Document:

Exhibit

Exhibit 10.1

                
FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT AND WAIVERS

This First Amendment to Loan and Security Agreement and Waivers (this “Amendment”) is dated as of December 17, 2015 (the “First Amendment Date”), is entered into by and among GENOCEA BIOSCIENCES, INC., a Delaware corporation (“Borrower”), HERCULES TECHNOLOGY GROWTH CAPITAL, INC., a Maryland corporation (“HTGC”), in its capacity as administrative agent for itself and Lender (in such capacity, “Agent”), the Lenders otherwise a party hereto from time to time including HTGC in its capacity as a Lender, and HERCULES CAPITAL FUNDING TRUST 2014-1(“2014 Trust”), assignee of HGTC (2014 Trust and HTGC collectively, referred to as “Lender”).
Recitals
A.    Borrower, Lender and Agent entered into that certain Loan and Security Agreement, dated as of November 20, 2014 (as may be further amended, modified or restated from time to time, the “Loan Agreement”).  Capitalized terms used herein without definition shall have the same meanings given them in the Loan Agreement.
B.    Borrower has requested that the parties hereto amend the Loan Agreement as set forth herein.
C.    Borrower, Lender and Agent have agreed to amend the Loan Agreement upon the terms and conditions more fully set forth herein.
Agreement
Now, Therefore, the parties hereto agree as follows:
1.Amendments.  The Loan Agreement is amended in the following respects:

1.2Recital A.  Recital A of the Loan Agreement is amended in its entirety and replaced with the following:

A.    Borrower has requested Lender to make available to Borrower term loans (each a “Term Loan Advance” and collectively, the “Term Loan Advances”) in an aggregate principal amount of up to Twenty-Seven Million Dollars ($27,000,000) comprised of (i) a term loan (the “Term A Loan Advance”) in an aggregate principal amount of up to Twelve Million Dollars and (ii) term loans (each a “Term B Loan Advance” and collectively, the “Term B Loan Advances”) in an aggregate principal amount of up to Fifteen Million Dollars ($15,000,000); and 
1.3Section 1.1 (Definitions and Rules of Construction).  The definition of “Permitted Investment” appearing in Section 1.1 is amended by (i) deleting the word “and” appearing at the end of clause (xii), (ii) deleting the period (“.”) appearing at the end of clause (xiii), (iii) inserting in lieu thereof a semi-colon (“;”) and the word “and”, and (iv) inserting the following new clauses to appear as clause (xiv) and (xv) thereof: 
(xiv) any Investments permitted by Borrower’s investment policy attached hereto as Exhibit A, as amended from time to time, provided that any such amendment thereto has been approved in writing by Lender; and (xv) Investments in Securities Corporation, provided that Borrower is, at all times, in compliance with the Liquidity Requirement.

1.3Section 1.1 (Definitions and Rules of Construction).  The definition of “Permitted Transfer” appearing in Section 1.1 is amended by (i) deleting the word “and” appearing at the end of clause (v), (ii) deleting the period (“.”) appearing at the end of clause (vi), (iii) inserting in lieu thereof a semi-colon (“;”) and the word “and”, and (iv) inserting the following new clause to appear as clause (vii) thereof:

(vii) any transfers from time to time between Borrower and Securities Corporation, provided that Borrower, is at all times, in compliance with the Liquidity Requirement. 
1.4Section 1.1 (Definitions and Rules of Construction).  Section 1.1 is amended by deleting the following terms and their respective definitions in their entirety and replacing them with the following:
“Amortization Date” means July 1, 2017.  

 “GAAP” means generally accepted accounting principles in the United States of America, as in effect from time to time, consistently applied, except that for purposes of the classification of operating leases (other than with respect to Section 7.1), GAAP shall be determined on the basis of such principles in effect on the Closing Date.  For purposes of Section 7.1, GAAP shall be determined on the basis of such principles in effect and consistent with those used in the preparation of the most recent audited or unaudited financial statements filed with the Securities and Exchange Commission in a Form 10-K or Form 10-Q (with such changes as are permitted to be made to GAAP pursuant to Section 7.1). 

“Term Loan Maturity Date” means January 1, 2019.  

1.5Section 1.1 (Definitions and Rules of Construction).  Section 1.1 is amended by deleting the terms “Draw Period B”, “Draw Period B Milestone Event”, “Draw Period C”, and “Draw Period C Milestone Event” in their entirety.

1.6Section 1.1 (Definitions and Rules of Construction).  Section 1.1 is amended by inserting the following new terms and their respective definitions to appear alphabetically therein:

 “Cash Equivalents” means: (a) marketable direct obligations issued or unconditionally guaranteed by the United States of America or any agency or any State thereof maturing within two years from the date of acquisition thereof, (b) commercial paper maturing no more than two years from the date of creation thereof and currently having a rating of at least A-2 or P-2 from either Standard & Poor’s Corporation or Moody’s Investors Service, (c) certificates of deposit issued by any bank with an IDC Rating of greater than 150 maturing no more than two years from the date of investment therein and (d) money market accounts.  For the avoidance of doubt, this definition is only applicable for the calculation of the Liquidity Requirement.
“Draw Period D” means the period commencing on the First Amendment Date and ending on the earlier to occur of (i) December 15, 2016, and (ii) an Event of Default.
“Draw Period E” means the period commencing upon the occurrence of the Draw Period E Milestone Event and ending on the earlier to occur of (i) December 15, 2016, and (ii) an Event of Default.
“Draw Period E Milestone Event” means confirmation by Agent, in Agent’s reasonable discretion, after the First Amendment Date but on or prior to December 15, 2016, that Borrower 

has (i) demonstrated sufficient evidence to support the continued clinical progression of Borrower’s GEN-003 product, and (ii) made favorable progress in applying its proprietary technology platform towards the development of novel immunotherapies with application in oncology.
“Eligible Cash” means all unrestricted and unencumbered cash and Cash Equivalents; provided that Eligible Cash shall not include any cash or Cash Equivalents in (i) accounts or any amounts securing Borrower’s reimbursement obligations under letters of credit permitted hereunder, (ii) accounts used to fund payroll or employee benefits or (iii) withholding tax, benefits, trust, escrow, fiduciary, or similar accounts. 
“First Amendment Date” is December 17, 2015.

“IDC Rating” means: IDC Financial Publishing, Inc.’s rankings of financial ratios to determine the safety ratings of banks, bank holding companies savings institutions and credit unions. 

“Liquidity Requirement” shall have the meaning assigned to such term in Section 7.16. 

“Securities Corporation” means Genocea Securities Corp., a Massachusetts securities corporation.

“Term A Loan Advance” is defined in Recital A hereof.

“Term B Loan Advance” and “Term B Loan Advances” are each defined in Recital A hereof. 

1.7Section 2.1 (Term Loan).  Section 2.1(a) is amended in its entirety and replacing with the following:

(a)    Advances.
(i) Term A Loan Advance.  On the Closing Date, Lender made, severally (and not jointly) a Term A Loan Advance in an amount of Twelve Million Dollars ($12,000,000). 
(ii)  Term B Loan Advances.  Subject to the terms and conditions of this Agreement, on the First Amendment Date, Borrower shall request and Lender will make, in an amount not to exceed its respective Term Commitment, one (1) Term B Loan Advance in an amount of Five Million Dollars ($5,000,000).   Subject to the terms and conditions of this Agreement, during Draw Period D, Lender will severally (and not jointly) make, in an amount not to exceed its respective Term Commitment, and Borrower may request, one (1) additional Term B Loan Advance in an amount of up to Five Million Dollars ($5,000,000).  Subject to the terms and conditions of this Agreement, during Draw Period E, Lender will severally (and not jointly) make, in an amount not to exceed its respective Term Commitment, and Borrower may request, one (1) additional Term B Loan Advance in an amount of up to Five Million Dollars ($5,000,000).  Proceeds of any Term B Loan Advance shall be initially deposited into an account that is subject to a first priority perfected security interest in favor of Agent perfected by an Account Control Agreement.

1.8Section 7.1 (Financial Reports).  

(a)Section 7.1(a) is amended by deleting the words “and cash flows” appearing therein. 

(b)The penultimate paragraph in Section 7.1 shall be amended by deleting such paragraph in its entirety and replacing it with the following paragraph:

Borrower shall not make any change in its (a) accounting policies or reporting practices except for (i) any change required by GAAP through the mandate of new procedures or (ii) any immaterial changes or (b) fiscal years or fiscal quarters.  The fiscal year of Borrower shall end on December 31. 
1.9Section 7.7 (Distributions).  Section 7.7 shall be amended in its entirety by inserting the following new sentence to appear at the end thereof:

Notwithstanding anything to the contrary contained herein, so long as the Borrower is in compliance, at all times, with the Liquidity Requirement, the making of any distributions or payment of any dividends as between the Borrower and Securities Corporation shall be permitted. 
1.10Section 7.12 (Deposit Accounts).  Section 7.12 shall be amended by inserting “(other than Securities Corporation)” after the word Subsidiary appearing therein.

1.11Section 7.13 (Subsidiaries).  

(a)Section 7.13 shall be amended by inserting the following new sentence to appear at the end thereof:

Notwithstanding anything to the contrary contained herein, Borrower shall not be required to cause Securities Corporation to execute and deliver to Agent a Joinder Agreement so long as Borrower remains in compliance, at all times, with the Liquidity Requirement.
(b)Schedule 1 of the Loan Agreement is deleted in its entirety and replaced with the new Schedule 1 attached hereto as Annex I. 

1.12Section 7.16 (Financial Covenant - Liquidity).  The Loan Agreement is amended by inserting the following new Section to appear as Section 7.16 (Financial Covenant - Liquidity) thereof:

7.16    Financial Covenant - Liquidity.  Borrower shall maintain Eligible Cash at all times in an account in the name of Borrower and subject to an Account Control Agreement in an amount equal to or greater than the lesser of (i) the aggregate principal amount of all Term Loan Advances outstanding, or (ii) one hundred percent (100%) of all Eligible Cash of Borrower and its Subsidiaries (the “Liquidity Requirement”).  For purposes of clarity, if Eligible Cash is less than the aggregate principal amount of all Term Loan Advances outstanding, Securities Corporation shall hold no Eligible Cash.  
1.13Section 9.2 (Covenants).  The Loan Agreement is amended by deleting Section 9.2 in its entirety and replacing it with the following:

9.2    Covenants.  Borrower breaches or defaults in the performance of any covenant or Secured Obligation under this Agreement, or any of the other Loan Documents or any other agreement among Borrower, Agent and Lender, and (a) with respect to a default under any covenant under this Agreement (other than under Sections 6 (other than delivery of certificates of insurance pursuant to Section 6.2), 7.4, 7.5, 7.6, 7.7, 7.8, 7.9, 7.14, 7.15, and 7.16), any other Loan Document or any other agreement among Borrower, Agent and Lender, such default continues for more than fifteen (15) days (or three (3) days with respect to a default due to the failure to deliver certificates of insurance pursuant to Section 6.2) after the earlier of the date on which (i) Agent or Lender has given notice of such default to Borrower and (ii) Borrower has actual knowledge of such default or (b) with respect to a default under any of Sections 6 (other than delivery of certificates of insurance pursuant to Section 6.2), 7.4, 7.5, 7.6, 7.7, 7.8, 7.9, 7.14 7.15, and 7.16 the occurrence of such default; or 
1.14Exhibit E (Financial Accounts).  Exhibit E of the Loan Agreement is deleted in its entirety and replaced with the new Exhibit E attached hereto as Annex II. 

1.15Exhibit G (Investment Policy).  The Loan Agreement is amended by inserting a new Exhibit G, entitled “Investment Policy”, to appear at the end thereof and attached hereto as Annex III.  

1.16Schedule 1.1 (Commitments). Schedule 1.1 of the Loan Agreement is deleted in its entirety and replaced with the new Schedule 1.1 attached hereto as Annex IV.

1.17Unfunded Term Loan Advances Terminated.  For the avoidance of doubt, the unfunded original Term Loan Advances set forth in Section 2.1(a) of the Loan Agreement available during the Draw Period A, Draw Period B and Draw Period C in an aggregate commitment amount of Fifteen Million Dollars ($15,000,000) in effect prior to this Amendment have been terminated in full and are now replaced by the Term B Loan Advances set forth in Section 1.7 of this Amendment.

2.Consent.  Subject to the terms of Section 4 below, Lender hereby consents to Borrower’s creation of Securities Corporation and agrees that the creation of Securities Corporation shall not, in and of itself, constitute an Event of Default under Section 7.6 (relative to Investments), Section 7.7 (relative to distributions and dividends), Section 7.8 (relative to transfers) or Section 7.13 (relative to the joinder of Subsidiaries to the Loan Documents) of the Loan Agreement.

3.Waivers.  Each of the Lenders waives the following Events of Default: (i) the Event of Default caused by a change in an accounting policy in violation of Section 7.1 of the Loan Agreement that was not required by a change in GAAP through the mandate of new procedures to increase the threshold for accounting for prepaid assets to Ten Thousand Dollars ($10,000.00) (from One Thousand Dollars ($1,000.00)), (ii) the Event of Default caused by (a) investments in the amount of Fifteen Million Six Hundred Twenty-Two Thousand Eight Hundred Seventy-Eight Dollars and Forty-Eight Cents ($15,622,878.48) in certificates of deposit issued by a bank with assets of less than Five Hundred Million Dollars ($500,000,000.00) and (b) investments in the amount of Seventeen Million Four Hundred Sixty-One Thousand Six Hundred Forty-Six Dollars and Sixty-Two Cents ($17,461,646.62) in certificates of deposit maturing more than one year from the date of investment, in each case, measured as at October 31, 2015 and in violation of clause (ii)(c) of the definition of “Permitted Investments” of the Loan Agreement and (iii) the Event of Default caused by the failure to grant an Account Control Agreement for the benefit of the Agent relating to the Oppenheimer investment account (account number XXXXXX), which was invested in a money market fund and certificates of deposit, in violation of Section 7.12 of the Loan Agreement.  Each of the Lenders waives the Borrower’s obligation to enter into an Account Control Agreement for the Oppenheimer investment account (account 

number XXXXXX) pursuant to Section 7.12; provided that such investment account is closed and all funds are transferred, subject to the terms of the Loan Agreement, into an account in the name of Securities Corporation on or before December 31, 2015 (or such later date as agreed by Agent in its sole discretion).  The waivers set forth herein shall be limited precisely as written and shall not be deemed to be (a) a waiver or modification of any term or condition of the Loan Agreement, or (b) prejudice any right or remedy which Agent or the Lenders may now or in the future have under or in connection with the Loan Agreement. 

4.Borrower’s Representations and Warranties.  Borrower represents and warrants that:

(a)Immediately upon giving effect to this Amendment (i) the representations and warranties contained in the Loan Documents are true and correct in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (ii) no Event of Default has occurred and is continuing with respect to which Borrower has not been notified in writing by Lender. 

(b)The certificate of organization, operating agreement and other organizational documents of Borrower previously delivered to Lender remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect.

(c)The execution and delivery by Borrower of this Amendment and the performance by Borrower of all of its agreements and obligations under the Loan Agreement and other Loan Documents, as amended by this Amendment, have been duly authorized by all necessary company action on the part of Borrower.  With respect to Borrower, the execution and delivery by Borrower of this Amendment does not and will not require any registration with, consent or approval of, or notice to any Person (including any governmental authority).

(d)This Amendment, the Loan Agreement and the other Loan Documents, as amended hereby, constitute the legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with their terms, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium, general equitable principles or other laws relating to or affecting generally the enforcement of, creditors’ rights and except to the extent that availability of the remedy of specific performance or injunctive relief is subject to the discretion of the court before which any proceeding therefor may be brought.

(e)Immediately after giving effect to this Amendment (i) no fact or condition exists that would (or would, with the passage of time, the giving of notice, or both) constitute an Event of Default, and (ii) no event that has had or could reasonably be expected to have a Material Adverse Effect has occurred and is continuing.

(f)By its signature below, Borrower hereby agrees that it shall constitute an Event of Default if any representation or warranty made herein should be false or misleading in any material respect when made.

5.Effectiveness.  This Amendment shall become effective upon the satisfaction of all the following conditions precedent:

5.1Amendment.  Borrower and Lender shall have duly executed and delivered to Lender (i) this Amendment, and (ii) all other documents and instruments reasonably required by Lender to effectuate the transactions contemplated hereby, in all cases in form and substance reasonably acceptable to Lender.

5.2No Default.  As of the First Amendment Date, no fact or condition exists that would (or would, with the passage of time, the giving of notice, or both) constitute an Event of Default. 

5.3Fees and Expenses.  Borrower shall have paid to Agent for the pro rata account of Lender with respect to this Amendment an amendment fee of Two Hundred Seventy Thousand Dollars ($270,000.00), which shall be deemed earned on the First Amendment Date.  In addition, Borrower shall have paid to Agent an amount equal to the documented out-of-pocket costs and expenses and reasonable attorneys’ fees and documented expenses that Lender and Agent have incurred in connection with this Amendment.

6.Counterparts.  This Amendment may be signed in any number of counterparts (including by facsimile or other electronic transmission), with the same effect as if the signatures to each such counterpart were upon a single instrument.  All counterparts shall be deemed an original of this Amendment.

7.Miscellaneous.  Lender and Borrower agree that:

7.1THIS AMENDMENT AND ALL MATTERS RELATING THERETO OR ARISING THEREFROM SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF CALIFORNIA, EXCLUDING CONFLICT OF LAWS PRINCIPLES THAT WOULD CAUSE THE APPLICATION OF LAWS OF ANY OTHER JURISDICTION. 
 
7.2This Amendment expresses the entire understanding of the parties with respect to the transactions contemplated hereby. No prior negotiations or discussions shall limit, modify, or otherwise affect the provisions hereof, and no extrinsic evidence may be introduced in any judicial or arbitration proceeding, if any, involving this Amendment.

7.3Any determination that any provision of this Amendment or any application hereof is invalid, illegal or unenforceable in any respect and in any instance shall not affect the validity, legality, or enforceability of such provision in any other instance, or the validity, legality or enforceability of any other provisions of this Amendment.

7.4The captions in this Amendment are for convenience of reference only and shall not define or limit the provisions hereof.

 [Signature page follows]

In Witness Whereof, the parties have duly authorized and caused this Amendment to be executed as of the First Amendment Date. 
BORROWER:
GENOCEA BIOSCIENCES, INC.
Signature:    /s/ Jonathan Poole
Print Name:    Jonathan Poole
Title:        Chief Financial Officer

AGENT:
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
Signature:    /s/ Ben Bang
Print Name:    Ben Bang
Title:        Associate General Counsel
LENDER:
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
Signature:    /s/ Ben Bang
Print Name:    Ben Bang
Title:        Associate General Counsel
HERCULES CAPITAL FUNDING TRUST 2014-1
By: HERCULES TECHNOLOGY GROWTH CAPITAL, INC., its servicer 
Signature:    /s/ Ben Bang
Print Name:    Ben Bang
Title:        Associate General Counsel

Annex I

SCHEDULE 1

SUBSIDIARIES

Genocea Securities Corp., a Massachusetts securities corporation.

Annex II

EXHIBIT E

BORROWER’S DEPOSIT ACCOUNTS AND INVESTMENT ACCOUNTS

	
		
	ACCOUNT
	ACCOUNT DETAILS

	HRA
	 

	SBV Analysis Checking
	 

	SBV Collateral MMA
	 

	SBV Asset Management (MM & Treasuries)
	 

	Oppenheimer (MM & CDs)
	 

Annex III

EXHIBIT G 

Investment Policy
(see attached)

Annex IV

SCHEDULE 1.1
COMMITMENTS

	
		
	LENDER
	TERM COMMITMENT

	HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
	$15,000,000

	HERCULES CAPITAL FUNDING TRUST 2014-1
	$12,000,000

	TOTAL COMMITMENTS
	$27,000,000Exhibit 10.1

 

AGREEMENT AND GENERAL RELEASE (“Agreement”)

 

BANCORP OF NEW JERSEY (“Bancorp” or “the Company”) and DIANE SPINNER, her heirs, executors, administrators, successors, and assigns (collectively referred to throughout this Agreement as “Employee”), agree that:

 

1.                                      Last Day of Employment. Employee’s last day of employment with Bancorp will be the date of this agreement (“Separation Date”).

 

2.                                      Consideration. In consideration for signing this Agreement, and complying with its terms, Bancorp agrees:

 

a.                                      to pay to Employee $184,000.00, representing twelve (12) months of her current salary (i.e., 80% of Employee’s base salary), less lawful deductions, in bi-weekly payments consistent with the Company’s existing payroll schedule. The first payment will be made in the first full pay period which occurs after Bancorp’s receipt of an original of this Agreement signed by Employee and Bancorp’s receipt of a letter from Employee in the form attached hereto as Exhibit “A;” and

 

b.                                      if Employee properly and timely elects to continue medical and dental coverage under the Horizon Blue Cross & Blue Shield plan(s) in accordance with the continuation requirements of COBRA, Bancorp shall pay a portion of the cost of the premium for such coverage during the period beginning on the Separation Date and ending on the earlier of September 13, 2016 or the date on which the COBRA coverage expires. The portion of the COBRA premiums paid by Bancorp will be the same as the portion premiums paid by Bancorp on behalf of active employees for the same level of coverage. Employee will be required to pay the remaining cost for such coverage. After the end of such period, the employee, if then eligible, will be required to pay the full cost of COBRA coverage in order to continue COBRA coverage for the remainder of the COBRA coverage period.

 

3.                                      No Consideration Absent Execution of this Agreement. Employee understands and agrees she would not receive the monies and/or benefits specified in paragraph “2” above except for her execution of this Agreement and the fulfillment of the promises contained herein.

 

4.                                      General Release, Claims Not Released and Related Provisions

 

a.                                      General Release of All Claims. Employee knowingly and voluntarily releases and forever discharges Bancorp, its parent corporation, affiliates, subsidiaries, divisions, predecessors, insurers, successors and assigns, and their current and former employees, attorneys, officers, directors and agents thereof, both individually and in their business capacities, and their employee benefit plans and programs and their administrators and fiduciaries (collectively referred to throughout the remainder of this Agreement as “Releasees”), of and from any and all claims, known and unknown, asserted or unasserted, which the Employee has or may have against Releasees as of the date of execution of this Agreement, including, but not limited to, any alleged violation of:

 

·                  Title VII of the Civil Rights Act of 1964;

·                  Sections 1981 through 1988 of Title 42 of the United States Code;

·                  The Employee Retirement Income Security Act of 1974 (“ERISA”) (as modified below);

·                  The Immigration Reform and Control Act;

·                  The Americans with Disabilities Act of 1990;

 

 

·                  The Age Discrimination in Employment Act of 1967 (“ADEA”);

·                  The Worker Adjustment and Retraining Notification Act;

·                  The Fair Credit Reporting Act;

·                  The Family and Medical Leave Act;

·                  The Equal Pay Act;

·                  The Genetic Information Nondiscrimination Act of 2008;

·                  The New Jersey Law Against Discrimination;

·                  The New Jersey Civil Rights Act;

·                  The New Jersey Family Leave Act;

·                  The New Jersey State Wage and Hour Law;

·                  The Millville Dallas Airmotive Plant Job Loss Notification Act;

·                  The New Jersey Conscientious Employee Protection Act;

·                  The New Jersey Equal Pay Law;

·                  The New Jersey Occupational Safety and Health Law;

·                  The New Jersey Smokers’ Rights Law;

·                  The New Jersey Genetic Privacy Act;

·                  The New Jersey Fair Credit Reporting Act;

·                  The New Jersey Statutory Provision Regarding Retaliation/Discrimination for Filing A Workers’ Compensation Claim;

·                  The New Jersey Public Employees’ Occupational Safety and Health Act;

·                  New Jersey laws regarding Political Activities of Employees, Lie Detector Tests, Jury Duty, Employment Protection, and Discrimination;

·                  any other federal, state or local law, rule, regulation, or ordinance;

·                  any public policy, contract, tort, or common law; or

·                  any basis for recovering costs, fees, or other expenses including attorneys’ fees incurred in these matters.

 

b.                                      Claims Not Released. Employee is not waiving any rights she may have to: (a) her own vested accrued employee benefits under the Company’s health, welfare, or retirement benefit plans, restricted stock award, and stock options agreement as of her Separation Date; (b) benefits and/or the right to seek benefits under applicable workers’ compensation and/or unemployment compensation statutes; (c) pursue claims which by law cannot be waived by signing this Agreement; (d) enforce this Agreement; and/or (e) challenge the validity of this Agreement.

 

c.                                       Governmental Agencies. Nothing in this Agreement prohibits or prevents Employee from filing a charge with or participating, testifying, or assisting in any investigation, hearing, or other proceeding before any federal, state, or local government agency. However, to the maximum extent permitted by law, Employee agrees that if such an administrative claim is made, she shall not be entitled to recover any individual monetary relief or other individual remedies.

 

d.                                      Collective/Class Action Waiver. If any claim is not subject to release, to the extent permitted by law, Employee waives any right or ability to be a class or collective action representative or to otherwise participate in any putative or certified class, collective or multi-party action or proceeding based on such a claim in which the Company or any other Releasee identified in this Agreement is a party.

 

5.                                      Acknowledgments and Affirmations.

 

Employee affirms she has not filed, caused to be filed, or presently is a party to any claim against Bancorp or Releasees.

 

 

Employee affirms she has been paid and/or has received all compensation, wages, bonuses, commissions, and/or benefits which are due and payable as of the date she signs this Agreement. Employee affirms all of Bancorp’s decisions regarding her pay and benefits through the Separation Date were not discriminatory based on age, disability, race, color, sex, religion, national origin or any other classification protected by law.

 

Employee affirms she has been granted any leave to which he was entitled under the Family and Medical Leave Act or related state or local leave or disability accommodation laws. Employee further affirms she has no known workplace injuries or occupational diseases.

 

Employee affirms she has not divulge any proprietary or confidential information of Bancorp and will continue to maintain the confidentiality of such information consistent with the Company’s policies and Employee’s agreement(s) with Bancorp and/or common law.

 

Employee affirms she has not been retaliated against for reporting any allegations of wrongdoing by the Company or its officers, including any allegations of corporate fraud.

 

Employee shall not apply in the future for employment with Bancorp or the Releasees because of, among other things, irreconcilable differences with the Company/Releasees.

 

6.                                      Confidentiality and Return of Property. To the extent permitted by law, Employee agrees not to disclose, either directly or indirectly, any information whatsoever relating to the existence or substance of the Agreement, the business of Company, or any current or former employees of Company to any person or entity including, but not limited to, members of the media, present or former employees of the Company and/or attorneys or private investigators representing other employees or entities. Employee, however, may disclose the terms of the Agreement to: (i) her accountant, counsel or spouse with whom she chooses to consult or seek advice regarding Employee’s consideration of the decision to execute the Agreement provided, however, that those to whom Employee makes such disclosure agree to keep such information confidential and not disclose it to others; or (ii) if required to do so by any regulatory body or agency. Nothing herein shall be read to preclude Employee from discussing her dates of employment with the Company, job duties, job titles and salary history with prospective employers.

 

In the event Employee or her counsel believe either is compelled to provide or disclose information described in this paragraph, they will provide written notice of such belief, via facsimile and mail, to Michael Lesler, President, Bancorp of New Jersey, 1365 Palisade Avenue, Fort Lee, NJ 07024, 201-944-8600, mlesler@bonj.net, no later than three (3) business days prior to said production or disclosure.

 

This Agreement shall not be filed with any court and shall remain forever confidential except in an action to enforce or for breach of this Agreement. If Employee or Bancorp asserts an action to enforce this Agreement or for breach of this Agreement, Employee and Bancorp shall maintain such confidentiality by whatever means necessary including, but not limited to, submitting the Agreement to a court under confidential seal.

 

Employee affirms she has returned all of the Company’s property, documents, and/or any confidential information in Employee’s possession or control. Employee also affirms she is in possession of all of her property that she had at Bancorp’s premises and that Bancorp is not in possession of any of Employee’s property.

 

7.                                      Governing Law and Interpretation. This Agreement shall be governed and conformed in accordance with the laws of New Jersey without regard to its conflict of laws provision. In the event of

 

 

a breach of any provision of this Agreement, either party may institute an action specifically to enforce any term or terms of this Agreement and/or to seek any damages for breach. Should any provision of this Agreement be declared illegal or unenforceable by any court of competent jurisdiction and cannot be modified to be enforceable, excluding the general release language, such provision shall immediately become null and void, leaving the remainder of this Agreement in full force and effect.

 

8.                                      Nonadmission of Wrongdoing. The Parties agree that neither this Agreement nor the furnishing of the consideration for this Agreement shall be deemed or construed at any time for any purpose as an admission by Releasees of wrongdoing or evidence of any liability or unlawful conduct of any kind.

 

9.                                      Cooperation. Subject to Employee’s other personal and professional obligations and on reasonable notice and at reasonable times, Employee will cooperate with Bancorp and its counsel in connection with any investigation, administrative or regulatory proceeding or litigation relating to any matter in which Employee was involved or of which she has knowledge as a result of her employment with Bancorp and/or any Released Party or Released Parties.

 

11.                               Amendment. This Agreement may not be modified, altered or changed except in writing and signed by both Parties wherein specific reference is made to this Agreement.

 

12.                               Entire Agreement. This Agreement sets forth the entire agreement between the Parties hereto, and fully supersedes any prior agreements or understandings between the Parties. Employee acknowledges she has not relied on any representations, promises, or agreements of any kind made in connection with Employee’s decision to accept this Agreement, except for those set forth in this Agreement.

 

EMPLOYEE IS ADVISED THAT SHE HAS UP TO TWENTY-ONE (21) CALENDAR DAYS TO CONSIDER THIS AGREEMENT. EMPLOYEE ALSO IS ADVISED TO CONSULT WITH AN ATTORNEY PRIOR TO SIGNING THIS AGREEMENT.

 

EMPLOYEE MAY REVOKE THIS AGREEMENT FOR A PERIOD OF SEVEN (7) CALENDAR DAYS FOLLOWING THE DAY EMPLOYEE SIGNS THIS AGREEMENT. ANY REVOCATION WITHIN THIS PERIOD MUST BE SUBMITTED, IN WRITING, TO MICHAEL LESLER AND STATE, “I HEREBY REVOKE MY ACCEPTANCE OF OUR AGREEMENT.” THE REVOCATION MUST BE PERSONALLY DELIVERED, OR MAILED AND POSTMARKED, TO MICHAEL LESLER, PRESIDENT, BANCORP OF NEW JERSEY, 1365 PALISADE AVENUE, FORT LEE, NJ 07024, 201-944-8600, WITHIN SEVEN (7) CALENDAR DAYS AFTER EMPLOYEE SIGNS THIS AGREEMENT.

 

EMPLOYEE AGREES THAT ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS AGREEMENT, DO NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL UP TO TWENTY-ONE (21) CALENDAR DAY CONSIDERATION PERIOD.

 

EMPLOYEE FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS AGREEMENT INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS SHE HAS OR MIGHT HAVE AGAINST RELEASEES.

 

 

The Parties knowingly and voluntarily sign this Agreement as of the date(s) set forth below:

 

	
EMPLOYEE
    	
BANCORP   OF NEW JERSEY
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By: 
    	
/s/   Diane Spinner
    	
 
    	
By: 
    	
/s/   Michael Lesler
    
	
 
    	
DIANE SPINNER
    	
 
    	
 
    	
MICHAEL LESLER, CEO
    
	
 
    	
 
    
	
Date: 11/20/2015
    	
Date: 12/16/2015
    

 

 

EXHIBIT A

 

December     , 2015

 

Michael Lesler

Bancorp of New Jersey

1365 Palisade Avenue

Fort Lee, NJ 07024

 

Re:                             Agreement and General Release

 

Dear Mike:

 

On [date] I signed an Agreement and General Release between the Bancorp of New Jersey and me. I was advised in writing by the Bancorp of New Jersey to consult with an attorney of my choosing, prior to executing this Agreement and General Release.

 

More than seven (7) calendar days have elapsed since I executed the above­ mentioned Agreement and General Release. I have not revoked my acceptance or execution of that Agreement and General Release and hereby reaffirm my acceptance of that Agreement and General Release up through the date of this letter.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
Diane   Spinner

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