Document:

employmentk_8k.htm

    
      
         

      

      
         

        
          

        

      

      
         

        
          Mr. Allan
D. Ivie, IV

          June 4,
2010

          Page

          

          

        

      

    

    RELIANCE BANCSHARES,
INC.

    10401
Clayton Road

    Frontenac,
Missouri  63131

    

    June 4,
2010

    

    

    

    Mr. Allan
D. Ivie, IV

    
      

    Re:           Your Employment by Reliance
Bancshares, Inc. and Reliance Bank

    

    Dear
Allan:

    

    The purpose of this letter is to set
forth the terms and conditions of your employment by Reliance Bancshares, Inc.
(“Reliance”)
and Reliance Bank, which is a wholly-owned subsidiary of Reliance (the “Bank”).  We
look forward to your joining the Reliance organization.

    

    
      	
              1.  

            	
              Position.  You
      will serve as President and Chief Executive Officer of Reliance and
      Chairman and Chief Executive Officer of the Bank.  In these
      positions, you will report to the Board of Directors of Reliance or the
      Bank, as the case may be.  You will also be appointed or elected
      and will serve as a director of Reliance and of the Bank.  You
      also agree to serve as an officer and/or director of any other subsidiary
      or affiliate of Reliance, including Reliance Bank, FSB, without additional
      compensation.  So long as you remain an employee of Reliance and
      the Bank, your entire working time, energy, skills and best efforts shall
      be devoted to the performance of your duties hereunder in a manner which
      will faithfully and diligently further the banking interests of Reliance
      and the Bank.

            

    

     

    
      	
              2.  

            	
              Employment
      Term.  The term of your employment will commence on or
      about June 14, 2010, subject to the terms and timing of your resignation
      from your present employment, and shall continue for an initial term
      ending January 3, 2013.  Beginning February 1, 2012, the term
      shall be extended for one additional month on the first day of each
      calendar month, unless either party gives written notice of its desire and
      intent not to further extend the term, provided, however, that Reliance or
      you may terminate this agreement, without Cause or Good Reason at the end
      of the initial term by giving written notice of termination at least 60
      days prior to January 3, 2013.

            

    

     

    

    
      	
              3.  

            	
              Base
      Salary.  Your base salary for 2010 and 2011 will be
      $425,000.00 per year and effective January 1, 2012 through the end of the
      contract period will be $446,000.00 per year and will be prorated
      accordingly.  Your base salary will be payable in monthly or
      more frequent installments in accordance with Reliance’s usual payroll
      practices for senior executive officers, less such amounts as are required
      to be withheld by law.

            

    

     

    
      	
              4.  

            	
              Bonuses.  You
      will not be eligible for annual or special bonuses until Reliance is no
      longer subject to regulations of the U.S. Treasury Department that
      prohibit or limit such payments because Reliance has received financial
      assistance under the Troubled Asset Relief Program (“TARP Regulations”) or
      those regulations are replaced or modified to permit
      bonuses.  In such event, you will be eligible for bonuses as may
      be awarded you by Reliance’s Compensation Committee and its Board of
      Directors.

            

    

     

    
      	
              5.  

            	
              Restricted
      Stock. You will be awarded shares of Class A Common Stock, $0.25
      par value, of Reliance under its 2010 Restricted Stock Plan in the amounts
      shown below on the dates indicated, provided they are within the allowable
      maximum award levels permitted by TARP Regulations.  All awards
      will be subject to a two-year cliff vesting period and subject to minimum
      holding periods as required by TARP Regulations.  In the event
      of a Change in Control, (as defined in Exhibit
      A attached) all shares awarded will be immediately vested as
      permitted by TARP Regulations. You will be permitted to sell shares of
      restricted stock to pay income tax after the risk of forfeiture lapses on
      annual awards of restricted shares, as permitted by TARP Regulations and
      subject to federal and state securities
laws.

            

    

     

    Dates of
Award

    
      	
               
      

            	
              July
      1, 2010 - The lesser of 40,000 shares or the maximum number allowed by
      TARP Regulations;

            

    

    
      	
               
      

            	
              January
      1, 2011 - The lesser of 75,000 shares or the maximum number allowed by
      TARP Regulations;

            

    

    
      	
               
      

            	
              January
      1, 2012 - The lesser of 65,000 shares or the maximum number allowed by
      TARP Regulations.

            

    

    

    Under
current TARP Regulations the cash equivalent value may not exceed 50% of your
annual salary at the time of award.  The price of the Reliance Class A
Common Stock shall be calculated for all purposes hereunder as the fair market
value of such stock on the date of award.

     

    
      	
              6.  

            	
              Fringe
      Benefits.  You will be entitled to the same fringe
      benefits provided other senior executive officers, including without
      limitation life insurance, health insurance for you and your eligible
      family members, disability insurance and participation in the Reliance
      Bank 401(k) plan and the Employee Stock Purchase
  Plan.

            

    

     

    
      	
              7.  

            	
              Other
      Benefits.  Your club dues at the Racquet Club and the St.
      Louis Club will be paid by Reliance or the Bank as well as the expense of
      a Blackberry or Iphone. Expenses incurred for mileage, business travel and
      client entertainment will also be reimbursed to
  you.

            

    

     

    
      	
              8.  

            	
              Vacations.  You
      will be entitled to four weeks paid vacation a year, beginning in 2011 and
      two weeks for the remainder of
2010.

            

    

     

    
      	
              9.  

            	
              Change in
      Control.  In the event that TARP Regulations no longer
      apply to Reliance or TARP Regulations are modified or changed, Reliance
      will undertake to discuss with you a post-employment non-compete agreement
      and a reasonable severance agreement in the event of a Change in Control
      (as defined in Exhibit
      A attached).

            

    

     

    
      	
              10.  

            	
              Termination
      of Employment.  Reliance may terminate your employment
      for Cause (as defined in Exhibit A
      attached) at any time upon giving you at least 30 days prior
      written notice, and you may terminate your employment for Good Reason (as
      defined in Exhibit
      A) at any time upon giving Reliance at least thirty (30) days prior
      written notice.  In the event that your employment is terminated
      for Cause or Good Reason, you will be entitled to continued compensation
      through the end of the notice period, after which your compensation and
      fringe benefits will cease.  In the event that your employment
      is terminated by reason of your death or a Long-Term Disability (as
      defined in Exhibit
      A attached), your compensation and fringe benefits (other than the
      right to receive life insurance or disability insurance proceeds, if any)
      will cease upon the occurrence of such
event.

            

    

     

    
      	
              11.  

            	
              Noncompete
      and Confidential Information.  During the term of your
      employment with Reliance and the Bank, and for a period of one year
      following termination of your employment by you without Good Reason (as
      defined in Exhibit
      A) or by Reliance for Cause, you will not directly or indirectly
      compete with the commercial bank business of Reliance or the Bank and its
      successors or assigns.  This prohibition is for a 50 mile radius
      from the headquarters of Reliance in St. Louis County,
      Missouri.  In addition, you agree for said period not to
      directly or indirectly contact, solicit or promote any bank-related
      service to any customer, person or company doing business with Reliance or
      the Bank and you will not solicit, induce or attempt to induce any of
      their officers or employees to terminate his or her employment with either
      of them (unless it is in the course of your duties as a director or
      officer of Reliance or the Bank).  Finally, you agree that your
      access to trade secrets, customers lists, confidential customer
      information, including loans, and access to computer data and information
      will remain confidential and you will not use such information on your own
      behalf or for your own benefit or disclose the same to any third party
      during your employment or at any time
  thereafter.

            

    

     

    
      	
              12.  

            	
              D&O
      Liability Insurance Policy; Indemnification.  During
      the terms of your employment and for five (5) years thereafter, Reliance
      shall maintain a director and officer liability insurance policy with
      coverages equal or superior to those provided in the policy attached
      hereto as Exhibit
      B.  You also shall be entitled during and after your
      employment to indemnification and advancement of expenses from Reliance
      for defense of acts taken or omitted in your capacity as a director or
      officer of Reliance, the Bank, or any subsidiary in amount and scope no
      less than that currently provided to directors of Reliance, the Bank, or
      any subsidiary pursuant to the current Bylaws of Reliance, which are
      attached hereto as Exhibit
      C.

            

    

     

    
      	
              13.  

            	
              General
      Provisions.  Our contractual arrangements concerning your
      employment shall be construed in accordance with the laws of the State of
      Missouri.  All notices shall be in writing.  Any
      changes to the arrangements set forth herein must be in writing and signed
      by you, and Reliance in order to be effective.  This is the
      entire agreement between the parties concerning the subject matter
      hereof.

            

    

     

    If the foregoing arrangements are
satisfactory to you, please execute two originals of this letter and return them
to me for my signature.

    

    RELIANCE BANCSHARES, INC.

    

    

    By           /S/ Jerry S. Von
Rohr                                                                

                   
Jerry S. Von Rohr

                   
Chairman of the Board and CEO

    

    

    

    /S/ Allan D. Ivie,
IV                                                                

                  
ALLAN D. IVIE, IV

    

    

     

    
      	
              1.  

            	 

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
A

    Definitions

    

    

    This comprises Exhibit A to a letter
agreement concerning the employment of Allan D. Ivie, IV by Reliance Bancshares,
Inc and Reliance Bank.

    

    As used in the letter agreement to
which this Exhibit A is attached, the following definitions shall
apply.

    

    Definition
of “Cause”

    

    The term “Cause”
with respect to the employee shall mean:  (i) the employee has acted
with personal dishonesty in connection with the performance of his duties as an
employee of Reliance or the Bank or has breached his fiduciary duty to Reliance
or the Bank; or (ii)
the employee has willfully violated any law, rule, or regulation (other than
routine traffic violations or similar offenses), which is materially damaging or
detrimental to Reliance or the Bank; or (iii) the employee is
convicted, or enters a plea of guilty or no contest to, a felony or to any other
crime involving moral turpitude or engages in actions which subject him to
discipline by banking industry regulators; or (iv) the employee is found
to have illegal substances in his system or is impaired by alcohol while engaged
in the performance of work for Reliance or the Bank; or (v) employee uses alcohol
or illegal substances to an extent that it interferes with the performance of
employee’s duties hereunder; or (vi) employee fails to
materially carry out directives of the Board of Directors of Reliance or the
Bank, engages in willful misconduct or is in material breach of the employment
agreement, which breach is not cured within 30 days of written notice of such
breach to employee.  For purposes of defining Cause, no act, or
failure to act, on an employee’s part shall be considered “willful” unless done,
or omitted to be done, by the employee not in good faith and without reasonable
belief that the act or omission was in the best interests of Reliance or the
Bank.

    

    Definition
of “Change in Control”

    

    (a) A “Change in
Control” shall be deemed to have occurred if:  (i) any person
(other than Reliance, or any entity owned directly or indirectly by the
shareholders of Reliance in substantially the same proportions as their
ownership of voting securities of Reliance), becomes the beneficial owner,
directly or indirectly, of securities of Reliance representing 50 percent or
more of the combined voting power of Reliance’s then outstanding voting
securities; or (ii) if Reliance then
has a classified Board of Directors, during any period of 24 consecutive months
(or the time period between any three annual meetings of the shareholders where
directors are elected, if longer), individuals who at the beginning of such
period constitute the Board of Directors of Reliance, plus any new director
(other than a director designated by a person who has entered into an agreement
with Reliance to effect a transaction described in clause (i), (iv), or (v) of
this subsection) whose appointment by the Board of Directors or whose nomination
for election by Reliance’s shareholders was approved by a vote of at least
two-thirds (2/3) of the directors then still in office who either were directors
at the beginning of the period or whose election or nomination for election was
previously so approved, cease for any reason to
constitute at least a majority of the Board of Directors of Reliance or; (iii) if Reliance does
not then have a classified Board of Directors, during any period of 12
consecutive months (or the time period between any two annual meetings of the
shareholders where directors are elected, if longer), individuals who at the
beginning of such period constitute the Board of Directors of Reliance, plus any
new director (other than a director designated by a person who has entered into
an agreement with Reliance to effect a transaction described in clause (i),
(iv), or (v) of this subsection) whose appointment by the Board of Directors or
whose nomination for election by Reliance’s shareholders was approved by a vote
of at least a majority of the directors still in office who either were
directors at the beginning of the period or whose election or nomination for
election was previously so approved, cease for any reason to
constitute at least a majority of the Board of Directors of Reliance; or (iv) Reliance consummates
a merger or consolidation of Reliance with any other entity, other than (a) a merger or
consolidation which would result in the voting securities of Reliance
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) more than 50 percent of the combined voting power of the
voting securities of Reliance or such surviving entity outstanding immediately
after such merger or consolidation or (b) a merger or
consolidation effected to implement a recapitalization of Reliance or similar
transaction in which no person acquires more than 50 percent of the combined
voting power of Reliance’s then outstanding voting securities; or (v) the shareholders of
Reliance approve a plan of complete liquidation of Reliance or an agreement for
the sale or disposition by Reliance of all or substantially all of Reliance’s
assets.

     

    Notwithstanding
the foregoing, a Change in Control of Reliance shall not
include any of the following:

     

    (i)           A
public stock offering; or

    

    (ii)           A
sale of an equity interest in Reliance to a group of investors which includes
material direct or indirect ownership by members of management of Reliance at
the time of such purchase; or

     

    (iii)           Any
acquisition of an equity interest in Reliance by an employee benefit plan
sponsored or maintained by Reliance.

     

    Definition
of Good Reason

     

    An employee shall be deemed to have
“Good
Reason” to terminate his employment with Reliance in the event
that:  (i) the employee’s base salary is reduced by more than 10
percent, unless the employee consents in writing to such change; or (ii) the employee’s
participation in bonus or benefits plans maintained by Reliance is materially
reduced, other than due to modification or elimination of such bonus or benefit
plans as to senior executive employees generally; or (iii) without the
employee’s consent, the employee is required to relocate his primary place of
business to a location that is greater than 25 miles from Reliance’s principal
executive offices, or greater than 25 miles from the employee’s regular place of
employment by Reliance immediately prior to the change, if other than Reliance’s
principal executive offices; or (iv) without the
employee’s consent, there occurs a material diminution in the employee’s overall
duties, responsibilities, title, and status with Reliance; or (v) Reliance is in
material breach of this employment agreement, which breach is not cured within
30 days of written notice to Reliance; or (vi) Reliance or the Bank
borrow additional money under TARP; or (vi) employment is
terminated by either party at the end of a term as provided herein.

    

    Definition
of Long-Term Disability

    

    An employee shall be deemed to have
commenced a “Long-Term
Disability” if (i) the employee cannot perform the essential functions of
his employment position, with or without a reasonable accommodation for his
disability, or (ii) the
employee cannot perform the essential functions of his employment position
without an accommodation that would be an undue hardship for Reliance to
provide, in either case by reason of physical or mental impairment, which
condition continues for a period of at least six months.  The
foregoing definition of Long-Term Disability is not intended to and shall not
affect the definition of “Disability” or any similar or related term in any
insurance policy Reliance may provide.

    

    

    

    
      
        
          Exhibit A
– Page 

        

         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
B

    

    D&O Liability Insurance
Policy

    

    

    

    
      
        
          Exhibit B
– Page 

        

         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
C

    

    Reliance
Bylaws

    

    
 

    

    

    

    

    

    

    

    

    

     

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    

    

    

    

    

    

    RELIANCE
BANCSHARES, INC

    10401
Clayton Road

    Frontenac,
Missouri 63131

    June
4, 2010

    

    Mr. Allan
D. Ivie, IV

    
      

    Re:  Addendum to Your
Employment Agreement

    

    Dear
Allan:

    

    This addendum is made a part of your
Employment Agreement with Reliance Bancshares, Inc. executed this date and it
supplements the same as provided by paragraph 13 thereof.

    

    You have provided Reliance with a copy
of your Confidentiality, Non-compete and Non-solicit Agreement with your current
employer (the “Non-compete agreement”) and you have advised that you plan to
attempt to negotiate a full or partial waiver of its provisions.  You
have asked Reliance to sign the Employment Agreement before you give notice of
your resignation to your present employer and attempt to resolve the Non-compete
agreement.

    

    As an inducement to Reliance to sign
the Employment Agreement at this time, you further agree to make an immediate
good faith attempt to obtain a waiver or limitation of the Non-compete
agreement.  If, however, the results of your good faith efforts will
not permit you to fully perform your duties with Reliance and Reliance Bank, or
if an injunction is issued against you, Reliance or Reliance Bank, then Reliance
may cancel and terminate the Employment Agreement without further obligation or
liability thereunder by giving you written notice of its cancelation of the
same.

    

    The parties further agree that there
will be no announcement or disclosure of either of these agreements until you to
resolve the Non-compete agreement and the parties hereto agree to announce the
new arrangement.

     
 

    If this addendum to your Employment
Agreement is satisfactory, please sign and return a copy of this
letter.

     

                             RELIANCE BANCSHARES,
INC

    

    

                                                                                                    By
   /S/
Jerry S. Von
Rohr                                                                                                                                          

                                                                                                          Jerry
S. Von Rohr

                                                                                                          Chairman
of the Board and CEO

    

    

                                                                                                            /S/
Allan D. Ivie, IV 

                          Allan
D. Ivie, IVex10-196.htm

EXHIBIT 10.196

 

 

THE SHARES OF COMMON STOCK SUBSCRIBED FOR BY THIS AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY OTHER APPLICABLE STATE SECURITIES LAWS AND TRANSFER OF SUCH SHARES IS RESTRICTED BY THE TERMS OF THIS AGREEMENT.

 

SUBSCRIPTION AGREEMENT

 

This SUBSCRIPTION AGREEMENT (the “Agreement”) is made by and between the subscriber hereto (the “Subscriber”) and Calypte Biomedical Corporation, a Delaware corporation (the “Company”).

 

The Subscriber hereby agrees to purchase, and the Company hereby agrees to issue and to sell to the Subscriber, the number of shares (the “Shares”) of common stock of the Company, par value $.03 per share (the “Common Stock”), set forth on the signature page, for a purchase price in cash equal to $0.03 per share (the aggregate amount to be paid by the Subscriber shall be referred to as the “Purchase Price”). After acceptance of this Agreement by the Company and payment and delivery by the Subscriber to the Company of the Purchase Price in the form of wire transfer pursuant to the terms of Section 7(b) of this Agreement, the Company shall issue and deliver to the Subscriber the Shares.

 

NOW, THEREFORE, in order to implement the foregoing and in consideration of the mutual representations, warranties, covenants and agreements contained herein and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows.

 

1.           Subscriber’s Representations and Warranties. The Subscriber hereby represents and warrants to and agrees with the Company that:

 

(a)           Access to Information. The Subscriber acknowledges that it has been furnished with the Company’s Form 10-K for the year ended December 31, 2008 as filed with the Securities and Exchange Commission (the “Commission”) together with all subsequently filed Forms 10-Q, 8-K, and other publicly available filings made with the Commission (hereinafter referred to collectively as the “Reports”) and has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and risks of investing in the Company; (ii) access to information about the Company and its subsidiary and their respective financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment. Neither such inquiries nor any other investigation conducted by or on behalf of the Subscriber or its representatives or counsel shall modify, amend or affect the Subscriber’s right to rely on the truth, accuracy and completeness of the Reports and the Company’s representations and warranties contained herein.

 

  

1

  

 

(b)           Information on Subscriber. The Subscriber is and was not a “U.S. person,” as defined in Regulation S of the Securities Act of 1933, as amended (the “1933 Act”), and was outside the United States, at the time the offer or sale of the Securities was made. Additionally, the Subscriber is an “accredited investor,” as such term is defined in Regulation D of the 1933 Act or is part of a group that is experienced in investments and business matters, has made investments of a speculative nature and has purchased securities of United States publicly-owned companies in private placements in the past and, with its representatives, has such knowledge and experience in financial, tax and other business matters as to enable the Subscriber to utilize the information made available by the Company, to evaluate the merits and risks of an investment in the Company and to make an informed investment decision with respect to the proposed purchase, which represents a speculative investment. The Subscriber is a natural person or an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with the requisite corporate or partnership power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder. The execution, delivery and performance by the Subscriber of the transactions contemplated by this Agreement has been duly authorized by all necessary corporate or, if the Subscriber is not a corporation, such partnership, limited liability company or other applicable like action, on the part of the Subscriber. This Agreement has been duly executed by the Subscriber and when delivered by the Subscriber in accordance with terms hereof, will constitute the valid and legally binding obligation of the Subscriber, enforceable against it in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable principles of general application. The Subscriber is able to bear the risk of such investment for an indefinite period and to afford a complete loss thereof. The information set forth on the signature page hereto regarding the Subscriber is accurate.

 

(c)           Purchase of Shares and Investment Intent. The Subscriber is purchasing the Shares for its own account for the Purchase Price. The Subscriber is acquiring the Shares as principal for its own account for investment purposes only and not with a view to or for distributing or reselling such Shares or Warrant or any part thereof, without prejudice, however, to the Subscriber’s right at all times to sell or otherwise dispose of all or any part of such Shares in compliance with applicable federal and state securities laws. The Subscriber does not have any agreement or understanding, directly or indirectly, with any person to distribute any of the Shares. The Subscriber also represents that its purchase of the Shares is intended to be made as an “Offshore Transaction” as defined in Regulation S.

 

(d)           Compliance with Securities Act. The Subscriber understands and agrees that the Shares have not been registered under the 1933 Act, by reason of their issuance in a transaction that does not require registration under the 1933 Act (based in part on the accuracy of the representations and warranties of the Subscriber contained herein), and that such Shares may not be offered or sold in the United States or to U.S. persons unless the Shares are registered under the 1933 Act or an exemption from the registration requirements of the 1933 Act is available.

 

  

2

  

 

(e)           Legend on Shares. The Shares shall bear the following legend (or something comparable for the Warrant), unless the Shares shall have been included in an effective registration statement under the 1933 Act:

 

“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THESE SHARES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION IS NOT REQUIRED.”

(f)           Communication of Offer. The offer to sell the Shares was directly communicated to the Subscriber. At no time was the Subscriber presented with or solicited by any leaflet, newspaper or magazine article, radio or television advertisement, or any other form of general advertising or solicited or invited to attend a promotional meeting otherwise than in connection and concurrently with such communicated offer.

 

(g)          Certain Trading Activities. The Subscriber has not directly or indirectly, nor has any person acting on behalf of or pursuant to any understanding with the Subscriber, engaged in any trading in any securities of the Company (including, without limitation, any Short Sales (defined below) involving the Company’s securities) during the 20 trading days immediately preceding the issuance of the Shares. For purposes of this Section, “Short Sales” include, without limitation, all “short sales” as defined in Rule 3b-3 of the Securities Exchange Act of 1934, as amended (the “1934 Act”) and include all types of direct and indirect stock pledges, forward sale contracts, options, puts, calls, short sales, swaps and similar arrangements (including on a total return basis), and sales and other transactions through non-U.S. broker dealers or foreign regulated brokers having the effect of hedging the securities or investment made under this Agreement. As of the date of this Agreement, the Subscriber has no open short position in the Common Stock, and covenants that neither it nor any person acting on its behalf or pursuant to any understanding with it will engage in any Short Sales prior to the public disclosure of the material terms of this transaction by the Company. The Subscriber understands and acknowledges that it may not engage in any hedging transactions with respect to the Shares other than in compliance with the 1933 Act.

 

(h)           Correctness of Representations. The Subscriber represents that the foregoing representations and warranties are true and correct. The foregoing representations and warranties shall survive the date hereof.

 

  

3

  

 

2.           Company Representations and Warranties. The Company represents and warrants to and agrees with the Subscriber that:

 

(a)           Due Incorporation. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has the requisite corporate power to own its properties and to carry on its business as now being conducted. The Company is duly qualified as a foreign corporation to do business and is in good standing in each jurisdiction where the nature of the business conducted or property owned by it makes such qualification necessary, other than those jurisdictions in which the failure to so qualify would not have a material adverse effect on the business, operations or financial condition of the Company.

 

(b)           Outstanding Stock. All issued and outstanding shares of capital stock of the Company have been duly authorized and validly issued and are fully paid and non- assessable.

 

(c)           Authority; Enforceability. This Agreement has been duly authorized, executed and delivered by the Company and is a valid and binding agreement enforceable in accordance with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights generally and to general principles of equity; and the Company has full corporate power and authority necessary to enter into this Agreement and to perform its obligations hereunder.

 

(d)           Shares Duly Authorized. The Shares when issued and delivered in accordance with the terms of this Agreement, will be duly authorized, validly issued, fully paid and non-assessable.

 

(e)           Stop Transfer. The Shares are restricted securities as of the date of this Agreement. The Company will not issue any stop transfer order or other order impeding the sale, resale or delivery of the Stock, except as may be required by federal securities laws.

 

(f)           No General Solicitation. Neither the Company, nor any of its affiliates, nor to its knowledge, any person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation S or D under the 1933 Act) in connection with the offer or sale of the Shares.

 

3.           Regulation S Offering. This offering is being made pursuant to the exemption from the registration provisions of the 1933 Act afforded by Regulation S thereunder.

 

4.           Reissuance of Shares. The Company will cause the removal of the legend set forth in Section 1(e) above at such time as (a) the Subscriber is permitted to, and disposes of, the Shares pursuant to an exemption to the registration requirements of the 1933 Act or Rule 144 of the 1933 Act, in the opinion of counsel reasonably satisfactory to the Company, or (b) upon sale of the Shares pursuant to an effective registration statement under the 1933 Act. The Company agrees to cooperate with the Subscriber in connection with all sales pursuant to Rule 144 of the 1933 Act and provide legal opinions necessary to allow such sales provided the Company and its counsel receive requested written representations from the Subscriber and selling broker, if any. The Company will pay for its costs in connection with the removal of the legend hereunder.

 

  

4

  

 

5.           “Piggy-Back” Registration Rights.

 

(a)           The Company agrees that when it registers any Common Stock under the 1933 Act by registration on Form S-1 or other similar form for sale for the account of one or more holders of Common Stock, the Company will use its best efforts to register all or some portion of the Shares in such registration statement as the Company may reasonably determine feasible. The Company will pay all expenses incident to the registration of the Shares hereunder and the Company’s performance of or compliance with this Agreement.

 

(b)           The Seller will furnish to the Company in writing such information and representation letters with respect to itself and the proposed distribution by it as reasonably shall be necessary in order to assure compliance with federal and state securities laws.

 

6.           Fees and Expenses. Each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all stamp and other taxes and duties levied in connection with the issuance of the Shares.

 

7.           Miscellaneous.

 

(a)           Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: (i) if to the Company to Calypte Biomedical Corporation, 16290 SW Upper Boones Ferry Road, Portland, Oregon 97224, facsimile number: (503) 601-6299, and (ii) if to the Subscriber, to the name, address and facsimile number set forth on the signature page hereto.

 

  

5

  

 

(b)           Closing. The Company acknowledges receipt of the Purchase Price, which Subscriber has advanced in installments of $50,000, $50,000, $50,000, $90,000, $80,000 and $68,000 on August 25, September 16, September 30, October 26, December 14 and December 31, 2009, respectively. Within a reasonable time following execution and delivery of this Agreement, the Company shall deliver the Shares to the Subscriber.

 

(c)           Entire Agreement; Assignment. This Agreement represents the entire agreement between the parties hereto with respect to the subject matter hereof and may be amended only by a writing executed by both parties. No right or obligation of either party shall be assigned by that party without the written consent of the other party.

 

(d)            Execution. This Agreement may be executed in separate counterparts, each of which shall be deemed an original and both of which shall constitute one and the same document. This Agreement may be executed by facsimile transmission.

 

(e)            Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Oregon without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of Oregon or in the federal courts located in the state of Oregon. Both parties and the individuals executing this Agreement agree to submit to the jurisdiction of such courts and waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.

 

(f)            Specific Enforcement, Consent to Jurisdiction. The Company and the Subscriber acknowledge and agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent or cure breaches of the provisions of this Agreement and to enforce specifically the terms and provisions hereof or thereof, this being in addition to any other remedy to which any of them may be entitled by law or equity. Subject to Section 7(e) hereof, each of the Company and the Subscriber hereby waives, and agrees not to assert in any such suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such court, that the suit, action or proceeding is brought in an inconvenient forum or that the venue of the suit, action or proceeding is improper. Nothing in this Section shall affect or limit any right to serve process in any other manner permitted by law.

 

  

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IN WITNESS WHEREOF, the parties have hereby executed this Agreement as of the day set forth in the acceptance set forth below.

 

	
12,933,333 

	 	
SUBSCRIBER NAME:

	Number of Shares	 	 
	 	 	 
	$388,000 	 	/s/ Carilina Lupascu 
	
Dollar Amount of Subscription Tendered by Subscriber

	 	Carolina Lupascu
	 	 	 
	 	 	 
	 	 	Street Address
	 	 	 
	 	 	 
	 	 	City and Country
	 	 	 
	 	 	 
	 	 	
Telephone Number

 

ACCEPTANCE

 

The foregoing subscription is hereby accepted, subject to the terms and conditions hereof, as of March 3, 2010.

 

	$388,000	 	CALYPTE BIOMEDICAL 
	Amount of Subscription Accepted	 	CORPORATION
	 	 	 
	12,933,333 	  	By: /s/ Adel Karas
	Number of Shares	 	Name:  Adel Karas
	 	 	
Title:  Chief Executive Officer

 

7

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