Document:

Execution
Copy

 

 

DEED
OF AMENDMENT TO LOAN NOTE TRANSACTION DOCUMENTS

 

by
and between

 

CODAOCTOPUS
GROUP, INC.,

 

and

 

CCM
HOLDINGS LLC

 

 

 

Dated:
30 October 2015

  

 

 

    	 

    	 

    

 

	Contents	 
	 	 	 
	Clause	 
	 	 	 
	1	Interpretation	2
	2	Consent
    to Amendment	3
	3	Amendment	3
	4	Further
    Covenants And Agreement	4
	5	Representation
    and Warranties	5
	6	Binding
    Effect.	6
	7	Incorporation
    by Reference.	6
	8	Further
    Assurances.	6
	9	No
    Alteration.	6
	10	Electronic
    Signatures and Transmissions	6

 

    	 

    	 

    

 

THIS
DEED OF AMENDMENT is dated 30 October 2015

 

Parties

 

	(1)	Coda
    Octopus Group, Inc., a Delaware corporation, whose principal place of business is at 4020 Kidron Road, Suite #4, Lakeland,
    Florida 33811 (“COGI” or “Issuer”); and
	 	 
	(2)	CCM
    Holdings LLC (a New Jersey limited liability company) with its principal place of business at 376 Main Street, PO Box 74,
    Bedminster, NJ 07921 (“CCM” or “Noteholder”)

 

together
“Parties” or alone “Party”

  

WHEREAS:-

 

	 	(A)	COGI
    issued Loan Note Instrument on or around 21 February, 2008 constituting the issue of USD 12,000,000 Convertible Loan Notes
    due 21 February 2015 (each Note having a nominal value of USD100,000).
	 	 	 
	 	(B)	The
    due date was extended to August 21, 2016 pursuant to Deed of Amendment between the Parties entered into on or around August
    18, 2014.
	 	 	 
	 	(C)	The
    Company redeemed USD 2,000,000 of the Principal Amounts
	 	 	 
	 	(D)	The
    Principal Amount Outstanding as of the date of this Deed is USD 10,000,000.
	 	 	 
	 	(E)	In
    addition to the Principal Amount the Issuer owes the Noteholder certain redemption premium and other interest payment relating
    to the Notes.
	 	 	 
	 	(F)	CCM
    are the current Noteholder.
	 	 	 
	 	(G)	COGI
    and the Noteholder are desirous of modifying certain definitions and terms of the Transaction Documents including the Loan
    Note Instrument.

 

    	1

    	 

    

 

	 	(H)	The
    Transaction Documents provide for all alterations to the terms and conditions of the said Loan Notes to be by consent of the
    Noteholder.

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration,
the receipt and adequacy of which are hereby acknowledged by each Party hereto, the Issuer and the Noteholder agree to the amendments
contained herein. The Parties intend that these stated modifications are binding from the Effective Date.

 

Agreed
terms

 

	1.	Interpretation
	 	 
	1.1	The
    definitions and rules of interpretation in this Clause apply in this Deed.

 

Effective
Date: means October 30, 2015

 

Form:
an application with the US Securities and Exchange Commission (SEC) in the form of either a Form 10 or Form S-1.

 

Parties:
means COGI and CCM and a “Party” either COGI or CCM.

 

Redemption
Premium: The premium payable on the Notes as specified under Clause 3.5 of the Loan Note Instrument and which at the date
of this Deed of Amendment is USD 3,558, 135.80 rounded down to USD 3,558,135.

 

Redemption
Amount: the amount required to be paid by the Issuer under clause 4.5 of this Deed and which shall be USD 2,000,000 payable
in accordance with clause 4.6 of this Deed.

 

Transaction
Documents: means the Subscription Agreement, the Loan Note Instrument, the Deed of Guarantee, the Debentures, the Floating
Charges, the Lock-up Agreements, the Security Agreement, the Confidentiality Agreement, the Intercreditor Deed, and all other
documents entered into in connection with any of them (and all of which were entered into on or around 21 February, 2008) and
the Deeds of Amendment entered into on April 30, 2012 and August 18, 2014 respectively and this Deed of Amendment.

 

    	2

    	 

    

 

Trading
Market: the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question:
the American Stock Exchange, the Nasdaq Capital Market, The Nasdaq Global Market, the Nasdaq Global Select Market, the New York
Stock Exchange or any other similar or equivalent market.

 

Capitalized
terms used in this Deed of Amendment (including in the Preamble) which are not otherwise defined herein shall have the meanings
ascribed to such terms in the Transaction Documents.

 

	1.2	Clause
    and schedule headings do not affect the interpretation of this Agreement.
	 	 
	2.	Consent
    to Amendment
	 	 
	2.1	The
    Notes and all outstanding obligations provided for under the Transaction Documents fall due on August 21, 2016.
	 	 
	2.2	The
    Loan Note Instrument provides for modifications to the said Loan Note Instrument and other Transaction Documents to be by
    consent of the Noteholder and the Issuer.
	 	 
	2.3	By
    signing this Deed of Amendment the Issuer and the Noteholder consent to the modifications documented in this Deed of Amendment.
	 	 
	2.4	With
    effect from the Effective Date the Transaction Documents shall be construed as including this Deed of Amendment and the definition
    of Transaction Documents shall be amended from the Effective Date accordingly.
	 	 
	3.	Amendment

 

AMENDMENT
OF DEFINITION OF FINAL MATURITY DATE

 

	3.1	In
    consideration for the further promises and covenants set out in Clause 4 herein, the Noteholder consents to the Amendment
    as set out in Clause 3.2.

 

    	3

    	 

    

 

	3.2	The
    definition of “Final Maturity Date” contained in the Amendment to Loan Note Instrument dated 18 August
    2014, paragraph 3.1.1 shall be deleted in its entirety and replaced with the following new definition:

 

“3.1.1.
1 November 2017, or if such date is not a Business Day on the immediately preceding Business Day (“Final Maturity Date”)”
[END OF AMENDMENT TO 3.1.1.]

 

	4.	Further
    Covenants And Agreement
	 	 
	4.1	The
    Parties agree that the outstanding Redemption Premium only shall be converted into Common Stock at a conversion of price of
    USD eleven cents. Nothing in this Deed shall be construed as an amendment of the Conversion provisions (Schedule 3) of the
    Loan Note Instrument which provides for the Conversion of the Notes (not the Redemption Premium) at a Conversion Price of
    USD 1.05.
	 	 
	4.2	The
    Company shall cause 32,346,682 shares of Common Stock to be issued to CCM in lieu of the Redemption Premium. This issuance
    shall be no later than March 1, 2016. Upon issuance of the Common Stock, CCM irrevocably accepts this as full and final settlement
    of the Redemption Premium. The Company’s indebtedness under the Loan Note Instrument thereafter (as of February 10,
    2016) shall be USD 10,957,122.18.
	 	 
	4.3	The
    Issuer covenants that it will use all commercially reasonable efforts to file either a Form 10 or Form S-1 within 6 months
    from 1 March 2016 but in any event no later than twelve (12) months from the 1 March 2016. The Issuer shall do all things
    that are commercially reasonable and within its powers to cause the said Form to be effective including answering all questions
    and provide all such information as the SEC may require to consider and declare the Form effective.
	 	 
	4.4	Once
    effective, the Issuer shall use reasonable endeavours to maintain its SEC reporting status for a minimum of five (5) years.

 

    	4

    	 

    

 

	4.5	The
    Issuer covenants to reduce the Principal Amount Outstanding by the Redemption Amount bringing the Principal Amount Outstanding
    to USD 8,000,000.
	 	 
	4.6	The
    Issuer further covenants to pay the Redemption Amount in ten (10) equal monthly instalment of USD 200,000 with effect from
    31 March 2016. The final instalment payment shall be 31 December 2016. Notwithstanding, the Company reserves the right (but
    not obligation) to clear the Redemption Amount prior to 31 December 2016.
	 	 
	4.7	The
    Issuer covenants to carry on in good faith to seek the timely refinancing of the Principal Amount Outstanding. The Issuer
    shall provide the Noteholder with quarterly update on progress made in securing the refinancing.
	 	 
	4.8	The
    Issuer covenants that it will use all commercially reasonable efforts to cause the Common Stock to be listed on a Trading
    Market within 12 to 18 months from 1 March 2016.
	 	 
	4.9	The
    material breach of any of the obligations set out in this Clause 4 shall constitute an Event of Default within the meaning
    of the Transaction Documents.
	 	 
	5.	Representation
    and Warranties
	 	 
	5.1	The
    Noteholder represents that it is the lawful owner of the Notes and that an Extraordinary Resolution authorising it to enter
    into this Deed has been passed and duly signed and authorised on or before the date hereof.
	 	 
	5.2	The
    Noteholder further represents that in entering into this Deed of Amendment it has the right, power and authority to do so
    and more particularly to agree to the modifications of the obligations of COGI under the Loan Note Instrument and no further
    authorization or consents are required to enter into this Deed of Amendment under which the rights of the Noteholder against
    COGI are being modified.

 

    	5

    	 

    

 

	6.	Binding
    Effect.

 

Each
of the Parties undertake that they are authorized to enter into this Agreement and when executed will be legally binding on each
of the Parties hereto.

 

	7.	Incorporation
    by Reference.

 

The
following provisions contained in the Loan Note Instrument shall be deemed incorporated by reference herein and shall be read
and construed as separately and directly applicable to this Agreement:

 

		(a)	Condition
                                         8 (LAW).

 

	8.	Further
    Assurances.

 

Each
of the Parties shall execute such documents and perform such further acts (including, without limitation, obtaining any consents,
exemptions, authorizations or other actions by, or giving any notices to, or making any filings with, any governmental authority
or any other Person) as may be reasonably required or desirable to carry out or to perform the provisions of this Deed.

 

	9.	No
    Alteration.

 

All
other terms and conditions of the Loan Note Instrument and the Transaction Documents shall remain unaltered.

 

	10.	Electronic
    Signatures and Transmissions

 

This
Deed may be transmitted in electronic format and shall not be denied legal effect because it was formed or transmitted in whole
or in part, by electronic means. An electronic, digital or electronically transmitted signature (collectively, Electronic Signature”)
will be deemed an acceptable original for purposes of consummating this Deed and binding the party providing such Electronic Signature.

 

    	6

    	 

    

 

IN
WITNESS whereof this Deed has been duly executed the day and year first before written.

 

[THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

    	7

    	 

    

 

	Executed
                           as a deed by Coda

        Octopus
        Group, Inc., acting by

        Annmarie
        Gayle, a director, and Geoff

        Turner,
        a director
	 	 
	 	 	 
	 	 	ANNMARIE
    GAYLE
	 	 	Director
	 	 	 
	 	 	 
	 	 	GEOFF
    TURNER
	 	 	Director

 

 

  

  

    	8

    	 

    

 

 

 

 

 

    	 	9Dated
15 June 2013

 

 

 

Consultancy
Agreement

 

between

 

Coda
Octopus Group, Inc.

 

and

 

Pemanaco
Limited

 

    	 	 	 

    	 

    

 

CONTENTS

 

	Clause	 
	 		 
	1.	Interpretation	 1
	2.	Term of engagement and Restrictions
    on Substitution	 3
	3.	Duties	 3
	4.	Directorship	 4
	5.	Directors’ and Officers’
    Insurance and Indemnity	 5
	6.	Compensation and Benefits	 5
	7.	Other activities	 6
	8.	Confidential information and Company
    property	 6
	9.	Intellectual property	 7
	10.	termination	 8
	11.	Obligations upon termination	 9
	12.	Status	 10
	13.	Post-Termination Restrictions	 10
	14.	Notices	 11
	15.	Entire Agreement and previous contracts	 12
	16.	Variation	 12
	17.	Counterparts	 12
	18.	Third party rights	 12
	19.	Governing law and jurisdiction	 12
	 	 	 
	SCHEDULE	 
	 		 
	Schedule	Services	 13

 

    	 	 	 

    	 

    

 

THIS
AGREEMENT is dated June 15, 2010

 

Parties

 

	(1)	Coda
    Octopus Group, Inc., a Delaware corporation, (“Coda Octopus”), with a headquarters address at 4020 Kidron Road,
    Suite #4, Lakeland, 33811, Florida, United States of America (Company); and
	 	 
	(2)	Pemanaco
    Limited, a corporation incorporated in England and Wales, with its address at 145-157 St John Street, London, EC1V 4PW, United
    Kingdom (Consultant Company).

 

Agreed
terms

 

	1.	Interpretation
	 	 
	1.1	The
    definitions and rules of interpretation in this Clause apply in this Agreement (unless the context requires otherwise).

 

Board:
the board of directors of the Company (including any committee of the board duly appointed by it).

 

Business:
(i) any subsea visualization company or business (incorporated or unincorporated), or (ii) any other business in which Coda
Octopus is engaged or is actively planning to engage as of the date of the Termination of this Agreement.

 

Capacity:
as agent, consultant, director, employee, owner, partner, shareholder or in any other capacity.

 

Cause:
means any of the matters set forth in clauses 2.3 (Substitution) and 10.1(a) through to (e) inclusive.

 

Commencement
Date: June 15, 2013

 

Confidential
Information: information which is non-public and (whether or not recorded in documentary form, or stored on any magnetic or
optical disk or memory) relating to the business, products, financial affairs of the Company or any Group Company for the time
being confidential to the Company or any Group Company and trade secrets including, without limitation, technical data and know-how
relating to the business and/or products of the Company or any Group Company or any of its or their business contacts, customer
data or key staff information.

 

Convenience:
termination of this Agreement by the Company without Cause. 

 

Engagement:
the engagement of the Consultant Company by the Company on the terms of this Agreement.

 

Fees:
the monthly amount to be paid by the Company for the Services to be provided by the Individual through the Consultant Company
and which are set forth in Clause 6 of this Agreement.

 

    	 	 1	 

    	 

    

 

Group
Company: the Company, any company of which it is a Subsidiary (its holding company) and any Subsidiaries of the Company or
of any such holding company.

 

Incapacity:
any sickness or injury which prevents the Individual from carrying out his duties.

 

Individual:
Annmarie Gayle

 

Intellectual
Property Rights: patents, rights to Inventions, copyright and related rights, trademarks, trade names and domain names, rights
in get-up, rights in goodwill or to sue for passing off, rights in designs, rights in computer software, database rights, rights
in confidential information (including know-how and trade secrets) and any other intellectual property rights, in each case whether
registered or unregistered and including all applications (or rights to apply) for, and renewals or extensions of, such rights
and all similar or equivalent rights or forms of protection which may now or in the future subsist in any part of the world.

 

Invention:
any invention, idea, discovery, development, improvement or innovation made by the Consultant Company or by the Individual
in connection with the provision of the Services, whether or not patentable or capable of registration, and whether or not recorded
in any medium.

 

Management
Incentive Scheme: the bonus scheme put in place by the Board of Directors of Coda Octopus Group, Inc. which is intended to
incentivise the management to perform the Group’s annual business plan and under which a bonus (Stock Grants or Cash ) is
payable for the achievement of certain performance milestones. 

 

Restricted
Business: any business which competes with the Business at the relevant point in time 

 

Restricted
Customer: any firm, company or person who, during the 6 months prior to Termination, was a customer of or in the habit of
dealing with the Company or any Group Company with whom the Consultant or the Individual had contact or about whom he became aware
or informed in the course of his engagement under this Agreement.

 

Restricted
Person: anyone employed or engaged by the Company or any Group Company and who could materially damage the interests of the
Company or any Group Company if they were involved in any Capacity in any business concern which competes with any Restricted
Business and with whom the Consultant Company or Individual dealt in the twelve (12) months prior to Termination in the course
of its or his Engagement.

 

Services:
those set forth in Schedule 1 hereto.

 

Termination
Date: for the purpose of this Agreement, the termination date shall mean the date when notice of termination is given.

 

    	 	 2	 

    	 

    

 

	1.2	The
    headings in this Agreement are inserted for convenience only and shall not affect its construction.
	 	 
	1.3	A
    reference to a particular law is a reference to it as it is in force for the time being taking account of any amendment, extension,
    or re-enactment and includes any subordinate legislation for the time being in force made under it.
	 	 
	1.4	Unless
    the context otherwise requires, a reference to one gender shall include a reference to the other genders.
	 	 
	1.5	Unless
    the context otherwise requires, words in the singular include the plural and in the plural include the singular.
	 	 
	1.6	The
    schedules to this Agreement form part of (and are incorporated into) this Agreement.
	 	 
	2.	Term
    of engagement and Restrictions on Substitution
	 	 
	2.1	The
    Company shall engage the Consultant Company and the Consultant Company shall make available to the Company the Individual
    to provide the Services on the terms and conditions of this Agreement.
	 	 
	2.2	The
    Engagement shall be deemed to have commenced on the Commencement Date and shall continue, subject to the remaining terms of
    this Agreement, until terminated by either party giving the other not less than twelve (12) months’ prior notice of
    termination in writing. 
	 	 
	2.3	The
    Consultant Company agrees that only the Individual shall perform the Services and as such the Consultant Company shall not
    be entitled to substitute the Individual and if the Individual is unable to provide the Services this Agreement shall be terminated
    forthwith and this shall constitute Cause within the meaning of this Agreement.
	 	 
	3.	Duties
    
	 	 
	3.1	During
    the Engagement the Consultant Company shall, and (where appropriate) shall procure that the Individual shall:

 

	 	(a)	provide
    the Services with all due care, skill and ability and use its or his best endeavours to promote the interests of the Group
    and the companies within the Group. 
	 	 	 
	 	(b)	unless
    the Individual is prevented by ill health or accident, devote at least 180 hours in each calendar month to the carrying out
    of the Services together with such additional time if any as may be necessary for their proper performance;
	 	 	 
	 	(c)	promptly
    give to the Board all such information and reports as it may reasonably require in connection with matters relating to the
    provision of the Services or the business of any Group Company.

 

    	 	 3	 

    	 

    

 

	3.2	If
    the Individual is unable to provide the Services due to illness or injury the Consultant Company shall advise the Company
    of that fact as soon as reasonably practicable and shall provide such evidence of the Individual’s illness or injury
    as the Company may reasonably require. 
	 	 
	3.3	The
    Consultant Company shall procure that the Individual is available at all times on reasonable notice to provide such assistance
    or information as the Company may require.
	 	 
	3.4	The
    Consultant Company shall, and shall procure that the Individual shall, comply with all reasonable standards of safety and
    comply with the Company’s health 
	 	 
	3.5	safety
    procedures from time to time in force at the premises where the Services are provided and report to the Company any unsafe
    working conditions or practices. On termination of the Engagement, the Consultant Company shall be entitled to be paid in
    lieu of accrued but untaken holiday by the Individual. The amount of the payment in lieu shall be calculated on the basis
    that each day of paid holiday is equal to 1/260 of the Fees payable in accordance with the terms of this Agreement.
	 	 
	3.6	If
    the Individual has taken more holiday than his accrued entitlement at the date of termination of the Engagement, the Company
    shall be entitled to deduct the appropriate amount from any payments due to the Consultant Company (on the basis that each
    day of paid holiday is equal to 1/260 of the Fees payable in accordance with the terms of this Agreement.
	 	 
	3.7	If
    either party has served notice to terminate the Engagement, the Company may require the Individual to take any accrued but
    unused holiday entitlement during the notice period. 
	 	 
	4.	Directorship
	 	 
	4.1	Except
    with the prior approval of the Board, or as provided in the byelaws of the Company, the Individual shall not resign as a director
    of the Company.
	 	 
	4.2	All
    directors are subject to re-election at the Company’s Annual General Meeting. The appointment as a Director shall automatically
    terminate if the Individual is not re-elected at the Annual General Meeting of Stockholders or if he becomes prohibited by
    law from serving as a Director. 
	 	 
	4.3	If
    during the Appointment the Individual ceases to be a director of the Company (otherwise than by reason of his death, resignation
    or disqualification pursuant to the byelaws of the Company, as amended from time to time, or by statute or court order) the
    Engagement shall continue with the Individual in all other respects, except as a director and the terms of this Agreement
    (other than those relating to the holding of the office of director) shall continue in full force and effect. The Individual
    shall have no claims in respect of such cessation of office.

 

    	 	 4	 

    	 

    

 

	5.	Directors’
    and Officers’ Insurance and Indemnity
	 	 
	5.1	Subject
    to the terms of the Company’s directors and officers liability insurance policy, during and for a period of a maximum
    of three (3) years after termination the Individual shall be entitled to director and officer insurance coverage for his acts
    and/or omissions while an officer and/or director of the Company on a basis no less favourable than the coverage provided
    current officers and directors. 
	 	 
	5.2	In
    the event that there is a shortfall in the D&O Insurance cover including any compulsory excess that may be applicable,
    the Company shall indemnify the Consultant Company on a $ for $ basis for any amounts that he may pay in respect of any actions
    or liability arising out of or in connection with the Individual serving as a director of the Company. 
	 	 
	6.	Compensation
    and Benefits
	 	 
	6.1	Fees
	 	 
	 	The
    Fee to be paid by the Company to the Consultant Company for the Services of the Individual shall be a monthly amount of $19,167.
	 	 
	6.2	Incentive
    Plan
	 	 
	 	Unless
    otherwise agreed in writing, the Individual shall be entitled to participate in the Company’s Management Incentive Scheme
    to include a Chief Executive Bonus of $100,000 for achievement of target, payable dependent upon performance. Any payments
    (whether in cash or kind) are contingent upon achieving the annual defined performance milestones. 
	 	 
	6.3	Reimbursement
    of Expenses 

 

	 	(a)	The
    Company shall reimburse (or procure the reimbursement of) all reasonable expenses wholly, properly and necessarily incurred
    by the Individual in providing the Services, subject to compliance with the Company’s Expenses Policy in force from
    time to time including production of receipts or other evidence of the expense claimed by the Consultant Company and which
    may be reasonably requested by the Company. 
	 	 	 
	 	(b)	The
    Consultant Company shall abide by the Company’s policies on expenses as communicated to it from time to time and shall
    procure that the Individual complies fully with these policies.
	 	 	 
	 	(c)	Any
    credit card supplied to the Individual by the Company (or any of its subsidiaries) shall be used only for expenses incurred
    by him in the course of the Engagement.

 

    	 	 5	 

    	 

    

 

	6.4	Paid
    Time Off

 

	 	(a)	The
    Individual shall be entitled to 30 days’ paid holiday in each holiday year together with the usual public holidays in
    England and Wales. 
	 	 	 
	 	(b)	If
    either party has served notice to terminate the Engagement, the Company may require the Individual to take any accrued but
    unused holiday entitlement during the notice period.

 

	7.	Other
    activities
	 	 
	7.1	Subject
    to Clause 7.2, during the Engagement the Consultant Company shall procure that the Individual shall not, except as a representative
    of the Group, whether paid or unpaid, be directly or indirectly engaged, concerned or have any financial interest in any Capacity
    in any other business, trade, profession or occupation (or the setting up of any business, trade, profession or occupation)
    except with the prior written approval of the Company.
	 	 
	7.2	Notwithstanding
    Clause 7.1 of this Agreement, the Consultant Company and/or Individual may hold an investment by way of shares or other securities
    of not more than 5% of the total issued share capital of any company (whether or not it is listed or dealt in on a recognised
    stock exchange) where such company does not carry on a business similar to or competitive with any business for the time being
    carried on by the Group.
	 	 
	8.	Confidential
    information and Company property
	 	 
	8.1	The
    Consultant Company acknowledges that in the course of the Engagement it and the Individual will have access to Confidential
    Information. The Consultant Company has therefore agreed to accept the restrictions in this Clause 8.
	 	 
	8.2	The
    Consultant Company shall not, and shall procure that the Individual shall not (except in the proper course of its or his duties)
    either during the Engagement or at any time after the Termination Date, use or disclose to any firm, person or company (and
    shall use its best endeavours and procure that the Individual shall use its best endeavours to prevent the publication or
    disclosure of) any Confidential Information. This restriction does not apply to:

 

	 	(a)	any
    use or disclosure authorised by the Company or required by law; or 
	 	 	 
	 	(b)	any
    information which is already in, or comes into, the public domain otherwise than through the Consultant Company’s or
    the Individual’s unauthorised disclosure.

 

	8.3	All
    documents, manuals, hardware and software provided for the Individual’s use by the Company, and any data or documents
    (including copies) produced, maintained or stored on the Company’s computer systems or other electronic equipment (including
    mobile phones if provided by the Company), remain the property of the Company. 

 

    	 	 6	 

    	 

    

 

	9.	Intellectual
    property
	 	 
	9.1	The
    Consultant Company hereby assigns to the Company all existing and future Intellectual Property Rights in the Works and the
    Inventions and all materials embodying such rights to the fullest extent permitted by law. Insofar as they do not so vest
    automatically by operation of law or under this Agreement, the Consultant Company holds legal title in such rights and inventions
    on trust for the Company.
	 	 
	9.2	The
    Consultant Company undertakes to the Company:

 

	 	(a)	to
    notify to the Company in writing full details of all Works and Inventions promptly on their creation;
	 	 	 
	 	(b)	to
    keep confidential the details of all Inventions;
	 	 	 
	 	(c)	whenever
    requested to do so by the Company and in any event on the termination of the Engagement, promptly to deliver to the Company
    all correspondence, documents, papers and records on all media (and all copies or abstracts of them), recording or relating
    to any part of the Works and the process of their creation which are in his possession, custody or power;
	 	 	 
	 	(d)	not
    to register nor attempt to register any of the Intellectual Property Rights in the Works, nor any of the Inventions, unless
    requested to do so by the Company; and
	 	 	 
	 	(e)	to
    do all acts necessary to confirm that absolute title in all Intellectual Property Rights in the Works and the Inventions has
    passed, or will pass, to the Company,

 

	 	and
    confirms that the Individual has given written undertakings in the same terms to the Consultant Company.
	 	 
	9.3	The
    Consultant Company warrants that:

 

	 	(a)	it
    has not given and will not give permission to any third party to use any of the Works or the Inventions, nor any of the Intellectual
    Property Rights in the Works;
	 	 	 
	 	(b)	it
    is unaware of any use by any third party of any of the Works or Intellectual Property Rights in the Works; and
	 	 	 
	 	(c)	the
    use of the Works or the Intellectual Property Rights in the Works by the Company will not infringe the rights of any third
    party,

 

	 	and
    confirms that the Individual has given written undertakings in the same terms to the Consultant Company.
	 	 
	9.4	The
    Consultant Company acknowledges that no further remuneration or compensation other than that provided for in this Agreement
    is or may become due to the Consultant Company in respect of the performance of its obligations under this Clause 9.

 

    	 	 7	 

    	 

    

 

	9.5	The
    Consultant Company undertakes to execute all documents, make all applications, give all assistance and do all acts and things,
    at the expense of the Company and at any time either during or after the Engagement, as may, in the opinion of the Board,
    be necessary or desirable to vest the Intellectual Property Rights in, and register or obtain patents or registered designs
    in, the name of the Company and otherwise to protect and maintain the Intellectual Property Rights in the Works. The Consultant
    Company confirms that the Individual has given written undertakings in the same terms to the Consultant Company.
	 	 
	9.6	The
    Consultant Company hereby irrevocably appoints the Company to be its attorney to execute and do any such instrument or thing
    and generally to use its name for the purpose of giving the Company or its nominee the benefit of this Clause 9 and acknowledges
    in favour of a third party that a certificate in writing signed by any director or the secretary of the Company that any instrument
    or act falls within the authority conferred by this Clause 9 shall be conclusive evidence that such is the case.
	 	 
	10.	termination
	 	 
	10.1	Notwithstanding
    the provisions set forth in Clause 2.2 hereof, the Company may terminate the Engagement with immediate effect for Cause without
    notice and with no liability to make any further payment to the Consultant Company or the Individual (other than those set
    out in Clause 10.2. hereof).
	 	 
	10.2	In
    this context “Cause” shall mean if the Consultant Company and/or the Individual:

 

	 	(a)	is
    guilty of any gross misconduct affecting the business of the Company or any Group Company; or
	 	 	 
	 	(b)	commits
    any serious or repeated breach or non-observance of any of the provisions of this Agreement or refuses or neglects to comply
    with any reasonable and lawful directions of the Board; or
	 	 	 
	 	(c)	is,
    in the reasonable opinion of the Board, negligent and incompetent in the performance of his duties; or
	 	 	 
	 	(d)	is
    guilty of any fraud or dishonesty or acts in any manner which in the opinion of the Company or the Board brings or is likely
    to bring the Individual or the Company or any Group Company into disrepute or is materially adverse to the interests of any
    Group Company; or
	 	 	 
	 	(e)	is
    unable by reason of Incapacity to perform his duties under this Agreement for an aggregate period of 12 weeks in any 52 weeks’
    period; or
	 	 	 
	 	(f)	seeks
    to substitute the Individual under the circumstances set out in Clause 2.3 of this Agreement.

 

	10.3	The
    rights of the Company under clause 10.1 are without prejudice to any other rights that it might have at law to terminate the
    Appointment or to accept any breach of this Agreement by the Individual as having brought the Agreement to an end. Any delay
    by the Company in exercising its rights to terminate shall not constitute a waiver thereof.

 

    	 	 8	 

    	 

    

 

	11.	Obligations
    upon termination
	 	 
	11.1	On
    the Termination Date the Consultant Company shall, and shall procure that the Individual shall:

 

	 	(a)	immediately
    deliver to the Company all documents, books, materials, records, correspondence, papers and information (on whatever media
    and wherever located) relating to the business or affairs of any Group Company or their business contacts, any keys, and any
    other property of any Group Company, which is in its or his possession or under its or his control;
	 	 	 
	 	(b)	irretrievably
    delete any information relating to the business of any Group Company stored on any magnetic or optical disk or memory and
    all matter derived from such sources which is in its or his possession or under its or his control outside the premises of
    the Company; and
	 	 	 
	 	(c)	provide
    a signed statement that it has complied fully with its obligations under this Clause 11 and procure that the Individual also
    provides such signed statement.

 

	11.2	Regardless
    of the reason for any termination of this Agreement, the Consultant Company shall be entitled to:

 

	 	(a)	any
    unpaid portion of the Fees through to Termination Date;
	 	 	 
	 	(b)	reimbursement
    of any outstanding business expenses which are properly incurred in accordance with the Company’s expense policy and/or
    practice in force from time to time.
	 	 	 
	 	(c)	Directors’
    and Officers’ insurance coverage in accordance with the terms of this Agreement. 

 

	11.3	Termination
    payments due under this Agreement shall be made no later than within 60 days of the termination date. 
	 	 
	11.4	In
    the event that the Company terminates for Convenience, the Company shall, in addition to the payments provided for in Clause
    11.2, pay the Consultant Company the following:

 

	 	(a)	A
    lump sum payment equal to one times the sum of the annual Fees payable to the Consultant Company for the Services of the Individual;
    and 
	 	 	 
	 	(b)	a
    separation bonus of $150,000 (whether or not the performance milestones have been achieved); and 
	 	 	 
	 	(c)	vesting
    of any stock grant provided for in the Management Incentive Plan. 

 

    	 	 9	 

    	 

    

 

	12.	Status
	 	 
	12.1	The
    relationship of the Consultant Company (and the Individual) to the Company will be that of independent contractor and nothing
    in this Agreement shall render it (nor the Individual) an employee, worker, agent or partner of the Company and the Consultant
    Company shall not hold itself out as such and shall procure that the Individual shall not hold himself out as such.
	 	 
	12.2	This
    Agreement constitutes a contract for the provision of services and not a contract of employment and accordingly the Consultant
    Company shall be fully responsible for and shall indemnify the Company or any Group Company for and in respect of payment
    of the following within the prescribed time limits:

 

	 	(a)	any
    income tax, National Insurance and Social Security contributions and any other liability, deduction, contribution, assessment
    or claim arising from or made in connection with either the performance of the Services or any payment or benefit received
    by the individual (or their associates) in respect of the Services, where such recovery is not prohibited by law. The Consultant
    Company shall further indemnify the Company against all reasonable costs, expenses and any penalty, fine or interest incurred
    or payable by the Company in connection with or in consequence of any such liability, deduction, contribution, assessment
    or claim;
	 	 	 
	 	(b)	any
    liability for any employment-related claim or any claim based on worker status (including reasonable costs and expenses) brought
    by the Individual or any Substitute against the Company arising out of or in connection with the provision of the Services,
    except where such claim is as a result of any act or omission of the Company.

 

	12.3	The
    Company may at its option satisfy such indemnity (in whole or in part) by way of deduction from payments due to the Consultant
    Company or the Individual.
	 	 
	13.	Post-Termination
    Restrictions
	 	 
	13.1	In
    order to protect the Confidential Information, trade secrets and business connections of the Company and each Group Company
    to which the Consultant Company and/or Individual has access as a result of the Engagement, the Consultant Company covenants
    with the Company and shall procure that the Individual also enters into similar covenants benefiting the Company that neither
    the Consultant Company nor the Individual shall:

 

	 	(a)	for
    12 months after Termination solicit or endeavour to entice away from the Company or any Group Company the business or custom
    of a Restricted Customer with a view to providing goods or services to that Restricted Customer in competition with any Restricted
    Business; or
	 	 	 
	 	(b)	 for
    12 months after Termination in the course of any business concern which is in competition with any Restricted Business, offer
    to employ or engage or otherwise endeavour to entice away from the Company or any Group Company any Restricted Person; or

 

    	 	 10	 

    	 

    

 

	 	(c)	for
    12 months after Termination, be involved in any Capacity with any business concern which is (or intends to be) in competition
    with any Restricted Business; or
	 	 	 
	 	(d)	for
    12 months after Termination be involved with the provision of goods or services to (or otherwise have any business dealings
    with) any Restricted Customer in the course of any business concern which is in competition with any Restricted Business;
    or
	 	 	 
	 	(e)	at
    any time after Termination, represent himself as connected with the Company or any Group Company in any Capacity.

 

	13.2	None
    of the restrictions in Clause 13 shall prevent the Consultant Company or the Individual from:

 

	 	(a)	being
    engaged or concerned in any business concern insofar as the Consultant’s duties or work shall relate solely to geographical
    areas where the business concern is not in competition with any Restricted Business; or
	 	 	 
	 	(b)	being
    engaged or concerned in any business concern, provided that the Consultant’s duties or work shall relate solely to services
    or activities of a kind with which the Consultant Company or the Individual was not concerned to a material extent in the
    twelve (12) months prior to Termination.

 

	13.3	The
    restrictions imposed on the Consultant Company and Individual by Clause 13.1 apply to either of them acting:

 

	 	(a)	directly
    or indirectly including through legal or natural persons under his control or related to him; and
	 	 	 
	 	(b)	on
    his own behalf or on behalf of, or in conjunction with, any firm, company or person.

 

	13.4	Each
    of the restrictions in this Clause 13 is intended to be separate and severable. If any of the restrictions shall be held to
    be void but would be valid if part of their wording were deleted, such restriction shall apply with such deletion as may be
    necessary to make it valid or effective.
	 	 
	14.	Notices
	 	 
	14.1	Any
    notice given under this Agreement shall be in writing and signed by or on behalf of the party giving it and shall be served
    by delivering it personally, or sending it by pre-paid recorded delivery or registered post to the relevant party at its registered
    office for the time being or by sending it by fax to the fax number notified by the relevant party to the other party. Any
    such notice shall be deemed to have been received:

 

    	 	 11	 

    	 

    

 

	 	(a)	if
    delivered personally, at the time of delivery;
	 	 	 
	 	(b)	in
    the case of pre-paid recorded delivery or registered post, 48 hours from the date of posting;
	 	 	 
	 	(c)	in
    the case of fax, at the time of transmission.

 

	14.2	In
    proving such service it shall be sufficient to prove that the envelope containing such notice was addressed to the address
    of the relevant party and delivered either to that address or into the custody of the postal authorities as a pre-paid recorded
    delivery or registered post or that the notice was transmitted by fax to the fax number of the relevant party).
	 	 
	15.	Entire
    Agreement and previous contracts
	 	 
	 	Each
    party on behalf of itself and (in the case of the Company, as agent for any Group Companies) acknowledges and agrees with
    the other party the Company acting on behalf of itself and as agent for each Group Company) that:

 

	 	(a)	this
    Agreement together with any documents referred to in it constitute the entire Agreement and understanding between the Consultant
    Company and the Company and any Group Company and supersedes any previous Agreement between them relating to the Engagement
    (which shall be deemed to have been terminated by mutual consent);

 

	 	(b)	in
    entering into this Agreement neither party nor any Group Company has relied on any pre-contractual statement; and
	 	 	 
	 	(c)	the
    only remedy available to it for breach of this Agreement shall be for breach of contract under the terms of this Agreement
    and each party shall have no right of action against any other party in respect of any pre-contractual statement. Nothing
    in this Agreement shall, however, operate to limit or exclude any liability for fraud.

 

	16.	Variation
    
	 	 
	 	No
    variation of this Agreement shall be valid unless it is in writing and signed by or on behalf of each of the parties.
	 	 
	17.	Counterparts
	 	 
	 	This
    Agreement may be executed in any number of counterparts, each of which, when executed, shall be an original, and all the counterparts
    together shall constitute one and the same instrument.
	 	 
	18.	Third
    party rights
	 	 
	 	The
    Contracts (Rights of Third Parties) Act 1999 shall not apply to this Agreement and no person other than the Consultant Company
    and the Company shall have any rights under it. The terms of this Agreement or any of them may be varied, amended or modified
    or this Agreement may be suspended, cancelled or terminated by Agreement in writing between the parties or this Agreement
    may be rescinded (in each case), without the consent of any third party.

 

	19.	Governing
    law and jurisdiction
	 	 
	19.1	This
    Agreement and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual
    disputes or claims) shall be governed by and construed in accordance with English law. 
	 	 
	19.2	Each
    party irrevocably agrees to submit to the exclusive jurisdiction of the courts of England and Wales over any claim or matter
    arising under or in connection with this Agreement.

 

    	 	 12	 

    	 

    

 

	Schedule		Services	

 

 

The
Individual’s Position Title: Group Chief Executive Officer

 

The
Individual reports to: Board of Directors of Coda Octopus Group, Inc.,

 

Job
Summary

 

The
Individual serves as chief executive of Coda Octopus Group, Inc., and, in partnership with the Board, is responsible for the success
of Coda Octopus Group, Inc. Together, the Board and the Individual assure the accomplishment of Coda Octopus’ mission and
vision and its business plans, and the accountability of Coda Octopus to its diverse constituents.

 

The
Board delegates responsibility for management and day-to-day operations to the Individual, and she has the authority to carry
out these responsibilities, in accordance with the direction and policies established by the Board. The Individual provides direction
to the Board enabling it to carry out its governance functions.

 

Accountabilities

 

	1)	Mission,
                                         policy and planning

 

	 	a)	Helps
    the Board determine Coda Octopus’ values, mission, vision, and short- and long-term goals.
	 	 	 
	 	b)	Helps
    the Board monitor and evaluate Coda Octopus’ effectiveness and results.
	 	 	 
	 	c)	Keeps
    the Board fully informed on the condition of Coda Octopus and on all the important factors influencing it.
	 	 	 
	 	 	Identifies
    problems and opportunities and addresses them; brings those which are appropriate to the Board and/or its committees; and,
    facilitates discussion and deliberation.
	 	 	 
	 	 	Informs
    the Board and/or its committees about trends, issues, problems and activities in order to facilitate policy-making and recommends
    policy positions.

 

	2)	Management
    and administration

 

	 	a)	Provides
    general oversight of all Coda Octopus’ activities, manages the day-to-day operations, and assures a smoothly functioning,
    efficient organization.
	 	 	 
	 	b)	Assures
    organizational stability through development and implementation of standards and controls, systems and procedures, and regular
    evaluation.
	 	 	 
	 	c)	Recommends
    staffing and financing to the Board of Directors. In accordance with Board action, recruits personnel, negotiates professional
    contracts, and sees that appropriate salary structures are developed and maintained. 
	 	 	 
	 	d)	Specifies
    accountabilities for management personnel and evaluates performance regularly.

 

    	 	 13	 

    	 

    

 

	3)	Governance

 

	 	a)	Helps
    the Board articulate its own role and accountabilities and that of its committees and individual members, and helps evaluate
    performance regularly. 
	 	 	 
	 	b)	Works
    with the Board Chair to enable the Board to fulfill its governance functions and facilitates the optimum performance by the
    Board, its committees and individual Board members.
	 	 	 
	 	c)	Focuses
    Board attention on long-range strategic issues.

 

	4)	Financing	 

 

	 	a)	Promotes
    products and product development that are produced in a cost-effective manner, employing economy while maintaining an acceptable
    level of quality.
	 	 	 
	 	b)	Oversees
    the fiscal activities of the organization including budgeting, reporting and audit.

 

    	 	 14	 

    	 

    

 

	Executed
    by Coda Octopus Group acting by Geoff Turner, Deputy Group Chief Executive Officer and Director 	
	 	
	 	 
	Executed
    by Pemanaco Limited acting by Annmarie Gayle, director	 
	 	Signature
    and Date: 15 June 2013

 

    	 	 15

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