, and to receive or hold any new securities issued as a result of any reorganization, readjustment, merger, voting
trust, consolidation, exchange or exercise of conversion, subscription or other rights and generally to take all action with respect
to any such securities as could be taken by the absolute owner thereof.

 

    	-4- 

     

    

 

(5)          To invest
in common trust funds, collective funds, or mutual funds managed by the Trustees.

 

(b)          In no event
may the Trustee invest in securities (including stock or rights to acquire stock) or obligations issued by the Company, other than
a de minimis amount held in common investment vehicles in which the Trustee invests. All rights associated with assets of the Trust
shall be exercised by the Trustee or the person designated by the Trustee, and shall in no event be exercisable by or rest with
Plan Participants.

 

Section 6. - Disposition of Income

 

During the term of
this Trust, all income received by the Trust, net of expenses and taxes, shall be accumulated and reinvested.

 

Section 7. - Accounting by the Trustee

 

(a)          The Trustee
shall keep accurate and detailed records of all investments, receipts, disbursements, and all other transactions required to be
made, including such specific records as shall be agreed upon in writing between the Company and the Trustee. Within ninety (90)
days following the close of each calendar year and within one hundred twenty {120) days after the removal or resignation of the
Trustee, the Trustee shall deliver to the Company a written account of its administration of the Trust during such year or during
the period from the close of the last preceding year to the date of such removal or resignation, setting forth all investments,
receipts, disbursements and other transactions effected by it, including a description of all securities and investments purchased
and sold with the cost or net proceeds of such purchases or sales (accrued interest paid or receivable being shown separately),
and showing all cash, securities and other property held in the Trust at the end of such year or as of the date of such removal
or resignation, as the case may be. Each account so filed shall be open to inspection during business hours by any Plan Participant
and any person designated by such Plan Participant for a period of sixty (60) days immediately following the date on which the
account is filed with the Company.

 

Section 8.
- Responsibility of the Trustee

 

(a)          The Trustee
shall act with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in
like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims,
provided, however, that the Trustee shall incur no liability to any person for any action taken pursuant to a direction, request
or approval given by the Company which is contemplated by, and in conformity with, the terms of the Plan(s) or this Trust and is
given in writing by the Company. In the event of a dispute between the Company and a party, the Trustee may apply to a court of
competent jurisdiction to resolve the dispute.

 

    	-5- 

     

    

 

(b)          If the Trustee
undertakes or defends any litigation arising in connection with this Trust, the Company agrees to indemnify the Trustee against
the Trustee's costs, expenses and liabilities (including, without limitation, attorneys' fees and expenses) relating thereto and
to be primarily liable for such payments. If the Company does not pay such costs, expenses and liabilities in a reasonably timely
manner, the Trustee may obtain payment from the Trust.

 

(c)          The Trustee
may consult with legal counsel, including legal counsel of the Company should the Trustee so choose, with respect to any of its
duties or obligations hereunder.

 

(d)          The Trustee
may hire agents, accountants, actuaries, investment advisors, financial advisors or other professionals to assist it in performing
any of its duties or obligations hereunder.

 

(e)          The Trustee
shall have, without exclusion, all powers conferred on the Trustees by applicable law, unless expressly provided otherwise herein,
provided, however, that if an insurance policy is held as an asset of the Trust, the Trustee shall have no power to name a beneficiary
of the policy other than the Trust, to assign the policy (as distinct from conversion of the policy to a different form)
other than to a successor Trustee, or to loan to any person the proceeds of any borrowing against such policy.

 

(f)           Notwithstanding
any powers granted to the Trustee pursuant to this Trust Agreement or to applicable law, the Trustee shall not have any power that
could give this Trust the objective of carrying on a business and dividing the gains therefrom, within the meaning of section 301.7701-2
of the Procedure and Administrative Regulations promulgated pursuant to the Internal Revenue Code.

 

Section 9.
- Compensation and Expenses of the Trustee

 

(a)          The Trustee
shall be paid such reasonable compensation as shall from time to time be agreed upon by the Company and the Trustee. Such compensation,
including expenses incurred by the Trustee with regard to its responsibilities under the Trust shall be paid by the Company. Such
compensation and expenses shall be withdrawn by the Trustee out of the Trust Fund to the extent the Company does not pay such compensation
and expenses to the Trustee.

 

(b)          As this Trust
is a grantor trust, the Company shall from time to time pay taxes of any and all kinds whatsoever which at any time are lawfully
levied or assessed upon or become payable in respect to the Trust, the income or any property forming a part thereof, or any security
transaction pertaining thereto.

 

Section 10. - Resignation and Removal of the
Trustee

 

(a)          The Trustee
may resign at any time by providing written notice to the Company, which shall be effective sixty (60) days after receipt of such
notice unless the Company and the Trustee agree otherwise to an effective date which is shorter than the sixty (60) day period.

 

(b)          The Trustee
may be removed by the Company at any time by providing written notice to the Trustee, which shall be effective sixty (60) days
after receipt of such notice unless the Company and the Trustee agree otherwise to an effective date which is shorter than the
sixty (60) day period. In no event may the Company serve as the Trustee to this Trust.

 

    	-6- 

     

    

 

(c)          Upon resignation
or removal of the Trustee and appointment of a successor Trustee, all assets shall subsequently be transferred to the successor
Trustee. The transfer shall be completed immediately following the effective date of the resignation or removal of the Trustee.

 

(d)          If the Trustee
resigns or is removed, a successor shall be appointed, in accordance with Section 11 hereof, by the effective date of resignation
or removal under paragraph (a) or (b) of this section. If no such appointment has been made, the Trustee may apply to a court of
competent jurisdiction for appointment of a successor or for instructions. All expenses of the Trustee in connection with the proceeding
shall be allowed as administrative expenses of the Trust.

 

Section 11. - Appointment of Successor

 

(a)          If the Trustee
resigns or is removed in accordance with Section 10, the Company may only appoint a financial institution that possesses corporate
trustee powers under state law as the successor to replace the Trustee upon resignation or removal. The appointment shall be effective
when accepted in writing by the successor Trustee, who shall have all of the rights and powers of the former Trustee, including
ownership rights in the Trust assets. The former Trustee shall execute any instrument necessary or reasonably requested by the
Company or the successor Trustee to evidence the transfer.

 

Section 12_ - Amendment or Termination

 

(a)          This Trust
Agreement may be amended by a written instrument executed by the Trustee and the Company. Notwithstanding the foregoing, no such
amendment shall conflict with the terms of the Plan(s) nor shall any such amendment make the Trust revocable after it has become
irrevocable in accordance with Section 1(b) hereof.

 

(b)          The Trust shall
not terminate until the date on which respective Plan Participants and their beneficiaries are no longer entitled to benefits pursuant
to the terms of the Plan(s). Upon termination of the Trust any assets remaining in the Trust shall be returned to the Company.

 

(c)          Upon written
approval of all Plan Participants or beneficiaries entitled to payment of benefits pursuant to the terms of the Plan(s), the Company
may terminate this Trust prior to the time all benefit payments under the Plan(s) have been made. All assets in the Trust at termination
shall be returned to the Company.

 

Section 13. - Miscellaneous

 

(a)          Any provision
of this Trust Agreement prohibited by law shall be ineffective to the extent of any such prohibition, without invalidating the
remaining provisions hereof.

 

    	-7- 

     

    

 

(b)          Benefits payable
to Plan Participants and their beneficiaries under this Trust Agreement may not be anticipated, assigned (either at law or in equity),
alienated, pledged, encumbered or subjected to attachment, garnishment, levy, execution or other legal or equitable process.

 

(c)          This Trust
Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania and the United States.

 

(d)          For purposes
of this Agreement, the term “Change in Control” shall mean: A Change in the Ownership of the Corporation or the Bank,
(as defined below), a Change in the Effective Control of the Corporation or the Bank (as defined below), or a Change in the Ownership
of a Substantial Portion of the Assets of the Corporation or the Bank, (as defined below).

 

(1)          Change in
the Ownership of the Corporation or the Bank. A change in the Ownership of the Corporation or the Bank occurs on the date that
any one person, or more than one person acting as a group (as defined below), acquires ownership of stock of the Corporation or
the Bank that, together with stock held by such person or group, constitutes more than 50 percent of the total fair market value
or total voting power of the stock of the Corporation or the Bank. However, if any one person, or more than one person acting as
a group, is considered to own more than 50 percent of the total fair market value or total voting power of the stock of the Corporation
or the Bank, the acquisition of additional stock by the same person pr persons is not considered to cause a Change in the Ownership
of the Corporation or the Bank. An increase in the percentage of stock owned by any one person or persons acting as a group, as
a result of a transaction in which the Corporation or the Bank acquires its stock in exchange for property will be treated as an
acquisition of stock for these purposes. A change in ownership of the Corporation or the Bank only occurs when there is a transfer
or issuance of stock of the Corporation or the Bank and the stock remains outstanding after the transaction.

 

(2)          Change in
Effective Control of the Corporation or the Bank. A Change in Effective Control of the Corporation or the Bank occurs only
on the date that either:

 

(i)          Any one person,
or more than one person acting as a group (as defined below), acquires (or has acquired during the 12-month period ending on the
date of the most recent acquisition by such person or persons) ownership of stock of the Corporation or the Bank possessing 35
percent or more of the total voting power of the stock of the Corporation or the Bank; or

 

(ii)          A majority
of members of the Corporation’s Board of Directors is replaced during any 12-month period by the directors whose appointment
or election is not endorsed by a majority of members of the Corporation’s Board of Directors prior to the sate of the appointment
or election.

 

    	-8- 

     

    

 

If any person, or
more than one person acting as a group, is considered to effectively control the Corporation or the Bank, the acquisition of additional
control of the Corporation or the Bank by the same person or persons is not considered to cause a Change in the Effective Control
of the Corporation or the Bank.

 

(3)          Change in
Ownership of a Substantial Portion of the Corporation’s or the Bank’s Assets. A Change in Ownership of a Substantial
Portion of the Corporation’s or the Bank’s Assets occurs on the date that any one person, or more than one person acting
as a group (as defined below), acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition
by such person or persons) assets from the Corporation or the Bank that have a total gross fair market value equal to or more than
40 percent of the total gross fair market value of all of the assets of the Corporation or the Bank immediately prior to such acquisition
or acquisitions. For this purpose, gross fair market value means the value of assets of the Corporation or the Bank, or the value
of the assets being disposed of, determined without regard to any liabilities associated with such assets.

 

There is no Change
in Control under this Section 13(d)(3) if there is a transfer of assets to any entity that is:

 

(i)          A shareholder
of the Corporation or the Bank (immediately before the asset transfer) in exchange for or with respect to its stock;

 

(ii)          An entity,
50 percent or more of the total value or voting power of which owned, directly or indirectly, by the Corporation or the Bank;

 

(iii)          A person,
or more than one person acting as a group, that owns, directly or indirectly, 50 percent or more of the total value or voting power
of all the outstanding stock of the Corporation or the Bank; or

 

(iv)          An entity,
at least 50 percent of the total value or voting power of which is owned, directly or indirectly, by a person described in (i),
(ii), or (iii) above.

 

For purposes of this
Section 13(d), persons will not be considered to be acting as a group solely because they purchase or won stock or purchase assets
of the Corporation or the Bank at the same time. However, persons will be considered to be acting as a group if they are owners
of a corporation that enters into a merger, consolidation, purchase or acquisition of assets, or similar transaction, such shareholder
is considered to be acting as a group with other shareholders in a corporation only to the extent of the ownership in that corporation
prior to the transaction giving rise to the change and not with respect to the ownership interest in the other corporation.

 

    	-9- 

     

    

 

(e)          If the Corporation
or the Bank enters into an agreement, the consummation of which would result in the occurrence of a Change of Control pursuant
to Section 13(d) above, or, any person publicly announces an intention to take action which if consummated would constitute a Change
of Control pursuant to Section 13 (d) above, the Company shall, as soon as possible, but in no event longer than thirty (30) days
following the event described in this Section 13(e), make a contingent contribution to the Trust in an amount that is sufficient
to pay each Plan Participant or beneficiary the benefit to which Plan Participants or beneficiaries would be entitled pursuant
to the terms of the Plans as of the date on which the event described in this Section 13(e) occurs. The contribution under this
Section 13(e) shall be determined in accordance with Section 13(f). If a Change of Control, as described in Section 13(d) above,
does not occur within one year of an event described in this Section 13(e), then the Trustee shall return to the Company an amount
equal to the contingent contribution plus any earnings thereon; further provided, if a Change of Control occurs within one year
of an event described in this Section 13(e), the contingent contribution shall become an irrevocable contribution to the Trust.

 

(f)          For purposes
of determining the contribution made pursuant to Section 1(e) or Section 13(e) hereto, the contribution to be made with respect
to each Plan shall be equal in amount to the lump sum equivalent of the most valuable benefit to be provided by each Plan. Determination
of lump sum equivalent amounts under this Agreement shall be made utilizing reasonable actuarial assumptions made by an actuary
selected by the disinterested members of the Board of Directors of the Company.

 

(g)          Actions of
the Trustee may be evidenced by a written instrument signed by the Trustee, and all third parties shall be entitled to rely on
said written instrument.

 

(h)          This Agreement
shall be executed in any number of counterparts, each one of which shall be deemed to be the original although the others shall
not be produced.

 

(i)          This Agreement
shall be binding upon the Company and the Trustee, their successors and assigns.

 

(j)          Notwithstanding
anything contained in this Trust Agreement to the contrary, if at any time the Trust finally is determined by the Internal Revenue
Service ("IRS") not to be a "grantor trust" with the result that the income of the Trust Fund is not treated
as income of the Employer pursuant to subpart E of subchapter J of the Code, or if a tax is finally determined by the IRS or is
determined by counsel to the Trustee to be payable by a Plan Participant in respect of any interest in the Trust Fund prior to
payment of such interest to such Plan Participant or beneficiary pursuant to the Plan Participant's respective Plan, the assets
will remain in the Trust pending distribution pursuant to the provisions of the Plan; provided, however, that amounts shall be
distributed annually by the Trustee, if requested by the Plan Participant or beneficiary, in an amount not in excess of the greater
of (i) the tax liability resulting to the Plan Participant or beneficiary from the treatment of the Trust assets as taxable to
the Plan Participant or beneficiary, (ii) the amount of the annual taxable earnings of the Trust allocable to the Plan Participant's
or beneficiary, or (iii) amounts properly distributable to the Plan Participant or beneficiary pursuant to the provisions of the
Plan Participant's Plan. Further provided, however, if the amount distributed to the Plan Participant pursuant to this Section
13(j) exceeds the amount he is otherwise entitled to under his respective Plan, the Plan Participant will recontribute to the Trust
the amount of the distribution net of taxes.

 

    	-10- 

     

    

 

(k)          For purposes
of this Agreement "Change of Control" and "Change in Control" shall have the same meaning when referring to
this Agreement and any Plan set forth in Appendix A.

 

IN WITNESS WHEREOF,
the Corporation and the Bank have caused this Trust Agreement to be executed and attested to on their behalf by their respective
duly authorized officers and the Trustee has caused this Trust Agreement to be executed and attested to on its behalf by its duly
authorized officers as of the day and year first above written.

 

	ATTEST:	 	CODORUS VALLEY BANCORP, INC.
	 	 	 	 
	 	 	 	 
	/s/  Harry R. Swift      	 	By:  	/s/  Larry J. Miller
	(Assistant) Secretary	 	 	Authorized Executive Officer
	 	 	 	 
	(SEAL)	 	 	 
	 	 	 	 
	 	 	 	 
	ATTEST:	 	PEOPLESBANK, a Codorus Valley Company
	 	 	 	 
	 	 	 	 
	/s/  Sherry Ann Martin	 	By:  	 /s/ Larry J. Miller
	(Assistant) Secretary	 	 	Authorized Executive Officer
	 	 	 	 
	(SEAL)	 	 	 
	 	 	 	 
	 	 	 	 
	ATTEST:	 	TRUSTEE:
	 	 	HERSHEY TRUST COMPANY
	 	 	 	 
	/s/  Andrew G. Keefer	 	By:  	 /s/
Lise M. Shehan
	(Assistant) Secretary	 	 	(Vice)-President and Trust Officer

 

(SEAL)

 

 

    	-11- 

     

    

APPENDIX A

 

Reference to Plans set forth below includes any amendments to the Plans:

 

 

 

 

	Larry
    J. Miller	 -
    Employment Agreement
	 	 -
    Salary Continuation Agreement
	 	 -
    Long Term Nursing Care Agreement
	 	 
	Kent A.
    Ketterman	 -
    Employment Agreement
	 	 -
    Salary Continuation Agreement
	 	 
	Harry
    R. Swift	 -
    Change of Control Agreement
	 	 -
    Salary Continuation Agreement
	 	 
	Mathew
    A. Clemens	 -
    Change of Control Agreement
	 	 -
    Salary Continuation Agreement
	 	 
	Jann A.
    Weaver	 -
    Change of Control Agreement
	 	 -
    Salary Continuation Agreement
	 	 
	Lynn D.
    Crenshaw	 -
    Change of Control Agreement

 

 

 

 

 

    	12 

     

    

RESIGNATION AND APPOINTMENT OF TRUSTEE

 

 

WHEREAS, Codorus Valley Bancorp, Inc. (the “Settlor”)
established the Codorus Valley Bancorp, Inc. Change in Control and Supplemental Benefit Trust (the “Trust”) pursuant
to the Change in Control and Supplemental Benefit Trust Agreement dated January 25, 2006 (the “Trust Agreement”).

WHEREAS, Hershey Trust Company is currently the sole
trustee of the Trust.

WHEREAS, Section 10(a) of the Trust Agreement provides
that the trustee of the Trust may resign at any time by providing written notice to the Settlor, which resignation shall be effective
sixty days after receipt of such notice unless the Settlor and the trustee agree otherwise to an effective date which is shorter
than the sixty day period.

WHEREAS, Section 10(d) of the Trust Agreement provides
that if the trustee of the Trust resigns, a successor shall be appointed in accordance with Section 11 of the Trust Agreement by
the effective date of the resignation.

WHEREAS, Section 11 of the Trust Agreement provides
that if the trustee of the Trust resigns, the Settlor may appoint a financial institution that possesses corporate trustee powers
under state law as the successor to replace the trustee upon resignation.

WHEREAS, Hershey Trust Company desires to resign as
trustee of the Trust and the Settlor desires to appoint Counsel Trust Company as trustee of the Trust.

WHEREAS, Hershey Trust Company and the Settlor desire
to waive the sixty day notice period.

NOW WHEREFORE, Hershey Trust Company hereby resigns
as the trustee of the Trust and the Settlor hereby appoints Counsel Trust Company as the trustee of the Trust.

FURTHER, Hershey Trust Company and the Settlor hereby
waive the sixty day notice period and hereby agree that the aforementioned resignation and appointment shall be effective as of
the first date when (i) both of Hershey Trust Company and the Settlor have executed this Resignation and Appointment and (ii) Counsel
Trust Company has accepted its appointment as the trustee of the Trust.

 

 

[signature page follows]

 

 

 

    	-13- 

     

    

NOW WHEREFORE, the Settlor
has executed this Resignation and Appointment on the date indicated below.

 

	Dated:  November 21, 2011	Codorus
    Valley Bancorp, Inc.
	 	 	 
	 	By:  	 
	 	 	Name:  Larry J. Miller
	 	 	Title:    President
    and CEO

 

 

Before the undersigned personally appeared
Larry J. Miller as President and CEO of Settlor and certified he/she executed this Resignation and Appointment for the purposes
stated within on this ______ day of November, 2011.

 

	 	 	 
	 	 
	 	Notary Public
	 	 	 
	 	My Commission Expires:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	-14- 

     

    

NOW WHEREFORE, Hershey
Trust Company has executed this Resignation and Appointment on the date indicated below.

 

 

	Dated:  November 18, 2011	HERSHEY TRUST COMPANY
	 	 	 
	 	By:  	 
	 	 	Name:  David P. Lavery
	 	 	Title:    Interim
    Chief Executive Officer

 

 

Before the undersigned personally appeared
David P. Lavery as Interim Chief Executive Officer of Hershey Trust Company and certified he executed this Resignation and Appointment
for the purposes stated within on this ______ day of November, 2011.

 

 

	 	 	 
	 	 
	 	Notary Public
	 	 	 
	 	My Commission Expires:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	-15- 

     

    

NOW WHEREFORE, Counsel
Trust Company hereby acknowledges receipt of this Resignation and Appointment and accepts its appointment as the trustee of the
Trust.

 

 

	Dated:  November 22, 2011	COUNSEL TRUST COMPANY
	 	 	 
	 	By:  	 
	 	 	Name:  David L. Dolan
	 	 	Title:    President

 

 

Before the undersigned personally appeared
David L. Dolan as President of Counsel Trust Company and certified he/she executed this Resignation and Appointment for the purposes
stated within on this ______ day of November, 2011.

 

 

	 	 	 
	 	 
	 	Notary Public
	 	 	 
	 	My Commission Expires:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	-16-atrs-ex1020_541.htm

 

Exhibit 10.20

Execution Version

SEPARATION AND CONSULTING SERVICES AGREEMENT

This SEPARATION AND CONSULTING SERVICES AGREEMENT (this “Agreement”) is entered into as of February 4, 2016 to be effective on the Effective Date (as defined in Section 1 below), by and between Antares Pharma, Inc. (the “Company”) and Eamonn P. Hobbs (the “Executive”).  

RECITALS

WHEREAS, pursuant to the terms of an Employment Agreement, effective as of June 23, 2014, entered into by and between the Company and Executive (the “Employment Agreement”), Executive has been employed as the Company’s President and Chief Executive Officer; 

WHEREAS, the Company and Executive have come to a mutual agreement with respect to Executive’s termination from employment with the Company to be effective January 24, 2016 (the “Termination Date”); 

WHEREAS, in connection with Executive’s termination from employment with the Company, at the request of the Board of Directors of the Company (the “Board”), Executive resigned as an officer of the Company and as a member of the Board and any and all committees or subcommittees thereof, as applicable, effective as of the Termination Date; and

WHEREAS, as consideration for Executive’s execution and non-revocation of a release of all claims against the Company and its affiliates contemporaneous with this Agreement, the Company is willing to enter into this Agreement pursuant to which Executive will provide certain services to the Company as a consultant following the Termination Date for the payments set forth herein; and 

WHEREAS, as consideration for Executive’s execution and non-revocation of a release of all claims against the Company and its affiliates upon the Termination Date, the Company desires to provide Executive with the severance payments and benefits set forth in Section 1(a) below following the Termination Date.

 

 

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

1. Resignation from Board; Termination from Employment.  Executive resigns as an officer of the Company and as a member of the Board and any and all committee and/or subcommittees thereof, as applicable, as of the Termination Date.  Executive’s termination from employment with the Company shall be effective on the Termination Date.  Consistent with Section 3(c) of the Employment Agreement and provided that the terms and conditions set forth herein are satisfied, Executive shall be entitled to the following:  

(a) Severance Payments and Benefits.  In consideration of the payments in this Section 1(a), Executive hereby agrees to execute and not revoke the General Release of Claims attached hereto as Exhibit A (the “Release”).  Provided that the Release becomes effective in accordance with the terms set forth therein (such date the Release becomes effective, the “Effective Date”), and so long as Executive continues to comply with the provisions of the Proprietary Information and Invention Assignment Agreement dated June 23, 2014 (defined in Section 6(a) of the Employment Agreement) and the restrictive covenants and representations in Section 6 of the Employment Agreement, Executive will receive the following severance payments: 

(i) Continued Base Salary.  The Company will pay Executive a severance payment equal to twelve (12) months of base salary at the rate in effect immediately prior to the Termination Date, less applicable tax withholding, paid in equal monthly installments beginning within sixty (60) days following the Termination Date and each payroll date thereafter until fully paid, in accordance with the Company’s regular payroll practices.

(ii) Health Benefits.  For the twelve (12) month period following the Termination Date, provided that Executive is eligible for, and timely elects COBRA continuation coverage, the Company will pay on Executive’s behalf, the monthly cost of COBRA continuation coverage under the Company’s group health plan for Executive and, where applicable, his spouse and dependents, at the level in effect as of the Termination Date, less the employee portion of the applicable premiums that Executive would have paid had he remained employed during the such twelve (12) month period (the COBRA continuation coverage period shall run concurrently with the twelve (12) month period that COBRA premium payments are made on Executive’s behalf under this subsection 1(a)(ii)).  These payments on Executive’s behalf will commence within the sixty (60)-day period following the Termination Date and will be paid on the first payroll date of each month through the twelfth (12th) month following the Termination Date.  Notwithstanding the foregoing, the Company’s payment of the monthly COBRA premiums in accordance with this subsection 1(a)(ii) shall cease immediately upon the earlier of:  (A) the end of twelve (12) month period following the Termination Date, or (B) the date that Executive is eligible for comparable coverage with a subsequent employer.  Executive agrees to notify the Company in writing immediately if subsequent employment is accepted prior to the end of the twelve (12) month period following the Termination Date and Executive agrees to repay to the Company any COBRA premium amount paid on Executive’s behalf during such period for any period of employment during which group health coverage is available through a subsequent employer.  Notwithstanding the foregoing, the Company reserves the right to restructure the foregoing COBRA premium payment arrangement in any manner necessary or appropriate to avoid fines, penalties or negative tax consequences to the Company or Executive (including, without 

2

 

limitation, to avoid any penalty imposed for violation of the nondiscrimination requirements under the Patient Protection and Affordable Care Act or the guidance issued thereunder), as determined by the Company in its sole and absolute discretion.

(iii) Time-Based Equity Award Acceleration.  All outstanding equity awards held by Executive on the Termination Date granted under the Antares Pharma, Inc. 2008 Equity Incentive Plan, as amended from time to time (the “2008 Plan”) immediately prior to Executive’s Termination Date which vest based on Executive’s continued services over time that would have become vested during the twelve (12) month period following the Termination Date had Executive remained employed during such twelve (12) month period following Executive’s Termination Date shall accelerate, become fully vested and exercisable as of the Termination Date.   Notwithstanding anything to the contrary, the post-termination exercise periods applicable to Executive’s stock options will commence upon the termination of the Term (defined below) and will extend until the later of April 23, 2017 and the end of the post-termination exercise periods set forth in the applicable stock option agreements and the 2008 Plan.  Except as provided in this Section 1(a)(iii) and Section 2(b)(ii) below, all equity awards that have not vested as of the Termination Date will automatically terminate and be canceled on the Termination Date, and Executive hereby fully and forever waives and releases any and all right to such terminated and canceled equity awards.   

(iv) 2015 Annual Bonus.  The Company will pay Executive the amount of Executive’s bonus earned for fiscal year 2015, if any, less applicable taxes, which will be determined in accordance with Section 2(b) of the Employment Agreement and will be paid to Executive at the same time and terms and conditions as such bonuses are paid to other executives of the Company who participate in the 2015 bonus plan. 

(v) 2016 Annual Bonus.  The Company will pay to Executive a pro rata annual bonus for fiscal year 2016, which shall be determined based on Executive’s actual annual bonus earned for fiscal year 2016, if any, based on actual performance, multiplied by a fraction, the numerator of which is twenty-four (24) (representing the number of days in which Executive was employed by Company during fiscal year 2016), and the denominator of which is three hundred sixty-five (365).  The pro rata annual bonus for fiscal year 2016 will be paid at the same time and under the same terms and conditions as bonuses are paid to other executives of the Company, on or after January 1, 2017 but not later than March 15, 2017.

(b) Payment in lieu of Notice.  Without regard to whether Executive executes or revokes the Release, the Company will pay Executive an amount equal to $67,152.00, which equals thirty (30) days of base salary, in lieu of the Company’s obligation to provide notice of termination pursuant to Section 3(c) of the Employment Agreement, less applicable tax withholding and normal deductions.  Such amount will be paid to Executive on the Company’s next regular payroll date after the Termination Date.  

(c) Accrued Wages and Benefits. Without regard to whether Executive executes or revokes the Release, the Company will pay or provide Executive with any amounts earned, accrued and owing but not yet paid under Section 2 of the Employment Agreement including but not limited to base salary for services rendered through the Termination Date and any benefits accrued and due under any applicable benefit plans and programs of the Company.  The 

3

 

Company will pay Executive the amount of $15,948.60 based on fifty seven (57) hours of accrued but unused vacation. Upon the Executive’s receipt of his final paycheck, which includes payment for services through the Termination Date and the amount set forth in the preceding sentence for accrued but unused vacation, Executive will have received all wages and benefits owed to him by virtue of his employment with the Company or termination thereof.   Executive is not eligible for any other payments or benefits by virtue of his employment with the Company or termination thereof except for those expressly described in this Agreement. Employee will receive the payments described in Section 1(c) whether or not he signs this Agreement. Employee will not receive the separation pay or benefits described in Sections 1(a) and 1(b) of this Agreement if he (i) does not sign this Agreement, (ii) rescinds the release of claims in accordance with the Release, or (iii) violates any of the terms and conditions set forth in this Agreement.

2. Consulting Services.  For twelve (12) months following the Termination Date, Executive agrees to provide consulting services to the Company in accordance with this Section 2.  The period commencing on the Termination Date and ending on the earlier of (i) the date on which Executive ceases to provide services in accordance with this Section 2 and (ii) January 23, 2017 is referred to herein as the “Consulting Period,” or the “Term”).  

(a) Consulting Services to be Provided.  During the Consulting Period, Executive shall perform consulting services for the Company as and when reasonably requested by the Company.  In connection therewith, Executive shall provide analyses, participate in meetings and provide other reasonable consulting services as reasonably assigned to Executive by Robert F. Apple and Peter J. Graham.  The foregoing activities of Executive shall be referred to for purposes of this Agreement as the “Consulting Services.”   

(b) Compensation; No Benefits.  

(i) Compensation.  During the Consulting Period, the Company shall pay Executive compensation for the Consulting Services equal to $300 per hour (“Consulting Fees”).  Executive shall make himself available to perform the Consulting Services, provided however, that the Company is under no obligation to request any Consulting Services during the Consulting Period and Executive will only be paid the Consulting Fees for Consulting Services actually performed for the Company at the Company’s request.  The Company and Executive agree that it is reasonably anticipated that the Consulting Services hereunder will require Executive to render Consulting Services at a level that will not exceed 20% of the average level of services that Executive rendered to the Company as an employee of the Company.  The Company shall reimburse Executive for all reasonable expenses incurred by Executive in connection with the performance of the Consulting Services during the Consulting Period, in accordance with the Company’s expense reimbursement policies. 

(ii) Equity Participation.  In accordance with the terms of Executive’s applicable performance stock unit agreement and the 2008 Plan, Executive’s performance stock unit award will continue to vest during the Consulting Period.  Notwithstanding anything to the contrary, the post-termination exercise periods applicable to Executive’s stock options will commence upon the termination of the Term and will extend until the later of April 23, 2017 and the end of the post-termination exercise periods set forth in the applicable stock option agreements and the 2008 Plan.   

4

 

(iii) No Benefits.  As of the Termination Date, Executive shall not be an employee of the Company and under no circumstances shall he be entitled to participate in or receive any benefit or right as an employee under any Company employee benefit or executive compensation plan, including, without limitation, employee insurance, pension, savings, medical, health care, fringe benefit, stock option, equity compensation, deferred compensation or bonus plans, regardless of whether Executive’s status is re-characterized by a third party to constitute employee status during the Consulting Period.   

(c) Independent Contractor; Performance.  Executive’s employment with the Company shall cease as of the Termination Date.  For purposes of this Agreement and all Consulting Services to be provided hereunder, during the Consulting Period, Executive shall not be considered an employee of the Company, but shall remain in all respects an independent contractor of the Company, and neither party to this Agreement shall have any right or authority to make or undertake any promise, warranty or representation, to execute any contract, or otherwise to assume any obligation or responsibility in the name of or on behalf of the other party.  Executive shall direct the means, manner, and method by which he performs the Consulting Services during the Consulting Period.  Executive shall perform all Consulting Services in a professional manner, consistent with industry standards and the Company’s goals and ethical standards as communicated to Executive by the Company.

3. Indemnification.

(a) Indemnification of Executive.  Except as set forth in Section 11 below, the Company shall indemnify, defend and hold harmless Executive and his heirs, successors and permitted assigns from and against any and all losses, claims, demands, suits, proceedings, damages, liabilities, losses, and expenses (including reasonable legal fees and costs) to which Executive may become subject to, arising out of, relating to or in connection with Executive’s performance of the Consulting Services hereunder during the Term, except in the case of Executive’s bad faith, willful misconduct or gross negligence.  

(b) Indemnification of the Company.  Executive shall indemnify, defend and hold harmless the Company and its affiliates from and against any losses, claims, demands, suits, proceedings, damages, liabilities, losses, and expenses (including reasonable legal fees and costs) to which the Company or its affiliates may become subject to, arising out of, relating to or in connection with, the Consulting Services hereunder during the Term, except in the case of bad faith, willful misconduct or gross negligence of the Company or its affiliates.

4. Restrictive Covenants.  Executive and Company agree that Section 6 of the Employment Agreement continues to remain in full force and effect in accordance with the terms therein and are hereby incorporated by reference; provided, that the Company agrees that Executive may retain his Company issued iPhone 6 (along with the phone number which Company agrees to transfer to Executive) and his Company issued computer but Executive must provide such phone and computer to the Company so that the Company can conduct an inspection to insure that all Company information and emails have been removed.

5. Termination.  Although it is the intention of the Company and Executive that the Consulting Services and this Agreement continue until the one (1) year anniversary of the 

5

 

Termination Date, either the Company or Executive may terminate the Consulting Services and the Consulting Services related provisions of this Agreement relating to the Consulting Services for any reason or no reason, provided that the terminating party gives the other party 30 days’ notice of termination in accordance with the requirements of Section 13 below.  If Executive terminates the Consulting Services and this Agreement, Executive agrees, at the Company’s reasonable request, to make himself available to assist in the completion of any projects with which Executive was assisting during the Term.  Notwithstanding anything in this Agreement to the contrary, if the Company terminates the Consulting Services and this Agreement for Cause (as defined below), this Agreement and the Consulting Services hereunder shall terminate immediately upon notice of termination to Executive.  Following the termination of this Agreement for any reason or no reason, Executive will receive any unreimbursed expenses through such date of termination not theretofore paid, and the Consulting Services to the Company shall be terminated.  Within five (5) days after Executive ceases to provide any Consulting Services hereunder, Executive shall deliver to the Company all work product resulting from the performance of the Consulting Services.  For purposes of this Agreement, “Cause” shall include the following: (i) Executive’s dishonesty, fraud or misrepresentation in connection with the performance of the Consulting Services pursuant to the terms hereof, (ii) theft, misappropriation or embezzlement by Executive of the Company’s funds or resources, (iii) Executive’s conviction of, or a plea of guilty or nolo contendere (or a similar plea) in connection with, any felony, crime involving fraud or misrepresentation, or any other crime, and (iv) a breach by Executive of any material term hereof.

6. Non-Admission. It is expressly understood that this Agreement does not constitute, nor will it be construed as an admission by the Company of any liability or unlawful conduct whatsoever.  The Company specifically denies any liability or unlawful conduct.

7. Section 409A.   This Agreement is intended to comply with section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and its corresponding regulations, or an exemption, and payments may only be made under this Agreement upon an event and in a manner permitted by section 409A of the Code, to the extent applicable.  For purposes of section 409A of the Code, all payments to be made upon a termination of employment under this Agreement may only be made upon a “separation from service” within the meaning of such term under section 409A of the Code, each payment made under this Agreement shall be treated as a separate payment and the right to a series of installment payments under this Agreement is to be treated as a right to a series of separate payments.  In no event shall Executive, directly or indirectly, designate the calendar year of payment of any severance benefits.  All reimbursements and in-kind benefits provided under this Agreement shall be made or provided in accordance with the requirements of section 409A of the Code. 

8. No Conflicting Agreements; Non-Exclusive Engagement during the Consulting Period.  Other than the Employment Agreement, which is replaced and superseded by this Agreement, Executive represents that he is not a party to any existing agreement which would prevent him from entering into and performing this Agreement.  Executive shall not enter into any other agreement that is in conflict with his obligations under this Agreement.  The Company acknowledges that Executive may enter into an employment agreement with or providing consulting services to a third party during the Consulting Period, subject to Section 4 hereof.  With respect to the Consulting Services to be performed during the Consulting Period, the 

6

 

Company may from time to time engage other persons and entities to act as consultants to the Company and perform similar services for the Company, and enter into agreements similar to this Agreement with other persons or entities, in all cases without the necessity of obtaining approval from Executive.

9. Entire Agreement, Amendment and Assignment.  Except as otherwise provided in a separate writing between the Company and Executive, this Agreement, including the attachments hereto, is the sole agreement between the Company and Executive with respect to the subject matter hereof and it supersedes all prior agreements and understandings with respect thereto, and all prior agreements and understandings with respect to his employment with the Company prior to the Termination Date, whether oral or written, including, but not limited to, the Employment Agreement (except for Section 6 (including the Proprietary Information and Invention Assignment Agreement dated June 23, 2014) and 15 therein).  No modification to any provision of this Agreement shall be binding unless in writing and signed by the Company and Executive.  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, executors, administrators, legal representatives, successors and permitted assigns of the parties hereto, except that the duties and responsibilities of Executive hereunder are of a personal nature and shall not be assignable or delegable in whole or in part by Executive.

10. Waiver.  No waiver of any rights under this Agreement shall be effective unless in writing signed by the party to be charged.  A waiver by any of the parties hereto of a breach of any provision of this Agreement by another party shall not operate or be construed as a waiver of any subsequent breach. 

11. Taxes.  All payments under this Agreement shall be made subject to applicable tax withholding, and the Company shall withhold from any payments under this Agreement, all federal, state and local taxes as the Company is required to withhold pursuant to any law or governmental rule or regulation.  Executive shall bear all expense of, and be solely responsible for, all federal, state and local taxes due with respect to any payment received under this Agreement.  

12. Governing Law; Venue.  This Agreement shall be governed in accordance with the laws of the State of New Jersey, without regard to the conflicts of law or choice of law principles thereof.  If any dispute between the parties leads to litigation, the parties agree that the courts of the State of New Jersey or the federal courts in New Jersey shall have the exclusive jurisdiction and venue over such litigation.  All parties consent to personal jurisdiction in the State of New Jersey, and agree to accept service of process outside of the State of New Jersey as if service had been made in that state.  

7

 

13. Notices.  All notices, demands or other communications to be given or delivered under or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been given when delivered personally to the recipient, two business days after the date when sent to the recipient by reputable express courier service (charges prepaid) or four (4) business days after the date when mailed to the recipient by certified or registered mail, return receipt requested and postage prepaid.  Such notices, demands and other communications shall be sent to Executive and to the Company at the addresses set forth below,

 

	
If to Executive:
	
 
	
The most recent address in the Company’s files.

	
If to the Company:
	
 
	
Antares Pharma, Inc.

100 Princeton South

Suite 300

Ewing, NJ 08628

Attn:  Peter J. Graham, Senior Vice President, General Counsel, Human Resources, and Secretary

 

With a copy to: 

Morgan, Lewis and Bockius LLP

1701 Market Street

Philadelphia, PA 19103

Attn: Joanne R. Soslow, Esq. 

(215) 963-5001 (facsimile)

 

or to such other address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party.

14. Confidentiality of this Agreement.  Executive agrees not disclose to others the fact or terms of this Agreement, except Executive may disclose such information to his spouse or domestic/civil union partner and to his attorney or accountant (in order for such individuals to render professional services to Executive), so long as such individuals agree to keep such information confidential.  Nothing in this Section 14, or elsewhere in this Agreement, is intended to prevent or prohibit Executive from (a) providing information regarding Executive’s former employment relationship with the Company, as may be required by law or legal process, or (b) cooperating, participating or assisting in any government entity investigation or proceeding.  

15. Survivability.  The respective rights and obligations of the parties under this Agreement shall survive termination of Executive’s services hereunder to the extent necessary to the intended preservation of such rights and obligations. 

16. Counterparts and Electronic Signatures.  This Agreement shall become binding when any one or more counterparts hereof, individually or taken together, shall bear the signatures of Executive and the Company.  This Agreement may be executed in two or more counterparts (including facsimile counterparts or as a “pdf” or similar attachment to an email), each of which shall be deemed to be an original as against any party whose signature appears thereon, but all of which together shall constitute but one and the same instrument.

8

 

17. Severability.  If any provision of this Agreement or application thereof to anyone or under any circumstances is adjudicated to be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect any other provision or application of this Agreement which can be given effect without the invalid or unenforceable provision or application and shall not invalidate or render unenforceable such provision or application in any other jurisdiction.

18. Headings. The headings of sections and subsections appearing in this Agreement are inserted for convenience only and shall not control the meaning or interpretation of any provisions of this Agreement. 

[Signature Page Follows]

9

 

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

 

			
	
ANTARES PHARMA, INC.

	
 

	
By:
	
 
	
/s/ Peter J. Graham

	
Name: Peter J. Graham

	
Title: SVP, General Counsel

	
 

	
EAMONN P. HOBBS

	
 

	
/s/ Eamonn P. Hobbs

 

10

 

Exhibit A

GENERAL RELEASE OF CLAIMS

In consideration of the severance benefits payable to Eamonn P. Hobbs (“Executive”) under Section 1(a) of the attached Separation and Consulting Services Agreement dated as of February 4, 2016, by and between Antares Pharma, Inc. (the “Company”) and Executive (the “Agreement”), the terms of which are incorporated by reference to this General Release of Claims (“Release”)), the consulting services provided thereafter, and the potential Consulting Fees (as defined in the Agreement) provided to Executive in accordance with Section 2(b) of the Agreement, Executive hereby executes this Release on his own behalf and also on behalf of any heirs, agents, representatives, successors and assigns that he has now or may have in the future.  

1. General Waiver & Release.  Executive hereby waives and releases any and all claims, subject to and without waiving any rights identified in Section 1(c), whether or not now known to Executive, whether legal, equitable or otherwise, against the Company, its parent, subsidiary and affiliated companies, and all of their past and present officers, directors, employees, agents and assigns (collectively, “Releasees”), arising from or relating to any and all acts, events and omissions occurring prior to the date Executive signs this Release.

(a) Included Claims.  The claims being waived and released include, without limitation:

(i) any and all claims arising from or relating to Executive’s recruitment, hire, employment and termination of employment with the Company;

(ii) any and all claims of wrongful discharge, emotional distress, defamation, misrepresentation, fraud, detrimental reliance, breach of contractual obligations, promissory estoppel, negligence, assault and battery, violation of public policy; 

(iii) any and all claims for monetary damages arising under the Age Discrimination in Employment Act of 1967 (“ADEA”) as amended, the Older Workers Benefit Protection Act of 1990 (“OWBPA”), Title VII of the Civil Rights Act of 1964 as amended, and the Americans with Disabilities Act of 1990 as amended; 

(iv) any and all claims, outside of those identified in Section (1)(a)(iii), of unlawful discrimination, harassment and retaliation under applicable federal, state and local laws and regulations; 

(v) any and all claims, outside of those identified in Section (1)(a)(iii), of violation of any federal, state and local law relating to recruitment, hiring, terms and conditions of employment, and termination of employment; and 

(vi) any and all claims for monetary damages and any other form of personal relief.

(b) Unknown Claims.  In waiving and releasing any and all claims, subject to and without waiving any rights identified in Section 1(c), against the Releasees, whether or not now known to Executive, Executive understands that this means that, if Executive later discovers facts different from or in addition to those facts currently known by Executive, or believed by Executive to be 

11

 

true, the waivers and releases of this Release shall remain effective in all respects -- despite such different or additional facts and Executive’s later discovery of such facts, even if Executive would not have agreed to this Release if Executive had prior knowledge of such facts.

(c) Exceptions.  The foregoing shall in no event apply to any claims that, as a matter of applicable law, are not waivable.  Executive and the Company agree that nothing in this Agreement prevents or prohibits Executive from:  (i) making any disclosure of relevant and necessary information or documents in connection with any charge, action, investigation, or proceeding relating to this Agreement, or as required by law or legal process; (ii) participating, cooperating, or testifying in any charge, action, investigation, or proceeding with, or providing information to, any self-regulatory organization, governmental agency or legislative body, and/or pursuant to the Sarbanes-Oxley Act, (iii) filing, testifying, participating in or otherwise assisting in a proceeding relating to an alleged violation of any federal, state or municipal law relating to fraud, or any rule or regulation of the Securities and Exchange Commission or any self-regulatory organization or (iv) challenging the knowing and voluntary nature of the release of ADEA claims pursuant to the OWBPA.  To the extent permitted by law, upon receipt of any subpoena, court order or other legal process compelling the disclosure of any such information or documents, Executive agrees to give prompt written notice to the Company so as to permit the Company to protect their interests in confidentiality to the fullest extent possible.  To the fullest extent provided by law, Executive acknowledges and agrees, however, Executive is waiving any right to recover monetary damages in connection with any such charge, action, investigation or proceeding.  To the extent Executive receives any monetary relief in connection with any such charge, action, investigation or proceeding, the Company will be entitled to an offset for the benefits made pursuant to this Agreement, to the fullest extent provided by law.

Executive and the Company further agree that the Equal Employment Opportunity Commission (“EEOC”) and comparable state or local agencies have the authority to carry out their statutory duties by investigating charges, issuing determinations, and filing lawsuits in Federal or state court in their own name, or taking any action authorized by the EEOC or comparable state or local agencies.  Executive retains the right to participate in any such action and to seek any appropriate non-monetary relief.  Executive retains the right to communicate with the EEOC and comparable state or local agencies and such communication can be initiated by Executive or in response to the government and such right is not limited by any non-disparagement claims.  Executive and the Company agree that communication with employees plays a critical role in the EEOC’s enforcement process because employees inform the agency of employer practices that might violate the law.  For this reason, the right to communicate with the EEOC is a right that is protected by federal law and this Agreement does not prohibit or interfere with those rights.  Notwithstanding the foregoing, Executive agrees to waive his right to recover monetary damages in any charge, complaint or lawsuit filed by him or by anyone else on his behalf.  

12

 

In addition to actions specifically identified above, Executive may also still bring claims:

(i) for unemployment, state disability and/or paid family leave insurance benefits pursuant to the terms of applicable state law; 

(ii) for continuation of existing participation in Company-sponsored group health benefit plans, at Executive’s full expense, under the federal law known as “COBRA” and/or under an applicable state counterpart law;

(iii) for any benefit entitlements that are vested as of the Termination Date pursuant to the terms of a Company-sponsored benefit plan governed by the federal law known as “ERISA;” 

(iv) for any vested stock and/or vested option shares pursuant to the written terms and conditions of Executive’s existing stock and stock option grants and agreements, existing as of the Termination Date and for all such rights that are granted in and survive the Agreement, including accelerated vesting and post-termination exercise rights; 

(v) for violation of any federal, state or local statutory and/or public policy right or entitlement that, by applicable law, is not waivable; 

(vi) for any wrongful act or omission occurring after the date Executive signs this Release;

(vii) for any continuing rights to indemnification and defense under Section 15 of the Employment Agreement and under the Company’s governing documents, by-laws, policies and insurance policies; and

(viii) in his capacity as a stockholder of the Company.

2. Entire Agreement.  This Release and the Agreement contain the entire agreement of Executive and the Company with respect to the subject matter hereof and supersede and render null and void any and all prior or contemporaneous oral or written understandings, statements, representations or promises pertaining to the matters set forth herein and in the Agreement.   

3. Severability.  If any term or provision of this Release shall be held to be invalid or unenforceable for any reason, then such term or provision shall be ineffective to the extent of such invalidity or unenforceability without invalidating the remaining terms or provisions hereof, and such term or provision shall be deemed modified to the extent necessary to make it enforceable.  The unenforceability or invalidity of a provision of this Release in one jurisdiction shall not invalidate or render that provision unenforceable in any other jurisdiction.

4. Governing Law; Venue.  This Release shall be governed in accordance with the laws of the State of New Jersey, without regard to the conflicts of law or choice of law principles thereof.  If any dispute between the parties leads to litigation, the parties agree that the courts of the State of New Jersey or the federal courts in New Jersey shall have the exclusive jurisdiction and venue over such litigation.  All parties consent to personal jurisdiction in the State of New Jersey, and agree to accept service of process outside of the State of New Jersey as if service had been made in that state.  

13

 

5. Further Acknowledgements. Executive acknowledges that:

(a) Executive has been offered a period of at least twenty-one (21) calendar days from the date he received this Release within which to review and consider its terms before signing it;

(b) Executive is hereby advised in writing to consult with an attorney prior to executing this Release, and he fully understands this right;

(c) Executive has carefully read and understands all of the provisions of this Release and that he is entering into this Release freely, knowingly, and voluntarily;

(d) Executive is not waiving any rights or claims that may arise after this Release is executed or any other claims that cannot be waived as a matter of law; 

(e) The consideration provided to Executive in consideration for his execution of this Release is greater than any benefits to which Executive would have been entitled had he not executed this Release;

(f) Any changes made to this Release before Executive signs it will not entitle him to an additional twenty-one (21) calendar days to review the new version of this Release;

(g) Executive is not entitled to the severance benefits set forth in Section 1(a) of the Agreement or the Consulting Fees set forth in Section 2(b) of the Agreement, unless he signs and does not revoke this Release;

(h) Executive may revoke this Release within seven (7) calendar days following its execution (the “Revocation Period”) by notifying the Company in writing, by certified letter delivered to the attention of Peter J. Graham, Senior Vice President, General Counsel, Human Resources, and Secretary, Antares Pharma, Inc., 100 Princeton South, Suite 300, Ewing, NJ 08628, and the terms of this Release shall not become effective or enforceable until the day after the expiration of the Revocation Period; and

(i) Executive is not relying upon any promises, inducements, representations, or statements that are not expressly set forth in this Release or the Agreement.  

IN WITNESS WHEREOF, Executive, acknowledging that he is acting of his own free will after receiving a reasonable period of time to consider the terms of this Release, has caused the execution of this Release as of this day and year written below.

Agreed and Accepted:

 

	
/s/ Eamonn P. Hobbs
	
 
	
February 4, 2106

	
Eamonn P. Hobbs
	
 
	
Date

 

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00255-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00255-of-00352.parquet"}]]