Document:

EX-10.2 Amendment of Engagement Agreement/ Frederi

 

EXHIBIT 10.2

FIRST AMENDMENT OF ENGAGEMENT AGREEMENT

THIS
AGREEMENT is made this 14th day of September, 2007

	 	 	 
	BETWEEN:
	 	CONSOLIDATED WATER CO. LTD.,

A Cayman Islands company having its registered office at

Regatta Office Park, West Bay Road

P.O. Box 1114

Grand Cayman KY1-1102

Cayman Islands

(“the Company”)

	 
	 	 

	AND:
	 	FREDERICK W. MCTAGGART

of 11 Doubloon Drive

P.O. Box 321

Grand Cayman KY1-1502

Cayman Islands

(“the President”)

WHEREAS:

	 	A.	 	The Company and the President (together “the Parties”) entered into an engagement
agreement dated the 5th of December, 2003 (“the Engagement Agreement”)
	 
	 	B.	 	On the 25th of June, 2007 the Parties agreed that for the purpose of Clause 19 of the
Engagement Agreement, for the calendar year 2007 only, the words “August 31” should replace
the words “June 30”.
	 
	 	C.	 	On the 29th of August, 2007 the Parties agreed that for the purpose of Clause 19 of the
Engagement Agreement, for the calendar year 2007 only, the words “September 15” should
replace the words “June 30”.
	 
	 	D.	 	The Parties are desirous of amending the Engagement Agreement in accordance with the
terms of the Agreement.

NOW IN CONSIDERATION of the mutual covenants contained herein the Parties agree that the Engagement
Agreement shall be amended as follows:

	 	1.	 	Clause 2 shall be replaced with the following clause:

‘The President’s remuneration will be US$200,000.00 per annum and with effect from 1st
January, 2008, will be US$375,000 per annum, payable semi-monthly in arrears and subject
to adjustment as per Clause 5.’
	 
	 	2.	 	Clause 6 shall be amended by adding “and ending with the financial year 2007”
immediately after “2004” on the second line thereof.

 

 

	 	3.	 	Clause 6 shall be further amended by adding the following words at the end thereof:
	 
	 	 	 	“Further, for each completed fiscal year beginning with the fiscal year 2008, at the
sole discretion of the Board of Directors, the President may be paid bonuses calculated
as follows:

	 	(a)	 	Annual Bonus: An amount not to exceed 100% of the remuneration
pursuant to Clause 2 hereof.
	 
	 	 	 	The amount of the Annual Bonus, if any, will be calculated by the Board of
Directors based upon its assessment of the performance of the President in the
following areas:

	 	i.	 	Achieving the Company’s budgeted
net income and earnings per share targets,
	 
	 	ii.	 	Facilitating revenue growth through
project extensions and new projects,
	 
	 	iii.	 	Staying within the approved capital
expenditure budgets for operations, project extensions and new
projects,
	 
	 	iv.	 	Fostering excellent communications
with the Board of Directors of the Company and being receptive to
input from Board of Directors,
	 
	 	v.	 	Executing any special projects as
assigned by the Board of Directors,
	 
	 	vi.	 	Developing and maintaining
excellent customer relations.

	 	 	 	The Annual Bonus, if any, calculated aforesaid shall be paid as to 75% in cash
and as to 25% in ordinary shares of the Company valued at the market price at
the close of trading of the same on December 31st of the relevant financial year
(or if such day is not a trading day, at the close of trading on the preceding
trading day).
	 
	 	(b)	 	Discretionary Bonus: An amount in the form of cash and/or
grants of the Company’s ordinary shares and/or options on the Company’s ordinary
shares.

	 	4.	 	Clause 8 shall be amended by adding a colon after the word ‘shall’ on the fifth line
thereof and replacing the remaining words in that sentence with the following words:

	 	(a)	 	Serve on the board of directors of such subsidiaries or affiliates of
the Company as the Board may direct,
	 
	 	(b)	 	Work in cooperation with the Chairman of the Board of the Company (‘the
Chairman’) on analyst calls and meetings, industry conference presentations, and
press releases,

-2-

 

	 	(c)	 	Meet or have a conference call at least weekly with the Chairman at a
place and time determined by the President to the end and for the purpose of
facilitating communication, in particular in relation to developments on business
and project activities,
	 
	 	(d)	 	Provide assistance to the Chairman on Board assigned Special Projects,
	 
	 	(e)	 	Develop and maintain excellent customer relations and utilize the
Chairman at the President’s discretion to assist in these efforts.

	 	5.	 	Clause 12(b) shall be replaced with the following clause:

	 	 	 	‘b) six (6) weeks vacation to be taken at a time approved by the Board, but
at no time shall the President be on vacation for more than 18 consecutive calendar
days unless otherwise approved by the Board.’

	 	6.	 	Clause 13(a) shall be amended by deleting the words “the Capacity” from the fifth line
thereof and replacing them with the words “his duties hereunder”

EXECUTED for and on behalf of

CONSOLIDATED WATER CO. LTD.

By: Jeffrey M. Parker

In the presence of:

	 	 	 
	/s/ Gerard Pereira

	 	/s/ Jeffrey M. Parker
	 

	 	 
	Witness

	 	CONSOLIDATED WATER CO. LTD
	 
	 	 
	EXECUTED by
	 	 
	FREDERICK W. MCTAGGART
	 	 
	In the presence of:
	 	 
	 
	 	 
	/s/ Gerard Pereira

	 	/s/ Frederick W. McTaggart
	 

	 	 
	Witness

	 	FREDERICK W. MCTAGGART

-3-Ex-10.1

 

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

     This Agreement, entered into this 30th day of September, 2007 (“Effective Date”), is by and
between Luminex Corporation, a Delaware corporation (hereinafter referred to as the “Company” or
“Luminex”) and James W. Jacobson (hereinafter referred to as “Employee”).

RECITALS

     A. The parties entered into an Amended and Restated Employment Agreement dated March 10, 2000,
as amended (hereinafter referred to as “Former Employment Agreement”).

     B. The parties wish to terminate the Former Employment Agreement and their respective
obligations therewith and replace it with this Agreement.

     C. Employee wishes to resign as an officer of the company effective on the Effective Date of
this Agreement.

     D. Employee will continue to be employed by the Company in accordance with the terms set forth
herein.

NOW THEREFORE, the parties agree to the following:

1. Duties. Employee shall be employed as the Scientific Advisor of the Company or in such
other position and such title as determined by the Chief Executive Officer of the Company.
Employee agrees that he will be available as needed to perform the duties assigned to him by the
Company. Employee is expected to work from home but must report to the office or other reasonable
work location when requested by the Company with reasonable notice.

2. Term. The term of employment of Employee hereunder shall commence on the date hereof
(the “Commencement Date”) and continue until September 30, 2008, unless earlier terminated pursuant
to Section 5. If Employee remains employed after September 30, 2008, then he will be an at-will
employee, meaning his employment may be terminated at any time for any reason or no reason at all
by either Employee or the Company.

3. Compensation and Benefits. In consideration for the services of Employee hereunder, the
Company shall compensate Employee as follows:

a. Base Salary. Until the termination of Employee’s employment hereunder,
the Company shall pay Employee a base salary at an annual rate of $225,500 (the
“Base Salary”) payable in accordance with the then current payroll policies of the
Company.

b. Vacation. Employee shall be entitled to three weeks of paid vacation
during the term at the reasonable and mutual convenience of the Company and
Employee.

 

 

c. Group Benefits. To the extent Employee is eligible, he shall be entitled
to participate in all group benefit plans of the Company in accordance with the
Company’s regular practices for its employees. The Company shall provide accident,
health, dental, disability and life insurance for Employee under the group accident,
health, dental, disability and life insurance plans maintained by the Company for
its full-time, salaried employees, provided that, Employee is eligible to
participate in such insurance plans. If Employee is not eligible to participate in
the health insurance plan, then the Company will pay its portion of the benefits
during the term of this Agreement so long as Employee elects COBRA coverage.

     Employee shall not be entitled to any compensation or benefits not specifically set forth in
this Section for fiscal year 2007 or the remainder of the term of this Agreement, including, but
not limited to, any annual management incentive bonus for fiscal year 2007 or for the remainder of
the term of this Agreement.

4. Termination Prior to the Expiration of the Term. Either party may terminate this
Agreement prior to the end of the term by providing the other party with 30 days written notice.

     a. Termination by the Company. If the Company terminates Employee’s employment prior
to the end of the term, then the Company shall promptly pay Employee in a lump sum payment an
amount equal to Employee’s Base Salary multiplied by a fraction, the numerator of which equals the
number of days remaining in the Employee’s term of employment and the denominator of which equals
365, in a lump sum payment (the “Separation Payment”). Receipt of the Separation Payment by
Employee will be contingent upon Employee executing a release of any and all claims against
Employer and its parent and subsidiary companies, affiliate companies, and all officers, directors,
employees, agents, and shareholders of all such entities, whether known or unknown, existing as of
the time of the receipt of the Separation Payment, with the release to be in a form acceptable to
the Company. Employee acknowledges that he will not otherwise be entitled to the Separation
Payment without signing such a release.

     b. Termination by Employee. If Employee terminates his employment prior to the end of
the term, then he shall be entitled to no further payments other than that which is provided in
Section 3 through the effective date effective date of Employee’s termination.

     c. Expiration of the Agreement. Employee shall not be entitled to any Separation Pay
if his employment is terminated for any reason on or after September 30, 2008.

5. Confidentiality. During his employment under this Agreement and for a period of one
year thereafter, Employee shall not disclose any information learned in the course of his
employment to any outside entity or person, unless required by law. This provision shall not apply
to information in the public domain, and does not prohibit employee from disclosing any information
to his legal, financial, or tax advisors.

6. Entire Agreement; Effect on Prior Agreement. This Agreement contains the entire
understanding of the parties, supersedes all prior agreements and understandings relating to the

 

 

subject matter hereof (including without limitation the Former Employment Agreement, which is
hereby terminated) and may not be amended except by a written instrument hereafter signed by each
of the parties hereto. Employee and the Company hereby agree that, if any other employment
agreement between Employee and the Company is in existence on the Effective Date, then this
Agreement shall supersede such other employment agreement in its entirety, and such other
employment agreement shall no longer be of any force and effect after the date hereof.

7. Waiver. Employee hereby waives any rights, including, but not limited to, compensation,
severance or other remuneration to which he was entitled under the Former Employment Agreement and
agrees that he will not bring any claim or suit against the Company, its affiliate companies or
entities, its shareholders, successors, assigns, agents, directors, officers, employees,
representatives, attorneys, and affiliates, and all persons acting by, through, under or in concert
with any of them (collectively “Company and Related Parties”), seeking damages and/or relief under
or enforcement of the Employment Agreement. This Agreement shall be binding upon the Employee and
upon Employee’s heirs, administrators, representatives, executors, successors, and assigns, and
shall inure to the benefit of the Company and Related Parties and each of them, and to their heirs,
administrators, representatives, executor, successors and assigns.

8. Resignation as Officer. Employee agrees that as of the Effective Date, he will resign
as an officer of the Company in the manner required by the Company.

9. Notices. All notices and other communications hereunder shall be in writing or by
written telecommunication, and shall be deemed to have been duly given if delivered personally or
if mailed by certified mail, return receipt requested or by written telecommunication, to the
relevant address set forth below, or to such other address as the recipient of such notice or
communication shall have specified to the other party:

If to the Company, to:

Luminex Corporation

12212 Technology Blvd.

Austin, Texas 78727

Attention: General Counsel

Facsimile Number: (512) 219-6325

If to Employee, to:

James W. Jacobson

216 Hidden Mesa

Leander, TX 78641

10. Tax Matters. All payments required to be made to Employee by the Company under this
Agreement shall be subject to the withholding of such amounts, if any, relating to federal, state
and local taxes as may be required by law. By accepting this Agreement, Employee hereby agrees and
acknowledges that neither the Company nor its Affiliates makes any representations with respect to
the application of the Internal Revenue Code of 1986, as amended (the “Code”),

 

 

including Code Section 409A, to any tax, economic or legal consequences of any payments payable to Employee
hereunder and, by the acceptance of this Agreement, Employee agrees to accept the potential
application of the Code, including Code Section 409A, to the tax and legal consequences of payments
payable to Employee hereunder.

11. Governing Law. This Agreement and the performance hereof shall be construed and
governed in accordance with the laws of the State of Texas, without regard to its choice of law
principles.

	 	 	 	 	 
	
LUMINEX CORPORATION
	 	JAMES W. JACOBSON
	By:	 	 	 	 
	 	 	
/s/ Patrick J. Balthrop

 

Patrick J. Balthrop
	 	/s/ James W. Jacobson

 

Date: September 11, 2007
	 	 	
Chief Executive Officer

Date: September 11, 2007

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