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Exhibit 10(25)
THIS AGREEMENT is made on the 12th day of September 2000 between
(1) CANARGO ENERGY CORPORATION, a Corporation incorporated under the laws of
Delaware, USA and having an address at 00 Xxxxxxxxx Xxxxxx, Xxxxx X-000,
Xxxxx, Xxxxxxxx 00000 (the "COMPANY"); and
(2) XXXXXX XXXXXXXXXX, residing at Xxxxxxxxxx Xxxxx, Xxxxxx Xxxx, Xxxxxxxx,
Xxxxxxxxxxxxx, Xxxxxxxxx XX0 0XX (the "EXECUTIVE")
WHEREAS the Company wishes to employ the Executive as Chief Operating Officer on
the terms and conditions of this Agreement and the Executive wishes to accept
such employment.
IT IS AGREED as follows:-
1 DEFINITIONS AND INTERPRETATION
1.1 DEFINITIONS
In this Agreement, unless the context otherwise requires:
"BASIC SALARY" means the monthly salary, as specified in Clause 6.1.1
or, as appropriate, the reviewed monthly salary from time to time;
"CONFIDENTIAL INFORMATION" means all information which is identified or
treated by the Company or any Group Company or any of the Group's
clients or customers as confidential or which by reason of its
character or the circumstances or manner of its disclosure is evidently
confidential including (without prejudice to the foregoing generality)
any information about the personal affairs of any of the directors (or
their families) of the Company or any Group Company, business plans,
proposals relating to the acquisition or disposal of a company or
business or proposed expansion or contraction of activities, maturing
new business opportunities, research and development projects, designs,
secret processes, trade secrets, product or services development and
formulae, know-how, inventions, sales statistics and forecasts,
marketing strategies and plans, costs, profit and loss and other
financial information (save to the extent published in audited
accounts), prices and discount structures and the names, addresses and
contact and other details of: (a) employees and their terms of
employment; (b) customers and potential customers, their requirements
and their terms of business with the Group; and (c) suppliers and
potential suppliers and their terms of business (all whether or not
recorded in writing or in electronic or other format);
"EMPLOYMENT" means the employment of the Executive under this Agreement
or, as the context requires, the duration of that employment;
"GROUP" means the Company, any holding company or undertaking of the
Company and any subsidiaries and subsidiary undertakings of the Company
or such holding company or undertaking;
"GROUP COMPANY" means any company within the Group;
"HEALTH CARE SCHEME" means the medical expenses insurance, or
arrangement(s) provided or introduced from time to time by the Company
for the benefit of the Executive.
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"INTELLECTUAL PROPERTY RIGHTS" means any and all existing and future
intellectual or industrial property rights in and to any Works,
including all existing and future patents, copyrights, design rights
(whether registered or unregistered), database rights, trade marks
(whether registered or unregistered), semiconductor topography rights,
plant varieties rights, internet rights/domain names, know-how and any
and all applications for any of the foregoing and any and all rights to
apply for any of the foregoing in and to any Works;
"MINORITY HOLDER" means a person who either solely or jointly holds
(directly or through nominees) any shares or loan capital in any
company whose shares are listed or dealt in on a recognised investment
exchange (as that term is defined by Section 207(1) of the Financial
Services Act 1986) provided that such holding does not, when aggregated
with any shares or loan capital held by the Executive's partner and/or
his or his partner's children under the age of 18, exceed 3% of the
shares or loan capital of the class concerned for the time being
issued;
"SHARE OPTIONS" means any options that the Executive may hold to
purchase shares in the Company;
"TERMINATION DATE" means the date of termination of the Employment; and
"WORKS" means any documents, materials, models, designs, drawings,
processes, inventions, formulae, computer coding, methodologies,
know-how, Confidential Information or other work, performed made,
created, devised, developed or discovered by the Executive in the
course of the Employment either alone or with any other person in
connection with or in any way affecting or relating to the business of
the Company or any Group Company or capable of being used or adapted
for use therein or in connection therewith.
1.2 INTERPRETATION AND CONSTRUCTION
Save to the extent that the context or the express provisions of this
Agreement require otherwise, in this Agreement:-
(a) words importing the singular shall include the plural and vice
versa;
(b) words importing any gender shall include all other genders;
(c) any reference to a Clause, the Schedule or part of the
Schedule is to the relevant Clause, Schedule or part of the
Schedule of or to this Agreement unless otherwise specified;
(d) references to this Agreement or to any other document shall be
construed as references to this Agreement or to that other
document as modified, amended, varied, supplemented, assigned,
novated or replaced from time to time;
(e) references to any statute or statutory provision (including
any subordinate legislation) includes any statute or statutory
provision which amends, extends, consolidates or replaces the
same, or which has been amended, extended, consolidated or
replaced by the same, and shall include any orders,
regulations, instruments or other subordinate legislation made
under the relevant statute or statutory provision;
(f) references to a "PERSON" includes any individual, firm,
company, corporation, body corporate, government, state or
agency of state, trust or foundation, or any
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association, partnership or unincorporated body (whether or
not having separate legal personality) of two or more
foregoing;
(g) any phrase introduced by the words "INCLUDING", "INCLUDE", "IN
PARTICULAR" or any similar expression shall be construed as
illustrative only and shall not be construed as limiting the
generality of any preceding words;
(h) the words "OTHER" and "OTHERWISE" shall not be construed
eiusdem generis with any foregoing words where a wider
construction is possible.
1.3 HEADINGS
The table of contents and the headings in this Agreement are included
for convenience only and shall be ignored in construing this Agreement.
2 THE EMPLOYMENT
2.1 APPOINTMENT
Subject to the provisions of this Agreement, the Company employs the
Executive and the Executive accepts employment as Chief Operating
Officer of the Company with effect from 12 September 2000
notwithstanding the date or dates of this Agreement.
2.2 WARRANTY
The Executive warrants to the Company that by virtue of entering into
this Agreement he will not be in breach of any express or implied
obligation to any third party.
3 DURATION OF THE EMPLOYMENT
3.1 CONTINUOUS EMPLOYMENT
The Executive's continuous period of employment with the Company
commenced on 12th September 2000.
3.2 DURATION
Subject to the provisions of Clauses 3 and 16.1 the Employment shall
continue unless and until terminated at any time by:-
(a) the Company giving to the Executive not less than 6 months'
previous notice in writing to that effect; or
(b) the Executive giving to the Company not less than 6 months'
previous notice in writing to that effect.
3.3 PAYMENT IN LIEU OF NOTICE
3.3.1 The Company shall be entitled, at its sole discretion, to terminate the
Employment immediately in writing either instead of, or at any time
after, notice of termination being given (by either the Company or the
Executive) and in either case to make a payment to the Executive in
lieu of notice.
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3.4 COMPULSORY RETIREMENT
Notwithstanding Clause 3.2, the Employment shall terminate without
notice on the Executive's 60th birthday.
4 HOURS AND PLACE OF WORK
4.1 HOURS OF WORK
The Executive agrees that he shall work such hours as are necessary for
the proper performance of his duties. The Executive shall work a
minimum of 104 hours per month based upon a 8 hour day Monday to Friday
between the hours of 8 a.m. and 6 p.m., with a break of one hour for
lunch each day, on days to be agreed in advance.
4.2 WORKING TIME REGULATIONS
The Executive agrees to work hours that exceed the maximum average
weekly working time limit of 48 hours imposed by the Working Time
Regulations 1998. The Executive may withdraw his agreement on giving to
the Company 3 months' prior written notice.
4.3 PLACE OF WORK
4.3.1 The Executive's place of work will initially be at the Company's UK
branch offices at 000-000 Xxxxxxxxxx Xxxxxx Xxxx, Xxxxxx, XX0 but the
Company may require the Executive to work at any place within the
United Kingdom on either a temporary or an indefinite basis. The
Executive will be given reasonable notice of any change in his
permanent place of work.
5 SCOPE OF THE EMPLOYMENT
5.1 DUTIES OF THE EXECUTIVE
During the Employment the Executive shall:-
(a) undertake and carry out to the best of his ability such duties
and exercise such powers in relation to the Company's business
as may from time to time be assigned to or vested in him by
the Chief Executive Officer;
(b) in the discharge of those duties and the exercise of those
powers observe and comply with all lawful resolutions,
regulations and directions from time to time made by, or under
the authority of, the Chief Executive Officer and promptly
upon request, give a full account to the Chief Executive
Officer or a person duly authorised by the Chief Executive
Officer of all matters with which he is entrusted;
(c) unless prevented by ill-health, holidays or other unavoidable
cause, devote such of his working time, attention and skill to
the discharge of his duties hereunder as may be reasonably
required; and
(d) faithfully and diligently perform his duties and at all times
use his best endeavours to promote and protect the interests
of the Group.
5.2 RIGHT TO SUSPEND DUTIES AND POWERS
5.2.1 The Company reserves the right in its absolute discretion to suspend
during any notice period or for the purpose of investigating any matter
in which the Executive is implicated or
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involved all or any of the Executive's duties and powers on terms it
considers expedient or to require him to perform only such duties,
specific projects or tasks as are assigned to him expressly by the
Company (including the duties of another position) in any case for such
period or periods and at such place or places (including, without
limitation, the Executive's home) as the Company in its absolute
discretion deems necessary (the "GARDEN LEAVE").
5.2.2 The Company may, at its sole discretion, require that during the Garden
Leave the Executive shall not:
(a) enter or attend the premises of the Company or any Group
Company;
(b) contact or have any communication with any client or
prospective client or supplier of the Company or any Group
Company in relation to the business of the Company or any
Group Company;
(c) contact or have any communication with any employee, officer,
director, agent or consultant of the Company or any Group
Company in relation to the business of the Company or any
Group Company;
(d) remain or become involved in any aspect of the business of the
Company or any Group Company except as required by such
companies; or
(e) work either on his own account or on behalf of any other
person.
5.2.3 During Garden Leave, the Executive will continue to receive his Basic
Salary and benefits.
5.2.4 For the avoidance of doubt, the Company may exercise its powers under
this Clause 5.2 at any time during the Employment including after
notice of termination has been given by either party.
6 REMUNERATION
6.1 BASIC SALARY
6.1.1 During the Employment the Company shall pay the Executive a Basic
Salary (pound)4,000 per month. The Basic Salary shall accrue from day
to day and be payable by credit transfer in equal monthly instalments
on or around the 15th day of each calendar month or otherwise as
arranged from time to time.
6.2 SALARY REVIEW
The Basic Salary shall be reviewed annually with effect from the first
anniversary of the commencement of employment. The Company is not
obliged to increase the Basic Salary at any review.
6.3 SHARE OPTIONS
The Executive will be entitled to 250,000 Special Share Options in the
Company subject to the terms of the Special Share Options and necessary
regulatory approval.
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7 EXPENSES
7.1 OUT-OF-POCKET EXPENSES
The Company shall reimburse to the Executive (against receipts or other
appropriate evidence as the Chief Executive Officer may require) the
amount of all out-of-pocket expenses reasonably and properly incurred
by him in the proper discharge of his duties hereunder.
7.2 COMPANY CREDIT/CHARGE CARDS
In the event that the Company issues a Company sponsored credit or
charge card to the Executive he shall use such card only for expenses
reimbursable under Clause 7.1 and shall return it to the Company when
so requested and in any event immediately on termination of the
Employment howsoever arising.
7.3 MOBILE TELEPHONE
The Company will provide the Executive with a mobile telephone for the
purpose of properly performing his duties. The Company will be
responsible for all payment of all costs in connection with the
telephone, including line rental charges, connection fees, and all
charges. For the avoidance of doubt, the Executive is permitted to make
reasonable use of the mobile telephone for personal purposes. The
telephone will however remain the property of the Company at all times
and the Company may demand the return of the telephone at any time if,
in the opinion of the Company the Executive is making inappropriate use
of the telephone.
8 DEDUCTIONS
The Executive agrees that the Company may deduct from any sums due to
him under this Agreement any sums due by him to the Company including,
without limitation, any debits to his Company credit or charge card not
authorised by the Company, the Executive's pension contributions (if
any), any overpayments, loans or advances made to him by the Company,
the cost of repairing any damage or loss to the Company's property
caused by him and any losses suffered by the Company as a result of any
negligence or breach of duty by the Executive.
9 PENSION SCHEME
The Company does not provide a Company pension scheme. The Company
shall contribute 22.5% of the Executives Basic Salary into a personal
pension held by the Executive provided the Company is satisfied that
the personal pension scheme is a properly authorised scheme for tax and
regulatory purposes.
10 OTHER INSURANCE & BENEFITS
10.1 LIFE ASSURANCE
The Company will provide the Executive with the benefit of death in
service life assurance which, in the event of death itself will pay a
maximum amount of 4 times his annual salary, subject to the rules and
conditions of the policy.
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10.2 HEALTH CARE SCHEME
Without prejudice to the terms of Clause 16, the Executive and his
spouse and children up to the age of 18 shall be entitled during the
Employment, to participate at the Company's expense in a Health Care
Scheme subject to the following terms and conditions:-
(a) the terms and conditions of the Health Care Scheme from time
to time;
(b) the insurer or provider of the Health Care Scheme honouring
the claim in respect of the Executive or his spouse or
children;
(c) the Executive's acceptance of such variations to his terms and
conditions of employment as may from time to time be required
by the Company.
10.3 PHI
Without prejudice to the terms of Clause 16, the Executive shall be
entitled to participate in a Permanent Health Insurance ("PHI") scheme
at the expense of the Company, always subject to the terms and
conditions of the PHI scheme.
10.4 PAYMENTS
10.4.1 All payments under the PHI scheme or the like will be subject to the
deductions required by law.
10.4.2 Where payments are made under the PHI scheme all other benefits
provided to or in respect of the Executive will cease from the start of
those payments (if they have not done so already), unless the Company
is fully reimbursed by the PHI scheme for the cost of providing the
benefit.
10.5 RIGHT TO TERMINATE OR AMEND
The Company reserves the right at its absolute discretion to terminate
or amend at any time any Health Care Scheme or PHI scheme or the
Executive's membership of any such scheme. The Company will provide an
equivalent benefit unless, in the reasonable opinion of the Chief
Executive Officer , it is unable to secure insurance at reasonable
premiums due to the medical condition of the Executive or his spouse or
children.
10.6 MEDICAL EXAMINATIONS AND HEALTH RECORDS
The Executive shall submit to such medical examinations by a doctor
selected by the Chief Executive Officer as may reasonably be required
by the Chief Executive Officer from time to time. The Executive
authorises the Company to make applications on his behalf for access to
any health records relating to him for the purposes of Section 3 of the
Access to Health Records Xxx 0000, provided that the Executive is given
prior notice of any application being made. Copies of any health
records provided to the Chief Executive Officer as a result of any
application shall be made available to the Executive. The fees and
expenses incurred in the provision of any medical examination and of
obtaining access to the health records shall be borne by the Company.
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11 HOLIDAYS
11.1 THE HOLIDAY YEAR
The Company's holiday year runs from 1st January to 31st December.
Holidays can only be taken with the prior permission of the Chief
Executive Officer .
11.2 ANNUAL ENTITLEMENT
11.2.1 The Executive's annual entitlement to paid holidays is to those public
or customary holidays recognised by the Company in any holiday year and
in addition, 5 weeks contractual days holiday.
11.2.2 Entitlement to contractual holidays is accrued pro rata throughout the
holiday year. The Executive will be entitled to take public and
customary holidays on the days that they are recognised by the Company
during the holiday year.
11.2.3 The Executive is not entitled to carry any unused holiday entitlement
forward to the next holiday year without the permission of the Company.
11.3 HOLIDAY ENTITLEMENT ON TERMINATION
Upon notice of termination of the Employment being served by either
party, the Company may require the Executive to take any unused
holidays accrued at that time during any notice period. Alternatively,
the Company may, at its discretion, on termination of the Employment,
make a payment in lieu of accrued contractual holiday entitlement. The
Executive will be required to make a payment to the Company in respect
of any holidays taken in excess of his holiday entitlement accrued at
the Termination Date. Any sums so due may be deducted from any money
owing to the Executive by the Company.
12 ABSENCE
12.1 ABSENCE DUE TO SICKNESS OR INJURY
If the Executive is absent from work due to sickness or injury he
shall:
(a) immediately inform the Company of his sickness or injury;
(b) in respect of a consecutive period of absence lasting less
than 8 days (including weekends), send to the Company a
self-certification form in a format stipulated by the Company;
and
(c) in respect of any absence exceeding 7 consecutive days
(including weekends), send to the Company a medical
certificate signed by a doctor covering the further
consecutive period of absence.
12.2 PAYMENT OF SALARY DURING ABSENCE
12.2.1 Subject to the Executive complying with the terms of Clause 12.1, the
Company shall continue to pay Basic Salary and other benefits during
any period of absence due to sickness or injury for up to a maximum
period of 10 weeks in any period of 12 consecutive months unless the
Employment is terminated in terms of Clauses 3 or 16. Thereafter the
Company shall pay half basic salary and benefits for a further period
of 10 weeks in that period of 12 consecutive months unless the
employment is terminated in terms of Clauses 3 or 16.
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12.2.2 Payment of the Basic Salary in terms of Clause 12.2.1 shall be made
less:
(a) an amount equivalent to any Statutory Sick Pay payable to the
Executive;
(b) any sums which may be received by the Executive under any
insurance policy effected by the Company; and
(c) any other benefits or sums which the Executive receives in
terms of the Employment or under any relevant legislation.
13 OTHER INTERESTS
13.1 RESTRICTIONS ON OTHER ACTIVITIES AND INTERESTS OF THE EXECUTIVE
13.1.1 During the Employment the Executive shall not at any time, without the
prior written consent of the Chief Executive Officer , either alone or
jointly with any other person, carry on or be directly or indirectly
employed, engaged, concerned or interested in any business, prospective
business or undertaking other than a Group Company. Nothing contained
in this Clause shall preclude the Executive from being a Minority
Holder unless the holding is in a company that is a direct business
competitor of the Company or any Group Company in which case, the
Executive shall obtain the prior consent of the Chief Executive Officer
to the acquisition or variation of such holding.
13.1.2 If the Executive, with the consent of the Chief Executive Officer ,
accepts any other appointment he must keep the Company accurately
informed of the amount of time he spends working under that
appointment.
13.2 TRANSACTIONS WITH THE COMPANY
Subject to any regulations issued by the Company, the Executive shall
not be entitled to receive or obtain directly or indirectly any
discount, rebate or commission as a result of any sale or purchase of
goods or services effected or other business transacted (whether or not
by him) by or on behalf of the Company or any Group Company and if he
(or any person in which he is interested) obtains any discount, rebate
or commission he shall account to the Company for the amount received
by him (or a due proportion of the amount received by the person having
regard to the extent of his interest therein).
14 CONFIDENTIALITY AND COMPANY DOCUMENTS
14.1 RESTRICTIONS ON DISCLOSURE/USE OF CONFIDENTIAL INFORMATION
The Executive must not either during the Employment (except in the
proper performance of his duties) or at any time (without limit) after
the Termination Date:
(a) divulge or communicate to any person;
(b) use for his own purposes or for any purposes other than those
of the Company or any Group Company; or
(c) through any failure to exercise due care and diligence, cause
any unauthorised disclosure of;
any Confidential Information. The Executive must at all times use his
best endeavours to prevent publication or disclosure of any
Confidential Information. These restrictions shall
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cease to apply to any information which shall become available to the
public generally otherwise than through the default of the Executive.
14.2 PROTECTION OF COMPANY DOCUMENTS AND MATERIALS
All notes, records, lists of customers, suppliers and employees,
correspondence, computer and other discs or tapes, data listings,
codes, keys and passwords, designs, drawings and other documents or
material whatsoever (whether made or created by the Executive or
otherwise and in whatever medium or format) relating to the business of
the Company or any Group Company or any of its or their clients (and
any copies of the same):
(a) shall be and remain the property of the Company or the
relevant Group Company or client; and
(b) shall be handed over by the Executive to the Company or the
relevant Group Company or client on demand by the Company and
in any event on the termination of the Employment.
15 INVENTIONS AND OTHER WORKS
15.1 EXECUTIVE TO FURTHER INTERESTS OF THE COMPANY
The Company and the Executive agree that the Executive may make or
create Works during the Employment and agree that in this respect the
Executive is obliged to further the interests of the Company and any
Group Company.
15.2 DISCLOSURE AND OWNERSHIP OF WORKS
The Executive must immediately disclose to the Company all Works and
all Intellectual Property Rights. Both the Works and all Intellectual
Property Rights will (subject to sections 39 to 43 of the Patents Act
1977) belong to and be the absolute property of the Company or any
other person the Company may nominate.
15.3 PROTECTION, REGISTRATION AND VESTING OF WORKS
The Executive shall immediately on request by the Company (whether
during or after the Termination Date) and at the expense of the
Company:
(a) apply or join with the Company or any Group Company in
applying for any Intellectual Property Rights or other
protection or registration ("PROTECTION") in the United
Kingdom and in any other part of the world for, or in relation
to, any Works;
(b) execute all instruments and do all things necessary for
vesting all Intellectual Property Rights or Protection when
obtained and all right, title and interest to and in the same
absolutely and as sole beneficial owner in the Company or such
Group Company or other person as the Company may nominate; and
(c) sign and execute any documents and do any acts reasonably
required by the Company in connection with any proceedings in
respect of any applications and any publication or application
for revocation of any Intellectual Property Rights or
Protection.
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15.4 WAIVER OF RIGHTS BY THE EXECUTIVE
The Executive hereby irrevocably and unconditionally waives all rights
under Chapter IV Copyright, Designs and Patents Xxx 0000 and any other
moral rights which he may have in the Works, in whatever part of the
world such rights may be enforceable including:
(a) the right conferred by section 77 of that Act to be identified
as the author of any such Works; and
(b) the right conferred by section 80 of that Act not to have any
such Works subjected to derogatory treatment.
15.5 POWER OF ATTORNEY
The Executive hereby irrevocably appoints the Company to be his
attorney and in his name and on his behalf to execute any such act and
to sign all deeds and documents and generally to use his name for the
purpose of giving to the Company the full benefit of this Clause. The
Executive agrees that, with respect to any third parties, a certificate
signed by any duly authorised officer of the Company that any act or
deed or document falls within the authority hereby conferred shall be
conclusive evidence that this is the case.
15.6 STATUTORY RIGHTS
Nothing in this Clause 15 shall be construed as restricting the rights
of the Executive or the Company under sections 39 to 43 of the Patents
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16 TERMINATION
16.1 TERMINATION EVENTS
Notwithstanding the provisions of Clauses 3 and 12, the Company shall
be entitled, but not bound, to terminate the Employment:
(a) with immediate effect by giving to the Executive notice in
writing at any time after the occurrence of any one or more of
the following events:-
(i) if the Executive is guilty of any gross misconduct or
behaviour which tends to bring himself or the Company
or any Group Company into disrepute; or
(ii) if the Executive commits any material or persistent
breach of this Agreement, or fails to comply with any
reasonable order or direction of the Chief Executive
Officer , or fails to perform his duties to the
standard required by the Chief Executive Officer ; or
(iii) if he becomes insolvent or bankrupt or compounds with
or grants a trust deed for the benefit of his
creditors; or
(iv) if his behaviour (whether or not in breach of this
Agreement) can reasonably be regarded as materially
prejudicial to the interests of the Company or any
Group Company, including if he is found guilty of any
criminal offence punishable by imprisonment (whether
or not such sentence is actually imposed); or
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(v) has an order made against him disqualifying him from
acting as a company director; or
(vi) if he becomes of unsound mind; or
(b) by giving not less than 6 months' notice in writing if the
Executive has been prevented by reason of ill health, injury
or some other reason beyond his control, from performing his
duties under this Agreement for a period or periods
aggregating at least ninety days in the preceding period of
twenty four consecutive months provided that if at any time
during the period of such notice and before the termination of
the Employment the Executive shall provide a medical
certificate satisfactory to the Chief Executive Officer to the
effect that he has fully recovered his physical and/or mental
health and that no recurrence of illness or incapacity can
reasonably be anticipated, the Company shall withdraw the
notice.
16.2 NO DAMAGES OR PAYMENT IN LIEU OF NOTICE
In the event of the Employment being terminated in accordance with
Clause 16.1, the Executive shall not be entitled to receive any payment
in lieu of notice nor make any claim against the Company or any Group
Company for damages for loss of office or termination of the
Employment. Regardless of this, the termination shall be without
prejudice to the continuing obligations of the Executive under this
Agreement.
17 EVENTS UPON TERMINATION
17.1 OBLIGATIONS UPON TERMINATION
Immediately upon the termination of the Employment howsoever arising or
immediately at the request of the Chief Executive Officer at any time
after either the Company or the Executive has served notice of
termination of the Employment, the Executive shall deliver to the
Company all Works, materials within the scope of Clause 15.2 and all
other materials and property including credit or charge cards, mobile
telephone, computer equipment, disks and software, passwords,
encryption keys or the like, keys, security pass, letters, stationery,
documents, files, films, records, reports, plans and papers (in
whatever format including electronic) and all copies thereof used in or
relating to the business of the Company or the Group which are in the
possession of or under the control of the Executive.
17.2 LOSS OF SHARE OPTIONS
On the termination of the Employment (whether occurring lawfully or
otherwise), the Executive shall not be entitled to any compensation or
payment for the loss of the Share Options or any benefit which could
have been derived from them, whether the compensation or payment is
claimed by way of a payment in lieu of notice, damages for wrongful
dismissal, breach of contract or loss of office, or compensation for
unfair dismissal, or on any other basis.
18 RESTRICTIONS AFTER TERMINATION
18.1 DEFINITIONS
Since the Executive is likely to obtain Confidential Information in the
course of the Employment and personal knowledge of and influence over
suppliers, customers, clients and employees of the Company and Group
Companies, the Executive hereby agrees with the Company that in
addition to the other terms of this Agreement and without prejudice to
the other restrictions imposed upon him by law, he will be bound by the
covenants and
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undertakings contained in Clauses 18.2 to 18.5. In this Clause 18,
unless the context otherwise requires:
"CRITICAL EMPLOYEE" means any person who was a director, employee or
consultant of the Company at any time within the Relevant Period who by
reason of that position and in particular his seniority and expertise
or knowledge of Confidential Information or knowledge of or influence
over the clients, customers or contacts of the Company is likely to
cause damage to the Company if he were to leave the employment of the
Company and become employed by a competitor of the Company;
"RELEVANT PERIOD" means the period of twelve months immediately
preceding the Termination Date;
"RESTRICTED AREA" means any country in the world where the Company or
any Group Company has a valid licence for the exploration and/or
production of oil and/or gas;
"RESTRICTED PERIOD" means the period of 12 months commencing on the
Termination Date;
18.2 RESTRICTIVE COVENANTS
The Executive confirms that, neither during the Employment nor during
the Restricted Period, without the prior written consent of the Company
(such consent not to be unreasonably withheld), whether by himself,
through his employees or agents or otherwise and whether on his own
behalf or on behalf of any person, directly or indirectly, he will not:
(a) so as to compete with the Company in the Restricted Area; be
employed or engaged or at all interested in (except as a
Minority Holder) a business or person which is involved in the
business of exploration or production of oil and/or gas, if
the business is or seeks to be in competition with the
Company;
(b) solicit or induce or endeavour to solicit or induce any person
who, on the Termination Date, was a Critical Employee (and
with whom the Executive had dealings during the Relevant
Period) to cease working for or providing services to the
Company, whether or not any such person would thereby commit a
breach of contract;
(c) employ or otherwise engage any Critical Employee in the
business of exploration or production of oil and/or gas if
that business is, or seeks to be, in competition with the
Company; or
(d) solicit or induce or endeavour to solicit or induce any
Government body or agency or any other third party in the
Restricted Area to cease to deal with the Company and shall
not interfere in any way with any relationship between any
such Government body or agency or other third party and the
Company.
18.3 APPLICATION OF RESTRICTIVE COVENANTS TO OTHER GROUP COMPANIES
Clause 18.2 shall also apply as though references to the "COMPANY"
include references to each Group Company in relation to which the
Executive has in the course of the Employment or by reason of rendering
services to or holding office in such Group Company:
(a) acquired knowledge of its trade secrets or Confidential
Information; or
(b) had personal dealings with its Customers or Prospective
Customers; or
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(c) supervised directly or indirectly employees having personal
dealings with its Customers or Prospective Customers;
but so that references in Clause 18.1 to the "Company" shall for this
purpose be deemed to be references to the relevant Group Company. The
obligations undertaken by the Executive pursuant to this Clause 18.3
shall, with respect to each Group Company, constitute a separate and
distinct covenant and the invalidity or unenforceability of any such
covenant shall not affect the validity or enforceability of the
covenants in favour of any other Group Company.
18.4 EFFECT OF SUSPENSION ON RESTRICTED PERIOD
If the Company exercises its right to suspend the Executive's duties
and powers under Clause 5.3 after notice of termination of the
Employment has been given, the aggregate of the period of the
suspension and the period after the Termination Date for which the
covenants in Clause 18 shall apply shall not exceed 12 months and if
the aggregate of the two periods would exceed 12 months, the period
after the Termination Date for which the covenants in Clause 18 shall
apply shall be reduced accordingly.
18.5 SEVERANCE
The restrictions in this Clause 18 (on which the Executive has had the
opportunity to take independent advice, as the Executive hereby
acknowledges) are separate and severable restrictions and are
considered by the parties to be reasonable in all the circumstances. It
is agreed that if any such restrictions, by themselves, or taken
together, shall be adjudged to go beyond what is reasonable in all the
circumstances for the protection of the legitimate interests of the
Company or a Group Company but would be adjudged reasonable if some
part of it were deleted, the relevant restriction or restrictions shall
apply with such deletion(s) as may be necessary to make it or them
valid and enforceable.
19 DISCIPLINARY AND GRIEVANCE PROCEDURE
19.1 DISCIPLINARY PROCEDURES
Any disciplinary action taken in connection with the Employment will
usually be taken in accordance with the Company's normal disciplinary
procedures (which are workplace rules and not contractually binding) a
copy of which is available from the Secretary of the Company.
19.2 GRIEVANCE PROCEDURE
If the Executive wishes to obtain redress of any grievance relating to
the Employment or is dissatisfied with any reprimand, suspension or
other disciplinary step taken by the Company, he shall apply in writing
to the Managing Director, setting out the nature and details of any
such grievance or dissatisfaction.
20 GENERAL
20.1 PROVISIONS WHICH SURVIVE TERMINATION
Any provision of this Agreement which is expressed or intended to have
effect on, or to continue in force after, the termination of this
Agreement shall have such effect, or, as the case may be, continue in
force, after such termination.
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20.2 NO COLLECTIVE AGREEMENTS
There are no collective agreements that directly affect the terms and
conditions of the Employment.
21 DATA PROTECTION
The Executive acknowledges and agrees that the Company is permitted to
hold personal information about the Executive as part of its personnel
and other business records and may use such information in the course
of the Company's or the Group's business. The Executive agrees that the
Company may disclose such information to third parties in the event
that such disclosure is in the Company's view required for the proper
conduct of the Company's business or that of any Group Company. This
Clause applies to information held, used or disclosed in any medium.
22 ENTIRE AGREEMENT
This Agreement band the documents referred to in it, constitute the
entire agreement and understanding of the parties and supersede any
previous agreement between the parties relating to the subject matter
of this Agreement.
23 INDEMNITY & INSURANCE
23.1 INDEMNITY
The Company shall indemnify the Executive in respect of any costs,
claims or liabilities incurred by the Executive in the proper
performance of his duties hereunder.
23.2 INSURANCE
The Executive shall be responsible for ensuring that the company takes
out and maintains directors and officer's liability insurance in
respect of all current directors and officers and to cover all
directors and officers for a period of 3 years after termination of
their contracts.
24 GOVERNING LAW AND JURISDICTION
24.1 GOVERNING LAW
This Agreement shall be governed and construed in accordance with the
law of England & Wales.
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24.2 JURISDICTION
Each party hereby submits to the exclusive jurisdiction of the English
courts as regards any claim, dispute or matter arising out of or in
connection with this Agreement and its implementation and effect.
IN WITNESS WHEREOF this Agreement has been duly signed, sealed and delivered as
a Deed the day and year before written.
SUBSCRIBED for and on behalf of CanArgo Energy Corporation
at Guernsey on September 22, 2000
by /s/ Xxxxx Xxxxxx Chief Executive Officer
____________________________________
Xxxxx Xxxxxx
SIGNED by the said Xxxxxx Xxxxxxxxxx /s/ Xxxxxx Xxxxxxxxxx
_______________________________________
Xxxxxx Xxxxxxxxxx
at Guernsey on September 22, 2000
in the presence of:-
Witness /s/ X. Xxxxxxx __________________________________________
Full Name__________________________________________________________
Address____________________________________________________________
Occupation ________________________________________________________
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THIS AGREEMENT is made on the 22nd day of September 2000
between
(1) CANARGO LIMITED , a Company incorporated under the laws of Guernsey with
Registered Number 32825 and having its Registered Office there at PO Box
291, Commerce House, Les Xxxxxxx, Xx Xxxxx Xxxx, Xxxxxxxx, XX0 0XX (the
"COMPANY"); and
(2) XXXXXX XXXXXXXXXX, residing at Xxxxxxxxxx Xxxxx, Xxxxxx Xxxx, Xxxxxxxx,
Xxxxxxxxxxxxx, Xxxxxxxxx XX0 0XX (the "EXECUTIVE")
WHEREAS the Company wishes to employ the Executive as Technical Manager on the
terms and conditions of this Agreement and the Executive wishes to accept such
employment.
IT IS AGREED as follows:-
1 DEFINITIONS AND INTERPRETATION
1.1 DEFINITIONS
In this Agreement, unless the context otherwise requires:
"BASIC SALARY" means the monthly salary, as specified in Clause 6.1.1
or, as appropriate, the reviewed monthly salary from time to time;
"CONFIDENTIAL INFORMATION" means all information which is identified
or treated by the Company or any Group Company or any of the Group's
clients or customers as confidential or which by reason of its
character or the circumstances or manner of its disclosure is
evidently confidential including (without prejudice to the foregoing
generality) any information about the personal affairs of any of the
directors (or their families) of the Company or any Group Company,
business plans, proposals relating to the acquisition or disposal of
a company or business or proposed expansion or contraction of
activities, maturing new business opportunities, research and
development projects, designs, secret processes, trade secrets,
product or services development and formulae, know-how, inventions,
sales statistics and forecasts, marketing strategies and plans,
costs, profit and loss and other financial information (save to the
extent published in audited accounts), prices and discount structures
and the names, addresses and contact and other details of: (a)
employees and their terms of employment; (b) customers and potential
customers, their requirements and their terms of business with the
Group; and (c) suppliers and potential suppliers and their terms of
business (all whether or not recorded in writing or in electronic or
other format);
"EMPLOYMENT" means the employment of the Executive under this
Agreement or, as the context requires, the duration of that
employment;
"GROUP" means the Company, any holding company or undertaking of the
Company and any subsidiaries and subsidiary undertakings of the
Company or such holding company or undertaking;
"GROUP COMPANY" means any company within the Group;
"INTELLECTUAL PROPERTY RIGHTS" means any and all existing and future
intellectual or industrial property rights in and to any Works,
including all existing and future patents, copyrights, design rights
(whether registered or unregistered), database rights, trade marks
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(whether registered or unregistered), semiconductor topography
rights, plant varieties rights, internet rights/domain names,
know-how and any and all applications for any of the foregoing and
any and all rights to apply for any of the foregoing in and to any
Works;
"MINORITY HOLDER" means a person who either solely or jointly holds
(directly or through nominees) any shares or loan capital in any
company whose shares are listed or dealt in on a recognised
investment exchange (as that term is defined by Section 207(1) of the
Financial Services Act 1986) provided that such holding does not,
when aggregated with any shares or loan capital held by the
Executive's partner and/or his or his partner's children under the
age of 18, exceed 3% of the shares or loan capital of the class
concerned for the time being issued;
"PHI SCHEME" means the permanent health insurance scheme provide by
the Company to the Executive.
"TERMINATION DATE" means the date of termination of the Employment;
and
"WORKS" means any documents, materials, models, designs, drawings,
processes, inventions, formulae, computer coding, methodologies,
know-how, Confidential Information or other work, performed made,
created, devised, developed or discovered by the Executive in the
course of the Employment either alone or with any other person in
connection with or in any way affecting or relating to the business of
the Company or any Group Company or capable of being used or adapted
for use therein or in connection therewith.
1.2 INTERPRETATION AND CONSTRUCTION
Save to the extent that the context or the express provisions of this
Agreement require otherwise, in this Agreement:-
(a) words importing the singular shall include the plural and vice
versa;
(b) words importing any gender shall include all other genders;
(c) any reference to a Clause, the Schedule or part of the Schedule
is to the relevant Clause, Schedule or part of the Schedule of or
to this Agreement unless otherwise specified;
(d) references to this Agreement or to any other document shall be
construed as references to this Agreement or to that other
document as modified, amended, varied, supplemented, assigned,
novated or replaced from time to time;
(e) references to any statute or statutory provision (including any
subordinate legislation) includes any statute or statutory
provision which amends, extends, consolidates or replaces the
same, or which has been amended, extended, consolidated or
replaced by the same, and shall include any orders, regulations,
instruments or other subordinate legislation made under the
relevant statute or statutory provision;
(f) references to a "PERSON" includes any individual, firm, company,
corporation, body corporate, government, state or agency of
state, trust or foundation, or any association, partnership or
unincorporated body (whether or not having separate legal
personality) of two or more foregoing;
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(g) any phrase introduced by the words "INCLUDING", "INCLUDE", "IN
PARTICULAR" or any similar expression shall be construed as
illustrative only and shall not be construed as limiting the
generality of any preceding words;
(h) the words "OTHER" and "OTHERWISE" shall not be construed eiusdem
generis with any foregoing words where a wider construction is
possible.
1.3 HEADINGS
The table of contents and the headings in this Agreement are included
for convenience only and shall be ignored in construing this
Agreement.
2 THE EMPLOYMENT
2.1 APPOINTMENT
Subject to the provisions of this Agreement, the Company employs the
Executive and the Executive accepts employment as Technical Manager of
the Company with effect from 12th September 2000 notwithstanding the
date or dates of this Agreement.
2.2 WARRANTY
The Executive warrants to the Company that by virtue of entering into
this Agreement he will not be in breach of any express or implied
obligation to any third party.
3 DURATION OF THE EMPLOYMENT
3.1 CONTINUOUS EMPLOYMENT
The Executive's continuous period of employment with the Company
commenced on 12th September 2000.
3.2 DURATION
Subject to the provisions of Clauses 3 and 15.1 the Employment shall
continue unless and until terminated at any time by:-
(a) the Company giving to the Executive not less than 6 months'
previous notice in writing to that effect; or
(b) the Executive giving to the Company not less than 6 months'
previous notice in writing to that effect.
3.3 PAYMENT IN LIEU OF NOTICE
The Company shall be entitled, at its sole discretion, to terminate
the Employment immediately in writing either instead of, or at any
time after, notice of termination being given (by either the Company
or the Executive) and in either case to make a payment to the
Executive in lieu of notice.
3.4 COMPULSORY RETIREMENT
Notwithstanding Clause 3.2, the Employment shall terminate without
notice on the Executive's 60th birthday.
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4 HOURS AND PLACE OF WORK
4.1 HOURS OF WORK
The Executive agrees that he shall work such hours as are necessary
for the proper performance of his duties. The Executive shall work a
minimum of 120 hours per month on days to be agreed in advance.
4.2 PLACE OF WORK
The Executive's place of work will initially be at the Company's
premises at 0/0 Xxxxxxxxxxx Xxxxxx, Xxxxxxx, Xxxxxxx or at the
Company's premises at St Xxxxx Port, Guernsey but the Company may
require the Executive to work at any place within Eastern Europe or
the Middle East on either a temporary or an indefinite basis. The
Executive will be given reasonable notice of any change in his
permanent place of work.
5 SCOPE OF THE EMPLOYMENT
5.1 DUTIES OF THE EXECUTIVE
During the Employment the Executive shall:-
(a) undertake and carry out to the best of his ability such duties
and exercise such powers in relation to the Company's business as
may from time to time be assigned to or vested in him by the
Managing Director;
(b) in the discharge of those duties and the exercise of those powers
observe and comply with all lawful resolutions, regulations and
directions from time to time made by, or under the authority of,
the Managing Director and promptly upon request, give a full
account to the Managing Director or a person duly authorised by
the Managing Director of all matters with which he is entrusted;
(c) unless prevented by ill-health, holidays or other unavoidable
cause, devote such of his working time, attention and skill to
the discharge of his duties hereunder as may be reasonably
required; and
(d) faithfully and diligently perform his duties and at all times use
his best endeavours to promote and protect the interests of the
Group.
5.2 RIGHT TO SUSPEND DUTIES AND POWERS
5.2.1 The Company reserves the right in its absolute discretion to suspend
during any notice period or for the purpose of investigating any
matter in which the Executive is implicated or involved all or any of
the Executive's duties and powers on terms it considers expedient or
to require him to perform only such duties, specific projects or tasks
as are assigned to him expressly by the Company (including the duties
of another position) in any case for such period or periods and at
such place or places (including, without limitation, the Executive's
home) as the Company in its absolute discretion deems necessary (the
"GARDEN LEAVE").
5.2.2 The Company may, at its sole discretion, require that during the
Garden Leave the Executive shall not:
(a) enter or attend the premises of the Company or any Group Company;
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(b) contact or have any communication with any client or prospective
client or supplier of the Company or any Group Company in
relation to the business of the Company or any Group Company;
(c) contact or have any communication with any employee, officer,
director, agent or consultant of the Company or any Group Company
in relation to the business of the Company or any Group Company;
(d) remain or become involved in any aspect of the business of the
Company or any Group Company except as required by such
companies; or
(e) work either on his own account or on behalf of any other person.
5.2.3 During Garden Leave, the Executive will continue to receive his Basic
Salary and benefits.
5.2.4 For the avoidance of doubt, the Company may exercise its powers under
this Clause 5.2 at any time during the Employment including after
notice of termination has been given by either party.
6 REMUNERATION
6.1 BASIC SALARY
During the Employment the Company shall pay the Executive a Basic
Salary of (pound)6,000 per month. The Basic Salary shall accrue from
day to day and be payable by credit transfer in equal monthly
instalments on or around the 15th day of each calendar month or
otherwise as arranged from time to time.
6.2 SALARY REVIEW
The Basic Salary shall be reviewed annually with effect from the first
anniversary of the commencement of employment. The Company is not
obliged to increase the Basic Salary at any review.
6.3 BONUS
The Executive shall be entitled to a bonus based upon the performance
criteria agreed between the Executive and the Managing Director.
7 EXPENSES
7.1 OUT-OF-POCKET EXPENSES
The Company shall reimburse to the Executive (against receipts or
other appropriate evidence as the Managing Director may require) the
amount of all out-of-pocket expenses reasonably and properly incurred
by him in the proper discharge of his duties hereunder.
7.2 COMPANY CREDIT/CHARGE CARDS
In the event that the Company issues a Company sponsored credit or
charge card to the Executive he shall use such card only for expenses
reimbursable under Clause 7.1 and shall return it to the Company when
so requested and in any event immediately on termination of the
Employment howsoever arising.
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7.3 MOBILE TELEPHONE
The Company will provide the Executive with a mobile telephone for the
purpose of properly performing his duties. The Company will be
responsible for all payment of all costs in connection with the
telephone, including line rental charges, connection fees, and all
charges. For the avoidance of doubt, the Executive is permitted to
make reasonable use of the mobile telephone for personal purposes. The
telephone will however remain the property of the Company at all times
and the Company may demand the return of the telephone at any time if,
in the opinion of the Company the Executive is making inappropriate
use of the telephone.
8 DEDUCTIONS
The Executive agrees that the Company may deduct from any sums due to
him under this Agreement any sums due by him to the Company including,
without limitation, any debits to his Company credit or charge card
not authorised by the Company, the Executive's pension contributions
(if any), any overpayments, loans or advances made to him by the
Company, the cost of repairing any damage or loss to the Company's
property caused by him and any losses suffered by the Company as a
result of any negligence or breach of duty by the Executive.
9 PENSION SCHEME
The Company does not provide a Company pension scheme.
10 OTHER INSURANCE & BENEFITS
10.1 LIFE ASSURANCE
The Company will provide the Executive with the benefit of death in
service life assurance which, in the event of death itself will pay a
maximum amount of 4 times his annual salary, subject to the rules and
conditions of the policy.
10.2 PHI
Without prejudice to the terms of clause 16, the Executive shall be
entitled to participate in the PHI scheme at the expense of the
Company, always subject to the terms and conditions of the PHI scheme.
10.3 PAYMENTS
10.3.1 All payments under the PHI scheme or the like will be subject to the
deductions required by law.
10.3.2 Where payments are made under the PHI scheme all other benefits
provided to or in respect of the Executive will cease from the start
of those payments (if they have not done so already), unless the
Company is fully reimbursed by the PHI scheme for the cost of
providing the benefit.
10.4 RIGHT TO TERMINATE OR AMEND
The Company reserves the right at its absolute discretion to terminate
or amend at any time the PHI scheme or the Executive's membership of
any scheme. The Company will provide an equivalent benefit unless, in
the reasonable opinion of the Managing Director, it is unable to
secure insurance at reasonable premiums due to the medical condition
of the Executive.
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10.5 MEDICAL EXAMINATIONS AND HEALTH RECORDS
The Executive shall submit to such medical examinations by a doctor
selected by the Managing Director as may reasonably be required by the
Managing Director from time to time. The Executive authorises the
Company to make applications on his behalf for access to any health
records relating to him for the purposes of Section 3 of the Access to
Health Records Xxx 0000, provided that the Executive is given prior
notice of any application being made. Copies of any health records
provided to the Managing Director as a result of any application shall
be made available to the Executive. The fees and expenses incurred in
the provision of any medical examination and of obtaining access to
the health records shall be borne by the Company.
11 ABSENCE
11.1 ABSENCE DUE TO SICKNESS OR INJURY
If the Executive is absent from work due to sickness or injury he
shall:
(a) immediately inform the Company of his sickness or injury;
(b) in respect of a consecutive period of absence lasting less than 8
days (including weekends), send to the Company a
self-certification form in a format stipulated by the Company;
and
(c) in respect of any absence exceeding 7 consecutive days (including
weekends), send to the Company a medical certificate signed by a
doctor covering the further consecutive period of absence.
11.2 PAYMENT OF SALARY DURING ABSENCE
11.2.1 Subject to the Executive complying with the terms of Clause 11.1, the
Company shall continue to pay Basic Salary and other benefits during
any period of absence due to sickness or injury for up to a maximum
period of 10 weeks in any period of 12 consecutive months unless the
Employment is terminated in terms of Clauses 3 or 15. Thereafter the
Company shall pay half basic salary and benefits for a further period
of 10 weeks in that period of 12 consecutive months unless the
employment is terminated in terms of Clauses 3 or 15.
11.2.2 Payment of the Basic Salary in terms of Clause 11.2.1 shall be made
less:
(a) an amount equivalent to any Statutory Sick Pay payable to the
Executive;
(b) any sums which may be received by the Executive under any
insurance policy effected by the Company; and
(c) any other benefits or sums which the Executive receives in terms
of the Employment or under any relevant legislation.
12 OTHER INTERESTS
12.1 RESTRICTIONS ON OTHER ACTIVITIES AND INTERESTS OF THE EXECUTIVE
12.1.1 During the Employment the Executive shall not at any time, without
the prior written consent of the Managing Director, either alone or
jointly with any other person, carry on or be directly or indirectly
employed, engaged, concerned or interested in any business,
prospective business or undertaking other than a Group Company.
Nothing contained in this
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Clause shall preclude the Executive from being a Minority Holder
unless the holding is in a company that is a direct business
competitor of the Company or any Group Company in which case, the
Executive shall obtain the prior consent of the Managing Director to
the acquisition or variation of such holding.
12.1.2 If the Executive, with the consent of the Managing Director, accepts
any other appointment he must keep the Company accurately informed of
the amount of time he spends working under that appointment.
12.2 TRANSACTIONS WITH THE COMPANY
Subject to any regulations issued by the Company, the Executive shall
not be entitled to receive or obtain directly or indirectly any
discount, rebate or commission as a result of any sale or purchase of
goods or services effected or other business transacted (whether or
not by him) by or on behalf of the Company or any Group Company and if
he (or any person in which he is interested) obtains any discount,
rebate or commission he shall account to the Company for the amount
received by him (or a due proportion of the amount received by the
person having regard to the extent of his interest therein).
13 CONFIDENTIALITY AND COMPANY DOCUMENTS
13.1 RESTRICTIONS ON DISCLOSURE/USE OF CONFIDENTIAL INFORMATION
The Executive must not either during the Employment (except in the
proper performance of his duties) or at any time (without limit) after
the Termination Date:
(a) divulge or communicate to any person;
(b) use for his own purposes or for any purposes other than those of
the Company or any Group Company; or
(c) through any failure to exercise due care and diligence, cause any
unauthorised disclosure of;
any Confidential Information. The Executive must at all times use his
best endeavours to prevent publication or disclosure of any
Confidential Information. These restrictions shall cease to apply to
any information which shall become available to the public generally
otherwise than through the default of the Executive.
13.2 PROTECTION OF COMPANY DOCUMENTS AND MATERIALS
All notes, records, lists of customers, suppliers and employees,
correspondence, computer and other discs or tapes, data listings,
codes, keys and passwords, designs, drawings and other documents or
material whatsoever (whether made or created by the Executive or
otherwise and in whatever medium or format) relating to the business
of the Company or any Group Company or any of its or their clients
(and any copies of the same):
(a) shall be and remain the property of the Company or the relevant
Group Company or client; and
(b) shall be handed over by the Executive to the Company or the
relevant Group Company or client on demand by the Company and in
any event on the termination of the Employment.
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14 INVENTIONS AND OTHER WORKS
14.1 EXECUTIVE TO FURTHER INTERESTS OF THE COMPANY
The Company and the Executive agree that the Executive may make or
create Works during the Employment and agree that in this respect the
Executive is obliged to further the interests of the Company and any
Group Company.
14.2 DISCLOSURE AND OWNERSHIP OF WORKS
The Executive must immediately disclose to the Company all Works and
all Intellectual Property Rights. Both the Works and all Intellectual
Property Rights will (subject to sections 39 to 43 of the Patents Act
1977) belong to and be the absolute property of the Company or any
other person the Company may nominate.
14.3 PROTECTION, REGISTRATION AND VESTING OF WORKS
The Executive shall immediately on request by the Company (whether
during or after the Termination Date) and at the expense of the
Company:
(a) apply or join with the Company or any Group Company in applying
for any Intellectual Property Rights or other protection or
registration ("PROTECTION") in the United Kingdom and in any
other part of the world for, or in relation to, any Works;
(b) execute all instruments and do all things necessary for vesting
all Intellectual Property Rights or Protection when obtained and
all right, title and interest to and in the same absolutely and
as sole beneficial owner in the Company or such Group Company or
other person as the Company may nominate; and
(c) sign and execute any documents and do any acts reasonably
required by the Company in connection with any proceedings in
respect of any applications and any publication or application
for revocation of any Intellectual Property Rights or Protection.
14.4 WAIVER OF RIGHTS BY THE EXECUTIVE
The Executive hereby irrevocably and unconditionally waives all rights
under Chapter IV Copyright, Designs and Patents Xxx 0000 and any other
moral rights which he may have in the Works, in whatever part of the
world such rights may be enforceable including:
(a) the right conferred by section 77 of that Act to be identified as
the author of any such Works; and
(b) the right conferred by section 80 of that Act not to have any
such Works subjected to derogatory treatment.
14.5 POWER OF ATTORNEY
The Executive hereby irrevocably appoints the Company to be his
attorney and in his name and on his behalf to execute any such act and
to sign all deeds and documents and generally to use his name for the
purpose of giving to the Company the full benefit of this Clause. The
Executive agrees that, with respect to any third parties, a
certificate signed by any duly authorised officer of the Company that
any act or deed or document falls within the authority hereby
conferred shall be conclusive evidence that this is the case.
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14.6 STATUTORY RIGHTS
Nothing in this Clause 14 shall be construed as restricting the rights
of the Executive or the Company under sections 39 to 43 of the Patents
Xxx 0000.
15 TERMINATION
15.1 TERMINATION EVENTS
Notwithstanding the provisions of Clauses 3 and 11, the Company shall
be entitled, but not bound, to terminate the Employment:
(a) with immediate effect by giving to the Executive notice in
writing at any time after the occurrence of any one or more of
the following events:-
(i) if the Executive is guilty of any gross misconduct or
behaviour which tends to bring himself or the Company or
any Group Company into disrepute; or
(ii) if the Executive commits any material or persistent breach
of this Agreement, or fails to comply with any reasonable
order or direction of the Managing Director, or fails to
perform his duties to the standard required by the Managing
Director; or
(iii) if he becomes insolvent or bankrupt or compounds with or
grants a trust deed for the benefit of his creditors; or
(iv) if his behaviour (whether or not in breach of this
Agreement) can reasonably be regarded as materially
prejudicial to the interests of the Company or any Group
Company, including if he is found guilty of any criminal
offence punishable by imprisonment (whether or not such
sentence is actually imposed); or
(v) has an order made against him disqualifying him from acting
as a company director; or
(vi) if he becomes of unsound mind; or
(b) by giving not less than 6 months' notice in writing if the
Executive has been prevented by reason of ill health, injury or
some other reason beyond his control, from performing his duties
under this Agreement for a period or periods aggregating at least
ninety days in the preceding period of twenty four consecutive
months provided that if at any time during the period of such
notice and before the termination of the Employment the Executive
shall provide a medical certificate satisfactory to the Managing
Director to the effect that he has fully recovered his physical
and/or mental health and that no recurrence of illness or
incapacity can reasonably be anticipated, the Company shall
withdraw the notice.
15.2 NO DAMAGES OR PAYMENT IN LIEU OF NOTICE
In the event of the Employment being terminated in accordance with
Clause 15.1, the Executive shall not be entitled to receive any
payment in lieu of notice nor make any claim against the Company or
any Group Company for damages for loss of office or termination of the
Employment. Regardless of this, the termination shall be without
prejudice to the continuing obligations of the Executive under this
Agreement.
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16 EVENTS UPON TERMINATION
16.1 OBLIGATIONS UPON TERMINATION
Immediately upon the termination of the Employment howsoever arising
or immediately at the request of the Managing Director at any time
after either the Company or the Executive has served notice of
termination of the Employment, the Executive shall deliver to the
Company all Works, materials within the scope of Clause 14.2 and all
other materials and property including credit or charge cards, mobile
telephone, computer equipment, disks and software, passwords,
encryption keys or the like, keys, security pass, letters, stationery,
documents, files, films, records, reports, plans and papers (in
whatever format including electronic) and all copies thereof used in
or relating to the business of the Company or the Group which are in
the possession of or under the control of the Executive.
16.2 LOSS OF SHARE OPTIONS
On the termination of the Employment (whether occurring lawfully or
otherwise), the Executive shall not be entitled to any compensation or
payment for the loss of the Share Options or any benefit which could
have been derived from them, whether the compensation or payment is
claimed by way of a payment in lieu of notice, damages for wrongful
dismissal, breach of contract or loss of office, or compensation for
unfair dismissal, or on any other basis.
17 RESTRICTIONS AFTER TERMINATION
17.1 DEFINITIONS
Since the Executive is likely to obtain Confidential Information in
the course of the Employment and personal knowledge of and influence
over suppliers, customers, clients and employees of the Company and
Group Companies, the Executive hereby agrees with the Company that in
addition to the other terms of this Agreement and without prejudice to
the other restrictions imposed upon him by law, he will be bound by
the covenants and undertakings contained in Clauses 17.2 to 17.5. In
this Clause 17, unless the context otherwise requires:
"CRITICAL EMPLOYEE" means any person who was a director, employee or
consultant of the Company at any time within the Relevant Period who
by reason of that position and in particular his seniority and
expertise or knowledge of Confidential Information or knowledge of or
influence over the clients, customers or contacts of the Company is
likely to cause damage to the Company if he were to leave the
employment of the Company and become employed by a competitor of the
Company;
"RELEVANT PERIOD" means the period of twelve months immediately
preceding the Termination Date;
"RESTRICTED AREA" means any country in the world where the Company or
any Group Company has a valid licence for the exploration and/or
production of oil and/or gas;
"RESTRICTED PERIOD" means the period of 12 months commencing on the
Termination Date.
17.2 RESTRICTIVE COVENANTS
The Executive confirms that, neither during the Employment nor during
the Restricted Period, without the prior written consent of the
Company (such consent not to be
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unreasonably withheld), whether by himself, through his employees or
agents or otherwise and whether on his own behalf or on behalf of any
person, directly or indirectly, he will not:
(a) so as to compete with the Company in the Restricted Area; be
employed or engaged or at all interested in (except as a Minority
Holder) a business or person which is involved in the business of
exploration or production of oil and/or gas, if the business is
or seeks to be in competition with the Company;
(b) solicit or induce or endeavour to solicit or induce any person
who, on the Termination Date, was a Critical Employee (and with
whom the Executive had dealings during the Relevant Period) to
cease working for or providing services to the Company, whether
or not any such person would thereby commit a breach of contract;
(c) employ or otherwise engage any Critical Employee in the business
of exploration or production of oil and/or gas if that business
is, or seeks to be, in competition with the Company; or
(d) solicit or induce or endeavour to solicit or induce any
Government body or agency or any other third party in the
Restricted Area to cease to deal with the Company and shall not
interfere in any way with any relationship between any such
Government body or agency or other third party and the Company.
17.3 APPLICATION OF RESTRICTIVE COVENANTS TO OTHER GROUP COMPANIES
Clause 17.2 shall also apply as though references to the "COMPANY"
include references to each Group Company in relation to which the
Executive has in the course of the Employment or by reason of
rendering services to or holding office in such Group Company:
(a) acquired knowledge of its trade secrets or Confidential
Information; or
(b) had personal dealings with its Customers or Prospective
Customers; or
(c) supervised directly or indirectly employees having personal
dealings with its Customers or Prospective Customers;
but so that references in Clause 17.1 to the "Company" shall for this
purpose be deemed to be references to the relevant Group Company. The
obligations undertaken by the Executive pursuant to this Clause 17.3
shall, with respect to each Group Company, constitute a separate and
distinct covenant and the invalidity or unenforceability of any such
covenant shall not affect the validity or enforceability of the
covenants in favour of any other Group Company.
17.4 EFFECT OF SUSPENSION ON RESTRICTED PERIOD
If the Company exercises its right to suspend the Executive's duties
and powers under Clause 5.3 after notice of termination of the
Employment has been given, the aggregate of the period of the
suspension and the period after the Termination Date for which the
covenants in Clause 17 shall apply shall not exceed 12 months and if
the aggregate of the two periods would exceed 12 months, the period
after the Termination Date for which the covenants in Clause 17 shall
apply shall be reduced accordingly.
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17.5 SEVERANCE
The restrictions in this Clause 17 (on which the Executive has had the
opportunity to take independent advice, as the Executive hereby
acknowledges) are separate and severable restrictions and are
considered by the parties to be reasonable in all the circumstances.
It is agreed that if any such restrictions, by themselves, or taken
together, shall be adjudged to go beyond what is reasonable in all the
circumstances for the protection of the legitimate interests of the
Company or a Group Company but would be adjudged reasonable if some
part of it were deleted, the relevant restriction or restrictions
shall apply with such deletion(s) as may be necessary to make it or
them valid and enforceable.
18 DISCIPLINARY AND GRIEVANCE PROCEDURE
18.1 DISCIPLINARY PROCEDURES
Any disciplinary action taken in connection with the Employment will
usually be taken in accordance with the Company's normal disciplinary
procedures (which are workplace rules and not contractually binding) a
copy of which is available from the Secretary of the Company.
18.2 GRIEVANCE PROCEDURE
If the Executive wishes to obtain redress of any grievance relating to
the Employment or is dissatisfied with any reprimand, suspension or
other disciplinary step taken by the Company, he shall apply in
writing to the Managing Director, setting out the nature and details
of any such grievance or dissatisfaction.
19 GENERAL
19.1 PROVISIONS WHICH SURVIVE TERMINATION
Any provision of this Agreement which is expressed or intended to have
effect on, or to continue in force after, the termination of this
Agreement shall have such effect, or, as the case may be, continue in
force, after such termination.
19.2 NO COLLECTIVE AGREEMENTS
There are no collective agreements that directly affect the terms and
conditions of the Employment.
20 DATA PROTECTION
The Executive acknowledges and agrees that the Company is permitted to
hold personal information about the Executive as part of its personnel
and other business records and may use such information in the course
of the Company's or the Group's business. The Executive agrees that
the Company may disclose such information to third parties in the
event that such disclosure is in the Company's view required for the
proper conduct of the Company's business or that of any Group Company.
This Clause applies to information held, used or disclosed in any
medium.
21 ENTIRE AGREEMENT
This Agreement band the documents referred to in it, constitute the
entire agreement and understanding of the parties and supersede any
previous agreement between the parties relating to the subject matter
of this Agreement.
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22 TAX
The Executive shall be responsible for the payment of all tax whether
of a local or national basis which may be due in respect of the Basic
Salary and benefits provided hereunder. It is the Executive's
responsibility to ascertain, and if necessary meet, his liability to
tax in Georgia, Guernsey or in any other country in which he carries
out duties under this Agreement.
23 INDEMNITY & INSURANCE
23.1 INDEMNITY
The Company shall indemnify the Executive in respect of any costs,
claims or liabilities incurred by the Executive in the proper
performance of his duties hereunder.
23.2 INSURANCE
The Executive shall be responsible for ensuring that the company takes
out and maintains directors and officer's liability insurance in
respect of all current directors and officers and to cover all
directors and officers for a period of 3 years after termination of
their contracts.
24 JURISDICTION
Each party hereby submits to the non-exclusive jurisdiction of the
Guernsey courts as regards any claim, dispute or matter arising out of
or in connection with this Agreement and its implementation and
effect.
IN WITNESS WHEREOF this Agreement has been duly signed, sealed and delivered as
a Deed the day and year before written.
SUBSCRIBED for and on behalf of CanArgo Limited.
at Guernsey on September 22 2000
Xxxxx Xxxxxx
by .................................................. Managing Director
/s/ Xxxxx Xxxxxx
/s/ Xxxxxx Xxxxxxxxxx
SIGNED by the said Xxxxxx Xxxxxxxxxx ..........................................
Xxxxxx Xxxxxxxxxx
at Guernsey on September 22 2000
in the presence of:--
/s/ X. Xxxxxxx
Witness .......................................................
Full Name ......................................................
Address .........................................................
.................................................................
Occupation ......................................................
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