Exhibit 10.16
       1.
    
    Period of Transitional Assistance
 a)
    
    You have agreed to provide your services to Corel until June 30,
2008, or until such earlier time as Corel may advise you at anytime after the ate
of this letter (the Transition Period). During the Transition Period, you will
continue as a Director and Office of Corel. During the Transition Period you will,
to the best of your ability, work with the Special Committee that was formed in
response to the proposal received from Vector Capital (the Special Committee).
In addition, during the Transition Period you will, to the best of your ability,
work with the Board of Directors of Corel (the Board), Corels management team
and the interim Chief Executive Officer of Corel, as requested by the Board and
Interim Chief Executive Officer.b)
    
    During the Transition Period, you have the opportunity to earn a
bonus in the based on the value you provide to the Special Committee during the
Transition Period, to a maximum of $200,000. The amount, if any, payable shall be
at the discretion of the independent Directors of Corel, in consultation with the
Special Committee.c)
    
    Your base salary (of $415,000 Canadian annually) will cease effective
at the end of the Transition Period and your sole entitlements to other
compensation and to benefits shall be:
 (i)
    
    continued participation in Corels
benefit plans for the Transition Period.(ii)
    
    the discretionary bonus referred to
in subparagraph 1(b) above;(iii)
    
    payment of the greater of:




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A.
    
    $300,000 Canadian; andB.
    
    your incentive
payment pursuant to Corels annual incentive plan to May
31, 2008, based on actual performance to May 31, 2008 (in
accordance with your annual incentive plan target of
$415,000 Canadian with 40% measured against Corporate
Revenue attainment and 60% measured again Corporate
EBITDA attainment),plus the tax gross-ups relating to
your 2007 apartment and travel in the amount of $52,246
Canadian, plus pay in respect of your accrued unused
vacation to the end of the Transition Period.
 (d)
    
    All of your unvested options granted June 27 and October 1, 2005 will
vest on June 30, 2008 and you may exercise all outstanding options until the
earlier of
 (i)
    
    December 31, 2008; and(ii)
    
    their original expiry date.
  2.
    
    Company PropertyAll company property must be returned to Corel at the end of the Transition Period,
including but not limited to: financial information, customer lists, marketing and
technical materials, cell phones, pagers, blackberries, desk keys, company credit
cards, company calling cards, computers and computer equipment, security badges, CD
ROMS and any other Corel materials you may have.3.
    
    Taxes and CurrencyAll amounts payable under this Agreement are subject to applicable taxes and
withholdings and you are solely responsible for the payment of all taxes owing as a
result of the payments and benefits provided to you under this Agreement. All amounts
referred to in this letter are in Canadian currency.4.
    
    Resignation From Other PositionsAll officer positions you hold with Corel and its affiliated entities are terminated at
the end of the Transition Period, or at such earlier time as is requested by Corel and
you agree to resign from all director positions you




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then hold with Corel and its affiliated entities at the end of the Transition Period,
or at such earlier time as is requested by Corel.5.
    
    Confidentiality, Non-Compete, Fiduciary DutiesYou are reminded that you are required to comply with the Confidentiality,
Non-Competition, Non-Solicitation and Intellectual Property covenants in your agreement
with Corel dated effective June 17, 2005, as amended November 1, 2005. You are also
reminded that you owe fiduciary obligations to Corel, which includes an obligation to
act in good faith and in the best interests of Corel.6.
    
    SpeakwellYou covenant and agree to speak positively of Corel and its employees, directors or
affiliates at all times. Corel covenants and agrees to speak positively of you at all
times. Should either you or Corel have occasion to comment on your departure or time at
Corel, both parties will do so in a manner that reflects the high level of mutual
respect and the amicable nature of this agreement.
    
  Date July 3 2008
    
    /s/ DAVID C. DOBSONDavid C. Dobson




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SCHEDULE A
 FULL AND FINAL RELEASE
  limitation Employment Standards Human Rights Workplace Safety Insurance Employment Standards Human Rights Work place Safety Insurance




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Income Tax Act
     
 /s/ DAVID C. DOBSONWitness Signature
    
    DAVID C. DOBSONWitness Name