Document:

exv4w8

 

Exhibit 4.8

EMPLOYMENT AGREEMENT made June 21, 2006

PARTIES

	 	 	NOVOGEN LABORATORIES PTY LTD ACN 002 489 947 of
140 Wicks Road, North Ryde 2113, New South Wales (“Company”)

AND

	 	 	RONALD LEA ERRATT
of 10 Bega Road, Northbridge, NSW, 2063 (“Employee”)

INTRODUCTION

	A.	 	The Company carries on the Business.
	 
	B.	 	The Company wishes to employ the Employee to provide the Services.
	 
	C.	 	The parties have agreed to the employment of the Employee in accordance with the provisions
of this Agreement and with the intention that this Agreement will supersede any written or
oral agreement between the parties or between the Employee and any other member of Novogen
Group.

IT IS AGREED

1. Definitions and Interpretations

	1.1	 	In this Agreement, unless the context otherwise requires:

	 	(1)	 	“Agreement” means this employment agreement and any variation amendment or
replacement of it;
	 
	 	(2)	 	“Business” means the business carried on by the Company and the members of
the Novogen Group;
	 
	 	(3)	 	“Business Day” means a day that is not a Saturday, Sunday or any other day
which is a public holiday or a bank holiday in the place where an act is to be
performed or a payment is to be made;
	 
	 	(4)	 	“Commencement Date” means the date set out in Item 1 of the Schedule;
	 
	 	(5)	 	“Company” means Novogen Laboratories Pty Limited ACN 002 489 947 and includes
the successors and assigns of that company;
	 
	 	(6)	 	“Confidential Information” means all information concerning the Business, the
business methods of the Company and any member of the Novogen Group, their
technologies, pricing policies, marketing strategies, Intellectual Property and any
other information relating to the affairs of the Company or the Novogen Group, but
does not include:
	 
	 	 	 	(a) information which was in the public domain before it was given to or accessed
by the Employee; or

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	 	 	 	(b) information which, after being given to or accessed by the Employee, became
part of the public domain other than as a result of a breach by the Employee of any
obligation of confidence to the Company or the Novogen Group;

	 	(7)	 	“Design” has the same meaning as in the Designs Act 2003 (Cth);
	 
	 	(8)	 	“Intellectual Property” means all industrial and intellectual property rights
throughout the world, including trade marks, logos, service marks, trade names,
business names, copyrights, designs, patents, inventions, processes and other
technical know-how (including extraction and manufacturing know-how), secret
information and other rights in industrial or intellectual property and applications
for them or licence agreements or other arrangements under which a person has the
right to use any of them;
	 
	 	(9)	 	“Inventions” means all inventions, discoveries and novel designs, whether or
not registrable as designs under the Designs Act 2003 (Cth) or patents under the
Patents Act 1990 (Cth), or any corresponding law in any other country, including any
inventions, developments, improvements or modifications to compounds, equipment,
technology, methods or techniques;
	 
	 	(10)	 	“Novogen Group” means the Company and each of Novogen Research Pty Limited
ACN 060 202 931, Novogen Limited ACN 063 259 754 and any Related Body Corporate of any
of them from time to time;
	 
	 	(11)	 	“Patents” has the same meaning as in the Patents Act 1990 (Cth);
	 
	 	(12)	 	“Related Body Corporate” in relation to a body corporate means a body
corporate that is related to the first mentioned body by virtue of section 50 of the
Corporations Act;
	 
	 	(13)	 	"Remuneration” means the amount determined under clause 14;
	 
	 	(14)	 	“Restraint Period” means the period described in Item 10 of the Schedule;
	 
	 	(15)	 	“Services” means the services described in clause 4 to be provided in
accordance with this Agreement; and
	 
	 	(16)	 	“Works” means all works and other subject matter as defined in the Copyright
Act 1968 (Cth), and any other thing in which copyright subsists.

1.2 Interpretation

	 	(1)	 	Reference to:

	 	(a)	 	one gender includes the other genders;
	 
	 	(b)	 	the singular includes the plural and the plural includes the singular;
	 
	 	(c)	 	a person includes a body corporate;
	 
	 	(d)	 	a party includes the party’s executors, administrators,
successors and permitted assigns; and
	 
	 	(e)	 	a statute, regulation or provision of a statute or regulation
(“Statutory Provision”) includes:

	 	(i)	 	that Statutory Provision as amended or
re-enacted from time to time; and

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	 	(ii)	 	a statute, regulation or provision enacted
in replacement of that Statutory Provision.

	 	(2)	 	All monetary amounts are in Australian dollars, unless otherwise stated.
	 
	 	(3)	 	Headings are for convenience only and do not affect the interpretation, or
form part, of this Agreement.
	 
	 	(4)	 	Where a word or expression is given a particular meaning, other parts of
speech and grammatical forms of that word or expression have a corresponding meaning.
	 
	 	(5)	 	If an act must be done on a specified day which is not a Business Day, the
act must be done instead on the next Business Day.

2. Employment

	2.1	 	The Company employs the Employee to provide the Services to the Company upon and subject to
the terms and conditions of this Agreement and the Employee accepts such employment.
	 
	2.2	 	The position in which the Employee is employed by the Company as and from the Commencement
Date is as set out in Item 4 of the Schedule.
	 
	2.3	 	The Employee shall as at the Commencement Date be located at the office of the Company set
out in Item 5 of the Schedule.

3. Term

	3.1	 	The Company employs the Employee to provide the Services to the Company for the period set
out in Item 2 of the Schedule (“Initial Term”) unless such employment is terminated earlier in
accordance with clause 18 of this Agreement.
	 
	3.2	 	On expiry of the Initial Term, the employment will continue until terminated by either party
giving the period of notice set out in Item 3 of the Schedule, or, in the case of termination
by the Company, by the making of a payment in lieu of the period of notice set out in Item 3
of the Schedule.

4. Services

	4.1	 	The Employee will perform all the functions of a person in the position set out in Item 4 of
the Schedule or such other services as may be determined by the Company from time to time.
	 
	4.2	 	The Employee must carry out his employment in the capacity referred to in clause 4.1 or as
amended by the Company in such manner and at such time as the Company may from time to time
reasonably determine.

5. General Duties and Obligations

5.1 Without limiting any other provision of this Agreement the Employee must at all times during
his employment hereunder:

	 	(1)	 	be just and faithful in all transactions relating to the Company and the
Novogen Group and must show the utmost good faith in the business of the Company and
the Novogen Group;

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	 	(2)	 	give to the Company a just and faithful account of such transaction and also
upon every reasonable request furnish a full and correct explanation thereof to the
Company;
	 
	 	(3)	 	divulge to the Company all information or knowledge which he may possess in
relation to the affairs, business and activities of the Company;
	 
	 	(4)	 	use his best skill and endeavour to promote the interest and welfare of the
Company and the Novogen Group and carry out the same for the utmost benefit of the
Company and the Novogen Group and diligently and faithfully apply himself to the
affairs, business and activities of the Company; and
	 
	 	(5)	 	not at any time intentionally do anything which directly or indirectly may
impair or be likely to impair the good name and reputation of the Company or the
Novogen Group.

	5.2	 	The Employee must carry out his employment and must conduct himself at all times in a
professional manner.

6. Compliance with Directions

	6.1	 	The Employee must at all times during his employment hereunder obey, comply with and carry
out the proper and reasonable directions, orders and instructions of and shall be directly
responsible and answerable to the Individual or Group identified in Item 11 of the Schedule or
as amended by the Company from time to time under clause 4.

7. Time Devoted to Employment

	7.1	 	The Employee must at all times during his employment hereunder devote the whole of his
attention and abilities to the business and activities of the Company and in the performance
of his responsibilities and duties under this Agreement.
	 
	7.2	 	Without the prior written consent of the Company, the Employee must not be a director of any
body corporate which carries on or is concerned with any activity identical to or
substantially similar to that of the Novogen Group or where being a director may directly or
indirectly affect the Business of the Novogen Group.
	 
	7.3	 	Nothing contained in this clause 7 prohibits the Employee from making any purchase or sale of
stocks, securities, real estate or personal property (tangible or intangible) for purposes of
investment or from making any other private investment other than as may be prohibited by
clause 17 or one which is, in the opinion of the Company, reasonably held, detrimental to the
interest of the Novogen Group.

8. Duty to Act within Limits

The Employee must not without the prior written consent of the Company:

	 	(1)	 	employ any of the money, goods or effects of the Company or any member of
Novogen Group or pledge the credit thereof except in the ordinary course of business
and upon the account of and or the benefit of the Company or member of the Novogen
Group;
	 
	 	(2)	 	lend money or give credit on behalf of the Company or any member of the
Novogen Group or have any dealings with any person whom the Company has previously in
writing forbidden the Employee to deal with or trust;
	 
	 	(3)	 	give any guarantee, undertaking or indemnity or enter into any bond with or
become bail, surety or surety for any person or do or knowingly cause or suffer to be
done anything

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	 	 	 	whereby the property of the Company or any member of the Novogen Group
or any part thereof may be seized, attached or taken in execution, after the Company
has previously in writing forbidden the Employee to deal with such person; or
	 
	 	(4)	 	enter into any leasing, hiring, hire-purchase, rental or financing
arrangements or transactions with respect to assets or property acquired or to be
acquired by the Company or any member of the Novogen Group.

9. Indemnity by Employee.

	9.1	 	Unless otherwise resolved by the Board of Directors of the Company, the Employee covenants
that at all times during his engagement hereunder and thereafter indemnify and keep
indemnified the Company or member of the Novogen Group, as the case may be, in respect of any
loss or damage or actions,
proceedings costs, claims, demands or judgements it may incur or suffer by reason of any
breach by the Employee of any of the provisions of clause 8. This indemnity is in addition
to and not in substitution for any other right or remedy available to the Company in the
event of such breach.

10. Indemnity by Company

	10.1	 	Subject to the Corporations Act and the Constitution of the Company, the Company agrees to
indemnify and keep indemnified the Employee and his executors, administrators and legal
personal representatives against any loss, costs, damages, judgments or liability suffered or
incurred by the Employee in respect of any act, neglect, default or error or judgement in the
course of his employment and for which the Company would be vicariously liable other than any
wilful or gross neglect, default or breach of duty or breach of trust.
	 
	10.2	 	Without limiting clause 10.1 :

	 	(1)	 	the Employee may be indemnified by the Company where the Board of Directors of
the Company considers it appropriate, against any liability incurred by the Employee in
the connection with the performance by him of his position with the Company, unless the
liability arises out of conduct involving lack of good faith;
	 
	 	(2)	 	the Employee shall be indemnified by the Company against any liability
incurred by him in defending any proceedings in connection with the performance by him
of his position with the Company whether civil or criminal in which judgment is given
in his favour or in which the Employee is acquitted or in connection with any
application in relation to any proceedings in which relief under the Corporations Act
is granted to him by the court;
	 
	 	(3)	 	to the extent permissible by law, the Company may, pay a premium in respect
of a contract insuring the Employee against a liability incurred by the Employee in
connection with the performance by him of his position with the Company except for a
liability arising out of conduct involving a wilful breach of duty in relation to the
Company..

11. Annual Leave

	11.1	 	During the course of his employment hereunder the Employee is entitled to paid annual leave
of 20 working days for every period of 12 months of service as from the Commencement Date.
	 
	11.2	 	The days of annual leave referred to in clause 11.1 are in addition to any day which is
proclaimed to be a public holiday in the place in which the Employee is at the relevant time
located.
	 
	11.3	 	The entitlement to annual leave is deemed to arise pro rata.

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	11.4	 	Any annual leave entitlement must be taken by the Employee at such time or times as is
mutually convenient to the Employee and the Company.
	 
	11.5	 	Any annual leave entitlement not taken may be added to and taken with any further annual
leave entitlement.

12. Sick Leave

	12.1	 	The Employee is entitled to be paid sick leave of 11 working days for every 12 months of
service.
	 
	12.2	 	Any sick leave entitlement not taken in any year may be taken by the Employee in another year
provided that any accumulated sick leave entitlement which immediately prior to the
termination of the employment of the Employee hereunder has not been taken shall be forfeited
on termination.

	13.	 	Long Service Leave

	13.1	 	The Employee is entitled to long service leave under the Long Service Leave Act of the State
or Territory in which the Employee is located.

14. Remuneration

	14.1	 	In consideration of the provision by the Employee of his services to the Company hereunder,
the Company shall pay the Employee Remuneration, the amount of which and the rate of payment
of which shall be, if not otherwise determined under this clause 14:

	 	(a)	 	a base salary;
	 
	 	(b)	 	a superannuation contribution which, as a minimum, is the
amount the Company must contribute on behalf of the Employee to avoid being
liable for the superannuation guarantee charge under superannuation guarantee
legislation;
	 
	 	(c)	 	motor vehicles;
	 
	 	(d)	 	other allowances; and
	 
	 	(e)	 	otherwise,

	 	 	as may be determined from time to time.
	 
	14.2	 	Notwithstanding the provision of clause 14.1 the Employee, as and from the Commencement Date,
shall receive from the Company such remuneration salary as is set out in Item 9 of the
Schedule.
	 
	14.4	 	The Remuneration is designed to compensate the Employee for all hours worked and the Employee
is not entitled to any payment of overtime rates during the term of his employment hereunder.

15. Directorships

	15.1	 	It is acknowledged by the employee that the Company and any other member of the Novogen Group
may require the Employee to serve as a director on the Board of any member to the Novogen
Group.
	 
	15.2	 	It is further acknowledged that the Employee shall serve as a director of another member of
the Novogen Group as the nominee of the Company, and that the Employee must retire as a
director from any such Board forthwith upon his being requested to do so by the Company.
	 
	15.3	 	In the event of the Employee ceasing to be an employee of the Company or member of the
Novogen Group, he is deemed to have automatically retired from and vacated his office as a
member of the Board of each member of the Novogen Group and the Employee gives an irrevocable
authority to the

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	 	 	Managing Director or other appointee of the Board to do all things and
execute all documents necessary on behalf of the Employee to give effect to the resignations.

16. Confidentiality

	16.1	 	Without limiting or derogating from in any way any rule of law or equity the Employee
covenants with the Company that he shall not at any time without the prior written consent of
the Company publish or divulge any Confidential Information to any person unless such
publication or disclosure is made in the normal course of his employment or with the prior
written consent of the Company.
	 
	16.2	 	The provisions of this clause 16 do not prejudice any other express or implied obligation on
the part of the Employee to maintain confidentiality.
	 
	16.3	 	Without limiting the extent of clauses 16.1 or 16.2 Confidential Information may include
information disclosed to the Company or the Employee by any existing or potential customer,
supplier, contractor, agent, licensee or licensor of the Company or the Novogen Group.
	 
	16.4	 	The Employee will at the request of the Company sign a confidentiality agreement containing
provisions similar to the provisions in this clause 16 in favour of any member of the Novogen
Group or any of the persons referred to in clause 16.3.
	 
	16.5	 	This clause 16 survives termination of this Agreement with respect to any information until
such information is no longer Confidential Information.

17. Restraint on Competition

	17.1	 	The Employee covenants and agrees with the Company that without derogating from or limiting
the effect of clause 7 he shall not either alone or jointly or in partnership or by way of a
joint venture or otherwise with or as a shareholder, servant, agent, consultant, adviser,
officer or contractor of any other person or persons, other than as an employee of the Company
or a member of the Novogen Group, either directly or indirectly carry on or manage or be
concerned or interested in or assist any other person or persons to carry on or be concerned
or to obtain any interest in any industry or business engaged in the research, development,
manufacture, extraction, processing, marketing, distribution or sale of any veterinary or
human pharmaceutics or therapeutics or any business or industry identical to or substantially
similar to the Business of the Company, or any of the members of the Novogen Group in any
State or Territory of Australia or any other place in the world at any time during the course
of his employment hereunder.
	 
	17.2	 	Notwithstanding the provisions of clause 17.1 the Company agrees with the Employee that the
Employee may hold shares in a public company the shares of which are quoted on any share or
stock exchange in the world.
	 
	17.3	 	The Employee convenants and agrees with the Company that he will not during the period set
out in item 10 of the Schedule as from the date upon which this Agreement is terminated either
directly or indirectly on his own account or for or with any other person or persons, solicit,
interfere with or endeavour to entice away from the Company, or any of the members of the
Novogen Group any person who, during the employment of the Employee with the Company or any
member of the Novogen Group was a customer, supplier, contractor, agent, licensee or licensor
or to the knowledge of the Employee was a person with whom any of the aforesaid was
negotiating with a view to that person becoming a customer, supplier, contractor, agent,
licensee or licensor of any of the aforesaid.
	 
	17.4	 	It is expressly acknowledged and agreed that the provision of clauses 17.1 and 17.3 are
necessary in order to protect the interests of the Company, the Novogen Group and of the
Business and the

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	 	 	confidentiality of the knowledge of the Employee as to the affairs, business
and activities of the Company and the Novogen Group.
	 
	17.5	 	It is expressly acknowledged and agreed by the Employee that the provisions of clause 17.1
and 17.3 are reasonable particularly in light of the provisions of clause 17.4 and in so far
as the provisions of clause 17.1 relate to any activities, state or territory the restraint is
distinct and severable from any other activity, state or territory and the invalidity of the
restraint in respect of one or more of such activities, states or territories shall not affect
its validity in respect of any of the other such activities, states or territories.
	 
	17.6	 	Nothing in clauses 17.1, 17.3, or 17.4 shall be construed as limiting or fettering the right
of any court of competent jurisdiction upon the application of any party in appropriate
proceedings from imposing upon the Employee a lesser restraint in circumstances where the
restraint sought to be imposed in clauses 17.1 or 17.3 is, in the opinion of such court,
excessive or unreasonable in the circumstances.

18. Termination of Employment

Termination at any time

	18.1	 	This Agreement is terminated immediately on the death or Total or Permanent Disability of
the Employee. For the purpose of this Agreement “Total or Permanent Disability” includes the
Employee being absent
from his employment by reason of sickness, ill health or other incapacity or disability for
a period of more than 3 months in excess of accrued sick leave in any period of 12
consecutive months.
	 
	18.2	 	At any time, this Agreement may be terminated forthwith by the Company in the event that the
Employee:

	 	(1)	 	is guilty of any criminal or indictable offence or of any dishonesty, whether
in relation to the affairs of the Company or any of the members of the Novogen Group
or not; or
	 
	 	(2)	 	is guilty of any serious breach of faith, or serious neglect or default or
wilful disregard of directions or serious professional misconduct or gross misconduct;
or
	 
	 	(3)	 	is in serious and fundamental breach of this Agreement and persists in such
breach after being previously directed in writing by the Company to remedy such breach
and fails to do so within 14 days of the giving of such direction, which direction
shall specifically draw the attention of the Employee to this clause 18.2 (3); or
	 
	 	(4)	 	if and for so long as he is a member of any board of directors of any body
corporate has his office vacated under the Corporations Act; or
	 
	 	(5)	 	a person whose person or estate is being dealt with under the law relating to
mental health; or
	 
	 	(6)	 	ceases to be registered or has his registration suspended for any reason
whatsoever under the provision of any legislation for the time being in force dealing
with the registration of persons providing services of the nature of those provided by
the Employee to the Company and which registration is required for the provision by
the Employee of those services.

Termination during Initial Term

	18.3	 	Except as provided in clauses 18.1 and 18.2, the Company may only terminate the employment
during the Initial Term by the Company making a payment equivalent to the Employee’s
Remuneration for the unexpired portion of the Initial Term.

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Termination after Initial Term

	18.4	 	After expiry of the Initial Term, the Company may terminate the employment in accordance with
clause 3.2.
	 
	18.5	 	After expiry of the Initial Term, the Employee may terminate the employment by resignation in
accordance with clause 3.2. If the Employee resigns pursuant to clause 3.2, the Company may
choose:

	 	(a)	 	to retain the services of the Employee during the notice period; or
	 
	 	(b)	 	not to retain the services of the Employee for some or all of the notice
period, and make a payment in lieu of notice for the part of the notice period for
which the Employee is not retained.

	18.6	 	A payment in lieu of notice made under clause 18.4 or 18.5, will be calculated on the basis
of the Employee’s Remuneration, and constitutes satisfaction of the Company’s obligations to
employ the Employee during the notice period.
	 
	18.7	 	For all or part of the Employee’s notice period under clauses 18.4 or 18.5, the Company may
direct the Employee:

	 	(a)	 	not to attend for work at the Company’s premises;
	 
	 	(b)	 	to attend for work at a different location to the Employee’s usual work
location;
	 
	 	(c)	 	to perform no work; or
	 
	 	(d)	 	to perform designated duties which are within the Employee’s skill and
competence, whether or not these duties form part of the Employee’s usual role;

	 	 	and all the Employee’s obligations under this Agreement will continue to apply during the
notice period.

Termination Payments

	18.8	 	Subject to clause 18.9, on termination by the Company under clauses 18.3 or 18.4, in addition
to any amount payable under those clauses by way of Remuneration or pay in lieu of notice, the
Company will pay to the Employee a termination payment equal to 18 months’ Remuneration.
	 
	18.9	 	The total amount payable under clauses 18.3, 18.4 and 18.8 will be:

	 	(a)	 	a minimum of 18 months’ Remuneration
	 
	 	(b)	 	a maximum of 3 years’ Remuneration.

19. Compliance with Obligations on Termination

	19.1	 	Termination of this Agreement for any reasons whatsoever does not relieve the Company from
payment in full of all sums then owing by the Company to the Employee by way of remuneration
accrued to the date of termination.
	 
	19.2	 	Termination of this Agreement for any reason whatsoever shall not relieve the Employee from
payment in full of all sums then owing to the Company or which may become owing in respect of
any period prior to termination and shall be without prejudice to the rights of the Company to
sue for antecedent breach by the Employee of the terms and conditions of this Agreement.

20. No Claim for Compensation on Termination

	20.1	 	In the event that this Agreement is terminated, the Employee has no claim against the
Company for compensation, damages or otherwise for or in respect of or by a reason of such
termination except as set out in this Agreement.

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21. Duty to Deliver Up

	21.1	 	Upon the termination of this Agreement and the employment of the Employee for any reason
whatsoever the Employee, on request from the Company must deliver up to the Company all
correspondence, documents, records, papers, prints, manuals, paper, disks, computer codes,
access codes, keys and property of any nature whatsoever belonging to the Company, or to any
member of the Novogen Group which may be in the possession or under custody or control of the
Employee. Any such request must not be made unreasonably.

22. Inventions, Works and other Intellectual Property

	22.1	 	The Employee assigns to the Company:

	 	(1)	 	all Inventions;
	 
	 	(2)	 	the entire copyright in all Works; and
	 
	 	(3)	 	all other Intellectual Property,

	 	 	created by the Employee in the course of his employment, or by any use of the Company’s
facilities, resources or Intellectual Property.
	 
	22.2	 	The assignment in clause 22.1 does not restrict the Employee’s right to utilise the general
expertise and knowledge accumulated by the Employee in the performance of the Services and the
Employee is entitled to use routine procedures developed by the Employee in the performance of
the Services, provided that the Employee must not exploit any Invention or make any
reproduction or substantial reproduction of any Works without the written consent of the
Company.
	 
	22.3	 	Where the Employee makes a Design arising out of the Services, the Design will be owned by
the Company or the member of the Novogen Group for whom it was made.
	 
	22.4	 	Where the Employee makes any patentable process or article, the Patent will be owned by the
Company or the member of the Novogen Group for whom it was made.

23. Future Copyright

	23.1	 	The Employee by this Agreement assigns to the Company the copyright that will subsist in
respect of any new Works, and the new Works will form part of the Works under this Agreement
and the terms and conditions of this Agreement will apply to those new Works.
	 
	23.2	 	The Employee must immediately provide the Company with copies of any new Works he prints,
publishes, makes or procures during the employment.

24. Further Assurances as to Intellectual Property

	24.1	 	The Employee must during and after the employment and at any time thereafter do all acts and
things and sign all documents as the Company may reasonably request to secure the ownership of
the Company or any member of the Novogen Group in any Inventions, Works, Designs or other
Intellectual Property.

25. Severability

	25.1	 	Each word, phrase, sentence, paragraph and clause (“provision”) of this Agreement is
severable.

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	25.2	 	If a Court determines that any provision of this Agreement is unenforceable, illegal or void
then it is severed and the other provisions of this Agreement remain operative unless without
the offending provision they are fundamentally different.

26. Waiver

	26.1	 	A party’s failure or delay to exercise a power or right does not operate as a waiver of that
power or right.
	 
	26.2	 	The exercise of power or right does not preclude either its exercise in the future or the
exercise of any other power or right.
	 
	26.3	 	No waiver is effective unless it is in writing.
	 
	26.4	 	The waiver of a power or right is effective only in respect of the specific instance to which
it relates and for the specific purpose for which it is given.

27. Entire Understanding

	27.1	 	This Agreement:
	 
	 	 	(1) contains the entire agreement and understanding between the parties on everything
connected with the subject matter of this Agreement; and
	 
	 	 	(2) supersedes and merges any prior agreement or understanding on anything connected
with that subject matter.
	 
	27.2	 	Each party has entered into this Agreement without relying on any representation by any other
party or any person purporting to represent that party.

28. Variation

	28.1	 	An amendment or variation to this Agreement is not effective unless it is in writing and
signed by both parties.

29. Further Assurance

	29.1	 	Each party must promptly at its own cost do all things (including executing all documents)
necessary or desirable to give full effect to this Agreement.

30. Dispute Resolution

	30.1	 	Unless a party has complied with clauses 30.2, 30.3 and 30.4, that party may not commence
court proceedings relating to any dispute under this Agreement, except where that party seeks
urgent interlocutory relief.
	 
	30.2	 	If there is a dispute under this Agreement the parties must negotiate in good faith to
resolve the dispute in a spirit of goodwill and compromise.
	 
	30.3	 	If there is a dispute under this Agreement that is not resolved in accordance with clause
30.2, either party may give written notice to the other party stating that it is a notice
under this clause and specifying the dispute.

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	30.4	 	If the dispute is not settled by agreement within 14 days after the notice referred to in
clause 30.3 is given, the parties must appoint a mediator and must seek in good faith to
settle the dispute through mediation. If the parties are unable to agree upon a mediator
within 14 days after the expiration of the initial 14 days referred to in this clause 30.4,
the mediator must be a person nominated by the President of the Law Society of New South Wales
or his or her delegate, and either party may request the nomination at any time after the
expiration of the second 14 days referred to in this clause.

31. Notices

	31.1	 	A notice or other communication required or permitted to be given by a party to another will
be in writing and;

	 	(1)	 	delivered; or
	 	 
	 	(2)	 	sent by postage prepaid to that party’s address set out in this
Agreement or as               notified to each party at any time.

	31.2	 	A notice or other communication is deemed given and received if:

	 	(1)	 	delivered, upon delivery; or
	 
	 	(2)	 	mailed, on the expiration of 2 Business Days (at the place of mailing) after mailing.

32. Governing Law and Jurisdiction

	32.1	 	The law of New South Wales governs this Agreement.
	 
	32.2	 	The parties submit to the non-exclusive jurisdiction of the courts of New South Wales and the
Federal Court of Australia.

243

 

SCHEDULE

	 	 	 	 	 	 	 	 	 
	Item 1.	 	Commencement Date
	 
	 	 	 	 	 	 	 	 
	 	 	The date of this Agreement as first written on the first page.
	 
	 	 	 	 	 	 	 	 
	Item 2.	 	Initial Term
	 
	 	 	 	 	 	 	 	 
	 	 	Three years.
	 
	 	 	 	 	 	 	 	 
	Item 3.	 	Notice Period
	 
	 	 	 	 	 	 	 	 
	 	 	Six months.
	 
	 	 	 	 	 	 	 	 
	Item 4.	 	Position
	 
	 	 	 	 	 	 	 	 
	 	 	 	(1	)	 	Company Secretary of the Novogen Group
	 
	 	 	 	 	 	 	 	 
	 	 	 	(2	)	 	with responsibilities for:
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(a) all Company Secretarial matters for the Novogen Group of Companies
including Company Secretarial support to the Company Secretary of Marshall
Edwards Inc and Marshall Edwards Pty Ltd;
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(b)
	 	Trade Marks and copy write;
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(c)
	 	treasury;
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(d)
	 	Insurance;
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(e)
	 	Information Technology;
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(e)
	 	legal and financial duties delegated from the Managing Director;
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(f)
	 	represent the Company in its best interests; and
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(g)	 	provide recommendations to the Executive and the Board for any
of these matters for the Company.
	 
	 	 	 	 	 	 	 	 
	Item 5.	 	Location
	 
	 	 	 	 	 	 	 	 
	 	 	140 Wicks Road, North Ryde, 2113, New South Wales or such
other place within the Metropolitan Sydney area as is
designated from time to time by the Board of Directors.
	 
	 	 	 	 	 	 	 	 
	Item 6.	 	Accrued Annual Leave
	 
	 	 	 	 	 	 	 	 
	 	 	As accrued from 30 August, 1994
	 
	 	 	 	 	 	 	 	 
	Item 7.	 	Accrued Sick Leave
	 
	 	 	As accrued from 30 August, 1994

244

 

	 	 	 	 	 	 	 	 	 
	Item 8.	 	Long Service Leave
	 
	 	 	 	 	 	 	 	 
	 	 	As accrued from 30 August, 1994
	 	 
	Item 9.	 	Remuneration
	 
	 	 	 	 	 	 	 	 
	 	 	$203,779 or such other amount as agreed to from time to time.
	 
	 	 	 	 	 	 	 	 
	Item 10.	 	Restraint Period
	 
	 	 	 	 	 	 	 	 
	 	 	5 years
	 
	 	 	 	 	 	 	 	 
	Item 11.	 	The Managing Director.

245

 

EXECUTED as an agreement on the date set out at the commencement of this Agreement.

	 	 	 	 	 	 	 	 	 	 	 
	THE COMMON SEAL OF

	 	 	)	 	 	 	 	 	 	 
	NOVOGEN LABORATORIES PTY LTD

	 	 	)	 	 	 	 	 	 	 
	was affixed in accordance with its

	 	 	)	 	 	 	 	 	 	 
	Articles of Association in the presence of:

	 	 	)	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

Director/Secretary

	 	 	 	 	 	 	 	 

Director
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

Name of Director/Secretary (BLOCK LETTERS)

	 	 	 	 	 	 	 	 

Name of Director (BLOCK LETTERS)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Director
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Name of Director (BLOCK LETTERS)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	SIGNED by:

	 	 	)	 	 	 	 	 	 	 
	Ronald Lea Erratt

	 	 	)	 	 	 	 	 	 	 
	in the presence of:

	 	 	)	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

Signature of Witness

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

Name of Witness (BLOCK LETTERS)

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

Address of Witness

	 	 	 	 	 	 	 	 	 	 

246exv10w1

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

     Employment Agreement (this “Agreement”) dated as of October 12, 2006 (the “Effective Date”),
by and between Internap Network Services Corporation (the “Company”) and Christopher Dion
(“Executive”) (collectively the “Parties”). This agreement becomes effective upon the closing of
the merger (the “Merger”) contemplated by that certain Agreement and Plan of Merger, dated as of
October 12, 2006, by and among the Company, Ivy Acquisition Corp., and VitalStream Holdings, Inc.
(the “Merger Agreement”). This Agreement shall be null and void upon the termination of the Merger
Agreement.

     1. Position and Duties. Executive shall serve as Vice President for the Company, with such
duties, authorities and responsibilities as are commensurate with such position. Executive shall
work from the Company’s offices in Irvine, California.

     2. Base Salary. Executive shall receive an annual base salary of $180,000 (“Base Salary”).
Payment of Base Salary shall be subject to standard payroll tax withholdings and deductions.
Executive’s Base Salary shall be paid semi-monthly in accordance with the Company’s standard
payroll practices. Executive’s Base Salary may be increased or decreased from time to time by the
Company’s Chief Executive Officer (“CEO”) and in consultation with the Company’s Board of Directors
or the Compensation Committee of such Board of Directors (in either case, the “Board”) in their
sole discretion.

     3. Performance-Based Bonus. You will be eligible to participate in the Internap’s annual
incentive plan as in effect for any calendar year during the Term (“Incentive Plan”), which is
based on the achievement of company goals established by senior management and approved by the
Board of Directors, as well as your individual performance. Your initial bonus opportunity under
the Incentive Plan will be up to 37% of your annual base salary, subject to the terms of the
Incentive Plan and pro-rated for the length of your employment by Internap as a portion of the full
fiscal year.

     4. Equity Compensation. The Company and Executive acknowledge that the CEO shall recommend to
the Board that the Company issue to Executive one or more options to purchase 30,000 shares of the
Company’s common stock, subject to the determination of the Board in its sole discretion and to the
terms and conditions of the relevant option plan(s) and related stock option agreement(s) (the
“Options”).

     5. Employee Benefits. Executive shall be entitled to participate in all employee benefit,
welfare and other plans and programs generally applicable to employees of the Company. Except as
provided herein, the Company reserves the right to modify Executive’s compensation and benefits
from time to time, as it deems necessary

     6. Vacation. Executive shall accrue twenty (20) days of combined vacation/sick leave annually.
Executive also shall receive three (3) personal days each

 

 

year. Executive shall have the right to
carry over unused vacation from any one-year period to any other subsequent one-year period.

     7. Nature of Employment. Executive’s employment with the Company shall be at-will. Both
Executive and the Company shall have the right to terminate the employment relationship at any
time, with or without cause, and with or without advance notice.

     8. Severance Payments. Upon Executive’s involuntary termination by the Company of employment
without Cause (as defined below), Executive shall receive a cash severance payment equal to the
product of (x) the number of days that Executive is am employee of the Company, divided by 365
(provided that the foregoing ratio shall never exceed one (1) and (y) one-half of Executive’s
then-current Base Salary. Payment of such severance amounts shall be subject to standard payroll
tax withholdings and deductions. In addition to the severance benefits provided above, upon
Executive’s involuntary termination of employment without Cause, all of Executive’s unvested
Options shall lapse and expire, and all of Executive’s vested Options shall remain exercisable no
later than three months after the date of termination. No payment or acceleration of Options shall
be made pursuant to this Section 8 unless prior to or concurrent with such payment a valid release
has been executed and delivered by Executive and becomes effective in accordance with Section 11
hereof. Notwithstanding the immediately preceding sentence, Executive shall not be entitled to any
benefits or rights under this Section 8 if Executive also is eligible for payments and/or benefits
under Section 9 hereof.

     9. Change in Control Payments and Acceleration. Upon Executive’s involuntary termination of
employment without Cause (as defined below) or voluntary termination of employment for Good Reason,
in either case within 12 months after a Change in Control, (i) the Company shall pay Executive a
cash severance payment equal to the sum of one-half of Executive’s then-current Base Salary and
maximum target Bonus and (ii) all of Executive’s unvested Options shall become vested, free of
restrictions and immediately exercisable for the remaining term of the relevant grant or award.

     Payment of such severance payments shall be subject to standard payroll tax withholdings and
deductions.

     No payment or acceleration of Options shall be made unless prior to or concurrent with such
payment a valid release has been executed and delivered by Executive and becomes effective in
accordance with Section 11 hereof.

     Executive will continue to receive the healthcare and life insurance coverages in effect on
his date of termination for twenty-four (24) months after the date of termination pursuant to this
Section 9 just as if he had remained an active employee of the Company, subject to Executive paying
the customary employee portion of such coverages, provided that if the Company cannot continue to
cover Executive under its plans, the Company

 

 

will separately provide Executive with comparable
coverages or pay Executive in a lump sum the costs of such coverages.

     For purposes of this Agreement, “Change in Control” shall mean the happening of any of the
following events:

(i) An acquisition by any individual, entity or group (within the meaning of Section 13 (d)
(3) or 14 (d) (2) of the Exchange Act) (an “Entity”) of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either (A) the
then outstanding shares of common stock of the Company (the “Outstanding Company Common
Stock”) or (B) the combined voting power of the then outstanding voting securities of the
Company entitled to vote generally in the election of directors (the “Outstanding Company
Voting Securities”); excluding, however, the following: (1) any acquisition directly from
the Company, other than an acquisition by virtue of the exercise of a conversion privilege
unless the security being so converted was itself acquired directly from the Company, (2)
any acquisition by the Company, (3) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any corporation controlled by the Company,
or (4) any acquisition by any corporation pursuant to a transaction which complies with
clauses (A), (B) and (C) of subsection (iii) of this Section; (ii) A change in the
composition of the Board such that the individuals who, as of the Effective Date, constitute
the Board (such Board shall be hereinafter referred to as the “Incumbent Board”), cease for
any reason to constitute at least a majority of the Board; provided, however, that for
purposes of this definition, any individual who becomes a member of the Board subsequent to
the Effective Date, whose election, or nomination for election, by the Company’s
stockholders was approved by a vote of at least a majority of those individuals who are
members of the Board and who were also members of the Incumbent Board (or deemed to be such
pursuant to this proviso), shall be considered as though such individual were a member of
the Incumbent Board; and provided, further however, that any such individual whose initial
assumption of office occurs as a result of or in connection with either an actual or
threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A
promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or
consents by or on behalf of an Entity other than the Board shall not be so considered as a
member of the Incumbent Board;

(iii) The approval by the stockholders of the Company of a merger, reorganization or
consolidation or sale or other disposition of all or substantially all of the assets of the
Company (each, a “Corporate Transaction”) or, if consummation of such Corporate Transaction
is subject, at the time of such approval by stockholders, to the consent of any government
or governmental agency, the obtaining of such consent (either explicitly or implicitly by
consummation); excluding however, such a Corporate Transaction pursuant to which (A) all or
substantially all of the individuals and entities who are the beneficial owners,
respectively, of the Outstanding Company Common Stock and Outstanding Company Voting

 

 

Securities immediately prior to such Corporate Transaction will beneficially own, directly
or indirectly, more than 60% of, respectively, the outstanding shares of common stock, and
the combined voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation resulting
from such Corporate Transaction (including, without limitation, a corporation or other
Person which as a result of such transaction owns the Company or all or substantially all of
the Company’s assets either directly or through one or more subsidiaries (a “Parent
Company”)) in substantially the same proportions as their ownership, immediately prior to
such Corporate Transaction, of the Outstanding
Company Common Stock and Outstanding Company Voting Securities, as the case may be, (B) no
Entity (other than the Company, any employee benefit plan (or related trust) of the Company,
such corporation resulting from such Corporate Transaction or, if reference was made to
equity ownership of any Parent Company for purposes of determining whether clause (A) above
is satisfied in connection with the applicable Corporate Transaction, such Parent Company)
will beneficially own, directly or indirectly, 50% or more of, respectively, the outstanding
shares of common stock of the corporation resulting from such Corporate Transaction or the
combined voting power of the outstanding voting securities of such corporation entitled to
vote generally in the election of directors unless such ownership resulted solely from
ownership of securities of the Company prior to the Corporate Transaction, and (C)
individuals who were members of the Incumbent Board will immediately after the consummation
of the Corporate Transaction constitute at least a majority of the members of the board of
directors of the corporation resulting from such Corporate Transaction (or, if reference was
made to equity ownership of any Parent Company for purposes of determining whether clause
(A) above is satisfied in connection with the applicable Corporate Transaction, of the
Parent Company); or

(iv) The approval by the stockholders of the Company of a complete liquidation or
dissolution of the Company.

For purposes of this Agreement, “Cause” shall mean:

(i) Executive’s conviction (including a plea of guilty or nolo contendere) of a crime
involving theft, fraud, dishonesty or moral turpitude;

(ii) violation by Executive of the Company’s Code of Conduct or other material policies;

(iii) gross omission or gross dereliction of any statutory, common law or other duty of
loyalty to the company or any of its affiliates; or

(iv) repeated failure to carry out the duties of Executive’s position despite specific
instructions to do so.

 

 

     Executive shall not be deemed to have been terminated for “Cause” until there shall have been
delivered to him written notice, not less than ten (10) days prior to the proposed termination
date, specifying the basis for such termination.

     For purposes of this Agreement, Good Reason shall mean any one of the following events which
occurs without Executive’s written consent: (i) any significant diminution in Executive’s title,
authority or responsibility; (ii) any significant reduction in Executive’s then current total
compensation from that compensation paid by the Company in the prior fiscal year or calendar year;
or (iii) a change of more than fifty (50) miles from Executive’s permanent workplace without
Executive’s consent.

     10. Parachute Payments. If any cash compensation payment, employee benefits or acceleration
of vesting of stock options or other stock awards Executive would receive in connection with a
Change in Control (“Payment”) would (i) constitute a “parachute payment” within the meaning of
Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) but for this
sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then
such Payment shall be equal to the Reduced Amount. The “Reduced Amount” shall be either (x) the
largest portion of the Payment that would result in no portion of the Payment being subject to the
Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever
amount, after taking into account all applicable federal, state and local employment taxes, income
taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in
Executive’s receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding
that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in
payments or benefits constituting “parachute payments” is necessary so that the Payment equals the
Reduced Amount, reduction shall occur in the following order unless Executive elects in writing a
different order: reduction of cash payments; reduction of employee benefits; and cancellation of
accelerated vesting of stock awards. In the event that acceleration of vesting of stock award
compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order
of the date of grant of Executive’s stock awards unless Executive elects in writing a different
order for cancellation. The accounting firm engaged by the Company for general audit purposes as of
the day prior to the effective date of the Change in Control shall perform the foregoing
calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor
for the individual, entity or group effecting the Change in Control, the Company shall appoint a
nationally recognized accounting firm to make the determinations required hereunder. The Company
shall bear all expenses with respect to the determinations by such accounting firm required to be
made hereunder. The accounting firm engaged to make the determinations hereunder shall provide its
calculations, together with detailed supporting documentation, to the Company and Executive within
fifteen (15) calendar days after the date on which Executive’s right to a Payment arises (if
requested at that time by the Company or Executive) or at such other time as requested by the
Company or Executive. If the accounting firm determines that no Excise Tax is payable with respect
to a Payment, either before or after the application of the Reduced Amount, it shall furnish the
Company and Executive with an opinion reasonably acceptable to Executive that no

 

 

Excise Tax will be
imposed with respect to such Payment. Any good faith determination of the accounting firm made
hereunder shall be final, binding and conclusive upon the Company and Executive.

     11. Release. Upon termination of Executive’s employment, unless Executive shall have executed
and provided the Company with an effective release in a form reasonably satisfactory to the
Company, Executive shall not receive any severance payments or benefits provided under this
Agreement.

     12. Confidentiality. Executive agrees that information not generally known to the public to
which he will be exposed as a result of his employment by the Company is confidential information
that belongs to the Company. This includes information developed by Executive, alone or with
others, or entrusted to the Company by its customers or others. The Company’s confidential
information includes, without limitation, information relating to the Company’s
trade secrets, research and development, inventions, know-how, software, procedures,
accounting, marketing, sales, creative and marketing strategies, employee salaries and
compensation, and the identities of customers and active prospects to the extent not publicly
disclosed (collectively, “Confidential Information”). Executive will hold the Company’s
Confidential Information in strict confidence, and not disclose or use it except as authorized by
the Company and for the Company’s benefit.

     Executive further acknowledges and agrees that in order to enable the Company to perform
services for its customers or clients, such customers or clients may furnish to the Company certain
Confidential Information, that the goodwill afforded to the Company depends upon the Company and
its employees preserving the confidentiality of such information, and that such information shall
be treated as Confidential Information of the Company for all purposes under this Agreement.

     14. No Restrictions. Executive represents to the Company that he has not executed or is not
bound by any non-competition covenant or non-solicitation covenant or any other undertaking similar
to either of the foregoing that would prevent him from performing the duties and responsibilities
of the position set forth in Section 1 of this Agreement.

     15. General Provisions. This Agreement is intended to bind and inure to the benefit of and be
enforceable by Executive, the Company and their respective successors, assigns, heirs, executors,
administrators, except that Executive may not assign any of his duties hereunder and Executive may
not assign any of his rights hereunder without the written consent of the Company, which shall not
be withheld unreasonably.

     This Agreement, together with the Exhibits, constitutes the complete, final and exclusive
embodiment of the entire agreement between the Parties with regard to the subject matter hereof. It
is entered into without reliance on any promise or representation, written or oral, other than
those expressly contained herein, and it supersedes any other such promises or representations.

 

 

     This Agreement shall be governed by and construed in accordance with the laws of the State of
California, without reference to principles of conflict of laws. The captions of this Agreement are
not part of the provisions hereof and shall have no force or effect. This Agreement may not be
amended or modified otherwise than by a written agreement executed by the Parties hereto or their
respective successors and legal representatives. The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of any other provision
of this Agreement. Any invalid or unenforceable provision shall be modified so as to be rendered
valid and enforceable in a manner consistent with the intent of the Parties insofar as possible.

     A failure of Executive or the Company to insist upon strict compliance with any provision of
this Agreement or the failure to assert any right Executive or the Company may have hereunder shall
not be deemed to be a waiver of such provision or right or any other provision or right of this
Agreement.

     From and after the Effective Date, this Agreement shall supersede any employment, severance,
change of control or other agreement, whether oral or written, between the Parties with respect to
the subject matter hereof (other than arrangements effected under compensation plans generally
applicable to other senior executive officers of the Company).

     This Agreement may be executed in several counterparts, each of which shall be deemed to be an
original but all of which together will constitute one and the same instrument.

     Executive hereby agrees to execute the Affiliate Agreement attached as Exhibit A to the Merger
Agreement, in the form applicable to him.

 

 

     IN WITNESS WHEREOF, the Parties have executed this Agreement effective as of the day and year
first above written.

	 	 	 	 	 	 	 	 	 
	INTERNAP NETWORK SERVICES CORPORATION	 	 	 	CHRISTOPHER DION
	 
	 	 	 	 	 	 	 	 
	By: 

Name:

	 	/s/ David A. Buckel
 

David A. Buckel
	 	 	 	/s/ Chris Dion
 

	 	 
	Title:

	 	Chief Financial Officer

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