Document:

Unassociated Document

AMENDING
AGREEMENT DATED AS OF MARCH 31, 2004

(re:
Employment Agreement dated December 31, 1999)

 

BETWEEN

 

 

ZI
CORPORATION, a
corporation incorporated under the laws of the Province of Alberta (the
“Corporation”)

 

OF
THE FIRST PART

 

- and
-

 

MICHAEL
E. LOBSINGER, of
Calgary, Alberta (the “Employee”)

 

OF
THE SECOND PART

 

WHEREAS:

 

	A.  	
      the
      Corporation and the Employee are parties to an Employment Agreement dated
      the 31st
      day of December, 1999 (hereafter referred to as the “Employment
      Agreement”), a copy of which (without schedules) is annexed hereto as
      Schedule 1;

 

	B.  	
      the
      Employment Agreement, pursuant to the provisions of Article 2.1
      thereof, was automatically renewed and extended for a three year period,
      namely January 1, 2003 - December 31, 2005, following the expiry
      of its initial three year term;

 

	C.  	
      during
      the current term, the Corporation encountered various unexpected financial
      and business uncertainties which rendered it difficult or impractical for
      the Corporation to fully perform its contractual obligations to the
      Employee under the Employment Agreement;

 

	D.  	
      for
      the benefit of the Corporation, the Employee extended various
      accommodations (“the accommodations”) to the Corporation to assist it
      during uncertain times, including but not necessarily limited to the
      reduction of his remuneration, the deferral of salary, a change of his
      title and responsibilities and a forbearance of certain contractual rights
      available to him as a result of those
accommodations;

 

	E.  	
      the
      accommodations extended by the Employee to the Corporation have included
      the following:

 

	(i)  	
      effective
      May 1, 2003, the Corporation ceased paying the Employee the salary
      provided for in Article 4.1 of the Employment Agreement and commenced
      paying him the equivalent of one-third of that salary, deferring payment
      of the difference on terms to be agreed
upon;

 

 

 

 

	(ii)  	
      effective
      November 19, 2003, the Corporation appointed another individual to
      serve as the Chief Executive Officer of the
Corporation;

 

	(iii)  	
      effective
      November 20, 2003, the Corporation and the Employee agreed that the
      Employee’s annual base salary would be reduced to $225,000.00 ($CDN) from
      $300,000.00 ($USD);

 

	(iv)  	
      from
      November 20, 2003 until the date of this Agreement, the Corporation
      has continued to pay the Employee a salary amount equivalent to one-third
      of his former salary rather than the agreed revised amount of $225,000.00
      ($CDN);

 

	F.  	
      as
      a consequence of the foregoing, the parties have agreed to formally amend
      the provisions of the Employment Agreement in such manner as is fair,
      reasonable or necessary to reflect the changes and accommodations that
      have transpired since the expiry of the initial term of the Employment
      Agreement;

 

	G.  	
      the
      employee has received legal advice respecting the matters referred to
      herein and fully understands the provisions, consequences and effect of
      the Employment Agreement as amended by this
Agreement.

 

NOW
THEREFORE, IN
CONSIDERATION of the
mutual covenants and premises herein set forth, and for other good and valuable
consideration, including the accommodations, (the receipt and sufficiency of
which consideration are hereby acknowledged) the parties hereby agree as
follows:

 

	1.  	
      Except
      as specifically provided for herein, and as may be necessary to give force
      and effect to the provisions of this Agreement, the terms and conditions
      of Employment Agreement shall continue in full force and
      effect.

 

	2.  	
      The
      Employment Agreement, as amended hereby, shall have a term that expires on
      December 31, 2006. The renewal and extension provisions in Article 2.1 of
      the Employment Agreement shall continue to
apply.

 

	3.  	
      Article 1.1(o) of
      the Employment Agreement is hereby amended to provide as
      follows:

 

“Services”
means occupying the position of Chairman of the Board of Directors and
performing such duties and having such responsibilities as may be determined
from time to time by the Board of Directors consistent with those positions in
relation to the Corporation and any of its affiliated or associated corporations
as determined by the Board of Directors.”

 

	4.  	
      Article 4.1 of
      the Employment Agreement is hereby amended to provide as
      follows:

 

“The
annual base salary payable to the Employee, in consideration for the provision
of the Services by the Employee hereunder, shall be $225,000.00 ($CDN) exclusive
of bonuses, benefits and other compensation. Such annual base salary shall be
payable in arrears in equal monthly instalments at the end of each month during
the term hereof.”

 

 

 

 

	5.  	
      Article 4.4
      of
      the Employment Agreement is hereby amended to provide as
      follows:

 

“In
addition to the consideration set forth herein, the Corporation hereby agrees to
forthwith grant to the Employee, subject to the terms and conditions hereinafter
set forth and those set forth in the Stock Option Plan of the Corporation,
including the execution and delivery of any agreement required under such Plan
(a copy of which Plan is annexed hereto as Schedule 2);

 

(a) options
to purchase from the Corporation 400,000 Common Shares in the Corporation, in
addition to those options previously granted to the Employee, and;

 

(b) 250,000
Restricted Stock Units (“RSU’s”), in addition to those RSU’s previously granted
to the Employee.

 

Particulars
of the said previous grants of options and RSU’s are annexed hereto as
Schedule 3. The Employee shall enter into such agreements as may be
required by or under the Stock Option Plan in the form prescribed thereunder.
Appropriate adjustments shall be made to such number of shares to give effect to
adjustments in the number of shares of the Corporation, the payment of stock
dividends by the Corporation or other relevant changes in the capital of the
Corporation.”

 

	6.  	
      Article 4 of
      the Employment Agreement is further amended to include an Article 4.5
      which shall provide as follows:

 

“The
Corporation acknowledges that it is indebted to the Employee in the amount of
$240,340.05 ($CDN) (the “Deferred Compensation”) representing base salary that
accrued to but was not paid to the Employee during the periods May 1 -
November 19, 2003 and November 20 - March 31, 2004. The Deferred
Compensation represents a debt from the Corporation to the Employee which shall
be repaid (without interest) in full, without set-off, deduction or abatement
whatsoever except lawfully required statutory deductions, on the earlier of:

 

(a) ten days
following the termination of the Employee’s employment with the Corporation for
any reason whatsoever; or 

 

(b) December 31,
2005.

 

Nothing
herein shall preclude the parties from agreeing to different repayment terms
respecting the Deferred Compensation following the execution of this Agreement,
but any such agreement shall be ineffective unless in writing executed by both
parties.” 

 

	7.  	
      Article 10 of
      the Employment Agreement shall be amended to include an Article 10.3 which
      shall provide as follows:

 

 

 

“In the
event of termination of the Employee’s employment with the Corporation for any
reason whatsoever, including but not necessarily limited to those specified
herein, the Employee acknowledges and agrees that, notwithstanding any
provisions of the Stock Option Plan of the Corporation and any Stock Option or
like agreements between the Employee and the Corporation that could be construed
or interpreted to the contrary, the following provisions shall apply in respect
of all options or restricted stock units that have been granted by the
Corporation to the Employee at any time:

 

	 	
      (a)
	
      the
      Employee shall not be entitled to pursue or maintain any claims, actions,
      rights or remedies based on or arising from the premise that he is
      entitled to receive reasonable notice of termination of his employment, or
      that the wording of the Corporation’s Stock Option Plan can or should be
      interpreted to provide that any cessation or termination provisions
      contained therein apply only in the event of a lawful or proper cessation
      or termination;

 

	 	
      (b)
	
      the
      Employee shall not be entitled to claim any damages or other relief of any
      nature or description whatsoever in respect of any options or restricted
      stock units granted but not vested as at the Date of Termination;
      

 

	 	
      (c)
	
      this
      Agreement provides completely and exclusively for any and all claims,
      recourse, remedies, payments or rights available to the Employee in the
      event of the termination of his employment for any reason whatsoever,
      including but not limited to an unlawful termination, and the Employee is
      prohibited, barred and estopped from advancing any other claims in the
      event of a termination of his employment for any reason, lawful or
      unlawful;

 

	 	
      (d)
	
      the
      Employee acknowledges and agrees that he is familiar with and understands
      the provisions of the Corporation’s Stock Option Plan, including but not
      limited to the following current provision:

 

	 	
      
	
      ‘If
      a Participant shall cease to be a director, officer, employee or
      consultant of the Corporation or any of its subsidiaries or affiliates for
      any reason (other than death), the Participant may, but only within
      90 days next succeeding the Participant’s ceasing to be a director,
      officer, employee or consultant and subject to the ten year maximum period
      provided in section 10(a) hereof, exercise the Participant’s Option
      and/or RSU to the extent that the Participant was entitled to exercise
      them at the date of such cessation.’

 

 

 

	8.  	
      Article 12.1(c) of
      the Employment Agreement is hereby amended to provide as
      follows:

 

“Termination
by the Corporation for Just Cause. If the
Employee’s employment is terminated by the Corporation for Just Cause the
Corporation shall pay to the Employee, if not theretofore paid, the fraction of
the Annual Salary earned by or payable to the Employee by the Corporation or its
subsidiaries during the then current fiscal year of the Corporation for the
period to and including the Date of Termination, and neither the Corporation nor
its subsidiaries shall have any further obligations to the Employee under this
Article 12.”

 

	9.  	
      Article 12.1 of
      the Employment Agreement shall be amended to include an Article 12.1 (e)
      which shall provide as follows:

 

“Termination
by the Employee Arising from Control Change Other than for Qualifying
Reason. Upon a
Control Change, the Employee may, within sixty (60) days following the Control
Change, at his complete and unfettered discretion, acting reasonably or
unreasonably, terminate this Agreement by notifying the Corporation in writing
that he has elected to terminate this Agreement. Within ten (10) days of the
provision of such notice to the Corporation, the Corporation shall pay to the
Employee an amount equal to three (3) times the Annual Salary at the rate in
effect at the Date of Termination. The payment provided for in this
Article 12.1(e) is the only severance payment the Employee will receive in
the event of the termination of this Agreement for reasons contemplated in this
Article 12.1(e).”

 

	10.  	
      Article 19.6 of
      the Employment Agreement is hereby amended to provide as
      follows:

 

“All
references herein to currency shall be to United States dollars, except as
otherwise specifically provided herein.”

 

	11.  	
      Article
      19 of
      the Employment Agreement shall be amended to include an Article 19.7 which
      shall provide as follows:

 

“The
Corporation shall be obliged to pay interest to the Employee at a rate of 10%
per annum on any overdue amounts that it becomes obliged to pay the Employee
hereunder arising from the termination of the Employee’s employment for any
reason whatsoever.”

 

 

 

IN
WITNESS WHEREOF the
Corporation has executed this Agreement by its proper officers acting in that
behalf and the Employee has hereunto executed this Agreement, all as of March
31, 2004.

 

 

	 	 	 
	Witness 	 	Michael E.
    Lobsinger 
	 	 	 
	                                                                                                        
    	 	 
	 	 	 
	Name of Witness (Printed) 	 	 
	 	 	 
	 	
      Per:
	 
	 	 	 
	 	 	 
	 	
      Per:
	 
	 	 	 
	 	 	Zi
    CorporationUnassociated Document

THIS
AGREEMENT made as of the _____ day of _____________, 2003 and effective as of
the _______ day of ______________, 2003.

 

BETWEEN:

Zi
CORPORATION, a body
corporate, incorporated under the laws of the Province of Alberta (hereinafter
called the “Corporation”)

 

Michael
Donnell, an
individual residing in the town of Parker, in the State of Colorado (hereinafter
called “Employee”);

 

 

EMPLOYMENT
AGREEMENT

 

WHEREAS:

	A.  	
      the
      Corporation is desirous of engaging the management services and expertise
      of the Employee upon the terms, conditions and for the considerations as
      hereinafter set forth; and

	 	 

	B.  	
      the
      parties desire to enter into this Agreement to set forth their respective
      rights and obligations. 

 

NOW
THEREFORE THIS AGREEMENT WITNESSETH that in
consideration of the premises, the mutual covenants and agreements herein
contained and other good and valuable consideration, the parties hereto mutually
covenant and agree as set forth herein.

 

ARTICLE
1.

CONTRACT
FOR SERVICES

1.01  Subject
to the earlier termination of this Agreement as hereinafter provided and subject
to the condition precedent set forth in paragraph 2.02 hereof, the Corporation
hereby agrees to the services of the Employee on a full-time basis to provide
services to the Corporation and its affiliates in accordance with the terms and
provisions hereof.

1.02  Except as
hereinafter provided, the Employee shall be responsible for and shall have such
authority as is ordinarily consistent with the position of President and Chief
Operating Officer of the Corporation, with full power and authority to supervise
and manage the business and affairs of the Corporation and such other matters as
the directors may authorize from time to time except such matters and duties as
by law must be transacted or performed by the board of directors and/or the
shareholders of the Corporation. All such authority of the Employee shall be
subject to the power, direction and control of the board of directors of the
Corporation.

 

 

 

1.03            
Without
limiting the generality of section 1.02 hereof, the Employee’s services
hereunder shall be provided on the basis of the following terms and
conditions:

	 	
      (a)
	
      the
      Employee’s title for the first three months shall be President and Chief
      Operating Officer of the Corporation reporting to the Chief Executive
      Officer of the Corporation or such other person as may from time to time
      be designated by the Chief Executive Officer of the Corporation; Pursuant
      to the completion of a three month probationary period, the Employee’s
      title shall be President and Chief Executive Officer, reporting to the
      Chairman of the board and board of directors of the
      Corporation;

	 	
      (b)
	
      the
      Employee shall faithfully, honestly and diligently serve the Corporation
      and cooperate with the Corporation and utilize maximum professional skill
      and care to ensure that all services rendered hereunder are to the
      satisfaction of the Corporation, acting reasonably, and shall provide any
      other services not specifically mentioned herein, but which by reason of
      his capability he knows or ought to know to be necessary to ensure that
      the best interests of the Corporation are
maintained;

	 	
      (c)
	
      the
      Employee shall assume, obey, implement and execute such duties, directions
      responsibilities, procedures, policies and lawful orders as may be
      determined or given by the board of directors or the Chairman of the
      Corporation from time to time or such other person as may from time to
      time be designated by the Chairman of the
Corporation;

	 	
      (d)
	
      the
      Employee shall perform such duties and may exercise such powers as may
      from time to time be assigned to or vested in him by the by-laws of the
      Corporation; and

	 	
      (e)
	
      the
      Employee will, when it is deemed by the Corporation to be beneficial, join
      in or participate with organizations, clubs, associations or groups that
      may provide good business contacts and learning facilities for the benefit
      of the Corporation provided, however, that the Corporation shall reimburse
      the Employee for all reasonable expenses incurred in connection
      therewith.

1.04  Subject
to the terms of the Confidentiality and Non-Competition Agreement appended
hereto as Schedule A the Employee agrees to devote his full time and attention
and use his best efforts to further the business and interests of the
Corporation and Affiliates during the period of this Agreement to the exclusion
of all other employment, business opportunities, consulting, investment or
contracting.

 

1.05  It is
acknowledged and agreed between the parties hereto that the services to be
provided by the Employee hereunder are of such a nature that regular business
hours may be impossible and that the Employee be required to perform services in
excess of eight hours per day or five days per week. It is also anticipated that
there will be certain evenings, Sundays and holidays during which the Employee
may be required to provide services and that the services to be provided by the
Employee are, inter
alia, of a
supervisory nature. The Employee therefore agrees that the consideration herein
set forth shall be in full and complete satisfaction for his work and services
to be provided hereunder, no matter when and how performed and the Employee
releases the Corporation from any additional pay or compensation, whatsoever
which he might have by reason of any existing or future legislation or
otherwise.

 

 

2

 

1.06  The
services to be carried out and performed by the Employee shall be initially
carried out and performed in the town of Parker, in the State of Colorado or
such other places as may be mutually agreed between the Employee and the
Corporation, provided that the Employee is in the Calgary office a minimum of
twice per month.

 

1.07  The
Corporation acknowledges that it has reviewed the qualifications and experience
of the Employee herein and formed the opinion that the Employee is capable of
carrying out the duties as set forth herein.

ARTICLE
2.

TERM
OF CONTRACT

2.01  Subject
to section 2.02 hereof and to termination pursuant Article 9 herein, the term of
this Agreement shall commence effective as of July 23, 2003 and shall continue
to and including July 23, 2006.

 

2.02  Notwithstanding
anything else provided in this Agreement, this Agreement shall be conditional
upon the completion by the Employee of a three month probationary period,
satisfactory to the Corporation, acting reasonably, such probation period to
terminate effective October 23, 2003. The Corporation agrees to and shall advise
the Employee on or before October 23, 2003 as to whether such probationary
period has been satisfactorily completed.

ARTICLE
3.

COMPENSATION

3.01  In
consideration of the services to be provided by the Employee to the Corporation
pursuant to Article 1 hereof, but subject to regulatory approval, the
Corporation shall pay to the Employee an amount equal to TWO HUNDRED AND
TWENTY-FIVE THOUSAND (US$225,000.00) dollars per annum (the “Annual Cash
Remuneration”), payable in bi-monthly instalments on the 15th and last
working day of each calendar month together with such increments as the board of
directors of the Corporation, in their sole discretion, may from time to time
determine. Pursuant to satisfactory completion of the three month probationary
period, the Corporation shall increase the pay to the Employee to an amount
equal to THREE HUNDRED THOUSAND (US$300,000.00) dollars per annum, payable in
bi-monthly instalments on the 15th and last
working days of each calendar month.

 

 

3

3.02  The
Employee shall, subject to the Corporation obtaining necessary regulatory
approval, be granted five (5) year term stock options of the Corporation as
follows:

	a)  	
      An
      option to purchase two hundred and fifty thousand (250,000) shares in the
      Corporation to be granted upon acceptance of this Contract of Employment
      of which one third shall vest after three months of employment, one third
      shall vest after six months of employment and one third shall vest after
      twelve months of employment;

	b)  	
      Upon
      acceptance of the role of President and Chief Executive Officer, an option
      to purchase a further two hundred and fifty thousand (250,000) shares in
      the Corporation to be granted of which one third shall vest twelve months
      after the date of grant, one third shall vest twenty-four months after the
      date of grant and one third thirty months after the date of
      grant;

	c)  	
      Also
      upon acceptance of the role of President and Chief Executive Officer, an
      option to purchase two hundred and forty thousand (240,000) shares in the
      Corporation will be granted as performance options that will be vested
      upon reaching the performance goals as set by the board of
      directors.

3.03  The
Employee shall be reimbursed for all reasonable expenses incurred by him in or
about the execution of his services hereunder, including living expenses while
absent from his city of residence, travel and meeting/entertainment expenses.
All such expenses shall be verified by statements, receipts or other reasonable
evidence satisfactory to the Corporation.

3.04  Subject
to section 2.02 hereof, the Employee shall be entitled to participate in all
medical, dental and other health care, life insurance, group accident, long term
disability benefits up to a maximum amount of US dollars one thousand two
hundred and fifty (US$1,250) per month payable by the Corporation, as well as
savings, profit sharing, share option, share purchase and any other benefit
plans of whatsoever nature which the Corporation may provide from time to
time.

3.05  The
Employee may be granted a bonus of up to one hundred percent (100%) of salary,
as shall be determined in the sole discretion of the board of directors, which
can be earned based upon performance goals set by the board of directors,
payable in cash, Restricted Share Units or options mutually agreed
to.

3.06  The
Corporation shall be entitled to withhold and remit from such amounts payable
hereunder as is required by law from time to time.

ARTICLE
4.

REVIEW
OF COMPENSATION

4.01  The
remuneration payable pursuant to section 3.01 hereof may be reviewed annually by
the board of directors of the Corporation on or before the anniversary date
hereof, at which time the board of directors shall consider such matters as it
may consider relevant and shall determine, in its absolute discretion, whether
to increase the annual remuneration payable by the Corporation to the Employee
hereunder, provided always however, that the remuneration payable to the
Employee pursuant to Article 3 hereof shall not, as a result of such review, be
reduced.

 

 

4

ARTICLE
5.

INCAPACITY

5.01  The
Employee shall be entitled to reasonable time from his services, without loss of
compensation, due to sickness or illness or other incapacity.

5.02  In the
event the Employee is insured either personally or through the Corporation or
through a group plan provided by the Corporation for loss of income as a result
of disability and the Employee receives compensation or disability income
pursuant thereto, then the amount of remuneration which the Employee is
otherwise entitled to receive hereunder during the period of illness or
incapacity shall be reduced by the amount of compensation or disability income
paid by such insurer to the Employee and the Employee covenants and agrees that
he shall immediately advise the Corporation from time to time of the receipt of
any such disability income paid by such insurer to the Employee.

ARTICLE
6.

CONFIDENTIALITY
AND NON-COMPETITION

6.01  The
Employee covenants and agrees to enter into a Confidentiality and
Non-Competition Agreement substantially in the form appended hereto as Schedule
A.

ARTICLE
7.

VACATION

7.01  During
the term hereof, the Employee shall be entitled to four (4) weeks paid vacation
in each calendar year hereof or such other period as shall be determined by the
board of directors with no more than two weeks of vacation being taken at one
time.

ARTICLE
8. 

NON-ASSIGNABILITY

8.01  This
Agreement and all other rights, benefits, and privileges herein conferred are
strictly applicable to the Employee, and accordingly may not be assigned by the
Employee.

ARTICLE
9.

TERMINATION

9.01  This
Agreement shall be terminated prior to the end of the term specified in section
2.01 hereof upon the occurrence of any one of the following events:

 

5

 

	 	
      (a)
	
      At
      any time during the probationary period;

	 	
      (b)
	
      the
      death of the Employee, at which time the Corporation shall have no further
      obligation to the Employee under this
Agreement;

	 	
      (c)
	
      the
      Employee becoming bankrupt or making an assignment for the benefit of
      creditors in general, at which time the Corporation shall have no further
      obligation to the Employee under this
Agreement;

	 	
      (d)
	
      90
      days written notice by the Employee of his intention to terminate this
      Agreement, at which time the Corporation shall have no further obligation
      to the Employee under this Agreement.

	 	
      (e)
	
      incapacity
      due to illness, disability or injury to the Employee that renders the
      Employee unable to perform his duties for a period of longer than six
      consecutive months and, as of such date of termination, the Corporation
      shall have no further obligation to the Employee under this
      Agreement;

	 	
      (f)
	
      termination
      of this Agreement without notice by the Corporation for cause, and as of
      such date of termination, the Corporation shall have no further obligation
      to the Employee under this Agreement (“cause” shall mean any of the
      following and without limiting its meaning at common law, breach by the
      Employee of any of the covenants or terms of this Agreement and Schedule A
      hereto; the Employee’s failure to perform adequately his employment
      duties; violation by the Employee of any Corporation policy that may be
      issued from time to time, including but not limited to policies concerning
      harassment and other workplace conduct; the criminal conviction of the
      Employee, a breach by the Employee of any provisions of securities
      legislation or regulations of stock exchanges on which the Corporation’s
      shares are listed and which have application to the
      Corporation);

9.02  If as a
result of a merger, takeover, amalgamation, sale of all or substantially all of
the assets, there is a change of control of the Corporation then the Employee
shall be given notice of such event or events and shall within 30 days after
receipt of such notice, advise the Corporation in writing as to one of the
following:

	 	
      (a)
	
      the
      Employee may advise the Corporation in writing to the effect that he shall
      continue to remain in the services of the Corporation and the terms of
      this agreement shall remain in full force and effect;
or

	 	
      (b)
	
      the
      Employee shall advise the Corporation that he desires to terminate this
      agreement, in accordance with the provisions of paragraph 9.01(c)
      hereof.

 

6

ARTICLE
10.

NOTICES

10.01  All
notice required or allowed to be given under this agreement shall be made either
personally or by mailing same by prepaid registered post, addressed as
hereinafter set forth or to such other address as may be designated from time to
time by such party in writing, and any notice mailed as aforesaid shall be
deemed to have been received by the addressees thereof on the fifth business day
following the day of mailing:

 

		Zi CORPORATION	Michael Donnell	 
	 	Suite 2100, 840 - 7th
      Avenue S.W.	5195 Pinyon Jay Road	 
	 	Calgary, Alberta 	Parker, Colorado
	 	T2P 3G2	80134 

Any party
may from time to time change its address for service hereunder by written notice
to the other parties. Any notice may be served by hand delivery or by mailing
same by prepaid, registered post, in a properly addressed envelope, addressed to
the party to whom the notice is to be given at its address for service
hereunder.

ARTICLE
11.

SEVERABILITY

11.01  Each
provision of this Agreement is declared to constitute a separate and distinct
covenant and to be severable from all other such separate and distinct
covenants. Without limiting the foregoing, each provision contained in Schedule
A hereof are declared to constitute a separate and distinct covenant in respect
of each capacity and each activity specified in Schedule A, and to be severable
from all other such separate and distinct covenants. If any of the capacities,
activities, or periods specified in Schedule A, are considered by a court of
competent jurisdiction as being unreasonable, the parties hereto agree that the
said court will have authority to limit such capacities, activities, periods or
areas to such capacities, activities, periods or areas as the court deems proper
in the circumstances.

11.02  If any
covenant or provision herein is determined to be void or unenforceable in whole
or in part, it will not be deemed to affect or impair the enforceability or
validity of any other covenant or provision of this agreement or any part
thereof.

ARTICLE
12.

RELIEF

12.01  The
parties to this Agreement recognize that a breach by the Employee of any of the
covenants herein contained would result in damages to the Corporation and that
the Corporation could not adequately be compensated for such damages by monetary
award. Accordingly, the Employee agrees that in the event of any such breach, in
addition to all other remedies available to the Corporation at law or in equity,
the Corporation will be entitled as a matter of right to apply to a court of
competent equitable jurisdiction for relief by way of restraining order,
injunction decree or otherwise, as may be appropriate to ensure compliance with
the provisions of this agreement.

 

 

7

 

ARTICLE
13.

WAIVER

13.01  The
parties agree that all restrictions in this agreement are necessary and
fundamental to the protection of the Corporation and are reasonable and valid,
and all defences to the strict enforcement thereof by the Corporation are hereby
waived by the Employee.

ARTICLE
14.

GENERAL

14.01  The
parties hereto agree that they have expressed herein their entire understanding
and agreement concerning the subject matter of this Agreement and it is
expressly agreed that no implied covenant, condition, term or reservation or
prior representation or warranty shall be read into this agreement relating to
or concerning the subject matter hereof or any matter or operation provided for
herein.

14.02  The
provisions of this agreement will enure to the benefit of and be binding upon
the heirs, executors, administrators and legal personal representatives of the
Employee and the successors and assigns of the Corporation
respectively.

14.03  Wherever
the singular or masculine or neuter is used in this agreement, the same shall be
construed as meaning the plural or feminine or body politic or corporate and
vice versa where the context of the parties hereto so require.

 

14.04  Time is
of the essence hereof.

14.05  This
Agreement shall be construed and interpreted in accordance with the laws of the
Province of Alberta and each of the parties hereto hereby irrevocably attorns to
the jurisdiction of the Courts of such Province.

14.06  The
Employee acknowledges that he has had the opportunity to have his legal counsel
review and participate in settling the terms of this Agreement.

ARTICLE
15.

SPECIAL

15.01  The
Employee shall be entitled to participate in the Corporation’s benefits plan
immediately
upon three month waiting period.

 

8

 

IN
WITNESS WHEREOF the parties hereto have executed this Agreement effective
as of the date and year first above written.

 

	 	 	 	 
	 	 	Zi
      CORPORATION
	 
 	 	 
 	 
 
	 	 	per:  	
	 	 	
      

      Michael E. Lobsinger
	 	 	Chairman 
	 	 	 
	SIGNED, SEALED AND
      DELIVERED in  	 	 
	the presence of: 	 	 
	 	 	 
	 	 	 
	 	 	 
	Witness to the signature of the
      Employee 	 	 MICHAEL
    DONNELL

 

 

AFFIDAVIT
OF EXECUTION

UNITED
STATES   ) I,
_________________ of the City of 

STATE
OF COLORADO  ) _______________,
in the Province of  

MAKE OATH
AND SAY:

 

1.  I WAS
PERSONALLY present and did see MICHAEL DONNELL, is the Employee named in the
within instrument, who is personally known to me to be the person named therein,
duly sign and execute the same for the purposes named therein.

2.  THAT THE
SAME was executed at the City of _______________, in the State/Province of
 , and
that I am the subscribing witness thereto.

3.  THAT I
KNOW the said Employee, and he/she is, in my belief, of the full age of eighteen
years.

 

	
      SWORN
      BEFORE ME at _______________________,
	
      )
	 	 	 
	
      in
      the Province of _______________, this 
	
      )
	 	 	 
	
      this
      _____ day of ______________, 2003.
	
      )
	 	 	 
	 	
      )
	 	 	 
	 	
      )
	 	 	 
	 	
      )
	 	 	 
	
      _______________________________________
	 	 	
      _______________________________________
	 
	
      A
      Commissioner for Oaths / Notary Public in and 
	 	 	 	 
	
      For
      the Province of ____________________
	 	 	
      Print
      Name of Witness Below:
	 

[Note: If
outside of Alberta, Notary Public 

required
and Notary stamp required]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}]]