Document:

Exhibit 10.46

Exhibit 10.46

[Certance Letterhead]

TRANSACTION BONUS AND SEVERANCE PROTECTION LETTER

January 4, 2005

Mr. Jim Wold:

Dear Jim,

       Certance LLC, a Delaware limited liability company (the “Company”), considers it essential to foster the continuous employment of the key management personnel of the Company.  In this connection, the Board
of Directors of the Company (the “Board”) recognizes that, in view of the Company’s current desire to merge with another corporation, the possibility of a change of control of the Company exists and that possibility, and the uncertainty and
questions that it may raise, could result in your departure or distraction to the detriment of the Company.  Accordingly, on behalf of the Board, I am pleased to inform you that you have been selected by the Board as a key employee eligible to receive the
Transaction Bonus and certain severance protections described below.

        If you are actively employed by the Company as of the consummation of the “Contemplated Merger” (as defined below) (i) you will be entitled to receive a Transaction Bonus in the amount of $196,031.10 (a
“Transaction Bonus”), subject to your satisfaction of the terms and conditions set forth below, (ii) if at any time within the eighteen month period commencing immediately after the consummation of such Contemplated Merger (the “Severance
Protection Period”) your employment is terminated by the Company (or its successor) without “Cause” or by you for “Good Reason” (each as defined under below) subject to your satisfaction of the terms and conditions set forth below, you
will be entitled to receive a cash payment equal to 100% of your aggregate annual base salary and target annual bonus for the calendar year in which your termination of employment occurs (the “Severance Payments”); provided, however, that, unless
otherwise provided by action of the Board, the Transaction Bonus and the Severance Payments will be payable to you only in the event the Contemplated Merger is consummated prior to July 1, 2005.  Notwithstanding anything to the contrary in this agreement, you
acknowledge that if you receive an offer of employment from Quantum and accept the offer, then you waive any right to claim that the employment arrangement as accepted constitutes Good Reason.

        You will not be entitled to any Severance Payments in the event of (i) your termination of employment for any reason prior to or after the Severance Protection Period or (ii) your termination of employment
during the Severance Protection Period due to any reason other than those described above, including your voluntary resignation of employment without Good Reason, termination of employment by the Company for Cause or your death “Disability” (as defined
below) or retirement.

       

        Any Transaction Bonus that becomes payable to you hereunder will be paid to you in a lump sum cash payment 120 days following the consummation of the Proposed Merger.  Any Severance Payment that becomes payable to
you hereunder will be paid to you in twelve (12) equal monthly installments (on the first day of each month) commencing with the first day of the month immediately succeeding the month in which your termination of employment occurs.

        In consideration for your opportunity to receive the Severance Payments hereunder, you hereby agree to execute an effective release of claims in a form acceptable to the Company.  Your entitlement to any Severance
Payment hereunder is expressly conditioned upon your execution of an effective release of claims in a form acceptable to the Company.

        For purposes of this letter agreement:

        “Cause” means (i) your substantial failure to satisfactorily perform your reasonably assigned duties to the Company or any of its affiliates (including, without limitation, your failure to use your
best efforts to assist in the structuring or consummation of any strategic alternative for the Company that the Board determines to pursue), which failure is not cured within ten days after your receipt of written notice from the Company describing such failure,
(ii) dishonesty in the performance of your duties to the Company or any of its affiliates (iii) an act or acts on your part constituting a felony under the laws of the United States or any state thereof or crime involving moral turpitude, (iv) your
material breach of any written policies or practices of the Company or any of its affiliates, or (v) any other act or omission by you which is materially injurious to the financial condition or business reputation of the Company or any of its affiliates. 
As used in this definition, the term “Company” shall mean the Company or its successor.

        “Disability” means “long term disability” as such term (or similar term) is defined in the Company’s long-term disability policy as in effect from time to time, or if there should be
no such policy or such term is not defined therein, your inability, due to physical or mental incapacity, to substantially perform your duties to the Company for a period of six (6) consecutive months or for an aggregate of nine (9) months in any twenty-four
consecutive month period.  Any questions as to the existence of the Disability as to which the Company and you cannot agree will be determined by the Company in its sole discretion.

        “Good Reason” means (i) any substantial diminution in your duties or a reduction in your annual base salary or target bonus percentage as in effect at the time of the Contemplated Merger, which
diminution or reduction is not remedied within ten (10) days following written notice from you to the Company describing such diminution or reduction, or (ii) a relocation of your principal workplace more than fifty (50) miles from your principal workplace as of the
date hereof made without your written consent.

        “Contemplated Merger” means the consummation of the merger of Quartz Merger Sub, Inc., a Delaware corporation, with and into the Company, as detailed in that certain Agreement and Plan of Merger (the
“Merger Agreement”) dated October 20, 2004.

        Your entitlement to the payment of the Transaction Bonus and/or Severance Payments hereunder will not be subject to mitigation.  Consequently, you will not be obligated to seek alternative employment in the event of
your termination of employment with the Company

or its affiliates (including any successor) and the amount of compensation paid or payable to you hereunder will not be reduced by any compensation paid or payable to you by any future employer.

        Notwithstanding any other provision of this letter agreement, however, the amount of any Severance Payments otherwise payable hereunder are in lieu of any benefit provided under any other severance plan, program, policy
or arrangement of the Company or any of its affiliates (including any successor to the Company or any of its affiliates) in effect at the time of your termination of employment.

        This letter agreement constitutes the entire agreement between you and the Company and it is the complete, final, and exclusive embodiment of our agreement with regard to this subject matter.  It is entered into
without reliance on any promise or representation other than those expressly contained herein.  This letter agreement shall be governed by the laws of the State of California, without reference to the principles of conflict of laws and may be executed in
counterparts, each of which shall constitute an original, but all of which taken together shall constitute one and the same agreement.

        Your rights to the payment of any Transaction Bonus or Severance Payments hereunder may not be assigned, transferred, pledged or otherwise alienated, other than by will or the laws of descent and distribution.

        Unless otherwise determined by the Board, any payments made hereunder shall not be taken into account in computing your salary or compensation for the purposes of determining any benefits or compensation under
(i) any pension, retirement, life insurance or other benefit plan of the Company or any of its affiliates (including any successor to the Company or any of its affiliates) or (ii) any agreement between the Company or any of its affiliates (including any
successor to the Company or any of its affiliates) and you.

        The Company may withhold from the Transaction Bonus and the Severance Payments such Federal, state or local taxes as shall be required to be withheld pursuant to any applicable law or regulation.

        The terms of the Transaction Bonus may not be amended or modified other than by a written instrument executed by parties hereto or their successors and legal representatives.

        Kindly sign this letter agreement in the space indicated below at which time this letter agreement shall become a binding agreement between you and the Company enforceable in accordance with its terms.

	

                                                                                       

	
           

	
Sincerely,

			
 

	

                                                                                       

		
/s/ Howard L. Matthews                     

			

	

                                                                                       

		
President and Chief Executive Officer

Accepted and Agreed to:

	
By:

	
/s/ Jim Wold                

		

	
           

	
Jim WoldExhibit 10.50

Exhibit 10.50

FIFTH AMENDMENT

TO

PARTICIPATION AGREEMENT

            THIS FIFTH AMENDMENT TO PARTICIPATION AGREEMENT (this "Amendment") is dated as of May 26, 2005, by and among QUANTUM CORPORATION, a Delaware corporation, as Lessee (together with
its permitted successors and assigns, the "Lessee"); SELCO SERVICE CORPORATION, an Ohio corporation, as Lessor (together with its permitted successors and assigns, the "Lessor"); COMERICA BANK and KEYBANK NATIONAL ASSOCIATION, as Participants and
SELCO SERVICE CORPORATION, in its capacity as a Participant (together with their permitted successors and assigns, each a "Participant" and collectively the "Participants"); and KEYBANK NATIONAL ASSOCIATION (in such capacity, together with its
successors in such capacity, the "Agent") for the Participants.

RECITALS

     A.     Lessee, Lessor, Agent and Participants are parties to a Participation Agreement dated as of December 17, 2002, as amended by that certain First Amendment to Participation Agreement dated as of January
31, 2003, that certain Second Amendment to Participation Agreement dated as of July 21, 2003, that certain Third Amendment to Participation Agreement dated as of March 30, 2004 and that certain Fourth Amendment to Participation Agreement dated as of January
5, 2005 (collectively, the "Participation Agreement").

     B.     The Participation Agreement initially provided that the Lessee Obligations would be secured by Cash Collateral or a Letter of Credit furnished by Lessee in an amount not less than the Lease Balance from
time to time.  In connection with the original Participation Agreement dated as of December 17, 2002 and pursuant to the security requirements thereof, Lessee caused an irrevocable, standby Letter of Credit in the amount of $50,000,000 to be issued by Agent in
favor of Lessor as part of the Collateral securing the Lessee Obligations (the “Existing Letter of Credit”).  Subsequently, pursuant to that certain Fourth Amendment to Participation Agreement dated as of January 5, 2005, Lessor, Lessee and the
Participants agreed that from and after the date of that amendment, the minimum amount of other Collateral (whether in the form of Cash Collateral or a Letter of Credit) securing the Lessee Obligations would be reduced from One Hundred Percent (100%) of the Lease
Balance to Seventy-Five Percent (75%) of the Lease Balance (the “Minimum Secured Lease Amount”), subject to certain increases in the Applicable Margin.  In accordance with the Fourth Amendment to Participation Agreement, Lessee thereafter decreased
the amount of the Existing Letter of Credit from $50,000,000 to $37,500,000.

     C.     Lessee has requested that the Lessor, Agent and Participants further amend the Participation Agreement to further reduce the collateral requirements by decreasing the minimum amount of other Collateral
that is required to secure the Lessee Obligations from Seventy-Five Percent (75%) of the Lease Balance to Fifty Percent (50%) of the Lease Balance from time to time.  Lessor, Agent and Participants have agreed so to amend the Participation Agreement, subject to
certain increases in the Applicable Margin and the satisfaction of the other terms and conditions set forth herein.

     D.     Each capitalized term used but not otherwise defined herein shall have the meaning ascribed thereto in Appendix 1 to the Participation Agreement.

     NOW, THEREFORE, the parties hereto agree as follows:

ARTICLE 1

AMENDMENTS TO PARTICIPATION AGREEMENT

     1.1     This Amendment shall be deemed to be an amendment to the Participation Agreement and shall not be construed in any way as a replacement or substitution therefor.  All of the terms and conditions
of, and terms defined in, this Amendment are hereby incorporated by reference into the Participation Agreement as if such terms and provisions were set forth in full therein.

     1.2     Permitted Reduction in Other Collateral.  Notwithstanding anything to the contrary contained in the Participation Agreement, including, without limitation, the provisions of Section 7.1(b)
of the original Participation Agreement dated as of December 17, 2002 and Section 1.1 of the Fourth Amendment to Participation Agreement dated as of January 5, 2005, from and after the date of this Amendment, the other Collateral securing the Lessee Obligations,
whether in the form of Cash Collateral delivered pursuant to a Cash Collateral Agreement or a Letter of Credit, shall at all times be in an amount at least equal to Fifty Percent (50%) of the Lease Balance (the “Revised Minimum Secured Lease Amount”), and
at no time shall be less than the Revised Minimum Secured Lease Amount.  At any time following the date of this Amendment, upon at least three (3) Business Days written notice to Lessor and Agent and pursuant to the terms and conditions contained herein, Lessee
may decrease the amount of the Existing Letter of Credit to an amount not less than the Revised Minimum Secured Lease Amount (such amended Letter of Credit to be referred to as a “Replacement Letter of Credit”).  Concurrently with delivery of such
notice to Lessor, (i) Lessee shall deliver to Agent the original Replacement Letter of Credit meeting all the requirements set forth in the Operative Documents as herein amended, together with a letter from Lessee instructing the Agent to amend the Existing Letter of
Credit (“Lessee’s Amendment Letter”).  Within three (3) Business Days following receipt by Agent of the original Replacement Letter of Credit and Lessee’s Amendment Letter, Lessor shall deliver to Agent (in its capacity as issuer of the
Existing Letter of Credit) the original Existing Letter of Credit together with a letter from Lessor releasing its interest in the Existing Letter of Credit and instructing Agent to cancel the Existing Letter of Credit (“Lessor’s Termination
Letter”).  Promptly upon receipt of Lessee’s Amendment Letter, the original Replacement Letter of Credit and Lessor’s Termination Letter, the Agent shall terminate the Existing Letter of Credit (the “Letter of Credit Termination
Date”).  From and after the Letter of Credit Termination Date, Lessee shall be entitled to substitute a Cash Collateral Agreement and Cash Collateral in an amount not less than the Revised Minimum Secured Lease Amount in place of the Replacement Letter of
Credit and, subsequently, to substitute a new Letter of Credit in an amount not less than the Revised Minimum Secured Lease Amount in place of any such Cash Collateral and Cash Collateral Agreement, as applicable, subject to all of the terms and conditions contained
in Section 7.1(c) of the Participation Agreement.  Nothing contained herein shall affect in any way the collateral status of the Property, which shall continue at all times to secure 100% of the Lessee Obligations as provided in the Lease.

     1.3     Applicable Margin.  From and after the Letter of Credit Termination Date, the definition of “Applicable Margin” set forth in Appendix 1 to the Participation Agreement shall be
amended and restated in its entirety as follows:

             “"Applicable Margin" means:

            (i) for purposes of computing the accruals of (a) Basic Rent or interest on the Adjusted Tranche A Balance and on the Tranche B Balance, and (b) the Initial Adjustment Amortization, a
percentage rate per annum calculated in accordance with the following table (expressed in basis points per annum), based upon the Adjusted Leverage Ratio as set forth in the most recent Compliance Certificate delivered by Lessee to Agent:

	
Level

	
Adjusted Leverage Ratio

	
Applicable Margin (bps/annum)

	
I

	
X < 0.75

	
133.90

	
II

	
0.75 < X < 1.25

	
153.53

	
III

	
1.25 < X < 2.00

	
173.17

	
IV

	
2.00 < X

	
192.80

and

            (ii) for purposes of computing the accruals of Basic Rent or Yield on the Tranche C Balance, two percent (2%) per annum.”

ARTICLE 2

CONDITIONS TO EFFECTIVENESS OF AMENDMENT

     2.1     The effectiveness of this Amendment is subject to the fulfillment to the satisfaction of the following conditions precedent:

            (a)     This Amendment duly executed by the Lessee, the Lessor, each Participant and the Agent;

            (b)     Agent shall have received appropriate authorization documents, including borrowing resolutions and certificates of incumbency, confirming to its satisfaction
that all necessary corporate and organizational actions have been taken to authorize Lessee to enter into this Amendment; and

            (c)     Agent shall have received such other documents, instruments or agreements as Agent may require to effectuate the intents and purposes of this Amendment.

ARTICLE 3

REPRESENTATIONS AND WARRANTIES

            Lessee hereby represents and warrants to Lessor, Agent and the Participants that:

     3.1     After giving effect to the amendment of the Participation Agreement pursuant to this Amendment and the consummation of the transactions contemplated hereby (i) each of the representations and
warranties set forth in Section 8.3 of the Participation Agreement and in the other Operative Documents are true and correct in all material respects as if made on the date hereof except to the extent such representations and warranties specifically refer to an
earlier date in which case they shall be true and correct in all material respects as of such earlier date (with references to the Participation Agreement being deemed to include this Amendment), and (ii) there exists no Lease

  Event of Default or Potential Lease Default under the Operative Documents after giving effect to this Amendment.

     3.2     Lessee has the corporate power and authority and legal right to make, deliver the amendments described herein, and to perform the obligations of its part to be performed under the Participation
Agreement as amended hereby and the amendments described herein.  Lessee has taken all necessary action to authorize the execution, delivery and performance of this Amendment and the amendments described herein.  No consent or authorization of, filing with,
or other act by or in respect of any Governmental Authority is required in connection with the execution, delivery, performance, validity or enforceability of this Amendment or the amendments described herein or the performance by Lessee of the Participation
Agreement as amended hereby.

     3.3     This Amendment and the Participation Agreement as amended hereby are, or upon delivery thereof to Agent will be, the legal, valid and binding obligations of Lessee, enforceable against Lessee in
accordance with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors' rights generally.

ARTICLE 4

MISCELLANEOUS

     4.1     The Participation Agreement, the other Operative Documents and all agreements, instruments and documents executed and delivered in connection with any of the foregoing shall each be deemed to be
amended hereby to the extent necessary, if any, to give effect to the provisions of this Amendment.  Except as so amended hereby, the Participation Agreement and the other Operative Documents shall remain in full force and effect in accordance with their
respective terms.

     4.2     Lessee agrees to pay Agent on demand for all reasonable expenses, including reasonable fees and costs of attorneys and costs of recordation and title insurance, incurred by Agent in connection with the
preparation, negotiation and execution of this Amendment and any document required to be furnished hereunder.

     4.3     This Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which shall together constitute one and the same instrument. 

     IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date set forth in the preamble hereto.

	

                                                                                       

	
           

	
QUANTUM CORPORATION, a Delaware Corporation, as Lessee

	

                                                                                       

	
By:

	
/s/MARY SPRINGER

	

                                                                                       

	
Name:

	
Mary Springer

	

                                                                                       

	
Title:

	
Treasurer

			
			
			
			
	

                                                                                       

	
           

	
KEYBANK NATIONAL ASSOCIATION, as Agent

	

                                                                                       

	
By:

	
/s/THOMAS A. CRANDELL

	

                                                                                       

	
Name:

	
Thomas A. Crandell

	

                                                                                       

	
Title:

	
Senior Vice President

			
			
	

                                                                                       

	
           

	
KEYBANK NATIONAL ASSOCIATION, as Participant

	

                                                                                       

	
By:

	
/s/THOMAS A. CRANDELL

	

                                                                                       

	
Name:

	
Thomas A. Crandell

	

                                                                                       

	
Title:

	
Senior Vice President

			
			
	

                                                                                       

	
           

	
SELCO SERVICE CORPORATION, as Lessor

	

                                                                                       

	
By:

	
/s/DONALD C. DAVIS

	

                                                                                       

	
Name:

	
Donald C. Davis

	

                                                                                       

	
Title:

	
Vice President

			
			
	

                                                                                       

	
           

	
SELCO SERVICE CORPORATION, as Participant

	

                                                                                       

	
By:

	
/s/DONALD C. DAVIS

	

                                                                                       

	
Name:

	
Donald C. Davis

	

                                                                                       

	
Title:

	
Vice President

			
			
	

                                                                                       

	
           

	
COMERICA BANK, as Participant

	

                                                                                       

	
By:

	
/s/RAED Y. ALFAYOUMI

	

                                                                                       

	
Name:

	
Raed Y. Alfayoumi

	

                                                                                       

	
Title:

	
Vice President

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