Document:

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                                                                  EXHIBIT 10.14

                                    AGREEMENT

        This Agreement ("Agreement") is made by and between Novell, Inc. (the
"Company"), and Eric E. Schmidt ("Consultant").

        WHEREAS, Consultant was employed by the Company as President and Chief
Executive Officer and acts as Chairman of the Company's Board of Directors (the
"Board") pursuant to the terms and conditions of a key employment agreement
entered into by and between Consultant and the Company as of March 18, 1997 (the
"Employment Agreement");

        WHEREAS, Consultant has terminated as President and Chief Executive
Officer of the Company effective as of July 10, 2001;

        WHEREAS, Consultant is entitled to certain benefits under the Employment
Agreement as a result of his "Constructive Termination" thereunder;

        WHEREAS, in accordance with the terms of the Employment Agreement, the
Company wishes to continue to retain Consultant as Chairman of the Board. The
Company desires that Consultant remain a special consultant to the Company for a
period of at least twelve months following his termination as President and
Chief Executive Officer;

        WHEREAS, Consultant is willing to accept the benefits and compensation
offered by the Company under the terms and conditions set forth in this
Agreement and Consultant specifically agrees and acknowledges that the
compensation set forth herein, excluding the accelerated vesting referenced
below, satisfies the severance payments that Consultant is entitled to under the
terms and conditions of the Employment Agreement;

        WHEREAS, Consultant is willing to accept the accelerated vesting of any
unvested shares subject to his stock options that would have expired after June
10, 2002 under the terms and conditions set forth in this Agreement as
consideration for the mutual promises made herein;

        NOW THEREFORE, in consideration of the mutual promises made herein, the
Company and Consultant (collectively referred to as "the Parties") hereby agree
as follows:

        1. Termination.

           (a) Termination Date. Consultant's employment with the Company as
President and Chief Executive Officer terminated on July 10, 2001 (the
"Termination Date"). Notwithstanding Consultant's employment termination,
Consultant continues to serve as Chairman of the Board and as a special
consultant to the Company. Consultant agrees and acknowledges that although he
will continue to be Chairman of the Board following the Termination Date, he
will relinquish all other officer and director positions with the Company and
its affiliates (except as set forth in Section 2).

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           (b) Payment. The Company agrees to pay Consultant the lump sum amount
of $64,326.00, (which amount represents all unreimbursed business expenses and
accrued but unpaid salary and vacation as of the Termination Date) less
applicable withholding, within ten (10) days from the "Effective Date" (as
defined herein) of this Agreement. In addition, the Company agrees to pay
Consultant at the rate of $100,000 per month (which amount represents
Consultant's monthly "Base Salary" and "Target Bonus" as such terms are defined
in the Employment Agreement), less applicable withholding, for the time period
from the Termination Date through the twelve (12) month anniversary of the
Termination Date (the "Payment Period") in accordance with the Company's payroll
practices, whether or not Consultant continues to provide services to the
Company in any capacity during the Payment Period. Notwithstanding the
foregoing, such monthly payments shall be offset by any payment that Consultant
received from the Company after July 10, 2001 and prior to the commencement of
the monthly payments set forth in this Section. Consultant shall also be
entitled to receive an amount equal to the cost of COBRA continuation until the
earlier of (i) the date Consultant is no longer eligible to receive continuation
coverage pursuant to COBRA, or (ii) the end of the Payment Period. During the
Payment Period, Consultant will not be entitled to accrual of any employee
benefits, including, but not limited to, participation in the Company's benefit
plans and programs, accrual of vacation benefits, new stock option or restricted
stock grants, participation in any Company option repricings or exchanges,
401(k) contributions or bonuses. Absent a prior written agreement, Consultant
will not be entitled to any additional salary and bonus payments following the
conclusion of the Payment Period.

           (c) Restricted Stock. As of the Termination Date, the Company's right
to repurchase any shares of restricted stock purchased by Consultant (the
"Restricted Stock") shall lapse as to all unvested shares subject to such
Restricted Stock as set forth on Exhibit A hereto. Except as otherwise provided
in this Agreement, such accelerated shares shall continue to be subject to the
terms and conditions of the applicable Company stock plan and restricted stock
purchase agreements by and between Consultant and the Company. Such shares of
Restricted Stock are now duly authorized, legally issued, fully paid, and
nonassessable shares of the Company's common stock.

        2. Chairman and Consulting Arrangement.

           (a) Chairman/Member of the Board. Following the Termination Date,
Consultant will serve as Chairman of the Board or solely a member of the Board
for such period of time as determined by the Board and/or stockholders.
Consultant agrees and acknowledges that his continued service as either Chairman
of the Board or solely a member of the Board will be subject to any required
Board and stockholder approval.

           (b) Consultancy. The Company will retain Consultant as a special
consultant following his service as a member of the Board for a minimum period
of twelve calendar months or such longer period of time as determined by the
Board (the "Consulting Term"). Consultant will report directly to the President
and Chief Executive Officer of the Company during the Consulting Term and will
render such business and professional services as shall reasonably be assigned
to him by the Board or the President and Chief Executive Officer of the Company,
including, but not limited to, advising the President and Chief Executive
Officer of the Company and the Board on strategic issues and representing the
Company at various trade conferences as a speaker and promoter of the Company's
products and solutions. Notwithstanding the foregoing, the Consulting Term may
be

                                                                            -2-
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terminated by the Company at any time with or without cause or notice with
thirty (30) days written notice to Consultant.

           (c) Stock Options. As of the Termination Date, the vesting and
exercisability of any stock options granted to Consultant by the Company (the
"Options") shall accelerate as to all unvested shares subject to such Options as
set forth on Exhibit A hereto. Such accelerated options shall remain exercisable
until the earlier of: (i) the term/expiration date of the Options, or (iii) at
least sixty (60) days following the date that Consultant no longer serves as a
member of the Board or as a consultant to the Company. Except as otherwise
provided in this Agreement, the Options shall continue to be subject to the
terms and conditions of the applicable Company stock plan and option agreements
by and between Consultant and the Company.

           (d) Use of Company Aircraft. While a member of the Board or a
consultant to the Company, Consultant shall be permitted to use, for business
purposes only, the Company's corporate aircraft and pilot for up to four to six
business-related trips per year; provided, however, that such use shall be
subject to the Company's policies and aircraft usage requirements and shall be
contingent upon the Company continuing to own the aircraft. Any usage of the
aircraft by the Consultant must be approved in advance and in writing by the
Company's President and Chief Executive Officer and must not interfere with any
other usage of the aircraft by the Company.

        3. Confidential Information. Consultant shall continue to maintain the
confidentiality of all confidential and proprietary information of the Company.
Consultant agrees at all times during the term of his employment and/or
consultancy hereunder and thereafter, to hold in strictest confidence, and not
to use, except for the benefit of the Company, to fulfill his employment
obligations, or to disclose to any person, firm or corporation without written
authorization of the Board of Directors of the Company, any "Confidential
Information" of the Company. Consultant understands that "Confidential
Information" means any Company proprietary information, technical data, trade
secrets or know-how, including, but not limited to, research, product plans,
products, services, customer lists and customers (including, but not limited to,
customers of the Company on whom Consultant called or with whom Consultant
became acquainted during the term of his employment), markets, software,
developments, inventions, processes, formulas, technology, designs, drawings,
engineering, hardware configuration information, marketing, finances or other
business information disclosed to Consultant by the Company either directly or
indirectly in writing, orally or by drawings or observation of parts or
equipment. Consultant further understands that Confidential Information does not
include any of the foregoing items which has become publicly known and made
generally available through no wrongful act of Consultant or of others who were
under confidentiality obligations as to the item or items involved. Consultant
agrees that, at the end of the Consulting Term, Consultant will deliver to the
Company (and will not keep in his possession, recreate or deliver to anyone
else) any and all devices, records, data, notes, reports, proposals, lists,
correspondence, specifications, drawings, blueprints, sketches, materials,
equipment, other documents or property, or reproductions of any aforementioned
items developed by Consultant pursuant to his employment and consultancy with
the Company or otherwise belonging to the Company, its successors or assigns.

                                                                            -3-
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        4. Payment of Salary. Consultant acknowledges and represents that except
as provided in Sections 1 and 2 the Company has paid to Consultant all salary,
wages, bonuses, accrued vacation and any and all other benefits due to
Consultant.

        5. Release of Claims. Consultant agrees that the foregoing consideration
represents settlement in full of all outstanding obligations owed to Consultant
by the Company. Consultant, on behalf of himself, and his respective heirs,
family members, executors and assigns, hereby fully and forever releases the
Company and its past, present and future officers, agents, directors, employees,
investors, shareholders, administrators, affiliates, divisions, subsidiaries,
parents, predecessor and successor corporations, and assigns, from, and agrees
not to sue or otherwise institute or cause to be instituted any legal or
administrative proceedings concerning any claim, duty, obligation or cause of
action relating to any matters of any kind, whether presently known or unknown,
suspected or unsuspected, that he may possess arising from any omissions, acts
or facts that have occurred up until and including the Effective Date of this
Agreement including, without limitation,

           (a) any and all claims relating to or arising from Consultant's
employment relationship with the Company and the termination of that
relationship;

           (b) any and all claims relating to, or arising from, Consultant's
right to purchase, or actual purchase of shares of stock of the Company,
including, without limitation, any claims for fraud, misrepresentation, breach
of fiduciary duty, breach of duty under applicable state corporate law, and
securities fraud under any state or federal law;

           (c) any and all claims for wrongful discharge of employment;
termination in violation of public policy; discrimination; breach of contract,
both express and implied; breach of a covenant of good faith and fair dealing,
both express and implied; promissory estoppel; negligent or intentional
infliction of emotional distress; negligent or intentional misrepresentation;
negligent or intentional interference with contract or prospective economic
advantage; unfair business practices; defamation; libel; slander; negligence;
personal injury; assault; battery; invasion of privacy; false imprisonment; and
conversion;

           (d) any and all claims for violation of any federal, state or
municipal statute, including, but not limited to, Title VII of the Civil Rights
Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment
Act of 1967, the Americans with Disabilities Act of 1990, the Fair Labor
Standards Act, the Employee Retirement Income Security Act of 1974, The Worker
Adjustment and Retraining Notification Act, the California Fair Employment and
Housing Act, and Labor Code section 201, et seq. and section 970, et seq. and
all amendments to each such Act as well as the regulations issued thereunder;

           (e) any and all claims for violation of the federal, or any state,
constitution;

           (f) any and all claims arising out of any other laws and regulations
relating to employment or employment discrimination; and

           (g) any and all claims for attorneys' fees and costs.

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Consultant agrees that the release set forth in this section shall be and remain
in effect in all respects as a complete general release as to the matters
released. This release does not extend to any obligations incurred under this
Agreement.

        6. Acknowledgment of Waiver of Claims under ADEA. Consultant
acknowledges that he is waiving and releasing any rights he may have under the
Age Discrimination in Employment Act of 1967 ("ADEA") and that this waiver and
release is knowing and voluntary. Consultant and the Company agree that this
waiver and release does not apply to any rights or claims that may arise under
the ADEA after the Effective Date of this Agreement. Consultant acknowledges
that the consideration given for this waiver and release is in addition to
anything of value to which Consultant was already entitled. Consultant further
acknowledges that he has been advised by this writing that (a) he should consult
with an attorney prior to executing this Agreement; (b) he has twenty-one (21)
days within which to consider this Agreement; (c) he has seven (7) days
following the execution of this Agreement by the parties to revoke the
Agreement; and (d) this Agreement shall not be effective until the revocation
period has expired. Any revocation should be in writing and delivered to the
President and Chief Executive Officer at the Company, by close of business on
the seventh (7th) day from the date that Consultant signs this Agreement.

        7. Civil Code Section 1542. Consultant represents that he is not aware
of any claims against the Company other than the claims that are released by
this Agreement. Consultant acknowledges that he has been advised by legal
counsel and is familiar with the provisions of California Civil Code Section
1542, which provides as follows:

                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.

           Consultant, being aware of said code section, agrees to expressly
waive any rights he may have thereunder to the extent permitted by applicable
law.

        8. No Pending or Future Lawsuits. Consultant represents that he has no
lawsuits, claims, or actions pending in his name, or on behalf of any other
person or entity, against the Company or any other person or entity referred to
herein. Consultant also represents that he does not intend to bring any claims
on his own behalf or on behalf of any other person or entity against the Company
or any other person or entity referred to herein.

        9. Confidentiality. Consultant agrees to use his best efforts to
maintain in confidence the existence of this Agreement, the contents and terms
of this Agreement, and the consideration for this Agreement (hereinafter
collectively referred to as "Settlement Information"). Consultant agrees to take
every reasonable precaution to prevent disclosure of any Settlement Information
to third parties, and agrees that there will be no publicity, directly or
indirectly, concerning any Settlement Information. Consultant agrees to take
every precaution to disclose Settlement Information only to

                                                                             -5-
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those attorneys, accountants, governmental entities, and family members who have
a reasonable need to know of such Settlement Information.

        10. Covenant Not to Compete and Not to Solicit.

            (a) Consultant shall not for a period of one (1) year following the
Termination Date, directly or indirectly, engage in (whether as employee,
consultant, proprietor, partner, director or otherwise), or have any ownership
interest in, or participate in the financing, operation, management or control
of, any person, firm, corporation or business that is a "Restricted Business"
(as defined below) in a "Restricted Territory" (as defined below) without the
prior written consent of the Company. The following shall not constitute a
violation of this provision: (i) ownership of no more than two percent (2%) of
the outstanding voting stock of a publicly-traded corporation or any stock owned
by Consultant as of March 18, 1997, or (ii) Consultant's acting as a member of
any Board of Directors on which Consultant served as of March 18, 1997.

            For this purpose, "Restricted Business" shall mean: (i) the design,
development, manufacture, marketing or support of local or wide area network
products, computer operating systems, applications products, or any other
software products of the type designed, developed, manufactured, sold or
supported by the Company or as proposed to be designed, developed, manufactured,
sold or supported by the Company pursuant to a development project which is
actually being pursued prior to the end of Consultant's status as a director or
consultant to the Company. For this purpose, "Restricted Territory" shall mean
the counties, cities or states of the United States.

            (b) Following the Termination Date, Consultant shall not for a
period of one (1) year thereafter, (i) hire, solicit, encourage, or take any
other action which is intended to induce any other employee of the Company to
terminate his or her employment with the Company; or (ii) interfere with the
contractual or employment relationship between the Company and any such employee
of the Company. The foregoing shall not prohibit Consultant or any entity with
which Consultant may be affiliated from hiring a former employee of the Company;
provided that such hiring results exclusively from such former employee's
affirmative response to a general recruitment effort.

            (c) The parties intend that the covenants contained in the preceding
paragraphs shall be construed as a series of separate covenants, one for each
county, city and state or other political subdivision of the Restricted
Territory. Except for geographic coverage, each such separate covenant shall be
deemed identical in terms to the covenant contained in the preceding paragraphs.
If, in any judicial proceeding, a court shall refuse to enforce any of the
separate covenants (or any part thereof deemed included in said paragraphs),
then such unenforceable covenant (or such part) shall be deemed eliminated from
this Agreement for the purpose of those proceedings to the extent necessary to
permit the remaining separate covenants (or portions thereof) to be enforced.

            (d) In the event that the provisions of this Section should ever be
deemed to exceed the time, scope or geographic limitations permitted by
applicable laws, then such provisions shall be reformed to the maximum time,
scope or geographic limitations, as the case may be, permitted by applicable
laws.

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            (e) Consultant represents that he is familiar with the covenants not
to compete, not to hire and not to solicit, and is fully aware of and
acknowledges his obligations hereunder, including without limitation, the
reasonableness of the length of time and scope of these covenants. Consultant
acknowledges that breach of Consultant's covenants not to compete and not to
solicit in this Section would cause irreparable injury to the Company, and
agrees that in the event of such breach, the Company shall be entitled to seek
injunctive relief under applicable law without the necessity of proving actual
damages.

        11. No Cooperation. Consultant agrees he will not act in any manner that
might damage the business of the Company. Consultant agrees that he will not
counsel or assist any attorneys or their clients in the presentation,
prosecution or litigation of any disputes, differences, grievances, claims,
charges, or complaints by any third party against the Company and/or any
officer, director, employee, agent, representative, shareholder or attorney of
the Company, unless under a subpoena or other court order to do so. Consultant
agrees to notify the Company if he receives a subpoena or court order as
specified above.

        12. Cooperation. Consultant agrees to assist the Company in good faith
in the presentation, prosecution or litigation of any disputes, differences,
grievances, claims, charges, or complaints by any third party against the
Company and/or any officer, director, employee, agent, representative,
shareholder or attorney of the Company and to be responsive and cooperative in
such event.

        13. Non-Disparagement. Consultant and the Company mutually agree to
refrain from (i) any defamation, libel or slander of the Company and its
respective officers, directors, employees, investors, shareholders,
administrators, affiliates, divisions, subsidiaries, predecessor and successor
corporations, and assigns, or the Consultant, as applicable, or (ii) tortious
interference with the contracts and relationships of the Company and its
respective officers, directors, employees, investors, shareholders,
administrators, affiliates, divisions, subsidiaries, predecessor and successor
corporations, and assigns, or the Consultant, as applicable.

        14. No Admission of Liability. Consultant understands and acknowledges
that this Agreement constitutes a compromise and settlement of disputed claims.
No action taken by the Company, either previously or in connection with this
Agreement shall be deemed or construed to be (a) an admission of the truth or
falsity of any claims heretofore made or (b) an acknowledgment or admission by
the Company of any fault or liability whatsoever to the Consultant or to any
third party.

        15. Costs. The Parties shall each bear their own costs, expert fees,
attorneys' fees and other fees incurred in connection with this Agreement.

        16. Assignment. This Agreement will be binding upon and inure to the
benefit of (a) the heirs, executors and legal representatives of Consultant upon
Consultant's death and (b) any successor of the Company. Any such successor of
the Company will be deemed substituted for the Company under the terms of this
Agreement for all purposes. For this purpose, "successor" means any person,
firm, corporation or other business entity which at any time, whether by
purchase, merger or otherwise, directly or indirectly acquires all or
substantially all of the assets or business of the Company. None of the rights
of Consultant to receive any form of compensation payable

                                                                             -7-
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pursuant to this Agreement may be assigned or transferred except by will or the
laws of descent and distribution. Any other attempted assignment, transfer,
conveyance or other disposition of Consultant's right to compensation or other
benefits will be null and void.

        17. Arbitration. The Parties agree that any and all disputes arising out
of the terms of this Agreement, their interpretation, and any of the matters
herein released, including any potential claims of harassment, discrimination or
wrongful termination shall be subject to binding arbitration, to the extent
permitted by law, in Santa Clara County, California, before the American
Arbitration Association under its National Rules for the Resolution of
Employment Disputes. CONSULTANT AGREES AND HEREBY WAIVES HIS RIGHT TO JURY TRIAL
AS TO MATTERS ARISING OUT OF THE TERMS OF THIS AGREEMENT AND ANY MATTERS HEREIN
RELEASED TO THE EXTENT PERMITTED BY LAW. The Parties agree that the prevailing
party in any arbitration shall be entitled to injunctive relief in any court of
competent jurisdiction to enforce the arbitration award.

        18. Authority. Consultant represents and warrants that he has the
capacity to act on his own behalf and on behalf of all who might claim through
him to bind them to the terms and conditions of this Agreement.

        19. No Representations. Consultant represents that he has had the
opportunity to consult with an attorney, and has carefully read and understands
the scope and effect of the provisions of this Agreement. Neither party has
relied upon any representations or statements made by the other party hereto
which are not specifically set forth in this Agreement.

        20. Breach. Consultant agrees and understands that his right to receive
the consideration referenced in this Agreement shall be conditioned upon his
compliance with the terms of this Agreement. Consultant shall forfeit any rights
to such consideration upon his material breach of the terms of this Agreement.
Likewise, the Company agrees and understands that its rights to enforce the
terms in this Agreement shall be conditioned upon its compliance with such
terms. The Company shall forfeit any rights hereunder upon its material breach
of the terms of this Agreement.

        21. Severability. In the event that any provision hereof becomes or is
declared by a court of competent jurisdiction to be illegal, unenforceable or
void, this Agreement shall continue in full force and effect without said
provision.

        22. Entire Agreement. This Agreement and any agreements incorporated
herein by reference represent the entire agreement and understanding between the
Company and Consultant concerning Consultant's employment separation from the
Company and continued relationship as a consultant to the Company, and satisfies
the severance payments and other obligations concerning Consultant's employment
relationship with the Company and his compensation by the Company under the
terms and conditions of the Employment Agreement.

        23. No Oral Modification. This Agreement may only be amended in writing
signed by Consultant and the President of the Company.

        24. Governing Law. This Agreement shall be governed by the internal
substantive laws, but not the choice of law rules, of the State of California.

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        25. Effective Date. This Agreement is effective eight (8) days after it
has been signed by both Parties (the "Effective Date").

        26. Counterparts. This Agreement may be executed in counterparts, and
each counterpart shall have the same force and effect as an original and shall
constitute an effective, binding agreement on the part of each of the
undersigned.

        27. Voluntary Execution of Agreement. This Agreement is executed
voluntarily and without any duress or undue influence on the part or behalf of
the Parties hereto, with the full intent of releasing all claims. The Parties
acknowledge that:

            (a) They have read this Agreement;

            (b) They have been represented in the preparation, negotiation, and
execution of this Agreement by legal counsel of their own choice;

            (c) They understand the terms and consequences of this Agreement and
of the releases it contains;

            (d) They are fully aware of the legal and binding effect of this
Agreement.

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        IN WITNESS WHEREOF, the Parties have executed this Agreement on the
respective dates set forth below.

                                             NOVELL, INC.

Dated: August 13         , 2001              By /S/ ALAN FRIEDMAN
      -------------------                       -------------------------------
                                                Alan Friedman, Senior VP People

                                                ERIC E. SCHMIDT, an individual

Dated: August 13         , 2001                 /S/ ERIC E. SCHMIDT
      -------------------                       -------------------------------
                                                Eric E. Schmidt<PAGE>
                                                                   EXHIBIT 10.15

                           [NOVELL, INC. LETTERHEAD]

                                  July 11, 2001

Mr. Dennis Raney
3645 Washington
San Francisco, CA 94118

Dear Dennis:

        This letter agreement (the "Agreement") confirms the agreement that we
have reached regarding your separation from employment with Novell, Inc.
("Novell" or the "Company"). The purpose of this Agreement is to establish an
amicable arrangement for ending your employment relationship, to release the
Company and its affiliates from any claims that you may have against any of
them, and to permit you to receive certain separation pay, acceleration of
vesting of stock options, and related benefits. You understand that the benefits
under this Agreement are greater than those offered to you in lieu of those for
which you otherwise would be eligible under the Novell, Inc. Senior Management
Severance Plan ("Plan").

        You acknowledge that you are entering into this Agreement voluntarily.
By entering into this Agreement, you understand that you are giving up your
right to the fullest extent permitted by law to bring legal claims against the
Company including, among others, claims relating to your employment and its
termination. If you were not to enter into this Agreement and were to bring any
claims against the Company, the Company would dispute the merits of those claims
and would contend that it acted lawfully and for good business reasons with
respect to you.

        Neither the Company nor you want your employment relationship to end
with a legal dispute. You understand that by offering to enter into this
Agreement the Company is not admitting in any way that it violated any legal
obligation that it owed to you or to any other person. To the contrary, the
Company's willingness to enter into this Agreement demonstrates that it is
continuing to deal with you fairly and in good faith.

        With those understandings and in exchange for the promises of you and
the Company set forth below, you and the Company agree as follows:

        1. Effective Date

        This Agreement shall be deemed to have been executed as of the date of
your signature below (the "Execution Date"). The Agreement shall become
effective on the eighth (8th) day following the Execution Date (the "Effective
Date") unless you exercise your right to revoke in accordance with Section 14
below.

<PAGE>

Mr. Dennis Raney
July 6, 2001
Page 2

        2. Termination

        Your employment is terminated effective as of July 16, 2001 (the
"Termination Date"). You agree that on the Termination Date all offices and
positions that you hold with Novell and all related or affiliated entities also
terminate. The Company will pay to you all base salary earned by you through the
Termination Date, all accrued but unused vacation pay due to you based on your
employment through the Termination Date and unreimbursed business expenses
incurred prior to the Termination Date subject to the Company's expense
reimbursement policy. The Company's group health plan also will continue to
process claims incurred prior to the Termination Date in accordance with the
terms and conditions thereof. You further acknowledge that you are not entitled
to or owed any additional compensation, including, but not limited to, bonuses
by the Company.

        3. Payments

           In exchange for and subject to the terms and conditions of this
Agreement, including, without limitation, the general release of Claims in
Section 5 and the Acknowledgement of Waiver in Section 6, Novell shall:

           (a) pay you One Million Five Hundred Thousand Dollars ($1,500,000)
(i.e., an amount equal to 300% of your Base Salary (the "Severance Payment").
The Severance Payment shall be paid by check or wire transfer, as you direct, by
the Company to you in equal installments over thirty-six (36) months, such
installments payable in accordance with Novell's regular payroll practices for
senior executives, subject to your continuing compliance with Section 8 below,
with the first such payment being made on the first regular payroll date next
following the Effective Date. For purposes of this Agreement, the term "Base
Salary" shall mean your gross salary on an annualized basis, exclusive of
bonuses, commissions or other incentive pay, as in effect immediately prior to
the Termination Date.

           (b) pay you One Million One Hundred and Twenty-five Thousand Dollars
($1,125,000) (the "Additional Severance"). The Additional Severance shall be
paid by check or wire transfer, as you direct, by the Company to you in two
equal installments with the first such installment payable eighteen (18) months
following the Effective Date and the second such installment payable thirty-six
(36) months following the Effective Date, subject to your continuing compliance
with Section 8 below.

           (c) pay you Three Hundred and Thirty Thousand Dollars ($330,000), by
check or wire transfer, as you direct, on the business day following the
Effective Date

           (d) accelerate to the Termination Date the vesting of that portion or
portions of your stock options and restricted stock grants, which would have
vested within two and one

<PAGE>

Mr. Dennis Raney
July 6, 2001
Page 3

half (2 1/2 ) years after the Termination Date. Subject to the original term of
the option grant or grants, the vested options shall otherwise remain
exercisable, subject to your continuing compliance with Section 8 below, for a
period of up to twelve (12) months following the Termination Date. The Company
hereby waives its repurchases rights with respect to vested restricted stock.

           (e) provide you with reimbursement for personal financial planning
and tax return preparation, not to exceed Eleven Thousand Dollars ($11,000) in
aggregate per year, for each of 2001, 2002 and 2003.

        4. Benefits

        Your eligibility to participate in all Company employee benefit plans
and programs will cease effective on or after the Termination Date pursuant to
applicable benefit plan terms and benefit practices. Any continuing rights to
benefits that you may have are governed by the terms of those benefit plans and
programs and the Consolidated Omnibus Budget Reconciliation Act of 1986, as
amended. The Company shall pay you a monthly amount equal to the premium it
would have paid on your behalf if you remained employed, under your health and
dental plan elections in effect as of the Termination Date, until the earlier of
the date on which you become eligible for health or dental coverage through
another employer or the third (3rd) anniversary of the Effective Date.

        5. Tax Deductions and Reporting

        Novell shall reduce all payments made to you under this Agreement by
those deductions and withholdings that it reasonably determines to be required
for tax purposes and shall make such tax-related reporting that it reasonably
determines to be required with respect to payments under this Agreement.

        6. General Releases of Claims

           (a) You voluntarily release and discharge Novell and its affiliates
and subsidiaries, its and their respective predecessors, successors, and
assigns, and the current and former officers, directors, investors,
shareholders, employees, and agents of the foregoing in such capacities (any and
all of which hereinafter are referred to as the "Released Parties") generally
from all charges, complaints, claims, promises, agreements, causes of action,
damages, and debts of any nature whatsoever, known or unknown (collectively
referred to as "Claims"), which you have, claim to have, ever had, or ever
claimed to have had against the Released Parties. This general release of Claims
includes, without implication of limitation, all Claims related to your
employment with the Company, the compensation provided to you by the Company,
rights or benefits under the Plan, the circumstances of your termination from

<PAGE>

Mr. Dennis Raney
July 6, 2001
Page 4

employment with the Company, or your activities on behalf of the Company,
including, without implication of limitation, any Claims of wrongful discharge,
breach of contract, breach of an implied covenant of good faith and fair
dealing, tortious interference with advantageous relations, any intentional or
negligent misrepresentation, and unlawful discrimination or retaliation under
any federal, state or local common law, statute, order, ordinance or regulation
(including, without implication of limitation, Title VII of the Civil Rights Act
of 1964, the Age Discrimination in Employment Act, The Americans with
Disabilities Act and any similar California state or local law or ordinance).
You also waive any Claim for reinstatement, damages of any nature, severance
pay, attorney's fees, or costs. Notwithstanding anything in this general release
to the contrary, this general release shall not be construed to limit your
rights (i) to enforce this Agreement, (ii) to indemnification in accordance with
the Company's by-laws or (iii) to be covered as an insured under the terms and
conditions of the Company's Directors and Officers insurance policy.

           (b) You shall not hereafter pursue or accept damages or other relief
in any type of claim or action against any of the Released Parties with respect
to anything that has occurred up to your execution of this Agreement; provided,
however, that nothing in this Agreement shall be construed to limit your rights
under this Agreement.

           (c) You hereby represent and warrant that you have not heretofore
assigned any Claim otherwise released pursuant to this Agreement to any third
party. You further represent and warrant that you have not heretofore filed any
Claim with any court or administrative agency.

        7. Acknowledgments of Waiver of Cal. Civ. Code Section 1542

        You agree that you are releasing unknown claims and waiving all rights
under Section 1542 of the Civil Code of the State of California or under any
statute or common law principle of similar effect. Section 1542 provides as
follows:

                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.

        8. Employee Covenants

        In accordance with the terms of this severance offer, the Company's
obligation to provide and your eligibility to receive the payments and benefits
described in Sections 3 and 4 above (collectively, the "Severance Benefits") are
expressly conditioned upon your compliance with the following covenants. You
understand and acknowledge that, in accordance with the terms of

<PAGE>

Mr. Dennis Raney
July 6, 2001
Page 5

this severance offer, in the event you materially breach your obligations to the
Company under the following covenants in this Section 8, the Company's
obligation to provide the Severance Benefits to you shall cease, without
prejudice to any other remedies that may be available to the Company. For
purposes of this Agreement, the terms "materially breach" and "material breach"
shall mean a breach of any covenant in this Section 8, other than an inadvertent
and isolated breach, which breach cannot be and is not completely cured by you
within 10 days after demand is made by the Company to cure such breach.

            (a) Covenant Concerning Confidential Information.

                (i) You acknowledge that, by reason of your duties for Company
        you had access to and were brought into frequent contact with and became
        informed of confidential or proprietary information which the Company
        possesses or to which the Company has access, and which related to the
        Company and/or its business, is not generally known to the public or in
        the trade and is a competitive asset and/or constitutes a "trade
        secret," as that term is defined by the laws of Utah, of the Company
        (collectively, "Confidential Information"). You further acknowledge and
        agree that Confidential Information includes, without limitation, all
        information, whether reduced to writing (or in a form from which
        information can be obtained, translated, or derived into reasonably
        usable form), or maintained in your mind or memory, which derives
        independent economic value, actual or potential, from not being readily
        known to or ascertainable by proper means by others who can obtain
        economic value from the disclosure or use of such information, including
        without limitation, non-public (A) planning data and marketing
        strategies; (B) terms of any new products and investment strategies; (C)
        information relating to personnel matters; (D) financial results and
        information about business condition; (E) terms of any investment,
        management or advisory agreement or other material contract; (F)
        proprietary software and related documents; (G) client and prospecting
        lists and contact persons at such clients and prospects; (H) business
        relationships (prospective or otherwise); and (I) material information
        concerning Customers or their operations, condition (financial or
        otherwise) or plans. You hereby acknowledge and agree that reasonable
        efforts have been put forth by the Company to maintain the
        confidentiality of such Confidential Information.

                (ii) You acknowledge that your employment created a relationship
        of confidence and trust on your part with respect to Confidential
        Information to which you have access during your employment, and that
        Confidential Information, whether compiled or created by you or the
        Company is and will remain the sole property of the Company. You
        faithfully shall keep Confidential Information in strict confidence and
        shall not, either directly or indirectly, at any time, make known,
        divulge, reveal, furnish, make available, or use Confidential
        Information without the prior written consent of an authorized officer
        of the Company. You understand and acknowledge that your

<PAGE>

Mr. Dennis Raney
July 6, 2001
Page 6

        obligations under this Section 8(a) will survive termination of your
        employment, regardless of reason, and will continue indefinitely unless
        and until any such Confidential Information has become, in Company's
        reasonable judgment, stale, or, through no fault of yours, generally
        known to the public or you are required by law (after providing the
        Company with notice within not more than 24 hours after you become
        notified or aware of such requirement) to make disclosure.

                (iii) You shall not, directly or indirectly, use the Company's
        Confidential Information to compete with the business or activities of
        the Company.

            (b) Covenant Concerning Solicitation of Customers.

                (i) For two (2) years from the Termination Date (the "Restricted
        Period"), you shall not, in any capacity, directly or indirectly, alone
        or with others (A) solicit any Customer business that is competitive
        with the Company's current business or planned business (as such current
        business or planned business exists as of the Termination Date), (B)
        divert, entice, or otherwise take away from the Company the business or
        patronage of any Customer, (C) solicit or induce any Customer to
        terminate or reduce its business relationship with the Company; (D)
        refer a Customer to another provider of services or products competitive
        with those of the Company (as such services or products are offered or
        planned as of the Termination Date). The foregoing shall not be violated
        by actions taken by you while working on behalf of Customers.

                (ii) For purposes of this Section 8(b), "Customer" refers to any
        person or entity with whom you had contact in your capacity as an
        employee of Company and who (A) is purchasing goods or services from the
        Company on the Termination Date , (B) has placed an order(s) for goods
        or services with the Company as of the Termination Date, (C) regularly
        purchases goods or services from the Company, even if no orders are
        pending as of the Termination Date, (D) has purchased goods or services
        from the Company within six (6) months preceding the Termination Date,
        or (E) you solicited, directly or indirectly, in whole or in part, on
        behalf of Company within one (1) year preceding the Termination Date.

            (c) Covenant Concerning Solicitation of Employees.

                (i) During the Restricted Period, you shall not in any capacity,
        directly or indirectly: (A) solicit, encourage or take any other action
        which is intended to induce any Person to terminate his or her
        employment or other relationship with the Company; (B) interfere in any
        manner with the contractual or employment relationship between the
        Company and any Person; or (C) hire or retain any Person. The foregoing

<PAGE>

Mr. Dennis Raney
July 6, 2001
Page 7

        shall not prohibit you from providing employment references to third
        parties with respect to any Person who, at the time such reference is
        provided, is no longer, through no fault of yours, employed or engaged
        by the Company.

                (ii) For purposes of this Section 8(c), the term "Person" refers
        to any individual who provided services to the Company, directly or
        indirectly, as an employee, independent contractor or consultant (other
        than entities and individuals working for entities such as law firms,
        accounting firms or management consulting firms) on or after January 1,
        2001.

            (d) Covenant Concerning Unfair Competition. During the Restricted
Period, you shall not work as an employee of or independent contractor for any
of the following entities or their respective affiliates: International Business
Machines; Sun Microsystems; Microsoft; Oracle; Genuity; Critical Path; Network
Appliances, Casheflow; Netegrity ("Restricted Companies"). You acknowledge and
agree that in your capacity as Chief Financial Officer of Novell, you had access
to Confidential Information, including, without limitation, Novell's business
plans and strategies, that use or disclosure of that Confidential Information to
Restricted Companies would be especially harmful to Novell and that it would be
impossible for you to perform any services for or on behalf of the foregoing
entities without using or disclosing (inadvertently or otherwise) Confidential
Information. You agree that this Section 8(d) is intended to protect
Confidential Information and is reasonably and narrowly drafted for that
purpose. You further acknowledge and agree that this Section 8(d) does not
prohibit or restrain you from pursuing an entire business, trade or profession
and that the skills, experience and training that qualify you to be a chief
financial officer are readily transferable to a wide range of business pursuits
beyond the limited restrictions contained herein.

            (e) Cooperation. You shall use commercially reasonable best efforts
to cooperate with Novell in the defense or prosecution of any claims or actions
now in existence or which may be brought in the future against or on behalf of
Novell which relate to events or occurrences that transpired while you were
employed by Novell. Such cooperation in connection with such claims or actions
shall include, but not be limited to, being available to meet with counsel to
prepare for discovery or trial and to act as a witness on behalf of Novell at
mutually convenient times. Similarly, you shall use commercially reasonable best
efforts to cooperate with Novell in connection with any investigation or review
by any federal, state or local agency or regulatory authority as any such
investigation or review relates to events or occurrences that transpired while
you were employed by Novell. Novell shall attempt to make requests for such
cooperation so as not to interfere with your search for or performance of your
subsequent employment. Novell shall provide and reimburse you for any reasonable
out-of-pocket expenses incurred in connection with your performance of
obligations pursuant to this Section 8(e).

<PAGE>

Mr. Dennis Raney
July 6, 2001
Page 8

            (f) Nondisparagement. During the Restricted Period, you shall not
with intent to damage, take any action or make any statement, written or oral,
to any current or former employee of Novell or to any other person which
disparages or criticizes Novell and its affiliates, its and their officers,
directors, employees, or practices or which could disrupt or impair its or their
normal operations. Neither Novell formally (e.g., through press releases, SEC
mandated public filings, etc.), nor any of its current senior management (i.e.,
direct reports to the Chief Executive Officer or the Chief Operating Officer of
Novell), shall, with intent to damage, take any action or make any statement,
written or oral, which disparages or criticizes you during the Restricted
Period.

            (g) Return of Property. All documents, records, materials, software,
equipment, and other physical property, and all copies of any of the foregoing,
whether or not pertaining to Confidential Information, that have come into your
possession or been produced by you in connection with your employment
("Property") have been and remain solely the property of the Company. You agree
that you will return to the Company all Property immediately; provided, that you
may retain, and Novell hereby assigns to you the home computer and laptop
computer currently provided to you so long as you use your best efforts to
cooperate with the Company to ensure that all Confidential Information and
licensed software are removed from said computers.

            (h) Disclosure of Certain Provisions. You shall disclose the
existence and terms of this Section 8 to any prospective employer, partner or
co-venturer prior to entering into an employment, partnership or other business
relationship with such person or entity.

            (i) Breach. You specifically acknowledge and agree that (i) any
material breach by you of the provisions of Section 8 of this Agreement will
result in irreparable injury to the Company, (ii) a remedy at law alone will be
an inadequate remedy for such breach, and (iii) in addition to any other remedy
the Company, it shall be entitled (a) to discontinue further payments to you,
(b) to seek restitution from you, and (c) to enforce the specific performance of
this Agreement by and to obtain both temporary and permanent injunctive relief
without the necessity of proving actual damages.

            (j) Interpretation. The covenants contained herein are intended to
be construed as a series of separate covenants, one for each county, city and
state or other political subdivision within the United States. Except for
geographic coverage, each such separate covenant shall be deemed identical in
terms to the covenants contained in the preceding paragraphs. If, at any
judicial proceeding, the court shall refuse to enforce any of these separate
covenants (or any part thereof) deemed included in such paragraphs (after giving
effect to

<PAGE>

Mr. Dennis Raney
July 6, 2001
Page 9

Section 10 below), then such an unenforceable covenant (or such part) shall be
deemed to be eliminated from this Agreement for the purpose of those proceedings
to the extent necessary to prevent the remaining separate covenants (or portions
thereof) to be enforced.

        9. Confidentiality of Agreement

        You agree that you shall keep the terms of this Agreement strictly
confidential except as provided in Paragraph 8(h) hereof. Notwithstanding the
foregoing, nothing in this Agreement shall prevent you from making disclosure
regarding the terms of this Agreement (a) to your attorneys and accountants, but
only to the extent necessary to receive legal, accounting or tax advice, or (b)
as required by court order or other legal process after first providing Novell
with notice within 24 hours of your receipt of such order or process.

        10. Severability

        You agree that if any portion or provision of this Agreement shall to
any extent be declared illegal or unenforceable by a court of competent
jurisdiction, then the court may amend such portion or provision so as to comply
with the law in a manner consistent with the intention of this Agreement, the
remainder of this Agreement, or the application of such illegal or unenforceable
portion or provision in circumstances other than those as to which it is so
declared illegal or unenforceable, shall not be affected thereby, and each
portion and provision of the Plan shall be valid and enforceable to the fullest
extent permitted by law.

        11. Applicable Law, Jurisdiction and Venue

        This Agreement shall be deemed to be made and entered into in the State
of Utah, and shall in all respects be interpreted, enforced and governed under
the internal laws of Utah, without giving effect to choice of law principles
thereunder. To that extent, you hereby agree to consent to exclusive personal
jurisdiction and venue of the State and Federal courts situated within or for
Utah for purposes of enforcing this Agreement, and waive any objection that you
might have to personal jurisdiction or venue in those courts.

        12. Assignment; Successors and Assigns, etc.

        Neither the Company nor you may make any assignment of this Agreement or
any interest herein, by operation of law or otherwise, without the prior written
consent of the other party; provided that the Company may assign its rights
under this Agreement without your consent in the event that it shall effect a
reorganization, consolidate with or merge into any other corporation,
partnership, organization or other entity ("Purchaser"), or transfer all or
substantially all of its properties or assets to any Purchaser and provided
further, the Company

<PAGE>

Mr. Dennis Raney
July 6, 2001
Page 10

shall ensure that any such Purchaser assumes the remaining payment obligations
under Sections 3 and 4 above. This Agreement shall inure to the benefit of and
be binding upon the Company and you, their respective successors, executors,
administrators, heirs and permitted assigns.

        13. Death

        In the event you die prior to the third (3rd) anniversary of the
Effective Date, the Company shall make the payments remaining under Sections 3
and 4 hereunder to The Raney Family Trust, Dennis and Gwen Raney Trustees.

        14. Integration.

        This Agreement constitutes the entire agreement between the parties with
respect to the subject matter hereof and supersedes all prior agreements between
the parties with respect to any related subject matter.

        15. Notices, Acknowledgments and Other Terms

        You are advised to consult with an attorney before signing this
Agreement.

        This Agreement constitutes the entire agreement between you and the
Company, and all previous agreements or promises between you and the Company,
with the exception of those Option Agreements and Restricted Stock Agreements
and the equity plan(s) to which they relate as described herein and the
Intellectual Property Agreement by and between you and the Company dated May 28,
1998, are hereby superseded, null, and void. You understand and agree that this
is a full and final agreement applying not only to all claims as described above
that you know of, anticipate, or have been told about, but also to all claims
that are unknown, unanticipated, and undisclosed to you.

        You acknowledge that you have been given the opportunity, if you so
desire, to consider this Agreement for twenty-one (21) days before executing it.
If not signed by you and returned to me so that I receive it within twenty-one
(21) days of your receipt of the Agreement, this Agreement will not be valid. In
addition, if you breach any of the conditions of the Agreement within the
twenty-one (21) day period, the offer of this Agreement will be withdrawn and
your execution of the Agreement will not be valid. In the event that you execute
and return this Agreement within less than twenty-one (21) days of the date of
its delivery to you, you acknowledge that such decision was entirely voluntary
and that you had the opportunity to consider this letter agreement for the
entire twenty-one (21) day period. The Company acknowledges that for a period of
seven (7) days from the date of the execution of this Agreement, you shall
retain the right to revoke this Agreement by written notice that I receive
before the end of such period, and that this Agreement shall not become
effective or enforceable

<PAGE>

Mr. Dennis Raney
July 6, 2001
Page 11

until the expiration of such revocation period.

        By signing this Agreement, you acknowledge that you are doing so
voluntarily. You also acknowledge that you are not relying on any
representations by the Company or any other representative of the Company
concerning the meaning of any aspect of this Agreement.

        In the event of any dispute, this Agreement shall be construed as a
whole, shall be interpreted in accordance with its fair meaning, and shall not
be construed strictly for or against either you or the Company. The law of the
State of Utah shall govern any dispute about this Agreement, including any
interpretation or enforcement of this Agreement, without giving effect to the
conflict of laws principles of Utah law. In the event that any provision or
portion of a provision of this Agreement shall be determined to be
unenforceable, the remainder of this Agreement shall be enforced to the fullest
extent possible as if such provision or portion of a provision were not
included. This Agreement may be modified only by a written agreement signed by
you and an authorized representative of the Company.

<PAGE>
Mr. Dennis Raney
July 6, 2001
Page 12

        If you agree to these terms, please sign and date below and return this
Agreement to me within the time limitation set forth above.

                                             Sincerely,

                                             NOVELL, INC.

                                             By: /s/ ALAN J. FRIEDMAN
                                                -------------------------------

Accepted and agreed to:

/s/ DENNIS R. RANEY                          July 17, 2001
--------------------------                   ----------------------------------
Dennis Raney                                 Date

July 14, 2001

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