Document:

Captaris, Inc. Deferred Compensation Plan

 Exhibit 10.3 
 CAPTARIS, INC. 
 DEFERRED COMPENSATION PLAN 
 FOR NON-EMPLOYEE DIRECTORS 
 ARTICLE
I. PURPOSE AND NATURE OF PLAN 
 The purpose of the Plan is to further long-term growth of the Company by allowing Non-Employee Directors
to defer receipt of certain compensation, keeping their financial interests aligned with the Company, and providing them with a long-term incentive to continue providing services to the Company. The Plan is intended to comply with Code
Section 409A and any official guidance issued thereunder. Notwithstanding any other provision of the Plan, the Plan (and any deferrals thereunder) shall be interpreted, operated and administered in a manner consistent with this intention, and
shall be deemed to be amended (or modified) to the extent the Plan Administrator deems necessary to comply with Code Section 409A and any official guidance issued thereunder, so as to avoid (a) the pre-distribution inclusion in income of
amounts deferred under the Plan pursuant thereto, and (b) the imposition of any additional tax and/or interest thereunder. 
 ARTICLE
II. DEFINITIONS 
 Whenever used herein, the following terms shall have the respective meanings set forth below, unless the context
clearly indicates otherwise. 
 2.1 “Account” means a separate unfunded account established for a Participant
on the books of the Company for purposes of recording such Participant’s interest under the Plan. The Company may establish such subaccounts within a Participant’s Account as it deems necessary for the proper administration of the Plan.

 2.2 “Affiliate” means any corporation, partnership, trade, business or other entity that is treated as a
single employer with the Company under Code Section 414(b), (c), (m) or (o). 
 2.3 “Award” means an
award granted under the Equity Incentive Plan. 
 2.4 “Beneficiary” means the person, trust or other entity
designated by the Participant to receive payment under the Plan in the event of the Participant’s death. A Participant must designate his or her Beneficiary on such form (filed with the Company) as the Plan Administrator will prescribe. A
Participant may change his or her Beneficiary designation at any time by filing a new Beneficiary designation with the Company. The most recent Beneficiary designation on file with the Company at the time of the Participant’s death will be
controlling. If a married Participant designates someone other than his or her spouse as a primary Beneficiary, then the designation will have no effect as to the Participant’s interest under the Plan, unless the spouse has consented in writing
to the designation of such Beneficiary and such consent is witnessed by a notary public or a Plan representative. The consent of one spouse will have no effect with respect to any subsequent spouse. If the Participant does not have a valid
Beneficiary designation on file with the Company at the time 

  

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of his or her death, or if all of the Participant’s designated Beneficiaries predecease the Participant, then the Participant’s Beneficiary will be
the Participant’s surviving spouse or, if the Participant has no surviving spouse, the Participant’s estate. For purposes of the Plan, “spouse” means the person who is recognized as the Participant’s lawful spouse under
applicable state law. 
 2.5 “Board” means the Board of Directors of the Company. 
 2.6 “Business Day” means any day that the Nasdaq is open for trading. 
 2.7 “Cash Compensation” means the cash compensation payable to a Non-Employee Director for his or her service as a member
of the Board, including, without limitation, any base retainer and any additional cash amounts payable for service as a chair or member of any Board committee. 
 2.8 “Change in Control” means: 
  

	 	(a)	the acquisition by any person or group of persons acting as a group, within the meaning of Code Section 409A, of Ownership of the stock of the Company that, together with any
stock of the Company already held by such person, or group of persons, constitutes more than 50% of the total fair market value or the total voting power of the stock of the Company, provided such person or group of persons did not previously own
more than 50% of the total fair market value or the total voting power of the stock of the Company; 

  

	 	(b)	the acquisition by any person or group of persons acting as a group, within the meaning of Code Section 409A (or the acquisition by any person or group of persons during the
12-month period ending on the date of the most recent such purchase or acquisition), of Ownership of Company stock that, without regard to any stock of the Company already held by such person or group of persons, constitutes 35% or more of the total
voting power of the stock of the Company, provided such person, entity or group of persons or entities did not previously own 35% or more of the total voting power of the stock of the Company; 

  

	 	(c)	the replacement, during any 12-month period, of a majority of the members of the Board by directors whose appointment or election is not endorsed by a majority of the members of the
Board prior to the date of such appointment or election, provided that this paragraph (c) applies only for so long as the Company does not have a majority shareholder that is a corporation (i.e., a corporation that owns more than 50% of the
total fair market value or total voting power of the stock of the Company); or 

  

	 	(d)	the acquisition from the Company by any person or group of persons acting as a group (within the meaning of Code Section 409A) who is/are not related to the Company for
purposes of Code Section 409A, and any subsequent 

  

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guidance promulgated under Code Section 409A), or the acquisition from the Company by any such person or group of persons during the 12-month period
ending on the date of the most recent such acquisition, of assets of the Company that have a total gross fair market value equal to at least 40% of the total gross fair market value of all of the assets of the Company immediately prior to such
acquisition or acquisitions. For this purpose, gross fair market value means the value of the Company’s assets, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.

 2.9 “Code” means the Internal Revenue Code of 1986, as amended and in effect from time to
time. 
 2.10 “Company” means Captaris, Inc. and any successor thereto. 
 2.11 “Company Stock” means the Company’s common stock. 
 2.12 “Compensation Committee” means the Compensation Committee of the Board. 
 2.13 “Deferral Agreement” means the election form(s) promulgated by the Plan Administrator and executed by the Participant
authorizing the deferral of Cash Compensation and consenting to the terms and conditions of the Plan, the same as if the Participant were a signatory hereto. 
 2.14 “Effective Date” means June 8, 2006. 
 2.15
“Employee” means a person who is employed by the Company or an Affiliate as a common law employee. 
 2.16
“Equity Incentive Plan” means the Captaris, Inc. 2006 Equity Incentive Plan, as may be amended from time to time, or any successor plan thereto. 
 2.17 “New Director” means a Non-Employee Director who was not eligible to participate in the Plan (or any other
non-qualified deferred compensation plan sponsored by the Company or an Affiliate, which may be aggregated with the Plan under Code Section 409A) prior to becoming a Non-Employee Director; provided, however, that all individuals who are
Non-Employee Directors on the Effective Date will be deemed to become New Directors on the Effective Date for purposes of making an initial election pursuant to Section 4.1(b) with respect to any Cash Compensation earned (and paid) on or after
the Effective Date. 
 2.18 “Non-Employee Director” means a member of the Board who is not also an Employee.

  

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 2.19 “Ownership” means actual and constructive ownership, as determined in
accordance with Code Section 318(a). Stock underlying a vested option is considered owned by the individual who holds the vested option (and the stock underlying an unvested option is not considered owned by the individual who holds the
unvested option); provided, however, that if a vested option is exercisable for stock that is not substantially vested (as defined in Treas. Reg. § 1.83-3(b) and (j)), the stock underlying such option is not treated as owned by the
individual who holds the option. 
 2.20 “Participant” means a Non-Employee Director who has elected to defer
payment of all or any portion of his or her Cash Compensation pursuant to Section 4.1 or to whose Account an Award has been credited pursuant to Section 4.2. A person remains a Participant so long as he has an Account balance under the
Plan, whether or not he remains an Non-Employee Director. 
 2.21 “Plan” means the Captaris, Inc. Deferred
Compensation Plan for Non-Employee Directors, as set forth herein, together with all amendments hereto. 
 2.22 “Plan
Administrator” means the Compensation Committee or its delegate. 
 2.23 “Specified Employee”
means a Participant who is a “specified employee” within the meaning of Code Section 409A as of the date of his or her Termination. 
 2.24 “Termination” and its derivations, such as “Terminate,” mean a “separation from service” with the Company and its Affiliates within the meaning of Code Section 409A. 

2.25 “Unforeseeable Emergency” means a severe financial hardship to the Participant resulting from a sudden and
unexpected illness or accident of the Participant, of the Participant’s spouse or of a dependent (as defined in Code Section 152(a)) of the Participant, loss of the participant’s property due to casualty, or other similar
extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. Examples of what are not considered Unforeseeable Emergencies include the need to pay for tuition or the desire to purchase a home.

 ARTICLE III. ELIGIBILITY AND PARTICIPATION 
 3.1 Eligibility. All Non-Employee Directors are eligible to participate in the Plan. 
 3.2
Participation. A Non-Employee Director will become a Participant by completing a Deferral Agreement and filing it with the Company in accordance with Section 4.1; provided, however, that a Non-Employee Director who has not completed a
Deferral Agreement will become a Participant upon the crediting of an Award to his Account pursuant to Section 4.2. 
  

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 ARTICLE IV. DEFERRALS OF CASH COMPENSATION AND AWARDS 
 4.1 Voluntary Deferral of Cash Compensation. 
 (a) Prior to the beginning of each calendar year, a Non-Employee Director may elect to defer receipt of 25%, 50%, 75% or 100% of any Cash Compensation he or she anticipates earning during such calendar year. To make such an election, a
Non-Employee Director must file a completed Deferral Agreement with the Company in accordance with, and subject to, such rules and procedures as the Plan Administrator may establish; provided, however that such Deferral Agreement must be filed with
the Company (and become irrevocable) prior to the first day of the calendar year in which the Cash Compensation to which such Deferral Agreement relates is earned. 
 (b) Notwithstanding subsection (a) immediately above, a New Director may make an initial deferral election by filing an irrevocable Deferral Agreement with the Company no later than 30 days after becoming a New
Director. Any such Deferral Agreement will apply only to Cash Compensation earned (and paid) after the Deferral Agreement is filed with the Company. 
 (c) A Participant’s Deferral Agreement will remain in effect from calendar year to calendar year until terminated or modified by the Participant or until the Participant ceases to be a Non-Employee Director. A
Participant may terminate or modify his or her Deferral Agreement, effective as of the first day of any calendar year, by filing a new Deferral Agreement with the Company in accordance with the provisions of Section 4.1(a) above. 
 (d) The Company will credit any Cash Compensation deferred by a Participant pursuant to subsections (a) and (b) immediately above to the
Participant’s Account as of the date on which it would have been paid to the Participant had it not been deferred. 
 4.2 Deferred
Awards. The Company may credit such Awards to a Participant’s Account as it deems appropriate, in its sole and absolute discretion. 
 ARTICLE V. ACCOUNTS 
 5.1 Establishment and Nature of Participant Accounts. The Company will establish and maintain
an Account in the name of each Participant to reflect the Participant’s interest under the Plan. The Company may establish such subaccounts within a Participant’s Account as it deems necessary for the proper administration of the Plan
(e.g., to reflect deferrals of Cash Compensation, as opposed to Awards, or to reflect deferred Awards granted at different times or subject to different vesting schedules). The maintenance of such Accounts and subaccounts is for record keeping
purposes only and will not represent any investment made on any Participant’s behalf by the Plan Administrator or the Company. 
 5.2
Deemed Investment. All amounts credited to a Participant’s Account will be deemed to be invested in shares of Company Stock (calculated to one one-thousandth of a share). Any dividends which would have been received had such amounts
actually been 

  

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invested in shares of Company Stock will also be credited to the Participant’s Account as of the date they would have been paid and will be deemed
invested in additional shares of Company Stock (calculated to one one-thousandth of a share). Except for deferred Awards (which are deemed to be invested in shares of Company Stock immediately upon being credited to a Participant’s Account),
any such investment shall be deemed to be made at the closing price of such shares on the date such amounts are credited to the Participant’s Account or, if such date is not a Business Day, on the first Business Day occurring thereafter.
Nothing in this Section 5.2 or in any other provision of the Plan, however, will require the Company to actually invest any amounts credited to a Participant’s Account in shares of Company Stock or otherwise. 
 5.3 Adjustments Upon Changes in Capitalization. If any change is made to the shares of Company Stock without the Company’s receipt of
consideration, appropriate adjustments will be made to the number and/or class of securities deemed to be credited to a Participant’s Account under the Plan in the same manner and to the same extent that adjustments are made to the maximum
number and/or class of securities issuable under the Equity Incentive Plan. 
 ARTICLE VI. VESTING 
 A Participant will be fully vested in that portion of his or her Account attributable to deferred Cash Compensation, if any, at all times. A Participant
will vest in the portion of his or her Account attributable to deferred Awards, if any, on the date(s) specified in such Awards. In addition, a Participant will become vested in the portion of his or her Account attributable to deferred Awards, if
any, upon a Change in Control; provided the Participant has not Terminated prior to such date. Any Awards credited to a Participant’s Account that are not vested as of the date of the Participant’s Termination will be forfeited.

 ARTICLE VII. DISTRIBUTIONS 
 7.1 Timing and Form of Distribution. 
 (a) A Participant’s vested Account balance will be distributed to the
Participant (or, in the event of the Participant’s death, the Participant’s Beneficiary) in a lump sum as soon as administratively practicable after the Participant Terminates. Distribution will be made in whole shares of Company Stock
(with cash for any fractional share). 
 (b) Notwithstanding subsection (a) immediately above, if the Participant is a Specified
Employee at the time of his or her Termination, distribution of his or her vested Account balance will be made as soon as administratively practicable after the six-month anniversary of his or her Termination. 
 7.2 Change in Control. Notwithstanding Section 7.1, the Participant’s vested Account balance will be distributed to the Participant (or,
in the case of the Participant’s death, the Participant’s Beneficiary) in a lump sum as soon as administratively practicable after a 

  

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Change in Control, whether or not the Participant has Terminated. Distribution will be made in whole shares of Company Stock (with cash for any fractional
share). 
 7.3 Unforeseeable Emergency. 
 (a) Subject to subsection (b) below, any Participant who the Plan Administrator determines has experienced an Unforeseeable Emergency may withdraw such amount from his or her Account as does not exceed the lesser
of (i) the amount necessary to satisfy the emergency need (including the amount necessary to pay any federal, state or local income taxes and penalties reasonably anticipated to result from the withdrawal), and (ii) his or her vested
Account balance. A Participant must submit a written request for such a withdrawal, together with such supporting documentation as the Plan Administrator may require, to the Plan Administrator for review and approval. A distribution under this
Section 7.3 will occur as soon as administratively practicable after the Plan Administrator approves the Participant’s request. Distribution will be made in whole shares of Company Stock (with cash for any fractional share). 
 (b) Payment under this Section 7.3 may not be made to the extent that the emergency need is or may be relieved through reimbursement or compensation
by insurance or otherwise, by liquidation of the Participant’s assets (to the extent the liquidation would not itself cause severe financial hardship) or by cessation of deferrals under the Plan. 
 7.4 Distribution in Event of Taxation. Notwithstanding any provision in the Plan to the contrary, if any amounts credited to a Participant’s
Account must be included in income pursuant to Code Section 409A prior to the scheduled distribution of such amounts, the amount which must be so included in income will be distributed to the Participant (or, in the case of the
Participant’s death, the Participant’s Beneficiary) in a lump sum within a reasonable time following such determination. Such distribution will be made in the form of Company Stock (with cash for any fractional share). 
 ARTICLE VIII. ADMINISTRATION 
 8.1
Plan Administration. 
 (a) The Plan will be administered by the Plan Administrator. 
 (b) The Plan Administrator has all discretionary and other authority to control and manage the operation and administration of the Plan, except such
authority as is specifically allocated otherwise by or under the terms hereof, and has the power to take any action that it deems necessary or appropriate to carry out such responsibilities, including, without limitation, the discretionary authority
to (i) construe, interpret and apply the terms and provisions of the Plan, (ii) prescribe such rules and regulations, and issue such directives, as it deems necessary or appropriate for the administration of the Plan, and (iii) make
all other determinations and decisions as it deems necessary or appropriate for the administration of the Plan. The Plan Administrator may correct any defect or supply any omission or reconcile any 
  

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inconsistency in the Plan in the manner and to the extent it, in its discretion, deems appropriate. To the extent the Plan Administrator has been granted
discretionary authority under the Plan, the Plan Administrator’s prior exercise of such authority shall not obligate it to exercise its authority in a like fashion thereafter. 
 (c) No Participant who represents or is authorized to act on behalf of (or who is a member of) the Plan Administrator or the Board may decide, determine
or act on any matter that affects the distribution, nature or method of settlement of solely his or her benefit under the Plan, except in exercising an election available to that Participant in his or her capacity as a Participant. 
 (d) The determination of the Plan Administrator with respect to any question arising out of or in connection with the administration, interpretation, and
application of the Plan shall be final, binding, and conclusive upon all persons and shall be given the greatest deference permitted by law. 
 8.2 Expenses. All costs and expenses that are necessary to operate and administer the Plan will be paid by the Company. 
 8.3 Disputed Payee or Act. If any dispute arises regarding the person to whom payment or delivery of any sums or property should be made by the Company, or regarding any act to be performed, the Company may, in its sole and absolute
discretion, retain such payment and postpone the performing of such act until final adjudication of such dispute has been made in a court of competent jurisdiction or otherwise to the satisfaction of the Company or until the Company has been
indemnified against loss to its satisfaction. 
 8.4 Claims Procedure. 
 (a) Filing a Claim. A Participant or a Beneficiary (the “Claimant”), or the authorized representative of either, who believes that he
has been denied benefits to which he is entitled under the Plan may file a written claim for such benefits with the Plan Administrator Any claim must be in writing and must contain the following information: 
  

	 	(1)	The reason for making the claim; 

  

	 	(2)	The facts supporting the claim; 

  

	 	(3)	The amount claimed; and 

  

	 	(4)	The Claimant’s name and his or her (or his or her authorized representative’s) address. 

 (b) Claim Review. Claims will be decided by the Plan Administrator, which will make its decision with respect to a claim and notify the Claimant
(or his or her authorized representative) in writing of such decision within 90 days after receiving the claim. The Plan Administrator may extend this 90-day period for an additional 90 days if it determines that 

  

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special circumstances require additional time to process the claim. The Plan Administrator will notify the Claimant (or his or her authorized representative)
in writing of any such extension within 90 days of receiving the claim. The notice will included the reason(s) why the extension is necessary and the date by which the Plan Administrator expects to render its decision on the claim. 

If your claim is partially or completely denied, the written notice to the Claimant (or his or her authorized representative) will include:

  

	 	(1)	The specific reason or reasons for the denial; 

  

	 	(2)	Reference to the specific Plan provisions on which the denial is based; 

  

	 	(3)	A description of any additional material or information necessary for the Claimant to perfect the claim and an explanation of why such material or information is necessary; and

  

	 	(4)	A description of the Plan’s claim appeal procedure (and the time limits applicable thereto). 

 If a Claimant submits a claim in accordance with the procedure described above and does not hear from the Plan Administrator within 90 days, the Claimant
may consider the claim denied. 
 (c) Appealing a Claim Denial. If a claim is partially or completely denied, the Claimant has the
right to appeal the denial. To appeal a claim denial, the Claimant (or his or her authorized representative) must file a written request for appeal with the Plan Administrator within 60 days after receiving written notice of the claim denial. This
written request for appeal should include: 
  

	 	(1)	A statement of the grounds on which the appeal is based; 

  

	 	(2)	Reference to the specific Plan provisions that support your claim; 

  

	 	(3)	The reason(s) or argument(s) why the Claimant believes the claim should be granted and the evidence supporting each reason or argument; and 

  

	 	(4)	Any other comments, documents, records or information relating to the claim that the Claimant wishes to submit. 

 The Claimant (or his or her authorized representative) will be provided, upon request and free of charge, reasonable access to, and copies of, all
documents, records and other information relevant (within the meaning of 29 C.F.R. § 2560.503-1(m)(8)) to his or her claim. 
  

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 (d) Decision on Appeal. Appeals will be decided by the Plan Administrator, which will render its
decision with respect to an appeal and notify the Claimant (or his or her authorized representative) in writing of such decision within 60 days after receiving the appeal. The Plan Administrator may extend this 60-day period for an additional 60
days if it determines that special circumstances require additional time to process the appeal. The Plan Administrator will notify the Claimant (or his or her authorized representative) in writing of any such extension within 60 days of
receiving the appeal. The notice will included the reason(s) why the extension is necessary and the date by which the Plan Administrator expects to render its decision on the appeal. In reaching its decision, the Plan Administrator will take into
account all of the comments, documents, records and other information that the Claimant (or his or her authorized representative) submitted, without regard to whether such information was submitted or considered by the Plan Administrator in its
initial denial of the claim. 
 If a claim is partially or completely denied on appeal, the written notice of claim denial will include the
following: 
  

	 	(1)	The specific reason or reasons for the denial; 

  

	 	(2)	Reference to the specific Plan provisions on which the denial is based; and 

  

	 	(3)	A statement that the Claimant (or his or her authorized representative) is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents,
records and other information relevant (within the meaning of 29 C.F.R. § 2560.503-1(m)(8)) to the claim. 

 If a
Claimant files an appeal in accordance with the procedure described above and does not hear from the Plan Administrator within 60 days, the Claimant may consider the appeal denied. 
 (e) Filing Suit. A Participant or Beneficiary must comply with the claim and appeal procedures described above before seeking any other legal
recourse (including filing a law suit) regarding claims for benefits. If a Claimant wishes to file a court action after exhausting the foregoing procedures, the Claimant (or his or her authorized representative) must file such action in a court of
competent jurisdiction within one year after the date on which the Claimant (or his or her authorized representative) received the Plan Administrator’s written denial of the appeal. Court actions may not be commenced after this one-year period.
Any judicial review of the Plan Administrator’s decision on a claim will be limited to whether, in the particular instance, the Plan Administrator abused its discretion. In no event will such judicial review be on a de novo basis, because the
Plan Administrator has discretionary authority to determine eligibility for (and the amount of) benefits under the Plan and to construe and interpret the terms and provisions of the Plan. 
  

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 ARTICLE IX. AMENDMENT, MODIFICATION AND TERMINATION 
 The Plan may be amended or modified at any time by the Board or the Compensation Committee; provided, however, that no amendment or modification may
reduce the balance in a Participant’s Account. In addition, the Board or the Compensation Committee may terminate the Plan at any time; provided, however, that termination shall not cause the payment of any Participant’s benefits under the
Plan. Rather, if the Plan is terminated, then all Accounts will be distributed to Participants at the same time and in the same form as they would have been distributed had the Plan not been terminated. 
 ARTICLE X. MISCELLANEOUS 
 10.1
Effective Date. The Plan is effective as of June 8, 2006. 
 10.2 Rights Unsecured. The right of a Participant or his or her
Beneficiary to receive a distribution hereunder will be an unsecured claim against the general assets of the Company, and neither the Participant nor his or her Beneficiary will have any rights in or against any amount credited to his or her Account
or any other specific assets of the Company. The Plan at all times shall be considered entirely unfunded for tax purposes. Any funds set aside by the Company for the purpose of meeting its obligations under the Plan, including any amounts held by a
trustee, will continue for all purposes to be part of the general assets of the Company and will be available to the Company’s general creditors in the event of the Company’s bankruptcy or insolvency. The Company’s obligation under
this Plan will be that of an unfunded and unsecured promise to pay benefits in the future. 
 10.3 Construction of Plan. Nothing in
the Plan shall be construed to give any Non-Employee Director (or any other person) any right to receive Cash Compensation, Awards or any other type of compensation from the Company. No Participant or Beneficiary shall have any right to receive a
distribution under the Plan except in accordance with the terms of the Plan. Establishment and maintenance of the Plan shall not be construed to give any Non-Employee Director (or any other person) the right to be retained as a member of the Board
or as an Employee. Nothing contained in the Plan shall constitute a guarantee by the Company or any other person or entity that the assets of the Company will be sufficient to pay any benefits under the Plan. If any provision of the Plan is held to
be invalid or illegal for any reason, such invalidity or illegality shall not affect the remaining parts of the Plan, but the Plan shall be construed as if the invalid or illegal provision had never been included in the Plan. Unless some other
meaning or intent is apparent from the context, the plural includes the singular and vice versa; and masculine, feminine and neuter words are used interchangeably. Any headings used herein are included for ease of reference only, and are not to be
construed so as to alter the terms hereof. 
 10.4 Alienation Prohibited. Amounts credited to a Participant’s Account are not,
except as provided in Section 10.5, subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment, execution or levy of any kind, either voluntary or involuntary, and any attempt to
anticipate, alienate, sell, transfer, 

  

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assign, pledge, encumber, charge or otherwise dispose of any right to any benefit hereunder will be null and void and not binding on the Plan or Company.

 10.5 Taxes. The Company or any other payor may withhold from a benefit payment under the Plan (including by reducing the number of
shares issued to the Participant under the Plan) or from any other compensation payable by the Company to the Participant any federal, state or local taxes required by law to be withheld with respect to a payment or accrual under the Plan, and will
report such payments and other Plan-related information to the appropriate governmental agencies as required under applicable law. 
 10.6
Delivery of Shares. The Company’s obligation to issue shares under the Plan will be subject to all applicable laws, rules and regulations, including all applicable federal and state securities laws, and the obtaining of all such approvals
by governmental agencies as the Plan Administrator may deem necessary. 
 10.7 General Limitation of Liability. None of the Company,
the Board, the Plan Administrator or any other person will be liable, either jointly or severally, for any act or failure to act or for anything whatsoever in connection with the Plan, or the administration thereof, except, and only to the extent
of, liability imposed because of willful misconduct, gross negligence or bad faith. 
 10.8 No Guaranty of Tax Consequences. None of
the Company, the Board, the Plan Administrator or any other person guaranties any particular federal or state income, payroll, personal property or other tax consequence will occur because of participation in the Plan. A Participant should consult
with professional tax advisors regarding all questions relative to the tax consequences arising from participation in the Plan. 
 10.9
Participant’s Cooperation. The Participant shall cooperate with the Company by furnishing any and all information requested by the Plan Administrator in order to facilitate the administration of the Plan or the payment of benefits
hereunder. If the Participant refuses to cooperate, the Company will have no further obligation to the Participant under the Plan. 
 10.10 Successors and Assigns. The terms and conditions of the Plan, as amended and in effect from time to time, will be binding upon the Company’s successors and assigns, including, without limitation, any entity into which the
Company may be merged or with which the Company may be consolidated. 
 10.11 Incompetency. If the Plan Administrator determines, in
its sole and absolute discretion, that a benefit under the Plan is to be paid to a minor, a person declared incompetent or to a person incapable of handling the disposition of that person’s property, then, until a claim for such benefit has
been made by a duly appointed guardian or other legal representative, the Plan Administrator may provide for such payment or any part thereof to be made to any other person or institution then contributing toward or providing for the care and
maintenance of such person, or, solely in the case of a minor, to a custodian under the 

  

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Uniform Gifts to Minors Act or similar statute. Any such payment will be a payment for the account of the Participant or Beneficiary, as applicable, and a
complete discharge of any liability of the Company or the Plan with respect to such payment. 
 10.12 Unclaimed Benefits. Each
Participant shall keep the Plan Administrator informed of his or her current address and the current address of his or her Beneficiary. The Plan Administrator shall not be obligated to search for the whereabouts of any person if the location of the
person is not made known to the Plan Administrator. 
 10.13 Applicable Law and Venue. The Plan and all determinations made and
actions taken pursuant hereto, to the extent not otherwise governed by the laws of the United States, will be governed by the laws of the State of Washington without giving effect to the choice or conflicts of law provisions thereof. If the Company
or any Participant or Beneficiary initiates litigation related to the Plan, the venue for such action will be King County, Washington. 
 *    *    *    *    * 
 IN WITNESS WHEREOF, the
Company has caused this instrument to be executed on the 8th day of June, 2006. 
  

			
	CAPTARIS, INC.
		
	By:	 	/s/ Peter Papano
		
	Its:	 	CFO

  

 Page 13Form of Severance Agreement

 EXHIBIT 10.1 
 ACTUATE CORPORATION LETTERHEAD 
 [McKeever] 
 [Address] 
 Dear                     : 
 We are pleased to inform you that the Compensation Committee of the Company’s Board of Directors has approved a special severance benefit program for you. The purpose of this letter agreement is to set forth the terms and conditions of
your severance benefits and to explain the limitations that will govern their overall value. 
 Your severance package will become payable
should your employment terminate under certain circumstances following the Company’s execution of a definitive agreement to effect a change in ownership or control of the Company. To understand the full scope of your benefits, you should
familiarize yourself with the definitional provisions of Part One of this letter agreement. The benefits comprising your severance package are detailed in Part Two, and the dollar limitation on the overall value of your benefit package and other
applicable restrictions are specified in Part Three. Part Four deals with ancillary matters affecting your severance arrangement. 
 PART
ONE — DEFINITIONS 
 For purposes of this letter agreement, the following definitions will be in effect: 
 Average Bonus means the greater of (i) the average of the bonuses paid to you under the Company’s cash incentive bonus
program for the three (3) fiscal years of the Company (or such fewer number of fiscal years during which you were employed with the Company) ended immediately prior to the fiscal year in which the Change of Control is effected, or (ii) the
average of the bonuses paid to you under such program for the three (3) fiscal years of the Company (or such fewer number of fiscal years during which you were employed with the Company) ended immediately prior to the fiscal year in which your
Involuntary Termination occurs. Any bonus payment for a partial year of employment will be annualized before inclusion in your Average Compensation. 
 Average Compensation means the average of your W-2 wages from the Company for the five (5) calendar years (or such fewer number of calendar years of your employment with the Company) completed immediately
prior to the calendar year in which the Change in Control is effected. Any W-2 wages for a partial year of employment will be annualized, in accordance with the frequency which such wages are paid during such partial year, before inclusion in your
Average Compensation. 

 Base Salary means the annual rate of base salary in effect for you immediately prior to the Change
in Control or (if greater) the annual rate of base salary in effect at the time of your Involuntary Termination. 
 Board means the
Company’s Board of Directors. 
 Change in Control means: 
 (i) the consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization,
provided and only if more than fifty percent (50%) of the combined voting power of the continuing or surviving entity’s securities outstanding immediately after such merger, consolidation or other reorganization is owned by persons who
were not stockholders of the Company immediately prior to such merger, consolidation or other reorganization; 
 (ii) the
sale, transfer or other disposition of all or substantially all of the Company’s assets; 
 (iii) any transaction as a
result of which any person becomes the “beneficial owner” (as defined in Rule 13d-3 of the Securities Exchange Act or 1934, as amended (the “Exchange Act”)), directly or indirectly, of securities of the Company representing at
least fifty percent (50%) of the total voting power represented by the Company’s then outstanding securities; or 
 (iv) a change in the composition of the Board such that fewer than two-thirds of the incumbent directors are directors who either (A) had been directors of the Company on the date twenty-four (24)- months prior to the date of the event
that may constitute a Change in Control (the “Original Directors”) or (B) were elected or nominated for election to the Board with the affirmative vote of at least a majority of the aggregate of the Original Directors who were still
in office at the time of the election or nomination and the directors whose election or nomination was previously so approved. 
 For
purposes of subparagraph (iii) above, the term “person” shall have the same meaning as when used in Sections 13(d) and 14(d) of the Exchange Act, but shall exclude (i) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or of a parent or a subsidiary and (ii) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the common stock of the
Company. 
  

 Page 2 

 A transaction shall not constitute a Change of Control if its sole purpose is to change the state of the
Company’s incorporation or to create a holding company that will be owned in the same proportions by the persons who held the Company’s securities immediately before such transaction. 
 Change in Control Severance Benefits means the various payments and benefits to which you may become entitled under Part Two of this Agreement
upon your Involuntary Termination in connection with a Change in Control or upon any earlier termination of your employment by the Company during the Pre-Closing Period other than a Termination for Cause. Such Change in Control Severance Benefits
may include one or more of the following: the accelerated vesting of your Options, a lump sum severance payment and continued health care coverage provided for you and your spouse and eligible dependents at the Company’s expense. 
 Code means the Internal Revenue Code of 1986, as amended. 
 Common Stock means the Company’s common stock. 
 Company means Actuate Corporation, a
Delaware corporation, and any successor corporation, whether or not resulting from a Change in Control. 
 Fair Market Value means,
with respect to the shares of Common Stock subject to your Options, the closing selling price per share of Common Stock on the date in question, as such price is reported by the National Association of Securities Dealers on the Nasdaq National
Market and published in The Wall Street Journal. If there is no closing selling price reported for the Common Stock on the date in question, then the Fair Market Value will be the closing selling price on the last preceding date for which
such report exists. 
 Independent Auditors means the accounting firm serving as the Company’s independent certified public
accountants immediately prior to the Change in Control; provided, however, that in the event such accounting firm also serves as the independent certified public accountants for the corporation or other entity effecting the Change in
Control transaction with the Company or such accounting firm concludes that the services required of it hereunder would adversely affect its independent status under applicable accounting standards or the performance of such services would otherwise
be in contravention of applicable law, then the Independent Auditors shall mean a nationally-recognized public accounting firm mutually acceptable to both you and the Company. 
 Involuntary Termination means the termination of your Service which occurs by reason of: 
 (i) your involuntary dismissal or discharge by the Company other than a Termination For Cause, or 
  

 Page 3 

 (ii) your voluntary resignation within one hundred eighty (180) days following
(A) a change in your position with the Company which materially reduces your duties and responsibilities or the level of management to which you report, (B) a reduction in your level of compensation (including base salary, fringe benefits
and target bonus under any corporate-performance based bonus or incentive program) by more than ten percent (10%) or (C) a relocation of your place of employment by more than fifty (50) miles, provided and only if such change,
reduction or relocation is effected by the Company without your consent. 
 A greater than ten percent (10%) aggregate reduction in your
base salary, fringe benefits and target bonus shall not constitute grounds for an Involuntary Termination under clause (ii)(C) above if substantially all of the other executive officers of the Company are subject to the same aggregate
reduction to their base salary, fringe benefits and target bonuses. 
 Option means any option granted you to purchase shares of
Common Stock under the Plan or other arrangement which is outstanding at the time of the Change in Control (or, if earlier, upon the Company’s termination of your employment during the Pre-Closing Period ) or upon your Involuntary Termination
following such Change in Control. Your Options will be divided into two (2) separate categories as follows: 
 Acquisition-Accelerated Options: any outstanding Option (or installment thereof) which automatically accelerates, pursuant to the acceleration provisions of the agreement evidencing that Option, upon a Change in Control. 

Severance-Accelerated Options: any outstanding Option (or installment thereof) which, pursuant to Part Two of this letter
agreement, accelerates upon the termination of your employment by the Company during the Pre-Closing Period for any reason other than a Termination for Cause or upon your Involuntary Termination following the Change in Control. 
 Option Parachute Payment means, with respect to any Acquisition-Accelerated Option or any Severance-Accelerated Option, the portion of that Option
deemed to be a parachute payment under Code Section 280G and the Treasury Regulations issued thereunder. The portion of such Option which is categorized as an Option Parachute Payment will be calculated in accordance with the valuation
provisions established under Code Section 280G and the applicable Treasury Regulations. 
 Other Parachute Payment means any
payments in the nature of compensation (other than your Option Parachute Payment and any other Change in Control Severance Benefits to which you become entitled under Part Two of this letter agreement) which are made to you in connection with the
Change in Control and which accordingly qualify as parachute payments within the meaning of Code Section 280G(b)(2) and the Treasury Regulations issued thereunder. 
  

 Page 4 

 Parachute Payment means (i) any Change in Control Severance Benefits provided you under Part
Two of this letter agreement which is deemed to constitute a parachute payment within the meaning of Code Section 280G(b)(2) and the Treasury Regulations issued thereunder and (ii) any Option Parachute Payment attributable to your
Acquisition-Accelerated Options. 
 Plan means (i) the Company’s 1998 Equity Incentive Plan, as amended or restated from
time to time, and (ii) any other stock incentive plan implemented or established by the Company. 
 Pre-Closing Period means the
period commencing with the Company’s execution of the definitive agreement for a Change in Control transaction and ending upon the earliest to occur of (i) the closing of the Change in Control contemplated by such definitive
agreement, (ii) the termination of such definitive agreement without the consummation of the contemplated Change in Control or (iii) December 31, 2007. 
 Present Value means the value, determined as of the date of the Change in Control, of any payment in the nature of compensation to which you become entitled in connection with the Change in Control or your
subsequent Involuntary Termination, including (without limitation) the Option Parachute Payment attributable to your Severance-Acceleration Options and the additional Change in Control Severance Benefits to which you become entitled under Part Two
of this letter agreement. The Present Value of each such payment will be determined in accordance with the provisions of Code Section 280G(d)(4), utilizing a discount rate equal to one hundred twenty percent (120%) of the applicable
Federal rate in effect at the time of such determination, compounded semi-annually to the effective date of the Change in Control. 
 Termination for Cause means the termination of your employment for any of the following reasons: (i) your conviction of a felony or your commission of any act of personal dishonesty involving the property or assets of the
Company intended to result in your financial enrichment, (ii) your material breach of one or more of your obligations under your Proprietary Information and Inventions Agreement with the Company or your unauthorized use or disclosure of any
material trade secrets or other material confidential information of the Company or any affiliate, (iii) any intentional misconduct on your part which has a materially adverse effect upon the Company’s business or reputation,
(iv) your failure to perform the major duties, functions and responsibilities of your executive position with the Company, (v) your material breach of any of your fiduciary obligations as an officer of the Company or (vi) your
intentional and knowing participation in the preparation or release of false or materially misleading financial statements relating to the Company’s operations and financial condition or your intentional and knowing 

  

 Page 5 

 
submission of any false or erroneous certification required of you under the Sarbanes-Oxley Act of 2002 or any securities exchange on which shares of the
Common Stock are at the time listed for trading. However, prior to any termination of your employment for any of the reasons specified in clauses (ii) through (iv), the Company shall give you written notice of the actions or omissions deemed to
constitute the grounds for a Termination for Cause, and you shall have a period of not less than thirty (30) days in which to cure the specified default in performance and thereby remedy the actions or omissions which would otherwise constitute
grounds for a Termination for Cause. 
 PART TWO — CHANGE IN CONTROL BENEFITS 
 Should your employment with the Company terminate by reason of an Involuntary Termination within twelve (12) months after a Change in Control, or
should your employment be terminated by the Company during the Pre-Closing Period for any reason other than a Termination for Cause, then you will become entitled to receive the applicable Change in Control Severance Benefits provided under this
Part Two, provided you execute and deliver to the Company a general release (substantially in the form of attached Exhibit A) which becomes effective under applicable law and pursuant to which you release the Company and its officers, directors,
stockholders, employees and agents from any and all claims you may otherwise have with respect to the terms and conditions of your employment with the Company and the termination of that employment. In no event, however, shall such release cover any
claims, causes of action, suits, demands or other obligations or liabilities relating to: 
 (a) any payments, benefits or
indemnification to which you are or become entitled pursuant to the provisions of this Agreement (including, without limitation, the severance benefits provided under this Part Two and the continued indemnification coverage under Paragraph 2 of Part
Four of this Agreement); and 
 (b) any claims for workers’ compensation benefits under any of the Company’s
workers’ compensation insurance policy or fund. 
 The Change in Control Severance Benefits provided under this Part Two shall be in
lieu of any other severance benefits to which you might otherwise become entitled under any other severance plan, program or arrangement of the Company upon a termination of your employment either during the Pre-Closing Period or within twelve
(12) months following a Change in Control. 
 1. Accelerated Vesting. 
 Each outstanding Option which you hold at the time of your Involuntary Termination or at any earlier termination of your employment by the Company during
the Pre- 

  

 Page 6 

 
Closing Period other than a Termination for Cause, to the extent that Option is not otherwise exercisable for all the shares of Common Stock or other
securities at the time subject to that Option, will immediately vest and become exercisable for all those option shares and may be exercised for any or all of those shares as fully vested shares. Each such accelerated Option will remain so
exercisable until the earlier of (i) the expiration of the option term or (ii) the post-service exercise period specified in the agreement evidencing your Option. Any Options not exercised prior to the expiration of the applicable
post-service exercise period will terminate and cease to remain exercisable for any of the option shares. 
 2. Severance Payment.

 (a) In the event your employment terminates pursuant to an Involuntary Termination within twelve (12) months following a Change in
Control, the Company will make a lump-sum cash severance payment to you as soon as administratively practicable following the date of your Involuntary Termination in an amount equal to one-half (0.5) times the sum of your annual rate of Base Salary
and Average Bonus (the “Severance Payment”). The Severance Payment shall be subject to the Company’s collection of all applicable withholding taxes, and you will only be paid the amount remaining after such withholding taxes have been
collected. 
 (b) In the event your employment is terminated by the Company during the Pre-Closing Period for any reason other than a
Termination for Cause, you will subsequently become entitled to the Severance Payment upon the closing of the Change in Control, provided and only if that Change in Control is in fact consummated prior to the expiration of the Pre-Closing Period.
The Company will make such lump-sum cash Severance Payment to you as soon as administratively practicable following the effective date of the Change in Control. The Severance Payment shall be subject to the Company’s collection of all
applicable withholding taxes, and you will only be paid the amount remaining after such withholding taxes have been collected. In no event, however, will you become entitled to all or any portion of the Severance Payment if the Change in Control is
not consummated prior to the expiration of the Pre-Closing Period. 
 3. Continued Health Care Coverage. 
 Should you elect under Code Section 4980B to continue health care coverage under the Company’s group health plan for yourself, your spouse and
your eligible dependents following your Involuntary Termination or any earlier termination of your employment by the Company during the Pre-Closing Period other than a Termination for Cause, then the Company shall provide such continued health care
coverage for you and your spouse and other eligible dependents at its sole cost and expense. Such health care coverage at the Company’s expense shall continue until the earliest of (i) the expiration of the six (6)-month period
measured from the date of your Involuntary Termination or any earlier termination of your employment by the Company during the Pre-Closing Period, (ii) the first date you are covered under another 

  

 Page 7 

 
employer’s heath benefit program which provides substantially the same level of benefits without exclusion for pre-existing medical conditions or
(iii) the date the definitive agreement for the Change in Control is terminated without consummation of that Change in Control prior to the expiration of the Pre-Closing Period. Should the Company’s provision of such continued health care
coverage result in the recognition of taxable income (whether for federal, state or local income tax purposes) by you or your spouse or other eligible dependent, then each of you will be responsible for the payment of the income and employment tax
liability resulting from such coverage, and the Company will not provide any tax gross-up payments to you (or any other person) with respect to such tax liability. 
 PART THREE — LIMITATION ON BENEFITS 
 1. Benefit Limit. 
 The amount of the Change in Control Severance Benefits otherwise due you under Part Two of this Agreement shall be reduced to the extent necessary to
assure that the Present Value of the Parachute Payment attributable to those Change in Control Severance Benefits does not exceed the greater of the following dollar amounts (the “Benefit Limit”): 
 - the dollar amount equal to (i) 2.99 times your Average Annual Compensation less (ii) the aggregate Present Value of the Option
Parachute Payment attributable to your Acquisition-Accelerated Options and any Other Parachute Payments to which you may be entitled, or 
 - the greatest after-tax amount of Change in Control Severance Benefits which can be paid to you under Part Two after taking into account any excise tax imposed under Code Section 4999 on those payments, the
Option Parachute Payment attributable to your Acquisition-Accelerated Options and any Other Parachute Payments to which you might be entitled. 
 The Option Parachute Payment attributable to the accelerated vesting of your Acquisition-Accelerated Options at the time of the Change in Control shall also be subject to the Benefit Limit. 
 2. Benefit Reduction. 
 (a) To the
extent the aggregate Present Value, measured as of the Change in Control, of (i) the Option Parachute Payment attributable to the Acquisition-Accelerated and Severance-Accelerated Options (or installments thereof) plus (ii) the Parachute
Payment attributable to your other Change in Control Severance Benefits under Part Two of the Agreement would, when added to the Present Value of all of your Other Parachute Payments, exceed the Benefit Limit, then the following reductions shall be
made to the Change in Control 

  

 Page 8 

 
Severance Benefits to which you are otherwise entitled under Part Two of this Agreement and your Acquisition-Accelerated Options, to the extent necessary to
assure that such Benefit Limit is not exceeded: 
 first, the dollar amount of the Severance Payment to which you would
otherwise be entitled shall be reduced, and 
 then the number of shares which would otherwise be purchasable under
your Acquisition-Accelerated and Severance-Accelerated Options shall be reduced (based on the amount of the Option Parachute Payment attributable to each such Option) to the extent necessary to eliminate such excess, with the actual Options to be so
reduced to be determined by you. 
 (b) In the event your employment is terminated by the Company during the Pre-Closing
Period for any reason other than a Termination for Cause, the Benefit Limit shall be calculated in good faith first at the time of such termination, with such calculation to be based upon the probability of the consummation of the contemplated
Change in Control within the Pre-Closing Period, and any benefit reduction required by Paragraph 2 of this Part Three on the basis of such good-faith calculation shall be applied at that time. The Benefit Limit shall be recalculated in accordance
with this Part Three as soon as administratively practicable following the expiration of the Pre-Closing Period. To the extent any Options are reduced and terminated in connection with the initial calculation made at the time of your termination of
employment, those Options will not be subsequently restored in connection with the re-calculation of the Benefit Limit following the expiration of the Pre-Closing Period, even if those terminated Options could have otherwise fallen within the
Benefit Limit as so re-calculated. 
 3. Resolution Procedures. 
 In the event there is any disagreement between you and the Company as to whether one or more payments to which you become entitled in connection with the
Change in Control or your subsequent Involuntary Termination constitute Parachute Payments, Option Parachute Payments or Other Parachute Payments or as to the determination of the Present Value thereof, such dispute will be resolved as follows:

 (i) In the event the Treasury Regulations under Code Section 280G (or applicable judicial decisions) specifically
address the status of any such payment or the method of valuation therefor, the characterization afforded to such payment by the Regulations (or such decisions) will, together with the applicable valuation methodology, be controlling. 
  

 Page 9 

 (ii) In the event Treasury Regulations (or applicable judicial decisions) do not address
the status of any payment in dispute, the matter will be submitted for resolution to the Independent Auditors. The resolution reached by the Independent Auditors will be final and controlling; provided, however, that if in the judgment
of the Independent Auditors, the status of the payment in dispute can be resolved through the obtainment of a private letter ruling from the Internal Revenue Service, a formal and proper request for such ruling will be prepared and submitted by the
Independent Auditors, and the determination made by the Internal Revenue Service in the issued ruling will be controlling. All expenses incurred in connection with the retention of the Independent Auditors and (if applicable) the preparation and
submission of the ruling request shall be shared equally by you and the Company. 
 (iii) In the event Treasury Regulations
(or applicable judicial decisions) do not address the appropriate valuation methodology for any payment in dispute, the Present Value thereof will, at the Independent Auditor’s election, be determined through an independent third-party
appraisal, and the expenses incurred in obtaining such appraisal shall be shared equally by you and the Company. 
 PART FOUR —
MISCELLANEOUS 
 1. Delayed Commencement of Benefits. Notwithstanding any provision to the contrary in this Agreement, no
Severance Payment or no Company-paid health care coverage to which you otherwise become entitled under Part Two of this Agreement shall be made or provided to you prior to the earlier of (i) the expiration of the six (6)-month
period measured from the date of your “separation from service” with the Company (as such term is defined in Treasury Regulations issued under Code Section 409A) or (ii) the date of your death, if you are deemed at the time of
such separation from service to be a “key employee” within the meaning of that term under Code Section 416(i) and such delayed commencement is otherwise required in order to avoid a prohibited distribution under Code
Section 409A(a)(2). Upon the expiration of the applicable Code Section 409A(a)(2) deferral period, all payments and benefits deferred pursuant to this Paragraph (whether they would have otherwise been payable in a single sum or in
installments in the absence of such deferral) shall be paid or reimbursed to you in a lump sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them
herein. You shall be entitled to interest on the deferred benefits and payments for the period the commencement of those benefits 

  

 Page 10 

 
and payments is delayed by reason of Code Section 409A(a)(2), with such interest to accrue at the prime rate in effect from time to time during that
period and to be paid in a lump sum upon the expiration of the deferral period. 
 2. Continued Indemnification. The
indemnification provisions for Officers and Directors under the Company’s bylaws, the Directors and Officers Liability Insurance Policy (if any) and any Indemnification Agreement between you and the Company shall (to the maximum extent
permitted by law) be extended to you during the period following your resignation or termination of employment for any reason (other than a Termination for Cause), whether or not in connection with a Change in Control, with respect to all matters,
events or transactions occurring or effected during your period of employment with the Company. 
 3. No Mitigation Duty. The
Company shall not be entitled to set off any of the following amounts against the Change in Control Severance Benefits to which you may become entitled under Part Two of this Agreement: (i) any amounts which you may subsequently earn through
other employment or service following his termination of employment with the Company or (ii) any amounts which you might have potentially earned in other employment or service had you sought such other employment or service. 
 4. Death. Should you die before your receive the full amount of payments and benefits to which you may become entitled under this
Agreement, then the balance of such payments shall be made, on the due dates hereunder had you survived, to the executors or administrators of your estate. Should you die before you exercise all your outstanding Options as accelerated hereunder,
then such Options may be exercised, within the applicable exercise period following your death, by the executors or administrators of your estate or by the persons to whom those Options are transferred pursuant to your will or in accordance wit the
laws of inheritance. In no event, however, may any such Option be exercised after the specified expiration date of the option term. 
 5.
Successors and Assigns. The provisions of this Agreement shall inure to the benefit of, and shall be binding upon, (i) the Company and its successors and assigns, including any successor entity by merger, consolidation or transfer of
all or substantially all of the Company’s assets (whether or not such transaction constitutes a Change in Control), and (ii) you, the personal representative of your estate and your heirs and legatees. 
 6. General Creditor Status. The benefits to which you may become entitled under Part Two of this Agreement shall be paid, when due, from
the Company’s general assets. No trust fund, escrow arrangement or other segregated account shall be established as a funding vehicle for such payments. Your right (or the right of the executors or administrators of your estate) to receive such
benefits shall at all times be that of a general creditor of the Company and shall have no priority over the claims of other general creditors. 
  

 Page 11 

 7. Amendment and Termination. 
 (a) This letter agreement may only be amended by written instrument signed by you and an authorized officer of the Company. This letter agreement shall
remain in effect through December 31, 2007. 
 (b) Once a Change in Control has been effected, this letter agreement may not be
terminated at any time prior to the expiration of the twelve (12)-month period following the effective date of that Change of Control, and no subsequent termination of this letter agreement shall adversely affect your right to receive any benefits
to which you may have previously become entitled hereunder in connection with your Involuntary Termination following that Change in Control. 
 (c) In the event your employment is terminated by the Company during the Pre-Closing Period for any reason other than a Termination for Cause, then the termination of this letter agreement on December 31, 2007 shall not adversely
affect your right to receive any benefits which previously became due and payable to you, in accordance with the applicable provisions of Part Two, at the time of your pre-January 1, 2008 termination. 
 8. Termination for Cause. In the event of your Termination for Cause or your resignation under circumstances which would otherwise
constitute grounds for a Termination for Cause, the Company will only be required to pay you (i) any unpaid compensation earned for services previously rendered through the date of such termination and (ii) any accrued but unpaid vacation
benefits or sick days, and no benefits will be payable to you under Part Two of this letter agreement. 
 9. Governing Law/Other
Agreements. This letter agreement is to be construed and interpreted under the laws of the State of California. This letter agreement supersedes all prior agreements between you and the Company relating to the subject of severance benefits
payable upon a change in control or ownership of the Company, and you will not be entitled to any other severance benefits upon such a termination other than those that are provided in this letter agreement. 
 10. At Will Employment. Nothing in this letter agreement is intended to provide you with any right to continue in the employ of the Company
(or any subsidiary) for any period of specific duration or interfere with or otherwise restrict in any way your rights or the rights of the Company (or any subsidiary), which rights are hereby expressly reserved by each, to terminate your employment
at any time and for any reason, with or without cause. 
  

 Page 12 

 Please indicate your agreement with the foregoing terms and conditions of your change in control
severance package by signing the Acceptance section of the enclosed copy of this letter and returning it to the Company. 
  

			
	Very truly yours,
	
	ACTUATE CORPORATION
		
	By:	 	 /s/ Kenneth E. Marshall

		 	Kenneth E. Marshall
	Title:	 	Director

 ACCEPTANCE 
 I hereby agree to all the terms and provisions of the foregoing letter agreement governing the special benefits to which I may become entitled in the
event my employment should terminate under certain prescribed circumstances following a substantial change in control or ownership of the Company. 
  

			
	Signature:	 	  

		
	Dated:	 	  

		
	Address	 	  

		
		 	  

  

 Page 13 

 EXHIBIT A 
 GENERAL RELEASE 

 RELEASE AND WAIVER OF CLAIMS 
 In consideration of the severance payments and other benefits to which I have become entitled, pursuant to that certain letter agreement between Actuate
Corporation, a Delaware corporation (the “Company”), and myself dated     , 2005 (the “Severance Agreement), in connection with the termination of my employment on this date, I,
                    , hereby furnish the Company with the following release and waiver (“Release and Waiver”). 
 I hereby release and forever discharge the Company, its officers, directors, agents, employees, stockholders, successors, assigns and affiliates from any
and all claims, liabilities, demands, causes of action, costs, expenses, attorney fees, damages, indemnities and obligations of every kind and nature, in law, equity or otherwise, known and unknown, suspected and unsuspected, disclosed and
undisclosed, arising from or relating to my employment with the Company and the termination of that employment, including (without limitation) claims of wrongful discharge, emotional distress, defamation, fraud, breach of contract, breach of the
covenant of good faith and fair dealing, discrimination claims based on sex, age, race, national origin, disability or any other basis under Title VII of the Civil Rights Act of 1964, as amended, the California Fair Employment and Housing Act, the
Federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”), the Americans with Disability Act, contract claims, tort claims, and wage or benefit claims, including (without limitation) claims for salary, bonuses, commissions,
stock grants, stock options, vacation pay, fringe benefits, severance pay or any other form of compensation (other than the payments and benefits to which I am entitled under the Severance Agreement, my vested rights under the Company’s
Section 401(k) Plan and any worker’s compensation benefits under any Company workers’ compensation insurance policy or fund). 
 In releasing claims unknown to me at present, I am waiving all rights and benefits under Section 1542 of the California Civil Code, and any law or legal principle of similar effect in any jurisdiction: “A general release does
not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.” 
 This Release and Waiver does not pertain to any claims which may subsequently arise in connection with the Company’s default in any of its payment
obligations under the Severance Agreement or its indemnification obligations to me thereunder. 
 I acknowledge that, among other rights
subject to his Release and Waiver, I am hereby waiving and releasing any rights I may have under ADEA, that this release and waiver is knowing and voluntary, and that the consideration given for this release and waiver is in addition to anything of
value to which I was already entitled as an executive of the Company. I further acknowledge that I have been advised, as required by the Older Workers Benefit Protection Act, that: (a) the release and waiver granted herein does not relate to
claims which may arise after this release and waiver is executed; (b) I have the right to consult with an attorney prior to executing this release and waiver (although I may choose voluntarily not to do so); and if I am 

 
over 40 years old upon execution of this (c) I have twenty-one (21) days from the date of termination of my employment with the Company in which to
consider this release and waiver (although I may choose voluntarily to execute this release and waiver earlier); (d) I have seven (7) days following the execution of this release and waiver to revoke my consent to this release and waiver;
and (e) this release and waiver shall not be effective until the seven (7)-day revocation period has expired. 
  

					
	 Date:
                        
	 	  

		 		 	EXECUTIVE

  

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