Document:

exv10w11

 

Exhibit 10.11

Employment Agreement

Universal Biosensors Pty Ltd

ACN 098 234 309

Alastair Hodges

 

 

Contents

	 	 	 	 	 	 	 
	1.

	 	Definitions and Interpretation
	 	 	3	 
	2.

	 	Interpretation
	 	 	4	 
	3.

	 	Appointment
	 	 	4	 
	4.

	 	Term
	 	 	5	 
	5.

	 	Position and Duties
	 	 	5	 
	6.

	 	Remuneration and Benefits
	 	 	6	 
	7.

	 	Confidential Information
	 	 	7	 
	8.

	 	Cessation of Employment Obligations
	 	 	8	 
	9.

	 	Intellectual Property
	 	 	8	 
	10.

	 	Termination
	 	 	9	 
	11.

	 	Non Competition
	 	 	11	 
	12.

	 	Notice
	 	 	12	 
	13.

	 	No Assignment
	 	 	12	 
	14.

	 	Governing Law
	 	 	12	 
	15.

	 	Counterparts
	 	 	12	 

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

Employment Agreement

Parties

	1.	 	Universal Biosensors Pty Ltd ACN 098 234 309 of 103 Ricketts Road Mount Waverley, Victoria
3149, Australia (Company).
	 
	2.	 	Alastair Hodges of 15 Jasmine Court, Blackburn South, Victoria 3130, Australia (Employee).

Recital

	A.	 	The Employee commenced employment with the Company on the Commencement Date. The Employee
was previously employed pursuant to an employment agreement which has expired.
	 
	B.	 	This agreement sets out the terms and conditions on which the Company has agreed to continue
to employ the Employee.

Operative clauses

	1.	 	Definitions and Interpretation
	 
	 	 	In this agreement, unless the context other wise requires:
	 
	 	 	Business means the research and development activities of the Company;
	 
	 	 	Business Day means any day on which trading banks are open for business in Melbourne,
Australia (other than a Saturday or a Sunday);
	 
	 	 	Confidential Information means any information obtained by the Employee in the course of the
Employment whether in written, electronic or oral form and including:

	 	a.	 	all commercial information about the Company and the Business and persons with
whom the Company and Business deal from time to time;
	 
	 	b.	 	all commercial information about the business, financial plans and strategy of
the Company including without limitation any mining or processing lease arrangements and
sales and marketing information;
	 
	 	c.	 	all trade secrets, know-how and other processes of the Business; and
	 
	 	d.	 	any information marked “confidential” or which the Company inform the Employee is
confidential or a trade secret;

	 	 	but excluding:

	 	e.	 	information in the public domain at the date of this agreement;

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

	 	f.	 	information which comes into the public domain after the date of this agreement
otherwise than by breach of the Employee’s obligation of confidentiality contained in
this agreement; and
	 
	 	g.	 	information which the Employee lawfully possessed before obtaining it in the course
of the Employment;

EBIT means earnings before interest and tax;

Effective Date means the date set out in item 2 of the schedule to this agreement

Employment means the employment of the Employee by the Company commencing on the Commencement Date.

	2.	 	Interpretation

In this agreement, unless the context otherwise requires:

	 	2.1	 	headings do not affect interpretation;
	 
	 	2.2	 	singular includes plural and plural includes singular;
	 
	 	2.3	 	words of one gender include any gender;
	 
	 	2.4	 	reference to a person includes a corporation, joint venture, association,
government body, firm and any other entity;
	 
	 	2.5	 	reference to a party includes that party’s personal representatives, successors
and permitted assigns;
	 
	 	2.6	 	a provision must be read down to the extent necessary to be valid. If it cannot
be read down to the extent, it must be severed;
	 
	 	2.7	 	another grammatical form of a defined expression has a corresponding meaning;
	 
	 	2.8	 	“$” or “dollars” is a reference to the lawful currency of Australia.

	3.	 	Appointment

	 	3.1	 	Employment
	 
	 	 	 	The Company continues to employ the Employee on the terms of this agreement.

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

	 	3.2	 	Location
	 
	 	 	 	The Employee will be based in Victoria, Australia unless otherwise agreed by the
Company and the Employee. The Employee may be required to travel from time to time as
the business dictates.

	4.	 	Term

	 	4.1	 	Start
	 
	 	 	 	The Employee commenced employment with the Company on the Commencement Date. This
agreement takes effect from the Effective Date.
	 
	 	4.2	 	End
	 
	 	 	 	The Employment ends on the date set out in item 3 of the schedule (as
extended from time to time under clause 4.3) or such earlier date the
Employment ceases or is terminated under this agreement.
	 
	 	4.3	 	Extensions
	 
	 	 	 	At least 3 months prior to the expiry of the term of the Employment in
accordance with clause 4.2 or by prior application of this clause 4.3,
the parties will meet to negotiate the terms of a replacement
employment agreement. If the parties do not meet during that 3 month
period or, if they fail to negotiate a replacement agreement during
that period, the Employment is automatically extended for a further 12
calendar months on the same terms and conditions as this agreement.

	5.	 	Position and Duties

	 	5.1	 	Title
	 
	 	 	 	The Employee is to be employed in the role and with the title set out in item 4 of the
schedule. The Company may from time to time change the title.
	 
	 	5.2	 	Responsibilities
	 
	 	 	 	The Employee will be responsible for the matters or activities described in item 5 of
the schedule. The Company may from time to time alter the duties or activities of the
Employee.
	 
	 	5.3	 	Duties
	 
	 	 	 	The Employee must:

	 	5.3.1	 	report as directed by their supervisor or Company senior management
in relation to the matters or activities for which the Employee is responsible;

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

	 	5.3.2	 	observe all Company policies, rules, regulations and directions;
	 
	 	5.3.3	 	perform the responsibilities for which the Employee is employed
faithfully and to the best of the Employee’s ability and the parties will consult
with each other where necessary to enable the Employee to properly perform his
responsibilities;
	 
	 	5.3.4	 	use the Employee’s best endeavours in the furtherance of the
business of the Company; and
	 
	 	5.3.5	 	work during normal business hours and other hours reasonably
required by the Company.

	 	5.4	 	Exclusivity
	 
	 	 	 	The Employee will devote his time and attention exclusively to the Business
and affairs of the Company.

	6.	 	Remuneration and Benefits

	 	6.1	 	Salary

	 	6.1.1	 	On and from the Effective Date, the Employee is entitled to a salary
of the amount set out in item 6 of the schedule.
	 
	 	6.1.2	 	The salary is to be paid by equal monthly installments into a bank
account nominated by the Employee.

	 	6.2	 	Salary Review
	 
	 	 	 	The annual salary in clause 6.1 is to be reviewed at the interval set out in item 7 of
the schedule. Any increase is to be effective on such review date even if the
determination of the amount of salary increase occurs later.
	 
	 	6.3	 	Other Benefits
	 
	 	 	 	The Employee will be entitled to:

	 	6.3.1	 	leave –annual leave as required by law to be taken at times to be
agreed with the Company;
	 
	 	6.3.2	 	sick leave and long service leave – in accordance with the law;
	 
	 	6.3.3	 	expenses – reimbursement of expenses properly incurred in the course
of the Employment subject to provision to the Company of receipts and related
documentation in accordance with the policies and procedures established by the
Managing Director from time to time; and

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

	 	6.3.4	 	superannuation payments – in accordance with the law,
	 
	 	6.3.5	 	other benefits set out in item 8 of the schedule.

	 	6.4	 	For the avoidance of doubt, all of the Employee’s entitlements accrue from the
Commencement Date.

	7.	 	Confidential Information

	 	7.1	 	Maintenance of Confidentiality
	 
	 	 	 	During and after the Employment, the Employee may use or disclose Confidential
Information only for the following purposes:

	 	7.1.1	 	to perform the Employee’s responsibilities and discharge the
Employee’s duties under this agreement;
	 
	 	7.1.2	 	if the Company has otherwise consented in writing;
	 
	 	7.1.3	 	if required by statute or law; or
	 
	 	7.1.4	 	if required to be used or disclosed by the Employee in connection
with any actual, prospective or threatened legal proceedings.

	 	7.2	 	Security
	 
	 	 	 	The Employee must:

	 	7.2.1	 	keep the Confidential Information in the Employee’s custody or
control (to the extent not within the custody or control of the Company);
	 
	 	7.2.2	 	keep the Confidential Information in a reasonably secure manner;
	 
	 	7.2.3	 	immediately notify the Company of any suspected or actual
unauthorised use, copying or disclosure of Confidential Information of which the
Employee becomes aware;
	 
	 	7.2.4	 	at the Company’s expense, provide any assistance reasonably
requested by the Company from time to time in relation to any proceedings the
Company may institute to protect the Confidential Information from unauthorised
use, copying or disclosure;
	 
	 	7.2.5	 	not make any unauthorised copies of the whole or any part of the
Confidential Information; and
	 
	 	7.2.6	 	if required by the Company, mark copies of Confidential Information
“confidential”.

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

	 	7.3	 	Continuing Obligations
	 
	 	 	 	The obligations of the Employee under this clause 7, survive termination of the
agreement.

	8.	 	Cessation of Employment Obligations
	 
	 	 	Upon cessation of the Employment, the Employee must:

	 	8.1	 	deliver all Confidential Information in the Employee’s custody or control to the
Company or at the Company’s direction.
	 
	 	8.2	 	delete all Confidential Information held in electronic or other media form in the
Employee’s custody or control; and
	 
	 	8.3	 	if requested by the Company, provide a certificate confirming that the Employee has
complied with its obligations under this clause.

	9.	 	Intellectual Property

	 	9.1	 	Disclosure
	 
	 	 	 	The Employee must promptly, fully and effectively disclose to the Company or its
nominee in such form as the Company may reasonably require, full details of:

	 	9.1.1	 	each and every invention (whether patentable or not), design
(whether registerable or not), trademark or service mark;
	 
	 	9.1.2	 	any copyright material;
	 
	 	9.1.3	 	any trade secret or other Confidential Information;
	 
	 	9.1.4	 	any computer program material (including source codes, algorithms,
logical ideas, concepts and processes, charts, tables and diagrams);
	 
	 	9.1.5	 	processes, know-how or improvements;
	 
	 	9.1.6	 	literary, artistic or other copyrightable works; and
	 
	 	9.1.7	 	any other intellectual property of any kind,

	 	 	 	made, written, developed or discovered by the Employee (whether alone or with others)
in the course of the Employment (whether in or out of working hours) and whether or not
capable of statutory protection.

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

	 	9.2	 	Assignment
	 
	 	 	 	In exchange for the benefits conferred on the Employee during the course of the
Employment, the Employee agrees that by reason of this clause, all Intellectual
Property created during the course of the Employment (whether in or out of working
hours) belongs to and is the property of the Company or its nominee. Accordingly the
Employee must:

	 	9.2.1	 	at the request and expense of the Company; and
	 
	 	9.2.2	 	without additional compensation from the Company,

	 	 	 	sign all such documents or instruments (including assignment deeds) and do all such
things as may be necessary to vest, confirm, perfect and record the ownership by the
Company or its nominee throughout the world of its right, title and interest to any
Intellectual Property and to enable the Company or its nominee to acquire and preserve
such rights and to have the full enjoyment of such rights.
	 
	 	9.3	 	The Employee consents to:

	 	9.3.1	 	all acts or omissions by the Company in relation to the Employee’s
moral rights in all Intellectual Property; and
	 
	 	9.3.2	 	the infringement of the Employee’s moral rights in all Intellectual
Property by the Company, its licensees, assignees and successors in title and any
person authorised by the Company at the absolute discretion of the Company and
without reference to the Employee.

	 	9.4	 	Continuing Obligations
	 
	 	 	 	The obligations of the Employee under this clause 9, survive termination of the
agreement.

	10.	 	Termination

	 	10.1	 	Resignation or Retirement

	 	10.1.1	 	The Employee may resign or retire by giving not less than 3 months written
notice to the Company. The Company may pay the Employee for the notice period in
lieu of notice, or require the Employee to work some of the notice period and pay
the Employee in lieu for the balance of the period.
	 
	 	10.1.2	 	The resignation or retirement is effective on expiry of the notice period
notified in accordance with clause 10.1.1.

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

	 	10.2	 	Termination for incapacity

	 	10.2.1	 	The Company may terminate the Employment at anytime if the Employee is mentally
or physically unfit to perform the Employee’s responsibilities and discharge the
Employee’s duties under this agreement for a total of 2 months in any 12 month
period.
	 
	 	10.2.2	 	The Company must give the Employee not less than 1 month’s written notice of its
intention to terminate under this clause 10.2.

	 	10.3	 	Termination for cause
	 
	 	 	 	The Company may terminate the Employment at any time with immediate effect for cause,
by giving written notice to the Employee specifying the cause of termination. For the
purpose of this agreement “cause” means:

	 	10.3.1	 	default by the Employee in the performance of the Employee’s responsibilities or
the discharge of the Employee’s duties under this agreement;
	 
	 	10.3.2	 	fraudulent or dishonest conduct by the Employee;
	 
	 	10.3.3	 	intemperate use of alcohol or drugs by the Employee;
	 
	 	10.3.4	 	conviction of the Employee for the commission of a felony; or
	 
	 	10.3.5	 	willful or intentional injury to the Company’s Business or affairs.

	 	10.4	 	Termination by Company on Notice
	 
	 	 	 	The Company may terminate the Employment at any time by giving 3 months written notice
to the Employee. The Company may pay the Employee for the notice period in lieu of
notice, or require the Employee to work some of the notice period and pay the Employee
in lieu for the balance of the period.
	 
	 	10.5	 	Reasonableness
	 
	 	 	 	The Employee acknowledges that the periods of notice or lack of a period of notice, as
the case may be, as set out in this clause 10, are fair and reasonable.
	 
	 	10.6	 	Accrued Rights
	 
	 	 	 	Termination of the Employment does not affect:

	 	10.6.1	 	any accrued rights or remedies one party may have against another in connection
with this agreement arising prior to termination; or

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

	 	10.6.2	 	any accrued or future entitlement to any bonus under and in accordance with
clause 6.3

	 	10.7	 	Obligations on Termination or Cessation of Employment

	 	10.7.1	 	Termination or cessation of the Employment does not affect the Employee’s
obligations under clauses 7, 8, 9 or 11.
	 
	 	10.7.2	 	On termination or cessation of the Employment, the Employee must also deliver to
the Company or its nominee:

	 	(a)	 	all property belonging to or leased by the
Company in the Employees control (including, without limitation,
stationery, cheque books, books, documents, records, disks, access
cards, keys, telephones, computers, credit cards and vehicles)
	 
	 	(b)	 	computer log-in codes and all other passwords
and access codes; and
	 
	 	(c)	 	the matters required to be returned under
clause 8.

	 	10.8	 	Extension of Service
	 
	 	 	 	This agreement can be extended as per clause 4.4.
	 
	 	10.9	 	Redundancy
	 
	 	 	 	No “redundancy” or other termination payments, other than those set out in this
agreement are payable.

	11.	 	Non Competition

	 	11.1	 	Covenant

	 	11.1.1	 	On termination of the Employment for any reason, if requested by the Company:

	 	(a)	 	the provisions of clause 11.1.2 apply for up
to 12 months after the Employment is terminated as well as applying
during the period of the Employment; and
	 
	 	(b)	 	the provisions of clause 11.1.3 apply for up
to 12 months after the Employment is terminated.

	 	11.1.2	 	The Employee, if requested by the Company, must not, whether directly or
indirectly and whether on his own account or on behalf of any other person or
entity carry on, be engaged in, or be associated with, a business similar to the
business carried on by the Company.

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

	 	11.1.3	 	The Employee, if requested by the Company, must not, whether directly or
indirectly and whether on his own account or on behalf of any other person:

	 	(a)	 	induce or attempt to induce any person to
leave the employment of the Company; or
	 
	 	(b)	 	interfere with or seek to interfere with the
relationship between the Company (on one hand) and any third party (on
the other hand).

	 	11.2.	 	Consideration by Company
	 
	 	 	 	If the Company requests that the Employee undertake the provisions set out in clauses
11.1.1, 11.1.2 and/or 11.1.3, then the Company shall pay to the Employee the equivalent
of their salary just prior to the termination of the Employment, for the period set out
in clauses 11.1.1, 11.1.2 and/or 11.1.3.
	 
	 	11.3	 	Reasonableness
	 
	 	 	 	The Employee acknowledges that the prohibitions and restrictions contained in this
clause 11 are reasonable in the circumstances and necessary to protect the Company and
the Business and its goodwill.

	12.	 	Notice
	 
	 	 	Notices or other communications must be given in writing in the English language to the
address of the party listed at the beginning of this agreement or such other address as the
party may notify to the other for the purpose of this agreement. The notice or communication
may be delivered to the person’s address or facsimile.
	 
	13.	 	No Assignment
	 
	 	 	Neither party may:

	 	13.1	 	assign its rights under this agreement to a third party; or
	 
	 	13.2	 	cause a third party to assume its obligations under this agreement.

	14.	 	Governing Law
	 
	 	 	This agreement is governed by the law of Victoria.
	 
	15.	 	Counterparts
	 
	 	 	This agreement may be executed in any number of counterparts. A counterpart may be a
facsimile. Together all counterparts make up one document.

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

EXECUTED as an agreement with effect from 1 April 2002.

Signed for and behalf of

UNIVERSAL BIOSENSORS PTY LTD

/s/ Mark Morrisson

Managing Director

	 	 	 	 	 
	Signed by Alastair Hodges

in the presence of:
	 	 /s/ Alastair Hodges	 	 
	 

	 	 

Alastair Hodges
	 	 

/s/ B. Verity

Witness

B. Verity

Name (please print)

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

SCHEDULE

	 	 	 
	Item 1
	 	 
	 
	 	 
	Commencement Date:

	 	1 April 2002
	 
	 	 
	Item 2
	 	 
	 
	 	 
	Effective Date

	 	1 April 2006
	 
	 	 
	Item 3
	 	 
	 
	 	 
	End Date:

	 	3 years from the Effective Date or longer at the discretion of the Company.
	 
	 	 
	Item 4
	 	 
	 
	 	 
	Title:

	 	Chief Scientist
	 
	 	 
	Item 5
	 	 
	 
	 	 
	Responsibilities:

	 	To oversee and assist in implementing the research and development
activities of the Company. Supervise the senior research and engineering staff.
Formulate new research directions. Prepare patent applications and assist in
prosecution of patents and patent applications as necessary. Other duties as required
by the directors from time to time.
	 
	 	 
	Item 6
	 	 
	 
	 	 
	Salary:

	 	$220,138 per annum
	 
	 	 
	Superannuation:

	 	9% or as required by law
	 
	 	 
	Item 7
	 	 
	 
	 	 
	Salary Review Date:

	 	Annually on 1st February
	 
	 	 
	Item 8
	 	 
	 
	 	 
	Other Benefits:

	 	Mobile Phone

Universal Biosensors Pty Ltd — 2006 Employment Agreementexv10w12

 

Exhibit 10.12

Employment Agreement

Parties

	1.	 	Universal Biosensors Pty Ltd ACN 098 234 309 of 103 Ricketts Road, Mt Waverley Victoria
3149 Facsimile: (02) 4365 5872 (Company)

	2.	 	Mark Morrison of 100 McKean Street, Clifton Hill, Victoria, 3068 (Employee)

Recital

This agreement sets out the terms and conditions on which the Company has agreed to employ the
Employee.

Operative clauses

	1.	 	Definitions and Interpretation
	 
	 	 	In this agreement, unless the context otherwise requires:
	 
	 	 	Business means the business and activities of the Group;
	 
	 	 	Business Day means any day on which trading banks are open for business in Melbourne,
Australia (other than a Saturday or a Sunday);
	 
	 	 	Confidential Information means any information obtained by the Employee in the course of the
Employment whether in written, electronic or oral form and including:

	 	(a)	 	all commercial information about the Group and the Business and persons with
whom the Group and Business deal from time to time;
	 
	 	(b)	 	all commercial information about the business, financial plans and strategy of
the Group including without strategic, sales and marketing information;
	 
	 	(c)	 	all trade secrets, know-how and other processes of the Business; and
	 
	 	(d)	 	any information marked ‘confidential’ or which the Group inform the Employee is
confidential or a trade secret;

	 	 	but excluding:

	 	(e)	 	information in the public domain at the date of this agreement;
	 
	 	(f)	 	information which comes into the public domain after the date of this agreement
otherwise than by breach of the Employee’s obligation of confidentiality contained in
this agreement or a breach of confidence by any other person; and
	 
	 	(g)	 	information which the Employee lawfully possessed before obtaining it in the
course of the Employment;

1

 

	 	 	Employment means the employment of the Employee by the Company under this agreement;
	 
	 	 	Group means the Company and Universal Biosensors Inc., and any of their subsidiaries or
parent companies; and
	 
	 	 	Intellectual Property means any intellectual property of any kind and includes the
intellectual property detailed in clause 9.1 of this agreement.
	 
	2.	 	Interpretation
	 
	 	 	In this agreement, unless the context otherwise requires:

	 	2.1	 	headings do not affect interpretation;
	 
	 	2.2	 	singular includes plural and plural includes singular;
	 
	 	2.3	 	words of one gender include any gender;
	 
	 	2.4	 	reference to a person includes a corporation, joint venture, association,
government body, firm and any other entity;
	 
	 	2.5	 	reference to a party includes that party’s personal representatives, successors
and permitted assigns;
	 
	 	2.6	 	a provision must be read down to the extent necessary to be valid. If it
cannot be read down to the extent, it must be severed;
	 
	 	2.7	 	another grammatical form of a defined expression has a corresponding meaning;
	 
	 	2.8	 	“$” or “dollars” is a reference to the lawful currency of Australia.

	3.	 	Appointment

	 	3.1	 	Employment
	 
	 	 	 	The Company employs the Employee on the terms of this agreement.
	 
	 	3.2	 	Location
	 
	 	 	 	The Employee will be based in 103 Ricketts Road Mount Waverley, Victoria unless
otherwise agreed by the Company and the Employee. The Employee may be required to
travel from time to time as the business dictates.

	4.	 	Term

	 	4.1	 	Start
	 
	 	 	 	The Employment starts on the date set out in item 1 of the schedule or any other
date the parties agree.

2

 

	 	4.2	 	End
	 
	 	 	 	The Employment ends on the date set out in item 2 of the schedule (as extended from
time to time under clause 4.3) or any earlier date the Employment is terminated in
accordance with this agreement.
	 
	 	4.3	 	Extensions
	 
	 	 	 	At least 3 months prior to the expiry of the term of the Employment in accordance
with clause 4.2 or by prior application of this clause 4.3, the parties will meet to
negotiate the terms of a replacement employment agreement. If the parties do not
meet during that 3 month period or if they fail to negotiate a replacement agreement
during that period, the Employment is automatically extended for a further 12
calendar months on the same terms and conditions as this agreement.

	5.	 	Position and Duties

	 	5.1	 	Title
	 
	 	 	 	The Employee is to be employed by the Company as Managing Director of the Company
with the title set out in item 3 of the schedule and reporting to the board of
directors of the Company. The Company also employs the Employee to provide the
services of Managing Director to other companies in the Group in the manner
contemplated by this agreement reporting to the board of directors of Universal
Biosensors Inc.
	 
	 	 	 	Responsibilities
	 
	 	 	 	The Employee will be responsible for the matters or activities described in item 4
of the schedule. The Company may from time to time alter the duties or activities
of the Employee.
	 
	 	5.2	 	Duties
	 
	 	 	 	The Employee must:

	 	5.2.1	 	report as directed by the directors of the Company and the
directors of Universal Biosensors Inc in relation to the matters or activities
for which the Employee is responsible;
	 
	 	5.2.2	 	observe all Group policies, rules, regulations and directions;
	 
	 	5.2.3	 	perform the responsibilities for which the Employee is
employed faithfully and to the best of the Employee’s ability and the parties
will consult with each other where necessary to enable the Employee to properly
perform his responsibilities;
	 
	 	5.2.4	 	use the Employee’s best endeavours in the furtherance of the
business of the Company and the Group; and
	 
	 	5.2.5	 	work during normal business hours and other hours reasonably
required by the Company and the Group.

3

 

	 	5.3	 	Exclusivity
	 
	 	 	 	The Employee will devote his time and attention exclusively to the Business and
affairs of the Group unless approved by the board of directors of the Company or
Universal Biosensors Inc., to do other work.

	6.	 	Remuneration and Benefits

	 	6.1	 	Salary

	 	6.1.1	 	On and from the start date, the Employee is entitled to a
salary of the amount set out in item 5 of the schedule per annum.
	 
	 	6.1.2	 	The salary is to be paid by equal monthly installments into a
bank account nominated by the Employee.
	 
	 	6.1.3	 	The salary covers payment for the performance of all the
Employee’s responsibilities with the Group and no overtime, leave loading or
other allowances will be payable (unless expressly provided for under this
agreement).

	 	6.2	 	Salary Review
	 
	 	 	 	The annual salary referred to in clause 6.1 is to be reviewed at the intervals set
out in item 6 of the schedule. Any increase is to be effective on such review date
even if the determination of the amount of an increase occurs later.
	 
	 	6.3	 	Other Benefits
	 
	 	 	 	The Employee will also be entitled to:

	 	6.3.1	 	superannuation — as required by law;
	 
	 	6.3.2	 	leave — annual leave of four weeks per year at times to be
agreed with the Chairman of directors of the Company;
	 
	 	6.3.3	 	sick leave and long service leave — as required by law;
	 
	 	6.3.4	 	expenses — reimbursement of expenses properly incurred in the
course of the Employment subject to provision to the Company of receipts and
related documentation in accordance with the policies and procedures
established by the Group from time to time; and
	 
	 	6.3.5	 	other benefits set out in item 7 of the schedule.

	7.	 	Confidential Information

	 	7.1	 	Maintenance of Confidentiality
	 
	 	 	 	During and after the Employment, the Employee may use or disclose Confidential
Information only for the following purposes:

4

 

	 	7.1.1	 	to perform the Employee’s responsibilities and discharge the
Employee’s duties under this agreement;
	 
	 	7.1.2	 	if the Company has otherwise consented;
	 
	 	7.1.3	 	if required by statute or law; or
	 
	 	7.1.4	 	if required to be used or disclosed by the Employee in
connection with any actual, prospective, apprehended or threatened legal
proceedings.

	 	7.2	 	Security
	 
	 	 	 	The Employee must:

	 	7.2.1	 	keep the Confidential Information in the Employee’s custody or
control (to the extent not within the custody or control of the Company);
	 
	 	7.2.2	 	keep the Confidential Information in a reasonably secure
manner;
	 
	 	7.2.3	 	immediately notify the Company of any suspected or actual
unauthorised use, copying or disclosure of Confidential Information of which
the Employee becomes aware;
	 
	 	7.2.4	 	at the Company’s expense provide any assistance reasonably
requested by the Company from time to time in relation to any proceedings the
Company may institute to protect the Confidential Information from unauthorised
use, copying or disclosure;
	 
	 	7.2.5	 	not make any unauthorised copies of the whole or any part of
the Confidential Information; and
	 
	 	7.2.6	 	if required by the Company, mark all copies of Confidential
Information ‘confidential’.

	 	7.3	 	Continuing Obligations
	 
	 	 	 	The obligations of the Employee under this clause 7, survive termination of this
agreement.

	8.	 	Obligations of Employee in relation to Confidential Information on Cessation of Employment
	 
	 	 	On the Employment ceasing, the Employee must:

	 	8.1	 	deliver all Confidential Information in the Employee’s custody or control to
the Company or at the Company’s direction;
	 
	 	8.2	 	delete all Confidential Information held in electronic or other media form in
the Employee’s custody or control; and
	 
	 	8.3	 	if requested by the Company, provide a certificate confirming that the Employee
has complied with its obligations under this clause.

5

 

	9.	 	Intellectual Property

	 	9.1	 	Disclosure
	 
	 	 	 	The Employee must promptly, fully and effectively disclose to the Company or its
nominee in such form as the Company may reasonably require, full details of:

	 	9.1.1	 	each and every invention (whether patentable or not), design
(whether registerable or not), trademark or service mark;
	 
	 	9.1.2	 	any copyright material;
	 
	 	9.1.3	 	any trade secret or other Confidential Information;
	 
	 	9.1.4	 	any computer program material (including source codes,
algorithms, logical ideas, concepts and processes, charts, tables and
diagrams);
	 
	 	9.1.5	 	processes, know-how or improvements;
	 
	 	9.1.6	 	literary, artistic or other copyrightable works; and
	 
	 	9.1.7	 	any other intellectual property of any kind,

	 	 	 	made, written, developed or discovered by the Employee (whether alone or with
others) in the course of the Employment (whether in or out of working hours and in
connection with all companies in the Group) and whether or not capable of statutory
protection (“Intellectual Property”).
	 
	 	9.2	 	Assignment
	 
	 	 	 	In exchange for the benefits conferred on the Employee by the Employment, the
Employee agrees that by reason of this clause all Intellectual Property created in
the course of the Employment (whether in or out of working hours and in connection
with all companies in the Group) belongs to and is the property of Company or its
nominee. Accordingly, the Employee must:

	 	9.2.1	 	at the request and expense of the Company; and
	 
	 	9.2.2	 	without additional compensation from the Company,

	 	 	 	sign all such documents or instruments (including assignment deeds) and do all such
things as may be necessary to vest, confirm, perfect and record the ownership by the
Company or its nominee throughout the world of its right, title and interest to any
Intellectual Property and to enable the Company or its nominee to acquire and
preserve such rights and to have the full enjoyment of such rights.

6

 

	10.	 	Termination

	 	10.1	 	Resignation or Retirement

	 	10.1.1	 	The Employee may resign or retire by giving not less than 3 months notice to
the Company.
	 
	 	10.1.2	 	The resignation or retirement is effective on expiry of the notice period
notified in accordance with clause 10.1.1.

	 	10.2	 	Termination for incapacity

	 	10.2.1	 	The Company may terminate the Employment at any time if the Employee is
mentally or physically unfit to perform the Employee’s responsibilities and
discharge the Employee’s duties under this agreement for a total of 2 months in
any 12 month period.
	 
	 	10.2.2	 	The Company must give the Employee not less than 1 months notice of its
intention to terminate under this clause 10.2.

	 	10.3	 	Termination for cause
	 
	 	 	 	The Company may terminate the Employment at any time with immediate effect for
cause, by notice given to the Employee specifying the cause. For the purpose of
this agreement ‘cause’ means:

	 	10.3.1	 	default by the Employee in the performance of the Employee’s responsibilities
or the discharge of the Employee’s duties under this agreement;
	 
	 	10.3.2	 	fraudulent or dishonest conduct by the Employee;
	 
	 	10.3.3	 	intemperate use of alcohol or drugs by the Employee;
	 
	 	10.3.4	 	conviction of the Employee for the commission of a felony; or
	 
	 	10.3.5	 	willful or intentional injury to the Group’s business or affairs.

	 	10.4	 	Termination on Notice
	 
	 	 	 	The Company may terminate the Employment at any time by giving 3 months notice to
the Employee or making payment in lieu of notice.
	 
	 	10.5	 	Reasonableness
	 
	 	 	 	The Employee acknowledges that the periods of notice or lack of a period of notice
set out in this clause 10, are reasonable.
	 
	 	10.6	 	Accrued Rights
	 
	 	 	 	Termination of the Employment does not affect any accrued rights or remedies one
party may have against the other in connection with this agreement arising prior to
termination.

7

 

	 	10.7	 	Obligations on Termination

	 	10.7.1	 	Termination of the Employment does not affect the Employee’s obligations
under clauses 7, 8, 9 or clause 11.
	 
	 	10.7.2	 	On termination of the Employment, the Employee must also deliver to the
Company or its nominee:

	 	(a)	 	all property belonging to or leased by the
Group in the Employee’s control (including, without limitation,
stationery, cheque books, books, documents, records, disks, access
cards, keys, telephones, computers, credit cards and vehicles);
	 
	 	(b)	 	computer log-in codes and all other passwords
and access codes; and
	 
	 	(c)	 	the matters required to be returned under
clause 8.

	 	10.8	 	Extension of Service
	 
	 	 	 	This agreement can be extended as per clause 4.3

	 
	 	10.9	 	Redundancy
	 
	 	 	 	No “redundancy” or other termination payments, other than those expressly set out in
this agreement are payable.
	 
	 	10.10	 	Other Group Companies
	 
	 	 	 	For the avoidance of doubt, the Employee’s role with all Group companies
terminates on termination of the Employment under this agreement.

	11.	 	Non Competition

	 	11.1	 	Covenant

	 	11.1.1	 	On termination of the Employee’s employment for any reason, if requested by
the employer:

	 	(a)	 	the provisions of clause 11.1.2 apply for up to
12 months after the Employment is terminated as well as applying during
the period of the Employment; and
	 
	 	(b)	 	the provisions of clause 11.1.3 apply for up to
12 months after the Employment is terminated.

	 	11.1.2	 	The Employee, if requested by the employer, must not, whether directly or
indirectly and whether on his own account or on behalf of any other person or
entity carry on, be engaged in, or be associated with, a business similar to
the business carried on by the Company or the Group.

8

 

	 	11.1.3	 	The Employee, if requested by the employer, must not, whether directly or
indirectly and whether on his own account or on behalf of any other person:

	 	(a)	 	induce or attempt to induce any person to leave
the employment of the Company or the Group; or
	 
	 	(b)	 	interfere with or seek to interfere with the
relationship between the Company and the Group (on the one hand) and
any third party (on the other hand).

	 	11.2	 	Consideration by Employer
	 
	 	 	 	If the Employer requests that the Employee undertake the provisions set out in
clauses 11.1.1, 11.1.2 and/or 11.1.3 then the Employer shall pay the Employee the
equivalent of their salary just prior to the termination of Employee’s employment,
for the period clauses 11.1.1, 11.1.2 and/or 11.1.3 are operable.
	 
	 	11.3	 	Reasonableness
	 
	 	 	 	The Employee acknowledges that the prohibitions and restrictions contained in this
clause 11 are reasonable in the circumstances and necessary to protect the Company
and its business and goodwill.

	12.	 	Indemnification
	 
	 	 	The Company agrees to enter into a deed of indemnity in form and substance the same as
the Company has entered into with other officers of the Company.
	 
	13.	 	Notice
	 
	 	 	Notices or other communications must be given in writing in the English language to the
address of the party listed at the beginning of this agreement or such other address as the
party may notify to the other for the purpose of this agreement. The notice or
communication may be delivered to the person’s address or by facsimile.
	 
	14.	 	No Assignment
	 
	 	 	Neither party may:

	 	14.1	 	assign its rights under this agreement to a third party; or
	 
	 	14.2	 	cause a third party to assume its obligations under this agreement.

	15.	 	Governing law
	 
	 	 	This agreement is governed by the law of Victoria.
	 
	16.	 	Counterparts
	 
	 	 	This agreement may be executed in any number of counterparts. A counterpart may be a
facsimile. Together all counterparts make up one document.

9

 

EXECUTED as an agreement with effect from 1 July 2005.

Signed for and behalf of

UNIVERSAL BIOSENSORS PTY LTD

	 	 	 	 	 
	/s/ Denis Hanley

	 	/s/ Ian Bennett	 	 
	Director

	 	Company Secretary
	 	 
	 
	 	 	 	 
	Denis Hanley

	 	Ian Bennett	 	 
	Name (please print)

	 	Name (please print)
	 	 
	 
	 	 	 	 
	Signed by Mark Morrisson

in the presence of:
	 	 	 	 
	 
	 	 	 	 
	/s/ D. Rylatt
	 	 	 	 
	Witness

	 	/s/ Mark Morrisson	 	 
	 
	 	 	 	 
	D. Rylatt
	 	 Mark Morrisson	 	 
	Name (please print)
	 	 	 	 

10

 

SCHEDULE

	 	 	 
	Item 1
	 	 
	 
	 	 
	Start Date:
	 	1 July 2005.
	 
	 	 
	Item 2
	 	 
	 
	 	 
	End Date:
	 	3 years from the start date of the Employment or such longer period as
	 
	 	determined in accordance with this agreement.
	 
	 	 
	Item 3
	 	 
	 
	 	 
	Title:
	 	Managing Director of the Company reporting to the board of directors of the Company.
	 
	 	 
	 
	 	At the direction of the Company, the Employee will also act as Managing Director of other companies in the Group, reporting to the board of directors of Universal Biosensors Inc.
	 
	 	 
	Item 4
	 	 
	 
	 	 
	Responsibilities:
	 	Planning for the development of the Business, development of budgets for the Group for approval by the relevant boards of directors, day to day management of the business of the Company and Group in accordance with approved budgets and business plans, supervision and development of the staff and employees, and ensuring a safe working environment. Other duties as required by the board of directors of the Company or Universal Biosensors Inc.
	 
	 	 
	 
	 	The Company may require that the Employee act as a director of companies in the Group from time to time.  The Employee will cease to be a director of all Group companies (as applicable) if the Employment ceases.
	 
	 	 
	Item 5
	 	 
	 
	 	 
	Salary:
	 	A$250,000 per annum
	 
	 	 
	Item 6
	 	 
	 
	 	 
	Salary
Review Date:
	 	Annually on the anniversary of the start date of the Employment.
	 
	 	 
	Item 7
	 	 

11

 

	 	 	 
	Other
Benefits:
	 	Mobile phone for use in connection with the Business.
	 
	 	 
	 
	 	Salary is exclusive of the superannuation
	 
	 	contributions required by law.  The Company will
	 
	 	make superannuation contributions to a complying
	 
	 	superannuation fund nominated by the Employee, as
	 
	 	required by law.
	 
	 	 
	 
	 	If desired by the Employee, and as permitted by
	 
	 	Australian Tax Law, part of the Employee's salary
	 
	 	(as may be determined by the Company on the advice
	 
	 	of the Company's taxation advisors) shall be paid
	 
	 	as a LAFHA (Living Away From Home Allowance).
	 
	 	 
	 
	 	The Employee shall participate in the Company's
	 
	 	annual Bonus Program for senior Executives. Under
	 
	 	the Bonus Program, the Employee will be eligible
	 
	 	for a cash bonus payment of up to A$60,000 (unless
	 
	 	a non-cash payment is otherwise agreed in writing
	 
	 	by the Company and the Employee).  If payable, a
	 
	 	bonus will only be payable as soon as practicable
	 
	 	after the Salary Review Date.  A bonus is only
	 
	 	payable if the Employee continues to be employed by
	 
	 	the Company at the applicable Salary Review Date.
	 
	 	50% of the bonus will be subject to direct reports
	 
	 	to the Managing Director achieving their formal
	 
	 	objectives.  50% will be subject to the achievement
	 
	 	by the Employee of Employee's applicable formal
	 
	 	objectives.  Bonus amounts and the formal
	 
	 	objectives required to be achieved in order to
	 
	 	qualify for applicable bonus amounts will be set
	 
	 	annually by the Board of the Company or a
	 
	 	remuneration committee established by the Board of
	 
	 	the Company.  The initial bonus amounts and initial
	 
	 	formal objectives for the Employee will be set
	 
	 	within 60 days of the signing of this contract.
	 
	 	 
	 
	 	The Company will grant options to the Employee over
	 
	 	stock in Universal Biosensors Inc under the terms
	 
	 	of the Group's employee incentive plan.  The
	 
	 	options will be granted as soon as reasonably
	 
	 	practicable after the date of this agreement and
	 
	 	will be subject to usual terms (including vesting
	 
	 	requirements) determined by the Group.  The
	 
	 	Employee will be granted options to purchase
	 
	 	A$500,000

12

 

	 	 	 
	 
	 	worth of stock in Universal Biosensors Inc based on
	 
	 	an assumed valuation of Universal Biosensors Inc of
	 
	 	A$28 million at the date of this agreement.  The
	 
	 	Company will adjust the number of options granted
	 
	 	and the exercise price of the options at the next
	 
	 	capital raising of Universal Biosensors Inc.
	 
	 	(intended at the date of this agreement to be an
	 
	 	initial public offering) with the intent that the
	 
	 	Employee hold options to purchase A$500,000 worth
	 
	 	of stock in Universal Biosensors Inc., calculated
	 
	 	at the valuation of Universal Biosensors Inc at the
	 
	 	date of the capital raising and with an exercise
	 
	 	price equal to the issue price of stock in the next
	 
	 	capital raising.
	 
	 	 
	 
	 	On signing of this agreement, the Company will pay
	 
	 	to the Employee a one time relocation payment of
	 
	 	A$10,000 for unspecified and undocumented expenses
	 
	 	associated with the relocation of the Employee to
	 
	 	Melbourne.
	 
	 	 
	 
	 	Within the first two years of employment, the
	 
	 	Company will reimburse the Employee for reasonable
	 
	 	costs directly associated with the relocation of
	 
	 	the Employee and his family from the United States
	 
	 	to Melbourne.  Prior to the relocation of the
	 
	 	Employee, the Company and the Employee must agree
	 
	 	on a budget of likely expenses.  For any expenses
	 
	 	over A$1,000, the Company must first authorise
	 
	 	those expenses in writing.  The Company's
	 
	 	obligation to reimburse reasonable relocation
	 
	 	expenses is subject to the Employee delivering to
	 
	 	the Company a tax invoice and documentation
	 
	 	necessary to substantiate the expenses.  The
	 
	 	Company will not pay in excess of an aggregate
	 
	 	total of the abovementioned agreed budget for
	 
	 	relocation expenses.
	 
	 	 
	 
	 	The Company will pay for the reasonable air travel
	 
	 	expenses of the Employee to enable the Employee to
	 
	 	return to the United States on a quarterly basis up
	 
	 	until Christmas 2005 by which time it is expected
	 
	 	your family will be relocated to be with you.

13

 

	 	 	 	 	 
	Contents	 	Page	 
	 
	1. Definitions and Interpretation
	 	 	1	 
	 
	 	 	 	 
	2. Interpretation
	 	 	2	 
	 
	 	 	 	 
	3. Appointment
	 	 	2	 
	 
	 	 	 	 
	4. Term
	 	 	2	 
	 
	 	 	 	 
	5. Position and Duties
	 	 	3	 
	 
	 	 	 	 
	6. Remuneration and Benefits
	 	 	4	 
	 
	 	 	 	 
	7. Confidential Information
	 	 	4	 
	 
	 	 	 	 
	8. Obligations of Employee in relation to Confidential Information on Cessation of Employment
	 	 	5	 
	 
	 	 	 	 
	9. Intellectual Property
	 	 	6	 
	 
	 	 	 	 
	10. Termination
	 	 	7	 
	 
	 	 	 	 
	11. Non Competition
	 	 	8	 
	 
	 	 	 	 
	12. Notice
	 	 	9	 
	 
	 	 	 	 
	13. No Assignment
	 	 	9	 
	 
	 	 	 	 
	14. Governing law
	 	 	9	 
	 
	 	 	 	 
	15. Counterparts
	 	 	9	 
	 
	 	 	 	 
	SCHEDULE
	 	 	11	 

 

 

Employment Agreement

Universal Biosensors Pty Ltd

ACN 098 234 309

(Company)

Mark Morrisson

(Employee)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]