Document:

Exhibit 10.9

THE CLOROX COMPANY
2005
STOCK INCENTIVE PLAN
PERFORMANCE
SHARE AWARD AGREEMENT 

NOTICE OF PERFORMANCE
SHARE GRANT
The Clorox
Company, a Delaware company (the “Company”), grants to the Grantee named below,
in accordance with the terms of The Clorox Company 2005 Stock Incentive Plan
(the “Plan”) and this performance share award agreement (the “Agreement”), the
following number of Performance Shares on the terms set forth below:

	GRANTEE:	   	
      (refer to UBS Financial
      Services Inc. (“UBS”) account for
      details)

	TARGET AWARD:		
      (refer to UBS account
      for details)

	PERFORMANCE PERIOD:		
      July 1, 2014 through
      June 30, 2017

	DATE OF GRANT:		
      September 17, 2014
      

		 	
	SETTLEMENT DATE:		
      Within 75 days following
      the last day of the Performance Period, provided the Grantee has remained
      in the employment or service of the Company or its Subsidiaries through
      such date (except for a termination of employment or service due to death,
      Disability or Retirement, as provided
below)

AGREEMENT

	1.	Grant
      of Performance Shares. The
      Company hereby grants to the Grantee the Target Award set forth above,
      payment of which is dependent upon the achievement of certain performance
      goals more fully described in Section 3 of this Agreement. This Award is
      subject to the terms, definitions and provisions of the Plan and this
      Agreement. All terms, provisions, and conditions applicable to the
      Performance Shares set forth in the Plan and not set forth herein are
      incorporated by reference. To the extent any provision hereof is
      inconsistent with a provision of the Plan, the provisions of the Plan will
      govern. All capitalized terms that are used in this Agreement and not
      otherwise defined herein shall have the meanings ascribed to them in the
      Plan.
	          	
	2.	Nature
      and Settlement of Award.
      The Performance Shares awarded pursuant to this Agreement represent the
      opportunity to receive Shares of the Company and Dividend Equivalents on
      such Shares (as described in Section 4 below). The Company shall issue to
      the Participant one Share for each vested Performance Share (plus any
      Dividend Equivalents accrued with respect to such vested Performance
      Shares), rounded down to the nearest whole share, less any Shares withheld
      in accordance with the provisions of Section 7 of this
  Agreement. Settlement
      shall occur on a date chosen by the Committee, which date shall be within
      seventy-five (75) days following the last day of the Performance Period,
      or any deferred settlement date established pursuant to Section 6 of this
      Agreement, whichever is later (the “Settlement Date”), and except as
      specifically provided in Section 5 of this Agreement, provided the Grantee
      has remained in the employment or service of the Company or its
      Subsidiaries through the Settlement Date. Although vested within the
      meaning of Section 83 of the Internal Revenue Code since no substantial
      risk of forfeiture exists at the Settlement Date, the Performance Shares
      (and any associated Dividend Equivalents) will not be earned until the
      Grantee has fulfilled all of the conditions precedent set forth in this
      Agreement, including, but not limited to, the obligations set forth in
      Sections 9(b), 9(c), 9(d), 9(e) and Section 10, and the Grantee shall have
      no right to retain the Shares or the value thereof upon vesting or
      settlement of the Performance Shares until all such conditions precedent
      have been satisfied.
	 
	3.	Determination of Number of Performance Shares
      Vested.
	 
		The number
      of Performance Shares vested, if any, for the Performance Period shall be
      determined in accordance with the following
formula:

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# of Performance Shares =
Payout Percentage x Target Award

	          	
      The “Payout
      Percentage” is based on cumulative economic profit (“EP”), calculated as
      described in the paragraph below, at the end of the Performance Period,
      determined in accordance with the following
table:

	FY15 – FY17	Payout
		0%
		50%
		75%
		100%
		125%
		150%
	Performance Period is
      FY15-FY17 Interim percentages to be
interpolated

		
      Cumulative EP will be
      the sum of annual EP results over the Performance Period. Annual EP is
      defined as Earnings Before Interest & Taxes (“EBIT”), adjusted for
      non-cash restructuring charges, times one minus the tax rate, less capital
      charge. 

		 
		
      Notwithstanding the
      above, the EP levels in the preceding table shall be adjusted, fairly and
      appropriately, in accordance with the Plan and, as provided in this
      Agreement, to reflect accurately the direct and measurable effect of the
      impact of each of the following events not otherwise reflected in the
      determination of the initial EP levels (each, an “Event”) including,
      without limitation, the financial statement impact on the Company on
      account of the occurrence or potential occurrence of an Event: (1) the
      acquisition or divestiture of a business, (2) a Change in Control, (3) U.S. Federal changes in tax statutes or the addition or deletion of taxes to
      which the Company or any Affiliated Company is subject, (4) force majeure
      (including events known as “Acts of God”), (5) the adoption of new or
      revised accounting pronouncements or changes to application of accounting
      pronouncements, and (6) any extraordinary, unusual or non-recurring item
      not previously listed. Notwithstanding the
      foregoing, an event listed in the preceding sentence shall not qualify as
      an Event, and therefore no adjustment shall be made to the EP levels,
      unless the impact of the occurrence or potential occurrence of such an
      event listed in the preceding sentence exceeds $2 million in EP. The
      purpose of any adjustments on account of the occurrence of an Event is to
      keep the probability of achieving the EP levels the same as if the Event
      triggering such adjustment had either not occurred or had not resulted in
      any financial statement impact. The determination of any adjustments shall
      be based on the Company’s accounting as set forth in its books and records
      (including business projections) and/or in the annual budget and/or long
      range plan of the Company pursuant to which the EP levels were originally
      established. The amount of any such adjustment shall be approved by the
      Committee in its good faith determination in accordance with the
      provisions of this paragraph. To the extent applicable, the Committee
      shall condition the determination of the number of Performance Shares
      vested under this Section 3 upon the satisfaction of the adjusted EP
      levels. All Performance Shares that are not vested for the Performance
      Period shall be forfeited as of the last day of the Performance Period.

		 
	4.	Dividend
      Equivalent Rights. No
      Dividend Equivalents shall be paid to the Grantee prior to the settlement
      of the award. Rather, such Dividend Equivalent payments will accrue and be
      notionally credited to the Grantee’s Performance Share account and paid
      out at the Payout Percentage in the form of additional Shares (the
      “Dividend Equivalent Shares”) upon settlement of the award, as described
      in Section 2 above.
	 
	5.	Termination of Continuous Service. Except as otherwise provided below, if the
      Grantee’s employment or service with the Company and its Subsidiaries is
      terminated for any reason prior to the Settlement Date, all Performance
      Shares and Dividend Equivalents subject to this Agreement shall be
      immediately forfeited.
	          	          	
		a.	Termination due to
      Death or Disability. If the
      Grantee’s termination of employment or service is due to death or
      Disability, all Performance Shares and Dividend Equivalents shall
      immediately vest and will be paid upon completion of the Performance
      Period based on the level of performance achieved as of the end of such
      Performance Period.

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		b.	Termination due to
      Retirement. If the
      Grantee’s termination of employment or service is due to Retirement and is
      more than twelve (12) months from the Date of Grant set forth in this
      Agreement, the Performance Shares shall vest on a pro rata monthly basis,
      including full credit for partial months elapsed, and will be paid upon
      completion of the Performance Period based on the level of performance
      achieved as of the end of such Performance Period; provided, however, that
      this provision shall not apply in the event the Grantee’s employment or
      service is terminated for Cause. The amount of the vested Award may be
      computed under the following formula: Target Award times (number of full
      months elapsed in Performance Period divided by number of full months in
      Performance Period) times percent performance level achieved as of the end
      of the Performance Period. Dividend Equivalents accrued through the
      Grantee’s date of termination due to Retirement shall be paid at the same
      time as the settlement of the vested Performance Shares.
	          	          	
		c.	Definition of
      “Retirement.” For purposes
      of this Agreement, the term “Retirement” shall mean termination of
      employment or service as an Employee after (1) twenty (20) or more years
      of “vesting service,” which solely for purposes of this Agreement, shall
      be calculated under Article III of The Clorox Company 401(k) Plan (the
      “401(k) Plan”) entitled “Service” along with any other relevant provisions
      of the 401(k) Plan necessary or desirable to give full effect thereto, or
      any successor provisions, regardless of the status of the Grantee with
      respect to the 401(k) Plan (“Vesting Service”), or (2) attaining age
      fifty-five with ten (10) or more years of Vesting Service.
	 
		d.	Definition of
      “Disability.” For purposes
      of this Agreement, the Grantee’s employment shall be deemed to have
      terminated due to the Grantee’s Disability if the Grantee is entitled to
      long-term disability benefits under the Company’s long-term disability
      plan or policy, as in effect on the date of termination of the Grantee’s
      employment.
	 
	6.	Election
      to Defer Settlement. Prior
      to the commencement of the last year of the Performance Period, the
      Grantee may elect to defer the settlement of the Performance Shares from
      the last day of the Performance Period until a date at least two years
      following such date, or until the Grantee’s later termination of
      employment or service. If the Grantee makes such an election, it will
      become irrevocable on the date of such election. If the Grantee makes such
      an election, any Dividend Equivalents awarded with respect to such
      deferred Performance Shares shall also be deferred under the same terms.
      If the Grantee makes such an election, but a transaction occurs that
      subjects the Grantee’s Performance Shares to Section 19 of the Plan prior
      to the settlement date, the Grantee’s deferral election will terminate and
      the Grantee’s Performance Shares and Dividend Equivalents will be settled
      as of the date of that transaction. The Company may terminate any deferral
      hereunder if a change in law requires such termination.
	 
	7.	Taxes. Pursuant to
      Section 16 of the Plan, the Committee shall have the power and the right
      to deduct or withhold, or require the Grantee to remit to the Company, an
      amount sufficient to satisfy any applicable tax withholding requirements
      applicable to this Award. The Committee may condition the issuance of
      Shares upon the Grantee’s satisfaction of such withholding obligations.
      The Grantee may elect to satisfy all or part of such withholding
      requirement by tendering previously-owned Shares or by having the Company
      withhold Shares having a Fair Market Value equal to the minimum statutory
      withholding rate that could be imposed on the transaction (or such other
      rate that will not result in a negative accounting impact) or in such
      other manner as is acceptable to the Company. Such election shall be
      irrevocable, made in writing, signed by the Grantee, and shall be subject
      to any restriction or limitations that the Committee, in its sole
      discretion, deems appropriate.
	 
	8.	Transferability of Performance Shares. Performance Shares shall not be
      transferable by the Grantee other than by will or by the laws of descent
      or distribution. For avoidance of doubt, Shares issued to the Grantee in
      settlement of Performance Shares pursuant to Section 2 of this Agreement
      shall not be subject to any of the foregoing transferability
      restrictions.
	 
	9.	Protection of Trade Secrets and Limitations on
    Retention.

		 	
		a.	Definitions.
	          	          	          	
			i.	“Affiliated
      Company” means any
      organization controlling, controlled by or under common control with the
      Company.

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			ii.	“Confidential
      Information” means the
      Company’s technical or business or personnel information not readily
      available to the public or generally known in the trade, including
      inventions, developments, trade secrets and other confidential
      information, knowledge, data and know-how of the Company or any Affiliated
      Company, whether or not they originated with the Grantee, or information
      which the Company or any Affiliated Company received from third parties
      under an obligation of confidentiality.
	          	          	          	
			iii.	“Conflicting
      Product” means any product,
      process, machine, or service of any person or organization, other than the
      Company or any Affiliated Company, in existence or under development that
      (1) resembles or competes with a product, process, machine, or service
      upon or with which the Grantee shall have worked during the two years
      prior to the Grantee’s termination of employment with the Company or any
      Affiliated Company or (2) with respect to which during that period of time
      the Grantee, as a result of his/her job performance and duties, shall have
      acquired knowledge of Confidential Information, and whose use or
      marketability could be enhanced by application to it of Confidential
      Information. For purposes of this section, it shall be conclusively
      presumed that the Grantee has knowledge of information to which s/he has
      been directly exposed through actual receipt or review of memorandum or
      documents containing such information or through actual attendance at
      meetings at which such information was discussed or
disclosed.
		 
			iv.	“Conflicting
      Organization” means any
      person or organization that is engaged in or about to become engaged in
      research on or development, production, marketing or selling of a
      Conflicting Product.
				 
		b.	Right to
      Retain Shares Contingent on Protection of Confidential
      Information. In partial
      consideration for the award of these Performance Shares, the Grantee
      agrees that at all times, both during and after the term of the Grantee’s
      employment with the Company or any Affiliated Company, to hold in the
      strictest confidence, and not to use (except for the benefit of the
      Company at the Company’s direction) or disclose (except for the benefit of
      the Company at the Company’s direction), regardless of when disclosed to
      the Grantee, any and all Confidential Information of the Company or any
      Affiliated Company. The Grantee understands that for purposes of this
      Section 9(b), Confidential Information further includes, but is not
      limited to, information pertaining to any aspect of the business of the
      Company or any Affiliated Company which is either information not known
      (or known as a result of a wrongful act of the Grantee or of others who
      were under confidentiality obligations as to the item or items involved)
      by actual or potential competitors of the Company or other third parties
      not under confidentiality obligations to the Company. If, prior to the
      expiration of the Performance Period or at any time within one (1) year
      after the Settlement Date, the Grantee discloses or uses, or threatens to
      disclose or use, any Confidential Information other than in the course of
      performing authorized services for the Company (or any Affiliated
      Company), the Performance Shares, whether vested or not, will be
      immediately forfeited and cancelled, and the Grantee shall immediately
      return to the Company the Shares or the pre-tax income derived from any
      disposition of the Shares.
			 
		c.	No
      Interference with Customers or Suppliers. In partial consideration for the award of these Performance
      Shares, in order to forestall the disclosure or use of Confidential
      Information as well as to deter the Grantee’s intentional interference
      with the contractual relations of the Company or any Affiliated Company,
      the Grantee’s intentional interference with prospective economic advantage
      of the Company or any Affiliated Company and to promote fair competition,
      the Grantee agrees that the Grantee’s right to the Shares upon settlement
      of the Performance Shares is contingent upon the Grantee refraining, for a
      period of one (1) year after the date of settlement of the Performance
      Shares, for himself/herself or any third party, directly or indirectly,
      from using Confidential Information to (1) divert or attempt to divert
      from the Company (or any Affiliated Company) any business of any kind in
      which it is engaged, or (2) intentionally solicit its customers with which
      it has a contractual relationship as to Conflicting Products, or to
      interfere with the contractual relationship with any of its suppliers or
      customers (collectively, “Interfere”). If, during the term of the
      Performance Period or at any time within one (1) year after the Settlement
      Date, the Grantee breaches his/her obligation not to Interfere, the
      Grantee’s right to the Shares upon settlement of the Performance Shares
      shall not have been earned and the Performance Shares, whether vested or
      not, will be immediately cancelled, and the Grantee shall immediately
      return to the Company the Shares or the pre-tax income derived from any
      disposition of the Shares. For avoidance of doubt, the term “Interfere”
      shall not include any advertisement of Conflicting Products through the
      use of media intended to reach a broad public audience (such as
      television, cable or radio broadcasts, or newspapers or magazines) or the
      broad distribution of coupons through the use of direct mail or through
      independent retail outlets. THE GRANTEE UNDERSTANDS THAT THIS PARAGRAPH
      IS NOT INTENDED TO AND DOES NOT PROHIBIT THE CONDUCT DESCRIBED, BUT
      PROVIDES FOR THE CANCELLATION OF THE PERFORMANCE SHARES AND A RETURN TO
      THE COMPANY OF THE SHARES OR THE GROSS TAXABLE PROCEEDS OF THE SHARES IF
      THE GRANTEE SHOULD CHOOSE TO VIOLATE THIS “NO INTERFERENCE WITH CUSTOMERS
      OR SUPPLIERS” PROVISION DURING THE TERM OF THE PERFORMANCE PERIOD OR
      WITHIN ONE (1) YEAR AFTER THE SETTLEMENT
DATE.

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		d.	No Solicitation of
      Employees. In partial
      consideration for the award of these Performance Shares, in order to
      forestall the disclosure or use of Confidential Information, as well as to
      deter the Grantee’s intentional interference with the contractual
      relations of the Company or any Affiliated Company, the Grantee’s
      intentional interference with prospective economic advantage of the
      Company or any Affiliated Company, and to promote fair competition, the
      Grantee agrees that the Grantee’s right to the Shares upon settlement of
      the Performance Shares is contingent upon the Grantee refraining, for a
      period of one (1) year after the date of settlement of the Performance
      Shares, for himself/herself or any third party, directly or indirectly,
      from soliciting for employment any person employed by the Company, or by
      any Affiliated Company, during the period of the solicited person’s
      employment and for a period of one (1) year after the termination of the
      solicited person’s employment with the Company or any Affiliated Company
      (collectively “Solicit”). If, during the term of the Performance Period or at any time within
      one (1) year after the Settlement Date, the Grantee breaches his/her
      obligation not to Solicit, the Grantee’s right to the Shares upon
      settlement of the Performance Shares shall not have been earned and the
      Performance Shares, whether vested or not, will be immediately cancelled,
      and the Grantee shall immediately return to the Company the Shares or the
      pre-tax income derived from any disposition of the Shares. THE GRANTEE UNDERSTANDS THAT
      THIS PARAGRAPH IS NOT INTENDED TO AND DOES NOT PROHIBIT THE CONDUCT
      DESCRIBED, BUT PROVIDES FOR THE CANCELLATION OF THE PERFORMANCE SHARES AND
      A RETURN TO THE COMPANY OF THE SHARES OR THE GROSS TAXABLE PROCEEDS OF THE
      SHARES IF THE GRANTEE SHOULD CHOOSE TO VIOLATE THIS NON-SOLICITATION OF
      EMPLOYEES PROVISION DURING THE TERM OF THE PERFORMANCE PERIOD OR WITHIN
      ONE (1) YEAR AFTER THE SETTLEMENT DATE.
	          	          	
		e.	Injunctive and
      Other Available Relief. By
      acceptance of these Performance Shares, the Grantee acknowledges that, if
      the Grantee were to breach or threaten to breach his/her obligation
      hereunder not to Interfere or Solicit or not to disclose or use any
      Confidential Information other than in the course of performing authorized
      services for the Company (or any Affiliated Company), the harm caused to
      the Company by such breach or threatened breach would be, by its nature,
      irreparable because, among other things, damages would be significant and
      the monetary harm that would ensue would not be able to be readily proven,
      and that the Company would be entitled to injunctive and other appropriate
      relief to prevent threatened or continued breach and to such other
      remedies as may be available at law or in equity. To the extent not
      prohibited by law, any cancellation of the Performance Shares pursuant to
      any of Sections 9(b) through 9(d) above shall not restrict, abridge or
      otherwise limit in any fashion the types and scope of injunctive and other
      available relief to the Company. Notwithstanding any provision of this
      Agreement to the contrary, nothing under this Agreement shall limit,
      abridge, modify or otherwise restrict the Company (or any Affiliated
      Company) from pursuing any or all legal, equitable or other appropriate
      remedies to which the Company may be entitled under any other agreement
      with the Grantee, any other plan, program, policy or arrangement of the
      Company (or any Affiliated Company) under which the Grantee is covered or
      participates, or any applicable law, all to the fullest extent not
      prohibited under applicable law.

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	10.	Right to Retain
      Shares Contingent on Continuing Non-Conflicting Employment. In partial consideration for the award of
      these Performance Shares, in order to forestall the disclosure or use of
      Confidential Information, as well as to deter the Grantee’s intentional
      interference with the contractual relations of the Company or any
      Affiliated Company, the Grantee’s intentional interference with
      prospective economic advantage of the Company or any Affiliated Company,
      and to promote fair competition, the Grantee agrees that the Grantee’s
      right to the Shares upon settlement of the Performance Shares is
      contingent upon the Grantee refraining, during the term of the Performance
      Period and for a period of one (1) year after the Settlement Date, from
      rendering services, directly or indirectly, as director, officer,
      employee, agent, consultant or otherwise, to any Conflicting Organization
      except a Conflicting Organization whose business is diversified and that,
      as to that part of its business to which the Grantee renders services, is
      not a Conflicting Organization, provided that the Company shall receive
      separate written assurances satisfactory to the Company from the Grantee
      and the Conflicting Organization that the Grantee shall not render
      services during such period with respect to a Conflicting Product.
      If, prior to the expiration of
      the Performance Period or at any time within one (1) year after the
      Settlement Date, the Grantee shall render services to any Conflicting
      Organization other than as expressly permitted herein, the Grantee’s right
      to the Shares upon settlement of the Performance Shares shall not have
      been earned and the Performance Shares, whether vested or not, will be
      immediately cancelled, and the Grantee shall immediately return to the
      Company the Shares or the pre-tax income derived from any disposition of
      the Shares. THE GRANTEE
      UNDERSTANDS THAT THIS PARAGRAPH IS NOT INTENDED TO AND DOES NOT PROHIBIT
      THE GRANTEE FROM RENDERING SERVICES TO A CONFLICTING ORGANIZATION, BUT
      PROVIDES FOR THE CANCELLATION OF THE PERFORMANCE SHARES AND A RETURN TO
      THE COMPANY OF THE SHARES OR THE GROSS TAXABLE PROCEEDS OF THE SHARES IF
      THE GRANTEE SHOULD CHOOSE TO RENDER SUCH SERVICES DURING THE TERM OF THE
      PERFORMANCE PERIOD OR WITHIN ONE (1) YEAR AFTER THE SETTLEMENT
      DATE.
	 
	11.	Repayment
      Obligation. In the event
      that (1) the Company issues a restatement of financial results to correct
      a material error and (2) the Committee determines, in good faith, that the
      Grantee’s fraud or willful misconduct was a significant contributing
      factor to the need to issue such restatement and (3) some or all of the
      Performance Shares that were granted and/or vested prior to such
      restatement would not have been granted and/or vested, as applicable,
      based upon the restated financial results, the Grantee shall immediately
      return to the Company the Performance Shares or any Shares or the pre-tax
      income derived from any disposition of the Shares previously received in
      settlement of the Performance Shares that would not have been granted
      and/or vested based upon the restated financial results (the “Repayment
      Obligation”). The Company shall be able to enforce the Repayment
      Obligation by all legal means available, including, without limitation, by
      withholding such amount from other sums owed by the Company to the
      Grantee.
	 
	12.	Miscellaneous
      Provisions.
	          	          	
		a.	Rights as a Stockholder. Neither the Grantee nor the Grantee’s
      transferee or representative shall have any rights as a stockholder with
      respect to any Shares subject to this Award until the Performance Shares
      have been settled and Share certificates have been issued to the Grantee,
      transferee or representative, as the case may be.
	 
		b.	Choice of Law, Exclusive Jurisdiction and
      Venue. This Agreement shall
      be governed by, and construed in accordance with, the laws of the State of
      Delaware, excluding any conflicts or choice of law rule or principle that
      might otherwise refer construction or interpretation of this Agreement to
      the substantive law of another jurisdiction. The courts of the State of Delaware shall
      have exclusive jurisdiction over any disputes or other proceedings
      relating to this Agreement, and venue shall reside with the courts in New
      Castle County, Delaware, including if jurisdiction shall so permit, the
      U.S. District Court for the District of Delaware. Accordingly, the Grantee agrees that any
      claim of any type relating to this Agreement must be brought and
      maintained in the appropriate court located in New Castle County,
      Delaware, including if jurisdiction will so permit, in the U.S. District
      Court for the State of Delaware. The Grantee hereby consents to the
      jurisdiction over the Grantee of any such courts and waives all objections
      based on venue or inconvenient forum.

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		c.	Modification or Amendment. This Agreement may be modified or amended
      by the Board or the Committee at any time; provided, however, no
      modification or amendment to this Agreement shall be made which would
      materially and adversely affect the rights of the Grantee, without such
      Grantee’s written consent.
			 
		d.	Severability. In the
      event any provision of this Agreement shall be held illegal or invalid for
      any reason, the illegality or invalidity shall not affect the remaining
      provisions of this Agreement, and this Agreement shall be construed and
      enforced to reflect the intent of the parties to the fullest extent not
      prohibited by law, and in the event that such provision is not able to be
      so construed and enforced, then this Agreement shall be construed and
      enforced as if such illegal or invalid provision had not been included. In
      amplification of the preceding sentence, in the event that the time period
      or scope of any provision is declared by a court or arbitrator of
      competent jurisdiction to exceed the maximum time period or scope that
      such court or arbitrator deems enforceable, then such court or arbitrator
      shall have the power to reduce the time period or scope to the maximum
      time period or scope permitted by law.
	          	          	
		e.	References to
      Plan. All references to the
      Plan shall be deemed references to the Plan as may be
amended.
		 
		f.	Headings. The
      captions used in this Agreement are inserted for convenience and shall not
      be deemed a part of this Agreement for construction or
      interpretation.
		 
		g.	Interpretation. Any
      dispute regarding the interpretation of this Agreement shall be submitted
      by the Grantee or by the Company forthwith to the Board or the Committee,
      which shall review such dispute at its next regular meeting. The
      resolution of such dispute by the Board or the Committee shall be final
      and binding on all persons. It is the intention of the Company and the
      Grantee to make the promises contained in this Agreement reasonable and
      binding only to the extent that it may be lawfully done under existing
      applicable laws. This Agreement and the Plan constitute the entire and
      exclusive agreement between the Grantee and the Company, and it supersedes
      all prior agreements or understandings, whether written or oral, with
      respect to the grant of Performance Shares set forth in this
      Agreement.
		 
		h.	Section 409A
      Compliance. To the extent
      applicable, it is intended that the Plan and this Agreement comply with
      the requirements of Section 409A of the Internal Revenue Code of 1986, as
      amended (the “Code”) and any related regulations or other guidance
      promulgated with respect to such Section by the U.S. Department of the
      Treasury or the Internal Revenue Service (“Section 409A”). Any provision
      of the Plan or this Agreement that would cause this Award to fail to
      satisfy Section 409A shall have no force or effect until amended to comply
      with Section 409A, which amendment may be retroactive to the extent
      permitted by Section 409A.
		 
			Notwithstanding any
      provision of the Plan to the contrary, if the Grantee is a “specified
      employee” (as defined in Section 1.409A-1(i) of the Treasury Department
      Regulations) at the time of the Grantee’s “separation from service” (as
      defined in Section 1.409A-1(h) of the Treasury Department Regulations),
      and a payment to the Grantee under this Agreement is subject to Section
      409A and is being made to the Grantee on account of the Grantee’s
      separation from service, then to the extent not paid on or before March 15
      of the calendar year following the calendar year in which the separation
      from service occurred, such payment shall be delayed until the earlier of
      the date which is six (6) months after the date of the Grantee’s
      separation from service or the date of death of the Grantee. Any payments
      that were scheduled to be paid during the six (6) month period following
      the Grantee’s separation from service, but which were delayed pursuant to
      this Section 12(h), shall be paid without interest on, or as soon as
      administratively practicable after, the first day following the six (6)
      month anniversary of the Grantee’s separation from service (or, if
      earlier, the date of the Grantee’s death). Any payments that were
      originally scheduled to be paid following the six (6) months after the
      Grantee’s separation from service shall continue to be paid in accordance
      with their predetermined schedule.
		 
		i.	Agreement with
      Terms. Receipt of any
      benefits under this Agreement by the Grantee shall constitute the
      Grantee’s acceptance of and agreement with all of the provisions of this
      Agreement and of the Plan that are applicable to this Agreement, and the
      Company shall administer this Agreement
accordingly.

- 7 -

	THE CLOROX COMPANY
	 
	By:  	/s/
      Don Knauss
	Its:	Chairman of the Board and
CEO

THE GRANTEE ACKNOWLEDGES AND
AGREES THAT THIS AGREEMENT IS A UNILATERAL CONTRACT AND THAT THE GRANTEE’S RIGHT
TO THE SHARES PURSUANT TO THIS AGREEMENT IS ACCEPTED AND EARNED ONLY BY
CONTINUING EMPLOYMENT AT THE WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING
HIRED, BEING GRANTED THIS AWARD OR ACQUIRING SHARES HEREUNDER) AND BY
ACHIEVEMENT OF THE PERFORMANCE CRITERIA AND BY COMPLIANCE WITH THE GRANTEE’S
VARIOUS OBLIGATIONS UNDER THIS AGREEMENT. THE GRANTEE FURTHER ACKNOWLEDGES AND
AGREES THAT NOTHING IN THIS AGREEMENT, NOR IN THE PLAN, SHALL CONFER UPON THE
GRANTEE ANY RIGHT WITH RESPECT TO CONTINUATION OF EMPLOYMENT BY THE COMPANY, NOR
SHALL IT INTERFERE IN ANY WAY WITH THE GRANTEE’S RIGHT OR THE COMPANY’S RIGHT TO
TERMINATE THE GRANTEE’S EMPLOYMENT AT ANY TIME, FOR ANY REASON OR NO REASON,
WITH OR WITHOUT CAUSE, AND WITH OR WITHOUT ADVANCE NOTICE EXCEPT AS MAY BE
REQUIRED BY APPLICABLE LAW. 

The Grantee acknowledges that
a copy of the Plan, Plan Information and the Company’s Annual Report and Proxy
Statement (the “Prospectus Information”) are available for viewing on the
Company’s Cloroxweb site at http://CLOROXWEB.clorox.com/hr/stock. The Grantee hereby consents to receive the Prospectus Information
electronically or, in the alternative, to contact the HR Service Center at
1-800-709-7095 to request a paper copy of the Prospectus Information. The
Grantee represents that s/he is familiar with the terms and provisions thereof,
and hereby accepts this Agreement subject to all of the terms and provisions
thereof. The Grantee has reviewed the Plan and this Agreement in their entirety,
has had an opportunity to obtain the advice of counsel prior to executing this
Agreement and fully understands all provisions of the Agreement. The Grantee
acknowledges and hereby agrees to accept as binding, conclusive and final all
decisions or interpretations of the Committee upon any questions arising under
the Plan or this Agreement. The Grantee further agrees to notify the Company
upon any change in the residence address indicated below. 

	Dated: 	 	     	Signed: 	 
		 		Grantee
					 	         
				
      Residence
      Address:
	
				 	
				
  	

- 8 -Exhibit 10.1

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This Executive Employment Agreement (this “Agreement”) is made effective as of September 21, 2015 (the “Effective Date”), by and between REVA Medical, Inc. (the “Company”) and Regina Groves (the “Executive”).

 

The parties agree as follows:

 

1.                                      Employment.  The Company hereby employs Executive, and Executive hereby accepts such employment, upon the terms and conditions set forth herein.

 

2.                                      Duties.

 

2.1                               Position.  Executive is employed as the Company’s Chief Executive Officer and shall have the duties and responsibilities assigned by the Company’s Board of Directors (“Board of Directors”) both upon initial hire and as may be reasonably assigned from time to time.  Executive shall perform faithfully and diligently all duties assigned to Executive.  The Company reserves the right to modify Executive’s position and duties at any time in its sole and absolute discretion, subject to Section 7.3 below.

 

2.2                               Best Efforts/Full-time.  Executive will expend Executive’s best efforts on behalf of the Company, and will abide by all policies and decisions made by the Company, as well as all applicable federal, state and local laws, regulations or ordinances.  Executive will act in the best interest of the Company at all times.  Executive shall devote Executive’s full business time and efforts to the performance of Executive’s assigned duties for the Company, unless Executive notifies the Board of Directors in advance of Executive’s intent to engage in other paid work and receives the Board of Directors’ express written consent to do so.  Notwithstanding the foregoing, Executive will be permitted to serve as an outside director on the board of directors for nonprofit or charitable entities, provided such entities are not competitive with the Company and subject to the provisions of Section 8 below.

 

2.3                               Work Location.  Executive’s principal place of work shall be located in San Diego, California, with such reasonable travel to other locations on Company business consistent with her position as the Company may direct from time to time.

 

2.4                               Covenant not to Compete.  Except with the prior written consent of the Board, Executive will not, during the term of employment under this Agreement, engage in competition with the Company and/or any of its Affiliates, either directly or indirectly, in any manner or capacity, as adviser, principal, agent, affiliate, promoter, partner, officer, director, employee, stockholder, owner, co-owner, consultant, or member of any association or otherwise, in any phase of the business of developing, manufacturing and marketing of products or services which are in the same field of use or which otherwise compete with the products or services or proposed products or services of the Company and/or any of its Affiliates, provided that it shall not be a violation of this paragraph for Executive to serve on any non-competing corporate, civic or charitable boards or committees, as approved by the Board.  For purposes of this Agreement, “Affiliate” means, with respect to any specific entity, any other entity that, directly or indirectly,

 

 

through one or more intermediaries, controls, is controlled by or is under common control with such specified entity. Notwithstanding the foregoing provisions of this Section 2.4, Executive may own, as a passive investor, securities of any entity that competes with the business of the Company or any of its Affiliates and has outstanding publicly traded securities, so long as the Executive’s direct holdings in any such entity shall not in the aggregate constitute more than 5% of the voting power of such entity.

 

3.                                      At-Will Employment.  Executive’s employment with the Company is at-will and not for any specified period and may be terminated at any time, with or without cause (as defined below) or advance notice, by either Executive or the Company subject to the provisions regarding termination set forth below in Section 7.  No representative of the Company, other than the Board of Directors, has the authority to alter the at-will employment relationship.  Any change to the at-will employment relationship must be by specific, written agreement signed by Executive and the Company’s Board of Directors.  Nothing in this Agreement is intended to or should be construed to contradict, modify or alter this at-will relationship.

 

4.                                      Compensation.

 

4.1                               Base Salary.  As compensation for Executive’s performance of Executive’s duties hereunder, the Company shall pay to Executive an initial base salary of $395,000 per year, payable in accordance with the normal payroll practices of the Company, less required deductions for state and federal withholding tax, social security and all other employment taxes and payroll deductions (the “Base Salary”).  In the event Executive’s employment under this Agreement is terminated by either party, for any reason, Executive will earn the Base Salary prorated to the date of termination.

 

4.2                               Incentive Compensation.  In addition to the Base Salary, Executive shall be eligible to earn an annual performance cash bonus of up to 40% of Base Salary, less applicable employment taxes and payroll deductions.  This bonus is contingent upon the Executive’s achievement of performance goals for the applicable annual bonus period; except that in calendar year 2016, one-half of this bonus shall be guaranteed provided that Executive remains employed by the Company through December 31, 2016.  Executive’s annual performance goals shall be established by the Board of Directors (or if authority is delegated by the Board, the Compensation Committee of the Board of Directors) within ninety (90) days of the beginning of each such year. The achievement of any performance goals shall be determined by the Board of Directors (or if authority is delegated by the Board, the Compensation Committee of the Board) of Directors.  Subject to the provisions of Section 7 of this Agreement regarding payments in connection with termination of employment, in order to be eligible to receive the annual bonus pursuant to this Section 4.2, Executive must be employed on the last day of the given year for which the bonus amount is earned.  Payment of each annual bonus shall be made in a lump sum payment not later than March 15 of the year following the year for which the bonus is earned.

 

4.3                               Equity Compensation.  As an inducement to Executive’s acceptance of employment, on the Start Date, Executive shall be granted a non-qualified stock option to purchase 1,670,000 shares of Company’s Common Stock (the “Common Stock”), at a per share exercise price equal to the fair market value of a share of Common Stock on the date of the grant

 

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(the “Option”) which Option shall vest as follows provided that Executive remains in service to the Company: 25% of the shares subject to the Option shall vest on the one-year anniversary on the date of grant and 1/48th of the total number of shares subject to the Option shall vest upon the completion of each month of service to the Company thereafter. Notwithstanding the foregoing, the Option shall immediately vest 100% upon a Change of Control (as defined below in Section 7.7(c)).

 

4.4                               Relocation Benefit.  In exchange for Executive agreeing to relocate to a residence within 30 miles of the Company’s headquarters in San Diego, California on or before a date that is no later than the date that the Company’s sirolimus-eluting bioresorbable scaffold receives the CE Mark, and performing the duties referenced in Section 2.1 above, Company will provide Executive with a moving benefit in an amount not to exceed $50,000 (“Moving Benefit”). This Moving Benefit will include the Company’s direct payment for the moving of household goods and automobiles and up to two housing-hunting trips.  In addition, from Executive’s Start Date through the date of Executive’s relocation, the Company will provide Executive with (i) a temporary housing allowance of up to $3,000 per month and (ii) reasonable commuting costs between Dellwood, Minnesota and the Company’ headquarters facility in an amount not to exceed $3,000 per month (“Relocation Benefits”).  The Company will require supporting documentation from Executive prior to providing the above Moving Benefits and Relocation Benefits.  The Moving Benefits and Relocation Benefits provided by Company, to the extent required by Internal Revenue Service rules and regulations, will be included in Executive’s gross income and subject to required deductions for state and federal withholding tax, social security and all other employment taxes and payroll deductions. Company does not make any representations regarding the tax consequences of this benefit and Executive is advised to obtain Executive’s own tax counsel for such information and guidance.

 

4.5                               Performance and Salary Review.  The Board of Directors will periodically review Executive’s performance on no less than an annual basis.  Adjustments to increase salary or other compensation, if any, will be made by the Board of Directors in its sole and absolute discretion.

 

4.6                               Attorney’s Fees.  The Company shall reimburse Executive up to $7,500 for her attorney fees incurred in reaching this Agreement.

 

5.                                      Customary Fringe Benefits.  Executive will be eligible for all customary and usual fringe benefits generally available to Executives of the Company subject to the terms and conditions of the Company’s benefit plan documents.  The Company reserves the right to change or eliminate the fringe benefits on a prospective basis, at any time, effective upon notice to Executive.  Notwithstanding the foregoing, Executive shall be entitled to not less than four (4) weeks of paid vacation during each 12-month period.

 

6.                                      Business Expenses.  Executive will be reimbursed for all reasonable, out-of-pocket business expenses incurred in the performance of Executive’s duties on behalf of the Company.  To obtain reimbursement, expenses must be submitted promptly with appropriate supporting documentation and will be reimbursed in accordance with the Company’s policies.  Any reimbursement Executive is entitled to receive shall (a) be paid no later than the last day of Executive’s tax year following the tax year in which the expense was incurred; provided,

 

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however, that it is the Company’s normal business practice to provide reimbursement at the next regular payroll date after the expense has been submitted and approved for reimbursement, (b) not be affected by any other expenses that are eligible for reimbursement in any tax year and (c) not be subject to liquidation or exchange for another benefit.

 

7.                                      Termination of Executive’s Employment.

 

7.1                               Termination for Cause by the Company.  Although the Company anticipates a mutually rewarding employment relationship with Executive, the Company may terminate Executive’s employment immediately at any time for Cause.  For purposes of this Agreement, “Cause” is defined as:  (a) acts or omissions constituting gross negligence, recklessness or willful misconduct on the part of Executive with respect to Executive’s obligations or otherwise relating to the business of the Company; (b) any acts or conduct by Executive that are materially adverse to the Company’s interests; (c) Executive’s material breach of this Agreement; (d) Executive’s breach of the Company’s Confidential Information and Invention Assignment Agreement; (e) Executive’s conviction or entry of a plea of nolo contendere for fraud, misappropriation or embezzlement, or any felony or crime of moral turpitude or that otherwise negatively impacts Executive’s ability to effectively perform Executive’s duties hereunder; (f) Executive’s willful neglect of duties as determined in the sole and exclusive discretion of the Board of Directors; (g) Executive’s inability to perform the essential functions of Executive’s position, with or without reasonable accommodation, due to a mental or physical disability; or (h) Executive’s death.  In the event of termination based on (b), (c) or (f), Executive will have fifteen (15) days from receipt of written notice from the Company to cure the issue, if curable, with such written notice to be provided to Executive detailing in specific terms the acts, conduct, or alleged breach.  In the event that Executive’s employment is terminated in accordance with this Section 7.1, Executive shall be entitled to receive only Executive’s Base Salary then in effect, prorated to the date of termination and all benefits earned and accrued through the date of termination (“Accrued Benefits”).  In addition, Executive shall be entitled to any amounts owing to the Executive for reimbursement of expenses properly incurred by Executive prior to the date of termination which are reimbursable in accordance with Section 4.4 or Section 6 of this Agreement. All other Company obligations to Executive pursuant to this Agreement will become automatically terminated and completely extinguished.  In the event of Executive’s termination of employment by the Company for Cause, Executive will not be entitled to receive the Severance Package described in Section 7.2 below.

 

7.2                               Termination Without Cause by the Company/Severance.  Company may terminate Executive’s employment under this Agreement without Cause at any time upon thirty (30) days’ written notice.  In the event of such termination, Executive will receive Executive’s Base Salary then in effect, prorated to the date of termination, and Accrued Benefits.  Further, Executive shall be entitled to any amounts owing to the Executive for reimbursement of expenses properly incurred by Executive prior to the date of termination which are reimbursable in accordance with Section 4.4 or Section 6 of this Agreement. In addition, Executive will receive a “Severance Package” that shall include (a) a “Severance Payment” equivalent to twelve (12) months of Executive’s Base Salary then in effect on the date of termination, payable in accordance with Company’s regular payroll cycle beginning on the second regular payday occurring following the date the Release (as defined below) becomes effective and non-revocable in accordance with its terms, provided, however, that if any portion of the Severance

 

4

 

Payment constitutes deferred compensation subject to Section 409A (as defined below), and the sixty (60) day period for executing the Release described below, would span two (2) calendar years, then, subject further to Section 7.6(a), such portion of the Severance Payment shall commence on the first regularly scheduled payroll date occurring on or after sixty (60) days following the termination date; and (b) payment by Company of the premiums required to continue Executive’s group health care coverage for a period of twelve (12) months following Executive’s termination (the “Benefits Period”), under the applicable provisions of the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), provided that Executive elects to continue and remains eligible for these benefits under COBRA, and does not become eligible for health coverage through another employer during this period.

 

Notwithstanding the foregoing, if Company determines, in its reasonable discretion, that the payment of the group health care coverage premiums would result in a violation of the nondiscrimination rules of Section 105(h)(2) of the Internal Revenue Code of 1986, as amended (the “Code”), or any statute or regulation of similar effect (including but not limited to the 2010 Patient Protection and Affordable Care Act, as amended by the 2010 Health Care and Education Reconciliation Act), then in lieu of paying such premiums, Company, in its sole discretion, may elect to instead pay Executive on the first day of each month during the Benefits Period, a fully taxable cash payment equal to the premiums for that month, grossed-up to cover all applicable withholdings, so that the net benefit to Executive equals the monthly premiums (such amount, the “Special Separation Payment”), for the remainder of the Benefits Period. Executive may, but is not obligated to, use such Special Separation Payment toward the cost of COBRA premiums.

 

Executive will only receive the Severance Package if Executive: (i) complies with all surviving provisions of this Agreement as specified in Section 13.8 below; (ii) executes a full general release in the form substantially similar to that attached as Exhibit A, releasing all claims, known or unknown, that Executive may have against Company arising out of or any way related to Executive’s employment or termination of employment with Company, and such release has become effective in accordance with its terms prior to the sixtieth (60th) day following the termination date; (iii) resigns from all positions with the Company as an officer and director of the Company and any of its subsidiaries and affiliates; and (iv) agrees as part of the release agreement to not make any voluntary statements, written or oral, or cause or encourage others to make any such statements that defame, disparage or in any way criticize the personal and/or business reputations, practices or conduct of Company ((i) — (iv) shall be collectively referred to as “Severance Obligations”).

 

7.3                               Voluntary Resignation by Executive for Good Reason/Severance.  Executive may voluntarily resign Executive’s position with the Company for Good Reason, at any time on thirty (30) days’ advance written notice.  Executive shall provide notice to the Company of the condition giving rise to “Good Reason” within ninety (90) days of the initial existence of such condition and the Company shall have thirty (30) days following such notice to remedy such condition.  Executive’s right to terminate Executive’s employment for Good Reason shall not be affected by the Executive’s incapacity due to physical or mental illness.  In the event of Executive’s resignation for Good Reason, Executive will be entitled to receive Executive’s Base Salary then in effect, prorated to the date of termination, Accrued Benefits, and the Severance Package described in Section 7.2 above, provided Executive complies with all of the Severance Obligations.  Further, Executive shall be entitled to any amounts owing to the

 

5

 

Executive for reimbursement of expenses properly incurred by Executive prior to the date of termination which are reimbursable in accordance with Section 4.4 or Section 6 of this Agreement. All other Company obligations to Executive pursuant to this Agreement will become automatically terminated and completely extinguished.  For purposes of this Agreement, “Good Reason” means the occurrence of any of the following events or conditions, without the Executive’s express written consent (which consent may be denied, withheld or delayed for any reason): (a) a material reduction in Executive’s title, duties, authority or responsibilities; (b) a material non-voluntary reduction by the Company in the Executive’s annual Base Salary as in effect as of the date hereof; (c) a material change in Executive’s business location of more than thirty (30) miles; (d) the material breach by the Company of this Agreement; or (e) the failure of any successor-in-interest to assume all of the obligations of the Company under this Agreement.

 

7.4                               Voluntary Resignation by Executive Without Good Reason.  Executive may voluntarily resign Executive’s position with the Company without Good Reason, at any time on thirty (30) days’ advance written notice.  In the event of Executive’s resignation without Good Reason, Executive will be entitled to receive only Executive’s Base Salary and Accrued Benefits as determined through the end of the thirty-day notice period and no other amount; provided, however that Executive shall be entitled to any amounts owing to the Executive for reimbursement of expenses properly incurred by Executive prior to the date of termination which are reimbursable in accordance with Section 4.4 or Section 6 of this Agreement.  All other Company obligations to Executive pursuant to this Agreement will become automatically terminated and completely extinguished.  In addition, Executive will not be entitled to receive the Severance Package under Section 7.2 of this Agreement.

 

7.5                               Resignation of Board or Other Positions.  Should Executive’s employment terminate for any reason, Executive agrees to immediately resign all other positions (including board membership) Executive may hold on behalf of the Company.

 

7.6                               Application of Section 409A.

 

(a)                                 To the extent required to avoid the imposition of additional taxes and penalties under Section 409A of the Code, amounts payable under this Agreement on account of any termination of employment shall only be paid if Executive experiences a “separation from service” as defined in Section 409A of the Code and the regulatory and other guidance issued thereunder (“Section 409A”).  Furthermore, to the extent that Executive is a “specified employee” within the meaning of the Section 409A as of the date of Executive’s separation from service, no amount that constitutes a deferral of compensation under Section 409A which is payable on account of Executive’s separation from service shall be paid to Executive before the date (the “Delayed Payment Date”) which is first day of the seventh month after the date of Executive’s separation from service or, if earlier, the date of Executive’s death following such separation from service.  All such amounts that would, but for this Section, become payable prior to the Delayed Payment Date will be accumulated and paid on the Delayed Payment Date. In addition, to the extent that any payments made pursuant to this Section 7 constitute deferred compensation under Section 409A, each payment will be considered one of a series of separate payments.

 

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(b)                                 The Company intends that income provided to Executive pursuant to this Agreement will not be subject to taxation under Section 409A of the Code.  The provisions of this Agreement shall be interpreted and construed in favor of satisfying any applicable requirements of Section 409A of the Code.  However, the Company does not guarantee any particular tax effect for income provided to Executive pursuant to this Agreement.  In any event, except for the Company’s responsibility to withhold applicable income and employment taxes from compensation paid or provided to Executive, the Company shall not be responsible for the payment of any applicable taxes on compensation paid or provided to Executive pursuant to this Agreement.

 

(c)                                  Notwithstanding anything herein to the contrary, the reimbursement of expenses or in-kind benefits provided pursuant to this Agreement shall be subject to the following conditions: (1) the expenses eligible for reimbursement or in-kind benefits in one taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits in any other taxable year; (2) the reimbursement of eligible expenses or in-kind benefits shall be made promptly, subject to the Company’s applicable policies, but in no event later than the end of the year after the year in which such expense was incurred; and (3) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit.

 

7.7                               Termination Upon a Change of Control.

 

(a)                                 Severance Payment.  If Executive’s employment is terminated by the Company without Cause (as defined in Section 7.1 above) or if Executive voluntarily resigns Executive’s position with the Company for Good Reason (as defined in Section 7.3 above) within thirty (30) days prior to or twelve (12) months after a Change of Control (as that term is defined below), Executive shall be entitled to receive the Severance Payment described in Section 7.2 above, provided Executive complies with the Severance Obligations except that the “Severance Payment” amount shall be paid in a single lump-sum payment, without interest, on or before the second regularly scheduled payroll date following the effectiveness of the binding release as set forth in Section 7.2 above; provided, however, that if any portion of the Severance Payment constitutes deferred compensation subject to Section 409A, and the sixty (60) day period for executing the Release described in Section 7.2 would span two (2) calendar years, then, subject further to Section 7.6(a), such portion of the Severance Payment shall be paid on the first regularly scheduled payroll date occurring on or after sixty (60) days following the calendar year in which the termination date occurs.

 

(b)                                 280G.  Notwithstanding anything to the contrary in this Agreement, if Executive is a “disqualified individual” (as defined in Section 280G(c) of the Code), and any Severance Payment and other benefits provided for in this Agreement, together with any other payments and benefits which Executive has the right to receive from the Company and other person or entity (the “Aggregate Severance”), would be subject to the excise tax imposed by Section 4999 of the Code, including any interest and penalties imposed with respect to such excise tax (the “Excise Tax”), then the Aggregate Severance provided thereunder shall be either (1) reduced (but not below zero) so that the present value of the Aggregate Severance equals the Safe Harbor Amount (as defined below) and so that no portion of the Aggregate Severance shall be subject to the Excise Tax, or (2) paid in full, whichever produces

 

7

 

the better net after-tax position to Executive (taking into account the Excise Tax and any other applicable taxes).  The determination as to whether any such reduction in the Aggregate Severance is necessary shall be made initially by the Company in good faith.  If applicable, the reduction of the amounts payable hereunder in accordance with clause (1) of this Section 7.7(b) shall be made in the following order and in such a manner as to maximize the value of the Aggregate Severance paid to Executive (i) cash severance pay that is treated as deferred compensation subject to Section 409A; (ii) any payments intended to pay for continued medical benefits under COBRA; (iii) any other cash severance pay that is exempt from Section 409A; (iv) any other non-cash benefit payable that is a severance benefit; (v)reduction of any other cash payment or bonus treated as being payable on account of the change of control for purposes of Section 280G of the Code; (vi) reduction of any equity compensation treated as being granted in anticipation of a change of control for purposes of Section 280G of the Code (with restricted stock, restricted stock units and other similar equity awards being reduced first, then stock options and stock appreciation rights); (vii) reduction in vesting acceleration of restricted stock units, restricted stock and other similar equity awards not described in (vi), above; and (viii) reduction in vesting acceleration of stock options and stock appreciation rights.  In the event that equity compensation acceleration or grants are to be reduced or cancelled, such reduction or cancellation shall occur in the reverse order of the date of grant to Executive.  If the Aggregate Severance is reduced in accordance with the preceding sentence and through error or otherwise the Aggregate Severance exceeds the Safe Harbor Amount, Executive shall immediately repay such excess to the Company upon notification that an overpayment has been made.  For purposes of this Section 7.7(b), “Safe Harbor Amount” means an amount equal to one dollar ($1.00) less than three (3) times Executive’s “base amount” for the “base period,” as those terms are defined under Section 280G of the Code.

 

(c)                                  Change of Control.  A Change of Control is defined as any one of the following occurrences:

 

(i)                                     Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the “Exchange Act”)), other than a trustee or other fiduciary holding securities of the Company under an employee benefit plan of the Company, becomes the “beneficial owner” (as defined in Rule 13d 3 promulgated under the Exchange Act), directly or indirectly, of the securities of the Company representing more than 50% of (A) the outstanding shares of common stock of the Company or (B) the combined voting power of the Company’s then-outstanding securities; or

 

(ii)                                  the sale or disposition of all or substantially all of the Company’s assets (or any transaction having similar effect is consummated); or

 

(iii)                               the Company is party to a merger or consolidation that results in the holders of voting securities of the Company outstanding immediately prior thereto failing to continue to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or

 

(iv)                              the dissolution or liquidation of the Company.

 

8

 

Notwithstanding the forgoing, with respect to any payment or benefit treated as deferred compensation subject to Section 409A, the vesting rules set forth in Section 7.7(a) shall continue to apply.  However, unless the Change of Control also constitutes a change in ownership or effective control of the Company or a change in the ownership of a substantial portion of the assets of the Company (in accordance with Section 409A and Treasury Regulation Section 1.409A-3(i)(5)), then although vested and nonforfeitable, the payment or benefit shall, to the extent necessary to avoid the imposition of additional taxes and/or penalties under Section 409A(a)(1), be paid based on the normal form of timing rules applicable to the payment of such severance payment or benefit in accordance with Section 7.2.

 

8.                                      No Conflict of Interest.  During the term of Executive’s employment with the Company, Executive must not engage in any work, paid or unpaid, or other activities that create a conflict of interest.  Such work and/or activities shall include, but is not limited to, directly or indirectly competing with the Company in any way, or acting as an officer, director, employee, consultant, stockholder, volunteer, lender, or agent of any business enterprise of the same nature as, or which is in direct competition with, the business in which the Company is now engaged or in which the Company becomes engaged during the term of Executive’s employment with the Company, as may be determined by the Board of Directors in its sole discretion.  If the Board of Directors believes such a conflict exists during the term of this Agreement, the Board of Directors may ask Executive to choose to discontinue the other work and/or activities or resign employment with the Company.  Notwithstanding the foregoing provisions of this Section 8, Executive may own, as a passive investor, securities of any entity that competes with the business of the Company or any of its Affiliates and has outstanding publicly traded securities, so long as the Executive’s direct holdings in any such entity shall not in the aggregate constitute more than 5% of the voting power of such entity.

 

9.                                      Confidentiality and Proprietary Rights.  As a condition of continuing employment, Executive agrees to read and abide by the Company’s Confidential Information and Invention Assignment Agreement, which is provided with this Agreement and incorporated herein by reference.

 

10.                   Nonsolicitation of the Company’s Employees.  Executive agrees that during the term of this Agreement and for a period of one (1) year after the termination of this Agreement, Executive will not, either directly or indirectly, separately or in association with others, interfere with, impair, disrupt or damage the Company’s business by soliciting, encouraging or recruiting any of the Company’s employees or causing others to solicit or encourage any of the Company’s employees to discontinue their employment with the Company.

 

11.                               Injunctive Relief.  Executive acknowledges that Executive’s breach of the covenants contained in sections 8-10 (collectively “Covenants”) would cause irreparable injury to the Company and agrees that in the event of any such breach, the Company shall be entitled to seek temporary, preliminary and permanent injunctive relief pursuant to the California Arbitration Act, without the necessity of proving actual damages or posting any bond or other security.

 

12.                               Arbitration.  In the event of any dispute or claim relating to or arising out of the employment relationship between Executive and the Company or the termination of that

 

9

 

relationship (including, but not limited to, any claims of breach of contract, wrongful termination or age, sex, race, disability or other discrimination), Executive and the Company agree that all such disputes shall be resolved by confidential binding arbitration conducted before a single neutral arbitrator in San Diego, California, pursuant to the rules for arbitration of employment disputes by the American Arbitration Association (available at www.adr.org) and the rules set forth in the California Arbitration Act, Code of Civil Procedure Section 1280, et seq. (available at www.leginfo.ca.gov/calaw.html). The arbitrator shall permit adequate discovery, including discovery pursuant to Section 1283.05 of the California Code of Civil Procedure. In addition, the arbitrator is empowered to award all remedies otherwise available in a court of competent jurisdiction; however Executive and the Company each retain the right under Section 1281.8 of the California Code of Civil Procedure to seek provisional remedies. Any judgment rendered by the arbitrator may be entered by any court of competent jurisdiction. The arbitrator shall issue an award in writing and state the essential findings and conclusions on which the award is based. By executing this Agreement, Executive and the Company are both waiving the right to a jury trial with respect to any such disputes.  The Company shall bear the costs of the arbitrator, forum and filing fees.  Each party shall bear its own respective attorneys’ fees and all other costs, unless otherwise provided by law and awarded by the arbitrator.  This arbitration agreement does not include claims that, by law, may not be subject to mandatory arbitration.

 

13.                               General Provisions.

 

13.1                        Successors and Assigns.  The rights and obligations of the Company under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of the Company.  Executive shall not be entitled to assign any of Executive’s rights or obligations under this Agreement.

 

13.2                        Waiver.  Either party’s failure to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such provision, or prevent that party thereafter from enforcing each and every other provision of this Agreement.

 

13.3                        Attorneys’ Fees.  Each side will bear its own attorneys’ fees in any dispute unless a statutory section at issue, if any, authorizes the award of attorneys’ fees to the prevailing party.

 

13.4                        Severability.  In the event any provision of this Agreement is found to be unenforceable by an arbitrator or court of competent jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being intended that the parties shall receive the benefit contemplated herein to the fullest extent permitted by law.  If a deemed modification is not satisfactory in the judgment of such arbitrator or court, the unenforceable provision shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not be affected thereby.

 

13.5                        Interpretation; Construction.  The headings set forth in this Agreement are for convenience only and shall not be used in interpreting this Agreement.  This Agreement has been drafted by legal counsel representing the Company, but Executive has participated in the negotiation of its terms.  Furthermore, Executive acknowledges that Executive has had an opportunity to review and revise the Agreement and have it reviewed by legal counsel, if desired,

 

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and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement.

 

13.6                        Governing Law.  This Agreement will be governed by and construed in accordance with the laws of the United States and the State of California.  Each party consents to the jurisdiction and venue of the state or federal courts in San Diego, California, if applicable, in any action, suit, or proceeding arising out of or relating to this Agreement.

 

13.7                        Notices.  Any notice required or permitted by this Agreement shall be in writing and shall be delivered as follows with notice deemed given as indicated:  (a) by personal delivery when delivered personally; (b) by overnight courier upon written verification of receipt; (c) by telecopy or facsimile transmission upon acknowledgment of receipt of electronic transmission; or (d) by certified or registered mail, return receipt requested, upon verification of receipt.  Notice shall be sent to the addresses set forth below, or such other address as either party may specify in writing.

 

13.8                        Survival.  Sections 8 (“No Conflict of Interest”), 9 (“Confidentiality and Proprietary Rights”), 10 (“Nonsolicitation”), 11 (“Injunctive Relief”), 12 (“Agreement to Arbitrate”), 13 (“General Provisions”) and 14 (“Entire Agreement”) of this Agreement shall survive Executive’s employment by the Company.

 

14.                               Entire Agreement.  This Agreement, including the Confidential Information and Invention Assignment Agreement incorporated herein by reference and the applicable Company equity incentive plans and related option documents described in Section 4.3 of this Agreement, constitutes the entire agreement between the parties relating to this subject matter and supersedes all prior or simultaneous representations, discussions, negotiations, and agreements, whether written or oral.  This agreement may be amended or modified only with the written consent of Executive and the Board of Directors of the Company.  No oral waiver, amendment or modification will be effective under any circumstances whatsoever.

 

[Remainder of Page Intentionally Left Blank]

 

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THE PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND EVERY PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN BELOW.

 

	
 
    	
 
    	
 
    	
Regina   Groves
    
	
 
    	
 
    	
 
    	
 
    
	
Dated:
    	
August 20,   2015
    	
 
    	
By:
    	
/s/   Regina Groves
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Regina   Groves
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Address:
    	
15   La Costa Drive
    
	
 
    	
 
    	
 
    	
 
    	
Dellwood,   MN 55110
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
REVA   MEDICAL, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
Dated:
    	
August 18,   2015
    	
 
    	
By:
    	
/s/   Gordie Nye
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Gordie   Nye
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Member,   Board of Directors
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Chairman,   Compensation Committee
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Address:
    	
REVA   Medical, Inc.
    
	
 
    	
 
    	
 
    	
 
    	
5751   Copley Drive, Suite B
    
	
 
    	
 
    	
 
    	
 
    	
San   Diego, CA 92111
    

 

[SIGNATURE PAGE TO EXECUTIVE EMPLOYMENT AGREEMENT]

 

 

Exhibit A

 

GENERAL RELEASE

 

1.                                      General Release by Executive.  Executive unconditionally, irrevocably and absolutely releases and discharges the Company, and any parent and subsidiary corporations, divisions and affiliated corporations, partnerships or other affiliated entities of the Company, past and present, as well as the Company’s employees, officers, directors, agents, successors and assigns (collectively, “Released Parties”), from all claims related in any way to the transactions or occurrences between them to date, to the fullest extent permitted by law, including, but not limited to, Executive’s employment with the Company, the termination of Executive’s employment, and all other losses, liabilities, claims, charges, demands and causes of action, known or unknown, suspected or unsuspected, arising directly or indirectly out of or in any way connected with Executive’s employment with the Company.  This release is intended to have the broadest possible application and includes, but is not limited to, any tort, contract, common law, constitutional or other statutory claims arising under local state or federal law, including, but not limited to alleged violations of the California Labor Code, the California Fair Employment and Housing Act, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and the Age Discrimination in Employment Act of 1967, as amended, and all claims for attorneys’ fees, costs and expenses.  Executive expressly waives Executive’s right to recovery of any type, including damages or reinstatement, in any administrative or court action, whether state or federal, and whether brought by Executive or on Executive’s behalf, related in any way to the matters released herein.  However, this general release is not intended to bar any claims that, by statute, may not be waived, such as claims for workers’ compensation benefits, unemployment insurance benefits, statutory indemnity, any challenge to the validity of Executive’s release of claims under the Age Discrimination in Employment Act of 1967, as amended, as set forth in this General Release Agreement; any claims for payment or benefits under the Executive Employment Agreement made effective as of September 21, 2015 by and between the Company and the Executive; any claim or cause of action for indemnification pursuant to any applicable indemnification agreement, any D&O insurance policy applicable to Executive and/or the Company’s certificates of incorporation, charter and by-laws or any claim for contribution or any rights Executive may have to vested benefits under any health and welfare plans or other employee benefit plans or programs sponsored by the Company.

 

Executive acknowledges that Executive may discover facts or law different from, or in addition to, the facts or law that Executive knows or believes to be true with respect to the claims released in this General Release and agrees, nonetheless, that this General Release shall be and remain effective in all respects notwithstanding such different or additional facts or the discovery of them.

 

A-1

 

Executive declares and represents that Executive intends this General Release to be complete and not subject to any claim of mistake, and that the release herein expresses a full and complete release and Executive intends the release herein to be final and complete.  Executive executes this release with the full knowledge that this release covers all possible claims against the Released Parties, to the fullest extent permitted by law and the terms of this General Release.

 

2.                                      California Civil Code Section 1542 Waiver.  Executive expressly acknowledges and agrees that all rights under Section 1542 of the California Civil Code are expressly waived.  That section provides:

 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

3.                                      Representation Concerning Filing of Legal Actions.  Executive represents that, as of the date of this General Release, Executive has not filed any lawsuits, charges, complaints, petitions, claims or other accusatory pleadings against the Company or any of the other Released Parties in any court or with any governmental agency.

 

4.                                      Nondisparagement.  Executive agrees that Executive will not make any voluntary statements, written or oral, or cause or encourage others to make any such statements that defame, disparage or in any way criticize the personal and/or business reputations, practices or conduct of the Company or any of the other Released Parties.  The Company agrees that the Company, will direct its officers and directors not to make any voluntary statements, written or oral, or cause or encourage others to make any such statements that defame, disparage or in any way criticize the personal and/or business reputation, practices or conduct of Executive.

 

5.                                      Confidentiality and Return of the Company Property.  Executive understands and agrees that as a condition of receiving the Severance Package, all Company property must be returned to the Company on or before the separation date or within a reasonable time thereafter.  By signing this General Release, Executive represents and warrants that Executive has returned to the Company on or before the Executive’s execution of this General Release, all Company property, data and information belonging to the Company and agrees that Executive will not use or disclose to others any confidential or proprietary information of the Company or the Released Parties.  In addition, Executive agrees to keep the terms of the Severance Package confidential between Executive and the Company, except that Executive may tell Executive’s immediate family and attorney or accountant, if any, as needed, but in no event should Executive discuss the Severance Package or its terms with any current or prospective employee of the Company.

 

6.                                      Continuing Obligations.  Executive further agrees to comply with the continuing obligations regarding confidentiality set forth in the surviving provisions of the Company’s Proprietary Information and Inventions Agreement previously signed by Executive.

 

7.                                      No Admissions.  By entering into this General Release Agreement, the Released Parties make no admission that they have engaged, or are now engaging, in any unlawful

 

A-2

 

conduct.  The parties understand and acknowledge that this General Release Agreement is not an admission of liability and shall not be used or construed as such in any legal or administrative proceeding.

 

8.                                      Older Workers’ Benefit Protection Act.  This General Release is intended to satisfy the requirements of the Older Workers’ Benefit Protection Act, 29 U.S.C. sec. 626(f).  Executive is advised to consult with an attorney before executing this General Release.

 

8.1                               Acknowledgments/Time to Consider.  Executive acknowledges and agrees that (a) Executive has read and understands the terms of this General Release Agreement; (b) Executive has been advised in writing to consult with an attorney before executing this General Release Agreement; (c) Executive has obtained and considered such legal counsel as Executive deems necessary; (d) Executive has been given twenty-one (21) days to consider whether or not to enter into this General Release Agreement (although Executive may elect not to use the full 21-day period at Executive’s option); and (e) by signing this General Release Agreement, Executive acknowledges that Executive does so freely, knowingly, and voluntarily.

 

8.2                               Revocation/Effective Date.  This General Release Agreement shall not become effective or enforceable until the eighth day after Executive signs this General Release Agreement.  In other words, Executive may revoke Executive’s acceptance of this General Release Agreement within seven (7) days after the date Executive signs it.  Executive’s revocation must be in writing and received by the Company on or before the seventh day in order to be effective.  If Executive does not revoke acceptance within the seven (7) day period, Executive’s acceptance of this General Release Agreement shall become binding and enforceable on the eighth day (“Effective Date”).  The Severance Package will become due and payable after the Effective Date, provided Executive does not revoke.

 

8.3                               Preserved Rights of Executive.  This General Release Agreement does not waive or release any rights or claims that Executive may have under the Age Discrimination in Employment Act that arise after the execution of this General Release Agreement.  In addition, this Agreement does not prohibit Executive from challenging the validity of this General Release Agreement’s waiver and release of claims under the Age Discrimination in Employment Act of 1967, as amended.

 

9.                                      Severability.  In the event any provision of this General Release Agreement shall be found unenforceable, the unenforceable provision shall be deemed deleted and the validity and enforceability of the remaining provisions shall not be affected thereby.

 

10.                               Full Defense.  This General Release Agreement may be pled as a full and complete defense to, and may be used as a basis for an injunction against, any action, suit or other proceeding that may be prosecuted, instituted or attempted by Executive in breach hereof.

 

11.                               Applicable Law.  The validity, interpretation and performance of this General Release Agreement shall be construed and interpreted according to the laws of the United States of America and the State of California. Executive consents to the jurisdiction and venue of the state or federal courts in San Diego, California in any action, suit, or proceeding arising out of or relating to this Agreement.

 

A-3

 

12.                               Entire Agreement; Modification.  This General Release Agreement, including the surviving provisions of the Company’s Proprietary Information and Invention Agreement previously executed by Executive, and the Executive Employment Agreement made effective as of September 21, 2015 by and between the Company and the Executive are intended to be the entire agreement between the parties and supersedes and cancels any and all other and prior agreements, written or oral, between the parties regarding this subject matter.  This General Release Agreement may be amended only by a written instrument executed by all parties hereto.

 

A-4

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