Exhibit 10.3

DATED                           2005

 

 

MIVA (UK) LIMITED

and

ADAM POULTER

 

 

___________________________________________

EXECUTIVE SERVICE AGREEMENT
___________________________________________

 

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TABLE OF CONTENTS

1.      INTRODUCTION 1       2.      COMMENCEMENT OF EMPLOYMENT AND TERM 1      
3.      JOB TITLE AND DUTIES 2       4.      REMUNERATION 3       5.      PLACE
OF WORK 6       6.      HOURS OF WORK 6       7.      BENEFITS 6       8.     
HOLIDAY ENTITLEMENT 8       9.      SICKNESS/INCAPACITY 9       10.     
TERMINATION 10       11.      CONFIDENTIALITY 13       12.      RESTRICTIONS
DURING EMPLOYMENT 15       13.      POST-TERMINATION RESTRICTIONS 15      
14.      INTELLECTUAL PROPERTY RIGHTS 17       15.      GRIEVANCE AND
DISCIPLINARY PROCEDURE 18       16.      DATA PROTECTION 18       17.     
TELECOMMUNICATIONS 19       18.      ASSOCIATED AND PARENT COMPANY 19      
19.      NOTICES 20       20.      APPLICABLE LAW 20       21.     
MISCELLANEOUS 20

 

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THIS AGREEMENT is made on
                                                        2005

BETWEEN:

(1) MIVA (UK) LIMITED whose company registration number is 3971244 and whose
registered office is at First Floor, Euston Xchange, 194 Euston Road, London NW1
2DA (the “Company”); and

    (2) ADAM POULTER of Waytefield, 9 Long Wood Drive, Jordans, Buckinghamshire,
HP9 2SS (“you” or “your”).

    1. INTRODUCTION

        1.1 This Agreement is in substitution for any previous agreement or
arrangement between you and the Company which shall be deemed to be terminated
by mutual agreement on the date hereof. The Company agrees to employ you and you
agree to be employed by the Company on and subject to the terms and conditions
set out in this Agreement and you hereby waive your rights to bring any claim
against the Company in respect of the termination of any previous agreement or
arrangement between you and the Company.

        1.2 References in this Agreement to statutes or regulations shall
include any statute or regulation modifying, re-enacting, extending or made
pursuant to the same or which is modified, re-enacted or extended by the same.
Headings are for ease of reference only and shall not be taken into account in
the construction of this Agreement. Words importing the singular number shall
include the plural and vice versa and words importing the masculine shall
include the feminine and neuter and vice versa.

    2. COMMENCEMENT OF EMPLOYMENT AND TERM

        2.1 Your employment with the Company under the terms of this Agreement
will begin on 14 October 2005 (your “Start Date") and will continue until
terminated in accordance with this Agreement.

        2.2 You warrant that by entering into and performing your obligations
under this Agreement, you will not be in breach of any agreement with or
obligation owed by you to any third party and that the Company may lawfully
employ you in the UK. You undertake to indemnify and hold harmless the Company
against all claims, costs, damages, liabilities and expenses which the Company
may incur in connection with any claim that you were, or are, not so at liberty.

 

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3. JOB TITLE AND DUTIES

        3.1 You are employed as Managing Director, Europe. You will report to
the Chief Operating Officer of the Company’s ultimate parent (your “manager”).
You recognise and acknowledge that this position is one of trust and confidence
and that you will have access to Confidential Information (as described in
Clause 11.1 of this Agreement). This is a key position in which you have a
special obligation to further the interests of the Company and of its Associated
Companies and to develop its and/or their businesses.

        3.2 During the continuance of your employment you will:

            3.2.1 unless prevented by ill health or incapacity devote the whole
of your attention and abilities to carrying out your duties under this
Agreement;

            3.2.2 faithfully and diligently perform such duties and exercise
such powers consistent with them as your manager may from time to time properly
assign to or confer on you (provided that such duties and powers are
commensurate with your status and skills);

            3.2.3 (if and so long as your manager so directs) perform and
exercise the said duties and powers on behalf of any Associated Company and act
as a director or other officer of any Associated Company;

            3.2.4 do all in your power to protect promote develop and extend the
business interests and reputation of the Company and of any Associated
Companies;

            3.2.5 at all times and in all respects conform to and comply with
the Memorandum and Articles of the Company (as amended from time to time), with
the policies and procedures of the Company and of any Associated Company that
are in force from time to time and which relate to your employment, and with the
lawful and reasonable directions your manager; and

            3.2.6 promptly give to your manager (in writing if so requested) all
such information explanations and assistance as it may require in connection
with the business and affairs of the Company and any Associated Company for
which you are required to perform duties.

 

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4. REMUNERATION

        4.1 Your salary will be paid at a rate of £200,000 per annum. Your Basic
Salary will be reviewed during January 2006 and thereafter will be reviewed
annually during the last quarter of each year but without any commitment on the
Company to increase your Basic Salary. No salary review will result in a
decrease in your Basic Salary.

        4.2 Your Basic Salary will be paid monthly in arrears in twelve equal
monthly instalments on or about the last day of each month by credit transfer
into a bank or building society account nominated by you.

      Deductions from wages

        4.3 For the purposes of Part II of the Employment Rights Act 1996 you
hereby authorise the Company to deduct from your Basic Salary, or any other sums
due to you from the Company, any sums due from you to the Company, including
without limitation any overpayment of salary, or in accordance only with clause
8.4 accrued holiday pay.

      Expenses

        4.4 You will be reimbursed for reasonable business expenses properly
incurred in the performance of your duties in accordance with Company policy on
submission of appropriate receipts and such supporting evidence as the Company
may from time to time reasonably require.

        4.5 Director’s liability insurance

      The Company shall maintain in force directors’ liability insurance, at a
reasonable level, in respect of the performance by you of your duties, excepting
in respect of any claims which arise as the result of a criminal act, act of
gross negligence or act in breach of your fiduciary duties as a director of the
Company.

      Fees

        4.6 You shall not be entitled to any director’s or other fees from the
Company or any Associated Company or to any fees in respect of any office you
may hold as nominee or representative of the Company and/or of an Associated
Company unless otherwise agreed in writing between the parties to this
Agreement.

        Bonus         4.7 Except in respect of the financial year ending 31
December 2005, you are entitled to receive an annual bonus of up to £100,000 per
annum, depending on meeting and/or exceeding objectives set by your manager from
time to time based on, inter alia, the Company’s annual financial targets. You
acknowledge that if the objectives are not fully met, you may receive no bonus.

 

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4.8 Provided you have not given or been given notice to terminate your
employment as at the date your bonus is payable, your bonus for the year ending
31 December 2005 (the “2005 Bonus”) will be:

           £20,000 plus (£50,000 x A),

           where “A” = the number of days you are actually employed in 2005

                                                                       365

      If the Company beats its financial targets for such financial year, “A”
will be increased by three percent (3%) for every one percent (1%) that the
Company is over target.

    4.9 Your bonus will be paid annually once the Company's annual financial
statements have been audited (which is anticipated to be in the first quarter
after each financial year end of the Company) on or about the last day of the
relevant month by credit transfer into a bank or building society account
nominated by you.

    4.10 If you have given or been given notice to terminate your employment as
at the date your 2005 Bonus is payable, you will receive no 2005 Bonus.
Otherwise, if your employment with the Company is terminated by the Company
without Cause (as defined below) or by you for Good Reason (as defined below)
before the date your next bonus is payable, you will be entitled to a pro rata
amount for each full quarter you are employed by the Company, which will be paid
once the Company’s financial statements for such quarter(s) have been finalised.

    4.11 “Good Reason” means any one or more of the following grounds:

    (i) a change in your title(s), status, position or responsibilities without
your written consent, which does not represent a promotion from your existing
status, position or responsibilities, despite your written notice to the Company
of your objection to such change and the Company’s failure to address such
notice in a reasonable fashion within 30 days of such notice;

    (ii) the assignment to you of any duties or responsibilities which are
inconsistent with your status, position or responsibilities, despite your
written notice to the Company of your objection to such change and the Company’s
failure to address such notice in a reasonable fashion within 30 days of such
notice;

    (iii) if there is a reduction in your Basic Salary;

 

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(iv) a breach by the Company of any material term or provision of this
Agreement;

    (v) a relocation of the Company’s offices at First Floor, Euston Xchange,
194 Euston Road, London NW1 2DA to a location more than 35 miles from Euston
Xchange, along with a request that you make the relocated office the primary
office from which you work for the Company; unless the recommendation to change
the Company’s offices in such a situation is made or endorsed by you.”

      “Cause” shall refer only to any one or more of the following grounds:

    (i) commission of a material and substantive act of theft, including, but
not limited to, misappropriation of funds or any property of the Company or any
Associated Company;

    (ii) intentional engagement in activities or conduct clearly injurious to
the best interests or reputation of the Company or any Associated Company which
in fact result in material and substantial injury to the Company or any
Associated Company;

        (iii) refusal to perform your assigned duties and responsibilities (so
long as the Company does not assign any duties or responsibilities which would
give the you Good Reason to terminate your employment) after receipt by you of
written detailed notice and reasonable opportunity to cure;

        (iv) gross insubordination by you, which shall consist only of a wilful
refusal to comply with a lawful written directive to you issued pursuant to a
duly authorized resolution adopted by the Board of Directors of the Company (so
long as the directive does not give the you Good Reason to terminate your
employment);

        (v) the clear violation of any of the material terms and conditions of
this Agreement or any written agreement or agreements you may from time to time
have with the Company (following 30 days' written notice from the Company
specifying the violation and your failure to cure such violation within such 30
day period);

    (vi) your substantial dependence, as determined by the Board of Directors of
the Company, on alcohol or any narcotic drug or other controlled or illegal
substance which materially and substantially prevents you from performing your
duties hereunder; or

    (vii) the final and unappealable conviction of you of a crime, which, in the
reasonable opinion of the Board of Directors of the Company adversely affects
your ability to carry out your role or reputation of the Company.

 

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  4.12 Any bonus payments will be subject to the deduction of income tax and
national insurance contributions.

        5. PLACE OF WORK

        5.1 Your normal place of work is the Company’s offices at First Floor,
Euston Xchange, 194 Euston Road, London NW1 2DA or any such other place as the
Company may from time to time reasonably require.

        5.2 You will be required to work at other locations from time to time to
meet the needs of the Company's business, both inside and outside the UK. You
will be required to travel on the business of the Company to such places as may
be reasonably necessary for the proper performance of your duties, both inside
and outside the UK.

    6. HOURS OF WORK

        6.1 The Company’s normal business hours are 9.00 am to 6.00 pm Monday to
Friday (inclusive).

        6.2 Your remuneration package is calculated on the basis that you will
work as necessary during as well as outside normal business hours in order
properly to perform your duties. Accordingly, you will not be paid for any
additional hours worked outside normal business hours.

        6.3 Because of the autonomous nature of your role, the duration of your
working time is not measured or monitored, or determined by the Company and the
limit on weekly working time set out in Regulation 4 of the Working Time
Regulations 1998 (or such other regulations amending or subsisting those) from
time to time) (the “Regulations”) does not apply to your employment.

    7. BENEFITS

 

  Pension Scheme         7.1 You will be eligible for membership of such pension
scheme as the Company may operate for the benefit of its employees in accordance
with its obligations under the Welfare Reform and Pensions Act 1999 and the
Stakeholder Pension Scheme Regulations 2000. The Company will not make
contributions on your behalf into such scheme.

 

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7.2 A contracting-out certificate is not in force in respect of your employment
with the Company for the purpose of the Pension Schemes Act 1993.

      Share Options

    7.3 On the Start Date and pursuant to the terms of the 2004 Stock Incentive
Plan (the “Plan) and the stock option agreements issued in accordance with the
Plan you will be granted options to acquire at Fair Market Value (as defined in
the Plan) an aggregate of 65,000 shares of Common Stock of the Company’s
Ultimate parent, of which 16,250 options will vest on each of the first four
anniversaries of this Agreement.  The board of directors of the Company’s
Ultimate parent (“Board of Directors”) or its compensation committee (“the
Compensation Committee”), as applicable, shall review your performance on an
annual basis and pursuant to the same review process employed by the Board of
Directors for its other executive officers.  In connection with such annual
review, you may be entitled to receive additional grants of stock options.  Such
additional options will be granted, if at all, in the sole discretion of the
Board of Directors or the Compensation Committee on terms and conditions they
determine. Notwithstanding the foregoing and provided you continue to be
employed by the Company on the 2 January 2006 you shall receive an additional
grant of stock options, again at Fair Market Value, on that date for 50,000
shares, subject to standard vesting and termination provisions.

    7.4 If there is a change in control (as that term is used in the governing
documents of any stock option agreement) of the Company’s Ultimate parent
consummated:

      (i)  within three (3) months of the Start Date, 50% of any stock options
granted to you shall fully vest on the date the change in control is consummated
and shall remain exercisable during the term of such option(s) as if you were
still employed by the Company; or

      (ii)  after three (3) months of the Start Date, any stock options granted
to you shall fully vest on the date the change in control is consummated and
shall remain exercisable during the term of such option(s) as if you were still
employed by the Company. 

      Additionally, notwithstanding any provisions to the contrary in any stock
option agreements or plans, if your employment with the Company is terminated by
the Company without Cause or by you for Good Reason, any stock options granted
to you shall immediately fully vest and remain exercisable during the term of
such options.

 

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7.5 Notwithstanding anything herein to the contrary, the Company and/or its
Ultimate parent, in its or their sole discretion, may grant you restricted stock
units or other equity compensation in lieu of stock options, provided the
substituted equity compensation gives you the opportunity to acquire the same or
a substantially similar amount of equity ownership in the Company’s Ultimate
parent as if you had been granted stock options, but adjusting such equity
compensation award to take into account whether you are required to pay any
consideration for the equity compensation as well as such other factors as the
Board of Directors or the Compensation Committee, as applicable, shall determine
in its or their sole discretion.

      Change Of Control

    7.6 Notwithstanding clauses 4.10 above and 10.1 to 10.4 inclusive below, if
there is a change of control (as defined in clause 7.4 above), then you will be
entitled to terminate your employment during the Window Period (as defined
below) upon seven days’ written notice to the Company, in which case, the
Company will pay you an amount equal to 100% of your then current annual Basic
Salary, but shall not be liable to you for any further payment or compensation.
The Basic Salary shall be paid in equal instalments over a twelve (12) month
period after the date your employment terminates in accordance with the terms of
this Agreement. “Window Period” shall mean the period of thirty (30) days
beginning 180 days after a change of control. If your employment is terminated
without notice or without payment in lieu of notice and without Cause, as
defined in clause 4.11 at any time after a change of control (as defined in
clause 7.4 above) through the end of the Window Period then, in lieu of any
claim against the Company you may have based on termination of your employment,
including as provided in Section 10 hereof (but excluding any claim in respect
of the vesting of stock options as provided for in clause 7.4), you shall be
entitled to 100% of your then current annual Basic Salary payable as set forth
in the preceding sentence.

    8. HOLIDAY ENTITLEMENT

        8.1 Your paid annual holiday entitlement is 25 days per year. In
addition, you are entitled to a maximum of eight days’ holiday on recognised
bank or public holidays. These entitlements include your statutory holiday
entitlement under the Regulations which, in each holiday year, shall be deemed
to be taken first. The Company’s holiday year is 1 January to 31 December.

 

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  8.2 Holidays must be taken at times convenient to the Company. Reasonable
notice of your intention to take holiday must be given to your manager and no
holiday shall be taken without consent in writing from your manager. No single
period of leave may exceed ten working days without the express consent of your
manager.

        8.3 The Company encourages employees to take all of their holiday
entitlement in the relevant holiday year. If this is not possible, then, with
the written consent of your manager, you may be permitted to carry a maximum of
two days of your accrued holiday entitlement into the next holiday year.

        8.4 On the termination of your employment other than for gross
misconduct, outstanding holiday entitlement will be paid on a pro-rata basis at
1/260th of annual salary for each day owing (based on an accrual rate of 2.0833
days’ holiday per month). Deductions from final salary due to you on the
termination of your employment will be made in respect of any holidays taken in
excess of entitlement on the same basis. The Company reserves the right to
require you to take holidays during any period of notice.

    9. SICKNESS/INCAPACITY

      Notification procedure

        9.1 If you are absent due to sickness or injury you must inform your
manager or the Company’s HR Director no later than 10:00 am on the first day of
absence.

        9.2 You will be required to produce a self-certification form in respect
of absences up to and including 5 working days. You must, on the 6th working day
of any absence, provide the Company with a medical certificate stating the
reason for the absence and thereafter provide a like certificate to cover any
subsequent period of absence, in advance. The Company reserves the right at any
time during your absence to ask you to produce a medical certificate.

        9.3 The Company reserves the right to ask you to undergo a medical
examination with a medical practitioner of its choosing at any time during a
period of absence due to illness or incapacity subject to the provisions of the
Access to Medical Reports Act 1988.

        Sick pay         9.4 Subject to your complying with the notification
procedures outlined above you will be paid your full salary entitlement,
inclusive of any Statutory Sick Pay but less any other Social Security sickness
benefit to which you are be entitled, for an aggregate of 30 working days of
absence due to illness or injury in any consecutive 12 month period. Thereafter,
any payment in excess of Statutory Sick Pay will be entirely at the Company’s
discretion.

 

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  9.5 If you are incapacitated as a result of any alleged action or wrong of a
third party and you decide to claim damages in respect thereof, then you will
use all reasonable endeavours to recover damages for loss of earnings over the
period for which salary has been or will be paid to you by the Company under
Clause 9.4 and will account to the Company for any such damages recovered (net
of the reasonable costs of recovery and an amount not exceeding the actual
salary paid or payable to you by the Company under Clause 9.4 in respect of the
said period). You will keep the Company informed of the commencement, progress
and outcome of any such claim.

        9.6 For the purposes of the Data Protection Act 1998 (“the DPA”), in the
event that you or a medical practitioner provides information to the Company
concerning your health, you hereby expressly consent to the Company retaining
such information on your personnel file for so long as is reasonably necessary
for the purposes of ensuring that it complies in full with its obligations under
health and safety legislation and of effectively managing the aspects of its
business in which you are involved. You undertake to sign any additional
consents that may be required for the Company to process such information for
such purposes.

    10. TERMINATION

        10.1 During the six (6) month period starting on your Start Date, either
party may terminate your employment by giving to the other party not less than
six (6) months’ notice in writing. At the end of such period, either party may
terminate your employment by giving to the other party not less than twelve (12)
months’ notice in writing.

        10.2 The Company reserves the right to terminate your employment without
notice, or without full notice, and to make a payment in lieu of notice. The
said payment in lieu of notice shall be of a sum equal to the value of the Basic
Salary which you would have received during the relevant notice period or part
thereof and any bonus payable under clause 4.9 only.

      No obligation to provide work

        10.3 Where either party gives notice to terminate this employment or
otherwise purports to terminate it, the Company may require you not to attend
for work and/or not to undertake any or all of your duties or to allocate other
duties to you, for such reasonable period as the Company may specify (the “Leave
Period”).

 

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10.4 During the Leave Period the Company:

        10.4.1 shall not be obliged to provide you with any work;

        10.4.2 may require you to resign as a director of the Company or any
Associated Company;

        10.4.3 shall continue to pay your Basic Salary and provide any other
benefits to which you are contractually entitled and you shall remain bound by
the terms and conditions of this Agreement (your attention is particularly drawn
to clause 12.1 below); and

        10.4.4 may require that you do not contact any colleagues or actual or
potential customers, clients or suppliers of the Company with whom you have had
dealings in the course of your employment without the prior consent in writing
of your manager and the Company’s HR Director;

        10.4.5 may require that you do not directly or indirectly and in
whatever capacity, engage in, carry on or be interested in, or be concerned
with, or provide services to or for any other business trade or occupation
whatsoever.

      Immediate termination

    10.5 The Company reserves the right to terminate your employment without
notice and without compensation or payment in lieu of notice in certain
circumstances, including, but not limited to, the following:

        10.5.1 you are guilty of gross misconduct;

        10.5.2 you commit any serious or (having been given notice in writing)
persistent breach of any of your obligations, whether under this Agreement or
otherwise, including poor performance or refusing or neglecting to comply with a
reasonable and lawful order or failing to abide by the policies and procedures
of the Company or any Associated Company that are in force from time to time;

        10.5.3 you commit any act of dishonesty whether relating to the Company
an Associated Company, an employee of the Company or associated Company or
otherwise;

        10.5.4 you have an interim receiving order made against you or you are
adjudged bankrupt or enter into any composition or arrangement with or for the
benefit of your creditors including a voluntary arrangement under the Insolvency
Act 1986;

 

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  10.5.5 you become of unsound mind or are or become a patient for the purposes
of any statute relating to mental health;

        10.5.6 you are or become prohibited by law from being a director;

        10.5.7 you resign as a director of the Company or any Associated Company
(without your manager’s written consent);

        10.5.8 you are guilty of any conduct tending in the reasonable opinion
of your manager to bring yourself, the Company or any Associated Company into
disrepute; or

        10.5.9 you are or become incapacitated for any cause whatsoever from
performing your duties under this Agreement for more than 17 weeks in aggregate
in any period of 52 consecutive weeks.

      General

    10.6 On termination of your employment for whatever reason, you shall
immediately tender your resignation from any offices of the Company or any
Associated Company that you may hold and from any other offices you may hold as
nominee or representative of the Company and for any Associated Company by
virtue of your employment without prejudice to any rights accruing to either
party to this Agreement and without any claim for compensation.

    10.7 The termination of your employment shall not affect those terms of this
Agreement which are expressed to have effect after termination and shall be
without prejudice to any accrued rights or remedies of the parties.

    10.8 In the event of the termination of your employment or the commencement
of the Leave Period, you hereby authorise the Company to appoint someone to be
your attorney and in your name and on your behalf to sign, execute and do all
such things as the Company thinks necessary or desirable to fully implement the
resignations referred to in Clauses 10.3 and 10.5.

      Return of Company Property

    10.9 On termination of employment for whatever reason or at such earlier
time as the Company may reasonably require you will immediately return to the
Company in accordance with its instructions all equipment, Confidential
Information documents, reports, notes, correspondence, discs, computer software
and data and any copies thereof and any other property belonging to the Company
or any Associated Company and which are in your possession, power or control.

 

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  Retirement

        10.10 The normal retirement age applicable to employees of the Company
is 65.

    11. CONFIDENTIALITY

        11.1 In addition to your common law obligations to keep confidential
information secret, you must not disclose to any person, firm or company,
otherwise than in the proper course of your duties or with the written consent
of the Company, any trade secret or information of a confidential nature
concerning the Business (as defined in clause 13.3) or any advertiser, partner,
private label partner or prospective advertiser, partner or private label
partner with whom the Company has had dealings during the course of your
employment (respectively referred to in this Agreement as “Business Partners”
and “Prospective Business Partners”), including, but not limited to:

            11.1.1 any trade secret or confidential or secret information
concerning the business development, affairs, future plans, business methods,
connections, operations, accounts, finances, organisation, processes, policies
or practices, designs, dealings, trading, software, or know-how relating to or
belonging to the Company and/or to any Associated Company or any of its Business
Partners or Prospective Business Partners;

            11.1.2 confidential computer software, computer-related know-how,
passwords, computer programmes, specifications, object codes, source codes,
network designs, business processes, business logic, inventions, improvements
and /or modifications relating to or belonging to the Company and/or any
Associated Company;

            11.1.3 details of the Company’s or any Associated Company’s
financial projections or projects, prices or pricing strategy, advertising,
marketing or development plans, product development plans or strategies, fee
levels, commissions and commission structures, market share and pricing
statistics, marketing surveys and research reports and their interpretation;

            11.1.4 any confidential research, report or development undertaken
by or for the Company or any Associated Company;

            11.1.5 details of relationships or arrangements with, or knowledge
of the needs or the requirements of, the Company’s or any Associated Company’s
Business Partners or Prospective Business Partners;

 

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    11.1.6 information supplied in confidence by customers, clients or any third
party to which the Company or any Associated Company owes an obligation of
confidentiality;

            11.1.7 lists and details of contracts with the Company’s or any
Associated Company’s actual or potential suppliers;

            11.1.8 information of a personal or otherwise of a confidential
nature relating to fellow employees, directors or officers of and/or consultants
to, the Company and/or any Associated Company for which you may from time to
time provide services;

            11.1.9 confidential information concerning, or details of, any
competitive business pitches, and/or target details;

            11.1.10 any document or information marked as confidential on its
face; or

            11.1.11 any document or information which has been supplied to you
in confidence or which you have been informed is confidential or which you might
reasonably be aware is confidential.

      Any information of the sort described in this clause 11.1 which you obtain
or become aware of during the course of your employment under this Agreement or
which, by virtue of your position, it may reasonably be assumed you have
obtained or become aware of shall be “Confidential Information” for the purposes
of this Agreement.

    11.2 You undertake to use reasonable endeavours to prevent unauthorised
publication or disclosure to any third party of any Confidential Information as
defined in Clause 11.1 (save as may be required by law or a duly authorised
regulatory body).

    11.3 The provisions in Clauses 11.1 and 11.2 shall continue to apply after
termination of employment, howsoever arising, without any time limit but shall
cease to apply to any information or knowledge which may at any time come into
the public domain other than through unauthorised disclosure.

    11.4 Nothing in this clause 11 shall be construed or interpreted as
preventing you from making a “protected disclosure” within the meaning of the
Public Interest Disclosure Act 1998. In circumstances where you feel it is
necessary for you to make such a disclosure, you should first raise the issue
with your manager, or if your concerns relate to your manager, to an officer or
officers of the Company who you believe are not involved or implicated in the
relevant matter.

 

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12. RESTRICTIONS DURING EMPLOYMENT

        12.1 You shall not during the continuance of this employment, whether
during or outside working hours, directly or indirectly and in whatever
capacity, engage in, carry on or be interested in, or be concerned with, or
provide services to or for any other business trade or occupation whatsoever
without the prior written consent of your manager. This obligation does not
preclude you from holding, by way of bona fide investment only, not more than 5%
of any class of issued shares or other securities which are listed or dealt in
on any recognised investment exchange.

        12.2 You confirm that you have fully disclosed to the Company (and that
you will continue promptly and fully to do so throughout this employment) all
circumstances in respect of which there is or might be a conflict of interest
between yourself (and including within this obligation your spouse and dependant
children) and the Company and/or any Associated Company for which you may from
time to time be required to provide services hereunder.

        12.3 You shall not (and shall procure that your spouse and dependant
children do not) deal or become or cease to be interested (within the meaning of
Part 1 of Schedule 13 to the Companies Act 1985) in any shares or debentures of
the Company or any Associated Company (including, for the avoidance of doubt,
the Ultimate parent of the Company), except in accordance with the rules, as
applicable and as amended from time to time, that are operated by the Company
and any Associated Company and you will comply with all legal and regulatory
requirements in relation to such matters.

    13. POST-TERMINATION RESTRICTIONS

        13.1 You covenant with the Company for itself and as trustee for its
Associated Companies that you shall not:

            13.1.1 for a period of 12 months after termination of your
employment, whether on your own behalf or on behalf of any other person, firm or
company, directly or indirectly solicit or endeavour to solicit for the purposes
of employment or engagement or offer employment or engagement to or employ or
engage any Senior Employee of or consultant to the Company or any Associated
Company with whom you have worked closely in the period of 12 months prior to
the termination of your employment;

            13.1.2 for a period of 12 months after termination of your
employment, in competition with the Business, whether on your own behalf or on
behalf of any other person, firm or company, directly or indirectly interfere
with or seek to interfere with the continuance of supplies that are material to
the continuation of the Business to the Company or any Associated Company from
any supplier with whom you have dealt on behalf of the Company or any Associated
Company in the period of 12 months prior to the termination of your employment;

 

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    13.1.3 for a period of 12 months after termination of your employment, in
competition with the Business, whether on your own behalf or on behalf of any
other person, firm or company, directly or indirectly solicit or canvass
business from or interfere with or accept orders from any person, firm or
company who, within a period of 12 months prior to the termination of your
employment, was a Business Partner of the Company or any Associated Company and
with whom you had business dealings on behalf of the Company or any Associated
Company in the course of your employment during the said 12 month period;

            13.1.4 for a period of 12 months after termination of your
employment, whether on your own behalf or on behalf of any other person, firm or
company, solicit, obtain business from or interfere in the Company’s or any
Associated Company’s dealings with any Prospective Business Partner with whom,
within a period of 6 months prior to the termination of your employment, you
were negotiating on behalf of the Company or any Associated Company;

            13.1.5 for a period of 3 months after termination of your employment
be employed or engaged in or otherwise, directly or indirectly, be involved with
any company, person, firm or other entity which competes with that part of the
Business with which you were involved or of which you had significant knowledge
during the last 12 months of your employment, save that this restriction shall
not preclude you from holding, by way of bona fide investment only, not more
than 3% of any class of issued shares or other securities which are listed or
dealt in on any recognised investment exchange.

            13.1.6 at any time after the termination of your employment make use
of any corporate or business name which is identical to or similar with or
likely to be confused with the corporate names and/or business name or names of
the Company or of any Associated Company or in any way hold yourself out as
being connected with the Company or any Associated Company.

 

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  13.2 Each of the restrictions set out in this Agreement and in each of the
sub-clauses is an entirely separate, severable and independent restriction.

        13.3 For the purposes of this Agreement:

            13.3.1 “Business” shall mean the provision of performance based,
key-word targeted marketing, advertising and e-commerce software development
services via the Internet, as well as the offering of algorithmic search,
toolbars, screensavers and other unique and effective interactive products and
services that establish a direct relationship with Internet users, as carried
out by the Company or any Associated Company during the course of your
employment; and

            13.3.2 “Senior Employee” shall mean a partner manager, sales
manager, senior sales person, editorial manager, client services manager, senior
software employee, software manager, senior technical employee, technical
manager, financial controller, financial director, marketing director or other
senior manager.

        13.4 The length of any restriction under this Clause 13 will be reduced
by the length of time immediately preceding termination of employment during any
period of notice that you are required to remain away from work pursuant to
Clause 10.2, save that any references to a period immediately preceding
termination of your employment in Clause 13.1 shall be amended to be read as the
same period immediately preceding the commencement of the Leave Period in such
circumstances.

        13.5 You acknowledge that the duration, extent and application of each
of the restrictions in this Clause 13 are no greater than is necessary for the
protection of the legitimate business interests of the Company and of Associated
Companies with whom you are involved in the course of your employment and that
the restrictions are reasonable in the circumstances.

    14. INTELLECTUAL PROPERTY RIGHTS

        14.1 Subject to the Patents Act 1977 and the Copyright, Designs and
Patents Act 1988, any invention, design, or copyright work, including without
limitation all documents, data, drawings, specifications, articles, computer
programmes, object codes, source codes, network designs, business logic, notes,
sketches, drawings, reports, modifications, tools, scripts or other items
(“Works”), made by you during the course of your employment with the Company
(whether or not in the course of your duties) shall immediately upon creation or
performance vest in and shall be and remain the sole and exclusive property of
the Company, and you hereby irrevocably and unconditionally assign to the
Company, all right, title and interest in and to the same.

 

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  14.2 You must promptly notify the Company of any Works which you create, which
will become the absolute property of the Company and you hereby unconditionally
waive in favour of the Company all rights (if any) you may have under Chapter IV
(moral rights) of the Copyright, Designs and Patents Act 1988 (or any foreign
corresponding rights) in connection with the authorship of any Works, wherever
in the world enforceable, including without limitation the right to be
identified as the author of such Works and the right not to have such Works
altered or subjected to derogatory treatment.

        14.3 You agree to execute any formal and additional assignment required
by the Company to vest or confirm the vesting in it of all rights in any Works
as set out in this Clause 14 at the expense of the Company.

        14.4 You hereby authorise the Company to appoint someone to be your
attorney and in your name and on your behalf, to sign, execute and do all such
things as the Company thinks necessary or desirable to fully vest or confirm the
vesting in it of all rights in any works as set out in this Clause 14.

        14.5 The terms and obligations of this Clause 14 shall survive the
expiry or termination of your employment for any reason.

    15. GRIEVANCE AND DISCIPLINARY PROCEDURE

        15.1 The Company’s disciplinary and grievance procedures that are in
force from time will apply in relation to your employment, save that they will
not form part of your contract of employment.

    16. DATA PROTECTION

        16.1 In addition to the specific consent contained in Clause 9.6
relating to the processing of data concerning your health, you agree that by
signing and dating this Agreement, you have given consent to the Company
processing personal data concerning you in order to properly fulfil its
obligations to you under this Agreement and as otherwise required by law in
relation to your employment in accordance with the Data Protection Act 1998
(“the DPA”). Such processing will principally be for personnel, administrative
and payroll purposes.

        16.2 You accept and acknowledge that, if you are required at any time to
work on behalf of the Company or an Associated Company overseas, the Company may
need to pass your personal data to the person, firm or company with whom you are
working anywhere in the world and you hereby expressly consent to the Company
doing so. You further consent to the Company passing your personal data to the
Company’s Ultimate parent in the United States of America for its personnel,
payroll and administrative purposes.

 

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  16.3 Without prejudice to your undertaking in clause 9.6, in the event that
the Company or any Associated Company needs to process any “sensitive personal
data” (as defined by the DPA) in relation to you for its legitimate business
needs, you undertake to sign on request such express consents as may be required
to enable it to do so.

    17. TELECOMMUNICATIONS

        17.1 The Company has the right to monitor any and all aspects of its
telephone and computer systems that are made available to you and to monitor,
intercept and/or record any communications made by you, including any type of
telephone, e-mail or Internet communications, for any purpose authorised under
the Telecommunications (Lawful Business Practice) (Interception of
Communications) Regulations 2000 and any amending or supplementary legislative
or regulatory requirements and you hereby expressly consent to the Company doing
so.

        17.2 You are required to comply with all aspects of any policies that
may from time to time be published by the Company concerning the use by its
employees of equipment of the type referred to in clause 17.1 that it may make
available for their use.

    18. ASSOCIATED AND PARENT COMPANY

        18.1 For the purposes of this Agreement:

            18.1.1 “Associated Company” means a company which is from time to
time a subsidiary or a holding or parent company of the Company or a subsidiary
(other than the Company) of a holding or parent company of the Company and, for
the avoidance of doubt, includes the Company’s Ultimate parent;

            18.1.2 “Ultimate parent” means MIVA, Inc, or any other company that
becomes the ultimate parent company of the Company due to any corporate
reorganisation; and

            18.1.3 “subsidiary”, “parent company” and “holding company” have the
meanings ascribed to them by section 736 and 756(a) of the Companies Act 1985 as
originally enacted.

 

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19. NOTICES

        19.1 Any notice or other communication required or permitted to be given
or made under this Agreement shall be in writing and may be delivered to the
relevant party personally or sent by first class prepaid letter to the address
of that party specified in this Agreement or to the party’s facsimile number at
that address or to such other address or facsimile number as may be notified
from time to time for this purpose by that party. Service at the last notified
address or facsimile number shall be effective for the purposes of this
Agreement notwithstanding the fact that either party may subsequently have
changed its address or facsimile number without having notified the other party
under the provisions of this Clause.

        19.2 Unless the contrary shall be proved each such notice or
communication shall be deemed to have been received, if by letter, 72 hours
after posting and, if by personal delivery, when delivered. A notice by
facsimile shall be deemed received on receipt by the sender of the correct
answer back message.

    20. APPLICABLE LAW

        20.1 English law shall apply to this Agreement and the parties to this
Agreement submit to the jurisdiction of the English courts.

    21. MISCELLANEOUS

      Collective Agreements

        21.1 There are no collective agreements relating to your employment with
the Company.

      Legal Advice

        21.2 You acknowledge that prior to entering into this Agreement you had
the opportunity to take full and independent legal advice on the nature, extent
and enforceability of your obligations under this Agreement and you confirm, in
particular, that you fully understand the nature and extent of your obligations
under Clauses 11, 12, 13 and 14 and you were advised that each of the several
covenants contained in Clause 13 are probably valid and enforceable against you.
You also acknowledge that your remuneration under this Agreement has been agreed
on the basis that such covenants are binding and enforceable against you.

      Other Offers

        21.3 You agree that, if you apply for or are offered employment by or an
appointment or engagement to provide Consultancy or other services to any other
person, firm, company or organisation (other than an Associated Company) during
your employment under this Agreement or during the continuance in force of any
of the post termination obligations contained in it, you will promptly, and
before entering into any such contract of employment or arrangement with any
such third party, provide to such third party a copy of this Agreement in order
to ensure that that party is fully aware of your obligations hereunder.

 

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  Reconstruction or Amalgamation

        21.4 Without prejudice to the provisions of clause 7.4 if your
employment is terminated by reason of the liquidation of the Company for the
purpose of reconstruction or amalgamation, or as part of any arrangement for the
amalgamation of the undertaking of the Company not involving liquidation, and
you are offered employment with any concern or undertaking resulting from such
reconstruction or amalgamation on terms and conditions generally not less
favourable than the terms of this Agreement, then you shall have no claim
against the Company in respect of the termination of this employment.

      Waiver

        21.5 No failure or delay by the Company in exercising any right, power
or privilege under this Agreement shall operate as a waiver thereof nor shall
any single or partial exercise by the Company of any right, power or privilege
preclude any further exercise of any other right, power or privilege.

      References

        21.6 You agree that there shall be no obligation on the Company or any
Associated Company to provide to any person, firm, company or other organisation
a reference in respect of you (except in relation to your period of employment
and job title) whether during or after the termination of your employment under
this Agreement

 

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IN WITNESS whereof this Agreement has been executed as a deed by or on behalf of
the parties hereto the day and year first above written.

EXECUTED as a Deed          )     )   by MIVA (UK) LIMITED              Director
          and Director/ Secretary           or under Power of Attorney      
SIGNED and DELIVERED as a Deed )         by ADAM POULTER          )        
Witness’ Signature           Name           Address           Occupation    

 

 

 

 

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