Document:

exhibit_august10-22008.htm

  
    EXHIBIT 10.2

     

     

    
 

    SECOND
AMENDMENT TO THE LICENCE AND DISTRIBUTION AGREEMENT

    

    
 

    
      	
              (1)

            	
              Sona Mobile Inc. (EIN 20
      – 0375677) and Sona
      Innovations, Inc. (BN 86762 2441), whose registered offices are at
      39th
      Floor, 245 Park Avenue, New York, NY 10167 (collectively "Sona Group
      ")

               

              Tel:           +
      1 702 243 7662

              Fax:           +
      1 702 243 7602

              Email:       kim.stein@sonamobile.com

            
	
               

              AND

               

            
	
              (2)

            	
              eBet Limited (ABN 59 059
      210 774), eBet Gaming
      Systems Pty. Ltd. (ABN 50 086 218 832) and eBet Systems Pty. Ltd.
      (ACN 088 033 121) whose registered offices are at Unit 13, 112-118
      Talavera Road, Macquarie Park, NSW 2113 Australia (collectively, the
      “eBet
      Companies”)

               

              Tel:           +
      61 2 8817 4702

              Fax:           +
      61 2 8817 4770

              Email:           ttoohey@ebetonline.com

            
	
               

              The
      Parties hereby enter into this Second
Amendment

            

    

     

     

    
      	

              Signed,
      sealed and delivered by Sona Mobile Inc.:

            	
              /s/ 
      KIM STEIN

            
	
              Date:

            	
              August
      28, 2008

            	 
      	
              Authorised
      Signatory

            
	 
      
	

              Signed,
      sealed and delivered by Sona Innovations, Inc.:

            	
              /s/ 
      STEPHEN FELLOWS

            
	
              Date:

            	
              August
      29, 2008

            	 
      	
              Authorised
      Signatory

            
	 
      
	
              Signed,
      sealed and delivered by eBet Limited

            	
              /s/ 
      ANTHONY
      TOOHEY

            
	 
      	
              Director

            
	
              Date:

            	
              August
      29, 2008

            	 
      	
              /s/  IAN JAMES   
      

            
	 	
              Director

            
	 
      
	
              Signed,
      sealed and delivered by eBet Gaming Systems Pty. Ltd.

            	
              /s/ 
      ANTHONY TOOHEY  

            
	 
      	
              Director

            
	
              Date:

            	
              August
      29, 2008

            	 
      	
              /s/ 
      IAN JAMES  

            
	 
      	
              Director

            
	 
      
	
              Signed,
      sealed and delivered by eBet Systems Pty. Ltd.

            	
              /s/ 
      ANTHONY TOOHEY  

            
	 
      	
              Director

            
	
              Date:

            	
              August
      29, 2008

            	 
      	
              /s/ 
      IAN JAMES  

            
	 
      	
              Director

            

    

     

     

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    INTRODUCTION

     

    
      	
              A.  

            	
              The
      Parties entered into the first amendment (“First Amendment”) to the
      Licence and Distribution Agreement between Sona Mobile, Inc and Sona
      Innovations, Inc. and eBet Limited, eBet Gaming Systems Pty. Ltd. and eBet
      Systems Pty. Ltd., dated August 17, 2008 (the “Licence Agreement”) to
      allow additional time to complete the Master Services
      Agreement.

            

    

     

    
      	
              B.  

            	
              The
      Parties desire to enter into this second amendment (“Second Amendment”) to
      the Licence and Distribution Agreement between Sona Mobile, Inc and Sona
      Innovations, Inc. and eBet Limited, eBet Gaming Systems Pty. Ltd. and eBet
      Systems Pty. Ltd., dated August 17, 2008 (the “Licence Agreement”) to
      allow additional time to complete the funding of the License Fee Balance
      by EGS.

            

    

     

    
      	
              C.  

            	
              It
      was the intent of the Parties that EGS would pay the balance of
      US$2,250,000 (“Licence Fee Balance”), by Sona Wire Transfer upon
      satisfaction of the closing conditions referred to in clauses 2.1, 2.2 and
      2.3, and upon satisfaction of those closing conditions on or before the
      Closing Date, the Sona Agent shall be authorised to release to EGS, the
      Sona Software and the Sona Software Documentation; to Sona and EGS, the
      counterpart original documents (or copies thereof) deposited with the Sona
      Agent under clause 2.1(a) and (b), as appropriate; and (c) to Sona, the
      Second Instalment; and thereafter the transaction would be
      closed.

            

    

     

    
      	
              D.  

            	
              The
      Parties have a completed and executed Master Services Agreement between
      eBet Services Pty. Limited (ACN 132 670 485) of Australia and Sona Mobile
      Holdings Corp. (EIN 95-3087593) of the USA (the “Master Services
      Agreement”) as of August 25, 2008 pursuant to the terms of the First
      Amendment to the Licence Agreement.

            

    

     

    
      	
              E.  

            	
              EGS
      has authorised and the Sona Agent has released the Second Instalment to
      Sona.

            

    

     

    
      	
              F.  

            	
              This
      Second Amendment sets out the terms and conditions of the agreements
      between the Parties.

            

    

     

     

    NOW
THEREFORE, in consideration of the mutual agreement of the Parties contained in
this Amendment, and for good and other valuable consideration, the receipt and
sufficiency of which is acknowledged, the Parties agree as follows:

     

     

    
      	
              1.  

            	
              All
      capitalised terms used within this Second Amendment shall be as those
      terms are defined under the Licence Agreement unless otherwise defined
      within this Second Amendment.

            

    

     

     

    
      	
              2.  

            	
              Where
      there is a conflict between this Second Amendment, the First Amendment,
      and the Licence Agreement, this Second Amendment shall govern between the
      Parties.

            

    

     

     

    
      	
              3.  

            	
              The
      Parties acknowledge and agree that the Closing Date as defined in Section
      1.1 of the License Agreement is hereby defined as; “on or before 5
      September 2008.”

            

    

     

     

    
      	
              4.  

            	
              The
      Parties acknowledge and agree that EGS will pay US $1,500,000 (“Third
      Instalment”) of the License Fee Balance to Sona on or before 29 August
      2008 by Sona Wire Transfer, leaving a remainder of US $750,000 due to Sona
      (“Remainder”) to be paid by Sona Wire Transfer on or before the Closing
      Date.

            

    

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    
      	
              5.  

            	
              The
      Parties acknowledge and agree that the First Instalment and the Second
      Instalment shall be non-refundable to EGS where EGS fails to pay the
      Remainder on the Closing Date.

            

    

     

     

    
      	
              6.  

            	
              The
      Parties agree that all other clauses, terms, provisions, covenants and
      conditions of the Licence Agreement shall remain in full force and effect
      and are not otherwise altered by this Second
  Amendment.

            

    

     

     

    
      	
              7.  

            	
              This
      Second Amendment may be executed in counterparts, each of which shall be
      deemed to be an original, and all of which together shall be deemed to be
      one and the same instrument.  Delivery of an executed
      counterpart of a signature page of this Second Amendment or any document
      or instrument delivered in connection herewith by telecopy or electronic
      portable document format (delivered by electronic mail) shall be as
      effective as delivery of a manually executed counterpart of this Second
      Amendment or such other document or instrument as applicable. The
      electronic copies so signed will constitute originally signed copies of
      the same consent requiring no further
execution.

            

    

     

     

     

     

     

     

     

     

     

     

     

    3har10k08ex1037.htm

    
      

    

    Exhibit
10.37

     

     

     

    
      MANAGING
DIRECTOR EMPLOYMENT AGREEMENT

      (Geschftsfhrerdienstvertrag)

      (this
"Agreement")

      

      

      Between

      

      Harman
Management GmbH

      Im
Stockmaedle 1

      76303
Karlsbad

      Germany

      

      represented
by its shareholder (Shareholder) Harman International Industries,
Inc.

      

      

      -
hereinafter referred to as the Company -

      

      

      and

      

      

      Dr.
Klaus Blickle

      Heidelsteinstrasse
2

      36093
Dirlos

      Germany

      

      -
hereinafter referred to as the "Executive" -

      

      

      

      Article
1

      Position and Scope of
Duties

      

      

      
        	
                1.1

              	
                The
      Company shall employ the Executive as a managing director (Geschftsfhrer) with
      joint signing authority.  For purposes of this Agreement, the
      term "Automotive Division" shall refer to the Company, Harman Holding GmbH
      & Co KG, and all of their Affiliates (as hereinafter defined) involved
      in the worldwide operations of the Shareholders automotive OEM
      business.  The Executive shall also serve as a member of the
      Shareholders Executive Committee.

              

      

      

      The
Executives title shall be "Chief Executive Officer (CEO) of the Harman
Automotive Division of Harman International".  The Executive shall
have full P&L responsibility for the world-wide operations of the Automotive
Division including sales, engineering, manufacturing, finance, human resources
and IT, subject to operating and reporting guidelines as approved by the
Shareholders representative (as defined in Section 1.3 below).

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                1.2

              	
                The
      Executive shall perform his duties by observing the diligence of a prudent
      businessman and in accordance with the provisions of this Agreement; the
      Company's Articles of Association (Gesellschaftsvertrag);
      the general and specific directives or instructions given by the
      supervisory board (Aufsichtsrat), if any,
      or the Shareholder (including its Group Authority Regulation) or any
      designees of the Shareholder; any Management By-Laws (Geschftsordnung) that
      may hereafter be established or amended; and in accordance with applicable
      law.

              

      

      

      
        	
                1.3

              	
                The
      Shareholder hereby appoints its Chief Executive Officer (CEO) as its
      designee, and the Executive shall report directly to such designee,
      subject to later amendment by the Shareholder.  Any actions
      required or permitted to be taken by the Shareholder hereunder may be
      taken by the Shareholders designee.

              

      

      

      
        	
                1.4

              	
                The
      responsibility of the Executive (subject to the limitations contained
      herein, in the Articles of Association and Management By-Laws of the
      Company, the Group Authority Regulation of the Shareholder (Group
      Authority Regulation), and otherwise under applicable law) shall include,
      without limitation, the following, subject to later amendment by the
      Shareholder:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                the
      preparation and submission to the Shareholder of the annual budgets and
      strategic plans of the Automotive
Division;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                the
      management of the Automotive Division in accordance with budgets and
      strategic plans approved by the
Shareholder;

              

      

      

      
        	
                 
      

              	
                (c)

              	
                advising
      the Shareholder of the material activities and operations of the
      Automotive Division on a timely, on-going
basis;

              

      

      

      
        	
                 
      

              	
                (d)

              	
                hiring
      and firing management personnel (except as to managing directors) and
      overseeing the hiring of such other salaried and hourly rated employees as
      may be required for the proper and efficient conduct of the business of
      the Automotive Division within the scope of the Executive's
      authority;

              

      

      

      
        	
                 
      

              	
                (e)

              	
                the
      making of commitments on behalf of the Automotive Division, or any
      business unit of the Automotive division, other than those commitments
      requiring the approval of the Shareholder as provided by law, the Companys
      Articles of Association, any Management By-Laws, the Group Authority
      Regulation or this Agreement; provided, however, that
      the signing authority of the Executive shall not be sole signing
      authority;

              

      

      

      
        	
                 
      

              	
                (f)

              	
                seeking
      the approval of the Shareholder in respect of any matter involving or
      affecting the Automotive Division or its business which is out of the
      ordinary and usual course of business of the Automotive Division;
      and

              

      

      

      
        	
                 
      

              	
                (g)

              	
                carrying
      out the directives of the
Shareholder.

              

      

      

      
        	
                1.5

              	
                The
      Executive shall devote his full working time and ability to the Automotive
      Divisions business.  The Executive shall not engage in any other
      activity for remuneration or any other activity that normally would give
      entitlement to remuneration, including any part-time work, without the
      prior written consent of the Shareholder in each instance.  The
      Executive may be required by the Shareholder to serve in management
      positions for affiliates as defined in accordance with Section 15 of the
      German Stock Corporation Act ("Affiliates") without further or additional
      remuneration.  The Executive shall not serve on the supervisory
      board, advisory board (Beirat) or similar
      corporate function of another company without the prior written consent of
      the Shareholder.

              

      

      
        
           

        

        
          - 2
-

          
            

          

        

        
           

        

      

      
        	
                1.6

              	
                The
      Company reserves the right to assign additional areas of responsibility to
      the Executive.  At the request of the Shareholder, within the
      framework of this Agreement and the areas of responsibility assigned to
      the Executive, the Executive will also work for other national and
      international companies of the Harman
Group.

              

      

      

      
        	
                1.7

              	
                Notwithstanding
      the internal authority of the Executive as determined by the Shareholder
      and its representative, the Executive shall, with respect to the exercise
      of his statutory representation authority, be required to seek the
      approval of the Shareholder for any activities for which the Shareholders
      approval is required under the Group Authority Regulation or under
      Management By-Laws and/or Articles of Association of the Company, either
      now existing or later adopted or
amended.

              

      

      

      
        	
                1.8

              	
                The
      Executive shall be entitled to coverage as a beneficiary under the
      Shareholders Directors and Officers Liability insurance
      policy.

              

      

      

      Article
2

      

      Termination, Notice and
Severance

      

      
        	
                2.1

              	
                This
      Agreement commences with effect as of July 1, 2008 or earlier if agreed by
      the parties (the Commencement Date).  This Agreement may be
      terminated by either party without giving any reason therefor upon at
      least six months prior written notice to the other party; provided,
      however, that any termination under this section shall be effective no
      earlier than June 30, 2011.  Notice by the Executive must be in
      writing, must be delivered to the Shareholder and shall be effective upon
      delivery.  An extraordinary termination pursuant to Section 626
      BGB (Termination for Cause) is not affected by these
  rules.

              

      

      

      
        	
                2.2

              	
                At
      any time during the term of this Agreement, the Shareholder is entitled to
      relieve the Executive from his obligation to work.  In such a
      case, the Executive shall not engage in any activity during the term of
      this Agreement for which he is, will be, or would normally be entitled to
      remuneration without the prior written consent of the
      Shareholder.

              

      

      

      
        	
                2.3

              	
                In
      the event of relief of the Executive from his obligation to work, the
      Executive shall continue to be entitled during the term of this Agreement
      to compensation and benefits as provided for in this Agreement, subject to
      the specific terms of those provisions, but only for as long as Executive
      has not been employed by another
employer.

              

      

      
        
           

        

        
          - 3
-

          
            

          

        

        
           

        

      

      
        Article
3

      

      

      
        Secrecy/Business
Records

      

      

      
        	
                3.1

              	
                The
      Executive shall not disclose to any third party, or use for his personal
      gain, any confidential, technical or other business information entrusted
      to him, or which has otherwise become known to him and which relates to
      the Automotive Division, the Company or to any of its
      Affiliates.  In particular, the Executive shall not disclose any
      confidential or proprietary information concerning the organization of the
      business, relations with customers and suppliers or technical know-how,
      design or intellectual property, trade secrets, or any other marketing,
      commercial or technical information considered confidential or proprietary
      by the Automotive Division.  This obligation shall not expire
      upon termination of Executives employment but shall remain in
      force.

              

      

      

      
        	
                3.2

              	
                The
      Executive shall use business records of any kind, including private notes,
      concerning the Automotive Divisions or the Companys affairs and
      activities, only for business purposes.  The Executive shall not
      make copies or extracts or duplicates of drawings, calculations,
      statistics, and the like, nor of any other business records, for purposes
      other than for the Automotive Divisions
  business.

              

      

      

      
        	
                3.3

              	
                Upon
      termination of his employment (or upon request of the CEO upon or after
      the giving of notice of termination), the Executive shall return to the
      Company of his own accord all business records and copies thereof which
      are in his possession.  The Executive shall have no right of
      retention as to any such records or copies.  The Executive shall
      also at such time return to the Company all keys, goods and other
      equipment in his possession which are the property of the Company or any
      of its Affiliates or to which the Company or any of its Affiliates has the
      right of possession.  The same applies in case the Executive is
      assigned a different managerial position with respect to those business
      records and properties that the Executive no longer needs in order to
      perform in his new position.

              

      

      

      Article
4

      

      Salary, Allowable Expenses
and Other Benefits

      

      
        	
                4.1

              	
                Beginning
      on the Commencement Date the Executive shall receive an annual gross
      salary (the Salary) of 500,000 (five hundred thousand Euros) subject to
      annual review.  The Salary shall be payable in twelve equal
      monthly installments to be paid at the end of each month, all after
      deduction of the amounts to be withheld in accordance with
      law.  The Salary entitlement may not be assigned or pledged by
      the Executive.  The Salary includes payment for any work
      performed by the Executive outside of normal working
  hours.

              

      

      

      
        	
                4.2

              	
                Travel
      expenses and other necessary and adequate expenses incurred by the
      Executive in the furtherance of the Automotive Divisions business shall be
      reimbursed against proof to the extent they are reasonable and in
      accordance with rules applicable in Germany for tax purposes and with the
      then effective travel policy of the
Company.

              

      

      
        
           

        

        
          - 4
-

          
            

          

        

        
           

        

      

      
        	
                4.3

              	
                For
      so long as the Executive holds the position of CEO of the Automotive
      Division of Harman International and has not been assigned a different
      managerial position, in addition to his Salary, the Executive may be
      entitled to an annual bonus based on performance parameters as decided
      each year in the sole discretion of the Shareholder and on a target of 60%
      of his Salary in accordance with the MIC Corporate
      Guidelines.  The annual bonus can be up to 50% higher depending
      on achievement of superior results in line with the MIC Corporate
      guidelines.  The annual bonus shall be governed by the terms and
      conditions of the bonus plan and parameters for the Automotive
      Division.  For the fiscal year ending June 30, 2009, the annual
      bonus shall be guaranteed at the target level of 150,000, and payable
      during the month of August 2009. The parties acknowledge that the Salary
      already reflects the parties mutual risk should the Company release the
      Executive from his obligation to work, and therefore the Executive shall
      have no right to claim any bonus or pro rata bonus should the Company
      (with or without termination of this Agreement) release the Executive from
      his obligation to work.  It is understood and agreed by the
      parties that any bonus payments by the Company shall be voluntary one-time
      remunerations and will not result in any future obligations by the Company
      or any of its Affiliates.

              

      

      

      
        	
                4.4

              	
                Within
      thirty (30) days of the Commencement Date, the Executive will receive a
      one-time grant under the Shareholders 2002 Stock Option and Incentive Plan
      (2002 Plan) covering a total of 25,000 shares of its common
      stock.  Subsequent grants, if any, will be at the sole
      discretion of the Shareholders board of directors, and all grants will be
      solely governed by the terms of the option plan or program under which
      they are granted.

              

      

      

      
        	
                4.5

              	
                Within
      thirty (30) days after the third anniversary of the Commencement Date, and
      provided that the Executive is then employed by the Company, the Executive
      will be granted 5,000 shares of HII common stock under the 2002 Plan,
      which shares shall be non-forfeitable and non-restricted on the date of
      grant.

              

      

      

      
        	
                4.6

              	
                The
      Executive shall be entitled to a company pension in the form of an annual
      gross pension payment (Annual Pension), to be calculated and paid as
      follows:

              

      

      

      The
Annual Pension shall be in the amount of 54,000, and shall be paid in twelve
(12) equal monthly installments commencing the month following the month during
which the last one of the following conditions has been satisfied:

      

      
        	
                 
      

              	
                (i)

              	
                the
      Executive has attained the age of
60;

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                the
      Executive is not employed by the Company or any of its Affiliates;
      and

              

      

      

      
        	
                 
      

              	
                (iii)

              	
                The
      Executive has completed three full years of consecutive active service as
      an employee with the Company and/or its
  Affiliate(s)

              

      

      

      provided, however, that the
Executive shall cease to be entitled to payment of an Annual Pension after his
reemployment by the Company or any of its Affiliates.

      

      The
Annual Pension shall be increased by 18,000 for each full year of active service
under this Agreement completed between June 30, 2011 and June 30,
2013.

      
        
           

        

        
          - 5
-

          
            

          

        

        
           

        

      

      The right
to payment of an Annual Pension hereunder shall cease upon the Executives death;
provided, however,
that, in case of the Executives death during his employment with the Company,
the Executives spouse shall not be entitled to an Annual Pension, but shall
instead be entitled to a death benefit in the form of a one-time payment in an
amount equal to the Executives eligible salary.

      

      For
purposes of this Section 4.6, the term eligible salary shall mean the average
annual salary pursuant to Section 4.1 of this Agreement paid to the Executive
during the Executives last five consecutive years of employment with the
Company.  The term eligible salary shall not include any other kind of
payments, benefits, or compensation made or granted to the
Executive.

      

      
        	
                4.7

              	
                In
      addition, the Executive shall be entitled to participate in the Companys
      benefit plans. The Company will also provide for the following insurance
      payments under policies issued by
LVM:

              

      

      

      
        	
                 
      

              	
                a)

              	
                Risk
      life insurance: NR 3.229.580.107 - annual payment of  16,500 (sixteen
      thousand five hundred Euros).

              

      

      

      
        	
                 
      

              	
                b)

              	
                Risk
      Insurance: NR 3.229.600.108 - annual payment of  8,000 (eight
      thousand Euros).

              

      

      

      
        	
                 
      

              	
                c)

              	
                Direct
      Insurance: NR 3.227.733.100 - annual payment of 1,800 (one thousand eight
      hundred Euros).

              

      

      

      
        	
                4.8

              	
                It
      is the Companys and the Executives mutual intention that the Executive
      relocate to Karlsbad or surrounding area.  Upon submission of
      the respective invoices according to Company policy, the Executive shall
      be entitled to reimbursement by the Company of the following relocation
      expenses:

              

      

      

      
        	
                 
      

              	
                a)

              	
                reasonable
      closing costs;

              

      

      

      
        	
                 
      

              	
                b)

              	
                reasonable
      moving costs for normal household goods and personal possession with
      certain exceptions (e.g., the Company will
      not pay for transportation of antiques, automobiles, art collections and
      other special items);

              

      

      

      
        	
                 
      

              	
                c)

              	
                reasonable
      flat accommodation in Karlsbad for a period of 7 months; monthly rental
      amount of the flat is subject to the approval of the
  CEO.

              

      

      

      
        	
                4.9.

              	
                The
      Company shall provide to the Executive a company car, in accordance with
      its policy for executives at similar levels.  The Company shall
      bear those car expenses (e.g., insurance, car
      tax, repairs) that are associated with the business use of the company
      car.  The Executive may use the company car for private
      purposes.  Any taxes imposed with respect to such private usage
      shall be borne by the Executive.

              

      

      

      
        	
                4.10

              	
                The
      Company shall also reimburse Executive up to an annual maximum amount of
      8,000 (eight thousand Euros) for tuition for Executives dependent
      children.

              

      

      
        
           

        

        
          - 6
-

          
            

          

        

        
           

        

      

      Article
5

      

      Vacation

      

      The
Executive shall be entitled to an annual vacation of thirty (30) working days
excluding Saturdays.  The time of vacation shall be determined in
consultation with the Shareholder and the other managing directors of Company,
taking into consideration the personal preferences of the Executive and the
interests of the Automotive Division.  In the year of termination of
this Agreement, the entitlement to vacation shall be calculated on a pro rata basis.

      

      Article
6

      

      Sickness

      

      In case
the Executive is temporarily unable to perform his duties as Executive due to
sickness or absence not caused by the Executive's negligence, Company shall
continue to pay the Executive the Salary for a period of six weeks and, after
such period, for a period of 6 months minus six weeks, the difference between
the statutory sickness allowance and the Executives latest net income from
Salary, but the Executive shall assign to Company any claims the Executive may
have against third parties relating to such sickness or absence.

      

      Article
7

      

      Inventions

      

      
        	
                7.1

              	
                Any
      invention, design, concept, mark, know-how or other intellectual property
      which arises out of the Executive's activities for the Company or which is
      made with respect to the experience, work or business of the Automotive
      Division (work-related intellectual property or "WIP") becomes the
      property of the Company without
compensation.

              

      

      

      
        	
                7.2

              	
                Inventions,
      designs, concepts, marks, know-how or other intellectual property which do
      not represent WIP (free intellectual property or "FIP") must be reported
      to the Shareholder in writing immediately.  The Shareholder, on
      behalf of the Company, may take an interest in FIP with or without
      limitations.  The Shareholder must report its intention to the
      Executive within four (4) months of the report of the FIP by the Executive
      to the Shareholder.

              

      

      

      
        	
                7.3

              	
                In
      case of restricted acquisition of FIP, the Company shall receive a joint
      use right based on terms provided by the Company; in the case of total
      acquisition, all rights in the FIP go to the Companies.  The
      Shareholder and the Executive will agree on compensation according to the
      provisions of the Law Concerning Inventions Made by Employees and the
      regulations issued in connection with said law, which law shall apply in
      any case in case any portion of this Article 7 is unenforceable, but only
      to the extent of such
unenforceability.

              

      

      
        
           

        

        
          - 7
-

          
            

          

        

        
           

        

      

      Article
8

      

      Covenant Not to
Compete

      

      
        	
                8.1

              	
                During
      the term and until the effective date of termination or expiration of this
      Agreement the Executive shall not:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                lend
      money to or engage, participate, assist, invest or have an equity
      interest, directly or indirectly, whether as partner, owner, consultant,
      agent or otherwise, in any business or enterprise that is in competition
      with any business activity of the Company or any of its Affiliates or is
      in competition with the sale of any products sold by the Automotive
      Division as exclusive dealer other than by holding less than 5% of the
      shares, voting or otherwise, in a publicly-traded company quoted on a
      recognized stock exchange;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                engage,
      hire, suggest or assist in or influence the engagement or hiring by any
      competing business or enterprise of, any salesman, distributor, supplier,
      employee or officer of the Company or any of its Affiliates, or otherwise
      cause or encourage any person having a business relationship with the
      Company or any of its Affiliates to sever such relationship with, or
      commit any act inimical to, the Company or any of its
      Affiliates;

              

      

      

      
        	
                 
      

              	
                (c)

              	
                use
      or divulge to others the customer or supplier lists of the Company or any
      of its Affiliates or, directly or indirectly, whether as a partner, owner,
      consultant, agent or otherwise, solicit or transact business with any
      customers or suppliers of the Company or any of their Affiliates;
      or

              

      

      

      
        	
                 
      

              	
                (d)

              	
                cause
      or permit any person, legal or otherwise, directly or indirectly under
      control of the Executive to do any of the
  foregoing.

              

      

      

      
        	
                8.2

              	
                During
      the term and upon termination of this Agreement and for a period of two
      years thereafter, the Executive shall not solicit or entice any officer,
      director or employee of the Company or any of its Affiliates to leave
      their employment with the Company or its respective
    Affiliate.

              

      

      

      
        	
                8.3

              	
                If
      the Executive breaches any of the obligations contained in this Article 8,
      for each such instance of breach the Executive shall pay the Company a
      penalty in the amount of 15,000..  Each week of continuing
      breach shall constitute an additional instance of breach.  In
      addition, the Executive shall be required to reimburse the Company for any
      additional damages suffered by it and any of its Affiliates by reason of
      such breach.

              

      

      

      Article
9

      

      Other
Provisions

      

      
        	
                9.1

              	
                Any
      amendments or supplements to this Agreement must be in writing signed by
      both the Executive and the Shareholder in order to be effective, including
      any amendment to this
provision.

              

      

      
        
           

        

        
          - 8
-

          
            

          

        

        
           

        

      

      
        	
                9.2

              	
                The
      English language version of this Agreement shall be controlling in all
      respects, irrespective of the existence of a translation hereof into the
      German language.

              

      

      

      
        	
                9.3

              	
                This
      Agreement represents the entire agreement and understanding of the parties
      and supersedes and cancels any prior written or oral agreement between the
      Executive and the Company and its Affiliates or any of them, including,
      without limitation, any prior employment agreements or arrangements,
      whether written or oral.

              

      

      

      
        	
                9.4

              	
                This
      Agreement shall be governed by the laws of the Federal Republic of
      Germany.

              

      

      

      
        	
                9.5

              	
                The
      invalidity of any provision of this Agreement shall not affect the
      validity of the remainder hereof.  Any invalid provision or any
      omission, if any, in this Agreement shall be replaced by an appropriate
      provision which best approximates the economic arrangement intended by the
      parties.

              

      

      

      
        	
                9.6

              	
                All
      disputes arising from this Agreement, the validity of its conclusion and
      its interpretation, shall be decided by an arbitration court which shall
      have exclusive jurisdiction over such matters, and which jurisdiction
      shall exclude the jurisdiction by any court over such
      matters.  Pursuant to Article 1031, para. 5 of the Federal Rules
      of Civil Procedure, a special arbitration agreement is concluded thereon,
      which is attached to this Agreement as Exhibit
    1.

              

      

      

      

      Harman
Management GmbH

      represented
by its shareholder

      Harman
International Industries, Inc.

      

      

      

      
        	
                By:

              	
                John Stacey

              	 
      	
                Date:

              	
                May 30, 2008

              	 
      
	
                Name:  
      John Stacey

              	 
      	 
      	 
      	 
      
	
                Title:     Vice
      President, Chief HR Officer

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
                /s/ Klaus Blickle

              	 
      	 
      	 
      	 
      
	
                Klaus
      Blickle

              	 
      	
                Date:

              	
                May 30, 2008

              	 
      

      

      
        
           

        

        
          - 9
-

          
            

          

        

        
           

        

      

      Exhibit
1

      

      ARBITRATION
AGREEMENT

      

      between

      

      Harman
Management GmbH

      

      and

      

      Klaus
Blickle

      

      The
parties agree hereby as follows:  All disputes arising from the
Managing Director Employment Contract appended hereto between Klaus Blickle and
Harman Management GmbH including its validity shall be finally settled by three
arbitrators according to the Arbitration Rules of the German Institution of
Arbitration e.V. (DIS) without recourse to the ordinary courts of
law.  The arbitration tribunal shall also decide on the validity of
this arbitration agreement.  The arbitral tribunal shall apply German
substantive law.  The language of the arbitration proceedings shall be
English. If one party desires consideration of a document or of witness
testimony in another language, that party must undertake the prior translation
or simultaneous translation, respectively, of the same and alone carry such as a
separate, non-refundable expense.  The place of arbitration shall be
Frankfurt am Main, Federal Republic of Germany. With the exception of possible
translation expenses as described above, the winning party is entitled to the
award of all necessary (in accordance to 91, ZPO (German Civil Procedure Code))
costs and necessary (in accordance to 91, ZPO (German Civil Procedure Code))
expenses in connection with the proceedings (including attorneys' fees in
accordance with the German Fee schedule (RVG)).

      

      (Signature
page follows)

       

      
        
           

        

        
          - 10
-

          
            

          

        

        
           

        

      

      Harman
Management GmbH

      represented
by its shareholder

      Harman
International Industries, Inc.

      

      

      

      
        	
                By:

              	
                John Stacey

              	 
      	
                Date:

              	
                May 30, 2008

              	 
      
	
                Name:  
      John Stacey

              	 
      	 
      	 
      	 
      
	
                Title:     Vice
      President, Chief HR Officer

              	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      
	
                /s/ Klaus Blickle

              	 
      	 
      	 
      	 
      
	
                Klaus
      Blickle

              	 
      	
                Date:

              	
                May 30, 2008

              	 
      

      

       

       

      - 11 -

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