Document:

Exhibit 10.24

 

 

AGREEMENT

 

This Tripartite Agreement (this "Agreement")
is entered into as of 16th January 2013 (the "Effective Date") between (1) Moneytech Limited (ACN: 106 249
852) ("Moneytech"), with its principal place of business at Level 6, 97103 Pacific Highway, North Sydney, NSW,
2060, (2) Moneytech Services Pty Limited (ACN: 112 110 933) ("Moneytech Services"), with is principal place
of business at Level 6,97 Pacific Highway, North Sydney NSW 2060 and (3) 360 Markets Pty Limited (ACN: 151 337
852) ("360"), with its principal place of business at 6/97 Pacific Highway North Sydney NSW 2060 and (4) Mr
Jason Hugo of 6 / 28 Warners Avenue Bondi 2026

 

Moneytech, Moneytech Services, 360 and
Mr Jason Hugo are referenced herein individually as the "Party" and collectively as the "Parties."

 

PURPOSE

 

	A. 	Moneytech holds an Australian Financial Services Licence Number 421414 ("AFSL") to carry on the business of dealing in Financial Product and providing Financial Product Advice;

 

	B. 	360 operates a business selling, purchasing and delivering currency transactions and financial services and requires authorisation from an AFSL holder;

 

	C. 	360 desires to act as an Authorised Representative of Moneytech and Moneytech has agreed to appoint 360 an Authorised Representative on the terms and conditions defined in this Agreement;

 

	D. 	Moneytech Services has agreed to provide 360 certain Facilities in order for 360 to carry out and deliver the Services.

 

	E. 	360 has nominated a Responsible Manager and Key Person in furtherance of Moneytech's AFSL on the terms of this Agreement.

 

NOW, THEREFORE, for good and valuable
consideration received and to be received, the parties hereby agree as follows:

 

AGREEMENT

 

	1. 	Definitions

 

When capitalised in this Agreement,
the following terms shall have the meaning set forth below:

 

	 	a) 	Act means the Corporations Act 2001 (Cth) and the Corporations Regulations 2001 as amended from time to time.

 

	 	b) 	AFSL means Australian Financial Services License,

 

	 	c) 	Additional Facilities means any and all facilities, services or resources provided by Moneytech to 360 for a Fee.

 

	 	d) 	Authorised Representative means a person authorized in accordance with section 916A or 916B of the Act, to provide financial service or financial services on behalf of a financial services licensee.

 

	 	e) 	Authorised Representative Agreement means the terms and conditions on which 360 is appointed an Authorised Representative of Moneytech and which are contained in Part C of this Agreement.

 

    	 

    	 

    

  

	 	f) 	Authority means the authority granted by Moneytech (licensee) to 360 (Authorised Representative) under the Authorised Representative Agreement authorising 360 to deal in Financial Products and provide Financial Product Advice in respect of the Services as an authorised representative of Moneytech pursuant to the terms and conditions defined in the Authorised Representative Agreement.

 

	 	g) 	Business Day means any day other than a Saturday, Sunday or statutory holiday in New South Wales.

 

	 	h) 	Client or Clients means a person(s) or company(ies) to whom 360 will provide the Services on behalf of Moneytech in its capacity as an Authorised Representative.

 

	 	i) 	Confidential Information means (i) non-public information which either Party learns, by whatever means, about the other Party's business in the course of performance of this Agreement; (ii) the terms and existence of this Agreement (including Schedules, Amendments and Exhibits) and the nature and details of the Parties' business relationship; and (iii) the Parties' respective product designs, business plans or processes, distribution methods, volumes, prices, costs, finances, research and development, personal suppliers, Clients or Client information.

 

	 	j) 	Completion means the completion of the appointment of 360 as an Authorised Representative of Moneytech.

 

	 	k) 	Completion Date means January 16th 2013 or any other date to which the parties mutually agree.

 

	 	1) 	Facilities means the facilities and resources provided by Moneytech Services to 360 and which include:

 

	 	(i) 	Administration and accounting support (including audit and assistance with preparation of financial reports);

 

	 	(ii) 	Four (4) fixed telephone lines, including line rental and recording;

 

	 	(iii) 	software solutions suites;

 

	 	(iv) 	customer relations management systems;

 

	 	(v) 	computer equipment;

 

	 	(vi) 	Four (4) desk spaces and use of meeting rooms within the Office Space;

 

	 	(vii) 	Professional Indemnity cover;

 

	 	(viii) 	One (1) loyalty card program and development of travel card program, where possible;

 

	 	(ix) 	Internet access;

 

	 	(x) 	Access to developers for any mutual IT development as determined in Moneytech's sole discretion and subject to a mutually agreed project plan;

 

	 	(xi) 	Kaplan training for four (4) Senior Employees;

 

	 	(xii) 	Two (2) car parking spaces within reasonable distance of the Office Space.

 

	 	(xiii) 	Maintain and develop a website and branding;

 

	 	(xiv)	 

 

In the event the Facilities are renegotiated
between the parties or additional resources are required by 360, the facilities shall be considered Additional Facilities
for the purposes of this Agreement. Any renegotiation will be notified to 360 in writing one (1) month prior to implementation.

 

	 	m) 	Fees mean the reasonable indirect and/or direct costs incurred by Moneytech Services for the provision of the Additional Facilities and which are payable by 360. Any Fees are to be notified to 360 in writing, prior to implementation.

 

	 	n) 	Financial Product has the same meaning as in the Act.

 

	 	o)	Financial Product Advice has the same meaning as in the Act.

 

	 	p)	Incentive Payments are fees payable by Moneytech to 360 for client referrals.

 

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	 	q)	Key Person means the person upon whom the Licensee is dependent upon for the Licensee's financial services business. For the purposes of this Agreement the Key Person is: Mr Jason Hugo.

 

	 	r)	Legislation means all Acts, Regulations, Codes of Practice and any relevant circular, directive, policy statement and the like issued by any government or industry body which apply to the provision of the Services.

 

	 	s) 	Office Space means the area of space allocated to 360 situate at level 6/97 Pacific Highway, North Sydney NSW 2060.

 

	 	t) 	Responsible Manager means Mr Jason Hugo. For the avoidance of doubt a reference to the Responsible Manager shall be taken to include a reference to the Key Person.

 

	 	u) 	Senior Employee means the officers and senior employees of the Authorised Representative who are responsible for providing the Financial Product Advice on behalf of Moneytech.

 

	 	v) 	Service/s means the provision of foreign exchange services to Clients, including but not limited to: selling, purchasing and delivering currency transactions. These transactions may be spot or forward transactions.

 

PART A — 360 OBLIGATIONS

 

	2. 	360 Obligations

 

	 	2.1 	360 agrees to:

 

	 	(a) 	Provide the Services subject to the authorisation defined in the Authorised Representative Agreement;

 

	 	(b) 	Develop, maintain and continue to grow a profitable foreign exchange business utilizing the Facilities;

 

	 	(c) 	Transfer to Moneytech no later than the Completion Date, 37.5% of ordinary shares in 360;

 

	 	(d) 	Appoint Mr Hugh Evans a Non Executive Director of 360, no later than the Completion Date;

 

	 	2.2	360 shall provide the Services to Clients as it determines, provided the Services are provided in a technically competent, ethical and professionally responsible manner and complies at all times with the Legislation and Authorised Representative Agreement.

 

	 	2.3	360 must disclose in writing to its Clients any fees or commissions payable to it by the Client in connection with the Services.

 

	 	2.4	360 agrees to observe all applicable Moneytech workplace policies and procedures (including, but not limited to IT Security guidelines) and obey any lawful direction given by Moneytech in so far as it concerns the Facilities and Office Space.

 

	 	2.5	360 shall obtain and maintain, at Moneytech Service's reasonable expense all permits, certifications, consents and other similar approvals necessary for the Responsible Manager to perform its obligations under this Agreement.

 

	 	2.6	360 shall obtain and maintain at Moneytech Service's reasonable expense, all permits, certifications, consents and other similar approvals necessary for 360 to provide the Services.

 

	 	2.7	For the avoidance of doubt, the ordinary shares and shareholding transferred to Moneytech shall be governed by the terms and conditions of the Shareholder Agreement. The Executive Directors of 360 shall receive a salary plus incentive based payments as a percentage of quarterly NPAT and as identified in Schedule 1 annexed hereto.

 

	 	2.8	The Directors will be reimbursed by 360 for reasonable travel, accommodation and other reasonable expenses incurred by the Directors for the purpose of and incidental to attending Board meetings.

 

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	3. 	The Responsible Manager and Key Person:

 

	 	3.1 	360 has agreed to nominate a Responsible Manager in the furtherance of Moneytech's AFSL is so far as itapplies to the Authority, the subject of this Agreement.

 

	 	3.2 	The Responsible Manager is responsible for ensuring that Moneytech complies with the Legislation andthe conditions of the AFSL. The Responsible Manager is directly responsible for decisions regarding the provision of financial services by the Licensee in so far as they concern the Services.

 

	 	3.3 	The Responsible Manager is accountable to ASIC in the event the Moneytech is not meeting its licensingobligations.

 

	 	3.4 	The Responsible Manager is subject to the terms and conditions of this Agreement and the AuthorisedRepresentative Agreement.

 

	 	3.5 	The Responsible Manager must, on no less than six (6) months prior written notice to Moncytech, advisehis/her intention to resign from the position of Responsible Manager. The Responsible Manager acknowledges Moneytech requires reasonable time in which to elect another Responsible Manager capable of satisfying all the requirements prescribed by the Legislation and that the notice period is commensurate with this.

 

	 	3.6 	The Responsible Manager must, on no less than one (1) months prior written notice to Moneytech, advisehis/her intention to take annual leave so that Moneytech can ensure business continuity in the absence of the Responsible Manager.

 

	 	3.7 	Act competently and honestly and in accordance with Moneytech's reasonable directions and the AFSLCompliance Manual.

 

	 	3.8	Termination of the Responsible Manager in accordance with Clause 25 shall result in an automatic termination of the Authorised Representative Agreement and this Agreement.

 

	 	3.9	The Responsible Manager indemnifies and keeps indemnified Moneytech and Moneytech Services against any and all claim, loss, cost or expense suffered or incurred, howsoever caused or arising out of or flowing from, in connection with, in respect of, or incidental to:

 

	 	(a) 	the obligations of the Authorised Representative under the Authorised Representative Agreement, the Authority or the Act or related Legislation;

 

	 	(b) 	The obligations of the Responsible Manager under this Agreement, the Authorised Representative Agreement, the Authority or the Act or related Legislation.

 

	 	3.10	The indemnity provided in Clause 3.9 shall not apply to the extent it is caused by Moneytech Services and/or Moneytech's negligent acts or omissions.

 

	4. 	Conditions precedent to Completion

 

	 	4.1	The partiesacknowledge and agree that Completion is conditional upon and subject to:

 

	 	(a) 	360 transferring to Moneytech, 37.5% of ordinary shares in 360;

 

	 	(b) 	Mr Hugh Evans being appointed a Non Executive Director of 360;

 

	 	(c) 	Mr Jason Hugo being approved as a Key Person on Moneytech's AFSL.

 

	 	4.2 	The parties must use their best endeavours to satisfy the Conditions Precedent in Clause 4.1 on or beforethe Completion Date. For the avoidance of doubt, each party shall hear their own costs in achieving the Conditions Precedent.

 

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	 	4.3 	If the Conditions Precedent are not satisfied on or before the Completion Date, the parties may:

 

	 	(a) 	nominated an alternate Completion Date in writing; or

 

	 	(b) 	terminate this Agreement by notice in writing.

 

	 	4.4 	Upon termination:

 

	 	(a)	Accrued rights and remedies of a party are not affected; and

 

	 	(b)	Subject to paragraph (a), this Agreement will be of no further effect and neither party will have any further obligations to the other party.

 

PART B (1) — MONEYTECH'S
OBLIGATIONS

 

	5.	Moneytech Obligations

 

	 	5.1 	Moneytech warrants and agrees to:

 

	 	(a)	Appoint 360 an Authorised Representative on the terms and conditions identified in the Authorised Representative Agreement.

 

PART B (2) — MONEYTECH SERVICES'
OBLIGATIONS

 

Moneytech Services' Obligations

 

	 	5.2 	Moneytech Services warrants and agrees to:

 

	 	(a) 	Provide to 360 the Facilities and Office Space;

 

	 	(b) 	Provide to 360 (as and when required), the Additional Facilities:

 

	 	(c) 	Make Incentive Payments in accordance with Clause 6;

 

	 	(d) 	Give 360 first right of refusal to existing FX business;

 

	 	(e) 	establish and secure significant trading lines with at least two (2) major banks to cater for FX spot, forward and derivative contracts; 

 

	 	(f)	Provide banking facilities and systems to enable 360 to access the abovementioned trading lines;

 

	 	(g)	Manage payroll on behalf of 360.

 

	 	5.3 	Moneytech agrees to provide 360 with a line of credit (the "Line of Credit") on the following terms and conditions:

 

	 	(a) 	That Moneytech hereby agrees to make advances to 360 from time to time, not to exceed at any time the aggregate principal amount of AUD$50,000.00, the proceeds of which shall be used to repay existing indebtedness of 360 and for general business purposes;

 

	 	(b) 	360 may during the, term of the Line of Credit borrow, partially or wholly repay its outstanding borrowings and re-borrow, provided that the total outstanding borrowings under the Line of Credit shall not exceed the maximum principal amount of AUD$50,000;

 

	 	(c) 	The outstanding principal balance of the Line of Credit shall bear interest at a rate per annum of 8%

 

	 	(d) 	As security for the Line of Credit the Responsible Manager shall provide a personal guarantee and indemnity in favour of Moneytech Finance Pty Limited the ("Guarantee and Indemnity").

 

	 	5.4 	The occurrence of any of the following shall constitute an Event of Default under the terms of the Line ofCredit:

 

	 	(a) 	360 fails to make its minimum monthly payment when due and payable;

 

	 	(b) 	360 becomes insolvent or consents to or applies for the appointment of a receiver, trustee, custodian or liquidator of itself of any of its property, or shall generally fail to pay its debts as they become due, or shall make a general assignment for the benefit of creditors or files for bankruptcy;

 

	 	(c) 	There exists any event or condition which Moneytech in good faith believes to be an adverse change in the business, operations, financial conditions, assets or liabilities of 360 which materially impacts the ability of 360 to make repayments on the Line of Credit.

 

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	 	5.5 	Upon the occurrence of any Event of Default any and all indebtdedness of 360 to Moneytech (includingbut not limited to: interest, fees and charges and legal fees incurred in connection with this Clause 5) shall without notice become immediately due and payable in full. Moneytech shall have all rights, powers and remedies available under the terms of this Clause 5, or accorded by law, including the right to resort to the terms of the Guarantee and Indemnity.

 

	6.	Incentive Payments.

 

	 	6.1 	The parties agree to establish a client referral program whereby 360 refers to Moneytech, Clients seeking cash flow and finance solutions generally. 360 must ensure at all times that there is a 'reasonable basis' for any product recommendations being made to Client.

 

	 	6.2 	Moneytech Services has agreed to make Incentive Payments to 360 for the referral of Clients and which shall be defined in the Commission Schedule annexed hereto and marked Schedule 2.

 

	 	6.3 	Moneytech Services agrees to pay the Incentive Payments, on a quarterly basis. In the event of a payment dispute the parties shall refer to the Dispute Resolution provision.

 

PART C — AUTHORISED REPRESENTATIVE AGREEMENT

 

This Part C will take effect on the Completion Date.

 

Except as defined below or otherwise required by the context
herein, all capitalised terms used in this Part C have the meanings assigned to them in the Agreement.

 

For the purposesof this Part C:

 

	 	·	"Licensee" means Moneytech Limited;

 

	 	·	"Authorised Representative" means 360 Pty Limited.

 

	7.	Appointment

 

	 	7.1	Licensee appoints Authorised Representative to act as its Authorised Representative and the Authorised Representative accepts the appointment on the terms and conditions set out in this Part C.

 

	 	7.2 	The only relationship between the Licensee and the Authorised Representative is of principal and agentfor the provision of Services by the Authorised Representative.

 

	 	7.3 	The Authorised Representative is not in any way a joint venturer, partner or employee of the Licensee andthe Licensee is not the employer of any employees, officers, agents or subcontractors of the Authorised Representative.

 

	 	7.4	The Authorised Representative is not to do anything in conjunction with the provision of the Services which is not within the scope of the Authority.

 

	8.	Authority

 

	 	8.1 	The Authorised Representative is authorised, subject to any limitations contained in the Licensee's AFSLand to limitations imposed on the Authorised Representative by the Licensee to:

 

	 	a) 	Provide the Services and Financial Product Advice to Clients; and

 

	 	b) 	Provide such other services as the Licensee may approve in writing from time to time.

 

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	9. 	Independent contractor

 

	 	9.1 	The Licensee is not liable for any expenses incurred by the Authorised Representative or its employees,officers, agents or subcontractors in providing the Services. The Authorised Representative must reimburse any of its employees, officers, agents or subcontractors for any reasonable costs incurred in connection with providing the Services.

 

	 	9.2 	The parties acknowledge and agree that:

 

	 	a) 	Fees, Incentive Payments and other remuneration or the Line of Credit paid by the Licensee to the Authorised Representative under this Agreement are not wages or salary.

 

	 	b) 	Neither the Authorised Representative nor any employees, officers, agents or subcontractors of the Authorised Representative are entitled to payment from the Licensee of any annual leave, annual leave loading, personal leave, severance pay, long service leave or any other entitlement to which an employee of any of them may be entitled.

 

	 	c) 	The Authorised Representative accepts full responsibility for the payment of income, profit and salary tax payable in respect of itself and of its employees (including any payments to them relating to the performance of the Services).

 

	 	d) 	The Authorised Representative must make any taxation or other deductions required by law in respect of itself and any of its employees (including any payments relating to the performance of the Services).

 

	 	e) 	The Authorised Representative accepts full responsibility for providing superannuation, salary continuance and workers compensation insurance in respect of itself and any of its employees (including any payments relating to the performance of the Services).

 

	 	f) 	The Authorised Representative is registered for GST.

 

	 	9.3	The Authorised Representative must provide the Licensee with four (4) weeks written notice of any annual leave to be taken by Senior Employee/s.

 

	 	9.4 	The parties agree to act fairly, reasonably and ethically in their dealings with one another.

 

	10.	Authorised Representative's Obligations

 

	 	10.1	At all times during the term of this Agreement, Authorised Representative must:

 

	 	a) 	act in a manner consistent with the obligations imposed on an Authorised Representative by the Act, all other relevant laws and within the scope of the Authority granted to Authorised Representative under the Authorised Representative Agreement;

 

	 	b) 	provide the Services in accordance with the Authorised Representative Agreement and AFSL Compliance Manual;

 

	 	c) 	comply with any lawful direction imposed by Licensee in respect to Authorised Representative's role as Authorised Representative;

 

	 	d) 	provide to Licensee such information as is reasonably necessary for Licensee to ascertain whether Authorised Representative is complying its obligations under this Agreement;

 

	 	e) 	comply with standards of ethical conduct and professional competence required by Licensee from time to time;

 

	 	f) 	act efficiently, honestly and fairly and not do or omit to do anything, which would or could potentially cause Licensee to breach the terms of its AFSL; and

 

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	 	g) 	observe and comply with the provisions of the AFSL Compliance Manual and all reasonable directions, work practices and policies of Licensee as it requires from time to time.

 

	 	h) 	Disclose that the Authorised Representative is a representative of the Licensee in all communications whether written or oral relating in any way to the Licensee's business or Licensee or the Authorised Representative's duties under this Part C.

 

	 	i)	With respect to the provision of any Financial Product Advice comply with the Act and in particular:

 

	 	(i) 	At all times take reasonable steps to ascertain the particular objectives, financial situation and needs of the Client;

 

	 	(ii) 	Give such consideration to and conduct such investigation of the subject matter of the relevant Financial Product as is reasonable in the circumstances;

 

	 	(iii) 	Always have a reasonable basis for providing any Financial Product Advice to a Client or dealing in any Financial Product for or on behalf of a Client.

 

	 	10.2	The Authorised Representative warrants that the Authorised Representative:

 

	 	a) 	is skilled in the business of providing the Services;

 

	 	b) 	has the experience required to perform the obligations required of it pursuant to this Agreement and to deal in Financial Products and provide Financial Product Advice in respect of the Services;

 

	 	c) 	has never held a dealer's licence, investment adviser's license or an authorisation which was subsequently canceller or suspended;

 

	 	d) 	has never been convicted of an indictable offence or found guilty of fraud;

 

	 	e) 	has never been the subject of an enforcement investigation by a Government authority responsible for enforcing the Legislation.

 

	 	10.3	The Authorised Representative must immediately notify the Licensee in writing if any of the warranties in Clause 10.2, cease to be true during the terms of this Agreement.

 

	 	10.4	The Authorised Representative must maintain proper business records with respect to the conduct of the Authorised Representative's business as a representative of the Licensee and permit the Licensee to inspect such records during office hours and upon the Licensee giving three (3) Business Days' written notice to the Authorised Representative.

 

	 	10.5	At all time during the term of this Agreement, Authorised Representative must not:

 

	 	a) 	assign, subcontract or otherwise dispose of any right, interest or obligation under this Agreement;

 

	 	b) 	make any representations or give any warranties on behalf of Licensee except with the prior approval of Licensee;

 

	 	c) 	breach the anti-hawking provisions of the Act which apply to unsolicited meetings with another person; or

 

	 	d) 	undertake the giving of Financial Product Advice which is inconsistent with the contents of any Product Disclosure Statement relating to that Financial Product;

 

	 	e) 	purport to bind or contract for or on behalf of Licensee in any way whatsoever and in particular by written or oral conduct purport to enter into contracts on behalf of Licensee except in accordance with this Agreement, or the written direction of Licensee;

 

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	 	f) 	act as a representative of any other AFSL, during the course of this Authorised Representative Agreement, without the prior written consent of the Licensee;

 

	 	g) 	issue any advertising, promotional or marketing material or public statements of any kind with respect to the Licensee or Licensee's business or with respect to the Authorised Representative's business, unless the format of such material has first been approved in writing by Licensee;

 

	 	h) 	act in any manner so as to bring the reputation or character of Licensee or any of its officers, employees, representatives or Associates into disrepute.

 

	11. 	Compliance with the Corporations Act

 

	 	11.1	Licensee agrees to work with the Authorised Representative to develop a Financial Services Guide ("FSG") and similar documents as required by the Act and Legislation and regulations.

 

	 	11.2	The Authorised Representative agrees to do all things reasonably required to give effect to this Agreement and to comply with the Act and Legislation concerning the Services.

 

	 	11.3	The Authorised Representative acknowledges that the Licensee (at its expense) is required to conduct a compliance audit each year and on certain other occasions as determined by the Licensee.

 

	12. 	Autonomy of authorised representative

 

	 	12.1	Subject to Clauses 12.2 to 115, the Authorised Representative shall have complete control of the day to day conduct of his/her practice and the Licensee's role shall be limited to matters it is required to handle pursuant to the terms and conditions of its AFSL or the Legislation.

 

	 	12.2	The Authorised Representative must observe all written directions from the Licensee concerning the procedures to be followed in providing the Services to comply with the Legislation. This includes, but is not limited to:

 

	 	a) 	The content, format and scope of advice and recommendations provided to Clients concerning the Services.

 

	 	b) 	The content, format and scope of communication with ASIC and other government organisations concerning the Services and any matter relevant to this Agreement;

 

	 	c) 	The Licensee's FSG.

 

	 	12.3	The Representative must observe the Client complaints resolution procedures set out by the Licensee.

 

	 	12.4	The Licensee shall not contact the Authorised Representatives client's in respect of any matter except as is necessary to give effect to this Agreement or to comply with Legislation or the AFSL.

 

	 	12.5	The Licensee shall assist the Authorised Representative in marketing the Services to Client(s) as requested and agreed.

 

	13.	Client Monies

 

	 	13.1	The Authorised Representative must ensure that all monies payable to the Licensee and collected by the Authorised Representative from Clients must be collected by way of cheque, direct debit, transfer or money order payable to Moneytech to whom the monies are payable or in such other manners as Licensee approves in writing from time to time.

 

	 	13.2	All monies collected in accordance with Clause 13.1 must be remitted to the Licensee immediately following receipt by the Authorised Representative.

 

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	 	13.3	In the event that the Authorised Representative collects any monies due or payable to a Client, whether in respect of a claim, refund of fees, rebate of commission or otherwise, the Authorised Representative must:

 

	 	a) 	Keep true and proper accounts of all such monies collects;

 

	 	b) 	Pay or remit all such monies to the Client immediately without deduction;

 

	 	c) 	Not retain any portion thereof by way of set-off or otherwise.

 

	14.	Training

 

	 	14.1	The Authorised Representative agrees and acknowledges that it shall access its own technical training and information services to allow it to provide the Services and to discharge its obligations under this Agreement, including, but not limited to maintaining all competencies and qualifications necessary to practice as a Foreign Exchange provider, dealer and advisor under the Act and Legislation. Moneytech Services has agreed to incur all reasonable expenses in this regard, providing it has provided its prior consent to the relevant invoice/charge.

 

	 	14.2	Upon receipt of notice from Licensee, Authorised Representative must and must cause each of its Senior Employees to attend a training program provided by Licensee. Such notice will contain the following details:

 

	 	a) 	the reasonable cost of the training program;

 

	 	b) 	the location(s) where the training is to be undertaken;

 

	 	c) 	the times and dates for the training program; and

 

	 	d) 	if relevant, the names of persons required to attend the training program.

 

	 	14.3	The parties agree to consult each other in respect of any required training to minimise cost and inconvenience to both parties.

 

	15.	Transfer of Business

 

	 	15.1	The Authorised Representative may transfer all or part of the Authorised Representative's business to any third party ("Purchaser") on such terms and conditions agreed between the Authorised Representative and the Purchaser provided:

 

	 	a) 	The Authorised Representative provides not less than three (3) months notice to the Licensee of its intention to transfer its business and provides the Licensee with such detail in respect of the Purchaser as the Licensee may reasonably require in order to evaluate the suitability of the Purchaser to be granted an Authority by the Licensee;

 

	 	b) 	Licensee agrees, such agreement to be in its absolute discretion, to issue to the Purchaser an Authority or the Purchaser holds a valid Authority issued by Licensee; and

 

	 	c) 	If the Licensee grants an Authority, that the Purchaser enters an agreement in substantially similar terms to Part C of this Agreement.

 

	 	15.2	Each of the Licensee and Authorised Representative will do all things necessary to effect the transfer of the Authorised Representative's business in accordance with this Clause 15, including provision of a letter of release by the Authorised Representative, provided all reasonable costs associated with such transfer will be borne by the Authorised Representative.

 

	16.	Indemnity

 

	 	16.1	The Authorised Representative indemnifies and keeps indemnified the Licensee against any and all claim, loss or expense suffered or incurred, howsoever caused or arising out of or flowing from, in connection with, in respect of or incidental to any breach of the obligations of the Authorised Representative under this Authorised Representative Agreement, the Authority or the Act or related Legislation.

 

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	17. 	Interim Suspension

 

	 	17.1	The Licensee retains the right to suspend the Authorised Representative's Authority for 72 hours upon receipt or notification of any complaint against the Authorised Representative or its employees alleging serious misconduct or any breach of the terms of the Authorised Representative Agreement.

 

	 	17.2	Upon receipt of any complaint referred to in clause 17.1, the Licensee must undertake a full investigation into such complaint and during such investigation the Authorised Representative must cooperate with the Licensee.

 

	18. 	Termination

 

	 	18.1	Termination of the Agreement, pursuant to Clause 25, automatically terminates the Authorised Representative's appointment as an Authorised Representative.

 

PART D — GENERAL TERMS

 

	19. 	Fees and Payment Terms

 

	 	19.1	Fees. Moneytech Services shall invoice 360 monthly in arrears for all Fees payable. Moneytech Services may deliver invoices to 360 electronically.

 

	 	19.2	Payment.
    Any sum due Moneytech Services pursuant to this Agreement shall be payable within thirty (30) days from the date of invoice
    thereof. If 360 has a good faith dispute with respect to an invoiced amount, it shall pay the undisputed amount of the invoice
    and notify Moneytech Services of the disputed amount and the reasons for such dispute within seven (7) days from the invoice
    date. The Parties will use their best efforts to resolve any such dispute within twenty (20) days thereafter.
	 	 	 
	 	19.3	Taxes.
    360 acknowledges and agrees that all fees, charges and any other rates or amounts charged by Moneytech Services to 360 hereunder
    area exclusive of applicable value added, sales/use or goods and service taxes ("Taxes") which may be levied in
    connection with the supply by Moneytech Services of the Additional Facilities to 360. 360 shall pay all Taxes arising in respect
    of the fees, charges or other amounts charged by Moneytech Services to 360 hereunder. For greater certainty, Taxes do not
    include, and 360 shall have no obligation in respect of, any excise tax, customs duties, or tax on the income or capital of
    Moneytech Services or taxes paid or payable. on supplies and other consumables used by Moneytech Services in the course of
    providing the Additional Facilities.
	 	 	 

	 	19.4	Except as otherwise provided in this Agreement, each party must pay its own costs and expenses in connection with the negotiation, preparation, execution and performance of this Agreement and other preceding and ancillary documents.

 

	 	19.5	Each party will be responsible for paying its own stamp duty (including fines, penalties and interest) in connection with or arising out of this Agreement and anything done or to be done under this Agreement.

 

	20. 	Confidential Information.

 

	 	20.1	General. Either party may disclose to the other certain information in connection with its performance hereunder which it deems to be Confidential Information. For the purposes of this Clause 20.1 ‘Recipient’ means the party 'receiving' the Confidential Information and 'Owner' the party 'owning' such Confidential Information.

 

‘Confidential Information’  includes
but is not necessarily limited to the following, whether or not in material form:

 

	 	a) 	any information (in any form) howsoever disclosed by Owner to Recipient including, but not limited to, technical, market, business or financial information, trade secrets, know-how, methodologies, techniques, principles or processes, source and object codes, business and marketing plans, projections, databases, computer programs, designs, arrangements with other entities, 360, Client or project information, 360 or Client lists or contacts, concepts not reduced to material form, industry knowledge know-how and data gathered, features or functionality of any product, the appearance, ergonomics or user interface for any product, product development plans, concepts or timescales, designs, plans, drawings, models, any invention or discovery or any provisional or complete patent application, any unregistered or registered trademarks, applications for trademark registration or similar rights and any registered design, application for design registration or similar rights;

 

	2013 Agreement - Confidential	Page 11 of 20	© Moneytech Limited

 

    	 

    	 

    

 

	 	b) 	any documents prepared by Owner based on or incorporating any such information; and

 

	 	c) 	all copies of the information and other records referred to in any of paragraphs (a) and (b).

 

	 	20.2	Recipient shall undertake to:

 

	 	a) 	use Confidential Information solely for the Services;

 

	 	b) 	keep confidential all Confidential Information.

 

	 	20.3	Disclosure. For a period of two (2) years from the date of disclosure Recipient shall not disclose any Confidential Information it receives from Owner to any person, firm or corporation except: (i) employees of Recipient and its affiliated companies who have a need to know and who have been informed of Recipient's obligation hereunder; (ii) contractors or consultants under contract to Recipient who have a need to know, who have been informed of Recipient's obligations hereunder, and who have agreed in writing not to disclose Confidential Information for a period not shorter than the nondisclosure period provided above; and (iii) as provided in subparagraph 20.4 below. Recipient shall use the same degree of care, but in no case less than reasonable care, to avoid disclosure of such Confidential Information as Recipient uses with respect to its own Confidential Information of like importance.

 

	 	20.4	Exceptions. Information shall not be deemed confidential or proprietary for purposes of this Agreement, and Recipient shall have no obligation with respect to any such information, which: (i) is already known to Recipient at the time of its disclosure; (ii) is or becomes publicly known through no wrongful act of Recipient; (iii) is received from a third party without similar restrictions and without breach of this Agreement; (iv) is independently developed by Recipient; or (v) is lawfully required to be disclosed to any government agency or is otherwise required to be disclosed by law.

 

	 	20.5	Publicity. 360 will not announce the execution of this Agreement or advertise or promote any aspect of the Services performed hereunder without the express prior written consent of Moneytech, which consent shall not be unreasonably withheld.

 

	 	20.6	Termination.
    Each Party's rights and obligations under this section shall survive any termination of this Agreement by either Party for a
    period of two (2) years.

 

	21.	Intellectual Property of the Parties

 

	 	21.1	All trade marks, brand names, logos and other intellectual property rights of whatsoever nature (including, but not limited to designs, patents and copyright) (collectively referred to as the "Intellectual Property"), whether registered or not, owned by or licensed to Moneytech and/or Moneytech Services shall remain the property of Moneytech and/or Moneytech Services and/or the third party licensor. 360 shall not receive any rights of whatsoever nature in and to the Intellectual Property and warrants that it shall not attempt to register any form of right, title and/or interest in and to any of the Intellectual Property and shall forthwith refrain from using any or all of the Intellectual Property (as contained in the Documents or otherwise) upon Moneytech and/or Moneytech Services' instruction,

 

	 	21.2	All trade marks, brand names, logos and other intellectual property rights of whatsoever nature (including, but not limited to designs, patents and copyright) (collectively referred to as the "Intellectual Property"), whether registered or not, owned by or licensed to 360 shall remain the property of 360 and/or the third party licensor. Moneytech shall not receive any rights of whatsoever nature in and to the Intellectual Property and warrants that it shall not attempt to register any form of right, title and/or interest in and to any of the Intellectual Property and shall forthwith refrain from using any or all of the Intellectual Property (as contained in the Documents or otherwise) upon 360's instruction.

 

	2013 Agreement - Confidential	Page 12 of 20	© Moneytech Limited

 

    	 

    	 

    

 

	22. 	Insurance

 

	 	22.1	360 will, at its sole cost, maintain adequate public liability insurance (of not less than $10,000,000.00) in full force and effect during the entire term of this Agreement with reputable insurance companies and provide certificates of currency to Moneytech on request.

 

	23. 	Indemnification.

 

	 	23.1	360 will indemnify, defend, and hold Moneytech and Moneytech Services and its officers, directors and employees, harmless from and against any and all claims and liabilities (including costs of defense, settlement, and reasonable solicitors fees) that arise from third party claims to the extent attributable to (a) bodily injury or death or damage to tangible personal property caused by any act, omission, negligence or wilful misconduct of 360 or its employees or agents; or (b) violations of any commonwealth or state law, statute, regulation, rule, ordinance, order, or government directive by 360 or any person engaged by 360 to perform the Services (c) any breach of the terms of this Agreement or Authorised Representative Agreement.

 

	 	23.2	The indemnity provided in Clause 20.1 shall not apply to the extent it is caused by Moneytech Services and/or Moneytcch's negligent acts or omissions.

 

	24.	Limitation of Liability

 

	 	24.1	In no event shall either party be liable to the other or any other part for indirect, special or consequential loss or damage, including, but not limited to, loss of good will, loss of anticipation of profits or other economic loss arising out of or in connection with a party's breach of, or failure to perform in accordance with the Agreement, or the Facilities or Office Space or use or performance or information provided hereunder, even if notification has been given to the possibility of such damages.

 

	 	24.2	Where permitted by law, in no event shall Moneytech and/or Moneytech Services be liable to 360, or 360's clients or any other party for loss, damage, or injury of any kind or nature arising out of or in connection with these terms and conditions, or any agreement into which they are incorporated, or any performance or non-performance under these terms and conditions by Moneytech and/or Moneytech Services, its employees, agents or subcontractors, in excess of the net Fee actually delivered to and paid for by 360 hereunder in the 6 months preceding the claim.

 

	25. 	Term and Termination

 

	 	25.1	Term. The initial term of the Agreement shall be for three (3) year commencing on the Effective Date. Thereafter, the Agreement will automatically renew for successive one (1) year terms. The foregoing is subject to the right of either Party to terminate the Agreement as permitted below.

 

	 	25.2	Termination for Cause. Except as provided below by the section of this Agreement titled "Termination for Non-Payment" in the event that either Party materially or repeatedly defaults in the performance of any of its duties or set forth in this Agreement, and such default is not substantially cured within twenty (20) days after written notice is given to the defaulting party specifying the default, then the party not in default may, by giving written notice thereof to the defaulting party, terminate the Agreement as of a date specified in such notice of termination.

 

	 	25.3	Moneytech may immediately terminate this Agreement on written notice, upon the happening of any one or more of the following events:

 

	 	a)	360 or the Responsible Manager is involved in, or Moneytech in its absolute discretion suspects 360 or the Responsible Manager is involved in, any unauthorised or illegal act, fraud or dishonesty;

 

	2013 Agreement - Confidential	Page 13 of 20	© Moneytech Limited

 

    	 

    	 

    

  

	 	b) 	360 as an Authorised Representative or the Responsible Manager breaches any term of the Authorised Representative Agreement, the Agreement or Authority;

 

	 	c) 	360 or the Responsible Manager is subject to any banning order or disqualification pursuant to the Legislation.

 

	 	25.4	Termination for Insolvency. Bankruptcy. Either Party may immediately terminate this Agreement by giving written notice to the other Party in the event of (i) the liquidation or insolvency of the other Party, (ii) the appointment of a receiver or similar officer for the other Party, (iii) an assignment by the other Party for the benefit of all or substantially all of its creditors, (iv) entry by the other Party into an agreement for the composition, extension, or readjustment of all or substantially all of its obligations, or (v) the filing of a meritorious petition in bankruptcy by or against the other Party under any bankruptcy or debtor law for its relief or reorganisation.

 

	 	25.5	Termination for Convenience. Subject to Clause 25.4, either Party shall have the right to terminate this Agreement upon ninety (90) days prior written notice to the other Party.

 

	 	25.6	Upon Termination. Immediately upon the termination date, 360 shall:

 

	 	a) 	pay Moneytech Services all amounts outstanding for the Additional Facilities;

 

	 	b) 	return any written Authorised Representative Authority to Moneytech within seven (7) days of receiving a written demand to do so.

 

	26.	Restraint

 

	 	26.1	In the event of termination of this Agreement in accordance with Clauses 25.2 and 25.3, 360 will not, at any time during a period of six (6) months from the date of termination:

 

	 	a) 	Either solely or jointly with any other person (whether as principal, agent, employee, director, shareholder, partner consultant or otherwise) directly or indirectly consult with or advise any person, firm, company or trust who, or which, was a Client;

 

	 	b) 	Either solely or jointly with any other person (whether as principal, agent, employee, director, shareholder, partner consultant or otherwise) directly or indirectly engage in any business of rendering any services to any person with whom 360 had any contact or dealing with during the course of the Agreement and who was at any time during the term of the Agreement, a Client.

 

	 	c) 	For the avoidance of doubt this Clause 26.1 survives termination.

 

	 	26.2	In the event of termination of this Agreement in accordance with Clause 25.5, 360 is at liberty to send clients it has directly sourced, a communication advising of their separation from Moneytech providing the content of such communication is first approved by Moneytech. For the avoidance of doubt, Moneytech is also permitted to send such similar communication to clients advising of the separation.

 

	27.	Dispute Resolution

 

	 	27.1	For any dispute which arises under this Agreement and which cannot be resolved by the parties during the normal course of business, the parties shall attempt in good faith to resolve claim(s) or dispute(s) of whatever nature arising out of or relating to this Agreement or the performance, breach, termination, enforceability or validity thereof ("dispute") promptly by negotiation between the companies executives who have authority to settle the dispute, and who are a higher level of management than those persons who have direct responsibility for the day to day performance of this Agreement. If, after the executives have negotiated in good faith to resolve the dispute then either or both parties may proceed to seek relief from the courts.

 

	 	27.2	Nothing in this clause 27 restricts either party form seeking interlocutory relief in the Courts.

 

	2013 Agreement - Confidential	Page 14 of 20	© Moneytech Limited

 

    	 

    	 

    

 

	28. 	Binding Nature, Assignment, and Subcontracting. 360 shall not assign, directly or indirectly, all or part of its rights or obligations under this Agreement without the prior written consent of Moneytech, which consent shall not be unreasonably withheld or delayed.

 

	29. 	Counterparts. This Agreement may be executed in several counterparts, all of which taken together shall constitute one single agreement between the Parties.

 

	30. 	Headings. The Section headings used in this Agreement are for reference and convenience only and shall not enter into the interpretation hereof.

 

	31. 	Relationship of Parties. The parties agree each party to this Agreement shall perform its duties as an independent contractor and not as an agent, employee, partner or joint venture partner of the other party. Neither party will have the authority to bind or commit the other party in any manner whatsoever and will not, at any time, hold itself out to third parties as having authority to enter into or incur any commitments, expenses, liabilities or obligations of any nature on behalf of the other party, except as specifically described in this Agreement.

 

	32. 	Compliance with Laws. Each Party and all persons furnished by such Party shall comply at their own expense with all applicable federal and state laws, ordinances, regulations and codes, including the identification and procurement of required permits, certificates, licenses, insurance, approvals and audits in performance of this Agreement.

 

	33. 	Media Releases. Except for any announcement intended solely for internal distribution by either Party or any disclosure required by legal, accounting, or regulatory requirements, all media releases, public announcements, or public disclosures (including, but not limited to, promotional or marketing material) by either party or its employees or agents relating to this Agreement or its subject matter, or including the name, trade name, trade mark, or symbol of the other Party or any affiliate of that Party, shall be coordinated with and approved in writing by the other Party prior to the release thereof.

 

	34. 	Force Majeure. Neither Party will be held in breach of this Agreement for a delay or failure to perform (excluding payment obligations hereunder) if and to the extent such delay or failure to perform under this Agreement is due to an Act of God or the public enemy, labour disorder, civil commotion, closing of public highways, government interference, government regulations, or any similar event or occurrence beyond the reasonable control of the affected Party.

 

	35. 	Notices. Except as otherwise specified in this Agreement, all notices, requests, demands and other communications given hereunder shall be in writing and shall be deemed to have been duly given: (i) on the date of delivery, if delivered personally or by messenger, or (ii) on the first Business Day following the date of timely deposit with a nationally recognized overnight courier service, if sent by such courier specifying next day delivery; provided, however, that a notice of change of address shall not be deemed to have been given until actually received by the addressee. All such notices, requests, demands and other communications shall be directed to the addresses set forth below or to such other address(es) as any Party hereto may designate to the other Party hereto by like notice:

 

If to Moneytech or Moneytech Services:

Moneytech Limited

PO BOX 2015

North Sydney NSW 2059

Attn: Managing Director

 

If to 360:

360

Level 6/97 Pacific Highway 

North Sydney NSW 2060

Attn: Managing Director

 

	2013 Agreement - Confidential	Page 15 of 20	© Moneytech Limited

 

    	 

    	 

    

  

Either Party may from time to time change
its address for notification purposes by giving the other Party written notice of the new address and the date upon which it will
become effective; first class, postage prepaid, mail shall be acceptable for provision of change of address notices.

 

	36. 	Severability. If, but only to the extent that, any provision of this Agreement is declared or found to be illegal, unenforceable, or void, then both Parties shall be relieved of all obligations arising under such provision, it being the intent and agreement of the Parties that this Agreement shall be deemed amended by modifying such provision to the extent necessary to make it legal and enforceable while preserving its intent. If that is not possible, another provision that is legal and enforceable and achieves the same objective shall be substituted. If the remainder of this Agreement is not affected by such declaration or finding and is capable of substantial performance, then the remainder shall be enforced to the extent permitted by law.

 

	37. 	Waiver. An effective waiver under this Agreement must be in writing and signed by the Party waiving its right. A waiver by either Party of any instance of the other Party's noncompliance with any obligation or responsibility under this Agreement will not be deemed a waiver of subsequent or other prior instances of noncompliance.

 

	38. 	Remedies. All remedies set forth in this Agreement or available by law or equity, shall be cumulative and not alternative, and may be enforced concurrently or from dine to time.

 

	39. 	Survival of Terms. It is agreed that certain obligations of the Parties under this Agreement, which, by their nature would continue beyond the termination, cancellation, or expiration of this Agreement, shall survive termination, cancellation or expiration of this Agreement.

 

	40. 	Attachments and Exhibits. All Schedules referenced in this Agreement or attached to this Agreement are an integral part of this Agreement. In the event of any conflict between the terms and conditions of any Schedules and this Agreement, the terms of this Agreement shall prevail unless otherwise agreed to in writing by authorised representatives of the Parties.

 

	41. 	Governing Law. These terms and conditions (and any agreement into which they are incorporated) shall be construed, interpreted and enforced under and in accordance with the laws of New South Wales and the parties agree to submit to the exclusive jurisdiction of the courts of that State.

 

	42. 	Entire Agreement. This Agreement constitutes the entire and exclusive statement of the agreement between the Parties with respect to its subject matter and there are no oral or written representations, understandings or agreements relating to this Agreement, which are not fully expressed in the Agreement. This Agreement shall not be amended except by a written agreement signed by both Parties authorised signatories.

 

	43. 	Authorised Representatives. Either party's authorised representative for execution of this Agreement or any amendment hereto shall be a director, a company secretary, or a duly authorised director or representative of the respective party. The parties executing this Agreement warrant that they have the requisite authority to do so.

 

	2013 Agreement - Confidential	Page 16 of 20	© Moneytech Limited

 

    	 

    	 

    

 

IN WITNESS WHEREOF, the parties hereunto
have executed this Agreement.

 

	SIGNED by 360 Markets Pty Limited in	)	 
	accordance with s.127 (1) of the Corporations Act.	)	 
	 	)	 
	 	)	 
	 	 	 
	/s/ Jason B Hugo	 	 
	Signature of Director	 	Signature of Director
	 	 	 
	Jason B Hugo	 	 
	Name of Director (print)	 	Name of Director (print)
	 	 	 
	SIGNED by Moneytech Limited in accordance with	)  	 
	s.127 (1) of the Corporations Act.	)	 
	 	)  	 
	 	)	 
	 	 	 
	/s/ Mark Cameron	 	/s/ Hugh Evans
	Signature of Director	 	Signature of Director / Secretary
	 	 	 
	Mark Cameron	 	Hugh Evans
	Name of Director (print)	 	Name of Director (print)
	 	 	 
	SIGNED by Moneytech Services Pty Limited in	)  	 
	accordance with  s.127 (1) of the Corporations Act.	)	 
	 	)	 
	 	)	 
	 	 	 
	/s/ Mark Cameron	 	/s/ Hugh Evans
	Signature of Director	 	Signature of Director / Secretary
	 	 	 
	Mark Cameron	 	Hugh Evans
	Name of Director (print)	 	Name of Director (print)

 

	2013 Agreement - Confidential	Page 17 of 20	© Moneytech Limited

 

    	 

    	 

    

  

	SIGNED by Mr Jason Hugo	)	 
	 	)	 
	 	)	 
	 	)	 
	 	 	 
	/s/ Jason B Hugo	 	/s/ Alasdair Wells
	Signature	 	Signature of Witness
	 	 	 
	Jason B Hugo	 	Alasdair Wells
	Name (print)	 	Name of Witness (print)

 

	2013 Agreement - Confidential	Page 18 of 20	© Moneytech Limited

 

    	 

    	 

    

 

SCHEDULE 1

Director's Remuneration Schedule

 

	Executive Director	 	Salary Base	 	Quarterly NPAT	 	Incentive Matrix	 	Incentive Payment
	Jason Hugo	 	$75,000.00	 	125,000.00	 	10%	 	12,500.00
	 	 	 	 	187,500.00	 	10%	 	18,750.00
	Non 
Executive Director	 	 	 	250,000.00	 	10%	 	25,000.00
	Hugh Evans	 	5% of Incentive Payment	 	375,000.00	 	10%	 	37,500.00
	 	 	 	 	500,000.00	 	10%	 	50,000.00
	 	 	 	 	625,000.00	 	10%	 	62,500.00
	 	 	 	 	750,000.00	 	10%	 	75,000.00
	 	 	 	 	875,000.00	 	10%	 	87,500.00
	 	 	 	 	1,000,000.00	 	10%	 	100,000.00
	 	 	 	 	1,125,000.00	 	10%	 	112,500.00
	 	 	 	 	1,250,000.00	 	10%	 	125,000.00
	 	 	 	 	1,375,000.00	 	10%	 	137,500.00

 

	2013 Agreement - Confidential	Page 19 of 20	© Moneytech Limited

 

    	 

    	 

    

 

SCHEDULE 2

Commission Schedule

 

This constitutes Schedule 2 to
the Master Agreement executed by and between Moneytech Limited, Moneytech Services Pty Limited, 360 Markets Pty Limited and Jason
Hugo (collectively the "Parties") on 16 January 2013:

 

The Parties agree:

 

	 	(1)	That for any Client referred by Moneytech (or its subsidiary, servant or agent) to 360, 360 shall pay Moneytech a commission equal to 50% of the gross margin generated by said Client.

 

For
the purposes of this Clause (1) "gross margin" shall mean the spread on the transaction less any bank fees, transaction
processing fees, insurance fees or dealer commissions.

 

	 	(2)	That for any Client referred by 360 to Moneytech, that Moneytech shall pay to 360:

 

	 	(a)	50% of the upfront account establishment fee; and

 

	 	(b)	a commission equal to 7.5% of the gross margin generated by said Client.

 

For
the purposes of this Clause (2) "gross margin" shall mean the total interest revenue and service fee (excluding GST)
less any interest expense, bank fees, transaction processing fees, insurance fees or sales commissions. For the avoidance of doubt,
commissions are not payable in accordance with this clause 2 if the Client is delinquent.

 

The parties further agree the Commission
Schedule is subject to amendment where mutually agreed between he parties in writing.

 

	By its authorised signatory	 	 
	 	 	 
		 	 
	Moneytech Limited	 	 
	 	 	 
		 	 
	Moneytech Services Pty Limited	 	 
	 	 	 
		 	 
	360 Markets Pty Limited	 	 

 

 

 

	2013 Agreement - Confidential	Page
    20 of 20	© Moneytech LimitedExhibit 10.1

 

Apatoff Employment Agreement

Execution Copy

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (the “Agreement”) is made and entered into as of the Effective Date (as hereinafter defined) by and between FTD Companies, Inc., a Delaware corporation (the “Company”), with principal corporate offices at 3113 Woodcreek Drive, Downers Grove, Illinois 60515, and Robert S. Apatoff, whose address is 3113 Woodcreek Drive, Downers Grove, Illinois 60515 (“Employee”).

 

WHEREAS, Employee and the Company previously entered into an Employment Agreement which was effective on the date on which the spin-off of the Company from United Online, Inc. was consummated (the “2013 Agreement”).

 

WHEREAS, effective as of the date hereof, Employee and the Company now desire to amend and restate the 2013 Agreement.

 

WHEREAS, Employee and the Company intend this Agreement to supersede and replace the 2013 Agreement.

 

NOW THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                      Term; Position.

 

(a)                                 The term of this Agreement will commence on the Effective Date and extend through December 31, 2019, unless this Agreement is earlier terminated as provided herein (the “Term”).  If the transactions contemplated by the Purchase Agreement (as hereinafter defined) are not consummated for any reason, this Agreement shall be deemed null and void and shall terminate effective as of the termination of the Purchase Agreement, and the 2013 Agreement shall continue with full force and effect.

 

(b)                                 Employee will serve as President and Chief Executive Officer of the Company and report to the Board of Directors of the Company. During the Term, Employee shall, unless he otherwise elects, be nominated for election by the shareholders of the Company to the Board.  Employee agrees to devote Employee’s full-time attention, skill and efforts to the performance of Employee’s duties for the Company.

 

2.                                      Salary and Benefits.

 

(a)                                 Employee will be paid a salary at an annualized rate of $830,000 payable in successive bi-weekly or other installments in accordance with the Company’s standard payroll practices for salaried employees. Employee’s rate of salary will be subject to such increases as may be determined from time to time by the Board of Directors. As used in this Agreement, the term “Board of Directors” shall refer to the Board of Directors of the Company or other governing body or committee to which the authority of the Board of Directors of the Company with respect to executive compensation matters has been delegated, including (without limitation) the Compensation Committee of the Board of Directors of the Company.

 

 

(b)                                 Employee will be eligible to participate in each of the Company’s employee benefit plans that is made generally available either to the Company’s employees or to the Company’s senior executives and for which Employee satisfies the applicable eligibility requirements. Employee will be entitled to a minimum of four (4) weeks  of paid vacation each year or such greater amount as determined in accordance with the Company’s standard vacation policy.

 

(c)                                  The Company will promptly reimburse Employee for all reasonable and necessary business expenses Employee incurs in connection with the business of the Company and the performance of Employee’s duties hereunder upon Employee’s submission of reasonable and timely documentation of those expenses. In no event shall any expense be reimbursed later than the end of the calendar year following the calendar year in which that expense is incurred, and the amounts reimbursed in any one calendar year shall not affect the amounts reimbursable in any other calendar year.  Employee’s right to receive such reimbursements may not be exchanged or liquidated for any other benefit.

 

3.                                      Bonus.

 

For each fiscal year of the Company during the Term of this Agreement, Employee will be eligible to participate in a bonus program with a target bonus set by the Board of Directors in an amount of up to 100% of Employee’s annual rate of base salary.  The performance criteria for purposes of determining Employee’s actual bonus for each fiscal year will be established by the Board of Directors, and Employee’s annual bonus for one or more of those fiscal years may be increased to include any additional amounts approved by the Board of Directors.  Except as otherwise determined by the Board of Directors or set forth herein, Employee will not be entitled to a bonus payment for any fiscal year unless Employee is employed by, and in good standing with, the Company at the time such bonus payment is paid.  Employee’s bonus payment for each fiscal year shall in no event be paid later than the 15th day of the third month following the end of the Company’s fiscal year for which such bonus is earned.

 

4.                                      Restricted Stock Units and Other Equity Awards.

 

(a)                                 If Employee’s employment is terminated by the Company “without cause” or by Employee for “good reason” (as each term is defined below) during the Term, then upon Employee’s satisfaction of the Release Condition set forth in Section 7(b) below, any and all equity awards Employee holds on the date of such termination (other than any equity award that expressly provides for more favorable treatment) will vest on an accelerated basis as to that number of additional shares in which Employee would have otherwise been vested at the time of such termination had Employee completed an additional twelve (12) months of employment with the Company and had each applicable equity award been structured so as to vest in successive equal monthly installments over the vesting schedule for that award..  In no event will the number of additional shares which vest on such an accelerated basis with respect to any particular equity award exceed the number of shares unvested under that award immediately prior to the date of such termination. Except as otherwise expressly provided in the agreement evidencing a particular restricted stock unit or other equity award or to the extent another issuance date may be required to comply with any applicable requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), the shares of the common stock of the Company (“Common Stock”) underlying the equity awards that vest on an accelerated basis in accordance with this Section 4(a) will be issued to Employee within the sixty (60)-day period following the date of Employee’s “separation from service” (as defined below) as a result of Employee’s termination “without cause” (as defined below) or Employee’s resignation for “good reason” (as defined below), provided the Release required of Employee pursuant to Section 7(b) has become effective and enforceable in accordance with its terms following the expiration of the applicable revocation period in effect for that Release.  However, should such sixty (60)-day period span two taxable years, the issuance shall be effected during the portion of that period that occurs in the second taxable year.

 

2

 

(b)                                 If Employee’s employment is terminated by the Company “without cause” or by Employee for “good reason” (as each term is defined below) at any time during the Term and within the period commencing with the execution by the Company of a definitive agreement for a Change in Control (as defined below) and ending with the earlier of (i) the termination of that agreement without the consummation of such Change in Control or (ii) the expiration of the twenty-four (24)-month period measured from the date such Change in Control occurs (except for a Change in Control which occurs pursuant to clause (i) of the proviso included in the definition of “Change in Control” in Section 7(b) of this Agreement, in which case, the expiration of the thirty-six (36) month period measured from the date of such Change in Control) (the “Change in Control Protected Period”), then upon  Employee’s satisfaction of the Release Condition set forth in Section 7(b) below, any and all equity awards Employee holds on the date of such termination will fully vest on an accelerated basis with respect to all non-vested shares of Common Stock at the time subject to those awards, except to the extent that more favorable treatment is otherwise provided in the equity award agreement.  Except as otherwise expressly provided in the agreement evidencing a particular restricted stock unit or other equity award or to the extent another issuance date may be required in order to comply with any applicable requirements of Section 409A of the Code, the shares of Common Stock (or any replacement securities) underlying the equity awards that fully vest on an accelerated basis in accordance with this Section 4(b), or the proceeds of any cash retention program established in replacement of those shares pursuant to the terms of the applicable award agreement, will be issued or distributed to Employee within the sixty (60)-day period following the date of Employee’s “separation from service” (as defined below) as a result of Employee’s termination “without cause” (as defined below) or Employee’s resignation for “good reason” (as defined below), provided the Release required of Employee pursuant to Section 7(b) has become effective and enforceable in accordance with its terms following the expiration of the applicable revocation period in effect for that Release.  However, should such sixty (60)-day period span two taxable years, the issuance shall be effected during the portion of that period that occurs in the second taxable year.

 

(c)                                  Upon Employee’s “separation from service” (as defined below) as a result of Employee’s death or Disability (as defined below), any and all equity awards Employee holds on the date of such separation from service will vest on an accelerated basis as to that number of additional shares in which Employee would have otherwise been vested on the date of such separation from service had Employee completed an additional twelve (12) months of employment with the Company and had each applicable equity award been structured so as to vest in successive equal monthly installments over the vesting schedule for that award. Except as otherwise expressly provided in the agreement evidencing a particular restricted stock unit or other equity award or to the extent another issuance date may be required in order to comply with any applicable requirements of Section 409A of the Code, the shares of Common Stock underlying the equity awards that vest on an accelerated basis in accordance with this Section 4(c) will be issued on the date of such separation from service or as soon as administratively practicable thereafter, but in no event later than the later of (i) the end of the calendar year in which such separation from service occurs or (ii) the 15th day of the third calendar month following the date of such separation from service. For purposes of this Agreement, “Disability” means Employee’s inability to engage in any substantial activity necessary to perform Employee’s duties and responsibilities hereunder by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted, or can be expected to last, for a continuous period of not less than twelve (12) months.

 

(d)                                 The vesting acceleration provisions of this Section 4 and Section 7 will apply to all outstanding equity awards held by Employee on the Effective Date, unless the agreements evidencing those awards provide for more favorable acceleration, and those agreements, to the extent they provide for a lesser amount of acceleration, are hereby amended to incorporate the acceleration provisions of Section 4 and Section 7 of this Agreement for the period this Agreement remains in effect, and such vesting acceleration provisions will also apply to equity awards made after the Effective Date of this Agreement unless the agreements evidencing these awards provide for more favorable acceleration.  The 

 

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shares subject to each equity award that vests pursuant to the vesting acceleration provisions of this Section 4 shall be issued in accordance with the applicable issuance date provisions of this Section 4, except to the extent the agreement evidencing such award provides otherwise or to the extent another issuance date may be required in order to comply with any applicable requirements of Section 409A of the Code.

 

5.                                      Policies; Procedures.

 

As an employee of the Company, Employee will be expected to abide by all of the Company’s policies and procedures, including (without limitation) the terms of any Company handbook, insider trading policy and code of ethics in effect from time to time.

 

6.                                      At Will Employment.

 

Notwithstanding anything to the contrary contained herein, Employee’s employment with the Company is “at will” and will not be for any specified term, meaning that either Employee or the Company will be entitled to terminate Employee’s employment at any time and for any reason, with or  without cause or advance notice.  Any contrary representations that may have been made to Employee are hereby superseded by the terms set forth in this Agreement.  This is the full and complete agreement between Employee and the Company on this subject. Although Employee’s job duties, title, compensation and benefits, as well as the Company’s personnel policies and procedures, may change from time to time, the “at will” nature of Employee’s employment may only be changed in an express written agreement signed by Employee and the Chairman of the Board and approved by the Board of Directors.

 

7.                                      Separation from Service.

 

(a)                                 Termination by Employee.  If Employee terminates his or her employment with the Company for any reason other than as a result of his or her death or Disability or his or her resignation for “good reason” (as defined below), then all the obligations of the Company set forth in this Agreement will cease, other than the obligation to pay Employee, on his or her employment termination date, any earned but unpaid compensation for services rendered through that termination date and any accrued but unused vacation days as of that termination date (collectively, the “Accrued Obligations”).  If Employee terminates his or her employment with the Company for “good reason” (as defined below) during the Term, then in addition to Employee’s right to receive the Accrued Obligations, Employee will, upon Employee’s satisfaction of the Release Condition set forth in Section 7(b) below, become entitled to the Separation Payment (as defined below) and the Additional Payments (as defined below), to the same extent as if Employee’s employment had been terminated by the Company “without cause” (as defined below) during the Term, and Employee will also be entitled, in accordance with the applicable provisions of Section 4 above, to the accelerated vesting of any equity awards Employee holds at the time of such termination. Following Employee’s termination of his or her employment with the Company under this Section 7(a), Employee will continue to be obligated to comply with the terms of Section 9 below.

 

(b)                                 Termination by the Company.  If Employee’s employment is terminated by the Company “without cause” (as defined below) during the Term, then in addition to Employee’s right to receive the Accrued Obligations, Employee will, upon Employee’s satisfaction of the Release Condition set forth below in this Section 7(b), become entitled to a cash separation payment (the “Separation Payment”) in an aggregate amount equal to the sum of (i) two (2) times the base salary at the annual rate in effect for Employee at the time and (ii) two (2) times the Employee’s target bonus for the fiscal year in which the Employee’s employment is terminated.  In addition, contingent upon Employee’s satisfaction of the Release Condition, Employee will be eligible for the following additional separation payments (the “Additional Payments”):

 

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(I)                                   Employee will be eligible for an additional separation payment in an amount equal to a pro-rated bonus for the fiscal year in which such involuntary termination occurs. Such pro-rated bonus will be determined by multiplying (A) the actual bonus (if any) Employee would have earned for that fiscal year, based on the level at which the applicable performance goals for such fiscal year are in fact attained, had Employee continued in the Company’s employ through the date that bonus award becomes due and payable by (B) a fraction the numerator of which is the number of whole months (rounded to the next highest whole month) Employee remained in the Company’s employ during that fiscal year and the denominator of which is twelve (12), with such pro-rated bonus (if any) to be paid at the same time and in same form that the bonus payment for such fiscal year would have been made following the completion of that fiscal year had Employee remained in the Company’s employ through the payment date.  However, if the termination occurs within the Change in Control Protected Period, Employee will be eligible for a pro-rated bonus determined by (1) multiplying (A) Employee’s target bonus for that fiscal year by (B) a fraction the numerator of which is the number of whole months (rounded to the next highest whole month) Employee remained in the Company’s employ during that fiscal year and the denominator of which is twelve (12) and (2) reducing such amount by any bonus earned by Employee for the same fiscal year under Section 3 of this Agreement, with such pro-rated bonus to be paid (in the same form in which the bonus payment for such fiscal year would have been paid had Employee remained in the Company’s employ through the payment date) as follows:

 

(ii)                                  if such Change in Control occurs on or before the date of such involuntary termination, then such payment shall be made on the date on which  the first monthly installment of the Separation Payment (or, in the case of a termination following a Qualifying Change in Control (as defined below), the lump sum Separation Payment) is paid; or

 

(iii)                               if such Change in Control occurs after the date of such involuntary termination, then such payment shall be made on the later of (x) the third (3rd) business day following the effective date of such Change in Control or (y) the sixtieth (60th) day following the date of Employee’s separation from service (as defined below) or, if such sixtieth (60th) day is not otherwise a business day, then the immediately preceding business day.

 

(II)                              In addition, if the date of such involuntary termination occurs after the end of a fiscal year of the Company but prior to the date in the subsequent fiscal year on which Employee’s bonus for that fiscal year would have otherwise become due and payable on the basis of the applicable performance goals attained for that year had Employee continued in employment with the Company, then the Company will pay Employee an additional separation payment equal to the bonus that Employee would have received on the basis of the attained performance goals had Employee remained employed by, and in good standing with, the Company through the payment date for such bonus, with that amount to be paid in a lump sum (in the same form in which such bonus payment would have been paid had Employee remained in the Company’s employ through the payment date) on the later of (i) the date on which the first monthly installment of the Separation Payment (or, in the case of a termination following a Qualifying Change in Control, the lump sum Separation Payment) is paid to Employee as set forth below in this Section 7(b) or (ii) the date such bonus would have been paid to 

 

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Employee pursuant to Section 3 of this Agreement had Employee continued in the Company’s employ through such payment date.

 

(III)                         In no event shall any such Additional Payment described in (I) and (II) above be made later than the last day of the applicable period necessary to qualify such Additional Payment for the short-term deferral exception under Code Section 409A.

 

(IV)                          For a period of twelve (12) months following the date of termination, if Employee elects COBRA health care continuation coverage, Employee shall be eligible to continue to receive the medical and dental coverage provided by the Company as of the date of termination (or generally comparable coverage) for himself and, where applicable his spouse and dependents, as the same may be changed from time to time for employees of the Company generally provided; that in order to receive such continued coverage, Employee shall be required to pay to the Company the full amount of the monthly premium payments for such coverage, at the time such payments are due, and the Company shall, on the first payroll of the month following the payment of each such premium, reimburse Employee for an amount that, prior to withholding for applicable taxes, is equal to the amount of such monthly premium.

 

Payment of the Separation Payment and the Additional Payments (if any) and the accelerated vesting of Employee’s equity awards under Section 4 will each be contingent upon the satisfaction of the following requirements (collectively the “Release Condition”): (i) Employee must execute and deliver to the Company, within twenty-one (21) days (or forty-five (45) days to the extent such longer period is required under applicable law) after the effective date of Employee’s termination of employment, a comprehensive agreement releasing the Company and its officers, directors, employees, stockholders, subsidiaries, affiliates, representatives and other related parties from all claims that Employee may have with respect to such parties relating to Employee’s employment with the Company and the termination of that employment relationship and containing such other and additional terms as the Company deems satisfactory (the “Release”) and (ii) such Release must become effective and enforceable after the expiration of any applicable revocation period under federal or state law.

 

Except as provided in the following paragraph, the Separation Payment to which Employee becomes entitled under this Section 7(b) or under Section 7(a) above will be payable in a series of twelve (12) successive equal monthly installments, beginning on the first regular payday for the Company’s salaried employees, within the sixty (60)-day period following the date of Employee’s “separation from service” (as defined below) as a result of Employee’s termination “without cause” (as defined below) or Employee’s resignation for “good reason” (as defined below), on which Employee’s executed Release is effective and enforceable in accordance with its terms following the expiration of the applicable revocation period in effect for that Release.  However, should such sixty (60)-day period span two taxable years, the first such monthly installment shall be paid during the portion of that period that occurs in the second taxable year.  The remaining monthly installments shall be paid on successive monthly anniversaries of the initial monthly installment hereunder.  For purposes of Section 409A of the Code, Employee’s right to receive such Separation Payment shall be deemed a right to receive a series of separate individual payments and not a right to single payment.

 

If Employee’s employment is terminated by the Company “without cause” (as defined below) or if Employee terminates his or her employment with the Company for “good reason” (as defined below) during the Term and within the twenty-four (24) month period beginning on the effective date of a Qualifying Change in Control (as defined below), the Separation Payment to which Employee becomes entitled under this Section 7(b) or under Section 7(a) above upon Employee’s satisfaction of the Release Condition will be payable in a single lump-sum payment on the first regular payday for the Company’s 

 

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salaried employees, within the sixty (60)-day period following the date of Employee’s “separation from service” (as defined below) as a result of Employee’s termination “without cause” (as defined below) or Employee’s resignation for “good reason” (as defined below), on which Employee’s executed Release is effective and enforceable in accordance with its terms following the expiration of the applicable revocation period in effect for that Release. However, should such sixty (60)-day period span two taxable years, then such payment shall be made during the portion of that period that occurs in the second taxable year. Any Separation Payment to which Employee becomes entitled hereunder in connection with a termination following a Change in Control other than a Qualifying Change in Control will be paid in installments as set forth in the immediately preceding paragraph of this Section 7(b).  For purposes of this Agreement, a “Change in Control” shall have the meaning assigned to such term in the Company’s most recently-adopted equity compensation plan; provided, however, that a Change in Control also shall include each occurrence of (i) the consummation of the transaction contemplated by the Purchase Agreement, (ii)  the consummation of any subsequent transaction in which Liberty Interactive Corporation for the first time increases its beneficial ownership to securities possessing more than fifty percent (50%) (or such lesser percentage as may apply at such time under such equity compensation plan or outstanding award thereunder) of the total combined voting power of the Company’s outstanding securities and (iii) any sale (including, without limitation, any transfer or other disposition) by Liberty Interactive Corporation of all or part of its interest in securities of the Company in a single transaction (or in a series of related transactions) to any “person” not “affiliated” (within the meaning of such terms under Rule 12b-2 under the Securities Exchange Act of 1934) with Liberty Interactive Corporation which results in such person having beneficial ownership to securities possessing at least twenty percent (20%) of the total combined voting power of the Company’s outstanding securities, and a “Qualifying Change in Control” shall mean the date on which there occurs a “Change in Control” (as defined above) that also qualifies as: (i) a change in the ownership of the Company, as determined in accordance with Section 1.409A-3(i)(5)(v) of the Treasury Regulations, (ii) a change in the effective control of the Company, as determined in accordance with Section 1.409A-3(i)(5)(vi) of the Treasury Regulations, or (iii) a change in the ownership of a substantial portion of the assets of the Company, as determined in accordance with Section 1.409A-3(i)(5)(vii) of the Treasury Regulations.  For the avoidance of doubt, the Spin-Off shall not constitute a Change in Control or a Qualifying Change in Control for purposes of the Agreement.

 

If Employee’s employment is terminated by the Company “without cause” (as defined below), the Company will have no further obligation to Employee pursuant to this Agreement other than the Accrued Obligations, the vesting of Employee’s outstanding equity awards in accordance with the applicable vesting acceleration provisions of Section 4 above and the obligations of the Company pursuant to this Section 7(b).

 

If Employee’s employment is terminated by the Company “with cause” (as defined below), the Company will have no further obligation to Employee under the terms of this Agreement, other than the Accrued Obligations.

 

Notwithstanding the termination of Employee’s employment by the Company “with cause” or “without cause,” or by Employee for “good reason” or without “good reason”, Employee will continue to be subject to the restrictive covenants set forth in Section 9, whether or not Employee becomes entitled to any severance or separation payments or benefits pursuant to Section 4 or Section 7 of this Agreement.

 

If any payment or benefit received or to be received by Employee (including any payment or benefit received pursuant to this Agreement or otherwise) would be (in whole or part) subject to the excise tax imposed by Section 4999 of the Code, or any successor provision thereto, or any similar tax imposed by state or local law, or any interest or penalties with respect to such excise tax (such tax or taxes, together with any such interest and penalties, are hereafter collectively referred to as the “Excise Tax”), then the cash payments provided to Employee under this Agreement shall first be reduced, with each such

 

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payment to be reduced pro-rata but without any change in the payment date and with the monthly installments of the Separation Payment (or the lump sum Separation Payment in the event of a Qualifying Change in Control) to be the first such cash payments so reduced, and then, if necessary, the accelerated vesting of Employee’s equity awards pursuant to the provisions of this Agreement shall be reduced in the same chronological order in which those awards were made, but only to the extent necessary to assure that Employee receives only the greater of (i) the amount of those payments and benefits which would not constitute a parachute payment under Code Section 280G or (ii) the amount which yields Employee the greatest after-tax amount of benefits after taking into account any Excise Tax imposed on the payments and benefits provided Employee hereunder (or on any other payments or benefits to which Employee may become entitled in connection with any change in control or ownership of the Company or the subsequent termination of Employee’s employment with the Company).

 

(c)                                  Termination by Death or Disability.

 

If Employee incurs a “separation from service” (as defined below) as a result of his or her death or Disability, the Company will be obligated to pay the Accrued Obligations to Employee, Employee’s estate or beneficiaries (as the case may be) on the date of such separation from service or as soon as administratively practicable thereafter, but in no event later than sixty (60) days after the date of such separation from service.  In the event of such separation from service due to Employee’s death or Disability, Employee or Employee’s estate or beneficiaries, as the case may be, will also be entitled to the accelerated vesting of Employee’s equity awards as set forth in Section 4(c) above.  The provisions of this Section 7(c) will not affect or change the rights or benefits to which Employee is otherwise entitled under the Company’s employee benefit plans or otherwise.

 

(d)                                 Definitions.

 

For purposes of this Agreement, the following definitions will be in effect:

 

“Effective Date” means the closing of the transaction contemplated by the Purchase Agreement.

 

“good reason” means:

 

(i)                                     a material reduction in either Employee’s base salary or annual bonus opportunity, in either case without Employee’s prior written consent;

 

(ii)                                  a material reduction in Employee’s authority, duties or responsibilities (including reporting responsibilities), without Employee’s prior written consent, which material reduction shall be presumed to have occurred if the Company is no longer publicly traded by reason of being acquired by a publicly traded company or if Employee is no longer reporting to the Board of Directors;

 

(iii)                               a material change in the geographic location at which Employee must perform services (the parties acknowledge that Employee is currently required to perform services at 3113 Woodcreek Drive, Downers Grove, Illinois 60515) without Employee’s prior written consent;

 

(iv)                              a failure to re-nominate Employee as a director at the next time his term on the Board expires; or

 

(v)                                 any material un-waived breach by the Company of the terms of this Agreement; provided however, that with respect to any of the clause (i) — (v) events above, Employee will not 

 

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be deemed to have resigned for good reason unless (A) Employee provides written notice to the Company of the existence of the good reason event within ninety (90) days after its initial occurrence, (B) the Company is provided with thirty (30) days after receipt of such notice in which to cure such good reason event and (C) Employee effectively terminates Employee’s employment within one hundred eighty (180) days following the occurrence of the non-cured clause (i) — (v) event.

 

“Purchase Agreement “ means the Stock Purchase Agreement dated as of July 30, 2014, by and among FTD Companies, Inc., Liberty Interactive Corporation and Provide Commerce, Inc..

 

“separation from service” means Employee’s cessation of employee status with the Company by reason of Employee’s death, resignation, dismissal or other termination event and shall be deemed to occur at such time as the level of bona fide services Employee is to render as such an employee (or as a non-employee consultant) permanently decreases to a level that is not more than twenty percent (20%) of the average level of services Employee rendered as an employee during the immediately preceding thirty-six (36) months (or such shorter period of time in which Employee has actually been in employee status with the Company). Any such determination of Employee’s separation from service shall, however, be made in accordance with the applicable standards of the Treasury Regulations issued under Section 409A of the Code.

 

“with cause” means Employee’s termination of employment by the Company for any of the following reasons:

 

(i)                                     if Employee is convicted of, or enters a plea of nolo contendere to, a felony or a misdemeanor involving any act of moral turpitude;

 

(ii)                                  if Employee commits an act of actual fraud, embezzlement, theft or similar dishonesty against the Company or any of its subsidiaries or affiliates;

 

(iii)                               if Employee commits any willful misconduct or gross negligence resulting in material harm to the Company or any of its subsidiaries or affiliates; or

 

(iv)                              if Employee fails, after receipt of detailed written notice and after receiving a period of at least thirty (30) days following such notice to cure such  failure, to use his or her reasonable good faith efforts to follow the reasonable and lawful direction of the Board of Directors and to perform his or her obligations hereunder.

 

“without cause” means any reason not within the scope of the definition of the term “with cause.”

 

(e)                                  Code Section 409A Deferral Period.  Notwithstanding any provision in this Agreement to the contrary (other than Section 7(f) below), no payment or distribution under this Agreement which constitutes an item of deferred compensation under Section 409A of the Code and becomes payable by reason of Employee’s termination of employment with the Company will be made to Employee until Employee incurs a separation from service (as such term is defined above and determined in accordance with Treasury Regulations issued under Section 409A of the Code) in connection with such termination of employment.  For purposes of this Agreement, each amount to be paid or benefit to be provided Employee shall be treated as a separate identified payment or benefit for purposes of Section 409A of the Code.  In addition, no payment or benefit which constitutes an item of deferred compensation under 

 

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Section 409A of the Code and becomes payable by reason of Employee’s separation from service will be made to Employee prior to the earlier of (i) the first day of the seventh (7th) month measured from the date of such separation from service or (ii) the date of Employee’s death, if Employee is deemed at the time of such separation from service to be a “specified employee” (as determined pursuant to Code Section 409A and the Treasury Regulations thereunder) and such delayed commencement is otherwise required in order to avoid a prohibited distribution under Code Section 409A(a)(2).  Upon the expiration of the applicable deferral period, all payments and benefits deferred pursuant to this Section 7(e) (whether they would have otherwise been payable in a single sum or in installments in the absence of such deferral) shall be paid or provided to Employee in a lump sum on the first day of the seventh (7th) month after the date of Employee’s separation from service or, if earlier, the first day of the month immediately following the date the Company receives proof of Employee’s death.  Any remaining payments or benefits due under this Agreement will be paid in accordance with the normal payment dates specified herein.

 

(f)                                   Provisions Applicable to “Specified Employee”.  Notwithstanding Section 7(e) above, the following provisions shall also be applicable to Employee if Employee is a “specified employee” at the time of Employee’s separation of service:

 

(i)                                     Any payments or benefits which become due and payable to Employee during the period beginning with the date of Employee’s separation from service and ending on March 15 of the following calendar year and otherwise qualify for the short-term deferral exception to Code Section 409A shall not be subject to the holdback provisions of Section 7(e) and shall accordingly be paid as and when they become due and payable under this Agreement in accordance with such short-term deferral exception to Code Section 409A.

 

(ii)                                  The remaining portion of the payments and benefits to which Employee becomes entitled under this Agreement, to the extent they do not in the aggregate exceed the dollar limit described below and are otherwise scheduled to be paid no later than the last day of the second calendar year following the calendar year in which Employee’s separation from service occurs, shall not be subject to the holdback provisions of Section 7(e) and shall be paid to Employee as they become due and payable under this Agreement.  For purposes of this subparagraph (ii), the applicable dollar limitation will be equal to two times the lesser of (i) Employee’s annualized compensation (based on Employee’s annual rate of pay for the calendar year preceding the calendar year of Employee’s separation from service, adjusted to reflect any increase during that calendar year which was expected to continue indefinitely had such  separation from service not occurred) or (ii) the compensation limit under Section 401(a)(17) of the Code as in effect in the year of such separation from service.  To the extent the portion of the severance payments and benefits to which Employee would otherwise be entitled under this Agreement during the deferral period under Section 7(e) exceeds the foregoing dollar limitation, such excess shall be paid in a lump sum upon the expiration of that deferral period, in accordance with the deferred payment provisions of Section 7(e), and the remaining severance payments and benefits (if any) shall be paid in accordance with the normal payment dates specified for them herein.

 

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8.                                      Withholding Taxes.

 

All forms of compensation payable pursuant to the terms this Agreement, whether payable in cash, shares of Common Stock or other property, are subject to reduction to reflect the applicable withholding and payroll taxes.

 

9.                                      Restrictive Covenants.

 

Until one (1) year after the termination of Employee’s employment with the Company, Employee will not, directly or indirectly, solicit or recruit for employment, any person or persons who are employed by Company or any of its subsidiaries or affiliates, or who were so employed at any time within a period of twelve (12) months immediately prior to the date Employee’s employment terminated, or otherwise interfere with the relationship between any such person and the Company; nor will Employee assist anyone else in recruiting any such employee to work for another company or business or discuss with any such person his or her leaving the employ of the Company or engaging in a business activity in competition with the Company.  Notwithstanding the foregoing, if Employee and the Company enter into any restrictive covenant agreement, the terms of which conflict with this Section 9, the terms of such agreement shall govern.  Employee hereby acknowledges that Employee has entered into a Confidentiality and Non-Competition Agreement and an Employee Proprietary Information and Inventions Agreement with the Company on or prior to the Effective Date.

 

10.                               Deferred Compensation Programs

 

Any compensation deferred by Employee pursuant to one or more non-qualified deferred compensation plans or arrangements of the Company subject to Section 409A of the Code and not otherwise expressly addressed by the terms of this Agreement, shall be paid at such time and in such form of payment as set forth in each applicable plan or arrangement governing the payment of any such deferred amounts.

 

11.                               Clawback.

 

Any amounts paid or payable to Employee pursuant to this Agreement or the Company’s equity or compensation plans shall be subject to recovery or clawback to the extent required by any applicable law or any applicable securities exchange listing standards.

 

12.                               Entire Agreement/Construction of Terms.

 

(a)                                 This Agreement, together with any Company handbooks and policies in effect from time to time and the applicable stock plans and agreements evidencing the equity awards made to Employee from time to time during Employee’s period of employment, will, as of the Effective Date, (i) contain all of the terms of Employee’s employment with the Company and (ii) supersede any prior understandings or agreements, whether oral or written, between Employee and the Company, including but not limited to the 2013 Agreement, which 2013 Agreement shall terminate as of the Effective Date and be of no further force or effect.

 

(b)                                 If any provision of this Agreement is held by an arbitrator or a court of competent jurisdiction to conflict with any federal, state or local law, or to be otherwise invalid or unenforceable, such provision shall be construed or modified in a manner so as to maximize its enforceability while giving the greatest effect as possible to the intent of the parties.  To the extent any provision cannot be construed or modified to be enforceable, such provision will be deemed to be eliminated from this 

 

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Agreement and of no force or effect, and the remainder of this Agreement will otherwise remain in full force and effect and be construed as if such portion had not been included in this Agreement.

 

(c)                                  This Agreement is not assignable by Employee.  This Agreement may be assigned by the Company to its subsidiaries or affiliates or to successors in interest to the Company or its lines of business.

 

(d)                                 The severance payments and benefits under this Agreement are intended, where possible, to comply with the “short term deferral exception” and the “involuntary separation pay exception” to Code Section 409A.  Accordingly, the provisions of this Agreement applicable to the Separation Payment and the accelerated vesting of Employee’s equity awards and the issuance of shares of Common Stock thereunder and the determination of Employee’s separation from service due to termination of Employee’s employment without cause or Employee’s resignation for good reason shall be applied, construed and administered so that those payments and benefits qualify for one or both of those exceptions, to the maximum extent allowable. However, to the extent any payment or benefit to which Employee becomes entitled under this Agreement is deemed to constitute an item of deferred compensation subject to the requirements of Code Section 409A, the provisions of this Agreement applicable to that payment or benefit shall be applied, construed and administered so that such payment or benefit is made or provided in compliance with the applicable requirements of Code Section 409A.  In addition, should there arise any ambiguity as to whether any other provisions of this Agreement would contravene one or more applicable requirements or limitations of Code Section 409A and the Treasury Regulations thereunder, such provisions shall be interpreted, administered and applied in a manner that complies with the applicable requirements of Code Section 409A and the Treasury Regulations thereunder.

 

13.                               Amendment and Governing Law.

 

This Agreement may not be amended or modified except by an express written agreement sign by Employee and the Chairman of the Board of Directors and approved by the Board of Directors.  Employee agrees that any dispute in the meaning, effect or validity of this Agreement shall be resolved in accordance with the laws of the State of Illinois without regard to the conflict of laws provisions thereof.  Employee hereby irrevocably submits to the jurisdiction (including without limitation in personam jurisdiction), process and venue of the courts of the State of Illinois and the Federal courts of the United States located in Chicago, Illinois, and hereby agrees that any action, suit or proceeding initiated by Illinois for the interpretation or enforcement of the provisions of this Agreement shall, and that any action, suit or proceeding initiated by Company for the interpretation or enforcement of the provisions of this Agreement may, be heard and determined exclusively in a Federal court, or, if not permitted by applicable law, then in a State court, situated in Chicago, Illinois.

 

14.                               Surviving Provisions.

 

Following any termination or expiration of this Agreement, Sections 5, 6, 7(e), 7(f), 8, 9, 10, 11, 12, 13 and 14 will survive, and, if Employee’s employment with the Company continues thereafter, Employee’s employment with the Company will continue to be “at will”.

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date set forth below.

 

	
/s/   Robert S. Apatoff
    	
 
    
	
Robert   S. Apatoff
    	
 
    
	
 
    	
 
    
	
Date   signed:    July 28, 2014
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
FTD   COMPANIES, INC.
    	
 
    
	
 
    	
 
    	
 
    
	
By:   
    	
/s/   Scott D. Levin
    	
 
    
	
 
    	
 
    	
 
    
	
Name:   
    	
Scott   D. Levin
    	
 
    
	
 
    	
 
    	
 
    
	
Title:   
    	
Executive   Vice President and General Counsel
    	
 
    
	
 
    	
 
    
	
Date   signed:    July 28, 2014
    	
 
    

 

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