Document:

Exhibit 10.34

 

 

 

Pershing Limited 

 

and

 

 

Investment Technology Group Limited

 

 

Agreement

relating to the provision of

Back Office Services

 

 

3 July, 1998

 

 

CONTENTS

 

	
  Clause

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Parties

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Recitals

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Information

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Services
  by PL

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Fees

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Clearing
  Agency Bank Account

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Maintenance
  of Records by PL

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Liaison

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Customers

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Duration
  and Termination

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Liability
  and indemnity

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Covenant

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Employees

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Confidentiality

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  Construction
  of Agreement

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  Force
  Majeure

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  Notices

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  Assignment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
  Modification

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  19.

  	
   

  	
  Governing
  Law

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  20.

  	
   

  	
  Arbitration

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  21.

  	
   

  	
  Miscellaneous

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule
  Part I
  - Included Services

  	
   

  
	
   

  	
   Part II - Schedule
  of Settlement and Handling Fees

  	
   

  
					

 

2

 

	
  THIS
  AGREEMENT is made

  
	
   

  
	
  BETWEEN:-

  	
   

  	
   

  
	
   

  
	
  (1)

  	
   

  	
  PERSHING
  LIMITED (“PL”) of 3
  Harbour Exchange,

  
	
   

  	
   

  	
  London
  E14 9GD and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  INVESTMENT
  TECHNOLOGY GROUP LIMITED (the “Correspondent”) of 20 Clanwilliam Terrace, Dublin 2, Ireland

  
	
   

  	
   

  	
   

  
	
  WHEREAS

  
	
   

  	
   

  	
   

  
	
  (A)

  	
   

  	
  PL
  is a member of the Stock Exchange and the SFA able to do business as a
  provider of “back office” clearing agency facilities for members of the Stock
  Exchange and The SFA.

  
	
   

  	
   

  	
   

  
	
  (B)

  	
   

  	
  The
  Correspondent is a member of the Stock Exchange and is regulated by the
  Central Bank of Ireland and for the purposes of conduct of business in the UK
  accepts the authority of the SFA under the Investment Services Directive
  issued by the European Commission.

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Definitions

  
	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  In
  this Agreement (except where the context otherwise requires) the following
  words and expressions shall have the following meanings respectively:-

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Business
  Day”

  	
  a
  day when the Stock Exchange is open for dealings

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “the
  Commencement Date”

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Customer”

  	
  any
  person by whom the Correspondent is instructed in connection with dealings in
  securities and other connected matters relevant to this Agreement

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “the
  Included Services”

  	
  shall
  have the meaning ascribed to that expression by Clause 3.1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Relevant
  Quarter”

  	
  A
  period of three calendar months ending on 31st March, 30th June,
 30th September and 31st December in each year during the
  continuance of this Agreement

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “the
  Rules”

  	
  the
  Rules and Regulations for the time being of the Stock Exchange, the
  Rules of The SFA, the Rules and Regulations of the Securities and
  Investments Board, and/or such other rules, regulations or laws of any
  regulatory body including the Rules of The Central Bank of Ireland or
  jurisdiction as may have application to the provision of the Included
  Services and the terms of this Agreement.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “the
  Stock Exchange”

  	
  The
  London Stock Exchange

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “SFA”

  	
  The
  Securities & Futures Authority Limited, or any body which succeeds
  or replaces the same

  
						

 

3

 

	
   

  	
   

  	
  “Retail
  Price Index”

  	
  The
  commonly recognised index number of a series of Prices paid by consumers for
  the cost to households of the goods they normally buy.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Review
  Date”

  	
  means
  the first anniversary of the Commencement Date and each subsequent
  anniversary thereof

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Prior
  Transaction”

  	
  means
  any transaction the subject of this Agreement and effected by or on behalf of
  the Correspondent prior to the termination of this Agreement

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.2

  	
  The
  headings in this Agreement are inserted for convenience only and shall be
  ignored in construing the provisions hereof. References herein to Clauses are
  to Clauses of this Agreement and, unless the context otherwise requires, in
  this Agreement the singular shall include the plural and vice versa and words
  importing the masculine gender shall be deemed to include the neuter and
  feminine gender and vice versa and the word “person” shall include any body
  corporate or otherwise.

  
	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
  Information

  
	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  Prior
  to the Commencement Date the Correspondent will provide PL with all such
  information, co-operation, assistance, basic data and documents as PL shall
  reasonably request in order to enable PL to be ready to commence the
  provision of the Included Services on the Commencement Date and such request
  must be made in a timely manner.

  
	
   

  	
   

  	
   

  
	
   

  	
  2.2

  	
  During
  the continuance of this Agreement and in consultation with PL, the
  Correspondent will provide PL with all such information, co-operation,
  assistance, basic data and documents, including (without limitation) all
  appropriate details of Customers’ funds and securities received directly by
  the Correspondent as (in each case) PL shall reasonably request in order to
  permit PL to discharge the Included Services efficiently, and shall use all
  reasonable endeavours to ensure that all terminals or other computer hardware
  situated at the Correspondent’s premises and connected to the PL computer
  system shall be maintained in a proper working order.

  

 

4

 

	
   

  	
  2.3

  	
  Such
  information, data and documents must be compatible with the reasonable
  requirements of PL’s computerised book-keeping system, and PL shall be
  entitled to rely on such information and shall not be responsible for the
  consequences of any failure by the Correspondent to supply such information
  accurately, and in the required format, unless any such failure is caused by PL’s
  fraudulent, negligent or wilful acts or omissions. PL may from time to time
  notify the Correspondent of changes to the requirements of its computerised
  book-keeping system in order to enable PL to perform more effectively the
  provision of the Included Services. Any such changes shall take effect after
  the receipt by the Correspondent of the relevant notification (or such other
  time as PL and the Correspondent shall agree in writing) from PL, which
  notification shall be given sufficiently in advance to allow the
  Correspondent to make such modifications to said information, data, and
  documents as are necessary to ensure continued compatibility with the
  requirements of PL’s computerised book-keeping system.

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Services
  by PL  

  
	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  With
  effect from the Commencement Date and subject to the terms and conditions of
  this Agreement, PL will provide, acting solely as agent for the
  Correspondent, computer and back-office facilities to settle agency and
  principal accounts with respect to UK equity securities transactions executed
  by the Correspondent (as well as any other investment transaction agreed to
  by the parties hereto); and PL shall also provide associated administrative
  functions related thereto as agreed by the parties, including those services
  itemised in the Schedule.

  
	
   

  	
   

  	
   

  
	
   

  	
  3.2

  	
  Without
  prejudice to Clause 4.1.2 and for the avoidance of doubt, unless otherwise
  expressly agreed in writing, PL shall not be responsible for providing any of
  the following services or the costs and expenses related thereto (and the
  Correspondent undertakes to reimburse PL on demand if PL shall properly incur
  any such costs or expenses in the performance of any of said services at the
  Correspondent’s request):-

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.2.1

  	
  payment
  of CREST and CREST network charges;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.2.2

  	
  payment
  of charges (if any) by the Stock Exchange for general services (known as
  Exchange Charges);

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.2.3

  	
  preparation
  of the Correspondent’s financial statements or any analysis thereof;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.2.4

  	
  preparation
  and/or issue of cheques or other remittances in payment of the
  Correspondent’s expenses, other than expenses incurred by PL on behalf of the
  Correspondent in connection with the provision of the Included Services;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.2.5

  	
  payment
  of commissions to the Correspondent’s salesmen or agents; 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.2.6

  	
  verification
  of address changes to Customers;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.2.7

  	
  the
  cost of insurances effected by the Correspondent;

  

 

5

 

	
   

  	
   

  	
  3.2.8

  	
  preparation
  of the Correspondent’s payroll records and administration of personnel;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.2.9

  	
  cost
  of stamp duty;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3.2.10

  	
  other
  duties, obligations and responsibilities of the Correspondent or the
  Customer.

  
	
   

  	
   

  	
   

  
	
   

  	
  3.3

  	
  So
  long as this Agreement has not been terminated and PL is capable of providing
  the Included Services which for the avoidance of doubt relate only to UK
  equity securities transactions effected by the Correspondent, the
  Correspondent shall not accept services similar to any of the Included
  Services from any other person with respect to securities transactions
  itemised in the Schedule, except as may be agreed between the parties.

  
	
   

  	
   

  	
   

  
	
   

  	
  3.4

  	
  PL’s
  services hereunder shall not be exclusive to the Correspondent and it shall
  be free to provide services similar to the Included Services or such other
  services as it shall from time to time think fit to any other person and
  (without prejudice to Clause 13) nothing herein shall be deemed to restrict
  in any way the right of PL to compete with the Correspondent in any or all
  aspects of the Correspondent’s business. PL will not use under any
  circumstances the customer lists of the Correspondent other than as shall be
  necessary to carry out its business under this Agreement.

  
	
   

  	
   

  	
   

  
	
   

  	
  3.5

  	
  PL
  shall be entitled from time to time at its discretion to sub-contract to any
  responsible provider of data processing services or other relevant services
  the provision to the Correspondent of all or any part of the Included
  Services. In such case PL shall continue to be responsible to the
  Correspondent for such sub-contracted services. PL shall correct any failure
  of such service provided in the same manner and the same time as if the
  service had been performed (or should have been performed) by PL hereunder.
  [PL will make best efforts to inform the Correspondent concerning the
  sub-contracting of any services at the time such sub-contracting occurs].

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Fees

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  Subject
  to Clause 4.4, PL shall be entitled to invoice the Correspondent and the
  Correspondent shall pay to PL twice a month on PL’s accounting dates:-

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4.1.1

  	
  the
  amount due for fees in respect of the Included Services carried out during
  such period and fees otherwise incurred during such period, such fees being
  calculated in accordance with Clause 4.3;

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  4.1.2

  	
  the
  amount of any of the following items reasonably and properly incurred by PL
  during such period on behalf of or for the benefit of, or which are otherwise
  reasonably attributable to, the Correspondent in the provision by PL of the
  Included Services:-

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  4.1.2.1

  	
  charges
  for bank and overseas handling services incurred by PL in connection with the
  provision of services hereunder;

  
							

 

6

 

	
   

  	
   

  	
   

  	
  4.1.2.2
  

  	
  out
  of pocket costs necessarily incurred by PL and relevant charges attributable
  to the provision by PL at the request of the Correspondent of computer
  facilities additional to the provision of the Included Services (such charges
  to be agreed in between PL and the Correspondent prior to such additional
  computer facilities being provided);

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  4.1.2.3

  	
  any
  charges imposed by the Stock Exchange not invoiced directly to the
  Correspondent and not arising as a result of PL’s membership of the Stock
  Exchange

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  4.1.2.4
  

  	
  reasonable
  costs of printing contract notes and statements using the Correspondent’s
  logostyle or format and any other personalised stationery or any other
  reasonably associated printing costs

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  4.1.2.5

  	
  any
  expenses necessarily borne by PL in discharging reasonable liabilities or
  obligations attributed to the Correspondent pursuant to Clause 3.2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  4.1.2.6
  

  	
  costs
  of international telephone calls, telex and facsimile transmissions on behalf
  of the Correspondent not falling within the Included Services.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  4.1.2
  7

  	
  Cost
  of microfiche and other third party fees.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  4.1.2.8

  	
  the
  installation, purchase or rental, and the maintenance of any communication
  devices and/or printer at the premises of the Correspondent or its agents in
  respect of the Included Services connected to PL’s computer system and any
  other relevant hardware at said premises in respect of the Included
  Services,.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  4.1.2.9

  	
  the
  cost of Pricing Service Provider fees attributable to the Correspondent

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.2

  	
  The
  fees and charges payable under the terms of Clauses 4.1.1 and 4.1.2 hereof
  shall be payable in accordance with our invoice accounting dates.

  
	
   

  	
   

  	
   

  
	
   

  	
  4.3

  	
  The
  fees payable pursuant to Clause 4.1 shall be fixed according to the scale set
  out in Part II of the Schedule provided that the fees shall be subject
  to review and amendment by the parties on each Review Date and remain
  effective until the next Review Date. For this purpose PL shall give notice
  of proposed modification to the fee structure.

  
	
   

  	
   

  	
   

  
	
   

  	
  4.4

  	
  All
  amounts referred to in this Clause 4 shall be deemed to be exclusive of Value
  Added Tax (if any) chargeable thereon.

  
	
   

  	
   

  	
   

  
	
   

  	
  4.5

  	
  The
  Correspondent may request PL to carry out additional services not mentioned
  in the Included Services. Any cost charged by PL to the Correspondent for PL
  carrying out those services will be mutually agreed between PL and the
  Correspondent prior to PL providing the additional services.

  

 

7

 

	
   

  	
  4.6

  	
  In
  the event that the fees paid or payable by the Correspondent pursuant to Clause
  4.2 in respect of each calendar month is less than £6000.00 then the
  Correspondent shall pay to PL an additional fee equal to the difference
  between the amount of fees paid or payable as aforesaid and the sum of
  £6000.00. This fee may be increased at each Review Date. For this purpose PL
  shall give written notice to the Correspondent, of any increase, prior to the
  Review Date. For the first six months of the contract this monthly minimum
  fee will be replaced by a minimum composite charge of £36,000.00 which will
  be invoiced in arrears.

  
	
   

  	
   

  	
   

  
	
   

  	
  4.7

  	
  The
  fees payable under Clause 4.6 in respect of each calendar month shall be paid
  as per Clause 4.2.

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Clearing Agency Bank Account

  
	
   

  	
   

  	
   

  
	
   

  	
  As
  soon as practicable after the date thereof, the Correspondent shall open or
  will have opened bank accounts at such bank or banks as shall be approved by
  PL, designated in the Correspondent’s name, and shall appoint such personnel of PL as PL shall nominate as
  authorised signatories to such bank accounts. PL shall in all financial
  transactions relating to the provision of the included Services use such bank
  accounts. Subject as hereinafter provided, the Correspondent shall be
  responsible for ensuring that such bank accounts are sufficiently funded and
  that these accounts are correctly given trust status if so required under the
  Rules. PL shall not be liable
  for any loss or damage suffered by the Correspondent by virtue of any such
  bank accounts being overdrawn by reason of the provision of the Included
  Services, except as such overdrafts are caused by any dishonest, fraudulent
  or criminal acts on the part of PL,
  its employees, or its agents. PL shall indemnify the Correspondent for
  any losses, liabilities, damages, costs, and expenses resulting from the
  dishonest, fraudulent or criminal acts of PL, its employees, or its agents
  relating to the use of such bank accounts. PL shall keep the Correspondent
  informed of the balances and overdrafts (if any) of cash bank accounts and
  shall promptly notify the Correspondent if it becomes aware that any such
  bank account is, or is likely to become, overdrawn, irrespective of any
  overdraft facilities available in respect thereof.

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Maintenance of Records by PL and Compliance

  
	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  PL will provide to the Correspondent all such information as the
  Correspondent may reasonably require to enable it to maintain records in
  accordance with the Rules which information will include a full record of all transactions
  executed or cleared through it under the terms hereof and shall provide the
  Correspondent with access to such information at all reasonable times and,
  where required, reasonable extracts from its records. Any added cost incurred
  by PL associated with these extracts will be paid by the Correspondent
  subject to prior agreement between PL and the Correspondent.

  
	
   

  	
   

  	
   

  
	
   

  	
  6.2

  	
  Unless
  required by the Stock Exchange
  or The SFA to do so, or unless the
  Correspondent undertakes to
  pay reasonable charges for PL’s doing so, PL shall not be bound to make any
  investigation into the facts surrounding any dealings which the Correspondent
  may have with its Customers or other persons, nor shall PL be under any
  responsibility for compliance by the Correspondent with any laws or
  regulations which may be applicable to the Correspondent other than the
  Rules insofar as they relate to the provision of the Included Services
  and the records to be created by PL hereunder. In the event said
  investigation is necessitated by the proven negligent or wilful acts or
  omissions or fraudulent acts on the part of PL, its employees, or its agents, the Correspondent shall not be
  responsible for paying for the costs of the investigation.

  
				

 

8

 

7.                             Liaison

 

7.1        Throughout the period of this Agreement, the Correspondent will make
available such suitable personnel during normal business hours (including upon
the reasonable request of PL, a senior officer of the Correspondent) as shall
be reasonably necessary to perform the obligations of the Correspondent under
Clause 2 and to monitor and make available information relevant to all
documentation prepared by PL for purposes of processing relevant transactions
hereunder and dealing with any queries arising therefrom, and shall also make
available such other facilities of liaison, co-ordination and co-operation as
shall reasonably be necessary to facilitate the efficient carrying out of PL’s
obligations hereunder.

 

7.2        PL shall procure that one or more of its senior officers is available
upon reasonable request of the Correspondent for purposes of discussing with
the Correspondent any aspect of the day-to-day operation of this Agreement or
resolving any queries arising thereunder, and in particular shall provide such
suitable personnel (i) during normal business hours and (ii) outside
normal business hours in case of urgency, as shall be reasonably necessary to
provide the liaison necessary for the Correspondent to perform its obligations
under Clause 7.1

 

7.3        The Correspondent and PL each agree to notify the other of any written
complaint received from a customer which relates to any function that the other
has undertaken to perform and the parties mutually undertake to investigate
such complaint and, if reasonably possible, to amend their respective
procedures to avoid the future occurrence of similar complaints.

 

8.                             Customers

 

Every customer shall remain the Customer of the Correspondent, and the
Correspondent shall be responsible for obtaining and conveying to PL all of the
essential facts relevant to every Customer for the purposes of this Agreement,
every transaction effected on behalf of a Customer or otherwise relevant for
the purposes of this Agreement, and every person holding power-of-attorney on behalf
of a Customer and entitled to conduct business relevant to this Agreement in
the name of the Customer. Without prejudice to the obligations of PL in the
performance of the Included Services, the Correspondent shall also be
responsible for the conduct of its business with the Customer and the
supervision thereof, including but not limited to, assessing the suitability of
a transaction for a Customer when required under the Rules, the authenticity of
all orders, signatures and endorsements, the frequency of trading by a Customer
and the genuineness of all signatures, certificates and papers, and reviewing
the accounts of Customers for, among other things, manipulative practice and
insider trading, and compliance with the Rules and such other laws, rules and
regulations to which the Correspondent and the Customer are  subject and
furthermore, the Correspondent undertakes to diligently supervise compliance
through the use of a compliance manual or other recognised procedures.

 

9

 

9.                             Duration and Termination

 

9.1        This Agreement shall continue for one year until terminated (by written
notice) as hereinafter provided

 

9.2        This Agreement may be terminated by PL without cause upon not less than
One Hundred and Twenty (120) days written notice to the Correspondent.

 

9.3        This agreement may be terminated by the Correspondent without cause by
not less than One Hundred and Twenty (120) days written notice to PL.

 

9.4        Either party may terminate this Agreement forthwith by notice in
writing to the other:-

 

9.4.1      in the event that the other shall cease to be a member of the Stock
Exchange or regulated by the appropriate regulator for the purpose of this
agreement, The SFA, or it PL is suspended or terminated as a CREST(or its
successor) user;

 

9.4.2      in the event that such other party shall have committed a material
breach of this Agreement which in the case of a breach capable of remedy shall
not have been remedied within ten business days of the breaching party being
given notice by the innocent party identifying the breach and requiring its
remedy;

 

9.4.3      in the event that such other party enters into liquidation (other than
for the purposes of effecting a financial restructuring or amalgamation)
whether compulsorily or voluntarily, or compounds with or convenes a meeting of
its creditors or becomes subject to a voluntary arrangement under Part 1
of the Insolvency Act 1986, or has an administrator, a receiver or
administrative receiver appointed over all or any part of its assets, or takes
or suffers any similar action in consequence of debt, or in the event that a
petition is presented for an administrative order in respect of such other
party, or such other party ceases for any reason to carry on business.

 

9.5        Termination of this Agreement however caused shall be without prejudice
to any accrued rights, liabilities, or responsibilities of the parties hereto
with respect to any Prior Transactions, whether or not claims relating to such
Prior Transactions shall have been made before or after such termination

 

9.6        The Correspondent will pay to PL all reasonable costs incurred by PL on
transferring all account, securities and client history to another provider of
these services as designated by the Correspondent.

 

9.7        In the event of the termination of this Agreement for any reason, PL
will settle, in accordance with the Rules and otherwise in accordance with
the terms of this Agreement, any Prior Transactions, and will otherwise
continue to perform its obligations under this Agreement in respect of all and
any Prior Transactions as if this Agreement continued in full force and effect
in relation to such Prior Transactions. The Correspondent will continue to
perform the obligations imposed upon it under the terms of this Agreement in
respect of all and any Prior Transactions.

 

9.8        Subject to Clause 9.7, from notice of termination of this Agreement PL
shall at the request of the Correspondent deliver up to the Correspondent in a
format

 

10

 

reasonably
acceptable to the Correspondent all accounts, records, documents, data,
customer lists and other information maintained by PL on behalf of the
Correspondent pursuant to this Agreement but excluding for avoidance of doubt
all computer programs used by PL to process data; and PL shall forthwith
provide all necessary or pertinent details to the Correspondent concerning any
pending or partly completed transactions, including Prior Transactions.

 

9.9         Subject to Clause 9.7 and the proviso to this Clause, upon termination
of this Agreement, PL shall immediately cease to operate the bank account(s) referred
to in Clause 5 and shall forthwith account to the Correspondent for any funds
held by it on behalf of the Correspondent or its Customers, whether or not such
funds are at that time located in the bank account and notwithstanding any
disputed balances; provided that PL shall be entitled to operate the bank
account to the extent necessary to satisfy all of the Correspondent’s
outstanding settlement obligations.

 

10.                          Liability and Indemnity

 

10.1      Subject to Clause 10.2, the Correspondent hereby agrees to indemnify,
defend and hold harmless PL from and against all claims, demands, proceedings,
suits and actions made or brought against PL and all liabilities, losses, damages, expenses, legal fees and
costs suffered by PL and arising out of one or more of the following, except to
the extent that such claims, demands, proceedings, suits, actions, liabilities,
losses, damages, expenses, legal fees, and costs are due to the dishonest,
fraudulent, negligent or criminal acts of PL or its officers, partners,
employees and agents:-

 

10.1.1   all claims or disputes between the
Correspondent and its Customers with respect to any matters referred to herein,
it being understood that the Correspondent warrants the validity of Customers’
orders in the form that such orders are transmitted to PL by the Correspondent;

 

10.1.2   failure of the Correspondent or any Customer to make payment when due
for securities purchased or to deliver when due for securities sold for the
account of the Correspondent or a Customer;

 

10.1.3   the breach by the Correspondent of any warranty given by it under this
Agreement or the failure by it to properly perform its duties, obligations, and
responsibilities hereunder;

 

11

 

10.1.4   the failure of any Customer to fulfil his obligations to the
Correspondent

(whether or not such failure is in the Correspondent’s control); or

 

10.1.5   any dishonest, fraudulent, negligent or criminal act or omission on the
part of the Correspondent’s officers, partners, employees, agents or Customers.

 

10.2      Save as hereinafter provided, PL hereby agrees to indemnify, defend,
and hold harmless the Correspondent from and against all claims, demands,
proceedings, suits and actions made or brought against the Correspondent and
any liability, loss, damage, claims, costs, interest, or expenses of whatsoever
nature suffered or incurred by the Correspondent arising out of:-

 

10.2.1   any dishonest, fraudulent, or criminal act on the part of PL, its
officers, partners, employees, agents, other Correspondents or any
subcontractors; or

 

10.2.2   any breach by PL of any warranty, covenant or undertaking given by it
under this Agreement:-

 

(a)             PL’s
liability to the Correspondent hereunder shall only be to the extent expressly
set forth herein and (for the avoidance of doubt) under no circumstances shall
PL be responsible for indirect or consequential loss or damage by the
Correspondent or any Customer.

 

11.                          Representations &
Warranties

 

PL
hereby represents, warrants, and covenants that it is, and will remain, duly
and validly incorporated, validly existing, and in good standing as a limited
corporation under the laws of the United Kingdom, with full and proper power
and authority to enter into and perform this Agreement. PL further covenants
that the officer signing this Agreement on its behalf is properly authorised to
execute this Agreement, and that this Agreement constitutes a valid and binding
contract between PL and Correspondent enforceable in accordance with its terms.

 

11.1      PL hereby covenants and undertakes that it will provide the Included
Services pursuant to this Agreement in compliance with the Rules and all
other applicable laws and regulations.

 

11.2      PL hereby warrants that it is properly registered under the Data
Protection Act 1984 and shall maintain such registration throughout the terms
of this Agreement, and that it is thereby authorised to provide all services
contemplated by this Agreement and will operate in accordance with the
requirements of the Data Protection Act 1984 and within the terms of the
registered entries.

 

12

 

12.                          Employees

 

Without
the prior written consent of the other party, neither party will during the
period of this Agreement employ or attempt to employ any person who is then
employed by the other party. Nor shall either party after the termination of
this Agreement employ or attempt to employ, for a period of one year following
termination of this Agreement, any person who was employed by the other party
at any time during the twelve-month period immediately preceding the
termination of this Agreement.

 

13.                          Confidentiality

 

13.1      PL and the Correspondent hereby agree that they will not and they will
procure, that their employees and agents will not disclose to any person or
otherwise use for advantage any of the financial or trading or other
confidential information (including customer lists) received or otherwise made
known to it regarding the Correspondent, Customers or PL (as the case may be) or either of their operations as a result,
directly or indirectly, of this Agreement. Nothing herein contained, however,
shall prevent the Correspondent from disclosing to any Customer any financial
or trading or other confidential information relating to such Customer’s
account or any transaction effected on behalf of such Customer.

 

13.2      The parties mutually agree not to disclose
the terms of this Agreement to any outside parties other than governmental
regulatory bodies with appropriate jurisdiction, except that disclosure may be
made as required to authorised employees or, professional advisers of such
party on a need-to-know basis only. Any other publication or disclosure of the terms of this
agreement may be made only with the prior written consent of the other party.

 

13.3      Except for advertising
published in any newspaper, magazine, or similar media, or broadcast over
television or radio, PL agrees that neither it nor any Associate nor any
affiliate will knowingly solicit business from any Customers who have not
heretofore been customers of PL.

 

14.                          Construction of Agreement

 

Neither
this Agreement nor the performance of the services hereunder shall be
considered to create a joint venture or partnership between PL and the
Correspondent or between the Correspondent and other persons for whom PL may perform the same or similar service.
Neither PL nor the Correspondent
will utilise the name of the other in any way without the other’s consent, and
under no circumstances shall either party employ the other’s name in such a
manner as to create the impression that the relationship created or intended
between them is anything other than that of Correspondent and clearing agent.

 

13

 

15.                          Force Majeure

 

15.1      Save as expressly provided herein, neither party shall be liable to the
other for any default where said default is due to (i) the outbreak of war
or hostilities or any other international calamity or political crisis, or (ii) earthquake,
hurricane, typhoon, flood or other natural disaster, or (iii) the
suspension of trading on a securities or investment exchange, or the fixing of
minimum or maximum prices for trading on a securities or investment exchange,
regulatory ban on the core activities of either party (unless either party has
caused that ban) or (iv) a banking moratorium having been declared by
appropriate regulatory authorities, and the effect of such event(s) as
mentioned above are such that the defaulting party is not in a position to take
any reasonable action to cure the default; provided, however, that the party
seeking to rely on this provision shall promptly give written notice to the
other party containing full particulars of the event(s) which the
defaulting party claims has put the due performance of its obligations under
this Agreement beyond its control. The provisions of this Clause 15.1 shall no
longer be applicable when the event(s) causing the aforementioned default
has ceased to have effect upon the performance of this Agreement.

 

15.2      If any act or matter relied upon by either party for the purpose of
Clause 15.1 shall continue for more than ten business days, the other party
shall be entitled to terminate this Agreement by not less than thirty days’
notice in writing expiring at the close of business on the last day of a
Dealing Period (provided that no such notice may be given after the relevant
act or matter relied upon has ceased to have effect on the performance of this
Agreement) and upon termination hereunder the provisions of Clauses 9.7 to 9.9
(inclusive) shall apply.

 

16.                          Notices

 

16.1      Any notice or invoice required to be given under this Agreement shall
be in writing and may be served personally, by registered mail, or by sending
the same through the post by first class prepaid post.

 

16.2      Any such notice or invoice shall be addressed to the registered office
of such party or its principal place of business, or such other address as the
party shall have given for service of notices or invoices upon it.

 

16.3      Any such notice or invoice sent by registered mail, messenger or first
class prepaid post shall be deemed served on the second business day following
its posting.

 

17.                           Successors Assignments

 

This
Agreement shall be binding upon and inure to the benefit of the respective
successors of the parties. Except as otherwise provided herein, neither party
may assign any of its rights and obligations hereunder without the prior written consent of the  other party, which consent shall
not be unreasonably withheld.

 

14

 

18.                          Modification

 

Any
modification, amendment, or alteration of this Agreement shall take effect upon
(and only upon) being agreed to in writing by both parties.

 

19.                          Governing Law

 

This
Agreement shall be governed by and construed in accordance with English Law and
for the purposes hereof each of the parties hereto hereby submits to the exclusive jurisdiction of the English Courts.

 

20.                          Arbitration

 

Any
dispute between the parties hereto which cannot be settled to the mutual
satisfaction of the parties will be referred to arbitration in accordance with
the Rules of the Stock Exchange.

 

21.                          Miscellaneous

 

21.1      The parties shall supply each other with
copies of their respective audited financial statements on an annual basis
within one month of the same being approved and signed.

 

21.2      If the Correspondent or any of its directors
or employees are the subject of or become the subject of any disciplinary
proceeding or action of The SFA or the Stock Exchange, the Correspondent must
inform PL of such action or proceeding and must keep PL informed of any
disciplinary measures taken against the Correspondent or its directors or
employees.

 

Likewise,
if PL, any of its directors, or any of its officers or employees or agents
performing services for the Correspondent pursuant to this Agreement are the
subject of or become the subject
of any disciplinary action of The SFA or the Stock Exchange, PL must inform the
Correspondent of such action or proceeding and must keep the Correspondent
informed of any disciplinary measures taken against PL or its directors,
officers, employees or agents.

 

21.3      The Correspondent must inform PL if it’s
capital falls below the capital requirement as required by the Rules and
continue to inform PL of any proceeding with the SFA or The Central Bank of
Ireland.

 

21.4      Each provision and agreement herein or in the
Schedules attached hereto shall be treated as separate and independent from any
other provision or agreement herein or in the Schedules attached hereto and
shall be enforceable notwithstanding the unenforceability of any such other
provision or agreement.

 

21.5      The parties acknowledge that they are subject to the Rules, and  if
any conflict should arise between the Rules and the provisions of this
Agreement then the Rules shall prevail.

 

15

 

IN WITNESS whereof this Agreement has been entered into
the day and year first before written.

 

For and on behalf of Investment Technology Group Limited

 

 

	
  Alasdair Haynes

  	
   

  	
  6th July’ 98

  	
   

  
	
  Authorised Signature

  	
   

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  For and on behalf of Pershing Limited

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Trevor Jones

  	
   

  	
  7th July 1998

  	
   

  
	
  Authorised Signature

  	
   

  	
  Date

  	
   

  

 

16

 

THE SCHEDULE

 

PART 1

 

(included Services)

 

	
  (i)

  	
   

  	
  the
  processing of bargains transmitted to PL by the Correspondent;

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  the clearance and settlement of sales or purchases of securities by
  causing securities delivered to or held by or (where permitted by the Rules)
  on behalf of PL pursuant to a sale to be delivered to or at the direction of
  the purchaser thereof against payment of the purchase price and receiving
  securities purchased from the vendor thereof and, if and to the extent that
  funds are on hand for a Customer, paying the purchase price of those
  securities;

  
	
   

  	
   

  	
   

  
	
  (iii)

  	
   

  	
  the holding of cheques, drafts, negotiable instruments and sums
  collected or received for a Customer for payment subject to the terms of this
  Agreement;

  
	
   

  	
   

  	
   

  
	
  (iv)

  	
   

  	
  in the case of transactions affected on behalf of a Customer the
  collection for the Correspondent of fees, commissions and charges as set by
  the Correspondent and which are payable by the Customer;

  
	
   

  	
   

  	
   

  
	
  (v)

  	
   

  	
  the issue of confirmations and contract notes in the Correspondent’s
  name in respect of orders for the purchase and sale of securities settled by
  PL for the Correspondent and the production thereof within one business day
  of the relevant transaction or (at the Correspondent’s option) the
  transmission from PL’s premises of relevant information to facilitate the
  mailing thereof by the Correspondent within one business day of the relevant
  transaction;

  
	
   

  	
   

  	
   

  
	
  (vi)

  	
   

  	
  the preparation of summary statements of account in the
  Correspondent’s name in respect of all accounts maintained by PL for the
  Correspondent and any Customers in respect of each Dealing Period and the
  mailing or delivery thereof on the next business day following the end of the
  relevant Dealing Period or (at the Correspondent’s option) the transmission
  from PL’s computer facilities to a terminal situated at the Correspondent’s
  premises of relevant information to facilitate the mailing thereof by the
  Correspondent on the next business day following the end of the Dealing
  Period;

  
	
   

  	
   

  	
   

  
	
  (vii)

  	
   

  	
  the receipt and delivery of securities (responsibility therefore
  becoming PL’s at such a time as the securities have been physically received
  by PL or its agents or representative authorised for this purpose);

  
	
   

  	
   

  	
   

  
	
  (viii)

  	
   

  	
  nominee
  and safe custody facilities;

  
	
   

  	
   

  	
   

  
	
  (ix)

  	
   

  	
  notification of entitlements in relation to the acceptance,
  rejection, renunciation splitting or other dealing with offers to purchase,
  subscribe, exchange, sell, convert or redeem securities and the exercise of
  rights to vote or any other rights incidental to the ownership of securities
  and following such notification to act in accordance with the instructions of
  the Correspondent in respect of such matters;

  
	
   

  	
   

  	
   

  
	
  (x)

  	
   

  	
  on the instructions of the Correspondent, the release and delivery to
  Customers, at the relevant address contained in PL’s records, of securities
  in respect of orders to purchase executed or settled by PL;

  
	
   

  	
   

  	
   

  
	
  (xi)

  	
   

  	
  the delivery of returns relating to transactions to The Stock
  Exchange or any other regulatory body established by or by virtue of statute;

  

 

17

 

	
  (xii)

  	
   

  	
  the production of the necessary records required to meet the
  settlement obligations imposed by the Rules;

  
	
   

  	
   

  	
   

  
	
  (xiii)

  	
   

  	
  the maintenance in easily retrievable form or such other form (including
  machine readable form) as permitted by the Rules of all records required
  by the Rules and the creation of the records under the Included Services
  to permit the Correspondent to maintain all required records.

  
	
   

  	
   

  	
   

  
	
  (xiv)

  	
   

  	
  the handling of transactions in all currencies identified by the
  Correspondent and if agreed between PL and the Correspondent the dealing in
  forward currency contracts for the Correspondent;

  
	
   

  	
   

  	
   

  
	
  (xv)

  	
   

  	
  the provision to the Correspondent of all necessary information from
  time to time required by it to make reports required by The Stock Exchange;

  
	
   

  	
   

  	
   

  
	
  (xvi)

  	
   

  	
  the investment of funds belonging to the Correspondent and under the
  control of PL and not required to meet the obligations of the Correspondent
  or PL on behalf of the Correspondent (sometimes called “Free Funds’) on a
  daily basis at the direction of the Correspondent in a security of the
  Correspondent’s choice or in the alternative, transmission of such funds to
  an account designated by the Correspondent;

  
	
   

  	
   

  	
   

  
	
  (xvii)

  	
   

  	
  the training of the Correspondent’s personnel (at the Correspondent’s
  premises or PL’s premises as PL shall deem appropriate) to enable the
  Correspondent’s personnel to carry out relevant transactions using PL’s
  computer system and procedures for the conduct of business pursuant to this
  Agreement such training to be provided at such times and from time to time as
  shall be necessary having regard to the value of business conducted by PL on
  behalf of the Correspondent; and

  
	
   

  	
   

  	
   

  
	
  (xviii)

  	
   

  	
  (for the avoidance of doubt) the employment of such staff as shall be
  reasonably necessary for the purposes of (i) to (xvi) above);

  
	
   

  	
   

  	
   

  
	
  (xix)

  	
   

  	
  prompt notification of any irregularities or failure in performance
  on the part of PL, any Customer, the Correspondent, any counterparty or other
  person.

  

 

18Exhibit 10.35

 

INDEX

 

	
  CLAUSE

  	
   

  	
  PAGE

  
	
  1

  	
   

  	
  Interpretation

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Appointment

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Retirement

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Duties

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  Exclusivity
  of Service

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  Place
  of Work

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  No
  obligation to provide work

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  Salary

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  Expenses

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  Pension,
  Health Insurance and other benefits

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  Annual
  Leave

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  Incapacity

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  Discipline

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  Termination

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  Reconstruction
  or Amalgamation

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  Executives
  Obligations on Termination

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  Protective
  Covenants

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
  Binding
  on Successors

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19

  	
   

  	
  Waiver,
  Release and Remedies

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20

  	
   

  	
  Counterparts

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  21
  

  	
   

  	
  Notices
  

  	
   

  	
  13 

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
  Variation

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  23

  	
   

  	
  Severability

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  24

  	
   

  	
  Governing
  Law

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25

  	
   

  	
  Independent
  Legal Advice

  	
   

  	
  13

  

 

1

 

THIS AGREEMENT,
is made as of 17 November 1998 BETWEEN

 

(1)                               INVESTMENT TECHNOLOGY GROUP
EUROPE LIMITED a company
incorporated under the laws of lreland having its registered office at Dublin
Exchange Facility, IFSC, 2nd  Floor, Custom House Docks, Dublin 1,
Ireland (the “Company”)

 

AND

 

(2)                               Alasdair Haynes of 2 Old Palace Terrace, The Green,
Richmond, Surrey TW9 1NB (the “Executive”)

 

WITNESSETH as
follows:

 

1.                                     Interpretation

 

1.1                                Definitions

 

In this Agreement unless the context otherwise
requires or unless otherwise specified:

 

“Associated Company” means any company which from time to time is
a subsidiary company of the Company the immediate parent company of the
Company, Investment Technology Group Limited (“ITG”), the immediate parent
company of ITG, Investment Technology Group SG Limited, or a subsidiary company
of any such parent company and for the purposes of this definition “subsidiary
company” and “parent company” shall have the meanings respectively given to
them by Section 736 of the Companies Act, 1985;

 

“Board” means the board of directors from time to
time of the Company;

 

“Business Day” means a day (other than a Saturday or
Sunday) on which clearing banks are generally open for business in England;

 

“Commencement Date” means 17 November 1998 or the date on
which the Executive actually commences employment with the Company, whichever
is the later;

 

“Group” means the Company and all Associated
Companies;

 

“Ireland” means the Republic of lreland;

 

“Relevant Business” means the securities electronic matching
business or businesses from time to time carried on by the Company and/or any
Associated Company;

 

“Termination Date” means the date on which the employment of
the Executive under this Agreement shall terminate irrespective of the cause or
manner; and

 

“Territory” means any country in which the Company does
business generally or actively markets its products during the Executive’s
employment.

 

2

 

1.2                                Interpretation

 

In this Agreement unless the context otherwise requires or unless otherwise specified;

 

1.2.1               any reference
to any statutory provision, or to any order or regulation shall be construed
as a reference to that provision, order or regulation as extended, modified,
replaced or re-enacted from time to
time (whether before or after the date of this Agreement) and all statutory
instruments, regulations and orders from time to time made thereunder or
deriving validity therefrom (whether before or after the date of this Agreement);

 

1.2.2               words denoting any
gender include all genders and words denoting the singular include the plural and vice versa;

 

1.2.3               headings are for convenience only and shall not affect the construction or interpretation
of this Agreement; and

 

1.2.4               if any action or
duty to be taken or performed under any of the provisions of this Agreement would fall to be taken or performed
on a day which is not a Business Day such action or duty shall be taken or performed on the Business Day next
following such day.

 

2.                                     Appointment

 

Subject to the provisions of clause 14 of
this Agreement, the Company shall employ the Executive and the Executive shall
serve the Company as Chief Executive from the Commencement Date on the terms
and subject to the conditions contained in this Agreement, for an initial
period of five years provided however that during that initial period the Executive may terminate this Agreement by
giving twelve months written notice to the Company and the Company may terminate this Agreement by
giving written notice to the Executive as follows:

 

2.1                        if notice is given
at any time between the Commencement Date and the second anniversary of the Commencement Date (“the First Period”), two years;

 

2.2                        if notice is given
at any time between the second anniversary of the Commencement Date and the fourth
anniversary of the Commencement Date (“the Second Period”) eighteen months;

 

and after the initial period of five years, this
Agreement will continue until either party gives the other
not less than twelve months written notice of termination.

 

3.                                     Retirement

 

If not previously terminated, this Agreement
will be terminated by reason of retirement of the Executive at the end of the month in
which the Executive’s 65th birthday occurs without compensation.

 

3

 

4.                                     Duties

 

4.1                                The Executive shall during his employment
hereunder:

 

4.1.1               faithfully and diligently undertake and
perform such duties and exercise such powers authorities and discretions in
relation to and commensurate with his position as Chief Executive of the
Company and its business as the Board may from time to time at its sole
discretion assign or delegate to or vest in him on such terms and subject to
such conditions and restrictions as the Board may from time to time at its sole
discretion determine or impose; and

 

4.1.2               (unless prevented by ill health or accident
and except during holidays permitted by this Agreement or with the consent of
the Company) devote the whole of his working time, attention, abilities,
expertise, skills and ingenuity to carrying out his duties hereunder during
normal working hours and at such other times as may be required by the needs of
the Company or the nature of the Executive’s duties. The Executive shall not be
entitled to receive any additional remuneration for work outside normal working
hours; and

 

4.1.3               carry out his duties in a proper and
efficient manner and use his best endeavours to maintain, protect, promote and
extend the business, interests, reputation and welfare of the Company and of
any Associated Company; and

 

4.1.4               comply with all lawful resolutions,
regulations and directions from time to time given to him by the Company and
with all rules and regulations from time to time laid down by the Company
concerning its executives which are not inconsistent with this Agreement; and

 

4.1.5               report to the Board and at all times keep the
Board promptly and fully informed (in writing if so requested) of his conduct
of the business and affairs of the Company and provide such explanations as the
Board may require in connection therewith; and

 

4.1.6               subject to clause 6, in pursuance of his
duties hereunder (without further remuneration unless otherwise agreed in
writing with the Board) perform such duties or services for any Associated
Company and accept and hold such offices or appointments in any Associated
Company for such period as the Board may from time to time require provided
that such duties or services, offices, or appointments are commensurate with
his status as Chief Executive of the Company, and in all cases carry out such
duties and the duties attendant on any such office or appointment as if they
were duties to be performed by the Executive on behalf of the Company.

 

4.2                                In the event of either party serving notice
of termination in accordance with clause 2.1, or the Executive being unable
through illness or injury to carry out his duties hereunder for a consecutive
period of 20 Business Days, the Board may from time to time and at any time
appoint any other person or persons to act jointly or in conjunction with the
Executive in the performance of his duties and powers hereunder and assign to
any such person or persons duties and powers identical or similar to those
undertaken or performed by the Executive hereunder save that when the Executive
returns to work after a period of incapacity such persons or person will stand
down with immediate effect.

 

4

 

5.                                     Exclusivity of Service

 

5.1                                Unless the Company shall at its absolute
discretion so agree in writing, the Executive shall not during the course of
his employment (except as a representative of the Company) and subject to
clause 5.2, undertake nor, directly or indirectly be engaged, concerned or
interested in any other business, firm, company, concern, enterprise or society
(whether incorporated or otherwise) or become an employee, officer, servant or
agent of or consultant to any other business,
firm, company, concern, enterprise or society (whether incorporated
or otherwise).

 

5.2                                Nothing in this clause shall preclude the
Executive from holding being interested in or acquiring (beneficially or
otherwise), when aggregated with any such holding of his spouse and his
children under the age of 18 of which, the Executive is aware, not more than 3%
per cent in nominal value of the issued share capital of any class of shares or
securities of any other company listed or dealt in on any recognised stock
exchange by way of bona fide investment unless the Board shall require him not
to do so in any particular case on the ground that such other company is or may
be carrying on a business conflicting, competing or tending to conflict or
compete with the business of the Company or any Associated Company. The
Executive shall comply with the provisions of the Company’s Compliance Manual.

 

6.                                     Place of Work

 

The Executive’s normal place of work shall be at the
Company’s business premises in London or at such other place of business of the
Company or any member of the Group as the Company shall reasonably require
provided that such other place of business shall be within reasonable daily
commuting distance from the Executive’s home and the Executive himself does not
move outside the daily commuting distance. In addition, the Executive shall
travel as necessary or required to Dublin and to such places whether inside or
outside Ireland or the United Kingdom and in such manner and on such occasions
as the Company may from time to time require in pursuance of his duties
hereunder.

 

7.                                     No Obligation to provide work

 

For a maximum of six months after notice of
termination has been served by either party, there shall be no obligation on
the Company to require the Executive to work or perform any duties and if the
Company gives written notice to the Executive that it requires the Executive
not to work or perform any duties for up to six months, then during such period
the Executive:

 

7.1                                shall not, without written permission of the
Company, be entitled to access to any premises of the Company or any Associated
Company; and

 

7.2                                shall continue to receive his full
remuneration and other benefits hereunder including any bonus or incentive
arrangement for which the Executive may be eligible as if the Executive had remained
at work and had fulfilled his duties.

 

5

 

8.                                     Salary

 

8.1                                During the continuance of his employment
under this Agreement, the Executive shall be paid a salary at the rate of Stg,
120,000 per annum. Such salary (and any revised salary pursuant to clause 8.2)
shall accrue from day to day but shall be paid by equal monthly instalments in
arrears on or before the last working day of each month into the Executive’s nominated
bank account, subject to the deduction of such income tax (PAYE), and national
insurance contributions and such other deductions which the  Company is
obliged by law or requested by the Executive or entitled under this Agreement
to make.

 

8.2                                The Executive’s salary provided for in clause
8.1 shall be subject to an upwards only annual review by the Board commencing
on and with effect from 1 January 2000 and thereafter on each subsequent 1
January and an increase (if any) in salary shall have effect as if
specifically provided for as a term of this Agreement.

 

8.3                                The Executive’s salary provided for in this
clause 8 shall be deemed to include any fee receivable by the Executive as a
director of the Company or any Associated Company or of any other company or
unincorporated body in which he holds office as nominee or representative of
the Company or any Associated Company.

 

8.4                                The Company may, at its absolute discretion,
pay the Executive an annual performance related bonus of an amount to be
determined by the Board. The total bonus pool available to employees of the
Company will be set by the Board as a percentage of the Company’s revenues.

 

8.5                                The Company shall to the extent permitted by
law be entitled to deduct from the Executive’s salary or bonus all sums from
time to time owed by the Executive to the Company or any Associated Company,
and by his execution hereof, the Executive hereby consents to the deduction of
such sums, provided that he has been given reasonable prior notice of the
intended deduction.

 

9.                                     Expenses

 

9.1                                The Company shall reimburse to the Executive
all reasonable travelling, hotel, entertainment and other out of pocket
expenses properly incurred by him in the proper performance of his duties up to
such annual limit as may be determined by the Board, subject to the production
of evidence of expenditure satisfactory to the Company.

 

9.2                                Where the Company issues a Company sponsored
credit or charge card to the Executive he shall use such card only for expenses
reimbursable under clause 9.1 above or shall promptly repay to the Company any
other expenses or sums incurred on such credit or charge card.

 

10.                              Pension, Health Insurance and Other Benefits

 

The Executive will be entitled to participate in whatever pension and
employee benefits plan that may be adopted or provided by the Company from time
to time.

 

6

 

11.                              Annual Leave

 

11.1                         The Executive shall be entitled to 30 days
annual leave (in addition to statutory public holidays) in each calendar year
to be taken at such time or times as agreed with the Board.

 

11.2                         Annual leave entitlement shall be deemed to
accrue at the rate of 2.5 days per month and on the termination of this
Agreement howsoever arising the Executive shall be entitled to pay in lieu of
all accrued annual leave entitlement from the start of the then current leave
year up to and including the Termination Date only. The basis of payment shall
be at the rate of 1/261 basic annual salary for each day in excess of / less
than the accrued entitlement.

 

11.3                        The Company’s leave year commences on 1 January and
ends on 31 December. Annual leave cannot be carried forward from one year to
the next without the consent of the Board. Salary in lieu of annual leave will
not be paid by the Company.

 

12.                              Incapacity

 

12.1                        If the Executive is absent from work due to
illness or accident he shall notify the Board as soon as possible. If this
incapacity continues for five or more consecutive Business Days he shall submit
a doctor’s certificate in a form satisfactory to the Company confirming his
inability to attend work.

 

12.2                        If the Executive is absent from work due to
illness or accident duly notified and certified in accordance with clause 12.1,
the Company shall pay the Executive his remuneration, subject to clause 12.3,
for a maximum aggregate period of twenty six weeks absence in any period of twelve
months.

 

12.3                        The remuneration paid under clause 12.2 shall
include any sick pay to which the Executive is entitled by law and shall be
reduced by the amount of any social welfare or other benefits recovered by the
Executive .

 

12.4                        The Company may (at its expense) at any time
upon reasonable notice, whether or not the Executive is then incapacitated,
require the Executive to submit to such medical examinations and tests by
medical practitioners nominated by the Company at the expense of the Company
and the Executive hereby agrees to submit to such medical examination and tests
and hereby authorises such medical practitioners to disclose to, and discuss
with, the Company and its medical advisers the results of such examinations and
tests provided that the Executive is given copies of all such results and
tests.

 

12.5                        In the event that the Executive is incapable
of performing his duties by reason of injuries sustained wholly or partly as a
result of actionable negligence nuisance or breach of any statutory duty on the
part of any third party all payments made to the Executive by the Company under
this clause 12 shall to the extent that compensation is recoverable from that
third party constitute loans by the Company to the Executive (notwithstanding
that as an interim measure income tax has been deducted from payments as if
they were emoluments of employment) and shall be repaid when and to the extent
that the Executive recovers compensation for loss of earnings from that third
party by action or otherwise.

 

7

 

13.                              Discipline

 

In the event of perceived gross misconduct,
the Board or in exceptional circumstances the co-chairmen of the Board will be
entitled to suspend the Executive forthwith where it is necessary to do so in
order to consider and investigate the allegation and decide what action or
procedure it would be appropriate to adopt. Such suspension will be for no
longer than is necessary to investigate the allegation. Full remuneration and
all benefits shall be paid to the Executive during any such suspension. In all
disciplinary matters, the Executive will be presented in writing with the
totality of the allegations outstanding against him, will be given the right to
respond, will have the opportunity to be represented at any disciplinary
hearing by a colleague and will have the opportunity to call witnesses to
support his case.

 

14.                              Termination

 

14.1                          Notwithstanding the provisions of clause 2
above, this Agreement may be terminated forthwith by the Company by written
notice to the Executive if at any time:

 

14.1.1       he commits any serious or material breach or repeated breaches of his
obligations under this Agreement and (if capable of remedy) fails to remedy the
same within 14 days of receiving a written notification from the Board
identifying such breaches and calling upon him to remedy them; or

 

14.1.2       he is guilty of dishonesty or gross misconduct or wilful neglect in the
discharge of his duties or the performance of his powers hereunder, such that
the Board can no longer have trust and confidence in him; or

 

14.1.3       he is adjudicated bankrupt or commits any act of bankruptcy or makes
any formal arrangement or composition with his creditors; or

 

14.1.4       he is convicted of any criminal offence (other than a road traffic
offence which does not result in a custodial sentence) which in the reasonable
opinion of the Board seriously and detrimentally affects his position in or the
reputation of the Company; or

 

14.1.5       he is guilty of any conduct tending to bring himself the Company or any
Associated Company into disrepute; or

 

14.1.6       he ceases by any act or default of his own to be a director of the
Company or is prohibited or disqualified by law from holding any office in the
Company, any Associated Company or any other company; or

 

14.1.7       if the Executive is absent or unable through illness or injury to
discharge in full his duties hereunder for a consecutive period of 26 weeks in
any period of 12 consecutive months, or if the Executive becomes of unsound
mind or shall be or become a patient for the purposes of any Mental Health Act
so that he is unable to perform his duties, provided that no action will be taken
to terminate his employment that would prejudice the Executive’s rights to
benefit under the Company’s PHI scheme.

 

8

 

14.2.                       In the event of the Company terminating this
Agreement except where the provisions of clause 14.1 apply, the Company will
pay to the Executive by way of termination payment a gross sum calculated as
follows:

 

14.2.1         if the Agreement is terminated during the First Period, the amount of
salary plus the cost to the Company of providing any benefits (including any
bonus) which the Executive would have received had he remained employed through
the full period of two years from the date of notice being given, or if no
notice was given, from the Termination Date;

 

14.2.2         if the Agreement is terminated during the Second Period, the amount of
salary plus the cost to the Company of providing any benefits (including any
bonus) which the Executive would have received had he remained employed through
the full period of eighteen months from the date of notice being given or if no
notice was given, from the Termination Date);

 

14.2.3         if the Agreement is terminated on or after the fourth anniversary of
the Commencement Date the amount of salary plus the cost to the Company of
providing any benefits (including any bonus) which the Executive would have
received had he remained employed through the full period of twelve months from
the date of notice being given or if no notice was given, from the Termination
Date;

 

in each case, subject to normal deduction of tax and national insurance
contributions. Such termination payment shall be reduced by the amount of any
payments made to or on behalf of the Executive; during any notice period worked
by the Executive, or by the amount of any payments which would have been made
to or on behalf of the Executive during any notice period which the Executive
does not work at his own request and with the agreement of the Company. It is
hereby agreed by the Executive that this payment by the Company will be in full
and final settlement of all claims, causes of action or complaints whatsoever
arising out of the employment or termination of employment of the Executive
which he has or may have against the Company or any Associated Company and
whether arising under statute, common law, equity or otherwise. This clause is
without prejudice to any claim that the Executive may have for personal injury
arising out of his employment and, for the avoidance of doubt, this paragraph
shall not prejudice the Executive’s accrued rights under the Company Pension
Scheme or his rights under the Share Option Agreement dated as of 17 November 1998.

 

15.                              Reconstruction or Amalgamation

 

If before the termination of this Agreement the employment of the
Executive under this Agreement is terminated by reason of liquidation of the
Company for the purpose of reconstruction or amalgamation and the Executive is
offered employment with any concern or company resulting from such
reconstruction or amalgamation or with any Associated Company, in the capacity of
Chief Executive on terms and conditions not less favourable than the terms of
this Agreement, then the Executive shall have no claim against the Company in
respect of the termination of his employment under this Agreement.

 

9

 

16.                              Executive’s Obligations on
Termination

 

16.1                          Upon the termination of this Agreement
howsoever arising, the Executive hereby agrees that he shall immediately at the
request of the Company:

 

16.1.1         resign from all offices held by him in the Company and any Associated
Company and from all other appointments or offices which he holds as nominee or
representative of the Company or of any Associated Company and do all such acts
and things (if any) as may be necessary to make: any such resignations
effective and in default the Company is hereby irrevocably authorised to
appoint some person as his attorney in his name and on his behalf to execute
any documents and do all things requisite to give effect thereto; and

 

16.1.2         deliver up to the Company all Company
property which may be in his possession or under his control including but not
limited to, computer, all correspondence, documents, memoranda, papers,
writings, keys, credit cards, business cards and all other property of or
relating to the Company or any Associated Company except for any documents
which the Executive may reasonably require to bring a claim against the Company
in respect of, any accrued salary he may have or for compensation in respect of
the termination of this Agreement provided always that the Executive notifies
the Company of all such claims within 14 days of the Termination Date and
immediately furnishes copies and a full list of all such documents retained and
on conclusion of such claim(s) such documents are returned forthwith to
the Company.

 

16.2                          The Company shall forthwith upon termination
pay to the Executive all accrued and unpaid remuneration, fees and expenses due
under the terms of this Agreement, less any amounts owing by the Executive to
the Company or to any Associated Company, provided advance notice of any such
amounts owing is given to the Executive.

 

16.3                          The termination of this Agreement shall not
affect such of the provisions of this Agreement as are expressed to operate or
have effect thereafter and shall be without prejudice to any right of action
already accrued to either party in respect of any breach of this Agreement by
the other party.

 

17.                              Protective Covenants

 

17.1                       Acknowledgements by the Executive

 

The Executive acknowledges:-

 

(a)              that the Group is in a unique and highly
specialised business involving products/services which are highly sophisticated
and technical in nature;

 

(b)             that the Group’s market is national and
international in scope with a limited number of competitors;

 

(c)              that the Group possess a valuable body of
confidential information;

 

(d)             that the Company will give him access to
confidential information in order to carry out his duties;

 

10

 

(e)              that the Executive’s duties include, without
limitation, a duty of trust and confidence and a duty to act at all times in
the best interests of the Company;

 

(f)                that the Executive’s knowledge of
confidential information directly benefits him by enabling him to perform his
duties;

 

(g)             that unless required for the performance of
his duties the disclosure of any confidential information to any customer or
actual or potential competitor of the Company may place the Company at a
serious competitive disadvantage and may cause immeasurable (financial and
other) damage to the Relevant Business;

 

(h)             that if, on leaving the employment of the
Company, he was to hold any position in any actual or potential competitor to
the Relevant Business, it may place the Company at a serious competitive
disadvantage and would cause immeasurable (financial and other) damage to the
Relevant Business; and

 

(i)                 that the success of the Relevant Business
depends in part on the Executive’s successor and /or fellow employees
establishing business relationships with the customers and suppliers of the
Relevant Business which are similar to those established and maintained by the
Executive in the course of his employment by the Company.

 

17.2                       Competition

 

During the continuance of this Agreement and, subject to clause 17.4 for
a period of 12 months after the Termination Date the Executive shall not within
the Territory, without the prior written consent of the Company:

 

17.2.1         be engaged, concerned or interested either directly or indirectly in
any capacity either on his own behalf of in conjunction with or on behalf of
any person, firm, company, business, concern or enterprise whatsoever in the
Relevant Business or in any business wholly or partly in competition with the
Relevant Business; or

 

17.2.2         directly or indirectly in any capacity either on his own behalf or in
conjunction with or on behalf of any other person, firm, company, business,
concern or enterprise whatsoever;

 

(a)               solicit or entice or endeavour to solicit or
entice away from the Company or any Associated Company any person employed by
the Company or any Associated Company in any capacity whatsoever whether or not
such person would commit a breach of his contract of employment by reason of
leaving such service;

 

(b)              canvass, solicit or approach or cause to be
canvassed or solicited or approached for orders in respect of any services
provided or any goods dealt in by the Company or any Associated Company any
person, firm, company, business, concern or enterprise whatsoever who is or was
at any time during the period of 12 months immediately preceding the
termination of a customer of or supplier to or in the habit of dealing with the
Company or any Associated Company or who is or had been during the said 12
month period negotiating with the Company for the supply of such services or
goods; or

 

11

 

(c)               interfere or seek to interfere to take steps
as may interfere with the continuance of supplies to the Company or any
Associated Company (or the terms relating to such supplies) from any persons
who are or who have been supplying components, materials, goods or services to
the Company or to any Associated Company at any time during the 12 month period
immediately preceding termination of this agreement.

 

17.3                          Nothing contained in this clause shall act to
prevent the Executive from using generic skills learnt while employed by the
Company in any business or activity which is not in competition with the
Company.

 

17.4                          The period of the restriction in clause 17.2
shall be reduced by the period of time for which the Company exercises its
rights under clause 7 to require the Executive not to work or perform any or
all of his duties.

 

17.5                          The Executive acknowledges and agrees that
each clause of this section 17 constitutes an entirely separate and independent
restriction and that the duration, extent and application of each restriction
are no greater than is reasonable and necessary for the protection of the
interests on the Company but that, if any such restriction shall be adjudged by
any court or authority of competent jurisdiction to be void or unenforceable
but would be valid if the period thereof and/or the area dealt with thereby
were to be reduced, the said restriction shall apply within the jurisdiction of
that court or competent authority with such modifications as are necessary to
make it valid and effective.

 

18.                              Binding on Successors

 

To the extent permitted by law, this Agreement shall be binding upon
and enure to the benefit of the respective parties hereto and their respective
personal representatives, successors and permitted assigns.

 

19.                              Waiver, Release and Remedies

 

19.1                        A waiver by either party of any breach by the other of any of the terms, provisions or conditions of
this Agreement or the acquiescence by either party in any act (whether of commission
or omission) which but for such acquiescence would be a breach as aforesaid
shall not constitute a general waiver of such term, provision or condition or
an acquiescence to any subsequent act contrary thereto.

 

19.2                        Any remedy or right conferred upon either
party for breach of this Agreement shall be in addition to and without
prejudice to all other rights and remedies available to such party whether
pursuant to this Agreement or otherwise provided for by law.

 

19.3                        No failure or delay by either party in
exercising any claim, remedy, right, power or privilege under this Agreement
shall operate as a waiver nor shall a single or partial exercise of any claim,
remedy, right, power or privilege preclude any further exercise thereof or
exercise of any other claim, remedy, right, power or privilege.

 

12

 

20.                              Counterparts

 

This Agreement may be executed in any number of counterparts and by the
different parties hereto on separate counterparts each of which when executed
and delivered shall constitute an original and all such counterparts together
constituting one and the same instrument.

 

21.                              Notices

 

Any notice or other communication whether required or permitted to be
given hereunder shall be given in writing and shall be deemed to have been duly
given if delivered by hand against receipt of the addressee or if transmitted
by fax or sent by prepaid registered post addressed to the party to whom such
notice is to be given at the address set out for such party herein (or such
other address as such party may from time to time designate in writing to the
other party hereto in accordance with the provisions of this clause). Any such
notice shall be deemed to have been duly given if delivered at the time of
delivery, if transmitted by fax at the time of termination of the transmission
and if sent by prepaid registered post as aforesaid forty eight house after the
same shall have been posted provided that in the case of notice to the Executive,
any fax transmission or postal delivery shall not be validly given, if the
Executive shall, to the knowledge of the Company, be away or travelling in
which event notice will only be effectively given when the Executive returns to
the relevant address.

 

22.                              Variation

 

No variation of this Agreement shall be valid unless it is in writing
and signed by or on behalf of each of the parties hereto.

 

23.                              Severability

 

Each of the provisions of this Agreement, or any part thereof, is
separate and severable and enforceable accordingly and if at any time any
provision, or any part thereof, is adjudged by any court of competent
jurisdiction to be void or unenforceable, the validity, legality and
enforceability of the remaining provisions hereof and of that provision, or any
part thereof, in any other jurisdiction shall not in any way be affected or
impaired thereby.

 

24.                              Governing Law

 

This Agreement shall be governed by and construed in accordance with
the laws of England and Wales and the courts of England and Wales shall have
exclusive jurisdiction to deal with all disputes arising from on touching upon
this Agreement.

 

25.                              Independent Legal Advice

 

The Executive acknowledges that he has been afforded the opportunity of
obtaining independent legal advice on the terms of this Agreement and
understands the effect and implications of this Agreement and every part
thereof. The Executive further acknowledges that he has entered into this
Agreement without any coercion of any description.

 

13

 

IN WITNESS
whereof this Agreement has been duly executed on the date shown at the
beginning of this Agreement.

 

 

Signed for and on behalf of

the Company by:

 

 

	
  /s/ Raymond L. Killian, Jr.

  	
   

  
	
  Raymond
  L. Killian, Jr.

  
	
  Director

  

 

 

Signed by the Executive:

 

 

	
  /s/ Alasdair Haynes

  	
   

  
	
  Alasdair
  Haynes

  

 

 

in the presence of:

 

 

	
  [ILLEGIBLE]

  	
   

  
	
  Witness

  
	
   

  
	
   

  	
   

  
	
  Address

  
	
   

  
	
  [ILLEGIBLE]

  	
   

  
	
   

  	
   

  
	
  [ILLEGIBLE]

  	
   

  
	
  Occupation

  
			

 

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]