Document:

exv10w13

 

Exhibit 10.13

Executive Services Agreement

between

Royal Wolf Trading Australia Pty Ltd

(A.BN 38 069 244 417)

and

Robert Allan

 

 

Contents

	 	 	 	 	 	 	 	 	 
	Clause	 	 	 	 	 	 
	number	 	 	Heading	 	Page	 
	 	1.	 	 	Definitions and interpretation
	 	 	1	 
	 	2.	 	 	Employment and Duties of Executive
	 	 	3	 
	 	3.	 	 	Commencement and Termination
	 	 	5	 
	 	4.	 	 	Remuneration
	 	 	7	 
	 	5.	 	 	Performance Bonus
	 	 	8	 
	 	6.	 	 	Leave
	 	 	8	 
	 	7.	 	 	Illness and Sick Leave
	 	 	9	 
	 	8.	 	 	Superannuation
	 	 	9	 
	 	9.	 	 	Travel by the Executive
	 	 	9	 
	 	10.	 	 	Policies and Procedures
	 	 	9	 
	 	11.	 	 	Confidential Information
	 	 	9	 
	 	12.	 	 	Protection of Company’s Interest
	 	 	10	 
	 	13.	 	 	Intellectual Property
	 	 	12	 
	 	14.	 	 	Company’s Property
	 	 	13	 
	 	15.	 	 	Continuing Obligations
	 	 	14	 
	 	16.	 	 	Governing law and jurisdiction
	 	 	14	 
	 	17.	 	 	Notices
	 	 	14	 
	 	18.	 	 	Assignment
	 	 	15	 
	 	19.	 	 	Severability
	 	 	15	 
	 	20.	 	 	Waiver and Variation
	 	 	15	 
	 	21.	 	 	Entire agreement
	 	 	15	 
	 	22.	 	 	No Representations and Warranties
	 	 	16	 
	 	23.	 	 	Independent Legal Advice
	 	 	16	 
	Schedule 1	 	 	17	 
	Job description	 	 	17	 
	Schedule 2	 	 	19	 
	Confidential Information	 	 	19	 
	Schedule 3	 	 	20	 
	Remuneration Details	 	 	20	 

 

 

Executive Services Agreement

This Agreement is made on 4th July 2006.
Between Royal Wolf Trading Australia Pty Ltd (ABN 38 069 244 417) of Suite 202, Level 2, 22-28
Edgeworth David Avenue, Hornsby, NSW 2077 (the “Company”)

And

Robert Allan of 23 Fiona Street, Belrose, NSW 2085 (the “Executive”)

Recital

The Company has agreed to appoint the Executive to the Position on the terms and conditions
set out in this Agreement

Operative provisions

1. Definitions and interpretation

1.1 The following words have these meanings in this Agreement unless the contrary intention
appears.

“Applicable Rate” has the meaning given to it in clause 8.1.

“Additional Hours” has the meaning given to it in clause 2.7.

“Area of Restraint” means, during the Executive’s Employment, anywhere in the
Commonwealth of Australia or, if for any reason that area is held by a court of competent
jurisdiction to be unreasonable, anywhere in the eastern seaboard of Australia (being New South
Wales, Victoria and Queensland), and means, between the Termination Date and the end of the Period
of Restraint, anywhere in the Commonwealth of Australia.

“Basic Salary” has the meaning given to it in Schedule 3.

“Business” means the activities carried out by Royal Wolf Trading Australia Pty Limited
and any Group Company, being the hire and sale of new, refurbished, specialised and customised
shipping containers throughout Australia.

“Commencement Date” has the meaning given to it in Schedule 3.

“Confidential Information” means any information in respect of the business and affairs
of the Employer or a Related Body Corporate which is not in the public domain (whether known by the

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Employee before or after the date of this Agreement). For the avoidance of doubt this information
includes:

	(a)	 	the ideas, techniques, systems, processes, trade secrets, designs, inventions, methodologies
and procedures developed by the Employer;

	(b)	 	information of the Employer relating to its business processes, including financial
information, accounts, financial records, customer records, business plans, customer lists and
all associated information;

	(c)	 	all reports, proposals, memoranda, drawings, diagrams, statements, accounts and other
documents created during the course of the Employee’s employment;

	(d)	 	all copies of any information referred to in paragraphs (a)~ (b) or (c) (including anything
composed and stored digitally whether or not it has ever been committed to paper) by either
party in the course of the Employee’s employment embodying or based upon that information; and

	(e)	 	the information specified in Schedule 2.

“Directors” means all or some of the directors of the Company acting as a board or a
committee of the board.

“Document” has the same meaning as in the Evidence Act 1995 (NSW). “Duties”
means the Executive’s duties, functions and responsibilities under this Agreement.
“Employment” means employment under this Agreement.

“Financial Year” means a period commencing on 1 July and concluding on 30 June.

“Group” means the Company and its related bodies corporate (as defined in Section 50 of
the Corporations Act 2001 and “Group Company” means any one of them.

“Investor” means Equity Partners Two Pty Ltd (ACN 093 766 280) (as trustee for Equity
Partners Two Trust) of Level 12, 60 Margaret Street, Sydney, NSW 2000.

“Performance Bonus” has the meaning given to it in clause 5.1.

“Position” means the position designated in Schedule 1.

“Sick Leave” has the meaning given to it in clause 7.1.

“Subsidiaries” means the subsidiaries of the Company from time to time (if any) as
that
term is defined in Section 9 of the Corporations Act 2001.

“Termination Date” means the date of termination of the Executive’s employment
or engagement with the Company, however caused.

“Writing” includes typewriting, printing, lithography, photography and other modes of
representing or reproducing words in a visible form and “Written” has a
corresponding meaning.

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	1.2	 	In this Agreement unless the contrary intention appears:

	 	(a)	 	a reference to this Agreement or another instrument includes any variation
or replacement of either of them which has been agreed in writing between both
parties;
	 
	 	(b)	 	a reference to a statute, ordinance, code or other law includes regulations
and other instrument under it and consolidations, amendments, reenactments or
replacements of any of them;
	 
	 	(c)	 	the singular includes the plural and vice versa;
	 
	 	(d)	 	the word “person” includes a firm, a partnership, a body
corporate, an unincorporated association or an authority;
	 
	 	(e)	 	a reference to a person includes a reference to the person’s executors,
administrators, successors, substitutes (including, but not limited to, persons
taking by novation) and assigns;
	 
	 	(f)	 	if a period of time is specified and dates from a given day or the day of
an act or event, it is to be calculated exclusive of that day;
	 
	 	(g)	 	a reference to a clause is a reference to a clause of or to this Agreement;
and
	 
	 	(h)	 	a reference to a day is to be interpreted as the period of time commencing
at midnight and ending 24 hours later.

	1.3	 	Where a day specified by this Agreement for the payment of money falls on a Saturday, Sunday
or a day appointed under the Banks and Bank Holidays Act 1912 as a holiday for the
whole day, the day so specified will be taken to be the day preceding the day so specified
which is not in turn a Saturday, Sunday or day so appointed as a holiday for the whole day.

	1.4	 	Headings are inserted for convenience and do not affect the interpretation of this Agreement.

2. Employment and Duties of Executive

	2.1	 	The Company employs the Executive and the Executive will serve the Company in the Position
and in any additional or substituted employment as may be agreed in writing by the parties.
	 
	2.2	 	The Executive will be responsible and report to the Directors.
	 
	2.3	 	The Executive agrees to faithfully and diligently perform the Duties and exercise the powers,
consistent with the Position:

	 	(a)	 	as set out in Schedule 1;
	 
	 	(b)	 	as from time to time may be reasonably assigned to or vested in the
Executive by the Directors;
	 
	 	(c)	 	subject to clause 9, in Sydney, unless otherwise agreed with the Directors;

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	 	(d)	 	on behalf of any Group Company as if they were Duties to be performed on
behalf of the Company, as may reasonably be required by the Directors from time to
time.

	2.4	 	The Executive undertakes that, subject to clauses 2.5, 2.6 and 2.7, he will not at
any time during the period of Employment without the consent in writing of the company hold
any position for monetary or other reward which conflicts with the Executive’s performance of
the Duties.

	2.5	 	The Executive is not prevented from reasonable involvement in any professional or educational
activity or body.

	2.6	 	Nothing in clause 2.4 prevents the Executive from:

	 	(a)	 	holding for investment purposes only, marketable securities quoted at the
time of acquisition on a recognised stock exchange in Australia or elsewhere being
collectively not more than 5% of the issued share capital of the listed company; or

	 	(b)	 	being interested in a company, a firm or a business:

	 	(i)	 	if that interest has been disclosed in writing to the
Directors (including at least one director appointed by the Investor) prior
to the Commencement Date; and

	 	(ii)	 	with the prior approval of a majority of the Directors
of the Company (including at least one director appointed by the Investor),
such approval not to be unreasonably withheld, having regard to the
business interests of the Group and subject always to the majority of such
board being satisfied that the Executive will continue to be able to
satisfy fully his obligations under this Agreement.

	2.7	 	The Executive agrees to devote all of his time, attention, and skills during business hours
of the Company (which shall be 40 hours per week) and at such other times as may be reasonably
necessary for the proper performance of the Duties (the “Additional Hours”), without
payment of additional remuneration, to:

	 	(a)	 	the business of the Company; and
	 
	 	(b)	 	the performance of the Executive’s Duties,

unless prevented by ill-health or accident and except during annual holidays or public
holidays under any statute. The Executive acknowledges that the Additional Hours have
been taken into account in calculating the Executive’s remuneration

and, accordingly, the Executive will not receive additional remuneration for the
Additional Hours.

	2.8	 	The Executive agrees to:

	 	(a)	 	promote the interest and public image of the Company;
	 
	 	(b)	 	in performing duties and exercising powers under this Agreement, adhere to
management practices and procedures adopted by the Company from time to time;

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	 	(c)	 	obey all reasonable and lawful directions of the Directors; and
	 
	 	(d)	 	provide the Directors with information and reports:

	 	(i)	 	as to the affairs of the Company as the Directors may
reasonably request from time to time; and

	 	(ii)	 	generally, so as to keep the Directors informed of all
material developments in or relevant to the Company’s affairs within the
scope of the Executive’s Duties.

	2.9	 	The Executive undertakes not to accept payment or other benefit in money or kind from a
person as an inducement or reward for any act or forbearance in connection with any matter or
business transacted by or on behalf of the Company or its Group Companies.

3. Commencement and Termination

Commencement

	3.1	 	The Employment will be deemed to have commence on the Commencement Date specified in
Schedule 3 and will continue indefinitely until it is terminated under any of clauses 3.2,3.4
or 3.5.

Termination on Notice without cause

	3.2	 	Either party may terminate this Agreement by:

	 	(a)	 	providing the other with six months’ prior notice of termination; or
	 
	 	(b)	 	in the case of the Company, by making a payment of six months’ remuneration
in lieu of the notice.

	3.3	 	If the Executive or the Company gives to the other notice under clause 3.2, the Company will
not be obliged to provide the Executive with any work during the notice period and may require
that the Executive does not during all or part of any notice period:

	 	(a)	 	enter or attend the premises of the Company or any Group Company;
	 
	 	(b)	 	contact or have any communication with any customer or client of the
Company or any Group Company;
	 
	 	(c)	 	contact or have any communication with any employee, officer, director or
agent or consultant of the Company or any Group Company in relation to the business
of the Company or any Group Company; or
	 
	 	(d)	 	remain or become involved in any aspect of the business of the Company or
any Group Company.

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Termination without Notice

	3.4	 	At any time, the Company may terminate the Employment without notice or payment in lieu or
payment of any other sum if the Executive:

	 	(a)	 	engages in any act or omission constituting gross misconduct;
	 
	 	(b)	 	disobeys a reasonable lawful direction of the Directors;
	 
	 	(c)	 	if he is a director of the Company or any Group Company, becomes
disqualified under statute from serving as a director;
	 
	 	(d)	 	is convicted of an indictable offence (other than a road traffic offence
for which a non-custodial penalty is imposed);
	 
	 	(e)	 	guilty of fraud or dishonesty;
	 
	 	(f)	 	materially breaches confidentiality obligations;
	 
	 	(g)	 	is unable to perform his duties under this Agreement for any reason
including because of alcohol or drug addiction or other substance abuse or mental
incapacity;
	 
	 	(h)	 	becomes bankrupt or compounds with creditors; or
	 
	 	(i)	 	commits any act or omission which in the reasonable opinion of the
Directors or the Investor brings him or the Company into disrepute or which is
contrary to the Company’s interests.

Incapacity

	3.5	 	Without limiting the Company’s rights under clause 3.4(g), if the Executive is unable to
perform the Duties because of illness or injury (other than illness or injuries which arise as
a result of the Executive’s Employment) for a period exceeding a total of 12 weeks in any
consecutive period of 24 weeks the Company may terminate the Employment by giving the
Executive three months’ notice.

	3.6	 	Such notice of termination must be given whilst the incapacity continues.

	3.7	 	The Company must withdraw any such notice if, during the currency of the notice, the
Executive returns to full time duties and provides a doctor’s certificate
satisfactory to the Company to the effect that the Executive has fully recovered his
health and that no recurrence of his illness, injury or incapacity is anticipated.

Resignation from Office on Termination

	3.8	 	If the Employment is terminated for any reason, the Executive must immediately resign
from any office in the Company and any Group Company to which he has been appointed.

Payment on Termination

	3.9	 	Despite any other provision to the contrary in this Agreement or any other document, if
either party terminates this Agreement at any time for any reason, or it expires, any unpaid
salary, superannuation and accrued annual leave entitlement will become payable.

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	3.10	 	If this Agreement is terminated for any reason, the Company will not be obliged to pay the
whole or any part of a Performance Bonus to the Executive unless the Performance Bonus has
already been determined and advised to the Executive.

4. Remuneration

Total Cost Package

	4.1	 	The Company agrees to provide the Executive during his Employment with the
remuneration package set out in Schedule 3.

Basic Salary

4.2 The Basic Salary payable to the Executive is set out in Schedule 3 and:

	 	(a)	 	accrues from month to month;
	 
	 	(b)	 	is to be paid by equal monthly installments on or about the 15th day of
each month;
	 
	 	(c)	 	is inclusive of any superannuation contributions required by law, any car
allowance, FBT and any other entitlements the Executive may wish to package;
	 
	 	(d)	 	is inclusive of any remuneration received or receivable by him in respect
of any office or employment in the Company or any Group Company.

	4.3	 	For the avoidance of doubt the Basic Salary does not include a Performance Bonus.

Reimbursement of out of pocket expenses

	4.4	 	The Company agrees, on the production of receipts in a form reasonably
acceptable to the Company, to reimburse the Executive all out-of-pocket expenses reasonably
incurred by the Executive in the proper performance of his Duties including reasonable
expenses relating to entertainment, accommodation, meals, and travel.

Deductions from Salary

	4.5	 	The Executive agrees to the deduction from his Basic Salary or other sums due to him of:

	 	(a)	 	statutory deductions, including tax;
	 
	 	(b)	 	any deductions which the Executive has authorised the Company to make;
	 
	 	(c)	 	contributions payable by the Executive under any superannuation scheme or
fund nominated by the Executive of which he is a member;
	 
	 	(d)	 	the pre-tax equivalent of fringe benefits tax or any other tax properly
payable by the Executive in respect of the contributions and benefits referred to in
paragraphs (b) and (c) above; and
	 
	 	(e)	 	other amounts owed by the Executive on any account to the Company or any
Group Company.

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5. Performance Bonus

Discretionary

	5.1	 	The Company may on an annual basis after completion of the year
end audit decide to pay to Executive a Performance Bonus,
as detailed in Schedule 3.
	 
	5.2	 	The Performance Bonus is and will only be payable if:

	 	(a)	 	the Key Performance Indicators (KPI’s) have been met for the
relevant period.

6. Leave

Annual Leave

	6.1	 	The Executive is entitled to 20 days annual leave in accordance with the relevant State
legislation, as amended from time to time.

	6.2	 	The Executive must take annual leave at a period or periods agreed between the Executive and
the Directors, and in the absence of agreement, as required by the Company in accordance with
statutory requirements.

Long Service Leave

	6.3	 	The Executive will be entitled to long service leave in accordance with the relevant State
legislation, as amended from time to time.

7. Illness and Sick Leave

	7.1	 	If the Executive:

	 	(a)	 	is prevented by illness, accident or any other cause from duly performing
his Duties; and

	 	(b)	 	furnishes evidence if so required to the Company, satisfactory to the
Company (acting reasonably) of his incapacity,

the Executive will receive his full salary under this Agreement for the period of
incapacity not exceeding a period of eight days during any year of service (“Sick
Leave”), unless the Company, at its absolute discretion, agrees to increase
this period in any calendar year.

	7.2	 	Any period of Sick Leave which remains untaken will accumulate from year to year However, the
Executive may not take more than fifteen days Sick Leave in any calendar year.

	7.3	 	The Executive is not entitled to any payment with respect to untaken Sick Leave upon the
termination of the Employment.

	7.4	 	The Executive must notify a Director as early as possible on first day of his absence from
work, giving the reason for, and likely duration of his absence.

	7.5	 	The Executive must give the Company a medical certificate for absences through illness or
injury of more than three consecutive days.

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8. Superannuation

	8.1	 	As set out in clause 4.2(c), the Basic Salary includes the superannuation
contributions payable at the rate applicable (currently 9%) under the relevant
superannuation legislation and related legislation (the “Applicable Rat&’).
	 
	8.2	 	Therefore, if the Applicable Rate increases so that it exceeds 9%, additional
contributions to the Executive’s nominated superannuation fund (if required) will
be made out of the Basic Salary.

9. Travel by the Executive

The Executive agrees to travel without further remuneration (except out-of-pocket expenses, as
provided by clause 4.4) within or outside Australia on the business of the Company or any

Group Company as and when necessary for the performance of the Duties and as may reasonably be
required of him by the Directors.

10. Policies and Procedures

The Executive will comply with the Company’s staff policy agreement as amended from time to
time. To the extent that the staff policy agreement is inconsistent with the terms and conditions
of this Agreement, this Agreement will prevail.

11. Confidential Information

Acknowledgment

	11.1	 	The Executive will, during the course of employment, receive and gain access to
Confidential Information. The Executive acknowledges that the Confidential Information is
proprietary to and valuable to the Company and that any unauthorised disclosure of it will
cause damage to the Company.

Confidentiality

	11.2	 	The Executive must:

	 	(a)	 	maintain in strict confidence all of the Confidential Information;
	 
	 	(b)	 	not use or permit to be used the Confidential Information or any part of
it for any purpose other than for the purpose of the Executive’s employment;
	 
	 	(c)	 	not remove any Confidential Information from the Company’s premises
except as is strictly necessary in the ordinary and proper course of the Executive’s
employment with the Company or after first obtaining the written consent of the
Company;
	 
	 	(d)	 	secure the Confidential Information and keep it secure;
	 
	 	(e)	 	not divulge, communicate, reproduce, disclose or distribute any part of
or any opinion concerning the Confidential Information to any other person unless:

	 	(i)	 	required by law to do so;

	 	(ii)	 	the Executive has obtained the prior written consent of
the Company;

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	 	(f)	 	notify the Company immediately on becoming aware of any actual or
possible unauthorised disclosure of or access to Confidential Information.

Obligation to return or destroy Confidential Information

	11.3	 	The Executive must, immediately on termination of employment or earlier if requested by
the Company:

	 	(a)	 	deliver to the Company all Confidential Information and documents of any
type in which any Confidential Information is embodied which may be in the
Executive’s possession or control; and

	 	(b)	 	if requested by the Company, delete all Confidential Information stored
electronically (including Confidential Information contained in email, computer
files, back up files, on CD Rom, disk or similar), together with all copies in such
a way that the Confidential Information is incapable of being restored and the
Executive must certify to the Company that all such Confidential Information has
been so deleted.

	 	(c)	 	The Executive’s obligations under this clause 11 survive the
termination of the Executive’s employment with the Company.

12. Protection of Company’s Interest

	12.1	 	The Executive acknowledges that:

	 	(a)	 	by virtue of his employment by the Company, the Executive may obtain
Confidential Information concerning the business, clients and finances of the
Company and its Related Bodies Corporate;
	 
	 	(b)	 	disclosure of Confidential Information could materially harm the Company;
	 
	 	(c)	 	the restrictive covenants contained in this clause are reasonable and
necessary for the protection of the goodwill of the Company; and
	 
	 	(d)	 	the remedy of damages may be inadequate to protect the interests of the
Company from breach of the Executive’s obligations under this clause and the Company
is entitled to seek and obtain injunctive relief, or any other remedy, in any court.

	12.2	 	In this Agreement:

	 	(a)	 	“Restrained Business” means any business or activity which is in
competition with or substantially similar to the business of the Company;

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	 	(b)	 	“Restrained Area” means within

	 	(i)	 	Australia, and if a court of competent jurisdiction
determines that this Restraint Area is unreasonable,

	 	(ii)	 	within New South Wales, and if a court of competent
jurisdiction determines that this Restraint Area is unreasonable

	 	(iii)	 	Sydney metropolitan area.

	 	(c)	 	“Restraint Period” means the following:

	 	(i)	 	12 months, and if a court of competent jurisdiction determines that this
Restraint Period is unreasonable;
	 
	 	(ii)	 	6 months, and if a court of competent jurisdiction determines that this
Restraint Period is unreasonable; and
	 
	 	(iii)	 	3 months.

	 	(d)	 	Subject to paragraph (t), the Executive must not whilst employed pursuant to the terms of
this Agreement:

	 	(i)	 	solely or jointly with any other person, whether as principal, agent,
director, executive officer, executive, shareholder, partner, joint venturer, member
adviser, consultant, employee or otherwise howsoever, directly or indirectly carry
on, be engaged, concerned or interested in a Restrained Business or otherwise
associated with any trade or business in competition with the Company; or
	 
	 	(ii)	 	induce or attempt to induce any director, manager or executive or other
employee of the Company to terminate that person’s employment with the Company,
whether or not that person would commit a breach of that person’s contract of
employment; or
	 
	 	(iii)	 	approach, induce, solicit or persuade any person or entity who or which
is a client or customer of the Company to cease doing business with the Company or
reduce the amount of business which the person or entity would normally do with the
Company.
	 
	 	(iv)	 	be engaged or interested in any public or private work or duties which in
the reasonable opinion of the Company may hinder or otherwise interfere with the
performance of the Executive’s duties under this Agreement.

	 	(e)	 	Subject to paragraph (1), the Executive must not for the relevant Restraint Period following
the end of his employment by the Company (“Termination Date”):

	 	(i)	 	solely or jointly with any other person~ whether as principal, agent, director,
executive officer, executive, shareholder, partner, joint venturer, member adviser,
consultant, employee or otherwise howsoever, directly or indirectly carry on, be
engaged, concerned or interested in a Restrained Business or otherwise associated
with any trade or business in competition with the Company in the relevant
Restrained Area; or

	 	(ii)	 	induce or attempt to induce any director, manager or
executive or other employee of the Company to terminate that person’s
employment with the Company, whether or not that person would commit a
breach of that person’s contract of employment; or

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	 	(iii)	 	approach, induce, solicit or persuade any person or
entity who or which is a client or customer of the Company during the 12
months prior to the Termination Date to cease doing business with the
Company or reduce the amount of business which the person or entity would
normally do with the Company..

	 	(I)	 	paragraphs (d) and (e) do not prohibit the Executive from
holding:

	 	(i)	 	shares, units or other securities:

	 	(A)	 	quoted on a recognised stock
exchange; or
	 
	 	(B)	 	in a managed fund or other entity
in which the Executive has no management role (either in such
entity or in any investment of such entity),

so long as the Executive does not hold more than 5% of the
issued shares, units or securities in such entity.

	12.3	 	If any part of the undertakings in clause 12.2(e) is unenforceable, it may be severed without
affecting the enforceability of the rest of that undertaking or undertakings.

	12.4	 	The Executive must not after the Termination Date represent the Executive as being in any way
connection with or interested in the business carried on the Company.

	12.5	 	The Executive and the Company consider the restraints contained in this clause to be
reasonable and intend the restraints to operate to the maximum extent.

12.6 If these restraints:

	 	(a)	 	are void as unreasonable for the protection of the interests of the
Company; and

	 	(b)	 	would be valid if part of the wording was deleted or the period or area
or activity was reduced,

the restraints will apply with the modifications necessary to make them effective.

	12.7	 	The restraints contained in this clause are separate, distinct and several, so that the
unenforceability of any restraint does not affect the enforceability of the other restraints.

	12.8	 	The Executive agrees that the remedy of damages may be inadequate to protect the interests of
the Company from a breach of the Executive’s obligations under this clause 12 and
the Company is entitled to seek and obtain injunctive relief, or any other remedy, in any
court.

13. Intellectual Property

	13.1	 	The Executive acknowledges that to the extent allowed by law, all intellectual property
rights including without limitation copyright throughout the world created, developed or
acquired by the Executive in the course of the Executive’s employment pursuant to this
Agreement belongs to the Company. In the event that any formal assignment of such copyright or
work is required
to perfect the ownership of the Company, and is not precluded by law, the Executive will
execute any documents required by the Company in this regard.

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	13.2	 	The Executive will not without the prior written consent of the Company use or deliver any
intellectual property to any person or entity other than the Company or its executives or
agents or otherwise as the Company directs, develops or acquired by the Company in the course
of the Executive’s employment for the purposes of the Company.

	13.3	 	The Executive will during and after the cessation of employment do all such acts and sign all
such documents as the Company may reasonably require to be done or signed at its expense to
secure to the Company registration and recognition rights and copyright in all works created,
developed or acquired by the Executive during the course of the Executive’s employment for the
purposes of the Company.

	13.4	 	The Executive hereby irrevocably appoints the Company to be his attorney in his name and on
his behalf to sign or execute any instrument or do any thing and generally to use his name for
the purpose of giving to the Company or its nominee the full benefit of the provisions of this
clause relating to intellectual property.

	13.5	 	The Executive’s obligations under this clause survive the termination of the Executive’s
employment with the Company.

	13.6	 	To the extent permitted by law, the Executive waives all moral rights of any kind or nature
whatsoever,

	13.7	 	The Executive acknowledges that the Executive is aware that the copying of software programs
is prohibited under international and Australian copyright laws.

	13.8	 	All rights and obligations under this clause in respect of intellectual property made or
discovered by the Executive during the Employment shall continue in full force and effect
after the termination of the Employment and will be binding upon the Executive’s personal
representatives.

14. Company’s Property

	14.1	 	The Executive will not part with possession or put at risk any property belonging to the
Company and must not, except in the course of the Company’s business, deliver such property to
any person, without the Company’s written consent.

	14.2	 	On termination of the Executive’s employment or at any time prior to termination upon the
request of the Company, the Executive must immediately deliver to the Company all tangible
property of the Company or relating to the affairs of the Company or the business of the
Company (or any of its related bodies corporate) or to the Executive’s employment including
without limitation:

	 	(a)	 	all books, documents, papers, materials, credit cards, keys, computer
software and other property in the Executive’s possession or control; or

	 	(b)	 	copies, summaries and excerpts of the above.

13

 

	14.3	 	The Executive hereby waives, to the extent permitted by law, all of his moral rights in
respect of any acts of the Company or any acts of third parties done with the Company’s
authority in relation to any Intellectual Property that is the property of the Company.

15. Continuing Obligations

Any provision of this Agreement remaining to be performed or observed by the Executive or
having affect after the termination of this Agreement for whatever reason remains in full force and
effect and is binding on the Executive.

16. Governing law and jurisdiction

	16.1	 	This Agreement and the transactions contemplated by this Agreement are governed by the
law in force in New South Wales.

	16.2	 	Each party irrevocably and unconditionally submits to the non-exclusive jurisdiction of the
courts of New South Wales and courts of appeal from them for determining any dispute
concerning this Agreement or the transactions contemplated by this Agreement.

	16.3	 	Without preventing any other mode of service, any document in an action (including, but not
limited to, any writ of summons or other originating process or any third or other party
notice) may be served on any party by being delivered to or left for that party at its address
for service of notices under clause 17.

17. Notices

	17.1	 	A notice, approval, consent, or other communication in connection with this
Agreement:

	 	(a)	 	must be in writing; and
	 
	 	(b)	 	must be left at the address of the addressee, or sent by prepaid ordinary
post (airmail if posted to or from a place outside Australia) to the address
of the addressee which is specified in this clause or, if the addressee has
notified the other party that another address is the address for service, then
to that address, or sent by facsimile to the other party.

     The address of each party is:

	 	 	 
	The Company
	 	 
	Address:

	 	Suite 202, Level 2,
	 

	 	22-28 Edgeworth David Avenue
	 

	 	Hornsby NSW 2077
	Fax:

	 	9482 3477
	 
	 	 
	The Executive
	 	 
	Address:

	 	23 Fiona Street
	 

	 	Belrose NSW 2085

14

 

	17.2	 	A notice, approval, consent or other communication takes effect from the time it is received
unless a later time is specified in it.

17.3 A letter or facsimile is taken to be received:

	 	(a)	 	in the case of a posted letter, on the third (seventh, if posted to or from
a place outside Australia) day after posting; and

	 	(b)	 	in the case of facsimile, on production of a transmission report by the
machine from which the facsimile was sent which indicates that the facsimile was sent
in its entirety to the facsimile number of the recipient.

18. Assignment

The rights under this Agreement are personal. A party may not assign his rights under this
Agreement without the written consent of the other party.

19. Severability

	 	(a)	 	The parties consider the covenants, obligations and restrictions contained in
this Agreement (“the Covenants”) to be reasonable in all the circumstances of the
Employment.

	 	(b)	 	Subject always to clause 12.5 and the operation of the Restraint of Trade
Act 1976 (NSW), each and every part of the Covenants will be taken to be a severable
and independent covenant with the intent that, if they are, taken together, adjudged
to go beyond what is reasonable in all the circumstances but would be adjudged
reasonable with any one or more Covenants or any one or more parts of the Covenants
deleted, the Covenants will be taken to apply as if those Covenants or parts of
Covenants so adjudged unreasonable were deleted.

20. Waiver and Variation

	20.1	 	Failure or omission by the Company at any time to enforce or require
strict or timely compliance with any provision of this Agreement does
not affect or impair that provision in any way or the rights of the
Company to avail itself of the remedies it may have in respect of any
breach of that provision.
	 
	20.2	 	A provision of or a right created by this Agreement may not be:

	 	(a)	 	waived except in writing signed by the party granting the waiver; or
	 
	 	(b)	 	varied except in writing signed by the parties.

21. Entire agreement

Unless the contrary intention appears, this Agreement constitutes the entire agreement of the
parties and its subject matter and any previous agreements, understandings and negotiations on that
subject matter cease to have any effect.

15

 

22. No Representations and Warranties

The Executive acknowledges that in entering into this Agreement he has not relied on any
representations or warranties about the subject matter of this Agreement except as provided in this
Agreement.

23. Independent Legal Advice

The Executive acknowledges that he has read the terms of this Agreement and understands it.
The Executive further acknowledges that he has had a reasonable opportunity to obtain independent
legal advice regarding the effect and impact of this Agreement, and in particular clauses 11,
12, 13 and 14.

16

 

Schedule I

Job description

	 	 	 
	Job Title:

	 	Chief Executive Officer
	Reports to:

	 	Board

SUMMARY

Perform all the duties normally expected of a CEO responsible for the leadership and
management of a Company of this size. More particularly, the role includes;

	 	(a)	 	to grow the business and increase the shareholder value with a view to its sale
by way of IPO or trade within about 12-24 months of appointment;

	 	(b)	 	to develop a strategic business plan for maximising the profitability and
growth of the business to be adopted by the Board from time to time and to
effectively execute the plan.

ESSENTIAL DUTIES AND RESPONSIBILITIES include the following. Other duties may be assigned.

	 	•	 	Plan, coordinate, and manage the daily operation of the Group through the
organisation’s managers to ensure the optimum health and performance of the Group at all
times.
	 
	 	•	 	Establish and strive for current and tong-range goals, objectives, strategic and
operating plans and policies, subject to approval by the board of Directors.
	 
	 	•	 	Dispense advice, guidance, direction and authorisation to carry out major plans,
standards and procedures, consistent with established policies and approval of the board of
Directors.
	 
	 	•	 	Work with the Group’s other executives on a day-to-day basis to ensure that
operations are being executed in accordance with the Company’s policies.
	 
	 	•	 	Oversee the adequacy and soundness of the Group’s financial structure.
	 
	 	•	 	Review operating results of the Group, comparing them to established objectives, and
take the necessary steps to ensure that appropriate remedial measures are taken in a timely
and efficient manner in order to correct unsatisfactory results/trends.
	 
	 	•	 	Plan and head all investigations and negotiations pertaining to mergers, joint
ventures, the acquisition of businesses, or the sale of major assets with approval
of the board of Directors.

17

 

	 	•	 	Encourage and maintain optimum inter and intra company communications.
	 
	 	•	 	Represent the Group toward and with major clients, our shareholders, the
financial community and the general public (end consumers).
	 
	 	•	 	Guide, direct and encourage management in the development,
production, promotion, and financial aspects of the Group’s products
and services.
· Direct the preparation of short-term and long-range plans and
budgets based on broad corporate goals and growth objectives.
	 
	 	•	 	Oversee the Group’s senior management team in the establishment and
employment of best-practice operating policies.
	 
	 	•	 	Implement programs that meet corporate goats and objectives.
	 
	 	•	 	Create the structure and processes necessary to manage the
Group’s current activities and its projected growth.
	 
	 	•	 	Establish policies to ensure adequate management development
and to provide for capable management succession.
	 
	 	•	 	Evaluate the results of overall operations regularly and
systematically report these results to the board of Directors.
	 
	 	•	 	Ensure that the responsibilities, authorities and accountability of
all direct subordinates are clearly defined and understood by each
party.
	 
	 	•	 	Ensure that all Group activities and operations are carried out
in compliance with local, state and federal regulations and laws
governing business operations.
	 
	 	•	 	Oversee and direct treasury, budgeting, audit, tax, accounting,
purchasing, real estate, long range forecasting, and insurance
activities for the Group.

18

 

Schedule 2

Confidential Information

	1.	 	The Group’s business and strategic plans.
	 
	2.	 	The Group’s budgets and financial projections.
	 
	3.	 	Information, documents or knowledge that by their nature are confidential relating to the
business affairs, finances or transactions of the Group.
	 
	4.	 	Manuals, procedures, computer programs, policies and procedures of the Group.
	 
	5.	 	Details of customers and clients.
	 
	6.	 	Pricing information.
	 
	7.	 	Information or data that is designated, labelled or treated by the Company or any of the
Group Companies as confidential.

19

 

Schedule 3

Remuneration Details

	 	 	 
	Position:	 	Chief Executive Officer.
	Basic Salary:

	 	$280,000. This amount is inclusive of
superannuation, car allowance, FBT and any other
entitlements the Executive may wish to package.
	 
	 	 
	 

	 	As of 1 July 2006 the basic salary will be $300,000.
	 
	 	 
	Performance Bonus:

	 	Maximum Performance Bonus of $100,000.
	 
	 	 
	 

	 	Payment of the Performance Bonus is conditional upon the
achievement of performance and profitability targets as
determined by the Board from time to time.
	 
	 	 
	 

	 	No performance bonus is payable if the minimum
performance target as identified below are not met.
	 
	 	 
	 

	 	Refer attachment “A” for bonus plan for the 2006/2007
Financial Year. The Board at its discretion may include a
‘super bonus’ component for driving exceptional financial
performance.
	 
	 	 
	Minimum Performance:

	 	• 85% of Board approved budgeted
EBITDA is met on a quarterly basis;
	 
	 	 
	 

	 	• All bank debt covenants have been met and complied
with; and;
	 
	 	 

20

 

	 	 	 	 	 	 	 
	Executed as an agreement
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Signed by

	 	 	)	 	 	 
	Royal Wolf Trading Australia Pty Ltd

	 	 	)	 	 	 
	by a director and secretary/director:

	 	 	)	 	 	 

	 	 	 
	/s/ Peter McCann

	 	/s/ Rajeev Dhawan
	 

	 	 
	Signature of secretary

	 	Signature of director
	 
	 	 
	Peter McCann

	 	Rajeev Dhawan
	 

	 	 
	Name of secretary (please print)

	 	Name of director (please print)

	 	 	 	 	 	 	 
	Signed by

	 	 	)	 	 	 
	Robert Allan

	 	 	)	 	 	 
	representative in the presence of:

	 	 	)	 	 	 

	 	 	 
	/s/ Gregory Brian Baker

	 	/s/ Robert Allan 4th July 2006
	 

	 	 
	Signature of witness

	 	Signature of Robert Allan
	 
	 	 
	Gregory Brian Baker
	 	 
	 

Name of witness (please print)

	 	 

21exv10w14

 

Exhibit 10.14

Executive Services Agreement

between

Royal Wolf Trading Australia Pty Ltd

(ABN 38 069 244 417)

and

Peter Linden McCann

 

 

Contents

	 	 	 	 	 	 	 
	Clause	 	 	 	 	 
	number	 	Heading	 	Page	 
	1.
	 	Definitions and interpretation	 	 	1	 
	 
	 	 	 	 	 	 
	2.
	 	Employment and Duties of Executive	 	 	3	 
	 
	 	 	 	 	 	 
	3.
	 	Commencement and Termination	 	 	5	 
	 
	 	 	 	 	 	 
	4.
	 	Remuneration	 	 	7	 
	 
	 	 	 	 	 	 
	5.
	 	Performance Bonus	 	 	8	 
	 
	 	 	 	 	 	 
	6.
	 	Leave	 	 	8	 
	 
	 	 	 	 	 	 
	7.
	 	Illness and Sick Leave	 	 	8	 
	 
	 	 	 	 	 	 
	8.
	 	Superannuation	 	 	9	 
	 
	 	 	 	 	 	 
	9.
	 	Travel by the Executive	 	 	9	 
	 
	 	 	 	 	 	 
	10.
	 	Policies and Procedures	 	 	9	 
	 
	 	 	 	 	 	 
	11.
	 	Confidentiality	 	 	9	 
	 
	 	 	 	 	 	 
	12.
	 	Restrictions	 	 	10	 
	 
	 	 	 	 	 	 
	13.
	 	Documents and other Property of the Company	 	 	11	 
	 
	 	 	 	 	 	 
	14.
	 	Copyright, Intellectual Property and Invention	 	 	12	 
	 
	 	 	 	 	 	 
	15.
	 	Continuing Obligations	 	 	12	 
	 
	 	 	 	 	 	 
	16.
	 	Governing law and jurisdiction	 	 	13	 
	 
	 	 	 	 	 	 
	17.
	 	Notices	 	 	13	 
	 
	 	 	 	 	 	 
	18.
	 	Assignment	 	 	14	 
	 
	 	 	 	 	 	 
	19.
	 	Severability	 	 	14	 
	 
	 	 	 	 	 	 
	20.
	 	Waiver and Variation	 	 	14	 
	 
	 	 	 	 	 	 
	21.
	 	Entire agreement	 	 	15	 
	 
	 	 	 	 	 	 
	22.
	 	No Representations and Warranties	 	 	15	 
	 
	 	 	 	 	 	 
	23.
	 	Independent Legal Advice	 	 	15	 

-i-

 

	 	 	 	 	 	 	 
	Clause	 	 	 	 	 
	number	 	Heading	 	Page	 
	 
	 	Schedule 1	 	 	16	 
	 
	 	Job description	 	 	16	 
	 
	 	 	 	 	 	 
	 
	 	Schedule 2	 	 	18	 
	 
	 	Confidential Information	 	 	18	 
	 
	 	 	 	 	 	 
	 
	 	Schedule 3	 	 	19	 
	 
	 	Remuneration Details	 	 	19	 
	 
	 	 	 	 	 	 
	 
	 	Schedule 4	 	 	20	 
	 
	 	Share Offer	 	 	20	 

-ii-

 

Executive Services Agreement

This Agreement is made on 17th day of May 2004.

Between

Royal Wolf Trading Australia Pty Ltd (ABN 38 069 244 417) of Suite 202, Level 2, 22-28
Edgeworth David Avenue, Hornsby, NSW 2077 (the “Company”)

And

Peter Linden McCann of 124 Annangrove Road Annangrove NSW 2156 (the “Executive”)

Recital

The Company has agreed to appoint the Executive to the Position on the terms and conditions set out
in this Agreement

Operative provisions

1. Definitions and interpretation

	1.1	 	The following words have these meanings in this Agreement unless the contrary intention
appears.

“Applicable Rate” has the meaning given to it in clause 8.1.

“Additional Hours” has the meaning given to it in clause 2.7.

“Area of Restraint” means, during the Executive’s Employment, anywhere in the Commonwealths of
Australia and New Zealand or, if for any reason that area is held by a court of competent
jurisdiction to be unreasonable, anywhere in the Commonwealth of Australia, and means, between the
Termination Date and the end of the Period of Restraint, anywhere in the Commonwealth of Australia.

“Basic Salary” has the meaning given to it in Schedule 3.

“Business” means the activities carried out by Royal Wolf Australia Pty Limited being the hire and
sale of new, refurbished, specialised and customised shipping containers throughout Australia.

“Commencement Date” has the meaning given to it in Schedule 3.

“CPI” means the Consumer Price Index, All Groups, Sydney.

-1-

 

“Directors” means all or some of the directors of the Company acting as a board or a committee of
the board.

“Document” has the same meaning as in the Evidence Act 1995 (NSW).

“Duties” means the Executive’s duties, functions and responsibilities under this Agreement.

“Employment” means employment under this Agreement.

“Financial Year” means a period commencing on 1 January and concluding on 31 December, or the
financial year adopted by the company from time to time.

“Group” means the Company and its related bodies corporate (as defined in Section 50 of the
Corporations Act 2001 and “Group Company” means any one of them.

“Intellectual Property “ has the meaning given to it in clause 14.1.

“Invent” means invent, conceive, make or suggest and “Invented” has a corresponding meaning.

“Investor” means Equity Partners Two Pty Ltd (ACN 093 766 280) (as trustee for Equity Partners Two
Trust) of Level 12, 60 Margaret Street, Sydney, NSW 2000.

“Managing Director” means the managing director of the Company.

“Performance Bonus” has the meaning given to it in clause 5.1.

“Position” means the position designated in Schedule 3.

	(a)	 	“Period of Restraint” means, subject to clause 12.3, the period of six months from the
termination of the employee’s employment with the company.

“Remuneration Committee” means the remuneration committee of the Company appointed from time to
time in accordance with the Shareholders’ Agreement.

“Shareholders’ Agreement” means the shareholders’ agreement between the Company, the Investor, the
Executive and certain other persons, executed on or about the date of this Agreement.

“Sick Leave” has the meaning given to it in clause 7.1.

“Subsidiaries” means the subsidiaries of the Company from time to time (if any) as that term is
defined in Section 9 of the Corporations Act 2001.

“Termination Date” means the date of termination of the Executive’s employment or engagement with
the Company, however caused.

“Writing” includes typewriting, printing, lithography, photography and other modes of representing
or reproducing words in a visible form and “Written” has a corresponding meaning.

-2-

 

	1.2	 	In this Agreement unless the contrary intention appears:

	 	(a)	 	a reference to this Agreement or another instrument includes any
variation or replacement of either of them which has been agreed in writing between
both parties;
	 
	 	(b)	 	a reference to a statute, ordinance, code or other law includes
regulations and other instrument under it and consolidations, amendments,
re-enactments or replacements of any of them;
	 
	 	(c)	 	the singular includes the plural and vice versa;
	 
	 	(d)	 	the word “person” includes a firm, a partnership, a body corporate, an
unincorporated association or an authority;
	 
	 	(e)	 	a reference to a person includes a reference to the person’s executors,
administrators, successors, substitutes (including, but not limited to, persons
taking by novation) and assigns;
	 
	 	(f)	 	if a period of time is specified and dates from a given day or the day of
an act or event, it is to be calculated exclusive of that day;
	 
	 	(g)	 	a reference to a clause is a reference to a clause of or to this
Agreement; and
	 
	 	(h)	 	a reference to a day is to be interpreted as the period of time
commencing at midnight and ending 24 hours later.

	1.3	 	Where a day specified by this Agreement for the payment of money falls on a Saturday, Sunday
or a day appointed under the Banks and Bank Holidays Act 1912 as a holiday for the whole day,
the day so specified will be taken to be the day preceding the day so specified which is not
in turn a Saturday, Sunday or day so appointed as a holiday for the whole day.
	 
	1.4	 	Headings are inserted for convenience and do not affect the interpretation of this Agreement.

2. Employment and Duties of Executive

	2.1	 	The Company employs the Executive and the Executive will serve the Company in the Position
and in any additional or substituted employment as may be agreed in writing by the parties.
	 
	2.2	 	The Executive will be responsible to the Chief Executive Officer.
	 
	2.3	 	The Executive agrees to faithfully and diligently perform the Duties and exercise the powers,
consistent with the Position:

	 	(a)	 	as set out in Schedule 1;

-3-

 

	 	(b)	 	as from time to time may be reasonably assigned to or vested in the
Executive by the Chief Executive Officer;
	 
	 	(c)	 	subject to clause 9, in Sydney, unless otherwise agreed with the Chief
Executive Officer;
	 
	 	(d)	 	on behalf of any Group Company as if they were Duties to be performed on
behalf of the Company, as may reasonably be required by the Chief Executive Officer
from time to time.

	2.4	 	The Executive undertakes that, subject to clauses 2.5, 2.6 and 2.7, he will not at any time
during the period of Employment without the consent in writing of the Chief Executive Officer
hold any position for monetary or other reward which conflicts with the Executive’s
performance of the Duties.
	 
	2.5	 	The Executive is not prevented from reasonable involvement in any professional or educational
activity or body.
	 
	2.6	 	Nothing in clause 2.4 prevents the Executive from:

	 	(a)	 	holding for investment purposes only, marketable securities quoted at the
time of acquisition on a recognised stock exchange in Australia or elsewhere being
collectively not more than 5% of the issued share capital of the listed company; or
	 
	 	(b)	 	being interested in a company, a firm or a business:

	 	(i)	 	if that interest has been disclosed in writing to
the Chief Executive Officer prior to the Commencement Date; or
	 
	 	(ii)	 	with the prior approval of a majority of the board
of directors of the Company (including at least one director appointed by
the Investor), such approval not to be unreasonably withheld, having
regard to the business interests of the Group and subject always to the
majority of such board being satisfied that the Executive will continue
to be able to satisfy fully his obligations under this Agreement; or
	 
	 	(iii)	 	with the prior written consent of the Chief
Executive Officer.

	2.7	 	The Executive agrees to devote all of his time, attention, and skills during business hours
of the Company (which shall be 40 hours per week) and at such other times as may be reasonably
necessary for the proper performance of the Duties (the “Additional Hours”), without payment
of additional remuneration, to:

	 	(a)	 	the business of the Company; and
	 
	 	(b)	 	the performance of the Executive’s Duties,

-4-

 

	 	 	 	unless prevented by ill-health or accident and except during annual holidays or public
holidays under any statute. The Executive acknowledges that the Additional Hours have
been taken into account in calculating the Executive’s remuneration and, accordingly, the
Executive will not receive additional remuneration for the Additional Hours.

	2.8	 	The Executive agrees to:

	 	(a)	 	obey all reasonable and lawful directions of the Chief Executive Officer;
and
	 
	 	(b)	 	provide the Chief Executive Officer with information and reports:

	 	(i)	 	As to the affairs of the Company as the Chief
Executive Officer may reasonably request from time to time; and
	 
	 	(ii)	 	Generally, so as to keep the Chief Executive
Officer informed of all material developments in or relevant to the
Company’s affairs within the scope of the Executive’s Duties.

	2.9	 	The Executive undertakes not to accept payment or other benefit in money or kind from a
person as an inducement or reward for any act or forbearance in connection with any matter or
business transacted by or on behalf of the Company or its Group Companies.

3. Commencement and Termination

	3.1	 	The Employment will commence on the Commencement Date specified in Schedule 3 and will
continue indefinitely until it is terminated under any of clauses 3.2, 3.4 or 3.6.
	 
	3.2	 	Either party may terminate this Agreement by providing the other with three months’ prior
notice of termination or, in the case of the Company, by making a payment of three months’
remuneration in lieu thereof.
	 
	3.3	 	If the Executive or the Company gives to the other notice under clause 3.2, the Company will
not be obliged to provide the Executive with any work during the notice period and may require
that the Executive does not during all or part of any notice period:

	 	(a)	 	Enter or attend the premises of the Company or any Group Company;
	 
	 	(b)	 	Contact or have any communication with any customer or client of the
Company or any Group Company;
	 
	 	(c)	 	Contact or have any communication with any employee, officer, director or
agent or consultant of the Company or any Group
Company in relation to the business of the Company or any Group Company; or

-5-

 

	 	(d)	 	Remain or become involved in any aspect of the business of the Company or
any Group Company.

	3.4	 	At any time, the Company May by notice in writing summarily terminate the Employment if the
Executive:

	 	(a)	 	Engages in any act or omission constituting gross misconduct;
	 
	 	(b)	 	Commits a serious or, after written warning, serious and persistent
breach of this Agreement;
	 
	 	(c)	 	If he is a director of the Company or any Group Company, becomes
disqualified under statute from serving as a director;
	 
	 	(d)	 	is convicted of an indictable offence (other than a road traffic offence
for which a non-custodial penalty is imposed);
	 
	 	(e)	 	.

	3.5	 	If it is alleged that the Executive has engaged in conduct of a type referred to in clause
3.4:

	 	(a)	 	the Directors shall appoint a person to conduct any investigation they
think fit into the allegations of the relevant circumstances;
	 
	 	(b)	 	the Executive must attend the office of the Company or elsewhere and give
information, explanation or other assistance to the person conducting the
investigation, as directed by the Directors; and
	 
	 	(c)	 	during the whole or part of a period of investigation, the Directors may
in their sole discretion suspend the Executive with pay for a period:

	 	(i)	 	to be in the sole discretion of the Directors but
not exceeding three weeks; and
	 
	 	(ii)	 	during which the Company is not obliged to provide
the Executive with work.

	3.6	 	If the Executive is unable to perform the Duties because of illness or injury (other than
illness or injuries which arise as a result of the Executive’s Employment) for a period
exceeding a total of 12 weeks in any consecutive period of 24 weeks the Company may terminate
the Employment by giving the Executive three months’ notice. Such notice of termination must
be given whilst the incapacity continues. The Company must withdraw any such notice if,
during the currency of the notice, the Executive returns to full time duties and provides a
doctor’s certificate satisfactory to the Company to the effect that the Executive has fully
recovered his health and that no recurrence of his illness, injury or incapacity is
anticipated.

-6-

 

	3.7	 	If the Employment is terminated for any reason, the Executive must immediately resign from
any office in the Company and any Group Company to which he has been appointed.

4. Remuneration

	4.1	 	The Company agrees to provide the Executive during his Employment with the remuneration
package set out in Schedule 3.
	 
	4.2	 	The Basic Salary payable to the Executive is set out in Schedule 3 and:

	 	(a)	 	accrues from month to month;
	 
	 	(b)	 	is to be paid by equal monthly instalments on or about the 15th day of
each month;
	 
	 	(c)	 	is inclusive of any superannuation contributions required by law, any car
allowance, FBT and any other entitlements the Executive may wish to package;
	 
	 	(d)	 	is inclusive of any remuneration received or receivable by him in respect
of any office or employment in the Company or any Group Company; and
	 
	 	(e)	 	will be subject to annual increase (but not decrease) in accordance with
any increase in CPI only.

	4.3	 	The Executive acknowledges that his first salary review will take place on or around 1
January 2005.
	 
	4.4	 	The Company agrees, on the production of receipts in a form reasonably acceptable to the
Company, to reimburse the Executive all out-of-pocket expenses reasonably incurred by the
Executive in the proper performance of his Duties including reasonable expenses relating to
entertainment, accommodation, meals, and travel.
	 
	4.5	 	The Executive agrees to the deduction from his salary or other sums due to him of:

	 	(a)	 	statutory deductions, including tax;
	 
	 	(b)	 	any deductions which the Executive has authorised the Company to make;
	 
	 	(c)	 	contributions payable by the Executive under any superannuation scheme or
fund nominated by the Executive of which he is a member; and
	 
	 	(d)	 	other amounts owed by the Executive on any account to the Company or any
Group Company.

-7-

 

5. Performance Bonus and entitlement to

	5.1	 	The Executive shall be entitled to a Performance Bonus (which will be subject to annual
CPI adjustment), as detailed in Schedule 3, which shall be structured so that:

	 	(a)	 	The Performance Bonus is only payable if the Key Performance Indicators
(KPI’s) have been met for the relevant period. The KPI’s will be set annually at the
commencement of each financial year in consultation with the Chief Executive
Officer.

	5.2	 	The company has agreed to offer the Executive the opportunity to purchase shares in the
Company on terms set out in Schedule 4 of this agreement. The company acknowledges that the
offer of shares is an integral part of the remuneration package of the Executive and forms
part of the agreement between the parties.

6. Leave

	6.1	 	The Executive is entitled to 20 days annual leave in accordance with the relevant State
legislation, as amended from time to time.
	 
	6.2	 	The Executive will be entitled to long service leave in accordance with the relevant State
legislation, as amended from time to time

7. Illness and Sick Leave

	7.1	 	If the Executive:

	 	(a)	 	is prevented by illness, accident or any other cause from duly performing
his Duties; and
	 
	 	(b)	 	furnishes evidence if so required to the Company, satisfactory to the
Company (acting reasonably) of his incapacity,

the Executive will receive his full salary under this Agreement for the period of
incapacity not exceeding a period of ten days during any year of service (“Sick Leave”),
unless the Company, at its absolute discretion, agrees to increase this period in any
calendar year.

	7.2	 	Any period of Sick Leave, which remains untaken, will accumulate from year to year. However,
the Executive may not take more than fifteen days Sick Leave in any calendar year.

-8-

 

	7.3	 	The Executive is not entitled to any payment with respect to untaken Sick Leave upon the
termination of the Employment.
	 
	7.4	 	The Executive must notify a Director as early as possible on each day of his absence from
work, giving the reason for, and likely duration of his absence.
	 
	7.5	 	The Executive must give the Company a medical certificate for absences through illness or
injury of more than three consecutive days.

8. Superannuation

	8.1	 	As set out in clause 4.2(c), the Basic Salary includes the superannuation contributions
payable at the rate applicable (currently 9%) under the relevant superannuation legislation
and related legislation (the “Applicable Rate”).
	 
	8.2	 	Therefore, if the Applicable Rate increases so that it exceeds 9%, additional contributions
to the Executive’s nominated superannuation fund (if required) will be made out of the Basic
Salary.

9. Travel by the Executive

The Executive agrees to travel without further remuneration (except out-of-pocket expenses, as
provided by clause 4.4) within or outside Australia on the business of the Company or any Group
Company as and when necessary for the performance of the Duties and as may reasonably be required
of him by the Chief Executive Officer

10. Policies and Procedures

The Executive will comply with the Company’s staff policy agreement as amended from time to
time. To the extent that the staff policy agreement is inconsistent with the terms and conditions
of this Agreement, this Agreement will prevail.

11. Confidentiality

	11.1	 	Subject to clause 11.2, except with the consent of the Company (including at least one
director appointed by the Investor), the Executive will not, either during the period of his
employment or for the Period of Restraint anywhere in the Area of Restraint make use of or
divulge to any person any confidential technical or commercial information including customer
lists and supply lists or any manufacturing, marketing or promotional know how or technique of
a secret or confidential nature relating to the Business or its promotion and development
except in the proper performance of his Duties.
Nothing in this clause will prohibit disclosure of marketing or promotional know how to
other Royal Wolf companies.

-9-

 

	11.2	 	The Executive undertakes that he will during the period of the Employment use his best
endeavours to prevent the publication, use or disclosure of any trade secret or confidential
information referred to in clause 11.1.
	 
	11.3	 	Without limiting the generality of the trade secrets or confidential information described in
clause 11.1, the undertaking in this clause will also apply to the confidential information
which is listed in Schedule 2 to this Agreement by the Company.
	 
	11.4	 	Upon being requested to do so by the Company, the Executive undertakes to enter into such
confidentiality agreements with the Company, any Group Company, or any of their respective
clients, as the Company may require.

12. Restrictions

	12.1	 	Subject to clause 12.2, except with the consent of the Company the Executive will not,
during the Period of Restraint and anywhere in the Area of Restraint:

	 	(a)	 	either directly or indirectly and whether as principal, partner,
director, agent, consultant, employee, assistant, investor or otherwise howsoever be
engaged, participate or be interested in carrying on any business in competition
with the Business or the business of any Subsidiary, nor permit any of their names
to be used in connection with such business, with the exception of such businesses
(if any) as may have been notified in writing by the Executive to the Company before
the Commencement Date or agreed to by the Investor during the period of its
investment in the Company; or
	 
	 	(b)	 	entice or endeavour to entice into employment any person who was a
director or an employee of the Company at any time in the 12 months prior to the
Termination Date.

	12.2	 	Nothing in clauses 11 or 12 prevents the Executive from:

	 	(a)	 	holding for investment purposes only, marketable securities quoted at the
time of acquisition on a recognised stock exchange in Australia or elsewhere being
collectively not more than 5% of the issued share capital of the listed company; or
	 
	 	(b)	 	being interested in a company, a firm or a business:

	 	(i)	 	if that interest has been disclosed in writing to
the Investor prior to the Commencement Date; or

-10-

 

	 	(ii)	 	with the prior approval of a majority of the board
of directors of the Company (including at least one director appointed by
the Investor), such approval not to be unreasonably withheld, having
regard to the business interests of the Group and subject always to the
majority of such board being satisfied that the Executive will continue
to be able to satisfy fully his obligations under this Agreement; or
	 
	 	(iii)	 	with the prior written consent of the Company

	12.3	 	If the Company terminates the Employment, or if the Executive ceases to be employed by the
Company as a result of the Chief Executive Officer exercising a right under this Agreement,
then the Executive and the Company must meet for the purpose of agreeing whether the Period of
Restraint shall be varied or waived. In the absence of any such agreement, the Period of
Restraint shall be deemed to be the period commencing on the Commencement Date and ending 12
months thereafter.

	 	(i)	 	 

	12.4	 	The Executive acknowledges that during the Employment with the Company the Executive has or
will become possessed of secret and confidential information relating to the trade secrets and
business or finances of the Company or its Group Companies, and their respective clients and
customers, and the disclosure or use of such knowledge and information could materially harm
the Company and therefore agrees that the covenants contained in clauses 11 and 12 are
reasonable and necessary for the protection of the business of the Group.

	12.5	 	Without limiting the operation of the Restraint of Trade Act 1976 (NSW), if:

	 	(a)	 	any of the restrictions contained in this clause are judged to be
unenforceable by a Court or Tribunal because they go beyond what is reasonable to
protect the business of the Company, and
	 
	 	(b)	 	these restrictions would be judged reasonable by that Court or Tribunal
if the extent of the restrictions (including, but not limited to, the time periods
or geographical areas) were reduced,

then these restrictions will be reduced by the minimum amount required by that Court or
Tribunal to make them enforceable.

13. Documents and other Property of the Company

	13.1	 	Upon the termination of this Agreement the Executive agrees to deliver to the Company or
its authorised representative without any further demand:

	 	(a)	 	documents in the Executive’s possession or control relating in any way to
any confidential information or trade secrets of the
Company or any Group Company or its or their clients, or to the business or
affairs of the Company or any Group Company or its or their clients; and

-11-

 

	 	(b)	 	any property of the Company or any Group Company or thing to which the
Company or any Group Company is entitled.

	13.2	 	The Executive is not entitled to retain a copy of a document referred to in clause 13.1.

14. Copyright, Intellectual Property and Invention

	14.1	 	If at any time in the course of the Employment the Executive makes or discovers or
participates in the making or discovery of any invention or protectible work or design
(“Intellectual Property”) he shall immediately disclose full details of such Intellectual
Property to the Company and at the request and expense of the Company he shall do all things
which may be necessary or desirable for obtaining appropriate forms of protection for the
Intellectual Property in such parts of the world as may be specified by the Company and for
vesting all rights in the same in the Company or its nominee.
	 
	14.2	 	The Executive hereby irrevocably appoints the Company to be his attorney in his name and on
his behalf to sign or execute any instrument or do any thing and generally to use his name for
the purpose of giving to the Company or its nominee the full benefit of the provisions of this
clause relating to Intellectual Property.
	 
	14.3	 	The Executive hereby waives, to the extent permitted by law, all of his moral rights in
respect of any acts of the Company or any acts of third parties done with the Company’s
authority in relation to any Intellectual Property that is the property of the Company.
	 
	14.4	 	All rights and obligations under this clause in respect of Intellectual Property made or
discovered by the Executive during the Employment shall continue in full force and effect
after the termination of the Employment and shall be binding upon the Executive’s personal
representatives.

15. Continuing Obligations

Any provision of this Agreement remaining to be performed or observed by the Executive or
having affect after the termination of this Agreement for whatever reason remains in full force and
effect and is binding on the Executive.

-12-

 

16. Governing law and jurisdiction

	16.1	 	The law in force in New South Wales governs this Agreement and the transactions
contemplated by this Agreement.
	 
	16.2	 	Each party irrevocably and unconditionally submits to the non-exclusive jurisdiction of the
courts of New South Wales and courts of appeal from them for determining any dispute
concerning this Agreement or the transactions contemplated by this Agreement.
	 
	16.3	 	Without preventing any other mode of service, any document in an action (including, but not
limited to, any writ of summons or other originating process or any third or other party
notice) may be served on any party by being delivered to or left for that party at its address
for service of notices under clause 17.

17. Notices

	17.1	 	A notice, approval, consent, or other communication in connection with this Agreement:

	 	(a)	 	must be in writing; and
	 
	 	(b)	 	must be left at the address of the addressee, or sent by prepaid ordinary
post (airmail if posted to or from a place outside Australia) to the address of the
addressee which is specified in this clause or, if the addressee has notified the
other party that another address is the address for service, then to that address,
or sent by facsimile to the other party.

The address of each party is:

	 	 	 
	The Company
	 	 
	Address:

	 	Suite 202, Level 2,
	 

	 	22-28 Edgeworth David Avenue
	 

	 	Hornsby NSW 2077
	Fax:

	 	9482 3477
	 
	 	 
	The Executive
	 	 
	Address:

	 	124 Annangrove Road
	 

	 	ANNAGROVE NSW 2156

	17.2	 	A notice, approval, consent or other communication takes effect from the time it is received
unless a later time is specified in it.
	 
	17.3	 	A letter or facsimile is taken to be received:

-13-

 

	 	(a)	 	in the case of a posted letter, on the third (seventh, if posted to or
from a place outside Australia) day after posting; and
	 
	 	(b)	 	in the case of facsimile, on production of a transmission report by the
machine from which the facsimile was sent which indicates that the facsimile was
sent in its entirety to the facsimile number of the recipient.

18. Assignment

The rights under this Agreement are personal. A party may not assign his rights under this
Agreement without the written consent of the other party.

19. Severability

	(a)	 	The parties consider the covenants, obligations and restrictions contained in this
Agreement (“the Covenants”) to be reasonable in all the circumstances of the Employment.
	 
	(b)	 	Subject always to clause 12.5 and the operation of the Restraint of Trade Act 1976 (NSW),
each and every part of the Covenants will be taken to be a severable and independent covenant
with the intent that, if they are, taken together, adjudged to go beyond what is reasonable in
all the circumstances but would be adjudged reasonable with any one or more Covenants or any
one or more parts of the Covenants deleted, the Covenants will be taken to apply as if those
Covenants or parts of Covenants so adjudged unreasonable were deleted.

20. Waiver and Variation

	20.1	 	Failure or omission by the Company at any time to enforce or require strict or timely
compliance with any provision of this Agreement does not affect or impair that provision in
any way or the rights of the Company to avail itself of the remedies it may have in respect of
any breach of that provision.
	 
	20.2	 	A provision of or a right created by this Agreement may not be:

	 	(a)	 	waived except in writing signed by the party granting the waiver; or
	 
	 	(b)	 	varied except in writing signed by the parties.

-14-

 

21. Entire agreement

Unless the contrary intention appears, this Agreement constitutes the entire agreement of the
parties and its subject matter and any previous agreements, understandings and negotiations on that
subject matter cease to have any effect.

22. No Representations and Warranties

The Executive acknowledges that in entering into this Agreement he has not relied on any
representations or warranties about the subject matter of this Agreement except as provided in this
Agreement.

23. Independent Legal Advice

The Executive acknowledges that he has read the terms of this Agreement and understands it.
The Executive further acknowledges that he has had a reasonable opportunity to obtain independent
legal advice regarding the effect and impact of this Agreement, and in particular clauses 11, 12,
13 and 14.

-15-

 

Schedule 1

Job description

Job Title:              Chief Financial Officer

Reports to:           Chief Executive Officer

SUMMARY

The purpose of the position is to lead and manage the finance and administrative functions of
Royal Wolf and be fully engaged its commercial/business development activities. The role
encompasses responsibility for the management of financial operations, reporting, and corporate
risk within the company. In particular, the CFO will be responsible for the development of a
business planning and reporting framework and will work closely with the CEO in developing a
comprehensive business plan. He/She will be responsible for the timely and accurate reporting and
forecasting of the Royal Wolf’s historic and future business and financial performance and ensure
compliance with applicable financial accounting standards, statutory obligations and corporate
governance, by performing the following duties personally or through
subordinate staff.

ESSENTIAL DUTIES AND RESPONSIBILITIES include the following. Other duties may be assigned.

	 	 	 	 	 	 	 
	1

	 	Treasury and Cash
Flows
	 	•
	 	Oversee and direct Treasury, budgeting,
audit, tax, accounting, purchasing, real
estate, long range forecasting and insurance
activities for the Company
	 
	 	 	 	 	 	 
	2

	 	Ensures Integrity
of Internal
Accounting
	 	•

•
	 	Competent Systems Administration 

Oversee current systems giving
consideration to integrity, stability and
accuracy
	 

	 	Systems	 	•
	 	Ensure any weaknesses in the systems
are identified and appropriate action taken
	 

	 	 	 	•
	 	Identifies areas of risk and make
appropriate controls where necessary
	 
	 	 	 	 	 	 
	3

	 	Managing

Relationships
	 	•
	 	Take responsibility for managing
relationships with the organisation’s
financiers to deliver the agree business plan
	 
	4

	 	Production of
Financial
Statements
accurately and in
accordance with
Organisational
Schedule	 	•
	 	Direct the timely and accurate
Financial Reports completed by Financial
Controller
	 

	 	 	•
	 	Ensure the integrity of accounting
information supplied to management
	 

	 	 	•
	 	Respond in a timely manner to financial
questions coming from the branch offices so
that they can effectively perform their duties
	 

	 	 
	 	•

•
•
	 	Identify, anticipate and provide
solutions to impending problems 

Provide advice to management on the
financial direction of the company

Produce Profit and Loss Report, Cash
flow Report,

-16-

 

	 	 	 	 	 	 	 
	 

	 	 	 	 
	 	Report, Balance Sheet and Debtors Reports
in accordance with Organisation timetable.
	 
	5

	 	Preparation and
Maintenance of
Budgets in
accordance with
Organisational Plan	 	•
	 	Assist and advise CEO with the
preparation of annual Budgets and plans
	 

	 	 	•
	 	Prepare consolidated Profit & Loss,
Balance Sheet and Cash flow Budget in
conjunction with CEO
	 

	 
	 	•
	 	Ensure Organisational budgets are
adhered to by controlling both direct and
indirect costs within budget restrictions
	 
	 	 	 	 	 	 
	6

	 	Tax Planning and
Reporting
	 	•
	 	Coordinate the tax planning and
reporting
	 
	 	 	 	 	 	 
	7

	 	Conduct Economic

Studies
	 	•
	 	Direct and analyse studies of general
economic, business and financial conditions and
their impact on the organisation’s policies and
operations
	 
	 	 	 	 	 	 
	8

	 	Statutory Reporting
	 	•
	 	Compile and analyse financial
information and provide required management
statutory reporting
	 
	 	 	 	 	 	 
	9

	 	Risk Management
	 	•
	 	Implement a risk management system and
oversee procedures to minimise the
organisation’s risks

-17-

 

Schedule 2

Confidential Information

	1.	 	The Group’s business and strategic plans.
	 
	2.	 	The Group’s budgets and financial projections.
	 
	3.	 	Information, documents or knowledge that by their nature are confidential relating to the
business affairs, finances or transactions of the Group.
	 
	4.	 	Manuals, procedures, computer programs, policies and procedures of the Group.
	 
	5.	 	Details of customers and clients.
	 
	6.	 	Pricing information.
	 
	7.	 	Information or data that is designated, labelled or treated by the Company or any of the
Group Companies as confidential.

-18-

 

Schedule 3

Remuneration Details

	 	 	 
	Position:

	 	Chief Financial Officer
	Basic Salary:

	 	$250,000 This amount is inclusive of superannuation,
car allowance, FBT and any other entitlements the
Executive may wish to package. This amount will be
increased (but not decreased) by CPI only each year.
	 
	 	 
	Performance Bonus:

	 	Maximum Performance Bonus of $35,000
Payment of the Performance Bonus is conditional upon
the achievement of the KPI’s
	 
	 	 
	 

	 	The Performance Bonus is payable in cash and is
inclusive of any superannuation payable.
	KPI’s:
	 	 
	Benefits:

	 	Car parking, mobile phone, notebook computer,
	 
	 	 
	Commencement Date:

	 	17 May 2004

-19-

 

Schedule 4

Share offer to Executive (the chief financial officer”) in relation to the “CFO shares”.

	(a)	 	Equity Partners acknowledges that the CFO Shares are held by Equity Partners on trust for
a new chief financial officer of the Company.
	 
	(b)	 	The chief financial officer either in his own name or in the name of a nominee to be agreed
by the Chief Executive officer has the right to acquire the CFO Shares for $0.50 cents plus
10% per annum (on a compound basis applying six-monthly rests) from the Completion Date per
Ordinary Share in 5 equal tranches as follows:

	 	(i)	 	14,400 of the Ordinary CFO Shares and 1 of the C Class CFO Shares on the
1st anniversary of the commencement of employment of the chief financial
officer;
	 
	 	(ii)	 	14,400 of the Ordinary CFO Shares and 1 of the C Class CFO Shares on the
2nd anniversary of the commencement of employment of the chief financial
officer;
	 
	 	(iii)	 	14,400 of the Ordinary CFO Shares and 1 of the C Class CFO Shares on the
3rd anniversary of the commencement of employment of the chief financial
officer;
	 
	 	(iv)	 	14,400 of the Ordinary CFO Shares and 1. of the C Class CFO Shares on the
4th anniversary of the commencement of employment of the chief financial
officer; and
	 
	 	(v)	 	14,400 of the Ordinary CFO Shares s on the 5th anniversary of the
commencement of employment of the chief financial officer.

-20-

 

	 	(e)	 	The chief financial officer’s entitlement to each subsequent tranche of Shares will terminate
from the date that he or she ceases to be an employee of the Company.
	 
	 	(f)	 	In order to exercise its right to acquire a tranche of the CFO Shares the chief financial
officer must give written notice to Equity Partners of his intention to acquire that tranche
of the CFO Shares together with a bank cheque for the relevant amount within 10 days after
each anniversary date.
	 
	 	(g)	 	Within 5 Business Days of receiving a notice and bank cheque from the chief financial officer
Equity Partners must provide to the chief financial officer a share transfer form signed by
Equity Partners as transferor for the relevant number of the CFO Shares.
	 
	 	(h)	 	If a Realisation Event occurs prior to all of the CFO Shares vesting in accordance with this
Schedule, immediately prior to completion of the relevant Realisation Event, the chief
financial officer will have the right to acquire the balance of the CFO Shares not vested at
the then current price.
	 
	 	(i)	 	If the chief financial officer ceases to be employed by the Company at a time when the right
to acquire some or all of the CFO Shares has not vested, then Equity Partners will continue to
hold the unvested CFO Shares on trust for a replacement chief financial officer.
	 
	 	(j)	 	if the chief financial officer takes up the shares in the name of a nominee, the nominee must
agree in writing to be bound to the same terms and conditions of the offer as though the
shares had been taken up by the chief financial officer.
	 
	 	(k)	 	The company may at its discretion, “cash out”, buy back or cancel for full market value
consideration,the CFO shares.

-21-

 

Executed as an agreement

	 	 	 	 	 	 	 
	Signed by

	 	 	)	 	 	 
	Royal Wolf Trading Australia Pty Ltd

	 	 	)	 	 	 
	by a director and director:

	 	 	)	 	 	 
	 

	 	 	)	 	 	 

	 	 	 
	/s/ Michael P. Baxter	 	/s/ Gregory B. Baker
	 

	 	 
	Signature of director

	 	Signature of director
	 
	 	 
	Michael P. Baxter	 	Gregory B. Baker
	 

	 	 
	Name of secretary/director (please print)

	 	Name of director
	 
	 	 
	 

	 	(please print)

	 	 	 	 	 	 	 
	Signed by

	 	 	)	 	 	 
	Peter McCann

	 	 	)	 	 	 
	in the presence of:

	 	 	)	 	 	 

	 	 	 
	/s/ Kathryn Woulfe

	 	/s/ Peter McCann
	 

	 	 
	Signature of witness

	 	Signature of Peter McCann
	 
	Kathryn Woulfe	 	 
	 
 
	 	 

Name of
witness (please print) 

-22-

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