UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
March 29, 2017
(Date of earliest event reported)
CONSOLIDATED WATER CO. LTD.
(Exact Name of Registrant as Specified in Charter)
| Cayman Islands, B.W.I. | 0-25248 | 98-0619652 |
|
(State or Other Jurisdiction of Incorporation) |
(Commission File No.) | (IRS Employer Identification No.) |
Regatta Office Park
Windward Three, 4 th Floor
West Bay Road, P.O. Box 1114
Grand Cayman, KY1-1102
Cayman Islands
(Address of Principal Executive Offices)
(345) 945-4277
(Registrant’s telephone number, including area code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
| Item 5.02. | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
As previously reported, effective September 1, 2011, Consolidated Water Co. Ltd. (the “Company”) entered into an employment agreement (the “Original Tonner Agreement”) with John Tonner, pursuant to which Mr. Tonner served as the Company’s Executive Vice President and Chief Operating Officer. On March 29, 2017, the Company entered into an amended and restated employment agreement (the “Amended Tonner Agreement”) with Mr. Tonner, which agreement is to have retroactive effect to December 1, 2016. Pursuant to the Amended Tonner Agreement, Mr. Tonner will serve as the Company’s Executive Vice President and Chief Commercial Officer and have the responsibilities inherent to such position. The Amended Tonner Agreement also permits Mr. Tonner to elect to terminate his employment and receive a lump sum payment equal to his then current base salary upon a “Change in Control” (as defined in the Amended Tonner Agreement).
Additionally, as previously reported, effective January 1, 2008, the Company entered into an employment agreement (the “Original Jerrybandan Agreement”) with Ramjeet Jerrybandan, pursuant to which Mr. Jerrybandan served as the Company’s Vice President of Overseas Operations. On March 29, 2017, the Company entered into an amendment to the Original Jerrybandan Agreement (the “Jerrybandan Amendment”) with Mr. Jerrybandan, which amendment is to have retroactive effect to December 1, 2016. Pursuant to the Jerrybandan Amendment, Mr. Jerrybandan has been promoted to Executive Vice President of Operations and will have the responsibilities associated with such position. Pursuant to the Jerrybandan Amendment, Mr. Jerrybandan’s annual base salary will be increased from approximately $185,000 to $240,000.
The foregoing descriptions of the Amended Tonner Agreement and the Jerrybandan Amendment do not purport to be complete and are qualified in their entirety by reference to the Amended Tonner Agreement and the Jerrybandan Amendment, which are attached hereto as Exhibit 10.1 and 10.2, respectively, and incorporated herein by reference. None of the other terms of the Original Tonner Agreement or the Original Jerrybandan Agreement were modified in any material respect.
| Item 9.01. | Financial Statements and Exhibits. |
| (d) | Exhibits. |
| Exhibit No. | Title | |
| 10.1 | Amended and Restated Engagement Agreement dated March 29, 2017 between Consolidated Water Co. Ltd. and John Tonner. | |
| 10.2 | First Amendment of Engagement Agreement dated March 29, 2017 between Consolidated Water Co. Ltd. and Ramjeet Jerrybandan. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CONSOLIDATED WATER CO. LTD. | |||
| By: | /s/ David W. Sasnett | ||
| Name: | David W. Sasnett | ||
| Title: | Executive Vice President & Chief Financial Officer | ||
Date: April 4, 2017
Exhibit 10.1
AMENDED AND RESTATED ENGAGEMENT AGREEMENT
THIS AGREEMENT is made the 29th day of March 2017.
| BETWEEN: | CONSOLIDATED WATER CO. LTD., |
a Cayman Islands company having its registered office at
Windward Three, 4 th Floor
Regatta Office Park, West Bay Road
P.O. Box 1114, Grand Cayman, KY1-1102,
Cayman Islands
(“the Company”)
| AND: | JOHN TONNER |
of 10070 Cameilla St
Parkland, FL 33076-4484 USA
(“the Executive”)
IT IS AGREED:-
Engagement
| 1. | The Executive is engaged as Executive Vice President and Chief Commercial Officer commencing on the 1st day of December, 2016 subject to the termination provisions set out in Clauses 18 and 19. |
Remuneration
| 2. | The Executive’s Base Salary will be US$292,025 per annum payable semi-monthly in arrears. |
| 3. | In addition, during the term of this Agreement, the Company will pay the full cost of providing medical i nsurance, as generally provided for the Company’s employees from time to time, for the Executive. |
| 4. | In addition, during the Term of this Agreement, the Company will make all statutory payroll contributions required of employers in the United States, including but not limited to FICA, Medicare, SUI, and WC in respect of the Executive to the appropriate United States regulatory agencies as mandated by applicable United States laws. |
| a. | Non-statutory contributions, such as to 401(k) retirement plans, shall be made in accordance with general Company policies which are subject to review and could be changed for regulatory or commercial reasons. |
| 5. | The Executive’s Base Salary will be reviewed as of January 1 st each year by the Company’s Chief Executive Officer (“the CEO”) who may grant an increase but must not reduce the Executive’s salary below the level set out in Clause 2 or in the immediately preceding year, whichever is applicable. |
| 6. | In addition to his Base Salary, the Executive shall be entitled to additional compensation each fiscal year pursuant to the Company’s short term and long term incentive compensation plans as follows: |
Short Term Incentive Compensation
The Executive shall be entitled to receive an annual cash bonus. The bonus amount payable to the Executive shall be based upon (i) the performance of the Company as compared to the financial performance targets for the Company, as established by the Board for the fiscal year; and (ii) the achievement of the individual goals set by the Company’s Chief Executive Officer (the “CEO”) for the fiscal year.
The performance measures, the Executive’s individual goals and the bonus amounts potentially payable to the Executive based upon the Company and/or the Executive achieving such performance measures and individual goals shall be communicated to the Executive by the CEO in writing by no later than March 1 of the fiscal year.
Any annual cash bonus earned by the Executive pursuant to this section shall be paid by the Company no later than March 31 of the following fiscal year.
Long Term Incentive Compensation
The Executive shall be entitled to receive restricted stock units (each an “RSU”) granted under to the Company’s 2008 Equity Incentive Plan at the beginning of each fiscal year, commencing with the 2015 fiscal year. Each RSU shall entitle the Executive to receive one share of the Company’s common stock upon the vesting of the RSU. Of the RSUs granted at the beginning of each fiscal year, one-sixth (1/6) of such RSUs shall vest at the end of that fiscal year, one-sixth (1/6) of such RSUs shall vest at the end of the second (2nd) fiscal year following the grant date, and one-sixth (1/6) of such RSUs shall vest at the end of the third (3rd) fiscal year following the grant date. The remaining one-half (1/2) of the RSUs granted (i.e. those that do not vest with time over three (3) years) shall vest based upon the performance of the Company as compared to the financial performance targets for the Company established by the Board for the three (3) year fiscal period beginning with fiscal year in which the RSUs are first granted.
The number of RSUs that may potentially vest to the Executive with time over the three (3) year period and the number of RSUs that may potentially vest to the Executive based upon the performance of the Company over the three (3) year period (as well as the financial targets by which the Company’s performance will be measured) shall be communicated to the Executive by the CEO in writing by no later than March 1 of the fiscal year. Vesting of the RSUs shall be contingent on the Executive’s engagement with the Company on each vesting date. Therefore, any unvested shares shall be automatically forfeited upon cessation of service to the Company resulting from the Executive’s resignation or termination for cause.
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| 7. | During the first calendar year of this Agreement, the Company will provide the Executive with a monthly automobile expense allowance of US$1,150. This monthly automobile allowance will increase on January 1 of each subsequent calendar year by US$50 per month (or US$600 per year) during the term of this Agreement. |
Responsibilities
| 8. | The Executive’s work will be performed mainly in Coral Springs, Florida, USA. |
| 9. | The Executive must devote the whole of his professional time to the Company's business and must use his best endeavours to promote the Company's interest and welfare. |
| a. | The Executive will retain his ownership and investment in Water Consultants International, Inc. but will not be active in its day-to-day management or operations. |
| b. | The Executive may, from time to time, engage in other activities, with the approval of the CEO so long as; (i) the nature of such activities are fully disclosed to the Company, (ii) the Executive participates in such activities in his capacity as an employee of the Company and (iii) such activities enhance the Company’s interests and reputation, and/or maintain or enhance the reputation of the Executive within the water industry. This could include, among other things, participating in Industry Forums or Panels, or leading seminars. |
The Executive will be responsible for the Company’s (i) commercial and technological strategies and execution, including business development, sales and marketing, manufacturing, product and technology development, and customer service and (ii) the Company’s engineering and project management functions, both in order to achieve the Corporate Objectives.
Corporate Objectives include but are not limited to; (i) meeting or exceeding budgeted earnings targets, (ii) improving operating profit margins, (iii) achieving excellent customer service, (iv) achieving excellent employee relations, (v) achieving technological advantage over competitors, (vi) increasing the Company’s market share in its present market areas, (vii) expanding the Company’s business into new and profitable markets and services, and (viii) such other duties as are assigned from time to time to the Executive by the CEO. .
The Executive’s powers and responsibilities include the following:-
| (a) | Ensure that Company resources (qualified staff, materials and technology), as mandated by the CEO and Board of Directors, are properly allocated and fully aligned through the parts of the Company he is responsible for in order to achieve the Corporate Objectives; |
| (b) | Assist the CEO and the Board of Directors to develop and update the Company’s Strategic Plan, and specifically to prepare the overarching commercial and technological strategies required to achieve the Corporate Objectives including selection and management of sales and marketing channels and development of strategic alliances; |
| (c) | Assist the CEO and the Board of Directors to develop and update the Company’s Marketing and Communications Plan in relation to business partners and customers (the “MarComm Plan”). |
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| (d) | Represent the Company and present the public face of the Strategic and MarComm Plans to current and potential business partners and customers. |
| (e) | Assist the CEO as needed with the Company’s investor relations activities, including attending investor meetings and conferences; |
| (f) | Implement and monitor the Strategic Plan and report the results to the CEO; |
| (g) | Implement and monitor the MarComm Plan and report the results to the CEO; |
| (h) | Ensure that the Company identifies and implements viable new technologies in order to achieve then maintain technological advantage over competitors; |
| (i) | Identify and evaluate new business opportunities consistent with the Strategic Plan and make recommendations to the CEO; |
| (j) | Ensure that the Company’s engineering and project management functions deliver projects and other services within budgeted costs and on schedule; |
| (k) | Supervise subordinate personnel, including work allocation, training, and problem resolution, evaluating performance; making recommendations for personnel actions and motivating employees to achieve peak productivity and performance; |
| (l) | Prepare the annual budget for the Company’s business development, sales and marketing, manufacturing, product and technological development, customer service, engineering and project management functions, as well as any new projects. Update as required by the CEO; |
| (m) | Carry out any other duties assigned by the CEO from time to time. |
The Executive must perform his duties under this Agreement during normal business hours from Monday to Friday inclusive (except on public holidays) but he accepts that his duties, which include travelling on the Company’s business may, from time to time, require work to be undertaken on Saturdays, Sundays and public holidays.
The Executive must not directly or indirectly engage in any activities or work which the Board deems to be detrimental to the best interests of the Company.
Holidays and Paid Time Off (“PTO”)
| 10. | The Executive is entitled, during every calendar year to the following PTO during which his remuneration will continue to be payable:- |
| (a) | all public holidays in the United States of America, and |
| (b) | Twenty six PTO days to be taken at a time to be approved by the CEO. |
| (c) | In case of inability to work due to illness or injury, the Executive must notify the Company immediately and produce a medical certificate or other pertinent information in accordance with prevailing company PTO policy. |
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Reimbursement of Expenses/Fees Earned
| 13. | (a) | All expenses for which the Executive claims reimbursement must be in accordance with any policies established by the Board from time to time and must be within the operating budgets approved by the Board. The Company must reimburse the Executive for the costs incurred by the Executive in his performance of his duties on production of the necessary vouchers or, if he is unable to produce vouchers, on the Executive’s proving, to the CEO’s satisfaction, the amount he has spent for those purposes. |
| (b) | Any fees and payments received by the Executive for or in relation to acting as director or officer of a subsidiary or affiliate of the Company will be the property of the Company and the Executive must account to the Company for it. |
Non-Competition
| 14. | The Executive agrees, as a separate and independent agreement, that he will not during any period for which he is entitled to remuneration under this Agreement, whether for his own account or for the account of any other person, firm or body corporate, either alone or jointly with or as director, manager, agent or employee of or as consultant to any person, firm or body corporate, directly or indirectly, carry on or be engaged or concerned or interested in any person firm or body corporate which conducts business identical to or similar to that conducted by the Company in any jurisdiction in which the Company carries on business (whether directly or indirectly). |
Company Information, Documents, Confidentiality, and Non-Solicitation
| 15. | (a) | All information, documents, books, records, notes, files, memoranda, reports, customer lists and other documents, and all copies of them, relating to the Company’s business or opportunities which the Executive keeps, prepares or conceives or which become known to him or which are delivered or disclosed to him or which, by any means come into his possession, and all the Company’s property and equipment are and will remain the Company’s sole and exclusive property both during the term of this Agreement and after its termination or expiration ; |
| (b) | If this Agreement is terminated for any reason, or if the Company at any time requests, the Executive must promptly deliver to the Company the originals and all copies of all relevant documents that are in his possession, custody or control together with any other property belonging to the Company. Should the Executive afterwards require access to copies of those documents for any reasonable purpose, the Company must provide them on his request; |
| (c) | The Executive must not, at any time during the term of this Agreement or within one year after its termination or expiration, either for his own account or for the account of any other person, firm or company, solicit, interfere with or endeavour to entice away from the Company any person, firm or company who or which, at any time during the currency of this Agreement was an employee, customer or supplier of or was in the habit of dealing with the Company. |
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| 16. | Except where such information is a matter of public record or when required to do so by law, the Executive must not, either before or after this Agreement ends, disclose to any person any information relating to the Company or its customers of which he becomes possessed while acting as Executive. |
Termination
| 17. | This Agreement will terminate and, except to the extent previously accrued, all rights and obligations of both parties under it will cease if either of the following events occurs:- |
| (a) | The Executive dies. |
| (b) | The Executive is convicted of any felony (whether or not relating to the Company or its subsidiaries or affiliates). |
| 18. | (a) | The Company may terminate this Agreement forthwith if the Executive knowingly commits any act or omission that could reasonably be expected to result in material harm to the business or reputation of the Company or any of its subsidiaries or affiliates, which failure and/or conduct continues un-remedied for ten (10) days after written notice from the CEO to the Executive setting forth in reasonable detail a description of such conduct, or otherwise conducts himself in a manner that would justify immediate dismissal of an employee in accordance with Section 51(1)(a)1 of the Labour Law and, except to the extent previously accrued, all rights and obligations of both parties under this Agreement will cease. |
| (b) | If through physical or mental illness, the Executive is unable to discharge his duties for sixty (60) successive days, as to which a certificate by any doctor appointed by the Company will be conclusive, then |
| (i) | the Executive will be relieved of his duties, his salary reduced to US$1,000.00 per annum and his bonus entitlement suspended, but |
| (ii) | the Company will continue to pay the full cost of providing medical insurance for the Executive and his wife and minor children together with pension contributions (such contributions to be equal to the pension contribution made on behalf of the Executive for the previous financial year of the Company), |
until the Executive is able once again to resume his duties in full.
If this incapacity continues for a period of two years (including the 60-day period referred to above) the Executive’s employment will be deemed to have been terminated by mutual consent at the expiration of that period.
| (c) | The Executive may give six (6) months written notice of termination to the Company and if he does so, this Agreement will terminate at the expiration of that period and, except to the extent previously accrued, all rights and obligations of both parties under it will cease. |
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| (d) | If there is a Change of Control of the Company, then the Executive, at his option, may terminate this Agreement upon one-hundred and twenty (120) days’ prior written notice (the “Notice Period”) to the Company after the Change in Control. In that event, the Company must pay the Executive on the last business day of the Notice Period in cash in one lump sum an amount equal to the Executive’s then-current Base Salary. |
For the purposes of this Agreement, a “Change of Control” will be deemed to have taken place if: (i) any person, including a “group” as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, publicly announces that such person or group has become the beneficial owner of more than 30% of the combined voting power (“Controlling Voting Power”) of the then outstanding securities of the Company that may be cast for the election of directors of the Company and (ii) the persons who were directors of the Company before such event cease to constitute a majority of the Board of Directors of the Company, or any successor to the Company, as the direct or indirect result of any person or group acquiring Controlling Voting Power.
Notices
| 19. | Any notice to be served under this Agreement must be in writing and will be deemed to be duly served if it is handed personally to the Secretary of the Company or to the Executive as the case may be, or if it is sent by registered post to the addressee at the relevant address at the head of this Agreement. A notice sent by post will be deemed to be served on the third day following the date on which it was posted. |
Previous Agreements Superseded
| 20. | (a) | This Agreement supersedes all prior contracts and understandings between the parties relating to its subject-matter except that benefits earned or accrued under any such prior contracts are not extinguished or affected. |
Waiver
| 21. | No change or attempted waiver of any of the provisions of this Agreement will be binding unless in writing and signed by the party against whom it is sought to be enforced. |
Severability of Provisions
| 22. | Whenever possible, each provision of this Agreement must be interpreted in such manner as to be effective and valid. If any provision of this Agreement or the application of it is prohibited or is held to be invalid, that prohibition or invalidity will not affect any other provision, or the application of any other provision which can be given effect without the invalid provision or prohibited application and, to this end, the provisions of this Agreement are declared to be severable. |
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Headings
| 23. | The headings in this Agreement are included for convenience only and have no legal effect. |
Applicable Law, Venue and Jurisdiction
| 24. | This Agreement must be construed and the legal relations between the parties determined in accordance with the laws of the Cayman Islands to the jurisdiction of the courts of which the parties agree to submit. The Executive appoints Alan Roffey (“the Process Agent”) whose address at the date of this Agreement is Calico Quay, Grand Cayman his agent in the Cayman Islands to receive on his behalf service of copies of the summons and complaint and any other process which may be served in any action or proceeding under this Agreement. Service may be made by personally serving the Process Agent at the Process Agent’s above address, with a copy to the Executive at his address above, and the Executive irrevocably authorises and directs the Process Agent to accept such service on his behalf Any dispute between the parties relating to, or in any way connected with, this Agreement must be brought exclusively in the courts of Broward or Palm Beach County, Florida or the courts located in the Cayman Islands. Any and all appeals of any court decision in a Florida or Cayman Islands court must also be brought in the same jurisdiction as the decision of the trial court. The parties hereby waive any right to dispute the choice of a party to bring an action in either of such courts on the grounds that such venue is inconvenient in any respect. |
| EXECUTED for and on behalf of | CONSOLIDATED WATER CO LTD. | |||
| CONSOLIDATED WATER CO LTD. | ||||
| by: Frederick W. McTaggart | ||||
| in the presence of: | ||||
| /s/ David W. Sasnett | /s/ Frederick W. McTaggart | |||
| Witness | FREDERICK W. MCTAGGART | |||
| DIRECTOR | ||||
| EXECUTED by JOHN TONNER | ||||
| in the presence of: | ||||
| /s/ David W. Sasnett | /s/ John Tonner | |||
| Witness | JOHN TONNER |
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Exhibit 10.2
FIRST AMENDMENT OF ENGAGEMENT AGREEMENT
THIS AGREEMENT is made this 29th day of March 2017.
| BETWEEN: | CONSOLIDATED WATER CO. LTD., |
a Cayman Islands company having its registered office at
Regatta Office Park, Windward Three, 4 th Floor, West Bay Road
P.O. Box 1114, Grand Cayman KY1-1102
Cayman Islands
(“the Company”)
| AND: | Ramjeet Jerrybandan |
of P.O. Box 10750 APO, Grand Cayman, KY1-1007
(the “Vice-President”)
WHEREAS:
A. The Company and the Vice-President (together, the “Parties”) entered into an engagement agreement dated the 14 th of January, 2008 (the “Engagement Agreement”).
B. The Parties are desirous of amending the Engagement Agreement in accordance with the terms of the Engagement Agreement.
NOW, THEREFORE , in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which is acknowledged, the Parties agree that the Engagement Agreement is amended as follows:
| 1. | Clause 1 of the Engagement Agreement is hereby amended and restated in its entirety as follows: |
“1. The Vice-President is engaged as Executive Vice-President of Operations commencing on the 1st day of December, 2016 subject to the termination provisions set out in Clauses 18 and 19.”
| 2. | Clause 2 of the Engagement Agreement is hereby amended and restated in its entirety as follows: |
“2. The Vice-President's Base Salary will be US$240,000 per annum payable semi-monthly in arrears.”
| 3. | In Clause 5 of the Engagement Agreement replace the value “CI$60,000” with the value “CI$87,000”. |
| 4. | Clause 7 of the Engagement Agreement is hereby amended and restated in its entirety as follows: |
“7. In addition to his Base Salary, the Vice-President shall be entitled to additional compensation each fiscal year pursuant to the Company’s short term and long term incentive compensation plans as follows:
Short Term Incentive Compensation
The Vice-President shall be entitled to receive an annual cash bonus. The bonus amount payable to the Vice-President shall be based upon (i) the performance of the Company as compared to the financial performance targets for the Company, as established by the Board for the fiscal year; and (ii) the achievement of the individual goals set by the Company’s Chief Executive Officer (the “CEO”) for the fiscal year.
The performance measures, the Vice-President’s individual goals and the bonus amounts potentially payable to the Vice-President based upon the Company and/or the Vice-President achieving such performance measures and individual goals shall be communicated to the Vice-President by the CEO in writing by no later than March 1 of the fiscal year.
Any annual cash bonus earned by the Vice-President pursuant to this section shall be paid by the Company no later than March 31 of the following fiscal year.
Long Term Incentive Compensation
The Vice-President shall be entitled to receive restricted stock units (each an “RSU”) granted under to the Company’s 2008 Equity Incentive Plan at the beginning of each fiscal year, commencing with the 2015 fiscal year. Each RSU shall entitle the Vice-President to receive one share of the Company’s common stock upon the vesting of the RSU. Of the RSUs granted at the beginning of each fiscal year, one-sixth (1/6) of such RSUs shall vest at the end of that fiscal year, one-sixth (1/6) of such RSUs shall vest at the end of the second (2 nd ) fiscal year following the grant date, and one-sixth (1/6) of such RSUs shall vest at the end of the third (3 rd ) fiscal year following the grant date. The remaining one-half (1/2) of the RSUs granted (i.e. those that do not vest with time over three (3) years) shall vest based upon the performance of the Company as compared to the financial performance targets for the Company established by the Board for the three (3) year fiscal period beginning with fiscal year in which the RSUs are first granted.
The number of RSUs that may potentially vest to the Vice-President with time over the three (3) year period and the number of RSUs that may potentially vest to the Vice-President based upon the performance of the Company over the three (3) year period (as well as the financial targets by which the Company’s performance will be measured) shall be communicated to the Vice-President by the CEO in writing by no later than March 1 of the fiscal year. Vesting of the RSUs shall be contingent on the Vice-President’s engagement with the Company on each vesting date. Therefore, any unvested shares shall be automatically forfeited upon cessation of service to the Company resulting from the Vice-President’s resignation or termination for cause.”
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| 5. | Clause 8 of the Engagement Agreement is hereby amended and restated in its entirety as follows: |
“8. During the first calendar year of this Agreement, the Company will provide the VicePresident with a monthly automobile expense allowance of US$1,300. This monthly automobile allowance will increase on January 1 of each subsequent calendar year by US$50 per month (or US$600 per year) during the term of this Agreement.
| 6. | Clause 10 of the Engagement Agreement is hereby amended and restated by replacing the second paragraph in its entirety as follows: |
“The Vice-President must provide strategic and operational direction to the water production and supply operations of the Company's wholly-owned subsidiaries and managed affiliates in the Bahamas, Belize, British Virgin Islands, Indonesia, the Cayman Islands and any other operations that may be assigned to him by the CEO from time to time ("the Operations Group"), which includes but is not limited to, (i) establishing strategic objectives, operating policies and procedures to attain Corporate Objectives, (ii) evaluating performance of each member of the Operations Group to determine if operational and financial objectives are being met, (iii) establishing and co-ordinating responsibilities and procedures among subordinate departments, (iv) ensuring that accurate and timely information is available for management and/or Board use and (v) any further duties reasonably required of and assigned to him by the CEO which he must discharge in accordance with directions of the CEO.”
And by replacing all other instances of the words “Overseas Group“ with the words “Operations Group”.
| 7. | All other provisions of the Engagement Agreement are incorporated herein and shall remain in full force and effect, including, but not limited to, capitalized terms that are not otherwise defined herein. |
[signature page follows]
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IN WITNESS WHEREOF , this Agreement has been duly executed by the parties hereto as of the date first above written.
| EXECUTED for and on behalf of | ) | CONSOLIDATED WATER CO LTD. | ||
| CONSOLIDATED WATER CO LTD. | ) | |||
| By: | ) | |||
| in the presence of: | ) | |||
| ) | ||||
| ) | ||||
| /s/ Tracey Ebanks | ) | /s/ Frederick W. McTaggart | ||
| Witness | ||||
| EXECUTED by | ) | |||
| RAMJEET JERRYBANDAN | ) | |||
| in the presence of: | ) | |||
| ) | ||||
| ) | ||||
| /s/ Tracey Ebanks | ) | /s/ Ramjeet Jerrybandan | ||
| Witness | RAMJEET JERRYBANDAN |
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