Document:

Exhibit
10.4

 

	
  DATED

  	
  , 2008

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  METASTORM LIMITED

  	
   

  	
  (1)

  
	
   

  	
   

  	
   

  
	
  And

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  NAME

  	
   

  	
  (2)

  

 

 

 

CONTRACT OF EMPLOYMENT

 

 

 

	
  DATE OF
  AGREEMENT

  	
  2008

  

 

PARTIES

 

	
  (1)

  	
  METASTORM LIMITED whose registered office is at Central House, 1 Alwyne Road, London
  SW19 7AB (the “Company”)

  
	
   

  	
   

  
	
  (2)

  	
  NAME of ADDRESS

  

 

IT
IS AGREED THAT:

 

1             DEFINITIONS AND INTERPRETATION

 

1.1          In this
agreement the following words and phrases shall have the following meaning:

 

“DPA”
means the Data Protection Act 1998.

 

“ERA”
means the Employment Rights Act 1996.

 

“Group” means the Company and its subsidiaries and any holding company of
the Company and any subsidiary of such holding company (all as defined in the
Companies Act 1985) and any associated company (which expression shall mean any
other company of which the Company or its holding company or any subsidiary or
the company or its holding company beneficially holds not less than 20% of the
equity share capital).

 

“TUPE”
means the Transfer of Undertakings
(Protection of Employment) Regulations 1981.

 

“WTR” means the Working Time Regulations 1998.

 

2             COMMENCEMENT

 

Your
employment began on START DATE.  No previous employment with the Company or
with a previous employer counts as part of a period of continuous employment
with the Company, except where required
under TUPE.

 

3             JOB TITLE/DUTIES

 

3.1          Your
job title is TITLE.  Your normal responsibilities and duties will
be as detailed in Schedule 3, and as directed by the VP International Sales
from time to time.  The Company reserves
the right to require you to perform such other or additional duties as the
Company may reasonably determine from time to time.

 

3.2          You are
required to be familiar with and comply with all policies and procedures of the
Company at all times.

 

3.3          You
agree that if the nature of the work the Company requires you to do or the
manner of doing it changes you will undergo appropriate Company-provided
training to enable you to fulfil the new requirements.

 

3.4          You
acknowledge and agree that you will at all times during your employment,
including during any period of suspension or while on garden leave in
accordance with clause 18.4, be subject to a duty of goodwill, trust,
confidence, exclusive service, faith and fidelity to the Company.  These duties include, without limitation the
duty throughout the duration of this agreement:

 

1

 

(a)           not to
compete with the Company or any Group Company;

 

(b)           not to
make preparations (during such hours as you should be providing services under
this agreement) to compete with the Company or any Group Company after this
agreement has terminated;

 

(c)           not to
solicit in competition with the Company or any Group Company any customer or
customers of the Company or Group Company;

 

(d)           not to
entertain invitations to provide services in a personal capacity from customers
of the Company or any Company of the Group where such invitations relate to
services which could be provided by the Company or any Group Company;

 

(e)           not to
offer external employment to employees of the Company or any Company of the
Group (other than employment by the Company or any Group Company);

 

(f)            not
to copy or memorise confidential information or trade secrets of the Company or
any Group Company with a view to using or disclosing such information for a
purpose other than for the benefit of the Company or the Group Company; and

 

(g)           not
without the prior written consent of the Company engage in any form of business
or employment other than your employment with the Company or the Group whether
inside or outside your normal hours of work. 
In the event permission is granted for you to engage in other employment
outside your normal hours of work, you are required to notify us of the hours
worked and to discontinue it if an actual or potential conflict of interest
between that activity and your work for us arises.

 

4              PROBATIONARY PERIOD

 

4.1           If a
new starter, your initial employment with the Company will be on the basis of a
probationary period of three months. 
During that period, the Company will assess and review your work
performance and may at any time terminate your employment with one week’s
written notice.

 

4.2           The
Company reserves the right, at its discretion, to extend your probationary
period should it be deemed necessary.

 

4.3           If you
feel you are not suited to the job during the probationary period you will be
required to give the Company one week’s written notice to terminate your
employment.

 

4.4           Your
employment will be confirmed in writing should your probationary period prove
satisfactory to the Company.

 

5              PLACE OF WORK

 

5.1           Your
primary place of employment is Central House, 1c Alwyne Road, Wimbledon, London
SW19 7AB.  You may be required to work
either on a temporary basis or a permanent basis at any of the Company’s or the
Group’s other locations the Company may reasonably require from time to time

 

2

 

5.2           You
may also be required to travel on Company business.  This may involve travelling outside normal
business hours and at weekends and Bank or Public holidays should the need
arise.  Reasonable expenses will be paid
for such travel as detailed in clause 9.

 

6              NORMAL HOURS

 

6.1           Your
normal working hours are from 9am to 5.30pm Monday to Friday.  You are entitled to a break for lunch of up
to one hour, preferably to be taken between 12.00pm and 3.00pm.  However, in busy periods you will be expected
to be flexible on the timing and length of your break.

 

6.2           You
will be required to work such additional hours as are reasonably necessary to
complete your duties or when the particular needs of the business dictate.  This may include working in the evenings,
outside normal office hours, at weekends or on Bank or public holidays.  You will be issued with an appropriate
security pass should you work outside normal office hours and you are expected
to comply with the Company’s security procedures at all times.  This includes observing the notices
concerning restricted areas where only authorised personnel are permitted to
enter.  You will not be entitled to extra
pay or time off in lieu for working any additional hours.

 

6.3           For
the purposes of the WTR, it is not intended that you will be required to work
on average in excess of 48 hours per week averaged over a period of 17
weeks.  However, you hereby agree to work
in excess of an average of 48 hours per week should the Company require you to
do so.  If you wish to terminate your
agreement to opt out of the 48-hour average limit, you are required to give the
Company 3 months’ written notice of your intention to do so.

 

7              REMUNERATION

 

You will be
paid £
SALARY  gross  per annum
which will be paid monthly in arrears on or before the last working day of each month. 
Your salary will be credited directly to your bank account.  Salaries are reviewed each year without any undertaking from the Company that an
increase will be made.  You will be
notified in writing of any change to your salary, if any is made.

 

8              OTHER BENEFITS

 

8.1           During
this agreement you will be entitled to participate at the Company’s expense in
the Company’s private medical expenses insurance scheme for your benefit.

 

8.2           Your
membership of the scheme detailed at 8.1 above is subject to:

 

(a)           the rules of
the above scheme from time to time (and any replacement schemes provided by the
Company); and

 

(b)           your
being eligible to participate in or benefit from such schemes pursuant to their
rules.

 

8.3           If the
scheme provider (including but not limited to any insurance company) refuses
for any reason (whether based on its own interpretation of the terms of the
insurance policy or otherwise) to provide any benefits to you the Company is
not liable to provide replacement benefit of the same or similar kind or
compensation in lieu of such benefit.

 

3

 

8.4           The
Company may at its absolute discretion challenge any refusal by the scheme
provider to provide benefits to you providing:

 

(a)           where
appropriate, you take all proper measures to appeal against the refusal in
accordance with the terms of any policy provided by the scheme provider and
meet (on an interim or on-account basis if so requested) all costs in
connection with the same which are incurred by the Company;

 

(b)           you
co-operates with the Company and discloses to it all  personal information relevant to the claim
and if required by the Company, attends a medical examination by a doctor
selected and instructed by it;

 

(c)           you
fully indemnify the Company against all costs, expenses and claims incurred by
the Company in connection with challenging the scheme provider’s decision to
refuse to provide benefits under the scheme.

 

8.5           The
Company at its absolute discretion reserves the right to discontinue, vary or
amend any scheme provided for the benefit you at any time and will not be
liable to provide any replacement benefit of the same or similar kind, or
compensation in lieu of such benefit.

 

9              BONUS ARRANGEMENT

 

You will be
entitled to commission calculated by reference to the compensation plan
attached at Schedule 1 to this agreement. 
The Company reserves in its absolute discretion the right to terminate
or amend any commission arrangements applicable to you without notifying you.

 

10           CAR ALLOWANCE

 

The Company
will provide you with an annual car allowance of £ANNUAL
AMOUNT to be paid in equal monthly instalments (less tax and
National Insurance) with your salary. 
This allowance shall be deemed to include all costs of road fund
licence, insurance premiums and running costs of the car, including fuel, oil,
maintenance and repairs.  For the
avoidance of doubt, the car allowance is not included in your basic pay and
will not count towards other terms and conditions of employment which are
related to your basic pay.

 

11           BUSINESS EXPENSES

 

You will be
reimbursed for all business expenses properly incurred by you in connection
with carrying out your duties under this agreement.  You must produce evidence of your expenses in
the form required by the Company from time to time.  The Company reserves the right to refuse to
reimburse expenses for which no satisfactory evidence has been produced.  Further details of reimbursement are provided
in the Europe Travel & Expense Policy.

 

12           PENSION SCHEME

 

12.1         The
Company operates a Defined Contribution Pension Scheme (“the Scheme”) which
subject to your satisfying the eligibility criteria of the scheme and subject
to the rules of the scheme provides benefits on your retirement and a lump
sum payment (and pension for your spouse/dependants) if you should die during
your employment.

 

4

 

12.2         Membership
of the Scheme is optional and you can leave it at any time.   You must confirm to Human Resources that you
wish to join the Scheme.

 

12.3         Further
details of the Scheme are set out in the Pension Scheme Booklet which may be
obtained from Human Resources.   The
Scheme is kept under review and changes in it will be made from time to
time.   You will be notified of any
significant changes.

 

12.4         As a
member of the Scheme you will have to contribute to it.  For every 1% of gross salary you choose to
contribute personally the company will make an equivalent contribution to a
limit of 5% of your gross salary.   You
hereby authorise the Company to deduct your pension contribution from your pay.

 

12.5         The
Company reserves the right to at its absolute discretion to terminate or
substitute other schemes for the Scheme or terminate or amend the terms of the
Scheme including the level of benefits.

 

13           HOLIDAYS

 

13.1         The
Company’s holiday year runs from 1 January to 31 December.

 

13.2         In addition
to UK Bank and public holidays you are entitled to 22 days’ basic paid holiday
in each complete holiday year.

 

13.3         Entitlement
for holidays and holiday pay cannot be brought forward or carried over to the
next holiday year.

 

13.4         There is
no payment in lieu in respect of any holiday untaken at the end of the holiday
year.

 

13.5         You will
not normally be permitted to take more than 10 consecutive working days’
holiday at any one time.  Should you wish
to take more than 10 days’ holiday on one occasion you must first obtain
written permission from the VP International Sales.

 

13.6         Holiday
dates must be taken at times convenient to the Company and agreed first with
the VP International Sales.  Holiday
dates will be allocated on a first come first served basis and the Company
reserves the right to refuse to grant a request for holiday at times
inconvenient to the business.

 

13.7         In the
holiday year, you will be deemed to take WTR holiday before non-WTR holiday.

 

13.8         You will
not continue to accrue non-WTR holiday for any period or periods during which
you are absent from work by reason of illness which exceed in aggregate 20
working days in any holiday year.

 

13.9         The
Company reserves the right to require you to take any unused holiday
entitlement during any period of notice that has been given either by the
Company or by you.  If the Company does
not exercise this right, on leaving the Company’s employment you will be paid a
sum equivalent to the value of any unused WTR holiday to which you are entitled
after deduction of tax and national insurance contributions but you will not
receive payment in lieu of any untaken non-WTR holiday.

 

13.10       Upon
termination of your employment if you have taken more days holiday then your
accrued entitlement you are required to pay the Company for any excess days
taken 

 

5

 

which sum can
be deducted from your final salary or any other figures then owing to you by
the Company.

 

14           SICKNESS ABSENCE

 

14.1         If you
are unable to attend work for any reason, you must inform your Manager as soon
as possible on the first day of absence and in any event no later than 9.30am
stating the reason for your absence and when you expect to return to work.  If he is not available then you should inform
Human Resources.  Failure to do so may
result in disciplinary action being taken against you.

 

14.2         For any
period of absence of less than seven days, on return to work you are required
to complete the Company’s self-certification form detailing the reason for your
absence. If you are absent for more than seven days you must produce to the
Company a medical certificate to cover the duration of such absence and you
must produce medical certificates to cover any further periods of absence.

 

14.3         Sick Pay
will be paid in accordance with the Statutory Sick Pay Regulations provided
that you comply with the relevant statutory rules regarding notification,
self-certification or the provision of medical certificates where appropriate.

 

14.4         The
Company reserves the right not to pay you any sick pay if you fail to comply
with the relevant statutory rules regarding provision of evidence of
illness.

 

14.5         If you
are absent by reason of sickness, injury or other incapacity, you agree at the
request of the Company to undergo one or more medical examinations performed by
a doctor appointed and paid for by the Company. 
You authorise the Company to have unconditional access to any report
produced as a result of such examination and to any relevant medical
information held on you by your own Doctor.

 

15           CONFIDENTIALITY

 

15.1         You
acknowledge that in the ordinary course of your employment you will be exposed
to information about the Company’s business and the business of Group Companies
and that of the Company’s and the Group Companies’ suppliers and customers
which amounts to a trade secret, is confidential or is commercially sensitive
and which may not be readily available to others engaged in a similar business
to that of the Company or any of the Group Companies or to the general public
and which if disclosed will be liable to cause significant harm to the Company
or such Group Companies.  Such
information (whether recorded in writing, on computer disk or in any other
medium) is referred to as “Confidential Information”.  You therefore agree to accept the
restrictions in this clause.

 

15.2         You will
not either directly or indirectly during this agreement or after its
termination without limit in time for your own purposes or for any purposes
other than those of the Company or any Group Company (for any reason and in any
manner) use or divulge or communicate to any person, firm, company or
organisation except to those officials of the Company or any Group Company
whose province it is to know the same any secret or Confidential Information or
information constituting a trade secret acquired or discovered by you in the
course of your employment with the Company relating to the private affairs or
business of the Company or any Group Company or their suppliers, customers,
management or shareholders.  In
particular this covers software code, price lists, solution provider
agreements, master distributor agreements and employment contracts.

 

6

 

15.3         You are
also required to use your best endeavours to prevent the disclosure of any
information of a confidential nature during your employment.

 

15.4         Breach
of this clause will be considered to constitute gross misconduct, which may
lead to dismissal without notice or payment in lieu of notice where such breach
occurs whilst you are in the Company’s employment.

 

16           INTELLECTUAL PROPERTY

 

16.1         You
shall promptly disclose to the Company any idea or invention created or
developed by you during employment which is actually or potentially relevant to
the business of the Company and/or that of the Group.

 

16.2         You
acknowledge that all trade marks, registered designs, design rights, copyright,
database rights and other intellectual property rights (together, where
registerable with the right to apply for registration of the same, aside from
those described in clause 16.1), created during employment, will, on creation
either during the normal course of employment or by using materials, tools or
knowledge made available through your employment, vest in and be the exclusive
property of the Company or any of the Group Companies which the Company shall
nominate and if required to do so (whether during or after the termination of
your employment), you will execute all instruments and do all things necessary
to vest ownership in the above rights in the Company as sole beneficial
owner.  Where the same does not
automatically vest by Act of Parliament, you will immediately assign the same
to the Company. You irrevocably waive all your rights pursuant to sections 77
to 83 inclusive of the Copyright Designs and Patents Act 1988.

 

16.3         You
appoint the Company to be your attorney in your name and on your behalf to
execute any such instrument or do any such thing necessary for the purpose of
giving to the Company or its nominee, the full benefit of the provisions of
this clause 16 and acknowledge in favour of any third party that a certificate
in writing signed by any director or secretary of the Company, that any
instrument or act falls within the authority conferred shall be conclusive
evidence that such is the case.

 

17           RESTRICTIVE COVENANTS

 

17.1         You
agree that you will comply with the post-termination obligations set out in
Schedule 2 of this agreement.

 

17.2         You will
not, either during your employment or at any time after its termination,
knowingly make any untrue statement in relation to the Company and you should
not from the date your employment is terminated represent yourself wrongfully
as being employed by or connected with the Company.

 

17.3         If you
apply for or are offered a new employment, appointment or engagement before
entering into any related contract, you agree to bring the terms of Schedule 2
of this agreement to the attention of a third party proposing directly or
indirectly to employ, engage or appoint you.

 

18           TERMINATION

 

18.1         Once
your probationary period has been completed satisfactorily, the period of
written notice required to be given by you or by the Company to terminate your
employment shall be one month and the period of notice to which you are statutorily
entitled (i.e. one week’s notice per completed year of service, subject to a
maximum of 12 weeks).

 

7

 

18.2         The
Company shall have the right to suspend you (subject to the continued payment
of your salary and any benefits to which you are entitled), pending any
investigation into any circumstances which may give rise to a right to the
Company to terminate your employment, for such period as reasonably necessary
for the purposes of that investigation.

 

18.3         The
Company reserves the right to dismiss you without notice or payment in lieu of
notice if it has reasonable grounds to believe you are guilty of gross
misconduct or gross negligence or other substantial grounds justifying your
immediate dismissal including any significant breach of your contractual
obligations.

 

18.4         During
any period of notice and provided the Company continues to pay your salary and
all benefits to which you are contractually entitled (or to pay a sum in lieu
of the value of such benefits) until the termination of your employment, you
agree that the Company shall be entitled at its absolute discretion (without
prejudice to clause 3.4):

 

(a)           to
require you not to carry out your duties or to exercise your responsibilities
under this agreement during the remaining period of your notice period (or any
part of such period);

 

(b)          to
require you not to attend your place of work or any other premises of the
Company or any Group Company during the remaining period of your employment (or
any part of such period);

 

(c)           to
require you not to make contact with any employees, agents or customers or
clients of the Company or any Group Company except as directed by the Company
during the remaining period of your notice period (or any part of such period);

 

(d)          to
require you to work from your home and/or to carry out exceptional duties or
special projects outside the normal scope of your duties and responsibilities.

 

18.5         The
Company at its absolute discretion reserves the right to terminate your employment
with immediate effect and may at any time pay you in lieu of any notice of
termination or part thereof (whether notice is given by you or by the
Company).  Such payment will consist of
salary only and you will have no entitlement to bonus or other benefits.

 

19           DELIVERY UP OF DOCUMENTS AND PROPERTY

 

On termination
of this agreement for any reason (or earlier if requested) you will immediately
deliver up to the Company all property (including but not limited to any
Company car and property connected with any car provided under this agreement,
documents and software, credit cards, keys and security passes) belonging to it
or any Group Company in your possession or under your control.  Documents and software include (but are not
limited to) passwords for your computer, correspondence, diaries, address
books, databases, files, reports, minutes, plans, records, documentation or any
other medium for storing information. 
Your obligations under this clause include the return of all copies,
drafts, reproductions, notes, extracts or summaries (however stored or made) of
all documents and software.  The Company
may withhold any monies then owing to you in any respect pending you providing,
if so requested, your written undertaking that you have complied with this
obligation.

 

8

 

20           DISCIPLINARY AND GRIEVANCE PROCEDURES

 

The disciplinary and grievance procedure is outlined in the staff
handbook which is available on the company intranet or from Human Resources.

 

21           DEDUCTIONS

 

For the
purposes of the ERA, you authorise the Company at any time during the
continuance of this agreement and in any event on termination howsoever
arising, to deduct from your remuneration (which for this purpose includes
salary, pay in lieu of notice, commission, bonus, holiday pay and sick pay) all
debts owed by you to the Company or any Group Company, including but without
limitation the balance outstanding of any loans (and interest where
appropriate) advanced by the Company to you, the cost of repairing any damage
or loss to the Company’s property caused by you and any loss suffered by the
Company as a result of any neglect or breach of duty by the you.

 

22           DATA PROTECTION

 

22.1         Your
personal data, including sensitive personal data, will be held by the Company
in its manual and automated filing systems. 
You consent to the processing and disclosure of such data both inside
and, where necessary, outside the European Economic Area for the purposes of;
salary administration, pension administration, health administration, health
insurance/benefits, training and appraisal, including performance and
disciplinary records, equal opportunities monitoring, Company car fleet/leasing
administration, any Company benefit administration, marketing of products and
services to you; and for the purpose of any potential sale of over 50% of the
shares of the Company or Group Company or other change of control or any
potential transfer of the Executive’s employment under TUPE.  Disclosure may include, in the case of sale,
change of control or transfer, disclosure to the potential purchaser or
investor and their advisors.

 

22.2         You
agree to use all reasonable endeavours to keep the Company informed of any
changes to your personal data and to comply with the DPA.

 

23           COLLECTIVE AGREEMENTS

 

There are no
collective agreements with Trade Unions that directly affect the terms and
conditions of your employment.

 

24           RETIREMENT AGE

 

The Company’s
retirement age is 65 for male and female employees and your employment will
terminate automatically and without notice on the last day of the month in
which your 65th birthday falls due. 
No agreement which may be made with you to work beyond that date shall
affect your normal retiring age.

 

25           PREVIOUS CONTRACTS AND WARRANTIES

 

25.1         This
agreement is in substitution for any previous contract of employment or other
discussions or arrangements relating to your employment with the Company and
which are deemed to have been terminated by mutual consent as from the date of
this agreement.

 

9

 

25.2         You
hereby warrant and represent to the Company that you will not, in entering into
this agreement, or carrying out your duties, be in breach of any terms or
conditions of employment whether express or implied or any other obligation
binding upon you with any previous employer.

 

26           CHANGES IN TERMS OF EMPLOYMENT

 

26.1         The
Company reserves the right to make reasonable changes to any of the terms and
conditions of employment contained in this agreement.

 

26.2         You will
be notified of minor changes by way of a general notice to all employees, and
any such changes take effect from the date of notice.

 

27           CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

 

27.1         For the
purposes of the Contracts (Rights of Third Parties) Act 1999 and save as
provided in clause 30.2, none of the terms of this agreement are enforceable by
any third party.

 

27.2         Where a
clause of this agreement confers or purports to confer a benefit, entitlement
or right on a Group Company, such clause shall be enforceable by such Group
Company.

 

28           GOVERNING LAW AND JURISDICTION

 

This agreement
will be governed by and construed in accordance with the law of England and
Wales and the parties submit to the exclusive jurisdiction of the courts of England
and Wales in respect of any dispute arising under this agreement.

 

10

 

SCHEDULE 1

 

BONUS AND COMMISSION PLAN

 

11

 

SCHEDULE 2

 

Post Termination Obligations

 

1              You hereby undertake to the Company on behalf of itself and as agent
for and on behalf of any Group Company that you will not directly or indirectly
and whether alone or in conjunction with or on behalf of any other person and
whether as a principal, shareholder, director, employee, agent, consultant,
partner or otherwise:

 

(a)           at any
time during the period of 6 months from the Termination Date be engaged,
concerned or interested in any business which at any time during the Relevant
Period, was a Relevant Customer of the Company if such engagement, concern or
interest causes or would cause the Relevant Customer to cease or materially to
reduce or alter the terms of its orders or contracts with the Company; or

 

(b)          at any
time during the period of 6 months from the Termination Date canvass, solicit
or approach or cause to be canvassed, solicited or approached any Relevant
Customer for the sale or supply to it of Relevant Products or Services, or
endeavour to do so; or

 

(c)           at any
time during the period of 6 months from the Termination Date deal or contract
with any Relevant Customer in relation to the sale or supply of any Relevant
Products or Services, or endeavour to do so; or

 

(d)          at any
time during the period of 6 months from the Termination Date solicit or induce
or endeavour to solicit or induce any Key Person to leave the employ of the
Company, whether or not such person would commit any breach of his own contract
of employment or engagement by leaving the service of the Company or any
Relevant Group Company; or

 

(e)           at any
time during the period of 6 months from the Termination Date in connection with
any business in or proposing to be in competition with the Company employ,
engage or appoint or in any way cause to be employed, engaged or appointed a Key
Person; or

 

(f)            encourage,
assist or procure any third party to do anything which, if done by you would be
in breach of 1 a). to (f) above.

 

2              Each of the restrictions in clause 1 is intended to be separate and
severable and in the event that any of such restrictions shall be adjudged to
be void or ineffective for whatever reason but would be adjudged to be valid
and effective if part of the wording or range of services or products were
reduced in scope or deleted, the said restrictions shall apply with such
modifications as may be necessary to make them valid and effective.

 

3              If you apply for or are offered a new employment, appointment or
engagement, before entering into any related contract, you hereby agree that
you will bring the terms of this agreement to the attention of a third party
proposing directly or indirectly to employ, appoint or engage you.

 

4              For the purposes of this schedule the following expressions shall
have the following meanings:

 

(g)          “Effective
Date” means the Termination Date provided always that if no duties have been
assigned to you or you have carried out duties other than your normal 

 

12

 

duties or you have been excluded from the
Company’s premises immediately preceding the Termination Date in accordance
with the garden leave clause in this agreement, it means the last date on which
you carried out your normal duties;

 

(h)          “Key
Person” shall mean any person who on the Effective Date is a director or
officer or manager or executive or of the same or similar grade to you employed
by the Company or any Relevant Group Company or any consultant of the Company
or any Group Company with whom you worked or had material dealings or for whose
work you were responsible or managed in the course of your employment under
this agreement at any time during the Relevant Period;

 

(i)            “Relevant
Customer” shall mean any person, firm, company or organisation who or which at
any time during the Relevant Period is or was:

 

(i)            a
client or customer of the Company or any Relevant Group Company for the sale or
supply of Relevant Products or Services; and/or

 

(ii)           in
material negotiations or discussions with the Company or a Relevant Group
Company for the sale or supply of Relevant Products or Services;

 

and in each
case with whom you were directly concerned or connected or any employee who was
under your direct or indirect supervision shall have had personal dealings in
the course of your employment by the Company or of whom you had personal
knowledge in each case during the Relevant Period in the course of your
employment.

 

(j)            “Relevant
Group Company” shall mean any Group Company (other than the Company) for which
you have performed services under this agreement or for which you have had
operational or management responsibility at any time during the Relevant
Period.

 

(k)           “Relevant
Period” shall mean the period of 6 months immediately before the Effective
Date.

 

(l)            “Relevant
Products or Services” shall mean products or services which are of the same
kind as or of a materially similar kind to and competitive with any products or
services

 

(i)            sold
or supplied; or

 

(ii)           manufactured;
or

 

(iii)          distributed;
or

 

(iv)          under
development for manufacture, distribution, sale or supply; or

 

(v)           researched
for manufacture, distribution, sale or supply

 

by the Company or any Relevant Group Company within
the Relevant Period and with which sale or supply you were directly concerned
or connected or of which you had personal knowledge during the Relevant Period
in the course of your employment.

 

13

 

SCHEDULE 3

 

ROLE & RESPONSIBILITIES

 

POSITION:

 

REPORTING TO:

 

RESPONSIBILITIES:

 

14

 

	
  I

  	
   

  	
  [PRINT NAME]
  agree to the terms of this agreement and Schedules 1, 2 and 

  
	
  3 and
  understand that the agreement constitutes the main terms of my contract of
  employment with the Company.

  

 

 

 

	
  Signed

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated

  	
   

  	
   

  

 

15Exhibit
10.5

 

METASTORM,
INC.

NON-INTERFERENCE AND CONFIDENTIALITY AGREEMENT

FOR
EMPLOYEES

 

THIS
NON-INTERFERENCE AND CONFIDENTIALITY AGREEMENT (“Agreement”) is entered into on the         day
of              ,
20     (the “Effective Date”), by and between Metastorm, Inc.,
a Maryland corporation (the “Company”), and Employee (the “Employee”).

 

The Company has extended
an offer of employment to the Employee and the Employee has accepted.  As a condition to the Employee’s employment
with the Company, the Employee hereby agrees as follows:

 

1.                                       Covenants of the Employee.

 

1.1                               Necessity for Covenants. 
The Employee acknowledges that his employment with the Company will
provide him with access to trade secrets of and confidential information
concerning the Company and its Affiliates, and that the Company’s business
interests require a confidential relationship between the Employee and the
Company and the fullest practical protection and confidential treatment of its
trade secrets of and confidential information. 
The Employee also acknowledges that the Company has invested a great
deal of time and money in developing the skills of its existing personnel and
in order for the Company to succeed, it needs to retain its existing personnel.
The Employee further acknowledges that the agreements and covenants contained
in this Agreement  are essential to protect the
business and goodwill of the Company and its Affiliates, and that the Employee’s
agreement to be bound by such covenants are a condition to the Employee’s
continued employment with the Company.

 

1.2                               Definitions.

 

(a)                                  “Affiliate” means any parent or
subsidiary corporation of the Company, as those terms are defined §§424(e) and
(f) of the Code

 

(b)                                     “Confidential or Proprietary
Information”  means:

 

(i)                                  any and all information, formulae,
patterns, compilations, programs, devices, methods, techniques, processes, know
how, plans (marketing, business, strategic or otherwise), arrangements, pricing
and other data (collectively, “Information”) that (A) derives independent
economic value, actual or potential, from not being generally known to the
public or to other Persons who can obtain economic value from its disclosure or
use, and (B) is the subject of efforts by the Company and/or any of its
Affiliates that are reasonable under the circumstances to maintain its secrecy;
or

 

(ii)                               any and all other Information (A) unique
to the Company or any of its Affiliates which has a significant business
purpose and is not known or generally available from sources outside the
Company or its Affiliates or typical of industry 

 

1

 

practice, or (B) the
disclosure of which would have a material adverse effect on the business of the
Company or any of its Affiliates.

 

(c)                                  “Control” or any form thereof,
when used with respect to any Person, means the power to direct the management
and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise.

 

(d)                                 “Misappropriation,” or any form thereof,
means:

 

(i)   the
acquisition of any Trade Secret or Confidential or Proprietary Information by a
Person who knows or has reason to know that the Trade Secret or Confidential or
Proprietary Information was acquired by theft, bribery, misrepresentation,
breach or inducement of a breach of a duty to maintain secrecy, or espionage
through electronic or other means (each, an “Improper Means”); or

 

(ii)   the
disclosure or use of any Trade Secret or Confidential or Proprietary
Information without the express consent of the Company by a Person who (A) used
Improper Means to acquire knowledge of the Trade Secret or Confidential or
Proprietary Information; (B) at the time of disclosure or use, knew or had
reason to know that his or her knowledge of the Trade Secret or Confidential or
Proprietary Information was (1) derived from or through a Person who had
utilized Improper Means to acquire it, (2) acquired under circumstances
giving rise to a duty to maintain its secrecy or limit its use, or (3) derived
from or through a Person who owed a duty to the Company and/or any of its
Affiliates to maintain its secrecy or limit its use; or (C) before a
material change of his or her position, knew or had reason to know that it was
a Trade Secret or Confidential or Proprietary Information and that knowledge of
it had been acquired by accident or mistake.

 

(e)                                  “Person” means any individual,
corporation, partnership, limited liability company, joint venture,
association, business trust, joint-stock company, estate, trust, unincorporated
organization, or government or other agency or political subdivision thereof;
or any other legal or commercial entity.

 

(f)                                    “Specified Trade Secrets” means
the Trade Secrets or Confidential or Proprietary Information that the Employee
is or will be intimately involved in developing or implementing and any
additional Trade Secrets or Confidential or Proprietary Information developed
or implemented by the Employee after the date hereof.

 

(g)                                 “Trade Secrets” means:

 

(i)                                     any and all information; machinery;
inventions; experiments; research; formulae; patterns; compilations; programs;
devices; methods; techniques; processes; software (including, without
limitation, designs, programs and codes)know how; plans (including, without
limitation, marketing, business, strategic or otherwise); arrangements;
pricing, cost, revenue or profit information; and other data (collectively, “Information”)
that (A) derive independent economic value, actual or potential, from not
being generally known to the public or to other Persons who can obtain economic

 

2

 

value from its
disclosure or use, and (B) are the subject of efforts by the Company
and/or any of its Affiliates that are reasonable under the circumstances to
maintain their secrecy;

 

(ii)                                  any and all other Information (A) unique
to the Company or any of its Affiliates which has a significant business
purpose and is not known or generally available from sources outside the
Company or its Affiliates or typical of industry practice, or (B) the
disclosure of which would have a material adverse effect on the business of the
Company or any of its Affiliates; and

 

(iii)                               all other information of the Company that would be
deemed to be “trade secrets” within the meaning of the Uniform Trade Secrets
Act (as promulgated by the United States National Conference of Commissioners
on Uniform State Laws) or such other similar statute of any jurisdiction which
is found to be applicable to this Agreement, its enforcement or its interpretation.

 

1.3                                 Non-Interference with
Company Employees. During the term of the Employee’s employment with the Company and,
for a period of one (1) year after the Employee’s employment hereunder is
terminated (the “Termination Date”), regardless of the reason for such
termination (the “Restricted Period”), the Employee shall not, directly or
indirectly, for himself or on behalf of any other person, firm, corporation or
other entity, whether as a principal, agent, employee, stockholder, partner,
officer, member, director, sole proprietor, or otherwise:

 

(a)                                  solicit, hire, entice, or aid, or
cooperate with others in soliciting, hiring, enticing or aiding any employee of
the Company or any of its Affiliates to leave the employ of, or cease
performing services for, the Company or any of its Affiliates; or

 

(b)                                 otherwise interfere in any way with the
personnel of the Company or any Affiliate.

 

1.4                                 Non-Interference with
Company Customers and Partners.

 

(a)                                  During the term of the Employee’s
employment with the Company, the Employee shall not without the prior written
consent of the Company, directly or indirectly, for himself or on behalf of any
other person, firm, corporation or other entity other than the Company or any
of its Affiliates, whether as a principal, agent, employee, consultant,
stockholder, partner, officer, member, director, sole proprietor, or otherwise:

 

(i)                                 solicit employment with any current
customer or partner of the Company or any of its Affiliates who is located
within fifty (50) miles of a Metastorm office; or

 

(ii)                              engage or cooperate with others in
engaging any current customer or partner of the Company or any of its
Affiliates for the purposes of being involved in a business which competes with
any business of the Company or any of its Affiliates.

 

3

 

(b)                               For a period of six (6) months after
the Employee’s employment with the Company or any of its Affiliates is
terminated (the “Termination Date”), regardless of the reason for such
termination, the Employee shall not, without the prior written consent of the
Company, directly or indirectly, for himself or on behalf of any other person,
firm, corporation or other entity (other than the Company or any of its
Affiliates) whether as a principal, agent, employee, consultant, stockholder,
partner, officer, member, director, sole proprietor or otherwise:

 

(i)                                     solicit employment with any current
customer or partner of the Company or any of its Affiliates who is located
within fifty (50) miles of a Metastorm office; or

 

(ii)                                  engage or cooperate with others in
engaging any current customer or partner of the Company or any of its
Affiliates for the purposes of being involved in a business which competes with
any business of the Company or any of its Affiliates.

 

1.5                                     No Disparaging Comments
Upon Termination.
Upon termination of employment with the Company, the Employee shall refrain
from making any disparaging remarks about the businesses, services, products,
stockholders, officers, directors or other personnel of the Company or any of
its Affiliates.

 

1.6                                     Trade Secrets and
Confidential Information

 

(a)                              The Employee acknowledges, covenants and
agrees that:

 

(i)                                     except as required by law or court order,
the Employee will keep confidential and will not disclose to anyone (other than
the Company or any persons designated by the Company), or publish, utter,
exploit, make use of (or aid others in publishing, uttering, exploiting or
using), or otherwise Misappropriate any Trade Secrets or Confidential or
Proprietary Information at any time;

 

(ii)                                  each of the Specified Trade Secrets are,
and for all purposes hereof shall be, “Trade Secrets,” within the meaning of Section 11-1201
of the Maryland Uniform Trade Secret Act (as codified in the Annotated Code of
Maryland, Commercial Law, § 11-1201 et.seq.)), of the Company and its
Affiliates;

 

(iii)                               the Employee is and will be intimately
involved in the development and/or implementation of the Specified Trade
Secrets;

 

(iv)                              in the event the Employee breaches the
covenants contained in this Section 1.6 with respect to any Trade Secrets
or Confidential or Proprietary Information, such breach shall be deemed to be a
Misappropriation of such Trade Secrets or Confidential or Proprietary
Information; and

 

(v)                                 any Misappropriation of the Specified
Trade Secrets or any other Trade Secrets or Confidential or Proprietary
Information will result in immediate and irreparable harm to the Company.

 

4

 

(b)                                 The Employee’s obligations hereunder
shall continue both during the term of the Employee’s employment and
thereafter, regardless of the reason for the termination of his employment.

 

(c)                                  Notwithstanding anything herein to the
contrary, the obligations of secrecy and confidentiality set forth herein shall
not apply to any Information which is now generally publicly known or which
subsequently becomes generally publicly known other than as a direct or
indirect result of the breach of this Agreement by the Employee, or which is
required by law or order of any court to be disclosed.

 

1.7                                 Property of the Company. 
All drawings, memoranda, notes, lists, records and other documents or
papers (and all copies thereof), including but not limited to, such items
stored in computer memories, on microfiche or by any other means, made or
compiled by or on behalf of the Employee, or made available to the Employee or
in the Employee’s possession concerning the in any way relating to the conduct
of the Business or the business of any Affiliate, customer, or supplier, are
and shall be the property of the Company and shall be delivered to the Company
promptly upon the termination of the Employee’s employment with the Company or
at any other time on request.

 

1.8                                 Employee’s Ideas, Etc. 
All inventions, ideas, prototypes, discoveries, improvements,
innovations and the like (“Inventions”) and all works of original authorship or
images that are fixed in any tangible medium of expression and all copies
thereof (“Works”) which are designed, created or developed by Employee, solely
or in conjunction with others, in the course of performance of the Employee’s
duties which relate to the Business, shall be made or conceived for the
exclusive benefit of and shall be the exclusive property of the Company.  The Employee shall immediately notify the
Company upon the design, creation or development of all Inventions and
Works.  At any time thereafter, the
Employee, at the request and expense of the Company, shall execute and deliver
to the Company all documents or instruments which may be necessary to secure or
perfect the Company’s title to or interest in the Inventions and Works,
including but not limited to applications for letters of patent, and
extensions, continuations or reissues thereof, applications for copyrights and
documents or instruments of assignment or transfer.  All Works are agreed and stipulated to be “works
made for hire,” as that term is used and understood within the Copyright Act of
1976, as amended.  To the extent any
Works are not deemed to be works made for hire as defined above, and to the
extent that title to or ownership of any Invention or Work and all other rights
therein are not otherwise vested exclusively in the Company, the Employee
shall, without further consideration but at the expense of the Company, assign
and transfer to the Company the Employee’s entire right, title and interest
(including copyrights and patents) in or to those Inventions and Works.

 

1.9                                 Rights and Remedies Upon
Breach.
The Employee acknowledges and agrees that if the Employee breaches any of the
provisions of Sections 1.3 through 1.8 the Company will suffer immediate and
irreparable harm for which monetary damages alone will not be a sufficient
remedy, and that, in addition to all other remedies that the Company may have
(including, without limitation, the recovery of damages pursuant to Section 11-1203
of the Maryland Uniform Trade Secret Act (as codified in the Annotated Code of
Maryland, Commercial Law, § 11-1201 et.seq.)), the Company shall be
entitled to seek injunctive relief 

 

5

 

(including, without
limitation, an injunction pursuant to Section 11-1202 of the Maryland
Uniform Trade Secret Act), specific performance or any other form of equitable
relief to remedy a breach or threatened breach of this Agreement (including,
without limitation, any actual or threatened Misappropriation) by the
Employee  and to enforce the provisions
of this Agreement, and the Employee hereby waives any and all defenses he may
have on the grounds of lack of jurisdiction or competence of a court to grant
such an injunction or other equitable relief and to the enforceability of this
Agreement.  The existence of this right
shall not preclude or otherwise limit the applicability or exercise of any
other rights and remedies which the Company may have at law or in equity.

 

1.10                           Review. 
The Employee has received or been given the opportunity to review the
provisions of this Agreement, and the meaning and effect of each provision,
with independent legal counsel of the Employee’s choosing.

 

1.11                           Interpretation;
Severability.

 

(a)                                The Employee has carefully considered the
possible effects on the Employee of the covenants not to compete, the
confidentiality provisions, and the other obligations contained in this
Agreement, and the Employee recognizes that the Company has made every effort
to limit the restrictions placed upon the Employee to those that are reasonable
and necessary to protect the Company’s legitimate business interests.

 

(b)                               The Employee acknowledges and agrees that
the restrictive covenants set forth in this Agreement are reasonable and
necessary in order to protect the Company’s valid business interests.  It is the intention of the parties hereto
that the covenants, provisions and agreements contained herein shall be
enforceable to the fullest extent allowed by law.  If any covenant, provision, or agreement
contained herein is found by a court having jurisdiction to be unreasonable in
duration, scope or character of restrictions, or otherwise to be unenforceable,
such covenant, provision or agreement shall not be rendered unenforceable
thereby, but rather the duration, scope or character of restrictions of such
covenant, provision or agreement shall be deemed reduced or modified with
retroactive effect to render such covenant, provision or agreement reasonable
or otherwise enforceable (as the case may be), and such covenant, provision or
agreement shall be enforced as modified. 
If the court having jurisdiction will not review the covenant, provision
or agreement, the parties hereto shall mutually agree to a revision having an
effect as close as permitted by applicable law to the provision declared
unenforceable.  Moreover, to the extent
that any provision is declared unenforceable, the Company shall have all rights
under statute or common law to enforce its rights with respect to (i) any
trade secrets or confidential or proprietary information, or (ii) any
unfair competition by the Employee.  The
parties hereto agree that if a court having jurisdiction determines, despite
the express intent of the parties hereto, that any portion of the covenants,
provisions or agreements contained herein are not enforceable, the remaining
covenants, provisions and agreements herein shall be valid and enforceable.

 

6

 

2.                                     Dispute Resolution.

 

2.1                                 Costs of Litigation. 
If either party files suit to enforce its rights under this Agreement,
the prevailing party shall be entitled to recover from the other party all
expenses incurred by it in preparing for and in trying the case, including, but
not limited to, investigative costs, court costs and reasonable attorneys’
fees.

 

2.2                                 Consent to Jurisdiction. 
The parties submit to the jurisdiction and venue of the courts of the
State of Maryland

 

2.3                                 No Jury Trial. 
NEITHER PARTY SHALL ELECT A TRIAL BY JURY IN ANY ACTION, SUIT,
PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS
AGREEMENT.

 

3.                                     Other Provisions.

 

3.1                                 Notices. 
Any notice or other communication required or which may be given
hereunder shall be in writing and shall be delivered personally, telegraphed,
telexed, sent by facsimile transmission or sent by certified, registered or
express mail, postage paid, and shall be deemed given when so delivered
personally, telegraphed, telexed or sent by facsimile transmission or, if
mailed, four days after the date of mailing, as follows:

 

(i)                                     if to the Company, to:

Metastorm, Inc.

500
East Pratt St. #1250

Baltimore,
MD 21202

 

(ii)                                  if to the Employee, to:

 

Any party may by notice
given in accordance with this Section to the other party designate another
address or person for receipt of notices hereunder.

 

3.2                               Entire Agreement. 
This Agreement contains the entire agreement between the parties with
respect to the subject matter hereof and supersedes all prior agreements and
understandings, written or oral, with respect thereto.

 

3.3                               Waivers and Amendments. 
This Agreement may be amended, modified, superseded, canceled, renewed
or extended, and the terms and conditions hereof may be waived, only by a
written instrument signed by the Employee and a duly authorized officer of the
Company (each, in such capacity, a party) or, in the case of a waiver, by the
party waiving compliance.  No delay on
the part of any party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof, nor shall any waiver on the part of any
party of any right, power or privilege hereunder, nor any single or partial
exercise of any right, power or 

 

7

 

privilege hereunder,
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege hereunder.

 

3.4                                 Governing Law. 
This Agreement has been negotiated and is to be performed in the United
States of America, State of Maryland and shall be governed and construed in
accordance with the laws of the State of Maryland applicable to agreements made
and to be performed entirely within such State.

 

3.5                                 Counterparts. 
This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original but all of which together shall constitute
one and the same instrument.

 

3.6                                 Word Forms. 
Whenever used herein, the singular shall include the plural and the
plural shall include the singular.  The
use of any gender or tense shall include all genders and tenses.

 

3.7                                 Headings. 
The Section headings have been included for convenience only, are
not part of this Agreement, and are not to be used to interpret any provision
hereof.

 

3.8                                 Binding Effect and Benefit. 
This Agreement shall be binding upon and inure to the benefit of the
parties, their successors, heirs, personal representatives and other legal
representatives.  This Agreement may be
assigned by the Company to any entity which buys substantially all of the
Company’s assets.  However, the Employee
may not assign this Agreement without the prior written consent of the Company.

 

IN WITNESS WHEREOF, the
parties, intending to be legally bound, have executed this Agreement or caused
it to be executed and attested by their duly authorized officers as a document
under seal on the day and year first above written.

 

METASTORM,
INC.

 

 

	
   

  	
   

  	
   

  
	
  Christopher S.
  Desautelle, CFO

  	
   

  	
  Robert J.
  Farrell, CEO/President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EMPLOYEE:

  	
   

  	
  ATTEST/WITNESS:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Employee

  	
   

  	
   

  

 

8

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