Document:

rrd123279_14614.html

STRICTLY PRIVATE & CONFIDENTIAL

3 July 2006

Mr Michael Black
[address removed]

Dear Michael,
On behalf of Cambridge Display Technology Ltd. ("CDT"), I am pleased to offer you the position of Vice-President, Finance.  CDT will provide a salary of GBP 106,000 per annum paid monthly.  In addition, you will be eligible to participate in CDT's bonus scheme, which is payable up to a maximum of 35% of your annual salary and is awarded against achievement of agreed performance targets.  The effective date of this contract is 3 July 2006.
You will be eligible to participate in the benefits program (including private health insurance, pension plan and life assurance) established at CDT. 
By accepting this offer you confirm that: 
(a) you are not subject to restrictions or other obligations relating to the nature or scope of your employment with another employer; and 
(b) by your performance of your duties as contemplated by this letter you will not knowingly violate the terms or conditions of any prior employment agreements you may have executed; and  
(c) you are currently in good health and will pass any medical examinations necessary for the establishment of your benefits package.
This offer is comprised of this letter and the attached statement of the main terms and conditions of employment.  No prior promises, representations or understandings relative to any terms or conditions of your employment are to be considered as part of this agreement unless expressed in writing in this offer package. This offer is subject to you being legally able to live and work in the United Kingdom.

If you accept the offer of employment, I should be grateful if you would return to me one copy of the offer letter and a copy of the statement of the main terms and conditions of employment signed by yourself.  A copy is also enclosed for your records.
If you have any queries regarding the offer we have made to you please do not hesitate to contact me to discuss these queries. 
Yours sincerely,
/s/ Emma Jones
Emma Jones
VP, Human Resources & Facilities

I agree to the above         Signed:        /s/ Michael Black        
                         Michael Black
        Dated:         3 July 2006        

        
STATEMENT OF MAIN TERMS AND CONDITIONS OF EMPLOYMENT
This Agreement is made on the 3 July 2006.
Between:
(1) Cambridge Display Technology Limited (company number 2672530) whose registered office is at Building 2020, Cambourne Business Park, Cambridgeshire, CB3 6DW ("CDT" and/or "the Company"); and
(2) Michael Black of [address removed] ("You"and/or "Your").
It is agreed that the following is a statement of the main terms and conditions applying to your employment with CDT, including all particulars required to be given to you in writing under the Employment Rights Act 1996.  This statement together with your offer letter, and the stipulated provisions of the relevant employment policies, constitutes your contract of employment
DATE OF COMMENCEMENT OF EMPLOYMENT 
Your continuous employment with CDT dates from 24 June 2002.
Your employment with any previous employer does not count as part of your continuous period of employment.
MAIN PLACE OF WORK    
Your main place of work will be the CDT office Cambourne, or such other location within the United Kingdom as CDT reasonably requires.
You may on occasion be required to work at other locations in the United Kingdom, including, but not limited to, Cambridge and Godmanchester. 
The nature of your appointment may require you to travel inside and outside the UK on company business, as required for the performance of your duties.  There is no current requirement for you to work outside the United Kingdom for any consecutive period in excess of one month.
JOB TITLE 
You are employed as a Vice-President, Finance.
Your job title is not regarded as exclusive or exhaustive.  There will be other duties and requirements associated with your position that are within your capabilities and which you may be required to undertake.
1. REMUNERATION
Your annual salary is GBP 106,000.  Any changes to your annual salary will be notified to you in writing. You will be paid monthly in arrears on the 28th day of each month by direct credit transfer to your UK bank account.  Where the 28th day falls on a weekend or a bank holiday, you will be paid on the preceding working day.  
You will be provided with an itemised pay statement.

2. OTHER BENEFITS
You will be eligible to participate in the CDT benefits program that will include:
2.1. Private Health Insurance
2.2. Life Assurance
2.3. Pension Plan
2.4. Bonus Scheme
3. HOURS OF WORK
Your normal starting time is 9.00 a.m. and your normal finishing time is 5.30 p.m. Monday to Friday with an unpaid lunch break of one hour each day.  You are required to work at such other times as CDT may reasonably require and as may be necessary for the proper performance of your duties.  As a salaried employee overtime is not payable.
       
4. HOLIDAYS AND HOLIDAY PAY
Your annual paid holiday entitlement is 27 working days in any complete calendar year of employment, which accrues on a pro-rata basis for each completed month of employment.  The holiday year at CDT runs from 1 January to 31 December.
Should you be absent for more than 4 weeks for any reasons, CDT reserves the right to suspend accrual of any holiday in excess of the minimum 4 weeks conferred by the Working Time Regulations (where applicable, this clause will not apply to the Ordinary Maternity Leave period).
Further details of the holiday policy can be obtained from your Line Manager.
Bank and Public Holidays
In addition to annual holidays, you are entitled to paid holiday on all English statutory public holidays and any additional holidays as awarded by CDT.
5. SICK PAY SCHEME
5.1. Any absence due to sickness or injury must be notified to your designated Line Manager as soon as possible together with an estimate of the period of absence envisaged.  Any change in the estimated period of absence must be notified as soon as possible.
5.2. In the event of you being absent for more than 7 days (inclusive of weekends), medical evidence must be produced in the form of a statement of reasons for absence completed by a qualified medical practitioner and sent to your Line Manager.
5.3. Any payments made in addition to Statutory Sick Pay are entirely at the discretion of CDT and will not create a precedent either for CDT or for the individual. 
6. PENSION SCHEME
CDT provides access to a Group Stakeholder Pension Plan for all employees.  CDT will contribute 5% of your pensionable salary to this plan provided that you also contribute a minimum of 5% of your pensionable salary.  You can choose to pay less than 5% of your pensionable salary into the plan if you wish, however you will not then receive a contribution from CDT.
You can also elect to contribute more than 5% of your salary to this plan (subject to legislative maximums) however CDT will not match any payments above 5%.
Details of this scheme will be provided to you on request.
7. MATERNITY / PATERNITY PROVISIONS
CDT's Maternity or Paternity policy and procedure can be obtained from your Line Manager, where applicable.
8. PARENTAL LEAVE 
CDT's Parental Leave policy and procedure can be obtained from your Line Manager.
9. EMERGENCY DOMESTIC LEAVE
CDT's Emergency Domestic Leave policy can be obtained from your Line Manager.
10. GRIEVANCES
If you have any grievance in relation to your employment you should outline your grievance in writing to your Line Manager.  The further steps that will follow this application are set out in the Company's grievance procedure, a copy of which is available from your Line Manager.
11. DISCIPLINARY PROCEDURES
You are subject to the Company's disciplinary and dismissal procedure, a copy of which is available from your Line Manager.  Application of the procedure is discretionary and is not a contractual entitlement.  If you are dissatisfied with any disciplinary decision relating to you or any decision to dismiss you should outline this in writing to your Line Manager.
12. TERMINATION OF EMPLOYMENT
The length of notice you are required to give and entitled to receive to terminate your employment shall be 12 months'.  Notice given by either party shall not be effective until given in writing. CDT may at its option pay you a lump sum in lieu of your notice period.
CDT has the right to dismiss you without notice or pay in lieu of notice in the case of gross misconduct.
CDT shall have the right during the period of notice or any part thereof, to place you on leave, paying you during this period your normal salary and benefits.
Your employment with CDT will automatically terminate when you reach the normal retirement age for CDT's employees, which is currently 60 years of age.  You will be notified of any change in CDT's retirement age.

13. GARDEN LEAVE
CDT reserves the right to require you to remain at home on garden leave during any notice period and remain available to attend the workplace if required.  During any notice you may not be engaged in any capacity with another company without written permission.
14. OUTSIDE INTERESTS
14.1. You agree not to be, without the prior approval of the Board, directly or indirectly employed, engaged, concerned or interested in any other business which 
14.1.1 is wholly or partly in competition with the business of CDT  or that of any "Group Company" (which shall include CDT and any holding company, subsidiary or subsidiary of a holding company of CDT, the terms "holding company" and "subsidiary" having the meanings given to them in section 736 Companies Act 1985); or
14.1.2 we consider requires or might reasonably require you to disclose or make use of Confidential Information in order to properly discharge your duties to or further your interest in that business; or
14.1.3 we consider impairs or might reasonably be thought to impair your ability to act in the best interests of our business or that of any Group Company;
PROVIDED THAT you may be interested in any such business, for investment purposes only, as the holder (directly or through nominees) of any units of any authorised unit trust and/or up to 5% of the issued shares, debentures or other securities of any class of any company which is listed on a Recognised Investment Exchange as defined in Section 207 Financial Service Act. 
14.2. You must not without the prior approval of the Board (which will not be refused unreasonably) accept any employment, engagement or office (whether paid or unpaid) with or in any person, firm, company or other organisation outside of any Group Company.
14.3. You must not at any time (whether during or outside normal working hours) take any preparatory steps to become engaged or interested in any capacity whatsoever in any business or venture which is in or is intended to enter into competition with our business or that of any Group Company.
15. CONFIDENTIALITY AND PROTECTION OF BUSINESS
You will in the course of your employment learn trade secrets and confidential or commercially sensitive information (including but not limited to methods, processes, device structures, techniques, shop practices, equipment, research data, opportunities for business marketing and sales information, strategies and pricing, personnel data, customer lists, potential customers, financial data, plans and all other know-how and trade secrets) which is in our possession or that of any Group Company or in respect of which CDT owes a duty of confidentiality to a third party, and which has not been published or disclosed to the general public ("Confidential Information"). You will also deal with our customers, corporate and academic collaborators and those of any Group Company and you agree that you will not: -

15.1. during your employment (save as required for the proper performance of your duties or as duly authorised by us in writing) and at any time after its termination, directly or indirectly use or disclose any Confidential Information. 
15.2. during your employment and for six months after its termination, directly or indirectly and whether on your own behalf or on behalf of any other person, firm, company or other body, solicit or entice away or seek to entice away any person who is or was at the date of termination of your employment or during the period of six months preceding the date of termination, employed or engaged by our business or any Group Company in a managerial, research and development, or sales and marketing post and was a person with whom you have dealt during the course of your employment or who by reason of their employment or engagement is likely to have knowledge of any trade secrets or Confidential Information; 
15.3. for six months after the termination of your employment carry on your own account or as a partner or be engaged as an employee, officer, consultant or adviser in any other business which is in competition with our business or that of any Group Company with which you have been concerned or engaged to any material extent, for whom you provided services or from whom you had access to Confidential Information during the six months preceding the date of termination (particularly, but without limitation, through commercialising electroluminescent polymers and dendrimer technology) and which we consider requires or might reasonably be thought to require you to disclose or make use of any Confidential Information in order properly to discharge your duties to or to further your interest in that business or venture;        
15.4. for a period of six months following the termination of your employment whether on your own account or with, through, for or on behalf of any other person, firm, company or organisation, directly or indirectly canvas or solicit or procure to be canvassed or solicited in competition with us or any Group Company for whom you provided services or from whom you had access to Confidential Information the custom of any person, firm, company or organisation whom or which was at any time during the six months prior to the termination of your employment a Customer of ours or any Group Company and with whom or which you dealt or of whom or of which you have knowledge by virtue of your employment with us during that period.
15.5. during the period of six months following the termination of your employment whether on your own account or with, through, for or on behalf of any other person, firm, company or organisation, directly or indirectly deal with or attempt to deal with in competition with us or any Group Company for whom you provided services or from whom you had access to Confidential Information any person, firm, company or organisation whom or which was at any time during the six months prior to the termination of your employment a Customer of ours or of any  Group Company and with whom or which you dealt or of whom or of which you have knowledge by virtue of your employment with us during that period.
16. INTELLECTUAL PROPERTY
16.1. If at any time during your employment you conceive, originate, improve, develop, discover or invent (either alone or in conjunction with any person or persons) any products, services, designs, processes, systems or inventions (including but not limited to any and all computer programs, photographs, plans, records, drawings, models, any know-how technique, process, improvement, invention or discovery), which could relate directly or indirectly to our business or that of any Group Company you will immediately disclose to us full details of the same in writing and you shall not disclose the same (or any proposals we 
communicate to you) to any third party without our prior written consent.  You agree that we shall own all documents, drawings, models, samples, prototypes and the like prepared by you and which relate to such rights.  
16.2. It is our common intention that all intellectual property and proprietary rights of whatever nature (including (without limitation) inventions, patents, know-how, technical information, copyright, registered design right or unregistered designs or similar rights as well as the right to apply for registered protection for any such rights) arising in the course of or as a result of work done by you during your employment shall belong to us as absolute owner.  To the extent that these do not automatically vest in us, you will hold them on trust for us and will take all such steps as we shall direct (whether during your employment hereunder or thereafter) at our expense to sign such documents as are necessary to vest them in us in accordance with the above intention
16.3. You hereby assign (in so far as title does not automatically vest in us as a consequence of your employment) to us by way of future assignment all copyright, designs and other proprietary rights, if any, which may be so assigned for the full term thereof throughout the world in respect of all works (within the meaning of Section 1(1) of the Copyright, Designs and Patents Act 1988 or such other legislation as shall hereafter be enacted containing any like definition or provisions) authored, drawn, written, originated, conceived or otherwise made by you either alone or jointly with any other person or persons during the period of your employment hereunder or pertaining to such subject matter as form part of your duties hereunder.  You waive all moral rights conferred on you by Chapter IV, Part I, Copyright Designs and Patents Act 1988 and any other moral rights provided for under the laws now or in future in force in any part of the world arising from any such works.
16.4. You shall if and whenever required so to do by us at our expense apply or join with us in applying for letters patent, utility model, registered design or other protection in any part of the world for any such intellectual property and shall, at our expense, execute or do, or procure to be executed or done, all instruments and things necessary for vesting such intellectual property and all such rights, titles and interest to and in the same in us or in such other person as we may direct or require and we shall (and shall procure that any such other person shall) hold the same and all such right, title and interest to and in the same upon trust for ourselves and (to the extent that it is entitled thereto by Section 39 of the Patents Act 1977 or such other legislation as shall hereafter be enacted containing like provisions) you according to our and your respective interests.
16.5. For the purposes of this clause you hereby irrevocably appoint us, as your attorney in your name and on your behalf to execute any documents and/or do any and all things which are necessary or desirable for us to give effect to the provisions of this clause and we are hereby empowered to appoint and remove in our sole discretion any person as agent and substitute for and on behalf of us in respect of all or any of the matters aforesaid provided always that we shall notify you of each such action in writing.
17. DATA PROTECTION
You understand and agree that CDT is permitted to hold personal information about you as part of its personnel and other business records and may use such information in the course of CDT's business.  You agree that CDT may disclose such information to third parties, in the event that such disclosure is, in CDT's view, required for the proper conduct of CDT's business.  This clause applies to information held, used or disclosed in any medium.

18. PUBLIC RELATIONS
You agree that you will not either during your employment or at any time after termination of your employment make any statement or give any interview to the news media or submit a letter, learned paper or article for publication about your work for us, about us or about any Group Company or any third party involved with our business, or otherwise without the prior written approval of the Chief Executive or in his absence his deputy. You must promptly inform a director of any requests for statements, interviews, learned papers or articles you receive.
You agree that after the termination of your employment you will not be held out or represented by you or any other person, firm, company or other body, as being in any way connected with or interested in our business or that of any Group Company.
                
19. HEALTH & SAFETY
You have a duty to take care for your own health and safety and that of other members of staff. You agree to observe our Safety Rules for the time being and to comply with our Health & Safety policies for the time being including those concerning eating, drinking, applying cosmetics and smoking cigarettes or tobacco on our premises.
20. COMPANY PROPERTY
All books, documents, lists, files, data, accounts and records whether or not made by you and whether stored in human readable or machine readable form which may come into your possession during your employment respecting our business or affairs or those of any Group Company or any third party involved with our business (including notes, minutes, memoranda, correspondence and copies of documents made by you in the course of your employment) will belong to us and these and all our other property and documents in your possession, custody, power or control must be returned to us immediately on the termination of your employment.
21. OBLIGATIONS UPON TERMINATION OF EMPLOYMENT
On the termination of your employment hereunder you will:
21.1. forthwith tender your resignation from any office you held with us or any Group Company offices you then hold (without payment or agreement of compensation therefore) and you hereby irrevocably authorise the Company Secretary for the time being on your behalf to sign any documents and do any things necessary or requisite to give effect thereto;
21.2. deliver up to us all correspondence drawings documents and other papers and all other property belonging to us or any Group Company or any third party involved with our business which may be in your possession or control (including such as may have been made or prepared by or have come into your possession or in the course of employment which relate in any way to our business or affairs or those of the Group Company or any third party involved with our business or any suppliers agents distributors or customers) and you must not without our written consent retain any copies thereof;
21.3. if so requested send to the Company Secretary a signed statement confirming that you have complied with a sub-clause 21.1 and 21.2 thereof;
21.4. not at any time represent that you are still connected with us or any Group Company; and 

21.5. forthwith discharge all your outstanding obligations to us, whether monetary (e.g. reimbursement of advances) or otherwise, incurred during, by virtue of or in connection with your employment, and agree that without prejudice CDT may withhold payment of any money or delivery of other things due to you by virtue of your employment, whether before or after termination, until you have fully discharged all such obligations to us.
22. COLLECTIVE AGREEMENT
22.1. There are no collective agreements, which affect the terms and conditions of your employment.
23. THIRD PARTY RIGHTS 
23.1. Unless expressly provided in clause 23.2 below, no term of this Statement is enforceable pursuant to the Contracts (Rights of Third Parties) Act 1999 by any person who is not a party to it.
23.2. Subject to the Contract (Rights of Third Parties) Act 1999 and to the provisions of this Statement, clauses 14, 15, 16, 18, 20 and 21 may be enforced by any officer, employee or agent of the Company in his or her own right any Group Company in its own right and by any officer, employee or agent of any Group Company in his or her own right.
This Agreement has been executed as a deed on the date of signing as indicated below.
Executed as a Deed by                 )
Michael Black                ) /s/ Michael Black
On date                )
in the presence of:                )
/s/ Andrew Fields
Name of witness: Andrew Fields
Address: 119 Cavendish Road, Cambridge, CB1 3AE

Executed as a Deed                )  /s/ David Fyfe
by                 ) /s/ Stephen Chandler
CDT                )
acting by:                )
                
                Director - David Fyfe
                Director/Secretary - Stephen Chandler
 [INSERT NAME]rrd123279_14621.html

Compromise Agreement
(1) Daniel Abrams
(2) Cambridge Display Technology Limited
Dated        June 2006
Osborne Clarke
Apex Plaza
Forbury Road
Reading
RG1 1AX
Telephone        +44 (0) 118 925 2000
Fax        +44 (0) 118 925 2005LWD/L912729
WITHOUT PREJUDICE
AND
SUBJECT TO CONTRACT
This Agreement is made on        30                                       June 2006
Between:
(1) Daniel Abrams of 8a Gordon Avenue, Stanmore, Middlesex HA7 3QD (the "Employee"); and 
(2) Cambridge Display Technology Limited (Company number: 02672530) whose registered office is at Building 2020, Cambourne Business Park, Cambridgeshire, CB3 6DW (the "Company").
Background:
(A) The Employee is currently employed by the Company as Chief Financial Officer.
(B) The Employee asserts various claims against the Company arising out of the impending termination of his employment by mutual consent.
(C) The parties have agreed terms of settlement of such claims as set out in this Agreement.
It is agreed as follows:
1. Definitions and interpretation
1.1 In this Agreement, unless the context otherwise requires, the following definitions shall apply:
"Agreement" means this agreement (including any schedule or annexure to it and any document in agreed form).
"Adviser" means the legal adviser referred to in clause 13.1.
"Confidential Information" means any information of a confidential nature obtained by the Employee as a result of his employment by the Company which belongs to and is of value to the Company or any Group Company or in respect of which the Company or any Group Company owes a duty of confidentiality to a third party.  Such information includes (without limitation):
(a) lists and particulars of the clients and potential clients of the Company or any Group Company
(b) any financial information relating to the Company or any Group Company or
(c) business plans of the Company or any Group Company.
Confidential Information does not include any information in respect of which a protected disclosure is made by the Employee within the meaning of the Public Interest Disclosure Act 1998.
"Contract of Employment" means the contract of employment between the Employee and the Company dated 12 September 2005.
"ERA" means the Employment Rights Act 1996 (as amended).
"Group Company" means the Company and any holding company, subsidiary or subsidiary of a holding company of the Company, the terms "holding company" and "subsidiary" having the meanings given to them in Section 736, Companies Act 1985.
"Proceedings" means any action, claim or proceedings in the Employment Tribunal or any other court against the Company, any Group Company or any of its or their officers, employees or agents in respect of any of the matters which are the subject of the Employee's warranty under clause 2.4, or are settled under the terms of this Agreement.
"Termination Date" means 30 June 2006, being the date on which the Employee's employment with the Company will end.
"Termination Payment" means the payment referred to in clause 5.
1.2 In this Agreement, unless the context otherwise requires:
(a) a reference to a statute or statutory provision includes:
(i) any subordinate legislation (as defined in Section 21(1) Interpretation Act 1978) made under it;
(ii) any statute or statutory provision which modifies, consolidates, re-enacts or supersedes it;
(b) a reference to:
(i) a "person" includes any individual, firm, body corporate, association or partnership, government or state (whether or not having a separate legal personality);
(ii) "clauses" and "schedules" is to clauses of and schedules to this Agreement;
(iii) "indemnify" and "indemnifying" any person against any circumstance include indemnifying and keeping him harmless from all actions, claims and proceedings from time to time made against him and all loss or damage and all payments (including fines, penalties and interest, costs or expenses) made or incurred by that person as a consequence of or which would not have arisen but for that circumstance;
(c) headings are for convenience only and shall not affect the interpretation of this Agreement. 
2. Settlement of claims
2.1 The terms of this Agreement have been agreed between the parties without any admission of liability in full and final settlement of the Employee's complaints of breach of contract and wrongful dismissal which he has asserted against the Company, any Group Company and/or any of its or their officers and/or employees arising from his employment or from the termination thereof. 
2.2 It is the further intention of the parties that this Agreement shall, without any admission of liability, be in full and final settlement of any other claims the Employee has or may in future have at common law, under domestic or European legislation, against the Company, any Group Company or any of its or their officers, employees or agents arising directly or indirectly from the Employee's employment by the Company and/or the termination of such employment or office holding including without limitation any claim:
(a) pursuant to the ERA in respect of unfair dismissal, unlawful deduction from wages or unlawful receipt of payments from the Employee under part II, guarantee payments under part III, protected disclosures under part IVA, unlawful detriment under part V, breach of the right to time off work under part VI, remuneration or alternative work on suspension under part VII, a redundancy payment under part XI and Chapters II and V, and any other rights under the ERA;
(b) to have suffered unlawful detriment, or any other claim, under:
(i) regulation 7(2) Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000;
(ii) regulations 27, 31 and 32 Transnational Information and Consultation of Employees Regulations 1999;
(iii) section 23 National Minimum Wage 1998;
(iv) arising under regulation 3, 6(2) or 9 Fixed-Term Employees (Prevention of Less Favourable Treatment) Regulations 2002;
(v) regulation 30 Working Time Regulations 1998;
(c) of unlawful discrimination under the Sex Discrimination Act 1975, the Race Relations Act 1976, the Disability Discrimination Act 1995, the Employment Equality (Religion or Belief) Regulations 2003 and/or the Employment Equality (Sexual Orientation) Regulations 2003;
(d) in respect of the contravention of a contract term modified or included by virtue of an equality clause under section 2(1) Equal Pay Act 1970;
(e) in respect of the infringement of the statutory employment rights set out in the Trade Union and Labour Relations (Consolidation) Act 1992;
(f) under any directly effective provision of the Treaty of Amsterdam or the legislation of the European Union;
(g) under the Maternity and Parental Leave etc Regulations 1999;
(h) under the Human Rights Act 1998;
(i) in respect of harassment under Section 3 Protection from Harassment Act 1997;
but shall exclude any claim in respect of the Employee's accrued rights arising out of the Employee's membership of the Company Pension Scheme or any latent personal injury claim.
2.3 The settlement set out in clause 2.2 shall include, without limitation, any future claims the Employee may have, whether or not the matters which give rise to such future claims are currently known to either the Employee or any Group Company and whether or not any legal remedy available for such claims in the future would be available for an action taken at the date of this Agreement.
2.4 The Employee, having taken independent legal advice, warrants that, except for any claim expressly set out or referred to in clause 2.1 and without prejudice to clause 2.2, he has no claims whatsoever against the Company, any Group Company or any of its or their officers, employees or agents arising directly or indirectly from the Employee's employment by the Company and/or the termination of such employment or office holding.  
2.5 If the Employee is awarded any compensation or damages by a court or tribunal pursuant to Proceedings, the Employee shall repay to the Company immediately upon demand the Termination Payment or such amount of the Termination Payment as shall be equivalent to the total amount of the compensation or damages (including interest) awarded together with the full amount of any legal fees incurred by the Company in defending Proceedings.  Any part of the Termination Payment less any statutory redundancy payment which remains outstanding shall cease to be payable under this Agreement with effect from the date of commencement of Proceedings.
2.6 Nothing in this Agreement shall prevent the Employee from instigating legal proceedings to recover from the Company any of the payments set out in this Agreement which are properly owing to him.
3. Pay
3.1 The Company will pay to the Employee within 14 days of the Termination Date subject to the deduction of income tax in accordance with his PAYE tax coding and primary class 1 National Insurance contributions:
(a) salary accrued to the Termination Date; and
(b) holiday pay in lieu of the Employee's accrued but unused pro rata entitlement.
3.2 The Company will continue to provide to the Employee up to the Termination Date all benefits to which the Employee was entitled under the Contract of Employment.
3.3 The Company shall pay to the Employee within 14 days of the Termination Date and subject to the deduction of income tax and primary class 1 National Insurance contributions the sum of GBP 1,000 as consideration for the Employee agreeing to the restrictions and obligations at clauses 8, 9 and 11 of this Agreement.
4. Expenses
The Employee will, within 7 days of the date of the Termination Date notify the Company of the amount of any expenses incurred by him in the performance of his duties prior to the Termination Date and supply the Company with receipts or other documentary evidence of such expenditure.  The Company will, within 14 days of receipt of such notification and evidence, reimburse to the Employee the amount of all such expenses properly and necessarily incurred by his in the course of his duties. 
5. Termination Payment
The Company shall pay to the Employee GBP 105,000 as compensation for loss of office, such payment to be made after the Employee's P45 form has been issued by the Company and within 14 days of the Termination Date.  
6. Tax
6.1 
(a) The first GBP 30,000 of the Termination Payment shall be paid without any deduction in respect of income tax; and
(b) income tax at the basic rate shall be deducted from the balance of the said Termination Payment.
6.2 The Company believes the first GBP 30,000 of the Termination Payment can be paid without any deduction in respect of income tax pursuant to s403 Income Tax (Earnings and Pensions) Act 2003 and, accordingly, agrees to indemnify and keep the Employee indemnified against any PAYE liability and any liability to primary class I National Insurance contributions in respect of the Termination Payment. 
7. Legal Costs
The Company will pay the Employee's reasonable legal costs up to a maximum of GBP 1,000 (plus VAT) incurred in respect of advice received by the Employee as to the terms and effect of this Agreement.  Payment of these costs will be made direct to the Adviser subject to the Company's receipt of an invoice addressed to the Employee but marked payable by the Company.
8. Confidentiality
8.1 It is a condition of this Agreement that its terms shall remain confidential to the parties and their legal and professional advisers (and in the case of the Employee, his immediate family).  Except as agreed in this Agreement or otherwise required by law, no statement or comment shall be made by the parties to any third party in relation to the terms or existence of this Agreement, the claims of the Employee settled by its terms or the circumstances of the termination of the Employee's employment.  It is agreed that the Company will disclose this Agreement to the Securities and Exchange Commission.
8.2 The Company will not make, publish or cause to be published any disparaging remarks concerning the Employee and the Employee will not make, publish or cause to be published any such remarks concerning the Company, any Group Company, or its or their directors, officers or employees.
9. Confidential Information
9.1 The Employee shall not at any time disclose to any person or use for the Employee's own purposes or through lack of diligence cause the unauthorised disclosure of any Confidential Information, although this restriction shall not apply to any Confidential Information coming into the public domain other than as a result of any breach by the Employee of this obligation. 
9.2 The Employee warrants that all Confidential Information that the Employee had in his possession, custody or under his control by whom and in whatever format recorded (whether electronically, on paper, on audio or audio visual tape or otherwise and including all copies) will be returned to the Company within 7 days of the date of this Agreement and that neither the Employee nor any other unauthorised person will retain the ability to access such information.
10. Company property
The Employee warrants that all property belonging to the Company or any Group Company which is in the possession or control of the Employee will be returned to the Company in good working order within 7 days of the date of this Agreement.
11. Restrictions and Other Obligations
11.1 The Employee acknowledges and confirms that he continues to be bound by the restrictions contained at clause 15, 16, 18, and 21 of the Contract of Employment.
11.2 During a reasonable period following the Termination Date, which the Company anticipates will be for no longer than eight weeks, the Employee agrees to provide specific assistance as may reasonably be required by the Company in respect of any matter in which the Employee was involved in the six months prior to the Termination Date.
12. Reference and other statements
12.1 The Company will provide directly to any enquirer a written reference in the agreed form set out at Schedule 1.
12.2 The Company reserves the right to make disclosures concerning the Employee's conduct which come to light after the date of this Agreement in order to comply with the Company's duty of care to the party requesting a reference. 
12.3 The Company reserves the right to make such disclosures concerning the Employee as required by law or to comply with any regulatory requirements.
12.4 The Company shall issue the internal leaving statement in the agreed form at Schedule 2 in any internal communications relating to the Employee's departure from the Company.
12.5 The Company shall file with the Securities and Exchange Commission Form 8-K which shall contain the wording set out in Schedule 3.  The Company reserves the right to add a further statement to the agreed wording in Schedule 3 for the purposes of any regulatory requirement which, for the avoidance of doubt, may include an announcement relating to the Company's new Principal Financial Officer.
12.6 The Company shall issue to the press the agreed press release set out at Schedule 4.  The Company reserves the right to add a further statement to the agreed wording in Schedule 4 for the purposes of announcing the Employee's successor.
13. Legal advice
13.1 The Employee confirms:
(a) that he has received independent legal advice from Marie van der Zyl, a qualified lawyer in the firm of Davenport Lyons (solicitors) of 30 Old Burlington Street, London, W1S 3NL as to the terms and effect of this Agreement including in particular, its effect on his ability to pursue any claim before an Employment Tribunal and as to the practical steps available to the Employee as an alternative to entering into this Agreement;
(b) that the Adviser has advised his that these was in force, when the Adviser gave the advice referred to in paragraph (a), a policy of insurance covering the risk of a claim by the Employee in respect of loss arising in consequence of the advice;
(c) that the Adviser will sign and return on the date hereof a letter on the notepaper of the Adviser's firm in the form at Schedule 5 to this Agreement and that the Adviser has given to the Employee the advice referred to in this clause 13.1 and that the conditions regulating compromise agreements which are referred to in clause 13.2 have been satisfied.
13.2 It is agreed that the conditions regulating compromise agreements under Sections 203(3) ERA, 77(4A) Sex Discrimination Act 1975, 72(4A) Race Relations Act 1976, 288(2B) Trade Union and Labour Relations (Consolidation) Act 1992, 9(3) Disability Discrimination Act 1995, 49(4) National Minimum Wage Act 1998, Regulation(s) 35 Working Time Regulations 1998, 41(4) Transnational Information and Consultation of Employees Regulations 1999, Schedule 4, paragraph 2(2) Employment Equality (Sexual Orientation) Regulations 2003, and Schedule 4, paragraph 2(2) Employment Equality (Religion or Belief) Regulations 2003 are satisfied.
14. Third parties and variation
14.1 Save as expressly provided in clause 14.2, no term of this Agreement is enforceable pursuant to the Contracts (Rights of Third Parties) Act 1999 by any person who is not a party to it.
14.2 Subject to the Contracts (Rights of Third Parties) Act 1999 and to the provisions of this Agreement, clauses 2, 8, 9, 10 and 11 may be enforced by any officer, employee or agent of the Company and/or any Group Company or any of their officers, employees or agents in their own right. 
14.3 No purported variation of this Agreement shall be effective unless it is in writing and signed by or on behalf of each of the parties.
14.4 Pursuant to Section 2(3)(a) Contracts (Rights of Third Parties) Act 1999, the parties, in accordance with clause 14.1, may without limit or restriction and without the consent of any third party:
(a) vary this Agreement or any provision of it which may be enforced by any third party or otherwise amend this Agreement in such a way as to extinguish or alter any third party's entitlement under any such provisions; and/or
(b) rescind or novate this Agreement.
15. Entire agreement and conflicts
15.1 This Agreement sets out the entire agreement and understanding between the parties and supersedes all prior agreements, understanding or arrangements (whether oral or written) in respect of the subject matter of this Agreement.
15.2 The Employee acknowledges that he has entered into this Agreement in reliance only on the representations, warranties and promises specifically contained or incorporated in this Agreement and, save as expressly set out in this Agreement, neither the Company, any Group Company nor any of its or their employees, officers or agents shall have any liability in respect of any other representation, warranty or promise made prior to the date of this Agreement unless it was made fraudulently.
16. Jurisdiction
This Agreement shall be governed by and construed in all respects in accordance with the laws of England and Wales and each of the parties irrevocably submits to the exclusive jurisdiction of the courts of England and Wales. 
17. Effective date
This Agreement will come into effect on the date of the last party's signature on which date the "without prejudice and subject to contract" nature of this Agreement will cease to apply.
This Agreement has been signed by the parties on the date appearing at the head of page 1 to signify their agreement to its terms.
/s/ Daniel Abrams
Signed by Daniel Abrams
on 
30 June 2006

/s/ David Fyfe
Signed for and on behalf of the Company 
on

30 June 2006

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