Employment Agreement, dated January 3, 2020, between the Company and Peter Buhler
This Employment Agreement (Employment Agreement) is entered into as of January 3, 2020, by and between Quotient Limited (Employer), or such affiliate of Employer as its Chairman of the Board of Directors of the Employer (the Board) may designate, and Peter Buhler (Executive) (collectively, the Parties).
Employer desires assurance of the association and services of Executive in order to retain Executives experience, abilities, and knowledge, and is therefore willing to engage Executives services on the terms and conditions set forth below.
Executive desires to be employed by Employer and is willing to do so on the terms and conditions set forth below.
It is expressly agreed between the Parties that this Employment Agreement shall be subject to the competent authorities issuing the work and residence permits required for the Executive under Swiss law.
In consideration of the above recitals and of the mutual promises and conditions in this Employment Agreement, the Parties agree:
DUTIES AND AUTHORITY; OBLIGATIONS
Duties. Employer employs Executive as its Chief Financial Officer and Executive accepts such employment. Executive will perform all of the employment duties, responsibilities and job functions consistent with such a management position and such other duties and responsibilities deemed necessary or appropriate by Employers Chief Executive Officer (the CEO) or the Board of Directors of the Employer (the Board) (collectively, the Employment Duties). Executive will exercise the authority consistent with those duties and responsibilities. Such Employment Duties may require the performance of work beyond customary office hours and involve varying work period hours and working conditions.
Obligations. Executive shall at all times during the Employment Term:
devote the whole of his working time, attention, skill, best efforts and ingenuity to the Employment Duties;
comply fully with, implement and enforce all Employer rules, regulations, policies and procedures from time to time in force;
perform the Employment Duties faithfully and diligently;
follow all lawful and reasonable directions of the CEO and the Board and observe such restrictions or limitations as may from time to time be imposed by the CEO or the Board upon the performance of the Employment Duties;
use best efforts to promote the interests of Employer and not do or willingly permit to be done anything that is harmful to those interests; and
keep Employers CEO and the Board fully informed (in writing if so requested) of the conduct of its business and affairs and provide such explanations as the CEO or the Board may require.
EXECUTIVES COMPENSATION, PERQUISITES AND BENEFITS
Compensation. Employer agrees to pay Executive a base salary at the rate of three hundred and eighty thousand Swiss Francs (CHF 380,000) per annum (the Base Compensation). The Base Compensation will be paid in thirteen equal installments per annum, and in accordance with Employers standard payroll practices. Employer will withhold from the Base Compensation all payroll taxes and other deductions required by applicable law (including, but not limited to, with respect to social security) or authorized by Executive. The Base Compensation will be reviewed on the fifteen-month anniversary of the Commencement Date (as defined below) and thereafter on an annual basis and may be adjusted as determined by the Board in its sole discretion. The undertaking to review Executives Base Compensation shall not create any entitlement to an increase in base salary. Executive will not be eligible for overtime pay for work performed outside Employers regular business hours.
Benefits. During the Employment Term, Executive shall be permitted to participate in any group life, hospitalization or disability insurance plans, health programs, retirement plans, fringe benefit programs and similar benefits that may be available to other senior executives of Employer located in Switzerland, generally on the same terms as such other executives, in each case to the extent that Executive is eligible under the terms of such plans or programs (the Employee Benefits). Employer may supply a credit card to Executive to be used solely for expenses incurred in carrying out the Employment Duties. The card must be returned by Executive to Employer immediately upon request by Employer. Employee Benefits for Executive will be provided at Employers expense except for any applicable premium contributions, co-pay obligations and taxes on reportable income applicable to Executives participation. Employer may adopt, amend, change, substitute, replace, suspend or terminate any of the Employee Benefits during the Employment Term in its sole discretion.
Specific Benefits. Without limiting the generality of Section 2.2, Employer shall make available to Executive twenty-five (25) vacation days per calendar year, and the standard legal holidays for the Executives base employment location specified in Section 3 (Place and Hours of Employment). Prior to use of a vacation day, Executive shall receive the prior approval of the CEO.
Perquisites. During the Employment Term, Employer will provide to Executive the following perquisites (with its business-related expenses to be paid by Employer):
Use of a cell phone; and
A yearly car allowance of CHF 16,800.
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Equity Grants/Bonus Schemes. In the Boards sole discretion, Executive will be eligible to participate in Employers ex gratia Bonus Schemes, in accordance with the terms of any ex gratia bonus plan documents, award agreements, and any notices provided by Employer to Executive, including such terms as set forth on the attached Schedule 1. The assessment of the eligibility criteria as well as any actual payment under such ex gratia Bonus Schemes will be decided by the Employer in its absolute discretion. Any payment made in a given year shall not create any entitlement to any future payment under the Employers ex gratia Bonus Schemes. In addition, Executive shall be eligible to receive an equity grant after commencing employment with the Employer in accordance with the terms set forth on the attached Schedule 1.
PLACE AND HOURS OF EMPLOYMENT
Executives employment location during the Employment Term will be Eysins, Switzerland; provided, however, that Employer may from time to time require Executive to travel and to be at other locations as necessary or required to fulfill Executives responsibilities. Executive shall work during Employers regular business hours and any additional hours necessary to fulfill the Employment Duties.
The term of Executives employment shall commence on February 5, 2020 (the Commencement Date) and shall continue until terminated in accordance with Section 9 below (such term, the Employment Term). For the avoidance of doubt, there is no probationary period with respect to the term of Executives employment. Prior to and after the Commencement Date, Executive agrees to participate in investor communications as reasonably requested by the Employer.
The Executives employment under this agreement will terminate automatically and without notice at the end of the month on which the Executive reaches the ordinary retirement age under Swiss law.
Employer will reimburse Executive promptly for reasonable, necessary, customary and usual business expenses, including travel, entertainment, parking, business meetings and professional dues incurred during the Employment Term and substantiated in accordance with the policies and procedures established from time to time by Employer.
EXECUTIVES OUTSIDE BUSINESS ACTIVITIES
Executive is expected to devote Executives full attention to the business interests of Employer; provided, however, that Executive may devote reasonable time and effort to community and charitable activities and organizations, so long as they do not interfere with performance of the Employment Duties.
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Executive represents to Employer that Executive has no other outstanding commitments inconsistent with or in conflict with or that may interfere with any of the terms of this Employment Agreement or the services to be rendered under it.
Definition of Employer Inventions. Employer Inventions means all ideas, methodologies, inventions, discoveries, developments, designs, improvements, formulas, programs, processes, techniques, know-how, research and data (whether or not patentable or registerable under patent, copyright a similar statute and including all rights to obtain, register, perfect and enforce those rights), that Executive learns of, conceives, develops or creates alone or with others during Executives past, present or future association with or employment by Employer (whether or not conceived, developed or created on behalf of Employer during regular working hours). Employer Inventions also includes anything that may be conceived, developed, or created, by Executive, either alone or with others, during Executives past, present or future association with or employment by Employer (whether or not conceived developed, or created during regular working hours), and with respect to which the equipment, supplies, facilities, or trade secret information of Employer was used, or that relate at the time of conception or reduction to practice of the invention to the business of Employer or to Employers actual or demonstrable anticipated research and development, or that result from any work performed by Executive for Employer.
Disclosure of Employer Inventions. Whether upon Employers request or voluntarily, Executive will promptly disclose to Employer or its designee during Executives employment with Employer and for one year thereafter all Employer Inventions that Executive has created, contributed to or knows about, regardless of the nature of that knowledge, and regardless of whether such Employer Invention, or any aspect of such Employer Invention, has been described, committed to writing, or reduced to practice, in whole or part by any other person. At all other times, Executive will treat every Employer Invention as Confidential Information (as defined in and in accordance with Section 13).
Assignment and Disclosure of Inventions. Executive hereby assigns to Employer all right, title and interest to all Employer Inventions, which will be the sole and exclusive property of Employer, whether or not subject to patent, copyright, trademark or trade secret protection. Executive also acknowledges that all original works of authorship that are made by Executive (solely or jointly with others), within the scope of Executives employment with Employer, and that are protectable by copyright are works made for hire, as that term is defined in the United States Copyright Act. To the extent that any such works, by operation of law, cannot be works made for hire, Executive hereby assigns to Employer all right, title, and interest in and to such works and to any related copyrights. The consideration for such assignment and the assistance provided in this Section 7.3 is the normal compensation due Executive by virtue of service to Employer. Executive will also disclose to Employer all inventions made, discovered, conceived, reduced to practice, or developed by Executive, either alone or jointly with others, within six (6) months after the termination of employment with Employer which resulted, in whole or in part, from Executives prior employment by Employer. Such disclosures will be received by Employer in confidence to the extent such inventions are not assigned to Employer pursuant to this Section 7.3.
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Additional Instruments. Executive will promptly execute, acknowledge and deliver to Employer all additional instruments or documents that Employer determines at any time to be necessary to carry out the intentions of this Section 7. Furthermore, whether during or after Executives employment with Employer. Executive will promptly perform any acts deemed necessary or desirable by Employer, at Employers expense, to assist it in obtaining, maintaining, defending and enforcing any rights and/or assignment of an Employer Invention. Executive hereby irrevocably designates and appoints Employer and its duly authorized officers and agents, as Executives agent and attorney-in-fact to act for, on behalf of and instead of Executive, to execute and file any documents, applications or related findings and to do all other lawfully permitted acts in furtherance of the purposes set forth above in this Section 7.4, including, without limitation, the perfection of assignment and the prosecution and issuance of patents, patent applications, copyright applications and registrations, trademark applications and registrations, or other rights in connection with such Employer Inventions and improvements thereto with the same legal force and effect as if executed by Executive.
Pre-existing Inventions. Executive will retain all right, title and interest in and to inventions that Executive created and owned prior to service to Employer as listed in the attached Schedule 2.
INDEMNIFICATION OF EXECUTIVE
Employer will, to the maximum extent permitted by Employers bylaws and applicable law, indemnify and hold Executive harmless for any acts or decisions made in good faith while performing services for Employer; provided, however, that acts determined by the trier of facts to be acts of gross negligence or willful misconduct will not be deemed to be in good faith. To the same extent, Employer will pay, and subject to any legal limitations (including the obligation to repay such advances), advance all expenses, including reasonable attorney fees and costs of court-approved settlements, actually and necessarily incurred by Executive in connection with the defense of any action, suit or proceeding and in connection with any appeal, which has been brought against Executive by reason of Executives service to Employer while acting in good faith.
TERMINATION OF AGREEMENT/EMPLOYMENT
Voluntary Termination by Executive. Executive may voluntarily terminate this Employment Agreement for any reason and at any time; provided that six (6) months advance written notice is given to Employer. Executives employment and the Employment Term will expire on the final day of the month in which the notice period expires. Executive will be entitled to receive the Base Compensation and Employee Benefits then in effect (as amended, changed, substituted, replaced, suspended or terminated) while performing services for the balance of the Employment Term. Notwithstanding the foregoing, Employer may release Executive from the obligation to work through the end of the Employment Term and instead pay Executive until the end of the Employment Term i.e. an amount equal to Executives Base Compensation and Employee Benefits until the end of the Employment Term.
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Termination by Employer Without Cause. Employer may terminate this Employment Agreement and Executives employment without Cause upon six (6) months advance written notice provided to Executive. Upon such a termination of this Employment Agreement, Executives employment and the Employment Term will expire on the final day of the month in which the notice period expires. Employers total liability to Executive under this Section 9.2 will be limited to the payment of Executives Base Compensation and provision of Employee Benefits then in effect (as amended, changed, substituted, replaced, suspended or terminated) through and including the day of termination.
Termination by Employer for Cause. Employer may immediately terminate this Employment Agreement and Executives employment for Cause at any time without notice to Executive. Cause is defined for purposes of this Section 9.3 as: (a) gross negligence or willful misconduct by Executive in the performance of the Employment Duties; (b) insubordination by Executive to Employer or a willful refusal by Executive to perform the Employment Duties; (c) commission by Executive of a felony, act of moral turpitude or other act, which prevents Executive from effectively performing the Employment Duties or is likely to affect the interests of Employer; (d) breach of any of the provisions of this Employment Agreement including, without limitation, Section 13 or 14; (e) any unexcused absence by Executive from the Employment Duties for a period of five (5) consecutive days; (f) Executives inability to enter into this Employment Agreement or perform the Employment Duties as provided in Section 1 herein; or (g) any act of dishonesty by Executive relating to Employer, its employees or otherwise, including, without limitation, fraud, embezzlement or misappropriation relating to significant amounts. Employers total liability to Executive under this Section 9.3 will be limited to the payment of Executives Base Salary and provision of Employee Benefits then in effect (as amended, changed, substituted, replaced, suspended or terminated) through and including the effective date of termination.
Termination Because of Disability of Executive. Employer may terminate this Employment Agreement and Executives employment on six (6) months prior written notice if Executive is and has been unable to perform Executives duties under this Employment Agreement in Executives normal and regular manner during a period or periods aggregating at least twenty-six (26) weeks for any period of twelve (12) months due to physical or mental disability or injury. Employers total liability to Executive under this Section 9.4 will be limited to the payment of Executives Base Compensation and provision of Employee Benefits then in effect (as amended, changed, substituted, replaced, suspended or terminated) through and including the day of termination as a result of disability.
Termination on Death of Executive. If Executive dies during the term of this Employment Agreement, this Employment Agreement will be terminated on the day of Executives death. Employers total liability to Executive under this Section 9.5 will be (subject to applicable law) limited to the payment of Executives Base Compensation and provision of Employee Benefits then in effect (as amended, changed, substituted, replaced, suspended or terminated) through and including the day of Executives death.
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RESIGNATION OF OFFICE
At any time after notice is given by Employer or Executive to terminate Executives employment with Employer, Executive shall, at the request of Employers Board of Directors, resign from all offices Executive may hold as a director or officer of Employer and from all other appointments or offices that Executive holds as nominee or representative of Employer.
AGREEMENT SURVIVES MERGER OR DISSOLUTION
This Employment Agreement will survive any merger of Employer with any other entity, regardless of whether Employer is the surviving or resulting corporation, and any transfer of all or substantially all of Employers assets to any other entity and to any such successor entitys subsequent successors or assigns. In the event of any such merger or transfer of assets, the provisions of this Employment Agreement will be binding on and inure to the benefit of the surviving business entity or the business entity to which such assets will be transferred.
This Employment Agreement may not be assigned by Executive. Employer may assign this Employment Agreement without the consent of Executive.
Definition of Confidential Information. Confidential Information means all nonpublic or proprietary information relating to Employers business or that of any Employer vendor or customer. Examples of Confidential Information include, but are not limited to, software (in source or object code form), databases, algorithms, processes, designs, prototypes, methodologies, reports, specifications, information regarding Employer Inventions, as defined in Section 7.1, products sold, distributed or being developed by Employer, and any other non-public information regarding Employers current and developing technology; information regarding vendors and customers, prospective vendors and customers, clients, business contacts, employees and consultants, prospective and executed contracts and subcontracts, marketing and sales plans, strategies or any other plans and proposals used by Employer in the course of its business; and any non-public or proprietary information regarding Employer or Employers present or future business plans, financial information, or any intellectual property, whether any of the foregoing is embodied in hard copy, computer-readable form, electronic or optical form, or otherwise.
Executives Use of Confidential Information. From the Commencement Date and at all times thereafter, Executive will maintain the confidentiality of the Confidential Information. Executive will not, without Employers prior written consent, directly or indirectly: (i) copy or use any Confidential Information for any purpose not within the
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|scope of Executives work on Employers behalf; or (ii) show, give, sell, disclose or otherwise communicate any Confidential Information to any person or entity other than Employer unless such person or entity is authorized by Employer to have access to the Confidential Information in question. These restrictions do not apply if the Confidential Information has been made generally available to the public by Employer or becomes generally available to the public through some other normal course of events. All Confidential Information prepared by or provided to Executive is and will remain Employers property or the property of Employer customer to which they belong.|
Return of Material. Upon request of Employer or upon termination (whether voluntary or involuntary), Executive will immediately turn over to Employer all Confidential Information, including all copies, and other property belonging to Employer or any of its customers, including documents, disks, or other computer media in Executives possession or under Executives control. Executive will also return any materials that contain or are derived from Confidential Information, or are connected with or relate to Executives services to Employer or any of its customers.
NONCOMPETITION AND NONSOLICITATION COVENANTS
Agreement Not to Compete. During the period between the Commencement Date and one (1) year from and after the termination of Executives employment with Employer for any reason, Executive will not, within the Territory, engage or participate, either individually or as an employee, consultant or principal, member, partner, agent, trustee, officer, manager, director, investor or shareholder of a corporation, partnership, limited liability company, or other business entity, in any activity that competes with products or services related to transfusion diagnostics provided by Employer or any subsidiary or affiliated company during the one (1) year period prior to the date of the termination of employment. For the purpose of this Employment Agreement, Territory means Switzerland and the United States of America. Nothing in this Section 14.1 will be deemed to preclude Executive from holding less than 1% of the outstanding capital stock of any corporation whose shares are publicly traded.
Agreement Not to Solicit Executives. During the period between the Commencement Date and one (1) year from and after the termination of Executives employment with Employer for any reason, Executive will not, directly or indirectly, alone or on behalf of any person or business entity, hire or aid, encourage, advise, solicit, induce or attempt to induce any employee of Employer, or any subsidiary or affiliated companies, to leave his or her employment with Employer.
Agreement Not to Solicit Customers and Suppliers. During the period between the Commencement Date and one (1) year from and after the termination of Executives employment with Employer for any reason, Executive will not, directly or indirectly, alone or on behalf of any person or business entity, cause or attempt to cause any customer, prospective customer, vendor, supplier, or other business contact of Employer, or any subsidiary or affiliated companies (i) to terminate, limit, or in any manner adversely modify or fail to enter into any actual or potential business relationship with Employer, or any subsidiary or affiliated companies or (ii) to enter into or expand any actual or potential business relationship with any competitor of Employer, or any subsidiary or affiliated companies.
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Blue Pencil Doctrine. If the duration of, the scope of, or any business activity covered by any provision of this Section 14 is in excess of what is determined to be valid and enforceable under applicable law, such provision will be construed to cover only that duration, scope or activity that is determined to be valid and enforceable, and Employer and Executive consent to the judicial modification of the scope and duration of the restrictions in this Section 14 in any proceeding brought to enforce such restrictions so as to make them valid, reasonable and enforceable. Executive hereby acknowledges that this Section 14 will be given the construction, which renders its provisions valid and enforceable to the maximum extent not exceeding its express terms, possible under applicable law.
The parties agree that Executives obligations under Sections 7 (Employer Inventions), 13 (Confidential Information), and 14 (Noncompetition and Nonsolicitation Covenants) of this Employment Agreement will survive the termination of this Employment Agreement and termination of Executives employment with Employer, regardless of when such termination may occur and regardless of the reasons for such termination.
EFFECT OF EMPLOYERS PERSONNEL POLICIES, RULES, AND PRACTICES
Executive is entitled to the benefit of, and is obligated to perform, all of Executives responsibilities under Employers personnel policies, rules, and practices in effect from time to time for all of its employees during the Employment Term.
The Parties agree that damages in the event of breach by Executive of Sections 7 (Employer Inventions), 13 (Confidential Information), or 14 (Noncompetition and Nonsolicitation Covenants) of this Employment Agreement would be difficult, if not impossible, to ascertain, and it is agreed that Employer, in addition to and without limiting any other remedy or right it may have, will have the right to an immediate injunction or other equitable relief in any court of competent jurisdiction enjoining any threatened or actual breach without the requirement to post a bond. The existence of this right will not preclude Employer from pursuing any other rights and remedies at law or in equity that Employer may have, including recovery of damages.
This Employment Agreement contains the entire agreement between the Parties pertaining to the subject matter addressed in this Employment Agreement. No oral modifications, express or implied, may alter or vary the terms of this Employment Agreement.
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No modifications, amendments, deletions, additions, or novations to or of this Employment Agreement will be effective unless they are completely and unambiguously contained in a writing signed by Executive and by an authorized officer of Employer.
CHOICE OF LAW; VENUE
This Employment Agreement and any dispute arising from the relationship between the Parties will be governed by and construed under and according to the laws of Switzerland without regard to its conflict of laws provisions. Any dispute arising out of or in relation to this Employment Agreement shall be subject to the exclusive jurisdiction of the Swiss Courts of Vaud.
Any notice to Employer required or permitted under this Employment Agreement will be given in writing to Employer, either by personal service, facsimile, or by registered or certified mail, postage prepaid. Any notice to Executive will be given in a like manner and, if mailed, will be addressed to Executive at Executives home address then shown in Employers files. For the purpose of determining compliance with any time limit in this Employment Agreement, a notice will be deemed to have been duly given (a) on the date of service, if served personally on the party to whom notice is to be given, (b) on the same business day given by facsimile, e-mail, or other electronic transmission, or (c) on the second (2nd) business day after mailing, if mailed to the party to whom the notice is to be given in the manner provided in this Section. As of the date this Employment Agreement is executed, notice is to be given at the following addresses:
PO Box 1075, Elizabeth House
9 Castle Street
Jersey JE4 2QP
Attn: Franz Walt
Place du Village 4
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B1, Business Park Terre Bonne
Route de Crassier 13
Attn: Franz Walt
Employer shall be entitled to withhold from any payments or deemed payments any amount of tax withholding it determines to be required by law.
SOCIAL SECURITY CONTRIBUTIONS
The Executive and the Employer shall each pay half of the contributions which are owed as a matter of law for AVS (Old Age and Survivors Insurance), AI (Invalidity Insurance), APG (Loss of Earnings Insurance), AC (Unemployment Insurance). The Executives part of the contributions are deducted by the Employer from his Base Compensation and any other appropriate cash payment.
The Executive shall participate in the Employers pension plan. The contributions and the benefits are determined by the rules and regulations of the pension plan, as amended from time to time. The Executives contributions are deducted by the Employer from his Base Compensation and any other appropriate cash payment.
In case of the Executives inability to perform his duties under this Employment Agreement due to illness, the Executive shall receive his salary according to the terms and conditions of the insurance for loss of earnings due to illness. The Employer shall deduct the Executives contributions if any from his Base Compensation. If there is no insurance for loss of earnings due to illness, the Employers obligation to continue to pay the Executives salary shall be determined by Art. 324a of the Swiss Code of Obligations.
Executive is insured against occupational as well as non-occupational accidents. The contributions for the non-occupational accident insurance shall be paid by the Employer.
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As Executives employer, Employer needs to keep and process information about Executive for employment purposes (the Personal Data). The Personal Data held and processed by the Employer will be used for the Employers management and administrative use only. The Employer shall keep and process the Executives Personal Data to be able to pursue its business activities and manage its contractual relationship with Executive effectively, lawfully and appropriately, both during the employment relationship under this Employment Agreement and after its end. The holding and processing of Executives Personal Data by Employer is required in particular for Employer to be able (i) to comply with its obligations under this Employment Agreement and towards other employees, (ii) to comply with any legal requirements imposed on Employer, (iii) to pursue its legitimate interests and (iv) as the case may be, to protect Employers legal position in the event of legal proceedings. While holding and processing Personal Data, Employer shall at all times comply with the data protection principles set out in the Swiss Federal Act on Data Protection and the European General Data Protection Regulation. Further information on the Personal Data held and processed by Employer and Executives rights in relation thereto shall be available upon request addressed to Employers human resources department.
Subject to Section 14.4, if any provision of this Employment Agreement is held invalid or unenforceable, the remainder of this Employment Agreement will nevertheless remain in full force and effect. If any provision is held invalid or unenforceable with respect to particular circumstances, it will nevertheless remain in full force and effect in all other circumstances.
The headings in this Employment Agreement are inserted for convenience only; are not part of this Employment Agreement, will not in any manner affect the meaning of this Employment Agreement or any paragraph, term, and/or provision of this Employment Agreement; and will not be deemed or interpreted to be a part of this Employment Agreement for any purpose.
The language of this Employment Agreement will, for any and all purposes, be construed as a whole, according to its fair meaning, not strictly for or against Executive, on the one hand, or Employer, on the other hand, and without regard to the identity or status of any person or persons who drafted all or any part of this Employment Agreement.
No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this Employment Agreement will be effective unless it is in writing and signed by the party waiving the breach, failure, right, or remedy. No waiver of any breach, failure, right, or remedy will be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, nor will any waiver constitute a continuing waiver unless the writing so specifies.
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WARRANTY AND FREEDOM TO CONTRACT
Executive warrants that he is under no disability that would prevent Executive from entering into this Employment Agreement and from complying with all of its provisions to their fullest extent. If Executive is enjoined or otherwise prevented by judicial or administrative determination from complying with the terms of this Employment Agreement, then Employer may terminate this Employment Agreement and Executives employment immediately without incurring any future liability, and for purposes of Sections 9.1 and 9.3 such termination will be for Cause.
EXECUTION IN COUNTERPARTS
This Employment Agreement may be executed in counterparts, each of which will be deemed an original but all of which together will constitute one and the same instrument.
FAXED OR PHOTOCOPIED SIGNATURES
A faxed or photocopied signature will have the same effect as an original signature.
RIGHT TO COUNSEL
The undersigned Executive has read the foregoing Employment Agreement and has taken the time necessary to review completely and fully understand it. The undersigned Executive has had the unrestricted right and opportunity to have each and every paragraph, term, and provision of the foregoing Employment Agreement and each and every result and consequence of its execution by the undersigned Executive fully explained to Executive by legal counsel selected and retained solely by Executive.
All amounts payable under this Agreement or otherwise by Employer to the Executive shall be subject to the terms of Employers clawback policies as in effect from time to time.
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The undersigned fully understands the foregoing Employment Agreement, accepts, and agrees to each and every paragraph, term, and provision contained in it, and fully accepts and agrees to it as binding Executive for any and all purposes whatsoever.
|Employer: QUOTIENT LIMITED|
/s/ Franz Walt
|Name: Franz Walt|
|Title: Chief Executive Officer|
/s/ Peter Buhler
|Name: Peter Buhler|
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BONUS AND EQUITY GRANT
Discretionary Bonus. During the Employment Term, in addition to the Base Compensation, for each fiscal year of Employer ending during the Employment Term, Executive shall have the opportunity to receive an annual ex gratia bonus, which may be awarded in Employers sole discretion, in an amount equal to up to sixty percent (60%) of the Base Compensation (the Discretionary Bonus) then in effect. The Discretionary Bonus shall be based on annual performance criteria and the achievement of personal objectives by Executive, which shall be mutually agreed upon by Employer and Executive and assessed by Employer in its sole discretion. The Discretionary Bonus shall be paid to Executive as soon as practicable, but in no event later than 120 days following the fiscal year to which it relates. The Discretionary Bonus is shall be paid to the Executive only if the Executive is employed by Employer on the date of payment.
Equity Grant. Effective as of the Commencement Date, Executive shall be granted 50,000 restricted stock units (the RSUs) and 25,000 share options (the Share Options). The RSUs and the Share Options shall vest in three equal installments on the first, second and third anniversaries of the Commencement Date, provided, however, that any RSUs or Share Options not vested shall be forfeited upon termination of Executives employment.
Notwithstanding the above, upon a change of control (substantially as defined below) of Employer, the RSUs and the Share Options shall vest and become non-forfeitable. For purposes of the RSU and Share Option grants (or such other grant as may be decided as appropriate pursuant to this paragraph), subject to specific terms set forth in any documentation of such award, a change of control is intended generally to refer to the happening of any of the following:
any person, including a group (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the Exchange Act)), but excluding the Employer, any entity controlling, controlled by or under common control with the Employer, any trustee, fiduciary or other person or entity holding securities under any employee benefit plan or trust of the Employer or any such entity, and, with respect to any particular grantee, the grantee and any group (as such term is used in Section 13(d)(3) of the Exchange Act) of which the grantee is a member), is or becomes the beneficial owner (as defined in Rule 13(d)(3) under the Exchange Act), directly or indirectly, of securities of the Employer representing 50% or more of either (A) the combined voting power of the Employers then outstanding securities or (B) the then outstanding shares (in either such case other than as a result of an acquisition of securities directly from the Employer); or
any consolidation or merger of the Employer where the shareholders of the Employer, immediately prior to the consolidation or merger, would not, immediately after the consolidation or merger, beneficially own (as such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, shares representing in the aggregate 50% or more of the combined voting power of the securities of the corporation issuing cash or securities in the consolidation or merger (or of its ultimate parent corporation, if any); or
there shall occur (A) any sale, lease, exchange or other transfer (in one transaction or a series of transactions contemplated or arranged by any party as a single plan) of all or substantially all of the assets of the Employer, other than a sale or disposition by the Employer of all or substantially all of the Employers assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned by persons (as defined above) in substantially the same proportion as their ownership of the Employer immediately prior to such sale or (B) the approval by shareholders of the Employer of any plan or proposal for the liquidation or dissolution of the Employer; or
the members of the Board of Directors at the beginning of any consecutive 24-calendar month period (the Incumbent Directors) cease for any reason other than due to death to constitute at least a majority of the members of the Board of Directors; provided that any director whose election, or nomination for election by the Employers shareholders, was approved or ratified by a vote of at least a majority of the members of the Board of Directors then still in office who were members of the Board of Directors at the beginning (excluding any individual whose initial nomination for, or assumption of office as, a member of the Board occurs as a result of an actual or threatened solicitation of proxies or consents for the election or removal of one or more directors by any person or group other than a solicitation for the election of one or more directors by or on behalf of the Board) such 24-calendar-month period, shall be deemed to be an Incumbent Director.