Document:

Exhibit 10.2

 

AMCOR PLC

2019 OMNIBUS MANAGEMENT SHARE PLAN

(Effective as of [·])

 

1.                                      Purpose of the Plan

 

This Plan is intended to promote the interests of Amcor and its shareholders by providing participants with incentives and rewards to encourage them to deliver outcomes and/or continue in the service of the Company.

 

2.                                      Definitions

 

As used in the Plan or in any instrument governing the terms of any Incentive Award, the following definitions apply to the terms indicated below:

 

(a)                                 “Affiliate” means, with respect to a specified Person, a Person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the specified Person.

 

(b)                                 “Amcor” means Amcor plc, a public limited company incorporated under the Laws of the Bailiwick of Jersey (and any successor thereto).

 

(c)                                  “Award Agreement” means a written or electronic agreement, in a form determined by the Committee from time to time, entered into by each Participant and the Company, evidencing the grant of an Incentive Award under the Plan.

 

(d)                                 “Board of Directors” means the Board of Directors of Amcor.

 

(e)                                  “Cash-Based Award” means an Incentive Award granted pursuant to Section 7(b) hereof and payable in cash at such time or times and subject to such terms and conditions as determined by the Committee in its sole discretion.

 

(f)                                   “Cause” means, unless otherwise determined by the Committee in the applicable Award Agreement, with respect to a Participant’s Termination of Service, the following:  (a) in the case where there is no employment agreement, consulting agreement, change in control agreement or similar agreement in effect between the Company or an Affiliate and the Participant at the time of the grant of the Incentive Award (or where there is such an agreement but it does not define “cause” (or words of like import)), termination due to a Participant’s insubordination, dishonesty, fraud, incompetence, moral turpitude, willful misconduct, refusal to perform the Participant’s duties or responsibilities for any reason other than illness or incapacity, or materially unsatisfactory performance of the Participant’s duties for the Company or an Affiliate, as determined by the Committee in its good-faith discretion; or (b) in the case where there is an employment agreement, consulting agreement, change in control agreement or similar agreement in effect between the Company or an Affiliate and the

 

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Participant at the time of the grant of the Award that defines “cause” (or words of like import), “cause” as defined under such agreement.

 

(g)                                  “Change in Control” means, unless otherwise defined in the Award Agreement, (i) any one Person, or more than one Person acting as a group (as defined under Treasury Regulation § 1.409A-3(i)(5)(v)(B)), other than Amcor or any employee benefit plan sponsored by Amcor, acquires ownership of stock of Amcor that, together with stock held by such Person or group, constitutes more than 50 percent of the total fair market value or total Voting Power of the stock of Amcor; (ii) a majority of members of the Board of Directors is comprised of directors whose appointment or election is (x) not endorsed by a majority of the members of the Board of Directors before the date of each appointment or election or (y) approved in connection with any actual or threatened contest for election to positions on the Board of Directors; (iiii) any one Person, or more than one Person acting as a group (as defined in Treasury Regulation § 1.409A-3(i)(5)(v)(B)) acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such Person or Persons) assets from the Company that have a total gross fair market value equal to or more than 40 percent of the total gross fair market value of all of the assets of the Company immediately before such acquisition or acquisitions, or (iv) a merger, consolidation, reorganization or similar transaction with or into Amcor or in which securities of Amcor are issued, as a result of which the holders of Voting Securities of Amcor immediately before such event own, directly or indirectly, immediately after such event less than 50% of the combined Voting Power of the outstanding Voting Securities of the surviving company or parent corporation resulting from, or issuing its Voting Securities as part of, such event. For purposes of subsection (iv), gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets. Notwithstanding the foregoing, an event described herein shall be considered a “Change in Control” for distribution or payment purposes only if it constitutes a “change in control event” under Section 409A of the Code, to the extent necessary to avoid adverse tax consequences thereunder.

 

(h)                                 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and all regulations, interpretations and administrative guidance issued thereunder.

 

(i)                                     “Committee” means the Compensation Committee of the Board of Directors or such other committee as the Board of Directors shall appoint from time to time to administer the Plan and to otherwise exercise and perform the authority and functions assigned to the Committee under the terms of the Plan.

 

(j)                                    “Company” means Amcor and all of its Subsidiaries, collectively.

 

(k)                                 “Consultant” means any natural person who is an advisor, contractor or consultant to the Company.

 

(l)                                     “Deferred Compensation Plan” means any plan, agreement or arrangement maintained by the Company from time to time that provides opportunities for deferral of compensation.

 

(m)                             “Effective Date” means the date the Plan is adopted.

 

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(n)                                 “Eligible Person” has the meaning set forth in Section 5 of the Plan.

 

(o)                                 “Employee” means an employee of Amcor.

 

(p)                                 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

(q)                                 “Fair Market Value” means, with respect to a Share, as of the applicable date of determination, any of (i) the closing price as reported on the securities exchange/s on which Shares are then listed or admitted to trading (the “Securities Exchange”) on the trading day immediately prior to the date of grant of an Incentive Award, (ii) the closing price as reported on the Securities Exchange on the date of grant of an Incentive Award, or (iii) the highest trading price, the lowest trading price, or the average closing price for the period up to 30 days prior to the date of grant (as determined by the Compensation Committee) as reported on the Securities Exchange. In the event that the price of a Share shall not be so reported, the Fair Market Value of a Share shall be determined by the Committee in its sole discretion taking into account the requirements of Section 409A of the Code.

 

(r)                                    “Incentive Award” means one or more Share Incentive Awards, collectively.

 

(s)                                   “Option” means a stock option to purchase Shares granted to a Participant pursuant to Section 6.

 

(t)                                    “Other Share-Based Award” means an award granted to a Participant pursuant to Section 7.

 

(u)                                 “Participant” means an Eligible Person to whom one or more Incentive Awards have been granted pursuant to the Plan and have not been fully settled or cancelled and, following the death of any such Person, his successors, heirs, executors and administrators, as the case may be.

 

(v)                                 “Person” means a “person” as such term is used in Section 13(d) and 14(d) of the Exchange Act, including any “group” within the meaning of Section 13(d)(3) under the Exchange Act.

 

(w)                               “Plan” means the Amcor 2019 Omnibus Incentive Share Plan, as it may be amended from time to time.

 

(x)                                 “Registration Date” means the effective date of the first registration statement that is filed by Amcor and declared effective pursuant to 12(g) of the Exchange Act, with respect to any class of Amcor’s securities.

 

(y)                                 “Securities Act” means the Securities Act of 1933, as amended.

 

(z)                                  “Service” means (i) for an Eligible Person who is an Employee at the time of grant of an Incentive Award, the period during which such Eligible Person is employed by the Company, (ii) for an Eligible Person who is a Director at the time of grant of an Incentive Award, the period during which such Eligible Person is a member of the Board of Directors, and

 

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(iii) for an Eligible Person who is a Consultant at the time of grant of an Incentive Award, the period during which such Eligible Person is providing services to the Company.

 

(aa)                          “Share” means an ordinary share, par value $0.01 per share, of Amcor, or any other security into which the common stock shall be changed pursuant to the adjustment provisions of Section 8 of the Plan.

 

(bb)                          “Share Incentive Award” means an Option or Other Share-Based Award granted pursuant to the terms of the Plan.

 

(cc)                            “Subsidiary” means any “subsidiary” within the meaning of Rule 405 under the Securities Act.

 

(dd)                          “Substitute Award” means Incentive Awards that result from the assumption of, or are in substitution for, outstanding awards previously granted by a company or other entity acquired, directly or indirectly, by Amcor or one of its Subsidiaries or with which Amcor or one of its Subsidiaries combines.

 

(ee)                            “Termination Date” means the date an Eligible Person’s Service terminates.

 

(ff)                              “Voting Power” means the number of votes available to be cast (determined by reference to the maximum number of votes entitled to be cast by the holders of Voting Securities upon any matter submitted to shareholders where the holders of all Voting Securities vote together as a single class) by the holders of Voting Securities.

 

(gg)                            “Voting Securities” means any securities or other ownership interests of an entity entitled, or which may be entitled, to vote on the election of directors, or securities or other ownership interests which are convertible into, or exercisable in exchange for, such Voting Securities, whether or not subject to the passage of time or any contingency.

 

3.                                      Shares Subject to the Plan and Limitations on Incentive Awards

 

The maximum number of Shares that may be covered by Incentive Awards granted under the Plan shall not exceed 120,000,000 Shares in the aggregate. The maximum number of Shares referred to in the preceding sentences of this Section 3 shall in each case be subject to adjustment as provided in Section 8 and the following provisions of this Section 3. Of the Shares described, 100% may be delivered in connection with “full-value Awards”, meaning Incentive Awards other than Options or stock appreciation rights. Any Shares granted under any Incentive Awards shall be counted against the Share limit on a one-for-one basis. Shares issued under the Plan may be either authorized and unissued shares, treasury shares, shares purchased by the Company in the open market, or any combination of the preceding categories as the Committee determines in its sole discretion.

 

For purposes of the preceding paragraph, Shares covered by Incentive Awards shall only be counted as used to the extent they are actually issued and delivered to a Participant (or such Participant’s permitted transferees as described in the Plan) pursuant to the Plan; provided, however, that if Shares are withheld to pay the exercise price of an Option or base price of a 

 

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stock appreciation right or to satisfy any tax withholding requirement in connection with an Option or stock appreciation right, both the Shares issued (if any) and the Shares withheld will be deemed delivered for purposes of determining the number of Shares that are available for delivery under the Plan. In addition, if Shares are issued subject to conditions which may result in the forfeiture, cancellation or return of such Shares to the Company, any portion of the Shares forfeited, cancelled or returned shall be treated as not issued pursuant to the Plan. Shares covered by Incentive Awards granted pursuant to the Plan in connection with the assumption, replacement, conversion or adjustment of outstanding equity-based awards in the context of a corporate acquisition or merger (within the meaning of Section 303A.08 of the New York Stock Exchange Listed Company Manual) shall not count as used under the Plan for purposes of this Section 3.

 

4.                                      Administration of the Plan

 

The Plan shall be administered by a Committee of the Board of Directors consisting of two or more Persons, each of whom qualifies as a “non-employee director” (within the meaning of Rule 16b-3 promulgated under Section 16 of the Exchange Act), and as “independent” as required by the New York Stock Exchange or any security exchange on which the Shares are listed, in each case if and to the extent required by applicable law or necessary to meet the requirements of such Rule, Section or listing requirement at the time of determination. From time to time, the Board may increase or decrease the size of the Committee, add additional members to, remove members (with or without cause) from, appoint new members in substitution therefor, and fill vacancies, however caused, in the Committee. The Committee shall, consistent with the terms of the Plan, from time to time designate those Eligible Persons who shall be granted Incentive Awards under the Plan and the amount, type and other terms and conditions of such Incentive Awards. All of the powers and responsibilities of the Committee under the Plan may be delegated by the Committee, in writing, to any subcommittee thereof, in which case the acts of such subcommittee shall be deemed to be acts of the Committee hereunder. The Committee may also from time to time authorize a subcommittee consisting of one or more members of the Board of Directors (including members who are employees of the Company) or employees of the Company to grant Incentive Awards to Persons who are not “executive officers” of the Company (within the meaning of Rule 16a-1 under the Exchange Act), subject to such restrictions and limitations as the Committee may specify and to the requirements of applicable law.

 

The Committee shall have full discretionary authority to administer the Plan, including discretionary authority to interpret and construe any and all provisions of the Plan and any Award Agreement thereunder, and to adopt, amend and rescind from time to time such rules and regulations for the administration of the Plan, including rules and regulations related to sub-plans established for the purpose of satisfying applicable foreign laws and/or qualifying for preferred tax treatment under applicable foreign tax laws, as the Committee may deem necessary or appropriate. Decisions of the Committee shall be final, binding and conclusive on all parties. For the avoidance of doubt, the Committee may exercise all discretion granted to it under the Plan in a non-uniform manner among Participants.

 

The Committee may delegate the administration of the Plan to one or more officers or employees of the Company, and such administrator(s) may have the authority to execute and distribute Award Agreements, to maintain records relating to Incentive Awards, to process or 

 

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oversee the issuance of Shares under Incentive Awards, to interpret and administer the terms of Incentive Awards, and to take such other actions as may be necessary or appropriate for the administration of the Plan and of Incentive Awards under the Plan, provided that in no case shall any such administrator be authorized (i) to take any action inconsistent with Section 409A of the Code with respect to any Incentive Award subject to such provision or (ii) to take any action inconsistent with applicable law. Any action by any such administrator within the scope of its delegation shall be deemed for all purposes to have been taken by the Committee and, except as otherwise specifically provided, references in this Plan to the Committee shall include any such administrator. The Committee and, to the extent it so provides, any subcommittee, shall have sole authority to determine whether to review any actions and/or interpretations of any such administrator, and if the Committee, or subcommittee, shall decide to conduct such a review, any such actions and/or interpretations of any such administrator shall be subject to approval, disapproval, or modification by the Committee or subcommittee.

 

On or after the date of grant of an Incentive Award under the Plan, the Committee may (i) accelerate the date on which any such Incentive Award becomes vested, exercisable or transferable, as the case may be, (ii) extend the term of any such Incentive Award, including, without limitation, extending the period following a termination of a Participant’s Service during which any such Incentive Award may remain outstanding, (iii) waive any conditions to the vesting, exercisability or transferability, as the case may be, of any such Incentive Award,  (iv) provide for the payment of dividends or dividend equivalents with respect to any such Incentive Award, or (v) adopt procedures regarding the exercise of Options or share appreciation rights, including establishing “black out” or other periods during which Options or share appreciation rights may not be exercised,; provided, that the Committee shall not have any such authority to the extent that the grant of such authority would cause any tax to become due under Section 409A of the Code. Notwithstanding anything herein to the contrary, the Company shall not (x) reprice (within the meaning of Section 303A.08 of the New York Stock Exchange Listed Company Manual and any other formal or informal guidance issued by the New York Stock Exchange) any Option or share appreciation right or (y) or purchase underwater Options or share appreciation rights from a Participant for value in excess of zero, in each case without the approval of the shareholders of Amcor.

 

The Company shall pay any amount payable with respect to an Incentive Award in accordance with the terms of such Incentive Award, provided that the Committee may, in its discretion, defer, or give a Participant the election to defer, the payment of amounts payable with respect to an Incentive Award subject to and in accordance with the terms of a Deferred Compensation Plan.

 

No member of the Committee shall be liable for any action, omission, or determination relating to the Plan, and Amcor shall indemnify and hold harmless each member of the Committee and each other director or employee of the Company to whom any duty or power relating to the administration or interpretation of the Plan has been delegated, against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim with the approval of the Committee) arising out of any action, omission or determination relating to the Plan, unless, in either case, such action, omission or determination was taken or made by 

 

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such member, director or employee in bad faith and without reasonable belief that it was in the best interests of the Company.

 

5.                                      Eligibility

 

The Persons who shall be eligible to receive Incentive Awards pursuant to the Plan shall be those Employees, Consultants, and Directors whom the Committee shall select from time to time, including any person who has received an offer to become an Employee, Consultant or Director, so long as the Incentive Award is contingent on such Person commencing Service (any such Person, an “Eligible Person”). Each Incentive Award granted under the Plan shall be evidenced by an Award Agreement.

 

6.                                      Options

 

The Committee may from time to time grant Options on such terms as it shall determine, subject to the terms and conditions set forth in the Plan.

 

(a)                           Exercise Price

 

The exercise price per Share covered by any Option shall be not less than 100% of the Fair Market Value of a Share on the date on which such Option is granted, it being understood that the exercise price of an Option that is a Substitute Award may be less than the Fair Market Value per Share on the date such Substitute Award is assumed, provided that such substitution complies with applicable laws and regulations.

 

(b)                           Term and Exercise of Options

 

(i)                                  Each Option shall become vested and exercisable on such date or dates, during such period and for such number of Shares as set forth in the Award Agreement; provided that each Option shall be subject to earlier termination, expiration or cancellation as provided in the Plan or the Award Agreement. Notwithstanding the foregoing, no Option shall be exercisable after the expiration of ten years from the date such Option is granted; provided, however that the expiration of the Option may be tolled while the Participant cannot exercise such Option because an exercise would violate an applicable law, or would jeopardize the ability of Amcor to continue as a going concern, provided, further that the period during which the Option may be exercised is not extended more than 30 days after the exercise of the Option first would no longer violate such applicable laws or jeopardize the ability of Amcor to continue as a going concern.

 

(ii)                                  Each Option shall be exercisable in whole or in part. The partial exercise of an Option shall not cause the expiration, termination or cancellation of the remaining portion thereof.

 

(iii)                               An Option shall be exercised by such methods and procedures as the Committee determines from time to time, including without limitation through net physical settlement or other method of cashless exercise.

 

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7.                                      Other Share-Based Awards and Cash-Based Awards

 

(a)                           Other Share-Based Awards

 

The Committee may from time to time grant equity-based or equity-related Incentive Awards not otherwise described herein in such amounts and on such terms as it shall determine, subject to the terms and conditions set forth in the Plan. Without limiting the generality of the preceding sentence, each such Other Share-Based Award may (i) involve the transfer of actual Shares to Participants, either at the time of grant or thereafter, or payment in cash or otherwise of amounts based on the value of Shares, (ii) be subject to performance-based and/or service-based conditions, (iii) be in the form of share appreciation rights, phantom stock, restricted shares, restricted share units, performance shares, deferred share units or share-denominated performance units, and/or (iv) be designed to comply with applicable laws of jurisdictions other than the United States; provided, that each Other Share-Based Award shall be denominated in, or shall have a value determined by reference to, a number of Shares that is specified at the time of the grant of such Incentive Award.

 

(b)                           Cash-Based Awards

 

The Committee may from time to time grant Cash-Based Awards to Eligible Persons in such amounts, on such terms and conditions, and for such consideration, including no consideration or such minimum consideration as may be required by applicable law, as it shall determine in its sole discretion.  Cash-Based Awards may be granted subject to the satisfaction of vesting conditions or may be awarded purely as a bonus and not subject to restrictions or conditions, and if subject to vesting conditions, the Committee may accelerate the vesting of such Incentive Awards at any time in its sole discretion.  The grant of a Cash-Based Award shall not require a segregation of any of the Company’s assets for satisfaction of the Company’s payment obligation thereunder.

 

8.                                      Adjustment Upon Certain Changes

 

Subject to any action by the shareholders of the Company required by law, applicable tax rules or the rules of any exchange on which Shares are listed for trading:

 

(a)                           Shares Available for Grants

 

In the event of any stock dividend or split, recapitalization, merger, consolidation, combination or exchange of Shares, spin-off or similar corporate change or extraordinary cash dividend, the maximum aggregate number of Shares with respect to which the Committee may grant Incentive Awards, the number of Shares subject to Incentive Awards, the exercise price of any Option or base price of any share appreciation right and the applicable performance targets or criteria shall be equitably adjusted or substituted by the Committee to prevent enlargement or reduction in rights granted under the Incentive Award. In the event of any change in the number of Shares of Amcor outstanding by reason of any other event or transaction, the Committee shall, to the extent deemed appropriate by the Committee, make such adjustments to the type or number of Shares with respect to which Incentive Awards may be granted and/or to the number of Shares subject to Incentive Awards.

 

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(b)                           Increase or Decrease in Issued Shares Without Consideration

 

In the event of any increase or decrease in the number of issued Shares resulting from a subdivision or consolidation of Shares or the payment of a Share dividend (but only on the Shares), or any other increase or decrease in the number of such Shares effected without receipt or payment of consideration by the Company, the Committee shall, to the extent deemed appropriate by the Committee, adjust the type or number of Shares subject to each outstanding Incentive Award and the exercise price of any Option or base price of any share appreciation right.

 

(c)                            Certain Mergers and Other Transactions

 

In the event of (i) a dissolution or liquidation of the Company, (ii) a sale of all or substantially all of the Company’s assets (on a consolidated basis), (iii) a merger, consolidation or similar transaction involving the Company in which the holders of Shares receive consideration in respect of Shares, including cash, securities and/or other property, other than, or in addition to, shares of the surviving corporation in such transaction, the Committee shall, to the extent deemed appropriate by the Committee, have the power to:

 

(i)                                     cancel, effective immediately prior to the occurrence of such event, each Incentive Award (whether or not then exercisable or vested), and, in full consideration of such cancellation, pay to the Participant to whom such Incentive Award was granted an amount in cash, for each Share subject to such Incentive Award, equal to the value, as determined by the Committee, of such Incentive Award, provided that with respect to any outstanding Option or share appreciation right such value shall be equal to the excess of (A) the value, as determined by the Committee, of the property (including cash) received by the holder of a Share as a result of such event over (B) the exercise price of such Option or base price of such share appreciation right (which, for the avoidance of doubt, may be zero in the case of underwater Options and share appreciation rights); or

 

(ii)                                  provide for the termination of an Incentive Award in (whether or not then exercisable or vested) in exchange for an award with respect to (1) some or all of the cash, securities and/or other property, if any, which a holder of the number of Shares subject to such Incentive Award would have received in such transaction upon the exercise of such Incentive Award or realization of the Participant’s rights as of the date of occurrence of the transaction (and, for the avoidance of doubt, if as of the date of the occurrence of the transaction the Committee determines in good faith that no amount would have been attained upon the exercise of such Incentive Award or realization of the Participant’s rights, then such Incentive Award may be terminated by the Company without payment) or (2) securities of the acquirer or surviving entity, or any combination of the foregoing and, incident thereto, in any case, make an equitable adjustment as determined by the Committee in the exercise price of the Incentive Award, or the number of securities or amount of property subject to the Incentive Award or provide for a payment (in cash or other property) to the Participant to whom such Incentive Award was granted in partial consideration for the exchange of the Incentive Award.

 

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(d)                           Other Changes

 

In the event of any change in the capitalization of Amcor or corporate change other than those specifically referred to in Sections 8(a), (b) or (c), the Committee shall, to the extent  deemed appropriate by the Committee, make such adjustments in the number and class of Shares subject to Incentive Awards outstanding on the date on which such change occurs and in such other terms of such Incentive Awards as the Committee may consider appropriate.

 

(e)                            No Other Rights

 

Except as expressly provided in the Plan or any Award Agreement, no Participant shall have any rights by reason of any subdivision or consolidation of Shares of any class, the payment of any dividends or dividend equivalents, any increase or decrease in the number of Shares of any class or any dissolution, liquidation, merger or consolidation of Amcor or any other corporation. Except as expressly provided in the Plan, no issuance by Amcor of Shares of any class, or securities convertible into Shares of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number of Shares or amount of other property subject to, or the terms related to, any Incentive Award. In taking any of the actions permitted under this Section 8, the Committee will not be required to treat all Incentive Awards similarly in the transaction.

 

(f)                             Savings Clause

 

No provision of this Section 8 shall be given effect to the extent that such provision would cause any tax to become due under Section 409A of the Code with regard to Incentive Awards subject to Section 409A of the Code.

 

No provision of this Section 8 shall be given effect to the extent such provision would result in short-swing profits liability under Section 16 of the Exchange Act or violate the exemptive conditions of Rule 16b-3 of the Exchange Act.

 

9.                                      Change in Control; Termination of Service

 

(a)                           Change in Control

 

Subject to the terms of an Award Agreement, in the event of a Change in Control, (A) Incentive Awards that vest based on time-based criteria will not vest on a Change in Control but will vest if the applicable Participant is terminated without Cause within two years after the consummation of a Change in Control and (B) all performance-based Incentive Awards will convert to time-based Incentive Awards that will be subject to clause (A), with the number of Shares to be determined based on assuming either (1) actual performance to date of a Change in Control (extrapolated as appropriate to the end of the performance period), (2) target performance or (3) the higher of (1) or (2), in the discretion of the Committee.

 

Notwithstanding the foregoing and subject to the terms of an Award Agreement, in the event of a Change in Control, each outstanding Incentive Award shall be treated as the Committee determines, including, without limitation that (x) Incentive Awards may be continued, assumed, or substantially equivalent Incentive Awards may be substituted, by the acquiring or succeeding corporation (or an affiliate thereof) with appropriate adjustments as to

 

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the number and kind of shares and prices, (y) Incentive Awards may be terminated in exchange for an amount of cash and/or property, if any, equal to the amount that would have been attained upon the exercise of such Incentive Award or realization of the Participant’s rights as of the date of occurrence of the Change in Control (and, for the avoidance of doubt, if as of the date of the occurrence of the Change in Control the Committee determines in good faith that no amount would have been attained upon the exercise of such Incentive Award or realization of the Participant’s rights, then such Incentive Award may be terminated by the Company without payment) or (z) outstanding Incentive Awards will terminate upon or immediately prior to the consummation of such Change in Control (provided that the Committee provides at least twenty days’ notice to the Participants holding such Incentive Awards and each Participant has had the right to exercise such Incentive Awards in full).

 

(b)         Termination of Service

 

(i)           Except as to any Incentive Awards subject to Section 409A of the Code, termination of Service shall mean a separation from service within the meaning of Section 409A of the Code, unless the Participant is retained pursuant to a written agreement and such agreement provides otherwise. The Service of a Participant with the Company shall be deemed to have terminated for all purposes of the Plan if such Person is employed by or provides services to a Person that is a Subsidiary of the Company and such Person ceases to be a Subsidiary of the Company, unless the Committee determines otherwise. Unless otherwise agreed by the Committee upon the advice of counsel that so agreeing does not result in the imposition of penalties under Section 409A of the Code, a Participant who ceases to be an employee of the Company but continues, or simultaneously commences, Service to the Company shall be deemed to have had a termination of Service for purposes of the Plan. Without limiting the generality of the foregoing, the Committee shall determine whether an authorized leave of absence shall constitute termination of Service, provided that a Participant who is an employee will not be deemed to cease Service in the case of any leave of absence approved by the Company. Furthermore, no payment shall be made with respect to any Incentive Awards under the Plan that are subject to Section 409A of the Code as a result of any such authorized leave of absence or absence in military or government service unless such authorized leave of absence constitutes a separation from service for purposes of Section 409A of the Code.

 

(ii)           The Award Agreement shall specify the consequences with respect to such Incentive Award of the termination of Service of the Participant holding the Incentive Award.

 

10.                               Rights Under the Plan

 

No Person shall have any rights as a shareholder with respect to any Shares covered by or relating to any Incentive Award until the date of the issuance of such Shares on the books and records of Amcor. Except as otherwise expressly provided in Section 8 hereof or in Participant’s Award Agreement, no adjustment of any Incentive Award shall be made for dividends or other rights for which the record date occurs prior to the date of such issuance. Nothing in this Section 10 is intended, or should be construed, to limit authority of the Committee to cause the Company to make payments based on the dividends that would be payable with respect to any Share if it were issued or outstanding, or from granting rights related to such dividends; provided that dividends that would be payable with respect to any Share subject to a performance-based 

 

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Incentive Award shall not be paid until, and only to the extent that, the performance-based conditions are met.

 

The Company shall not have any obligation to establish any separate fund or trust or other segregation of assets to provide for payments under the Plan. To the extent any Person acquires any rights to receive payments hereunder from the Company, such rights shall be no greater than those of an unsecured creditor.

 

11.                               No Special Service Rights; No Right to Incentive Award

 

Nothing contained in the Plan or any Award Agreement shall confer upon any Participant any right with respect to the continuation of his or her Service by the Company or interfere in any way with the right of the Company at any time to terminate such Service or to increase or decrease the compensation of the Participant from the rate in existence at the time of the grant of an Incentive Award.

 

No Person shall have any claim or right to receive an Incentive Award hereunder. The Committee’s granting of an Incentive Award to a Participant at any time shall neither require the Committee to grant an Incentive Award to such Participant or any other Participant or other Person at any time nor preclude the Committee from making subsequent grants to such Participant or any other Participant or other Person.

 

12.                               Securities Matters

 

Amcor shall be under no obligation to effect the registration pursuant to the Securities Act of any Shares to be issued hereunder or to effect similar compliance under any applicable laws. Notwithstanding anything herein to the contrary, Amcor shall not be obligated to cause to be issued Shares pursuant to the Plan unless and until Amcor is advised by its counsel that the issuance is in compliance with all applicable laws, regulations of governmental authority and the requirements of any securities exchange on which Shares are traded. The Committee may require, as a condition to the issuance of Shares pursuant to the terms hereof, that the recipient of such Shares make such covenants, agreements and representations, and that any related certificates representing such Shares bear such legends, as the Committee, in its sole discretion, deems necessary or desirable.

 

The exercise or settlement of any Incentive Award (including, without limitation, any Option) granted hereunder shall only be effective unless at such time counsel to Amcor shall have determined that the issuance and delivery of Shares pursuant to such exercise would not be in compliance with all applicable laws, regulations of governmental authority and the requirements of any securities exchange on which Shares are traded. Amcor may, in its sole discretion, defer the effectiveness of any exercise or settlement of an Incentive Award granted hereunder in order to allow the issuance of Shares pursuant thereto to be made pursuant to registration or an exemption from registration or other methods for compliance available under federal or state or local securities laws. Amcor shall inform the Participant in writing of its decision to defer the effectiveness of the exercise or settlement of an Incentive Award granted hereunder. During the period that the effectiveness of the exercise of an Incentive Award has 

 

12

 

been deferred, the Participant may, by written notice, withdraw such exercise and obtain the refund of any amount paid with respect thereto.

 

13.                               Withholding Taxes

 

Whenever withholding tax obligations are incurred in connection with any Incentive Award, Amcor shall have the right to require the Participant to either: (a) remit to Amcor in cash or (b) allow Amcor to withhold Share Incentive Awards with value equal to the amount of such withholding or (c) deduct an appropriate amount from other employment income payable by Amcor either immediately or over time.

 

14.                               Amendment or Termination of the Plan

 

The Board of Directors may at any time suspend or discontinue the Plan or revise or amend it in any respect whatsoever; provided, however, that to the extent that any applicable law, tax requirement, or rule of a stock exchange requires shareholder approval in order for any such revision or amendment to be effective, such revision or amendment shall not be effective without such approval. The preceding sentence shall not restrict the Committee’s ability to exercise its discretionary authority hereunder pursuant to Section 4 hereof, which discretion may be exercised without amendment to the Plan. No provision of this Section 14 shall be given effect to the extent that such provision would cause any tax to become due under Section 409A of the Code with regard to Incentive Awards subject to Section 409A of the Code. Except as expressly provided in the Plan, no action hereunder may, without the consent of a Participant, adversely affect in any material respect the Participant’s rights under any previously granted and outstanding Incentive Award. Nothing in the Plan shall limit the right of the Company to pay compensation of any kind outside the terms of the Plan.

 

15.                               CHESS Depository Interests

 

Where a Participant is entitled to be delivered Shares under this Plan, Amcor may, following the request of the Participant, facilitate the exchange of such Shares for the relevant number of CHESS Depository Interests.

 

16.                               Recoupment

 

Notwithstanding anything in the Plan or in any Award Agreement to the contrary, the Company will be entitled to the extent required by (i) applicable law (including, without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act), (ii) the requirements of an exchange on which the Company’s Shares are listed for trading or (iii) any policy adopted by the Company, in each case, as in effect from time to time to recoup compensation of whatever kind paid by the Company at any time to a Participant under this Plan.

 

17.                               No Obligation to Exercise

 

The grant to a Participant of an Incentive Award shall impose no obligation upon such Participant to exercise such Incentive Award.

 

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18.                               Transfers

 

Incentive Awards may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of a Participant, only by the Participant; provided, however that the Committee may permit Options to be sold, pledged, assigned, hypothecated, transferred, or disposed of, on a general or specific basis, subject to such conditions and limitations as the Committee may determine. Upon the death of a Participant, outstanding Incentive Awards granted to such Participant may be exercised only by the executors or administrators of the Participant’s estate or by any Person or Persons who shall have acquired such right to exercise by will or by the laws of descent and distribution. No transfer by will or the laws of descent and distribution of any Incentive Award, or the right to exercise any Incentive Award, shall be effective to bind Amcor unless the Committee shall have been furnished with (a) written notice thereof and with a copy of the will and/or such evidence as the Committee may deem necessary to establish the validity of the transfer and (b) an agreement by the transferee to comply with all the terms and conditions of the Incentive Award that are or would have been applicable to the Participant and to be bound by the acknowledgements made by the Participant in connection with the grant of the Incentive Award.

 

19.                               Expenses and Receipts

 

The expenses of the Plan shall be paid by Amcor. Any proceeds received by Amcor in connection with any Incentive Award will be used for general corporate purposes.

 

20.                               Relationship to Other Benefits

 

No payment with respect to any Incentive Awards under the Plan shall be taken into account in determining any benefits under any pension, retirement, profit sharing, group insurance or other benefit plan of the Company except as otherwise specifically provided in such other plan.

 

21.                               Governing Law

 

The Plan and the rights of all Persons under the Plan shall be construed and administered in accordance with the laws of the Bailiwick of Jersey without regard to its conflict of law principles.

 

22.                               Severability

 

If all or any part of this Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity shall not serve to invalidate any portion of this Plan not declared to be unlawful or invalid. Any Section or part of a Section so declared to be unlawful or invalid shall, if possible, be construed in a manner that will give effect to the terms of such Section or part of a Section to the fullest extent possible while remaining lawful and valid.

 

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23.                               Effective Date and Term of Plan

 

The Effective Date of the Plan is [·]. No grants of Incentive Awards may be made under the Plan after the tenth anniversary of the date upon which the Plan was approved by the Board of Directors.

 

15Exhibit 10.3

 

21January 2015

 

Ronald Stephen Delia

 

MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER

 

Offer of Employment

 

This offer of employment and the associated terms and conditions are detailed below. This offer represents the whole of the agreement reached regarding your employment.

 

1.                                      Duties and Responsibilities

 

You will be employed in the position of Managing Director and Chief Executive Officer with Amcor Limited (the “Company”). You will be responsible to, and will report to, the Board of Directors of Amcor Limited (“Board”) through the Chairman and will have overall responsibility for the management of the Company. You will be required to perform all duties and responsibilities of that role that the Board may designate from time to time which are reasonably consistent with your role, including the duties and responsibilities of which you were informed and/or that were set out in any material provided to you during the selection process.

 

2.                                      Compliance with Directions and Keeping the Company Informed

 

You will perform your duties and responsibilities in accordance with the Board’s reasonable directions and will keep the Board informed of any developments in relation to your role.

 

You are required to comply with all ethical standards, policies and procedures (as amended from time to time) that relate to the operation of the business of the Company including but not limited to health and safety policies and procedures, provided that you have been made aware of and provided access to such policies and procedures (including amendments).

 

You will:

 

·                  devote your full time and attention to the Company’s business during working hours and honestly and diligently carry out your duties and responsibilities;

 

·                  promote the interests and further the business of the Company;

 

·                  not do anything which may be prejudicial or detrimental to the business of the Company including but not limited to competing against the Company or soliciting or endeavoring to entice away from the Company an employee, co-worker or consultant;

 

·                  comply with all your fiduciary duties to the Company and all your obligations under this contract with respect to the protection of Intellectual Property at all times; and

 

·                  comply with any policies or procedures which may be implemented and/or amended by the Company from time to time, provided that you have been made aware of and provided access to such policies and procedures (including amendments).

 

3.                                      Place of Work

 

Your initial place of work shall be the Company’s office currently located in Melbourne, Victoria. Should your primary location change this will be agreed with the Board. In the event of a change to your primary location, the arrangements set out in the second and third columns of Attachment 3 will apply and will replace, or be in addition to, the relevant provisions of this contract, which parties acknowledge may require review to recognise local laws and practices.

 

You will be required to travel regularly on the business of the Company. Business travel will be in accordance with any Travel Policy in place from time to time.

 

 

4.                                      Hours of Work

 

You will be expected to work the hours required to satisfy the range of duties and responsibilities of the position, without payment of additional remuneration. This may include after-hours work and weekends in addition to usual business hours.

 

5.                                      Remuneration

 

5.1                               Salary

 

Your base salary of US$1,400,000 will be paid to you less income tax instalments and other statutory deductions that the Company is required by law to make, into your nominated bank account on the scheduled payroll payment date. This may be paid to you in the form of a split payroll with part paid in your work location and the remainder in the United States (US). The delivery of any payments in a foreign currency will be converted using the average monthly exchange rate for the preceding month. Any additional payments made to you throughout your employment (for example, as part of the Other Fixed Remuneration (as per clause 5.2 below) and payments under the Management Incentive Plan) will follow the same exchange rate conversion logic (i.e. average monthly exchange rate for the preceding month).

 

Your base salary will be reviewed annually on a date selected by the Company - currently October each year. Base salaries are adjusted at the Company’s discretion to take into account the Company’s performance, your individual performance and market and industry conditions. The Company is not obliged to increase your base salary as a result of any review.

 

For the purpose of section 330 of the Fair Work Act 2009 (Cth):

 

·                  the Company undertakes to pay you the above stated amount of earnings (as reviewed from time to time) in relation to the performance of work during any period of 12 months under this contract; and

 

·                  you accept this undertaking, and agree with the amount of the earnings that will be paid to you.

 

You authorise the Company, to the extent permitted by law, to deduct from any remuneration accrued and due to you under the terms of this contract:

 

·                  any overpayment of base salary or expenses or payment made to you by mistake or not owed to you;

 

·                  any money owed by you to the Company;

 

·                  any other sum or sums which may be required to be authorized by law;

 

·                  any tax or other national contributions due in respect of remuneration, benefits-in-kind or any other monies received or receivable by you from the Company; and

 

·                  any awards or shares delivered that become subject to the Clawback provisions as defined under the Company’s incentive plans.

 

5.2                               Total Fixed Remuneration (TFR) is defined as salary (per 5.1 above) plus Other Fixed Remuneration (OFR)

 

Your OFR will total US$300,000 per annum, which makes your TFR US$1,700,000 per annum.

 

The OFR provides you with a flexible approach in deciding the type and level of benefits available to you. The OFR may include, for example, payments made on your behalf by Amcor into a pension fund of your choice (see clause 5.3 below), to fund the cost of purchasing and maintaining a motor vehicle (see clause 5.4 below) and health insurance for you and your family (see clause 5.5 below). The resulting balance of OFR, if any, can be paid monthly to you in cash with appropriate tax instalment deductions made.

 

If the OFR becomes insufficient due to mandatory changes to pension contributions or, changes to actual health insurance and motor vehicle costs occur, the parties agree to discuss a change to the OFR, acting reasonably.

 

 

5.3                               Pension

 

Your OFR referred to in clause 5.2 includes an allowance for the Company’s obligations under the Australian Superannuation Guarantee Scheme. However, you may continue to participate in your US pension arrangements should you wish to. This includes US 401 (k), FICA, Medicare, Retirement Savings Contribution and SERP. Any required contributions will be deducted from your OFR, however if this is insufficient then the shortfall will be deducted from your base salary.

 

You will continue to be eligible to participate in the Amcor Rigid Plastics Deferred Compensation Plan (subject to the plan rules in place at the time).

 

Participation in any other retirement benefit plan is provided only if required by legislation.

 

5.4                               Motor Vehicle

 

Covered under Perquisite policy

 

5.5                               Health Insurance

 

Covered under Perquisite policy

 

5.6                               Management Incentive Plan

 

You are invited to participate in the Company’s Management Incentive Plan (“MIP”) subject to the rules which are set by the Board from time to time.

 

You are also invited to participate in the Company’s Management Incentive Plan - Equity (“EMIP”) subject to the rules which are set by the Board from time to time. Your participation in the EMIP is subject to obtaining the necessary shareholder/ regulatory approvals which may include your 2014/15 participation if required by law.

 

The Company reserves the right to alter or disband the MIP and the EMIP at its discretion.

 

The terms and conditions of the MIP and the EMIP are governed wholly by the Plan Rules.

 

For the 2014/15 financial year, the MIP cash incentive potential in your new role will apply on a pro-rata basis from the Commencement Date and will be added to any cash incentive earned in your current role (also on a pro-rata basis up to the Commencement Date). The same treatment will apply to the EMIP grant for this period except that any additional EMIP grant for your new role for this period will be a cash equivalent.

 

Formal performance objectives will be set and reviewed for you regarding any cash incentive payable under the MIP.

 

Any payment under the MIP or award under the EMIP in any year does not guarantee payment/ awards in any subsequent year. Any payment/award under the MIP or EMIP will not be considered in the calculation of any other salary related benefit.

 

5.7                               Long Term Incentive Plan

 

You are invited to participate in the Company’s Long-Term Incentive Plan (“LTIP”) subject to the rules which are set by the Board from time to time. The Company reserves the right to alter or disband the LTIP at its discretion. Participation in this plan is subject to any necessary shareholder/ regulatory approvals. The terms and conditions of this plan are governed wholly by the Plan Rules.

 

The first grant under the LTIP will be made late in 2015, subject to obtaining the necessary shareholder/ regulatory approvals. For the 2014/15 financial year, in addition to any grant under the LTIP that you have earned in your current role (on a pro-rata basis up to the Commencement Date), the LTIP incentive potential in your new role will apply on a pro-rata basis from the Commencement Date to 30 June 2015 (both inclusive), except that any LTIP grant for this period will be satisfied by way of payment of the cash equivalent to you.

 

5.8                               Home Leave Travel

 

Covered under Relocation policy

 

 

5.9                               Tax Advice and Tax Equalization

 

Covered under Relocation policy

 

5.10                        Mobile Telephone

 

Covered under Perquisite policy

 

5.11                        Deed of Appointment

 

The Company will enter into a Deed of Appointment with you in the form set out in Attachment 4 (or such other terms as otherwise agreed in writing with you) (Deed of Appointment) upon or as soon as practicable after the execution of this contract.

 

6.                                      Changes in legislation

 

Your remuneration, as specified in the sub-clauses of Clause 5 above, includes all payments and benefits that the Company is obliged to provide to you or on your behalf. If there are any newly introduced payments, benefits, restrictions or obligations which become applicable under legislation then both you and the Company agree to be bound by such changes.

 

7.                                      Performance Review

 

Your performance will be formally reviewed at least once each year.

 

8.                                      Computer Use

 

Your use of the Company’s computers and all electronic networked services such as electronic mail, the internet and intranet, must be strictly in accordance with any relevant Company policies as amended from time to time. In particular, you must not use any unauthorised computer disk or information technology storage device in the Company’s computer system. You acknowledge that a serious breach of this policy may constitute a disciplinary offence.

 

9.                                      Annual Leave

 

You will be entitled to 20 days annual leave per annum, in accordance with applicable legislation as in force from time to time and also in accordance with the Company’s Leave Policy, as amended from time to time.

 

You will be paid out any accrued but untaken annual leave on termination of your employment. This will be calculated in accordance with applicable legislation as in force at the time of the termination.

 

To the extent permitted by law, the Company will deduct from your salary, or any other payment due to you, a day’s pay for each day which you have taken in excess of your entitlement as at the date of your termination of employment.

 

10.                               Long Service Leave

 

You are entitled to long service leave under the laws of the State of Victoria. Your prior periods of service with the Company will determine your eligibility for long service leave, however only your periods of service in the State of Victoria will count towards the accrual of any long service leave entitlement.

 

11.                               Personal Leave

 

If you suffer a personal illness or injury, or you are required to provide care or support to a member of your immediate family or household who requires that care because of a personal illness or injury or an unexpected emergency, you will be entitled to paid personal leave of 10 days per annum (pro-rata if working part-time), in accordance with applicable legislation as in force from time to time and the Company’s Personal Leave Policy, provided you comply with the rules and procedures of the Policy, as amended from time to time.  Payment for periods in excess of legal entitlements for personal leave may be granted under the Company’s Sick Leave Policy (as amended from time to time). Also, you may be entitled to unpaid personal leave in some circumstances.

 

You will not be paid out accrued but untaken personal leave on termination of employment.

 

 

The Company reserves the right, where it considers it reasonably necessary, to require you to undergo a medical examination by a doctor nominated by the Company at its expense.

 

You consent to any such medical report being disclosed, in confidence, to the Company.

 

12.                               Compassionate Leave

 

You will be entitled to a period of 2 days paid compassionate leave for each permissible occasion as defined in section 104 of the Fair Work Act 2009 (Cth), in accordance with applicable legislation as in force from time to time and the Company’s policy, as amended from time to time. You will not be paid out accrued but untaken compassionate leave on termination of employment.

 

13.                               Parental leave

 

You are entitled to apply for parental leave in accordance with the provisions of the Company’s Parental Leave Policy (as amended from time to time). You will not be paid out accrued but untaken parental leave on termination of employment.

 

14.                               Public Holidays

 

You are entitled to public holidays gazetted for the State of Victoria.

 

15.                               Business Expenses

 

The Company will reimburse you for reasonable costs that you necessarily incur in the performance of your duties. Claiming of expenses must be in accordance with the Company policy and administrative systems as applicable from time to time, and are to be approved by the Chairman in a form that he/she desires (acting reasonably).

 

16.                               Termination of Employment

 

Your employment may be terminated as follows.

 

(i)                       Termination on Notice- Employee - You may terminate your employment by giving not less than 6 months’ written notice to the Company, unless the Company agrees to accept a shorter period of notice (although no payment will be made to you on account of any period waived).

 

(ii)                    Termination on Notice - Company- the Company may terminate your employment by giving 12 months’ notice to you.

 

(iii)                 Summary Termination of Employment- Company- Your employment may be terminated by the Company immediately and without notice (and without payment in lieu of notice) if you commit:

 

·                  a serious or persistent breach of any of the terms or conditions of your employment; or

 

·                  any willfully and materially negligent act in the course of your employment; or

 

·                  any criminal offence for which you are convicted which, in the reasonable opinion of the Company, impairs your ability to perform your duties; or

 

·                  any wrongful or dishonest or fraudulent act or conduct which, in the reasonable opinion of the Company, brings the Company into disrepute; or

 

·                  any other act which would entitle the Company to dismiss you summarily.

 

(iv)                Termination for Good Reason- Employee- You may terminate your employment by giving not less than 3 months’ written notice to the Company in the following circumstances:

 

·                  your position, title, duties, responsibilities or accountabilities are materially adversely altered without your consent;

 

 

·                  you are required to relocate outside of Australia without your consent or on terms other than as contemplated in this contract;

 

·                  the Company is no longer listed, or its shares quoted, on the Australian Securities Exchange;

 

·                  your remuneration package at target incentive levels and maximum incentive levels (as stated in Attachment 1 and reviewed from time to time) is materially changed

 

·                  without your consent, in circumstances where the change is disproportionate to any changes affecting other executive officers of the Company (this clause does not apply to reduced actual remuneration as a result of failure to meet relevant performance targets); or

 

·                  the Company commits a serious or persistent breach of its obligations under this contract.

 

(v)                   Termination on Death or Permanent Disability- Your employment will be deemed to be terminated if you:

 

·                  die (as confirmed by a certificate of death), on the date of such death;

 

·                  become of unsound mind or becomes liable to be dealt with under any law relating to mental health;

 

·                  become permanently disabled or incapacitated by reason of illness, accident, or other physical or mental disability, such that, in the opinion of an independent physician, you are rendered incapable of performing the services contemplated by this contract for an aggregate period of 180 days in any 12 months period, on the date of determination of such disability or incapacitation; or

 

are advised by an independent physician, that your health has deteriorated to such a degree that it is advisable for you to leave the service of the Company.

 

In the event of termination under Clause 16(i), 16 (ii) or 16(iv), the Company may elect to pay your salary in lieu of all or part of any notice period. Payment in lieu of notice will be calculated on the dollar value of your base salary as at the date of termination or deemed termination of your employment.

 

In the event of termination under Clause 16(v), the Company agrees that you will be entitled to receive a payment, on the date of deemed termination, equal to the same amount that you would have received if the Company had terminated your employment under Clause 16(ii) and elected to pay your salary in lieu of all of that notice period. Any payments under this clause will be reduced to the extent you or your estate receives an insurance payment under a Company funded insurance policy, but this does not include insurance payments that you may receive by way of your participation in Company pension plans.

 

During any period of notice, the Company may require you (during all or part of the notice period) not to carry out any of your duties and responsibilities, not to attend work, not to access the Company’s computer systems and/or not to have any contact with any customers, suppliers or employees of the Company or any company in the Company Group and the Company may withdraw any powers vested in you.

 

The total of any payments made on termination under this Clause 16, or under any other provisions in this contract, or other discretionary payments made outside this contract including any unvested awards under the Company’s incentive plans cannot exceed the maximum amount prescribed within the Corporations Act or otherwise approved by shareholders of the Company.

 

17.                               Company Property, Accrued Entitlements and Debts to the Company

 

All equipment issued to you in connection with your employment remains the property of the Company.

 

Upon termination of your employment or at the Company’s request at any time, you will immediately return to the Company all documents, manuals, keys, access cards and property belonging to the Company or to any of the Company’s clients that are in your possession or control.

 

If this contract is terminated for whatever reason, the Company will pay to you on the date of

 

 

termination, in addition to any termination payment to which you are entitled under Clauses 16and28:

 

·                  all accrued but unpaid TFR;

·                  payment for any accrued but untaken annual leave entitlement;

·                  any long service leave entitlement; and

·                  reimbursement of expenses under Clause 15.

 

Upon termination of your employment, unless another repayment scheme has already been agreed with the Company, you authorise the Company to the extent permitted by law to deduct from your final entitlements any loans, debts, overpayments or other obligations owed to the Company by you.

 

18.                               Other consequences of termination

 

At the same time as you sign this letter to indicate your acceptance of the offer of employment, you will sign and deliver to the Chairman the letter of resignation as a director.

 

By doing so, you agree that immediately upon termination of your employment for any reason, or upon Amcor giving you notice of termination under Clause 16 above, the Chairman may date and deliver that letter to the relevant company secretary to effect your resignation as a director from Amcor Limited and any related bodies of corporate of which you are an officer.

 

19.                               Human Resources Policies

 

You are expected to familiarise yourself and comply with the terms of the Company’s policies.

 

The Company may vary or replace the terms of its human resources policies and introduce new policies from time to time, and will notify you of any such variation or replacement. The Company’s Human Resources (and other) Policies are not a term or condition of this agreement.

 

20.                               Conflict of Interest

 

During your employment with the Company or a company within the Company Group, you must not be involved with or have a financial interest (other than an investment shareholding of no more than 5%) in any business or enterprise that:

 

·                  competes with;

 

·                  is a customer of; or

 

·                  supplies goods or services to

 

the Company and any company in the Company Group.

 

You must arrange your affairs so that it could not be reasonably alleged that there is a conflict between your interests and those of the Company and any company in the Company Group, and the Company will not require you, and you are not required, to engage in any conduct or activity that may reasonably cause any allegation that there is such conflict.

 

21.                               Confidential Information

 

During your employment, you will be exposed to, or will generate, information in relation to the Company or any other company in the Company Group, that is not in the public domain, including but not limited to:

 

(1)                                financial affairs;

 

(2)                                suppliers;

 

(3)                                customers and clients (including lists of names and addresses);

 

(4)                                future plans, research and development;

 

(5)                                business methods, systems and strategies;

 

 

(6)                                technical operations;

 

(7)                                contractual arrangements;

 

(8)                                intellectual property;

 

(9)                                pricing policies and costings; and

 

(10)                         any other commercial, financial or technical information,

 

of the Company and any company in the Company Group, and Know-How (as defined in Clause 22 of this Global Contract).

 

Throughout and at all times following the termination of your employment, you must not use, disclose or communicate this information which you have come to know or received or obtained at any time or disclose documents or copies of documents in any form (including on any media or device) belonging to the Company containing such information to any unauthorised person or to allow an unauthorised person access to or copy of such information or use it for purposes other than those of the Company. In particular, you must not permit this information to be disclosed to competitors of the Company and any other company in the Company Group.  You must report any approach made to you to provide this information.

 

You must not disclose or use, for your own purposes or those of any person associated with you, any knowledge of financial results of the Company and any company in the Company Group prior to their release to the public. In particular, you must not disclose or use any information concerning the Company which, if publicly disclosed, could affect the market price of the Company’s shares.

 

Nothing in this contract shall restrict your rights to make a protected disclosure under the specific protected disclosure legislation that applies to your jurisdiction.

 

22.                               Intellectual Property

 

22.1                        Definitions:

 

Intellectual Property Rights means:

 

a)             all rights conferred by statute, common law or in equity and subsisting anywhere in the world in relation to:

 

i.                  registered and unregistered copyright;

 

ii.               inventions (including patents, innovation patents and utility models);

 

iii.            confidential information, trade secrets, technical data and Know-how;

 

iv.           registered and unregistered designs;

 

v.              registered and unregistered trademarks;

 

b)             any other rights resulting from intellectual activity in the industrial, commercial, scientific, literary or artistic fields which subsist or may hereafter subsist;

 

c)              any license to use a domain name granted in the .au or the .com domain;

 

d)             any applications and the right to apply for registration of any of the above; and

 

e)              any rights of action against any third party for infringement of or in connection with the rights included in paragraphs (a) to (d) above,

 

but excluding moral rights, and similar personal rights, which by law are non- assignable, and any right to claim (and retain) damages and other remedies in relation to those non-assignable personal rights.

 

Know-How means information, know-how and techniques (whether or not confidential and in

 

 

whatever form held) including:

 

a)             formulae, discoveries, design specifications, drawings, data, manuals and instructions;

 

b)             customer lists, sales marketing and promotional information;

 

c)              business plans and forecasts; and

 

d)             technical or other expertise,

 

which have been or are in the future conceived, created, developed, prepared or produced by you in the course of your employment under this contract.

 

Works means all works, designs, materials, concepts and other subject matter, including drafts, variations and elements thereof, which have been or are in the future conceived, created, developed, prepared or produced by you in the course of your employment under this contract.

 

23.                               Protection of Intellectual Property

 

Except as otherwise provided by law, you acknowledge that the Company owns and will own all right, title and interest to any and all Intellectual Property Rights in the Works.

 

You hereby irrevocably and unconditionally assign to the fullest extent permitted by law either present or future, and exclusively to the Company:

 

·                  all right, title and interest in any and all Intellectual Property Rights in the Works; and

 

·                  all rights conferred by statute, common law or in equity and subsisting anywhere in the world in relation to the Know-how, including all rights to claim (and retain) any damages or other remedies (including but not limited to an account of profits) for past misuse or unauthorised disclosure of the Know-How which arose before this assignment.

 

You acknowledge that:

 

·                  the Company may make any use or disclosure of the Know-How as it thinks fit; and

 

·                  any improvement to or development of any of the Works or Know-How, including all Intellectual Property Rights in the Works and all rights in the Know-How, made by or for the Company during or after the termination of this contract will be the sole property of the Company.

 

The Company may apply for, in its own name and at its cost, any rights in respect of the Works or Know-How or any improvement or development.

 

You agree to, at the Company’s cost, do all things and execute all deeds, instruments, transfers or other documents as may be necessary or reasonable to give full effect to the provisions of this Clause 23, including (but not limited to) the provision of any reasonable assistance (at the request of the Company) in the preparation or prosecution of any patent or design applications and also the provision of all reasonable assistance as the Company may request to allow the Company to obtain, perfect, enforce, assert or defend any of its interests, rights or consents acquired or obtained (or sought to be acquired or obtained) directly or indirectly from this clause.

 

24.                               Consents and warranties

 

a)             You agree that, in providing, reproducing, enhancing or maintaining any Works, you will act in the course of your employment as an employee of the Company pursuant to this contract.

 

b)             You agree not to grant any licence in respect of the Works, including all Intellectual Property Rights in the Works, to anyone other than the Company or any other member of the Company Group, without the Company’s consent.

 

c)              Where you create or make or are involved in creating or making any Works (including future Works) while in the course of employment, you irrevocably and unconditionally consent, to the

 

 

maximum extent permitted by law (either present or future), to the Company and any person licensed or authorised by the Company, doing anything in relation to the Works that (but for this consent) would or might otherwise infringe any of your moral rights or similar rights anywhere in the world, and you waive all your present and future moral rights which arise under your jurisdiction’s legislation.

 

25.                               Delivery

 

You must, at the Company’s cost, promptly reduce into material form, and deliver into the physical possession and control of the Company all material forms and embodiments (including those stored in electronic or similar media) of, the Works and Know-How, as directed by the Company.

 

26.                               Anti-trust (Anti-competition)

 

You must not knowingly engage in any conduct in the course of your employment that contravenes applicable trade practices or anti-trust (anti-competition) law wherever you work.

 

The Company will not require you, and you are not required, to engage in any conduct or activity that may result in a breach by you of this Clause 26.

 

27.                               Personal Data and Privacy

 

You give the Company permission to collect, retain and process personal information about you that is reasonably necessary for the purpose of administering your employment, provided that the Company respects and protects the privacy of all personal information that is collected, handled, stored or transferred by or on behalf of it.

 

It may be necessary for the Company to disclose these data to others for that purpose, including other employees of the Company, companies in the Company Group, the Company’s professional advisers, and government authorities and other authorities (under a legal requirement), and potentially out of your jurisdiction. You consent to the processing, use, disclosure and transfer by the Company of personal data relating to you if such disclosure is necessary.

 

Notwithstanding anything else, the Company undertakes not to engage in conduct which could reasonably be alleged to be contrary to applicable privacy legislation.

 

You must respect and protect the privacy of personal information which you collect, handle, store or transfer in the course of your employment with the Company. You must not engage in conduct which could reasonably be alleged to be contrary to applicable privacy legislation. You are required to read and familiarise yourself with the Company’s Privacy Policy and Guidelines.

 

28.                               Restrictions

 

The restraints contained in this Clause 28 apply for a period of 12 months commencing from the date that notice of termination of your employment is given under Clause 16 (whether by you or the Company) (Restraint Period):

 

You understand that the Company has a right to protect its interests. In the course of your employment you are likely to obtain knowledge of trade secrets and confidential information with respect to products developed by the Company or any company in the Company group.

 

If directed by the Company, you must not, after the cessation of your employment with the Company, directly or indirectly:

 

a)             represent yourself as connected with or interested in the business of the Company;

 

b)             for the applicable Restraint Period and in the Restraint Area:

 

(i)                       perform Restricted Services in the business of any Direct Competitor;

 

(ii)                    supply Restricted Goods to any Customer, or assist another person to do so, for or on behalf of a Direct Competitor;

 

 

(iii)                 solicit, or endeavor to solicit away from the Company, any Customers;

 

(iv)                provide information about any Customers and Confidential Information (as defined in clause 21), Intellectual Property Rights or Know-How (as defined in clause 22) to another person or assist another person in soliciting or endeavoring to solicit away from the Company any Customers;

 

(v)                   provide information about any of the Company’s Employees, Agents or Contractors to another person or assist another person in inducing or encouraging any Employees, Agents or Contractors to leave their employment or agency, or to cease providing services to the Company or any company in the Company group; or

 

(vi)                induce or encourage any Employees, Agents or Contractors to leave their employment or agency or to cease providing services to the Company or any company in the Company group

 

In this clause:

 

·                            “Customer “ means any material customer of a Material Business;

 

·                            “Direct Competitor” means any person conducting a material business in the Restraint Area that is in direct competition with a Material Business being carried on by the Company or any company in the Company Group as at the date of termination of your employment;

 

·                            “Employees, Agents or Contractors” means any person who was employed by, acted as an agent for, was engaged by, or provided personal services to the Company or any company in the Company group who was in a position of responsibility or had access to confidential information or whose departure could have a detrimental effect on the Company and with whom you had contact during the final 12 months of your employment or if you have been employed by the Company for less than 12 months this lesser period applies;

 

·                            “Material Business” means a business unit within the Company or the Company Group that generated at least 5% of the total revenue of the Company Group, in the last complete financial year immediately prior to the date of termination of your employment;

 

·                            “Restraint Area” means all regions in which the Company operates a Material Business as at the date of termination of your employment;

 

·                            “Restricted Goods” means goods the same as or substantially similar to the goods that you dealt with on behalf of the Company or any company in the Company group during the final 12 months of your employment or if you have been employed by the Company for less than 12 months this lesser period applies;

 

·                            “Restricted Services” means services the same as or substantially similar to the services that you provided to the Company or any company in the Company group or on its behalf during the final 12 months of your employment or if you have been employed by the Company for less than 12 months this lesser period applies; and

 

·                            “You” means you personally and any entity that you directly or indirectly manage or control;

 

If any provision of this clause is unenforceable, illegal or void that provision is severed and the other provisions of this Clause remain in force.

 

29.                               Disciplinary and Grievance Procedures

 

The Company’s policies on disciplinary and grievance procedures apply to your employment.

 

30.                               Severability

 

If any clause or part of a clause of your contract of employment is unenforceable, illegal or void that provision is severed and the remaining part of the clause and all other clauses of this contract remain in full force and effect and will not in any way be impaired.

 

 

31.                               Entire Agreement and General Clauses

 

This Global Contract (Attachment 2), the attached Offer Letter, the Total Remuneration Statement (Attachment 1), Attachment 3 and the Deed of Appointment (Attachment 4) comprise the entire agreement between you and the Company with respect to the terms of your employment.

 

32.                               Governing Law

 

Your contract of employment with the Company and any dispute concerning the terms and conditions of your employment will be governed by and determined in accordance with the laws of Victoria.

 

33.                               Dispute Resolution

 

Any dispute that arises concerning your employment must be conciliated through the Board.

 

34.                               Effect United States Tax Laws

 

Section 409A: To the extent permitted by law, payments and benefits provided under or referenced in this contract of employment are intended to be designed in such a manner that they are either exempt from the application of, or comply with, the requirements of, Section 409A of the United States Internal Revenue Code and the regulations issued thereunder (collectively, as in effect from time to time, “Section 409A”) and shall be construed, administered and interpreted in accordance with such intention. If, as of the date of your termination, you are a “specified employee” within the meaning of Section 409A, then to the extent necessary to comply with Section 409A and to avoid the imposition of taxes and/or penalties under that Section, payment to you of any amount or benefit under this contract of employment or any other Company plan, program or agreement that constitutes  “nonqualified deferred compensation” under Section 409A and which under the terms of the employment contract, plan, program or arrangement would otherwise be payable as a result of and within six (6) months following such termination shall be delayed, as provided under current regulatory requirements under Section 409A, until the earlier of (i) five (5) days after the Company receives notification of your death or (ii) the first business day of the seventh month following the date of your termination.

 

Any payment or benefit under this contract of employment or any other Company plan, program or agreement that constitutes nonqualified deferred compensation and that is payable upon a termination of your employment shall only be paid or provided to you upon a “separation from service”. If you or the Company determine that any payment, benefit, distribution, deferral election, or any other action or arrangement contemplated by the provisions of this contract of employment or any other Company plan, program or agreement would, if undertaken or implemented, cause you to become subject to taxes and/or penalties under Section 409A, then such payment, benefit, distribution, deferral election or other action or arrangement shall not be given effect to the extent it causes such result and the related provisions of this contract of employment or other Company plan, program or agreement will be deemed modified in order to provide you with the intended economic benefit and comply with the requirements of Section 409A.

 

Section 280G/Section 4999: In the event it shall be determined that any payment, benefit or distribution to or for your benefit, or the acceleration thereof, under this contract of employment or from any other source (collectively “Total Payments”), would be subject to the excise tax imposed by Section 280G and Section 4999 of the United States Internal   Revenue Code, such Total Payments shall be reduced, to the extent permitted by law, to the extent necessary to avoid such result; provided, however, that no such reduction shall occur if (i)  the net amount of such Total Payments as so reduced (after subtracting the net amount of all applicable taxes on such reduced Total Payments) is less than (ii) the net amount of such Total Payments without such reduction (after subtracting the net amount of all applicable taxes, including the excise tax described in this paragraph, on such unreduced Total Payments).

 

35.                               General

 

Your contract of employment with the Company is on a personal and confidential basis and should be treated as such except as required by law.

 

 

5 June 2015

 

INTERNATIONAL ASSIGNMENT TO SWITZERLAND

 

ASSIGNMENT TERMS AND CONDITIONS

 

Total Fixed Remuneration

 

Following your relocation to Switzerland, you will remain on your agreed base salary of USD 1,400,000. You will also continue to receive USD 300, 000 of Other Fixed Remuneration (OFR) which makes your Total Fixed Remuneration USD 1,700,000.

 

Payroll

 

While you are based in Switzerland, you will continue to be paid from the US payroll and payments will be made into your US bank account. You may elect to also receive a portion of salary in Switzerland, which will typically be delivered from the Swiss payroll into a Swiss bank account.

 

As agreed, the delivery of any payments in Switzerland will be converted using the average monthly exchange rate for the preceding month.

 

Pension

 

Covered under Relocation policy

 

Management Incentive Plan

 

You are invited to participate in the Company’ s Management Incentive Plan (“ MIP”) subject to the rules which are set by the Board from time to time.

 

Long Term Incentive Plan

 

You are invited to participate in the Company’s Long-Term Incentive Plan {“LTIP”) subject to the rules which are set by the Board from time to time.

 

Relocation Benefits

 

Covered under Relocation policy

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