Document:

exv10w7

 

Exhibit 10.7

Universal Biosensors Inc.

Employee Option Plan

Plan Rules

 

 

	 		 	PiperAlderman 

Universal Biosensors Inc.

Employee Option Plan

Plan Rules

	1.	 	Definitions and Interpretation
	 
	1.1	 	In these rules, unless the contrary intention appears, the following terms have the
following meanings:
	 
	 	 	Board means the board of directors of the Corporation or any committee of that board;
	 
	 	 	Business Day means any day except Saturday or Sunday or other public holiday in the State of
Victoria, Australia;
	 
	 	 	Corporation means Universal Biosensors Inc.;
	 
	 	 	Eligible Person means any person considered by the Board to be employed by the Corporation
or any other entity in the Group on a permanent basis (whether full time, part time or on a
long term casual basis) and includes all executive and non-executive directors;
	 
	 	 	Exchange Act means the Securities Exchange Act 1934 as amended from time to time;
	 
	 	 	Exercise Price means the exercise price of an option determined under rule 6 as adjusted
from time to time, if applicable, under rule 13;
	 
	 	 	Expiry Date means, subject to rule 7, the date on which an Option lapses under rules 3.4(a)
and 7.1;
	 
	 	 	Group means the group of related or associated companies of which the Corporation is the
holding company and includes any entity designated by the Board to be a member of the Group
(even though not a subsidiary of the Corporation);
	 
	 	 	Investor Rights Agreement means an investor rights agreement or stockholders’ agreement
entered into between the Corporation and the shareholders of the Corporation (if any).
	 
	 	 	Listed means that the Corporation is admitted to the official list of, or otherwise quoted
on, a securities exchange;
	 
	 	 	Listing Rules means the listing rules of a securities exchange on which the Corporation is
Listed;
	 
	 	 	Liquidity Event means:

	 	(a)	 	the date on which an agreement for the sale of the share capital of the
Corporation is entered into or the acquisition by one of the shareholders of all of the
remaining Shares, other than in the context of a solvent reconstruction where
underlying beneficial ownership remains substantially unchanged;

page 1

 

	 		 	PiperAlderman 

	 	(b)	 	the date on which an agreement for the disposal by whatever means (including
without limitation by sale, transfer, licence, declaration of trust or otherwise) of
the whole or substantially the whole of the property, business or undertaking of the
Corporation is entered into; or
	 
	 	(c)	 	reorganisation, merger or consolidation of the Corporation with another entity
in which the Corporation will not survive.

	 	 	Option means an option to purchase Shares in the Corporation and granted under this Plan;
	 
	 	 	Participant means a person who holds one or more Options or Shares issued on exercise of an
Option;
	 
	 	 	Plan means this Stock Option Plan;
	 
	 	 	Securities Act means the Securities Act of 1933 as amended from time to time; and
	 
	 	 	Share means a common stock in the capital of the Corporation.
	 
	1.2	 	In these rules, except where the context otherwise requires:

	 	(a)	 	the singular includes the plural and vice versa;
	 
	 	(b)	 	a reference to the whole or part of any legislation includes any amendment,
consolidation or re-enactment of the legislation or any legislative provision
substituted for the legislation; and
	 
	 	(c)	 	headings are inserted for convenience only and do not affect construction or
interpretation of these rules.

	2.	 	Term of the Plan
	 
	2.1	 	This Plan takes effect on and from the date determined by the Board. This Plan takes
effect from 31 December 2003.
	 
	2.2	 	Within 12 months from the date of adoption, this Plan will be approved by shareholders of the
Corporation required under applicable state and federal law.
	 
	3.	 	Grant of Options
	 
	3.1	 	Subject to rule 3.3, the Board may, in its discretion and from time to time, grant to
Eligible Persons any number of Options on such terms as they may determine in accordance with
this Plan.
	 
	3.2	 	Options must be granted on the terms of this Plan and each Participant will be taken to have
agreed to be bound by the terms of this Plan on the grant of Options to that Participant.
	 
	3.3	 	If and to the extent applicable at any time, the grant of Options under this Plan generally
or to particular Eligible Persons is subject to receipt of any necessary shareholder or other
approvals under:

	 	(a)	 	the Securities Act or any other law applicable to the Corporation; and
	 
	 	(b)	 	if the Corporation is Listed, the applicable Listing Rules.

page 2

 

	 		 	PiperAlderman 

	3.4	 	Subject to any limitations under the Securities Act or any other law applicable to the
Corporation, when granting Options to an Eligible Person the Board:

	 	(a)	 	must determine the date on which the Options are to lapse (if not exercised or
lapsed under rule 7 before that date);
	 
	 	(b)	 	may determine the dates on which the Options vest in the Participant and,
subject to rule 8, thereby become exercisable by the Participant; and
	 
	 	(c)	 	may determine any other conditions which must be satisfied before the Options
vest in the Participant or are otherwise exercisable by the Participant.

	3.5	 	If at the time of issue of the Option, an Investor Rights Agreement has been entered into by
shareholders of the Corporation, the Option certificates will bear a legend that the Shares
issued on exercise of the Option will be held subject to the terms of the Investor Rights
Agreement of the Corporation.
	 
	4.	 	Maximum Number of Options
	 
	4.1	 	The maximum number of Options that may be granted to Participants under this Plan from
time to time is limited to such number as:

	 	(a)	 	if the Corporation has an Investor Rights Agreement by-laws or certificate of
incorporation, is consistent with that Investor Rights Agreement, by-laws or
certificate of incorporation (as applicable);
	 
	 	(b)	 	if the Corporation is Listed, is consistent with any applicable Listing Rules;
and
	 
	 	(c)	 	in any event is determined by the Board from time to time in its discretion
having regard to regulatory constraints under the Securities Act or any other law
applicable to the Corporation.

	4.2	 	Any unpurchased Shares that are subject to an Option that terminates for any reason other
than exercise shall, unless the Plan is terminated, become available for future grant under
this Plan.
	 
	4.3	 	The Corporation will at all times reserve for issuance a number of its authorised but
unissued Shares equal to the number of Shares issuable under this Plan.
	 
	5.	 	Notice of Grant
	 
	5.1	 	When Options are granted to an Eligible Person, the Eligible Person (now a Participant) is
to be notified by the Corporation of the grant. The notice is to specify:

	 	(a)	 	the number of Options granted;
	 
	 	(b)	 	the Exercise Price of the Options granted;
	 
	 	(c)	 	the date determined by the Board as the Expiry Date under rule 3.4(a);
	 
	 	(d)	 	if applicable, the dates on which the Options vest as determined by the Board
under rule 3.4(b); and

page 3

 

	 		 	PiperAlderman 

	 	(e)	 	if applicable, any other conditions attaching to the Options as determined by
the Board under rule 3.4(c).

	5.2	 	Subject to rule 5.3, the term of an Option commences on the date specified by the Board in
its resolution to grant the Option.
	 
	5.3	 	An Eligible Person may, within ten Business Days after receipt of a notice of grant under
rule 5.1, by notice to the Corporation decline to accept the Options referred to in the notice
of grant. If notice is received from an Eligible Person under this rule, the Options will not
be granted to that person. If no notice is received under this rule, the Options are deemed
granted to that person.
	 
	6.	 	Exercise Price

The Exercise Price of each Option is to be such price as determined by the Board in its
discretion when granting the Option.

	7.	 	Expiry Date
	 
	7.1	 	Subject to rules 7.2 and 7.3, Options granted to a Participant lapse at 5:00 pm Sydney
time on the date determined by the Board under rule 3.4(a) (unless exercised prior to that
date).
	 
	7.2	 	If a Participant ceases to be an Eligible Person (other than through the death or permanent
disability of the Participant):

	 	(a)	 	all Options granted to a Participant which have not vested automatically lapse;
and
	 
	 	(b)	 	all Options granted to the Participant which have vested lapse on the expiry of
90 days (or such longer period as determined by the Board) after the date on which the
Participant ceases to be an employee, unless the employee ceases to be an employee as a
result of termination for dishonesty, fraud or cause (as defined under applicable law)
in which case the Options lapse immediately on ceasing to be an Eligible Person.

	7.3	 	On the death or permanent disability of a Participant:

	 	(a)	 	all Options granted to a Participant which have not vested automatically lapse;
and
	 
	 	(b)	 	notwithstanding anything to the contrary in this Plan, the Options which have
already vested in the Optionholder prior to death or permanent disability, lapse on the
expiry of 12 months after the date of the Participant’s death or disability (except to
the extent that the executor or beneficiaries of that Optionholder’s estate exercise
any or all of those Options).

	8.	 	Option Exercise
	 
	8.1	 	If an Option is subject to vesting conditions pursuant to rules 3.4(b) (ie time based
vesting hurdles) and 3.4(c) (ie other vesting hurdles), it may only be exercised if it has
vested and before it expires. While the Corporation is not Listed, the Board may in its
absolute discretion accelerate the vesting of Options of any Optionholder.

page 4

 

	 		 	PiperAlderman 

	8.2	 	Subject to rule 8.1, an Option may be exercised by a Participant at such time(s) as the Board
determines at the time of grant.
	 
	8.3	 	When exercised, each Option held by a Participant entitles the Participant to subscribe for
and to be issued one Share (credited as fully paid). The subscription price for the Share is
equal to and satisfied by payment of the Exercise Price of the Option.
	 
	8.4	 	No Option may be exercised if the issuance of Shares upon exercise or the method of payment
of consideration for such Shares would constitute a violation of any applicable securities or
other law or regulation. Unless the Shares are registered under the Securities Act and any
applicable state securities law, as a condition to exercising an Option, the Participant shall
provide the Corporation with such written assurances as the Corporation deems appropriate for
the Option grant and exercise to qualify for exemption from registration. The assurances may
include, among others, a representation that the Participant intends to hold the Shares for
investment and not for distribution to the public. The Corporation has no obligation to
register the Options or Shares under the Securities Act or any other law or to otherwise take
any actions or incur any expenses to comply with an applicable securities or other law or
regulation.
	 
	8.5	 	If, at the time a Participant purports to exercises any Option, there is an Investor Rights
Agreement, the Participant must also execute the Investor Rights Agreement or, if the Board so
determines, a deed of accession to such Investor Rights Agreement in form and substance
satisfactory to the Board (pursuant to which the Participant will agree to be bound by the
Investor Rights Agreement). Shares will not be issued to any Participant on exercise of an
Option unless this rule is complied with.
	 
	9.	 	Manner of Exercise
	 
	9.1	 	A Participant may exercise Options by lodging with the Corporation a notice of exercise in
a form approved or accepted by the Board accompanied by:

	 	(a)	 	payment of the aggregate Exercise Price for the Options the subject of the
notice;
	 
	 	(b)	 	the Participant’s option certificate;
	 
	 	(c)	 	a duly executed deed of accession (if required); and
	 
	 	(d)	 	the written assurances required under item 8.4 (if required).

	9.2	 	On exercise of any Options by a Participant, the Corporation must issue Shares in accordance
with this Plan. The Corporation must comply with the requirements of all applicable laws and,
if the Corporation is Listed, the Listing Rules in connection with the manner and timing of
issue of the Shares. The Corporation is not obliged to issue Shares unless it has received
cleared funds on account of the exercise price of Options.
	 
	9.3	 	Shares issued on exercise of Options rank equally with all existing Shares from the date of
the issue of such Shares.
	 
	9.4	 	Shares may only be issued in the name of the Participant exercising the Option unless the
Board otherwise agrees.

page 5

 

	 		 	PiperAlderman 

	10.	 	Transfer
	 
	10.1	 	The rights and entitlements of a Participant to Options may not be transferred, assigned,
encumbered or otherwise disposed of by the Participant except by transmission on death of the
Participant or with the written agreement of the Board (which may be given or withheld in its
discretion). Each Option certificate will bear a legend indicating that the Options may not
be transferred otherwise than in accordance with the Plan and with all applicable laws.
	 
	10.2	 	While the Corporation is not Listed, the Shares issued on exercise of Options may not be
transferred, assigned, encumbered or otherwise disposed of by the Participant except by
transmission on death of the Participant or with the written agreement of the Board (which may
be given or withheld in its discretion) and in accordance with Investor Rights Agreement and
applicable laws.
	 
	10.3	 	If a transfer of Shares is restricted under the Plan or any other applicable law, each
certificate representing the Shares shall bear a legend reflecting that the Shares are so
restricted. Each certificate representing the Shares will bear one of the following legends as
determined by the Board at the time of exercise:

	 	(a)	 	“The shares represented by this certificate have been issued in reliance on
regulation S promulgated under US Securities Act of 1933 (“Securities Act”) and may not
be transferred except in accordance with regulation S, pursuant to registration under
the Securities Act or pursuant to an available exemption from registration, and the
holder agrees not to engage in hedging transactions with regard to such securities
unless in compliance with the Securities Act”; or
	 
	 	(b)	 	“The shares represented by this certificate have been issued pursuant to an
exemption under US Securities Act of 1933 (“Securities Act”) and cannot be transferred
except pursuant to a registration under the Securities Act or pursuant to an available
exemption from registration”.

	 	 	The Corporation shall not be liable for any refusal to transfer the Shares on the books of
the Corporation unless the transfer complies with all terms and conditions of any
restrictions imposed on the Shares.
	 
	10.4	 	Each Participant will, upon the request of the Corporation or the underwriters managing any
public offering of the Corporation’s securities, refrain from selling or disposing of any
securities of the Corporation without the prior written consent of the Corporation and the
underwriters, as the case may be, for such period of time (not to exceed 180 days) after the
effective date of the registration requested by the managing underwriters and subject to all
restrictions as the Corporation or the underwriters may specify. The Participant and the
Corporation shall cause any certificates representing the Shares to bear a legend in
substantially as follows:
	 
	 	 	“Sale, transfer, or hypothecation of the shares represented by this certificate is
prohibited for a period of time following a public offering of the stock of the Corporation
pursuant to the Stock Option Plan of the Corporation.”
	 
	 	 	The legend shall be removed upon any resale of the Shares to the public in an offering
registered with the Securities Exchange Commission or pursuant to Rule 144.

page 6

 

	 		 	PiperAlderman 

	11.	 	Quotation of Options and Shares
	 
	11.1	 	The Options will not be quoted on any securities exchange on which the Corporation is
Listed.
	 
	11.2	 	If the Corporation is Listed at the time of exercise of any Options, the Corporation will
make application to the relevant securities exchange for quotation of the Shares issued on
exercise of the Options. Any such application is to be made in accordance with the
requirements of the applicable Listing Rules.
	 
	11.3	 	The grant of each Option is subject to a condition that if the Corporation becomes Listed,
the Participant or former Participant must sign any restriction (escrow) agreement required by
the relevant securities exchange, in respect of the Option or any Shares issued on exercise of
the Option.
	 
	12.	 	Participation in New Issues
	 
	 	 	A Participant may only participate in issues of securities by the Corporation if the
Option has been exercised and a Share allotted in respect of the exercise of that Option
before the books closing date for determining entitlements to the security issue.
	 
	13.	 	Variations of Capital
	 
	13.1	 	Protection Against Adjustments
	 
	 	 	In the event of:

	 	(a)	 	a consolidation, subdivision or similar reconstruction of the issued capital of
the Corporation; or
	 
	 	(b)	 	the declaration of a dividend on the common stock of the Corporation payable in
common stock or securities convertible into common stock,

	 	 	the number of Shares to which a Participant is entitled on exercise of an Option will be
adjusted so as to maintain the proportionate interest of the Participant and the Exercise
Price will be adjusted to that the total amount payable on an exercise of all Options by
each Participant will not alter.
	 
	13.2	 	Return of Capital
	 
	 	 	If, prior to the exercise of an Option by a Participant, the Corporation makes a return of
capital to holders of Shares generally, the Exercise Price will be reduced by the amount of
the capital returned in respect of each Share.
	 
	13.3	 	Cumulative Adjustments
	 
	 	 	The terms of this rule 13 relating to reconstructions, stock dividends and returns of
capital may be applied on more than one occasion such that their effects may be cumulative.
It is intended that the adjustments they progressively effect will be such as to reflect in
relation to the Shares subject to Options, the adjustments which on the occasions in
question are progressively effected in relation to Shares already on issue.

page 7

 

	 		 	PiperAlderman 

	13.4	 	Liquidation
	 
	 	 	All outstanding Options shall terminate on the record date for the proposed final
distribution of proceeds of the complete liquidation of the Corporation’s assets. The
Corporation shall give the holder of each outstanding exercisable Option notice of any
intended distribution of liquidation proceeds, whether final or interim, at least ten
Business Days before the record date unless the Corporation determines in good faith that
the fair market value of proceeds distributable with respect to share of common stock upon
complete liquidation of the Corporation’s assets is likely to be less than the exercise
price of an Option.
	 
	13.5	 	Notice of Adjustments
	 
	 	 	Whenever the number of Shares subject to an Option or the Exercise Price is adjusted in
accordance with these rules, the Corporation will give notice of the adjustment to the
Participant holding the Option.
	 
	14.	 	Liquidity Events

	 	(a)	 	On the occurrence of a Liquidity Event, all Options which have not yet vested,
immediately vest and become exercisable ten Business Days preceding the Liquidity
Event.
	 
	 	(b)	 	The Corporation shall give each holder of an outstanding exercisable Option 14
Business Days prior written notice of any Liquidity Event except:

	 	(1)	 	in those cases where the Options will continue to be
exercisable for securities in the same amount (subject to adjustment to the
exercise prices) and of the same class as the securities into which the
outstanding common stock of the Corporation will be converted as a result of
the Liquidity Event; or
	 
	 	(2)	 	in those cases where the fair market value of the consideration
distributable with respect to each share of common stock is likely to be less
than the exercise price of the Option.

	 	(c)	 	The Corporation may cancel any outstanding exercisable Option that is not
exercised within five Business Days before a Liquidity Event, without prior notice, by
paying the Participant an amount equal to the fair market value of the consideration
that the Participant would receive in exchange for the Shares underlying the Option,
less the exercise price of the Option.
	 
	 	(d)	 	All outstanding Options shall terminate upon the closing of a Liquidity Event
unless the successor entity assumes the Options or substitutes options to purchase
substantially equivalent securities of the successor or its parent or subsidiary.

	15.	 	Plan and Option Amendments
	 
	15.1	 	The rights attaching to the Options may be amended by the Board subject to receipt of any
necessary shareholder or other approval under:

	 	(a)	 	the Securities Act or any other law applicable to the Corporation; and
	 
	 	(b)	 	if the Corporation is Listed, the applicable Listing Rules.

page 8

 

	 		 	PiperAlderman 

	15.2	 	If the Corporation is Listed and the provisions of this Plan or the terms of issue of the
Options are inconsistent with the Listing Rules, then the Listing Rules prevail to the extent
of any inconsistency and the terms of the Options will be deemed modified accordingly without
further action by the Corporation, the Board or the holder of the Option being necessary.
	 
	15.3	 	Without limiting the generality of rule 15.2, it is a term of each Option that, if the
Corporation is Listed, the rights of the Participant who holds the Option are deemed modified
from time to time as necessary to ensure the terms of the Options comply with the Listing
Rules generally and in particular (but without limitation) as those rules apply to
reorganisations of capital at the time of any re-organisation of the Corporation’s capital, in
each case despite any inconsistent provision in the terms of this Plan.
	 
	15.4	 	Subject to rules 15.1 to 15.3 (inclusive) and, if the Corporation is Listed, to receipt of
any necessary approvals under the Listing Rules, the terms of this Plan may be amended by the
Board but without prejudice to the existing or accrued rights of Participants before any
amendments are made.
	 
	15.5	 	If the Corporation becomes subject to section 16 of the Exchange Act, this Plan shall be
administered in accordance with rule 16b-3 promulgated under the Exchange Act, or any
successor rule. Unless the Board determines otherwise in a specific case, Options granted to
persons subject to section 16(b) of the Exchange Act must comply with rule 16b-3 of the
Exchange Act and shall contain such additional conditions or restrictions as may be required
thereunder to qualify for the maximum exemption from section 16 with respect to Plan
transactions. In addition to the extent necessary and desirable to comply with rule 16b-3 of
the Exchange Act or with section 422 of the Internal Revenue Code (or any other applicable law
or regulation, including the requirements of an established stock exchange), the Corporation
shall obtain shareholder approval of any Plan amendment in such a manner and to such a degree
as required.
	 
	15.6	 	The Board may suspend the exercisability of outstanding Options from time to time if
appropriate to satisfy an exemption from registration under the Securities Act (section 4(2)
of regulation S or rule 504, 505, 506 or 701 under the Securities Act), any state securities
law, or as otherwise necessary to comply with any other applicable laws, including securities
laws, accounting procedure, or for other good reason as the Board may determine.
	 
	16.	 	Administration of the Plan
	 
	16.1	 	This Plan will be administered by the Board. The Board will have power to:

	 	(a)	 	delegate to any persons for such period and on such terms as it sees fit, the
exercise of any of its powers or discretions under this Plan;
	 
	 	(b)	 	determine appropriate procedures for administration of this Plan consistent
with these rules, including approving the form and content of forms and notices to be
issued under this Plan; and
	 
	 	(c)	 	resolve conclusively all questions of fact, construction, interpretation or
ambiguity in connection with the terms or operation of this Plan and the terms of
Options granted under this Plan.

page 9

 

	 		 	PiperAlderman 

	17.	 	Notices
	 
	17.1	 	Service of all documents required by this Plan shall be deemed to be affected if the
Corporation sends the document by post to the last address or facsimile number of the
Participant known to the Corporation.
	 
	17.2	 	A communication sent by post is deemed to be received on the third Business Day after
posting. A communication sent by facsimile is deemed to be received at the time shown on the
sender’s transmission report, if it shows that the transmission was successful.
	 
	18.	 	Termination of the Plan
	 
	 	 	This Plan may be terminated at any time by resolution of the Board. Termination of
this Plan will be without prejudice to the rights of Participants in respect of Options
outstanding at the date of termination.
	 
	19.	 	Governing Law
	 
	 	 	The terms of this Plan are governed by the laws of Delaware, United States of America.

page 10exv10w8

 

Exhibit 10.8

Employment Agreement

Universal Biosensors Pty Ltd

ACN 098 234 309

Salesh Balak

 

 

Contents

	 	 	 	 	 	 	 
	1.

	 	Definitions and Interpretation
	 	 	3	 
	2.

	 	Interpretation
	 	 	4	 
	3.

	 	Appointment
	 	 	4	 
	4.

	 	Term
	 	 	5	 
	5.

	 	Position and Duties
	 	 	5	 
	6.

	 	Remuneration and Benefits
	 	 	6	 
	7.

	 	Confidential Information
	 	 	7	 
	8.

	 	Cessation of Employment Obligations
	 	 	8	 
	9.

	 	Intellectual Property
	 	 	8	 
	10.

	 	Termination
	 	 	9	 
	11.

	 	Non Competition
	 	 	11	 
	12.

	 	Notice
	 	 	12	 
	13.

	 	No Assignment
	 	 	12	 
	14.

	 	Governing Law
	 	 	12	 
	15.

	 	Counterparts
	 	 	12	 

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

Employment Agreement

Parties

	1.	 	Universal Biosensors Pty Ltd ACN 098 234 309 of 103 Ricketts Road Mount Waverley, Victoria
3149, Australia (Company).

	2.	 	Salesh Balak of 46 Canterbury Avenue, Sunbury Victoria 3429 (Employee).

Recital

	A.	 	The Employee commenced employment with the Company on the Commencement Date. The Employee
was previously employed pursuant to an employment agreement which has expired.

	B.	 	This agreement sets out the terms and conditions on which the Company has agreed to continue
to employ the Employee.

Operative clauses

	1.	 	Definitions and Interpretation
	 
	 	 	In this agreement, unless the context other wise requires:
	 
	 	 	Business means the research and development activities of the Company;
	 
	 	 	Business Day means any day on which trading banks are open for business in Melbourne,
Australia (other than a Saturday or a Sunday);
	 
	 	 	Confidential Information means any information obtained by the Employee in the course of the
Employment whether in written, electronic or oral form and including:

	 	a.	 	all commercial information about the Company and the Business and persons with
whom the Company and Business deal from time to time;
	 
	 	b.	 	all commercial information about the business, financial plans and strategy of
the Company including without limitation any mining or processing lease arrangements and
sales and marketing information;
	 
	 	c.	 	all trade secrets, know-how and other processes of the Business; and
	 
	 	d.	 	any information marked “confidential” or which the Company inform the Employee is
confidential or a trade secret;

     but excluding:

	 	e.	 	information in the public domain at the date of this agreement;

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

	 	f.	 	information which comes into the public domain after the date of this agreement
otherwise than by breach of the Employee’s obligation of confidentiality contained in
this agreement; and
	 
	 	g.	 	information which the Employee lawfully possessed before obtaining it in the course
of the Employment;

EBIT means earnings before interest and tax;

Effective Date means the date set out in item 2 of the schedule to this agreement

Employment means the employment of the Employee by the Company commencing on the Commencement Date.

	2.	 	Interpretation

In this agreement, unless the context otherwise requires:

	 	2.1	 	headings do not affect interpretation;
	 
	 	2.2	 	singular includes plural and plural includes singular;
	 
	 	2.3	 	words of one gender include any gender;
	 
	 	2.4	 	reference to a person includes a corporation, joint venture, association,
government body, firm and any other entity;
	 
	 	2.5	 	reference to a party includes that party’s personal representatives, successors
and permitted assigns;
	 
	 	2.6	 	a provision must be read down to the extent necessary to be valid. If it cannot
be read down to the extent, it must be severed;
	 
	 	2.7	 	another grammatical form of a defined expression has a corresponding meaning;
	 
	 	2.8	 	“$” or “dollars” is a reference to the lawful currency of Australia.

	3.	 	Appointment

	 	3.1	 	Employment
	 
	 	 	 	The Company continues to employ the Employee on the terms of this agreement.

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

	 	3.2	 	Location
	 
	 	 	 	The Employee will be based in Victoria, Australia unless otherwise agreed by the
Company and the Employee. The Employee may be required to travel from time to time as
the business dictates.

	4.	 	Term

	 	4.1	 	Start
	 
	 	 	 	The Employee commenced employment with the Company on the Commencement Date. This
agreement takes effect from the Effective Date.
	 
	 	4.2	 	End
	 
	 	 	 	The Employment ends on the date set out in item 3 of the schedule (as
extended from time to time under clause 4.3) or such earlier date the
Employment ceases or is terminated under this agreement.
	 
	 	4.3	 	Extensions
	 
	 	 	 	At least 3 months prior to the expiry of the term of the Employment in
accordance with clause 4.2 or by prior application of this clause 4.3,
the parties will meet to negotiate the terms of a replacement
employment agreement. If the parties do not meet during that 3 month
period or, if they fail to negotiate a replacement agreement during
that period, the Employment is automatically extended for a further 12
calendar months on the same terms and conditions as this agreement.

	5.	 	Position and Duties

	 	5.1	 	Title
	 
	 	 	 	The Employee is to be employed in the role and with the title set out in item 4 of the
schedule. The Company may from time to time change the title.
	 
	 	5.2	 	Responsibilities
	 
	 	 	 	The Employee will be responsible for the matters or activities described in item 5 of
the schedule. The Company may from time to time alter the duties or activities of the
Employee.
	 
	 	5.3	 	Duties
	 
	 	 	 	The Employee must:

	 	5.3.1	 	report as directed by their supervisor or Company senior management
in relation to the matters or activities for which the Employee is responsible;

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

	 	5.3.2	 	observe all Company policies, rules, regulations and directions;
	 
	 	5.3.3	 	perform the responsibilities for which the Employee is employed
faithfully and to the best of the Employee’s ability and the parties will consult
with each other where necessary to enable the Employee to properly perform his
responsibilities;
	 
	 	5.3.4	 	use the Employee’s best endeavours in the furtherance of the
business of the Company; and
	 
	 	5.3.5	 	work during normal business hours and other hours reasonably
required by the Company.

	 	5.4	 	Exclusivity
	 
	 	 	 	The Employee will devote his time and attention exclusively to the Business
and affairs of the Company.

	6.	 	Remuneration and Benefits

	 	6.1	 	Salary

	 	6.1.1	 	On and from the Effective Date, the Employee is entitled to a salary
of the amount set out in item 6 of the schedule.
	 
	 	6.1.2	 	The salary is to be paid by equal monthly installments into a bank
account nominated by the Employee.

	 	6.2	 	Salary Review
	 
	 	 	 	The annual salary in clause 6.1 is to be reviewed at the interval set out in item 7 of
the schedule. Any increase is to be effective on such review date even if the
determination of the amount of salary increase occurs later.
	 
	 	6.3	 	Other Benefits
	 
	 	 	 	The Employee will be entitled to:

	 	6.3.1	 	leave –annual leave as required by law to be taken at times to be
agreed with the Company;
	 
	 	6.3.2	 	sick leave and long service leave – in accordance with the law;
	 
	 	6.3.3	 	expenses – reimbursement of expenses properly incurred in the course
of the Employment subject to provision to the Company of receipts and related
documentation in accordance with the policies and procedures established by the
Managing Director from time to time; and

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

	 	6.3.4	 	superannuation payments – in accordance with the law,
	 
	 	6.3.5	 	other benefits set out in item 8 of the schedule.

	 	6.4	 	For the avoidance of doubt, all of the Employee’s entitlements accrue from the
Commencement Date.

	7.	 	Confidential Information

	 	7.1	 	Maintenance of Confidentiality
	 
	 	 	 	During and after the Employment, the Employee may use or disclose Confidential
Information only for the following purposes:

	 	7.1.1	 	to perform the Employee’s responsibilities and discharge the
Employee’s duties under this agreement;
	 
	 	7.1.2	 	if the Company has otherwise consented in writing;
	 
	 	7.1.3	 	if required by statute or law; or
	 
	 	7.1.4	 	if required to be used or disclosed by the Employee in connection
with any actual, prospective or threatened legal proceedings.

	 	7.2	 	Security
	 
	 	 	 	The Employee must:

	 	7.2.1	 	keep the Confidential Information in the Employee’s custody or
control (to the extent not within the custody or control of the Company);
	 
	 	7.2.2	 	keep the Confidential Information in a reasonably secure manner;
	 
	 	7.2.3	 	immediately notify the Company of any suspected or actual
unauthorised use, copying or disclosure of Confidential Information of which the
Employee becomes aware;
	 
	 	7.2.4	 	at the Company’s expense, provide any assistance reasonably
requested by the Company from time to time in relation to any proceedings the
Company may institute to protect the Confidential Information from unauthorised
use, copying or disclosure;
	 
	 	7.2.5	 	not make any unauthorised copies of the whole or any part of the
Confidential Information; and
	 
	 	7.2.6	 	if required by the Company, mark copies of Confidential Information
“confidential”.

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

	 	7.3	 	Continuing Obligations
	 
	 	 	 	The obligations of the Employee under this clause 7, survive termination of the
agreement.

	8.	 	Cessation of Employment Obligations
	 
	 	 	Upon cessation of the Employment, the Employee must:

	 	8.1	 	deliver all Confidential Information in the Employee’s custody or control to the
Company or at the Company’s direction.
	 
	 	8.2	 	delete all Confidential Information held in electronic or other media form in the
Employee’s custody or control; and
	 
	 	8.3	 	if requested by the Company, provide a certificate confirming that the Employee has
complied with its obligations under this clause.

	9.	 	Intellectual Property

	 	9.1	 	Disclosure
	 
	 	 	 	The Employee must promptly, fully and effectively disclose to the Company or its
nominee in such form as the Company may reasonably require, full details of:

	 	9.1.1	 	each and every invention (whether patentable or not), design
(whether registerable or not), trademark or service mark;
	 
	 	9.1.2	 	any copyright material;
	 
	 	9.1.3	 	any trade secret or other Confidential Information;
	 
	 	9.1.4	 	any computer program material (including source codes, algorithms,
logical ideas, concepts and processes, charts, tables and diagrams);
	 
	 	9.1.5	 	processes, know-how or improvements;
	 
	 	9.1.6	 	literary, artistic or other copyrightable works; and
	 
	 	9.1.7	 	any other intellectual property of any kind,

	 	 	 	made, written, developed or discovered by the Employee (whether alone or with others)
in the course of the Employment (whether in or out of working hours) and whether or not
capable of statutory protection.

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

	 	9.2	 	Assignment
	 
	 	 	 	In exchange for the benefits conferred on the Employee during the course of the
Employment, the Employee agrees that by reason of this clause, all Intellectual
Property created during the course of the Employment (whether in or out of working
hours) belongs to and is the property of the Company or its nominee. Accordingly the
Employee must:

	 	9.2.1	 	at the request and expense of the Company; and
	 
	 	9.2.2	 	without additional compensation from the Company,

	 	 	 	sign all such documents or instruments (including assignment deeds) and do all such
things as may be necessary to vest, confirm, perfect and record the ownership by the
Company or its nominee throughout the world of its right, title and interest to any
Intellectual Property and to enable the Company or its nominee to acquire and preserve
such rights and to have the full enjoyment of such rights.
	 
	 	9.3	 	The Employee consents to:

	 	9.3.1	 	all acts or omissions by the Company in relation to the Employee’s
moral rights in all Intellectual Property; and
	 
	 	9.3.2	 	the infringement of the Employee’s moral rights in all Intellectual
Property by the Company, its licensees, assignees and successors in title and any
person authorised by the Company at the absolute discretion of the Company and
without reference to the Employee.

	 	9.4	 	Continuing Obligations
	 
	 	 	 	The obligations of the Employee under this clause 9, survive termination of the
agreement.

	10.	 	Termination

	 	10.1	 	Resignation or Retirement

	 	10.1.1	 	The Employee may resign or retire by giving not less than 3 months written
notice to the Company. The Company may pay the Employee for the notice period in
lieu of notice, or require the Employee to work some of the notice period and pay
the Employee in lieu for the balance of the period.
	 
	 	10.1.2	 	The resignation or retirement is effective on expiry of the notice period
notified in accordance with clause 10.1.1.

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

	 	10.2	 	Termination for incapacity

	 	10.2.1	 	The Company may terminate the Employment at anytime if the Employee is mentally
or physically unfit to perform the Employee’s responsibilities and discharge the
Employee’s duties under this agreement for a total of 2 months in any 12 month
period.
	 
	 	10.2.2	 	The Company must give the Employee not less than 1 month’s written notice of its
intention to terminate under this clause 10.2.

	 	10.3	 	Termination for cause
	 
	 	 	 	The Company may terminate the Employment at any time with immediate effect for cause,
by giving written notice to the Employee specifying the cause of termination. For the
purpose of this agreement “cause” means:

	 	10.3.1	 	default by the Employee in the performance of the Employee’s responsibilities or
the discharge of the Employee’s duties under this agreement;
	 
	 	10.3.2	 	fraudulent or dishonest conduct by the Employee;
	 
	 	10.3.3	 	intemperate use of alcohol or drugs by the Employee;
	 
	 	10.3.4	 	conviction of the Employee for the commission of a felony; or
	 
	 	10.3.5	 	willful or intentional injury to the Company’s Business or affairs.

	 	10.4	 	Termination by Company on Notice
	 
	 	 	 	The Company may terminate the Employment at any time by giving 3 months written notice
to the Employee. The Company may pay the Employee for the notice period in lieu of
notice, or require the Employee to work some of the notice period and pay the Employee
in lieu for the balance of the period.
	 
	 	10.5	 	Reasonableness
	 
	 	 	 	The Employee acknowledges that the periods of notice or lack of a period of notice, as
the case may be, as set out in this clause 10, are fair and reasonable.
	 
	 	10.6	 	Accrued Rights
	 
	 	 	 	Termination of the Employment does not affect:

	 	10.6.1	 	any accrued rights or remedies one party may have against another in connection
with this agreement arising prior to termination; or

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

	 	10.6.2	 	any accrued or future entitlement to any bonus under and in accordance with
clause 6.3

	 	10.7	 	Obligations on Termination or Cessation of Employment

	 	10.7.1	 	Termination or cessation of the Employment does not affect the Employee’s
obligations under clauses 7, 8, 9 or 11.
	 
	 	10.7.2	 	On termination or cessation of the Employment, the Employee must also deliver to
the Company or its nominee:

	 	(a)	 	all property belonging to or leased by the
Company in the Employees control (including, without limitation,
stationery, cheque books, books, documents, records, disks, access
cards, keys, telephones, computers, credit cards and vehicles)
	 
	 	(b)	 	computer log-in codes and all other passwords
and access codes; and
	 
	 	(c)	 	the matters required to be returned under
clause 8.

	 	10.8	 	Extension of Service
	 
	 	 	 	This agreement can be extended as per clause 4.4.
	 
	 	10.9	 	Redundancy
	 
	 	 	 	No “redundancy” or other termination payments, other than those set out in this
agreement are payable.

	11.	 	Non Competition

	 	11.1	 	Covenant

	 	11.1.1	 	On termination of the Employment for any reason, if requested by the Company:

	 	(a)	 	the provisions of clause 11.1.2 apply for up
to 12 months after the Employment is terminated as well as applying
during the period of the Employment; and
	 
	 	(b)	 	the provisions of clause 11.1.3 apply for up
to 12 months after the Employment is terminated.

	 	11.1.2	 	The Employee, if requested by the Company, must not, whether directly or
indirectly and whether on his own account or on behalf of any other person or
entity carry on, be engaged in, or be associated with, a business similar to the
business carried on by the Company.

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

	 	11.1.3	 	The Employee, if requested by the Company, must not, whether directly or
indirectly and whether on his own account or on behalf of any other person:

	 	(a)	 	induce or attempt to induce any person to
leave the employment of the Company; or
	 
	 	(b)	 	interfere with or seek to interfere with the
relationship between the Company (on one hand) and any third party (on
the other hand).

	 	11.2.	 	Consideration by Company
	 
	 	 	 	If the Company requests that the Employee undertake the provisions set out in clauses
11.1.1, 11.1.2 and/or 11.1.3, then the Company shall pay to the Employee the equivalent
of their salary just prior to the termination of the Employment, for the period set out
in clauses 11.1.1, 11.1.2 and/or 11.1.3.
	 
	 	11.3	 	Reasonableness
	 
	 	 	 	The Employee acknowledges that the prohibitions and restrictions contained in this
clause 11 are reasonable in the circumstances and necessary to protect the Company and
the Business and its goodwill.

	12.	 	Notice
	 
	 	 	Notices or other communications must be given in writing in the English language to the
address of the party listed at the beginning of this agreement or such other address as the
party may notify to the other for the purpose of this agreement. The notice or communication
may be delivered to the person’s address or facsimile.
	 
	13.	 	No Assignment
	 
	 	 	Neither party may:

	 	13.1	 	assign its rights under this agreement to a third party; or
	 
	 	13.2	 	cause a third party to assume its obligations under this agreement.

	14.	 	Governing Law
	 
	 	 	This agreement is governed by the law of Victoria.
	 
	15.	 	Counterparts
	 
	 	 	This agreement may be executed in any number of counterparts. A counterpart may be a
facsimile. Together all counterparts make up one document.

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

EXECUTED as an agreement on 27 November 2006.

Signed for and behalf of

UNIVERSAL BIOSENSORS PTY LTD

/s/ Mark Morrisson

Managing Director

	 	 	 
	Signed by Salesh Balak
	 	 
	in the presence of:
	 	 /s/ Salesh Balak
	 

	 	 
	 

	 	Salesh Balak

/s/ S. K. Balak

Witness

S. K. Balak

Name (please print)

Universal Biosensors Pty Ltd — 2006 Employment Agreement

 

 

SCHEDULE

	 	 	 
	Item 1
	 	 
	 
	 	 
	Commencement Date:

	 	Monday 27th November 2006
	 
	 	 
	Item 2
	 	 
	 
	 	 
	Effective Date

	 	Monday 27th November 2006
	 
	 	 
	Item 3
	 	 
	 
	 	 
	End Date:

	 	3 years from the Effective Date or longer at the discretion of the Company.
	 
	 	 
	Item 4
	 	 
	 
	 	 
	Title:

	 	Chief Financial Officer
	 
	 	 
	Item 5
	 	 
	 
	 	 
	Responsibilities:

	 	As per Position Description to be mutually agreed.
	 
	 	 
	Item 6
	 	 
	 
	 	 
	Salary:

	 	$150,000 per annum
	 
	 	 
	Superannuation:

	 	9% or as required by law
	 
	 	 
	Item 7
	 	 
	 
	 	 
	Salary Review Date:

	 	Annually on 1st February
	 
	 	 
	Item 8
	 	 
	 
	 	 
	Other Benefits:

	 	No other benefits

Universal Biosensors Pty Ltd — 2006 Employment Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]