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EXHIBIT 10.6

 

 

 

 

 

 

 

 

 

 

 

July 29, 2016

 

 

 

 

 

 

 

INNOVATIVE SOLAR 31, LLC

 

and

 

VIVOPOWER USA LLC

 

 

 

 

 

 DEVELOPMENT SERVICES AGREEMENT

in relation to the IS31 solar photovoltaic 

project in Bladenboro, North Carolina 

 

 

  

 

 

86696224.7 0058116-00002 

 

 

EXHIBIT 10.6

 

TABLE OF CONTENTS

 

 

	
Clause
	
Headings
	
Page

	
1.
	
definitions and interpretation
	
1

	
2.
	
DEVELOPMENT SERVICES
	
4

	
3.
	
TERM
	
5

	
4.
	
Timing of DEVELOPMENT Services
	
5

	
5.
	
Status of Developer
	
5

	
6.
	
Subcontracting
	
6

	
7.
	
FEES AND PAYMENT
	
6

	
8.
	
PERFORMANCE REVIEW
	
7

	
9.
	
Changes to Development services
	
7

	
10.
	
INtellectual property
	
8

	
11.
	
Force Majeure
	
8

	
12.
	
TERMINATION
	
9

	
13.
	
LIMITATIONS ON LIABILITY; INDEMNITY
	
10

	
14.
	
dispute resolution
	
11

	
15.
	
Governing Law
	
12

	
16.
	
mutual representations and warranties
	
12

	
17.
	
MISCELLANEOUS
	
12

	
Schedule 1  
	
 

 

 

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EXHIBIT 10.6

 

THIS AGREEMENT is made on July 29, 2016

 

BETWEEN:

 

	
(1)
	
INNOVATIVE SOLAR 31, LLC, a North Carolina limited liability company ("ProjectCo"); and

 

	
(2)
	
VivoPower USA LLC, a Delaware limited liability company ("Developer").

 

RECITALS:

 

	
(A)
	
ProjectCo desires to engage Developer to provide certain services in connection with the development, construction and installation of the approximately 34.2 MW (AC) solar photovoltaic project in Bladen County, North Carolina that is referred to as the IS31 Project (the "Project"), and Developer desires to accept such engagement, on the terms and conditions set forth herein.

 

	
(B)
	
In consideration for the services to be provided by Developer, ProjectCo has agreed to pay to Developer certain amounts in the manner set forth herein.

 

IT IS AGREED as follows:

 

	
1.
	
definitions and interpretation

 

	
1.1
	
Definitions

 

In this Agreement, each of the following words and expressions shall have the following meanings:

 

"Affiliates" means in relation to any person, any other person directly or indirectly Controlled by, or Controlling of, or under common Control with, that person; provided, however, that (i) with respect to Developer, “Affiliate” shall not include ProjectCo and (ii) with respect to ProjectCo, “Affiliate” shall not include Developer;

 

"Business Day" means a day on which the banks are open for business in New York, New York, excluding a Saturday, Sunday or public holiday in New York, New York;

 

“Claim” means, collectively, all claims, demands, actions, suits or proceedings (judicial, governmental or otherwise) asserted, threatened in writing or filed against a Person, and any fines, penalties, losses, liabilities, damages and expenses incurred by such Person as a result thereof, including reasonable attorneys’ fees and costs of investigation, litigation, settlement and judgment, and any contractual obligations of such Person to provide indemnity for any such claims, demands, actions, suits or proceedings, fines, penalties, losses, liabilities, damages and expenses to any other Person.

 

"Confidential Information" has the meaning given to it in clause 17.1;

 

"Control" means the power of a person to secure, directly or indirectly (whether by the holding of shares, possession of voting rights or by virtue of any other power conferred by the articles of association, constitution, partnership deed or other documents regulating another person or otherwise), that the affairs of such other person are conducted in accordance with his or its wishes and "Controlled" and "Controlling" shall be construed accordingly;

 

"Development Fee" the amount of Eleven Million Five Hundred Fifty Thousand Dollars ($11,550,000) payable by ProjectCo to Developer in accordance with the terms hereof;

 

"Development Period" has the meaning given to it in clause 3;

 

"Development Services" means the services requested by ProjectCo as described in Schedule 1;

 

"Dispute" means any dispute, difference or claim of any kind or type, whether based on contract, tort, statute, regulation or otherwise, arising out of, relating to or connected with this agreement or its subject matter, existence, negotiation, interpretation, validity, performance, breach, termination or enforceability (including non-contractual disputes or claims), or any operations carried out pursuant to this Agreement;

 

 

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EXHIBIT 10.6

 

"Dispute Notice" has the meaning given to it in clause 14.1.1;

 

"Effective Date" means the date on which this Agreement is executed;

 

"Financing Agreement" means the Financing Agreement, dated as of the date hereof, among ProjectCo, as borrower, KeyBank National Association, as administrative agent and collateral agent, and the Lenders party thereto from time to time. 

 

"Force Majeure" means, in relation to a Party, any act, event or circumstance, to the extent to which the cause of such act, event or circumstance is not of such Party's making nor within that Party's reasonable control, including:

 

	 	
(a)
	
an act of God; 

 

	 	
(b)
	
fire, flood, typhoon, tsunami, volcanic activity, earthquake or extreme weather conditions;

 

	 	
(c)
	
war (including civil war), hostilities (whether or not war has been declared), invasion, coup, guerrilla activity, sanctions or blockade; 

 

	 	
(d)
	
terrorist acts or a threat of a terrorist act;

 

	 	
(e)
	
riot, insurrection, civil commotion, public demonstration, sabotage, embargo or acts of vandalism;

 

	 	
(f)
	
explosion or impact of any mine, bomb, shell, grenade or other projectile or missile;

 

	 	
(g)
	
release of ionising radiation or contamination by radioactivity, chemical or biological contamination;

 

	 	
(h)
	
acts of any civil or military authority or direction of any Governmental Authority;

 

	 	
(i)
	
restriction, suspension or withdrawal of any licences, approvals, permits or consents or any required licence, approval, permit or consent not being granted on a timely basis, in each case not arising as a result of such Party;

 

	 	
(j)
	
materially adverse change in law or regulation;

 

	 	
(k)
	
the order of any court, arbitral body or Governmental Authority;

 

	 	
(l)
	
any strike, lock out or other industrial trade dispute or action (not arising as a result of such Party and not involving solely the employees of that Party, or the employees of that Party's subcontractors); and

 

	 	
(m)
	
structural shift or subsidence;

 

"Governmental Authority" means any government or state and any ministry, department or political subdivision thereof, and any person, including without limitation any body corporate or partnership, exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, government (including any independent regulator) or any other governmental entity, instrumentality, agency, authority, corporation, committee or commission under the direct or indirect control of a government;

 

"Insolvency" as to any Person means the filing of a petition for relief as to any such Person as debtor or bankrupt under Title 11 of the United States Code, as in effect from time to time, or like provision of Law (except if such petition is contested by such Person and has been dismissed within sixty (60) days); insolvency of such Person as finally determined by a court proceeding; filing by such Person of a petition or application to accomplish the same or for the appointment of a receiver or a trustee for such Person or a substantial part of its assets; commencement of any proceedings relating to such Person under any other reorganization, arrangement, insolvency, adjustment of debt or liquidation law of any jurisdiction, whether now in existence or hereinafter in effect, either by such Person or by another, provided that if such proceeding is commenced by another, such Person indicates its approval of such proceeding, consents thereto or acquiesces therein, or such proceeding is contested by such Person and has not been finally dismissed within sixty (60) days;

 

 

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EXHIBIT 10.6

 

"Intellectual Property" means all inventions (whether patentable or not), patents, utility models, petty patents, registered designs, design rights, database rights, copyright and related rights, moral rights, semiconductor topography rights, plant variety rights, trade marks, service marks, logos, get up, trade names, business names, domain names, (in each case whether registered or unregistered) and including any applications for registration and any renewals or extensions of any of the foregoing, and, in each case, the goodwill attaching to any of the foregoing, rights to sue for passing off or for unfair competition, all Know How, confidential information and trade secrets and any rights or forms of protection of a similar nature or having equivalent or similar effect to any of them which subsist anywhere in the world;

 

"Know How" means all know how, trade secrets and confidential information, in any form (including paper, electronically stored data, magnetic media, film and microfilm) including financial and technical information, drawings, formulae, test results or reports, project reports and testing procedures, information relating to the working of any product, process, invention, improvement or development, instruction and training manuals, tables of operating conditions, information concerning intellectual property portfolio and strategy, market forecasts, lists or particulars of customers and suppliers, sales targets, sales statistics, prices, discounts, margins, future business strategy, tenders, price sensitive information, market research reports, information relating to research and development and business development and planning reports and any information derived from any of them; 

 

"Law" means any statute, regulation, order, rule, subordinate legislation or other document enforceable under any statute, regulation, rule or subordinate legislation, including:

 

	 	
(a)
	
principles of law or equity;

 

	 	
(b)
	
standards with which the relevant Party is required to comply; and

 

	 	
(c)
	
fees, rates, taxes, levies, and charges payable in respect of things referred to in this definition,

 

whether or not existing at the Effective Date;

 

"Notice" has the meaning given to it in clause 17.2.1;

 

"Notice Details" has the meaning given to it in clause 17.3;

 

"Parties" means ProjectCo and Developer and a "Party" means any one of them;

 

"Person" or "person" means any individual, partnership, joint venture, limited liability company, corporation, trust or other entity, and the heirs, executors, administrators, legal representatives, successors and assigns of such Person where the context so requires;

 

"Project" has the meaning given to it in in the Recitals;

 

"Project Budget" means the Project Budget and Schedule referred to in the Financing Agreement; 

 

“Project Documents” has the meaning given such term in the Financing Agreement;

 

"Prudent Solar Industry Practices" means those reasonable practices, methods and acts, as they may change from time to time, that (a) are customarily used within the solar energy industry to develop, construct and install solar energy generating facilities and associated facilities of the type that are similar to the Project, safely, reliably and efficiently and in compliance with applicable Law, manufacturers’ warranties and manufacturers’ recommendations and (b) are consistent with the exercise of the reasonable judgment, skill, diligence, foresight and care customary in the solar energy industry of a solar energy generating project developer in order to efficiently accomplish the desired result consistent with safety standards, applicable Law, manufacturers’ warranties, manufacturers’ recommendations, the Financing Agreement, the Tax Equity Documents and the Project Documents, in each case taking into account the location of the Project, including climatic, environmental and general conditions. Prudent Solar Industry Practices are not intended to be limited to the optimum practices or methods to the exclusion of others, but rather those practices or methods generally accepted or approved by a significant portion of the photovoltaic solar power industry during the relevant time period.

 

 

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EXHIBIT 10.6

 

"Subcontractor" means a subcontractor, supplier or consultant engaged by or on behalf of Developer in the performance of Development Services;

 

"Success" means the occurrence of either of the NES ECCA Equity Contribution or the Tax Equity Tranche B Equity Contribution, each as defined in the Financing Agreement; and

 

“Tax Equity Documents” has the meaning given such term in the Financing Agreement.

 

	
1.2
	
Interpretation

 

	 	
1.2.1
	
Headings and bold type are for convenience only and do not affect the interpretation of this Agreement.

 

	 	
1.2.2
	
The singular includes the plural and the plural includes the singular.

 

	 	
1.2.3
	
Words of any gender include all genders.

 

	 	
1.2.4
	
Other parts of speech and grammatical forms of a word or phrase defined in this Agreement have a corresponding meaning.

 

	 	
1.2.5
	
An expression importing a person includes any company, partnership, joint venture, association, corporation or other body corporate and any Governmental Authority as well as an individual.

 

	 	
1.2.6
	
A reference to a clause, party, schedule, attachment or exhibit is a reference to a clause of, and a party, schedule, attachment or exhibit to, this Agreement and a reference to this Agreement includes any schedule, attachment and exhibit.

 

	 	
1.2.7
	
A reference to a document includes all amendments, modifications or supplements to, or replacements or novations of, that document.

 

	 	
1.2.8
	
A reference to a party to a document includes that party’s successors and permitted assignees.

 

	 	
1.2.9
	
A reference to an agreement other than this Agreement includes a deed and any legally enforceable undertaking, agreement, arrangement or understanding, whether or not in writing.

 

	 	
1.2.10
	
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.

 

	 	
1.2.11
	
Specifying anything in this Agreement after the words ‘include’ or ‘for example’ or similar expressions does not limit what else is included.

 

	 	
1.2.12
	
A reference to writing includes any method of representing or reproducing words, figures, drawings or symbols in a visible or tangible form.

 

	
2.
	
DEVELOPMENT SERVICES

 

	
2.1
	
Scope

 

	 	
2.1.1
	
Subject to the terms of this Agreement, Developer shall provide, or procure the provision of, the Development Services during the Development Period to ProjectCo.

 

 

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EXHIBIT 10.6

 

	 	
2.1.2
	
Developer acknowledges that the functions specified in Schedule 1 are non-exhaustive and the Development Services to be provided or procured include all management, administration, registry, secretarial, marketing, financial controls and compliance with Law, unless otherwise prescribed.

 

	
2.2
	
Standard of Performance

 

	 	
2.2.1
	
Developer shall provide Development Services, complete the work and accomplish the tasks described in Schedule 1 with diligence, care, prudence, in a safe and responsible manner and in accordance with Prudent Solar Industry Practices, and Developer shall devote such time, effort, and skills of its personnel as a reasonable servicer provider in like position would do in like circumstances.

 

	 	
2.2.2
	
Developer shall ensure that its employees and Subcontractors hired to perform the Development Services are appropriately licensed and shall use reasonable efforts to ensure such employees and Subcontractors are qualified to perform the work for which they are hired.

 

	 	
2.2.3
	
Developer is not required or obliged to fulfill, or comply with, any provision of this Agreement or any instruction, comment, recommendation, communication or direction by ProjectCo that would cause Developer to breach applicable Law.

 

	
3.
	
TERM

 

The "Development Period" means the period commencing on the Effective Date and continuing until the date which is the earlier of:

 

	 	
(A)
	
the achievement of Success; and

 

	 	
(B)
	
the date on which this Agreement is terminated in accordance with its terms.

 

	
4.
	
Timing of DEVELOPMENT Services

 

Developer shall carry out Development Services as and when specified by ProjectCo from time to time, except in the event of Force Majeure, in which case clause 11 applies.

 

	
5.
	
Status of Developer

 

	
5.1
	
Independent Corporate Entity

 

	 	
5.1.1
	
In performing Development Services, Developer acts as an independent corporate entity and not an agent, employee, partner or joint venturer of ProjectCo or any of its Affiliates, except:

 

	 	
(A)
	
to the extent that Developer is required to act as the agent for ProjectCo to perform the Development Services;

 

	 	
(B)
	
if instructed by ProjectCo in writing to act as an agent in a specified circumstance; or

 

	 	
(C)
	
where it is necessary by Law for Developer to act on behalf of ProjectCo in carrying out any obligations under clause 6.2.

 

	 	
5.1.2
	
If exceptions in clause 5.1.1 apply Developer has the authority to incur, assume or create, in writing or otherwise, any liability or obligation of any kind, express or implied, in the name or on behalf of the ProjectCo.

 

 

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EXHIBIT 10.6

 

	 	
5.1.3
	
For avoidance of doubt, in all other circumstances to which exceptions in clause 5.1.1 do not apply it is intended by the Parties that Developer and ProjectCo remain independent corporate entities responsible for own actions.

 

	 	
5.1.4
	
Except as specifically provided for in this Agreement, Developer will bear the costs of its own internal administrative and operational expenses.

 

	
5.2
	
Assistance by ProjectCo

 

	 	
5.2.1
	
The Parties acknowledge and agree that Developer may, from time to time, require the assistance of ProjectCo to perform Development Services.

 

	 	
5.2.2
	
ProjectCo shall provide Developer free of charge any reasonable assistance that Developer requests in writing to facilitate the provision of the Development Services.

 

	 	
5.2.3
	
Developer is not required to provide Development Services to the extent that ProjectCo does not provide the assistance referred to in this clause 5.2.

 

	
6.
	
Subcontracting

 

	
6.1
	
Authority to Subcontract and Delegate

 

	 	
6.1.1
	
Developer may, at any time, subcontract or delegate in any manner any or all of its rights and obligations under this Agreement without ProjectCo’s consent.

 

	 	
6.1.2
	
Developer is responsible for ensuring the suitability of any Subcontractor that it engages to provide Development Services to ProjectCo and must ensure that the work performed by any Subcontractor complies with the requirements of this Agreement.

 

	 	
6.1.3
	
Developer:

 

	 	
(A)
	
is not relieved of any of its obligations and liabilities under this Agreement as a result of any subcontracting of those obligations or liabilities; 

 

	 	
(B)
	
at all times remains responsible for the performance of all Subcontractors that it engages to provide Development Services to ProjectCo, and acts and omissions of such Subcontractors, as if they were acts and omissions of Developer; and

 

	 	
(C)
	
acknowledges and agrees that a breach by a Subcontractor of, or failure by a Subcontractor to comply with, any obligation of Developer under this Agreement is a breach or failure by Developer under this Agreement.

 

	
6.2
	
Third Party Contracts, Permits and Licences

 

	 	
6.2.1
	
Subject to clauses 5.1.4 and 6.2.2 and save as otherwise expressly provided in Schedule 1, where Developer procures the services of a third party on behalf of ProjectCo to deliver the Development Services, or otherwise incurs costs on behalf of ProjectCo, including licence and permitting costs, the related costs shall be invoiced directly to ProjectCo, in each case in accordance with the Project Budget, and ProjectCo shall meet all such payment obligations when due.

 

	 	
6.2.2
	
Developer shall be responsible for any costs of subcontracting its performance of any Development Services pursuant to clause 6.1.

 

	
7.
	
FEES AND PAYMENT

 

	
7.1
	
Fees

 

	 	
7.1.1
	
The Parties acknowledge and agree that no fees are payable by ProjectCo for the provision of Development Services by Developer unless and until Success is achieved.

 

 

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EXHIBIT 10.6

 

	 	
7.1.2
	
Conditional upon the Parties achieving Success, ProjectCo shall pay the Development Fee to Developer.

 

	 	
7.1.3
	
The amount of the Development Fee is exclusive of any applicable value added tax or other tax (other than any tax in the nature of a business or income tax). Any applicable value added tax or other tax shall be added to the Development Fee payable by ProjectCo. 

 

	
7.2
	
Payment

 

	 	
7.2.1
	
After the Parties have achieved Success and on receipt of a valid invoice from Developer, ProjectCo shall pay the Development Fee to Developer on the terms contained therein. 

 

	 	
7.2.2
	
Overdue payments hereunder shall bear interest from the date due until the date paid at a rate per annum equal to lesser of (a) the rate published by the Wall Street Journal as the “prime rate” on the Business Day preceding the date on which such interest begins to accrue plus two percent (2.0%) or (b) the maximum rate allowed under applicable Law.

 

	
8.
	
PERFORMANCE REVIEW

 

	
8.1
	
Inspection

 

	 	
8.1.1
	
ProjectCo has the right, at any time, to inspect the work undertaken by Developer and any of its Subcontractors in relation to Development Services, provided that reasonable notice has been given to Developer.

 

	 	
8.1.2
	
Developer shall, and shall procure that its Subcontractors, comply with all reasonably requested inspections by ProjectCo under clause 8.1.1.

 

	
8.2
	
Documents and Records

 

	 	
8.2.1
	
Developer shall maintain records in respect of Development Services provided to ProjectCo and make available for inspection any such documents and information reasonably requested by ProjectCo.

 

	 	
8.2.2
	
Developer will not be in breach of its record keeping obligations under this clause 8.2 to the extent that it reasonably relies on a third party to produce a report or provide information and the third party fails to so or fails to do so in a timely manner.

 

	
9.
	
Changes to Development services

 

	
9.1
	
Variations Permitted

 

	 	
9.1.1
	
The Parties may, at any time, vary the nature of the Development Services to be provided to ProjectCo.

 

	 	
9.1.2
	
The Parties, acting reasonably, must agree in writing on the scope and extent of the variation to the Development Services before Developer carries out the varied Development Services.

 

	 	
9.1.3
	
If the Parties agree to vary Development Services, Developer must carry out the Development Services as if the varied Development Services were originally defined in this Agreement.

 

 

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EXHIBIT 10.6

 

	
9.2
	
Suspension of Services

 

	 	
9.2.1
	
Without limiting ProjectCo’s other rights under this Agreement, ProjectCo may by written notice to Developer temporarily suspend the performance of all or any part of the Development Services.

 

	 	
9.2.2
	
As soon as reasonably practicable after receipt of notice under clause 9.2.1, Developer must suspend the provision of Development Services specified in the notice.

 

	
10.
	
INtellectual property

 

	
10.1
	
Intellectual Property to be owned by Developer

 

With the exception of Intellectual Property owned by ProjectCo, all Intellectual Property in, arising out of, or in connection with, Development Services shall be owned by Developer.

 

	
10.2
	
Intellectual Property to be retained by Developer

 

	 	
10.2.1
	
The Parties acknowledge and agree that Developer retains all rights, title and interest in Intellectual Property relating to Development Services on:

 

	 	
(A)
	
the expiry of this Agreement; or 

 

	 	
(B)
	
termination of this Agreement.

 

	
11.
	
Force Majeure

 

	
11.1
	
Notice of Force Majeure

 

	 	
11.1.1
	
If as a result of Force Majeure a Party is rendered unable, wholly or in part, to carry out its obligations under this Agreement, other than an obligation to pay money, then that Party must give written notice to the other Party setting out:

 

	 	
(A)
	
reasonably full particulars of the Force Majeure; and

 

	 	
(B)
	
an estimate of the period of time that the Party reasonably considers it would require to remove or overcome the Force Majeure situation.

 

	
11.2
	
Reasonable endeavours to overcome Force Majeure

 

	 	
11.2.1
	
A Party affected by Force Majeure must use all reasonable endeavours to remove or overcome the Force Majeure situation as quickly as possible in an economic manner.

 

	 	
11.2.2
	
No Party will be obliged to settle any strike, lockout, ban, labour dispute or other industrial disturbance except on terms acceptable to it.

 

	 	
11.2.3
	
A Party affected by Force Majeure must keep the other Party informed of all significant developments in relation to the Force Majeure.

 

	
11.3
	
Suspension of obligations during Force Majeure

 

	 	
11.3.1
	
The obligation to give notice under clause 11.1 will, to the extent that the obligation is affected by Force Majeure, be suspended during the continuance of Force Majeure.

 

	 	
11.3.2
	
Without limiting clause 11.2, to the extent that a Party cannot meet its obligations due to Force Majeure, the performance of obligations under this Agreement will be extended for such period of delay or prevention.

 

 

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EXHIBIT 10.6

 

	
12.
	
TERMINATION

 

	
12.1
	
Termination upon payment of Development Fee

 

This Agreement shall automatically terminate upon payment in full of the Development Fee and all other accrued fees incurred prior to termination in accordance with clause 7.

 

	
12.2
	
Termination for Insolvency

 

Either Party may terminate this Agreement immediately by notice in writing to the other Party upon the Insolvency of such other Party.

 

	
12.3
	
Termination for breach

 

Either Party may terminate this Agreement by written notice to the other Party if the other Party is in material breach of this Agreement and does not remedy that breach within 30 Business Days following a written request to do so.

 

	
12.4
	
Effect of termination 

 

If this Agreement is terminated in accordance with this clause 12, then:

 

	 	
(A)
	
each Party is released from further performance of its obligations under this Agreement, except those expressed to survive termination (set out below);

 

	 	
(B)
	
each Party retains the rights it has against the other Party in respect of any breach of this Agreement occurring before termination; and

 

	 	
(C)
	
the rights and obligations of each Party under the following clauses will continue independently from the other obligations of the Parties and survive termination of this Agreement: clause 10 (Intellectual Property), this clause 12.4 (Effect of Termination), clause 13 (Limitations on Liability; Indemnity), clause 14 (Dispute Resolution), clause 15 (Governing Law) and clause 17 (Miscellaneous).

 

	
12.5
	
Cost of termination 

 

Subject to clause 12.6, if this Agreement is terminated, each Party must bear its own costs, expenses, losses and outgoings (including all duties, taxes, imposts, and charges of an incidental to the termination of this Agreement).

 

	
12.6
	
Outstanding claims not affected

 

	 	
12.6.1
	
The termination of this Agreement does not affect:

 

	 	
(A)
	
any claim by Developer in respect of accrued fees incurred prior to termination;

 

	 	
(B)
	
any claim or accrued right or remedy which either Party may have against the other; or

 

	 	
(C)
	
any transaction properly entered into with third parties before the termination date.

 

 

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EXHIBIT 10.6

 

	
13.
	
LIMITATIONS ON LIABILITY; INDEMNITY

 

	
13.1
	
No Liability in Certain Circumstances

 

	 	
13.1.1
	
To the extent permitted by Law, no Party is liable for any special, incidental, indirect, punitive or consequential loss or damage of any nature, arising at any time or from any cause whatsoever.

 

	 	
13.1.2
	
The limitations on liability in clause 13.1.1 apply to any claim or action, whether it is based in whole or in part on contract, negligence, strict liability, tort, statute or any other liability, except to any loss or damage suffered by a Party as a result of fraud, gross negligence, intentional misrepresentation or wilful misconduct.

 

	 	
13.1.3
	
Nothing in this clause shall exclude or limit any liability which either Party may have to an individual for the death of, or personal injury sustained by, such individual to the extent such death or personal injury was caused by that Party's negligence, or the negligence of that Party's officers, employees or agents.

 

	
13.2
	
Maximum Liability

 

Subject to clause 13.1 and without limiting the ProjectCo's obligation to pay the fees to Developer as set forth herein, the Parties acknowledge and agree that the aggregate liability of either Party under this Agreement to the other Party shall not exceed the total amount of the Development Fee, and that an adjustment to the Development Fee is the sole remedy for ProjectCo in respect of any breach of contract by Developer.

 

	
13.3
	
Developer’s Indemnity

 

Developer agrees to indemnify, defend and hold ProjectCo and its successors and permitted assigns and their respective Affiliates, officers, directors, contractors, employees, shareholders, representatives and agents (collectively, the "ProjectCo Indemnified Parties") harmless against and from any and all Claims, losses, damages, charges, liabilities, obligations and expenses (including reasonable attorneys’ fees and expenses) (collectively, "Losses") suffered by an ProjectCo Indemnified Party for (A) injuries, disease or death to any Person, (B) any damage to any property of any Person, (C) all fines or penalties issued by, and other similar amounts payable to, any Governmental Authority, or (D) any other losses or liabilities of ProjectCo, in each case to the extent caused by or resulting from Developer’s breach of this Agreement, performance of the Development Services or any act or omission (including strict liability, breach of contract, fraud, negligence, or willful misconduct) of Developer, its employees, agents or authorized representatives, Affiliates, Subcontractors or their respective employees and subcontractors and agents during the Development Period in connection with this Agreement; provided, however, that nothing contained herein shall be deemed to render Developer liable for or obligated to indemnify any ProjectCo Indemnified Party against any liability or damages to the extent attributable to or resulting from the negligence or willful misconduct of any ProjectCo Indemnified Party or their respective agents or authorized representatives, Affiliates, subcontractors (other than Developer) and employees at any time during the Development Period.

 

	
13.4
	
ProjectCo’s General Indemnity. 

 

ProjectCo agrees to indemnify, defend and hold Developer and its successors and permitted assigns and their respective Affiliates, officers, directors, contractors, employees, shareholders, representatives and agents (collectively, the "Developer Indemnified Parties") harmless against and from any and all Losses suffered by a Developer Indemnified Party for (A) injuries, disease or death to any Person, (B) any damage to any property of any Person, (C) all fines or penalties issued by, and other similar amounts payable to, any Governmental Authority or (D) any other losses or liabilities of Developer, in each case to the extent caused by or resulting from any negligence or willful misconduct of an ProjectCo Indemnified Party in connection with this Agreement; provided, however, that nothing contained herein shall be deemed to render ProjectCo liable for or obligated to indemnify any Developer Indemnified Party against any liability or damages to the extent attributable to or resulting from the negligence or willful misconduct of any Developer Indemnified Party or their respective agents or authorized representatives, Affiliates, subcontractors and employees at any time during the Development Period.

 

 

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EXHIBIT 10.6

 

	
13.5
	
Intent. 

 

IT IS THE EXPRESS INTENT OF THE PARTIES THAT THE INDEMNITIES PROVIDED IN THIS CLAUSE 13 SHALL (I) PROVIDE PROTECTION TO THE INDEMNIFIED PERSONS AND ENTITIES IN RELATION TO ALL TYPES OF CLAIMS, LIABILITIES AND LOSSES FALLING WITHIN THE TERMS HEREOF, INCLUDING, AS SPECIFIED HEREIN, FROM THE SOLE NEGLIGENCE OF DEVELOPER OR ANY OTHER PERSON OR ENTITY AND/OR THE CONTRIBUTORY, JOINT OR CONCURRENT NEGLIGENCE OF A PARTY AND/OR ANY OTHER PERSON OR ENTITY AND (II) SHALL MEET THE REQUIREMENTS OF ANY EXPRESS NEGLIGENCE RULE, ANY EXPRESS INTENT RULE AND ANY CONSPICUOUSNESS DOCTRINE ADOPTED BY ANY JURISDICTION.

 

 

	
14.
	
dispute resolution

 

	
14.1
	
Dispute Notice

 

	 	
14.1.1
	
Where a Dispute arises, either Party may give a written notice to the other Party specifying:

 

	 	
(A)
	
particulars of the Party’s reason for being dissatisfied; and

 

	 	
(B)
	
the position that the Party believes is correct, 

 

being a "Dispute Notice".

 

	
14.2
	
Litigation

 

After 20 Business Days of receipt of the Dispute Notice under clause 14.1.1, either Party to the Dispute may commence legal proceedings to resolve any part of the Dispute.

 

	
14.3
	
Continuity

 

Despite the existence of a Dispute, Developer must continue to perform its obligations under this Agreement (including provision of Development Services) and ProjectCo must pay all undisputed amounts to Developer.

 

	
14.4
	
Injunctive Relief

 

Nothing in this clause 14 prejudices either Party’s right to institute proceedings to seek injunctive or urgent declaratory relief in respect of a Dispute or any other matter arising under this Agreement.

 

	
14.5
	
Damages are Insufficient Compensation and Equitable Remedies are Available

 

Without prejudice to any other rights or remedies that the Parties may have, the Parties acknowledge and agree that damages alone would not be an adequate remedy for any breach by them of this Agreement and that the remedies of injunction and specific performance as well as any other equitable relief for any threatened or actual breach of this Agreement by any Party would be more appropriate remedies.

 

 

86696224.7 0058116-00002 

11

 

EXHIBIT 10.6

 

	
15.
	
Governing Law

 

	
15.1
	
This Agreement shall be governed by the internal laws of the State of New York, excluding any of its conflict of law provisions that would require the application of the laws of another jurisdiction. 

 

	
15.2
	
Subject to the provisions of clause 14 for purposes of resolving any Dispute arising under or relating to this Agreement, the Parties hereby submit to the non-exclusive jurisdiction of the United States Federal District Courts for the State of New York, or, if such court does not have subject matter jurisdiction, the state courts of the State of New York, in each case sitting in New York County. Each Party hereby waives any objection that it may have to the venue of such action, suit or proceeding in such court or that such suit, action or proceeding in such court was brought in an inconvenient court and agrees not to plead or claim the same. Each Party further agrees that such court shall have in personam jurisdiction over each of them with respect to any such dispute, controversy, or proceeding. EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL RIGHTS TO A TRIAL BY JURY WITH RESPECT TO ANY DISPUTE ARISING UNDER THIS AGREEMENT

 

	
16.
	
mutual representations and warranties

 

	
16.1
	
Each Party represents and warrants to the other Party that as at the Effective Date:

 

	 	
16.1.1
	
the execution, delivery and performance of this Agreement complies with its documents of organization and does not constitute a breach of any Law or obligation, or cause or result in a default under any agreement by which it is bound and which would prevent it from entering into and performing its obligations under this Agreement;

 

	 	
16.1.2
	
all necessary authorisations for the execution, delivery and performance of this Agreement in accordance with its terms have been obtained;

 

	 	
16.1.3
	
each Party has full power and capacity to enter into and perform its obligations under this Agreement; and 

 

	 	
16.1.4
	
each Party is validly incorporated, organised and subsisting in accordance with the laws of its place of incorporation or organization.

 

	
17.
	
MISCELLANEOUS

 

	
17.1
	
Confidentiality

 

	 	
17.1.1
	
Subject to clause 17.1.2, each Party must keep confidential and must not divulge or disclose:

 

	 	
(A)
	
any information relating to another Party or its business, which is disclosed to the recipient in the course of procuring or providing Development Services contemplated by this Agreement; or

 

	 	
(B)
	
this Agreement

 

(collectively, "Confidential Information")

 

	 	
17.1.2
	
Confidential Information may be disclosed:

 

	 	
(A)
	
to an Affiliate of the recipient, provided that the recipient must ensure that its Affiliates comply in all respects with the recipient’s obligations under this clause;

 

 

86696224.7 0058116-00002 

12

 

EXHIBIT 10.6

 

	 	
(B)
	
if the information is in the public domain as at the date of this Agreement (or subsequently becomes in the public domain other than by breach of any obligation of confidentiality binding on the recipient);

 

	 	
(C)
	
if the recipient is required to disclose the information by applicable Law or the rules of any recognised stock exchange on which its shares or the shares of any of its related bodies corporate are listed, provided that the recipient has consulted with the provider of the information as to the form and content of the disclosure;

 

	 	
(D)
	
if the disclosure is made by the recipient to its current or potential financiers, investors and equity owners or lawyers, accountants, investment bankers, consultants, other professional advisers or Subcontractors to the extent necessary to enable the recipient to properly perform its obligations under this Agreement or to conduct its business generally, in which case the recipient must ensure that those persons keep the information secret and confidential and do not divulge or disclose the information to any other person in contravention hereof;

 

	 	
(E)
	
if the disclosure is necessary to seek the approval of any transaction contemplated by this Agreement by a Governmental Authority, provided that, to the extent the disclosing party may request confidential treatment thereof, the relevant Governmental Authority is made aware of the confidential nature of the information and is instructed to keep the information secret and confidential and not to divulge or disclose the information to any other person;

 

	 	
(F)
	
if the disclosure is required for use in legal proceedings regarding this Agreement; or

 

	 	
(G)
	
each other Party has consented in writing before the disclosure.

 

	
17.2
	
Communication and Notices

 

	 	
17.2.1
	
A notice or other communication under this Agreement ("Notice") must be in writing and delivered by hand or sent by pre-paid post, fax or electronic communication (including electronic mail) to a Party at the address or the fax number for that Party or as otherwise specified by a Party.

 

	 	
17.2.2
	
A Party may change Notice Details by giving written notice to the other Party.

 

	 	
17.2.3
	
A Notice sent by post is regarded as given and received on the second Business Day following the date of postage.

 

	 	
17.2.4
	
A fax is regarded as given and received on production of a transmission report by the machine from which the fax was sent which indicates that the fax was sent in its entirety to the recipient’s fax number, unless the recipient informs the sender that the Notice is illegible or incomplete within 4 hours of it being transmitted.

 

	 	
17.2.5
	
A Notice delivered or received other than on a Business Day or after 4.00pm (recipient’s time) is regarded as received at 9.00am on the following Business Day and a Notice delivered or received before 9.00am (recipient’s time) is regarded as received at 9.00am.

 

	
17.3
	
Notice Details

 

	 	
17.3.1
	
ProjectCo:

 

Innovative Solar 31, LLC

c/o VivoPower USA LLC

3824 Cedar Springs Rd. #801-1299

Dallas, TX 75219

Attention: Chief Financial Officer

Email: dpilotte@vivopower.com

 

 

86696224.7 0058116-00002 

13

 

EXHIBIT 10.6

 

With a copy to (which shall not constitute notice):

 

Stoel Rives LLP

600 University Street, Suite 3600

Seattle, WA 98101

Attn: Alex Mertens

Facsimile: (206) 386-7500

Email: alex.mertens@stoel.com

 

NES US NC-31 LLC

c/o Dixon Advisory USA

140 Broadway, 28th Floor

New York, NY 10005

 

New Energy Solar

PO Box 29

Crows Nest NSW 1585

Australia

Attention: Tom Kline and Liam Thomas

Email: assetmanager@newenergysolar.com.au

 

Foley & Lardner LLP

777 E. Wisconsin Ave. 

Milwaukee, WI 53202-5306

Attention: David W. Clark

 

	 	
17.3.2
	
Developer:

 

VivoPower USA LLC

3824 Cedar Springs Rd. #801-1299

Dallas, TX 75219

Attention: Chief Financial Officer

Email: dpilotte@vivopower.com

 

With a copy to (which shall not constitute notice):

 

Stoel Rives LLP

600 University Street, Suite 3600

Seattle, WA 98101

Attn: Alex Mertens

Facsimile: (206) 386-7500

Email: alex.mertens@stoel.com

 

	
17.4
	
Assignment, transfer and novation of rights

 

Each Party may assign, transfer or novate all or any part of its rights or obligations under this Agreement provided written consent has been obtained in writing from the other Party, which will not be unreasonably withheld; provided that, without the prior written consent of the other Party, either Party may collaterally assign any of its rights, duties or obligations under this Agreement as security for the obligations of such Party to any Person providing financing for the benefit of such Party or any of its Affiliates.

 

 

86696224.7 0058116-00002 

14

 

EXHIBIT 10.6

 

	
17.5
	
Entire agreement

 

This Agreement states all the express terms of the agreement between the Parties in respect of its subject matter. It supersedes all prior discussions, negotiations, understandings and agreements in respect of its subject matter.

 

	
17.6
	
Counterparts

 

This Agreement may be executed in any number of counterparts (including by facsimile or other electronic means). All counterparts, taken together, constitute one instrument. A Party may execute this Agreement by signing any counterpart.

 

	
17.7
	
Severability

 

If any provision in this Agreement is held invalid or unenforceable, all other provisions will not be affected. With respect to the provision held invalid or unenforceable, the Parties will amend this Agreement as necessary to effect the original intent of the Parties as closely as possible.

 

	
17.8
	
Waiver

 

The rights and remedies of the Parties shall not be affected by any failure to exercise or delay in exercising any right or remedy or by the giving of any indulgence by any other Party or by anything whatsoever except a specific waiver or release in writing and any such waiver or release shall not prejudice or affect any other rights or remedies of the Parties. No single or partial exercise of any right or remedy shall prevent any further or other exercise thereof or the exercise of any other right or remedy.

 

	
17.9
	
Successors

 

This Agreement is binding upon and inures to the benefit of the Parties and their respective successors and permitted assigns.

 

	
17.10
	
Amendment, etc.

 

No amendment, waiver or other modification of this Agreement shall be effective unless it is in writing (which for this purpose does not include email) signed by or on behalf of each of the Parties.

 

 

 

[Signature page follows]

 

 

86696224.7 0058116-00002 

15

 

EXHIBIT 10.6

 

IN WITNESS WHEREOF, the Parties have executed this Agreement on the date first mentioned above.

 

 

	
DEVELOPER:

 

VIVOPOWER USA LLC

 

 

By: ___/s/ Gary Hui__________

Name: Gary Hui

Title: Manager
	
PROJECTCO:

 

INNOVATIVE SOLAR 31, LLC

 

 

By: ___/s/ Gary Hui_________

Name: Gary Hui

Title: Manager

 

 

 

[Signature Page to Development Services Agreement]

 

 

86696224.7 0058116-00002 

 

EXHIBIT 10.6

 

Schedule 1

 

DEVELOPMENT SERVICES

 

 

The Development Services shall include the following with respect to the Project:

 

(a)     assist in dealing with: (i) power purchase agreement customers, (ii) the utility, (iii) governmental agencies, (iv) local organizations, and (v) other parties interested in the development and installation of the Project;

 

(b)     coordinate contractors, professionals and consultants employed in connection with the design or installation of the Project;

 

(c)      coordinate independent engineers, environmental consultants and title reviews for review of Project feasibility;

 

(d)     administer and manage the Project in accordance with the contracts providing for the engineering, procurement and construction of the Project (collectively, the "EPC Contract"), including the construction schedule set forth therein, and any other supply or installation contracts on behalf of ProjectCo;

 

(e)     review and submit to ProjectCo for approval all requests for payments under the EPC Contract or any other supply or installation contract;

 

(f)     construction management services, including, without limitation, all activities necessary to monitor, manage, perform and exercise, on behalf of and as agent for ProjectCo, ProjectCo’s rights and obligations under the EPC Contract (other than (a) ProjectCo’s obligation to make payments or procure equipment under the EPC Contract, (b) ProjectCo’s right to contract with and retain separate contractors, and (c) ProjectCo’s obligation to provide any ProjectCo-provided facilities and services), and endeavor to secure full and proper performance of the obligations of the contractors under the EPC Contract;

 

(g)     prepare and submit to ProjectCo for approval all requests for loan advances or other payments under the Financing Agreement; 

 

(h)     apply for and maintain in full force and effect any and all governmental permits and approvals required for the lawful construction of the Project or cause contractors to do so;

 

(i)     comply with all terms and conditions applicable to ProjectCo or the Project contained in any governmental permit or approval required or obtained for the lawful installation of the Project, or in any insurance policy affecting or covering the Project during its construction and installation, or in any surety bond obtained in connection with Project construction and installation;

 

(j)     furnish such consultation and advice relating to the construction and installation of the Project as may be reasonably requested from time to time by ProjectCo; 

 

(k)     prepare such reports on the progress of the design, construction and installation of the Project as are reasonably requested by ProjectCo;

 

(l)     inspect the progress of the course of the construction and installation of the Project and verify that the same is being carried out substantially in accordance with the plans and specifications approved by ProjectCo or, if the same is not being so carried out, promptly notify ProjectCo;

 

(m)     if requested by ProjectCo, perform on behalf of ProjectCo all obligations of ProjectCo with respect to the design and installation of the Project contained in any Financing Document, Project Document or Tax Equity Document, or in any agreement entered into with any governmental body or agency (including any utility) relating to the terms and conditions of such installation, provided that copies of such agreements have been provided by ProjectCo to Developer or ProjectCo has otherwise notified Developer in writing of such obligations;

 

 

86696224.7 0058116-00002 

 

EXHIBIT 10.6

 

(n)     assist ProjectCo in obtaining and maintaining insurance coverage for the Project, ProjectCo and its agents during the development phase of the Project, in accordance with an insurance schedule approved by ProjectCo;

 

(o)     assemble and retain all contracts, agreements and other records and data as may be necessary to carry out Developer’s functions hereunder;

 

(p)     at the direction of ProjectCo, implement any decisions of ProjectCo made in connection with the design, development and installation of the Project or any policies and procedures relating thereto; 

 

(q)     perform and administer any and all other services and responsibilities of Developer that are set forth in any other provisions of this Agreement, or that are reasonably requested to be performed by ProjectCo and are within the general scope of the services described herein;

 

(r)     Cash Management, Billing Services and Collection:

 

(I)      collect on behalf of ProjectCo, or cause to be so collected, all payments due to ProjectCo with respect to Project construction and installation; and

 

(II)     arrange to promptly pay, or cause to be paid, on behalf of ProjectCo, any amounts required to be paid by ProjectCo (including payment of all utilities such as water, power and data service), including all expenses incurred by ProjectCo and relating to the Project’s construction and installation or that are due and payable under construction or installation contracts to which ProjectCo is a party;

 

(s)     cause to be paid, at ProjectCo’s cost, all taxes and other governmental charges shown to be due by ProjectCo and relating to the Project’s construction and installation before the same becomes delinquent; and

 

(t)     to the extent any of the Development Services have been delegated to a subcontractor, supervise and monitor such subcontractor’s performance of such delegated functions.ex10-10.htm

EXHIBIT 10.7

 

	
 

 

 

 

 

 

 

 

 

 

 

VivoPower International Services Limited

 

 

and

 

 

Philip Comberg

 

 

 

 

  

SERVICE AGREEMENT

 

 

 

 

 

 

 

 

 

 

Herbert Smith Freehills LLP

 

 

 

 

 

TABLE OF CONTENTS

 

 

	
Clause
	
Headings
	
Page

	
1.
	
INTERPRETATION
	
3

	
2.
	
REPRESENTATIONS AND WARRANTIES
	
5

	
3.
	
APPOINTMENT AND TERM
	
6

	
4.
	
DUTIES AND POWERS
	
6

	
5.
	
SALARY
	
8

	
6.
	
PENSION AND INSURANCE BENEFITS
	
8

	
7.
	
DIRECTORS' AND OFFICERS' INSURANCE
	
9

	
8.
	
EXPENSES, GRATUITIES AND DEDUCTIONS
	
10

	
9.
	
HOLIDAYS
	
10

	
10.
	
SICKNESS AND INJURY
	
11

	
11.
	
INTERESTS IN OTHER BUSINESSES
	
12

	
12.
	
SHARE DEALINGS
	
12

	
13.
	
INTELLECTUAL PROPERTY
	
12

	
14.
	
CONFIDENTIALITY
	
14

	
15.
	
PROTECTION OF INTERESTS OF COMPANY ETC
	
14

	
16.
	
INTERIM APPOINTMENT
	
19

	
17.
	
TERMINATION
	
19

	
18.
	
GARDEN LEAVE
	
22

	
19.
	
AMALGAMATION AND RECONSTRUCTION
	
23

	
20.
	
DISCIPLINE AND GRIEVANCES
	
24

	
21.
	
ADDITIONAL PARTICULARS
	
24

	
22.
	
ENTIRE AGREEMENT AND SEVERABILITY
	
24

	
23.
	
VARIATION AND WAIVER
	
25

	
24.
	
THIRD PARTY RIGHTS
	
25

	
25.
	
ASSIGNMENT
	
25

	
26.
	
DATA PROTECTION
	
25

	
27.
	
REFERENCES
	
26

	
28.
	
TELEPHONE AND COMPUTER/E MAIL AND INTERNET USE
	
26

	
29.
	
NOTICES
	
27

	
30.
	
GOVERNING LAW
	
28

	
31.
	
COUNTERPARTS
	
28

	SCHEDULE 1 – KEY PERFORMANCE INDICATORS ("KPI")	30

 

 

 

 

 

AGREEMENT made

 

BETWEEN:

 

	 	
A.
	
VIVOPOWER INTERNATIONAL SERVICES LIMITED a company incorporated in Channel Islands with registered number 121017 whose registered office is at 3rd Floor 37 Esplanade, St Helier, Jersey, JE2 3QA and which is established in the United Kingdom under UK establishment number BR018560 and whose establishment offices is at 23 Hanover Square, Mayfair, London, England W1S 1JB (the "Company"); and

	 	 	 
	 	B.	PHILIP COMBERG of Cretzschmarstrasse 21, 60487 Frankfurt (the "Executive") IT IS AGREED as follows:

 

	 	
1.
	
INTERPRETATION

 

	 	
1.1
	
In this Agreement:

 

	 	
1.1.1
	
"Associate" means a body corporate:

 

	 	
(A)
	
which is the PLC Company;

 

	 	
(B)
	
which for the time being is a Parent Undertaking of the PLC Company or a Subsidiary of the PLC Company or of such a Parent Undertaking; or

 

	 	
(C)
	
in whose Equity Share Capital for the time being an interest of 20 per cent or more is held directly or indirectly (through another body corporate or other bodies corporate or otherwise) by a Parent Undertaking of the PLC Company or by a Subsidiary (including the Company) of such a Parent Undertaking or by a combination of two or more such Parent Undertakings or Subsidiaries;

 

	 	
1.1.2
	
“ASX” means the Australian Securities Exchange;

 

	 	
1.1.3
	
"Board" means the board of directors of the PLC Company from time to time and includes any person or committee duly authorised by the board of directors to act on its behalf for the purposes of this Agreement;

 

	 	
1.1.4
	
"Company Secretary" means the secretary of the PLC Company from time to time;

 

	 	
1.1.5
	
"Confidential Information" means all and any information, whether or not recorded, of the PLC Company, the Company or of any other Subsidiary or Associate which the Executive (or, where the context so requires, another person) has obtained by virtue of his employment or engagement and which the PLC Company, the Company or any other Subsidiary or Associate regards as confidential or in respect of which the PLC Company, the Company or any other Subsidiary or Associate is bound by an obligation of confidence to a third party, including:

 

	 	
(A)
	
all and any information relating to business methods, corporate plans, future business strategy, management systems, finances, and maturing new business opportunities;

 

	 	
(B)
	
all and any information relating to research or development projects or both;

	 	 	 
	 	(C)	all and any information concerning the curriculum vitae, remuneration details, work-related experience, attributes and other personal information concerning those employed or engaged by the PLC Company, the Company or any other Subsidiary or Associate;

 

 

3

 

 

	 	
(D)
	
all and any information relating to marketing or sales of any past present or future product or service of the PLC Company, the Company or any other Subsidiary or Associate including sales targets and statistics, market share and pricing statistics, marketing surveys and strategies, marketing research reports, sales techniques, price lists, mark-ups, discounts, rebates, tenders, advertising and promotional material, credit and payment policies and procedures, and lists and details of customers, prospective customers, suppliers and prospective suppliers including their identities, personnel, business requirements and contractual negotiations and arrangements with the PLC Company, the Company or any other Subsidiary or Associate; and

 

	 	
(E)
	
all and any trade secrets, secret formulae, processes, inventions, design, know-how, technical specification and other technical information in relation to the creation, production or supply of any past, present or future product or service of the PLC Company, the Company or any other Subsidiary or Associate, including all and any information relating to the working of any product, process, invention, improvement or development carried on or used by the PLC Company, the Company or any other Subsidiary or Associate and information concerning the intellectual property portfolio and strategy of the Company or of any Subsidiary or Associate,

 

but excluding any information which:

 

	 	
(i)
	
is part of the Executive's own stock in trade;

 

	 	
(ii)
	
is readily ascertainable to persons not connected with the PLC Company, the Company or any other Subsidiary or Associate without significant expenditure of labour, skill or money; or

 

	 	
(iii)
	
which becomes available to the public generally other than by reason of a breach by the Executive of his obligations under this Agreement;

 

	 	
1.1.6
	
"PLC Company" means VIVOPOWER INTERNATIONAL PLC a company incorporated in England and Wales with registered number 09978410 whose registered office is at 23 Hanover Square, Mayfair, London, England W1S 1JB;

 

	 	
1.1.7
	
"Recognised Investment Exchange" means the NASDAQ, the ASX and any body corporate or unincorporated association which is a recognised investment exchange for the purposes of the Financial Services and Markets Act 2000;

 

	 	
1.1.8
	
"Remuneration Committee" means the remuneration committee of the Board from time to time;

 

	 	
1.1.9
	
"Subsidiary" means Subsidiary Undertaking, and "Subsidiary Undertaking", "Parent Undertaking" and "Equity Share Capital" shall have the respective meanings attributed to them by sections 1162 and 548 of the Companies Act 2006;

 

	 	
1.1.10
	
"Termination Date" means the date on which the employment of the Executive by the Company terminates save pursuant to an assignment by the Company pursuant to clause 25 in which case it shall mean the date on which his employment with such assignee shall terminate;

 

	 	
1.1.11
	
"Working Day" means any day other than a Saturday, Sunday or a day which is generally recognised as a public holiday in England.

 

 

4

 

 

	 	
1.2
	
In this Agreement, unless otherwise stated, a reference to the employment of the Executive is to his employment by the Company under this Agreement and shall include any period of garden leave pursuant to clause 18 or suspension pursuant to sub-clause 17.4.

 

	 	
1.3
	
In this Agreement, unless the context otherwise requires:

 

	 	
1.3.1
	
the contents page and headings and bold type face inserted in this Agreement are inserted for convenience only and shall not affect the interpretation of this Agreement;

	 	 	 
	 	
1.3.2
	
references to clauses and sub-clauses are to clauses and sub-clauses of this Agreement;

 

	 	1.3.3	references to this Agreement include this Agreement as amended or supplemented in accordance with its terms;

 

	 	
1.3.4
	
references to writing shall include any modes of reproducing words in any legible form and shall include e-mail except where expressly stated otherwise;

 

	 	
1.3.5
	
references to "includes" or "including" shall mean "includes without limitation" or "including without limitation";

 

	 	
1.3.6
	
words in the singular shall include the plural and vice versa, and a reference to any gender includes a reference to all genders or, where appropriate, is to be read as a reference to the opposite gender;

 

	 	
1.3.7
	
a reference to a person shall include a reference to a firm, a body corporate, an unincorporated association or a partnership;

 

	 	
1.3.8
	
a reference to a statute or statutory provision shall include a reference to any subordinate legislation made under the relevant statute or statutory provision and, except where expressly stated otherwise, is a reference to that statute, provision or subordinate legislation as from time to time amended, consolidated, modified, re-enacted or replaced.

 

	 	
2.
	
REPRESENTATIONS AND WARRANTIES

 

	 	
2.1
	
The Executive represents and warrants to the PLC Company and the Company that, and acknowledges that in entering into this Agreement the Company has relied upon prior representations and warranties by the Executive in the following terms:

 

	 	
2.1.1
	
save for this Agreement, he will, save as implied by law, be free from all agreements, arrangements or other restrictions seeking to restrict his right to compete with any person or to deal with or solicit clients or solicit, employ or engage employees of any person or in any way restricting him from entering into and performing this Agreement in accordance with its terms;

 

	 	
2.1.2
	
he has not (directly or indirectly) misappropriated, or otherwise made any unlawful use or disclosure of, any confidential information and/or intellectual property belonging to or relating to the business of any other person (including, for the avoidance of doubt, his previous employer(s)) and will not do so whether prior to the commencement of his employment under this Agreement or otherwise;

 

	 	
2.1.3
	
he is not prohibited by law from being a director and is permitted by law to work in the UK; and

 

	 	
2.1.4
	
he has any necessary licences, permissions, consents, approvals, qualifications and memberships required for him to perform his duties under this Agreement and is not and has not been subject to any prohibition, censure, criticism or disciplinary sanction by any professional, regulatory or other body or authority which would prevent him from performing any duties under this Agreement or undermine the confidence of the Board in his employment by the Company.

 

 

5

 

 

	 	
2.2
	
The Executive shall indemnify the PLC Company and the Company against all claims, liabilities, losses, costs, and expenses which the PLC Company and the Company may suffer or incur or which may be made against the PLC Company or the Company arising out of, or in respect of, any breach of the warranties and representations in this clause 2.

 

	 	
3.
	
APPOINTMENT AND TERM

 

	 	
3.1
	
The Executive shall be employed by the Company as Chief Executive Officer of the PLC Company and shall be a statutory director of the PLC Company and the Company.

 

	 	
3.2
	
The Executive's employment under the terms of this Agreement shall begin on 1 September 2016 (the “Effective Date”) and shall continue, subject to the terms of this Agreement, until determined by either party giving to the other not less than 12 months' written notice to expire at any time.

 

	 	
4.
	
DUTIES AND POWERS

 

	 	
4.1
	
The Executive shall comply with his fiduciary and legal duties during the continuance of his employment and, in particular, shall:

 

	 	
4.1.1
	
comply with the provisions of Part 10 of the Companies Act 2006 (a copy of which will be made available to him) including the:

 

	 	
(A)
	
duty to act within powers;

 

	 	
(B)
	
duty to promote the success of the company;

 

	 	
(C)
	
duty to exercise independent judgment;

 

	 	
(D)
	
duty to exercise reasonable care, skill and diligence;

 

	 	
(E)
	
duty to avoid conflicts of interest;

 

	 	
(F)
	
duty not to accept benefits from third parties; and

 

	 	
(G)
	
duty to declare interest in proposed transaction or arrangement;

 

	 	
4.1.2
	
faithfully and diligently perform:

 

	 	
(A)
	
the usual duties of a Chief Executive Officer; and

 

	 	
(B)
	
such other duties as may from time to time be assigned to him by the Board, whether those duties relate to the business or interests of the PLC Company or the Company or to the business or interests of any other Associate (and such duties may include holding any office or other appointment in or on behalf of any Associate or any other company for as long as the Company requires);

 

	 	
4.1.3
	
familiarise himself with and in all respects comply with:

 

	 	(A)	all and any lawful and reasonable directions given by or under the authority of the Board; and

 

	 	
(B)
	
all relevant policies, rules and regulations of the PLC Company and the Company from time to time in force; and

 

 

6

 

 

	 	
(C)
	
all laws, codes of conduct, rules and regulations or listing rules relevant to the PLC Company, the Company and/or any other Associate or to him as a director of the PLC Company and the Company or as an office- holder of any other Associate.

 

	 	
4.1.4
	
exercise only such powers as are consistent with his duties and act only in accordance with the Articles of Association of the PLC Company or the Company (as appropriate), where his duties relate to the business or interests of an Associate, of that company;

 

	 	
4.1.5
	
use his best endeavours to promote the success of the PLC Company and the Company, each for the benefit of its members as a whole and, save where there is any conflict with the success of such company, the success of all Associates;

 

	 	
4.1.6
	
keep the Board promptly and fully informed (in writing if so requested by the Board) of his conduct of the business, finances or affairs of the PLC Company, the Company and any other Associate and provide such explanations as the Board may require;

 

	 	
4.1.7
	
promptly disclose to the Board full details of any knowledge or suspicion he has that any employee or officer (including the Executive himself) of the PLC Company, the Company or any other Associate has or plans to commit any serious wrongdoing or serious breach of duty or other act which might materially damage the interests of the PLC Company, the Company or its Associates or plans to leave their employment or to join or establish a business in competition with the PLC Company, the Company or any of its Associates (including details of any steps taken to implement any such plan); and

 

	 	
4.1.8
	
save where on authorised leave (for holiday or sickness or injury or other reason) and save as modified by the provisions of this Agreement where the Executive is placed on garden leave or suspended, devote the whole of his time, attention and ability during his agreed hours of work to the performance of his duties under this Agreement.

 

	 	
4.2
	
The nature of the Executive's job is such that his working time is not measured or predetermined. The agreed hours of work of the Executive shall be normal business hours and such other hours as may be required for the proper performance of his duties under this Agreement.

 

	 	
4.3
	
The Executive shall perform his duties principally at the London office of the Company or at such place or places in the United Kingdom as the Board may from time to time reasonably determine. The Executive may be required to travel for work as reasonably required, the expenses for which he will be reimbursed in accordance with clause 8. The Company will also reimburse the Executive’s reasonable relocation costs in:

 

	 	
4.3.1
	
moving to London in order to take up employment with the Company; and

 

	 	
4.3.2
	
if the Executive’s employment is terminated, other than in accordance with clause 17.2, or following the Executive's resignation, moving back to Germany, 

 

provided that the Executive provides the Company with: i) two quotes from reputable relocation service providers for the cost of his relocation, from which the Chairman may choose; and ii) evidence of actual payment of the cost and expenses as the Company may reasonably require. For the avoidance of doubt, all sums paid by the Company to the Executive relating to any reimbursement pursuant to this clause 4.3, shall be grossed up by the Company to reflect any tax payable in respect of those amounts.

 

 

7

 

 

	 	
5.
	
SALARY

 

	 	
5.1
	
During the continuance of his employment the Executive shall be entitled to a salary at the rate of £540,000 per annum (or such higher rate as the Remuneration Committee may from time to time determine and confirm in writing to the Executive).

 

	 	5.2	The Executive's salary shall accrue from day to day and be payable by equal monthly instalments on or about the last day of each month.

 

	 	
5.3
	
The Executive's salary shall be inclusive of any other sums receivable as directors' fees or other remuneration to which he may be or become entitled as the holder of offices or appointments in or on behalf of the PLC Company, the Company or of any of its Associates. To achieve this the Executive shall account for any such sums he receives to the Company and his salary shall be reduced by the amount of such sums (and the Executive hereby authorises the Company to make any such reduction(s)).

 

	 	
5.4
	
The Remuneration Committee shall review the Executive's salary at least once in each twelve months save after notice of termination of this Agreement has been served by either party, but shall not be obliged to make any increase in the salary (but for the avoidance of doubt shall not make any decrease in the salary).

 

	 	
5.5
	
In addition to his salary, the Executive shall be entitled to participate in such discretionary bonus scheme and other incentive arrangements as may be operated by the Company, on such terms and at such level as the Remuneration Committee may from time to time determine, always provided that the Executive shall have the right to participate in an annual bonus arrangement, paying up to 150% of base salary for attainment of pre-agreed key performance indicators (as set out in Schedule 1 of this Agreement). The Company reserves the right at any time before the relevant year to amend the terms of this bonus scheme (but not so as to reduce the Executive’s maximum percentage bonus opportunity).

 

	 	5.6	The Executive shall also be entitled to participate in a separate carried interest arrangement which has been communicated to him separately.

 

	 	
5.7
	
In accordance with the Companies Act 2006, all remuneration payments and benefits due to the Executive (including any payment for loss of office) will only be payable if and to the extent that they are either consistent with the most recent remuneration policy approved by members of the Company pursuant to section 439A of the Companies Act 2006 or are separately approved by resolution of the members of the Company.

 

	 	
5.8
	
Any payment (or amount treated as paid) under this clause 5 shall be paid less any deductions which the Company may be required under law to make including in respect of income tax and National Insurance Contributions.

 

	 	
6.
	
PENSION AND INSURANCE BENEFITS

 

	 	
6.1
	
In lieu of pension contributions, the Company shall pay the Executive an annual amount equal to 10% of his annual base salary under clause 5.1, such amount to be paid in annual monthly instalments at the same time as salary is paid to him.

 

	 	
6.2
	
The Executive shall be entitled to participate in the Company's life assurance scheme which shall pay to the Executive's dependant(s) a sum equal to four times the Executive's salary if the Executive dies during service. Participation is subject to:

 

	 	6.2.1	the terms of the Company's life assurance scheme, as amended from time to time; and
	 	 	 
	 	
6.2.2
	
the rules or the insurance policy of the relevant insurance provider, as amended from time to time.

 

 

8

 

 

If the insurance provider refuses for any reason to provide life assurance benefit to the Executive, the Company shall not be liable to provide to the Executive any replacement benefit of the same or similar kind or to pay any compensation in lieu of such benefit.

 

	 	
6.3
	
The Company shall, at the Executive's election, either:

 

	 	
6.3.1
	
provide for the Executive to become and during the continuance of his employment remain a member of such private medical insurance and personal accident insurance scheme as the Company may from time to time in its absolute discretion participate in subject to the rules of the scheme (as varied from time to time), Such cover shall be provided for the Executive, his spouse and dependent children under the age of 21 years; or

 

	 	6.3.2	pay contributions to the Executive's existing private medical insurance arrangements, providing cover for the Executive, his spouse and dependent children under the age of 21 years to a maximum of £1,800 per month.

 

	 	
6.4
	
The Executive may become and during the continuance of his employment remain a member of such permanent health insurance scheme as the Company may from time to time in its absolute discretion operate, membership being subject to the rules of the Company's scheme (as varied from time to time) details of which are available from the Company Secretary. Nothing in this Agreement shall prevent the Company from terminating the Executive's employment for any reason whatsoever even where the effect of termination is to prejudice, prevent or terminate an actual or prospective claim under the permanent health insurance scheme.

 

	 	
6.5
	
In the event that the Executive claims under any insurance scheme referred to in sub- clause 6.3 or 6.4 and such claim is rejected by the insurer, the Company shall not be obliged to issue proceedings in relation to such claim but in the event that it does so on the Executive's request the Executive shall indemnify the Company against all costs, expenses and other liabilities arising out of such proceedings.

 

	 	
6.6
	
To the extent that any benefit provided to the Executive under this clause 6 is taxable, the Company shall, as appropriate, and if required by law, withhold an amount in respect of the income tax, and employee's National Insurance Contributions due on the taxable value of that benefit.

 

	 	
6.7
	
The Executive shall be entitled to use his current personal telephone and any other telephone most suitable to the location in which the Executive is located and the Company shall reimburse the Executive for all reasonable expenses properly incurred by him in doing so in the performance of his duties under this Agreement and shall from time to time pay for a suitable replacement.

 

	 	
6.8
	
The Executive shall be entitled to use his personal computer for the performance of his duties under this Agreement (but shall comply with reasonable instructions from the Company regarding Company information on the personal computer, for example saving documents to shared drives) and the Company shall from time to time pay for a suitable replacement.

 

	 	
7.
	
DIRECTORS' AND OFFICERS' INSURANCE

 

During the continuance of his employment and for six years following the Termination Date, the Company will procure that the Executive is covered by a policy of directors' and officers' liability insurance on terms no less favourable than those in place from time to time for other members of the Board. The Company will also put in place legal expenses insurance which, subject to any legal restrictions on indemnification for directors of UK incorporated companies or on companies listed on the NASDAQ or the ASX, will cover the cost of legal expenses incurred by the Executive in seeking to enforce the terms of the directors’ and officers’ liability insurance policy described above, and any legal fees incurred by the Executive in relation to the defence or pursuit of any claim relating to the execution of his duties on behalf of the Company or any Associated Company.

 

 

9

 

 

	 	
8.
	
EXPENSES, GRATUITIES AND DEDUCTIONS

 

	 	
8.1
	
The Company shall reimburse the Executive all reasonable travelling (including business class air-fares with any commercial airline of the Executive's choice), hotel, mobile telephone, IT (including in relation to his personal computer), entertainment and other expenses properly incurred by him in the performance of his duties under this Agreement, provided that the Executive claims these in accordance with the Company's expenses reporting procedure in force from time to time. The Executive shall, if so required provide the Company with receipts or other evidence of the payment of such expenses in accordance with the Company's expense reporting procedure in force from time to time. If the Executive is provided with a company credit card or charge card, he shall use it only for such expenses as he is entitled under this sub-clause to have reimbursed by the Company.

 

	 	
8.2
	
The Executive shall not during the continuance of his employment seek or (unless fully disclosed to and approved in advance by the Board) accept from any actual or prospective customer, contractor or supplier of the Company or of any Associate any gift, gratuity or benefit of more than a trivial value or any hospitality otherwise than properly in the performance of his duties to the Company and of a kind and value not lavish, extravagant or inappropriate.

 

	 	
8.3
	
The Executive hereby agrees that at any time during the continuance of his employment under this Agreement and on termination of his employment the Company shall be entitled to deduct from any sums due to the Executive (including salary, pay in lieu of notice, bonus, holiday pay or sick pay) any outstanding monies then owed by the Executive to the Company, including all outstanding loans or advances of salary made by the Company to the Executive (and any interest), any expense floats, any pay received for holiday taken in excess of the Executive's accrued holiday entitlement under clause 9, any sums paid on behalf of the Executive by the Company which have not been incurred by the Executive in the proper performance of his duties.

 

	 	
9.
	
HOLIDAYS

 

	 	
9.1
	
In addition to English public holidays, the Executive shall be entitled to 30 days' holiday in each holiday year of the Company running from 1 April to 31 March, to be taken at such times as may be approved by the Board (and Regulations 15(1) to 15(4) of the Working Time Regulations 1998 concerning the arrangements for taking holiday are hereby excluded). The first 28 days of holiday taken in the holiday year including public holidays shall be deemed to be the Executive's statutory leave entitlement firstly under Regulation 13 and then under Regulation 13A of the Working Time Regulations 1998. Holidays may be carried forward from one holiday year to the next where, for work-related reasons the Executive is unable to take holiday during the holiday year. No payment shall be made by the Company (during the continuance of this Agreement) in lieu of holidays not taken except as required by law or as set out under sub-clause 9.2.

 

	 	
9.2
	
Upon termination of this Agreement for whatever reason the Executive shall be entitled to payment in lieu of such of his holiday entitlement under sub-clause 9.1 as has accrued (on a pro rata basis) in the holiday year in which the Termination Date falls but has not been taken or such holiday the Executive is entitled to under sub-clause 9.1 that has been carried forward in accordance with clause 9.1. If appropriate, the Executive shall repay to the Company any salary received in respect of holiday taken prior to the Termination Date in excess of his accrued entitlement under sub-clause 9.1. In either case (and for the purposes of Regulation 14 of the Working Time Regulations 1998) the payment shall be calculated by multiplying the unused or excess entitlement (as the case may be) by 1/260 of the Executive's salary at that time.

 

 

10

 

 

	 	
9.3
	
Subject to clause 9.2, the Company shall be entitled to require the Executive to take all or any part of any accrued untaken holiday entitlement during any period of notice to terminate the Executive's employment (including, for the avoidance of doubt, during any period of garden leave pursuant to clause 18). If the Company exercises this right, the Executive must obtain the prior agreement of the Board to the actual days to be taken as holiday. Save to the extent required by the Working Time Regulations 1998, the Executive's entitlement under sub-clause 9.1 shall not accrue during any period of absence from work due to sickness or injury in excess of 90 continuous days (unless otherwise agreed by the Company in its discretion up to a maximum of 120 continuous days) or during any period of unpaid leave (excluding statutory additional maternity, paternity or adoption leave).

 

	 	
10.
	
SICKNESS AND INJURY

 

	 	
10.1
	
If the Executive is absent from work as a result of sickness or injury he must:

 

	 	
10.1.1
	
notify a member of the Board or the Company Secretary as soon as practicable on the first day of his absence;

 

	 	
10.1.2
	
if the period of absence is less than eight consecutive calendar days, submit to the Company on his return a certificate of sickness or injury completed by himself;

 

	 	
10.1.3
	
if the period of absence is eight consecutive calendar days or more, submit to the Company without delay a medical certificate signed by a practising medical practitioner in respect of each week of absence after the first.

 

	 	
10.2
	
The Executive agrees that he shall at the expense of the Company and if directed to do so by the Board at any time undergo a medical examination by a medical practitioner nominated by the Company and shall authorise (and does hereby authorise) such medical practitioner to disclose to the Company and provide (for the Company to retain) a copy of any medical report, diagnosis or prognosis made or produced in relation to any such medical examination. The Executive further agrees that he shall authorise the medical practitioner and the Company to discuss together any matters arising from such medical report, diagnosis or prognosis.

 

	 	
10.3
	
The Executive shall, subject to compliance with sub-clauses 10.1 and 10.2 and to clause 17, be entitled to

 

	 	
10.3.1
	
payment of his salary at the full rate less any social security or other state benefits or payments due under any health and disability scheme payable to him, whether claimed or not (and the Executive shall inform the Company of his entitlement to any such payments or benefits), and

 

	 	10.3.2	provision of all contractual benefits set out in this Agreement save as set out below

 

during any periods of absence from work as a result of sickness or injury up to 90 days in aggregate in any twelve consecutive months (unless otherwise agreed by the Company in its discretion up to a maximum of 120 days) in aggregate in any twelve consecutive months. The Executive shall not be entitled to any payment of salary or provision of contractual benefits during any absence in excess of that maximum and any payment or provision made in respect of such period shall be at the absolute discretion of the Company.

 

	 	
10.4
	
The Company shall pay statutory sick pay, where appropriate, in accordance with the legislation in force at the time of absence, and any payment of salary in accordance with this clause shall go towards discharging its liability to pay statutory sick pay.

 

 

11

 

 

	 	
11.
	
INTERESTS IN OTHER BUSINESSES

 

Save with the prior written consent of the Chairman of the Board (consent not to be unreasonably withheld and it being acknowledged that the Executive shall not hold more than three non-executive directorships at any one time), the Executive shall not during the continuance of his employment be engaged or interested (except: i) as the holder for investment of up to 5% of any class of securities which are quoted or dealt in on a Recognised Investment Exchange which are not the securities of any company which competes or proposes to compete with the business of the Company or any of its Associates; or ii) in relation to securities which are not quoted or dealt in on a Recognised Investment Exchange, where: a) those securities are not securities of any company which competes or proposes to compete with the business of the Company or any of its Associates; or b) those securities, which are securities of any company which competes or proposes to compete with the business of the Company or any of its Associates, have been expressly agreed to by the Chairman in writing), nor make preparations to be engaged or interested either directly or indirectly in any business or occupation (excluding any charitable work) other than the business of the Company and its Associates. Consent is hereby given in relation to the Executive's non-executive directorships with Solarcentury Holdings Ltd, Joh. Friedrich Behrens AG and Lucis Technologies Ltd. The Board and the Executive shall periodically review the Executive’s non-executive directorships, and where the Board and the Executive come to the view that the Executive’s non-executive directorships conflict (or are reasonably likely to conflict) or unreasonably interfere with the proper performance of the Executive's roles as CEO or director, the Board and the Executive shall agree upon an appropriate solution in respect of the Executive’s non- executive directorships.

 

	 	
12.
	
SHARE DEALINGS

 

The Executive shall at all times comply with every rule of law and every regulation of any applicable Recognised Investment Exchange or regulatory authority in relation to any dealings in any shares or their securities in any company and in relation to inside information. During the employment the Executive shall also comply with any share dealing code from time to time in place within the Company or the PLC Company.

 

	 	
13.
	
INTELLECTUAL PROPERTY

 

In this clause 13, "Intellectual Property Rights" means all inventions (whether patentable or not), patents, utility models, petty patents, registered designs, design rights, database rights, copyright and related rights, topography rights, plant variety rights, trade marks, service marks, logos, get up, trade names, domain names, (in each case whether registered or unregistered) and including any applications for registration and any renewals or extensions of and rights to claim priority from, any of the foregoing and, in each case, the goodwill attaching to any of the foregoing, rights to sue for passing off or for unfair competition, all know how, confidential information and trade secrets and any rights or forms of protection of a similar nature or having equivalent or similar effect to any of them which subsist now or will subsist in the future anywhere in the world.

 

	 	
13.1
	
If during his employment under this Agreement the Executive in the course of his normal duties or other duties specifically assigned to him (whether or not during normal working hours or using Company premises, resources or facilities) either alone or in conjunction with any other person:

 

	 	13.1.1	makes, discovers, develops or produces any invention, innovation, process, improvement or development (whether or not patentable or capable of registration and whether or not recorded in any medium) ("Inventions"); or

 

	 	
13.1.2
	
originates any design, trade mark, logo, know how, database, artistic or literary work (in each case whether registerable or not) or other work ("Works"); or

 

	 	
13.1.3
	
creates any other Intellectual Property Rights,

 

then he shall forthwith disclose the same to the Company and shall (subject to sub-clauses 13.2, 13.3, 13.4, 13.5 and 13.6) hold such Inventions, Works and Intellectual Property Rights on trust for the Company and he hereby undertakes to keep confidential all information about and details of the Inventions, the Works and the Intellectual Property Rights.

 

 

12

 

 

	 	
13.2
	
The Executive hereby assigns wholly and absolutely with full title guarantee including the right to sue for damages for past infringements to the Company, by way of future assignment, the copyright and future copyright, and the design right and future design right, for the full term thereof throughout the world including any extensions or renewals arising in respect of all such Works referred to in clause 13.1.

 

	 	
13.3
	
The Executive waives all his present and future moral rights (and all similar rights in other jurisdictions), if any, arising in respect of such Works referred to in clause 13.1.

 

	 	
13.4
	
The Executive acknowledges that all Inventions, Works and Intellectual Property Rights referred to in clause 14.1 and all materials embodying them shall automatically belong to the Company to the fullest extent permitted by law and in particular:

 

	 	
13.4.1
	
The Executive acknowledges that for the purpose of section 11 of the Copyright Designs and Patents Act 1988 the Company shall be the first owner of any copyright works made during the course of his employment.

 

	 	
13.4.2
	
The Executive acknowledges that, for the purposes of the Copyright, Designs and Patents Act 1988, section 2(1) of the Registered Designs Act 1949 as amended by the Copyright, Designs and Patents Act 1988, and Article 14 of the Community Design Regulation EC No. 6/2002, the Company shall be treated as the original proprietor of a design, where such design is, created by him during his employment.

 

	 	
13.4.3
	
The Executive acknowledges that for the purpose of the Copyright and Rights in Databases Regulations 1997 (as from time to time amended, extended or re- enacted) the Company shall be treated as the maker of any such database, where such database is created by him during his employment.

 

	 	
13.5
	
Any Inventions made discovered or produced by the Executive referred to in clause 13.1 shall be the absolute property of the Company (except to the extent, if any, provided otherwise by section 39 of the Patents Act 1977) and the Executive shall, without additional payment, if and when required by the Company (whether during the continuance of his employment or afterwards) and at its expense, apply, or join with the Company in applying, for any patent at the Company's expense, or other protection in any part of the world for any invention process or development.

 

	 	
13.6
	
The Executive shall execute all documents and do all acts (both during and after his employment by the Company) necessary to confirm the vesting in the Company or its nominee absolutely of title to and/or registering in the name of the Company or its nominee any or all applicable Inventions, Works and/or Intellectual Property Rights referred to in clause 13.1 (except only to the extent that by virtue of Section 39 of the Patents Act 1977 such Intellectual Property Rights fail to vest in the Company) in any or all countries.

 

	 	
13.7
	
The Executive agrees and undertakes that he shall execute such deeds or documents and do all such acts and things as may be necessary or desirable (both during and after his employment by the Company) to protect and maintain the rights of the Company in respect of the matters referred to in sub-clauses 13.1 to 13.5 (inclusive).

 

	 	
13.8
	
The Executive shall do nothing (whether by omission or commission) during his employment or at any times thereafter to affect or imperil the validity of any Intellectual Property Rights obtained, applied for or to be applied for by the Company or its nominee.

 

 

13

 

 

The Executive shall not disclose the subject matter of any Inventions which may be patentable before the Company has had the opportunity to apply for any patent.

 

	 	
13.9
	
Nothing in this Agreement shall oblige the Company, its nominee or any Associates to seek patent or other protection for any Invention or to exploit any Invention.

 

	 	13.10	The Executive acknowledges that, because of the nature of his duties and the particular responsibilities arising from the nature of his duties, he has, and shall have at all times while he is employed by the Company, a special obligation to further the interests of the Company.

 

	 	
14.
	
CONFIDENTIALITY

 

	 	
14.1
	
Save in the proper performance of his duties under this Agreement or if authorised to do so by the Board or ordered to do so by a court of competent jurisdiction or required to do so by any statutory or regulatory authority, the Executive shall not during his employment or afterwards directly or indirectly:

 

	 	14.1.1	use for his own benefit or the benefit of any other person or to the detriment of the Company or any of its Associates;
	 	 	 
	 	
14.1.2
	
disclose to any person; or

	 	 	 
	 	14.1.3	through any failure to exercise all due care and diligence cause or permit any unauthorised disclosure of

 

any Confidential Information.

 

	 	
14.2
	
The Executive shall use his best endeavours during the continuance of his employment to prevent the publication, disclosure or misuse of any Confidential Information and shall not remove, nor authorise others to remove, from the premises of the Company or of any of its Associates any records of Confidential Information except to the extent strictly necessary for the proper performance of his or the other person's duties to the Company or any of its Associates.

 

	 	
14.3
	
The Executive shall promptly disclose to the Company full details of any knowledge or suspicion he has (whether during or after his employment) of any actual, threatened or pending publication, disclosure or misuse by any person (including the Executive himself) of any Confidential Information and shall provide all reasonable assistance and co- operation (at the Company’s expense) as the Company may request in connection with any action or proceedings it may take or contemplate in respect of any such publication, disclosure or misuse.

 

	 	
14.4
	
This clause 14 is without prejudice to the Executive's equitable duty of confidence.

 

	 	
14.5
	
Nothing in this Agreement shall preclude the Executive from making a protected disclosure in accordance with the provisions set out in the Employment Rights Act 1996.

 

	 	
15.
	
PROTECTION OF INTERESTS OF COMPANY ETC.

 

	 	
15.1
	
In this clause:

 

	 	
15.1.1
	
"Competing Business" shall mean any business carried on within England, Wales, Scotland, Northern Ireland, Ireland, the United States of America, Australia, Philippines, Singapore or Uruguay or any other country in which the PLC Company, the Company or any of its Subsidiaries or Associates as at the Termination Date carries on or proposes to carry on (in the immediate or foreseeable future) any business, which wholly or partly competes or proposes to compete with any business which at the Termination Date the PLC Company, the Company or any of its Subsidiaries or Associates carries on, save for any such business in any such country in which the Executive was not involved to any material extent at any time during the 12 months up to and including the Termination Date and in relation to which the Executive did not possess material Confidential Information as at the Termination Date;

 

 

14

 

 

	 	
15.1.2
	
"Prospective Business" shall mean any business carried on within England, Wales, Scotland, Northern Ireland, Ireland, the United States of America, Australia, Philippines, Singapore or Uruguay or any other country in which the PLC Company, the Company or any of its Subsidiaries or Associates as at the Termination Date carries on or proposes to carry on (in the immediate or foreseeable future) any business, which wholly or partly competes or proposes to compete with any business which at the Termination Date the PLC Company, the Company or any of its Subsidiaries or Associates proposes to carry on in the immediate or foreseeable future, save for any such business in any such country in relation to which the Executive did not possess material Confidential Information as at the Termination Date;

 

	 	
15.1.3
	
"Restricted Goods or Services" shall mean goods or services of the same type as or similar to or competitive with any goods or services supplied by the PLC Company, the Company or any of its Subsidiaries or Associates at the Termination Date, in the sale or supply of which the Executive shall have been involved to any material extent at any time during the 12 months up to and including the Termination Date;

	 	 	 
	 	15.1.4	references to acting directly or indirectly shall include (without prejudice to the generality of that expression) acting alone or on behalf of any other person or jointly with or through or by means of any other person.

 

	 	
15.2
	
Until the expiration of 6 months from the Termination Date, except in the event of a termination of this Agreement by the Company in repudiatory breach of its terms, the Executive shall not directly or indirectly:

 
	 	15.2.1	carry on or be interested in a Competing Business SAVE that he may hold for investment:

 

	 	
(A)
	
up to 3% of any class of securities quoted or dealt in on a Recognised Investment Exchange; and

	 	 	 
	 	(B)	up to 10% of any class of securities not so quoted or dealt;

 

	 	
15.2.2
	
act as a consultant or employee or worker or officer in any executive, sales, marketing, research or technical capacity in a Competing Business or provide technical, commercial or professional advice to a Competing Business, SAVE to the extent that the Executive demonstrates to the reasonable satisfaction of the Board that his duties or work (i) shall relate exclusively to work of a kind or nature with which he was not concerned to any extent (other than de minimis) at any time during the 12 months up to and including the Termination Date and (ii) shall not involve a material risk of deliberate or inadvertent disclosure or use of any of the Confidential Information possessed by the Executive;

 

	 	
15.2.3
	
act as a consultant or employee or worker or officer in any executive, sales, marketing, research or technical capacity in a Prospective Business or provide technical, commercial or professional advice to a Prospective Business, SAVE to the extent that the Executive demonstrates to the reasonable satisfaction of the Board that his duties or work (i) shall relate exclusively to work of a kind or nature with which he was not concerned to any extent (other than de minimis) at any time during the 12 months up to and including the Termination Date and (ii) shall not involve a material risk of deliberate or inadvertent disclosure or use of any of the Confidential Information possessed by the Executive,

 

 

15

 

 

	 	
15.3
	
Until the expiration of 6 months from the Termination Date, except in the event of a termination of this Agreement by the Company in repudiatory breach of its terms, the Executive shall not directly or indirectly accept orders for or supply or cause orders to be accepted for or cause to be supplied Restricted Goods or Services to any person:

 

	 	
15.3.1
	
who was provided with goods or services by the PLC Company, the Company or any of its Subsidiaries or Associates at any time during the 12 months up to and including the Termination Date and with whom the Executive dealt in connection with the provision of such goods or services at any time during the said 12 month period or in relation to whose dealings with the PLC Company, the Company or any of its Subsidiaries or Associates the Executive possessed a material amount of Confidential Information as at the Termination Date; or

 

	 	
15.3.2
	
who was negotiating with the PLC Company, the Company or any of its Subsidiaries or Associates in relation to orders for or the supply of goods or services at any time during the 12 months up to and including the Termination Date and with whom the Executive dealt at any time during the 12 months up to and including the Termination Date or in relation to whose dealings with the Company or any of its Subsidiaries or Associates the Executive possessed a material amount of Confidential Information as at the Termination Date.

 

	 	
15.4
	
Until the expiration of 6 months from the Termination Date, except in the event of a termination of this Agreement by the Company in repudiatory breach of its terms, the Executive shall not directly or indirectly solicit, canvass or approach or endeavour to solicit, canvass or approach or cause to be solicited, canvassed or approached any person:

 

	 	
15.4.1
	
who was provided with goods or services by the PLC Company, the Company or any of its Subsidiaries or Associates at any time during the 12 months up to and including the Termination Date and with whom the Executive dealt in connection with the provision of such goods or services at any time during the said 12 month period or in relation to whose dealings with the Company or any of its Subsidiaries or Associates the Executive possessed a material amount of Confidential Information as at the Termination Date; or

	 	 	 
	 	
15.4.2
	
who was negotiating with the PLC Company, the Company or any of its Subsidiaries or Associates in relation to orders for or the supply of goods or services at any time during the 12 months up to and including the Termination Date and with whom the Executive dealt at any time during the 12 months up to and including the Termination Date or in relation to whose dealings with the PLC Company, the Company or any of its Subsidiaries or Associates the Executive possessed a material amount of Confidential Information as at the Termination Date;

 

for the purpose of offering to that person Restricted Goods or Services.

 

	 	
15.5
	Until the expiration of 6 months from the Termination Date, except in the event of termination of this Agreement by the Company in repudiatory breach of its terms, the Executive shall not directly or indirectly:

  

	 	
15.5.1
	
solicit, canvass or approach or endeavour to solicit, canvass or approach or cause to be solicited, canvassed or approached for the purpose of:

 

	 	
(A)
	
obtaining the supply of goods or services of the same type as or similar to any goods or services supplied to the PLC Company, the Company or any of its Subsidiaries or Associates at the Termination Date; or

 

 

16

 

 

	 	
(B)
	
interfering with or endeavouring to terminate or reduce the levels of such supplies to the PLC Company, the Company or any of its Subsidiaries or Associates,

  

any person who supplied the PLC Company, the Company or any of its Subsidiaries or Associates with any such goods or services at any time during the 12 months up to and including the Termination Date and with whom the Executive dealt at any time during the said 12 month period or in relation to whom as at the Termination Date the Executive possessed a material amount of Confidential Information where it is reasonably likely that such soliciting, canvassing or approaching would, if successful, materially prejudice the ability of the Company or any of its Subsidiaries or Associates to procure or the terms on which it is able to procure the supply of such goods or services; or

 

	 	
15.5.2
	
knowingly interfere with any arrangements between the PLC Company, the Company or any of its Subsidiaries or Associates and any third party or parties whereby the PLC Company, the Company or the relevant Subsidiary or Associate holds a licence or permission to carry on its business or benefits from discounts or other beneficial trading terms extended to it by a supplier of goods or services by virtue of such arrangements; or

 

	 	
15.5.3
	
knowingly or recklessly do anything which is or is calculated to be prejudicial to the interests of the PLC Company, the Company or any of its Subsidiaries or Associates or the business of the Company or any of its Subsidiaries or Associates or which results or may result in the discontinuance of any contract or arrangements of benefit to the PLC Company, the Company or any of its Subsidiaries or Associates;

 

and for these purposes any agreement between the PLC Company, the Company or any of its Subsidiaries or Associates and a third party whereby that third party sources customers or goods or services for the PLC Company, the Company or any of its Subsidiaries or Associates shall also be deemed to constitute a supply of a service by such third party.

 

	 	
15.6
	
Until the expiration of 6 months from the Termination Date, except in the event of a termination of this Agreement by the Company in repudiatory breach of its terms, the Executive shall not directly or indirectly solicit or entice away or endeavour to solicit or entice away or cause to be solicited or enticed away from the PLC Company, the Company or any of its Subsidiaries or Associates any person who is, and was at the Termination Date, employed or directly or indirectly engaged by the PLC Company, the Company or any of its Subsidiaries or Associates in an executive, sales, marketing, research or technical capacity or whose departure from the PLC Company, the Company or any of its Subsidiaries or Associates would have a material adverse effect on the business of such company, and with whom the Executive worked at any time during the 12 months up to and including the Termination Date or in relation to whom as at the Termination Date the Executive possessed a material amount of Confidential Information, with a view to inducing that person to leave such employment or engagement (whether or not such person would commit a breach of his contract of employment or engagement by reason of leaving).

 

	 	15.7	In the event that the Executive is placed on garden leave pursuant to sub-clause 18.1, during which the Company exercises its rights under sub-clause 18.1.4 or 18.1.5, the period of any such garden leave shall be deducted from the period of the restrictions contained in sub-clauses 15.2, 15.3, 15.4, 15.5 and 15.6.

 

	 	
15.8
	
The restrictions in clause 15.2 will only apply if the Executive receives a remuneration payment (including base salary, the cost to the Company of the contractual benefits referred to in clauses 6.1 to 6.4, bonus and any sums accrued and outstanding under the carried interest arrangement) in respect of the relevant period of restriction. For the avoidance of doubt, the Executive shall be deemed to have received a remuneration payment if the period of restriction encompasses a period in respect of which he has been paid in accordance with clause 17.10.

 

 

17

 

 

	 	
15.9
	
Each of the restrictions in sub-clauses 15.2.1, 15.2.2, 15.2.3, 15.3.1, 15.3.2, 15.4.1, 15.4.2, 15.5.1, 15.5.2, 15.5.3, 15.6 hereof is separate and severable and in the event of any such restriction (including the defined expressions in sub-clauses 1.1.1, 1.1.5, 15.1.1, 15.1.2, 15.1.3 and 15.1.4) or sub-clause 15.7 being determined as being unenforceable in whole or in part for any reason such unenforceability shall not affect the enforceability of the remaining restrictions or, in the case of part of a restriction being unenforceable, the remainder of that restriction. The restrictions in sub-clauses 15.2.1, 15.2.2 and 15.2.3 shall be deemed to be separate and severable in relation to each of the countries set out in sub- clauses 15.1.1 and 15.1.2.

 

	 	
15.10
	
After the Termination Date (for whatever reason and howsoever caused) or, if later, the date of his ceasing to be a director of the Company the Executive shall not represent himself or permit himself to be held out as being in any way connected with or interested in the business of the PLC Company, the Company or of any of its Subsidiaries or Associates and shall not use in connection with any business the name of the Company or any of its Subsidiaries or Associates or any name capable of confusion therewith.

 

	 	
15.11
	
Save for a protected disclosure made in accordance with the provisions set out in the Employment Rights Act 1996 and save as required by law or the regulations of any statutory or regulatory authority, the Executive shall not during his employment or after the Termination Date make, publish or cause to be made or published any statement or remark which is likely or intended to harm the business or reputation of the Company or any of its Subsidiaries or Associates or any current or former officer, employee, consultant or agent of any such company.

 

	 	
15.12
	
The restrictions entered into by the Executive in sub-clauses 14, 15.2, 15.3, 15.4, 15.5, 15.6, 15.7, 15.8, 15.10 and 15.11 are given to the Company to hold as trustee for itself and for each and any of its Subsidiaries and Associates and the Executive agrees that he shall at the request and cost of the Company enter into a further agreement with any such company whereby he shall accept restrictions corresponding to the restrictions in this Agreement (or such of them as that company in its discretion shall deem appropriate). The Company declares that insofar as these restrictions relate to such Subsidiary or Associate it holds the benefit of them as trustee for such Subsidiary or Associate as the case may be. As regards any powers, authorities and discretions vested in the Company as trustee hereunder or by operation of law, the Company shall have absolute and uncontrolled discretion as to the exercise or non-exercise thereof and shall not (save in the case of its gross negligence or wilful misconduct) be responsible for any loss, costs, damages or expenses that may result from the exercise or non-exercise thereof.

 

	 	
15.13
	
Following the Termination Date, the Company reserves the right forthwith on written notice to the Executive given in accordance with clause 29 to assign its rights under clauses 14 and 15 to any successor in business to the Company or to any of its Subsidiaries or Associates.

 

	 	
15.14
	
The Executive acknowledges that he has had the opportunity to take legal advice in relation to the restrictions contained in this clause 15 and that he considers them reasonable and necessary for the protection of the legitimate interests of the Company and its Subsidiaries and Associates.

 

	 	
15.15
	
Without prejudice to the Executive's obligations under clauses 14 and 15, in the event that, during the continuance of this Agreement or during the period for which all or any of the restrictions set out in this clause 15 are expressed to apply, the Executive receives from any person an offer of employment or engagement (whether oral or in writing) which the Executive is considering whether to accept, the Executive shall provide to such offeror a copy of the restrictions contained in clauses 14 and 15 of this Agreement. In the event that the Executive accepts any such offer, he shall immediately inform the Board of the identity of the offeror and a description of the principal duties of the position accepted and shall confirm to the Board in writing that he has provided a copy of the restrictions contained in clauses 14 and 15 of this Agreement to such offeror.

 

 

18

 

 

	 	
16.
	
INTERIM APPOINTMENT

 

The Company shall be entitled:

 

	 	16.1	during the whole or part of any period of notice to terminate the Executive's employment served by either party; and/or

 

	 	
16.2
	
if the Executive is absent from work as a result of sickness or injury or other leave for more than 90 consecutive days, for the period of continued absence,

 

to appoint another person or persons to hold the same or similar job title on an interim basis and to carry out all or any of the Executive's duties instead of him.

 

	 	
17.
	
TERMINATION

 

	 	
17.1
	
Either party shall be entitled to terminate the employment of the Executive by giving notice to the other in accordance with sub-clause 3.2.

 

	 	
17.2
	
Notwithstanding sub-clause 3.2 and without prejudice to its rights under the other provisions of this clause 17, the Company shall be entitled to terminate the employment of the Executive with immediate effect by giving summary notice if the Executive commits a repudiatory breach of this Agreement or if the Board reasonably considers that any of the events set out below occur or have occurred (whether or not such event would otherwise be a repudiatory breach):

 

	 	
17.2.1
	
the Executive commits a serious or persistent breach of any material term of this Agreement;

 

	 	17.2.2	the Executive is guilty of conduct (whether or not related to his employment or office) likely in the reasonable opinion of the Board to bring himself or the Company or any Associate into disrepute;

 

	 	
17.2.3
	
the Executive repeatedly neglects, fails or refuses to carry out any of the duties properly assigned to him under this Agreement;

 

	 	
17.2.4
	
the Executive becomes bankrupt or compounds with his creditors;

 

	 	
17.2.5
	
save in the case of impending insolvency where the Board does not heed the Executive's reasonable recommendations and the Executive considers himself obliged to resign, the Executive without the express written consent of the Board resigns from (other than pursuant to the Company’s request under sub-clause 17.6), or fails to offer himself for re-election to, his office as a director of the Company or of any Associate of which he has been appointed a director, or if he shall be disqualified from holding or shall cease to be qualified to hold office as a director by any order of the Court or under any provision of general law from time to time;

 

	 	
17.2.6
	
the Executive commits any serious or persistent breach of the Company's equal opportunity or health and safety policy in force from time to time; or

 

	 	
17.2.7
	
the Executive

 

	 	
(A)
	
is disqualified or disbarred from membership of; or

 

	 	
(B)
	
is subject to any prohibition, censure, criticism or disciplinary sanction by; or

 

 

19

 

 

	 	
(C)
	
fails to be granted or obtain, or ceases to hold, any necessary licences, permissions, consents, approvals or qualifications (in unrestricted form) from

 

any professional, regulatory or other body or authority, which prevents him from performing any of his duties under this Agreement or undermines the confidence of the Board in his continued employment by the Company.

 

For the avoidance of doubt, in the circumstance of a termination pursuant to this clause 17.2 the Executive shall have no pro-rata entitlement to any bonus or carried interest arrangement in respect of that year.

 

	 	
17.3
	
The parties to this Agreement agree that termination under sub-clause 17.2 shall be deemed to be for a substantial reason justifying dismissal within Section 98(1)(b) of the Employment Rights Act 1996. The parties further agree that termination under sub-clause

17.2 shall be deemed to be by reason of the Executive's conduct within Section 86(6) of the Employment Rights Act 1996.

 

	 	
17.4
	
In order to investigate a complaint against the Executive of misconduct and to allow the Company to carry out whatever investigations it deems appropriate, the Company may suspend the Executive for a reasonable period on full pay and other contractual benefits save as set out below and may do any or all of the following:

 

	 	
17.4.1
	
exclude the Executive from all or any premises of the Company or any Associate; or

 

	 	
17.4.2
	
require the Executive to abstain from engaging in any contact (whether or not initiated by him) which concerns any of the business affairs of the Company or any Associate with any customer, client, supplier, other business connection, employee, director, officer, consultant or agent of the Company or any Associate; or

 

	 	
17.4.3
	
require the Executive to deliver up to the Company (to whomever the Board specifies), without destruction, deletion or redaction of any data or images, any correspondence, documents, laptops, computer drives, computer disks and other computer equipment, tapes, mobile telephones, or BlackBerry wireless devices (or similar equipment) in his possession or under his control and which belong to the Company or any of its Associates, and to provide to the Company full details of all then current passwords or other privacy or security measures used by the Executive in respect of any such equipment; or

 

	 	
17.4.4
	
suspend or limit the Executive’s access to the Company’s and any Associate's computer, e-mail, telephone, voicemail and other communication systems or databases.

 

	 	
17.5
	
During any period of suspension pursuant to sub-clause 17.4, the Executive shall (for the avoidance of doubt) continue to be bound by the duties of fidelity and good faith, shall hold himself available during normal business hours (other than agreed holidays or authorised absence for sickness or injury or other authorised leave) to perform any duties that may be assigned to him (if any), and shall continue to comply with the terms of this Agreement including clauses 11 to 14 (inclusive). Except where subsequently reinstated, the Executive shall have no eligibility for any bonus (including the bonus referred to in sub- clause 5.5) in respect of the period of any such suspension and shall have no claim in respect of the effect (if any) which any such suspension may have on his eligibility in respect of any other period. If the Executive ceases to be available for work as a result of sickness or injury during any period of suspension pursuant to sub-clause 17.4, the suspension will be rescinded until such time as the Executive becomes fit for work. Notwithstanding such rescission, the Executive must continue to comply with any instruction issued by the Company in the terms set out in sub-clauses 17.4.1 to 17.4.4.

 

 

20

 

 

	 	
17.6
	
On the Termination Date (for whatever reason and howsoever caused), or at the Company's request following the Executive having been placed on garden leave pursuant to sub-clause 18.1, the Executive shall promptly:

 

	 	
17.6.1
	
resign (if he has not already done so) from any and all offices and appointments held by him in or on behalf of the Company or any of its Associates;

 

	 	17.6.2	deliver up to the Company (to whomever the Board specifies), without destruction, deletion or redaction of any data or images, any and all originals, copies or extracts of:

 

	 	
(A)
	
correspondence, documents (including lists of customers), laptops, computer drives, computer disks, other computer equipment (including leads and cables), tapes, mobile telephones, BlackBerry wireless devices (or similar equipment), credit cards, security passes, keys, car provided by the Company (which is to be returned in good condition allowing for fair wear and tear) and other tangible items, which are in his possession or under his control and which belong to or are leased or hired by the Company or any of its Associates; and

 

	 	
(B)
	
correspondence and documents (including lists of customers) in his possession or under his control which contain or refer to any Confidential Information; and

 

	 	
(C)
	
minutes of meetings and other papers of the Board and of any board of directors of any Associate which are in his possession or under his control

 

and provide to the Company full details of all then current passwords or other privacy or security measures used by the Executive in respect of any equipment required to be delivered up to the Company pursuant to sub-clause 17.6.2(A); and

 

	 	
17.6.3
	
having forwarded a copy to the Company, irretrievably delete as far as technically possible any and all Confidential Information from any laptops, computer drives, computer disks, tapes, mobile telephones, BlackBerry wireless devices (or similar equipment) or other re-usable material in the Executive's possession or under his control (but which do not belong to the Company or any of its Associates).

 

	 	
17.7
	
The Executive irrevocably authorises the Company in his name and on his behalf to execute all documents and do all things necessary to effect the resignations referred to in sub-clause 17.6.1, in the event of his failure to do so within seven days of any request or the Termination Date (as the case may be). The Executive shall produce such evidence of his compliance with sub-clauses 17.6.2 and 17.6.3 as the Company may reasonably require. In the event of the Executive's death prior to compliance with the obligations in sub-clauses 17.6.2 and 17.6.3, the Executive's estate and heirs shall be bound by such obligations.

 

	 	17.8	Any obligations of the Executive under this Agreement which are expressed to continue after the Termination Date shall continue in full force and effect notwithstanding the termination of his employment.

 

	 	
17.9
	
For the purposes of sub-clause 17.10, the "Period" shall mean:

 

	 	
17.9.1
	
the unexpired portion of any prior notice of termination of the Executive's employment which has already been given by the Executive or the Company (as at the date of service of notice pursuant to this sub-clause); or

 

	 	17.9.2	where no such prior notice has been given, the minimum period of notice of termination specified as to be given by the Company in sub-clause 3.2.

 

 

21

 

 

	 	
17.10
	
The Company may, in its absolute discretion and without any obligation to do so, terminate the Executive's employment with immediate effect by giving him written notice given in accordance with clause 29 that it will make a payment of such sum as would have been payable by the Company to the Executive as base salary (for the avoidance of doubt, excluding any bonus, carry arrangement, other incentives or benefits) plus the cost to the Company of the contractual benefits referred to in clauses 6.1 to 6.4 in respect of the Period less any deductions which the Company may be required to make including in respect of income tax and employee's National Insurance contributions. If the Company gives such notice, the Executive agrees that his employment under this Agreement will terminate with effect from the date the notice was deemed given in accordance with clause 29 and the Company will make the payment specified herein in accordance with clause 17.12. If the Executive's employment is terminated pursuant to this clause 17.10 it is agreed that the Executive shall be entitled to participate in the bonus scheme and carried interest arrangement referred to in this Agreement in clauses 5.5 and 5.6 on a pro-rata basis in respect of the period up to the Termination Date (with any amounts payable under these schemes to be paid at the same time as payments are made under such schemes to other participants). For the avoidance of doubt, the termination of the Executive’s employment will not affect the Executive’s entitlements under the bonus scheme and carried interest arrangement other than in relation to the pro-rating of any benefit.

 

	 	
17.11
	
Any such payment shall be accepted by the Executive in full and final settlement of all claims which he may have against the Company or any Associate arising out of his employment or its termination. The discretion to terminate the Executive's employment given to the Company by this sub-clause shall not preclude the Company from exercising any other right which it may have to terminate the Executive's employment or by otherwise dismissing him without notice and paying such compensation as may be agreed or otherwise determined by a court of law.

 

	 	
17.12
	
Any payment of base salary and contractual benefits to be made to the Executive pursuant to clause 17.10 shall be made in two equal instalments. The first instalment shall be made within seven Working Days after the Termination Date and the second instalment shall be made no later than the date that falls 6 months after the Termination Date. The amount payable to the Executive under the second instalment shall be reduced by an amount equal to any payments or benefits received by the Executive from alternative employment or engagement after the Termination Date and up to the date on which the second instalment is due for payment. For the avoidance of doubt, alternative employment shall not take account of any role performed by the Executive in the 6 months following the Termination Date if the Executive performed the role before the Termination Date and/or it was disclosed and/or permitted as required under this Agreement.

 

	 	
17.13
	
The Executive shall not be entitled to any payment pursuant to clause 17.10 if the Company is able to demonstrate (with appropriate supporting evidence) that it would otherwise have been entitled to terminate the employment of the Executive without notice in accordance with sub-clause 17.2.

 

	 	
18.
	
GARDEN LEAVE

 

	 	
18.1
	
Notwithstanding the provisions of clause 4, at any time after notice has been served by either party pursuant to sub-clause 3.2 or if the Executive resigns without giving due notice and the Company does not accept his resignation, the Company may in its discretion place the Executive on garden leave on full salary and other contractual benefits for up to a maximum of twelve months. It is agreed that the Executive shall be entitled to participate in the bonus scheme and carried interest arrangement referred to in this Agreement in clauses 5.5 and 5.6 on a pro-rata basis in respect of the period in which the Executive is on garden leave up to the Termination Date. For the avoidance of doubt, the Executive being on garden leave and/or under notice will not affect the Executive’s entitlements under the bonus scheme and carried interest arrangement other than in relation to the pro-rating of any benefit. During any such garden leave period the Company shall not be obliged to provide any work for the Executive or to assign to or vest in the Executive any powers, duties or functions and may for all or part of such garden leave period do any or all of the following:

 

 

22

 

 

	 	
18.1.1
	
exercise its rights under clause 16;

	 	 	 
	 	18.1.2	announce externally or internally or both that the Executive has given or been given notice of termination of his employment or office(s) and been placed on garden leave and (where applicable) that a substitute has been appointed;
	 	 	 
	 	18.1.3	exclude the Executive from all or any premises of the Company or of any Associate;

 

	 	
18.1.4
	
require the Executive to abstain from engaging in any contact (whether or not initiated by him) which concerns any of the business affairs of the Company or any Associate with any customer, client, supplier, other business connection, employee, director, officer, consultant or agent of the Company or any Associate without the prior written consent of the Board;

 

	 	
18.1.5
	
require the Executive to carry out no duties;

 

	 	
18.1.6
	
save where absent due to agreed holidays or authorised absence for sickness or injury or other authorised leave, require the Executive to undertake at his home or at such place reasonably nominated by the Company such reasonable duties (which may differ from the Executive's normal duties) as the Company may at its discretion assign and to provide any reasonable assistance requested by the Company;

 

	 	
18.1.7
	
exercise its rights under sub-clause 9.3;

	 	 	 
	 	18.1.8	suspend or limit the Executive’s access to the Company’s computer, e-mail, telephone, voicemail or other communication systems or databases;

 

	 	
18.1.9
	
exercise its rights under sub-clause 17.6.

 

	 	
18.2
	
During any garden leave period pursuant to sub-clause 18.1, the Executive shall:

 

	 	18.2.1	(for the avoidance of doubt) continue to be bound by the duties of fidelity and good faith;
	 	 	 
	 	
18.2.2
	
hold himself available during normal business hours (other than agreed holidays or authorised absence for sickness or injury or other authorised leave) to perform such duties as may be assigned to him, if any, and in the event that he fails to make himself available for duties assigned to him, he shall (notwithstanding any other provision of this Agreement) forfeit his right to salary and contractual benefits in respect of such period of non-availability; and

 

	 	
18.2.3
	
continue to comply with the terms of this Agreement including clauses 11 to 14 (inclusive).

 

	 	
18.3
	
Subject to 18.1, the Executive shall have no claim in respect of the effect (if any) which any garden leave period may have on his eligibility in respect of any bonus or other incentive arrangement.

 

	 	
19.
	
AMALGAMATION AND RECONSTRUCTION

 

	 	
19.1
	
If:

 

	 	
19.1.1
	
the employment of the Executive is terminated:

 

	 	(A)	by reason of the liquidation of the Company for the purpose of amalgamation or reconstruction; or
	 	 	 
	 	
(B)
	
as part of any arrangement for the amalgamation of the undertaking of the Company not involving liquidation or for the transfer of the whole or part of the undertaking of the Company to any of its Associates; and

 

 

23

 

 

	 	
19.1.2
	
the Executive is offered employment of a similar nature with the amalgamated or reconstructed or transferee company on terms not generally less favourable to him than the terms of this Agreement;

 

the Executive shall have no claim against the Company or any Associate in respect of that termination.

 

	 	
20.
	
DISCIPLINE AND GRIEVANCES

 

	 	
20.1
	
The Executive is not subject to any particular Company disciplinary rules or disciplinary or dismissal procedures but should conduct himself in accordance with his duties under this Agreement and his fiduciary and other legal duties.

 

The ACAS Code of Practice on discipline and grievance applies to the taking of some disciplinary decisions or decisions to dismiss, details of which can be obtained from the Company Secretary.

 

	 	20.2	If the Executive is dissatisfied with any disciplinary or dismissal decision or has any grievance relating to his employment, he should refer the matter to the Chairman of the Board. The reference will be dealt with in such manner as the Chairman determines.
	 	 	 
	 	
21.
	
ADDITIONAL PARTICULARS

	 	 	 
	 	21.1	The following additional particulars are given for the purposes of the Employment Rights Act 1996:

 

	 	21.1.1	the employment of the Executive by the Company shall begin on 1 September 2016;
	 	 	 
	 	
21.1.2
	
no employment of the Executive with a previous employer counts as part of the Executive's continuous employment with the Company and his period of continuous employment shall begin on 1 September 2016;

 

	 	
21.1.3
	
except as otherwise provided by this Agreement, there are no terms or conditions of employment relating to hours of work or to normal working hours or to entitlement to holidays (including public holidays) or holiday pay or to incapacity for work due to sickness or injury or to pensions or pension schemes or requiring the Executive to work outside the United Kingdom for a period of more than one month;

 

	 	
21.1.4
	
there are no collective agreements which directly affect the terms or conditions of the Executive's employment.

 

	 	
22.
	
ENTIRE AGREEMENT AND SEVERABILITY

 

	 	
22.1
	
Each of the Executive and the Company, on behalf of itself and its Associates, confirms that this Agreement represents the entire understanding, and constitutes the whole agreement, in relation to its subject matter (save only for any terms implied at law or by custom) and supersedes any previous agreement between the parties with respect thereto (which shall be deemed to have been terminated by mutual consent).

 

	 	
22.2
	
The Executive confirms that:

 

	 	
22.2.1
	
in entering into this Agreement he has not relied on any representation, warranty, assurance, covenant, indemnity, undertaking or commitment which is not contained in this Agreement, or any document referred to in it; and

 

 

24

 

 

	 	
22.2.2
	
in any event, without prejudice to any liability for fraudulent misrepresentation or fraudulent misstatement, the only rights or remedies he has in relation to any representation, warranty, assurance, covenant, indemnity, undertaking or commitment given or action taken in connection with the entering into or performance of this Agreement are pursuant to this Agreement and, for the avoidance of doubt and without limitation, the Executive does not have any right or remedy (whether by way of a claim for contribution or otherwise) in tort (including negligence) or for misrepresentation (whether negligent or otherwise, and whether made prior to, or in this Agreement).

 

	 	
22.3
	
In the event that any part (including any sub-clause or part thereof) of this Agreement shall be void or unenforceable by reason of any applicable law, it shall be deleted and the remaining parts of this Agreement shall continue in full force and effect and, if necessary, both parties shall use their best endeavours to agree any amendments to the Agreement necessary to give effect to the spirit of this Agreement.

 

	 	
23.
	
VARIATION AND WAIVER

 

	 	
23.1
	
No variation of this Agreement shall be effective unless it is evidenced in writing (excluding e-mail) by the Company.

 

	 	
23.2
	
No waiver by the Company or any of its Associates of any term, provision or condition of this Agreement or of any breach by the Executive of any term, provision or condition of this Agreement shall be effective unless it is in writing (excluding e-mail) and signed by the Company.

 

	 	
23.3
	
No failure to exercise nor any delay in exercising any right or remedy hereunder by the Company or any of its Associates shall operate as a waiver thereof or of any other right or remedy hereunder, nor shall any single or partial exercise of any right or remedy by the Company or any of its Associates prevent any further or other exercise thereof or the exercise of any other right or remedy.

 

	 	23.4	The waiver of any term, provision or condition of this Agreement on any occasion by the Company or any of its Associates shall not constitute a waiver of:

 

	 	
23.4.1
	
any other term, provision or condition of this Agreement; or

 

	 	
23.4.2
	
such terms, provisions or conditions of this Agreement on any future occasion.

 

	 	
24.
	
THIRD PARTY RIGHTS

 

No term of this Agreement is enforceable under the Contracts (Rights of Third Parties) Act 1999 by a person who is not a party to this Agreement.

 

	 	
25.
	
ASSIGNMENT

 

In addition to the Company's rights pursuant to sub-clause 15.13, the Executive hereby agrees irrevocably that the Company may forthwith on written notice to the Executive given in accordance with clause 29 assign its rights and transfer (whether by novation or otherwise) or delegate its obligations under this Agreement to any Associate from time to time, and that the Executive shall execute all documents and do all things necessary to effect such assignment or transfer, and any reference to the Company in this Agreement shall thereafter be a reference to any such company. The Executive shall not assign or otherwise seek to transfer or delegate his rights or obligations under this Agreement to any other person.

 

	 	
26.
	
DATA PROTECTION

 

	 	
26.1
	
In this clause, "Personal Data", "Sensitive Personal Data" and "Processing" shall have the respective meanings attributed to them by the Data Protection Act 1998.

 

 

25

 

 

	 	
26.2
	
From time to time the Company will process personal data and sensitive personal data relating to the Executive in order to fulfil the obligations of the Company to the Executive under this Agreement and for other purposes relating to or which may become related to the Executive's employment or the business of the Company. Such processing will principally be for, but will not be limited to, personnel, administrative, financial, regulatory or payroll purposes (including for the purposes of arranging share option or other incentive scheme participation, pension arrangements, life assurance, and any other insurance arrangements provided to the Executive by the Company or by any Associate).

 

	 	
26.3
	
The Executive consents to personal data and sensitive personal data relating to him, for the purposes set out in sub-clause 26.2 and to the extent that is reasonably necessary in connection with the Executive's employment or the business of the Company, being processed by the Company and being disclosed or transferred to and processed by:

 

	 	26.3.1	the Company's professional advisors, HM Revenue & Customs or other authorities, or (subject to appropriate confidentiality undertakings) prospective purchasers of the Company or of the whole or part of its business; and

 

	 	
26.3.2
	
entities which provide benefits or services to employees of the Company or the Company; and

 

	 	
26.3.3
	
any Associate and the employees of such Associate.

 

	 	
26.4
	
The Executive's consent to the transfer and disclosure of personal data and sensitive personal data shall apply regardless of the country to which the data is to be transferred. Where data is transferred outside of the European Economic Area, the Company shall take reasonable steps to ensure an adequate level of protection for the personal data and sensitive personal data concerned.

 

	 	
26.5
	
The Executive shall ensure that any personal data and sensitive personal data which he may process during his employment is kept secure from unauthorised access or disclosure. The Executive shall comply with the requirements of the Data Protection Act 1998 when processing such data in the course of his employment and shall not, without the prior consent of the company, use the services of any third party for the processing of such data. The Executive agrees to promptly notify the Company Secretary of any actual or suspected breach of the requirements of the Data Protection Act 1998 which comes to his attention.

 

	 	
26.6
	
The Executive is responsible for promptly informing the Company Secretary of any change to his personal data, including name, address, marital status, contact details, qualifications and next of kin.

 

	 	
27.
	
REFERENCES

 

If the Company is asked to provide any reference in respect of the Executive it shall be under no obligation to do so, save as required by law or by any professional, statutory or regulatory body or authority. If it does agree to provide a reference it shall use reasonable efforts to ensure that any reference is accurate but shall not in the absence of malice on the part of the Company be liable to the Executive for any error in or omission from any such reference.

 

	 	
28.
	
TELEPHONE AND COMPUTER/E MAIL AND INTERNET USE

 

Unless otherwise provided in the Agreement, the Executive shall comply with the Company's policies for the time being in force concerning use of the Company's telephone and computer (including e mail and Internet) facilities. The Company reserves the right to carry out ad hoc or routine monitoring of, and to keep records of, telephone and e mail communications made, Internet sites accessed and data and images stored using the Company's facilities (including use for personal reasons) for any of the purposes set out in the Telecommunications (Lawful Business Practice) (Interception of Communications) Regulations 2000.

 

 

26

 

 

	 	
29.
	
NOTICES

	 	 	 
	 	29.1	A notice to terminate this Agreement and a notice which is required to be given in accordance with this clause:

 

	 	
29.1.1
	
must be in writing in the English language;

 

	 	
29.1.2
	
must be delivered personally or left at the address of the addressee or sent by pre-paid recorded delivery (airmail if posted to or from a place outside the United Kingdom) to the address of the addressee or sent by facsimile to the facsimile number of the addressee in each case which is specified in this clause in relation to the party to whom the notice is addressed, and marked for the attention of the person so specified, or to such other address or facsimile number in the United Kingdom or marked for the attention of such other person as the relevant party may from time to time specify by notice given in accordance with this clause.

 

The relevant details of each party at the date of this Agreement are: In the case of the Executive:

 

	 	Address:	Cretzschmarstrasse 21, 60487 Frankfurt 
	 	 	 
	 	
In the case of the Company:

	 	 	 
	 	
Address:
	
VivoPower International PLC, 23 Hanover Square, Mayfair, 

London, England, W1S 1JB

 

Attention: Company Secretary of VivoPower International PLC

 

	 	
29.1.3
	
for the avoidance of doubt, must not be sent by e-mail.

 

	 	29.2	Any notice shall be deemed to be given and take effect at the time it is deemed to have been received in accordance with sub-clause 29.3 or, if earlier, at the time it is in fact received.
	 	 	 
	 	
29.3
	
Subject to sub-clause 29.4, a notice is deemed to be received:

 

	 	
29.3.1
	
in the case of a notice left at the address of the addressee, upon delivery at that address;

 

	 	
29.3.2
	
in the case of a posted letter, on the third day after posting, or if posted to or from a place outside the United Kingdom, the seventh day after posting; and

 

	 	
29.3.3
	
in the case of a facsimile, on production of a transmission report from 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 provided that a confirmatory copy of such facsimile shall have been sent by post in accordance with sub-clause 29.1 within 24 hours of such transmission.

 

	 	
29.4
	
A notice received or deemed to be received in accordance with Clause 29.1 above on a day which is not a Business Day, or after 5pm on any Business Day, shall be deemed to be received on the next following Business Day and for the purposes of this clause "Business Day" shall mean a day (other than a Saturday or Sunday) on which banks are open for general business in London.

 

	 	
29.5
	
The Executive undertakes to maintain at all times during the term of this Agreement an address in the United Kingdom for service of notices pursuant to this clause and to notify the Company in advance by notice given in accordance with this clause of any changes from time to time of the details of such address.

 

 

27

 

 

	 	
30.
	
GOVERNING LAW

 

	 	
30.1
	
This Agreement shall be governed by, and construed in accordance with, the law of England and Wales and the Courts of England and Wales shall have exclusive jurisdiction in relation to any dispute arising out of or in connection with this Agreement.

 

	 	
31.
	
COUNTERPARTS

 

The Agreement is subject to contract until it is dated and signed by all of the parties, at which point it shall be treated as an agreement binding on the parties, notwithstanding that it may still be labelled 'Draft ' or 'Subject to Contract'. This Agreement may be executed in any number of counterparts each in the like form, all of which taken together shall constitute one and the same document and any party may execute this Agreement by signing and dating any one or more of such counterparts.

 

 

28

 

 

IN WITNESS whereof the parties hereto have set their hands the day and year written below.

 

 

 

 

 

SIGNED:          /s/ Kevin Chin 

                     For and on behalf of the Company

 

NAME:     Kevin Chin, Chairman

DATED:     04 August 2016       

 

 

 

 

SIGNED:          /s/ Philip Comberg 

                    The Executive

 

DATED:     04 August 2016

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