Document:

EXHIBIT 4.3

 

 

Executive
service agreement – Mr John M Stewart

 

 

WITHOUT PREJUDICE

 

SUBJECT TO CONTRACT

 

THIS AGREEMENT is made

 

BETWEEN:

 

NATIONAL AUSTRALIA GROUP EUROPE
LIMITED  whose
registered office is situated at 88 Wood Street, London EC2V 7QQ (“the
Company”);

 

and

 

JOHN STEWART of Westdown Farm, Shipley Hills Road, Meopham, Kent DA13 0JP (the
“Executive”)

 

IT IS AGREED as follows:

 

1              APPOINTMENT

 

1.1           The
Company shall employ the Executive and the Executive shall serve the Company as
Managing
Director and Chief Executive Officer (“CEO”) National Australia Group Europe,
and Executive Director National Australia Bank Principal Board (the
“Position”) on and subject to the terms of this Agreement.

 

2              COMMENCEMENT
AND EMPLOYMENT

 

2.1           Subject
to Clauses 2.2, 2.3 and 14, the Employment shall commence no later than 1
September 2003.  The Employment shall
continue for an initial three year term and shall continue thereafter on a
rolling annual basis, unless otherwise expressly agreed in writing between the
Executive and the Company.

 

2.2           The
Employment may be terminated at any time by 12 calendar months’ written notice
of termination from the Company to the Executive or by 3 calendar months’
written notice of termination from the Executive to the Company.

 

2.3           Notwithstanding
the terms of Clause 2.1 and 2.2, the Employment shall automatically terminate
when the Executive reaches age 60.

 

2.4           The
Executive’s period of continuous employment will begin on the Commencement
Date. No previous employment with any other employer shall be treated as
continuous with the Employment.

 

 

3              DUTIES

 

3.1           The
Executive shall be employed in the Position in which capacity he shall devote
all his time, attention and skill to his duties hereunder and shall faithfully
and diligently perform such duties and exercise such powers consistent
therewith as may from time to time be assigned to or vested in him by the
Company.

 

3.2           The
Company reserves the right to assign to the Executive duties of a different
nature either additional to or instead of those referred to in Clause 3.1
above, it being understood that he will not be assigned duties which he cannot
reasonably perform or which would involve a reduction in status.

 

3.3           The
Executive shall obey the reasonable and lawful orders of the Company, given by
or with the authority of the Company, and shall comply with all the Company’s
rules, regulations, policies and procedures from time to time in force.

 

3.4           The
Executive may be required in pursuance of his duties to perform services not only
for the Company but also for any Group Company and, without further
remuneration (except as otherwise agreed), to accept any such office or
position in any Group Company which is consistent with his position with the
Company, as the Company may from time to time reasonably require. The Company
may at its reasonable discretion assign the Executive’s employment to any Group
Company on the same terms and conditions as set out herein.

 

3.5           The
Executive shall keep the Company Board and the Principal Board promptly and
fully informed (in writing if so requested) of his conduct of the business of
the Company and any Group Company and provide such explanations in connection
therewith as the Board may require.

 

3.6           The
Executive’s normal working hours shall be 9.00am to 5.00pm Monday to Friday,
and such additional hours (without further remuneration) as are necessary for
the proper performance of his duties of employment (including any such hours
which exceed the maximum weekly working time limit of 48 hours imposed by the
Working Time Regulations 1998 or any re-enactment thereof).

 

4              EXCLUSIVITY
OF SERVICE

 

4.1           The
Executive shall not (without the prior written consent of the Company) during
the Employment directly or indirectly be interested in, engage in, be concerned
with, or provide services to, any other person, company, business entity or
other organisation whatsoever (whether as an employee, officer, director,
agent, partner, consultant or otherwise) PROVIDED THAT the Executive may hold
up to 5% of any securities in a company which is quoted on any recognised Stock
Exchange.

 

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4.2           Subject
to any written regulations issued by the Company which may be applicable to the
Employment and/or to the Position, neither the Executive nor his Immediate
Relatives shall be entitled or permitted to receive or obtain directly or
indirectly any discount, rebate, commission or other benefit in respect of any
business transacted (whether or not by the Executive) by or on behalf of the
Company or any Group Company.  If the
Executive, his Immediate Relatives or any company or business entity in which
the Executive is interested, shall directly or indirectly obtain any such
discount, rebate, commission or other benefit he shall forthwith account to the
Company or Group Company for the amount received or value of the benefit so
obtained.

 

4.3           The
Executive confirms that he has disclosed fully to the Company all circumstances
in respect of which there is, or there might be, a conflict of interest between
the Company or any Group Company, and the Executive or his Immediate Relatives,
and he agrees to disclose fully to the Company any such circumstances which may
arise during the Employment.

 

5              REMUNERATION

 

5.1           The
Company shall pay to the Executive a fixed remuneration of £485,000 per annum (“Basic
Salary”), payable monthly in arrears by equal instalments. The Executive’s
Basic Salary will be reviewed on 1st January each year and the first review
will be 1st
January 2004. There is no obligation on the part of the Company to
increase the Basic Salary on any review but it shall not be decreased. The
Executive is eligible to receive various benefits in addition to Basic Salary
in accordance with Clause 8 and with relevant Company policies and practices.

 

5.2           The
Executive shall also be eligible to participate in the Company’s Economic Value
Added (EVA) Incentive Plan (“the Incentive Plan”), as outlined in Schedule 1.
The annual target incentive opportunity (and the basis for its calculation)
will be determined in each plan year in accordance with the rules of the
Incentive Plan and Company practice. For the 2002/2003 Plan year, (ending 30
September 2003) the target incentive opportunity will be 100% of the Executive’s Basic
Salary prorated in respect of the period from the Commencement Date to 30
September 2003. The 2002/2003 payment will be adjusted under the rules of the
Incentive Plan to reflect both global Group Company performance, and individual
performance (including objectives focussed on UK business performance). Further
details regarding the Incentive Plan are available on request.

 

6              EXPENSES

 

The Company shall reimburse to the
Executive (subject to production by the Executive of such receipts or other
satisfactory evidence as the Company may require) all reasonable business
expenses properly incurred and defrayed by him in the course of the Employment.

 

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7              DEDUCTIONS

 

The Company shall be entitled at any time
during the Employment, and/or on termination (howsoever arising), to deduct
from the Executive’s remuneration in terms of this Agreement any monies due
from him to the Company or any Group Company including but not limited to any
overpayments, outstanding loans, advances, relocation expenses, holidays taken
in excess of accrued entitlement and any other monies owed by him to the
Company or any Group Company.

 

8              BENEFITS

 

8.1           In
addition to Basic Salary,  the Executive will be entitled to the
benefits as outlined in Schedule 2.

 

8.2           The
Executive will be eligible to participate in the National Australia Bank
Executive Share Option Plan No.2 (“the Option Plan”) and the National Australia
Bank Performance Rights Plan (“the Performance Rights Plan”) in accordance with
the rules of the Option Plan and the Performance Rights Plan as applicable from
time to time. Subject to any legal or regulatory requirements, including under
relevant stock exchange listing rules, the Company will, in March 2003, procure
that National Australia Bank Limited offers the Executive the right to be
granted 125,000
options under the terms of the Option Plan rules and the
right to obtain 31,250 performance rights under the terms of the Performance
Rights Plan rules.

 

The Executive may be invited to participate
in the Option Plan and the Performance Rights Plan in other years, although
participation in the Option Plan and the Performance Rights Plan is entirely at
the discretion of the Company.

 

These Option Plan rules and the Performance
Rights Plan rules will be provided to the Executive upon commencement of
Employment.

 

9              PLACE
OF WORK

 

9.1           The
Executive’s normal place of work shall be at the Company’s London head office.

 

9.2           In the
performance of his duties hereunder, the Executive will be required to travel
and work both throughout and outside the United Kingdom and in particular he
will be required to travel to and work in Australia in the course of his
employment. The Executive may be required to work overseas for periods in
excess of one month at any one time.

 

10           SICKNESS
BENEFITS

 

10.1         The
Company reserves the right to require the Executive to undergo, at the
Company’s expense, a medical examination by a doctor or consultant nominated by
it.

 

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10.2         If the
Executive is absent from work due to sickness or injury he shall:

 

(a)           immediately
inform the Company of his sickness or injury;

 

(b)           in
respect of a consecutive period of absence lasting less than 8 days (including
weekends), send to the Company a self-certification form in a format stipulated
by the Company; and

 

(c)           in
respect of any absence exceeding 7 consecutive days (including weekends), send
to the Company a medical certificate signed by a doctor covering the whole
period of absence.

 

10.3         Subject
to the Executive complying with the terms of Clause 10.2, the Company will
continue to pay full Basic Salary during any period of absence due to sickness
or injury for up to a maximum period of 90 days and thereafter a sum equivalent
to 50% of Basic Salary during any further period of absence due to  sickness
or injury for up to a maximum period of a further 90 days (both periods in a
single period of one year), unless the Employment is terminated in terms of  Clauses
2.2, 2.3 or 14.

 

10.4         Payment of Basic Salary in
terms of Clause 10.3 shall be made less:

 

(a)           an
amount equivalent to any Statutory Sick Pay, and any other benefits under any
relevant legislation, received by the Executive; and

 

(b)           any
sums which may be received by the Executive under any permanent health or other
insurance policy effected by the Company or otherwise under the terms of this
Agreement.

 

10.5         Once the
Executive has received sick pay under Clause 10.3,  the Executive shall have no  right
to  any
benefit or emolument from the Company during any further period of sickness
absence except any remaining entitlement to  Statutory Sick Pay and to any permanent
health insurance benefit.

 

10.6         Where
any payments are made to the Executive under any permanent health insurance
scheme or arrangement all other benefits provided to or in respect of the
Executive by the Company will cease immediately (if they have not done so
already) except those benefits for which the Company received reimbursement in
full of the total cost to it of the benefit, from the insurer under the
appropriate scheme or arrangement.

 

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11           HOLIDAYS

 

11.1         The
Executive shall be entitled to receive his Basic Salary and contractual
benefits in terms of this Agreement for  all Bank and Public holidays applicable
to employees in the United Kingdom, as detailed in the NAG Employee
Handbook.  He will also be entitled to
Basic Salary and such contractual benefits for 30 working days’ holiday in each
holiday year (the period from 1 March to end February). The Executive may only
take his holiday at suitable and convenient times to the Company.

 

11.2         The
Executive’s entitlement to  holiday during the first and last years
of the Employment shall accrue on a pro rata basis for each complete month of
service in the holiday year.

 

11.3         The
Company shall, upon termination of the Employment, make payment in lieu of any
outstanding holiday which has accrued but has not been taken by the
Executive.  The Executive will be
required to make a payment to the Company in lieu of any holiday taken in
excess of the Executive’s accrued holiday entitlement at the date of
termination of Employment.  Any sums due
may be deducted from any money owing to the Executive.

 

11.4         The
Executive may, with the consent of the Company, carry forward a maximum of 10
days’ holiday from one holiday year to the next.  Subject to this, holiday entitlement for one holiday year cannot
be taken in subsequent holiday years and failure to  take holiday entitlement in
the appropriate holiday year will lead to forfeiture of any accrued holiday not  taken,
without any right to payment in lieu thereof.

 

12           PENSION

 

12.1         The
Company shall pay annual contributions to a personal pension scheme nominated
by the Executive and approved under Chapter IV of Part XIV of the Income and
Corporation Taxes Act 1998 (the “Scheme”). The Executive shall provide to the
Company such particulars of the Scheme which is to apply for the purposes of
this clause and such other information in relation to the Scheme as the Company
may reasonably require from time to time. The contribution shall be paid to the
Scheme on or about the anniversary of the actual commencement date in each year
of employment and in respect of part years of employment the Executive shall be
entitled to a pro rata contribution.

 

The Company’s contributions, subject to the
following paragraph, will be an amount equal to 25% of the Executive’s basic
salary. However, this is subject to any Inland Revenue restrictions from time
to time in force on the amount that may be contributed without tax being
charged or other adverse tax consequences. Inland Revenue restrictions
currently specify a maximum annual contribution as a percentage of the
Executive’s relevant earnings in respect of the appropriate year of assessment
(having regard to any contributions to the scheme or to any other arrangement
paid by the Executive) (as mentioned in section 640 of the Income and
Corporation Taxes Act 1988), and an earnings cap applied as at the date of
payment of the contribution (pursuant to section 640A of the Income and
Corporation Taxes Act 1988).

 

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If the amount that can be contributed to
the Scheme in accordance with Inland Revenue restrictions (the “Approved Contribution”)
is less than 25% of the Executive’s basic salary in any appropriate year of
assessment (“the Total Contribution”), the Company shall pay a sum equal to the
difference between the Total Contribution and the Approved Contribution by way
of an additional payment of annual salary in any appropriate year of
assessment. The Company shall not be liable for any tax liability incurred by
the Executive in respect of such payments.

 

12.2         A
contracting-out certificate under the Pension Schemes Act 1993 is not in force
in respect of the Employment.

 

 

13           CONFIDENTIALITY

 

13.1         The
Executive shall neither during the Employment nor at any time after the
termination thereof (howsoever arising) directly or indirectly: -

 

(a)           use
for his own purposes or those of any other person, company, business entity or
other organisation whatsoever; or

 

(b)           disclose
to any person, company, business entity or other organisation whatsoever; or

 

(c)           through
any failure to exercise due care and diligence, cause any unauthorised disclosure
of,

 

any trade secrets or Confidential
Information relating or belonging to the Company or any Group Company.

 

13.2         “Confidential
Information” means details of suppliers and their terms of business,
details of customers and their requirements, the prices charged to and terms of
business with customers, marketing plans and sales forecasts, financial
information, results and forecasts (save to the extent that these are included
in published audited accounts), any proposals relating to the acquisition or disposal
of a company or business or any part thereof or to any proposed expansion or
contraction of activities, details of employees and officers and of the
remuneration and other benefits paid to them, information relating to research
activities and product lines, any information held on computer, any document
marked confidential, any information which the Executive is told is
confidential and any information which has been given to the Company or any
Group Company in confidence by customers, suppliers or other persons.

 

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13.3         Nothing in Clause 13.1 above
shall prevent the Executive from:-

 

(a)           using
his own personal skills and expertise after the termination of his employment
with the Company;

 

(b)           using
or disclosing such information for the proper performance of his duties or as
authorised by the Company;

 

(c)           making
a protected disclosure under the Public Interest Disclosure Act 1998; or

 

(d)           disclosing
such information if required to do so by a Court or similar authority.

 

13.4         The
obligations contained in Clause 13.1 above shall continue to apply without
limitation of time following the termination of the Employment, howsoever
arising, but they shall cease to apply to any information or knowledge which may
subsequently come into the public domain other than by way of unauthorised
disclosure by the Executive.

 

14           TERMINATION

 

14.1         Notwithstanding
Clause 2 above, the Company may terminate the Employment with immediate effect
and without any payment in lieu of notice if the Executive is guilty of gross
misconduct (including, but not limited to, conduct identified in the NAG
Employee Handbook as constituting gross misconduct) or gross incompetence
(justifying summary dismissal at common law) or wilful neglect of duty or, if
he commits any other serious breach of this Agreement; or

 

(a)           acts
in any manner (whether in the course of performing his duties or otherwise)
which is likely to bring the Executive, the Company or any Group Company into
disrepute; or

 

(b)           is
convicted of an indictable criminal offence; or

 

(c)           becomes
bankrupt, applies for or has made against him a receiving order, or makes any
composition with his creditors ; or

 

(d)           resigns
as a director of the Company or any Group Company (without the Company’s
written consent); or

 

(e)           is
guilty of continuing misconduct or material breach of the terms of this
Agreement, after having received a written warning from the Company relating to
the same; or

 

(f)            is
disqualified from being a director by reason of any order made under the
Company Directors Disqualification Act 1986 or any other enactment; or

 

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(g)           is
guilty of any breach or non-observance of any code of conduct, rule or
regulation referred to in Clause 19; or

 

(h)           fails
to comply with the requirements referred to in Clause 20.1 or ceases to be
assessed as competent as referred to in Clause 20.2.

 

The above grounds are given by way of
illustration only and are not an exhaustive list of reasons for summary
dismissal.  Any delay by the Company in
exercising such right of termination shall not constitute a waiver thereof.

 

14.2         Notwithstanding
Clauses 2.1 and 2.2, the Company may terminate the Employment by giving, in
writing, not less than statutory notice, if the Executive has been prevented by
reason of ill health, injury or some other reason beyond his control, from
performing his duties under this Agreement for a period or periods aggregating
at least 180 days in the preceding period of twelve consecutive months save
that, if it is a condition of eligibility for payments under the permanent
health scheme which the Company maintains and in which the Executive
participates from time to time in terms of Schedule 2, that the Executive is an
employee of the Company, the Company shall not terminate the Employment by
reason of ill health, injury or incapacity, where to do so would jeopardise the
Executive’s expectation of receipt of any payment or benefit under such
permanent health insurance scheme. 
Nothing in this Clause 14.2 shall affect the Company’s ability to
terminate the Employment for a reason other than ill health, injury or
incapacity, (including termination in terms of Clause 14.1 or in the event of
redundancy of the Executive) or the automatic termination of the Employment in
terms of Clause 2.3.

 

14.3         On the
termination of the Employment, howsoever arising, the Executive shall forthwith
return to the Company in accordance with its instructions all correspondence,
records, specifications, software, models, notes, reports and other documents
and any copies thereof and any other property belonging to the Company or any
Group Company or any of its or their clients (including but not limited to the
Company’s car, keys, credit cards, passes) which are in his possession or under
his control.

 

14.4         The Company shall be entitled
at its sole discretion:

 

(a)           to
terminate the employment immediately either instead of or at any time after
notice of termination has been given (by either the Company or the Executive)
and pay the Executive in lieu of Basic Salary and of contractual benefits in
terms of this Agreement only (but excluding any bonus or incentive) to which
the Executive would have been entitled during any notice period outstanding on
the last day of Employment (provided, for the avoidance of doubt, that the
right of the Company to make a payment in lieu of notice, does not give rise to
any right of the Executive to receive such a payment); or

 

9

 

(b)           to
require the Executive not to attend at work and/or not to undertake any work or
duties and/or to carry out different duties commensurate with his status during
any period of notice (whether given by the Executive or the Company).  For the avoidance of doubt during any period
during which the Executive is so required not to attend at work and/or not to
undertake any work or duties and/or to carry out such different duties;

 

(i)            the
Executive may be required to refrain from contacting any employee or client of
the Company or Group Company and will not be permitted to work either on his
own or for any other person or business; and

(ii)           the
Executive shall continue to receive his Basic Salary and contractual benefits
in terms of this Agreement (but excluding any bonus or incentive).

 

14.5         The
termination of the Employment shall be without prejudice to any right the
Company may have in respect of any breach by the Executive of any of the
provisions of this Agreement which may have occurred prior to such termination.

 

15           RESTRICTIONS
AFTER TERMINATION

 

15.1         Definitions

 

Since the Executive is likely to have
access to Confidential Information in the course of the Employment and to gain
personal knowledge of and influence over suppliers, customers, clients and
employees of the Company and Group Companies, the Executive hereby agrees with
the Company that in addition to the other terms of this Agreement and without
prejudice to the other restrictions imposed upon his by law, he will be bound
by the covenants and undertakings contained in Clauses 15.2 to 15.5. In this
Clause 15, unless the context otherwise requires:

 

“Confidential Information” is as defined in Clause 13.2;

 

“Critical Employee”
means any person who was a director or employee of the Company at any time within
the Relevant Period who by reason of his position as director or employee and
in particular his seniority and expertise or knowledge of Confidential
Information or knowledge of or influence over the clients, customers or
contacts of the Company would be likely to cause damage to the Company if he
were to leave the employment of the Company and become employed by a competitor
of the Company;

 

“Customer” means
any person to which the Company distributed, sold or supplied Restricted Goods
or Restricted Services during the Relevant Period and with which, during that
period either the Executive, or any employee under the direct or indirect
supervision of the Executive, had material dealings in the course of employment
with the Company, but always excluding therefrom, any division, segment, branch
or office of such person with which the Executive and/or any such employee had
no dealings during that period;

 

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“Prospective Customer” means any person with which the Company had discussions during the
Relevant Period regarding the possible distribution, sale or supply of
Restricted Goods or Restricted Services and with which during such period the
Executive, or any employee who was under the direct or indirect supervision of
the Executive, had material dealings in the course of employment by the
Company, but always excluding therefrom any segment, division, branch or office
of that person with which the Executive and/or any such employee had no
dealings during that period;

 

“Relevant Period”
means the period of one year immediately preceding the Termination Date;

 

“Restricted Goods”
means any products by the Company and with which the duties of the Executive
were materially concerned or for which he was responsible during the Relevant
Period, and/or any products of the same type or materially similar to those
products;

 

“Restricted Period”
means the period of 6 months commencing on the Termination Date;

 

“Restricted Services” means any services (including but not limited to technical and
product support, technical advice and customer services) supplied by the
Company and with which the duties of the Executive were materially concerned or
for which he was responsible during the Relevant Period, or any services of the
same type or materially similar to those services;

 

“Supplier” means
any supplier, agent, distributor or other person who, during the Relevant
Period was in the habit of dealing with the Company and with which, during that
period, the Executive, or any employee under the direct or indirect supervision
of the Executive, had material dealings in the course of employment with the
Company; and

 

“Termination Date”
means the date upon which the Employment terminates.

 

15.2         Restrictive covenants

 

The Executive confirms that, neither during
the Employment nor during the Restricted Period, without the prior written
consent of the Company, whether by himself, through his employees or agents or
otherwise and whether on his own behalf or on behalf of any person, directly or
indirectly, he will not:-

 

(a)           so as
to compete with the Company solicit business from or canvas any Customer or
Prospective Customer in respect of Restricted Goods or Restricted Services;

 

(b)           so as
to compete with the Company accept orders from, act for or have any business
dealings with, any Customer or Prospective Customer in respect of Restricted
Goods or Restricted Services;

 

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(c)           solicit
or induce or endeavour to solicit or induce any person who, on the Termination
Date, was a Critical Employee (and with whom the Executive had material
personal dealings during the Relevant Period) to cease working for or providing
services to the Company, whether or not any such person would thereby commit a
breach of contract;

 

(d)           employ
or otherwise engage any Critical Employee in the business of researching into,
developing, manufacturing, distributing, selling, supplying or otherwise
dealing with Restricted Goods or Restricted Services if that business is, or seeks
to be, in competition with the Company; or

 

(e)           solicit
or induce or endeavour to solicit or induce any Supplier to cease to deal with
the Company and shall not interfere in any way with any relationship between a
Supplier and the Company.

 

15.3         Application of restrictive covenants to
other Group Companies

 

Clause 15.2 shall also apply as though
references to the “Company” include references to each Group
Company in relation to which the Executive has in the course of the Employment
or by reason of rendering services to or holding office in such Group Company:-

 

(a)           acquired
knowledge of its trade secrets or Confidential Information; or

 

(b)           had
personal dealings with its Customers or Prospective Customers; or

 

(c)           supervised
directly or indirectly employees having personal dealings with its

Customers or
Prospective Customers,

 

but so that references in Clause 15.1 to
the “Company” shall for this purpose be deemed to be references to the relevant
Group Company. The obligations undertaken by the Executive pursuant to this
Clause 15.3 shall, with respect to each Group Company, constitute a separate
and distinct covenant and the invalidity or unenforceability of any such
covenant shall not affect the validity or enforceability of the covenants in
favour of any other Group Company.

 

15.4         Effect of suspension on Restricted Period

 

If the Company exercises its right to
suspend the Executive’s duties and powers under Clause 14.4 after notice of
termination of the Employment has been given, the aggregate of the period of
the suspension and the period after the Termination Date for which the
covenants in this Clause 15 shall apply shall not exceed 6 months and if the
aggregate of the two periods would exceed 6 months, the period after the
Termination Date for which the covenants in this Clause 15 shall apply shall be
reduced accordingly.

 

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15.5         Further undertakings

 

The Executive hereby undertakes with the
Company that he will not, without the consent of the Company (not to be
unreasonably withheld or delayed), at any time:-

 

(a)           during
the Employment or after the Termination Date engage in any trade or business or
be associated with any person engaged in any trade or business using the names
or incorporating the words National Australia Group /Clydesdale Bank /Yorkshire
Bank /Northern Bank /National Irish Bank; or

 

(b)           after
the Termination Date represent or otherwise indicate any association or
connection with the Company or any Group Company or for the purpose of carrying
on or retaining any business represent or otherwise indicate any past
association with the Company or any Group Company.

 

15.6         Severability

 

The restrictions in this Clause 15, the
terms of which have been fully explained to the Executive, as the Executive
hereby acknowledges, are separate and severable restrictions and are considered
by the parties to be reasonable in all the circumstances. It is agreed that if
any such restrictions, by themselves, or taken together, shall be adjudged to
go beyond what is reasonable in all the circumstances for the protection of the
legitimate interests of the Company or a Group Company but would be adjudged
reasonable if some part of it were deleted or the length of time or the
geographical coverage of the restrictions reduced, the relevant restriction or
restrictions shall apply with such deletion(s) or reduction(s) as may be
necessary to make it or them valid and enforceable.

 

 

16           DIRECTORSHIPS

 

16.1         The
Executive shall forthwith resign (without claim for compensation) from all
directorships and other offices he may hold from time to time with the Company
or any Group Company in the event of:-

 

(a)           the
termination of his employment, howsoever arising; or

 

(b)           either
the Company or the Executive serving on the other notice of termination of the
Employment; or

 

(c)           the
Company exercising its rights under Clause 14.4(b) above.

 

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16.2         In the
event of the Executive failing to comply with his obligations within Clause 16.1
above, he hereby irrevocably authorises the Company to appoint some person in
his name and on his behalf to sign any documents, and/or do all things
necessary or requisite, to give effect to such resignations as referred to in
Clause 16.1 above.

 

17           DISCIPLINARY
ISSUES

 

If the Executive is dissatisfied with any
disciplinary decision or action against him, he should raise it with the
Managing Director and CEO National Australia Group.

 

18           GRIEVANCE

 

If the Executive has any grievance relating
to the Employment, he should raise it with the Managing Director and CEO
National Australia Group.

 

19           COMPLIANCE
WITH MODEL CODE

 

During the Employment the Executive shall
comply in all respects with every rule of law, including without prejudice to
the generality, the Model Code for Securities Transactions by Directors of
Listed Companies contained in “The Listing Rules” issued by authority of the
Council of the London Stock Exchange (the “Model Code”) and any regulations
made by the Board from time to time pursuant to the Model Code for so long as
any shares in the capital of the Company are dealt in on the unlisted
securities market or listed on the London Stock Exchange.

 

20           FSA
COMPETENCE REQUIREMENTS

 

20.1         The
Executive must comply with any regulatory and compliance requirements which
apply to the Position, including (but not limited to):

 

 (a)          the
Code of Conduct for Dealings in Investments by Directors and Employees;

 

(b)           the
Code of Conduct for Handling Investment Business for Customers; and

 

(c)           the
Financial Services and Markets Act 2000 (“FSMA”), all applicable secondary
legislation made under the FSMA and all applicable rules, regulations and
guidance of the Financial Services Authority (“FSA”) and any other statutory
body involved in regulation of the activity carried out by the Executive in the
Position or otherwise in the course of the Employment. [Subject to review in light of specific
duties of the Executive.]

 

The Company may take disciplinary action,
up to and including dismissal, if the Executive does not comply with these
requirements.

 

14

 

20.2         The
Position is subject to statutory regulation by the Financial Services Authority
(“FSA”).  FSA Regulations require that,
in order to perform the Position, the Executive must be assessed as competent
on an ongoing basis, in line with appropriate criteria.  If the Executive fails to meet the
appropriate standard of competence, the Company would be in contravention of
its obligations under the FSA Regulations if it permitted the Executive to
continue to work in the Position.  The
Company will therefore take appropriate action to fulfil its regulatory
obligations, which may result in termination of the Employment.

 

20.3         The
Company shall provide to the Executive all reasonable assistance, training,
support and access to advice (at the cost of the Company) in connection with
statutory regulatory and compliance requirements.

 

21           DATA
PROTECTION

 

The Executive acknowledges and agrees that
the Company is permitted to hold personal information about the Executive as
part of its personnel and other business records and may use such information
in the course of the Company’s or the Group’s business. The Executive agrees
that the Company may disclose such information to third parties in the event
that such disclosure is in the Company’s view required for the proper conduct
of the Company’s business or that of any Group Company. This Clause applies to
information held, used or disclosed in any medium.

 

22           SEVERABILITY

 

The various provisions and sub-provisions
of this Agreement are severable and if any provision or sub-provision or
identifiable part thereof is held to be invalid or unenforceable by any court
of competent jurisdiction then such invalidity or unenforceability shall not
affect the validity or enforceability of the remaining provisions or
sub-provisions or identifiable parts thereof in this Agreement.

 

23           WARRANTY

 

The Executive represents and warrants that
he is not a party to any agreement, arrangement, contract, understanding or
otherwise, which would in any way directly or indirectly restrict or prohibit
him from fully undertaking or performing the duties of the Employment, or any
of them, in accordance with the terms and conditions of this Agreement.

 

24           CONTINUING
PROVISIONS

 

Clauses 13, 14.5, 15, 16, 19 and 21 shall
continue following termination of this Agreement.

 

15

 

25           NOTICES

 

Any notice to be given hereunder may be
delivered, or be sent by first class post addressed, if to the Company, to its
registered office for the time being or, if to the Executive, to his address
stated in the heading of this Agreement or otherwise his address last known to
the Company. Notices served by post shall be deemed served on the second
business day after the date of posting. For the purposes of this Clause,
“business day” means a day on which the Company is open for business in the
place both of posting and of address of the notice.

 

26           DEFINITIONS

In this Agreement the following words and
expressions shall have the meanings set out below:

 

“the Board” means
the board of Directors for the time being of the Company or any committee duly
appointed by the Board of Directors;

 

“Employment” means
the emp1oyment of the Executive under this Agreement or as the contract
requires, the duration of the employment;

 

“Group” means all
of the Group Companies;

 

“Group Company”
means the Company, or a company which is from time to time its holding company
or subsidiary of the Company or its holding company and “holding company” and
“subsidiary” shall have the meanings ascribed to them under section 736
Companies Act 1985 (as amended);

 

“Immediate Relatives” shall include husband, wife, common law spouse, partner, children,
brothers, sisters, parents, grandparents, and the aforesaid relatives by
marriage;

 

All references in this Agreement to the
termination of the Executive’s employment “howsoever arising” (or such similar
expressions) shall be treated as including but not limited to such termination
by the Executive or the Company (with or without notice), by operation of law,
and whether or not such termination is connected with or results from a
repudiatory breach of this Agreement on the part of the Executive or the
Company.

 

All references in this Agreement to
Clauses, sub-Clauses and Schedules are, unless otherwise stated, references to
Clauses, sub-Clauses and Schedules to this Agreement.

 

The headings to the Clauses are for
convenience only and shall not affect the construction or interpretation of
this Agreement.

 

16

 

27           NAG
EMPLOYEE HANDBOOK

 

The NAG Handbook is not contractual for the
purposes of the Executive’s employment and may be amended from time to time by
the Company at its sole discretion and without giving the Executive prior
warning. The NAG Handbook does not apply to the Position except as expressly
provided for in this Agreement or as the context requires.

 

28           EQUAL
OPPORTUNITIES

 

The Company is committed to a policy of
Equal Opportunities. Details of this Policy together with the Equal
Opportunities Complaints Procedure can be found in the NAG Handbook.

 

29           MISCELLANEOUS

 

29.1         This
Agreement cancels and is in substitution for all previous letters of
engagement, agreements and arrangements (whether oral or in writing) relating
to the subject-matter hereof between the Company and the Executive all of which
shall be deemed to have been terminated by mutual consent. This Agreement
constitutes the entire Agreement between the parties as to the subject-matter
hereof and no waiver or modification hereof shall be valid unless in writing,
signed by the parties and only to the extent therein set forth.

 

30           CONDITIONS
PRECEDENT

 

30.1            This Agreement and the rights and obligations of the parties hereto
are entirely conditional on satisfaction of the following conditions precedent:

 

30.1.1   the Executive
must be available to start work in the Position not later than 1 September2003,
without being subject to any restrictions, in terms of any contract of
employment with any other employer or otherwise, which would prevent the
Executive performing any of the duties of the Position;

 

30.1.2   the Executive
must undergo a medical examination and the medical report provided to the
Company following such medical examination must be satisfactory to the Company
(acting reasonably); and

 

30.1.3   any approvals,
consents and references required by the FSA or any other relevant regulatory
authority in relation to the Position must, as far as reasonably practicable, be
obtained not later than 1 September 2003 and there must be no regulatory
restriction preventing the Executive from performing any of the duties of the
Position by the Commencement Date, provided that the Company shall take all
reasonable steps to obtain such approvals, consents and references by such
date.

 

30.2         In the
event of any of the conditions in Clause 30.1 not being fulfilled by 1
September  2003, all liabilities of the
parties under this Agreement shall cease and neither party shall have any claim.

 

17

 

31           GOVERING
LAW

 

This Agreement is governed by and construed
in accordance with English law.

 

AS WITNESS the hands of a duly authorised officer of
the Company and of the Executive the day and year first before written.

 

	
  SIGNED by Frank J Cicutto

  	
  )

  	
  [ORIGINAL SIGNED]

  
	
  Managing Director & CEO

  	
  )

  	
   

  
	
   

  	
  )

  	
  14 / 3 / 2003

  
	
   

  	
  )

  	
   

  
	
  For and on behalf of

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
  National Australia Group Europe Limited

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
  SIGNED by the said  John
  Stewart

  	
  )

  	
  [ORIGINAL SIGNED]

  
	
   

  	
   

  	
   

  
	
   

  	
  )

  	
   

  
	
   

  	
  )

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  14 / 3 / 2003

  

 

18

 

SCHEDULE l

 

Annual EVA Incentive 

 

The Executive will be eligible to participate in the
Company’s EVA Incentive Plan (“the Incentive Plan”).

 

The first payment under the Incentive Plan will be
prorated in respect of the period from the Commencement Date to 30 September
2003.

 

The Incentive Plan provides for payments as a
percentage of Basic Salary, and reflects the Economic Value Added performance
of the Group and of business units, as well as individual performance.

 

Payments are made following the end of the financial
year to which they apply, and determination of Group, business unit, and
individual performance for that year. No EVA incentive payment will be payable
to the Executive after the date upon which the Company invokes Clause 14.4 of
this agreement.

 

19

 

SCHEDULE 2

 

The Executive is entitled to receive the following
benefits:

 

Company Car

 

The Executive shall have the use of a company car
subject to and in accordance with the terms of the Company Car Policy, being a
vehicle appropriate for the Executive’s use in performing his duties hereunder.
The Executive shall be entitled to receive a vehicle Commensurate with his
status within the Company.

Alternatively, in lieu of the provision by the Company
of a car, the Executive may elect to receive an amount equivalent to the
monthly lease cost of such a car.

 

 

National Partnership Share
Plan

 

The
Executive will be eligible to join the Partnership Share Plan provided they are
an employee of a participating Company within the National, have at least 6
months continuous service and are a UK resident for tax purposes.   Further details are available in the NAGE
Employee Handbook.

 

Medical Cover and Permanent Health Insurance 

 

The Executive and his family shall be entitled to
participate in the Company’s private medical insurance scheme (PPP) and in any
permanent health insurance scheme which the Company maintains from time to time
for the benefit of senior executives, in both cases subject to and in
accordance with the rules of such private medical insurance and permanent
health insurance schemes (together, for the purposes of this paragraph, “the
Schemes”). The Company shall not be obliged to make any payments to the
Executive, nor to pursue payment to the Executive by the providers of the
Schemes in which the Executive participates, where such providers of such
Schemes determine that he is not eligible to receive payment under the
Schemes.  The Company reserves the
right, at its sole discretion, to change the schemes and the level of benefits
provided thereunder. Further details are available from Human Resources Shared
Services Administration.

 

Life Insurance 

 

The Executive shall be entitled to participate in a
life insurance plan providing lump sum death in service cover of 4 x Basic
Salary up to the level of the earnings cap`, subject to and in accordance with
the rules of the life insurance plan. 
The Company reserves the right, at its sole discretion, to change the
schemes and the level of benefits provided under such life insurance plan.
Further details are available from Human Resources Shared Services
Administration.

 

20EXHIBIT 4.4

 

 

Executive
service agreement – Mr Ian F Scholes

 

 

	
  National

  	
  Managjng
  Director & Chief 

  Executive Officer

  
	
   

  	
   

  
	
   

  	
  National
  Australia Bank 

  Limited

  
	
   

  	
  ABN 12 004
  044 937

  
	
   

  	
   

  
	
   

  	
  500 Bourke
  Street 

  Melbourne Victoria 

  3000 Australia

  

 

8 March 2002

 

 

Mr I. Scholes

 

 

Dear

 

On behalf of National Australia Bank (“the National”),
I am pleased to offer you employment in the position of Executive General
Manager - Wholesale Financial Services, reporting to CEO/Managing Director
National Australia Bank.

 

Your
employment with the National will commence on 25th March 2002 (“the
Commencement Date”) or later, as agreed. It will continue until 25th March 2005
(“the Cessation Date”) or three years after the commencement date, unless
otherwise earlier terminated in accordance with this letter).

 

This letter of
offer (including its schedules), and your acceptance of its terms, constitute
the terms of your contract of employment.

 

Employer

 

Your contract
of employment will be with the National. During your employment with the
National, you will provide services to the National and to any Related Body
Corporate of the National as directed by the National. If you are required to
provide services to a Related Body Corporate, you will continue to be employed
by the National.

 

Location

 

I personally
guarantee that we will not relocate you from the National’s office in Melbourne
to any other location [in Australia or elsewhere].

 

Duties

 

You may
exercise the powers and discretions, and will perform the duties, functions and
responsibilities which:

 

(a) the
National determines are appropriate to your position from time to time; and

 

(b) are
conferred, delegated or specified to you by the National from time to time.

 

The National
may, from time to time, appoint you to another position reasonably consistent
with your skills, experience and abilities, or require you to undertake other
duties, functions

 

 

and
responsibilities in addition to, or in variation of, the duties, functions and
responsibilities of your position, as applicable from time to time. Your
reporting responsibility and/or position title may also be altered from time to
time.

 

The terms of
this letter will continue to apply if the powers, discretions, duties,
functions and/or responsibilities of your position are added to or varied or if
you are appointed to another position as provided for by this letter.

 

Promotion of the National’s Interests

 

During your
employment with the National you warrant that you will, at all times:

 

(a)           act in the National’s best interests;

 

 (b)                              use your best endeavours to promote and enhance the National’s
interests, welfare, business, profitability, growth and reputation.

 

Hours of work

 

Consistently
with the seniority of this position, you will work any hours as the National
may reasonably require or as may be reasonably necessary to perform your
duties.

 

Remuneration

 

Your
remuneration will be on the basis of a Total Remuneration Package. Your initial
Total Remuneration Package will comprise salary and a benefit component as set
out in Schedule 1 to this letter.

 

Details in
relation to superannuation, the National’s Economic VaIue Added Incentive Plan
(“EVA Incentive Plan”) and remuneration reviews are also set out in Schedule 1.

 

Leave entitlements

 

You are
entitled to various leave benefits in accordance with the policies of the
National as are in operation from time to time, subject to those entitlements
being no less than those applicable to your employment by law.

 

Confidentiality

 

You have
obligations of confidentiality, as set out in Schedule 2 to this Agreement.

 

The
confidentiality obligations contained in this Agreement are in addition to, and
in no way limit, any other obligations of confidentiality you owe the National,
either at common law, in equity or under the Corporations Act, as amended
and in force from time to time.

 

You are also
subject to certain restraints on activity after your employment with the
National ceases. Those restraints are also set out in Schedule 2.

 

2

 

Intellectual Property

 

You have
obligations in respect of intellectual property, as set out out in Schedule 2
to this Agreement.

 

Other Employment and Investments

 

During your
employment with the National, you will not, without the National’s written consent,
be engaged, employed, concerned or involved in, whether directly or indirectly,
any other employment, business, occupation, profession or undertaking. However,
the National will not unreasonably refuse to consent to you doing any of these
things. You may hold or acquire, as a bona fide investment, shares or other
securities of any publicly listed company, including any company listed for
quotation on the Australian Stock Exchange Ltd.

 

You may be
required to disclose to the National any information relevant to any matter
referred to in this clause.

 

Termination of employment

 

Expiration of the contract

 

(a)                                  Unless your contract of employment is earlier terminated in
accordance with this letter, your employment and this contract will terminate
by the passage of time on the Cessation Date. The National will also approve
the retention of all share options granted since the commencement of
employment.

 

Termination upon notice

 

 (b)                              Subject to the terms of this Agreement, either you or the National
may terminate your employment at any time by giving written notice of
termination (6 weeks) to the other. Without limiting the circumstances in which
the National may determine to terminate your employment, it may do so if your
position is determined by the National to be redundant. In the event of a
notice of termination being given (other than for serious  misconduct) you will be
entitled to a termination payment for the balance of the period of the contract
to the Cessation Date, for both TRP and the target incentive payments at the
rate of (150% TRP). The National will also approve the retention of all share
options granted since the commencement of employment. You will have no
entitlement to any further termination benefits except as provided by
legislation or under this letter.

 

In all cases
where notice is required to be given, either by you or the National, the
National may elect to make payment in lieu of all or part of the notice period.
If any part of the notice period is to be worked, the payment in lieu will be
made in respect of the unworked part of the notice period.

 

3

 

Summary termination for serious misconduct

 

(c)                                  The National may terminate your employment without notice, effective
immediately, if you engage in any act or omission constituting serious
misconduct including, but not limited to, disclosure of confidential
information and fraud.

 

Return of property

 

(d)                                 Upon termination of employment you will return to the National,
without further demand, all property belonging to the National in your
possession, power or control.

 

National Policies

 

The National
has a range of policies and procedures that ensure the efficient and effective
operation of the business, the care and welfare of our employees and compliance
with legislation. You must comply with these policies and procedures, as
established and varied from time to time, including the following policies:

 

(a) Equity in
Employment: We’re Committed;

(b) Sexual
Harassment: Off Limits;

(c) Code of
Conduct: Working Together.

 

You
acknowledge that you have been provided with a copy of each of these policies
and procedures prior to signing this offer.

 

The National’s
policies and procedures are for the benefit of the National solely and do not
vest any legal right or entitlement in you, except as expressly provided for in
this letter.

 

Governing Law

 

Your contract
of employment with the National will be governed by, and interpreted in
accordance with, the law of the State of Victoria.

 

Variation

 

The terms of
this contract of employment may not be varied other than in writing, signed by
both you and the National.

 

Entire Understanding

 

This Agreement
constitutes the entire agreement between you and the National in respect of the
terms and conditions of your employment with the National. Any previous
agreements, understandings and negotiations in respect of the terms and
conditions of your employment with the National cease to have any effect.

 

4

 

You warrant
that in entering this Agreement you have not relied on any previous statements
or representations made to you by the National, or any of its employees,
officers or agents.

 

Definitions

 

In this
letter, “Related Body Corporate” has the meaning given to it in the Corporations
Act, as amended and in force from time to time.

 

5

 

Acceptance

 

To accept this
offer, please sign, date and return to me the attached duplicate of this
letter.

 

Yours
sincerely,

 

 

[Original Signed]

 

 

Frank Cicutto

 

CEO/Managing
Director

 

I accept this
offer of employment with National Australia Bank Ltd on the terms set out in
this letter including its Schedules.

 

 

	
   

  	
   

  
	
  [Signature]

  
	
   

  
	
   

  
	
   

  
	
   

  	
   

  
	
  Date

  

 

6

 

SCHEDULE 1

 

Remuneration

 

 

Remuneration

 

You will
receive a Salary and Benefit Component which together make up your Total
Remuneration Package (TRP).

 

Total Remuneration Package (TRP) - Your TRP is $575,000. This Package is in accordance with the terms
of the Management Remuneration Package Guidelines issued by us from time to
time.

 

Salary - The Salary
Component of your TRP is $356,258

 

Benefits - The
benefit Component of your TRP is $218,742 (0.614 times salary). The Benefit
Component may be taken as cash or non-cash benefits or a combination of both.
It includes Fringe Benefits Tax (FBT) payable by us in connection with the
provision of non-cash benefits.

 

Your Salary
and any other cash benefit of your TRP will be paid fortnightly in arrears.

 

Superannuation

 

You will be
offered membership of the National Australia Bank Group Superannuation Fund
(“the Fund”), on the terms of the applicable Trust Deed and Rules.

 

The National
will credit your Fund account with an amount equal to 8.0% of your salary (that
is, initially $28,501) as a contribution for, or in respect of, you. This
amount may be altered by the National from time to time, subject to any
applicable legislation.

 

This
contribution is in addition to any employer superannuation benefit component
you nominate as part of your Total Remuneration Package and any contribution
you elect to make to superannuation.

 

You may make
contributions to the Fund either as employee contributions or by deduction from
your Total Remuneration Package.

 

Remuneration Review

 

Your next
remuneration review is expected to be during July 2002. Thereafter your Total
Remuneration Package will be reviewed [at least] once in each 12 months of your
employment on such a basis as the National, in its absolute discretion, may
determine.

 

Your Total
Remuneration Package will not be reduced as a consequence of a review.

 

 

EVA Incentive Plan

 

You may
participate in the National’s EVA Incentive Plan, in accordance with its terms
from time to time, if you are employed by the National at the time any EVA
incentive bonus relating to that EVA Incentive Plan Year is made.

 

“EVA Incentive
Plan Year” means the period commencing 1 October in any year until 30 September
in the following year. Your Target Incentive in this Plan is 150% of TRP ($862,500).
Payment of 2001/2002 EVA Incentive will be on the basis of a complete year
participation in the Plan.

 

Share Plans

 

(a)                                  You are eligible to participate in the National Australia Bank Staff
Share Allocation Plan and National Australia Bank Staff Ownership Plan on their
terms, as varied from time to time.

 

(b)                                 You will be considered for participation in any offers made under
the National Australia Bank Executive Share Option Plan No.2, in accordance
with the Plan rules as applicable form time to time. A recommendation will be
made in your first year of appointment of 250,000 options.

 

8

 

SCHEDULE 2

 

Confidentiality and Other
Obligations

 

 

Confidential Information

 

In this
Schedule “Confidential
Information” means:

 

all ideas,
concepts and information, whether or not in material form, which by this
Schedule or otherwise are designated or treated by the National as Confidential
Information, including but not limited to:

 

a)              the business affairs,
accounts, works, marketing plans, sales plans, prospects, research, management
information, financing, products, inventions, designs, processes;

 

b)             any database systems,
specifications, software source codes or software support material;

 

c)              other documents, material
or other information in whatever form whether in writing, electronic form
ortherwise;

 

concerning
the National or its affairs or any of its customers or its customers’ affairs
to which you gain access, obtain or learn, whether before or during your
employment.

 

You must not
use Confidential Information, or disclose to any person Confidential
Information, other than for the sole purpose of carrying out the proper
functions and responsibilities of your position.

 

You must not
use any Confidential Information for the benefit of any persons other than the
National.

 

You agree and
acknowledge that all Confidential Information is solely and exclusively the
property of the National.

 

You must not
copy (whether in hard copy, electronic form, magnetic form or any other form
whatsoever) any Confidential Information, other than for the sole purpose of
carrying out the functions and responsibilities of your position.

 

You must:

 

(a)           maintain proper and secure custody of
Confidential Information; and

 

(b)                                 use your best endeavours to prevent the disclosure of Confidential
Information to third parties or the use by them of Confidential Information.

 

All reports,
papers, documents and information of any kind and in whatever form, prepared,
compiled or created by you during your employment with the National, or which
come into your knowledge or possession by reason of your employment by the
National, are the sole and exclusive property of the National.

 

 

The National
has the sole and exclusive rights to publish, release or use, or authorise
publication or release or use of the information, documents, the contents of
the documents, and/or the data and information used in the creation of the
documents.

 

Upon
termination of your employment with the National or at any other time, if
requested to do so by the National, you shall immediately deliver to the
National without further demand, all Confidential Information (including all
copies in whatever form) which is physically capable of delivery. If the
National requests you to do so, instead of delivering the Confidential
Information (including all copies in whatever form) as set out in this
Schedule, you must destroy or erase the Confidential Information (including all
copies in whatever form)

 

Following
return to the National of all Confidential Information in accordance with this
Schedule, if requested to do so, you must provide to the National, in a form
acceptable to the National, written confirmation that all Confidential
Information in your possession, power or control has been returned to the
National, or destroyed or erased.

 

Intellectual Property

 

In this
Schedule “Intellectual Property” means all rights conferred under statute,
common law and equity, in relation to inventions, discoveries, patents,
designs, trade marks, logos, copyright and author’s rights and includes
applications, or the right to make applications, for any of the foregoing.

 

You assign to
the National all right, title and interest throughout the world in and to all
Intellectual Property, wherever subsisting, in the materials created by you in
the course of your employment (“the Works”), effective immediately on the
creation of any Intellectual Property.

 

You will
execute any documents and do anything necessary to give effect to the
assignment of the Intellectual Property rights in the Works, both during your
employment with the National and after it ceases.

 

You hereby
unconditionally and irrevocably appoint the Secretary of the National, as
appointed from time to time, as your attorney to execute any documents and do
anything necessary on your behalf to give effect to the assignment of the
Intellectual Property rights to the Works.

 

You
unconditionally waive all and any moral rights which you may have in the Works.

 

Obligations to continue

 

Your obligations
under this Schedule:

 

a)              continue after
termination of your contract of employment with the National;

 

b)             are enforceable by the
National at any time by legal process; and

 

c)              are for the National’s
continuing benefit.

 

 

Non Solicitation Covenant

 

You covenant
that whether on your own account or for any person during your employment and
for a period of 12 months after your employment ceases, you will not solicit or
entice (or endeavour to solicit or entice) from the National:

 

a)              any of the National’s
officers or employees or any contractors to the National, whether or not that
person would commit a breach of any contract by reason of ceasing to serve or
provide services and/or goods to the National;

 

b)             the custom of any person
who has during the two years prior to the cessation of your employment been a
customer of the National, if that person dealt with the area of the National’s
operations for which you had responsibility in the two years prior to cessation
of your employment.

 

Severance

 

You and the
National consider that the covenants, obligations and restrictions contained in
this Schedule (“the Covenants”) are:

 

(a) reasonable
in all the circumstances of your employment; and

 

(b) necessary
to protect the National’s business and goodwill.

 

Each and every
part of the Covenants will be taken to be a severable and independent Covenant.
If, taken as a whole, the Covenants are not reasonable, but would be reasonable
with anyone or more Covenants, or part(s) of Covenants deleted, then the
Covenants or part(s) of Covenants are hereby deleted and the Covenants will be
taken to apply as if those Covenants were deleted.

 

If any
Covenant or part(s) of Covenants are deleted pursuant to the terms of this
Schedule, the remaining Covenants or part(s) of Covenants are unaffected and
shall continue to have full force and effect.

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