Document:

Unassociated Document

    THIS
      ESCROW AGREEMENT

    made
      as
      of this

    2nd
      day of
      September, 2005

    

    BETWEEN:

    

    EVENTS
      INTERNATIONAL HOLDING CORPORATION

    a
      corporation incorporated

    under
      the
      federal laws of Canada

    

    (the
      “Issuer”)

    

    OF
      THE
      FIRST PART;

    

    -
      and
      -

    

    SWEIBEL
      NOVEK L.L.P.

    a
      limited
      liability partnership established

    Under
      the
      laws of Quebec

    

    (the
      “Escrow Agent”)

    

    OF
      THE
      SECOND PART;

    

    -
      and
      -

    

    
      	-  	 

    

    IAN
      SHERRINGTON

    businessman
      of Montreal, Quebec

    

    -
      and
      -

    

    ADRIAAN
      BRINK

    businessman
      of Liechtenstein

    

    (collectively,
      the “Securities Holders”)

    

    OF
      THE
      THIRD PART;

    

    WHEREAS
      upon the closing of the transaction contemplated by that certain share purchase
      agreement (the “Share Purchase Agreement”) made as of the 10th
      day of
      June 2005 between the Issuer and the Securities Holders, the Securities Holders
      are to become the holders of 9,000,000 common shares of the Issuer;

    

    AND
      WHEREAS the Security Holders have agreed to deposit the 9,000,000 shares in
      escrow with the Escrow Agent such that such shares shall not be sold or
      otherwise dealt with except in accordance with this Agreement;

     

    AND
      WHEREAS the Escrow Agent has agreed to hold such shares in accordance with
      the
      terms of this Agreement;

     

    NOW
      THEREFORE, in consideration for the mutual covenants contained herein and other
      good and valuable consideration (the receipt and sufficiency of which is
      acknowledged), the parties hereto agree as follows:

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      1.  INTERPRETATION

    

    In
      this
      Agreement:

    

    
      	
              1.1

            	
              “Additional
                Securities” means securities (including a right to acquire securities)
                that a Security Holder acquires after the date upon which the Security
                Holder executes this Agreement that
                are

            

    

    

    1.1.1 securities
      of the Issuer acquired:

     

    (i) as
      a
      dividend or other distribution on Securities;

    

    
      	 	
              (ii)

            	
              upon
                the exercise of a right of purchase, conversion or exchange attaching
                to
                Securities; or

            

    

    

    (iii) upon
      a
      subdivision or compulsory conversion or exchange of Securities; or

    

    1.1.2 New
      Securities of a Successor Issuer acquired by a Security Holder which are subject
      to
      escrow
      in accordance with this Agreement;

    

    
      	
              1.2

            	
              “Agreement”
                means this Escrow Agreement including all Schedules attached hereto,
                all
                of which are incorporated herein by reference and form part hereof
                and all
                amendments and supplements hereto and the terms “herein”, “hereof’,
                “hereto”, “hereunder” and like terms refer to this
                Agreement;

            

    

    

    
      	
              1.3

            	
              “Closing
                Date” means the closing date as defined in the Share Purchase
                Agreement;

            

    

    

    
      	
              1.4

            	
              “Combination”
                means a bona fide formal take-over bid, plan of arrangement, amalgamation,
                merger or similar transaction;

            

    

    

    
      	
              1.5

            	
              “Exchange”
                means the TSX Venture Exchange;

            

    

    

    
      	
              1.6

            	
              “Securities”
                means, in relation to a Security Holder, those securities of the
                Security
                Holder, including Additional Securities, that are held in escrow
                by the
                Escrow Agent pursuant to this
                Agreement:

            

    

    

    
      	
              1.7

            	
              “Security
                Holder” means a holder of securities of the Issuer who executes this
                Agreement;

            

    

    

    
      	
              1.8

            	
              “Share
                Purchase Agreement” means the share purchase agreement made as of the
                10th
                day of June, 2005 between the Issuer, the Securities Holders, Mahjong
                Systems Limited and 9143-3250 Quebec Inc.;
                and

            

    

    

    
      	
              1.9

            	
              “Successor
                Issuer”, with respect to an Issuer, means an issuer that issues securities
                to a Security Holder in connection with a Combination involving the
                first
                Issuer.

            

    

    
 

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      2.  DEPOSIT
      OF SECURITIES IN ESCROW

    

    
      	
              2.1

            	
              Each
                Security Holder hereby deposits with the Escrow Agent, to be held
                in
                escrow under this Agreement, the Securities described in Schedule
                A,
                and agrees to deliver to the Escrow Agent forthwith any certificates
                evidencing such Securities.

            

    

    

    
      	
              2.2

            	
              Each
                Security Holder shall deposit in escrow with the Escrow Agent all
                Additional Securities and shall deliver to the Escrow Agent forthwith
                upon
                receipt thereof any certificates evidencing Additional Securities
                and any
                replacement certificates which may at any time be issued for any
                Securities held in escrow.

            

    

    

    
      	
              2.3

            	
              The
                parties hereto agree and undertake to make any amendments to this
                Agreement as may be required pursuant to any order, directive or
                other
                communication of the Exchange.

            

    

    

    ARTICLE 
      3.  DIRECTION
      TO ESCROW AGENT

    

    
      	
              3.1

            	
              The
                Issuer and each Security Holder direct the Escrow Agent to retain
                the
                Securities in escrow and the Escrow Agent agrees to retain the Securities
                in escrow until the Securities are released from escrow pursuant
                to the
                terms of this Agreement.

            

    

    

    ARTICLE
      4.  RESTRICTIONS
      ON DEALING WITH SECURITIES

    

    
      	
              4.1

            	
              Securities
                may only be dealt with as specifically allowed by this Agreement.
                No
                Securities and no interest in, control or direction over or certificate
                evidencing Securities shall directly or indirectly be sold, assigned,
                transferred, redeemed, surrendered for consideration, mortgaged,
                hypothecated, charged, pledged, or encumbered or otherwise dealt
                with in
                any manner except as provided in this Agreement, or except as may
                be
                required by reason of the death of one of the Securities
                Holders.

            

    

    

    
      	
              4.2

            	
              There
                shall be no restriction or prohibition on any transfer of any Securities
                for estate or tax planning or other similar purposes, provided that
                the
                Issuer’s prior written approval to such transfer is obtained (which
                approval will not be unreasonably withheld), and further provided
                that the
                transferee agrees to be bound by the terms and conditions of this
                Agreement and to execute such further documents or instruments as
                the
                Issuer and/or the Escrow Agent consider necessary or
                desirable.

            

    

    

    
      	
              4.3

            	
              In
                the event that a take-over bid is made to a class of shareholders
                of the
                Issuer which includes the Securities, provided that the board of
                directors
                of the Issuer has approved of the take-over bid, each of the Securities
                Holders shall be entitled to instruct the Escrow Agent to tender
                all or
                part of the Securities held by such Securities Holders to the take-over
                bid, provided that if the take-over bid does not proceed, the share
                certificates evidencing the Securities shall be returned to the Escrow
                Agent and reinstated as Securities pursuant to this
                Agreement.

            

    

    

    
      	
              4.4

            	
              There
                shall be no restriction or prohibition on any express order or direction
                in writing from the board of directors of the Issuer to the Escrow
                Agent
                instructing the Escrow Agent to release all of the Securities from
                escrow
                at any time.

            

    

    

    ARTICLE
      5.  VOTING
      OF SECURITIES IN ESCROW

    

    
      	
              5.1

            	
              Subject
                to any restriction found in this Agreement, a Security Holder may
                exercise
                voting rights attaching to Securities. No Security Holder, while
                his, her
                or its Securities are held in escrow, shall vote any securities (whether
                in escrow or not) in support of one or more arrangements that would
                result
                in the repayment of capital being made on the Securities prior to
                a
                winding up of the Issuer.

            

    

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    ARTICLE
      6.  DIVIDENDS
      AND DISTRIBUTIONS ON SECURITIES IN ESCROW

    

    
      	
              6.1

            	
              Subject
                to any specific restrictions found in this Agreement, the escrow
                of
                Securities will not impair any right of a Security Holder to receive
                a
                dividend or other distribution on Securities or to elect the form
                and
                manner in which the dividend or other distribution on Securities
                is
                paid.

            

    

    

    
      	
              6.2

            	
              Subject
                to section 6.3, if, during the period in which any of the Securities
                are
                retained in escrow pursuant to this Agreement, any dividend or other
                distribution, other than one paid in securities of the Issuer, is
                received
                by the Escrow Agent in respect of Securities, the Escrow Agent shall
                forthwith transfer such dividend or distribution to the Security
                Holder
                entitled thereto.

            

    

    

    
      	
              6.3

            	
              Additional
                Securities distributed on Securities shall be subject to the same
                terms
                and conditions under this Agreement as the Securities on which the
                distribution was made. Additional Securities distributed on Securities,
                if
                received by the Escrow Agent, shall be retained in escrow. Additional
                Securities distributed on Securities, if received by the Security
                Holder,
                shall be deposited in escrow in accordance with Article 2. All such
                Additional Securities shall be held in and released from escrow on
                the
                same terms and conditions as apply to the Securities on which the
                distribution was paid.

            

    

    

    ARTICLE
      7.  EXERCISE
      OF OTHER RIGHTS ATTACHING TO SECURITIES

    

    
      	
              7.1

            	
              Subject
                to any specific restrictions found in this Agreement, the escrow
                of
                Securities will not impair any right of a Security Holder to exercise
                a
                right attaching to a Security that entitles the Security Holder to
                purchase or otherwise acquire another security or to exchange or
                convert a
                Security into another security.

            

    

    

    ARTICLE
      8.  RELEASE
      OF SECURITIES AND SECURITIES CERTIFICATES

    

    
      	
              8.1

            	
              Subject
                to the terms and conditions hereof, the Escrow Agent shall release
                the
                Securities to each Security Holder in the following amounts and at
                the
                following time:

            

    

    

    
      	 	
              8.1.1

            	
              an
                amount equal to ten percent (10%) of the Securities to each of the
                Securities Holders on a pro rata bases at the time of the Exchange
                Bulletin confirming final acceptance of the transaction (the “First
                Release Date”), the exact number of such Securities available for release
                on such date to each Security Holder being detailed on Schedule
                B
                hereto; and

            

    

    

    
      	 	
              8.1.2

            	
              an
                amount equal to fifteen percent (15%) of the Securities to each of
                the
                Securities Holders on a pro rata basis every six (6) months thereafter,
                with all remaining securities being released 36 months from the Exchange
                Bulletin, the exact number of such Securities available for release
                on
                such date to each Security Holder being detailed on Schedule
                B
                hereto.

            

    

     

    
      
        	
                8.2

              	Delivery of Certificates to Security
                Holder

      

       

    

    If
      a
      Security Holder wishes to receive a certificate evidencing Securities released
      or to be released from escrow on a release date set out in section 8.1 above,
      as
      applicable, the Security Holder will provide written notice to the Escrow Agent
      to that effect. If the Escrow Agent receives notice from a Security Holder
      that
      the Security Holder wishes to receive certificates for released Securities,
      the
      Escrow Agent will, as soon as reasonably practicable after the applicable
      release date or after receipt by the Escrow Agent of the notice from the
      Security Holder, whichever is later, deliver to or at the direction of the
      Security Holder, certificates evidencing the Securities released from escrow
      on
      the applicable release date.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
              8.3

            	Replacement Securities

    

     

    Where
      a
      Security Holder has, in accordance with section 8.2, provided notice to the
      Escrow Agent that the Security Holder wishes to receive a certificate evidencing
      Securities released or to be released from escrow, and where the relevant
      certificate held by the Escrow Agent evidences a combination of Securities
      released from escrow on the applicable release date and Securities that are
      to
      remain in escrow, the Escrow Agent, as soon as reasonably practicable after
      the
      applicable release date or after receipt by the Escrow Agent of the notice
      from
      the Security Holder, whichever is later, shall deliver such certificates to
      the
      Issuer or its transfer agent, together with a request that separate replacement
      certificates be prepared and delivered to the Escrow Agent. Where certificates
      evidencing Securities are delivered to the Issuer in accordance with the
      foregoing, the Issuer, as soon as reasonably practicable, shall cause separate
      replacement certificates to be prepared and delivered to the Escrow Agent.
      As
      soon as reasonably practicable after the receipt by the Escrow Agent of the
      replacement certificates, the Escrow Agent shall deliver, to or at the direction
      of the Security Holder, all replacement certificates evidencing Securities
      released from escrow on the applicable release date.

     

    
      	
              8.4

            	Exchange Discretion to
              Terminate

    

     

    If
      the
      Escrow Agent receives a request from the Exchange to halt or terminate the
      release of Securities from escrow, then the Escrow Agent shall comply with
      that
      request, and shall not release any Securities from escrow unless and until
      the
      written consent of the Exchange is received.

    

    ARTICLE
      9.   RELEASE
      UPON DEATH

     

    
      	
              9.1

            	
              Upon
                the death of a Security Holder, the Securities of that Security Holder
                shall be released from escrow and the Escrow Agent shall deliver
                all
                certificates evidencing such Securities to the legal representative
                of the
                deceased Security Holder, provided
                that:

            

    

     

    
      	 	 	
              9.1.1

            	
              the
                legal representative of the deceased Security Holder provides written
                notice to the Exchange of the intent to release the Securities as
                at a
                specified date, such notice being provided at least 10 business days
                and
                not more than 30 business days prior to the proposed release and
                the
                Exchange does not provide notice to its objection to the Escrow Agent
                prior to 10:00 a.m. (Toronto time) on such specified date;
                and

            

    

    

    
      	 	 	
              9.1.2

            	
              the
                Escrow Agent first receives:

            

    

    

    (i) a
      certified copy of the death certificate; and

    

    (ii) such
      evidence of the legal representative’s status that the Escrow Agent may
reasonably
      require.

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    ARTICLE
      10.   ESCROW
      AGENT HAS NO RESPONSIBILITY AFTER RELEASE

     

    
      	
              10.1

            	
              The
                Escrow Agent shall have no further responsibility for Securities
                that have
                been delivered to or at the direction of the Security Holder in accordance
                with the terms of this Agreement. Delivery may be made by registered
                mail
                or physical delivery, at the discretion of the Escrow
                Agent.

            

    

     

    ARTICLE
      11.   RELEASE,
      UNDERTAKING NOT TO SUE, AND INDEMNITY

     

     

    
      	11.1  
	
              In
                this section,

            

    

    

    
      	 	 	
              11.1.1

            	
              “Act
                or Omission” means any good-faith act or omission that is in any way
                connected with this Agreement, and
                includes:

            

    

    (i) the
      performance, and non-performance, of duties under this Agreement;

    

    (ii) the
      exercise of discretion, and failure to exercise discretion, in
      connection

    this
      Agreement;

    

    (iii) the
      interpretation of this Agreement, or of any law, policy (including
      the

    Exchange
      Policy), rule, regulation or order; and

    

    (iv) the
      enforcement of, and failure to enforce, this Agreement.

    

    
      	 	 	
              11.1.2

            	
              “Escrow
                Agent” includes the directors, officers, employees, assigns and insurers
                of the Escrow Agent.

            

    

     

    
      	
              11.2

            	
              The
                Security Holders and the Issuer, solidarily (jointly and
                severally):

            

    

     

    
      	 	 	
              11.2.1

            	
              release,
                indemnify and save harmless the Escrow Agent from all costs (including
                legal costs), charges, claims, demands, damages, losses and expenses
                incurred by the Escrow Agent resulting from the Escrow Agent’s
                performance, in good faith, of its duties under this
                Agreement;

            

    

    

    
      	 	 	
              11.2.2

            	
              agree
                not to make or bring a claim or demand, or commence any action, against
                the Escrow Agent in respect of its performance in good faith of its
                duties
                under this Agreement; and

            

    

    

    
      	 	 	
              11.2.3

            	
              agree
                to indemnify and save harmless the Escrow Agent from all costs (including
                legal costs) and damages that the Escrow Agent incurs or is required
                by
                law to pay as a result of any person’s claim, demand, or action in
                connection with the Escrow Agent’s good faith performance of the Escrow
                Agent’s duties under this
                Agreement.

            

    

     

     

    
      	
              11.3

            	
              The Issuer agrees to pay the
                fees and
                disbursements of the Escrow Agent in connection with the holding
                and
                release of the Securities in accordance with this Agreement. Any
                fees and
                disbursements incurred by the Escrow Agent as a result of any claim
                or
                dispute involving the Securities shall be borne by the Securities
                Holders
                and the Issuer, on a solidary basis as provided in section 11.2
                above

            

    

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    ARTICLE
      12.   RESPONSIBILITY
      FOR FURNISHING INFORMATION

    

    
      	12.1  
	
              The
                Escrow Agent shall bear no responsibility for seeking, obtaining,
                compiling, preparing or determining the accuracy of, any information
                or
                document that must be received by the Escrow Agent as a condition
                under
                this Agreement to a release of Securities from escrow or a transfer
                of
                Securities within escrow.

            

    

    

    ARTICLE
      13.   RESIGNATION
      OR TERMINATION OF ESCROW AGENT

    

    
      	13.1  
	
              The
                Escrow Agent may resign by providing written notice of resignation
                to the
                Issuer.

            

    

    

    
      	13.2  
	
              The
                Issuer may terminate the services of the Escrow Agent under this
                Agreement
                by providing written notice of termination to the
                parties.

            

    

    

    
      	13.3   	
              The
                resignation or termination of the Escrow Agent shall be effective,
                and the
                Escrow Agent shall cease to be bound by this
                Agreement:

            

    

    

    
      	 	 	
              13.3.1

            	
              30
                days after the date of receipt by the Escrow Agent or Issuer, as
                applicable, of a notice referred to in subsection 13.2 or 13.3
                or

            

    

    

    
      	 	 	
              13.3.2

            	
              upon
                such date as may be mutually agreed to by the Escrow Agent and the
                Issuer,
                provided that the resignation or termination date must not be less
                than 10
                business days before a release date set forth in section
                8.1.

            

    

    

    
      	 	 	
              13.4

            	
              If
                the Escrow Agent resigns or is terminated, the Issuer shall be responsible
                for ensuring that the Escrow Agent is replaced not later than the
                resignation or termination date.

            

    

    

    
      	 	 	
              13.5

            	
              The
                Issuer’s appointment of a replacement escrow agent shall be binding on the
                Issuer and the Security Holders.

            

    

    

    ARTICLE
      14.   NOTICES

    

    14.1  Documents
      delivered to a party’s address for notice shall be considered to have been
      received:

     

    
      	 	 	
              14.1.1

            	
              on
                the next business day following the date of transmission, if delivered
                by
                telecopier;

            

    

    

    
      	 	 	
              14.1.2

            	
              on
                the date of physical delivery, if delivered by hand or by prepaid
                courier;
                or

            

    

    

    
      	 	 	
              14.1.3

            	
              five
                business days after the date of mailing, if delivered by
                mail.

            

    

    

    14.2  The
      address for notice

    

    
      	 	
               

            	
              14.2.1

            	
              of
                the Escrow Agent is:

            

    

     

    SWEIBEL
      NOVEK L.L.P.

    3449
      Avenue du Musée

    Montreal,
      QC H3G 2C8

     

    Attention:
      Barbara L. Novek,

    Fax:
      (514) 849-1176

    

    
      	 	 	
              14.2.2

            	
              of
                the Issuer is:

            

    

    

    EVENTS
      INTERNATIONAL HOLDING CORPORATION

    759
      Square Victoria, Suite 300

    Montreal,
      Quebec H2Y 2J7

     

    Attention:
      President

    Fax:
      (514) 288-0588

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      

      
        	 	 	
                14.2.3

              	
                of
                  a Security Holder is the applicable address for notice noted in
Schedule
                  A.

              

      

       

    

    
      	
              14.3   

            	
              The
                Issuer and the Escrow Agent may change their respective addresses
                for
                notice by delivering written notice to all parties of such
                change.

            

    

    

    
      	14.4   	
              A
                Security Holder may change his or her address for notice, and Schedule
                A
                shall be deemed to have been amended accordingly, by delivering written
                notice of such change to the Issuer and to the Escrow
                Agent.

            

    

    

    
      	14.5   	
              A
                change is a party’s address for notice shall not be effective with respect
                to another party until that other party has received written notice
                of the
                change.

            

    

    

    
      	14.6   	
              A
                party shall not effect a delivery by mail if the party is aware of
                an
                actual or impending disruption of postal
                service.

            

    

    

    ARTICLE
      15.   TIME

    

    
      	15.1   	
              Time
                is of the essence of this
                Agreement.

            

    

    

    ARTICLE
      16.   GOVERNING
      LAW

    

    
      	16.1   	
              This
                Agreement shall be construed in accordance with and governed by the
                laws
                of the Province of Quebec and the laws of Canada applicable
                therein.

            

    

    

    ARTICLE
      17.   COUNTERPARTS

    

    
      	17.1   	
              This
                Agreement may be executed by facsimile and in two or more counterparts,
                each of which will be deemed to be an original and all of which will
                constitute one agreement.

            

    

    

    ARTICLE
      18.   LANGUAGE

    

    
      	18.1   	
              Singular
                expressions used in this Agreement shall be deemed to include the
                plural,
                and plural expressions the singular, where required by the
                context.

            

    

    

    ARTICLE
      19.   ENUREMENT

    

    
      	19.1   	
              This
                Agreement will enure to the benefit of and be binding upon the parties
                and
                their heirs, executors, administrators, successors and permitted
                assigns.

            

    

    

    ARTICLE
      20.   ENTIRE
      AGREEMENT

    

    
      	20.1   	
              This
                Agreement, including the Schedules attached hereto, constitute the
                entire
                understanding between the parties with respect to the subject matter
                hereof and supersede all prior agreements, understandings, negotiations
                and discussions, whether oral or written, between the parties and
                there
                are no warranties, representations or other agreements between the
                parties
                in connection with this Agreement, except as specifically set forth
                herein.

            

    

    

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    ARTICLE  21.   TERMINATION,
      AMENDMENT, AND WAIVER OF AGREEMENT

    
      	21.1   	
              Subject
                to section 21.2, this Agreement shall only terminate with respect
                to all
                the parties,

            

    

    

    (i) as
      specifically provided in this Agreement;

    

    (ii) subject
      to Exchange approval, upon the agreement of all parties; or

    

    
      	 	 	
              (iii)

            	
              when
                the Securities of all Security Holders have been released from escrow
                pursuant to this Agreement.

            

    

    

    
      	21.2   	
              Notwithstanding
                any other provision in this Agreement, the obligations set forth
                in
                Article 14 shall survive the termination of this
                Agreement.

            

    

    

    
      	21.3   	
              No
                amendment or waiver of this Agreement or any part of this Agreement
                shall
                be effective unless the amendment or waiver is evidenced by a memorandum
                in writing signed by all parties.

            

    

    

    
      	21.4   	
              No
                waiver of any of the provisions of this Agreement shall be deemed
                or shall
                constitute a waiver of any other provision (whether similar or not),
                nor
                shall any waiver constitute a continuing waiver, unless expressly
                provided.

            

    

    

    ARTICLE
      22.   SEVERENCE
      OF ILLEGAL PROVISION

    

    
      	22.1   	
              Any
                provision or part of a provision of this Agreement determined by
                a court
                of competent jurisdiction to be invalid, illegal or unenforceable
                shall be
                deemed stricken to the extent necessary to eliminate any invalidity,
                illegality or unenforceability, and the rest of the Agreement and
                all
                other provisions and parts thereof shall remain in full force and
                effect
                and be binding upon the parties hereto as though the said illegal
                and/or
                unenforceable provision or part thereof had never been included in
                this
                Agreement.

            

    

    

    ARTICLE
      23.   FURTHER
      ASSURANCES

    

    
      	23.1   	
              The
                parties will execute and deliver any further documents and perform
                any
                further acts necessary to carry out the intent of this
                Agreement.

            

    

    

    ARTICLE
      24.   ENGLISH
      LANGUAGE

    

    
      	24.1   	
              The
                parties hereto have required that this Agreement and related documents
                be
                drafted in the English language. Les
                parties aux présentes ont exigé que cette entente et les documents y
                afférents soient rédigés dans la langue
                anglaise.

            

    

    

    THE
      PARTIES HAVE EXECUTED AND DELIVERED
      this
      Agreement as of the date set out above.

    

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    

    

    

    EVENTS
      INTERNATION HOLDING

    CORPORATION

    

    

    _______________________________________

    Per:

    

    

    _______________________________________

    And
      per:

    

    

    

    

    SWEIBEL
      NOVEK L.L.P.

     

    

    _______________________________________

    Per:
      Barbara L. Novek

    

    

    _______________________________________

    IAN
      SHERRINGTON

    

    

    _______________________________________

    ADRIAAN
      BRINKOffer letter agreement between the Company and Patrick M. Ritto

    Exhibit
      10.1

     

    

     

    September
      12, 2006

     

    Patrick
      M. Ritto

    PO
      Box
      3361

    Rancho
      Santa Fe, CA 92067-3361

     

    Dear
      Patrick,

    

    On
      behalf
      of VitalStream, Inc., I am pleased to offer you the exempt position of Chief
      Technology Officer (CTO) starting on September 18, 2006. In this capacity you
      will report to Philip N. Kaplan, President & Chief Operating
      Officer.

    

    Base
      compensation for the position is $190,000 annually ($7,917 per pay period)
      with
      two pay periods per month in accordance with VitalStream’s payroll practices
      (see the VitalStream employee manual for additional details). Additionally,
      you
      will be eligible to receive an annual bonus targeted at 30% of your annual
      base
      salary. The bonus criteria would be based on achieving predetermined goals
      set
      by the Company’s Board of Directors or its Compensation Committee, which for the
      balance of 2006 will be on a pro rata basis. The actual amount of bonus payment
      would take into consideration under or over achievement of the various
      components of the bonus criteria and therefore could result in a payment less
      than or greater than 30% of your annual base salary. 

    

    Management
      will request that the VitalStream Board of Directors grant to you an option
      to
      purchase 125,000 shares of VitalStream Holdings, Inc. common stock at an
      exercise price equal to the closing price of the stock on the date of grant,
      with vesting and other terms consistent with Board policy. 

    

    The
      Company will advance to you $15,000 to defray moving expenses that you may
      incur
      in relocating to the Orange County, California area, with the understanding
      that
      if you voluntarily resign from your employment or are terminated for cause
      withinone year after your commencement date you are required to re-pay the
      company this sum.

    

    It
      is
      important to note that our company adheres to the policy of employment-at-will,
      which enables either the company or the employee to terminate employment at
      any
      time with or without reason.

    

    Any
      controversy or claim arising out of, or relating to your employment with the
      company or termination of employment, shall be settled by final and binding
      arbitration in the city of Irvine, State of California, and governed by the
      law
      in and of the State of California and administered by the American Arbitration
      Association under its National Rules for Resolution of Employment Disputes.
      Judgment upon the award rendered by the arbitrator(s) may be entered in any
      court of competent jurisdiction.

    

    The
      claims covered by this agreement to arbitrate include, but are not limited
      to
      claims for breach of contract, covenant of good faith and fair dealing, wage
      claims, wrongful termination in violation of public policy, retaliatory or
      constructive discharge, wrongful demotion, discrimination, harassment, or
      retaliation prohibited by law, tort claims, claims for violation of public
      policy or any other claim of a violation of a legally protected right afforded
      by State or Federal law, including, but not limited to, the California Fair
      Employment and Housing Act, Title VII of the Civil Rights Act, the Age
      Discrimination in Employment Act, the Americans with Disabilities Act, and
      the
      California Labor Code.

    

    This
      agreement to arbitrate excludes claims for normal workers’ compensation benefits
      and unemployment insurance benefits. You and VitalStream agree that neither
      shall initiate nor file any lawsuit or administrative action (other than a
      charge with the National Labor Relation Board, the Equal Employment Opportunity
      Commission, or the Department of Fair Employment and Housing) in any way related
      to any claim covered by this agreement to arbitrate.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Patrick
      Ritto

    September
      12, 2006

    Page
      2

    

    

    Your
      first ninety (90) days of employment at VitalStream are considered an
      Introductory Period, and during that period you will accrue holiday pay benefits
      described in the Employee Manual, and benefits otherwise required by law. PTO
      benefits described in the Employee Manual will begin accruing after the
      successful completion of your Introductory Period. Under our current insurance
      plan agreement, you will be eligible for health, vision and dental insurance
      beginning on the first day of the month following your date of
      hire.

    

    VitalStream
      is a multimedia content company. In the ordinary course of business, VitalStream
      and its clients handle and display a wide variety of material that may or may
      not seem offensive depending on the individual. Therefore, by signing this
      letter, you acknowledge and accept that you may be directly or indirectly
      exposed to such content as part of your employment at VitalStream, and you
      assume the risk of such exposure.

    

    In
      accordance with VitalStream policy, final confirmation of this employment offer
      is contingent upon the successful completion of VitalStream’s Background
      Verification process. This offer is also contingent on your reviewing and
      signing our standard employee documents, such as our confidentiality and
      work-for-hire agreement and employee manual.

    

    This
      letter shall constitute the entire Agreement between the parties regarding
      terms
      of employment, and shall supersede any and all understandings on this matter,
      whether written or oral, and shall not be deemed amended, waived, or modified
      unless such amendment, waiver or modification is in writing and signed by an
      authorized officer of VitalStream. 

    

    Most
      importantly, we work hard, we have fun, and we plan to continue developing
      a
      world-class content delivery company. I am pleased to have you as part of our
      team.

    

    Unless
      accepted by you, this offer expires at the close of business on Friday,
      September 15, 2006. Your acceptance of this offer will be indicated by your
      signature below and return to VitalStream. Please return to VitalStream’s Human
      Resources department by confidential fax (949) 743-2006 a copy of this letter
      signed by you.

    

    Sincerely,

     

    VitalStream,
      Inc.

    

    /s/
      Cindy
      LeBeau

    

    Cindy
      LeBeau

    Human
      Resources Manager

    

     

    
      	Agreed
              & Accepted:	
              Date

            

    

    

    

    
      	/s/
              Patrick M. Ritto
              
              

            	
              9/13/06
                
                

              

            

    

    Patrick
      M. Ritto

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