Document:

Exhibit 10.2

 

THIS CONVERTIBLE PROMISSORY NOTE (THIS “NOTE”) AND THE
SECURITIES THAT MAY BE ACQUIRED PURSUANT TO THIS NOTE HAVE NOT BEEN
REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND MAY NOT
BE OFFERED, SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED
OF WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY U.S.
PERSON, OTHER THAN DISTRIBUTORS (AS DEFINED IN REGULATION S PROMULGATED UNDER
THE SECURITIES ACT), IN THE ABSENCE OF SUCH REGISTRATION, UNLESS SUCH
TRANSACTION IS EXEMPT FROM OR NOT SUBJECT TO REGISTRATION UNDER THE SECURITIES
ACT, AND HOLDER HAS, IF REQUIRED BY THE COMPANY, DELIVERED AN OPINION OF
COUNSEL TO THAT EFFECT.  BY ACCEPTING THIS NOTE, HOLDER REPRESENTS, AMONG
OTHER THINGS, THAT IT IS AN ACCREDITED INVESTOR (AS DEFINED IN RULE 501(a) OF
THE SECURITIES ACT) AND IS NOT A U.S PERSON, AND IS ACQUIRING THIS NOTE AND
WILL ACQUIRE ANY CONVERSION SHARES (AS DEFINED HEREIN) OUTSIDE THE U.S. AND IN
ACCORDANCE WITH REGULATION S, AND WILL NOT ENGAGE IN ANY HEDGING TRANSACTIONS
WITH RESPECT TO THIS NOTE OR THE COMMON STOCK OF THE COMPANY PRIOR TO THE
EXPIRATION OF THE DISTRIBUTION COMPLIANCE PERIOD (AS DEFINED HEREIN) EXCEPT IN
COMPLIANCE WITH THE SECURITIES ACT.  ISSUANCE OF THE CONVERSION SHARES IS
CONDITIONED UPON THE CONTINUED AVAILABILITY OF REGULATION S IN RESPECT OF
HOLDER AT TIME OF CONVERSION, OR THE AVAILABILITY TO HOLDER OF ANOTHER
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE ACT IN RESPECT OF SUCH
ISSUANCE.

 

CONVERTIBLE PROMISSORY NOTE

 

	
   US $                  

  	
   

  	
                      ,
  2008

  

 

FOR VALUE RECEIVED, Osiris
Therapeutics, Inc. , a Delaware corporation (the “ Company “), having an address of 7015
Albert Einstein Drive, Columbia, MD, U.S.A., hereby promises to pay to the
order of                                 
(the “ Holder “), at the offices
of Holder at                                 
or such other place as may be designated by Holder to the Company in writing,
the aggregate principal amount of                                                     
U.S. Dollars  ($                   )
(the “ Principal “) together with
accrued and unpaid interest, upon the terms and conditions hereinafter set
forth.

 

1.                                       Payment Terms.  The Company promises to pay to
Holder the Final Payment Amount (as hereinafter defined) on November 30 , 2009
(the “ Maturity Date “), unless
this Note is earlier redeemed by the Company or converted into Common Stock (as
hereinafter defined) of the Company, pursuant to Section 3 hereof,
as applicable.  All accrued and unpaid interest shall be due and payable
in accordance with Section 2 hereof.  All payments hereunder
shall be made in lawful money of the United States of America. Payment shall be
credited first to the accrued and unpaid interest then due and payable and the
remainder to Principal.  “Final Payment Amount” means an amount equal to
the sum of the total unpaid Principal plus any accrued and unpaid interest.

 

2.                                       Interest.  Interest on the outstanding portion of
Principal of this Note shall accrue at a rate of two percent (2%) per annum.  All computations of interest
shall be made on the basis of a 360-day year for actual days elapsed.  All
accrued interest shall be due and payable in cash on the Maturity Date, 
the Redemption Date (as hereinafter defined) or Conversion Date (as hereinafter
defined), as the case may be, in each case in accordance with the terms and
conditions of this Note. Any accrued but unpaid interest will be paid in cash
at the time of conversion. If the Maturity Date, the Redemption Date or the
Conversion

 

March      , 2008 Convertible
Promissory Note 

 

1

 

Date, be on a day that is not a business day, payment
of any amounts due and payable on such date shall be effected on the
immediately following business day.

 

3.                                       Conversion or Redemption of this Note .

 

(a)                                                                                  Conversion.  This Note is convertible into shares of Common
Stock at any time at the sole discretion of the Holder. Upon receipt of a
written request for conversion of this Note upon the Company, the “Conversion Date,” this Note shall be converted in its
entirety and not in part into shares of the Common Stock.  The number of
shares of Common Stock to which Holder shall be entitled upon such conversion
shall be equal to the sum of the total unpaid principal divided by the Closing
Price of the Common Stock, as reported on the NASDAQ Global Market on March       ,
2008 (the “Note Conversion Rate”).
Any accrued but unpaid interest will be paid in cash at the time of conversion.
For purposes of this paragraph 3(a), the term Closing Price shall mean, as
reasonably determined by the Company, the reported closing price on the NASDAQ
Global Market on March       , 2008.

 

(b)                                                                                 Redemption.  This Note may be redeemed by the Company at
any time by payment to Holder in immediately available funds of the sum of the
total unpaid principal plus any accrued but unpaid interest.  The Company
must provide written notice to Holder not less than 30 days prior to the
effective date of such redemption (the “Redemption Date”).

 

©                                                                                      No Fractional Shares.  The number of Common Shares
resulting from a conversion of this Note pursuant to Section 3(a) above
shall be rounded up to the next higher integral share of Common Stock, and no
fractional shares shall be issuable by the Company upon conversion of this
Note.  Conversion of this Note shall be deemed payment in full of this
Note and this Note shall thereupon be cancelled.

 

4.                                       The indebtedness evidenced hereby ranks
pari passu in right of payment to the indebtedness evidenced from time to time
by the other of the Offered Notes (as defined below) and to any other
convertible debt securities of the Company now or hereafter existing and so
providing, and the indebtedness evidenced hereby ranks senior in right of
payment to all classes and series of the Company’s capital stock.  By
accepting this Note the Holder does expressly consent to the aforesaid ranking
in right of payment and agrees to perform, from time to time, such acts, and to
execute, acknowledge and/or deliver such other instruments, documents and
agreements, as may from time to time be requested by the Company, or as may
from time to time otherwise be reasonably requested, necessary or required, to
so confirm or provide.

 

5.                                       Representations and Warranties of the Company.  The Company represents and
warrants to Holder as follows:

 

(a)                                                                                  The execution and delivery by the Company
of this Note (i) are within the Company’s corporate power and authority,
and (ii) have been duly authorized by all necessary corporate action.

 

(b)                                                                                 This Note is a legally binding obligation
of the Company, enforceable against the Company in accordance with the terms
hereof, except to the extent that (i) such enforceability is limited by
bankruptcy, insolvency, reorganization, moratorium or other laws relating to or
affecting generally the enforcement of creditors’ rights, and (ii) the
availability of the remedy of specific performance or in injunctive or other
equitable relief is subject to the discretion of the court before which any
proceeding therefore may be brought.

 

2

 

6.                                       Use of Proceeds.  The proceeds received by the
Company from the sale of this Note shall be used by the Company for working
capital, redemption or repayment of debt or other general corporate purposes.

 

7.                                       No Waiver in Certain Circumstances.  No course of dealing of Holder
nor any failure or delay by Holder to exercise any right, power or privilege
under this Note shall operate as a waiver hereunder and any single or partial
exercise of any such right, power or privilege shall not preclude any later
exercise thereof or any exercise of any other right, power or privilege
hereunder.

 

8.                                       Certain Waivers by the Company.  Except as expressly provided
otherwise in this Note, the Company and every endorser or guarantor, if any, of
this Note waive presentment, demand, notice, protest and all other demands and
notices in connection with the delivery, acceptance, performance, default or
enforcement of this Note, and assent to any extension or postponement of the
time of payment or any other indulgence, to any substitution, exchange or
release of collateral available to Holder, if any, and to the addition or
release of any other party or person primarily or secondarily liable.

 

9.                                       No Unlawful Interest.  Notwithstanding anything herein
to the contrary, payment of any interest or other amount hereunder shall not be
required if such payment would be unlawful.  In any such event, this Note
shall automatically be deemed amended so that interest charges and all other
payments required hereunder, individually and in the aggregate, shall be equal
to but not greater than the maximum permitted by law.  As a condition to
its obligation to make any payment of interest hereunder without withholding as
may otherwise be required under applicable U.S. tax laws, the Company may
require that the Holder submit to the Company a properly completed IRS Form W-8
or similar or successor form sufficiently demonstrating to the reasonable
satisfaction of the Company that no such withholding is required.

 

10.                                 Representations, Warranties and
Covenants of Holder .  By accepting this Note, Holder represents and
warrants to the Company, and agrees, as follows:

 

(a)                                                                                  The principal address of Holder is
outside of the United States, and Holder is not a U.S. Person as such term is
defined and used in Regulation S.

 

(b)                                                                                 At the time the “buy” order was
originated in respect of Holder’s acquisition of this Note, Holder was outside
of the U.S., and Holder is outside the U.S. as of the date of the execution and
delivery of this Note by Holder.  No offer to acquire this Note was made
to Holder or its representatives inside the United States.

 

(c)                                                                                  Holder is an “accredited investor” within
the meaning of Rule 501(a) under the Securities Act.

 

(d)                                                                                 Holder is acquiring this Note and will
acquire any Conversion Shares for his/her/its own account, not on behalf or for
the account of any U.S. Person, and neither the purchase of this Note nor the
acquisition of the Conversion Shares has been pre-arranged with a purchaser in
the U.S.

 

(e)                                                                                  The Holder will make all resales of this
Note and any Conversion Shares only outside of the United States in compliance
with Regulation S, or pursuant to a registration statement under the Securities
Act, or pursuant to an available exemption from registration under the
Securities Act.  Specifically, Holder will not resell this Note or any
Conversion Shares to any U.S. Person or within the United States prior to the
expiration of one year (the “Distribution Compliance
Period “) after the closing of the offering to which this Note
relates, except pursuant to registration under the Securities Act or an
exemption from registration under the Securities Act.

 

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(f)                                                                                    Holder will not engage in any hedging
transactions with respect to this Note or the Common Stock of the Company at
any time prior to the expiration of the Distribution Compliance Period, except
in compliance with the Securities Act.

 

(g)                                                                                 The Company is and will be relying on the
truth and accuracy of Holder’s representations, warranties, agreements,
acknowledgements and understandings as set forth herein, in order to determine
the applicability of such exemptions and the suitability of Holder and
his/her/its acquisition of the Note and Conversion Shares upon conversion
hereof.

 

(h)                                                                                  Holder has been furnished with, or has
acquired, copies of all of the documents filed by the Company with the United
States Securities and Exchange Commission during the twelve months prior to the
date hereof, as well as all other documents made available by the Company for
public dissemination during the same period, including, but not limited to,
press releases, and Holder has been provided all necessary and appropriate
information about the Company to make an informed investment decision with
respect to the acquisition of this Note.

 

(i)                                                                                     Holder has sufficient knowledge and
experience in financial and business matters and is capable of evaluating the
risks and merits of Holder’s investment in the Company; Holder has been
provided the opportunity to make all necessary and appropriate inquiries of the
Company regarding Company’s business and associated risks, and Company has
complied with all such requests; and Holder is able financially to bear the
risk of losing Holder’s full investment in this Note.

 

(j)                                                                                     The Note is being acquired and any
Conversion Shares will be acquired in a transaction not involving a public
offering within the United States within the meaning of the Securities Act, and
Holder understands that this Note has not been and will not be, and any
Conversion Shares have not been and may not be, registered under the Securities
Act or registered or qualified under any the securities laws of any state or
other jurisdiction, are and will be “restricted securities” and cannot be
resold or otherwise transferred unless they are registered under the Securities
Act, and registered or qualified under any other applicable securities laws, or
an exemption from such registration and qualification is available.  Prior
to any proposed transfer of this Note or any Conversion Shares, Holder shall,
among other things, give written notice to the Company of Holder’s intention to
effect such transfer, identifying the transferee and describing the manner of
the proposed transfer and, if requested by the Company, accompanied by (i) investment
representations by the transferee similar to those made by Holder in this Section 10
and (ii) an opinion of counsel satisfactory to the Company to the effect
that the proposed transfer may be effected without registration under the
Securities Act and without registration or qualification under applicable state
or other securities laws.  Each certificate for any Conversion Shares
shall bear a legend  similar to that set forth on Page 1 of this Note
(insofar as applicable) and otherwise referring to reiterating the restrictions
on transfer and other terms hereof applicable to the Conversion Shares upon
issuance.

 

(k)                                                                                  Holder understands that no U.S. federal
or state government or agency has passed on or made any recommendation or
endorsement of offering for sale or the sale of this Note, or with respect to
the Conversion Shares.

 

(l)                                                                                     Holder acknowledges that this Note is one
of several similar notes (collectively the “ Offered
Notes ”) in the
aggregate principal amount of up to $10000,000, or at the option of the
Company, a greater amount; and that there is no restriction imposed hereby upon
the Company in respect of the incurring by the Company of additional debt or
the issuance by the Company of additional debt or equity securities, or
otherwise.

 

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11.                                 Anti-dilution.  If the Company executes a stock
split, reverse stock split, or re-capitalization, or makes a dividend or other
distribution in cash or shares on Common Stock, or reclassifies all or part of
its outstanding Common Stock (any of the foregoing a “ Dilution Transaction ”), the Note
Conversion Rate and Threshold Amount specified in Section 3(a) above
shall each be equitably and proportionately adjusted so that this Note shall be
converted as of the same date as it would have otherwise converted had such
Dilution Transaction not occurred, and so that the Holder of this Note shall
upon conversion following a Dilution Event be entitled to receive the number
and kind of shares of Common Stock that such Holder would have owned or have
been entitled to receive immediately prior to the happening of a Dilution
Transaction and then, following such conversion, subsequently subjected to the
effect thereof.

 

12.                                   Registration.   Upon the
request of Holder or of any holder of any of the other Offered Notes
(collectively, the “ Offered Noteholders”
following the first to occur of the conversion of this Note and the conversion
of any of the Offered Notes and the issuance of Conversion Shares hereunder or
thereunder and as defined therein, and provided that the Company shall then be,
or if not, at such time thereafter as the Company shall become, eligible to
effect the registration pursuant to the Securities Act of the shares of Common
Stock issued or issuable hereunder or upon conversion of the other Offered
Notes (collectively, the “ Registrable Securities ”)
on Form S-3 or on another  “short form” registration statement, the
Company shall use commercially reasonable efforts to effect registration
pursuant to the Securities Act, of the Registrable Securities or the resale
thereof by the Offered Holders on Form S-3 or on another short form
registration statement.  The Company shall have no obligation hereunder to
effect any such registration at any time which, as determined by the Company,
neither Form S-3 nor any other similar short-form registration statement
is available therefor, nor shall the Company have any obligation to maintain
the effectiveness of such registration statement for more than one year. 
The Company may delay the filing of any such registration statement as a result
of constraints or restrictions under applicable law so requiring as determined
by the Company, or suspend the effectiveness of any such registration statement
and/or require by written notice that the Offered Noteholders immediately cease
sales of shares in the event that from time to time (i) the Company files
another registration statement (other than a registration statement on Form S-8
or its successor form) under the Securities Act for a then pending or
anticipated public offering of its securities, or (ii) an event has
occurred, or the Company has entered into a transaction, which the Company
determines in good faith must be disclosed in order for the Company to comply
with the public disclosure requirements imposed on the Company under the Securities
Act.  The Company shall not be required to include any Registrable
Securities in any such registration statement unless the Holder (i) provides
to the Company in a timely manner such information regarding the Holder as is
required by the Securities Act to be included in the registration statement or
provided to the Company, (ii) shall have provided to the Company its
written agreement (x) to indemnify the Company and each of its officers,
directors and agents against, and to hold the Company and its officers,
directors and agents harmless from, any losses, claims, damages, expenses or
liabilities (including reasonable attorneys fees) to which the Company or any
of its officers, directors or agents may become subject by reason of any
statement or omission in the registration statement made in reliance upon, or
in conformity with, a written statement by such Holder furnished pursuant
hereto or any failure of Holder to comply with the provisions of this Section 12,
and (y) to report to the Company sales made pursuant to the registration
statement.

 

13.                                 Security Interest.  The Company’s obligations under
this Note and the other Offered Notes are secured by a grant of, and the
Company does hereby grant to the Holder (and has similarly granted or is or
will similarly grant to the other Offered Noteholders in respect of the
obligations under the other Offered Notes), subject to the terms, provisions
and limitations hereof, a security interest in (the “Collateral”) all tangible
and intangible assets of the Company now existing or hereafter arising
(together with products and proceeds), other
than and in any event excluding :

 

(i) all tangible and
intangible assets which are the subject of any security interest previously
granted by the Company which would prohibit or conflict with a grant of a
security interest hereunder or under the other Offered Notes, and in any event
and without regard to whether or not so prohibited or conflicting, excluding
all tangible and intangible assets which are the subject of a security interest
previously granted by the Company in favor of Boston Scientific Corporation,
and

 

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(ii) whether now or
hereafter existing or arising, all (a) leases and other contracts, (b) licenses
(including licenses to software and intellectual property), (c) rights of
the Company under such leases, other contracts and licenses, (d) property,
if any, that is or becomes the subject of such leases, other contracts or
licenses, and (e) without limiting (a) through (c), collaborative
arrangements by and between the Company and any third party and any and all
interests or rights of the Company in respect of the assets related thereto.

 

The security interest
granted hereby, and any corresponding lien, is and shall be further subject and
subordinate to any security interest and lien granted by the Company in the
Collateral and established at any time or from time to time in the future as
part of any financing arrangements that may be entered into by and between the
Company and any bank or financial institution, and shall rank pari passu and
shall be deemed hereby and thereby to be spread with the security interests
otherwise granted and liens established or created in the Collateral pursuant
to or as contemplated by the other Offered Notes or any other convertible debt
securities of the Company as may be issued from time to time and which so
expressly provide, and the Holder by accepting this Note does hereby expressly
consent thereto, it being the intention of the Company and the Holder that the
security interest hereby granted, and any corresponding lien established or
created, shall rank in right of priority (subject in any event to the limits
and exclusions otherwise herein provided) in respect of the Collateral senior
only to the general unsecured indebtedness and other unsecured obligations of
the Company now or hereafter existing, pari passu with the security interests
granted and liens established or created pursuant to or as contemplated by the
other Offered Notes and any other convertible debt securities of the Company as
may be issued from time to time and which so expressly provide, and junior to
any other lien created or security interest granted by the Company.

 

In the event Company
fails to perform any of its repayment obligations under this Note, and such
default is continuing for a period of 10 business days after written notice
from Holder to the Company (“Default”), Holder may accelerate repayment of the
Principal plus any accrued interest and exercise, without further notice, all
rights and remedies under this Note or enforce any rights otherwise
available.  In the case of such Default, Holder shall give the Company not
less than 60 business days prior written notice of its intended disposition of
the Collateral; provided, however, if Company cures such Default prior
to expiration of such notice period, Default will be not deemed to have
occurred and Holder shall have no rights to accelerate repayment or enforce the
Collateral.  For the purpose of enforcing any and all rights and remedies
under this Note, Holder may (i) require the Company to, upon Holder’s easonable
request, assemble all or any part of the Collateral as directed by the Holder
and make it available to Holder during normal business hours at the Company’s
headquarters, (ii) to the extent permitted by applicable law, enter,
without breach of the peace, any premises where any such Collateral is or may
be located and, reasonably seize and remove such Collateral from such premises,
(iii) direct the Company to reasonably provide relevant information from
the Company’s books and records relating to the Collateral, and (iv) prior
to the disposition of any of the Collateral, store or transfer the Collateral,
process, repair or recondition such Collateral or otherwise prepare it for
disposition in any manner and to the extent Holder deems reasonably
appropriate.  Notwithstanding anything to the contrary herein, the
security interest granted hereby is expressly limited to the Final Payment
Amount outstanding under this Note and Holder shall exercise the foregoing
rights in such a fashion so as to minimize disruption to Company and its
business operations and only to the extent necessary to recover such unpaid
Final Payment Amount.  Holder and the Company shall work in good faith to
effectuate the intent of the previous sentence.  The security interest
granted hereby and any corresponding lien created or established, shall
terminate and expire upon payment in full of the Final Payment Amount or upon
the occurrence of the Conversion Date, which ever first occurs, and without
further action on the part of the Company or Holder.  Holder will execute
any documents or instruments the Company may reasonably request to evidence
such expiration.  All rights and remedies of the Holder hereunder shall be
exercised in a manner which recognizes rights of the other Offered Noteholders
in respect of the Collateral and in respect of the lien and payment priority
provided for hereunder.

 

By acceptance of this
Note, Holder acknowledges and agrees that (i) certain assets of the
Company are excluded from the security interest granted hereby, (ii) the
security interest granted to Holder

 

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pursuant hereto, and any corresponding lien created or
established, is and shall be subject and subordinate to any lien and security
interest heretofore or hereafter granted by the Company or created and
established as part of any financing arrangement that may be entered into by
and between the Company and any bank or financial institution and, subject in
any event to the limits and exclusions otherwise herein provided, such lien and
security interest shall rank senior only to the general unsecured indebtedness
and other unsecured obligations of the Company now or hereafter existing, (iii) the
Company is issuing or may issue the other Offered Notes, and in addition
thereto may also issue from time to time in the future other convertible debt
securities, and has granted or may grant in connection with the issuance of the
other Offered Notes or such other convertible debt securities, security
interests in the Collateral which may, and the lien in respect of which may,
rank pari passu in priority with the security interest granted hereby, and
Holder does hereby consent to the grant by the Company of such security
interests and the establishment and creation of such liens.  Holder shall
perform, from time to time, such acts, and shall execute, acknowledge and/or
deliver such other instruments, documents and agreements as the Company
reasonably may request in order to consummate the transactions provided for in
this Note.  Without limiting the foregoing, by accepting this Note the
Holder does expressly consent to the aforesaid ranking in respect of lien priority
and subordination and agrees to perform, from time to time, such acts, and to
execute, acknowledge and/or deliver such instruments, documents and agreements,
as may from time to time be requested by the Company, or as may from time to
time otherwise be reasonably requested, necessary or required, to so confirm or
provide.

 

14.                                 Miscellaneous.  No modification, rescission,
waiver, forbearance, release or amendment of any provision of this Note shall
be made, except by a written agreement duly executed by each of the Company and
Holder.  This Note may not be conveyed, assigned or transferred by Holder
without the prior written consent of the Company.  Any permitted
subsequent Holder of this Note shall be deemed, by accepting this Note, to have
made and reaffirmed to the Company each and every of the acknowledgements,
consents, agreements, representations, warranties and covenants of the original
Holder hereof.  All notices hereunder shall be in writing and be deemed
given if personally delivered, sent by overnight courier (provided proof of
delivery is received) or sent by telecopy (provided a confirmation of
transmission is received) at the addresses of the respective parties set forth
in the initial paragraph of this Note or such other address as either party
shall notify the other of from time to time.  The Company hereby submits
to personal jurisdiction in the State of Maryland, consents to the jurisdiction
of any competent state or federal district court sitting in the County of
Montgomery County, Maryland, and waives any and all rights to raise lack of
personal jurisdiction as a defense in any action, suit or proceeding in
connection with this Note or any related matter.  This Note shall be
governed by, and construed and interpreted in accordance with, the laws of the
State of Maryland, without reference to conflicts of law provisions of such
state.

 

IN WITNESS WHEREOF, the undersigned have caused this
Note to be executed and delivered by a duly authorized officer as of the date
first above written.

 

	
   

  	
  Osiris
  Therapeutics, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
  ACCEPTED as of
  the date first above written:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Holder:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
					

 

7Exhibit 10.58

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (“Agreement”) is made
effective as of April 24, 2008 (“Effective Date”), by and between Averion
International Corp. (“Company”) and Lawrence R. Hoffman (“Employee”).

 

RECITALS

 

A.           Company desires to continue to retain
the services of Employee, and Employee is willing to provide such services to
the Company.

 

B.            Company and Employee desire to enter
into this Agreement to provide for Employee’s employment by the Company, upon
the terms and conditions set forth herein.

 

The parties hereby agree as follows:

 

1.            Duties.

 

1.1.       Position.  Employee shall serve as Chief Financial
Officer of the Company starting on May 12, 2008 and shall have the duties
and responsibilities incident to such position. 
Employee shall perform faithfully, cooperatively and diligently all of
his job duties and responsibilities. 
Employee agrees to and shall devote his full time, attention and effort
to the business of the Company, its subsidiaries and affiliates, and other assignments
as directed by the Company’s Chief Executive Officer or Board of
Directors.  Employee shall report
directly to the Company’s Chief Executive Officer.

 

1.2.       Best Efforts.  Employee will expend his best efforts on
behalf of Company in connection with his employment and will abide by all
policies and decisions made by Company, as well as all applicable federal,
state and local laws, regulations or ordinances.  Employee will notify the
Company in writing of any current or future board positions or outside
activities, including charitable work. 
With the exception of charitable work, no outside boards or consulting
or other assignments may be accepted without Company approval, which can be
withheld at Company’s sole discretion.

 

1.3.       Location.  Employee’s employment hereunder will be based
primarily at the Company’s offices located in Southborough, Massachusetts,
U.S.A.  Employee is expected to work at
the Company offices at least four full work days per week when not on vacation
or taking personal or sick time.

 

2.            Employment.  Employee’s employment under this Agreement
will continue until such time as the Company or Employee terminate this
Agreement in accordance with the provisions of Section 11 and Section 19.8,
subject to Employee’s right to receive the Change of Control Severance Benefits
as set forth in Section 8.

 

 

3.            Compensation.

 

3.1.       Base Salary.  As compensation for Employee’s performance of
his duties hereunder, Company shall pay to Employee an initial base salary of
Ten Thousand Twenty Eight Dollars and Forty Six Cents ($10,028.46) per each two
week pay period which, if annualized, would represent Two Hundred Sixty
Thousand Seven Hundred Forty Dollars ($260,740) per year (“Annual Base Salary”),
payable in accordance with the normal payroll practices of Company, less
required deductions for state and federal withholding tax, social security and
all other employment taxes and payroll deductions.  The Board of Directors, or the compensation
committee thereof, may increase the Annual Base Salary, at its sole discretion,
from time to time.

 

3.2.       Bonus.  In addition to the Annual Base Salary,
Employee shall be eligible to receive, in the sole discretion of the Board of
Directors or the compensation committee thereof, an annual cash bonus of up to
fifty percent (50%) of the then in effect Annual Base Salary, in accordance
with, and based upon, overall Company and individual performance standards to
be established by the Board of Directors or the compensation committee thereof
on an annual basis.

 

3.3.       Stock Options.  Employee, at the sole discretion of, and upon
approval by, the Company’s Board of Directors or the compensation committee
thereof, shall be eligible to receive an option to purchase up to 10,000,000
shares of the Company’s common stock pursuant to an option agreement issued in
accordance with the terms of the Company’s 2005 Equity Incentive Plan.  Such option shall have an exercise price
equal to the fair market value of a share of the Company’s common stock on the
date of grant and shall vest at the rate of twenty-five percent (25%) per
completed year.  Employee shall also be
eligible to receive additional stock options, restricted stock or other equity
incentive grants pursuant to one or more equity incentive plans offered by the
Company from time to time, subject to the approval of the Board of Directors or
the compensation committee thereof.

 

4.            Health and
Welfare Benefit Plans.  The Employee
and/or the Employee’s family, as the case may be, shall be eligible for
participation in and shall receive all benefits under health and welfare
benefit plans, practices, policies and programs provided by the Company
(including, without limitation, medical prescription, dental disability, salary
continuance, employee life, group life, accidental death and travel accident
insurance plans and programs) to the extent generally applicable to employees
of the Company.

 

5.            Other Benefits.

 

(a)           Employee shall be eligible to receive
all customary and usual fringe benefits and shall be entitled to participate in
all savings and retirement plans, practices, policies and programs generally
applicable to employees of the Company that are in effect during Employee’s
employment with the Company, subject to the terms and conditions of Company’s
benefit plan documents, as applicable. 
Company reserves the right to change or eliminate the fringe benefits or
plans, practices and programs on a company-wide, prospective basis, at any
time;

 

2

 

(b)          Employee shall be paid a car allowance
of $500 per month;

 

(c)           Subject to Section 1 above and
advance approval from the Company for specific authorization of each instance,
Employee shall be entitled to work from a home office, at no cost to the
Company, as is reasonably necessary to perform Employee’s duties hereunder.

 

6.            Business
Expenses.

 

6.1.       Employee shall be entitled to receive
prompt reimbursement for all reasonable, out-of-pocket business expenses
incurred in the performance of his duties on behalf of Company, including, without
limitation, cell phone (which shall not require pre-approval) use.

 

6.2.       Employee shall be entitled to receive
prompt reimbursement for one round trip airline ticket for travel between
Philadelphia, PA and Boston, MA per work week providing such airline tickets
are purchased fourteen (14) days in advance. Employee, at his option, may drive
from his Yardley, PA home to Southborough, MA and receive reimbursement for
mileage and tolls in an amount not to exceed the cost of a round trip airline
ticket from Philadelphia, PA to Boston, MA purchased fourteen (14) day in
advance.  The mileage reimbursement rate
shall be in accordance with such rate as set forth in the regulations of the
Internal Revenue Service.

 

6.3.       The Company will pay the rental cost for
an executive apartment acceptable to the Company at or near the Company’s
headquarters in Southborough, Massachusetts or, in the alternative, will
reimburse Employee for up to five (5) nights accommodations per work week
at the Sheraton Framingham Hotel at the Company’s preferred corporate rate.

 

6.4.       To obtain reimbursement as provided in
this Section 6, expenses must be submitted promptly with appropriate
supporting documentation in accordance with the Company’s policies.

 

7.            Vacation.  Employee shall be entitled to an aggregate of
twenty three (23) days of paid time off and floating holidays each calendar
year, in accordance with the Company’s plans, policies and programs then in
effect.

 

8.            Termination;
Severance Benefits.  Either Company
or Employee may terminate this Agreement at any time with or without Cause or
with or without Good Reason.  For
avoidance of doubt, no Severance Benefits shall be due or payable under this Section 8
in the absence of a Change of Control as defined in Section 10.4 or, even
in connection with a Change of Control, if the Employee is terminated for Cause
as defined in Section 10.2 or if Employee resigns other than for Good
Reason as defined in Section 10.4.

 

8.1.       Severance Benefits Upon Change of
Control.  If, following or in connection
with a Change of Control, (i) the Company terminates Employee’s employment
without Cause, or (ii) Employee resigns as an employee of the Company for
Good Reason, the Company agrees to provide Employee with the Change of Control
Severance Benefits described in this Section 8.1 in accordance with the
payment schedule set forth in Section 8.2 

 

3

 

below, provided Employee agrees
to comply with all of the conditions set forth in Section 8.3 below.  The “Change of Control Severance Benefits”
will consist of:

 

(a)           all
Accrued Obligations (defined below);

 

(b)           a “Change
of Control Severance Payment” equal to the sum of (i) twelve (12) months
of Employee’s then in effect Base Salary (or, if Employee’s Base Salary has
been reduced within 60 days of the termination or at any time after a Change of
Control, Employee’s base salary in effect prior to the reduction), plus (b) Employee’s
target bonus for the current year or for the year immediately prior to the Change
of Control, whichever is higher; and

 

(c)           Upon
termination of employment, the Employee will be allowed to continue in the
Company’s group health insurance plan at the Employee’s own expense for up to
eighteen (18) months, in accordance with applicable law (COBRA).  However, if the Employee elects COBRA
coverage, the Company will pay the first twelve (12) months of COBRA coverage;
provided that the Employee shall pay any such premiums himself during the six (6) month
period following the Employee’s “separation from service” as defined in Section 409A(a)(2)(A)(i) of
the U.S. Internal Revenue Code (the “Code”) and the Company shall reimburse the
Employee for payment of such premiums in a single lump sum payment on the first
day of the seventh (7th) month following the Employee’s “separation
from service,” if (1) Section 9.1 of this Agreement shall apply and (2) no
exemption from Section 409A of the Code, as mutually determined by the
Company, Company’s tax counsel, Employee and Employee’s tax counsel, shall otherwise
apply to the Company’s payments for COBRA coverage during such six (6) month
period. In the event such premium payments are permitted without violating the
special rule applicable to nonqualified deferred compensation, the Company
shall directly pay such premiums on behalf of the Employee during the first
twelve (12) months of COBRA coverage.

 

(d)           To
the extent not otherwise provided for under the Company’s stock plans, all
options to purchase Company stock held by Employee will become exercisable and
remain exercisable for the period of time set forth in the instruments
governing such options, and all restricted stock held by Employee under
restricted stock plans and arrangements of the Company will become vested.

 

8.2.          Payments.

 

(a)           The
Change of Control Severance Benefits will be paid less required deductions for
state and federal withholding tax, social security and all other employment
taxes as required by law.  The Accrued
Obligations defined in Section 10.1 will be paid in a single lump sum payment
on the date that is thirty (30) days after the Date of Termination, unless
otherwise required by law; provided that the conditions to receive the Change
of Control Severance Benefits set forth in Section 8.3 of this Agreement
are then satisfied.  The Change of 

 

4

 

Control Severance Payment described in Section 8.1(b) will be
paid in a single lump sum within thirty (30) days after the Date of
Termination; provided, however, that Employee may in his sole
discretion elect to have such payment made in equal monthly installments for a
period of twelve (12) months (the “Severance Period”), with the first such
installment to be paid on the first day of the month that coincides with or
follows the date that is thirty (30) days after the Date of Termination. All
amounts payable by the Company hereunder shall be paid without notice or
demand.  The Employee shall not be
obligated to seek other employment in mitigation of the amounts payable or
arrangements made under any provision of this Agreement, and the obtaining of
any such employment shall in no event effect any reduction of the Company’s
obligations to make the payments and arrangements required to be made under
this Agreement.

 

(b)           If
a payment under this Agreement is payable to a minor, to a person declared
incompetent, or to a person incapable of handling the disposition of his or her
property, the Company may pay such benefit to the guardian, legal
representative or person having the care or custody of such minor, incompetent
person or incapable person.  The Company
may require proof of incompetence, minority or guardianship as it may deem
appropriate prior to distribution of the benefit.  Such distribution shall completely discharge
the Company from all liability with respect to such benefit.

 

8.3.       Conditions to Receive Severance
Benefits.  Employee will receive the
Change of Control Severance Benefits described above only if he complies with
all of the following conditions and continues to comply with the following for
the duration of the Severance Period:

 

(a)           Employee
executes a full general release in favor of the Company (the “General Release”)
in the form attached hereto as Exhibit A;
and

 

(b)           Employee
complies with the Company’s then in effect trade secrets policies and the
Employee Proprietary Information and Inventions Agreement (the “Information and
Inventions Agreement”), attached hereto as Exhibit B,
or any future version of an inventions and proprietary information agreement
between Employee and the Company in accordance with the terms thereof.

 

(c)           Employee
complies with Employee’s obligations under this agreement including, without
limitation, the obligation set forth in Sections 13 (“Confidentiality and
Proprietary Rights”), 14 (“Noncompetition”), 15 (“Nonsolicitation of
Customers”), 16 (“Nonsolicitation of Employees”), 17 (“Nondisparagement”).

 

The Company’s obligation to make payments under this Section 8
shall cease if at any time Employee is not in compliance with any of the
foregoing agreements.

 

5

 

9.            Section 409A
of the U.S. Internal Revenue Code.

 

9.1.       The Specified Employee Rule.  To the extent any amount payable under this
Agreement represents a payment under a “nonqualified deferred compensation plan”
(as defined in Section 409A of the Code following a termination of
employment or any “separation from service” as defined in Section 409A(a)(2)(A)(i) of
the Code), then, notwithstanding any other provision of this Agreement to the
contrary, such payment shall be delayed and made on the first day of the
seventh (7th) month following Employee’s “separation from service,” but only if
the Employee is deemed to be a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of
the Code.

 

9.2.       Good Faith Intention.  The Company and Employee intend in good faith
that this Agreement comply with the applicable requirements of Section 409A
of the Code and that this Agreement be construed, interpreted and administered
in accordance with such intent.  If the
Company or Employee believes, at any time, that this Agreement does not comply
with Section 409A of the Code, it will promptly advise the other party and
will negotiate reasonably and in good faith to amend the terms of this
Agreement, with the most limited possible economic effect on Company and
Employee, such that it complies with Section 409A of the Code.

 

10.          Definitions.

 

10.1.     Accrued Obligations.  For purposes of this Agreement, “Accrued
Obligations” shall mean:  (i) payment
of Employee’s Annual Base Salary through the Date of Termination to the extent
not theretofore paid; (ii) payment of any accrued vacation pay not yet
paid by Company; and (iii) payment of outstanding and unpaid business
expenses described in Section 6 herein.

 

10.2.     Cause.  For purposes of this Agreement, “Cause” shall
mean: (i) any willful, material violation of any law or regulation
applicable to the business of the Company or any subsidiary of the Company; (ii) conviction
for, or guilty plea to, a felony or a crime involving moral turpitude, or any
willful perpetration of a common law fraud; (iii) commission of an act of
personal dishonesty which involves personal profit in connection with the
Company or any subsidiary of the Company, or any other entity having a business
relationship with the Company or any subsidiary of the Company; (iv) any
material breach of any provision of any agreement or understanding between the
Company or any subsidiary of the Company and Employee regarding the terms of
Employee’s service as an employee, officer, director or consultant to the
Company or any subsidiary of the Company, including without limitation, the
willful and continued failure or refusal to perform the material duties
required of Employee as an employee, officer, director or consultant of the
Company or any subsidiary of the Company (other than as a result of disability)
or a material breach of any applicable creative works assignment and
confidentiality agreement or similar agreement between the Company or any
subsidiary of the Company and Employee and such is not cured within fifteen
(15) days after notice of such breach from the Company to Employee; or (v) disregard
of the policies of the Company or any subsidiary of the Company, so as to cause
material loss, damage or injury to the property, reputation or employees of the
Company or any subsidiary of the Company if Employee has been given a
reasonable opportunity to comply with such policy or cure his failure to
comply.

 

6

 

10.3.     Good Reason.  For purposes of this Agreement, “Good Reason”
shall mean:

 

(a)           A substantial diminution in Employee’s
position, authority, duties or responsibilities as contemplated by Section 1
of this Agreement, excluding non-substantial changes in title or office, and
excluding any isolated, insubstantial and inadvertent action not taken in bad
faith and which is remedied by Company promptly after receipt of written notice
thereof given by Employee;

 

(b)          Any failure by Company to comply with
any of the provisions of Section 3 of this Agreement, other than an
isolated, insubstantial and inadvertent failure not occurring in bad faith and
which is remedied by Company promptly after receipt of written notice thereof
given by Employee;

 

(c)           Any reduction in Employee’s Base
Salary that is not a part of Company-wide reductions in salary including
international affiliates and subsidiaries; or

 

(d)          That Employee is no longer reporting
directly to the Chief Executive Officer or Executive Chairman of the Company (or
any surviving entity) for any reason including following a Change of Control.

 

10.4.     Change of Control.  For purposes of this Agreement, “Change of
Control” means the occurrence, in a single transaction or in a series of
related transactions, of any one or more of the following events:

 

(a)           there is consummated
a merger, consolidation or similar transaction involving (directly or
indirectly) the Company if, immediately after the consummation of such merger,
consolidation or similar transaction, the stockholders of the Company
immediately prior thereto do not own, directly or indirectly, either: (i) outstanding
voting securities representing more than fifty percent (50%) of the combined
outstanding voting power of the surviving entity in such merger, consolidation
or similar transaction; or (ii) more than fifty percent (50%) of the
combined outstanding voting power of the parent of the surviving entity in such
merger, consolidation or similar transaction;

 

(b)          the stockholders of
the Company approve or the Board of Directors approves a plan of complete
dissolution or liquidation of the Company, or a complete dissolution or
liquidation of the Company shall otherwise occur; or

 

(c)           there is consummated a sale of all or substantially all of
the consolidated assets of the Company and its subsidiaries, other than a sale
of all or substantially all of the consolidated assets of the Company and its
Subsidiaries to an entity more than fifty
percent (50%) of the combined voting power of the voting securities of
which entity is owned by stockholders of the Company in substantially the same
proportion as their ownership of the Company immediately prior to such sale.

 

7

 

Notwithstanding the foregoing, the term “Change of Control” shall not
include a sale of assets, merger or other
transaction effected exclusively for the purpose of raising capital for the
Company or changing the domicile of the Company.

 

11.          Notice of
Termination.  Any termination by
Company for Cause or by Employee for Good Reason shall be communicated by a “Notice
of Termination” to the other party hereto given in accordance with Section 19.6
of this Agreement. For purposes of this Agreement, a “Notice of Termination”
means a written notice which:  (i) indicates
the specific termination provision in this Agreement relied upon; (ii) to
the extent applicable, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of Employee’s
employment under the provision so indicated; and (iii) if the Date of
Termination (as defined below) is other than the date of receipt of such
notice, specifies the termination date (which date shall be not more than
fifteen (15) days after the giving of such notice).  The failure by Employee or Company to set
forth in the Notice of Termination any fact or circumstance which contributes
to a showing of Good Reason or Cause, as the case may be, shall not waive any
right of Employee or Company hereunder or preclude Employee or Company from asserting
such fact or circumstance in enforcing Employee’s or Company’s rights
hereunder.  Any termination Employee
without Good Reason must be preceded by sixty (60) days’ advance written notice
in accordance with the terms of Sections 11 and 19.6 of this Agreement.

 

12.          Date of
Termination.  “Date of Termination”
means the date of death, disability or the date of delivery of the Notice of
Termination or any later date specified therein, as the case may be; provided,
however, that if Employee resigns without Good Reason, the Date of Termination
shall be at least sixty (60) days after the date of the applicable Notice of
Termination.

 

13.          Confidentiality
and Proprietary Rights.  Employee
agrees to continue to abide by the Information and Inventions Agreement, which
is attached to this Agreement as Exhibit B.

 

14.          Noncompetition.  Employee agrees that, during his employment
and during the one (1) year period immediately following termination of
his employment, Employee will not, directly or indirectly, compete, or
undertake any planning to compete, with the Company, anywhere in the world,
whether as an owner, partner, investor, consultant, employee or otherwise.
Specifically, but without limiting the foregoing, Employee agrees not to work
or provide services, in any capacity, whether as an employee, independent
contractor or otherwise, whether with or without compensation, to any Person
who is engaged in the provision of human clinical trial research services or
more specifically designated as a clinical research organization (CRO) that is
competitive with the business of the Company for which Employee has provided
services, as conducted or in planning during Employee’s employment.  Employee understands that the foregoing shall
not prevent Employee’s passive ownership of two percent (2%) or less of the
equity securities of any publicly traded company.

 

15.          Nonsolicitation of
Customers.  Employee agrees that,
during his employment and during the two (2) year period immediately
following termination of his employment, Employee will not directly or
indirectly (a) solicit or encourage any customer of the Company to
terminate or diminish its relationship with it; or (b) seek to persuade
any such customer or prospective customer of the Company to conduct with anyone
else any business or activity which such customer or prospective customer
conducts or could conduct with the Company.

 

8

 

16.          Nonsolicitation of
Employees.  Employee agrees that
during his employment and for the two (2) year period immediately
following termination of his employment, Employee will not, and will not assist
anyone else to, (a) hire or solicit for hiring any employee of the Company
or seek to persuade any employee of the Company to discontinue employment or (b) solicit
or encourage any independent contractor providing services to the Company to
terminate or diminish its relationship with it. 
For the purposes of this Agreement, an “employee” of the Company is any
person who was such at any time within the preceding two years.

 

17.          Nondisparagement.  Employee agrees not to disparage, defame or
make any negative or critical public statements, whether verbally or in
writing, regarding the personal or business reputation, technology, products,
practices or conduct of Company or any of Company’s officers or directors.  In addition, except as required by law,
Employee shall not make any public statements regarding Company without the
prior written approval of the Board of Directors.  Additionally, the Company agrees not to
disparage, defame or make any negative or critical public statements, whether
verbally or in writing, regarding the personal or business reputation of
Employee.

 

18.          Injunctive Relief.  Employee acknowledges that Employee’s breach
of the covenants contained in Sections 13 through 17 of this Agreement would
cause irreparable injury to Company and agrees that in the event of any such
breach, Company shall be entitled to seek temporary, preliminary and permanent
injunctive relief without the necessity of proving actual damages or posting
any bond or other security.

 

19.          General Provisions.

 

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

 

19.2.     Waiver.  The rights and remedies of the parties to
this Agreement are cumulative and not alternative.  Neither the failure nor any delay by any
party in exercising any right, power or privilege under this Agreement or the
documents referred to in this Agreement will operate as a waiver of such right,
power or privilege; and no single or partial exercise of any such right, power
or privilege will preclude any other or further exercise of such right, power
or privilege or the exercise of any other right, power or privilege.  To the maximum extent permitted by applicable
law, (i) no claim or right arising out of this Agreement or the documents
referred to in this Agreement can be discharged by one party, in whole or in
part, by a waiver or renunciation of the claim or right unless in writing
signed by the other party; (ii) no waiver that may be given by a party
will be applicable except in the specific instance for which it is given; and (iii) no
notice to or demand on one party will be deemed to be a waiver of any
obligation of such party or of the right of the party giving such notice or
demand to take further action without notice or demand as provided in this
Agreement or the documents referred to in this Agreement.

 

9

 

19.3.     Severability.  In the event any provision of this Agreement
is found to be unenforceable, invalid or illegal 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, invalid or illegal provision shall be deemed deleted,
and the legality, validity and enforceability of the remaining provisions shall
not be affected thereby.

 

19.4.     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 Employee has participated in the negotiation of
its terms.  Furthermore, Employee
acknowledges that Employee has had an opportunity to review the Agreement and
has had it reviewed and negotiated by legal counsel acting on his behalf, 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.

 

19.5.     Governing Law.  This Agreement will be governed by and
construed in accordance with the laws of the United States and the Commonwealth
of Massachusetts, without reference to its conflicts of laws principles.

 

The
Employee hereby agrees to submit to binding arbitration before the American
Arbitration Association (“AAA”), in accordance with AAA’s Commercial
Arbitration Rules (which means A WAIVER OF THE EMPLOYEE’S RIGHT TO SUE IN
COURT AND PROCEED BY A JUDGE OR JURY TRIAL) all disputes and claims arising out
of this Agreement.

 

19.6.     Notices.  All notices, consents, waivers and other
communications under this Agreement must be in writing and will be deemed to
have been duly given when (i) delivered by hand (with written confirmation
of receipt); (ii) sent by facsimile (with written confirmation of receipt);
or (iii) when received by the addressee, if sent by a nationally
recognized overnight delivery service, return receipt requested, in each case
to the appropriate addresses and facsimile numbers set forth below or on the
signature pages hereto (or to such other address as a party may designate
by notice to the other parties):

 

	
  If to AVERION:

  	
   

  	
  Averion International
  Corp.

  Attention: Chief Executive Officer

  225 Turnpike Road

  Southborough, MA 01772

  Telephone: (508) 597-6000

  Facsimile: (508) 597-5765

  
	
   

  	
   

  	
   

  
	
  with a required copy
  to:

  	
   

  	
  Foley &
  Lardner LLP

  Attention: Adam Lenain, Esq.

  402 West Broadway, Suite 2100

  San Diego, California 92101

  Telephone: (619) 234-6655

  Facsimile: (619)
  234-3510

  

 

10

 

	
  If to Employee:

  	
   

  	
  Lawrence Hoffman

  1362 Brentwood Road 

  Yardley, PA 19067

  
	
   

  	
   

  	
   

  
	
  With a required copy
  to:

  	
   

  	
   

  

 

or to such other address as either party shall have furnished to the
other in writing in accordance herewith.

 

19.7.        Counterparts; Facsimile.  This Agreement may be executed in one or more
counterparts, all of which when fully executed and delivered by all parties
hereto and taken together shall constitute a single agreement, binding against
each of the parties.  To the maximum extent
permitted by law or by any applicable governmental authority, any document may
be signed and transmitted by facsimile with the same validity as if it were an
ink-signed document.  Each signatory
below represents and warrants by his or her signature that he or she is duly
authorized (on behalf of the respective entity for which such signatory has
acted) to execute and deliver this instrument and any other document related to
this transaction, thereby fully binding each such respective entity.

 

19.8.        Survival.  Sections 8 (“Termination; Severance Benefits”),
10 (“Definitions”), 13 (“Confidentiality and Proprietary Rights”), 14 (“Noncompetition”),
15 (“Nonsolicitation of Customers”), 16 (“Nonsolicitation of Employees”),
17 (“Nondisparagement”), 18 (“Injunctive Relief”), 19 (“General Provisions”)
and 20 (“Entire Agreement”) of this Agreement shall survive Employee’s
employment by Company.  To the extent any
of these surviving terms conflict with any similar terms in Exhibit A or B
hereto, the terms which give the Company the broadest protections shall be
applied.

 

20.           Entire Agreement.  This Agreement, including the Information and
Inventions Agreement attached as Exhibit B,
and the Beneficiary Designation form attached hereto as Exhibit C
constitute the entire agreement between the parties relating to this subject
matter and supersede 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 Employee and the Company.  No oral waiver, amendment or modification
will be effective under any circumstances whatsoever.

 

[Remainder
of Page Intentionally Left Blank]

 

11

 

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.

 

 

	
  Dated:

  	
  24 April 2008

  	
   

  	
  EMPLOYEE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
      /s/
  Lawrence R. Hoffman 

  
	
   

  	
   

  	
   

  	
  Lawrence R. Hoffman

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
  9 May 2008

  	
   

  	
  AVERION INTERNATIONAL CORP.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
      /s/
  Philip T. Lavin 

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Philip T. Lavin 

  
	
   

  	
   

  	
   

  	
   

  	
  Title:   Executive Chairman

  

 

[Signature
Page to Hoffman Employment Agreement]

 

12

 

EXHIBIT A

FORM OF GENERAL RELEASE

 

GENERAL
RELEASE OF CLAIMS

 

By signing this General
Release of Claims (“Agreement”), I, Lawrence R. Hoffman, acknowledge that
Averion International Corp. (“Averion”) and I have reached a final binding
agreement as to the circumstances surrounding my separation from employment
with Averion.  Specifically, I
acknowledge that we have agreed on the following agreement and that this
document contains the entire agreement with respect to the subject matter
hereof:

 

1.             Termination.  My employment status with
Averion will terminate effective
                    
    , 20    .

 

2.             Severance.  In exchange for my entering
into this Agreement and in the event of a Change in Control, Averion will pay
me the applicable Severance Amount as defined in Section 8 of that certain
Employment Agreement dated December     , 2007 between
me and the Company (the “Employment Agreement”) in accordance with the terms
thereof.

 

3.             Release.  In return for the promises in Section 2
above, and contingent upon Averion’s ongoing fulfillment of its obligation
to:  (i) make timely severance
payments to me pursuant to and in accordance with Section 8 of the
Employment Agreement, (ii) pay me all amounts due pursuant to Section 3
of the Employment Agreement, and (iii) abide by its obligations under any
equity incentive option agreements between me and Averion, I on my own behalf,
and on behalf of my grantees, agents, representatives, heirs, devisees,
trustees, assigns, assignors, attorneys, or any other entities in which I have
an interest (collectively “Releasors”), hereby release and forever discharge by
this Agreement, Averion, and each of its past and present agents, employees,
representatives, officers, directors, shareholders, attorneys, accountants,
insurers, advisors, consultants, affiliates, assigns, successors, heirs,
predecessors in interest, joint ventures, and subsidiary, affiliate and
commonly-controlled entities (collectively “Releasees”), from all liabilities,
causes of actions, charges, complaints, suits, claims, obligations, costs,
losses, damages, rights, judgments, attorneys’ fees, expenses, bonds, bills,
penalties, fines, and all other legal responsibilities of any form whatsoever,
whether known or unknown, whether suspected or unsuspected, whether fixed or
contingent, liquidated or unliquidated, including but not limited to those
arising from or related to (i) my employment with, compensation by and/or
separation from Averion; and (ii) any acts or omissions occurring prior to
the date of this Agreement by any and all Releasees, including those arising
under any theory of law, whether common, constitutional, statutory or other of
any jurisdiction, foreign or domestic, whether known or unknown, whether in law
or in equity, which they had or may claim to have against any of the
Releasees.  Releasors specifically
release claims under all applicable state and federal laws, based on age, sex,
pregnancy, race, color, national origin, marital status, religion, veteran
status, disability, sexual orientation, medical condition, or other
anti-discrimination laws, including, without limitation, Title VII of the Civil
Rights Act of 1964 as amended, the Age Discrimination in Employment Act (Title
29, United States Code, Sections 621, et seq.) (“ADEA”),
the Americans with Disabilities Act, the Fair Labor Standards Act, and the
Family Medical Leave Act, as well as all common law claims, whether arising in
tort or contract (collectively referred to as “Released Matters”).  If any governmental agency should assume jurisdiction
over any claim, charge or complaint concerning alleged discrimination arising
out of my employment with Averion, Releasors also waive the right to recover
damages or any other remedy as a result of such claim, charge or complaint.  I acknowledge and agree that, following the
payment of the Severance Amount in accordance with Section 8 of the
Employment Agreement, Averion and Releasees have no other liabilities or
obligations, of any 

 

A-1

 

kind or nature, owed to me in connection with or relating to my
employment with the same.  I further
agree and promise that I will not file any lawsuit or administrative claim or
charge asserting any of the foregoing Released Matters.

 

4.             Release of Age Discrimination Claims.  I
understand that the general release in Section 3 above includes a waiver
of rights and claims which I may have arising under the ADEA.  I hereby represent that I have been advised
to consult with an attorney of my choosing regarding the waiver of rights and
claims under the ADEA.  I understand that
by signing this Agreement, I waive my rights or claims under the ADEA.  I further understand that I am not waiving rights
or claims under the ADEA that may arise after the effective date of this fully
executed Agreement.

 

5.             Waiver. 
I understand that even if I should eventually suffer some damage arising
out of my employment and/or separation from employment with Averion, that I
will not be able to make any claims for those damages, even as to claims which
may now exist, but which I do not know exist, and which if known would have
affected my decision to sign this Agreement.

 

6.             No Wrongdoing.  I
understand that, by signing this Agreement Averion does not admit any
wrongdoing.  I am also admitting no
wrongdoing by signing this Agreement.  We
agree that no use of this Agreement or any comments made by either party during
our settlement discussions will be used by us or any of our representatives in
connection with any subsequent legal action except for an action to enforce
this Agreement.

 

7.             Confidential Information.  I
understand that during my employment with Averion I had access to Averion
confidential information, including but not limited to, client and vendor
lists, financial data, marketing plans and sales techniques, that has or could
have value to Averion, which if disclosed could be detrimental to Averion, and
which Averion has taken reasonable steps to prevent from disclosure to the
general public.  In addition to any other
obligation of confidentiality to which I may be bound with respect to any
confidential information of Averion:

 

7.1.          I agree that I will not use, disclose or reveal to any
third party any Averion confidential information, regardless of whether or not
such information is marked as “confidential”.

 

7.2.          I agree that I have returned all Averion confidential or
proprietary information, documents, materials, apparatus, equipment, other
physical property or the reproduction of any such property to Averion that is
in my possession.

 

7.3.          I recognize that the unauthorized use or disclosure of
Averion’s confidential information is unlawful and that Averion may obtain
damages against me for any willful misappropriation, including damages and
attorney fees.

 

8.             Confidentiality of Agreement.  I
agree that the terms and conditions of this Agreement are confidential and
shall not be discussed, disclosed or revealed by me to any third party, except
to my attorneys, tax advisors and spouse, and except insofar as I am compelled
by law to disclose it.

 

9.             Non-Disparagement.  In
addition to any other non-disparagement agreement to which I may be bound, I
expressly agree that I will not in any way disparage or otherwise cause to be
published or disseminated any negative statements, remarks, comments or
information regarding Averion or any Releasee.

 

A-2

 

10.           General.  I acknowledge that I have
carefully read and fully understand the nature of this Agreement, that I have
been advised to consult with an attorney of my choosing before executing this
Agreement, that I have had the opportunity to consider this Agreement, and that
all of my questions concerning this Agreement have been answered to my
satisfaction.  I also agree that any rule of
construction to the effect that ambiguities are to be resolved against the
drafting party will not apply in the interpretation of this Agreement.  The provisions of this Agreement together
with the applicable provisions of the Employment Agreement and exhibits thereto,
set forth the entire agreement between me and Employer concerning my employment
with the same, my severance pay and benefits and my termination of
employment.  Any other promises, written
or oral, are replaced by provision of this Agreement, and are no longer
effective unless they are contained in this document or are expressly deemed to
survive the termination of my employment with Averion in accordance with the
terms of the written document in which they are contained.  I acknowledge that I have received all
compensation to which I am currently entitled through my separation date,
including, without limitation, salary, bonuses and vacation pay.

 

11.           Attorneys Fees.  If
any proceeding or action is brought by either party to enforce or interpret the
terms of this Agreement, the prevailing party in such proceeding or action
shall be entitled to recover from the other its costs of suit, including,
without limitation, reasonable attorneys’ fees.

 

12.           Governing Law.  This
Agreement will be governed by and construed in accordance with the laws of the
United States and the Commonwealth of Massachusetts, without reference to its
conflicts of laws principles.

 

I hereby agree to submit to binding arbitration
before the American Arbitration Association (which means A WAIVER OF THE
EMPLOYEE’S RIGHT TO SUE IN COURT AND PROCEED BY A JUDGE OR JURY TRIAL) all
disputes and claims arising out of this Agreement.  I further and understand and agree that I
shall execute Averion’s standard agreement to arbitrate, which is separate from
this Agreement and may be contained in Averion’s Employee Handbook.  This Agreement will be the exclusive method
to resolve all disputes or controversies that I or the Company may have,
whether or not arising out of my employment or termination of that employment
with the Company.  THE AGREEMENT TO
ARBITRATE CONSTITUTES A WAIVER OF ANY RIGHT THAT I OR THE COMPANY MAY HAVE
TO LITIGATE ANY CLAIM IN COURT IN A JUDGE OR JURY TRIAL.

 

* * * * IMPORTANT NOTICE * *
* *

 

This Agreement includes a
waiver of rights and claims that I may have arising under the Age
Discrimination in Employment Act of 1967 (Title 29, United States Code, 621 et
seq.).  This waiver is in exchange for
the consideration described in paragraph 2 above.  Pursuant to the Older Workers Benefit
Protection Act (Public) law 101-433; 1990 S. 1551), I acknowledge that this
Agreement is intended to apply as a waiver of rights and claims arising under
the Age Discrimination in Employment Act of 1967.  However, by executing this Agreement, I do not
waive rights and claims under the Age Discrimination in Employment Act that may
arise after the date of this Agreement is executed.
                      
(Initials)

 

I ACKNOWLEDGE THAT I HAVE
THE OPPORTUNITY TO CONSIDER THIS AGREEMENT FOR 21 DAYS.  SHOULD I DECIDE NOT TO USE THE FULL 21 DAYS,
I KNOWINGLY AND VOLUNTARILY WAIVE ANY CLAIMS THAT I WAS NOT IN FACT GIVEN THAT
PERIOD OF TIME OR DID NOT USE THE ENTIRE 21 DAYS TO CONSULT AN ATTORNEY AND/OR
CONSIDER THIS AGREEMENT.  I ACKNOWLEDGE
AND UNDERSTAND THAT FOR A PERIOD OF SEVEN (7) DAYS FOLLOWING MY EXECUTION
OF THIS AGREEMENT, I MAY REVOKE THIS AGREEMENT AND RELEASE, AND THE
RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THIS SEVEN (7) DAY
REVOCATION PERIOD HAS EXPIRED.  IF I DO
NOT REVOKE THIS AGREEMENT AND THE RELEASE IN THE TIME FRAME SPECIFIED, THIS
AGREEMENT AND RELEASE SHALL BE DEEMED TO BE EFFECTIVE AT 12:01 A.M. ON THE
EIGHTH DAY AFTER I EXECUTE THE SAME.
                      
(Initials)

 

A-3

 

In exchange for the mutual
promises contained in this Agreement, the parties execute this Agreement as of
the date set forth below.

 

	
   

  	
   

  
	
  Dated:
                    ,
  20

  	
  Lawrence
  R. Hoffman

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Averion
  International Corp.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:
                    ,
  20

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
							

 

A-4

 

EXHIBIT B

EMPLOYEE
PROPRIETARY INFORMATION

AND INVENTIONS AGREEMENT

 

In consideration of my employment or continued
employment by Averion International Corp.
(the “Company”),
and the compensation now and hereafter paid to me, I hereby agree as follows:

 

2.             NONDISCLOSURE.

 

2.1          Recognition of Company’s Rights;
Nondisclosure.  At all
times during my employment and thereafter, I will hold in strictest confidence
and will not disclose, use, lecture upon or publish any of the Company’s
Proprietary Information (defined below), except as such disclosure, use or
publication may be required in connection with my work for the Company, or
unless an officer of the Company expressly authorizes such in writing.  I will obtain Company’s written approval
before publishing or submitting for publication any material (written, verbal,
or otherwise) that relates to my work at Company and/or incorporates any
Proprietary Information.  I hereby assign
to the Company any rights I may have or acquire in such Proprietary Information
and recognize that all Proprietary Information shall be the sole property of
the Company and its assigns.

 

2.2          Proprietary Information.  The term “Proprietary
Information” shall mean any and all confidential and/or proprietary
knowledge, data or information of the Company. 
By way of illustration but not
limitation, the term “Proprietary
Information” includes (a) tangible
and intangible information relating to compounds, biological materials, cell
lines, samples of assay components, media and/or cell lines and procedures and
formulations for producing any such assay components, media and/or cell lines,
formulations, products, ideas, processes, know-how, inventions, developments,
designs, techniques, formulas, works of authorship, methods, developmental or
experimental work, clinical data, test data, improvements, discoveries and
trade secrets (hereinafter collectively referred to as “Inventions”); and (b) plans for research,
development and new products, marketing and selling information, business
plans, budgets and unpublished financial statements, licenses, prices and
costs, suppliers, customers and vendors, and information regarding the skills
and compensation of other employees of the Company.

 

2.3          Third Party Information.  I
understand, in addition, that the Company has received and in the future will
receive from third parties confidential or proprietary information (“Third Party Information”)
subject to a duty on the Company’s part to maintain the confidentiality of such
information and to use it only for certain limited purposes.  During the term of my employment and
thereafter, I will hold Third Party Information in the strictest confidence and
will not disclose to anyone (other than Company personnel who need to know such
information in connection with their work for the Company) or use, except in
connection with my work for the Company, Third Party Information unless
expressly authorized in writing by an officer of the Company.

 

2.4          No Improper Use of Information of
Prior Employers and Others. 
During my employment by the Company I will not improperly use or
disclose any confidential information or trade secrets, if any, of any former
employer or any other person to whom I have an obligation of confidentiality,
and I will not bring onto the premises of the Company any unpublished documents
or any property belonging to any former employer or any other person to whom I
have an obligation of confidentiality unless consented to in writing by that
former employer or person.  I will use in
the performance of my duties only information which is generally known and used
by persons with training and experience comparable to my own, which is common
knowledge in the industry or otherwise legally in the public domain, or which
is otherwise provided or developed by the Company.

 

3.             ASSIGNMENT OF INVENTIONS.

 

3.1          Proprietary Rights.  The term “Proprietary Rights” shall mean all trade
secret, patent, copyright, mask work and other intellectual property rights
throughout the world.

 

3.2          Prior Inventions.  Inventions, if any, patented or unpatented,
which I made prior to the commencement of my employment with the Company are
excluded from the scope of this Agreement. 
To preclude any possible uncertainty, I have set forth on Schedule 1 (Previous Inventions) attached hereto a complete
list of all Inventions that I have, alone or jointly with others, conceived,
developed or reduced to practice or caused to be conceived, developed or
reduced to practice prior to the commencement of my employment with the
Company, that I consider to be my property or the property of third parties and
that I wish to have excluded from the scope of this Agreement (collectively
referred to as “Prior Inventions”).  If disclosure of any such Prior Invention
would cause me to 

 

B-1

 

violate any prior
confidentiality agreement, I understand that I am not to list such Prior
Inventions in Schedule 1 but am only to
disclose a cursory name for each such invention, a listing of the party(ies) to
whom it belongs and the fact that full disclosure as to such inventions has not
been made for that reason. A space is provided on Schedule 1
for such purpose.  If no such disclosure
is attached, I represent that there are no Prior Inventions.  If, in the course of my employment with the
Company, I incorporate a Prior Invention into a Company product, process or
machine, the Company is hereby granted and shall have a nonexclusive,
royalty-free, irrevocable, perpetual, worldwide license (with rights to
sublicense through multiple tiers of sublicensees) to make, have made, modify,
use and sell such Prior Invention. 
Notwithstanding the foregoing, I agree that I will not incorporate, or
permit to be incorporated, Prior Inventions in any Company Inventions without
the Company’s prior written consent.

 

3.3          Assignment of Inventions.
Subject to Sections 2.5, I hereby assign and agree to assign in the future
(when any such Inventions or Proprietary Rights are first reduced to practice
or first fixed in a tangible medium, as applicable) to the Company all my
right, title and interest in and to any and all Inventions (and all Proprietary
Rights with respect thereto) whether or not patentable or registrable under
copyright or similar statutes, made or conceived or reduced to practice or
learned by me, either alone or jointly with others, during the period of my
employment with the Company.  Inventions
assigned to the Company, or to a third party as directed by the Company
pursuant to this Section 2, are hereinafter referred to as “Company Inventions”.

 

3.4          Obligation to Keep Company Informed.  During the period of my employment and for
six (6) months after termination of my employment with the Company, I will
promptly disclose to the Company fully and in writing all Inventions authored,
conceived or reduced to practice by me, either alone or jointly with
others.  In addition, I will promptly
disclose to the Company all patent applications filed by me or on my behalf
within a year after termination of employment. 
I will preserve the confidentiality of any Invention authored, conceived
or reduced to practice by me.

 

3.5          Government or Third Party.  I also agree to assign all my right, title and
interest in and to any particular Company Invention to a third party, including
without limitation the United States, as directed by the Company.

 

3.6          Works for Hire.  I acknowledge that all original works of
authorship which are made by me (solely or jointly with others) within the
scope of my employment and which are protectable by copyright are “works made
for hire,” pursuant to United States Copyright Act (17 U.S.C., Section 101).

 

3.7          Enforcement of Proprietary Rights.  I will assist the Company in every proper way
to obtain, and from time to time enforce, United States and foreign Proprietary
Rights relating to Company Inventions in any and all countries.  To that end I will execute, verify and
deliver such documents and perform such other acts (including appearances as a
witness) as the Company may reasonably request for use in applying for,
obtaining, perfecting, evidencing, sustaining and enforcing such Proprietary
Rights and the assignment thereof.  In
addition, I will execute, verify and deliver assignments of such Proprietary
Rights to the Company or its designee. 
My obligation to assist the Company with respect to Proprietary Rights
relating to such Company Inventions in any and all countries shall continue
beyond the termination of my employment, but the Company shall compensate me at
a reasonable rate after my termination for the time actually spent by me at the
Company’s request on such assistance.

 

In the event the Company is unable for any reason,
after reasonable effort, to secure my signature on any document needed in
connection with the actions specified in the preceding paragraph, I hereby
irrevocably designate and appoint the Company and its duly authorized officers
and agents as my agent and attorney in fact, which appointment is coupled with
an interest, to act for and in my behalf to execute, verify and file any such
documents and to do all other lawfully permitted acts to further the purposes
of the preceding paragraph with the same legal force and effect as if executed
by me.  I hereby waive and quitclaim to
the Company any and all claims, of any nature whatsoever, which I now or may
hereafter have for infringement of any Proprietary Rights assigned hereunder to
the Company.

 

4.           RECORDS.  I agree to keep and maintain adequate and current
records (in the form of notes, sketches, drawings and in any other form that
may be required by the Company) of all Proprietary Information developed by me
and all Inventions made by me during the period of my employment at the
Company, which records shall be available to and remain the sole property of
the Company at all times.

 

5.             NO CONFLICTING OBLIGATION.  I represent that my performance of all the
terms of this Agreement and as an employee of the Company does not and will not
breach any agreement to keep in confidence information acquired by me in
confidence or in trust prior to my employment by the Company.  I have not entered into, and I agree I will
not enter into, any agreement either written or oral in conflict herewith.

 

B-2

 

6.             RETURN OF COMPANY DOCUMENTS.  When I leave the employ of the Company, I will
deliver to the Company any and all drawings, notes, memoranda, specifications,
devices, formulas, and documents, together with all copies thereof, and any
other material containing or disclosing any Company Inventions, Third Party
Information or Proprietary Information of the Company.  I further agree that any property situated on
the Company’s premises and owned by the Company, including disks and other
storage media, filing cabinets or other work areas, is subject to inspection by
Company personnel at any time with or without notice.

 

7.             LEGAL AND EQUITABLE REMEDIES.  Because my services are personal and unique
and because I may have access to and become acquainted with the Proprietary
Information of the Company, the Company shall have the right to enforce this
Agreement and any of its provisions by injunction, specific performance or
other equitable relief, without bond and without prejudice to any other rights
and remedies that the Company may have for a breach of this Agreement.

 

8.             NOTICES.  Any
notices required or permitted hereunder shall be given to the appropriate party
at the address specified below or at such other address as the party shall
specify in writing.  Such notice shall be
deemed given upon personal delivery to the appropriate address or if sent by
certified or registered mail, three (3) days after the date of mailing.

 

9.             NOTIFICATION OF NEW EMPLOYER.  In the event that I leave the employ of the
Company, I hereby consent to the notification of my new employer of my rights
and obligations under this Agreement.

 

10.          GENERAL PROVISIONS.

 

10.1        Governing Law; Consent to Personal
Jurisdiction.  This
Agreement will be governed by and construed according to the laws of the
Commonwealth of Massachusetts.  Any
claims or legal actions arising from or related to this Agreement shall be
commenced and maintained in a state or federal court located in Massachusetts.

 

10.2        Severability.  In case any one or more of the provisions
contained in this Agreement shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect the other provisions of this Agreement, and
this Agreement shall be construed as if such invalid, illegal or unenforceable
provision had never been contained herein. 
If moreover, any one or more of the provisions contained in this
Agreement shall for any reason be held to be excessively broad as to duration,
geographical scope, activity or subject, it shall be construed by limiting and
reducing it, so as to be enforceable to the extent compatible with the
applicable law as it shall then appear.

 

10.3        Successors and Assigns.  This Agreement will be binding upon my heirs,
executors, administrators and other legal representatives and will be for the
benefit of the Company, its successors, and its assigns.

 

10.4        Survival.  The provisions of this Agreement shall
survive the termination of my employment and the assignment of this Agreement
by the Company to any successor in interest or other assignee.

 

10.5        Employment. I agree
and understand that nothing in this Agreement shall confer any right with
respect to continuation of employment by the Company, nor shall it interfere in
any way with my right or the Company’s right to terminate my employment at any
time, with or without cause.

 

10.6        Waiver. No waiver by
the Company of any breach of this Agreement shall be a waiver of any preceding
or succeeding breach.  No waiver by the
Company of any right under this Agreement shall be construed as a waiver of any
other right.  The Company shall not be
required to give notice to enforce strict adherence to all terms of this
Agreement.

 

10.7        Entire Agreement.  The obligations pursuant to Sections 1 and 2
of this Agreement shall apply to any time during which I was previously
employed, or am in the future employed, by the Company as a consultant if no
other agreement governs nondisclosure and assignment of inventions during such
period.  This Agreement, including the
Employment Agreement to which the Agreement is attached (the “Employment
Agreement”), constitute the final, complete and exclusive agreement of the
parties with respect to the subject matter hereof and supersede and merges all
prior discussions between us; provided that the terms of the Employment
Agreement shall govern to the extent inconsistent with any terms contained
herein.  No modification of or amendment
to this Agreement, nor any waiver of any rights under this Agreement, will be
effective unless in writing and signed by the party to be charged.  Any subsequent change or changes in my
duties, salary or compensation will not affect the validity or scope of this Agreement.

 

B-3

 

This Agreement shall be effective as of the first day
of my employment with the Company, namely:

 

 

I HAVE READ THIS AGREEMENT
CAREFULLY AND UNDERSTAND ITS TERMS.  I
HAVE COMPLETELY FILLED OUT SCHEDULE 1 TO THIS AGREEMENT.

 

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Signature)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Printed
  Name)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  (Address)

  	
   

  

 

 

ACCEPTED AND AGREED TO:

 

AVERION
INTERNATIONAL CORP.

 

 

	
  By:

  	
   

  	
   

  
	
  Name

  	
  Philip T. Lavin

  
	
  Title:

  	
  Executive Chaiman

  
				

 

[Signature
Page to Employee Proprietary Information and Inventions Agreement]

 

 

SCHEDULE 1

 

	
  TO:

  	
  AVERION INTERNATIONAL CORP.

  
	
   

  	
   

  
	
  FROM:

  	
   

  	
   

  
	
   

  	
   

  
	
  DATE:

  	
   

  	
   

  
	
   

  	
   

  
	
  SUBJECT:

  	
  PREVIOUS INVENTIONS

  

 

1.             Except as listed in Section 2
below, the following is a complete list of all inventions or improvements
relevant to the subject matter of my employment by Averion International Corp.
(the “Company”)
that have been made or conceived or first reduced to practice by me alone or
jointly with others prior to my engagement by the Company:

 

o            No inventions or improvements.

 

o            See below:

 

o            Additional sheets attached.

 

2.             Due to a prior confidentiality
agreement, I cannot complete the disclosure under Section 1 above with
respect to inventions or improvements generally listed below, the proprietary
rights and duty of confidentiality with respect to which I owe to the following
party(ies):

 

	
  Invention or Improvement

  	
   

  	
  Party(ies)

  	
   

  	
  Relationship

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

o            Additional sheets attached.

 

 

EXHIBIT C

BENEFICIARY DESIGNATION FOR EMPLOYMENT AGREEMENT

 

I designate the following
as beneficiary of any payment or other benefits payable following my death
under the EMPLOYMENT AGREEMENT made effective as of April         ,
2008, by and between Averion International Corp. (“Company”) and
                                    
(“Employee”):

 

Primary:

 

Contingent:

 

Note: To name a trust as
beneficiary, please provide the name of the trustee(s) and the exact name
and date of the trust agreement.

 

I understand that I may
change these beneficiary designations by filing a new written designation with
the Company.  I further understand that
the designations will be automatically revoked if the beneficiary predeceases
me, or, if I have named my spouse as beneficiary and our marriage is
subsequently dissolved.

 

 

	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  
	
  Printed Name:

  	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
						

 

Received by the Company
this
                day
of
                                        ,
                                .

 

	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
					

 

C-1

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