Exhibit 10.36


Personal & Confidential - by hand
On a 'Without Prejudice Basis'

SUPERSEDES COPY DATED MAY 26, 1999

June 1, 1999

Carlos Fox

Dear Carlos,

     Further to your discussions with John Kelly,  this letter will confirm that
JetForm  Corporation  has  terminated  your  employment  as Sr.  Vice-President,
Marketing, effective June 30, 1999.

     As outlined in your conversations with Debbie Weinstein, in accordance with
the  Employment  Agreement  which was provided to you dated  September 22, 1998,
JetForm will provide you with the following termination package.

Salary Continuance

     JetForm will provide  salary  continuance  (paid at regular pay periods) in
the amount of $247,000 for the period July 1, 1999 up to and including  June 30,
2000, based on the following:

     Base salary for the period July 1, 1999 up to and  including  June 30, 2000
in the amount of $210,000  Quarterly  expense  incentive  paid at 100% of target
(current run rate) in the amount of $20,000 Car Allowance in the total amount of
$6,000 Benefit Menu Allowance in the total amount of $11,000

     As agreed upon, salary continuance will not include payment for the Company
Profit Incentive or Customer Satisfaction Incentive.

Benefit Continuance

     You will be provided with  continuation  of your  medical,  dental and life
insurance  benefits  until  June 30,  2000.  It should be noted that you are not
eligible for short or long term disability  benefits effective June 30, 1999. As
agreed upon, JetForm  Corporation will reimburse you for reasonable expenses for
long term  disability  insurance  for the  period  from July 1, 1999 to June 30,
2000,  or until you are  re-employed  should this occur prior to the end of your
salary and benefit continuance period.

     In accordance  with Section 3.2 of your  Employment  Agreement,  should you
secure  employment prior to June 30, 2000 you will be required to advise JetForm
Corporation  of your start  date and your  medical,  dental  and life  insurance
benefits will then be discontinued.

Vacation Accrual

     Your  vacation  will  continue  to accrue  during the  salary  and  benefit
continuance period. You will receive payment  representing your accrued vacation
on the payroll  deposit of June 30,  2000.  It should be noted that your current
balance of unused accrued  vacation  equates to  approximately  212.56 hours. As
discussed,  you will receive  payment of your unused accrued annual  vacation on
the payroll  deposit of June 30, 1999.  The remaining  vacation  accrual for the
period from July 1, 1999 up to June 30,  200,  will be paid on the June 30, 2000
payroll deposit.

Outplacement Services

     Based on approval of the services provided, JetForm will provide payment up
to $15,000 towards  outplacement  services,  or reasonable  expenses.  As agreed
upon,  based  upon  approval  by  Human  Resources,  JetForm  will  agree to the
utilization of all or a portion of this amount for job relocation.

Expenses

     Any outstanding  expenses  should be submitted as soon as possible.  Should
you have  outstanding  expenses,  you will receive a final expense cheque within
two (2) weeks of submission.

JetForm Property

     On your last day of work you will be  required  to  immediately  return all
JetForm property including keys, passwords, equipment, company materials, etc.

JetForm Stock Option Plan

     As agreed upon,  based on your  commitment to provide a minimum of five (5)
hours of  consulting  services  per month for the period from July 1, 2000 up to
December 31, 2000, you will be entitled to exercise all options which are vested
or which vest on or prior to December 31, 2000

Legal Fees

     As agreed upon,  JetForm  Corporation  will  reimburse,  based on invoices,
reasonable legal fees relating to the finalization of this agreement.

Confidentiality Agreement

     We remind you of the  confidentiality  agreement that you signed on joining
the company, and Article IV of the Employment Agreement dated September 22, 1998
as it relates to Non-Competition,  Confidentiality  and Non-Disclosure.  You are
also required to keep confidential the details of this termination agreement.

Your Signature is Required

     In order to provide  you with the  termination  package as outlined in this
letter,  we will require your signature,  acknowledging  your  understanding and
agreement of the terms and a signed release prior to May 31, 1999.

     Please  sign  this  copy and fax both  this  letter  and  release  to Human
Resources at (613)  594-2944.  If you should have any questions  with respect to
this letter, please contact Donna Morris at 751-4800, ext. 5173.

Yours truly,

Donna Morris
Director Human Resources

     I agree and accept to the terms of this letter.

Carlos Fox:                             Dated:
           ------------------------           ------------------

RELEASE AND DISCHARGE

FROM: Carlos Fox

TO:  JetForm Corporation

DATE: June 1, 1999

     In consideration of the following paid to me:

     1.   compensation  equivalent  to salary  continuance  for a period of (52)
          fifty-two weeks, equivalent to $247,000, less statutory deductions.

     2.   payment of outstanding  accrued  vacation balance up to June 30, 2000,
          less statutory deductions.

     3.   payment for outplacement  services or approved job relocation expenses
          up to a limit of $15,000.

     I hereby release and forever discharge JetForm and its directors, officers,
employees and agents of and from all manner of actions, causes of action, suits,
debts, duties,  accounts,  contracts,  claims and demands whatsoever which I now
have,  ever had or  hereafter  can,  shall or may have for or by  reason  of any
cause,  matter or thing whatsoever existing to the present time and arising from
my  employment  with  JetForm  or  from  the  termination  of  such  employment,
including,  without  limiting the  generality  of the  foregoing  all claims and
demands for or with  respect to salary,  remuneration,  commission,  advances on
commission, fringe benefits, vacation pay, severance allowance, termination pay,
severance pay,  notice of termination,  deferred  profit sharing plan,  employee
stock option plan,  bonus or any other  employment  benefit or fringe benefit of
any kind whatsoever.  The  abovementioned  Consideration is inclusive of any and
all  obligations  which JetForm has or might have in the future  pursuant to the
provisions of any legislation or rule of law pertaining to employment  standards
or other  obligations  of JetForm on my  termination  as an employee.  I further
agree not to make any claims  (including  without  limitation  any  cross-claim,
counter-claim,  third party  action or  application)  against  any other  person
and/or entity which might claim  contribution  or indemnity  against the persons
and/or entities discharged by this release. The abovementioned  Consideration is
inclusive of  indemnity  from the persons  and/or  entities  discharged  by this
release.

Carlos Fox

--------------------------
Signature