Document:

October 24, 2002

[NEW BASTION DEVELOPMENT INC. LETTERHEAD]

October 25, 2008

Mr. Patrick O’Keefe

Jetronic Industries, Inc.

1000 NW 65th Street, Suite 103 

Fort Lauderdale, Florida 33309

Dear Mr. O’Keefe:

New Bastion Development, Inc. (“New Bastion”) is pleased to submit this letter of intent to Jetronic Industries, Inc. (“Jetronic”) reflecting its proposal to be reorganized with Jetronic (the “Transaction”).

The Transaction would be effected pursuant to a mutually satisfactory definitive reorganization agreement (the “Agreement”) representing a merger, share exchange or other similar transaction. The closing of the Transaction will take place no later than sixty (60) days after the execution of the Agreement, or as soon as practicable pursuant to applicable U.S. Securities and Exchange Commission rules. The Transaction shall qualify as tax free exchange under the Internal Revenue Code. The Agreement would include the following material terms and conditions set forth in paragraphs 1 through 11 below:

1.

Pursuant to the Agreement, New Bastion will reorganize with Jetronic, with Jetronic as the surviving corporation.  The aggregate consideration for the Transaction will consist solely of Jetronic common stock. Upon completion of the Transaction, the capitalization of Jetronic shall consist of 19,267,500 shares of common stock outstanding, of which present Jetronic shareholders shall retain approximately 9,587,500 shares of common stock, and New Bastion shareholders shall retain approximately 9,680,000 shares of common stock. Also, New Bastion shall cancel all of the 15,750,000 shares of Jetronic common stock that was previously issued to New Bastion by Jetronic. New Bastion shareholders holding the 550 shares of Series A Convertible Preferred Stock shall retain such shares until such time that Jetronic’s capital structure will enable it to issue 550 shares of comparable preferred stock.

2.

The shares of Jetronic common stock received by shareholders of New Bastion in connection with the Transaction will be not be registered for resale under the Securities Act of 1933, as amended (the “Securities Act”).  As such, these shares will be subject to resale restrictions as set forth in Rule 144 of the Securities Act and certain other resale limitations.

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3.

In the Agreement, Jetronic and New Bastion will make certain mutually agreeable customary representations, warranties and covenants relating to the capitalization and ownership of Jetronic and New Bastion, the absence of any litigation or undisclosed liabilities, the accuracy and completeness of financial statements and other similar matters.

4.

The closing of the Transaction is conditioned, among other customary matters, upon the following:

A.

The execution and delivery of the Agreement by Jetronic and New Bastion;

B.

The approval of the Transaction by the Board of Directors of Jetronic and New Bastion;

C.

The delivery of each party to the other audited financial statements for the last fiscal year and interim unaudited financial statements for the quarterly periods thereafter;

D.

Jetronic preparing the requisite Form 8-K required to be filed within four business days of the closing of the Transaction.  

5.

Each party shall have thirty (30) days from the date of this Agreement to investigate all aspects of the other party relevant to the Transaction, including without limitation, balance sheet data, ownership and value of assets and property, and other information that is customarily investigated in connection with transactions of this nature. 

7.

New Bastion acknowledges that during the period from the date hereof through the closing date, New Bastion, and personnel at New Bastion, may become aware of  “material non-public information” (as defined under applicable securities laws) regarding Jetronic. New Bastion understands, and they will communicate to persons having knowledge of any such information, that they are required under applicable securities laws to refrain from trading in securities of Jetronic while in possession of this information and to refrain from disclosing this information to anyone except as required in pursuing the Transaction. Jetronic’s obligation in this regard is reciprocal. 

9.

New Bastion, on the one hand, and Jetronic, on the other hand, will each pay their respective legal, accounting, tax, brokers, and other advisor's expenses incurred in pursuing and consummating the Transaction. Jetronic agrees, however, that if the Transaction is consummated, all of New Bastion’s expenses incurred in connection with the Transaction will be paid by Jetronic subsequent to the closing of the Transaction.

10.

Neither party shall make any public announcement or any press release, or disclose to any other party (other than financial accounting and legal representatives of the parties), any information or dissemination among the parties regarding this letter of intent or the subject matter thereof without the prior written consent of the other party unless otherwise required by law or as set forth in Jetronic’s filings with the SEC. The parties agree, however, that upon the execution of this letter of intent, Jetronic shall make a public press release over the appropriate financial news wires regarding this letter of 

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intent which shall have been previously approved by New Bastion.

11.

The provisions of this letter of intent shall be subject to the final definitive terms of the Agreement.

It is understood that this letter of intent with the exception of paragraphs 7 through 10, does not constitute a binding agreement between the parties. It does, however set forth the present intention of the parties to negotiate toward the execution of the Agreement upon the terms and conditions as described above and such other terms and conditions as are mutually acceptable to the parties. If the Agreement is not executed on or before the sixty (60) day time period first described above, the parties shall have no further obligations to each other except as set forth in paragraphs 7 through 10. 

If the foregoing sets forth our understanding, please so indicate by returning one fully executed copy of this letter of intent to New Bastion.

Very Truly Yours,

/s/Elliot Bellen

Elliot Bellen, President

New Bastion Development, Inc

Acknowledged and agreed to

this 25th day of October 2008

By:___ /s/Patrick O’Keefe_________

Patrick O’Keefe, President

Jetronic Industries, Inc.

3EX-10.R

Exhibit 10(r)

	 
	 

	 

	 

	

1 November 2007

Dr T G Davies

3 Coffey Street

CRESTMEAD QLD 4132

Dear Gwynn,

Employment Contract with Magellan Petroleum Australia Limited

I am pleased to confirm your ongoing terms and conditions of employment with Magellan Petroleum
Australia Limited ACN 009 728 581 (Magellan) in your role as Chief Executive Officer.

Please note that the terms and conditions set out in this letter will replace your existing terms
and conditions as from the date of your acceptance of them.

Accordingly, please read these terms and conditions carefully and sign and return the attached
duplicate of this letter to me to confirm your acceptance of them. A Confidentiality Deed is
attached which also needs to be executed by you and witnessed.

If you have any queries regarding these terms and conditions, please do not hesitate to contact me.

I look forward to receiving your acceptance of these terms and conditions of employment.

Yours sincerely,

/s/ Robert Mollah

Robert Mollah

Chairman.

 

 

Terms and conditions of employment

1 Continuity and term of employment

This document will commence on 1 November 2007

The continuity of your employment with Magellan is not broken by the execution of this document.
For the purpose of calculating your period of continuous service with Magellan your employment will
continue to be deemed to have commenced on 6 October 1997.

Subject to the terms and conditions of this document, you retain any entitlements to annual leave,
personal leave and long service leave which were accrued immediately prior to the commencement of
this document.

Your employment will continue until terminated in accordance with this document.

2 Position

You are currently appointed to the position of Chief Executive Officer for Magellan Petroleum
Australia Limited (Magellan). You will report to the Magellan Board through its Chairman.

3 Role

3.1 Specific duties

Magellan may issue you with a duty statement or revised duty statement from time to time.

In your role for Magellan, you may be required to undertake duties relating to the business of any
company in the Magellan group of companies (Magellan Group). The Magellan Group comprises all
companies related to Magellan within the meaning of the Corporations Act 2001 (Cth).

You will appreciate that the Magellan businesses require a dynamic and adaptable management team.
Accordingly, Magellan may from time to time alter the responsibilities and duties of your position
or the reporting arrangements for your position, or may require you to move to a Suitable
Alternative Position, after discussion with you.

For the purposes of this document, a Suitable Alternative Position means a position with Magellan:

	(a)	 	located in Brisbane;
	 
	(b)	 	with duties and responsibilities of a similar nature to those of your current position; and
	 
	(c)	 	at a similar level of seniority and pay to your current position.

3.2 General responsibilities

You must:

	(a)	 	perform the duties assigned to you from time to time and comply with all lawful directions
given to you by your Chairman and the Magellan Board;

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	(b)	 	perform your duties in a proper and efficient manner to the best of your knowledge and
ability;
	 
	(c)	 	use your best endeavours to promote and enhance the interests, profitability, growth and
reputation of Magellan and the Magellan Group companies;
	 
	(d)	 	act in the best interests of Magellan and not intentionally do anything which is or may be
harmful to Magellan or any Magellan Group company;
	 
	(e)	 	not act, or be seen to be acting, in conflict with the best interests of Magellan or any
Magellan Group company, and if such conflict appears possible or arises, you must notify your
Chairman at the earliest opportunity; and
	 
	(f)	 	promptly report to your Chairman all information as may be required relating to the business
of Magellan or any Magellan Group company.

3.3 Corporate appointments

In the event that you accept appointment as a director and/or secretary of Magellan and/or any
Magellan Group company you will do so without additional compensation or reward. On termination of
your employment, you agree to resign as director and/or secretary of Magellan and/or any Magellan
Group company and irrevocably appoint and authorise the Chair of the Board of Magellan and each
member of the Magellan Group to do all things necessary to record that resignation.

4 Location

You will be based in Brisbane, Australia, but may be required to relocate to other Australian or
overseas locations.

If it appears that intrastate, interstate or inter-country relocation will be required, Magellan
will discuss this with you before making a final decision on the relocation.

If an intrastate, interstate or inter-country relocation is required, but you do not wish to
relocate, and there is no Suitable Alternative Position for you, Magellan may terminate your
employment in accordance with the termination provisions in this document.

5 Working hours

You will work during Magellan’s normal business hours between 8.30am and 5.00pm and such other
hours as are necessary for you to perform your duties in a satisfactory manner. Your remuneration
includes compensation for work outside normal hours and you will not be entitled to any additional
remuneration or other benefit for work outside these hours.

6 Travel

You may be required to travel within and outside Australia on Magellan Group business. You will
not be entitled to any additional remuneration for such travel, but travel expenses for approved
travel will be paid for by Magellan in accordance with Magellan’s policies.

7 Other employment

You must not during your employment with Magellan, without the prior written consent of Magellan
(which consent will not unreasonably be withheld), be engaged or interested in

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any other public or private work or duties, either directly or indirectly, in any capacity with the
exception of voluntary activities for a charitable organisation or project.

8 Magellan Group policies and procedures

Magellan’s policy manual contains all policies and procedures, including employment related
policies and procedures that have been developed by the company over time. You must treat these
policies and procedures as directions from Magellan. Subject to the terms of this document you
must comply with these policies and procedures, but they do not form part of this document.
Magellan may vary any policy or procedure from time to time.

9 Performance appraisal

Your performance will be reviewed on an annual basis in or around July each year and at such other
times as may be determined by Magellan.

Your annual appraisal will be conducted having regard to any applicable performance criteria and
performance targets as developed in consultation with you.

10 Remuneration

10.1 Total remuneration

Your total remuneration package at the date of this agreement is $432,600 per annum. This amount
may be increased from time to time upon review under clause 10.5 below (TR).

Your TR comprises:

	(a)	 	gross salary;
	 
	(b)	 	superannuation contributions;
	 
	(c)	 	the following non-cash benefits:

	 	(i)	 	Company Car

	(d)	 	the amount of any fringe benefits tax and other taxes payable by Magellan in consequence of
the provision of your non-cash benefits.

In the future, your TR may also comprise an annual “at risk” bonus, in the circumstances described
in clause 10.4

With the prior written approval of Magellan, you may from time to time structure your TR in any way
which is lawful, appropriate and does not increase the total cost to Magellan of providing the
package.

10.2 Salary

The salary component of your TR will be paid in monthly installments by electronic deposit to your
nominated bank account.

10.3 Superannuation

Subject to superannuation choice of fund legislation, Magellan will make contributions (which are
included in your TR) to a complying superannuation fund nominated by you and agreed with Magellan.
Contributions will be at such rate as may be agreed from time to

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time, but in any event at a rate not less than the minimum rate required to avoid any charge under
the Superannuation Guarantee (Charge) Act 1992 (Cth).

10.4 Annual At Risk Bonus

Should Magellan introduce a Company Performance Plan under clause 10.7, Magellan may also
progressively introduce into your TR an annual “at risk” component. This clause outlines the method
of introduction and the terms applying to the “at risk” bonus.

At the next salary review after the introduction of a Company Performance Plan, you will be
eligible to be considered for an annual “at risk” individual performance bonus of up to 10 per cent
of TR. At that review, the amount of at risk bonus included in your TR will be determined at a
level such that your gross salary is not reduced. You will be assessed for your entitlement to
your At Risk Bonus based on your performance over each 12 month period to 30 June (Bonus Period).

Your entitlement to payment of the At Risk Bonus will be dependent on you obtaining an overall
competent achievement of performance objectives as assessed by Magellan in your performance review.
If a bonus is to be paid, the payment will be made in the quarter ending on 30 September each
year.

On termination of employment with Magellan, you will be entitled to a pro-rata At Risk Bonus except
where the termination of your employment is due to:

	(a)	 	summary termination by Magellan pursuant to clause 15.1 or termination by Magellan for poor
performance; or
	 
	(b)	 	resignation by you in circumstances where Magellan would otherwise have had a right to
summarily terminate your employment pursuant to clause 15.1 or otherwise terminate your
employment for poor performance.

In calculating any entitlements to a pro rata At Risk Bonus on termination of employment, it will
be assumed that, had you worked the full Bonus Period, you would have received the full amount of
your At Risk Bonus. Your pro rata entitlement will then be calculated proportionate to the
duration of your service over the relevant 12 month Bonus Period.

10.5 TR Review

Your TR will be reviewed in or around July each year on such basis as Magellan in its absolute
discretion may determine. There is no presumption that your TR will be increased upon review.

As at the commencement date of this document Magellan has regard, in conducting TR Reviews for
executives, to comparative positions in the 50th percentile of the market TR for the oil and gas
industry (using Mercer Human Resources methodologies).

10.6 Legislation, industrial awards and agreements

Your TR is deemed to be inclusive of all remuneration to which you are entitled under any
applicable legislation, or industrial award or agreement.

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10.7 Company Performance Plan

In addition to your TR, you will be entitled to participate in any Magellan Company Performance
Plan (as may be in place from time to time) on the terms determined by Magellan.

The Magellan Company Performance Plan may be withdrawn or the terms of the plan varied from time to
time at the absolute discretion of Magellan.

10.8 Set Off

You irrevocably authorise and direct Magellan to withhold or deduct from any part of your TR, an
amount equal to any monies that you owe to Magellan or to a Magellan Group Company.

11 Business expenses

Magellan will reimburse to you in accordance with Magellan policy, reasonable expenses incurred by
you in the performance of your duties.

Magellan will pay subscriptions to such professional organisations of which Magellan determines in
writing are appropriate for you to maintain membership during your employment.

12 Leave

This clause outlines your leave entitlements. Additional types of leave may be available to you
under legislation or under the Magellan policies.

The taking of leave is subject to requirements to submit leave application forms and to
substantiation requirements as specified in legislation and the Magellan policies.

12.1 Annual leave

Your entitlement to annual leave is subject to and in accordance with the Workplace Relations Act
1996 (Cth).

In addition to public holidays that are observed in Brisbane, you will be entitled to paid annual
leave of four weeks for each year of continuous service, which will accrue on a pro-rata basis and
be credited to you each month.

Annual leave will be taken at a time agreed with your Chairman having regard to work requirements
and should be taken so that you do not have an accrued entitlement greater than eight weeks at any
time. Magellan may direct you to take accrued annual leave as permitted by law.

12.2 Personal leave

Your entitlement to personal leave is subject to and in accordance with the Workplace Relations Act
1996 (Cth). Personal leave includes sick leave and carer’s leave.

You will be entitled to paid personal leave of 10 days for each year of continuous service, which
will accrue on a pro-rata basis and be credited to you each month. No payment is made for untaken
personal leave on termination of employment.

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You must notify your Chairman if you are unable to attend work due to a personal illness or injury,
or to care for a member of your immediately family or household. Should your absence extend beyond
two days, or occur on the day before or after a public holiday or day of annual leave, you may be
required to provide a medical certificate or other documentary evidence.

12.3 Long service leave

You will be entitled to long service leave in accordance with the applicable legislation in
Queensland.

Long service leave will be taken at a time agreed with your manager having regard to work
requirements. Magellan may direct you to take accrued long service leave as permitted by law.

13 Intellectual Property and Moral Rights

13.1 Intellectual Property

Magellan will own and be exclusively entitled to the benefit of the Intellectual Property in all
material developed, produced or created by you during the period of your employment by Magellan
which relates in any way to the business of Magellan or a Magellan Group company.

You will promptly take any reasonable action as requested in writing by Magellan necessary to
transfer to Magellan your interests in any such Intellectual Property.

Intellectual Property includes inventions and improvements, patents, trade marks, copyright and
designs whether registered or unregistered, circuit layout rights and know-how and any other form
of intellectual property.

13.2 Moral Rights

You irrevocably consent to Magellan taking any action in relation to any Intellectual Property
developed, produced or created by you in the course of your employment even where such conduct
would, but for this clause, infringe any moral rights which you may have in relation to such
Intellectual Property.

Moral Rights means a right of attribution of authorship, a right not to have authorship falsely
attributed and a right of integrity of authorship.

13.3 Enduring obligations

Your obligations in respect of Intellectual Property and Moral Rights survive termination of your
employment.

14 Confidentiality

You agree and acknowledge that the Magellan Group is concerned to protect its sensitive and
confidential information and its reputation. To ensure protection of these interests, you are
required to execute the Confidentiality Deed at Annexure A to this document.

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15 Termination of employment

15.1 Summary termination

Magellan may at any time immediately terminate your employment by giving written notice to you if
you commit any act of serious misconduct.

For the purposes of this clause, serious misconduct includes but is not limited to:

	(a)	 	failing or refusing to comply with any lawful direction given by Magellan;
	 
	(b)	 	committing any act (whether in the course of the employment or not) which in the reasonable
opinion of Magellan brings you into disrepute or may cause serious damage to the reputation of
yourself, the Magellan Board, or any Magellan Group company, or otherwise affect adversely the
interests of Magellan or any Magellan Group company; and
	 
	(c)	 	being precluded by the provisions of the Corporations Act 2001 (Cth) from taking part in the
management of a corporation, or being disqualified for any reason from holding an office of
Magellan or of a Magellan Group company.

15.2 Termination on notice by Magellan

	(a)	 	Magellan may terminate your employment at any time by giving you three months’ written
notice. Magellan may provide payment in lieu of all or part of this notice period which will
be calculated in accordance with clause 15.7.
	 
	(b)	 	Magellan may terminate your employment by giving one month’s written notice to you, if in the
reasonable opinion of Magellan, you are unable properly to perform your duties due to physical
or mental illness, accident or any other circumstances beyond your control for a total period
of 180 days or more in the preceding 12 month period and have no remaining sick leave
entitlements. Magellan may provide payment in lieu of all or part of this notice period which
will be calculated in accordance with clause 15.7.

15.3 Termination by you

You may terminate your employment at any time by giving one month’s written notice to Magellan.
You shall be entitled to payment in accordance with clause 15.6.

After receiving notice of termination from you, Magellan may elect to make the termination take
effect immediately or part way through the notice period, in which case you will be entitled to
payment calculated on your TR in respect of the period after the date of termination to the end of
the notice period. Your TR will be calculated in accordance with clause 15.7.

15.4 Termination payment

Upon termination of your employment by Magellan under clause 15.2 for any reason other than for
poor performance, you will be entitled to a termination payment, calculated on the basis of your
TR, and comprising one year of your TR together with three weeks for each

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full year of continuous service with Magellan, up to a maximum of 78 weeks, or such other more
generous scale as may be adopted as Magellan policy in the future.

You will be entitled to a termination payment under this Clause if you have been offered, and have
declined, a Suitable Alternative Position.

Your TR will be calculated in accordance with clause 15.7.

	15.5	 	Termination because of significant diminution in remuneration, authority, status, duties, or
responsibilities

Where there is a change in the control or management of Magellan that results in a significant
diminution in your remuneration, authority, status, duties or responsibilities, you may give notice
of termination in accordance with clause 15.3, in which case Magellan will provide you with a
payment equivalent to:

	(a)	 	remuneration in lieu of the amount of notice it would have been required to give you if it
had decided to terminate your employment under clause 15.2(a); and
	 
	(b)	 	a termination payment in accordance with clause 15.4; and
	 
	(c)	 	all of the other benefits it would have been required to pay to you under clause 15.6(a),
15.6(c) and 15.6(e).

15.6 Payment of entitlements upon termination

On termination of your employment, you will be entitled to receive the following payments and
benefits and will not be entitled to any other termination payment or benefit (whether under a
Magellan policy or practice or otherwise):

	(a)	 	the amount of TR payable to you up to and including the date of termination;
	 
	(b)	 	any payment in lieu of notice to which you are entitled under clause 15.2, 15.3 or 15.5(a),
calculated on the basis of your TR;
	 
	(c)	 	pay in lieu of any accrued annual leave and long service leave to which you are entitled up
to and including the date of termination, calculated on the basis of your TR;
	 
	(d)	 	any termination payment to which you are entitled under clause 15.4, calculated on the basis
of your TR;
	 
	(e)	 	any pro-rata At Risk Bonus to which you are entitled under clause10.4.

15.7 Calculation of TR for the purposes of payments on termination

	(a)	 	For the purposes of any pay in lieu of any accrued annual leave and long service leave to
which you are entitled to be paid on termination of employment, your TR will be calculated
based on your full entitlement to your At Risk Bonus.
	 
	(b)	 	For the purposes of any payment in lieu of notice to which you are entitled under clause
15.2, 15.3 or 15.5(a) or any termination payment to which you are entitled under clause 15.4
your TR will be calculated based on your full entitlement to your At Risk Bonus except where
the termination of your employment is due to:

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	 	(i)	 	summary termination by Magellan pursuant to clause 15.1 or termination by
Magellan for poor performance; or
	 
	 	(ii)	 	resignation by you in circumstances where Magellan would have otherwise had
a right to summarily terminate your employment pursuant to clause 15.1 or otherwise
terminate your employment for poor performance.

	(c)	 	In circumstances where your employment with Magellan ends due to:

	 	(i)	 	summary termination by Magellan pursuant to clause 15.1 or termination by
Magellan for poor performance; or
	 
	 	(ii)	 	resignation by you in circumstances where Magellan would have otherwise had
a right to summarily terminate your employment pursuant to clause 15.1 or otherwise
terminate your employment for poor performance,

	 	 	your TR will be calculated as if your entitlement to an At Risk Bonus is nil.

15.8 Payments into Superannuation

For the purposes of this clause 15 that proportion of your TR that is superannuation

contributions will not be paid directly to you but will be paid into your agreed superannuation
fund.

15.9 Set-off

You irrevocably consent and direct Magellan to deduct from any payment due to you on termination
any money advanced to you or owing by you to Magellan or any Magellan Group company.

16 Garden leave

During part or all of any period of notice of termination given by you or by Magellan and any
reasonable period during which Magellan is investigating any disciplinary issue involving you,
Magellan may, at its sole discretion:

	(a)	 	require you to perform only such duties as Magellan may determine or not to perform any
duties at all;
	 
	(b)	 	require you not to have any contact with any employees, customers or business associates of
Magellan or any Magellan Group company other than normal social contact; and/or
	 
	(c)	 	exclude you from all or any part of Magellan’s and any Magellan Group company’s premises,

For the avoidance of doubt, your remuneration will not be withheld or reduced as a result of you
complying with such directions.

17 Return of property

Upon termination of your employment for any reason, or at any time at the request of Magellan, you
must immediately return to Magellan any Magellan property or the property of

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any Magellan Group company in your possession or control. In the case of documents, computer
records and other information and computer software, you must not retain any copies or parts of
them.

18 Restrictions after employment

18.1 No representation

You must not at any time after termination of your employment, represent to any person that you are
in any way connected with or involved in the business of Magellan or any Magellan Group company.

18.2 Restraint

You must not, either during your employment or for a period of 24 months after the employment ends,
solicit or endeavour to solicit or approach any director, officer, senior employee, contractor or
agent of Magellan or a Magellan Group company with the purpose of enticing that person away from
Magellan or the Magellan Group company and procuring the employment or engagement of that person by
any other business.

19 Employment prior to this agreement

19.1 Replacement of previous agreements

This document replaces all previous contracts of employment and other employment arrangements
between you and Magellan.

19.2 Accrued entitlements

Subject to the terms of this document, you retain any entitlements to annual leave, personal leave
and long service leave which were accrued and untaken immediately prior to your employment by
Magellan under the terms and conditions of this document.

19.3 Continuity of Employment

The continuity of your employment with Magellan is not broken by the execution of this document.
For the purpose of calculating your period of continuous service with the Company, your employment
with the Company is deemed to have commenced on 6 October 1997.

19.4 Warranty

You warrant that in performing your duties under this document, you will not be in breach of any
obligation to a third party, including any restrictive covenant or confidentiality obligation.

20 Miscellaneous

20.1 Governing law

This document is governed by and is to be construed in accordance with the laws in force in
Queensland.

The parties irrevocably and unconditionally submit to the non-exclusive jurisdiction of the courts
of Queensland and any courts which have jurisdiction to hear appeals from any of those courts.

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20.2 No waiver

No failure to exercise or any delay in exercising any right, power or remedy under this document
will operate as a waiver. Nor will any single or partial exercise of any right, power or remedy
preclude any other or further exercise of that or any other right, power or remedy.

20.3 Severance

Any provision of this document which is or becomes illegal, void or unenforceable in any
jurisdiction:

	(a)	 	is severable;
	 
	(b)	 	will be ineffective and severable in that jurisdiction to the extent of the illegality,
voidness or unenforceability;
	 
	(c)	 	will not invalidate the remaining provisions of this document; and
	 
	(d)	 	will not affect the validity or enforceability of that provision in any other jurisdiction.

20.4 Variation and entire agreement

The terms and conditions set out in this document may only be varied, replaced or terminated by
agreement in writing signed by yourself and an authorised representative of Magellan.

These terms and conditions will continue to govern your employment with Magellan despite any
changes from time to time to your position, duties and responsibilities, remuneration, working
hours or employment location, unless otherwise agreed in writing.

The terms and conditions set out in this document embody the entire understanding of the parties in
relation to your employment by Magellan. All previous negotiations, representations or agreements
are superseded by this document.

20.5 Independent advice

You acknowledge that you have had the opportunity to obtain independent legal advice in relation to
the terms of this document including the Confidentiality Deed in the annexure to this document.

I have read and accept the terms of employment set out above.

	 	 	 	 	 
	/s/ T.G. Davies

	 	1 November 2007	 	 
	 

Thomas Gwynn Davies

	 	 

Date
	 	 

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	Confidentiality Deed
	 	Annexure A

	1	 	Definitions
	 
	 	 	In this Confidentiality Deed:

	 	(a)	 	Magellan means Magellan Petroleum Australia Limited ACN 009
728 581.
	 
	 	(b)	 	Magellan Group company means a body corporate that is
related to Magellan within the meaning of the Corporations Act 2001
(Cth).
	 
	 	(c)	 	Confidential Information means any information, however
communicated or recorded, relating to Magellan’s business or the
business of a Magellan Group company to which I gain access, whether
before, during or after my employment with Magellan, and includes but
is not limited to:

	 	(i)	 	any trade secret or other commercially
sensitive or confidential information of or possessed by
Magellan and the Magellan Group companies;
	 
	 	(ii)	 	any techniques, methods, computer
software, materials, documents or manuals of Magellan and
the Magellan Group companies used in their businesses;
	 
	 	(iii)	 	technical information or research
concerning products developed or used by Magellan and the
Magellan Group companies and their customers or suppliers;
	 
	 	(iv)	 	inventions, improvements or products
discovered or developed by any employee, officer or
consultant of Magellan and the Magellan Group companies;
	 
	 	(v)	 	any information relating to the business
affairs, accounts, market research, marketing plans, sales
plans, customer lists, prospects, management or finances of
Magellan and the Magellan Group companies;
	 
	 	(vi)	 	the identity of Magellan’s and the
Magellan Group companies’ customers, suppliers, consultants,
distributors, agents, contractors and employees and the
arrangements between Magellan and its customers, suppliers,
consultants, distributors, agents, contractors and employees
and between the Magellan Group companies and their
customers, suppliers, consultants, distributors, agents,
contractors and employees; and
	 
	 	(vii)	 	my terms and conditions of employment
with Magellan.

	2	 	Non-disclosure of Confidential Information
	 
	 	 	I undertake to keep confidential all Confidential Information and
not to disclose any Confidential Information to any person, except:

page 1

 

 

	 	(a)	 	as required by law;
	 
	 	(b)	 	with the prior written consent of the Magellan Board;
	 
	 	(c)	 	to Magellan’s or a Magellan Group Company’s employees,
officers, agents and advisers in the proper performance of my
responsibilities and duties in employment with Magellan; or
	 
	 	(d)	 	in respect of my terms and conditions of employment with
Magellan, in confidence to my legal and financial advisers.

	3	 	Confidential Information in the public domain
	 
	 	 	If the Confidential Information is lawfully within the public domain, then
to the extent that the Confidential Information is public, my obligations
under clause 2 will cease.

	4	 	Use of Confidential Information
	 
	 	 	I will not use any Confidential Information for the benefit of any person
except Magellan or a Magellan Group company.

	5	 	Security of Confidential Information
	 
	 	 	I will maintain proper and secure custody of all Confidential Information
and use my best endeavours to prevent the use or disclosure of any
Confidential Information by or to third parties.
	 
	6	 	Uncertainty
	 
	 	 	If I am uncertain as to whether certain information is Confidential
Information, I will treat that information as Confidential Information
unless I am advised in writing by the Magellan Board to the contrary.

	7	 	Return or destruction of Confidential Information
	 
	 	 	I will:

	 	(a)	 	upon termination of my employment with Magellan, or at any
time at the request of Magellan, immediately deliver to Magellan all
documents or other things in my possession, custody or control on
which any Confidential Information is stored or recorded, whether in
writing or in electronic or other form; or
	 
	 	(b)	 	if requested by Magellan, instead of delivering the
Confidential Information to Magellan, destroy the Confidential
Information (in the case of data stored electronically or in other
form, by erasing it from the media on which it is stored such that it
cannot be recovered or in any way reconstructed or reconstituted) and
certify in writing to Magellan that the Confidential Information,
including all copies, has been destroyed.

page 2

 

 

	8	 	Continuing obligations
	 
	 	 	I agree that my obligations under this Confidentiality Deed will survive
the termination of my employment and will be enforceable at any time at
law or in equity and will continue to the benefit of and be enforceable by
Magellan.

EXECUTED as a deed.

	 	 	 	 	 	 	 	 	 
	Executed by Magellan Petroleum

	 	 	)	 	 	 	 	 
	Australia Limited ACN 009 728 581:

	 	 	)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Norbury Rogers

	 	 	 	 	 	/s/ Robert J. Mollah	 	 
	 

Company Secretary/Director

	 	 	 	 	 	 

Director
	 	 
	 
	 	 	 	 	 	 	 	 
	A.E. de. Norbury Rogers

	 	 	 	 	 	Robert J. Mollah	 	 
	 

Name of Company Secretary/Director

	 	 	 	 	 	 

Name of Director (print)
	 	 
	(print)
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Signed sealed and delivered

	 	 	)	 	 	/s/ T.G. Davies	 	 
	By Thomas Gwynn Davies in the

	 	 	)	 	 	 

	 	 
	presence of:

	 	 	)	 	 	 	 	 

	 	 	 
	/s/ Merv V. Cowie
	 	 
	 

Witness

	 	 
	 
	 	 
	Merv V. Cowie
	 	 
	 

Name of Witness

	 	 
	(print)
	 	 

page 3

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