Document:

Exhibit 10.16

 

 

 

PEREGRINE SYSTEMS

LIMITED

 

 

Terms and Conditions of
Employment

 

 

Alan Kerr

 

1

 

TERMS AND
CONDITIONS OF EMPLOYMENT

 

	
  Full Name:

  	
  Alan Kerr

  
	
  Address:

  	
  The Great Barn

  
	
   

  	
  Wokingham Road

  
	
   

  	
  Hurst

  
	
   

  	
  Berkshire

  
	
   

  	
  RG10 0RX

  

 

The standard terms and conditions of employment with
Peregrine Systems Limited (“the Company”) of Ambassador House, Paradise Road,
Richmond, Surrey TW9 1SQ are set out below. 
Details of your individual terms, including remuneration, are set out in
the letter offering you employment.

 

Your terms and conditions may be subject to change
from time to time in which case you will be advised of the Company’s intention
with due notice either individually in writing or by general e-mail.  There are no collective agreements that
affect the terms and conditions of your employment with Peregrine Systems.

 

 

DUTIES

 

You will perform all acts, duties and obligations and
comply with such orders as may be designated by the Company which are
reasonably consistent with the position that you hold.  The Company may require you to undertake
different or additional duties, however, you will not be assigned duties which
you cannot reasonably perform.

 

 

RULES,
POLICIES AND PROCEDURES

 

During your employment you will be required to comply
with the Company’s rules, policies and procedures which may vary from time to
time and to comply with the Company’s lawful and reasonable instructions.

 

Copies of the Company’s Disciplinary Rules and
Procedure and Grievance Procedure, which do not form part of your contract of
employment, may be obtained from your Manager or from the Company Intranet.

 

 

HOURS
OF WORK

 

Your normal working hours are 37.5 hours per week from
9.00am to 5.30pm Monday to Friday.  This
includes one hour for lunch which is to be taken between 12.00 noon and 2.00pm
at the discretion of your Manager.

 

2

 

You are expected to work such hours as are reasonably
necessary to perform your duties and to meet the needs of the business.  There is no entitlement to be paid
additional remuneration for any additional hours worked as this obligation has
already been taken into account by the Company in determining salary levels.

 

The Company reserves the right to change your start
and finish times and the days on which you work.

 

By signing these terms and conditions you agree to
waive the provisions of the Working Time Regulations 1998 and consent to work
in excess of 48 hours per week (averaged over 17 weeks) if required.  You may withdraw this consent at any time by
giving 7 days notice in writing to your Manager.  The Company will not penalise you in any way if you decide not to
opt out or exercise your right to withdraw your consent to opt out.

 

 

PLACE
OF WORK

 

The Company may require you to work at any premises
that the Company may subsequently acquire within reasonable travelling distance
of your home.  During the course of your
employment you will also be required to work at various premises belonging to
the Company’s customers, and to travel both within the UK and abroad.

 

 

REMUNERATION,
EXPENSES AND DEDUCTIONS

 

Your salary is as stated in your offer letter.  Any subsequent changes will be discussed
with you and notified to you in writing. 
Salaries are normally reviewed annually though there is no guarantee
that there will be an increase.

 

You will be reimbursed for any reasonable expenses
incurred by you in carrying out your duties, subject both to your producing
receipts when requested to do so and to complying with relevant company
policies that are in force at the time.

 

By signing these terms and conditions you agree that
the Company will be entitled at any time during your employment, or in any
event on the termination of your employment, to deduct from your remuneration,
or from your expenses reimbursement, any monies due from you to the Company.

 

 

HOLIDAY
ENTITLEMENT

 

The Company’s holiday year runs from 1 April to 31
March.  In addition to U.K. Public
Holidays you are entitled to 25 days holiday in each complete holiday year
worked.  This includes your statutory
holiday entitlement under the Working Time Regulations 1998 which shall be
considered to have been taken first.

 

3

 

Holiday entitlement in the first and final years of
employment will be calculated on a pro rata basis with holidays accruing at the
rate of 2.08 days per completed month of employment.  The total will be rounded up to the nearest half day.

 

If on the termination of your employment you have taken
holiday in excess of your accrued entitlement, this excess will be deducted
from any monies due to you.  If you have
holiday entitlement which you have accrued but not taken the Company may, at
its discretion, require you to take your holiday during your notice period or
may pay you a sum in lieu of accrued holiday.

 

You must obtain the prior approval of your Manager
before booking holiday dates. It is not usual for the Company to grant leave of
more than 2 weeks at any one time.

 

In the event of your having any unused holiday at the
end of the holiday year you may carry over up to 5 days into the first three
months of the next holiday year with the prior approval of your Manager.  Any carried over holiday which is not taken
by 30 June will be lost.

 

 

SICKNESS
ABSENCE AND SICK PAY

 

If you are unable to come to work for any reason you
must inform your Manager, or another appropriate person within the Company, as
soon as possible on the first day of absence. 
You must then keep the Company informed of your progress and likely date
of return on a regular basis.

 

For absences of up to 7 days a self – certificate will
be accepted.  For absences of more than
seven consecutive days, including weekends, you must obtain a medical
certificate from your doctor and send this to the Company.

 

Providing that you meet the requirements in respect of
certification and the Company is satisfied that your absence is due to genuine
incapacity for work, the Company will pay you up to 15 working days Company
Sick Pay (including Statutory Sick Pay where payable) during the year from 1
April to 31 March.

 

You will receive Statutory Sick Pay (SSP) when you
qualify for it.  Details of the SSP
Scheme may be obtained from the Human Resources Department.

 

If at any time during your employment your health
gives cause for concern you may be required by the Company to undergo a medical
examination by a doctor nominated by the Company.  The Company may ask for a medical report from the doctor carrying
out the examination and you will be asked to sign a medical consent form to
confirm your agreement to this.

 

4

 

PENSION
AND OTHER BENEFITS

 

The Company reserves the right to terminate its
participation in any of its benefit schemes or to substitute another scheme or
to alter the benefits available to you under any of the schemes.

 

 

DATA
PROTECTION

 

In accordance with the Data Protection Act 1998 the
Company is required to obtain your consent to process personal data held on
your personnel file and the Company’s computer systems.

 

From time to time the Company will wish to process
personal information for administration and business management purposes.  Such processing will take place in
accordance with the provisions of the Data Protection Acts 1984 and 1998.  As part of an international organisation we
may on occasion wish to make your personal records available to other parts of
Peregrine Systems which may be located in the United States or other parts of
the world.  By signing these Terms and
Conditions of Employment you are giving your consent to these uses.

 

 

EXCLUSIVITY
OF SERVICE

 

You are required to devote your full time, attention
and abilities to your job duties during working hours, and to act in the best
interests of the Company at all times. 
You must not, without the written consent of the Company, be in any way
directly or indirectly engaged or concerned in any other business or
undertaking where this is or is likely to be in conflict with the interests of
the Company or where this may adversely affect the efficient discharge of your
duties.  However, you may hold up to 5%
of any class of securities for investment purposes in any company which is
quoted on a recognised Stock Exchange. 
If the holding is to exceed 5%, the prior approval of the Board of
Directors of the Company should be obtained. 
Subject to this clause, and to the Company’s prior written consent you
may perform duties of a non-executive director for another company which is not
a competitor of the Company.

 

 

CONFIDENTIAL
INFORMATION

 

You shall neither during your employment (except in
the proper performance of your duties) nor at any time after the termination
thereof, directly or indirectly

 

•                  use for your own purposes or those of any other person, company,
business entity or other organisation whatsoever, or

 

5

 

•                  disclose to any person, company, business entity or other
organisation whatsoever, any trade secrets or confidential business information
relating or belonging to the Company including but not limited to any such
information relating to customers, customer lists or requirements, price lists
or pricing structures, marketing and sales information, business plans or
dealings, employees or officers, financial information and plans, designs,
formulae, specific technical information, research activities, any document
marked “Confidential”, or any information which you have been told is
confidential or which you might reasonably expect the Company would regards as
confidential, or any information which has been given to the Company in
confidence by customers, suppliers and other persons.

 

You shall not at any time during your employment with
the Company make any notes or memoranda relating to any matter within the scope
of the Company’s business dealings or affairs otherwise than for the benefit of
the Company.

 

 

COMPUTER
SYSTEMS AND FACILITIES

 

Internet access, including e-mail facilities, are
essential elements of Peregrine’s day to day business operations and employees
granted access to these facilities are required to use them in a responsible
way and to follow the Company’s guidelines on such use.

 

The Company
will audit and monitor use of the systems to ensure proper and effective
business use.   You should not expect privacy
in the use of Company Internet, e-mail and fax facilities.  All e-mail is stored and the Company may
inspect e-mail (including personal e-mails) at any time.

 

By accepting employment with the Company you consent
to such monitoring and inspections.

 

 

INTELLECTUAL PROPERTY

 

You shall disclose to the Company any idea, design,
work or invention made in the course of your employment, whether or not in the
course of your duties.  All ideas,
designs, works and inventions of any nature whatsoever in connection with the
business of the Company, made by you, or which you have played a part in making
during the course of your employment shall be the exclusive property of
Peregrine Systems Limited.

 

All patents, copyright and other intellectual property
rights throughout the world in respect of such ideas, designs, works or
inventions shall also be the exclusive property of the Company.

 

In accepting employment with the Company you
irrevocably waive in favour of Peregrine Systems Limited any and all moral
rights which you may have in any copyright work created by you pursuant to your
employment with the Company.

 

6

 

You will, at the request and expense of the Company,
do such things and execute such documents as may be necessary to give the
Company the full benefit of such ideas, designs, works and inventions.

 

The Company will pay you such compensation as it will
determine in its discretion, subject to Section 40 of the Patents Act 1977.

 

 

DISCIPLINE

 

You will be expected to maintain a good standard of
work performance and conduct at all times. 
If standards fall below the reasonable levels acceptable to the Company,
you will be liable to disciplinary action which could ultimately result in
dismissal if satisfactory improvements are not forthcoming.

 

 

TERMINATION
OF EMPLOYMENT

 

Details of the notice necessary to terminate your
employment are contained in the letter offering you employment.

 

The Company reserves the right to terminate your
employment without notice, and without pay in lieu of notice, if it has
reasonable grounds to believe that you are guilty of gross misconduct or gross
negligence.

 

The Company reserves the right to pay compensation in
lieu of any notice of termination of employment (subject to a duty to mitigate
your loss) which it or you are required to give.  Where you have received pay in lieu of notice you will not be
entitled to any additional compensation in respect of any holiday that would
otherwise have accrued during the notice period.

 

The Company reserves the right to tell you not to
attend the office whilst working your notice period irrespective of whether
notice has been given by you or by the Company.  In these circumstances you will be paid your normal salary and
receive normal Company benefits during the notice period.  During any such period the Company may
require you to undertake duties at home, however, the Company is relieved of
any obligation to provide you with work and may require you not to have any
contact with customers of the Company or such employees as the Company may
determine.  You may not work for any
other Company during your notice period.

 

 

TERMINATION
THROUGH ILLNESS

 

It is necessary for the efficient operation of the
business that all employees attend work regularly.  If you are unable to achieve this for reasons of poor health the
Company may

 

7

 

not be able to continue your employment.  Your health will be reviewed regularly
during any absence from work due to sickness, injury or other incapacity and
the Company reserves the right to terminate your employment in such
circumstances.  However, no action would
be taken without consulting with you and establishing that no reasonable adjustments
can be made to accommodate your situation.

 

 

REQUIREMENTS
ON LEAVING THE COMPANY

 

Upon the termination of your employment, for whatever
reason, you will:

 

1.               Immediately deliver up
to the Company all databases, lists of customers and clients, correspondence
and other documents, papers and property whether in hard copy or computer
readable form belonging to the Company which may have been prepared by you or
have come into your possession during your employment and you must not retain
any copies or extracts of them.

 

2.               Return
all other Company property, which may include some or all of the following:
mobile phone, PC, laptop, keys and security pass.  The Company reserves the right to retain the sum of one thousand
pounds from your final payment until all Company property has been returned.

 

3.               Cease
to represent yourself as being in any way connected with the business of the
Company.

 

 

RESTRICTIONS
AFTER THE TERMINATION OF EMPLOYMENT

 

You agree that for a period of six months immediately
after the effective date of the termination of your employment you will not,
either on your own behalf or on behalf of any other person or organisation,
either directly or indirectly:

 

•                  Solicit, or assist in soliciting, or deal with, in competition with
the Company, the custom or business of any Customer or Prospective Customer
with whom you have had substantial personal contact or dealings on behalf of
the Company during the 12 months immediately preceding the effective date of
the termination of your employment.  This
also applies to organisations with whom employees reporting directly to you
have had personal contact or dealings on behalf of the Company during the
relevant period.

 

•                  Solicit, or entice away, or accept into employment or otherwise
engage the services of, any person who is a Company Employee.  This applies where that person is a Company
Employee on the effective date of the termination of your employment or has
been a Company Employee in any part of the three months immediately preceding
the Termination Date

 

8

 

UNDERTAKING

 

You agree that in the event of receiving from any
person, company, business entity or other organisation an offer of employment
either during your employment with the Company or during the continuance in
force of any restrictions set out above you will immediately provide to such
person, company, business entity or other organisation a full and accurate
signed copy of these Terms and Conditions.

 

 

Note

 

Throughout
this Statement of Terms and Conditions of Employment references to the Company
should be taken as including reference to Associated Companies that are either
directly or indirectly controlled by the Company or directly or indirectly
control the Company.

 

 

	
  Issued on behalf of Peregrine Systems by:

  	
   

  
	
   

  	
  Roddy Temperley

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signed and Agreed by:

  	
   

  
	
   

  	
  Alan Kerr

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Date:

  	
   

  
											

 

9Exhibit
10.17

 

 

20
December 2001

 

Mr
Alan Kerr

The Great Bam

Workingham Road

Hurst

Berkshire

RG100RX

 

Dear
Alan

 

Following
your recent interviews I am pleased to offer you the position of Vice President
&, General Manager - EMEA
with Peregrine Systems Limited (“the Company”). You will be based at our
offices at Richmond and you will report to Andy Cahill, Executive VP Customer
Relationships Group.  This offer is open
for 10 working days from the date of this setter. Your expected start date is 7th
January 2002.

 

This
letter sets out the terms of your employment that are personal to you and it
should be read in conjunction with the Company’s standard terms employment that
arc contained in the attached ‘Statement of Terms and Conditions of
Employment”. In the event of a conflict between these documents the terms in
this letter will prevail.

 

1.   Remuneration

 

Your base salary will be £192,500 per
annum. This will be paid calendar monthly by credit transfer on or around the
20th day of the month.

 

You will also be entitled to
participate in the Company’s Incentive Plan, subject to the Plan terms and
conditions from time to time in force. Full details of the Plan will be given
to you after you join us. Your Incentive Target is £157,500 resulting in an
O.T.E. of £350,000.

 

2.   Stock Options

 

On joining you will be granted 200,000
Peregrine Systems stock options, subject to the approval of the Board of
Directors or applicable designee.

 

	
  Frictionless Business

  	
  |

  	
  Infrastructure Management

  	
  Employee
  Relationship Management

  	
  ?2?
  Relationship Management

  

 

	
  Peregrine
  Systems Ltd - Ambassador House - Paradise Road - Richmond - Surrey - TW9 ISQ
  - Tel +44(0)20 8332 9666 - Fax: +44(0)20 8332 9533 - www.peregrine.com

  
	
  Registered
  in England 256 3273 - Registered Office: Peregrine House - 26-28 Paradise
  Road - Richmond - Surrey - TW9 ISE - United Kingdom - VAT No. 562 9064 29

  

 

 

After six months you will be granted a
further 50,000 Peregrine Systems stock options, subject to the approval of the
Board of Directors or applicable designee.

 

In the event the Company experiences a
change of control (as defined in the Plans): (a) If a company acquires
Peregrine and assumes or substitutes
your existing outstanding stock options there will be no change in the terms
of your stock options: or (b) If a company acquires Peregrine and does not
assume your outstanding stock options, your options will become fully vested
and exercisable. In addition, your Option Agreement provides that your options
will become fully vested and exercisable in the event you are terminated
without cause or you terminate your employment for good reason within twelve
months following a change of control.

 

3.   Car Allowance

 

You
will be entitled to a Car Allowance of £1,500 per month, together with
reimbursement of business mileage at a rate determined from time to time by the
Company.

 

4.   Mobile Phone
Allowance

 

You
will be entitled to a Mobile Phone Allowance of £50 per month to cover the
monthly line rental. Business related calls will be reimbursed, via expenses,
upon production of appropriate billing information.

 

5.   Pensions and Other Benefits

 

As
discussed we will implement a suitable Executive Pension Scheme as soon as
possible to arrange competitive pension provision for you.

 

In
addition you and your immediate family will be eligible to benefit from the
Company’s private medical insurance scheme and you will be eligible to
participate in the death in service life assurance and permanent health
insurance schemes. These benefits are subject to acceptance onto schemes and
the terms and conditions of such schemes from time to time in force. Further
details will be provided when you join us.

 

6.   Notice Period

 

The
notice required from you to the Company will be 12 months. Notice from the
Company to you will be 12 months. Notice should be given in writing.

 

7.   Continuous Service

 

Your
date of continuous service is 7th January 2002.

 

 

8.   Joining Fee

 

As agreed you will be paid a joining
fee of £35,000 which will be paid through the payroll less normal tax and Nl
deductions following your start date.

 

This
letter and the accompanying Statement serve to fulfil the legal requirements
contained in the Employment Rights Act (1996) to give employees written
particulars of their Terms and Conditions.

 

You should sign
and return to me one copy of this letter and the Statement as an indication of
your acceptance of this offer. At the same time please include contact details
for your referees.

 

I
look forward to welcoming you to Peregrine, however, if in the meantime you
have any queries concerning this offer that you would like to discuss, then
please do not hesitate to contact me.

 

	
  Yours
  sincerely

  
	
   

  
	
   

  
	
  /s/ Roddy Temperley

  	
   

  	
   

  
	
  Roddy Temperley

  
	
  AVP Human
  Resources

  
	
  for and on
  behalf of

  
	
  Peregrine
  Systems Limited

  

 

I confirm my acceptance of
employment on the terms and conditions outlined above and in the “Statement of
Terms and Conditions of Employment”. In addition I confirm that I am not
prevented by any previous’ terms and conditions, or in any other way, from
entering into employment with Peregrine” Systems and performing all the normal
duties expected of such a position.

 

	
  Signed

  	
  /s/ Alan Kerr

  	
   

  	
  Date

  	
    24 December 2001

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Start Date

  	
  7 January 2002

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