Document:

Exhibit 10.33

 

DATED the        day of         2012

 

Tetricus Limited

 

and

 

GW Pharma Limited

 

 

TENANCY AGREEMENT

 

of

 

Rooms 12a, 12b, 12c, 15, 17, 31, 38a, 38b, 50 and UKI in Building 114
 Porton Down Science Park, Porton Down
 Wiltshire

 

 

 

THIS AGREEMENT is made the 19th day of November 2012

 

PARTICULARS

 

	
The   Tenant:
    	
 
    	
GW   Pharma Ltd
    
	
 
    	
 
    	
 
    
	
The   Guarantor:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
The   Property:
    	
 
    	
Rooms   12a, 12b, 12c, 15, 17, 31, 38a, 38b, 50 and UK1 in Building 114, Porton Down   Science Park, Porton Down, Wiltshire
    
	
 
    	
 
    	
 
    
	
The Landlord’s   Property:
    	
 
    	
The   land demised to the Landlord by the Superior Lease or such greater or lesser   area on the Estate as is from time to time managed by the Landlord
    
	
 
    	
 
    	
 
    
	
The   Estate:
    	
 
    	
The   Superior Landlord’s Estate known as Porton Down Science Park DSTL Porton Down   Wiltshire
    
	
 
    	
 
    	
 
    
	
Term   Commencement Date:
    	
 
    	
1st August 2012
    
	
 
    	
 
    	
 
    
	
Term:
    	
 
    	
One   year
    
	
 
    	
 
    	
 
    
	
Rent:
    	
 
    	
£52,815.14   per annum payable monthly in advance, exclusive of VAT
    
	
 
    	
 
    	
 
    
	
First   Payment:
    	
 
    	
£   4,401.26 in respect of the period from 1st August 2012 to 31st August 2012
    
	
 
    	
 
    	
 
    
	
First   Rent Payment Date:
    	
 
    	
1st August 2012 or the date of this Agreement
    
	
 
    	
 
    	
 
    
	
Notice   Period:
    	
 
    	
Six   months
    
	
 
    	
 
    	
 
    
	
Permitted   Use:
    	
 
    	
Offices   associated with research and development
    

 

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We hereby agree to be bound by the terms of this tenancy agreement as set out in the above particulars and terms and conditions following

 

	
Signed   by/on behalf of the Landlord
    	
/s/   [ILLEGIBLE]
    	
(duly   authorized)
    
	
 
    	
 
    	
 
    
	
Signed   by/on behalf of the Tenant
    	
/s/   Adam George
    	
 
    
	
(in   person/duly authorised director if a company)
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed   by/on behalf of the Guarantor
    	
 
    	
 
    
	
(in   person/duly authorised director if a company)
    	
 
    	
 
    
					

 

TERMS AND CONDITIONS

 

AN AGREEMENT made on the date specified in the Particulars between (1) Tetricus Limited (“the Landlord”) (2) the Tenant defined in the Particulars and (3) the Guarantor (if any) defined in the Particulars

 

WHEREBY IT IS AGREED as follows:

 

In this Agreement

 

1.                                      Definitions and Interpretation

 

1.1                               “the Building” means Building 114 forming part of the Landlord’s Property

 

1.2                               “the Conduits” means channels drains and watercourses pipes cables and other service media

 

1.3                               “domestic” means such quantities consumed or used by comparable properties on the Estate

 

1.4                               “Notifiable Event” means the spilling or deposit on the Property, the Landlord’s Property or the Estate of any noxious substance in a quantity which would cause damage to or pollution of the environment or harm to human health comfort or safety

 

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1.5                               “Outgoings” means rates, taxes, duties, charges, assessments, impositions and outgoings whether parliamentary, parochial, local or of any other description and whether of the nature of capital or revenue and even though of a wholly novel character save for any such outgoing payable in respect of any dealing or deemed dealing with any reversionary interest in the Property

 

1.6                               “the Particulars” means the particulars appearing under the heading “Particulars” which are included in and form part of this Agreement and the meanings of words and expressions used in the Particulars shall be the meanings for the purposes of the Agreement; and

 

1.7                               “the Planning Acts” means the Town and Country Planning Act 1990 and the other enactments defined as the “Planning Acts” in Section 336 of the Town and Country Planning Act 1990 and every other enactment relating to the use development and occupation of land and buildings for the time being in force

 

1.8                               “the Property” means the Property described in Part 1 of the First Schedule and each and every part of it

 

1.9                               “the Superior Landlord” means the person entitled from time to time to the reversion immediately expectant upon the termination of the Superior Lease

 

1.10                        “the Superior Lease” means the lease of the Landlord’s Property dated 23rd December 2004 and made between the Secretary of State for Defence (1) and Tetricus Limited (2)

 

1.11                        Any reference express or implied to an enactment includes any statutory modification or re-enactment of it and any subordinate legislation made under that enactment and any consents, licences and permissions given under that enactment or subordinate legislation, in any such case whether made before or after the date of this Agreement

 

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2.                                      Lease

 

THE Landlord agrees to let and the Tenant agrees to take the Property on and from the Term Commencement Date for the Term and paying the Rent the First Payment to be made on the First Rent Payment Date and subsequent payments to be made at the times stated in the Particulars and by way of banker’s order if the Landlord so requires

 

3.                                      Services and Utilities

 

The Landlord agrees that unless prevented by circumstances outside the control of the Landlord the Landlord will use reasonable endeavours to procure that the following services are provided to the Property;

 

3.1                               At no additional charge:

 

(a)                                 heat, electricity and domestic quantities of drinking water and domestic sewerage disposal

 

(b)                                 car parking

 

(c)                                  Estate security and visitors reception: and

 

(d)                                 grounds maintenance of the Estate

 

(e)                                  emergency cover by the Estate Fire Service

 

(f)                                   mail and messenger services for deliveries only

 

(g)                                  removal of domestic waste

 

(h)                                 maintenance of Estate infrastructure including without limitation:

 

(i)                                     the roads and tracks

 

(ii)                                  car parking areas

 

(iii)                               conduits necessary for the supply of heating, water, electricity and drainage services to the Property

 

on the Estate over which the Tenant is granted rights pursuant to this Agreement

 

3.2                               Access to other Estate facilities at the discretion of the Landlord and the Superior Landlord on a request basis by the Tenant subject to availability and to separate payment by the Tenant according to use

 

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3.3                               If meters are installed for the measurement of the amount of electricity consumed in the Building the Landlord shall provide the Tenant with reasonable prior written notice of this and this clause 3 shall be modified in respect of the supply of electricity to the Property so that:

 

(a)                                 The Landlord will calculate the monthly cost of electricity consumed at the Property by reference to the following formula where:

 

C = (M/T x 2,941.65)

 

Where C = Monthly Costs of electricity consumed at the Property

 

M = Monthly metered charge for electricity supplied to the Building

 

T = Total tenanted area in the Building in square feet

 

2,941.65 = Area of the Property in square feet

 

(b)                                 The Tenant will pay to the Landlord on demand the sum by which “C” exceeds the sum of four hundred and ninety six pounds and eighty five (£490.28):

 

3.4                               The Landlord shall have no responsibility for any diminution in pressure quantity or quality interruption or cessation of supplies of heating and electricity drinking water or domestic sewerage disposal

 

4.                                      Break Clause

 

4.1                               If a Notice Period is stated in the Particulars this Agreement may be determined by written notice of not less than the Notice Period served by either party on the other party in accordance with clause 8.4 below and expiring on or after the time specified in such notice

 

4.2                               This Agreement shall terminate automatically immediately prior to the grant of any new tenancy of or including the Property to the Tenant

 

4.3                               If the Landlord receives written notice at any time of the desire of Superior Landlord to determine the Superior Lease and to resume possession of the Property by the giving of a certificate pursuant to Section 58(1) of the Landlord and Tenant Act 1954 

 

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that for reasons of national security it is necessary that the use or occupation of the Property should be discontinued or changed then the Landlord shall provide a copy of the Superior Landlord’s notice and of such certificate to the Tenant as soon as reasonably practicable following receipt and this Agreement shall determine on the date specified in the Superior Landlord’s notice but without prejudice to any right or remedy which either party may have in respect of any antecedent breach of any of the covenants or conditions contained in this Agreement.

 

5.                                      Tenant’s Covenants

 

THE Tenant agrees with the Landlord as follows:

 

5.1                               To pay the Rent on the days and in the manner set out in the Particulars without deduction or legal or equitable set off

 

5.2                               To pay interest at the rate of 4% above the base rate from time to time of National Westminster Bank Plc (or such other member of the committee of London Clearing Banks as the Landlord may from time to time nominate) in respect of any Rent or other sum due under this Agreement which remains unpaid for seven days from the due date in respect of the period from the due date until the date on which the same is paid

 

5.3                               To:

 

(a)                                 pay all present and future Outgoings assessed, charged or imposed on, or payable in respect of the Property or assessed, charged or imposed on, or payable by the owner or occupier of the Property;

 

(b)                                 pay the proportion properly attributable to the Property (which shall be conclusively determined by the Landlord) of all Outgoings assessed, charged or imposed on, or payable in respect of the Property and other properties or assessed, charged or imposed on, or payable by the owner or occupier of the Property and other properties;

 

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(c)                                  pay all charges for telecommunications in respect of the Property (including equipment rents and line rental standing charges); and

 

(d)                                 if the Landlord loses rating relief because it has been allowed to the Tenant or any person deriving title under the Tenant during the Term, make good that loss to the Landlord.

 

5.4                               To keep the Property clean and in good and tenantable repair and working order and decorative condition (fair wear and tear excepted) and to keep any vacant land comprised within the Property free from weeds and rubbish and in a neat and tidy condition and if landscaped or planted or used as a garden or ornamental grounds at the date of this Agreement to keep the same in a good state of cultivation and fertility

 

5.5                               To keep all plant apparatus and machinery in the Property properly maintained and in good working order and for that purpose to enter into contracts with reputable contractors for the regular periodic inspection and maintenance of them and to ensure that all plant apparatus and machinery is properly operated and to produce evidence of the existence of such contracts to the Landlord on demand

 

5.6                               To remedy to the satisfaction of the Landlord all breaches of covenant notified by the Landlord to the Tenant for which the Tenant is liable under this Agreement as soon as possible and in any event within two months after service of the notice. If the Tenant fails to do so the Landlord may enter the Property and remedy the breach. All costs and expenses incurred by the Landlord shall be paid by the Tenant on demand.

 

5.7                               Not to affix any wireless or television aerial brackets stays or ancillary wiring on or to the exterior of the Property until written approval has been given by the Landlord and then only in accordance with any conditions he may impose

 

5.8                               Not to exhibit in or upon the exterior of the Property any advertisement signs posters or name plates whatsoever without the written consent of the Landlord

 

5.9                               Not to make any alterations in or additions to the Property nor to do any damage to the Property and at the determination of the tenancy to deliver up the Property in clean condition and otherwise in accordance with all of the covenants on the part of the 

 

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Tenant contained in this Agreement and having made good to the satisfaction of the Landlord all damage caused by the removal of any tenant’s or trade fixtures

 

5.10                        Not to assign underlet charge grant any licence in respect of or part with or share occupation or part with the possession of the Property or any part of it

 

5.11                        Not to do on the Property or any part of it any act or thing which shall or may be or become a nuisance damage or annoyance to the Landlord, the Superior Landlord or the tenants or occupiers of any adjoining or neighbouring property or the neighbourhood

 

5.12                        Not to bring or keep on the Property or the Estate any livestock or other animals and not to carry out on the Property any experiment or other scientific or medical procedure on livestock or other living animal.

 

5.13                        Not to use the Property for the holding of public meetings or auction sales or as a residence or sleep at the Property.

 

5.14                        Not to use the Property for or in connection with pornographic purposes of any kind or the production processing distribution or sale of pornographic material.

 

5.15                        Not to use the Property for the purpose of any gambling within the meaning of the Gambling Act 2005.

 

5.16                        Not to use the Property otherwise than for the Permitted Use and to obtain all regulatory and supervisory approvals, licences and consents for the Permitted Use Provided that nothing in this Agreement shall imply or warrant that the Property may be used for or is fit for any particular purpose

 

5.17                        Not to carry out any development of in or on the Property which would require planning permission under the Planning Acts

 

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5.18                        To give full particulars to the Landlord within seven days of receipt of any notice relating to the Property served on the Tenant by a local planning authority under or by virtue of the Planning Acts and if required by the Landlord to produce the same to him

 

5.19                        Not to do or omit any act matter or thing in or respecting the Property which shall contravene any of the provisions of the Planning Acts

 

5.20                        Not to do or omit anything on the Property which would increase the risk of fire and to take all proper precautions to the satisfaction of the Landlord for fire prevention

 

5.21                        Not to do or omit anything on the Property which may cause any insurance effected by the Landlord or the Superior Landlord on or in respect of the Landlord’s Property or the Estate to become void or voidable or which may increase any premiums payable for such insurance and to comply with the regulations conditions and requirements of any such insurance

 

5.22                        Not at any time to store on the Property any explosive or petroleum spirit or any other articles of inflammable, offensive, combustible, radio-active, explosive or dangerous nature or in any way significantly increase the risk of fire or explosion or injure by percolation, corrosion or otherwise the Property or the Estate without the written consent of the Landlord and if such consent shall be given to obtain any necessary licences for such storage including those in accordance with the provisions of the Explosive Acts of 1875 and 1923 and to produce the current licences to the Landlord whenever required and to comply with any requirements of the Landlord or the local authority in regard to such storage

 

5.23                        To take all practicable precautions to ensure that no noxious substances are spilled or deposited on the Property and that contamination of the Property does not occur

 

5.24                        Within one month after service upon the Tenant of notice of remediation (which shall mean works and the taking of other steps to prevent the entry into or on to any property of or remediation or mitigation of the effects of any substance harmful to humans, the environment or property in accordance with any enactment relating to the environment) to carry out the remediation works (if any) specified in the notice and if the Tenant shall not within one month after service of such notice or (in case of

 

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emergency) immediately after service of such notice commence and thereafter proceed diligently with the execution of such remediation works then to permit the Landlord and all persons authorised by it to enter upon the Property and to execute the necessary remediation works the cost of which shall be paid by the Tenant on demand and if not so paid the cost shall be a debt due from the Tenant to the Landlord and be forthwith recoverable by action notwithstanding the determination of the Term by whatsoever means

 

5.25                        Not to deposit on the Property any controlled waste as defined in Section 75 of the Environmental Protection Act 1990 or special waste as defined in the Control of Pollution Act 1990 or special waste as defined in the Control of Pollution (Special Waste) Regulations 1980 or radioactive waste as defined in Section 18 of the Radioactive Substances Act 1960 or any other substance which may produce concentrations or accumulations or noxious gases or noxious liquids which may cause pollution of the environment or harm to human health

 

5.26                        Within 14 days of the occurrence of a Notifiable Event to inform the Landlord of its occurrence and to permit the Landlord to enter and inspect the Property

 

5.27                        Not to discharge or allow to be discharged into any pipe or drain serving the Property any oil grease deleterious or other harmful matter or substance which might cause damage to the environment or be or become a source of danger or injury to those pipes or drains or any part of the Estate

 

5.28                        To indemnify and keep the Landlord indemnified against all actions claims and demands (including without limitation costs incurred under Section 61 of the Environmental Protection Act 1990) in respect of damage to or pollution of the environment or damage to property or harm to human health caused by the Property or any substance on it whether in liquid or solid form or in the form of gas or vapour

 

5.29                        Not at any time without the written consent of the Landlord (whose decision shall be final) to install or use in or on the Property any electrical equipment which would be likely to overload the electric wiring or cabling and in the event of such consent being given to carry out at the expense of the Tenant any consequential works to the wiring

 

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and cabling and take such precautions for the prevention of overloading as the Landlord shall reasonably direct

 

5.30                        Not to deposit any waste paper shavings or other refuse removed from the Property at any place within the Estate except such place as has been approved for that purpose by the Landlord and not to dispose of any waste oil within the Estate

 

5.31                        To observe and comply with any byelaws regulations or directions for the time being in force in respect of the Landlord’s Property or the Estate (including those imposed by the Superior Landlord in particular site safety and security regulations) and to use the Tenant’s best endeavours to ensure that all persons coming onto the Property with the consent of or at the invitation of the Tenant comply with the same and also at all times during the Term to conform in all respects with the provisions of and regulations under any general or local enactment which may be applicable to the Property or any part of it and not to do or omit to be done on the Property or any part of it any act thing or omission by which the Landlord or Superior Landlord might become liable to pay any penalty imposed or to bear the whole or any part of any expense incurred by any direction requirement Act or regulation as aforesaid

 

5.32                        During the last month of the tenancy to allow the Landlord or his agents to permit the Property to be inspected at any time by prospective tenants or purchasers

 

5.33                        To pay and indemnify the Landlord in respect of all Value Added Tax or similar tax or assessment on all services and supplies to the Tenant and on the rents payable hereunder and on any other payments under the terms hereof including any such tax incurred by the Landlord which the Landlord is unable to reclaim

 

5.34                        To allow the Landlord and all persons authorised by the Landlord to enter the Property at any reasonable time for the purpose of:

 

5.34.1                          Ascertaining whether the terms of this Agreement have been complied with; and in particular (but without limitation) for the purpose of ascertaining whether the Tenant has brought into the Property any hazardous equipment materials or other substances

 

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5.34.2                          Inspecting the fire appliances and doing repairs or making alterations either to the Property or to any adjoining property to any apparatus plant equipment fixture and fittings in or under the Property or belonging to the Landlord

 

5.34.3                          any reasonable purpose connected with the interest of the Landlord in the Property or its disposal or change

 

5.34.4                          to exercise any of the rights expected and reserved by this Agreement

 

5.35                                    At the expiration or sooner determination of the Term to yield up the Property:-

 

5.35.1                          In repair in accordance with the covenants contained in this Agreement; and

 

5.35.2                          Free from contamination arising as a direct result of the Tenant’s use of the Property by substances particularly harmful to humans, the environment; or the Property. Provided that the Tenant will not be responsible for any such contamination existing at the earlier of the date of this Agreement or the date on which the Tenant first occupied the Property

 

5.36                                    To pay to the Landlord in addition to any rents or other sums payable under or by virtue of this Agreement the amount of any value added tax (or similar tax whether in substitution for or in addition to it) which shall be chargeable in respect of any supply made by the Landlord to the Tenant under or by virtue of this Lease whether or not the same is chargeable by reference to the amount of such rents or other sums and whether or not as a result of the making of any election and so that amounts under this Clause shall be payable

 

5.36.1                          If chargeable by reference to rents or other sums at the same times as those rents or other sums are respectively payable

 

5.36.2                          In any other case on demand in writing from time to time by the Landlord

 

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5.37                        To provide facilities within the curtilage of the Property for the keeping of refuse in Proper receptacles readily accessible for collection

 

5.37.1                          To pay to the Landlord on an indemnity basis all costs fees expenses and commission (including bailiff’s commission) including VAT and disbursements) incurred by the Landlord of and incidental to or in connection with any of the following:

 

5.37.1.1                           The preparation and service of any notice under Section 146 of the Law of Property Act 1925 or incurred in or in contemplation of proceedings under Section 146 or 147 of that Act or under the Leasehold Property (Repairs) Act 1938 notwithstanding in any such case that forfeiture may be avoided otherwise than by relief granted by the Court

 

5.37.1.2                           The preparation service and negotiation of any notice or schedule relating to dilapidations whether the same is served during or after the termination of the Term

 

5.37.1.3                           The enforcement or of verifying compliance with any of the Tenant’s covenants and conditions contained in this Agreement whether during or after the termination of the Term

 

5.37.1.4                           Any application for a licence or consent required under this Agreement from the Landlord whether or not such licence or consent is granted

 

5.37.1.5                           The recovery or attempted recovery of arrears of rent or other sums due from the tenant

 

5.37.2                          To pay and make good to the Landlord all and every loss and damage whatsoever incurred or sustained by the Landlord as a consequence of any breach or non-observation of the Tenant’s covenants contained in this Agreement and to indemnify the Landlord from and against all actions claims liability costs and expenses thereby arising and in the event of

 

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forfeiture of this Agreement to indemnify the Landlord against all losses costs damages and expense incurred by the Landlord consequent upon such forfeiture

 

5.37.2.1                           Without prejudice to any other right or remedy available to the Landlord to indemnify and keep the Landlord effectually indemnified from and against all expenses proceedings claims damages costs demands loss and any other liabilities as a consequence of or in respect of:

 

5.37.2.1.1                              Damage to the Property, the Landlord’s Property or any part of the Estate caused by any act default or negligence of the Tenant or the servants agents licences or invitees of the Tenant

 

5.37.2.1.2                              Any injury to or death or any person damage to any property the infringement disturbance or destruction of any right easement or privilege or otherwise by reason of or arising directly out of the state of repair and condition of the Property (to the extent that the Tenant is responsible therefore under this Agreement) or arising directly or indirectly out of or in connection with the Permitted Use

 

6.                                      Landlord’s Covenants

 

The Landlord covenants with the Tenant that the Tenant paying the Rent and any other sum due under this Agreement as rent and performing the Tenant’s covenants contained in this Agreement shall peaceably enjoy the Property during the Term without any interruption or disturbance from or by the Landlord or any person lawfully claiming under or in trust for the Landlord

 

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7.                                      Re-Entry

 

7.1                               In this Clause a “Forfeiting Event” is any of the following:-

 

7.1.1                               Any rent is outstanding for twenty-one days after becoming due whether formally demanded or not

 

7.1.2                               A breach by the Tenant of any of the provisions of this Agreement

 

7.1.3                               In respect of an individual Tenant:

 

·                               an application is made for an interim order

 

·                               a bankruptcy petition is presented

 

·                               a proposal is made for a voluntary arrangement; or

 

·                              he enters into a deed of arrangement

 

7.1.4                               in respect of a company Tenant:-

 

·                               it goes into liquidation (whether compulsory or voluntary) but not a voluntary winding up for the amalgamation or reconstruction of a solvent company

 

·                               a receiver manager administrative receiver or provisional liquidator is appointed

 

·                               a petition is presented for an administration order; or

 

·                              a proposal is made for voluntary arrangements or a scheme of arrangement; or

 

7.1.5                               The Tenant has any distress or execution levied on its goods at the Property

 

7.2                               Whenever a Forfeiting Event exists the Landlord may enter the Property (or any part of it) at any time even if a previous right of re-entry has been waived and then the Term will end but any rights which have accrued for breach of any provision of this Agreement will remain including the breach under which the re-entry is made

 

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8.                                      General

 

8.1                               Except where otherwise provided by statute the Landlord shall have no liability to the Tenant or its licensees not to any other person for any accident happening or injury suffered in or on the Property or the Landlord’s Property nor shall the Superior Landlord have any liability to the Tenant or his licensees nor to any other person for any acts happening or injury suffered in or on the Estate

 

8.2                               It shall be lawful for the Landlord or the Superior Landlord or any person claiming under either of them at any time during the Term to build upon or otherwise use the adjoining or any adjacent land of the Landlord or the Superior Landlord in any way as they may think fit whether or not the access of light or air to the Property shall be thereby obstructed interfered with or destroyed

 

8.3                               Nothing contained in this Agreement shall be construed or be deemed to have effect so as to render any of the provisions of the Planning Acts applicable to the interest of the Superior Landlord in the Property or in any way to restrict or otherwise prejudicially affect any Crown privilege or exemption enjoyed by the Superior Landlord

 

8.4                               Any notice required to be given under this Agreement shall be in writing and any notice to the Tenant shall be deemed to be sufficiently served if addressed to the Tenant and left at or sent by registered or recorded delivery post to the Property or to other last known address or place of abode or business in England and Wales of the Tenant and any notice to the Landlord shall be deemed to be sufficiently served if forwarded by registered or recorded delivery post to:

 

The General Manager

Tetricus

Room 26

Building 227

Porton Down Science Park

Porton Down

Wiltshire       SP4 0JQ

 

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or such other address as the Landlord may notify the Tenant from time to time and (unless non-delivery is proved) a notice so sent by post shall be deemed to be given at the time when it ought in due course of post to be delivered at the address to which it is sent

 

8.5                               The Landlord served on the Tenant on 12th June 2012 a notice in the form set out in Schedule 1 to the Regulatory Reform (Business Tenancies) (England and Wales) Order 2003 (the “Order”) and the Tenant acting by ADAM GEORGE has made a declaration dated 18th June 2012 in the form set out in paragraph 7 of Schedule 2 to the Order and the parties hereto agree and declare that the provisions of Sections 24-28 of the Landlord and Tenant Act 1954 shall be excluded in relation to this Agreement

 

8.5.1                                 Nothing in this Agreement shall release the Tenant from his obligation under statutory requirements for health and safety and the Tenant shall provide written notice to the Landlord of any health or safety hazards associated with equipment materials other substances brought on to the Property or supplied to or used by the Landlord and the Tenant warrants that any equipment materials or substances which the Tenant brings on to the Property are not a safety hazard

 

8.5.2                                 Without prejudice to the generality of the foregoing the Tenant will comply in all aspects with the provisions of the Construction (Design and Management) Regulations 2007 (“the CDM Regulations”) whenever they shall apply to any works carried out on or in relation to the Property (other than by the Landlord and (without limitation):

 

8.5.2.1                       the Tenant hereby acknowledges and declares that the Landlord will not be acting as the client in respect of any such works for the purpose of the CDM Regulations

 

8.5.2.2                       that the Health and Safety Executive will be notified of the works in accordance with the CDM Regulations including (without limitation) notice of the person who is acting as the client in respect of the works

 

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8.5.2.3                to supply the Landlord a copy of such notice

 

8.5.3                                 The Tenant agrees that any health and safety file required to be prepared pursuant to the CDM Regulations (a “Health and Safety File”) will be prepared in respect of any such works said:

 

8.5.3.1                       to maintain and update the Health and Safety File as necessary whenever any further works are carried out by or on behalf of the Tenant or any undertenant at the Property and in any event forthwith upon being reasonably required to do so by the Landlord from time to time

 

8.5.3.2                       at its own cost to make available the Health and Safety File for inspection from time to time by the Landlord and those authorised by it and to supply to the Landlord a copy of the Health and Safety File together (at the Landlord’s cost) with such additional copies as the Landlord shall from time to time request and

 

8.5.3.3                       at the expiry or sooner determination of the Term to deliver to the Landlord all Health and Safety files and copies thereof relating to the Property which are or which ought to be held by the Tenant

 

8.6                               If the Property or any part of it is damaged by fire so as to be unfit for occupation or use then the rent payable hereunder or a fair proportion of it (such proportion to be determined by the Landlord) will be suspended until the damage is made good

 

8.7

 

8.7.1                               The powers rights matters and discretions granted and reserved to the Landlord in this Lease are also granted and reserved to or exercisable by the Superior Landlord its servants agents or contractors to the extent as may be required under the Superior Lease

 

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8.7.2                                 Nothing in this Lease is to be construed as implying that the Superior Landlord is under any obligation not unreasonably to withhold its consent or approval in respect of any application for consent by the Tenant to the Landlord

 

8.7.3                                 If the Tenant proposes to do any act or thing for which the consent of the Superior Landlord is required the Tenant shall bear and indemnify the Landlord against the cost of obtaining such consent and all incidental surveyors legal professional or other fees and disbursements

 

8.8                               Any covenant by the Tenant not to do or omit any thing shall be construed as though the covenant was in addition a covenant not to permit or suffer to be done or omitted that thing

 

8.9                               The Tenant acknowledges that it has not entered into this Agreement in reliance wholly or partly on any representation made by or on behalf of the Landlord

 

8.10                        If during the Term any issue concerning the quality of the environment in which the Property is located occurs the parties agree the Tenant will if required to do so by the landlord in writing, vacate the Property and will relocate for alternative premises within the Landlord’s Property that are not materially inferior for the Property upon the following terms:

 

8.10.1                          the terms of this Agreement will be suspended for the period the Tenant is relocated to such alternative premises;

 

8.10.2                          the Tenant will enter into an agreement to occupy such alternative premises on substantially similar terms as to this Agreement (including the exclusion of the Landlord and Tenant Act 1954) save as to length of term but which in any event will not continue past 31 July 2013 and rent which shall be the amount agreed by the parties both acting reasonably or in the absence of agreement upon the application of either party to the President for the time being of the Royal Institution of Chartered Surveyors by a suitably qualified surveyor acting as an expert

 

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8.10.3                          Neither party may act unreasonably and will act in good faith towards each other in the implementation of this clause

 

8.10.4                          If the Tenant has not relocated in accordance with the terms of this clause within six weeks of being requested to do so then this lease will immediately determine without prejudice to the rights of either party against the other in respect of any antecedent breach of the terms of this Agreement

 

9.                                      Guarantee

 

9.1                               The Guarantor (if any) hereby guarantees to the Landlord that the Tenant will pay the Rent reserved by and observe and perform all of the covenants and stipulations on the part of the Tenant contained in this Agreement throughout the Term and indemnifies the Landlord against all losses, damages, costs and expenses arising or incurred by the Landlord as a results of the non-payment or non-performance of those obligations on liabilities.

 

9.2                               The obligations of the Guarantor under this Agreement are a direct, primary and unconditional liability to pay on demand to the Landlord any sum that the Tenant is liable to pay under this Lease without the need for any recourse by the Landlord against the Tenant.

 

9.3                               If this Agreement is disclaimed by a liquidator or trustee in bankruptcy of the Tenant or the Crown or is forfeited then the Guarantor shall (at the option of the Landlord) accept a new lease of the Property for a term commencing on the date of disclaimer or forfeiture for a term equivalent to the residue which would have remained of the Term if there had been no disclaimer or forfeiture at the same terms and subject to the same terms as this Agreement or shall pay to the Landlord a sum equal to the rent that would have been payable under this Lease but for the disclaimer or forfeiture in respect of the period from the date of the disclaimer or forfeiture until the earlier of date which is [six] months after the date of the disclaimer or forfeiture and the date on which the Property has been re-let by the Landlord.

 

20

 

9.4                               So far as the law allows the obligations of the Guarantor under this Agreement shall not be affected by any act, omission, matter or thing whereby (but for this provision) the Guarantor would be released in whole or part from this Guarantee other than a release by deed given by the Landlord.

 

21

 

THE FIRST SCHEDULE

 

Part 1

 

Description of Property

 

The Property described in the Particulars being part of the Building including:

 

(i)                                   the whole of any non-structural walls wholly within the Property

 

(ii)                                the non-structural finishes facings or coverings to the interior of any walls partitions floor slabs or joists and ceiling slabs or joists which bound the Property and to any columns or structural walls therein

 

(iii)                             the whole of the doors and windows (including door and window glass) fitted in the walls within and which bound the Premises and their frames and fixings

 

(iv)                            any Conduits therein which exclusively serve the Property

 

(v)                               any landlords fixtures and fittings within the Property

 

But excluding:

 

(a)                                 the structure of any walls partitions floor and ceiling slabs or joists bounding the Property and of the columns or structural walls in the Property except as mentioned in paragraphs (i) and (ii) above

 

(b)                                 any Conduits other than those exclusively serving the Property

 

22

 

Part 2

 

Rights Granted to the Tenant

 

1.                                      The right (in common with the Landlord and all other persons from time to time entitled to the like right) of ingress and egress for the Tenant on foot only to and from the Property and such other parts of Building 114 as the Tenant is entitled to use along and through the common accessways entrance staircases passages and lobbies of Building 114.

 

2.                                      The right (in common as aforesaid) of passage of gas electricity water and soil from and to the Property through the Conduits now or hereafter running through under or over other parts of the Estate and serving the Property

 

3.                                      The right (in common as aforesaid) to use such lavatories within the Building as may from time to time be allocated by the Landlord for use by the Tenant

 

4.                                      The right to park private motor vehicles in such car parking areas in the Estate as shall be designated for the use of tenants on the Estate generally (but without liability to provide any minimum number of such spaces) together with the right (in common with the Landlord and all others now or hereafter authorised in that behalf by the Landlord or otherwise so entitled) of access to and egress from such parking spaces to and from the public highway over and along such roads and tracks on the Estate as may from time to time be designated by the Superior Landlord for that purpose

 

23

 

Part 3

 

Rights Reserved to the Landlord

 

(a)                                 the right at all times during the tenancy to use and make connections with all Conduits now or at any time during existing on in or under the Property or any part of it and used for the benefit of any adjoining property of the Landlord or the Superior Landlord and also the right to lay construct maintain and use in or under the Property additional Conduits for the use of such adjoining property with the right to enter upon the Property and to excavate in or under the Property for such purposes or to repair and maintain such services

 

(b)                                 The right to enter onto the Property with environmental consultants appointed by the Landlord with or without vehicles and appropriate equipment and machinery on giving reasonable notice for the purpose of carrying out ground tests surveys drilling boreholes and examinations (the Landlord making good any damage caused thereby) and specifying the remediation works (if any) required to restore the Property to the state and condition required by the Tenant’s obligations under this Agreement

 

(c)                                  The right to enter onto the Property at all times with or without machinery and equipment for the purposes referred to in Clause [5.34] above subject to the Landlord making good all damage and causing no necessary interference with the business of the Tenant

 

(d)                                 The right to grant any wayleave contract easement or licence to any Authority other company or persons with the right to authorised servants and agents of such parties with or without vehicles, animals, machinery and plant to enter upon the Property and carry out their works (subject to the payment of reasonable compensation for damaged, provided that a claim in writing is made by the Tenant to the Landlord within a reasonable time from the occurrence of the damage) together with the benefit of all such contracts, agreements for easements or licences and all rents and other payments reserved.

 

24Exhibit 10.34

 

DATED            1 JUNE 2012

 

(1) GW PHARMA LIMITED

 

(2) ADAM GEORGE

 

SERVICE AGREEMENT

 

Mayer Brown International LLP

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
1.
    	
Interpretation
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
Appointment
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
Duties during the Appointment
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
4.
    	
Confidentiality
    	
 
    	
7
    
	
 
    	
 
    	
 
    	
 
    
	
5.
    	
Location
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
6.
    	
Salary
    	
 
    	
9
    
	
 
    	
 
    	
 
    	
 
    
	
7.
    	
Bonus
    	
 
    	
10
    
	
 
    	
 
    	
 
    	
 
    
	
8.
    	
Expenses
    	
 
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
9.
    	
Ill Health and Injury
    	
 
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
10.
    	
Holidays
    	
 
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
11.
    	
Benefits during the Appointment
    	
 
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
12.
    	
Intellectual Property Rights
    	
 
    	
15
    
	
 
    	
 
    	
 
    	
 
    
	
13.
    	
Termination
    	
 
    	
18
    
	
 
    	
 
    	
 
    	
 
    
	
14.
    	
Obligations relating to Termination
    	
 
    	
20
    
	
 
    	
 
    	
 
    	
 
    
	
15.
    	
Statements and Further Assistance
    	
 
    	
21
    
	
 
    	
 
    	
 
    	
 
    
	
16.
    	
Data Protection
    	
 
    	
22
    
	
 
    	
 
    	
 
    	
 
    
	
17.
    	
Use and Monitoring of   Equipment
    	
 
    	
23
    
	
 
    	
 
    	
 
    	
 
    
	
18.
    	
Restrictive Covenants
    	
 
    	
23
    
	
 
    	
 
    	
 
    	
 
    
	
19.
    	
Continuing Obligations
    	
 
    	
27
    
	
 
    	
 
    	
 
    	
 
    
	
20.
    	
Corporate Reconstruction
    	
 
    	
27
    
	
 
    	
 
    	
 
    	
 
    
	
21.
    	
Agreements with other Companies in the Group
    	
 
    	
28
    
	
 
    	
 
    	
 
    	
 
    
	
22.
    	
Additional Terms
    	
 
    	
28
    
	
 
    	
 
    	
 
    	
 
    
	
23.
    	
Notices
    	
 
    	
28
    
	
 
    	
 
    	
 
    	
 
    
	
24.
    	
Miscellaneous
    	
 
    	
28
    

 

 

SERVICE AGREEMENT

 

DATE:          1 June 2012

 

PARTIES:

 

(1)                                 GW PHARMA LIMITEDwhose registered office is at Porton Down Science Park, Salisbury, Wiltshire SP4 0JQ (“the Company”); and

 

(2)                                 ADAM GEORGE of [address] (“the Executive”).

 

IT IS AGREED as follows:

 

1.                                      INTERPRETATION

 

1.1                               Definitions:

 

In this Agreement the following words and phrases have the meanings given below:-

 

“Adverse Event”                                                                                                                                includes, but is not limited to, any development in the economy generally or in the financial sector which is or may be a Detriment;

 

“Appointment”                                                                                                                                       the employment of the Executive on the terms of this Agreement;

 

“Board”                                                                                                                                                                              the board of directors of the Company, as constituted from time to time, including any duly appointed committee or nominee of the Board;

 

“Bribe”                                                                                                                                                                                    a financial or other advantage offered to a person, which is intended to induce that person to perform improperly a function or activity, or as a reward for the improper performance of a function or activity or the offer of a promise of a financial or other advantage where the acceptance of the advantage itself constitutes the improper performance of a function or activity;

 

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“Business Unit”                                                                                                                                     means the business division or unit in relation to which any bonus decision was taken and may, where appropriate, include more than one business division or unit as the case may require;

 

“Control”                                                                                                                                                                        shall have the meaning given to it in Section 1124 Corporation Tax Act 2010 or the power of any person whether alone or together with any other person acting in concert with him to control the composition of the Board.  For the avoidance of doubt there shall be no change of control if Control of the Company is acquired by another company, the shares of which, immediately following such acquisition, are all held by the holders of the shares of the Company immediately prior to such acquisition in materially the same proportion as they held shares in the Company immediately prior to such acquisition or (ii) where Clause 20 applies.

 

“Data Controller”                                                                                                                      shall have the meaning given to it by Section 1(1) Data Protection Act 1998;

 

“day’s salary”                                                                                                                                             1/260th of the Executive’s salary;

 

“Detriment”                                                                                                                                                         a detriment which the Company, in good faith, considers has or may have an adverse impact on the Company, or any relevant associated Company or any relevant Business Unit, including, but not limited to, any of the following:

 

·             any financial loss (whether impacting the financial results for the current year or a previous year);

 

·             any reputational damage;

 

·             a restatement in any of the Group accounts;

 

·             any sanction from any government agency or any regulatory authority;

 

“Effective Date”                                                                                                                                 1 June 2012;

 

“Executive’s Personal Data”                                                              Personal Data and Sensitive Personal Data;

 

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“Group”                                                                                                                                                                             any of the following from time to time: the Company, its subsidiaries and subsidiary undertakings and any holding company or parent undertaking of the Company and all other subsidiaries and subsidiary undertakings of any holding company or parent undertaking of the Company, where “holding company”, “parent undertaking”, “subsidiary” and “subsidiary undertaking” have the meanings given to them in the Companies Act 2006;

 

“holiday year”                                                                                                                                          the calendar year;

 

“London Stock Exchange”                                                                         London Stock Exchange plc;

 

“Personal Data”                                                                                                                                  personal data (as defined by s.1(1) Data Protection Act 1998) about the Executive;

 

“Remuneration Committee”                                                                the committee of directors of the Company as appointed by the Board to determine the remuneration from time to time of the Company’s executives;

 

“salary”                                                                                                                                                                              the salary payable from time to time under Clause 6.1;

 

“Scheme”                                                                                                                                                                       the permanent health insurance scheme referred to in Clause 11.4;

 

“Sensitive Personal Data”                                                                             data about the Executive’s:

 

(i)                             racial or ethnic origins;

 

(ii)                          political opinions;

 

(iii)                       religious beliefs or other beliefs of a similar nature;

 

(iv)                      membership of a trade union;

 

(v)                         physical or mental health or condition;

 

(vi)                      sexual life; or

 

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(vii)                   commission or alleged commission of any offence, or any proceedings for any offence committed or alleged to have been committed by him, the disposal of such proceedings or any sentence of any court in connection with such proceedings;

 

“termination”                                                                                                                                               the ending of the Appointment however it arises and irrespective of its cause or manner but excluding wrongful termination by the Company in relation to Clause 18;

 

“TUPE”                                                                                                                                                                               the Transfer of Undertakings (Protection of Employment) Regulations 2006; and

 

“UKLA”                                                                                                                                                                           the Financial Services Authority in its capacity as the competent authority for the purposes of the Financial Services and Markets Act 2000.

 

1.2                               Construction:

 

(a)                                 References to acting directly or indirectly include acting alone or jointly with or on behalf of or by means of another person and/or giving advice or providing services with a view to assisting another person.

 

(b)                                 References to a person include an individual, firm, corporation and any other organisation however it is constituted and words denoting the singular include the plural and vice versa.

 

(c)                                  References to an individual holding a position in the Company or the Group mean the holder of that position from time to time or his nominee or such other representative as the Board may nominate.

 

(d)                                 References to statutory provisions are construed as references to those provisions as amended or re-enacted from time to time (whether before or after the date of this Agreement) and references to documents are construed as references to documents as replaced or amended from time to time after the date of this Agreement.

 

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2.                                      APPOINTMENT

 

2.1                               Upon and subject to the terms of the Appointment, the Company will from the Effective Date employ the Executive as Finance Director and the Executive agrees to serve the Company in that capacity, or in such other capacity of similar status as may reasonably be required of him from time to time by the Board.

 

2.2                               The Executive acknowledges that he is not entering into this Agreement in reliance upon any representation, warranty or undertaking which is not contained in this Agreement.

 

3.                                      DUTIES DURING THE APPOINTMENT

 

3.1                               The Executive will (unless prevented by ill health or injury) devote the whole of his working time, attention and abilities during the Appointment to the business of the Group and will not without the prior written consent of the Board (such consent not to be unreasonably withheld)

 

(a)                                 accept any other appointment, work for or be directly or indirectly engaged in or concerned with the conduct of any other business;  or

 

(b)                                 be directly or indirectly financially interested in any business which may be considered competitive to the business of the Company (and which therefore compromises his ability to perform his duties to the Company under this contract), other than through his holding or being interested in bona fide investments representing not more than three per cent of any class of shares or securities in any company listed or dealt in on any recognised stock exchange.

 

3.2                               During the Appointment the Executive will :-

 

(a)                                 loyally and diligently perform such duties and exercise such powers for the Group as the Board may from time to time reasonably require, and accept without further payment other offices within the Group;

 

(b)                                 keep the Board properly and regularly informed about the business of the Group and his activities in those businesses;

 

(c)                                  comply with the reasonable and lawful directions given from time to time by the Board;

 

(d)                               comply with his common law, fiduciary and statutory obligations as a director (as set out in the Companies Act 2006), the Company’s articles of association,

 

5

 

the City Code on Takeovers and Mergers, applicable rules and regulations of the UKLA, London Stock Exchange and any other applicable stock exchange, the code mentioned in Clause 3.9, any other internal codes of conduct for employees of the Group and all relevant policies and procedures;

 

(e)                                co-operate with the Group in complying with its obligations on health and safety;

 

(f)                                 promptly give the Company such information as the Group may require to enable it to comply with its legal obligations or the requirements of the UKLA, London Stock Exchange or any other applicable stock exchange; and

 

(g)                                  promote and protect the interests of the Group, always giving it the full benefit of his knowledge, expertise and skill and will not knowingly or deliberately do anything which is to its detriment.

 

3.3                               The Company may assign to the Executive duties which are either additional to or instead of those referred to in Clause 3.2(a), it being understood that he will not be assigned duties which he cannot in the reasonable opinion of the Board be expected to perform.  The Company may also from time to time appoint any other person to act jointly with the Executive in the performance of his duties and the exercise of his powers.

 

3.4                               The duties of the Executive as a director of the Company and any other member of the Group are subject to the relevant Articles of Association from time to time.

 

3.5                               The Executive will not, without the prior written consent of the Board, directly or indirectly receive or retain any payment or benefit, either in respect of any business transacted (whether or not by him) by or on behalf of the Group or with a view to any such business being transacted.

 

3.6                               The Executive will not directly or indirectly:

 

(a)                                 offer, promise or give a Bribe;

 

(b)                                 request, agree to receive, receive or accept a Bribe; or

 

(c)                                  Bribe a foreign public official;

 

either in respect of any business transacted (whether or not by him) by or on behalf of the Group or with a view to any such business being transacted.

 

6

 

3.7                               If the Executive becomes aware of another individual who performs services for or on behalf of the Group engaging in one of the activities set out in Clause 3.6, he must report it immediately in accordance with the Company’s Whistleblowing Policy. Failure to act in accordance with this clause could result in the Executive being found guilty of an offence under the Bribery Act 2010 and/or the Executive having a sanction imposed upon him pursuant to the Company’s Disciplinary Policy, up to and including, dismissal.  The Executive is expected to be familiar with the terms of any anti-bribery and corruption policies issued by the Company or the Group from time to time.

 

3.8                               As part of and in the normal course of his duties, the Executive will:

 

(a)                                 continue to carry out research into and development of the processes, products, programs, designs, equipment, techniques and projects which are from time to time used, made or undertaken by the Group or which could be used, made or undertaken by it, and will invent discover, design, develop or improve them for the benefit of and for use by the Group; and

 

(b)                                 seek and pursue the adoption and development of new processes, products, programs, designs, equipment, techniques and projects which could be used, made or undertaken by the Group.

 

3.9                            During the Appointment or while he is a director of any company in the Group the Executive will comply and will procure, so far as he is able, that his spouse and dependant children (if any) or any trust in which he, his spouse or dependant children may be concerned or interested in as trustee or beneficiary, comply with any code of conduct relating to securities transactions by directors and specified employees applicable within the Group.  The Executive confirms that a copy of the current code has been given to him.

 

4.                                      CONFIDENTIALITY

 

4.1                               The Executive acknowledges that during his employment with the Company he will have access to and will be entrusted with confidential information and trade secrets relating to the business of the Group.  This includes but is not limited to information and secrets relating to:

 

(a)                                 corporate and marketing strategy, business development and plans, maturing business opportunities, sales reports and research results;

 

7

 

(b)                                 business methods and processes, technical information and know-how relating to the Group’s business and which is not in the public domain, including inventions, designs, programs, techniques, database systems, formulae and ideas;

 

(c)                                  business contacts, lists of customers and suppliers and details of contracts with them and their current or future requirements;

 

(d)                                 information on employees, including their particular skills and areas of expertise, and their terms of employment;

 

(e)                                  stock levels, sales, expenditure levels and pricing policies;

 

(f)                                   budgets, management accounts, trading statements and other financial reports;

 

(g)                                  unpublished price sensitive information or potentially price sensitive information and inside information or potential inside information relating to shares or securities listed or dealt in on any recognised stock exchange;  and

 

(h)                                 any document marked “confidential” or orally communicated as being “confidential” or any information not in the public domain,

 

together, the “Confidential Information”.

 

4.2                               The Executive will not during the Appointment (otherwise than in the proper performance of his duties and then only to those who need to know such Confidential Information) or thereafter (except with the prior written consent of the Board or as required by law):-

 

(a)                                 divulge or communicate to any person (including any representative of the press or broadcasting or other media);

 

(b)                                 cause or facilitate any unauthorised disclosure through any failure by him to exercise all due care and diligence of; or

 

(c)                                  make use of (other than for the benefit of the Group) of

 

any Confidential Information which may have come to his knowledge during his employment with the Company or in respect of which the Group may be bound by an obligation of confidence to any third party.  The Executive will also use his best endeavours to use adequate security measures and prevent the publication or disclosure of any such Confidential Information.  These restrictions will not apply 

 

8

 

after the Appointment has terminated to Confidential Information which has become available to the public generally, otherwise than through unauthorised disclosure.

 

4.3                               All notes, memoranda, and other records (however stored) made by the Executive during his employment with the Company and which relate to the business of the Group will belong to the relevant member of the Group and will promptly be handed over to the Company (or as the Company directs) from time to time on request and at the end of the Appointment, without copies being kept by the Executive or anyone else on his behalf.  The Executive agrees, on return of such records, to give an undertaking that he has not retained any Confidential Information or any copies of it.

 

5.                                      LOCATION

 

The Executive will be based at the Company’s offices at Porton Down but it is considered a requirement of the role for the Executive to work at the Company’s offices in central London (or other Company locations) for three days per week. The Company reserves the right at its sole discretion to require the Executive to work on a permanent basis from the Company’s London office.

 

6.                                      SALARY

 

6.1                               The Company will pay to the Executive a salary at the rate of £125,000 per annum, including any director’s fees to which he may be entitled as a director of the Group.  This salary will accrue from day to day and will normally be payable by equal instalments in arrears at the end of each month, and will be subject to such deductions as may be required by law or under the terms of the Appointment.

 

6.2                               The Remuneration Committee will review the Executive’s Salary annually, but such review does not necessarily imply an increase.  The review will take account of such factors as the Remuneration Committee considers, in its absolute discretion, to be appropriate, which may include anticipated future performance or service and/or past performance of the Executive and/or the Company and/or the Group, although it has no obligation to take any of these factors into account.  Any increase in the rate of the Executive’s Salary will normally be effective from 1 January in each year following the review.

 

6.3                               The Executive will also be eligible for a car allowance of £15,600 per annum.  The car allowance will be paid monthly, less such deductions as are required by law.  It will not be part of the Executive’s salary and will not count towards any salary related benefits, including his pension.

 

9

 

6.4                               The Group may deduct from any money owed to the Executive any money which the Executive, owes or may be owing to the Company or any other member of the Group.

 

7.                                      BONUS

 

7.1                               The Executive will, in addition to his salary, be eligible for a discretionary bonus. The terms and amount of this bonus (and whether it is paid in cash or in other forms, such as shares or share options, whether it vests immediately or over a period of time, or whether it is subject to adjustment after grant) will be decided from time to time by the Remuneration Committee in its sole discretion.  Any payment will not form part of the Executive’s salary, and will not be taken into account in calculating any benefits which are calculated by reference to salary.  In determining whether a bonus is to be paid, and if so the size of that bonus, the Remuneration Committee may take into account such factors as it considers, in its absolute discretion, to be appropriate, which may include anticipated future performance or service and/or past performance of the Executive and/or the Group, although it has no obligation to take any of these factors into account.

 

7.2                               For the avoidance of doubt, bonus will not accrue, nor will the Executive have any legitimate expectation as to the size or form of the discretionary bonus, until the Company pays it to him and any communication before a bonus is paid shall be treated as indicative only. There are no circumstances whether in reliance on express or implied terms or otherwise where the Executive can require pay out of a particular sum or payment in a particular form or claim compensation for loss of such a bonus. Upon the Termination of the Appointment or (if earlier) upon either party giving notice under Clause 13 and the Company exercising its rights under Clause 13.3 or 13.4, the Executive will have no rights as a result of this Agreement or any alleged breach of this Agreement to any compensation under or in respect of any bonus scheme.

 

7.3                               It is agreed that, where the Company operates a bonus scheme for a particular period, the Company will have a complete and unfettered discretion to alter, amend or discontinue any bonus scheme at the end of that period, in respect of any subsequent period and the Executive will have no expectation of a continuation of the previous bonus scheme.

 

7.4                               Without prejudice to Clause 7.3, it is agreed that, where a bonus scheme has been announced by the Company covering a period of time (e.g. annual), during that period, notwithstanding the provisions of any bonus scheme or bonus arrangements, the Company shall have the right to alter, substitute or cancel any scheme or arrangement,

 

10

 

or to alter, substitute or cancel any provisions of any such scheme or arrangement, or any payments or benefits to be provided under such scheme or arrangement in its sole discretion at any time, where it deems it necessary to do so as a result of legal regulatory or compliance reasons, regardless of whether such a change will or may have retrospective effect.  Such changes shall take effect from the date specified by the Company, whether that date is before or after the date of the communication of such change.

 

7.5                               In the case of any conflict between the terms of this Agreement and the terms of any other scheme or arrangement the provisions of this Agreement shall prevail.

 

7.6                               Without prejudice to Clause 7 in respect of any bonus (or part of any bonus) (and whether in cash or any other form whatsoever) awarded to the Executive (whether in cash or in any other form whatsoever), which has not yet been paid or vested under the terms of the award, if:

 

(a)                                 the Executive has engaged in conduct which justifies summary dismissal without notice or payment in lieu of notice;  or

 

(b)                                 an Adverse Event has taken place,

 

then (without prejudice to any other claims which the Company may have) the Company may determine that all or part of the said bonus is forfeited or reduced, with immediate effect.

 

For the avoidance of doubt:

 

(a)                                 the Company may make a determination under this Clause 7.6 in relation to the Executive as an individual or as a member of a class; and

 

(b)                                 this Clause 7.6 will continue to apply after the termination of the Executive’s employment for any reason including its termination to either party in breach.

 

The Executive shall have no claim against the Company or any other member of the Group in respect of any tax or social security deductions that are made in respect of any bonus awarded in the event that any such bonus is subsequently declared by the Company to be forfeited or reduced.

 

11

 

8.                                      EXPENSES

 

The Executive will be entitled, upon production of satisfactory evidence of payment or expenditure, to be reimbursed all reasonable out-of-pocket expenses properly and wholly incurred by him in the performance of his duties.

 

9.                                      ILL HEALTH AND INJURY

 

9.1                               If at any time during the Appointment the Executive is physically or mentally unable to perform his duties for the Group as a result of ill health or injury, he will nevertheless, for so long as the Appointment remains in force, be entitled to his salary during any period of incapacity of not more than 180 days (whether consecutive or not) in any period of fifty-two consecutive weeks.  Thereafter, for so long as the Appointment remains in effect and subject to Clauses 9.5 to 9.7, any further payments will be limited to those payments which may be due under the Scheme or, if no payments are due, to such salary as may be determined in the sole discretion of the Board and, as a condition of any such payment, the Executive may be required to comply with Clause 14 as if the Appointment had been terminated.

 

9.2                               The payment of any such salary will be:-

 

(a)                                 subject to the production of satisfactory evidence from a registered medical practitioner in respect of any period of absence in excess of seven consecutive days;  and

 

(b)                                 inclusive of any statutory sick pay to which the Executive may be entitled and the Company may deduct from his salary the amount of any social security benefits he may receive or be entitled to receive.

 

9.3                               The Executive will promptly inform the Company if he is unable to perform his duties as a result of ill health or injury caused by a third party and for which compensation is or may be recoverable.  In return for the Company continuing to pay his salary and to provide other benefits during the Appointment, he will take such action as the Company may reasonably request in connection with pursuing a claim against such third party, in order to recover for the benefit of the Company the costs of continuing the Appointment.  He will keep the Company regularly informed of the progress of any claim, provide such information about it as the Company may from time to time reasonably require, and will immediately notify the Company in writing of any compromise, settlement, award or judgment.  He will, upon being requested to do so, refund to the Company the lesser of the amount recovered by him (after deducting any related costs borne by him) and the aggregate cost of the salary and other benefits paid

 

12

 

to him during his ill health or injury and will hold these proceeds on trust for the Company to apply them in repayment of this obligation.

 

9.4                               At the request and expense of the Company the Executive will from time to time submit himself to a medical examination by a suitably qualified person of the Company’s choice, whether or not he is unable to perform his duties for the Group as a result of ill health or injury.  If such person is unable to confirm that he is fit to perform his duties or if there are factors which such person considers are relevant to the performance of those duties, the Executive will co-operate in ensuring the prompt delivery of all relevant medical reports to the Company and will allow the Company access to any relevant medical report which has been prepared by a medical practitioner responsible for his clinical care.

 

9.5                                At any time during his incapacity the Company may refer the Executive to the insurers of the Scheme subject always, to the provisions of Clause 11.4 and Clause 11.6.

 

9.6                                If any claim under the Scheme is accepted in whole or in part:

 

(a)                               the Company will immediately upon that acceptance cease to be under any obligation to pay any amounts or to provide any benefits to the Executive other than those provided under the terms of the Scheme;  and

 

(b)                               the provisions of Clause 14 will immediately apply as if the Appointment had terminated.  The Company will then automatically become entitled to appoint a successor to the Executive to perform all or any of his duties and Clause 3 will be amended accordingly.

 

9.7                             If the Board considers that the Executive is likely to qualify for payments under the Scheme or upon acceptance of his claim under Clause 9.6 and for so long as he receives benefits under the Scheme, the Company will not terminate the Appointment on arbitrary or capricious grounds or if its sole intention is to deprive him of the benefits under the Scheme.  Nothing in this Clause 9 will prevent the Company from terminating the Appointment on any other grounds, including if it is not a requirement that the Executive remains an employee of the Company in order to receive the benefits under the Scheme.

 

9.8                             If the Executive has been incapacitated by ill health or injury for the period set out in Clause 9.1, the Company may, at any time prior to both his full recovery and full return to work, notwithstanding any other provision of the Appointment, terminate it with immediate effect by notice in writing to the Executive.

 

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10.                               HOLIDAYS

 

10.1                        The Executive will (in addition to normal public holidays) be entitled to 25 paid days’ holiday in each complete holiday year during the Appointment. The Executive is expected to take no fewer than 20 working days holiday in each holiday year.  This holiday is to be taken at such times as are convenient to the Company in line with its operational requirements and the availability of other directors of the Company.  The Company may require the Executive to take any outstanding holiday during any period of notice under Clause 13.1 or, if applicable Clause 13.2, or for which he is not required to work pursuant to Clause 13.4.

 

10.2                        The entitlement to holiday accrues pro rata throughout each holiday year.  Any entitlement to holiday remaining at the end of any holiday year will lapse (unless such entitlement arises according to the circumstances stated in Clause 10.1.), unless otherwise permitted by the Board, and no salary in lieu of such entitlement will be paid.

 

10.3                        On the termination of the Appointment (other than by reason of Clause 13.3 or where he terminates the Appointment in breach of its terms) the Executive will be entitled to a day’s salary in lieu of each day’s holiday accrued due but not taken in respect of the holiday year in which termination takes effect.  If he has taken holiday in excess of his accrued entitlement, the Company may deduct a day’s salary for each excess day taken from any monies owed to him by the Company.

 

11.                               BENEFITS DURING THE APPOINTMENT

 

11.1                        The Executive will arrange his own personal pension scheme into which the Company will, for each complete year of the Appointment, contribute on a monthly basis a sum equal (unless the Executive requests a lower payment) to 17.5 per cent of his salary, provided that the Executive’s scheme is a “registered scheme” for the purposes of the Finance Act 2004 and the Company’s contributions to the scheme do not exceed the “annual allowance” as defined in the Finance Act 2004.  It will be the Executive’s responsibility to decide whether to limit the Company’s contributions to a lower amount, in light of any change in legislation or any retirement benefits accruing to the Executive under other registered pension schemes or otherwise, in order to avoid liability for any charge to income tax in respect of these contributions.

 

11.2                       The Company shall during the term of this Agreement pay all necessary premiums and make all necessary payments to provide the Executive with life assurance cover which in the event of the Executive’s death while employed under this Agreement shall pay

 

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to the Executive’s chosen dependants a sum equal to six times his basic salary, subject to any limits, terms and conditions imposed by statute or the relevant insurance company including the requirement for a medical examination.

 

11.3                       The Company shall during the term of this Agreement cover the cost of membership for the Executive and the Executive’s spouse and children under the age of 18 or in full time education of an appropriate private patients medical plan with “BUPA” or such other reputable medical insurance scheme as the Company shall decide from time to time, subject to the rules of the scheme and the approval of his application for membership by the relevant insurer.

 

11.4                        The Company shall pay all premiums and make all necessary payments to make available the Scheme for the benefit of the Executive upon such terms as shall provide for the payment to the Executive throughout the period of any qualifying ill-health or disability (with the exception of the first 26 consecutive weeks thereof) of sums at a rate per annum equal to 75 per cent of pensionable salary on the date such absence commences less the amount of a single person’s state sickness benefits, subject to any limits, terms and conditions imposed by statute or the relevant insurance company including the requirement for a medical examination and acceptance of the Executive’s claim.

 

11.5                        The provision of these insured benefits will be subject to the provisions governing such insurance and on such terms as the Board may from time to time decide, including but not limited to deductibles, caps, exclusions and aggregate limits and the obtaining of insurance at reasonable rates of premium.

 

11.6                        The Executive agrees that the provision by the Company of the insured benefits above is on the basis that the Company will have no responsibility for the decisions taken by the insurers about any claim by the Company or the Executive and that there are no circumstances in which the Group can be liable to the Executive for any such benefits, or loss of such benefits, which the insurers have declined to pay for whatever reason.  Any such insured benefits will be subject always to the terms of the relevant insurance policy between the Company and the insurer.

 

12.                               INTELLECTUAL PROPERTY RIGHTS

 

12.1                        For the purpose of this Clause 12:

 

(a)                               “Intellectual Property” means all present and future intellectual property, including patents, inventions, utility models, trade and service marks, trade names, domain names, rights in designs, copyrights, moral rights, topography 

 

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rights, rights in databases, trade secrets and know-how, in all cases whether or not registered or registrable and including registrations and applications for registration of any of these and rights to apply for the same and all rights and forms of protection of a similar nature or having equivalent or similar effect to any of these anywhere in the world (whether now known or in the future created), in each case for the full term thereof including all renewals and extensions;

 

(b)                               “Executive Intellectual Property” means all Intellectual Property which the Executive alone or with one or more others may make, originate, suggest, devise or develop during the period of his employment (whether or not made, originated or developed during normal working hours) and which affect or relate to or connect to the business of the Group from time to time or are capable of being used or adapted for use in it, other than any Executive Inventions; and

 

(c)                                “Executive Invention” means all inventions (which term bears the same meaning as in the Patents Act 1977) which the Executive alone or with one or more others may make, originate, suggest, devise or develop either in the course of (i) his normal duties where an invention might reasonably be expected to result from the carrying out of his duties or (ii) duties falling outside his normal duties, but specifically assigned to him where an invention might reasonably be expected to result from the carrying out of his duties or (iii) duties where, at the time of making the invention, because of the nature of his duties and the particular responsibilities arising from the nature of his duties he had a special obligation to further the interests of the Company and/or the Group.

 

12.2                        Any Executive Intellectual Property and any Executive Inventions will be notified and disclosed by the Executive to the Company in an appropriate manner (bearing in mind the need to keep inventions confidential) as soon as it comes into existence, and the Executive will keep any such Executive Intellectual Property or Executive Inventions confidential.  In the case of Executive Inventions the notification and disclosure obligations in this Clause 12.2 apply irrespective of whether the Company is entitled to ownership of such Executive Invention by virtue of s39 Patents Act 1977.  If the Company is not entitled to ownership, it shall keep the information confidential in accordance with Clause 4 of this Agreement (unless otherwise agreed).

 

12.3                        Save as provided by law and in particular as provided by the Patents Act 1977, all Executive Inventions or Executive Intellectual Property will belong to the Company.

 

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Insofar as permissible by law, the Executive hereby assigns to the Company absolutely with full title guarantee and free from all encumbrances (by way of present assignment of all future rights) all rights, title and interest in and to the Executive Invention and Executive Intellectual Property.  Any Executive Invention or Executive Intellectual Property which cannot be assigned to the Company in accordance with this Clause 12.3 will insofar as permissible by law be held on trust by the Executive for the benefit of the Company (or relevant member of the Group) until the same are vested absolutely in the Company.

 

12.4        The Executive acknowledges, including for the purpose of s39 Patents Act 1977, that because of the nature of his duties and the particular responsibilities arising from those duties, his employment with the Company carries with it a special obligation to further the interests of the Company and other members of the Group.

 

12.5        The Executive undertakes that, at the Company’s expense and upon request (whether during or after the termination of the Appointment), he will execute such documents, make such applications, give such assistance and do such acts and things as may be necessary to enable the Company or relevant member of the Group to enjoy the full benefit of this Clause 12.5, whether during or after termination of the Appointment.  This will include the giving of assistance or advice (including giving evidence if so required) in connection with:

 

(a)           the prosecution of any applications for the registration of;

 

(b)           any claims or proceedings brought to prevent or bring to an end the infringement of;

 

(c)           all steps necessary to assign; and/or;

 

(d)           any claims or proceedings concerning or affecting the validity of,

 

any Executive Intellectual Property and/or any rights in any Executive Invention.

 

12.6        Should the Executive fail to comply with a request under Clause 12.5, the Executive hereby grants to any duly authorised representative of the Company an irrevocable power of attorney to sign any documents and take such other steps as are necessary to give effect to this Clause 12.

 

12.7        Immediately upon the termination of the Appointment or earlier at the Company’s request, the Executive will deliver up to the Company the subject matter of, and all data relating to, all Executive Intellectual Property and Executive Inventions

 

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(including all related documents and materials and, in the case of software, all source code in a format or formats reasonably requested by the Company) in the Executive’s possession, custody or power; and ensure that all know-how relating to all Executive Intellectual Property and Executive Inventions is recorded on the Company’s know-how systems or otherwise communicated or made available to the Company.

 

12.8        Following termination of the Appointment, the Executive:

 

(a)           will make himself available to explain know-how or other aspects of any Executive Intellectual Property and/or Executive Inventions, if reasonably requested by the Company; and

 

(b)           will keep all Executive Intellectual Property and Executive Inventions confidential unless or until they are disclosed in the public domain or otherwise cease to be confidential through no fault or act of the Executive.

 

12.9        The Executive irrevocably waives all moral rights which he might otherwise have or be deemed to have under Chapter IV Copyright, Designs and Patents Act 1988 or under any other similar law anywhere in the world.

 

12.10      Save as provided by law and set out herein, the Executive has no rights to additional remuneration or compensation in respect of any Executive Intellectual Property or Executive Invention.

 

13.          TERMINATION

 

13.1        Subject to Clause 13.2, the the Appointment will continue until either party gives to the other not less than six months’ written notice. Subject to future approval from the Remuneration Committee, we would expect to increase this notice period to twelve months after you served for two years as an Executive Director.

 

13.2        During the first two years immediately following the Effective Date the notice period required from the Company under Clause 13.1 shall increase to 12 months if the Company gives notice to terminate the Appointment (save for any lawful termination in accordance with Clause 13.3):

 

(a)           during the three month period immediately following a change of Control of the Company; or

 

(b)           during the three month period immediately before or immediately after the Company’s securities being listed on a US investment exchange and offered to the public for the first time, where the Company’s predominant reason for such termination is the Company’s decision to list its securities on a US investment exchange.

 

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The Executive’s entitlement to 12 months’ notice in accordance with this Clause 13.2 is conditional upon him (and the Executive’s legal adviser) signing a compromise agreement prepared by the Company, within 14 days of being provided with a copy of such agreement and executing such other documents in a form reasonably acceptable to the Company as it may require.  If the Executive fails to comply with this condition, his entitlement to 12 months’ notice will lapse, and he will revert to his notice entitlement under Clause 13.1. The Compromise Agreement will also confirm that the Executive will comply with all post termination restrictions and obligations contained in this Agreement.

 

13.3        The Company may, notwithstanding any other provision of this Agreement and irrespective of whether the grounds for termination arose before or after the Appointment began, at any time by notice in writing to the Executive terminate the Appointment with immediate effect :-

 

(a)           if a petition is presented or any order is made or any notice is issued convening a meeting for the purpose of passing a resolution for his bankruptcy or he becomes bankrupt or makes any composition or enters into any deed of arrangement with his creditors generally;

 

(b)           if he is prohibited by law or by any decision of a regulatory body from being a director or taking part in the management of the Group or ceases to be a director of the Company without the consent of the Board;

 

(c)           if he is convicted of

 

(i)            a criminal offence other than one which in the opinion of the Board does not affect his position as an employee of the Company, bearing in mind the nature of his duties and the capacity in which he is employed; or

 

(ii)           an offence relating to insider dealing;

 

(d)           if he commits, in the opinion of the Financial Services Authority, the civil offence of market abuse under the Financial Services and Markets Act 2000;

 

(e)           if he is guilty of any serious default or misconduct in connection with or affecting the business of the Group;

 

(f)            if he commits any serious or repeated breach of his obligations of the Appointment or is guilty of serious neglect or negligence in the performance of his duties; or

 

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(g)           if he behaves in a manner (whether on or off duty) which is likely to bring the Group into disrepute or prejudice its interests or which seriously impairs his ability to perform his duties.

 

13.4        If the Company wishes to terminate the employment of the Executive or if the Executive wishes to leave the employment of the Company in either case before the expiry of the period of notice specified in Clause 13.1 or, if applicable, Clause 13.2 and whether or not notice has been given under that Clause, the Company may require the Executive:

 

(a)           to perform duties not within his normal duties or to undertake special projects; or

 

(b)           not to attend for work for all or any part of the period of notice (if notice has been given) or (if notice has not been given) for a period equivalent to the notice required to be under Clause 13.1 or, if applicable, Clause 13.2.  For so long as the Executive is not required to work during such period, he will remain an employee of the Company.  He will continue to receive his salary and other contractual entitlements [except for any bonus under Clause 7] and will continue to be bound by all the terms of this Agreement.  He will not directly or indirectly work for any person, have any contact with any customer of the Group or, for business purposes, have contact with any employee of the Group without the prior written agreement of the Board.  If the Executive is not required to attend for work under this Clause the Company shall be entitled to offset any outstanding accrued holiday due to the Executive for each day of non-attendance.

 

14.          OBLIGATIONS RELATING TO TERMINATION

 

14.1        Upon the termination of the Appointment or, upon the exercise by the Company of its right under Clause 13.4(b), the Executive will hand over to the Company all property belonging to any member of the Group relating to its business (including but not limited to any Confidential Information and any Executive Intellectual Property and Executive Inventions) which may be in his possession or under his control, and without him or anyone on his behalf keeping copies of any reproduceable items or extracts from them and without having downloaded any information stored on any computer storage medium.  He will, on being requested to do so, send to the Company Secretary a signed statement that he has complied with this sub-clause;

 

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14.2        Upon the termination of the Appointment or (if earlier) upon either party giving notice under Clause 13.1 or, if applicable, Clause 13.2 and the Company exercising its rights under Clause 13.4, the Executive will resign at the request of the Company, without claim for compensation, from all offices held by him in the Group and from all trusteeships held by him of any pension scheme or other trusts established by the Company or any other member of the Group.  Should he fail to do so the Board is irrevocably authorised to appoint a person in his name and on his behalf to sign any documents and take such other steps as are necessary to give effect to such resignations.  Such resignations will be given and accepted without prejudice to any claims which the Company and the Executive may have arising out of or in connection with the Appointment and its termination.

 

14.3        Upon the Termination of the Appointment, the Executive will have no rights as a result of this Agreement or any alleged breach of this Agreement to any compensation under or in respect of any share options or long term incentive plans in which he may participate or have received grants or allocations at or before the date the Appointment terminates.  Any rights which he may have under such schemes will be exclusively governed by the rules of such schemes.

 

15.          STATEMENTS AND FURTHER ASSISTANCE

 

After the termination of the Appointment the Executive :-

 

(a)           will not at any time make any adverse, untrue or misleading statement about any member of the Group or its officers or employees or represent himself as being employed by or connected with any such company; and

 

(b)           will co-operate with any member of the Group for whom he performed duties by providing such reasonable assistance as may be required in connection with any matter, where it considers that the Executive has knowledge or information which is relevant to such claim.  The provision of such assistance may include attending meetings, giving and signing statements and attending hearings at such times and at such locations that may be convenient to the Executive.  The Company will reasonably compensate the Executive for his time on a per diem basis (with reference to his day’s salary under this contract of employment or such other amount as the Executive can reasonably justify with reference to his usual employment terms at that time).  The Company will reimburse the Executive for his reasonable out of pocket expenses incurred in providing such assistance.

 

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16.          DATA PROTECTION

 

16.1       For the purpose of the Data Protection Act 1998, the Company is the Data Controller in respect of all Executive’s Personal Data processed under this Clause 16.  The Executive’s Personal Data may be processed (which includes, without limitation, the collection, retention, use and disclosure (both electronically and manually)) solely for purposes relating to the Executive’s employment and the operation, management, security and administration of the business of the Company or any other member of the Group.  This may include but is not limited to processing done in connection with:

 

(a)           administering and maintaining personnel records;

 

(b)           planning, paying and reviewing salary and other remuneration and benefits;

 

(c)           planning, providing and administering benefits whether statutory or contractual;

 

(d)           assessments of the Executive’s performance or conduct including performance appraisals and reviews and for disciplinary and grievance procedure purposes;

 

(e)           maintaining sickness and other absence records;

 

(f)            maintaining health and safety records and ensuring a safe working environment;

 

(g)           taking decisions on the Executive’s fitness to work and complying with obligations under the Disability Discrimination Act 1995;

 

(h)           providing references and information to future employers (whether inside the Group or outside the Group);

 

(i)            providing information to the appropriate external authorities for tax, social security and other purposes as required by law to comply with any statutory duty;

 

(j)            equal opportunities, ethnic monitoring and compliance with legal obligations in connection with them;

 

(k)           providing information to any future purchasers of the Company or to any transferees of the business in which the Executive works, including but not limited to, for due diligence purposes; and

 

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(l)            planning or reviewing options, in relation to the operation or management of the Company.

 

16.2        The Executive, by signing this agreement, acknowledges that he has been notified of the purposes for which the Executive’s Personal Data may be processed and also consents to such processing for those purposes.  Furthermore, the Executive, by signing this Agreement, explicitly consents to the processing of Sensitive Personal Data for those purposes.

 

16.3        The Executive’s Personal Data may be transferred to any member of the Group (or a company appointed by them for such purposes) located in a country or territory outside the European Economic Area for any of the above purposes.  The Executive, by signing this Agreement, acknowledges that he has been notified of the purposes for which the Executive’s Personal Data may be transferred and the recipients of such Personal Data and that he also consents to transfers for those purposes.  Furthermore, the Executive explicitly consents to the transfer of Sensitive Personal Data for those purposes.

 

17.          USE AND MONITORING OF EQUIPMENT

 

17.1        Unless he has the prior written consent of the Chairman, the Executive will not use any computer hardware or software or any other technical equipment or systems owned, licensed or rented:

 

(a)           by the Company for any purpose other than to carry out his proper duties; or

 

(b)           by him or any person other than the Company for any purpose connected with the carrying out of his proper duties.

 

17.2        The Executive agrees that the Group may monitor, intercept or record his use of office equipment, including but not limited to: email, the internet, his telephone and any mobile phone issued to the Executive by the Company.

 

18.          RESTRICTIVE COVENANTS

 

18.1        Without prejudice to Clause 3, during the Appointment and for the periods set out below after the termination of the Appointment less in the case of Clause 18.1(a) any period during which the Executive is not required to attend for work pursuant to Clause 13.4, he will not (except with prior written consent of the Board) directly or indirectly do or attempt to do any of the following:

 

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(a)           for 12 months, to any material extent, undertake, carry on or be employed, engaged or interested in any capacity in the supply or proposed supply of Competitive Services within the Territory.  Competitive Services will be provided within the Territory of any business in which the Executive is to be involved is located, or will be located, or is conducted or will be conducted, wholly or partly within the Territory;

 

(b)           for 12 months entice, induce or encourage a Customer to transfer or remove custom from the Company or any other member of the Group;

 

(c)           for 12 months solicit or accept business from a Customer for the supply of Competitive Services; or

 

(d)           for 12 months entice, induce or encourage an Employee to leave or seek to leave his or her position with the Company or any other member of the Group for the purpose of being involved in or concerned with the supply of Competitive Services, regardless of whether or not that Employee acts in breach of his or her contract of employment with the Company or any other member of the Group by so doing.

 

Nothing in Clause 18.1(a) will prevent the Executive, after the termination of his employment, from holding bona fide investments representing not more than three per cent of any class of shares or securities in any company listed or dealt in on any recognised investment exchange; .

 

18.2        For the purpose of this Clause 18:

 

(a)           “Customer” means a person:

 

(i)            who is at the expiry of the Relevant Period or who was at any time during the Relevant Period a customer of the Company or any Associated Company (whether or not goods or services were actually provided during such period) or to whom at the expiry of the Relevant Period the Company or any Associated Company was actively and directly seeking to supply goods or services, in either case for the purpose of a Relevant Business; and

 

(ii)           with whom the Executive or an Employee in a Relevant Business reporting directly to him had dealings at any time during the Relevant Period or and/or for whom the Executive was responsible and/or about

 

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whom he was in possession of confidential information, in any such case in the performance of his or their duties to the Company or any Associated Company;

 

Nothing in Clause 18.2(a)(i) will include a person who indicates unequivocally during the first six months of the Relevant Period that such person would not be a customer for the purposes of that Clause.

 

(b)           “Competitive Services” means goods or services competitive with those which during or at the expiry of the Relevant Period the Company or any other member of the Group was supplying or negotiating or actively and directly seeking to supply to a Customer for the purpose of a Relevant Business, but excluding such types of goods or services if they were only provided to persons who indicated unequivocally during the first six months of the Relevant Period that they would not be a customer for the purposes of Clause 18.2 (a)(i);

 

(c)           “Relevant Business” means the areas of business of the Company or any other member of the Group in which, pursuant to his duties, the Executive was materially involved, or in respect of which the Executive was in possession of Confidential Information, in either case at any time during the Relevant Period.

 

(d)           “Territory” means England, Wales, Scotland and/or Northern Ireland and any other country or, in the United States, any state in which the Company or any other member of the Group is operating or planning to operate Relevant Business at the expiry of the Relevant Period.  Relevant Business will be operating within the Territory at the expiry of the Relevant Period if it has been conducted or promoted during the Relevant Period;

 

(e)           “Employee” means a person who:

 

(i)            is employed in or who renders services to Relevant Business of the Company or any other member of the Group in a [managerial or marketing or sales or distribution or senior capacity];

 

(ii)           has responsibility for customers of the Company or any other member of the Group or influence over them; or

 

(iii)          is in possession of confidential information about the Group’s business;

 

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and who in any such case was so employed and so rendered services during the Relevant Period and who:

 

(i)            had dealings with the Executive during the Relevant Period; or

 

(ii)           about whom at the end of the Relevant Period the Executive had confidential or sensitive information by virtue of the Executive’s duties;

 

(f)            “Relevant Period” means:

 

(i)            the period of the Appointment, in relation to the Executive’s actions during the Appointment; and

 

(ii)           the period of twelve months ending on the last day of the Appointment or the period of the Appointment if shorter than twelve months, in relation to the Executive’s actions following the end of the Appointment.

 

18.3        Each sub-clause and part of such sub-clause of this Clause constitutes an entirely separate and independent restriction and does not operate to limit any other obligation owed by the Executive, whether that obligation is express or implied by law.  If any restriction is held to be invalid or unenforceable by a court of competent jurisdiction, it is intended and understood by the parties that such invalidity or unenforceability will not affect the remaining restrictions.

 

18.4        The Executive acknowledges that each of the restrictions in this Clause go no further than is necessary for the protection of the Company’s and each other member of the Group’s legitimate business interests.

 

18.5        Before accepting any offer of employment, either during the Appointment or during the continuance of the restrictions in this Clause 18, the Executive will immediately provide to the person making such offer a complete signed copy of this Agreement.

 

18.6        Where the Executive’s employment transfers to an employer other than the Company pursuant to TUPE, the new employer may amend the restrictions, taking into account the new employer’s business, to ensure that the restrictions in Clause 18 continue to go no further than is necessary for the protection of the legitimate interests of the new employer (and any group of which it is a member).  Subject to any such amendment,

 

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or if no such amendment is made, the parties agree that, following such TUPE transfer, the interpretation of the restrictions in Clause 18 will depend on whether the Relevant Period includes a period prior to the TUPE transfer.  If it does not include such a period, then the references to the Company and Group shall be understood to refer to the new employer and any Group of which it is a member.  Otherwise, the references to the Company and the Group shall be understood to refer to the new employer and any group in which it is a member only in respect of the portion of the Relevant Period following the date of the transfer, and the references to the Company and the Group shall apply in respect of the remainder of the Relevant Period to the employer and the Group as they were immediately prior to the date of transfer.

 

19.          CONTINUING OBLIGATIONS

 

The termination of the Appointment will not affect the rights or remedies of either party against the other in respect of any antecedent breach of any of its provisions or the continuing obligations of the Executive or the Company (as the case may be) under any provision of this Agreement expressed to have effect after the Appointment has terminated.

 

20.          CORPORATE RECONSTRUCTION

 

If the Appointment terminates

 

(a)           by reason of the liquidation of the Company for the purposes of amalgamation or reconstruction; or

 

(b)           as part of any arrangement for the amalgamation of the undertaking of the Company not involving liquidation; or

 

(c)           as part of any arrangement for the transfer of the whole or part of the undertaking of the Company to any other member of the Group,

 

and the Executive is offered employment of a similar nature with any person resulting from such amalgamation or reconstruction or with any person with which the undertaking of the Company is amalgamated with any other member of the Group on terms which when taken as a whole are not less favourable to the Executive than the terms of the Appointment, the Executive will have no claim against the Company or any other member of the Group in respect of the termination of the Appointment by reason of the events described in (a), (b) or (c) of this Clause.

 

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21.          AGREEMENTS WITH OTHER COMPANIES IN THE GROUP

 

21.1        This Agreement is entered into by the Company for itself and in trust for each other member of the Group with the intention that each company will be entitled to enforce the terms of this Agreement directly against the Executive.

 

21.2        The Contracts (Rights of Third Parties) Act 1999 will not create any rights in favour of the Executive in relation to the benefits granted now or at any time in connection with his employment.

 

22.          ADDITIONAL TERMS

 

The terms set out in the Schedule are added in compliance with the requirements of the Employment Rights Act 1996.

 

23.          NOTICES

 

All notices and other communications relating to the Appointment will take effect if delivered, upon delivery;  if posted, at the earlier of the time of delivery and (if posted in the United Kingdom by first class post) 10.00am on the second business day after posting;  or if sent by facsimile, when a complete and legible copy of the communication has been received.  Any communications posted to the Executive should be sent to his last known domestic address or his last known home fax number.  Any communications posted to the Company should be sent to the Company’s head office, for the attention of the Company Secretary.

 

24.          MISCELLANEOUS

 

24.1        This Agreement operates in substitution for and wholly replaces with effect from the Effective Date all terms previously agreed between the Company and the Executive which will be deemed to have been terminated by mutual consent and the Executive acknowledges that he has no outstanding claims against any member of the Group in respect of salary or any matter prior to that date.

 

24.2        The Appointment constitutes the entire agreement and understanding between the parties and no variation or addition to it and no waiver of any provision will be valid unless in writing and signed by or on behalf of both parties.  The Company will have no liability or remedy in tort against it in respect of any representation, warranty or other statement (other than those contained in this Agreement) being false, inaccurate or incomplete unless it was made fraudulently. The Executive acknowledges that he is 

 

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not entering into this Agreement in reliance on any representation, warranty or undertaking which is not contained in this Agreement.

 

24.3        In the event of any conflict between this Agreement and any Company handbook or policies, the terms of this Agreement will prevail.

 

24.4        This Agreement will be construed in accordance with English law and the parties irrevocably submit to the exclusive jurisdiction of the English Courts to settle any disputes which may arise in connection with this Agreement.

 

EXECUTION

 

The parties have shown their acceptance of the terms of this Agreement by executing it below at the end of the Schedule.

 

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SCHEDULE

 

1.             The following terms of the Appointment apply on the date of the Agreement to which this is a Schedule.

 

(a)           The Executive’s period of continuous employment began on 17 August 2007.

 

(b)           The Executive has no normal working hours but is required to work during normal business hours and such other hours as may be reasonably necessary for the proper performance of his duties for the Group.  The Executive agrees that the duration of his working time is not measured or pre-determined and can be determined by him in a manner consistent with the Appointment.

 

(c)           For Statutory Sick Pay purposes, the Executive’s qualifying days are Monday to Friday.

 

2.             The following information is supplied pursuant to the Employment Rights Act 1996 and reflects the Company’s current practice.

 

(a)           The Executive is expected to exhibit a high standard of propriety, integrity and efficiency in all his dealings with and in the name of the Company and the Group and may be suspended (with pay) or required to take any accrued holiday entitlement during any investigation which it may be necessary for the Company to undertake.

 

(b)           The Company will comply with the terms of its non-contractual disciplinary procedure contained in the Staff Handbook.

 

(c)           If the Executive has any grievance relating to the Appointment or matters where he considers the Company or any other member of the Group is failing to comply fully with its legal obligations, he should refer that grievance to the Chairman.  Should the Executive remain dissatisfied with the decision made, an appeal may be made to the person nominated by the Company to hear the appeal, who will be a director of the Board not previously involved, or any other person outside the Group who, in the reasonable opinion of the Company, is appropriate to hear such appeal.  The decision of the appeal hearing will be final and binding.

 

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EXECUTION

 

	
SIGNED by
    	
)
    	
 
    
	
Justin Gover, Director
    	
 
    	
 
    
	
duly authorised for and on behalf of
    	
)
    	
/s/   Justin Gover
    
	
G W PHARMA LIMITED
    	
)
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SIGNED as a Deed by
    	
)
    	
 
    
	
ADAM GEORGE
    	
)
    	
/s/   Adam George
    
	
 
    	
 
    	
 
    
	
in the presence of:
    	
)
    	
 
    
	
 
    	
 
    	
 
    
	
Witness’s Signature:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name (in capitals):
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Occupation:
    	
 
    	
 
    

 

31

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