Document:

InfraBlue (US) Inc. - Exhibit 10.1

Exhibit 10.1

	
DATED 30 March 2004

HBI SALES PRIVATE LIMITED

(1)

 

ZACAN HOLDINGS PROPRIETARY LIMITED

(2)

 

ICT/EUROPETEC LIMITED

(3)

 

MIR TECHNOLOGIES LLC

(4)

- and --

 

 

INFRABLUE LIMITED

(5)

 

 

AGENCY EXPLOITATION AGREEMENT

for the commercial exploitation

of the InfraBlue Technology

	
THIS AGENCY AGREEMENT is made the 30th day of March 2004

 

	
B E T W E E N :

	
(1)
	
HBI SALES PRIVATE LIMITED a company registered in Asia whose registered office is situate at 204A Mittal Towers, 6 M.G. Road, Bangalore 560 001, India ("the First Licensor ");

	
(2)
	
ZACAN HOLDINGS PROPRIETARY LIMITED a company registered in Australia whose registered office is situate at Level 5, 49 Market Street, Sydney, New South Wales, Australia ("the Second Licensor");

	
(3)
	
ICT/EUROPETEC LIMITED a company registered in England and Wales whose registered office is situate at 4 Bedford Row, London WC1R 4DF ("the Third Licensor");

	
(4)
	
MIR TECHNOLOGIES LLC a company registered in the United States whose registered office is situate at Agents and Corporations Inc., 1201 Orange Street, Suite 600, City of Wilmington, New Castle County, Delaware 19801, United States ("the Fourth Licensor") and

	
(5)
	
INFRABLUE LIMITED (a limited company registered in England and Wales) whose registered office is situated at A1 Company Services Limited, 788-790 Finchley Road, London NW11 7TJ ("the Agent").

	
WHEREAS RECITALS 

	
1.
	
The First Licensor entered into a Licence Agreement with Public Lock Inc. on the 6th October 2003 by which it was granted a licence to use, deal with and generally exploit the Rights (but not to sell, lease or otherwise dispose of the same) in the Territory defined as Asia. 

	
2.
	
The Second Licensor entered into a Licence Agreement with Public Lock Inc. on the 6th October 2003 by which it was granted a licence to use, deal with and generally exploit the Rights (but not to sell, lease or otherwise dispose of the same) in the Territory defined as Australia. 

	
3.
	
The Third Licensor entered into a Licence Agreement with Public Lock Inc. on the 6th October 2003 by which it was granted a licence to use, deal with and generally exploit the rights (but not to sell, lease or otherwise dispose of the same) in the Territory defined as Europe.

	
4.
	
The Fourth Licensor entered into a Licence Agreement with Public Lock Inc. on the 6th October 2003 by which it was granted a licence to use, deal with and generally exploit the Rights (but not to sell, lease or otherwise dispose of the same) in the territory defined as USA and Canada.

	
5.
	
The First Licensor, the Second Licensor, the Third Licensor and the Fourth Licensor have agreed that it would be commercially advantageous for each of them to join together in the appointment of one agent to exploit the rights granted to each of them under their respective License Agreements and have agreed to appoint the Agent upon the terms and conditions of this Agreement.

	
6.
	
The First Licensor, the Second Licensor, the Third Licensor and the Fourth Licensor have agreed that, wherever commercially possible or reasonable, they shall act with one voice and provide one set of instructions to the Agent but that each shall, where necessary or desirable, be able to individually to apply the terms of this Agreement to their own Territory and licence agreement.

	
IT IS AGREED as follows:

	
1.
	
DEFINITIONS AND INTERPRETATION

In this Agreement the following words and expressions will have the following meanings:

	 	
"Business Day"
	
any day other than a Saturday or Sunday or statutory Bank Holiday;

	 	
"Duties
	
duties of the Agent in relation to the commercial exploitation of the rights as set out in the Schedule 1 to this Agreement;

	 	
"Exploitation Forecast"
	
the forecasts of income and expenditure for the exploitation set out in Schedule 2 to this Agreement;

	 	
"Licensor"
	
any one of the First Licensor, the Second Licensor, the Third Licensor or the Fourth Licensor;

	 	
"Minimum"
	
the sum of  L 448,000;

	 	
"The Payment"
	
25% of the Turnover;

	 	
"Period"
	
each calendar quarter;

	 	
"Rights"
	
the intellectual property rights to the technology and software for the InfraBlue Technology listed in Schedule 3 including all future upgrades;

	 	
"Territory"
	
the respective territory or territories defined in each licence agreement referred to above;

	 	
"Turnover"
	
the gross income (exclusive of VAT) from the Exploitation of the Rights.

	 	
Definitions used in this Agreement shall apply to each Licensor mutatis mutandis

	
2.
	
DUTIES OF THE AGENT

The agent will commercially exploit the rights and will:

	 	 	
(i) carry out its Duties and use its best endeavours to achieve an exploitation result in accordance with the Exploitation Forecast.

(ii) accept and carry out work and services related to the exploitation in accordance with instructions and direction given by the Licensors for each of their territories.

(iii) participate in at least one monthly management meeting with the Licensors or as they may direct and report the exploitation results for the month in a format directed by the Licensors or as they may direct.

	

	 	 	
(iv) participate as may from time to time be required in any other meeting with the Licensors or as they may direct.

(v) accept the directors and requests from the Licensors and carry out work resulting from the directions and requests in a proper manner.

	
3.
	
PAYMENT TO THE AGENT

	 	
3.1 In consideration of the Agent carrying out the Duties and giving the warranty in clause 4, the Licensors jointly agree that the Agent shall be entitled to an aggregate sum equal to the Payment.

3.2 The Payment shall be made to the Agent within fourteen (14) Business Days of the finalisation of the Accounts of the Partnership in respect of each period.

3.3 A Certificate in writing signed by the Licensors stating the total amount due to the Agent shall in the absence of manifest error be conclusive evidence thereof.

	
4.
	
WARRANTY

	 	
(i) The agent hereby confirms that the Exploitation Forecast is reasonable and expresses the Agent's current expectations of turnover and Costs as a result of the exploitation of the Rights.

(ii) The Agent warrants to the Licensors that the aggregate Turnover in any Period as a result of the Agent carrying out the Duties shall not be less than the Minimum in respect of the first thirty six (36) calendar months from the date hereof.

	
5.
	
INDEMNITY

The Agent agrees to indemnify and keep indemnified the Licensors from and against any and all losses, costs, damages, claims, demands, expenses and liabilities incurred or suffered (together with legal fees and costs incurred thereon) by the Licensors as a result of any breach by the agent or its agents, employees, licensees or customers pursuant to the terms of this Agreement provided that such liability has not been incurred by the Agent through any default by the Licensors.

	
6.
	
NON COMPETITION

	 	
For so long as this Agreement is in existence in relation to one or more of the Licensors, the Agent undertakes and covenants with the First Licensor, the Second Licensor, the Third Licensor and the Fourth Licensor individually covenants that it will not during the subsistence of this Agreement and for a term of one year after its termination (howsoever terminated), deal with, exploit, sell, distribute or otherwise be involved or interested in, whether directly or indirectly, any software or technology which is similar to or in competition with the Rights

	
7.
	
PROPERTY AND CONFIDENTIALITY IN THE RIGHTS

	 	
7.1 The Rights contain confidential information of the Licensors and all copyright, trademarks and other intellectual property rights in the Rights are the exclusive property of the Licensors.

	 	
7.2 The Agent shall not:

	 	 	
7.2.1 save as provided or agreed by the Licensors make up backup copies of the Rights;

7.2.2 reverse compile, copy or adapt the whole or any part of the Rights;

7.2.3 assign, transfer, sell, lease, rent, charge or otherwise deal in or encumber the Rights or use the Rights on behalf of any third party or make available the same to any third party

	 	
7.3 The Agent shall:

	 	 	
7.3.1 keep confidential the Rights and limit access to the same to those of its employees, agents and sub-contractors who either have a need to know or who are engaged in the exploitation of the Rights;

	 	 	
7.3.2 maintain an up to date written record of the number of copies of the Rights and their location and upon request forthwith produce such record to the Company;

	 	 	
7.3.3 notify the Licensors immediately if the Agent becomes aware of any unauthorised use of the whole or any part of the Rights by any third party; and 

	 	 	
7.3.4 without prejudice to the foregoing take all such other steps as shall from time to time be necessary to protect the confidential information and intellectual property rights of the Licensors in the Rights.

	 	
7.4 The Agent shall inform all relevant employees, agents and sub-contractors that the Rights constitute confidential information of the Licensors and that all intellectual property rights therein are the property of the Licensors and the Agent shall take all such steps as shall be necessary to ensure compliance by its employees, agents and sub-contractors with the provision of this clause 7.

	
8.
	
TERMINATION

	 	 	
(i) This Agreement shall terminate in the event of either of the parties giving to the other not less than thirty (30) Business Days notice in writing at any time after the third anniversary of this Agreement.

	 	 	
(ii) The Licensors, or any one of the Licensors in respect of its own rights or territories, may terminate this Agreement at any time upon giving not less than thirty (30) Business Days notice in writing at any time.

	 	 	
(iii) This Agreement may be terminated forthwith by either party if the other shall convene a meeting of its creditors or if a proposal shall be made for voluntary arrangement or a proposal for any other composition scheme or arrangements with (or assignment for the benefit of) its creditors or if the other shall be unable to pay its debts within the meaning of Section 123 of the Insolvency Act 1986 or if a Trustee, Receiver or Administrative Receiver or similar officer is appointed in respect of all or any part of the business or assets of the other or if a petition is presented or a meeting is convened for the purpose of considering a resolution or other steps are

	 	 	
taken for the winding-up of the other or for the making of an administration order (otherwise done for the purpose of an amalgamation or reconstruction)

	 	 	
(iv) In the event of termination for whatever reason the Agent shall forthwith pass to the Licensors all documents, samples and publicity promotional and advertising material in its possession or under its control and shall forthwith cease to make any representation that it is in any way involved with the Licensors.(v) Termination for whatever reason shall not affect the right of the Agent to receive monies referred to in clause 3 where such monies have been earned prior to the date of termination.

	 	 	
(vi) The agent agrees that it shall not be entitled to any compensation in the event of this Agreement being terminated for whatever reason.

	
9.
	
ENTIRE AGREEMENT

	 	
The parties acknowledge that this Agreement constitutes the whole agreement between the parties and shall supersede any prior agreements between the parties whether written or oral and that any such prior agreements are cancelled as at the date hereof.

	
10.
	
NO PARTNERSHIP

	 	
The parties confirm that they are not partners or joint venturers.

	
11.
	
FORCE MAJEURE

	 	
If due performance of this Agreement by either party hereto is affected in whole or in part by reason of any event, omission, accident or other matter beyond the reasonable control of such party, such party shall give prompt notice thereof to the other party and shall be under no liability for any loss, damage, injury or expense (whether direct or consequential) suffered by the other party or parties due to the affected performance.  Such party shall use all reasonable efforts to avoid or overcome the causes affecting performance and shall fulfil all outstanding performance as soon as it becomes practicable to do so.

	
12.
	
WARRANTIES AND INDEMNITIES

	 	
12.1 Each party hereby represents and warrants to the other that there are no material agreements, licences or obligations known to it what would affect this Agreement other than previously disclosed by it and that each had dealt with the other in negotiating this Agreement with good faith

	 	
12.2 Each party represents and warrants to the other that:

	 	 	
(i) the making and performance of this Agreement are within its powers and do not contravene any law or contractual restriction on it;

(ii) there are no pending or threatened claims, actions or proceedings which would be reasonably likely to affect materially and adversely the financial condition of the that party;

	 	
12.3 The parties undertake to each other that each of them will indemnify and keep the other indemnified from and against any and all losses, costs, claims, demands, actions or liabilities suffered or incurred directly or indirectly by the other as a result of the breach by that party of any of the warranties referred to above.

	
13.
	
NOTICES AND OTHER MATTERS

	 	
13.1 Any notice to be given pursuant to the terms of this Agreement shall be in writing delivered by hand or by first class mail or by facsimile.  Any such notice shall be delivered (i) in the case of a company registered in England and Wales, to its registered office address or to such other address in England as may subsequently be notified by notice given pursuant to the terms of this clause, and (ii) in the case of an individual, or of an organisation other than a company registered in England and Wales, to an address in England notified by notice given pursuant to the terms of this clause.  Any notice given shall be deemed to be given, in the case of a notice delivered by hand, on the Business Day following receipt, in the case of a notice delivered by pre-paid first class mail from England, three Business Days after posting, and in the case of a notice given by facsimile, on the first Business Day following transmission.  In proving service by mail it shall be sufficient to show that the envelope containing the notice was properly addressed, stamped and posted.

	 	
13.2 No failure or delay on the part of any party to exercise any power, right or remedy under this agreement shall operate as a waiver thereof nor shall any single or partial exercise by that party of any power, right or remedy preclude any 

	 	
other or further exercise of any other power, right or remedy.  The remedies of each of the parties provided by this Agreement are cumulative and are not exclusive of any remedies provided by law.

	 	
13.3 If any provision of this agreement shall be found by any court or administrative body of competent jurisdiction to be invalid or unenforceable the invalidity or unenforceability of such provision shall not affect the other provisions of this Agreement and all provisions not affected by such invalidity or unenforceability shall remain in full force and effect.  The parties hereby agree to attempt to substitute for any invalid or unenforceable provision a valid or enforceable provision which achieves to the greatest extent possible the economic legal and commercial objectives of the invalid or unenforceable provision.

	 	
13.4 This agreement shall be governed by and construed in accordance with English law and shall be subject to the exclusive jurisdiction of the English Courts.

	
14.
	
ASSIGNMENT

	 	
This Agreement shall not be assigned by any party without the written consent of the others save that in the case of an assignment by one of the Licensors consent shall not be necessary from the other Licensors and the Agent shall not be entitled to unreasonably withhold or delay its consent.

	
15.
	
AGREEMENT MODIFICATION

	 	
Any agreement to change the terms of this Agreement in any way shall be valid only if the change is made in writing and approved by mutual agreement of authorised representatives of the parties hereto.

	
IN WITNESS WHEREOF the parties have executed this instrument as a deed and have delivered it upon dating it.

 

	
SCHEDULE 1

The Agent's Duties

	 	
The Agent will commercially exploit the Rights and its duties will include, but are not restricted to, the following:

	 	 	
(i) carrying out its Duties and using its best endeavours to achieve an exploitation result in accordance with the exploitation forecast;

(ii) accepting and carrying out work and services related to the exploitation in accordance with instructions and directions given by the Licensors;

(iii) participating in at least one monthly management meeting with the Licensors or as they may otherwise direct and reporting the exploitation results for the month in a format directed by the Licensors;

(iv) participating as may from time to time be required in any other meeting with the Licensors or as they may otherwise direct;

(v) accepting the directions and requests from the Licensors or as they may otherwise direct and carrying out work resulting from the directions and requests in a proper manner;

(vi) providing quarterly reviews of the public reactions to the Rights and a financial comparison between actual performance and results against those in the Exploitation forecast;

(vii) discussing possible changes to the financial assumptions in sufficient time before the end of the financial year to enable budgets to be prepared for the following year;

(viii) undertaking any other duties or activities relating to the Rights which may reasonably be requested by the Licensors.

 

	
SCHEDULE 2

Exploitation Forecast

 

 

 

 

 

 

 

 

 

 

	
SCHEDULE 3

The Rights

	
INTRODUCTION

Public Lock Inc. is in a unique position with the InfraBlue being the first Bluetooth software and device for connecting a smart phone or PDA ("Personal Digital Assistant") to a projector or other type of presentation equipment.  The InfraBlue is renowned for being both intuitive and easy-to-use as well as ensuring a high security level.  The InfraBlue technology is owned by Public Lock Inc. "the Company".  The Company has a range of reseller and exploitation agreements in place for the Asian, Australian, North American and European markets.

BACKGROUND

Throughout the world, there is virtually an army of people giving presentation on a daily basis.  A solid presentation is required in order to convey knowledge or a message that can have a material impact on an individual's or group's success.  The presenter must prepare his/her thoughts, create a presentation and then deliver the message.  Today the delivery component is typically done with a computer that is connected to a projector.  For the many thousands who travel to give presentations, a laptop is normally brought along to connect to the projector.  There are a number of practical inhibitors in the way things are done today.

A laptop is often a relatively heavy and expensive piece of equipment, often with a weight of 3 kilograms or more and costing from 1,000 GBP and upwards.  In addition, if it is lost or stolen, it can pose a great security risk for the individual as well as the whole company, since very few people have a separate laptop merely for presentations.  Most users have all their e-mails, Word and Excel documents etc. on the same machine.  So, sensitive information can potentially fall into the wrong hands as well as information being lost forever.

To sum up, for many professionals a laptop is both prohibitively expensive to own, laborious to travel with as well as an inherent security risk.

Luckily, there is no longer a need for the inconvenience and safety risk of lugging along a laptop to give presentations.  With InfraBlue, presenters simply need to bring the 110-gram device and their "PDA" or "mobile smart phone" (a breed of phones introduced around 2001/2002 with which the user can surf the internet, receive and reply to e-mails, synchronize it with his/her calendar, take photos etc).

This is something a large number of the professionals on the move already own to keep their lives organised.  Portability is quickly becoming the global standard.  The army of "mobile professionals" that constantly travel can stay connected with their company and the outside world through one single (a smart phone or PDA).  Therefore, the dependency on a laptop will decrease over time and products like InfraBlue will prevail.

PRODUCTS AND SERVICES

InfraBlue is a complete presentation solution that provides users with a simple, fast, flexible and secure tool for the delivery of high-quality colour presentations using their handheld device, i.e. smart phones (a new breed of phones based on the Symbian platform, for example Nokia 3650 and 7650 or Ericsson P800 and P900, with which the user can surf the internet, receive and reply to e-mails, synchronise it with his/her calendar etc), and PDA's (Personal Digital Assistant based on the Symbian platform, i.e. the Pocket PC type of PDA's) as a remote control and without the need of a laptop.

	
The InfraBlue technology can be used for the production of two different versions to cater to different markets; one where the transfer of information is done via an infrared connection (IrDa) and another where it is done via Bluetooth version (BT).  The latter will become the primary version in the years to come.

The key features for the InfraBlue are as follows:

	PowerPoint presentations: using your PDA or smart phone as a wireless remote control.

	Slide show outline: With InfraBlue, upcoming slides are visible in advance on the PDA or smart phone, i.e. before shown on the screen, so it gives the person doing the presentation great flexibility; not all slides may be relevant for all audiences.

	Instant photo display: today smart phones and PDA often come with built-in cameras (or such can be bought separately and easily attached when needed).  Photos taken with them can then be transferred directly via the device to the projector.

	"Screen capture" display: Practical in for instance demonstrations - "how to use the smart phone or PDA".

	Stand-alone ability: Convenient for exhibitions, fairs, shop windows, info kiosks etc.

MARKET DEFINITION

The Company does not intend to sell its products directly to the consumers.  The Company's primary distribution channels will be outlets for consumer electronics, resellers and distributors of mobile phones, PDA's, data projectors, electronic equipment and related accessories worldwide, as well as OEM relationships that will see the InfraBlue technology being embedded into other equipment.  These distribution channels will then sell the InfraBlue device to the end user.

The target consumer will be the "mobile professionals" - business people who travel frequently and have to give presentations frequently.  The market for this kind of product (both smart phones, PDA's and data projectors) has already proven to be a multi-million market, and it is the aim and ambition of the Company to claim a major segment of this market.

MARKETING AND SALES STRATEGY

In terms of the company's strategic plan, the Company is being launched to market in partnership with suitable resellers and exploiters.  The purpose of such a partnership being to:

Accelerate the market acceptance of InfraBlue through harnessing the credibility and business networks of the partners, OEM's etc

Gain access to as many markets as fast as possible utilising resellers in Asia, Australia, US and Europe

Benefit from the partner's sales and marketing resources

To accelerate the Company's growth, reseller agreements has been entered into with the following resellers-

	
USA & Canada -

Australia -

India -

Europe-
	
Mir Technologies LLC

Zacan Holdings Proprietary Limited

HBI Sales Private Limited

ICT/Europetec Limited

	
REVENUE

The Company's revenue is generated from sales of devices to wholesalers and distributors of mobile phones, PDA's, data projectors, electronic equipment and related accessories worldwide as well as license fees from OEM agreements and associated royalty payments.

With minimal competition operating in this market, the company aims to establish itself as a market leader and with a relative high margin on the InfraBlue product, the Company aims to become cash positive within the first year of operation

	
IN WITNESS WHEREOF the parties have executed this instrument as a deed and have delivered it upon dating it.

	
EXECUTED As A Deed By

HBI SALES PRIVATE LIMITED

Acting By

A Director And By

A Director/Secretary

In The Presents Of

Witness Signature  /s/ Lone Christensen

Name  Lone Christensen                   

Address 1 Court Royal                      

              London  SW152B2              

Occupation  PA                                 
	
)

)

)

)

)

	

/s/ Peter Hilton

.........................................................

Director

..........................................................

Director/Secretary

	
EXECUTED As A Deed By

ZACAN HOLDINGS PROPRIETARY LIMITED

Acting By

A Director And By

A Director/Secretary

In The Presents Of

Witness Signature

Name .................................................

Address ...............................................

               ...............................................

Occupation ...........................................
	
)

)

)

)

)

	

/s/ Bob Spears

.........................................................

Director

..........................................................

Director/Secretary

	
EXECUTED As A Deed By

ICT/EUROTETEC LIMITED

Acting By

A Director And By

A Director/Secretary

In The Presents Of

Witness Signature

Name .................................................

Address ...............................................

              ...............................................

Occupation ...........................................
	
)

)

)

)

)

	

.........................................................

Director

/s/ John Bailey

..........................................................

Director/Secretary

	
EXECUTED As A Deed By

MIR TECHNOLOGIES LLC

Acting By

A Director And By

A Director/Secretary

In The Presents Of

Witness Signature  /s/ Rebecca Poncini

Name  Rebecca Poncini                    

Address 7131 Spices Drive               

              Citeus Heights CA 9521      

Occupation  Engr. Tech                     
	
)

)

)

)

)

	

/c/ Tim Cocker

.........................................................

Director

..........................................................

Director/Secretary

	
EXECUTED As A Deed By

INFRABLUE LIMITED

Acting By

A Director And By

A Director/Secretary

In The Presents Of

Witness Signature  /s/ Simon Lovejoy

Name  Simon Lovejoy                       

Address 19A  Woodville Road          

              Brent Cross                         

Occupation  Graphic Designer          
	
)

)

)

)

)

	

/s/ Mitchell Johnson

.........................................................

Director

..........................................................

Director/SecretaryInfraBlue (US) Inc. - Exhibit 10.2

Exhibit 10.2

	
THIS AGREEMENT is made the 1st day of April 2004

B E T W E E N :-

	
1)
	
The Company specified in the Schedule hereto ("the Company")

and

	
2)
	
The person specified in the Schedule hereto ("the Officer")

	
3)
	
The Owner specified in the Schedule hereto ("the Owner")

	
W H E R E A S :-

	
(A)
	
The Company carries on the business shown in the Schedule hereto ("the Business") from the premises shown in the Schedule hereto ("the Premises")

	
(B)
	
It has been agreed that the Company will employ the Officer who will serve the Company upon the terms and conditions hereinafter contained

	
NOW IT IS HEREBY AGREED as follows:-

	
1.
	
THE Company will employ the Officer and the Officer will serve the Company in accordance with his job title and specific responsibilities detailed in the Schedule hereto at the Premises/or such other place of work and subject to the directions of the Owner, its authorised agents and representatives of the Company

	
2.
	
THE Officer hereby agrees that he will devote all of his time and attention and give his best effort and skills exclusively to the Business and interests of the Company and that he will perform such services in and about such business of the Company as may from time to time be assigned to him and will do his utmost to further enhance and develop the best interests and welfare of the Company in all respects

	
3.
	
THE Officer's date of commencement of employment is shown in the Schedule hereto and his employment will continue until termination as hereinafter provided.

	
4.
	
THE remuneration of the Officer per annum is shown in the Schedule hereto

	
5.
	
THE Officer will be required to carry out his duties when and where required by the Owner hereunder from Monday to Friday (inclusive) during normal working hours of the Business and such further time as the Company will reasonably require The parties acknowledge that the Officer has autonomous decision-taking powers and that he is able to determine the duration of his own working time, and that, as a result, the exemptions available in Regulation 20 of the Working Time Regulations 1998 will apply

	
6.
	
DURING the continuance of his employment hereunder the Officer will devote his whole time and attention to the Business of the Company and will do all in his power to promote, develop, extend and represent the Business of the Company and will at all times and in all respects conform to and comply with the directions and regulations made by the Owner Board or Superior Officers of the Company and also will not without the previous consent in writing of the Owner and or Director duly authorised by Resolution of the Board:-

	 	
(1)
	
engage in any other business  or

	
1

	 	
(2)
	
be concerned or interested in any other business  of  a  similar  nature  to or competitive with that carried on by the Company

	
8.
	
THE Officer will  (in addition to the usual Public and Bank Holidays) be entitled to  the  number of weeks holiday in each year shown in the Schedule hereto such holiday to be taken at a time or times convenient to the Company.  No more than two weeks holiday may be taken at any one time unless the Officer has obtained approval of a Owner or a Director.  The Company's holiday year begins on 1 January and no holiday entitlement may be carried forward from one year to another but must be taken in the appropriate year.  For service of less than one year holiday entitlement will accrue pro rata the number of calendar months of service completed

	
9.
	
THE employment of the Officer hereunder will be determined forthwith by the Company without payment in lieu of notice if:-

	 	
(1)
	
he is guilty of any gross default or misconduct in connection with or affecting the Business of the Company or any breach or non-observance of any of the terms and conditions herein contained;

	 	
(2)
	
he becomes bankrupt;

	 	
(3)
	
he shall be convicted of an indictable offence other than an offence under the Road Traffic Acts;

	 	
(4)
	
he shall have been unable to fulfil his duties hereunder through illness or mental disability or other cause for an aggregate period exceeding 2 weeks in any period of 13 weeks or a consecutive period of 3 weeks;

	 	
(5)
	
while he is a patient within the meaning of the Mental Health Act 1983;

	
10.
	
THE Officer acknowledges that he will appear on the Company's burglar alarm keyholder list and if called upon by the police will attend the Premises to neutralise the alarm

	
11.
	
THE Officer hereby agrees and undertakes with the Company that he will not either solely or jointly with or as employee or agent for any other person or firm either directly or indirectly:-

	 	
(1)
	
Reveal to any person firm company or third party whatsoever any of the trade secrets secret or confidential operations process of dealings or any other information concerning the organisation business finances transactions affairs suppliers or customers of the Company which may come to his knowledge and  will keep with complete secrecy all confidential information entrusted to him and shall not use or attempt to use any such information in any manner which may injure or cause loss either directly or indirectly to the Company or its Business or may be likely to do so.  This restriction will continue to apply after the termination of this Agreement without limit in point of time

	 	
(2)
	
Within a period of six months after the termination of this Agreement (howsoever caused) in connection with any business similar to that carried on by the Company at the date of such termination solicit the custom of or deal with any person firm or company who at any time during the three years preceding such termination (or the Officer's employment hereunder whichever is the shorter) has been an Agent or Client of the Company or entice employees of the Company to be employed by him or to employ any person firm or company who at any time during the three years preceding such termination has been an employee of the Company

	
2

	 	
(3)
	
Forthwith upon the termination of this Agreement  (howsoever caused) deliver to the Company all documents including correspondence lists of customers notes memoranda plans drawings and other documents of what-so-ever nature made or compiled by him and concerning the business finances dealings transactions products or affairs of the Company.  For the avoidance of doubt it is hereby declared that the property in all such documents as aforesaid shall at all times be vested in the Company

	 	
(4)
	
Each of the above sub-clauses is given as a separate and distinct agreement and the invalidity or unenforceability of any one or more of the sub-clauses will not affect the validity or enforceability of the remainder

	
12.1
	
THE Officer AGREES that any invention discovery design or improvement made by him at any time since the commencement of his employment with the Company and/or during the continuance of his appointment hereunder and in any way connected with the Business or applicable to the products manufactured and/or sold by or the methods of manufacture of such products by the Company belongs to the Company and that he will forthwith disclose the same to the Company and that:-

	 	
(i)
	
he will not without the written consent of the Company apply for Letters Patent in the United Kingdom or in any part of the world for any invention discovery design or improvement so made by him;

	 	
(ii)
	
he will if and whenever required so to do by the Company apply as nominee of the Company or join with it in applying for Letters Patent in the United Kingdom or in any other part of the world for any invention discovery design or improvement so made by him as the Company shall in its sole discretion decide and will at all times sign all such documents and do all such things as may be requisite and desirable to vest the said Letters Patent when granted and all the rights title and interest to and in the same in the  Company absolutely as sole beneficial owner or as the Company may direct

	
12.2
	
The Company will pay all expenses in connection with such applications for Letters Patent made by the Officer as nominee for or jointly with the Company pursuant to sub-clause (i) hereof and will hold him indemnified against all liabilities in connection with or arising out of such applications or Letters Patent when granted

	
12.3
	
The expression "Letters Patent" in this Agreement shall mean and include letters patent brevet d'intervention petty patent gebrauchmuster utility model design registration or any other form of protection for any invention discovery design or improvement that can be obtained in the United Kingdom or in any other part of the world

	
13.
	
PURSUANT to Section 3(1)(b)(ii) of the Employment Rights Act 1996 ("the Act") the Company hereby notifies the Officer should he have any grievance relating to his employment he should give notice in writing to the Board or their nominee for the time being setting out the details of such grievance. The Board of Directors' decision, or that of their nominee, in relation to such grievance will be final and binding and will be communicated to the Officer in writing

	
14.
	
ANY notice hereunder may be served by sending the same through the post addressed in the case of the Company to its registered office for the time being and in the case of the Officer to his aforesaid address or such other address as he will  have given to the Company for service upon him.  Any notice served pursuant to this Clause shall be deemed to have been served twenty four hours after the time of posting by first class mail and service thereof shall be sufficiently proved by proving that the notice was duly dispatched through the post in a prepaid envelope addressed as aforesaid

	
3

	
15.
	
THE employment of the Officer will also be subject to the terms set out in paragraph 2 of the Schedule hereto which is added in accordance with the requirements of the Act

	
16.
	
The Owner shall indemnify and hold harmless the Officer from and against any judgments, losses, damages, liabilities, costs or expenses of any kind attributable to any employment in the Company arising from: (i) any breach or claimed breach of the Company representations and warranties; (ii) damage to the Company's products (iii) any lawsuit resulting from disputes with clients or any other third parties (v) any third party claim or action brought against an Indemnified Party alleging that any Products or any portion thereof (a) infringes, misappropriates or violates in any manner, any Intellectual Property Right, right of publicity, right of privacy, moral right, or any other proprietary right of a third party; or (b) contains material or information that is fraudulent, deceptive, misleading, obscene, defamatory, trade libelous, libelous, slanderous, or unlawfully harassing or injurious, or is in violation of personal or property rights, regulation or law, or other common law or statutory rights.

	
17.
	
ANY obligation or duty of the Officer in favour of the Company shall likewise be an obligation or duty of the Officer in favour of any associated or subsidiary company of the Company

	
IN WITNESS whereof these presents have been executed the day and year first above written

	
SIGNED for and on behalf of

The Company 

	

/s/ Garth Hochong

____________________________________________

 

	
Signed for and on behalf of 

The Owner  

 
	

/s/ Garth Hochong       P.A. Garth Hochong

____________________________________________

 

	
SIGNED by the Officer

	

/s/ Mitchell Johnson

____________________________________________

 

	
4

	 

	
THE SCHEDULE

	 	
The Company  -  
	
Infrablue Ltd whose registered address is at 27 New Bond Street, London W1S 2RH

	 	
The Officer  -
	
Mitchell Johnson

	 	
The Owner -
	
Public Lock Inc whose registered address is at P.O. Box 556, Main Street, Charlestown, Nevis

	 	
The Business -
	
The exploitation and distribution of software technologies

	 	
The Premises -
	
130 Shaftesbury Avenue, London W1D 5EU, United Kingdom

	
2.
	
In accordance with Section 1(4) of the Act the following terms of the Officer's employment apply on the date of the Agreement to which this is a schedule

	 	
(a)
	
Date of commencement of employment with the Company: TBC

	 	
(b)
	
Job title:  Managing Director

	 	
(c)
	
Remuneration:  L 28,000 per annum paid monthly, plus participation in the Company's option scheme. The option scheme will be negotiated in a separate agreement.   

	 	
(d)
	
Hours of work: 9.00am - 6.00pm, Monday to Friday (inclusive) less one hour for lunch but the Officer may be required to work outside these hours without additional payment at Company's discretion and at such other premises as the Board may direct

	 	
(e)
	
Holidays: the Officer is entitled to 4 weeks holidays with pay on a pro rata basis during the first year of the employment

	 	
(f)
	
Specific responsibilities:

	 	 	
3.1
	
Use best effort to ensure the exploitation of the various technologies allocated to the Company

	 	 	
3.2
	
Implement a sales and marketing strategy for the Company

	 	 	
3.3
	
Work with the attorney and accountant to ensure proper company documentation

	 	 	
3.4
	
Ensure adequate cash flow for smooth running of the business

	 	 	
3.5
	
Aim to achieve the targeted profitability as reflected in the budget

	 	 	
3.6
	
Maintain and monitor the service level agreements to ensure adherence to contract

	 	 	
3.7
	
Act in good faith as a employee to the Company in the Company's best interests;

	 	 	
3.8
	
Carry out any other duties reasonably required by the Company befitting to the employment status and which are in the Company reasonable opinion complementary to or beneficial for the proper fulfilment of his duties hereunder.

	 	
(g)
	
Sickness or injury: If you are absent from work on a day on which you are required to be available for work you must in the morning of the first day of absence telephone or arrange for a friend or relative to telephone the Board's nominee.  If absent for more than one day but less than 7 days a "self-

	
5

	 	 	
certificate" must be produced.  This will comprise of notification in writing giving wherever possible  details of symptoms.  If absent for more than 7 days a Doctor's certificate must be produced.

Qualifying days for which statutory sick pay will be payable are days of the working week on which you are required by this Contract to be available for work

The Company operates its own sick pay schemes as well as the SSP scheme and the qualifying periods of service and scale of benefits

	 	 	
Continuous Service

Up to 6 months

6-12 months

1-4 years

4 plus years

	
Payment during illness

Nil

1 week on full pay

2 weeks on full pay

4 weeks on full pay

	 	 	
The above voluntary payments are inclusive of SSP

Odd days reported sickness will count towards the total paid absence allowed each year

	 	
(h)
	
Notice:

Subject to the provisions of Clause 9

	 	 	
(i)
	
By the Company and Officer where the employment has lasted:-

	 	 	 	
1 week - 3 months
	
- 1 week

	 	 	 	
3 months +
	
- 30 days

	 	
In accordance with Section 197(3) of the Act the Officer waives his right or entitlement to any payment under that Act in respect of the termination of his appointment hereunder by effluxion of time

The Officer hereby agrees that no claim or rights shall arise in relation to this Agreement under Section 94 of the Act in respect of the termination of his appointment hereunder by effluxion of time

In the event that the Company provides written notice to the Officer the Company may elect to terminate the employment of the Officer immediately with pay

	
3.
	
The following information is supplied pursuant to the Act and reflects the Company's current practice

	 	
(a)
	
Disciplinary rules - You are subject to the directions of the Board or its nominee

	 	
(b)
	
Grievance procedure - See Clause 13

	 	
(c)
	
Appeals procedure - None

	 	
(d)
	
Pensions - a contracting-out certificate is not in force in respect of this employment - State scheme applies.

	 	
(e)
	
Union Membership - No restrictions

	 	 	 
	
6

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