Document:

First Amendment to the Employment Agreement

 Exhibit 10.1 
 FIRST AMENDMENT TO THE EMPLOYMENT AGREEMENT BETWEEN 
 YAK COMMUNICATIONS (CANADA) INC. AND VALERIE
FERRARO 
 THIS AMENDMENT (the “Amendment”) to the employment agreement between Yak Communications (Canada) Inc. (the
“Corporation”) and Valerie Ferraro (the “Executive”), is entered into and effective as of August 4, 2006. 
 WITNESSETH: 
 WHEREAS, the Corporation and the Executive entered into an Employment Agreement dated December 21, 2005 for the
employment of the Executive as President of the Corporation (the “Agreement”); and 
 WHEREAS, the Corporation and the Executive
desire to amend the Agreement (this “Amendment”) to offer the Executive incentives for assisting in the sale of the Corporation and post-sale transition period; 
 NOW, THEREFORE, in consideration of the premises recited herein and for other good and valuable consideration, the receipt and the adequacy of which are hereby acknowledged, the Agreement is amended as follows:

 1. Section 5.1(a) and (b) are amended by substituting references to the “Compensation Committee” for “Chief Executive
Officer” and deleting the existing parenthetical references to the Compensation Committee. For greater clarity, the employee works for and at the direction of the Chief Executive Officer (“CEO”), who sets performance objectives for
the Executive, including Key Performance Indicators. The Compensation Committee, taking into account the recommendations of the CEO, will agree upon any and all compensation for the Executive. 
 2. Article 5 is amended by adding the following new Section 5.5: 
  

	 	5.5	(a) The Executive shall be entitled to a cash bonus of $250,000 (the “Closing Bonus”), to be paid within seven days, if a Change of Control (as defined in
Section 11.1 of the Agreement) occurs with respect to the Corporation. 

 (b) In addition to the Closing Bonus, the
Executive shall be entitled to a cash bonus of $150,000 (the “Stay Bonus”) upon the earlier of (i) termination of the Executive without Cause during, the six (6) month period following the closing of a Change of Control
transaction (the “Transition Period”) or (ii) the end of the Transition Period, so long as the Executive does not voluntarily terminate her employment, and is not terminated by the Corporation for Cause, prior to the end of the
Transition Period. The consideration due, if any, is to be 50% paid within seven days of the event and the balance no later than six months plus seven days. Should amounts be advanced under this provision and it be determined that a payment is not
due under this provision the Executive agrees to repay the compensation in full or to allow the Company to offset against any other amounts due or both. 
  

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 3. Article 8 is amended by changing the heading to “Confidentiality, Non-Competition, Non-Solicitation and
Intellectual Property” and adding the following new Sections 8.5 and 8.6. 
  

	 	8.5	At all times during the term of this Agreement and for a period of one (1) year following the effective termination of this Agreement (regardless of whether Executive’s
employment was terminated voluntarily or involuntarily), Executive agrees that she will not directly or indirectly, in the United States or Canada, enter into or in any manner take part in any business or endeavor, either as an employee, agent,
independent contractor, owner or otherwise, which offers services which are the same as or substantially similar to those products or services comprising the Business, or which is directly or indirectly competitive with the Corporation or its
affiliates. 

  

	 	8.6	The Corporation and Executive each hereby acknowledge and agree that the time period and geographical area set forth in this Article 8 are each divisible and separable, and, in the
event that the covenants contained therein are judicially held invalid or unenforceable as to such time period and/or geographical area, they will be valid and enforceable in such geographical area(s) and for such time period(s) which the court
determines to be reasonable and enforceable. 

 4. Section 9.4(a) is amended by deleting the phrase “for any reason” and
substituting in place thereof the phrase “by the Corporation without Cause”. 
 5. Article 9 is revised by adding the following new Sections 9.5
and 9.6: 
  

	 	9.5	The Corporation may terminate Executive’s employment hereunder for cause (as such term is understood under applicable law) by giving you written notice of its intention to
terminate this Agreement on the date specified in such notice. If the Corporation exercises its rights under this Section to terminate Executive’s employment hereunder, Executive shall not be entitled to receive any further remuneration or
payments of any kind or nature hereunder from and after the effective date of termination of Executive’s employment other than those obligations which have accrued pursuant to this Agreement. 

 Constructive dismissal shall constitute termination without cause under this Agreement. In addition to any meaning at law, constructive dismissal shall
include the following: 
  

	 	(i)	the making of an assignment by the Corporation for the benefit of its creditors generally or the filing of a petition of the making of a proposal under the Bankruptcy and
Insolvency Act (Canada), or any successor legislation, or the making of a receiving order or the filing of a petition under such Act against the Corporation or the making by the Corporation of an application under the Companies’
Creditors Arrangement Act (Canada), or any successor legislation; 

  

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	 	(ii)	the appointment pursuant to the terms of a debenture or similar instrument of any receive, manager, receiver-manager, liquidator or trustee of the property, assets or undertaking of
the Corporation or any substantial portion thereof; or 

  

	 	(iii)	the passing of a resolution for or the issuance by any court of competent jurisdiction of a judgment or order to wind-up, liquidate or dissolve the Corporation.

  

	 	9.6	Executive may terminate this Agreement by notice in writing specifying the effective date of termination. The Corporation may elect to deem any date prior to the date specified in
the notice as the effective date of termination in which event Executive shall receive payment of all amounts which would have been due during the remainder of the notice period provided by Executive. 

 6. Article 11 is amended by adding the following new Section 11.4: 
  

	 	11.4	As used in this Article 11, the term “Corporation” shall refer to Yak Communications Inc. 

 7. Article 13 is amended by adding the following new Section 13.10: 
 13.10 All references in this
Agreement to “$” or “dollars” are references to Canadian dollars, unless otherwise indicated. 
 8. The Executive and the Company
acknowledge and agree that this Amendment has been made in accordance with Section 13.4 of the Agreement and constitutes an effective and binding amendment to the Agreement, subject to approval by the Board, or the Compensation Committee
thereof. This Amendment is limited to the amendments set forth herein and shall not constitute an amendment, modification, acceptance or waiver of any other provision of the Agreement. Except as expressly amended hereby, the Agreement shall continue
in full force and effect in accordance with the provisions thereof. 
 9. Capitalized terms used in this Amendment shall have the same meanings as in the
Agreement unless otherwise defined herein. 
 10. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original,
but all of which together shall constitute but one and the same instrument. 
 [Remainder of Page Intentionally Blank] 
  

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 IN WITNESS WHEREOF, the undersigned officer has executed this instrument on behalf of the Corporation and
the Executive has set her hand hereto on the date first set forth above. 
  

			
	YAK COMMUNICATIONS (CANADA) INC.
		
	By:	 	 /s/ Charles Zwebner

	Its:	 	Charles Zwebner, CEO
	
	EXECUTIVE
	
	 /s/ Valerie Ferraro

	Valerie Ferraro
	
	 /s/ Gary Clifford

	Independent Director
	Gary Clifford on behalf of the
	 Independent and Compensation
 Committees

  

 4Change in Control Bonus Plan

 Exhibit 10.2 
 YAK COMMUNICATIONS INC. 
 CHANGE
IN CONTROL BONUS PLAN 
 Effective August 1, 2006 

 YAK COMMUNICATIONS INC. 
 CHANGE IN CONTROL BONUS PLAN 
 This document is the Yak Communications Inc. Change in Control Bonus Plan (the “Plan”) effective August 5, 2006. Yak Communications (Canada) Inc. (the
“Company”), an affiliate of Yak Communications Inc., has established the plan. The Administrator has the discretion to interpret the provisions of the Plan from time to time. All such determinations are final and binding. The plan is not
meant in any way to take away any existing rights to compensation that an employee may have pursuant to his/her employment contract or under the laws of the Province of Ontario, rather this Plan is meant to represent additional above and beyond
compensation when the circumstances are achieved that activate this Plan. 
 SECTION 1     In General 
 The Company has established the Plan with the intention of providing benefits to Eligible Employees of the Company and its Affiliates in order to (i) provide
additional compensation to Eligible Employees whose positions are eliminated or adversely affected upon a Change in Control of the Company, and (ii) reward Eligible Employees for remaining in the employ of the Company for at least six months
following a Change in Control. 
 This document constitutes the entire written Plan. Any oral or other written expressions of the Plan or related to the Plan
or its subject matter are completely superseded by this document. Except for a formal written Plan amendment that is properly adopted by the Company, or a written modification authorized under Section 5, any oral or written statements
concerning the Plan shall not modify or add to this Plan document. 
 Benefits are not provided under this Plan if your
employment termination is not connected with a Change in Control. 
 SECTION 2     Definitions 
 Defined terms in the Plan are indicated by initial capitalization of the term. References to a “Section” mean a section of this Plan. Pronouns that refer to one
gender include the other gender. “You” or “your” means you, an individual in the employ of the Company. 
 2.1
“Administrator” means the compensation committee of the board of directors of Yak Communications Inc. The Administrator has absolute discretion to make all decisions under the Plan, including making determinations about eligibility
for and the amounts of Benefits payable under the Plan and interpreting all Plan provisions. All decisions of the Administrator are final, binding and conclusive. If a Change in Control occurs, as described in Section 2.5, the members of the
Administrator committee shall be the individuals who were committee members immediately prior to the Change in Control. 
 2.2
“Affiliate” means the Company, Yak Communications Inc., Contour Telecom Inc., and any other entity that is affiliated with the Company and that has been approved by the Company in a writing that identifies the entity as an
“Affiliate” hereunder. 

 2.4 “Benefit” means the benefits described in Section 3. 
 2.5 “Change in Control” means a merger, acquisition, purchase of assets or a similar transaction in which the Company or Yak
Communications Inc. becomes controlled by person, a group of persons acting together, or an entity, other than the persons and entities that control Yak Communications Inc. prior to such a transaction, or a merger or acquisition transaction in which
Yak Communications Inc. is not the survivor or survives only as a subsidiary. 
 2.6 “Company” means Yak Communications
(Canada) Inc., an affiliate of Yak Communications Inc. that is established under the laws of Ontario, Canada. 
 2.7 “Eligible
Employee” means an employee of the Company or an Affiliate who satisfies the eligibility requirements of Section 4 and is named or employed in a position that is identified in Exhibit A. 
 2.8 “Plan” means the Yak Communications Inc. Change in Control Bonus Plan. 
 2.9 “Successor Employer” means a person or entity that acquires all or any part of the Company through purchase of assets, purchase of
stock, trade of assets or stock, spin-off, merger or acquisition in a transaction that is a Change in Control, or a person or entity that acquires control of the Company in any similar type of transaction. 
 SECTION 3     Plan Benefits 
 3.1
Benefits. Eligible Employees who satisfy the conditions for benefits in this Plan will be entitled to a payment of the amount specified on Exhibit A. The Employees on Exhibit A will be notified by the Company in writing of their participation
in this Plan and must acknowledge the terms and conditions of this Plan in writing. 
 3.2 Schedule of Payments. The Company will pay
Benefits described in Section 3.1; 50% within 10 days of the Change of Control becoming effective and the balance after an Eligible Employee has satisfied the conditions for Benefits described in Section 4. In the event that an employee ceases
to be an employee without satisfying all of the conditions of Section 4 below, then the employee shall repay the Company or otherwise allow the Company to net such amounts from other Compensation due. 
 SECTION 4     Eligibility for Benefits 
 You will
become entitled to Benefits under the Plan if: (i) you are an Eligible Employee, (ii) following the occurrence of a Change in Control, you satisfy any of the conditions described below in this Section and have acknowledged in a writing
prepared by the Administrator the application of the terms and conditions of this Plan, and (iii) immediately after the Change in Control, you no longer hold any employee stock options because you either exercised such options in accordance
with their terms or surrendered them to the issuer and accepted their full cancellation. 
  

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 4.1 You are not offered employment by the Company or a Successor Employer that is substantially
equivalent to the position you held with the Company immediately prior to the Change in Control. 
 (a) “Substantially equivalent,”
as used in this Section 4, means an employment position that is the same or better than the position to which it is being compared. This determination of this as set out under employment law or case law in Ontario. 
 (b) A position is not substantially equivalent unless: 
 (1) The cash compensation offered is the same or higher than you earned immediately prior to the Change in Control; and 
 (2) Deferred compensation, incentive and equity compensation, and health and welfare benefits are, in the aggregate, similar to those provided immediately prior to the Change in Control; and 
 (3) The position does not require the Eligible Employee to relocate or to commute more than 50 kilometers each way to the place of
employment. 
 4.2 Your employment with the Company or, as applicable, a Successor Employer is involuntarily terminated for any reason within
six months following a Change in Control for any reason other than cause. For this purpose, termination for “cause” means that your employment was involuntarily terminated because: (i) you are convicted of a crime of moral turpitude
that adversely affects the reasonable business interests of the Company, (ii) you committed an act of fraud, embezzlement, or material dishonesty against the Company or any of its affiliates, or (iii) you intentionally neglect the
responsibilities of your employment, and such neglect remains uncorrected for more than 10 days following written notice from the Company detailing the acts of neglect. The existence of cause in termination shall be determined by the Committee in
its sole discretion; any findings by a court of law on the actions that gave rise to termination of employment may be considered by the Committee but are not controlling. 
 4.3 You remain employed by the Company, an Affiliate or a Successor Employer for at least six months following a Change in Control. 
 SECTION 5     Amendment and Termination 
 The Administrator may terminate or amend the Plan in its sole discretion at any
time prior to a Change in Control, with the consent of the Board of Directors. However, once a Change in Control occurs, no amendment or termination will be effective with respect to an Eligible Employee unless he or she consents to such amendment
in writing after consultation 

  

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with legal counsel. Moreover, after a Change in Control, the identity of the Administrator that is determined pursuant to Section 2.1 may not be changed
by an amendment without the express written consent of a majority of individuals who are or will become Eligible Employees as a result of the Change in Control. Oral amendments and modifications of this Plan are not effective. The Administrator must
comply with the following procedure before any termination or amendment to the Plan is effective: 
 5.1 The Plan may only be modified or
terminated by a written amendment that is authorized by the Administrator, evidenced by one of the following: (1) a resolution of the Administrator; (2) execution of the amendment by the chairman of the Administrator; or
(3) ratification of the amendment by either a resolution of the Administrator or written confirmation of ratification by the chairman of the Administrator. 
 5.2 Notice of the amendment must be provided to all Eligible Employees at least 30 days prior to the effective date of the amendment. 
 SECTION 6     Additional Information 
 These Benefits are paid out of the general assets of the
Company. This Plan does not give you any rights to any particular assets of the Company. Any attempt to assign rights under the Plan is invalid and void. 
 IN WITNESS WHEREOF, the Company, acting through the undersigned authorized representative, has executed this amended and restated Plan on the 9th day of August, 2006, to be effective as of August 1, 2006. 
  

			
	YAK COMMUNICATIONS (CANADA) INC.
		
	By:	 	/s/ Charles Zwebner 
		
	Its:	 	Charles Zwebner, CEO 
		
		 	 /s/ Gary Clifford

		 	 Independent Director
 On behalf of the
 Independent and Compensation
 Committees

  

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