Document:

DEBT
SETTLEMENT AGREEMENT

 

This
DEBT SETTLEMENT AGREEMENT (this “Agreement”) is dated June 17, 2015 (the “Effective Date”), by and between
Leone Group, LLC (“LA”) and American Capital Ventures, Inc. (“ACV”) (collectively the “Holders”),
and Quint Media, Inc., a Nevada corporation (“QUNI” or “Company”).

 

R
E C I T A L S:

 

WHEREAS,
LA is the holder of three convertible promissory notes, in the original principal amounts of $5,000.00, $2,500.00, and $2,000.00,
issued by the Company on April 27, June 4, and June 11, 2015, respectively (the “LA Notes”), of which a total of $9,565.64,
consisting of $9,500.00 of principal and approximately $65.64 of accrued and unpaid interest (the “LA Debt”), is currently
owed to LA pursuant to the LA Notes.

 

WHEREAS,
ACV is the holder of three convertible promissory notes, in the original principal amounts of $5,000.00, $2,500.00, and $2,000.00,
issued by the Company on April 27, June 4, and June 11, 2015, respectively (the “ACV Notes”), of which a total of
$9,565.64, consisting of $9,500.00 of principal and approximately $65.64 of accrued and unpaid interest (the “ACV Debt”),
is currently owed to ACV pursuant to the ACV Notes.

 

WHEREAS,
the LA Debt and ACV Debt are collectively hereinafter referred to as the Notes.

 

WHEREAS,
the Holders and QUNI want to settle all of the outstanding debt of the Notes through the conversion of each of the Holders’
respective portions of the Notes into shares of restricted common stock of QUNI (“Common Stock”), pursuant to Section
3(a)(9) of the Securities Act of 1933, as amended (“Securities Act”).

 

NOW,
THEREFORE, in consideration of the premises and of the terms and conditions herein contained, the parties mutually agree as
follows:

 

1.
Conversion of Note.

 

1.1
Conversion Price. As of the Effective Date, QUNI and the Holders agree to settle all of the outstanding debt owed under
the Notes, and the Holders shall convert their respective portions of the Notes into shares of restricted Common Stock at the
fixed conversion price of approximately $0.003 (the “Settlement Price”) per share, which shall result in QUNI’s
issuance of a total of 6,377,093 shares of restricted Common Stock (the “Shares”).

 

1.2
Pursuant to this Section 1, and upon the Effective Date, LA shall receive 3,188,546 shares of restricted Common Stock in exchange
for the entirety of the LA Debt.

 

1.3
Pursuant to this Section 1, and upon the Effective Date, ACV shall receive 3,188,546 shares of restricted Common Stock in exchange
for the entirety of the ACV Debt.

 

    	 

    	 

    

 

2.
Representations and Warranties of QUNI.

 

2.1
Authorization. The execution, delivery and performance by QUNI of this Agreement and the performance of all of QUNI’s
obligations hereunder have been duly authorized by all necessary corporate action, and this Agreement has been duly executed and
delivered by QUNI. This Agreement constitutes the valid and binding obligation of QUNI enforceable in accordance with its terms.
The execution and performance of the transactions contemplated by this Agreement and compliance with its provisions by QUNI will
not conflict with or result in any breach of any of the terms, conditions, or provisions of, or constitute a default under, its
Certificate of Incorporation or Bylaws or any agreement to which QUNI is a party or by which it or any of its properties is bound.

 

2.2
Issuance of Shares. The issuance and delivery of the Shares in accordance with this Agreement have been duly authorized
by all necessary corporate action on the part of QUNI, and the Shares to be delivered pursuant to this Agreement, when so delivered,
will have been duly and validly authorized and issued by the Company and will be fully paid and nonassessable.

 

2.3
Binding Obligation. Assuming the due execution and delivery of this Agreement, this Agreement constitutes the valid and
binding obligation of QUNI, enforceable against QUNI in accordance with its terms, subject, as to enforcement, (i) to bankruptcy,
insolvency, reorganization, arrangement, moratorium and other laws of general applicability relating to or affecting creditors’
rights and (ii) to general principles of equity, whether such enforceability is considered in a proceeding in equity or at law.

 

3.
Representations and Warranties of the Holders.

 

3.1
Authorization. Each of the Holders has full power and authority to enter into this Agreement, to perform its obligations
hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. This Agreement constitutes a valid
and legally binding obligation of each of the Holders, enforceable in accordance with their respective terms.

 

3.2
Restricted Securities. None of the Shares are registered under the Securities Act of 1933, as amended (the “Securities
Act”), or any state securities laws. The Holders understand that the Shares may not be sold, transferred or otherwise
disposed of without registration under the Securities Act or an exemption therefrom.

 

4.
Miscellaneous.

 

4.1
No Third Party Beneficiaries. This Agreement shall not confer any rights or remedies upon any person other than the parties
and their respective successors and permitted assigns.

 

4.2
Entire Agreement. This Agreement (including the documents referred to herein) constitutes the entire agreement among the
parties and supersedes any prior understandings, agreements, or representations by or among the parties, written or oral, to the
extent they related in any way to the subject matter hereof.

 

    	- 2 -

    	 

    

 

4.3
Counterparts. This agreement may be executed in one or more counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument.

 

4.4
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida (without
regard to conflict of laws).

 

4.5
No Waiver/Amendments. Any waiver by any party to this Agreement of any provision of this Agreement shall not be construed
as a waiver of any other provision of this Agreement, nor shall such waiver be construed as a waiver of such provision respecting
any future event or circumstance. No amendment of any provision of this Agreement shall be valid unless the same shall be in writing
and signed by all of the Holders and QUNI.

 

4.6
Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction
shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability
of the offending term or provision in any other situation or in any other jurisdiction.

 

4.7
Costs. Each party will bear the costs and expenses incurred by it in connection with this Agreement and the transaction
contemplated thereby.

 

4.8
Survival of Terms. All representations, warranties and covenants contained in this Agreement or in any certificates or
other instruments delivered by or on behalf of the parties hereto shall be continuous and survive the execution of this Agreement
and the Closing.

 

4.9
Assignment. This Agreement shall be binding upon the parties hereto and their respective successors and assigns and shall
inure to the benefit of any assignee, subject to the terms and conditions hereof.

 

4.10
Notices. Notices hereunder shall be given only by personal delivery, registered or certified mail, return receipt requested,
overnight courier service, or telex, telegram, facsimile or other form of electronic mail and shall be deemed transmitted when
personally delivered or deposited in the mail or delivered to a courier service or a carrier for electronic transmittal or electronically
transmitted by facsimile (as the case may be), postage or charges prepaid, and properly addressed to the particular party to whom
the notice is to be sent.

 

4.11
Headings. The headings used in this Agreement are for convenience only and shall not by themselves determine the interpretation,
construction or meaning of this Agreement.

 

4.12
Attorneys’ Fees and Costs. In the event any party to this Agreement shall be required to initiate legal proceedings
to enforce performance of any term or condition of this Agreement, including, but not limited to, the interpretation of any term
or provision hereof, the payment of moneys or the enjoining of any action prohibited hereunder, the prevailing party shall be
entitled to recover such sums in addition to any other damages or compensation received, as will reimburse the prevailing party
for reasonable attorneys’ fees and court costs incurred on account thereof (including, without limitation, the costs of
any appeal) notwithstanding the nature of the claim or cause of action asserted by the prevailing party.

 

    	- 3 -

    	 

    

 

IN
WITNESS WHEREOF, the Holders and QUNI have caused this Agreement to be executed as of the day and year first above written.

 

	 	HOLDERS:
	 	 	 
	 	LEONE
    GROUP, LLC
	 	 	 
	 	By:
    	/s/
    Laura Anthony
	 	Name: 	Laura Anthony
	 	Title: 	Managing Member
	 	 	 
	 	AMERICAN
    CAPITAL VENTURES, INC.
	 	 	 
	 	By:
    	/s/
    Howard Gostfrand
	 	Name: 	 Howard Gostfrand
	 	Title: 	President
	 	 	 
	 	THE
    ISSUER:
	 	 	 
	 	QUINT
    MEDIA, INC.
	 	 	 
	 	By:
    	/s/
    Constantin Dietrich
	 	Name: 	Constantin Dietrich
	 	Title: 	 Chief Executive
    Officer

 

    	- 4 -ex10-1.htm

Exhibit 10.1

 

		
 

	
 

	
932 Southwood Boulevard

	
Incline Village, NV 89451

	
Phone: (775) 832-8500

	
Fax:      (775) 832-8501

	
 

	
 

 

 

 

 

May 18, 2015

 

 

Dear Steffen:

 

On behalf of PDL BioPharma, Inc. (‘PDL’ or ‘we’), I am pleased to extend to you an employment offer for the position of Controller and Chief Accounting Officer. We would work with you to select a start date within a reasonable time of the date of this offer letter. You would report to me as PDL’s Chief Financial Officer (the ‘CFO’). You would be expected to work full time at our principal place of business at 932 Southwood Boulevard, Incline Village, Nevada 89451.

 

You agree that you will devote your full business time and efforts to PDL. You agree that you will not engage in any other business or serve in any position with, or as a consultant or adviser to, any other corporation or entity (including as a member of such corporation’s or entity’s board of directors or other governing or advising body), without the prior written consent of PDL’s Board. Notwithstanding the foregoing, but only for so long as such activities in the aggregate do not materially interfere with your duties hereunder or create a business or fiduciary conflict, you will not be prohibited from (i) participating in charitable, civic, educational, professional, community or industry affairs (including membership on boards of directors), (ii) managing your passive personal investments, and (iii) continuing your service in the positions that you held as of the date of this Offer Letter, which positions you have disclosed to the Board, provided that any such service obligation is not materially increased beyond what you have disclosed to us.

 

This offer is contingent upon approval by our Board of Directors which is expected by May 20, 2015. 

 

Base Salary

 

Your annual base salary (as in effect from time to time, ‘Base Salary’) will be $260,000, less applicable taxes and withholdings, and will be payable in accordance PDL’s payroll procedures. Your Base Salary shall be reviewed each year but will not be subject to decrease unless such decrease is part of an overall reduction effected for executive officers of PDL. 

 

 

 

 

 

Mr. Steffen Pietzke

May 18, 2015

Page 2

 

 

Target Bonus

 

Your annual target bonus will be set at thirty percent (30%) of your annual Base Salary. Your bonus will be based seventy-five percent (75%) on your contribution to PDL’s achievement of its goals and objectives and twenty-five percent (25%) on your individual performance as determined by the CFO and the Compensation Committee of the Board. For additional details regarding the 2015 Bonus Plan, please see Attachment A. We will work together to develop your personal goals for 2015.

 

Long-Term Incentive

 

Effective ten (10) days following your hire date, PDL will grant you a long term incentive award (the ‘Long-Term Incentive’) comprised of two components: (i) the right to receive $212,600 in cash; and (ii) a number of unvested restricted shares of PDL common stock with a Grant Value equal to $91,140. For this purpose, ‘Grant Value’ means the closing price of PDL's common stock on the tenth (10th) day following your hire date or, if the tenth (10th) day following your hire date is not a trading day, then the closing price of the next trading day. Your entitlement to the 2015-2019 Long-Term Incentive may be pro-rated based on the date of employment.  The stock grant will be contingent upon the approval of the Compensation Committee of the Board of Directors.  

 

Subject to your continued employment through December 12, 2016, 50% of the Long-Term Incentive will vest and become payable upon December 12, 2016 (‘Vesting Date’), and 16.66% will vest and become payable on December 12 of each of 2017, 2018 and 2019.  

 

Dividend payments and other distributions made on the restricted share component of the Long-Term Incentive during the Vesting Period will accrue through the Vesting Period and will be paid, plus interest (based on the prevailing interest rate of the Merrill Lynch FFI Select Institutional Fund), to you on the Vesting Date. 

 

In the event of a Change in Control, (i) the vesting of the restricted stock award, (ii) the payment of any accrued but unpaid dividends or other distributions, plus interest (at the rate set forth above), and (iii) the payment of the target cash payment, plus any Adjustments that the Compensation Committee determines has been earned as of the Change in Control, will accelerate and pay in connection with the Change in Control. 

 

The Compensation Committee has indicated that it intends to adopt annually long term incentive plans similar to the above 2015/19 Long Term Incentive Plan. The Compensation Committee reserves the right to modify any or all of the terms of future long term incentive plans, including the cessation of such future long term incentive plans. 

 

For additional details regarding the Long-Term Incentive program, please see Attachment B.

 

 

 

 

 

Mr. Steffen Pietzke

May 18, 2015

Page 3

 

 

Termination without Cause or Resignation for Good Reason

 

If you are terminated without Cause or resign for Good Reason, (a) you will receive a lump sum cash payment equal to (i) one hundred percent (100%) of the sum of your Base Salary in effect immediately prior to the time of separation, (ii) seventy-five percent (75%) of the sum of your annual target bonus for the year in which separation occurs and (iii) twelve months of COBRA Benefits and (b)(i) any unvested cash payments and equity awards under any long-term incentive plan in effect at the date of separation shall ratably accelerate, vest and pay in proportion to the time lapsed during the vesting period, as increased by any adjustments and milestones earned by the time of payment and (ii) any accrued and unpaid dividends and interest on the then unvested equity awards shall vest and pay; provided that such payment and other benefit shall be contingent upon your signing a release of all claims against PDL in a form acceptable to the Company. 

 

For additional details regarding your severance benefits and the meanings of ‘Cause’ and ‘Good Reason,’ please see Attachment C.

  

Housing and Relocation Assistance

 

Because PDL is domiciled in Nevada and because of your need to relocate, PDL will provide assistance to you to rent or purchase housing in Nevada proximate to PDL’s offices. PDL will pay up to $2,500 per month for five years in housing assistance. In addition, to defray your moving expenses, PDL will reimburse you for such relocation expenses up to $20,000. 

 

Health and Related Benefits

 

Through TriNet, PDL provides a welfare benefits package, including a comprehensive medical policy and dental plan, as well as life insurance coverage, in which you will be eligible to participate in accordance with PDL guidelines. In general, PDL pays 100% of premiums for employee medical, employee dental and employee vision coverage. In addition,

PDL funds between 90% and 95% of premiums for medical, dental and vision coverage for spouse, dependent, and domestic partner coverage. Exact reimbursement varies by plan selected. 

For a summary of these benefits and your options, please see Attachment D. 

 

Holidays, Vacation and Sick Leave

 

In 2015, full-time employees will be paid as if they worked ten (10) designated holidays. PDL also offers one (1) Unrestricted Floating Holiday during the calendar year to regular full-time employees. An Unrestricted Floating Holiday may be used at any time for any occasion, provided that the employee obtains advance management approval for the scheduled usage of the Unrestricted Floating Holiday. 

 

In addition, each full-time employee accrues vacation time based on the number of regular hours worked. In any calendar year, you can accrue up to one hundred and sixty hours (160) hours or twenty (20) days of paid vacation time. Usage and scheduling of time off is subject to the direction and approval of your supervisor. 

 

 

 

 

 

Mr. Steffen Pietzke

May 18, 2015

Page 4

 

 

Finally, PDL offers sick leave when your own illness prevents you from reporting to work. Your sick leave is calculated in increments for each pay period and, like vacation time, is based upon hours worked. You can accrue up to forty-eight (48) hours or six (6) days of sick leave annually. For additional details regarding these policies, please see Attachment D. 

 

401(k) Plan

 

Through Fidelity, PDL provides the opportunity for its employees to participate in our 401(k) Plan. Under the terms of PDL’s 401(k) Plan, the company matches 100% of the employee’s contribution up to 3% of their salary and matches 50% of the employee’s contribution from 3% to 5% of their salary. Vesting under the 401(k) Plan is immediate. The Compensation Committee reserves the right to modify any or all of the terms of PDL’s 401(k) Plan, including cessation of the 401(k) Plan. 

 

Other Important Information

 

Your employment with PDL will not be for a set term, and you will be an at-will employee. As a PDL employee, you will be free to resign at any time, just as we will be free to terminate your employment at any time, with or without Cause. There will be no expressed or implied agreements to the contrary. 

 

PDL intends that payments and benefits provided to you pursuant to this Offer Letter be exempt from or comply with all applicable requirements of Section 409A of the Internal Revenue Code of 1986, as amended. Any ambiguities in this Offer Letter shall be construed in a manner consistent with such intent. 

 

For purposes of federal immigration law, you will be required to provide PDL documentary evidence of your identity and eligibility for employment in the United States. We will also request your authorization to complete a pre-employment background check.

 

To indicate your acceptance of our offer, please sign and date this Offer Letter in the space provided below and return it, along with a signed copy of the enclosed Proprietary Information and Invention Assignment Agreement, to Peter Garcia. By executing this Offer Letter, you hereby represent that your execution hereof and performance of your obligations hereunder do not and will not contravene or otherwise conflict with any other agreement to which you are a party or any other legal obligation applicable to you. This Offer Letter, along with the Proprietary Information and Invention Assignment Agreement, supersedes any prior representations or agreements, whether written or oral, with respect to our offer of employment to you. This Offer Letter may not be modified or amended except by a written agreement, signed by PDL and you.

 

We are very excited at the prospect of your joining the PDL team and look forward to your immediate contribution. I personally look forward to working with you. 

 

 

 

 

 

Mr. Steffen Pietzke

May 18, 2015

Page 5

 

 

 

Sincerely,

 

	
PDL BioPharma, Inc. 
	
Accepted by:
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
Peter S. Garcia 
	
Steffen Pietzke
	
 

	
 
	
 
	
 

	
VP, Chief Financial Officer
	
 
	
 

	
 
	
/s/ Steffen Pietzke
	
 

	
 
	
Date 5-19-2015

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