Document:

exv10w24

Exhibit 10.24

	 	 	 

	

	 	201 Elizabeth Street

Sydney NSW 2000

Australia

DX 107 Sydney

Tel +61 2 9286 8000

Fax +61 2 9283 4144

www.dlaphillipsfox.com

	 	 	 

	 

	 	 
	 

	 	 
	 

	 	 
	 

	 	 
	 

	 	 
	 

	 	 
	Escrow Deed

	 	 
	REVA Medical, Inc 

Computershare Investor Services Pty Limited
	 	 
	 

	 	 
	 

	 	 
	 

	 	 
	 

	 	 
	 

	 	 
	 

	 	 

	 	 	 

	 

	 	DLA Phillips Fox is a member of

Dla Piper Group, an alliance of

Independent legal practices. It is a

separate and distinct legal entity.

DLA Phillips Fox offices are located

in Adelaide Auckland Brisbane

Canberra Melbourne Perth Sydney

and Wellington.

 

 

Table of contents

	 	 	 	 	 	 	 

	Parties	 	 	1	 
	 
	 	 	 	 	 	 
	Background	 	 	1	 
	 
	 	 	 	 	 	 
	Operative provisions	 	 	1	 
	 
	 	 	 	 	 	 
	1
	 	Appointment of Escrow Agent	 	 	1	 
	 
	 	 	 	 	 	 
	2
	 	Obligations of Escrow Agent	 	 	1	 
	 
	 	Receipt of Application Monies	 	 	1	 
	 
	 	Investment of the Application Monies	 	 	2	 
	 
	 	Interest on the Application Monies	 	 	2	 
	 
	 	Release of the Application Monies	 	 	2	 
	 
	 	 	 	 	 	 
	3
	 	Limitations on liability of Escrow Agent	 	 	3	 
	 
	 	 	 	 	 	 
	4
	 	Escrow Agent's fees	 	 	4	 
	 
	 	 	 	 	 	 
	5
	 	Confidentiality	 	 	5	 
	 
	 	 	 	 	 	 
	6
	 	Resignation or Removal of Escrow Agent	 	 	5	 
	 
	 	 	 	 	 	 
	7
	 	GST	 	 	6	 
	 
	 	 	 	 	 	 
	8
	 	Notices	 	 	6	 
	 
	 	Giving notices	 	 	6	 
	 
	 	Change of address or fax number	 	 	6	 
	 
	 	Time notice is given	 	 	7	 
	 
	 	 	 	 	 	 
	9
	 	General provisions	 	 	7	 
	 
	 	Waiver and exercise of rights	 	 	7	 
	 
	 	Counterparts	 	 	7	 
	 
	 	Invalid or unenforceable provisions	 	 	7	 
	 
	 	Assignment	 	 	8	 
	 
	 	Amendment	 	 	8	 
	 
	 	Entire Agreement	 	 	8	 
	 
	 	Governing law	 	 	8	 
	 
	 	Jurisdiction	 	 	8	 
	 
	 	 	 	 	 	 
	10
	 	Definitions and interpretation	 	 	8	 
	 
	 	Definitions	 	 	8	 
	 
	 	Interpretation	 	 	9	 
	 
	 	 	 	 	 	 
	Execution and date	 	 	11	 

 

 

	 	 	 

	

	 	Escrow Deed

Parties

Reva Medical, Inc of 615 South DuPont Highway, Dover, Delaware 19901, United States of
America (Company)

Computershare Investor Services Pty Limited of GPO Box 7115, Sydney, NSW 2001 Australia (Escrow
Agent)

Background

	A	 	The Company proposes to conduct an Initial Public Offering
of its securities and seek a listing on the Australian
Securities Exchange.
	 
	B	 	In order to apply for CDIs under the Initial Public
Offering, applicants are required to complete an application
form and return it to the Escrow Agent accompanied by the
subscription monies for the CDIs applied for (Application
Monies).
	 
	C	 	The Company wishes to appoint the Escrow Agent to hold the
Application Monies in accordance with the terms of this
Agreement.
	 
	D	 	The Escrow Agent has agreed to hold the Application Monies
and to release it on the terms of this Agreement.

Operative provisions

	1	 	Appointment of Escrow Agent

	1.1	 	The Company appoints the Escrow Agent on the date of this Agreement to perform the
obligations set out in this Agreement in consideration of the mutual covenants given in this
Agreement.
	 
	1.2	 	The Escrow Agent nominates from time to time to act as signatories to the Escrow Account
opened in accordance with this Agreement and withdrawals from that account in accordance with
this Agreement may be made on the signature of of the Escrow Agent.

	2	 	Obligations of Escrow Agent

Receipt of Application Monies

	2.1	 	Upon receiving Application Monies from Applicants, the Escrow Agent must hold all such
amounts on the terms set out in this Agreement and the Prospectus, until such time as all of
the Application Monies have been released in full in accordance with this Agreement and the
Prospectus.

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	 	Escrow Deed

Investment of the Application Monies

	2.2	 	The Escrow Agent must:

	 	2.2.1	 	establish an interest-bearing Australian dollar bank account with
Australia and New Zealand Banking Group Limited at 24 hour call:

	 	(a)	 	in the name of the Company; and
	 
	 	(b)	 	with the Escrow Agent as the sole signatory; and

	 	2.2.2	 	deposit Application Monies in the Escrow Account promptly on receiving
them.

Interest on the Application Monies

	2.3	 	The parties agree that the interest that accrues on the Application Monies in the Escrow
Account shall be paid to the Company, less the deductions specified in clause 4 of this
Agreement.

Release of the Application Monies

	2.4	 	The Escrow Agent must make payments as and when instructed or required to do so by the
Company in accordance with clauses 2.6 and 2.7 below or by order of a court of competent
jurisdiction.
	 
	2.5	 	The Escrow Agent may liquidate, by following its usual procedures, any portion of the
Application Monies to pay amounts which this Agreement requires or authorises to be paid but
for no other reason.
	 
	2.6	 	The Application Monies may only be released upon the first to occur of the following events:

	 	2.6.1	 	upon receipt of a written notice in the form set out in Schedule 1 and
signed by two officers of the Company confirming that:
	 
	 	(a)	 	the Minimum Subscription Amount has been received into the Escrow
Account; and
	 
	 	(b)	 	ASX has granted permission for quotation of the CDIs issued under the
Initial Public Offering subject only to customary quotation conditions; and
	 
	 	(c)	 	the CDIs to be issued under the Initial Public Offering have been
allotted by the Company,
	 
	 	 	 	the Escrow Agent shall within 3 business days of receipt of the written notice:
	 
	 	(d)	 	distribute to the Company all Application Monies received with respect to
Applications which are accepted by the Company; and
	 
	 	(e)	 	release to the respective Applicants, any Application Monies with respect
to Applications which were rejected or scaled back (in which case a portion of

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	 	Escrow Deed

	 	 	 	the Application Monies equal to the portion by which the Application was scaled
back shall be released to the Applicant)
	 
	 	(f)	 	release to the Company all accrued interest on the Application Monies
less the deductions specified in clause 4 of this Agreement.
	 
	 	2.6.2	 	upon receipt of a written notice in the form set out in Schedule 1 and
signed by two officers of the Company confirming that:

	 	(a)	 	the Initial Public Offering has been withdrawn; or
	 
	 	(b)	 	the Minimum Subscription Amount is not received by
the Escrow Agent and/or approval for permission for quotation of the CDIs
issued under the Initial Public Offering subject only to customary
quotation conditions has not been received by [12 January 2010],

	 	 	 	the Escrow Agent shall within 3 business days of receipt of the written notice:

	 	(c)	 	release to the Applicants all Application Monies
received with respect to Applications
	 
	 	(d)	 	release to the Company all accrued interest on the
Application Monies less the deductions specified in clause 4 of this
Agreement.

	2.7	 	When any amount of the Application Monies are released to the Company, the Escrow Agent shall
convert the Application Monies from Australian dollars to US dollars (at the exchange rate
prevailing on the date of conversion as determined by the Escrow Agent) and pay it into the
bank account nominated by the Company.

	3	 	Limitations on liability of Escrow Agent

	3.1	 	The Escrow Agent’s duties are only as specifically provided in this Agreement. The
Escrow Agent is not liable for any mistake of fact, error of judgment, nor for any act done or
omitted to be done by it, or its officers, directors, employees and agents, except for its own
fraud or gross negligence.
	 
	3.2	 	The Company shall indemnify the Escrow Agent against all Loss suffered or incurred (whether
directly or indirectly) by the Escrow Agent or any Claim brought against the Escrow Agent
arising out of or in connection with this Agreement or its role as Escrow Agent, except to the
extent that such losses or Claims are due to the fraud or gross negligence of the Escrow
Agent.
	 
	3.3	 	The Escrow Agent’s determination as to whether:

	 	3.3.1	 	an event or condition has occurred, has been met or satisfied;
	 
	 	3.3.2	 	a provision of this Agreement has been complied with;

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	 	Escrow Deed

	 	3.3.3	 	sufficient evidence of the event or condition or compliance with the
provision has been furnished to it;

	 	 	does not subject it to any claim, liability or obligation, even if that determination is
found to have been improper or incorrect, unless the Escrow Agent was fraudulent or
grossly negligent in making that determination.
	 
	3.4	 	The Escrow Agent is not required to verify matters referred to in any written direction it
receives from the Company, nor the validity of that written direction, pursuant to or in
connection with this Agreement or the Prospectus and shall be entitled to reply on such facts
or circumstances as set out therein as if they were for all purposes true and accurate.
	 
	3.5	 	The Escrow Agent is not liable for investigating the authenticity, accuracy or content of the
written notice in Schedule 1 or the capacity of any person who signs or purports to sign such
a notice as an officer or authorised signatory of the Company.
	 
	3.6	 	The Escrow Agent acts as a depository only and is not responsible or liable for the
sufficiency or validity of any funds deposited with it.
	 
	3.7	 	The Escrow Agent may rely, and is protected in acting or refraining from acting, upon any
instrument, not only as to its due execution, validity and effectiveness, but also as to the
truth and accuracy of any information contained in it.
	 
	3.8	 	The Escrow Agent is not obliged to take legal proceedings, nor any other action contemplated
by this Agreement, if it becomes aware that any Applicant and the Company have disagreed about
the facts or the happening of any contemplated event which are conditions precedent to the
Escrow Agent’s required action.
	 
	3.9	 	The Escrow Agent is under no obligation to act on any instruction, direction or notice from
the Company under this Agreement which is inconsistent with or contravenes the Corporations
Act 2001 (Cwth).

	4	 	Escrow Agent’s fees

	4.1	 	In consideration for holding the Application Monies under this Agreement the Company
shall pay the Escrow Agent
	 
	4.2	 	the sum of $3,000 and to be reimbursed for its reasonable out-of-pocket expenses. These
expenses include, but are not limited to, bank fees, the fees and costs of attorneys or agents
which the Escrow Agent may find necessary to engage to perform its duties under this Agreement
; and

	 	4.2.1	 	an amount equal to 80 basis points of the interest accruing on the
Application Monies until the interest is paid out to the Company in accordance with
the terms of this Agreement;
	 
	 	 	 	(together, Escrow Agent’s Fees).

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	 	Escrow Deed

	4.3	 	The Escrow Agent may invoice the Company for the Escrow Agent’s Fees from the Closing Date of
the Offer (as such terms are defined in the Prospectus) and such fees shall be deducted from
the interest that accrues on the Application Monies on the date that the balance of the
accrued interest is released to the Company in accordance with the terms of this Agreement.

	5	 	Confidentiality

	5.1	 	Neither the Escrow Agent nor the Company may disclose the provisions of this Agreement
or any matters relating to this Agreement to any person except as required by law or to the
extent that the provision or matter has entered the public domain.

	6	 	Resignation or Removal of Escrow Agent

	6.1	 	The Escrow Agent may resign on giving 30 days’ written notice to the Company.
	 
	6.2	 	The Company may remove the Escrow Agent and replace it with another party after giving it 30
days written notice.
	 
	6.3	 	In either event, the Escrow Agent’s duties terminate:

	 	6.3.1	 	30 days after giving a notice under clause 6.1; or
	 
	 	6.3.2	 	30 days after receiving a notice given under clause 6.2,

	 	 	(or any earlier date that may be mutually agreeable to the parties).
	 
	6.4	 	If the Escrow Agent resigns or is removed, the Company must:

	 	6.4.1	 	appoint a successor escrow agent;
	 
	 	6.4.2	 	obtain that agent’s written consent to be bound by the terms of this
Agreement;
	 
	 	6.4.3	 	advise the Escrow Agent in writing of the identity of the successor
escrow agent; and
	 
	 	6.4.4	 	direct the Escrow Agent to deliver the Application Monies in its
possession or under its control to the successor.

	6.5	 	The Escrow Agent must comply immediately with a direction under clause 6.4.4.
	 
	6.6	 	If the Company has failed to appoint a successor before the expiration of the required time
following receipt of the notice given under clauses 6.1 or 6.2, the Escrow Agent, at the cost
of the Company, may petition the Supreme Court of New South Wales to appoint a successor
escrow agent or for other appropriate relief. Any resulting appointment is binding upon the
parties to this Agreement.

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	 	Escrow Deed

	6.7	 	The Escrow Agent is released and relieved of all duties, responsibilities and obligations
under this Agreement once the successor escrow agent acknowledges receipt of the Application
Monies.
	 
	6.8	 	The Escrow Agent ceasing to act and being released from the terms of this Agreement under
this clause 6 does not affect the indemnities in clause 3.2.

	7	 	GST

	 	7.1.1	 	Unless otherwise specified, any reference to an amount payable for a
supply to be made by Computershare in connection with this agreement is a reference
to that amount exclusive of GST (‘GST Exclusive Amount’).
	 
	 	7.1.2	 	If any supply made by a party to this agreement in connection with this
agreement is a taxable supply, the GST Exclusive Amount for that supply must be
increased by an amount equal to any GST which a party is or becomes liable to pay in
respect of the supply so that party retains, after deducting the GST, the GST
Exclusive Amount.

	8	 	Notices

Giving notices

	8.1.1	 	Any notice or communication given to a party under this Agreement is only given if it is in
writing and sent in one of the following ways:

	 	(a)	 	delivered or posted to that party at its address and marked for the
attention of the relevant department or officer (if any) set out below.
	 
	 	(b)	 	faxed to that party at its fax number and marked for the attention of the
relevant department or officer (if any) set out below.

	8.2	 	Notices must be delivered to:

	 	 	 	 	 

	 

	 	Company:
	 	REVA Medical, Inc
	 

	 	 	 	5751 Copley Drive, Suite B

San Diego, CA 92111

	 

	 	 	 	Attention: Katrina Thompson, Chief
Financial Officer
	 

	 	 	 	Facsimile number: + 1 [(858) 966-3099]
	 
	 	 	 	 
	 

	 	Escrow Agent:
	 	Computershare Investor Services Pty Limited
	 

	 	 	 	Yarra Falls 452 Johnston Street Victoria 3067Attention: Greg Bertram
	 

	 	 	 	Facsimile number: +61 3

Change of address or fax number

	8.2.1	 	If a party gives the other party three business days’ notice of a change of its address or
fax number, any notice or communication is only given by that other party if it is delivered,
posted or faxed to the latest address or fax number.

6

 

	 	 	 

	

	 	Escrow Deed

Time notice is given

	8.2.2	 	Any notice or communication is to be treated as given at the following time:

	 	(a)	 	if it is delivered, when it is left at the relevant address;
	 
	 	(b)	 	if it is sent by post, two (or, in the case of a notice or communication
posted to another country, nine) business days after it is posted;
	 
	 	(c)	 	if it is sent by fax, as soon as the sender receives from the sender’s
fax machine a report of an error free transmission to the correct fax number.

	8.2.3	 	However, if any notice or communication is given, on a day that is not a business day or
after 5pm on a business day, in the place of the party to whom it is sent it is to be treated
as having been given at the beginning of the next business day.

	9	 	General provisions

Waiver and exercise of rights

	9.1	 	A waiver by a party of a provision or a right under this Agreement binds the party granting
the waiver only if it is given in writing and is signed by the party or an authorised officer
of the party granting the waiver.
	 
	9.2	 	A waiver is effective only in the specific instance and for the specific purpose for which it
is given.
	 
	9.3	 	A single or partial exercise of a right by a party does not preclude another exercise or
attempted exercise of that right or the exercise of another right.
	 
	9.4	 	Failure by a party to exercise or delay in exercising a right does not prevent its exercise
or operate as a waiver.

Counterparts

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

Invalid or unenforceable provisions

	9.6	 	If a provision of this Agreement is invalid or unenforceable in a jurisdiction:

	 	9.6.1	 	it is to be read down or severed in that jurisdiction to the extent of
the invalidity or unenforceability; and
	 
	 	9.6.2	 	that fact does not affect the validity or enforceability of:

	 	(a)	 	that provision in another jurisdiction; or
	 
	 	(b)	 	the remaining provisions.

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	 	Escrow Deed

Assignment

	9.7	 	This Agreement is not assignable by the Company or the Escrow Agent without each of the
parties having first given their written consent.

Amendment

	9.8	 	This Agreement cannot be amended by the Company or the Escrow Agent without each of the
parties having first given their written consent.

Entire Agreement

	9.9	 	This Agreement contains the entire agreement between the parties with respect to the matters
set out in this Agreement, and no additional obligations of the Escrow Agent will be inferred
from the terms of this Agreement or any other agreement.

Governing law

	9.10	 	This Agreement is governed by and construed according to the laws of New South Wales.

Jurisdiction

	9.11	 	Each party irrevocably and unconditionally:

	 	9.11.1	 	submits to the non-exclusive jurisdiction of the courts of New South Wales.
	 
	 	9.11.2	 	waives, without limitation, any claim or objection based on absence of
jurisdiction or inconvenient forum.

	10	 	Definitions and interpretation

Definitions

	10.1	 	In this Agreement the following definitions apply:
	 
	 	 	Applicants persons who submit a valid Application pursuant to the Prospectus.
	 
	 	 	Applications means the application forms submitted to the Company under which the
Applicants agree to subscribe for CDIs.
	 
	 	 	Application Monies means the Australian dollar subscription amounts received by the
Escrow Agent from the Applicants with respect to their Applications.
	 
	 	 	ASX means ASX Limited (ABN 98 008 624 691) or the securities market it operates, as the
context requires.
	 
	 	 	ASX Settlement means ASX Settlement Pty Limited (ABN 49 008 504 532).
	 
	 	 	CDIs means a CHESS Depositary Interest in one-tenth of a share of fully paid common stock
in the Company.
	 
	 	 	CHESS means The Clearing House Electronic Sub-Register System of share transfers operated
by ASX Settlement.

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	 	Escrow Deed

	 	 	Claims means any claim, demand, legal proceedings or cause of action including any claim,
demand, legal proceedings or cause of action in any way relating to this Agreement.
	 
	 	 	CHESS Depositary Interest means a security interest as defined in the operating rules of
ASX Settlement.
	 
	 	 	Escrow Account means the escrow account established by the Escrow Agent in accordance
with clause 2.2.1.
	 
	 	 	Initial Public Offering means the initial public offering pursuant to which the Company
is offering a minimum of 63,636,370 CDIs for subscription.
	 
	 	 	Loss means loss, damage, liability, charge, expense or cost (including all reasonable
legal and other professional costs on a full indemnity basis) of any nature or kind.
	 
	 	 	Minimum Subscription Amount means A$70,000,000.
	 
	 	 	Prospectus means the prospectus to be issued by the Company with respect to the Initial
Public Offering.

Interpretation

	10.1.1	 	In the interpretation of this Agreement, the following provisions apply unless the context
otherwise requires:

	 	(a)	 	headings are inserted for convenience only and do not affect the
interpretation of this Agreement;
	 
	 	(b)	 	a reference in this Agreement to a business day means a day other than a
Saturday or Sunday on which banks are open for business generally in Sydney,
Australia;
	 
	 	(c)	 	if the day on which any act, matter or thing is to be done under this
Agreement is not a business day, the act, matter or thing must be done on the next
business day;
	 
	 	(d)	 	a reference in this Agreement to any law, legislation or legislative
provision includes any statutory modification, amendment or re-enactment, and any
subordinate legislation or regulations issued under that legislation or legislative
provision;
	 
	 	(e)	 	a reference in this Agreement to any agreement or document is to that
agreement or document as amended, novated, supplemented or replaced;
	 
	 	(f)	 	a reference to a clause, part, schedule or attachment is a reference to a
clause, part, schedule or attachment of or to this Agreement;
	 
	 	(g)	 	an expression importing a natural person includes any company, trust,
partnership, joint venture, association, body corporate or governmental agency;

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	 	Escrow Deed

	 	(h)	 	a word which denotes the singular also denotes the plural, a word which
denotes the plural also denotes the singular, and a reference to any gender also
denotes the other genders; and
	 
	 	(i)	 	a reference to the word ‘include’ or ‘including’ is to be construed
without limitation.

10

 

	 	 	 

	

	 	Escrow Deed

Execution and date

Executed as a deed.

Date:

	 	 	 	 	 	 	 

	Executed by REVA Medical, Inc acting by the

following persons or, if the seal is affixed,

witnessed by the following persons:	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Signature of authorised officer

	 	 	 	Signature of authorised officer	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Name of authorised officer (print)

	 	 	 	Name of authorised officer (print)	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Executed by Computershare Investor

Services Pty Limited acting by the following

persons or, if the seal is affixed, witnessed by

the following persons:	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Signature of director

	 	 	 	Signature of director/ secretary	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Name of director (print)

	 	 	 	Name of director/secretary (print)	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 

11

 

	 	 	 

	

	 	Escrow Deed

Schedule 1

Form of Written Notice

	From:	 	REVA Medical, Inc (REVA)
	 
	To:	 	Computershare Investor Services Pty Limited (Computershare)

Written Notice pursuant to clause 2 of the escrow deed between REVA and Computershare (Escrow Deed)

Capitalised words used in this notice but not defined have the same meaning as in the Escrow Deed.

[Delete as applicable]

In accordance with clause 2 of the Escrow Deed REVA hereby confirms:

	 	(a)	 	the Minimum Subscription Amount has been received into the Escrow
Account; and
	 
	 	(b)	 	ASX has granted permission for quotation of the CDIs issued under the
Initial Public Offering subject only to customary quotation conditions; and
	 
	 	(c)	 	the CDIs to be issued under the Initial Public Offering have been
allotted by the Company.

[or]

	 	(a)	 	the Initial Public Offering has been withdrawn; or
	 
	 	(b)	 	the Minimum Subscription Amount has not been received by the Escrow Agent
and/or approval for permission for quotation of the CDIs issued under the Initial
Public Offering subject only to customary quotation conditions has not been received
by [12 January 2010].

Date:

12

 

	 	 	 

	

	 	Escrow Deed

	 	 	 	 	 	 	 

	Executed by REVA Medical, Inc acting by the

following persons or, if the seal is affixed,

witnessed by the following persons:	 	 	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Signature of authorised officer

	 	 	 	Signature of authorised officer	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Name of authorised officer (print)

	 	 	 	Name of authorised officer (print)	 	 

13ex101.htm

Exhibit 10.1

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This Executive Employment Agreement (this "Agreement") dated as of October 19, 2010 (the "Effective Date") is made by and between YouBlast Global, Inc. (the "Company"), and Jeffrey D. Forster, an individual residing at 400 Alton Road, Apt. 1706, Miami Beach, Florida 33139 (the "Executive").

 

WITNESSETH:

 

WHEREAS, the Company desires to employ the Executive in accordance with the provisions of this Agreement; and

 

WHEREAS, the Executive desires and is willing to be employed by the Company in accordance with the provisions of this Agreement.

 

NOW THEREFORE, in consideration of the premises and mutual covenants contained herein, and intending to be legally bound, the parties agree as follows:

 

1.             Position and Term. On the terms and subject to the conditions set forth in this Agreement, the Company shall employ the Executive and the Executive shall serve the Company as President and Chief Executive Officer for a term commencing on the Effective Date and expiring on June 30, 2012 (the "Term").

 

2.             Duties. The Executive's duties shall be prescribed from time to time by the board of directors of the Company and shall include such responsibilities as are customary for employees performing functions similar to those of Executive.

 

3.             Compensation. During the Term, the Executive shall receive, for all services rendered to the Company pursuant to this Agreement, the following (the "Compensation"):

 

(a)             Accrued Salary and Benefits. Any accrued but unpaid salary and benefits due Executive shall be paid upon the execution of this Agreement or at such later date as may be mutually agreed upon in writing by the Executive and an authorized officer of the Company other than the Executive.

 

(b)             Base Salary. During the Term, the Executive shall be paid a base salary at the rate of Two Hundred Forty Thousand Dollars ($240,000) per annum (the "Base Salary"). The Base Salary shall be paid to the Executive in monthly installments of Twenty Thousand Dollars ($20,000); provided, however, that prior to the closing of the Minimum. Offering (as defined in that certain Investment Banking, Strategic Advisory and Consulting Agreement by and between the Company and John Thomas Financial, Inc. dated March 4, 2010, as amended (the "IBA")) the Executive shall be paid Ten Thousand Dollars ($10,000) per month and the remaining Ten Thousand Dollars ($10,000) per month shall accrue and will be paid to the Executive upon the initial closing of the Minimum Offering ("Initial Closing"). Following the Initial Closing, the Executive's Base Salary shall be payable in accordance with the Company's general salary payment policies as they may exist from time to time.

 

(c)             Benefits. The Executive and his dependents (as such term is or may be defined and used under any applicable employee benefit plan(s) of the Company) shall be included, to the extent eligible thereunder, in any and all employee benefits plans, programs and policies of the Company which currently provide benefits for other officers of the Company and their dependents.

 

  

1

  

 

(d)            Deductions. The Company shall deduct and withhold from the Executive's compensation all taxes, including social security, withholding and other such taxes, and any other applicable amounts required by law or any taxing authority.

 

(e)            Compensation from Escrow  due to Passage of  Time. Executive shall receive the number of shares of Common Stock of the Company, par value $.003 per share ("Common Stock") on the dates as set forth on Schedule B ("Escrow Shares Compensation") that are to be held in escrow (the "Escrow") with SORINROYERCOOPER LLC as escrow agent pursuant to an escrow agreement in form and substance reasonably satisfactory to the Company and the Executive until the release date set forth beside the number of shares listed on Schedule B, upon which such number of shares shall be released from Escrow and delivered to Executive. The parties acknowledge and agree that the Company currently expects to undertake a 1 for 3 reverse stock split recapitalization of its Common Stock. All references to numbers of shares of Common Stock hereunder are pre-split references, and therefore will be reduced in quantity pursuant to the reverse split, unless expressly stated herein to be "post-split" numbers.

 

(f)             Compensation due to Milestone Achievement. If the Company attains one of the Milestones (as defined in the IBA) prior to December 31, 2011, then the Executive shall be issued Five Hundred Thousand (500,000) post-split shares of Common Stock by the Company, and if the Company attains both Milestones, then the Executive shall be issued an additional Five Hundred Thousand (500,000) post-split shares of Common Stock (for a total of One Million (1,000,000) post-split shares of Common Stock) by the Company, in each case reasonably promptly after each such Milestone has been achieved, if at all.

 

4.             Absences. The Executive shall be entitled to paid vacation days per annum and such other time off due to illness or other incapacity, holiday, or personal time, as set forth in the Company's procedures and policies as they may exist from time to time.

 

5.             Expense Reimbursement. During the Term, the Company shall reimburse the Executive for all reasonable and documented lees, costs, expenses and disbursements incurred by him in the direct performance of his duties as President and Chief Executive Officer of the Company upon presentation by the Executive to the appropriate officer of the Company (which shall not be Executive) of reasonably detailed expense reports together with receipts documenting each expense incurred.

 

6.             Housing Allowance. Upon presenting documentation establishing the existence of Executive's New York City residence to the appropriate officer of the Company (which shall not be Executive), Executive shall receive a monthly housing allowance in the amount of Four Thousand Five Hundred Dollars ($4,500), to be paid concurrently with the payment of the Base Salary. Upon the Executive's termination, the Executive will not continue to receive a housing allowance pursuant to this Section 6.

 

  

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7.             Termination. 

 

(a)             For Cause. The Company may terminate the Executive's employment at any time for "Cause" with no notice or other requirement or precondition whatsoever. "Cause" means (i) conviction of, or the entry of a plea of guilty or nolo  contendre to, a charge of the commission of a felony or any other crime involving moral turpitude or the commission of any other act or omission involving misappropriation, embezzlement, dishonesty, disloyalty or fraud with respect to the Company or any of its affiliates or any of their respective customers, suppliers or any other material business relationship, (ii) conduct that brings the Company or any of its affiliates into public disgrace or disrepute or that causes the Company or any of its affiliates material economic harm, (iii) failure, other than by reason of disability or similar incapacity, to perform his duties and/or obligations as reasonably directed by the Board of Directors of the Company, (iv) any act or omission aiding or abetting a competitor, supplier or customer of the Company or any of its affiliates, (v) material breach of a fiduciary duty, gross negligence or willful misconduct with respect to the Company or any of its affiliates; and (vi) failure to comply in any material respect with any federal, state, or local laws (including, without limitation, the Securities Act of 1933 or the Securities Exchange Act of 1934, in each case as amended, restated, modified or supplemented from time to time), or any of the rules or regulations promulgated under any of the foregoing laws). In furtherance of the foregoing, any breach of any confidentiality obligation, non-competition or non-solicitation obligations, assignment of intellectual property obligation or any other similar non-curable breaches shall constitute "Cause" ipso facto. If terminated fbr Cause, the Executive shall immediately cease to be an employee of the Company, and shall not be entitled to any severance or other payments, compensation or benefits whatsoever from or on behalf of the Company, and all of the shares of Common Stock in Escrow pursuant to Section 3(e) above shall be returned to the treasury of the Company and shall be retired.

 

(b)             Without Cause. The Company may terminate the 'Executive's employment at any time without Cause by providing at least ninety (90) days prior written notice of such termination to the Executive. In the event that the Executive is terminated without Cause, (i) (A) during the period beginning on. the date hereof and ending on June 30, 2011, the Executive shall not receive any additional Base Salary from the Company after the date of termination or (B) during the period beginning on July 1, 2011 and ending on June 30, 2012 the Company will continue to pay the Executive his Base Salary from the date of termination until the date that is ninety (90) days thereafter, after which point the Executive shall not be entitled to any further cash compensation whatsoever from the Company; (ii) all remaining shares of Common Stock in Escrow shall be released on the termination date and delivered to the Executive; and (iii) the Executive will continue to be eligible to receive compensation on the terms and conditions set forth in Section 3(f) above; provided, that in order to be eligible to receive any of the items listed in clauses (i), (ii) and (iii) above, the Executive shall sign and deliver to an authorized officer of the Company (which shall not be the Executive) a release of the Company and its affiliated entities and persons in form and substance satisfactory to the Company. Additionally, the Executive shall be entitled to continue receiving all medical, dental and vision benefits that he was receiving immediately prior to his termination for a period of one (1) year after the date of his termination. The Executive shall not be entitled to any other severance or other benefits whatsoever upon the termination of his employment with the Company except as explicitly set forth in this Agreement.

 

(c)             Death or Disability, This Agreement will terminate automatically upon the death of the Executive, or if the Executive at any time suffers from a physical or mental disability rendering him unable to satisfy his obligations as President and Chief Executive Officer of the Company (as determined in good faith by the Board of Directors of the Company) for any period of more than thirty (30) consecutive days. In the event the Executive is terminated due to his death or disability, the Company shall pay to the estate of the Executive all accrued but unpaid Base Salary earned up to and including the date of the Executive's death, and neither the Executive's estate nor any other party shall be entitled. to receive any severance or other payments, compensation or benefits whatsoever from or on behalf of the Company (other than any death benefits to which the Executive was entitled pursuant to any Company benefits plan), and all of the shares of Common Stock in Escrow pursuant to Section 3(e) above shall be returned to the treasury of the Company and shall be retired.

 

  

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8.             Restrictive Covenants. The Executive acknowledges and agrees that he has and will have access to information of the Company and its affiliates that is confidential and proprietary to the Company and its affiliates ("Confidential Information") and that the following restrictive covenants are necessary to protect the interests and continued success of the Company. As used in this Agreement, Confidential Information includes, without limitation, all information of the Company or its affiliates (including information of a technical or commercial nature (such as research and development information, patents, trademarks and copyrights and applications thereto, formulas, codes, computer programs, software, methodologies, processes, innovations, software tools, know-how, knowledge, designs, drawings specifications, concepts, data, reports, techniques, documentation, pricing infbrmation, marketing plans, customer and prospect lists, trade secrets, financial information, salaries, business affairs, suppliers, profits, markets, sales strategies, forecasts and personnel information), whether written or oral) relating to the business and affairs of the Company or its affiliates, or their respective customers and/or other business associates which has not been made available to the general public by the Company (or on behalf of the Company by an authorized officer of the Company).

 

(a)             Confidentiality. The Executive shall not disclose any Confidential Information to any person or entity at any time during or after the expiration or earlier termination of this Agreement, except directly pursuant to the rightful performance of the Executive's duties hereunder.

 

(b)             Non-Compete. The Executive agrees that during the Term and for an additional two (2) years after the termination or expiration of this Agreement, the Executive will not, directly or indirectly, whether or not for compensation and whether or not as an employee, independent contractors, consultant, advisor or otherwise, be engaged in or have any financial interest in any business competing with or which may compete with the business or business lines of the Company (or with the business of any affiliate of the Company conducting substantially similar activities) (collectively, "YouBlast") within any state, region or locality in which YouBlast is directly or indirectly conducting its business or marketing its products from time to time. For purposes of this Agreement, the Executive will be deemed to be engaged in or to have a financial interest in such a business or business line if he (or any immediate family member, which for purposes of this Agreement shall mean the Executive's spouse and children) is an officer, director, partner, member, shareholder, consultant, advisor, agent or representative of any person, partnership, corporation, trust or other entity which is engaged in such a business or business line, or if he (or any immediate family member) directly or indirectly otherwise performs services for such an entity, or if he or any immediate family member owns any securities issued by any such entity; provided, however, that the foregoing will not prohibit the Executive (or any immediate family member) from individually owning, :for the purpose of passive investment, less than 5% of any class of securities of any publicly held corporation,

 

(c)             Non-Solicitation/Non-Interference. The Executive agrees that during the Term and for an additional two (2) years after the termination or expiration of this Agreement, the Executive shall not, directly or indirectly, acting as an employee, owner, shareholder, partner, joint venturer, officer, director, agent, salesperson, consultant, advisor, investor or principal of any corporation or other business entity: (i) solicit, advise, provide or sell any services or products of the same or similar nature to services or products of YouBlast, to any present or prospective client of YouBlast; (ii) solicit, request or otherwise attempt to induce or influence, directly or indirectly, any present or prospective client, distributor or supplier of YouBlast, or other persons sharing a business relationship with YouBlast, to cancel, limit or postpone their business with. YouBlast, or otherwise take action which might be to the disadvantage of YouBlast; or (iii) hire or solicit for employment, directly or indirectly, or induce or actively attempt to influence, any employee, officer, director, agent, contractor or other business associate of YouBlast or any of its affiliates to terminate his or her employment or discontinue such person's consultant, contractor or other business association with YouBlast or its affiliates.

 

  

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(d)            If the Executive violates any of the restrictive covenants contained in this Section 8, the applicable restrictive period shall be increased by the period of time from the commencement of any such violation until the time such violation shall be cured by the Executive to the satisfaction of the Company (determined in its sole discretion), and the Company may withhold any and all payments, benefits and compensation whatsoever otherwise due and owing to the Executive under this Agreement.

 

(e)             In the event that either any scope or restrictive period set forth in this Section 8 is deemed to be unreasonably restrictive or unenforceable in any court proceeding, the scope and/or restrictive period shall be reduced by such court or the parties hereto, as permitted, to equal the maximum scope and/or restrictive period allowable under the circumstances.

 

(f)             The Executive acknowledges and agrees that in the event of a breach or threatened breach of the provisions of this Section 8 by the Executive, the Company may stiffer irreparable harm and, therefore, the Company shall be entitled to obtain immediate injunctive relief restraining the Executive from such breach or threatened breach of the restrictive covenants contained in this Section 8. Nothing herein shall be construed as prohibiting the Company front pursuing any other remedies available to it for such breach or threatened breach, including the recovery of damages from the Executive.

 

9.             Inventions, Disclosures.

 

(a)             Any and all writings, inventions, intellectual property, improvements, processes, procedures and/or techniques which the Executive may make, conceive, discover or develop, during the Term ("Work Product") shall be deemed works made for hire under the applicable copyright laws. The Executive hereby assigns all of the Executive's rights, title or interest in the Work Product and in all related patents, copyrights, trademarks, trade secrets, rights of priority and other proprietary rights to the Company. The Executive shall make full disclosure to the Company of all Work Product. At the Company's request and expense, during and after the period of the Executive's employment with the Company, the Executive will assist and cooperate with the Company in all respects and will execute all documents, and, subject to the Executive's reasonable availability, give testimony and take all further acts requested by the Company to obtain, maintain, perfect and enforce for the Company patent, copyright, trademark, trade secret or other legal protection for the Work Product. The Executive shall attach hereto as Schedule A, a list of all Work Product as of the date of this Agreement which belong to Executive and which the Executive is not assigning to the Company (the "Prior Innovations"), or, if no such list is attached, the Executive represents that there are no Prior Innovations.

 

(b)             The Executive shall write and prepare all specifications and procedures regarding Work Product and otherwise aid and assist the Company so that the Company can prepare and present applications for copyright or trademark or letters patent therefor and can secure such copyright, trademark or letters patent wherever possible, as well as reissues, renewals, and extensions thereof, and can obtain the record title to such copyright, trademark or patents so that the Company shall be the sole and absolute owner thereof in all countries in which it may desire to have copyright, trademark or patent protection. The Executive shall not be entitled to any additional or special compensation or reimbursement regarding any and all Work Product. The Executive hereby appoints any other duly authorized officer of the Company as his attorney in fact for the preparation and signing of any such documentation described in this Section 9.

 

  

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10.            Arbitration. Any controversy arising out of or relating to this Agreement shall he settled by arbitration conducted in New York, New York in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect. The award. rendered by the arbitrator(s) shall be final and judgment upon the award rendered by the arbitrator(s) may be entered upon it in any court having jurisdiction thereof. The arbitrator(s) shall possess the powers to issue mandatory orders and restraining orders in connection with such arbitration. The expenses of the arbitration shall be borne by the losing party unless otherwise allocated by the arbitrator(s). THE EXECUTIVE, ACKNOWLEDGES THAT HI HAS HAD THE OPPORTUNITY TO CONSULT WITH AN ATTORNEY PRIOR TO SIGNING THIS AGREEMENT.

 

11.            No Conflicts. The Executive represents and warrants to the Company that the execution, delivery and performance by the Executive of this Agreement do not conflict with or result in a violation or breach of, or constitute (with or without the giving of notice or the lapse of time or both) a. default under any contract, agreement or understanding, whether oral or written, to which the Executive is a party or by which the Executive is bound and the there are no restrictions, covenants, agreements or limitations on Executive's right or ability to enter into and perform the terms of this Agreement, and Executive agrees to indemnify and save the Company harmless from any liability, cost or expense, including attorney's fees, based upon or arising out of any breach of this Section 11.

 

12.            Waiver. The waiver by either party of any breach by the other party of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach by such party. No person acting other than pursuant to a resolution of the Company shall have authority on behalf of the Company to agree to amend, modify, repeal, waive or extend any provision of this Agreement.

 

13.            Assignment. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company and the Company shall he obligated to require any successor to expressly assume its obligations hereunder. This Agreement shall inure to the benefit of and be enforceable by the Executive or his legal representatives, executors, administrators and heirs. The Executive may not assign any of the Executive's duties, responsibilities, obligations or positions hereunder to any person and any such purported assignment by the Executive shall be null and void and of no force or effect whatsoever.

 

14.            Notices. All notices, requests, demands and other communications which are required or may be given pursuant to this Agreement shall be in writing and shall be deemed to have been duly given when received if personally delivered; upon confirmation of transmission if sent by telceopy, electronic or digital transmission; the day after it is sent, if sent for next day delivery to a domestic address by recognized overnight delivery service (e.g., Federal Express); and upon receipt, if sent by certified or registered. mail, return receipt requested. In each case notice shall be sent to:

 

If to Executive, addressed to:

 

Jeffrey .D. Forster

400 Alton Road

Apt. 1706

Miami Beach, Florida 33139 

Facsimile:

 

If to Company, addressed to:

 

YouBlast Global, Inc.

81 Greene Street, 4th Floor

New York, New York 10012 

Attention: Chairman of the Board 

Facsimile:

or to such other place and with such other copies as either party may designate as to itself by written notice to the others.

 

  

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15.            Construction of Agreement.

 

(a)             Governing Law. This Agreement shall be governed by and its provisions construed and enforced in accordance with the internal laws of New York without reference to its principles regarding conflicts of law.

 

(b)             Severabiliiy. In the event that any one or more of the provisions of this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality or enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

(c)             Headings. The descriptive headings of the several paragraphs of this Agreement are inserted for convenience of reference only and shall not constitute a part of this Agreement.

 

16.            Entire Agreement. This Agreement contains the entire agreement of the parties concerning the Executive's employment and all promises, representations, understandings, arrangements and prior agreements on such subject are merged herein and superseded hereby.

 

17.            Conditions Precedent. Notwithstanding anything to the contrary herein, this Agreement shall not become effective unless and until: (i) the Executive completes a D&O Questionnaire in the form provided by the Company, (ii) the Executive provides the Company with all information necessary to complete a background check and the results such background check will be reasonably satisfactory to the Company determined in good faith by the Company and (iii) the Executive executes a Form-3 to be filed with the Securities and Exchange Commission detailing the Executive's equity ownership in the Company.

 

[Signatures appear on next page]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer and the Executive has set his hand, all as of the day and year first above . written.

 

	 	YOUBLAST GLOBAL, INC. 	 
	 	 	 	 
	
 

	
By: 

	/s/ Philmore Anderson IV	 
	 	Name: 	Philmore Anderson IV	 
	 	Title: 	Executive Chairman	 
	 	 	 	 

 

	 	
EXECUTIVE

	 
	 	 	 	 
	
 

	 	/s/ Jeffrey D. Forster	 
	 	 	Jeffrey D. Forster	 
	 	 	 	 
	 	 	 	 

 

 

 

 

 

 

 

 

 

  

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Schedule A.

 

Prior Innovations

 

None.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

	/s/ Jeffrey D. Forster
	Executive's Signature

 

 

 

 

  

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Schedule B

 

Escrow Shares Compensation

 

	
Number of Shares

	
Release Date

	
666,668

	
October 19, 2010

	
166,667

	
November 1, 2010

	
166,667

	
December 1, 2010

	
166,667

	
January 1, 2011

	
166,667

	
February 1, 2011

	
166,667

	
March 1, 2011

	
166,667

	
April 1, 2011

	
166,667

	
May 1, 2011

	
166,663

	
June 1, 2011

 

 

 

 

 

 

 

 

 

10

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