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12 Nov 2010 14:39
12 November 2010 TEP Exchange Group PLC ("TEP" or "the Company") Licence Agreements
TEP is pleased to announce that it has today entered into a non-exclusive licence agreement with SL Investment Management Limited ("SL"), a 48.26 per cent. shareholder in the Company, to licence its electronic platform and all technology to SL. In consideration for this arrangement, the Company will receive a quarterly fee of £20,000. In addition, SL has been granted exclusive rights to develop and modify the electronic platform for a quarterly fee of £ 230,000 ("the Licence Agreement") to enable SL to put additional financial products on to the platform.
The Licence Agreement is for a period of 10 years, however, SL may terminate the agreement on 30 April 2011 and every subsequent 30 April during the life of the contract on giving 30 days' prior written notice to TEP in the event that the income generated by SL from the licence in the preceding 12 months is less than £250,000.
In addition, TEP Limited (the trading subsidiary of TEP) has entered into a 12 month non-exclusive licence with SL ("the Sub-Licence") to utilise the electronic platform for a quarterly fee of £25,000. The Sub-Licence can be renewed annually at the sole discretion of SL. The Sub-Licence provides TEP Limited with access to any developments or modifications made by SL to the electronic platform for traded endowment policies
The entry into the Licence Agreement and the Sub-Licence are related party transactions in accordance with AIM Rule 13. The Independent Directors, being George Kynoch, Moses Kraus and Abraham Weitz, consider, having consulted with the Company's nominated adviser, Merchant Securities Limited, that the terms of the transactions are fair and reasonable insofar as its shareholders are concerned.
For further information please contact:
TEP Exchange Group plc David Roxburgh 00 353 1 260 7746 Merchant Securities Limited John East/Simon Clements 020 7628 2200
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