Document:

exv4w15

Exhibit 4.15

Private & Confidential

February 22, 2002

Mr. Marcos A. Riano

     [ *** ]

Dear Mr. Riano:

This letter will confirm the offer by Offshore Charts Ltd. (the “Company”) of employment to you
for the position of Manager of Offshore Charts Ltd. This offer will remain open for your
acceptance until one minute before midnight on Wednesday, February 27, 2002. The terms are as
follows:

	1.	 	Start Date: Your start date will be Monday, March 25, 2002 or a date that is
acceptable to both parties.
	 
	2.	 	Office: You will be employed in the position noted above, located in North
Vancouver, British Columbia, Canada, reporting to the Vice President of Operations
of the Company. You shall devote the whole of your working time, attention and
ability to the business of the Company. You shall not, without written consent of the
Company, accept other employment, including part time employment. Your
employment as noted above, subject to the Termination Clause listed below, will
continue at the discretion of the Company.
	 
	3.	 	Responsibilities: Your prime responsibilities will be to fulfill the duties of Manager
of Offshore Charts Ltd. as set forth by your supervisor. There may be other duties and
special projects as deemed necessary from time to time.
	 
	4.	 	Salary: You will be paid a gross annual salary of $75,000 per year. Your
compensation will be reviewed from time to time by your supervisor.
	 
	5.	 	Sales Commission: You will be paid a commission equal to 2% on all sales that you
have completed for Offshore Charts Ltd. This payment will be consistent with the
approved commission policy of the Company.
	 
	6.	 	Relocation: You will be eligible for a relocation allowance up to $25,000.
Reimbursement will be made upon receipt of invoices. The condition for this
allowance is continuous employment with the Company for a period of two years.

 

			
	*	 	Certain information in this exhibit has been omitted as confidential, as indicated by [***].
This information has been filed separately with the Commission.

Electronic Chart Data & Services

Page 1 of 10

 

	 	 	Should you part with the Company within this period, a prorated amount, based on
six-month increments, must be reimbursed to the Company.
	 
	7.	 	Hours of Work: The generally recognize “normal” business hours of 40 hours per
week, a minimum of 8 hours per day, Monday to Friday inclusive. You can expect,
however, that while we have designated “normal” office hours, this position will
entail the need to work additional hours from time to time to meet the objectives of
the position and overtime will not be paid.
	 
	8.	 	Option Plan: You may receive an option to purchase shares in the capital stock of
Offshore Systems International Ltd. (“OSI”) in such amounts as set out in the
Employees Stock Option Plan and at such prices as OSI’s Board of Directors
determines at their sole and absolute discretion. The options shall be subject to the
applicable rules and policies of the Employee Stock Option Plan and the relevant
Stock Exchanges.
	 
	9.	 	Benefits: Participation in our Employee Benefits Plan is a condition of employment.
The three-month waiting period will be waived, conditional to acceptance from our
benefit carriers.
	 
	10.	 	Vacation: You will be entitled to three weeks of paid vacation per year after one
year of employment to be taken at a time or times acceptable to the Company, acting
reasonably, having regard to its operational requirements.
	 
	11.	 	Expenses: You will be reimbursed for all authorized traveling and out-of-pocket
expenses actually, exclusively and necessarily incurred in the course of your duties on
the provision of appropriate receipts.
	 
	12.	 	Termination: If your employment is terminated for reasons other than cause, you
will receive notice or pay in lieu of notice for the “Notice Period”. The term “cause”
in the preceding sentence shall include: any breach of fiduciary duty by you:
persistent inability or unwillingness to fulfill material job requirements: unauthorized
disclosure or use of the Company’s confidential information which has the potential
to be material in its consequences to the Company: any dishonesty: serious
insubordination: or repeated failure to follow responsible directives from the
Company. Also, the Company will, during the Notice Period, continue employer
contributions for those benefit plans for which the benefits insurer will allow benefit
continuation after termination of employment. The Notice Period is eight weeks
during the first year following commencement of this employment contract and one
additional week per year of service. The Company may pay severance in lieu of
Notice.
	 
	13.	 	Proprietary Rights: As a condition of your employment you agree to be bound by
and execute the form of Proprietary Rights Agreement set out in Schedule A.

Electronic Chart Data & Services

Page 2 of 10 

 

 

	14.	 	Governing law and jurisdiction. This agreement shall be governed by and construed in
accordance with the law of the Province of British Columbia and the laws of Canada therein.

If you are in agreement with the terms of this offer, please sign and date one copy and return it
to me.

	 	 	 	 	 
	Yours very truly 

Offshore Charts Ltd.

 	 
	/s/ Kenneth Kirkpatrick
 	 
	Ken Kirkpatrick  	 
	Vice President of Operations 	 
	 

I accept employment on the terms and conditions outlined in this letter.

	 	 	 	 	 	 	 
	/s/ Marcos Riano
 

Employee signature

	 	 
	 	FEB 27, 2002
 

Date
	 	 

Please sign one of the options below:

	 	 	 
	I verify that I met with

__________________________________ on

	 	I have read this agreement and its
attachments, and I hereby waive
independent legal advice.
	 
	 	 
	                    , 2002 and provided
independent legal advice with
respect to the
terms of the
above-noted Employment
Agreement, including all attached
schedules as noted in the
agreement thereof.

	 	/s/ Marcos Riano
 

Employee’s signature
	 
	 	 
	 

Solicitor’s signature
	 	 
	 
	 	 
	 

(name — printed)
	 	 
	 
	 	 
	 

(name of firm — printed)
	 	 

Electronic Chart Data & Services

Page 3 of 10 

 

 

Schedule A

PROPRIETARY RIGHTS AGREEMENT

Whereas I, Marcos Riano, recognize that OFFSHORE SYSTEMS INTERNATIONAL LTD. and its affiliates
including without limitation Offshore Systems International Inc., Offshore Systems Ltd., Offshore
Charts Ltd. (collectively, the “Company”) is engaged in a continuous program of software research
and development and the marketing of software products and computer systems, and that the Company
also provides technical support, consultation, and training services. I also recognize the
importance of protecting the Company’s trade secrets, confidential information, partner and
customer relationships and other proprietary information and related rights acquired through the
Company’s expenditure of time, effort and money.

Therefore, because I wish to be employed by the Company in a capacity in which I will receive
and/or contribute to the Company’s Confidential Information, and in consideration of the salary or
wages I will receive from the Company and for my employment by the Company, I agree to be bound by
the following terms and conditions:

	1.	 	Definitions
	 
	 	 	For the purpose of this Agreement:

	 	(a)	 	“Confidential Information” includes any of the following:

	 	(i)	 	any and all versions of the software and related documentation owned
or marketed by the Company, as well as the software and documentation owned by the
Company’s suppliers and used internally by the Company, including all related
algorithms, concepts, data, designs, flowcharts, ideas, programming techniques,
specifications and source code listings;
	 
	 	(ii)	 	all developments (as defined below):
	 
	 	(iii)	 	information regarding the Company’s business operations, methods and
practices, including marketing strategies, product pricing, margins and hourly rates
for staff, and information regarding the financial affairs of the Company;
	 
	 	(iv)	 	the names of the Company’s clients and the names of the Company’s
business partners and suppliers of computer services and software to the Company, and
the nature of the Company’s relationships with these clients, partners and suppliers.

Electronic Chart Data & Services

Page 4 of 10 

 

 

	 	(v)	 	technical and business information of or regarding the clients of the
Company obtained in order for the Company to provide such clients with training
services and software products and services, including information regarding the
data processing requirements and the business operations, methods and practices
and product and training plan of such clients; an
	 
	 	(vi)	 	any other trade secrets or confidential or proprietary information in
the possession or control of the Company, but Confidential Information does not
include information which is or becomes generally available to the public without
my fault or which I can establish, through written records, was in my possession
prior to its disclosure to me as a result of my work for the Company.

	 	(b)	 	“Developments”: include all

	 	(i)	 	software, documentation, data, designs, reports, flowcharts,
training kits and other training materials, trade-marks, specifications and source
code listings, and any related works, including any enhancements, modifications,
or additions to the software products owned, marketed or used by the Company, and
	 
	 	(ii)	 	inventions, devices, discoveries, concepts, ideas, algorithms,
formulae, know-how, processes, techniques, systems and improvements, whether
patentable or not developed, created, generated or reduced to practice by me, alone
or jointly with others, during my employment with the Company or which result from
tasks assigned to me by the Company or which result from the use of the premises or
property (including equipment, supplies or Confidential Information) owned, leased or
licensed by the Company.

	2.	 	Non-Disclosure of Confidential Information
	 
	 	 	At all times during and subsequent to the termination of my employment with the Company, I
shall keep in strictest confidence and trust the Confidential Information. I shall take all
necessary precautions against unauthorized disclosure of the Confidential Information, and I
shall not directly or indirectly disclose, allow access to, transmit or transfer the
Confidential Information to a third party, nor shall I copy or reproduce the Confidential
Information except as may be reasonably required for me to perform my duties for the Company.
	 
	3.	 	Restricted Use of Confidential Information

	 	(a)	 	At all times during and subsequent to the termination of my employment with
the Company, I shall not use the Confidential Information in any

Electronic Chart Data & Services

Page 5 of 10 

 

 

	 	 	 	manner except as reasonably required for me to perform my duties for
the Company.
	 
	 	(b)	 	Without limiting my obligations under subsection 3(a), I agree that at all
times during and subsequent to the termination of my employment with the
Company, I shall not use or take advantage of the Confidential Information
for creating, maintaining or marketing, or aiding in the creation, maintenance
or marketing, of any software which is competitive with any software owned
or marketed by the Company.
	 
	 	(c)	 	Upon the request of the Company, and in any event upon the termination
of
my employment with the Company, I shall immediately return to the
Company all materials, including all copies in whatever form, containing the
Confidential Information which are in my possession or under my control.

	4.	 	Ownership of Confidential Information

	 	(a)	 	I acknowledge and agree that I shall not acquire any right, title or
interest in
or to the Confidential Information.
	 
	 	(b)	 	I agree to make full disclosure to the Company of each Development
promptly after its creation. I hereby assign and transfer to the Company, and
agree that the Company shall be the exclusive owner of, all of my right, title
and interest to each Development throughout the world, including all trade
secrets, patent rights, copyrights and all other intellectual property rights
therein. I further agree to cooperate fully at all times during and subsequent
to my employment with respect to signing further documents and doing such
acts and other things reasonably requested by the Company to confirm such
transfer of ownership of rights, including intellectual property rights,
effective at or after the time the Development is created and to obtain patents
or copyrights or the like covering the Developments. I agree that the
obligations in this clause (b) shall continue beyond the termination of my
employment with the Company with respect to Developments created during
my employment with the Company.
	 
	 	(c)	 	I agree that the Company, its assignees and their licensees are not
required to
designate me as the author of any Developments. I hereby waive in whole all
moral rights which I may have in the Developments, including the right to
the integrity of the Developments, the right to be associated with the
Developments, the right to restrain or claim damages for any distortion,
mutilation or other modification of the Developments, and the right to
restrain use or reproduction of the Developments in any context and in
connection with any service, cause or institution.

Electronic Chart Data & Services

Page 6 of 10 

 

 

	 	(d)	 	Listed in Appendix I to this Agreement are those works and inventions
created by me, alone or jointly with others, prior to my employment by the Company,
which are exempt from the operation of this Agreement. If nothing is listed in
Appendix I, I represent that I have made no such works or inventions as of the date of
this Agreement.

	5.	 	Protection of Computer Systems and Software
	 
	 	 	I agree to take all necessary precautions to protect the computer systems and software
of the Company and of the suppliers and clients of the Company.
	 
	6.	 	Non-Competition
	 
	 	 	I agree that while I am employed by the Company, and for twelve months following the
termination of my employment with the company, without the prior written approval of the
Board of Directors of the Company, I will not become engaged, directly or indirectly as an
employee, consultant, partner, principal, agent, proprietor, shareholder (other than a
holding of shares listed on a stock exchange that does not exceed 2% of the outstanding
shares so listed) or advisor, in a business anywhere in the world where the Company marketed
its products or services during the period of my employment with the Company; that develops
or markets software competitive with the software owned or marketed by the Company, or
provides consulting, maintenance, support or training services that are competitive with the
consulting, maintenance, support or training services provided by the Company.
	 
	7.	 	Non-Solicitation of Clients
	 
	 	 	I agree that while I am employed by the Company, and for twelve months immediately following
the termination of my employment with the company, I shall not, directly or indirectly,
contact or solicit any Clients of the Company for the purpose of selling or supplying to these
Clients or the Company any products or services which are competitive with the products or
services sold or supplied by the Company at the time of my termination. The term “Client of
the Company” in the preceding sentence means any business or organization that:
	 
	 	 	(a) was a client of the Company at the time of the termination of my employment
with the Company; or
	 
	 	 	(b) became a client of the Company within six months after the termination of my
employment with the Company if I was involved with the marketing effort in
respect of such client prior to the termination of my employment with the
Company.

Electronic Chart Data & Services

Page 7 of 10 

 

 

	8.	 	Non-Solicitation of Employees
	 
	 	 	I agree that while I am employed by the Company, and for 12 months after the termination of
my employment with the Company, I shall not directly or indirectly hire any employees of or
consultants or contractors to the Company nor shall I solicit or induce or attempt to induce
any persons who were employees of or consultants to the Company at the time of such
termination or during the 90 days immediately preceding such termination, to terminate their
employment or consulting agreement with the Company, without the prior consent of the
Company.
	 
	9.	 	Confidentiality
	 
	 	 	Upon ceasing to be employed by the Company for whatever reason, I will immediately return to
the Company all client lists, records and other material containing confidential information
relating to the business and products of the Company.
	 
	 	 	I acknowledge and agree that such material is for the benefit of the Company and I agree to
keep it confidential both during and at any and all times after my employment with the
Company, all such information or property which related to the Company’s business and
products.
	 
	10.	 	Reasonableness of Non-Competition and Non-Solicitation Obligations
	 
	 	 	I confirm that the obligations in Sections 6, 7 and 8 are fair and reasonable given that,
among other reasons,
	 
	 	 	(i) the sustained contact I will have with the clients of the Company will expose me to
Confidential Information regarding the particular requirements of these clients and the
Company’s unique methods of satisfying the needs of these clients, all of which I agree not to
act upon to the detriment of the Company; and/or
	 
	 	 	(ii) I will be performing important development work on the software owned or marketed by
the Company, and I agree that the obligations in Sections 6, 7 and 8, together with my other
obligations under this Agreement, are reasonably necessary for the protection of the Company’s
proprietary interests. I further confirm that the geographic scope of the obligation in
Section 6 is reasonable given the international nature of the market for the products and
services of the Company. I also agree that the obligations in Sections 6, 7 and 8 are in
addition to the non-disclosure and other obligations provided elsewhere in this Agreement. I
also acknowledge that my obligations contained in this Agreement will not preclude me from
becoming gainfully directly employed in the computer software industry or applicable product
training following a termination of my employment with the Company given my general knowledge
and experience in the computer industry.

Electronic Chart Data & Services

Page 8 of 10 

 

 

	11.	 	Non-Conflicting Obligations
	 
	 	 	(a) I acknowledge and represent to the Company that my performance as an
employee of the Company shall not breach any agreement or other obligation to
keep confidential the proprietary information of any prior employer of mine or any
other third party. I further acknowledge and represent that I am not bound by any
agreement or obligation with any third party which conflicts with any of my
obligations under this Agreement.
	 
	 	 	(b) I represent and agree that I will not bring to the Company, and shall not use
in the performance of my work with the Company, any trade secrets, confidential
information and other proprietary information of any prior employer of mine or any
other third party. I represent and agree that in my work creating Developments I
will not knowingly infringe the intellectual property rights, including copyright, of
any third party.
	 
	 	 	(c) I agree that during the time that I am employed by the Company I shall
devote my full working time and attention to the affairs of the Company and I shall
not be employed by, or perform services for, or otherwise be engaged in any
business with, any other entity without the prior written consent of the Company.
	 
	12.	 	Enforcement
	 
	 	 	I acknowledge and agree that damages may not be an adequate remedy to compensate the Company
for any breach of my obligations contained in this Agreement, and accordingly I agree that in
addition to any and all other remedies available, the Company shall be entitled to obtain
relief by way of a temporary or permanent injunction to enforce the obligations contained in
this Agreement.
	 
	13.	 	General
	 
	 	 	(a) This Agreement shall be governed by the laws in force in the Province of
British Columbia. If any provision of this Agreement is wholly or partially
unenforceable for any reason, such unenforceable provision or part thereof shall be
deemed to be omitted from this Agreement without in any way invalidating or
impairing the other provisions of this Agreement. In this Agreement any reference
to a termination of employment shall include termination for any reason whatsoever
and with or without cause.
	 
	 	 	(b) The rights and obligations under this Agreement shall survive the termination
of my service to the Company and shall inure to the benefit of and shall be binding
upon (i) my heirs and personal representatives and (ii) the successors and assigns of
the Company.

Electronic Chart Data & Services

Page 9 of 10 

 

 

I HAVE READ THIS AGREEMENT. I UNDERSTAND IT, AND I HAVE HAD THE OPPORTUNITY TO OBTAIN
INDEPENDENT LEGAL ADVISE IN RESPECT OF IT, AND I AGREE TO ITS TERMS.

	 	 	 	 	 	 	 	 	 
	I acknowledge having received a fully
executed copy of this Agreement.	 	 	 	On behalf of the Company:
	 
	 	 	 	 	 	 	 	 
	Employee:	 	OFFSHORE SYSTEMS INTERNATIONAL LTD.
	 
	 	 	 	 	 	 	 	 
	Marcos Riano	 	 	 	President & CEO
	Name (printed)	 	 	 	Title (Printed)
	 
	 	 	 	 	 	 	 	 
	/s/ Marcos Riano	 	 	 	Per:	/s/ Kenneth Kirkpatrick
	Employee Signature	 	 	 	Signature
	 
	 	 	 	 	 	 	 	 
	Date:

	 	February 27, 2002
	 	 	 	Date:
	 	 
	 
	 	 	 	 	 	 	 	 
	Witness to the Employee’s signature:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name (printed)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Witness’s Signature	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	 	 	 

Electronic Chart Data & Services

Page 10 of 10 

 

 

Private & Confidential

November 14, 2002

Marcos Riano

OSL Geomatics

Dear Marcos:

This letter will confirm your promotion from Manager of Operation to Director of Operations with
OSI Geomatics, effective December 1, 2002. Your annual salary will be increased from $75,000 to
$85,000 and all other conditions of your employment will remain the same.

If you are in agreement with the terms of this offer, please sign and date one copy of this letter
and return it to me.

Marcos, I would like to take this opportunity to thank you for your contributions to the company
and to wish you the very best in your role.

	 	 	 	 	 
	Yours very truly

OSL Geomatics

 	 	 
	/s/ Kenneth Kirkpatrick
 	 	 
	Ken Kirkpatrick 	 	 
	Vice President & General Manager 	 	 

I accept the terms and conditions of employment as outlined in this letter.

	 	 	 
	/s/ Marcos Riano

	 	November 18, 2002
	 

	 	 
	Employee signature

	 	Date

 

 

February 27, 2007

Marcos Riano

c/o Mapcon Mapping Ltd.

#107-930 West 1st Street

North Vancouver, BC V7P 3N4

Dear Marcos,

The 2006 annual performance and salary reviews have been completed. This letter will confirm a
change in your salary.

As of December 1, 2006, your annual salary will increase from $85,000 to $100,000 per annum.

I am also pleased to inform you that you have been awarded a bonus for fiscal year 2006 in the
amount of $5,000.00.

Your salary change will be reflected on your March 2 pay (including retro payment).

For fiscal year 2007, the RRSP matching contribution amount will be a maximum of 4% of your base
earnings.

In addition, for fiscal year 2007, you will be eligible for a potential bonus amount of up to 20%
of your base salary. 10% of your bonus is contingent upon the meeting of divisional financial goals
and 10% is contingent upon the meeting of your own personal non-financial objectives.

I would like to take this opportunity to thank you for your support and contribution to the success
of the Company.

	 	 	 	 	 
	Sincerely,

Mapcon Mapping Ltd.

 	 	 
	/s/ Gary Manzer
 	 	 
	Gary Manzer 	 	 
	GM Mapcon Mapping 	 	 

LT

 

 

November 22, 2007

Marcos Riano

[***]

Dear Marcos,

This letter is to confirm that, effective today, you have been promoted from your role as Director,
Operations of the Mapcon Mapping Division to Vice President and General Manager (VP & GM), Mapcon
Mapping reporting to myself.

In addition to your current reporting structure, the Director of Business Development, the Sales
Managers and the Divisional Controller will report to yourself.

As part of this promotion, your salary will increase from $100,000 per annum to $125,000 per annum
retroactive to Friday, November 9, 2007.

In addition, for fiscal year 2008, you will be eligible for a potential bonus amount of up to 30%
of your base salary for meeting financial and non-financial objectives which will be defined during
the upcoming performance review process.

Congratulations, Marcos, and thank you for your continued support and contribution to the success
of Mapcon Mapping.

	 	 	 	 	 
	Sincerely,

OSI Geospatial Inc.

 	 	 
	/s/ Kenneth Kirkpatrick
 	 	 
	Ken Kirkpatrick 	 	 
	President & CEO 	 	 

JJS

 

 

April 10, 2008

Marcos Riano

[***]

Re: Addendum to Employment Agreement Dated Feb 22, 2002

Dear Marcos,

This letter is to update the termination clause from your original employment letter dated February
22, 2002 and replace it with the following paragraphs:

“The Company may terminate your employment without cause either upon payment of a sum equivalent to
12 months’ base salary less statutory deductions, or by continuation of payment of your Base Salary
for a period of 12 months following termination.

In addition, the Company will continue to pay the allowable employer’s portion of premiums under
the Company’s employee benefits plan then in effect for you and your eligible dependants for a
period of 12 months from the date of termination or until you are covered under another employer’s
employee benefits plan, whichever occurs first. If you do become covered under another employer’s
benefits plan within that 12 month period, you shall promptly notify the Company of that fact.”

Thank you, Marcos, for your continued support and contribution to the success of Mapcon Mapping.

	 	 	 	 	 
	Sincerely,

Mapcon Mapping

 	 	 
	/s/ Kenneth Kirkpatrick
 	 	 
	Ken Kirkpatrick 	 	 
	President & CEO 	 	 

JJSexv4w16

Exhibit 4.16

EMPLOYMENT AGREEMENT

     This Employment Agreement is made as of the 14th day of December, 2005 between CHI Systems, Inc.
(the “Company”) and Wayne Zachary (the “Executive”).

     WHEREAS the Executive has been serving as a senior executive of the Company and;

     WHEREAS the Company desires to continue to retain the services of the Executive and the
Executive desires to continue to perform services for the Company;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements
hereinafter set forth, the Company and the Executive agree as follows:

     1. Term of Employment. The term of the Executive’s employment hereunder
shall begin on the date on which the purchase of all of the issued and outstanding shares of the
Company (the “Purchase”) by Offshore Systems International Ltd. (“OSIL”) (the “Effective Date”) is
closed, and shall end on the 3rd anniversary of the Effective Date, subject to earlier termination
pursuant to Section 5 of this Agreement. In the event that the Purchase does not close, this
Agreement shall be null and void ab initio and of no further force and effect. Following
this initial term, and subject to Section 5 hereof, this Agreement shall be deemed to be
automatically extended for successive one (1) year periods, unless either party gives the other
written notice of its intention not to renew this Agreement at least ninety (90) days prior to the
end of the initial or any extended term (the initial term and any extensions thereof referred to
herein as the “Term”).

     2. Position and Duties. During the Term, the Executive shall be employed in the
position of Chief Executive Officer and in such position shall report to the Board of Directors
of the Company (the “Board”), subject to adherence to the requirements of the Special Security
Agreement governing the operations of the Company. The Executive shall faithfully and diligently
perform such duties and exercise such powers as are consistent with his position, perform such
other related duties and responsibilities and serve in such other positions as may be assigned to
him from time to time by the Board. In addition, the Executive shall serve as an Officer /
Director within the meaning of and pursuant to ther terms of any Special Security Agreement
governing the operations of the Company. The Executive shall devote substantially all of his
business time, attention and skill to his duties to the Company and shall not engage in,
participate in, render any service to, or undertake any employment, either directly or indirectly,
with respect to any other business or for any other entity, without the prior written consent of
the Company.

     3. Place of Employment. The Executive’s principal office and place of
employment shall be at 1035 Virginia Drive, Fort Washington, PA, or within a twenty (20)
mile radius of this location. The Executive acknowledges that he may be required to travel
from time to time at the request of the Company to discharge his duties to the Company, and
agrees to such travel obligations.

 

 

     4. Compensation and Benefits.

          (a) Base Salary and Bonus. During the Term, the Executive’s annual base salary (“Base
Salary”) shall be U.S. $200,000, payable in accordance with the Company’s
payroll practices as in effect from time to time. The Executive’s Base Salary shall be
subject to review and possible adjustment in accordance with the Company’s normal practices and
the terms of any Special Security Agreement governing the operations of the Company, but in no
event shall Executive’s Base Salary be less than the amount specified in the first sentence of
this Section 4(a). In addition, during each year of the Term, the Executive may be eligible to
receive an annual cash bonus of up to 40% of the Executive’s Base Salary, subject to meeting
reasonable objectives mutually established by OSIL’s COO and by the Executive.

          (b) Stock Options. The Executive shall be eligible for participation in OSIL’s stock
option plans or share incentive plans which are now in place or may hereafter be established by
OSIL. The Executive acknowledges that any grant of options or other share incentives to the
Executive are in the discretion of the board of directors of OSIL, subject to the terms of any
Special Security Agreement governing the operations of the Company. Any stock options or other
share incentives so granted shall be subject to the terms and conditions of, and shall be
administered in accordance with, the formal plan under which they were granted.

          (c) Benefits. During the Term, the Executive (and, to the extent eligible, his
dependents) shall be entitled, and hereby agrees, to continue to participate in the Company’s
executive employee benefit plans in which he participated immediately prior to the Effective Date
(including but not limited to health insurance and short and long-term disability insurance, with
substantially the same levels of benefits and with substantially the same terms and conditions as
were in effect immediately prior to the Effective Date of this Agreement), and in any other such
plans that are generally made available to senior executives of the Company. All such benefits
plans in place as of the date of execution of this Agreement are listed in Appendix A to this
Agreement. The Executive shall also be subject to the same leave time policies as set forth in the
Company’s Employee Handbook (revised June 2004). The Company shall have the right to amend or
replace any such plans and policies, provided that such amended policies or new policies do not
provide materially lesser value or benefits than were provided under the policies in effect
immediately prior to the Effective Date of this Agreement. The Company shall not be obligated to
continue to maintain the existing key-man life insurance policy on the Executive under which the
Company is named as the beneficiary or any life insurance policies which may be currently in place
to fund a purchase of the shares on the death of the Executive pursuant to the existing
shareholders’ agreement among the Executive and of the Company’s shareholders.

          (d) Expenses. The Company shall pay or reimburse the Executive for all reasonable business
expenses incurred by him in the performance of his duties under this Agreement in accordance with
the Company’s policies and practices in effect from time to time following receipt from the
Executive of written substantiation of such charges which is acceptable to the Company. The Company
shall continue to provide the Executive with one or more corporate credit cards to be used by the
Executive solely for Company business, subject to the Company’s policies governing such use.

Page 2

 

          (e) Vacation. The Executive shall be entitled to 4 weeks vacation per year, in
accordance with the policies regarding vacation as set forth in the Company’s Employee Handbook
(revised June 2004).

          (f) Auto Allowance: The Executive shall be entitled to a company leased or owned
automobile with an MSRP not to exceed $30,000 during 2006, which amount shall be adjusted at the
time that a new automobile lease is entered into by a percentage equal to the percentage increase
in the U.S. consumer price index between January 1, 2006 and the date of the new lease. The
Company will cover the lease payments and cost of automobile insurance premiums, maintenance and
service respecting such vehicle. The Company shall have discretion in determining the duration of
any such lease in accordance with reasonable commercial practices.

     5. Termination of Employment. The Executive’s employment may be
terminated in accordance with the following:

          (a) Death. The Executive’s employment shall terminate upon his death.

          (b) Disability. The Company may terminate the Executive’s employment if, in the good
faith judgment of the Board, the Executive becomes physically or mentally unable to substantially
and completely perform his duties hereunder for a period of 90 days during any six-month period or
for any 90 consecutive days. To assist the Boardin making this determination, the Executive agrees
to submit, at the request of the Board, to a physical and/or mental examination by a physician
mutually selected by the Board and by the Executive’s personal physician, and to grant to the
Board, and any physician it designates, access to all relevant medical information concerning him
and to cause his own physicians to be available to discuss his health with the Board.

          (c) Without Cause. The Company may terminate the Executive’s employment at any time
upon providing thirty (30) days written notice to the Executive.

          (d) Voluntary Termination. The Executive may terminate his employment for any reason
or no reason upon providing the Company thirty (30) days written notice of termination.

          (e) Cause. The Company may terminate the Executive’s employment at any time,
effective immediately, for Cause. “Cause” shall mean any of the following: (i) actions by the
Executive which materially damage the Company’s or an affiliate’s business or reputation; (ii) the
Executive’s violation of any material policy, standard, rule, or practice of the Company, if such
violation in fact causes material damage to the Company’s or an affiliate’s business or
reputation; (iii) the Executive’s breach of his fiduciary duties to the Company or its affiliates,
if such breach in fact causes material damage to the Company’s or an affiliate’s business or
reputation; (iv) the Executive’s continued failure or neglect to substantially perform his duties
hereunder; (v) a breach of any material provision of this Agreement; (vi) the Executive’s
conviction of, or plea of nolo contendere to, a felony, or (vii) the revocation of the Executive’s
current level of security clearance from the U.S. government; provided, however, that the Company
may terminate Executive’s employment for Cause under subsections (i) through (v)

Page 3

 

hereof only if it provides written notice to the Executive of an intent to terminate for Cause,
which notice specifies the grounds allegedly constituting Cause, and the Executive fails to
reasonably cure or eliminate such grounds within thirty (30) days of his receipt of such notice;
and provided further, that as used in this Agreement (including in section 8), the term
“affiliate” means a company in which Offshore Systems International LTD (“Offshore”) or a
subsidiary thereof has a majority ownership interest, and does not include joint ventures with the
Company or with Offshore or any of its subsidiaries, or any other entities with which Offshore may
have a business relationship but not a majority ownership interest..

          (f) Termination by Executive for Good Reason. The Executive may terminate his
employment at any time for Good Reason. As defined herein, the term “Good Reason” shall mean any
of the following: (a) a material breach by the Company of any of its obligations hereunder; (b) a
material diminution in the Executive’s duties or level of responsibility; (c) a reduction in
Executive’s Base Salary below the level specified in paragraph 4(a) or a material diminution in
the level or benefits provided to the Executive; (d) the relocation of the Executive’s place of
employment, without Executive’s consent, to a location which is not within a radius of twenty (20)
miles from the address specified in Section 3 above; and (e) any other actions or failures to act
by the Company that would constitute a “constructive discharge” under applicable legal principles;
provided, however, that the Executive may resign for Good Reason only if he provides written
notice to the Company of an intent to resign for Good Reason, which notice specifies the grounds
allegedly constituting Good Reason, and the Company fails to reasonably cure or eliminate such
grounds within thirty (30) days of its receipt of such notice.

     6. Obligations of the Company Upon Termination.

          (a) Upon termination of employment by either the Executive or the Company for any reason, the
Executive shall be entitled to be paid (i) any earned but unpaid Base Salary, (ii) any Bonus
earned but unpaid from the prior fiscal year, (iii) reimbursement for any expenses incurred by him
but unpaid as of the date of termination, and (iv) any earned but unused vacation due under the
Company’s Employee Handbook (revised June 2004), subject to the provisions of that Handbook. These
amounts shall be payable in cash within 30 days of such termination date.

          (b) Upon the Company’s termination of the Executive’s employment for any reason other than for
Cause in accordance with section 5(e), or upon the Executive’s termination of his employment for
Good Reason, and in consideration for the Confidentiality and Non-Disclosure, Non-Competition and
Non-Solicitation provisions hereof, the Executive will be entitled to the payment set forth in
paragraph 6(a) above and, in addition, to the continuation of his Base Salary for a period of
twelve (12) months following such termination, payable as and when his Base Salary otherwise would
have been payable. The Company shall also pay for the cost of the Executive’s COBRA premiums for a
period of twelve (12) months from the date of termination or until the Executive is fully covered
under another employer’s group health plan, whichever date occurs first, and if Executive does
become fully covered within that twelve month period, he shall promptly notify the Company of that
fact. In the event payments are payable to Executive pursuant to this Section 6(b), no severance
benefits shall be payable to the Executive under any severance plan maintained by the Company.

Page 4

 

          (c) Executive’s entitlement to any compensation under this Section also is subject to the
Executive’s execution of a release of all claims against the Company; provided, however, that (i)
such release does not impose any new obligations or restrictions on the Executive not encompassed
within this Agreement and (ii) such release is reciprocal, containing
a release of all claims that the Company may have against the Executive.

     7. Confidentiality and Non-Disclosure.

          (a) The Executive shall not, either during or after the Term, divulge or communicate to any
person (except in performing his duties under this Agreement) or use for his own purposes or for
the benefit, purposes or account of the Executive or any other person, trade secrets, confidential
commercial information, or any other information, knowledge, or data of the Company or of any of
its affiliates which is not generally known to the public, and shall use his best efforts to
prevent the publication or disclosure by any other person of any such secrets, information,
knowledge, or data. Confidential information includes, without limitation, information relating to
the Company’s business plans, financial matters, customers, employees, contracts, and all other
secrets and information of a confidential or proprietary nature. The confidentiality and
non-disclosure obligations imposed by this Section 7 will cease if such confidential or
proprietary information becomes, through no fault of the Executive, generally known to the public
or the Executive is required by law to make disclosure (after giving the Company notice and an
opportunity to contest such requirement). The terms of this Section 7 shall be in addition to the
terms of any confidentiality agreement that may previously or contemporaneously herewith have been
executed by the Executive, which will continue in effect and be made a part of this Agreement, and
shall not be read or interpreted to limit, diminish, circumscribe or conflict with the terms or
requirements of any such confidentiality agreement.

     8. Non-Competition. The Executive agrees that during the Term, and for a
period of one (1) year following the termination of this Agreement for any reason, he shall
not
directly or indirectly, with or without compensation, be engaged in any work or activity for
or
with, or have any financial interest in, any business materially in competition with, or which
may
materially compete with the Business of the Company (or with the Business of any affiliate for
which the Executive performed substantial services hereunder) within any country, state,
region,
or locality in which the Company or such affiliate is then doing business or marketing its
products, as the business of the Company or such affiliate may then be constituted. For
purposes
of this Agreement, the Business of the Company and of any affiliate means (i) the provision of
research and development services and tools to Federal Government agencies responsible for
national defense, homeland defense, and healthcare clinical information management —
specifically, in areas relating to training systems, cognitive engineering, decision support
systems, and command, control, communications, computing, intelligence, surveillance, and
reconnaissance (C4ISR) systems and (ii) any other business in which the Company is engaged as
of the date of termination of this Agreement. Also, for purposes of this Agreement, the
Executive shall be deemed to be engaged in such a Business if he is a principal, agent,
consultant, employee, officer, director, or partner, of any person, partnership, corporation,
trust
or other entity which is engaged in such a Business, and he shall be deemed to have a
financial
interest in such an entity if he has an equity interest, or interest convertible into equity,
in any
entity engaging in the Business; provided, however, that the foregoing shall not prohibit the
Executive from owning, for the purpose of passive investment, less than two percent (2%) of
any

Page 5

 

class of securities of a publicly held corporation. The terms of the Section 8 shall be in
addition to the terms of any agreement previously entered into by the Executive, expressly
including that certain Share Purchase Agreement dated for reference November 2, 2005 among OSIL,
the Company, the Executive and the other shareholders of the Company respecting the Purchase.

     9. Non-Solicitation. The Executive agrees that for a period of two (2) year after the
termination of his employment for any reason, he will not, on behalf of himself or any person,
firm, partnership, joint venture, corporation or other business organization directly or indirectly
induce, solicit, or participate in the inducement or solicitation, either directly or through a
third party, of any person who is an officer, director, employee, principal or agent of the Company
or any affiliate to leave his or her employment, agency, directorship or office with the Company or
any affiliate, or to induce or solicit any person to not commence an employment or business
relationship with the Company or any affiliate.

     10. Company Ownership. Except to the extent required by any applicable
governmental contract, statute, regulation or rule, the Executive hereby agrees that any and all
improvements, inventions, patents, patent applications, software, research, data reports,
copyrightable works of authorship, concepts, discoveries, formulae, processes, methods, know-how,
confidential data, trade secrets and other proprietary information (collectively, “Work Product”)
within the scope of any business of the Company or any affiliate which the Executive may conceive
or make, or have conceived or made, during his employment with the Company shall be and are the
sole and exclusive property of the Company or any such affiliate. The Executive shall, whenever
requested to do so by the Company or any affiliate, and without any obligation on the part of the
Company or such affiliate to pay any royalty or other compensation to the Executive, at the
Company’s or affiliate’s expense, execute and sign any and all applications, assignments or other
instruments and do all other things which the Company or its affiliate may deem necessary or
appropriate (i) in order to apply for, obtain, maintain, enforce or defend letters patent in the
United States or in any foreign country for any Work Product, and/or (ii) in order to assign,
transfer, convey or otherwise make available to the Company or such affiliate the sole and
exclusive right, title, and interest in and to any Work Product.

     11. Injunctive Relief. The Executive acknowledges and agrees that the remedy at law
available to the Company for breach of any of his obligations under Sections 7 through 10 would be
inadequate and that damages flowing from such breach may not readily be susceptible to being
measured in monetary terms. Accordingly, the Executive acknowledges and agrees that, in addition
to any other rights or remedies which the Company may have at law, in equity or under this
Agreement, upon adequate proof of his violation of any such provision of this Agreement, the
Company will be entitled to immediate injunctive relief, and may obtain a temporary order
restraining any threatened or further breach, without the necessity of proof of actual damage. Any
such action may only be filed in a court of competent jurisdiction in the State of Delaware, and
the Executive consents to the personal jurisdiction and venue of such courts.

     12. Security Clearances. The Executive acknowledges and agrees that maintaining his
existing personnel security clearances with various agencies and departments of the Government of
the United States of America will be a continuing condition of his employment with the Company.
The Executive agrees to co-operate with the Company and such agencies and

Page 6

 

authorities and to provide such information as they may reasonably require to maintain such
personnel security clearances and to seek to obtain any increased level of security clearance that
may be appropriate. The Executive hereby consents to the disclosure by the Company to such
authorities of such personal information as has been provided by the Executive to the Company in
connection with his or her employment with the Company.

     13. Confidential Disclosure and Insider Trading. The Executive acknowledges
that:

          (a) OSIL’s common shares are publicly traded;

          (b) he will become privy from time to time to material information about OSIL or material
changes in affairs of OSIL which have not been generally disclosed to the public; and

          (c) that he is a “person in a special relationship” with OSIL and an “insider” of OSIL, as
those terms are defined under applicable Canadian securities regulations and may be an “insider”
of OSIL under applicable U.S. securities regulations. The Executive further acknowledges that he
or she has been provided with a copy of OSIL’s Corporate Governance Policy and Code of Business
Ethics which sets out OSIL’s polices concerning, among other things, the maintenance of
confidentiality with respect to OSIL information and restrictions and prohibitions on trading in
OSIL’s securities. The Executive agrees to comply with such policies, and acknowledges that a
material breach of such policies will constitute a material breach of this Agreement. The
Executive further acknowledges that it is his obligation to comply with all applicable laws and
regulations respecting trading in securities of OSIL.

     14. Notice. All notices or other communications hereunder shall be in writing and
shall be deemed to have been duly given (a) when delivered personally, (b) upon confirmation
of
receipt when such notice or other communication is sent by facsimile, (c) one day after
delivery
to an overnight delivery courier or (d) three days after it has been sent by registered or
certified
mail, return receipt requested postage prepaid, addressed to the addresses set forth below, or
to
such other address as either party may have furnished to the other in writing in accordance

herewith.

If to the Company:

Offshore Systems International LTD

107-930 West 1st Street

North Vancouver, BC Canada V7P3N4

Attention: Chief Operating Officer

with a copy to:

Clark Wilson LLP

800 - 885 West Georgia Street

Vancouver, BC V6C 3H1

Attention: Gerry Shields

Page 7

 

If to the Executive:

Wayne Zachary CHI Systems, Inc.

1035 Virginia Drive, Suite 300

Fort Washington, PA 19034

With a copy to:

Schnader Harrison Segal & Lewis LLP

1600 Market Street, Suite 3600

Philadelphia, PA 19103

Attention: Arthur Brandolph, Esquire

or to such other address as either party may designate by notice to the other, and
shall be deemed to have been given upon receipt.

     15. Miscellaneous.

          (a) Survival. The termination of the Executive’s employment will not impair the rights
or obligations of a party that accrue prior to such termination, except to the extent specifically
stated herein. In addition, the Executive’s covenants contained in Sections 7, 8, 9 and 10 and the
Company’s obligations under Section 6 will survive the termination of the Executive’s employment.

          (b) Amendments and Waiver. Only an instrument in writing signed by the parties may
amend this Agreement, and any provision hereof may be waived only by an instrument in writing
signed by the party against whom enforcement of such waiver is sought. The failure of either party
at any time to require the performance by the other party of any provision hereof shall in no way
affect the full right to require such performance at any time thereafter, nor shall the waiver by
either party of a breach of a provision hereof be taken or held to be a waiver of any succeeding
breach of such provision or a waiver of the provision itself or a waiver of any other provision of
this Agreement.

          (c) Withholding. Executive agrees that the Company may withhold from any and all
payments required to be made to Executive in accordance with this Agreement all federal, state,
local, and other taxes that the Company determines are required to be withheld in accordance with
applicable statutes and regulations in effect from time to time.

          (d) Successors. This Agreement is binding on and is for the benefit of the parties
hereto and their respective successors, heirs, executors, administrators and other legal
representatives. The Company shall require any successor to all or a portion of the business
and/or assets of the Company by purchase, merger, consolidation, acquisition of stock or otherwise
which is or becomes the employer of the Executive to assume and agree to perform this Agreement in
the same manner and to the same extent as the Company would be required to perform if no such
succession had taken place, and a failure of any such successor to the Company which is or becomes
the employer of the Executive to assume and agree to perform

Page 8

 

this Agreement shall be, for all purposes of this Agreement, a termination of this Agreement by the
Company and such successor.

          (e) Assignment. This Agreement and all of Executive’s rights and duties shall not be
assignable or delegable by the Executive. The Company may assign this Agreement to a person or
entity which is an affiliate or a successor in interest to substantially all of the business
operations of the Company, provided that the Company complies with its obligations in the second
sentence of Section 15(d) above.

          (f) Severability of Provisions. If any provision of this Agreement, or portion
thereof, is so broad in scope or duration so as to be unenforceable, such provision or portion
thereof shall be interpreted to be only so broad as is enforceable. If any one or more provisions
contained in this Agreement shall be invalid, illegal or unenforceable in any respect, the
validity, legality, and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby and this Agreement shall be interpreted as if such invalid, illegal,
or unenforceable provision was not contained therein.

          (g) Headings. The headings used in this Agreement are intended for convenience and
reference only and will not in any manner amplify, limit, modify or otherwise be used in the
construction or interpretation of any provision of this Agreement. All section references are to
sections of this Agreement, unless otherwise noted.

          (h) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware, without giving effect to conflict of laws provisions.

          (i) Counterparts. This Agreement may be executed in several counterparts, each of
which shall be deemed an original, but all of which shall constitute one and the same instrument.

          (j) Entire Agreement. This Agreement constitutes the entire agreement between the
parties hereto with respect to the Executive’s employment by the Company, and supersedes, and is
in full substitution of, any and all oral or written prior understandings, representations, or
agreements with respect to the Executive’s employment unless otherwise indicated herein.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated below.

	 	 	 	 	 	 	 	 	 
	Executive	 	 	 	CHI Systems Inc.
	 
	 	 	 	 	 	 	 	 
	/s/ Wayne Zachary	 	 	 	/s/ Kenneth Kirkpatrick
	 
	 	 	 	 	 	 	 	 
	December 13, 2005	 	 	 	December 13, 2005
	Date

	 	 	 	 	 	Date	 	 

Page 9

 

By its signature below, Offshore Systems International Ltd., intending to be legally bound, hereby
guarantees the Company’s obligations hereunder:

	 	 	 	 	 
	Offshore Systems International Ltd.:

 	 	 
	By:  	/s/ Kenneth Kirkpatrick
 	 	 
	 	Name:  	KEN KIRKPATRICK 	 	 
	 	Title:  	CEO 	 	 

Page 10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00143-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00143-of-00352.parquet"}]]