Exhibit 10.16



EMPLOYMENT AGREEMENT



THIS AGREEMENT made as of the 23 day of September, 2005



A M O N G



OPEN TEXT CORPORATION,

a corporation
amalgamated under the laws of

Ontario (hereinafter referred to as the

Corporation)



OF THE FIRST PART



- and -



ALAN HOVERD

(hereinafter referred to as the Executive)



OF THE SECOND PART



WHEREAS the Corporation is desirous of retaining the services of the Executive as an employee of the Corporation and as its Executive;



AND WHEREAS the Executive has agreed to enter into and deliver this Agreement on the terms
and conditions contained herein.



AND WHEREAS the Executive has agreed to enter
into and deliver this Agreement in consideration of receiving certain additional benefits and other additional compensation as provided for pursuant to the terms of this Agreement;



NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual covenants and agreements herein contained and for other good and
valuable consideration, the parties agree as follows:



1. DEFINITIONS



For the purposes of this Agreement, the following terms
shall have the following meanings, respectively:



| | a. | Actmeans the Business Corporations Act (Ontario), as amended from time to time;
| | -- | ---------------------------------------------------------------------------------



---

| | b. | Agreement means this Agreement as may be amended or supplemented from time to time, including any and all schedules annexed hereto;
| | -- | -------------------------------------------------------------------------------------------------------------------------------------



| | c. | Annual Base Salary has the meaning ascribed to that term in Section 5(a) hereof;
| | -- | ----------------------------------------------------------------------------------



| | d. | Audit Committee means the audit committee of the Board of Directors of the Corporation as may be constituted from time to time;
| | -- | ---------------------------------------------------------------------------------------------------------------------------------



| | e. | Board of Directors means the board of directors of the Corporation as may be constituted from time to time and Directors means the directors of
the Corporation;
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | f. | Change of Control means either of the following events:
| | -- | ---------------------------------------------------------



| | i. | the sale of all or substantially all of the assets of the Corporation; or
| | -- | -------------------------------------------------------------------------



| | ii. | any transaction whereby any person, together with Affiliates and Associates of such person, or any group of persons acting in concert (collectively, Acquiror or
Acquirors), acquires beneficial ownership of more than 50% of the issued common shares of the Corporation on a fully diluted basis, or any transaction as a result of which beneficial ownership of common shares constituting more than 50%
in the aggregate of the issued common shares of the Corporation on a fully diluted basis cease to be held by persons who are shareholders of the Corporation as at the date hereof or by Affiliates or Associates of such present shareholders;
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



(for the purposes of this definition and this
Agreement, whether persons are affiliated or associated shall be determined in accordance with the definitions of Affiliate and Associate in the provisions of the Act as such provisions may be amended,
supplemented or replaced from time to time and for purposes of this definition the terms group and beneficial ownership shall have the meanings ascribed thereto under Section 14(d)(2) of the Securities
Act and Rule 13d-3 of the General Rules of the Securities Act, respectively);



| | g. | Compensation Committee means the compensation committee of the Board of Directors of the Corporation as may be constituted from time to time;
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------



| | h. | Date of Termination shall mean the date of termination of the Executives employment, whether by death of the Executive, by the Executive or by the
Corporation pursuant to the terms of this Agreement;
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

| | i. | Disability has the meaning ascribed to that term in Section 11(b) hereof;
| | -- | ---------------------------------------------------------------------------



| | j. | Incumbent Director shall mean any member of the Board of Directors who was a member of the Board of Directors immediately prior to a Change of Control and any
successor to an Incumbent Director who was recommended or appointed to succeed any Incumbent Director by the affirmative vote of the Directors when that affirmative vote includes the affirmative vote of a majority of the Incumbent Directors then on
the Board of Directors;
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | k. | Just Cause shall mean:
| | -- | ------------------------



| | i. | the failure by the Executive to perform his duties according to the terms of his employment (other than those (A): that follow a demotion in his position or duties; or (B) resulting
from the Executives Disability) after the Corporation has given the Executive reasonable notice of such failure and a reasonable opportunity to correct it;
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | ii. | the engaging by the Executive in any act that is materially injurious to the Corporation, monetarily or otherwise, but not including, following a Change of Control, the expression
of opinions contrary to those directors of the Corporation who are not Incumbent Directors or those of the Acquirors;
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | iii. | the engaging by the Executive in any act of dishonesty resulting or intended to result directly or indirectly in personal gain of the Executive at the Corporations expense,
including the failure by the Executive to honour his fiduciary duties to the Corporation and his duty to act in the best interests of the Corporation;
| | ---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | iv. | the failure by the Executive to comply with the provisions of Section 11(c) where the Executive elects to terminate his employment with the Company unless such termination of
employment is properly given in accordance with the terms of Section 14.2 hereof; or
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | v. | the failure of the Executive to abide by the terms of any resolution passed by the Board of Directors provided the implementation of such resolution does not constitute a Parachute
Event.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | l. | Parachute Event means the occurrence of any of the following without the Executives written consent (except in connection with the termination of the
employment of the Executive for Just Cause or Disability or termination of the Executives employment because of the death of the Executive):
| | -- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | i. | a material change (other than those that are consistent with a promotion) in the Executives position or duties, responsibilities, title or office in effect immediately prior
to the Change of Control (except for a change in any position or duties as a director of the Corporation), which includes any removal of the Executive from or any failure to re-elect or re-appoint the Executive to any such positions or offices.
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

| | ii. | a material reduction by the Corporation or any of its subsidiaries of the Executives salary, benefits or any other form of remuneration payable by the Corporation or its
subsidiaries; or
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | iii. | any material failure by the Corporation or its subsidiaries to provide any benefit, bonus, profit sharing, incentive, remuneration or compensation plan, stock ownership or purchase
plan, pension plan or retirement plan in which the Executive is participating or entitled to participate immediately prior to a Change of Control, or the Corporation or its subsidiaries taking any action or failing to take any action that would
materially adversely affect the Executives participation in or materially reduce his rights or benefits under or pursuant to any such plan;
| | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | iv. | any other material breach by the Corporation of this Agreement;
| | --- | ---------------------------------------------------------------



| | m. | Person or persons includes an individual, sole proprietorship, partnership, unincorporated association, unincorporated syndicate,
unincorporated organization, trust, body corporate, and a natural person in his capacity as trustee, executor, administrator or other legal representative;
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | n. | Securities Act means the Securities Exchange Act of 1934, as amended from time to time;
| | -- | -----------------------------------------------------------------------------------------



| | o. | Voluntary Termination means the termination of the Executives employment with the Corporation by the Executive at his discretion in accordance with the
provisions of Section 11(c) of this Agreement.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



2. TERM



The Corporation shall employ the Executive for an
indefinite period commencing on the date of this Agreement, subject, however, to earlier termination as hereinafter provided.



---

3. DUTIES



The Executive shall serve the Corporation and any subsidiaries of the Corporation in such capacity or capacities and shall perform such duties and
exercise such powers pertaining to the management and operation of the Corporation and any Subsidiaries and Associates of the Corporation (as those terms are defined in the Act) as may be determined from time to time by the Chief Executive Officer
(CEO) consistent with the office of the Executive. The Executive shall:



| | i. | devote his full time and attention and his best efforts to the business and affairs of the Corporation;
| | -- | -------------------------------------------------------------------------------------------------------



| | ii. | perform those duties that may be assigned to the Executive diligently and faithfully to the best of the Executives abilities and in the best interests of the Corporation; and
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | iii. | use his best efforts to promote the interests and goodwill of the Corporation.
| | ---- | ------------------------------------------------------------------------------



4. REPORTING PROCEDURES



The Executive shall report to the CEO. The Executive shall report fully on the management, operations and business affairs of the Corporation and advise
to the best of his ability and in accordance with business standards on business matters that may arise from time to time during the term of this Agreement.



5. REMUNERATION AND BENEFITS



| | a. | The annual base salary (Annual Base Salary) payable to the Executive for his services hereunder for each year of the term of this Agreement shall be determined by
the Compensation Committee upon recommendation by the CEO and set out in a separate document, subject to the provisions of Section 7, and exclusive of bonuses, benefits and other compensation as provided for herein. The Annual Base Salary payable to
the Executive pursuant to the provisions of this section 5 shall be payable in such manner as other payments are made by the Corporation to senior executives or in such other manner as may be mutually agreed upon, less, in any case, all applicable
deductions or withholdings as required by law.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b. | The Corporation shall provide the Executive with employee benefits comparable to those provided by the Corporation from time to time to other senior executives of the Corporation.
Benefits to be enjoyed by the Executive during the term of this Agreement shall be in accordance with Schedule A, as amended from time to time, and shall include reimbursement of any properly incurred expenses as provided for in Section
10 hereof.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

6. ANNUAL PERFORMANCE BONUS



In addition to the Executives Annual Base Salary, the Executive shall be entitled to earn a bonus (the
Performance Bonus) which shall be based upon performance goals established by the CEO in conjunction with the Audit Committee and approved by the Compensation Committee from time to time and set forth in a separate document. Any
changes respecting the amount or other terms of the Performance Bonus payable to the Executive must be approved by the CEO in conjunction with the Audit Committee and the Compensation Committee.



7. SALARY AND/OR BONUS ADJUSTMENTS



Other than as herein provided, there shall be no cost-of-living increase or
merit increase in the Annual Base Salary or increases in any bonuses payable to the Executive unless agreed to in writing by the CEO and the Compensation Committee; and the CEO and the Compensation Committee shall review annually the Annual Base
Salary and all other compensation to be received by the Executive under this Agreement.



8. OPTIONS



The Corporation shall permit the
Executive to participate in any share option plan, share purchase plan, retirement plan or similar plan offered by the Corporation from time to time to its senior executives in the manner and to the extent authorized by the Compensation Committee of
the Board of Directors. The Compensation Committee of the Board of Directors may, in its absolute discretion, grant additional options, subject to approval by the Board of Directors, and it may review the advisability of additional option grants for
the Executive.



9. VACATION



The Executive shall be entitled to four weeks paid vacation per fiscal year
of the Corporation at a time approved in advance by the CEO, which approval shall not be unreasonably withheld but shall take into account the staffing requirements of the Corporation and the need for the timely performance of the Executives
responsibilities. Any vacation entitlement hereunder shall be subject to the Corporations policy respecting same in effect from time to time.



---

10. EXPENSES



Subject to the terms of this section, the Executive shall be reimbursed for all reasonable travel and other out-of-pocket expenses actually and properly
incurred by the Executive from time to time in connection with carrying out his duties hereunder. Determination of whether expenses are reasonable or not shall be made by the CEO. For all such expenses the Executive shall furnish to the Corporation
originals of all invoices or statements in respect of which the Executive seeks reimbursement.



11. TERMINATION



| | a. | For Just Cause
| | -- | --------------



The Corporation may immediately terminate the employment of the Executive for Just Cause without notice or any payment in lieu of notice, and for purposes
of greater certainty, the Corporation shall have no obligation to make any payments to the Executive on account of severance or bonuses or partial bonuses or any other amounts except as expressly stipulated in Section 12(a) hereof.



| | b. | For Disability/Death
| | -- | --------------------



This Agreement may be immediately terminated by the Corporation by notice to the Executive if the Executive is determined to suffer from disability. The
Executive shall be deemed to suffer from disability (hereinafter referred to as Disability) if in any year during the employment period, because of ill health, physical or mental disability, or for other causes beyond the control of the
Executive, the Executive has been continuously unable or unwilling or has failed to perform the Executives duties for 120 consecutive days, or if, during any year of the employment period, the Executive has been unable or unwilling or has
failed to perform his duties for a total of 180 days, consecutive or not. The Board of Directors, acting reasonably, shall (subject to paragraph 31 herein), finally determine if the Executive is suffering from ill health, physical or mental
disability or other causes beyond his control during the time periods as hereinbefore set forth in the event of any dispute between the Executive and the Corporation concerning the occurrence of Disability for purposes of this Section.



Notwithstanding any short term or long term corporate benefits or
insurance policies relating to disability maintained by the Corporation at the relevant time, if during any period of ill health, physical or mental disability or for other causes beyond the control of the Executive, the Executive has been
continuously unable or unwilling or has failed to perform the Executives duties less than 120 consecutive days (the Short-Term Illness), the Executive shall continue to receive all amounts of remuneration and benefits otherwise
payable to and enjoyed by the Executive under this Agreement less any and all amounts received by and/or payable to the Executive in connection with benefits paid and/or payable as a result of such Short-Term Illness (i.e. no duplicate payments as a
result of short term



---

disability payments and the Executives salary payments that are due during the Short-Term Illness time period).
Upon termination of this Agreement as a result of Disability, the Corporation shall pay to the Executive the severance payment provided for in Subsection 12(b) hereof less any and all amounts received by and/or payable to the Executive in connection
with benefits paid and/or payable as a result of the Disability. Upon termination of this Agreement as a result of Disability, the Corporation shall permit the Executive to continue to participate in those employee benefits referred to in Section 5
b hereof, to the extent enjoyed by the Executive prior to the occurrence of Disability, for the 12-month period immediately following the occurrence of such Disability. The term any year of the employment period means any period of 12
consecutive months during the employment period.



This
Agreement shall terminate without notice or any payment in lieu thereof immediately upon the death of the Executive.



| | c. | Voluntary Termination by Executive
| | -- | ----------------------------------



If the Executive is desirous of voluntarily terminating his employment with the Corporation, the Executive agrees to give the Corporation 3 months advance
written notice of such termination in which case the Executive shall not be entitled to any payment on account of severance under Section 12(b) hereof. The CEO may waive such notice in writing after consulting with the Board of Directors, in their
sole and absolute discretion, in which case the Executives employment shall be deemed to terminate immediately, provided the Executive shall still be entitled to compensation due on account of Annual Base Salary and benefits earned up to the
last date of the 3 month advance written notice period given by the Executive and any Performance Bonus earned and prorated during such 3 month notice period. Provided that the Executive gives the 3 month notice as required hereunder, any unvested
options which would have otherwise vested during such advance written notice period shall be permitted to continue to vest during such period. The Executive shall have the right to exercise any options which are vested as at the Date of Termination
for the period which is 90 days following such Date of Termination (the 90 Day Period). For purposes of this Section 11 (c), the term Date of Termination shall mean the actual day on which the Executive ceases to be employed
plus the remainder of the 3 month notice period if and to the extent waived by the CEO in consultation with the Board of Directors. Any termination properly given under Section 14.2 hereof and in accordance with the terms thereof shall not be
considered a voluntary termination under this Section 11(c).



| | d. | Termination by Corporation Other than For Just Cause, Disability or Death
| | -- | -------------------------------------------------------------------------



The Corporation may terminate the employment of the Executive, notwithstanding any other provision of this Agreement, upon compliance with the terms of
Section 12(b) hereof.



---

12. SEVERANCE PAYMENTS



| | a. | Upon termination of the Executives employment for Just Cause, the Executive shall not be entitled to any severance or other payment other than Annual Base Salary earned by the
Executive before the Date of Termination calculated pro rata up to and including the Date of Termination and all outstanding and accrued vacation pay to the Date of Termination. Upon termination of the Executives employment: (i) for death; or
(ii) by the voluntary termination of the employment of the Executive by the Executive pursuant to Section 11(c) hereof, the Executive shall not be entitled to any severance or other payment other than Annual Base Salary and any Performance Bonus
earned by the Executive before the Date of Termination calculated pro rata up to and including the Date of Termination (which under Section 11(c) shall be as defined therein) and all outstanding and accrued vacation pay to the Date of Termination..
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | Notwithstanding subparagraph (ii) above, the Executive shall not be entitled to any Performance Bonus earned by the Executive before the Date of Termination unless the Executive
gives the Corporation the advanced written notice required by Section 11(c) hereof.
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b. | If the Executives employment is terminated by the Corporation for any other reason other than the reasons set forth in Section 12(a), the Executive shall be entitled to
receive all of the health and dental benefits (other than disability benefits, accidental death and dismemberment benefits and life insurance benefits) described in Section 5(b) that would be enjoyed by the Executive during the 12 month period
following his termination PLUS an amount equal to the total of:
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (i) | 12 months salary at the then applicable Annual Base Salary rate (subject to Section 12(c) below);
| | --- | --------------------------------------------------------------------------------------------------



| | (ii) | An amount equal to the Executives target annual variable compensation payment for the then current fiscal year;
| | ---- | ----------------------------------------------------------------------------------------------------------------



| | (iii) | all outstanding and accrued regular and special vacation pay owing to the Executive to the Date of Termination; and
| | ----- | -------------------------------------------------------------------------------------------------------------------



| | (iv) | all properly incurred business expenses owing to the Executive as of the Date of Termination.
| | ---- | ---------------------------------------------------------------------------------------------



| |  | In addition to the foregoing, if there is a termination under this Section 12(b), the Executive shall be entitled to receive any Performance Bonus which has been earned on a pro
rated basis to the date of such termination.
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

If, at the Date of Termination, there were any memberships in any clubs, social or athletic organizations
paid for by the Corporation pursuant to Schedule A hereof at the Date of Termination, the Corporation will not take any action to terminate such memberships but will not renew any such membership that expires or reimburse the Executive for any
further payments thereunder.



Any amounts due hereunder on
account of severance shall be paid by the Corporation to the Executive on a monthly basis commencing 30 days following the Date of Termination and not in a lump sum.



| | c. | If the Executive secures new employment or consulting work while he is entitled to severance payments under Section 12(b)(i), then from and after the date such new employment or
consulting work commences, the severance payments referred to in Section 12(b)(i) to which the Executive is otherwise entitled shall be reduced immediately upon the commencement of such new employment or consulting work to a lump sum amount equal to
the amount by which the Annual Base Salary exceeds the annual new salary or consulting fees, on a pro rata basis, annualized according to the unexpired term of the severance payments. The health and dental benefits referred to in Section 12(b) above
shall also immediately terminate upon the commencement of such new employment or consulting work unless the Executive notifies the Corporation in writing that he is not entitled to benefits in respect of such new position or work. The Executive
shall notify in writing the Corporation of all new employment and/or consulting work secured by the Executive (and the amounts received thereunder), within 14 days thereof, following the Date of Termination as long as the Executive is receiving
severance payments hereunder, failing which the Executives continuing right to any severance payments hereunder shall cease.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|         |  |                    |  |         
|-------- |  | ------------------ |  | --------
|Example: |  | Annual Base Salary |  | $150,000
|         |  | New Position       |  | $100,000



Six months left of
severance pay to go when new position attained



Lump sum
payment to equal $50,000 x 6/12 = $25,000



| | d. | Except as expressly stipulated in Sections 11(c) or 14 hereof or in this Section 12 d, any options which have not vested as of the Date of Termination (being in the case where the
Corporation gives notice, the date specified by the Corporation as the date on which the Executives employment will terminate) shall terminate and be of no further force and effect as of the Date of Termination and neither any period of notice
nor any payment in lieu thereof upon termination of employment hereunder shall be considered as extending the period of employment for the purposes of
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

| |  | vesting of options notwithstanding anything to the contrary in any other agreement between the Corporation and the Executive. Notwithstanding anything contained in this Section 12,
in the event of termination by the Corporation other than for Just Cause, the Executive shall have the right to exercise any options which are vested as at the Date of Termination for the 90 Day Period (as defined in Section 11(c). Any unvested
options which would have otherwise vested during such 90 Day Period shall continue to vest during that period and to the extent any unvested options have vested during such 90 Day Period, the Executive shall also be entitled to exercise those
options within a rolling 90 day period after the date of vesting of such options, which period will not exceed 180 days following the Date of Termination. In addition, notwithstanding anything contained in this Section 12 or elsewhere in this
Agreement, in the event of termination due to death of the Executive, the estate of the Executive shall be entitled, at any time during the period which is 12 months following the date of death of the Executive (the 12 Month Period), to
exercise any options which have vested as at the date of death of the Executive. In addition, any unvested options which would have otherwise vested during such 12 Month Period shall continue to vest during that period and to the extent of any
unvested options have vested during such period, the Executives estate shall be entitled to exercise those options within a period which starts on the day of vesting and ends 12 months from the date of death of the Executive.
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



For purposes of greater certainty, if the Executive is
terminated for Just Cause, Death or if the Executives employment hereunder is terminated by the Executive pursuant to Section 11(c) then no payment whatsoever shall be made to the Executive under this Section.



13. NO FURTHER ENTITLEMENTS



Except as expressly provided in Sections 11 and 12 above and Section 14
below, where the Executives employment has been terminated by the Executive or terminated or deemed to have been terminated by the Corporation for any reason, the Executive will not be entitled to receive any further payments, in lieu of
notice or as damages for any reason whatsoever. Except as to any entitlement as expressly provided in this Agreement, the Executive hereby waives any claims the Executive may have against the Corporation for or in respect of termination pay,
severance pay, or on account of loss of office or employment or notice in lieu thereof, or any other cause, including human rights legislation.



---

14. OPTION ACCELERATION AND SEVERANCE PAYMENTS ON CHANGE OF CONTROL



|14.1 | Termination by the Corporation
|---- | ------------------------------



If the Executives employment is terminated by the Corporation upon the giving of written notice of such termination to the Executive at any time
within the 6 month period following a Change of Control (other than for Just Cause, Disability or Death), then the Executive shall be entitled to the following:



| | i. | such payments on account of severance as provided for under Section 12(b) of this Agreement; and
| | -- | ------------------------------------------------------------------------------------------------



| | ii. | notwithstanding anything to the contrary in Section 12 hereof or in this Agreement, all options granted by the Corporation to the Executive shall, following the giving of any notice
by the Corporation under this Section 14.1, be deemed to vest immediately and shall be exercisable by the Executive for a period of 90 days following the giving of such notice by the Corporation hereunder.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|14.2 | Termination by Executive
|---- | ------------------------



If the Executives employment is terminated by the Executive upon the giving of written notice of such termination to the Corporation within the 6
month period following a Change of Control, and within 60 days following the occurrence of a Parachute Event, which shall be described in detail by the Executive in the written notice of termination given to the Corporation, the Executive shall be
entitled to the following:



| | i. | such payments on account of severance as provided for under Section 12(b) of this Agreement;
| | -- | --------------------------------------------------------------------------------------------



| | ii. | notwithstanding anything to the contrary in Section 12 hereof or in this Agreement, all options granted by the Corporation to the Executive shall, following the giving of proper
notice by the Executive, under this Section 14.2, be deemed to vest immediately and shall be exercisable by the Executive for a period of 90 days following the giving of such notice.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



15. DISCLOSURE



During the employment period, the Executive shall promptly disclose to the CEO full information concerning any interest,
direct or indirect, of the Executive (as owner, shareholder, partner, lender or other investor, director, officer, employee, consultant or otherwise) or any member of his family in any business that is reasonably known to the Executive to purchase
or otherwise obtain services or products from, or to sell or otherwise provide services or products to the Corporation or to any of its suppliers or customers.



---

16. NON-COMPETITION/NON-SOLICITATION/PROPRIETARY RIGHTS AGREEMENT



The Executive agrees to execute contemporaneously with his execution of this
Agreement the confidentiality, non-solicitation, non-competition and inventions/proprietary rights agreement in substantially the form annexed hereto as Schedule B.



17. RETURN OF MATERIALS



All files, forms, brochures, books, materials, written correspondence, memoranda, documents, manuals, computer disks, software products and lists
(including lists of customers, suppliers, products and prices) pertaining to the business of the Corporation or any of its subsidiaries and associates that may come into the possession or control of the Executive shall at all times remain the
property of the Corporation or such Subsidiary or Associate, as the case may be. On termination of the Executives employment for any reason, the Executive agrees to deliver promptly to the Corporation all such property of the Corporation in
the possession of the Executive or directly or indirectly under the control of the Executive. The Executive agrees not to make for his personal or business use or that of any other party, reproductions or copies of any such property or other
property of the Corporation.



18. GOVERNING LAW



This agreement shall be governed by and construed in accordance with the
laws of the Province of Ontario.



19. SEVERABILITY



If any provision of this agreement, including the breadth or scope of
such provision, shall be held by any court of competent jurisdiction to be invalid or unenforceable, in whole or in part, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining provisions, or part
thereof, of this agreement and such remaining provisions, or part thereof, shall remain enforceable and binding.



20. ENFORCEABILITY



The Executive hereby confirms and agrees that the covenants and restrictions pertaining to the Executive contained in this Agreement, are reasonable and
valid and hereby further acknowledges and agrees that the Corporation would suffer irreparable injury in the event of any breach by the Executive of his obligations under any such covenant or restriction. Accordingly, the Executive hereby
acknowledges and agrees that damages would be an inadequate remedy at law in connection with any such breach and that the Corporation shall therefore be entitled in lieu of any action for damages, temporary and permanent injunctive relief enjoining
and restraining the Executive from any such breach.



---

21. NO ASSIGNMENT



The Executive may not assign, pledge or encumber the Executives interest in this agreement nor assign any of the rights or duties of the Executive
under this agreement without the prior written consent of the Corporation.



22. SUCCESSORS



This agreement shall be
binding on and enure to the benefit of the successors and assigns of the Corporation and the heirs, executors, personal legal representatives and permitted assigns of the Executive.



23. NOTICES



Any notice or other communication required or permitted to be given hereunder shall be in writing and either delivered by hand or mailed by prepaid
registered mail. At any time other than during a general discontinuance of postal service due to strike, lock-out or otherwise, a notice so mailed shall be deemed to have been received three business days after the postmarked date thereof or, if
delivered by hand, shall be deemed to have been received at the time it is delivered. If there is a general discontinuance of postal service due to strike, lock-out or otherwise, a notice sent by prepaid registered mail shall be deemed to have been
received three business days after the resumption of postal service. Notices shall be addressed as follows:



| | i. | If to the Corporation:
| | -- | ----------------------



185 Columbia Street West

Waterloo, Ontario



| | ii. | If to the Executive:
| | --- | --------------------



5 Marine Parade Drive, Unit #120

Etobicoke, Ontario M8V 4B4



24. LEGAL ADVICE



The Executive hereby represents and warrants to the
Corporation and acknowledges and agrees that he had the opportunity to seek and was not prevented nor discouraged by the Corporation from seeking independent legal advice prior to the execution and delivery of this



---

agreement and that, in the event that he did not avail himself of that opportunity prior to signing this agreement, he
did so voluntarily without any undue pressure and agrees that his failure to obtain independent legal advice shall not be used by him as a defence to the enforcement of his obligations under this agreement.



25. RESIGNATION OF DIRECTORSHIPS, ETC.



The Executive agrees that after termination of his employment, he will, at
the request of the CEO, tender his resignation from any position he may hold as an officer or director of the Corporation or any of its Affiliated or Associated companies, and the Executive further covenants and agrees, if so requested by the CEO,
not to stand for re-election to any office of the Corporation or any of its Affiliated or Associated companies at any time following termination of the Executives employment hereunder.



26. NO DEROGATION



Nothing herein derogates from any rights the Executive may have under applicable law, except as set out in this section. The
parties agree that the rights, entitlements and benefits set out in this Agreement to be paid to the Executive are in full satisfaction of any rights or entitlements the Executive may have as against subsidiaries of the Corporation as a result of
the termination of his employment with such subsidiaries.



27. CURRENCY



All dollars referenced herein are in Canadian dollars
unless expressly provided to the contrary.



28. NON-DISPARAGEMENT



The Executive covenants and agrees that he shall not
engage in any pattern of conduct that involves the making or publishing of written or oral statements or remarks (including, without limitation, the repetition or distribution of derogatory rumours, allegations, negative reports or comments) which
are disparaging, deleterious or damaging to the integrity, reputation or goodwill of the Corporation, its affiliates or its and their management.



29. PRIVACY



The Executive acknowledges and agrees that the Corporation may collect, use and disclose his personal information for purposes relating to his employment
with the Corporation. The purposes of such collection, use and disclosure include, but are not limited to:



(a) ensuring that the Executive is paid for his services to the Corporation which includes disclosure to third party payroll providers;



---

(b) administering and/or facilitating the provision of any benefits to which the Executive is or may
become entitled to, including bonuses, medical, dental, disability and life insurance benefits, pension, group RRSP and/or stock options. This shall include the disclosure of the Executives personal information to the Corporations third
party service providers and administrators;



(c) compliance by
the Corporation with any regulatory reporting and withholding requirements relating to the Executives employment;



(d) in the event of a sale or transfer of all or part of the shares or assets of the Corporation, disclosing to any potential acquiring organization the
Executives personal information solely for the purposes of determining the value of the Corporation and its assets and liabilities and to evaluate the Executives position in the Corporation. If the Executives personal information
is disclosed to any potential acquiring organization, the Corporation will require the potential acquiring organization to agree to protect the privacy of the Executives personal information in a manner that is consistent with any policy of
the Corporation dealing with privacy that may be in effect from time to time and/or any applicable law that may be in effect from time to time;



(e) compliance by the Corporation of its obligations to report improper or illegal conduct by any of its directors, officers, employees or agents under
any applicable securities, criminal or other law; and



(f)
monitoring the Executives access to the Corporations electronic media services in order to ensure that the use of such services is in compliance with the Corporations policies and procedures and is not in violation of any
applicable laws.



If the Executives specific consent to the collection,
use or disclosure of his personal information is required in the future, the Executive hereby agrees to provide such consent, and if the Executive refuses to provide or withdraws his consent, the Executive acknowledges that his employment and/or his
entitlement to certain employment benefits may be negatively affected.



30.
ENTIRE AGREEMENT



This Agreement constitutes the entire
agreement and understanding between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, written or oral, among the parties relating to such subject matter, including any other employment
agreement made between the Corporation and the Executive.



---

31. ARBITRATION



If there is a disagreement or dispute between the parties with respect to this Agreement or the interpretation thereof, such disagreement or dispute will
be referred to binding arbitration to be conducted by a single arbitrator, if Executive and the Corporation agree upon one, otherwise by three arbitrators appointed as hereinafter set out, pursuant to the provisions of the Arbitrations Act
1991 (Ontario) and any amendments thereto. A party who wishes to arbitrate shall give written notice of such intention to the other party (a Notice of Intention). The arbitrator shall be appointed by agreement by agreement of Executive
and the Corporation or, in default of agreement within ten (10) Business Days of service of the Notice of Intention, each of Executive and the Corporation shall within five (5) Business Days of the expiry of the aforesaid ten (10) Business Day
period, select one arbitrator and notify the other of its selection, with the third arbitrator to be chosen by the first two named arbitrators within five (5) Business Days of the expiry of the aforesaid five (5) Business Day period. If one of the
parties does not so notify the other of its selection within the prescribed time, then the arbitrator selected by the other party in accordance with the above procedure shall be the sole arbitrator. The arbitration shall be held in the City of
Toronto. The procedure to be followed shall be as agreed by the parties or, in default of agreement, determined by the arbitrator(s), provided, however, that depositions or examinations for discovery will not be allowed but information may be
exchanged by other means. The parties will use their best efforts to ensure that the arbitration hearing is conducted no later than sixty (60) days after the arbitrator is, or arbitrators are, selected. The final decision of the arbitrator or
arbitrators or any two of the three arbitrators will be furnished to the parties in writing and will constitute a conclusive determination of the issue in question, binding upon the parties, without right of appeal. The fees and expenses of the
arbitration shall be in the discretion of the arbitrator(s). Judgment upon the award may be entered in any court of competent jurisdiction.



32. NO CONFLICTING OBLIGATIONS



The Executive represents and warrants that none of the negotiation, entering into or performance of this Agreement has resulted in or may result in a
breach by the Executive of any agreement, duty or other obligation with or to any Person, including, without limitation, any agreement, duty or obligation not to compete with any Person or to keep confidential the confidential information of any
Person, and there exists no agreement, duty or other obligation binding upon the Executive that conflicts with the Executives obligations under this Agreement. The Executive agrees to indemnify and hold the Corporation, its officers,
directors, employees, agents and consultants harmless against any and all claims, liabilities, damages or costs incurred by any of them by reason of an alleged violation by the Executive of the representations contained in this Section.



---

IN WITNESS WHEREOF the parties hereto have executed this agreement as of the date first above
written.



|                             |  |   |  |  |  |                       |  |                           
|---------------------------- |  | - |  |  |  | --------------------- |  | --------------------------
|                             |  |   |  |  |  | OPEN TEXT CORPORATION
|                             |  |   |  | 
|                             |  |   |  |  |  | Per:                  |  |                           
|                             |  |   |  |  |  |                       |  | Authorized Signing Officer
|SIGNED, SEALED AND DELIVERED |  |   |  |  |  |                       |  |                           
|in the presence of:          |  |   |  |  |  |                       |  |                           
|                             |  | ) |  |  |  |                       |  |                           
|                             |  | ) |  |  |  |                       |  |                           
|                             |  | ) |  |  |  |                       |  |                           
|                             |  | ) |  |  |  |                       |  | Alan Hoverd               



---

SCHEDULE A



Remuneration  Benefits



Schedule Ato the Employment Agreement made as of the 23 day of September, 2005, by and between Open Text Corporation (the Corporation)
and Alan Hoverd (the Executive).



Benefits to be enjoyed by
the Executive during the term of this Agreement shall include:



| | (i) | reimbursement of reasonable cell phone expenses consistent with corporate policy;
| | --- | ---------------------------------------------------------------------------------



| | (ii) | each fiscal year you will be entitled to a $6,500 CDN perquisite allowance which may be used for reimbursement of the following types of services or fees:
| | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | Financial planning
| | - |  | ------------------



| |  |  | Tax planning
| | - |  | ------------



| |  |  | Estate planning
| | - |  | ---------------



| |  |  | Athletic/Health Club
| | - |  | --------------------



| | (iii) | the services of Medisys Health Group Inc. have been retained to provide mandatory and regular Health Examinations to our senior executive team.
| | ----- | -----------------------------------------------------------------------------------------------------------------------------------------------



---

SCHEDULE B



CONFIDENTIALITY, NON-SOLICITATION AND NON-COMPETITION

AGREEMENT



LOGO



EMPLOYEE CONFIDENTIALITY AND

NON-SOLICITATION AGREEMENT - GENERAL



As an employee of Open Text Corporation or any related or affiliated company (the Company):



A.    I understand and agree that I have a
responsibility to protect and avoid the unauthorized use or disclosure of confidential information of the Company; and



B.    I have a responsibility not to solicit or entice away from the Company any customer of the Company or any employee of the
Company.



I.    Confidential
Information.    For purposes of this Agreement, the term confidential information means all information that is not generally known and which I obtained from the Company, or learn, discover, develop, conceive or
create during the term of my employment with the Company, and which relates directly to the business or to assets of the Company. Confidential information includes, but is not limited to: inventions, discoveries, know-how, ideas, computer programs,
designs, algorithms, processes and structures, product information, research and development information, lists of clients and other information related thereto, financial data and information, business plans and processes, and any other information
of the Company that the Company informs me, or which I should know by virtue of my position or the circumstances in which I learned it, is to be kept confidential. Confidential information also includes information obtained by the Company in
confidence from its vendors or its clients. Confidential information may or may not be labeled as confidential. If I am unsure as to whether information is confidential, I will ask my manager for assistance.



Confidential information does not include any information that has been made
generally available to the public. It also does not include any general technical skills or general experience gained by me during my employment with the Company. I understand that the Company has no objection to my using these skills and experience
in any new business venture or employment following the cessation of my employment with the Company.



I recognize and acknowledge that in the course of my employment with the Company I may obtain knowledge of confidential and proprietary information of a
special and unique nature and value and I may become familiar with trade secrets of the Company relating to the conduct and details of the Companys business. While I am employed by the Company and for a period of three years following the
cessation of my employment I agree:



A.    to keep confidential and hold in secrecy and not disclose, divulge, publish, reveal or otherwise make known, directly or indirectly, or suffer or permit to be disclosed, divulged, published, revealed or otherwise
made known to any person whatsoever, or used (except for the benefit and proper purposes of the







November 24, 1997 General Agreement

page 1



---

Company), and shall faithfully do all in my power to assist the Company in holding in secrecy all of the
Companys confidential information as defined above.



B.    to keep confidential and hold in secrecy and not disclose, divulge, publish, reveal or otherwise make known, directly or indirectly, or suffer or permit to be disclosed, divulged, published, revealed or otherwise
made known to any person whatsoever, or used (except for the benefit and proper purposes of the Company) any and all secrets or confidential information related to the Companys activities or affairs which I now know or which are hereafter
disclosed or made known to me or otherwise learned or acquired by me, including information respecting the business affairs, prospects, operations or strategic plans respecting the Company, which knowledge I gain in my capacity as an employee of the
Company and which knowledge is not publicly available or disclosed.



II.    Agreement Not to Solicit.    I agree that while I am an employee of the Company and for six (6) months thereafter that I will:



A.    not solicit or entice or attempt to solicit or
entice away from the Company any of the employees of the Company to enter into employment or service with any person, business, firm or corporation other than the Company;



B.    not solicit or entice or attempt to solicit or entice away from the Company any customer or any
other person, firm or corporation dealing with the Company.



III.    Return of Documents.    Upon the cessation of my employment with the Company for any reason, I agree to return to the Company all records, documents, memoranda, or other papers, copies
or recordings, tapes, disks containing software, computer source code listings, routines, file layouts, record layouts, system design information, models, manuals, documentation and notes as are in my possession or control. I acknowledge and agree
that all such items are strictly confidential and are the sole and exclusive property of the Company.



IV.    General.



A.    I further represent and warrant that I have not entered into any Agreement with any previous or present employer which would prevent me from accepting employment with the Company or which
would prevent me from lawfully executing this Agreement.



B.    I understand that the obligations outlined in this Agreement are the concern and responsibility of all employees of the Company. I agree to report in writing any violations of these policies to my manager or to the
Vice-President of Human Resources.



C.    All the provisions of this Agreement will be deemed severable, and if any part of any provision is held illegal, void or invalid under applicable law, such provision may be changed to the extent reasonably
necessary to make the provision, as so changed, legal, valid and binding. If any provision of this Agreement is held illegal, void or invalid in its entirety, the remaining provisions







November 24, 1997 General Agreement

page 2



---

of this Agreement will not in any way be affected or impaired, but will remain binding in accordance with
its terms.



D.    This Agreement and all
the rights and obligations arising herefrom shall be interpreted and applied in accordance with the laws of the Province of Ontario and in the courts of the Province of Ontario there shall be exclusive jurisdiction to determine all disputes relating
to this Agreement and all the rights and obligations created hereby. I hereby irrevocably attorn to the jurisdiction of the courts of the Province of Ontario.



E.    I acknowledge that my employment with the Company is contingent on my acceptance and my observance of this Agreement, and
that such employment is adequate and sufficient consideration to bind me to all of the covenants and agreements made by me under this Agreement.





|                      |  |  |  |                       
|--------------------- |  |  |  | ----------------------
|                      |  | 
|                      |  |  |  | Alan Hoverd           
|Print Name of Witness |  |  |  | Print Name of Employee



|                     |  |  |  |                      
|-------------------- |  |  |  | ---------------------
|                     |  | 
|                     |  |  |  | /s/    Alan Hoverd   
|Signature of Witness |  |  |  | Signature of Employee





Date: September 23, 2005.







November 24, 1997 General Agreement

page 3