Document:

Exhibit 4.3

 

LOAN AND WARRANT PURCHASE AGREEMENT

 

 

This LOAN AND WARRANT PURCHASE AGREEMENT (this
“Agreement”) is entered into as of March 15, 2004 by and between Authoriszor,
Inc., a Delaware corporation (the “Company”), and Commercial Technology Limited
(“CTL”) a private limited company (No. 1924782) organized under the laws of
England and Wales.

 

RECITALS

 

WHEREAS, the Company desires to borrow up to
US$70,000 from CTL (the “Loan”) by making one or more promissory notes to CTL
in increments of US$10,000 (each a “Note” and collectively the “Notes”) in the
form set forth on Exhibit A hereto and issue the Warrant in
substantially the form attached to this Agreement as Exhibit B (the
“Warrant”);

 

WHEREAS, the parties confirm their intent and
understanding that the Warrant shall be exercisable for shares of the Company’s
Common Stock (“Common Stock”) on the terms and subject to the conditions set
forth in this Agreement and in the Warrant; and

 

WHEREAS, the Notes, the Warrant and the shares of
Common Stock issuable upon exercise of the Warrant are individually and
collectively referred to herein as the “Securities.”

 

NOW,
THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS:

 

1.                                      Loan Structure

 

1.1                               The Notes, the Warrant and the Initial
Draw Down

 

1.1.1                        Subject to the terms and conditions of
this Agreement, CTL agrees to loan the Company up to US$70,000 (the “Full Loan
Amount”) at the Closing (as defined below. 
CTL irrevocably undertakes in consideration for the Warrant to make
funds immediately available to the Company no later than the end of the Notice
Period (as defined) and upon receipt of a Note for and in the amount of the
Draw Down (as defined) being made.

 

1.1.2                        The Company will be able to draw down the
Loan in US$10,000 increments (each a “Draw Down”) by making one or more Notes
to CTL. The first Draw Down will be for a total of US$20,000 and one or more
Notes totaling this amount will be made by the Company at the Closing, and no
Notice Period shall apply.  For all other
Draw Downs the Company will provide notice of at least seventy-two (72) hours
(the “Notice Period”) and deliver the Note or Notes to be effective at the time
of CTL funding the applicable Draw Down.

 

1. 2.                         Closing; Subsequent Draw Downs

 

1.2.1                        The signing of this Agreement and the
delivery of the first Note and the Warrant (the “Closing”) shall occur at the
offices of the Company, c/o WRDC Logsys, First Floor, Ebor Court Westgate Leeds
LS1 4ND at 10:00 a.m. local

 

1

 

time on March 22, 2004,
or at such other time and place as the Company and CTL mutually agree.

 

1.2.2                        At the Closing, the Company shall make
the first Note to CTL and CTL shall provide the first Draw Down of US$10,000
(the “Initial Loan Amount”). The Company has the right, at any time prior to
December 31, 2004 to do one or more Draw Downs, up to the Full Loan Amount.

 

2.                                      Representations and Warranties of the
Company

 

The Company hereby
represents and warrants to CTL that:

 

2.1                                 All corporate action on the part of the
Company necessary for the authorization, execution, delivery and performance of
the obligations of the Company under this Agreement, the Notes and the Warrant
has been taken at the time of the Closing.

 

2.2                                 This Agreement constitutes a valid and
legally binding obligation on the part of the Company, enforceable in
accordance with its terms, except as may be limited by (a) applicable
bankruptcy, insolvency, reorganization or other laws of general application
relating to or affecting the enforcement of creditors’ rights generally and
(b) the effect of rules of law governing the availability of equitable
remedies.

 

2.3                                 The Company believes that the offer and
sale of the Securities is exempt from the registration requirements of the 1933
Act (as defined) and permissible under Delaware corporate law.

 

3.                                      Representations, Warranties and
Acknowledgments of CTL

 

CTL hereby represents and
warrants to the Company, and acknowledges and agrees with the Company the
following:

 

3.1                               Authorization

 

3.1.1                        CTL has full power and
authority to enter into and perform its obligations under this Agreement, the
Notes and the Warrant.

 

3.1.2                        This Agreement
constitutes CTL’s valid and legally binding obligation, enforceable in
accordance with its terms, except as may be limited by (a) applicable
bankruptcy, insolvency, reorganization or other laws of general application
relating to or affecting the enforcement of creditors’ rights generally and
(b) the effect of rules of law governing the availability of equitable
remedies.

 

3.2                               Acquisition for Own Account

 

3.2.1                        The Securities to be
acquired by CTL will be acquired for investment for CTL’s own account, not as a
nominee or agent, and not with a view to the resale or distribution thereof
within the meaning of the Securities Act of 1933,

 

2

 

as
amended, and the rules and regulations promulgated thereunder (the “1933 Act”)
and CTL has no present intention of selling, granting any interest in, or
otherwise distributing any or all of the Securities.

 

3.2.2                        CTL does not presently
have any contract, undertaking, agreement or arrangement with any other person
to sell, transfer or grant any rights to or with respect to any of the
Securities in whole or in part.

 

3.2.3                        CTL has not been
formed for the specific purpose of acquiring the Securities.

 

3.3                               Disclosure of Information

 

3.3.1                        CTL has received or
has had full access to all the information it considers necessary or
appropriate to make a fully informed investment decision with respect to the
Securities.

 

3.3.2.                     CTL has had an opportunity to ask
questions and receive answers from the Company regarding (a) the terms and
conditions of the Securities (b) any offer relating thereto, and to obtain
additional necessary to verify any information furnished to CTL or to which CTL
had access.

 

3.4                               Investment Experience

 

3.4.1                        CTL has experience as
an investor in securities of a wide range of companies, including companies
similar to the Company and acknowledges that it is able to fend for itself, and
has such knowledge and experience in financial, business and tax matters such
that it is capable of evaluating the merits and risks of the investment
represented by the Securities and making a fully informed investment decision
with respect thereto.

 

3.4.2                        CTL is able to protect
its own interests in connection with an investment in the Securities and has a
pre-existing personal or business relationship with the Company and its
officers, directors and certain of its controlling persons of such a nature and
duration that enables CTL to be aware of the character, business acumen and
financial circumstances of the Company and of such persons.

 

3.5                               Regulation S Matters

 

CTL understands that the
Securities are and will be issued based on reliance on an exemption under
Regulation S of the 1933 Act, and any other applicable exemptions that may be
available to it.  CTL represents and
warrants that it is non-US person as defined in Rule 902 of the 1933 Act.

 

3.6                               Restricted Securities; No Public Market

 

3.6.1        CTL understands and acknowledges that the
Securities are “restricted securities” under the 1933 Act and are being
acquired from the Company in a transaction not involving a public offering, and
that as a result the Securities may not be resold without registration under
the 1933 Act or an exemption therefrom.

 

3

 

3.6.2                        CTL understands and acknowledges that the
Securities have not been, and will not be, registered under the 1933 Act, by
reason of a specific exemption from the registration provisions of the 1933 Act
which depends upon, among other things, the bona fide nature of its investment intent
and the accuracy of its representations and warranties contained herein.

 

3.6.3                        CTL is familiar with and understands the
offer and resale limitations of Regulation S and Rule 144 of the 1933 Act, and
under the 1933 Act as generally.

 

3.6.4                        CTL understands and acknowledges that no
public market now exists for any of the Securities, and that a public market
for any or all of the Securities may never exist, other than with regard to the
Common Stock, possibly on the ‘pink sheets’. CTL understands and acknowledges
that as a result, the Securities are illiquid and that CTL must bear the risk
of holding the Securities for an indefinite period of time.

 

3.6.5                        CTL understands and acknowledges that its
investment in the Company represented by the Securities involves a high degree
of risk and is suitable only for persons of substantial means who have adequate
means of providing for their financial needs and no immediate need for
liquidity of the amount invested and who can bear the entire risk of losing all
of the funds it has invested in the Company.

 

3.7                               Non-U.S. Persons

 

As CTL is not a United States
person (as defined in Section 7701(a) (30) of the Internal Revenue Code of
1986, as amended), CTL hereby represents and warrants that it has satisfied
itself as to the full observance of the laws of its jurisdiction in connection
with any invitation to subscribe for the Securities and any and all matters
contemplated under this Agreement, under the Notes and the Warrant, including,
but not limited to:

 

(a) the legal requirements within
its jurisdiction for the offer, purchase and sale of the Securities, including
without limitation those under the Financial Services and Markets Act 2000, and
any amendments under it or successor or related rules and regulations,

 

(b) any applicable foreign exchange
restrictions,

 

(c) any governmental or other
consents that may need to be obtained, 
and

 

(d) the income tax and other tax consequences,
if any that may be relevant to the purchase, holding, conversion, redemption,
sale, or transfer of the Securities.

 

3.8                               Legends

 

It is understood that the
certificates evidencing the Securities may bear the legend set forth below or
one substantially similar to it:

 

THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN

 

4

 

REGISTERED UNDER THE U.S.
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).  NOR HAVE SUCH SECURITIES BEEN REGISTERED OR OTHERWISE QUALIFIED
UNDER THE SECURITIES LAWS OF ANY U.S. STATE OR UNDER THE SECURITIES (OR
SIMILAR) LAWS ANY OTHER JURISDICTION. 
AS A RESULT, THE SECURITIES ARE SUBJECT TO RESTRICTIONS ON
TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED, RESOLD, ASSIGNED, PLEGED,
OR HYPOTHECATED, EXCEPT AS PERMITTED UNDER THE ACT, ANY APPLICABLE U.S. STATE
SECURITIES LAWS AND ANY APPLICABLE SECURITIES (OR SIMILAR) LAWS OF ANY OTHER
JURISDICTION THAT MAY BE APPLICABLE TO THE PARITES INVOLVED IN ANY TRANSACTION,
PROCEDURE OR PROCEEDING TO EFFECT THE FOREGOING.  THE HOLDER OF THESE SECURITIES MAY BE REQUIRED TO BEAR THE
FINANCIAL RISKS OF AN INVESTMENT IN THESE SECURITIES FOR AN INDEFINITE PERIOD
OF TIME.  THE ISSUER OF THESE SECURITIES
MAY REQUIRE A STATEMENT OR AN OPINION OF COUNSEL IN FORM AND SUBSTANCE
SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER, RESALE,
ASSIGNMENT, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE WITH THE ACT, ANY
APPLICABLE U.S. STATE SECURITIES LAWS AND THE SECURITIES (OR SIMILAR) LAWS OF
ANY OTHER APPLICABLE JURISDICTION.

 

The legend set forth
above may be removed by the Company from any certificate evidencing the
Securities upon delivery to the Company of a statement or legal opinion of
counsel, reasonably satisfactory to the Company, that a registration statement
under the 1933 Act is at that time in effect with respect to the legended
security, or that such security can be freely transferred without such a
registration statement being in effect, and that such transfer will not
jeopardize the exemption or exemptions from registration pursuant to which the
Company issued or undertook to issue any of the Securities

 

3.9                               Tax Consequences

 

3.9.1                        CTL has reviewed with
its own tax advisors the federal, state and local (U.S. or non-U.S.) tax
consequences of the investment in the Company represented by the Securities and
the transactions contemplated directly and indirectly by this Agreement, the
Notes and the Warrant.

 

3.9.2                        CTL is relying solely
on such advisors and not on any statements or representations of the Company or
any of its agents and understands that it (and not the Company or any of the
advisors to the Company) is fully responsible for any tax liability that may
arise as a result of the investment represented by the Securities and the transactions
contemplated directly and indirectly by this Agreement, the Notes and the
Warrant.

 

4.                                      Conditions To CTL’s Obligations At
Closing

 

The obligations of CTL
under Section 1 of this Agreement are subject to the fulfillment or waiver on
or before the Closing of each of the following

 

5

 

conditions:

 

4.1                               Representations and Warranties True

 

The representations and
warranties of the Company contained in Section 2 shall be true and correct
on the date of the Closing.

 

4.2                               Performance and Compliance

 

The Company shall have
performed and complied with all agreements, obligations and conditions
contained in this Agreement that are required to be performed or complied with
by it on or before the Closing.  The
Company shall have obtained all approvals, consents and qualifications
necessary to complete the issuance of the Warrant and the Notes.

 

4.3                               Delivery of the Note and Warrant

 

The Company shall deliver a Note
for the Initial Loan Amount and the Warrant against CTL funding the Initial
Loan Amount.

 

5.                                      Conditions To The Company’s Obligations
At Closing

 

The obligations of the
Company under Section 1 of this Agreement to CTL are subject to the fulfillment
by CTL or waiver by the Company on or before the Closing with regard to each
CTL (as applicable) of each of the following conditions:

 

5.1                               Representations and Warranties

 

The representations and
warranties of CTL contained in Section 3 shall be true and correct on the
date of the Closing.

 

5.2                               Funding of the Initial Loan Amount

 

CTL shall have delivered
to the Company the Initial Loan Amount, against delivery of a Note for this
amount and the Warrant.

 

5.3                               Securities Law Compliance

 

The offer and sale of the
Securities to CTL pursuant to this Agreement shall be exempt from the
registration requirements of the 1933 Act, and the securities registration
and/or qualification requirements of any and all other applicable (U.S. and
non-U.S.) jurisdictions.

 

6.                                      Miscellaneous

 

6.1                               Successors and Assigns

 

The terms and conditions
of this Agreement shall inure to the benefit of and be binding upon the
respective successors and assigns of the parties.

 

6

 

6.2                               Governing Law

 

This Agreement shall be
governed by and construed under the internal laws of the State of Delaware
without reference of conflicts of laws or choice of laws, except with regard to
matters of US federal securities laws, in which case US federal securities laws
shall govern such matters.

 

6.3                               Counterparts

 

This Agreement may be
executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

 

6.4                               Headings

 

The headings and captions
used in this Agreement are used for convenience only and are not to be
considered in construing or interpreting this Agreement.  All references in this Agreement to
sections, paragraphs, all exhibits and schedules shall, unless otherwise
provided, refer to sections and paragraphs hereof and exhibits and schedules
attached hereto, all of which exhibits and schedules are incorporated herein by
reference.

 

6.5                               Notices

 

Any notice required or
permitted under this Agreement shall be given in writing and shall be deemed
effectively given: (a) upon personal delivery to the party to be notified;
(b) when sent by confirmed facsimile; or (c) one business day for
deliveries within the United States and two business days for deliveries
outside of the United States, following deposit with Federal Express or any
other internationally recognized overnight courier service, to the party to be
notified at the location indicated for such party on the signature page of this
Agreement, or at such other address as CTL or the Company may designate by
giving at least five (5) business days advance written notice.  In the case of notice being given by or to
the Company, a copy shall be simultaneously sent to Thompson Legal Advisory
Services, attn: Tamara L. Thompson, 229 Brannan Street, Suite 18G, San
Francisco, CA USA 94107 facsimile +1 415 896 5166.

 

6.6                               No Finder’s Fees

 

6.6.1                        Each party represents that it neither is
nor will be obligated for any finder’s or broker’s fee or commission in
connection with the transactions contemplated under this Agreement, the Warrant
or any Note to be issued under this Agreement.

 

6.6.2                        CTL agrees to indemnify and to hold
harmless the Company from any liability for any commission or compensation in
the nature of a finder’s or broker’s fee (and any asserted liability) for which
CTL or any of its officers, directors, employees, or representatives is
responsible in connection with this

 

7

 

Agreement, the Warrant or any Note to be issued under
this Agreement.

 

6.7                               Fees and Expenses

 

Each party shall pay its
own fees and expenses incurred with respect to this Agreement, the documents
referred to herein and the transactions contemplated hereby and thereby.

 

6.8                               Amendments and Waivers

 

Any term of this
Agreement may be amended and the observance of any term of this Agreement may
be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of each of the
Company and CTL.

 

6.9                               Severability

 

If one or more provisions
of this Agreement are held to be unenforceable under applicable law, such
provision(s) shall be excluded from this Agreement and the balance of the
Agreement shall be interpreted as if such provision(s) were so excluded and
shall be enforceable in accordance with its terms.

 

6.10                        Entire Agreement

 

This Agreement, together
with all exhibits hereto (including the Note and the Warrant), constitutes the
entire agreement and understanding of the parties with respect to the subject
matter hereof and thereof and supersedes any and all prior negotiations,
correspondence, agreements, understandings duties or obligations between the
parties with respect to the subject matter covered herein and therein.

 

6.11                        Further Assurances

 

From and after the date
of this Agreement, upon the request of CTL or the Company, each of the Company
and CTL shall execute and deliver such instruments, documents or other writings
as may be reasonably necessary or desirable to confirm and carry out and to
effectuate fully the intent and purposes of this Agreement, the Warrant and all
of the Notes issued hereunder.

 

6.12                        Termination

 

Upon re-payment of the
Notes and exercise of the Warrant into Common Stock, this Agreement, and all
rights and obligations under it, shall terminate.

 

8

 

IN WITNESS WHEREOF the undersigned have executed this Loan
and Warrant Purchase Agreement as of the date first written above.

 

	
   

  	
  AUTHORISZOR,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Garcia Hanson

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Garcia Hanson

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  Address: First Floor, Ebor Court,

  Westgate, Leeds, LS1 4ND United

  Kingdom

  
	
   

  	
   

  
	
   

  	
  Phone: +44(0) 113 245
  4788

  
	
   

  	
   

  
	
   

  	
  Fax:  +44(0) 113 245
  4798

  

 

 

	
  COMMERCIAL TECHNOLOGY LIMITED

  
	
   

  
	
  By:

  	
  /s/Ian McNeill

  	
   

  
	
   

  
	
  Name:  Ian McNeill

  
	
   

  
	
  Title:  Director

  
	
   

  
	
  Address:  The Old Granary, Paradise Lane,

  	 

	
  Hazelwood,
  Tadcaster, North Yorkshire

  	 

	
  LS24 9NJ, United
  Kingdom

  	 

	
   

  	 

	
  Phone: +44(0) 193 753
  1555

  	 

	
   

  	 

	
  Fax: +44(0) 870 458 0410

  	 

				

 

 

SIGNATURE
PAGE TO THE LOAN AND WARRANT PURCHASE AGREEMENT

 

9

 

EXHIBIT A

 

FORM OF NOTE

 

10

 

EXHIBIT B

 

FORM OF WARRANT

 

11Exhibit
10.27

 

CHANGE IN CONTROL/NONCOMPETITION
AGREEMENT

 

This Change in
Control/Noncompetition Agreement (this “Agreement”) is entered into as of the
15th day of December 2003 by and among Enterprise Bancorp, Inc., a
Massachusetts corporation (the “Company”), and its wholly owned subsidiary,
Enterprise Bank and Trust Company, a Massachusetts bank and trust company with
its main office in Lowell, Massachusetts (the “Bank”) (the Bank and the Company
shall be hereinafter collectively referred to as the “Employers”), and Paul M.
O’Connell, Jr. of 6134 Lexington Ridge Dr., Lexington, Massachusetts (the
“Executive”).

 

1.                                       Purpose.  In order to allow the Executive to consider
the prospect of a Change in Control (as defined in Section 2 hereof) in an
objective manner and in consideration of the Executive’s agreement to abide by
the confidentiality and noncompetition provisions set forth in Section 8
hereof and the services to be rendered by the Executive to the Bank, and in
order to protect the ongoing business interests and competitiveness of the
Employers and in consideration of the Employers’ agreement to provide the
severance benefits to protect the Executive in the event of a Change in Control
as set forth in this Agreement, and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged by the Executive
and the Employers, the parties have entered into this Agreement and have
mutually agreed to be bound by the terms and conditions hereof.

 

2.                                       Change
in Control.  For purposes of this
Agreement, the term “Change in Control” shall have the same meaning as defined
in the Company’s 2003 Stock Incentive Plan, as the same may be amended and
continue in effect from time to time hereafter.

 

3.                                       Terminating
Event.  For purposes of this
Agreement, the term “Terminating Event” shall mean any termination of the
employment of the Executive with the Bank for any reason, whether or not such
termination is initiated by the Bank, including without limitation termination
for cause or by reason of the Executive’s death or disability, or by the
Executive, including without limitation resignation by reason of retirement or
for no reason at all.

 

4.                                       Severance
Payments.

 

(a)                                  If
a Terminating Event occurs within two (2) years after the date on which a
Change in Control has occurred, then the Executive shall be entitled to receive
the following:

 

(i)                                     an
aggregate amount equal to 1.5 times the Executive’s “Highest Annual
Compensation” (as defined in paragraph (c) of this Section 4), such amount
to be paid out in equal periodic installments in accordance with the Bank’s
ordinary payroll practices over the eighteen-month period commencing on the
first payroll payment date after the date on which the Executive’s employment
with the Bank terminates (the “Date of Termination”);

 

(ii)                                  any
base salary, commissions or other compensation accrued or earned, but not yet
paid, as of the Date of Termination and any annual or other bonus actually
awarded, but not yet paid, as of the Date of Termination, such amounts to be
paid on the Date of Termination;

 

(iii)                               reimbursement
for all business expenses for which the Executive would ordinarily be
reimbursed by the Employers in the ordinary course of business in accordance
with the Employers’ policies, programs, procedures or practices incurred, but
not yet paid, as of the Date of Termination, such amount to be paid on the Date
of Termination;

 

 

(iv)                              payment
of the per diem value of any unused vacation days, whether deemed to be accrued
or unaccrued, that would be available to the Executive through the end of the
calendar year (but not beyond) in which the Date of Termination occurs;

 

(v)                                 continuation
of the Employers’ employee welfare benefit plans, programs and practices in
which the Executive and his spouse and any other eligible dependents
participate or are eligible to participate as of the Date of Termination or, if
more favorable to the Executive, as of the date of a Change in Control, at the
levels in effect on, and at the same out-of-pocket costs to the Executive as
of, the Date of Termination or, if more favorable to the Executive, as of the
date of a Change in Control, for the eighteen-month period commencing on the
Date of Termination (or, if such continuation is not permitted by applicable
law or if the Bank’s Board of Directors so determines in its sole discretion,
the Bank shall pay to the Executive a cash amount equal to the difference
between (A) the aggregate amount that would be required to be paid by the
Executive in order for the Executive to obtain a continuation of such benefits
and coverages for such eighteen-month period for himself, his spouse and any
other eligible dependents under or through one or more plans, programs or other
arrangements provided by one or more unaffiliated third parties and (B) the
out-of-pocket costs that would be incurred by the Executive in accordance with
the terms hereof if such continuation of benefits and coverages were provided
under the Employers’ employee welfare benefit plans, programs and practices);

 

(vi)                              reimbursement
for the reasonable fees of a professional out-placement service selected by the
Executive within ninety (90) days after the Date of Termination, such amount to
be paid promptly after the expense is incurred; and

 

(vii)                           any
other compensation and benefits as may be provided in accordance with the terms
of any applicable plans, programs, policies, procedures or practices of the
Employers.

 

(b)                                 If
a Terminating Event occurs within one (1) year prior to the date on which a
Change in Control occurs, then the Executive shall be entitled to receive, as
provided in this paragraph (b), all of the payments and benefits that he would
have been entitled to receive under paragraph (a) of this Section 4 if
such Terminating Event had occurred within two (2) years after the date on
which a Change in Control has occurred, unless such Terminating Event occurs as
a result of a termination for Cause (as such term is defined in paragraph (f)
of Section 8 below), in which case no increase or adjustments to the
amounts paid or benefits provided to the Executive in connection with such
Terminating Event shall be made under this paragraph (b).  If required in accordance with the
immediately preceding sentence, the amounts paid and benefits provided to the
Executive in connection with a Terminating Event that occurs within one (1)
year prior to the date on which a Change in Control occurs shall be increased
or otherwise adjusted to ensure that the Executive receives the full payments
and benefits contemplated by paragraph (a) of this Section 4, as if such
Terminating Event had occurred within two (2) years after the date on which a
Change in Control has occurred.  If the
payments and/or benefits to be received by the Executive in connection with a
Terminating Event that has occurred within one (1) year prior to the date on
which a Change in Control occurs are required to be increased or adjusted under
this paragraph (b), then the Executive shall be paid on the first ordinary
payroll payment date of the Bank following the occurrence of such Change in
Control the cash amount necessary to ensure that as of such date the Executive
shall have received the full amounts of the payments and benefits that the
Executive would have received as of such date under paragraph (a) of this
Section 4 if such Terminating Event had occurred within two (2) years
after the date on which a Change in Control has occurred (including without
limitation the economic equivalent of any noncash benefits that have not been
provided to the Executive during the period from the date on which such
Terminating Event occurred and the date on which such Change in Control
occurred) and from and after such payroll payment date the Executive shall
receive the full amounts of the remaining payments and benefits that the Executive
is required to receive under paragraph (a) of this Section 4 in

 

 

accordance with the terms
thereof (including without limitation, to the extent that reimbursement for the
reasonable fees of a professional out-placement service selected by the Executive
has not already then been paid hereunder, such reimbursement with respect to a
professional out-placement service selected by the Executive within ninety (90)
days after the occurrence of such Change in Control).

 

(c)                                  For
purposes of this Section 4, the Executive’s “Highest Annual Compensation”
shall mean, as determined as of any Date of Termination, the sum of (i) the
highest per annum rate of base salary paid by the Employers to the Executive at
any time during the three-year period prior to such Date of Termination, (ii)
the highest amount of commission or other compensation (which is not otherwise
included in the base salary and bonus amounts referred in clauses (i) and (iii)
of this paragraph (c)) paid by the Employers to the Executive with respect to
any of the three most recently completed fiscal years of the Bank prior to such
Date of Termination, and (iii) the highest annual incentive compensation or
other bonus amount paid by the Employers to the Executive (or which would have
been paid but for an election by the Executive to defer payment to a later
period) with respect to any of the three most recently completed fiscal years
of the Bank prior to such Date of Termination.

 

(d)                                 In
the event of any dispute concerning payments or other benefits to be received
by the Executive under this Section 4, the Executive shall be entitled
until the resolution of such dispute to be paid in accordance with the Bank’s
ordinary payroll practices his then current base salary and to continue to
receive all other welfare benefits then being provided to him by the Employers,
and there shall be no reduction whatsoever of any amounts subsequently paid to
the Executive upon resolution of such dispute as a result of, or in respect to,
such interim payments or coverage.

 

(e)                                  In
the event that any payments or benefits are to be received by the Executive
under this Section 4, the Executive shall be under no obligation to seek
other employment or to mitigate damages and there shall be no offset against
any amount due the Executive under this Agreement for any reason, including,
without limitation, on account of any remuneration or benefits attributable to
any subsequent employment that the Executive may obtain.

 

(f)                                    Anything
in this Agreement or in any other agreement, contract, understanding, plan or
program entered into or maintained by the Employers to the contrary
notwithstanding, in the event it shall be determined that any payment or
distribution by the Employers to or for the benefit of the Executive, whether
paid or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise (collectively, the “Payments”), would be subject to the
excise tax imposed by Section 4999 of the Internal Revenue Code of 1986,
as amended (the “Code”), and/or any successor provision or section thereto
(such excise tax, together with any interest or penalties incurred by the
Executive with respect to such excise tax, collectively, the “Excise Tax”), and
if the Payments less the Excise Tax would be less than the amount of the
Payments that would otherwise be payable to the Executive without imposition of
the Excise Tax, then, to the extent necessary to eliminate the imposition of
the Excise Tax (and taking into account any reduction in the Payments provided
by reason of Section 280G of the Code in any such other agreement,
contract, understanding, plan or program), the cash and non-cash payments and
benefits payable to the Executive shall be reduced (with the executive being
provided with the amount of each payment and benefit as calculated by the
Employers and given ten (10) business days in which to prioritize the order of
reduction of each such payment or benefit); but only if, by reason of any such
reduction, the Payments with any such reduction shall exceed the Payments less
the Excise Tax without any such reduction. 
For purposes of this Section 4(f), (i) no portion of the Payments,
the receipt or enjoyment of which the Executive shall have effectively waived
in writing prior to the Date of Termination, shall be taken into account, (ii)
no

 

 

portion of the Payments
shall be taken into account that, in the opinion of tax counsel selected in
good faith by the Employers, does not constitute a “parachute payment” within
the meaning of Section 280G(b)(2) of the Code, including without
limitation by reason of Section 280G(b)(4)(A) of the Code, (iii) any
payments and/or benefits under this Agreement or otherwise for services to be
rendered on or after the effective date of a Change in Control shall be reduced
only to the extent necessary so that such payments and/or benefits in their
entirety constitute reasonable compensation for services actually rendered
within the meaning of Section 280G(b)(4)(B) of the Code or are otherwise
not subject to disallowance as deductions, in the opinion of the tax counsel
referred to in the immediately preceding clause (ii) of this sentence, and (iv)
the value of any non-cash payment or benefit or any deferred payment or benefit
included in the Payments shall be determined by the Employers’ independent
auditors in accordance with the principles of Sections 280G(d)(3) and
280G(d)(4) of the Code and the applicable regulations or proposed regulations
under the Code.  Except as otherwise
provided in this Section 4(f), the foregoing calculations and
determinations shall be made in good faith by the Employers and shall be
conclusive and binding upon the parties. 
The Employers shall pay all costs and expenses incurred in connection
with any such calculations or determinations.

 

5.                                       Employment
Status.  This Agreement is not an
agreement for the employment of the Executive and shall confer no rights on the
Executive except as herein expressly provided.

 

6.                                       Term.  This Agreement shall take effect on and as
of the date hereof and shall terminate, subject to the applicability of
paragraph (b) of Section 4 above, upon the earlier of (a) termination of
the employment of the Executive for reason of the Executive’s death or
permanent disability, in which case any amounts due to the Executive or his
estate or legal representative, as the case may be, shall be determined in
accordance with Section 4 of this Agreement, if applicable, or otherwise
in accordance with the Employers’ applicable plans, programs, policies,
procedures or practices then in effect, (b) the resignation or termination of
the Executive for any reason prior to a Change in Control, or (c) the second
anniversary of the date on which a Change in Control shall have occurred;
provided, however, that in any event the provisions of Section 8 hereof
shall remain in full force and effect in accordance with their terms.

 

7.                                       Withholding.  All payments made by the Employers under
this Agreement shall be net of any tax or other amounts required to be withheld
by the Employers under applicable law.

 

8.                                       Confidential
Information; Noncompetition.

 

(a)                                  Confidentiality.  The Executive shall not, during or after the
period during which he is employed by the Bank, disclose any Confidential
Information (as defined herein) to any natural person or entity, other than the
Employers or any of their affiliates or any of the Employers’ or their
affiliates’ employees, consultants, advisors, agents or other representatives
who have a need to know any such information, for any reason or purpose
whatsoever.  The term “Confidential Information”
shall mean all confidential information of or relating to the Employers and any
of their affiliates, including without limitation financial information and
data, business plans and information regarding prospects and opportunities
(such as, by way of example only, client and customer lists and acquisition,
disposition, expansion, product development and other strategic plans), but
does not include any information that is or becomes public knowledge by means
other than the Executive’s breach or nonobservance of his obligations described
in this paragraph (a).  Notwithstanding
the foregoing, the Executive may disclose such Confidential Information as he
may be legally required to do so on the advice of counsel in connection with
any legal or regulatory proceeding; provided, however, that the Executive shall
provide the Employers with prior written notice of any such required or
potentially

 

 

required disclosure and
shall cooperate with the Employers and use his best efforts under such
circumstances to obtain appropriate confidential treatment of any such
Confidential Information that may be so required to be disclosed in connection
with any such legal or regulatory proceeding. 
The Executive’s obligation to refrain from disclosing any Confidential
Information under this paragraph (a) shall continue in effect in accordance
with its terms following any termination of this Agreement pursuant to
Section 6 above.

 

(b)                                 Noncompetition.  If the Executive’s employment with the Bank
is terminated for any reason prior to a Change in Control (whether or not such
termination is initiated by the Bank or by the Executive), then during the
period of one (1) year following the date of such termination (and assuming no
Change in Control occurs at any time during such one-year period), the
Executive shall not:  (i) directly or
indirectly, whether as owner, partner, shareholder (other than the holder of 1%
or less of the common stock of any company the common stock of which is listed
on a national stock exchange or quoted on the Nasdaq Stock Market), consultant,
agent, employee or otherwise, engage in competition with the Employers or any
of their affiliates within a ten (10) mile radius of any city or town in which
the Bank or any affiliate has a branch or other office; or (ii) hire or attempt
to hire, or assist in hiring, any employees of the Employers or any of their
affiliates, or solicit, encourage or induce any such employee to terminate his
or her relationship with the Employers or any such affiliate; or (iii) solicit,
encourage or induce any customer or client of the Employers or any of their
affiliates to terminate his or its relationship with the Employers or any such
affiliate or to do business with anyone other than the Employers and their
affiliates.  Notwithstanding any of the
foregoing provisions contained in this paragraph (b), none of the restrictions
contained herein shall apply to the Executive’s conduct following any
termination of employment with the Bank during any period following the
occurrence of a Change in Control.

 

(c)                                  Payments
During Noncompetition Period. 
During the period of restriction on the Executive’s conduct following a
termination of employment with the Bank, as set forth in paragraph (b) of this
Section 8, if such employment has been terminated by the Bank (as
distinguished from a termination initiated by the Executive) for any reason
other than a termination for Cause (as defined in paragraph (f) of this
Section 8), then the Executive shall be paid in equal periodic
installments in accordance with the Bank’s ordinary payroll practices,
commencing on the first payroll payment date after the date on which the
Executive’s employment with the Bank shall have been terminated, an amount
equal, on an annualized basis, to seventy-five percent (75%) of the sum of (i)
the per annum rate of base salary paid by the Employers to the Executive as of
the date on which the Executive’s employment with the Bank is terminated, (ii)
the amount of commission or other compensation (which is not otherwise included
in the base salary and bonus amounts referenced in clauses (i) and (iii) of
this paragraph (c)) paid by the Employers to the Executive with respect to the
most recently completed fiscal year prior to such date on which the Executive’s
employment with the Bank is terminated, and (iii) the annual incentive or other
bonus amount paid by the Employers to the Executive (or which would have been
paid but for an election by the Executive to defer payment to a later period)
with respect to the most recently completed fiscal year prior to such date on
which the Executive’s employment with the Bank is terminated.

 

(d)                                 Injunctive
Relief.  The Executive acknowledges
and agrees that the Employers will have no adequate remedy at law, and would be
irreparably harmed, if the Executive breaches or threatens to breach any of the
provisions of this Section 8.  The
Executive agrees that the Employers shall be entitled to equitable and/or
injunctive relief to prevent any breach or threatened breach of this
Section 8, and to specific performance of each of the terms of this
Section 8 in addition to any other legal or equitable remedies that the
Employers may have.  The Executive
further agrees that he shall

 

 

not, in any equity
proceeding relating to the enforcement of the terms of this Section 8,
raise the defense that the Employers have an adequate remedy at law.

 

(e)                                  Special
Severability.  The terms and
provisions of this Section 8 are intended to be separate and divisible
provisions and if, for any reason, any one or more of them is held to be
invalid or unenforceable, neither the validity nor the enforceability of any
other provision of this Agreement shall thereby be affected.

 

(f)                                    Cause
Defined.  Termination by the Bank of
the Executive’s employment for “Cause” shall mean termination on the basis of
(i) the Executive’s willful and continued failure to substantially perform his
employment duties (other than any such failure resulting from the Executive’s
death or incapacity due to physical or mental illness) after (A) a written
demand for substantial performance is delivered to the Executive by the Bank’s
Chief Executive Officer, which demand specifically identifies the manner in
which the Chief Executive Officer believes that the Executive has not
substantially performed his employment duties, and (B) the Executive has been
afforded a reasonable opportunity to meet with the Chief Executive Officer
regarding such assertions of nonperformance, or (ii) the Executive’s willfully
engaging in conduct which is demonstrably and materially injurious to the Bank,
monetarily or otherwise.  For purposes
of this paragraph (f), no act, or failure to act, on the part of the Executive
shall be deemed “willful” unless done, or omitted to be done, by the Executive
not in good faith and without reasonable belief that his action or omission was
in the best interests of the Bank.  The
Executive shall be deemed to have been terminated for Cause only at such time
as there shall have been delivered to him a written notice of termination by
the Bank, which specifies in detail the particulars of the Executive’s conduct
that serve as the basis for such termination for Cause.

 

9.                                       Arbitration
Disputes.  Any controversy or claim
arising out of or relating to this Agreement or the breach hereof, other than
an action brought by the Employers for injunctive or other equitable relief in
the enforcement of the Employers’ rights under Section 8 above, in which
case such action may be brought in any court of competent jurisdiction, shall
be settled by arbitration in accordance with the laws of the Commonwealth of
Massachusetts by three arbitrators, one of whom shall be appointed by the
Employers, one by the Executive and the third by the first two
arbitrators.  If the first two
arbitrators cannot agree on the appointment of a third arbitrator, then the
third arbitrator shall be appointed by the American Arbitration Association in
the City of Boston, Massachusetts.  Such
arbitration shall be conducted in the City of Boston, Massachusetts in
accordance with the rules of the American Arbitration Association, except with
respect to the selection of arbitrators which shall be as provided in this
Section 9.  Judgment upon the award
rendered by the arbitrators may be entered in any court having jurisdiction
thereof.

 

10.                                 Successors.

 

(a)                                  Each
of the Company and the Bank will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of its businesses and/or assets to assume expressly and agree
to perform this Agreement in the same manner and to the same extent as if no
such succession had taken place. 
Failure of either the Company or the Bank to obtain such assumption and
agreement prior to the effectiveness of any such succession shall be a breach
of this Agreement and shall entitle the Executive to compensation in the same
amount and on the same terms as he would be entitled to hereunder if a
Terminating Event were to occur within two (2) years after a Change in Control,
except that for purposes of implementing the foregoing, the date on which any
such succession becomes effective shall be deemed to be the date of  such Terminating Event.  As used in this Agreement, “Company,” “Bank”
and “Employers” shall mean the Company,

 

 

the Bank and the
Employers as hereinbefore defined and any successor to the business and/or
assets of either the Company or the Bank as aforesaid which successor assumes
and agrees to perform this Agreement by operation of law or otherwise.

 

(b)                                 This
Agreement shall inure to the benefit of and be binding upon the Employers and
the Executive, their respective successors, executors, administrators, heirs
and permitted assigns.  In the event of
the Executive’s death prior to the completion by the Employers of all payments
due him under this Agreement, the Employers shall continue such payments to the
Executive’s beneficiary designated in writing to the Employers prior to his
death (or to his estate, if he fails to make such designation).

 

11.                                 Enforceability.  If any portion or provision of this
Agreement shall to any extent be declared illegal or unenforceable by a court
of competent jurisdiction, then the remainder of this Agreement, or the
application of such portion or provision in circumstances other than those as
to which it is so declared illegal or unenforceable, shall not be affected
thereby, and each portion and provision of this Agreement shall be valid and
enforceable to the fullest extent permitted by law.

 

12.                                 Waiver.  No waiver of any provision hereof shall be
effective unless made in writing and signed by the waiving party.  The failure of any party to require the
performance of any terms or obligation of this Agreement, or the waiver by any
party of any breach of this Agreement, shall not prevent any subsequent
enforcement of such terms or obligation or be deemed a waiver of any subsequent
breach.

 

13.                                 Notices.  Any notices, requests, demands and other
communication provided for by this Agreement shall be sufficient if in writing
and delivered in person or sent by registered or certified mail, postage
prepaid, to the Executive at the last address the Executive has filed in
writing with the Employers or, in the case of the Employers, at their executive
offices, attention of the Chief Executive Officer.

 

14.                                 Amendment.  This Agreement may be amended or modified
only by a written instrument signed by the Executive and by duly authorized
representatives of each of the Employers.

 

15.                                 Governing
Law.  This is a Massachusetts
contract and shall be construed under and is governed in all respect by the
laws of the Commonwealth of Massachusetts.

 

16.                                 Captions.  The captions of this Agreement are for
convenience of reference only, are not part of the terms of this Agreement and
shall have no force or effect in the application or interpretation thereof.

 

17.                                 Entire
Agreement.  This Agreement contains
the entire agreement between the parties to this Agreement concerning the
subject matter hereof and supersedes all prior agreements, understandings,
discussions, negotiations and undertakings, whether written or oral, between
the parties with respect thereto.

 

18.                                 Bank
Regulatory Limitations.  Any
payments made to the Executive pursuant to this Agreement, or otherwise, are
subject to and conditioned upon their compliance with 12 U.S.C. § 1828(k) and
any applicable regulations promulgated thereunder.  In addition, to the extent required by applicable law,
regulation, regulatory policy or other regulatory requirement, the aggregate
amount and/or value of the compensation paid as a result of any termination of
the Executive’s employment with the Employers, regardless of the reason for any
such termination of employment, shall not exceed

 

 

the limit prescribed by
such applicable law, regulation, regulatory policy or other regulatory
requirement.

 

IN WITNESS WHEREOF, this
Agreement has been executed as a sealed instrument on behalf of the Employers
by their duly authorized officers and by the Executive as of the date first
above written.

 

 

	
  ATTEST:

  	
   

  	
  ENTERPRISE BANCORP,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Arnold S. Lerner

  	
   

  	
  By:

  	
  /s/ George L. Duncan

  	
   

  
	
  Arnold S. Lerner

  	
   

  	
   

  	
  George L. Duncan

  
	
   

  	
   

  	
   

  	
  Chairman and Chief
  Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
  ENTERPRISE BANK AND
  TRUST COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Arnold S. Lerner

  	
   

  	
  By:

  	
  /s/ George L. Duncan

  	
   

  
	
  Arnold S. Lerner

  	
   

  	
   

  	
  George L. Duncan

  
	
   

  	
   

  	
   

  	
  Chairman and Chief
  Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
  EXECUTIVE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ John P. Clancy, Jr.

  	
   

  	
  /s/ Paul M. O’Connell,
  Jr

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]