Document:

escrow

Exhibit 10.5

ESCROW AGREEMENT

THIS ESCROW AGREEMENT (this "Agreement") is made as of September 18,
2000, by and among Corel Corporation, a corporation continued under the laws of Canada (the
"Company"), Albans Investments Limited ("Purchaser"), a corporation incorporated under the
laws of the British Virgin Islands, and Epstein Becker & Green, P.C., having an address at 250
Park Avenue, New York, NY 10177 (the "Escrow Agent").  Capitalized terms used but not
defined herein shall have the meanings set forth in the Purchase Agreement referred to in the first
recital.

WHEREAS, the Purchaser will from time to time as requested by the Company,
purchase Common Shares from the Company as set forth in that certain Share Purchase
Agreement (the "Purchase Agreement") dated the date hereof between the Purchaser and the
Company, which will be issued as per the terms and conditions contained herein and in the
Purchase Agreement; and

WHEREAS, the Company and the Purchaser have requested that the Escrow
Agent hold in escrow and then distribute the initial documents and certain funds which are
conditions precedent to the effectiveness of the Purchase Agreement, and have further requested
that upon each exercise of a Draw Down, the Escrow Agent hold the relevant documents and the
applicable purchase price pending receipt by Purchaser of certificates representing the securities
issuable upon such Draw Down;

NOW, THEREFORE, in consideration of the covenants and mutual promises
contained herein and other good and valuable consideration, the receipt and legal sufficiency of
which are hereby acknowledged and intending to be legally bound hereby, the parties agree as
follows:

Article I

TERMS OF THE ESCROW FOR THE INITIAL CLOSING

1.1.   The parties hereby agree to establish an escrow account with the Escrow
Agent whereby the Escrow Agent shall hold the funds and documents which are referenced in
Section 5.2 of the Purchase Agreement.

1.2.   At the Initial Closing, the Company shall deliver to the Escrow Agent:

(i)    the original executed Registration Rights Agreement in the form of
Exhibit A to the Purchase Agreement;

(ii)   the original executed opinions of McCarthy Tetrault and Milbank,
Tweed, Hadley & McCloy in the forms of Exhibit C-1, and Exhibit
C-2 to the Purchase Agreement;

(iii)  the sum of $25,000 for the fees and expenses of the Purchaser's
counsel and the Escrow Agent;

(iv)   the original executed Company counterpart of this Escrow
Agreement; 

(v)    the original executed Company counterpart of the Purchase
Agreement;

(vi)   the original executed Initial Warrant in the form of Exhibit E to the
Purchase Agreement; and

(vii)  a warrant certificate issued to Whale Securities Co., L.P. ("Whale
Securities") to purchase up to 56,500 Common Shares with an
exercise price equal to 115% of the average closing bid prices of
the Common Shares on the fifteen Trading Days immediately prior
to the Initial Closing Date otherwise identical to that of the Initial
Warrant (the "Whale Warrant").

(viii) a warrant certificate issued to Richard Geyser identical to that of
the Whale Warrant (the "Geyser Warrant").

1.3.   Upon receipt of the foregoing, and receipt of executed counterparts from
Purchaser of the Purchase Agreement, the Registration Rights Agreement and this Escrow
Agreement and an executed Guaranty from the Purchaser, the Escrow Agent shall calculate and
enter the exercise price, the issuance date and termination date on the face of the Initial Warrant
and the Whale Warrant and immediately transfer the sum of Twenty-Five Thousand Dollars
($25,000) to Epstein Becker & Green, P.C. ("EB&G"), 250 Park Avenue, New York, New York
10177 for the Purchaser's legal, administrative and escrow costs and the Escrow Agent shall then
arrange to have the Purchase Agreement, this Escrow Agreement, the Registration Rights
Agreement, the Initial Warrant, the Whale Warrant, the Geyser Warrant, the Guaranty and the
opinions of counsel delivered to the appropriate parties.

0.4    Wire transfers to the Escrow Agent shall be made as follows:

                 Epstein Becker  Green, P.C.

                 Master Escrow Account

                 Chase Manhattan Bank

                 1411 Broadway - Fifth Floor

                 New York, New York 10018

                 ABA No. 021000021

                 Account No. 035 1 346036

                 Attention: L. Borneo

Article I

TERMS OF THE ESCROW FOR EACH DRAW DOWN

1.1.   Each time the Company shall send a Draw Down Notice to the Purchaser
as provided in the Purchase Agreement, it shall send a copy, by facsimile, to the Escrow Agent.

1.2.   Each time the Purchaser shall purchase Shares pursuant to a Draw Down,
the Purchaser shall send the applicable purchase price of the Draw Down Shares to the Escrow
Agent, which shall advise the Company in writing that it has received the purchase price for such
Draw Down Shares.  The Company shall promptly, but no later than three (3) Trading Days after
receipt of such funding notice from the Escrow Agent, cause its transfer agent to issue the Draw
Down Shares to the Purchaser via the Depository Trust Company deposit to the account specified
by the Purchaser from time to time, deliver the Draw Down Warrants, deliver the Purchaser
Warrants, deliver the original executed opinions of McCarthy Tetrault and Milbank, Tweed,
Hadley & McCloy LLP in the form of Exhibit C-3, deliver a supplemental prospectus on form
424(b) to the Purchaser and deliver a warrant certificate to purchase up to a number of shares
equal to 1% of the shares purchased on the applicable Settlement Date and an exercise price
equal to 115% of the weighted average of the Purchase Prices of the Common Shares during the
applicable Settlement Period otherwise identical to that of the Draw Down Warrant issued to
Whale Securities Co., L.P. (the "Whale Draw Down Warrant").  Upon receipt of written
confirmation from the transfer agent or from the Purchaser that such Draw Down Shares have
been so deposited and the Draw Down Warrants, the Purchaser Warrants and the Whale Draw
Down Warrants and the opinion and the supplemental prospectus have been so delivered, the
Escrow Agent shall, within one (1) Trading Day, calculate and enter the number, the exercise
price, the initial issuance date and the termination date on the face of the Draw Down Warrants,
the Purchaser Warrants and the Whale Draw Down Warrants and wire 99% of the Purchase Price
of the Draw Down per the written instructions of the Company, net of $1,500 as escrow expenses
to the Escrow Agent and the remaining 1% of the Purchase Price as directed by Whale Securities
and deliver the Draw Down Warrants, the Purchaser Warrants, the opinion and the supplemental
prospectus to the Purchaser and deliver the Whale Draw Down Warrant to Whale Securities Co.,
L.P.

Article II

MISCELLANEOUS

2.1.   No waiver or any breach of any covenant or provision herein contained
shall be deemed a waiver of any preceding or succeeding breach thereof, or of any other covenant
or provision herein contained.  No extension of time for performance of any obligation or act
shall be deemed an extension of the time for performance of any other obligation or act.

2.2.   All notices or other communications required or permitted hereunder shall
be in writing, and shall be sent by fax, overnight courier, registered or certified mail, postage
prepaid, return receipt requested, and shall be deemed received upon receipt thereof, as set forth
in the Purchase Agreement.

2.3.   This Escrow Agreement shall be binding upon and shall inure to the
benefit of the permitted successors and permitted assigns of the parties hereto.

2.4.   This Escrow Agreement is the final expression of, and contains the entire
agreement between, the parties with respect to the subject matter hereof and supersedes all prior
understandings with respect thereto.  This Escrow Agreement may not be modified, changed,
supplemented or terminated, nor may any obligations hereunder be waived, except by written
instrument signed by the parties to be charged or by their respective agents duly authorized in
writing or as otherwise expressly permitted herein.

2.5.   Whenever required by the context of this Escrow Agreement, the singular
shall include the plural and masculine shall include the feminine.  This Escrow Agreement shall
not be construed as if it had been prepared by one of the parties, but rather as if both parties had
prepared the same.  Unless otherwise indicated, all references to Articles are to this Escrow
Agreement.

2.6.   The parties hereto expressly agree that this Escrow Agreement shall be
governed by, interpreted under and construed and enforced in accordance with the laws of the
State of New York.  Except as expressly set forth herein, any action to enforce, arising out of, or
relating in any way to, any provisions of this Escrow Agreement shall brought in the federal or
state courts of New York, New York as is more fully set forth in the Purchase Agreement.

2.7.   The Escrow Agent's duties hereunder may be altered, amended, modified
or revoked only by a writing signed by the Company, Purchaser and the Escrow Agent.

2.8.   The Escrow Agent shall be obligated only for the performance of such
duties as are specifically set forth herein and may rely and shall be protected in relying or
refraining from acting on any instrument reasonably believed by the Escrow Agent to be genuine
and to have been signed or presented by the proper party or parties.  The Escrow Agent shall not
be personally liable for any act the Escrow Agent may do or omit to do hereunder as the Escrow
Agent while acting in good faith, excepting only its own gross negligence or willful misconduct,
and any act done or omitted by the Escrow Agent pursuant to the advice of the Escrow Agent's
attorneys-at-law (other than Escrow Agent itself) shall be conclusive evidence of such good faith.

2.9.   The Escrow Agent is hereby expressly authorized to disregard any and all
warnings given by any of the parties hereto or by any other person or corporation, excepting only
orders or process of courts of law and is hereby expressly authorized to comply with and obey
orders, judgments or decrees of any court.  In case the Escrow Agent obeys or complies with any
such order, judgment or decree, the Escrow Agent shall not be liable to any of the parties hereto
or to any other person, firm or corporation by reason of such decree being subsequently reversed,
modified, annulled, set aside, vacated or found to have been entered without jurisdiction.

2.10.  The Escrow Agent shall not be liable in any respect on account of the
identity, authorization or rights of the parties executing or delivering or purporting to execute or
deliver the Purchase Agreement or any documents or papers deposited or called for thereunder or
hereunder.

2.11.  In the event of any dispute arising hereunder, the Escrow Agent shall be
entitled to employ such legal counsel and other experts as the Escrow Agent may deem necessary
properly to advise the Escrow Agent in connection with the Escrow Agent's duties hereunder,
may rely upon the advice of such counsel, and may pay such counsel reasonable compensation
therefor.  The Escrow Agent has acted as legal counsel for the Purchaser, and may continue
to act as legal counsel for the Purchaser, from time to time, notwithstanding its duties as
the Escrow Agent hereunder.  The Company consents to the Escrow Agent's acting in such
capacity as legal counsel for the Purchaser and waives any claim that such representation
represents a conflict of interest on the part of the Escrow Agent.  The Company
understands that the Purchaser and the Escrow Agent are relying explicitly on the
foregoing provision in entering into this Escrow Agreement.

2.12.  The Escrow Agent's responsibilities as escrow agent hereunder shall
terminate if the Escrow Agent shall resign by written notice to the Company and the Purchaser.
In the event of any such resignation, the Purchaser and the Company shall appoint a successor
Escrow Agent.

2.13.  If the Escrow Agent reasonably requires other or further instruments in
connection with this Escrow Agreement or obligations in respect hereto, the necessary parties
hereto shall join in furnishing such instruments.

2.14.  It is understood and agreed that should any dispute arise with respect to the
delivery and/or ownership or right of possession of the documents or the escrow funds held by
the Escrow Agent hereunder, the Escrow Agent is authorized and directed in the Escrow Agent's
sole discretion (1) to retain in the Escrow Agent's possession without liability to anyone all or
any part of said documents or the escrow funds until such disputes shall have been settled either
by mutual written agreement of the parties concerned or by a final order, decree or judgment of a
court of competent jurisdiction after the time for appeal has expired and no appeal has been
perfected, but the Escrow Agent shall be under no duty whatsoever to institute or defend any
such proceedings or (2) to deliver the escrow funds and any other property and documents held
by the Escrow Agent hereunder to a state or federal court having competent subject matter
jurisdiction and located in New York, New York in accordance with the applicable procedure
therefor.

2.15.  The Company and the Purchaser agree jointly and severally to indemnify
and hold harmless the Escrow Agent and its partners, employees, agents and representatives from
any and all claims, liabilities, costs or expenses in any way arising from or relating to the duties
or performance of the Escrow Agent hereunder or the transactions contemplated hereby or by the
Purchase Agreement other than any such claim, liability, cost or expense to the extent the same
shall have been determined by final, unappealable judgment of a court of competent jurisdiction
to have resulted from the gross negligence or willful misconduct of the Escrow Agent.

IN WITNESS WHEREOF, the parties hereto have executed this Escrow
Agreement as of this __ day of September, 2000.

Corel Corporation

By:      

Name:

Title:

Albans Investments Limited

By:      

  Name:

  Title:

ESCROW AGENT:

EPSTEIN BECKER & GREEN, P.C.

By:      

Robert F. Charron, Authorized Signatorywarrants

Exhibit 10.6

NEITHER THIS WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE HEREOF
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE "SECURITIES ACT") OR ANY OTHER APPLICABLE STATE SECURITIES LAWS
IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT PURSUANT TO REGULATION D AND SUCH OTHER
SECURITIES LAWS OR UNDER ANY CANADIAN SECURITIES LAWS.  NEITHER THIS
WARRANT NOR THE SHARES ISSUABLE UPON EXERCISE HEREOF MAY BE SOLD,
PLEDGED, TRANSFERRED, ENCUMBERED OR OTHERWISE DISPOSED OF EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION
UNDER THE PROVISIONS OF THE SECURITIES ACT OR ANY APPLICABLE STATE
LAWS OR IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER
ANY APPLIABLE CANADIAN LAWS. THIS WARRANT MAY NOT BE EXERCISED BY
OR ON BEHALF OF A UNITED STATES PERSON UNLESS REGISTERED UNDER THE
SECURITIES ACT OR AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE,
AS REQUIRED BY REGULATION D. 

SHARE PURCHASE WARRANT

To Purchase __________ Common Shares of

COREL CORPORATION

THIS CERTIFIES that, for value received, ____________________________
(the "Holder"), is entitled, upon the terms and subject to the limitations on exercise and the
conditions hereinafter set forth, at any time on or after the date hereof (the "Initial Exercise
Date") and on or prior to the close of business on _______ __, 200_ (the "Termination Date") but
not thereafter, to subscribe for and purchase from Corel Corporation, a corporation continued
under the laws of Canada (the "Company"), up to ___________ common shares (the "Warrant
Shares") of the Company (the "Common Shares").  The purchase price of one Common Share
(the "Exercise Price") under this Warrant shall be $____.  The Exercise Price and the number of
shares for which the Warrant is exercisable shall be subject to adjustment as provided herein. In
the event of any conflict between the terms of this Warrant and the Share Purchase Agreement
dated as of September 18, 2000 pursuant to which this Warrant has been issued (the "Purchase
Agreement"), the Purchase Agreement shall control. Capitalized terms used and not otherwise
defined herein shall have the meanings set forth for such terms in the Purchase Agreement.

1.     Title to Warrant.  Prior to the Termination Date and subject to compliance
with applicable laws, this Warrant and all rights hereunder are transferable, in whole or in part, at
the office or agency of the Company by the holder hereof in person or by duly authorized
attorney, upon surrender of this Warrant together with the Assignment Form annexed hereto
properly endorsed.

2.     Authorization of Shares.  The Company covenants that all Common Shares
which may be issued upon the exercise of the purchase rights represented by this Warrant will,
upon exercise of the purchase rights represented by this Warrant, be duly authorized, validly
issued, fully paid and nonassessable and free from all taxes, liens and charges in respect of the
issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such
issue).

3.     Exercise of Warrant.  

(a)    Except as provided in Section 4 herein, exercise of the purchase rights
represented by this Warrant may be made at any time or times on or after the Initial Exercise
Date, and before the close of business on the Termination Date by the surrender of this Warrant
and the Notice of Exercise Form annexed hereto duly executed, at the office of the Company (or
such other office or agency of the Company as it may designate by notice in writing to the
registered holder hereof at the address of such holder appearing on the books of the Company)
and upon payment of the Exercise Price of the shares thereby purchased by wire transfer or
cashier's check drawn on a United States bank, the holder of this Warrant shall be entitled to
receive a certificate for the number of Common Shares so purchased. Certificates for shares
purchased hereunder shall be delivered to the holder hereof within four (4) Trading Days after the
date on which this Warrant shall have been exercised as aforesaid. This Warrant shall be deemed
to have been exercised and such certificate or certificates shall be deemed to have been issued,
and Holder or any other person so designated to be named therein shall be deemed to have
become a holder of record of such shares for all purposes, as of the date the Warrant has been
exercised by payment to the Company of the Exercise Price and all taxes required to be paid by
Holder, if any, pursuant to Section 5 prior to the issuance of such shares, have been paid.  

(b)    If this Warrant shall have been exercised in part, the Company shall, at
the time of delivery of the certificate or certificates representing Warrant Shares, deliver to
Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased Common
Shares called for by this Warrant, which new Warrant shall in all other respects be identical with
this Warrant. 

(c)    If no registration statement is effective permitting the resale of the
Common Shares issued upon exercise of this Warrant at any time commencing one year after the
issuance date hereof, then this Warrant shall also be exercisable by means of a "cashless
exercise" in which the holder shall be entitled to receive a certificate for the number of shares
equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

(A) = the average of the high and low trading prices per Common Share on the Trading Day
preceding the date of such election on the Nasdaq Stock Market, or if the Common Shares are
not traded on the Nasdaq Stock Market, then the Principal Market in terms of volume, and
converted into US Dollars;

(B) =  the Exercise Price of the Warrants; and 

(X) = the number of shares issuable upon exercise of the Warrants in accordance with the terms
of this Warrant.

4.     No Fractional Shares or Scrip.  No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant.  As to any fraction of a share
which Holder would otherwise be entitled to purchase upon such exercise, the Company shall
pay a cash adjustment in respect of such final fraction in an amount equal to the Exercise Price.

5.     Charges, Taxes and Expenses.  Issuance of certificates for Common Shares
upon the exercise of this Warrant shall be made without charge to the holder hereof for any issue
or transfer tax or other incidental expense in respect of the issuance of such certificate, all of
which taxes and expenses shall be paid by the Company, and such certificates shall be issued in
the name of the holder of this Warrant or in such name or names as may be directed by the holder
of this Warrant; provided, however, that in the event certificates for Common Shares are to be
issued in a name other than the name of the holder of this Warrant, this Warrant when
surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly
executed by the holder hereof; and the Company may require, as a condition thereto, the payment
of a sum sufficient to reimburse it for any transfer tax incidental thereto.

6.     Closing of Books.  The Company will not close its shareholder books or
records in any manner which prevents the timely exercise of this Warrant.

7.     Transfer, Division and Combination.  (a) Subject to compliance with any
applicable securities laws, transfer of this Warrant and all rights hereunder, in whole or in part,
shall be registered on the books of the Company to be maintained for such purpose, upon
surrender of this Warrant at the principal office of the Company, together with a written
assignment of this Warrant substantially in the form attached hereto duly executed by Holder or
its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of
such transfer.  Upon such surrender and, if required, such payment, the Company shall execute
and deliver a new Warrant or Warrants in the name of the assignee or assignees and in the
denomination or denominations specified in such instrument of assignment, and shall issue to the
assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant
shall promptly be cancelled.  A Warrant, if properly assigned, may be exercised by a new holder
for the purchase of Common Shares without having a new Warrant issued.

            (b)  This Warrant may be divided or combined with other Warrants
upon presentation hereof at the aforesaid office of the Company, together with a written notice
specifying the names and denominations in which new Warrants are to be issued, signed by
Holder or its agent or attorney.  Subject to compliance with Section 7(a), as to any transfer which
may be involved in such division or combination, the Company shall execute and deliver a new
Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in
accordance with such notice.

            (c)  The Company shall prepare, issue and deliver at its own expense
(other than transfer taxes) the new Warrant or Warrants under this Section 7.

            (d)  The Company agrees to maintain, at its aforesaid office, books for
the registration and the registration of transfer of the Warrants.

8.     No Rights as Shareholder until Exercise.  This Warrant does not entitle the
holder hereof to any voting rights or other rights as a shareholder of the Company prior to the
exercise hereof.  Upon the surrender of this Warrant and the payment of the aggregate Exercise
Price, the Warrant Shares so purchased shall be and be deemed to be issued to such holder as the
record owner of such shares as of the close of business on the later of the date of such surrender
or payment. 

9.     Loss, Theft, Destruction or Mutilation of Warrant.  The Company covenants
that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant certificate or any stock certificate relating to the
Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably
satisfactory to it (which shall not include the posting of any bond), and upon surrender and
cancellation of such Warrant or share certificate, if mutilated, the Company will make and
deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu
of such Warrant or share certificate.

10.    Saturdays, Sundays, Holidays, etc.  If the last or appointed day for the taking
of any action or the expiration of any right required or granted herein shall be a Saturday, Sunday
or a legal holiday, then such action may be taken or such right may be exercised on the next
succeeding day not a Saturday, Sunday or legal holiday.

11.    Adjustments of Exercise Price and Number of Warrant Shares.  

(a)    Stock Splits, etc. The number and kind of securities purchasable upon
the exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to
time upon the happening of any of the following.  In case the Company shall (i) pay a dividend in
Common Shares or make a distribution in Common Shares to holders of its outstanding Common
Shares, (ii) subdivide its outstanding Common Shares into a greater number of Common Shares,
(iii) combine its outstanding Common Shares into a smaller number of Common Shares or (iv)
issue any shares of its capital stock in a reclassification of the Common Shares, then the number
of Warrant Shares purchasable upon exercise of this Warrant immediately prior thereto shall be
adjusted so that the holder of this Warrant shall be entitled to receive the kind and number of
Warrant Shares or other securities of the Company which he would have owned or have been
entitled to receive had such Warrant been exercised in advance thereof.  Upon each such
adjustment of the kind and number of Warrant Shares or other securities of the Company which are
purchasable hereunder, the holder of this Warrant shall thereafter be entitled to purchase the
number of Warrant Shares or other securities resulting from such adjustment at an Exercise Price
per Warrant Share or other security obtained by multiplying the Exercise Price in effect
immediately prior to such adjustment by the number of Warrant Shares purchasable pursuant hereto
immediately prior to such adjustment and dividing by the number of Warrant Shares or other
securities of the Company resulting from such adjustment.  An adjustment made pursuant to this
paragraph shall become effective immediately after the effective date of such event retroactive to
the record date, if any, for such event.

(b)    Reorganization, Reclassification, Merger, Consolidation or Disposition
of Assets.  In case the Company shall reorganize its capital, reclassify its capital stock,
consolidate or merge with or into another corporation (where the Company is not the surviving
corporation or where there is a change in or distribution with respect to the Common Shares of
the Company), or sell, transfer or otherwise dispose of all or substantially all its property, assets
or business to another corporation and, pursuant to the terms of such reorganization,
reclassification, merger, consolidation or disposition of assets, shares of common stock of the
successor or acquiring corporation, or any cash, shares of stock or other securities or property of
any nature whatsoever (including warrants or other subscription or purchase rights) in addition to
or in lieu of common stock of the successor or acquiring corporation ("Other Property"), are to
be received by or distributed to the holders of Common Shares of the Company, then Holder
shall have the right thereafter to receive, upon exercise of this Warrant, the number of shares of
common stock of the successor or acquiring corporation or of the Company, if it is the surviving
corporation, and Other Property receivable upon or as a result of such reorganization,
reclassification, merger, consolidation or disposition of assets by a holder of the number of
Common Shares for which this Warrant is exercisable immediately prior to such event.  In case
of any such reorganization, reclassification, merger, consolidation or disposition of assets, the
successor or acquiring corporation (if other than the Company) shall expressly assume the due
and punctual observance and performance of each and every covenant and condition of this
Warrant to be performed and observed by the Company and all the obligations and liabilities
hereunder, subject to such modifications as may be deemed appropriate (as determined in good
faith by resolution of the Board of Directors of the Company) in order to provide for adjustments
of Common Shares for which this Warrant is exercisable which shall be as nearly equivalent as
practicable to the adjustments provided for in this Section 11.  For purposes of this Section 11,
"common stock of the successor or acquiring corporation" shall include stock of such corporation
of any class which is not preferred as to dividends or assets over any other class of stock of such
corporation and which is not subject to redemption and shall also include any evidences of
indebtedness, shares of stock or other securities which are convertible into or exchangeable for
any such stock, either immediately or upon the arrival of a specified date or the happening of a
specified event and any warrants or other rights to subscribe for or purchase any such stock.  The
foregoing provisions of this Section 11 shall similarly apply to successive reorganizations,
reclassifications, mergers, consolidations or disposition of assets.

12.    Voluntary Adjustment by the Company.  The Company may, at any time
during the term of this Warrant, reduce the then current Exercise Price to any amount and for any
period of time deemed appropriate by the Board of Directors of the Company.

13.    Notice of Adjustment.  Whenever the number of Warrant Shares or number or
kind of securities or other property purchasable upon the exercise of this Warrant or the Exercise
Price is adjusted, as herein provided, the Company shall promptly mail by registered or certified
mail, return receipt requested, to the holder of this Warrant notice of such adjustment or
adjustments setting forth the number of Warrant Shares (and other securities or property)
purchasable upon the exercise of this Warrant and the Exercise Price of such Warrant Shares
(and other securities or property) after such adjustment, setting forth a brief statement of the facts
requiring such adjustment and setting forth the computation by which such adjustment was made.
Such notice, in the absence of manifest error, shall be conclusive evidence of the correctness of
such adjustment.

14.    Notice of Corporate Action.  If at any time:

            (a)  the Company shall take a record of the holders of its Common
Shares for the purpose of entitling them to receive a dividend or other distribution, or any right to
subscribe for or purchase any evidences of its indebtedness, any shares of stock of any class or
any other securities or property, or to receive any other right, or

            (b)  there shall be any capital reorganization of the Company, any
reclassification or recapitalization of the capital stock of the Company or any consolidation or
merger of the Company with, or any sale, transfer or other disposition of all or substantially all
the property, assets or business of the Company to, another corporation or,

            (c)  there shall be a voluntary or involuntary dissolution, liquidation or
winding up of the Company;

then, in any one or more of such cases, the Company shall give to Holder (i) at least 20 business
days' prior written notice of the date on which a record date shall be selected for such dividend,
distribution or right or for determining rights to vote in respect of any such reorganization,
reclassification, merger, consolidation, sale, transfer, disposition, liquidation or winding up, and
(ii) in the case of any such reorganization, reclassification, merger, consolidation, sale, transfer,
disposition, dissolution, liquidation or winding up, at least 20 business days' prior written notice
of the date when the same shall take place.  Such notice in accordance with the foregoing clause
also shall specify (i) the date on which any such record is to be taken for the purpose of such
dividend, distribution or right, the date on which the holders of Common Shares shall be entitled
to any such dividend, distribution or right, and the amount and character thereof, and (ii) the date
on which any such reorganization, reclassification, merger, consolidation, sale, transfer,
disposition, dissolution, liquidation or winding up is to take place and the time, if any such time
is to be fixed, as of which the holders of Common Shares shall be entitled to exchange their
Common Shares for securities or other property deliverable upon such disposition, dissolution,
liquidation or winding up.  Each such written notice shall be sufficiently given if addressed to
Holder at the last address of Holder appearing on the books of the Company and delivered in
accordance with the notice provisions of the Purchase Agreement.

15.    Authorized Shares.  The Company covenants that during the period the
Warrant is outstanding, it will reserve from its authorized and unissued Common Shares a
sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise
of any purchase rights under this Warrant.  The Company further covenants that its issuance of
this Warrant shall constitute full authority to its officers who are charged with the duty of
executing stock certificates to execute and issue the necessary certificates for the Warrant Shares
upon the exercise of the purchase rights under this Warrant.  The Company will take all such
reasonable action as may be necessary to assure that such Warrant Shares may be issued as
provided herein without violation of any applicable law or regulation, or of any requirements of
the Principal Market upon which the Common Shares may be listed. 

            The Company shall not by any action, including, without limitation,
amending its certificate of incorporation or through any reorganization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid
or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all
times in good faith assist in the carrying out of all such terms and in the taking of all such actions
as may be necessary or appropriate to protect the rights of Holder against impairment.  Without
limiting the generality of the foregoing, the Company will (a) take all such action as may be
necessary or appropriate in order that the Company may validly and legally issue fully paid and
nonassessable Common Shares upon the exercise of this Warrant, and (b) use commercially
reasonable efforts to obtain all such authorizations, exemptions or consents from any public
regulatory body having jurisdiction thereof as may be necessary to enable the Company to
perform its obligations under this Warrant.

               Before taking any action which would result in an adjustment in the
number of Common Shares for which this Warrant is exercisable or in the Exercise Price, the
Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may
be necessary from any public regulatory body or bodies having jurisdiction thereof.

16.    Miscellaneous.

(a)    Jurisdiction. This Warrant shall be binding upon any successors or
assigns of the Company.  This Warrant shall constitute a contract under the laws of New York,
without regard to its conflict of law, principles or rules, and be subject to arbitration pursuant to
the terms set forth in the Purchase Agreement.

(b)    Restrictions.  The holder hereof acknowledges that the Warrant Shares
acquired upon the exercise of this Warrant, if not registered, will have restrictions upon resale
imposed by the United States and Canadian state, provincial and federal securities laws.

(c)    Nonwaiver and Expenses.  No course of dealing or any delay or failure
to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or
otherwise prejudice Holder's rights, powers or remedies, notwithstanding all rights hereunder
terminate on the Termination Date.  If the Company willfully fails to comply with any  provision
of this Warrant, the Company shall pay to Holder such amounts as shall be sufficient to cover
any costs and expenses including, but not limited to, reasonable attorneys' fees, including those
of appellate proceedings, incurred by Holder in collecting any amounts due pursuant hereto or in
otherwise enforcing any of its rights, powers or remedies hereunder.

(d)    Notices.  Any notice, request or other document required or permitted
to be given or delivered to the holder hereof by the Company shall be delivered in accordance
with the notice provisions of the Purchase Agreement.

(e)    Limitation of Liability.  No provision hereof, in the absence of
affirmative action by Holder to purchase Common Shares, and no enumeration herein of the
rights or privileges of Holder hereof, shall give rise to any liability of Holder for the purchase
price of any Common Shares or as a shareholder of the Company, whether such liability is
asserted by the Company or by creditors of the Company.

(f)    Remedies.  Holder, in addition to being entitled to exercise all rights
granted by law, including recovery of damages, will be entitled to specific performance of its
rights under this Warrant.  The Company agrees that monetary damages would not be adequate
compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant
and hereby agrees to waive the defense in any action for specific performance that a remedy at
law would be adequate.

(g)    Successors and Assigns.  Subject to applicable securities laws, this
Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be
binding upon the successors of the Company and the successors and permitted assigns of Holder.
The provisions of this Warrant are intended to be for the benefit of all Holders from time to time
of this Warrant and shall be enforceable by any such Holder or holder of Warrant Shares.

(h)    Amendment.  This Warrant may be modified or amended or the
provisions hereof waived with the written consent of the Company and the Holder.

(i)    Severability.  Wherever possible, each provision of this Warrant shall
be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Warrant shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without invalidating the
remainder of such provisions or the remaining provisions of this Warrant.

(j)    Headings.  The headings used in this Warrant are for the convenience
of reference only and shall not, for any purpose, be deemed a part of this Warrant.

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
by its officer thereunto duly authorized.

Dated: September __, 2000

  COREL CORPORATION

  By:  

          Name:

          Title:

  

  NOTICE OF EXERCISE

To:    Corel Corporation

(1)    The undersigned hereby elects to purchase ________ Common Shares (the
"Common Shares"), of Corel Corporation pursuant to the terms of the attached Warrant, and
tenders herewith payment of the exercise price in full, together with all applicable transfer taxes,
if any.

(2)    Please issue a certificate or certificates representing said Common Shares in
the name of the undersigned or in such other name as is specified below:

            _______________________________

            (Name)

            _______________________________

            (Address)

            _______________________________

Dated:

                                ______________________________

                                Signature

ASSIGNMENT FORM

(To assign the foregoing warrant, execute

this form and supply required information. 

Do not use this form to exercise the warrant.)

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby
assigned to

_______________________________________________ whose address is

_______________________________________________________________.

_______________________________________________________________

                                Dated:  ______________, _______

            Holder's Signature: _____________________________

            Holder's Address:   _____________________________

            

                           _____________________________

Signature Guaranteed:  ___________________________________________

NOTE:  The signature to this Assignment Form must correspond with the name as it appears on the face of
the Warrant, without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank
or trust company.  Officers of corporations and those acting in an fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.

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