Document:

ex10-12.htm

    EXHIBIT 10.12

      EMPLOYMENT
AGREEMENT

      

           This
Employment Agreement among Jerald A. Nine (the "Executive") and SmartForce PLC,
a public company limited by shares formed under the laws of the Republic of
Ireland ("SmartForce PLC") and its wholly-owned subsidiary, SmartForce, a
Delaware corporation ("SmartForce"), is entered into as of June 10, 2002. The
effectiveness of this Agreement is subject to the occurrence of the Closing Date
as that term is defined in the Agreement and Plan of Merger by and among
SmartForce PLC, SkillSoft Corporation and Slate Acquisition Corp. (the
"Effective Date"). If such Agreement and Plan of Merger is terminated prior to
the Closing Date, this Agreement shall be null and void. For purposes of this
Agreement, the term "Company" shall be used to refer to both SmartForce PLC and
SmartForce.

      

           WHEREAS,
the Company desires to employ the Executive and the Executive desires to
continue employment with the Company on the terms and conditions set forth
below;

      

           NOW,
THEREFORE, in consideration of the foregoing recital and the respective
covenants and agreements of the parties contained in this document, the Company
and the Executive agree as follows:

      

           1.
Employment and Duties. The Executive shall be employed as Executive Vice
President, Content Solutions and General Manager, Books Division of the Company
effective as of the Effective Date reporting to the Chief Executive Officer of
SmartForce PLC (the "CEO"), and assuming and discharging such responsibilities
as are mutually agreed upon by the Executive and the CEO commensurate with such
office and position. The Executive shall perform faithfully the executive duties
assigned to him to the best of his ability.

      

           2.
Base Salary. In consideration of the Executive's services, the Executive shall
be paid a minimum base salary at the rate of $200,000 per year during the period
of employment (the "Base Salary"), to be paid in installments in accordance with
the Company's standard payroll practices. This Base Salary shall be reviewed for
increases at least annually by the Board on the same basis as the Board shall
review the compensation of other executive officers of the Company.

      

           3.
Bonus. In addition to the Base Salary, the Executive shall be eligible to
receive an annual performance bonus in the amount determined by the Board (the
"Targeted Bonus") based on performance metrics established by the Board. This
Targeted Bonus shall be reviewed for increases at least annually by the Board on
the same basis as the Board shall review the compensation of other executive
officers of the Company.

      

           4.
At-Will Employment. The Company and the Executive acknowledge that the
Executive's employment is and shall continue to be at-will, as defined under
applicable law. If the Executive's employment terminates for any reason, the
Executive shall not be entitled to any payments, benefits, damages, awards or
compensation other than as provided by this Agreement, or as may otherwise be
available in accordance with the Company's established employee plans and
policies or other written agreements with the Executive at the time of
termination.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

          

       5.
Benefits; Expenses. The Executive, together with his spouse and dependent
children, shall be permitted, to the extent eligible, to participate at the
Company's expense in any group medical, dental, life insurance and disability
insurance plans, or similar benefit plans of the Company that are available to
other executive officers in each case pursuant to the terms and conditions of
each such plan or program. The Executive shall also be entitled to four (4)
weeks' annual vacation. Without limiting the generality of the foregoing, the
Company shall reimburse the Executive for all reasonable business and travel
expenses actually incurred or paid by the Executive in the performance of
services on behalf of the Company, in accordance with the Company's expense
reimbursement policy as in effect from time to time.

      

           6.
Voluntary Termination and Termination for Cause. In the event that the Executive
terminates his employment with the Company voluntarily (other than for Good
Reason, as defined below) or the Company terminates the Executive's employment
for Cause, Sections 6(a), 6(b) and 6(c) below shall apply. For purposes of this
Agreement, termination for "Cause" shall mean (i) any act of personal dishonesty
taken by the Executive in connection with his responsibilities as an employee
which is intended to cause a material personal financial benefit for the
Executive and is intended to cause a material financial detriment to the
Company, (ii) the Executive's conviction of or plea of nolo contendere to a
felony, (iii) a willful act by the Executive which constitutes misconduct and is
injurious to the Company, and (iv) continued willful violations by the Executive
of the Executive's obligations to the Company under this Agreement.

      

              (a)
Covenant Not to Solicit. Beginning with the effective date of the Executive's
voluntary termination (other than for Good Reason) or termination for Cause and
until one (1) year thereafter (the "Non-Compete Period"), the Executive agrees
that he will not:

      

                  (i)  solicit,
encourage, or take any other action which is intended to induce any other
employee of the Company to terminate his employment with the Company,
or

      

                  (ii)
interfere in any manner with the contractual or employment relationship between
the Company and any such employee of the Company.

      

           The
foregoing shall not prohibit the Executive or any entity with which the
Executive may be affiliated from hiring a former employee of the Company,
provided that such hiring results from such employee's affirmative response to a
general recruitment effort carried out through a public solicitation or a
general solicitation.

      

              (b)
Covenant Not to Compete. During the Non-Compete Period, the Executive agrees
that he will not, directly or indirectly, own, manage, operate, join, control,
advise or participate in, as a shareholder (other than as a shareholder with
less than one percent (1%) of the outstanding stock of a company), officer,
manager, executive, partner, consultant or technical or business advisor (or any
foreign equivalents of the foregoing) any company that derives more than ten
percent (10%) of its revenues from a Restricted Business, or any company or
entity controlling, controlled by or under common control with any company that
derives more than ten percent (10%) of its revenues from a Restricted Business
(any such company, a "Restricted Company"). 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      For the
purposes of this Agreement, the term "Restricted Business" shall mean the
business of developing or selling computer-based training for information
technology professionals, on-line business degrees, or any other interactive
education business in which the Company is then involved.

      

           The
foregoing will not in any way affect the Executive's right to take any of the
foregoing positions if he is involved only in parts of a company that do not
derive any revenues from the Restricted Business.

      

                  (i)  In
the event that the Executive intends to associate with any Restricted Company
during the Non-Compete Period, the Executive must provide information in writing
to the CEO of the Company relating to the business engaged in or proposed to be
engaged in by such Restricted Company. All such current associations of the
Executive are set out in Exhibit A hereto. In the event that the CEO authorizes
the Executive to engage in such activity in writing, any activity by the
Executive described in the written information furnished to the CEO and so
authorized shall be conclusively deemed not to be a violation of Section 6(a)
and (b) hereof.

      

                  (ii)
The Executive acknowledges that, pursuant to an Agreement and Plan of Merger
among the Company, SkillSoft Corporation ("SkillSoft") and Slate Acquisition
Corp., he is transferring all shares of SkillSoft owned by him and that the
Company will be irreparably injured if the provisions of this Section 6 are not
specifically enforced. If the Executive commits or, in the reasonable belief of
the Company, threatens to commit a breach of any of the provisions of this
Section 6, the Company and each of its subsidiaries and affiliates shall have
the right and remedy, in addition to any other remedy that may be available at
law or in equity, to have the provisions of this Section 6 specifically enforced
by any court having equity jurisdiction together with an accounting for any
benefit or gain by the Executive in connection with any such breach, it being
acknowledged and agreed that any such breach or threatened breach will cause
irreparable injury to the Company and its subsidiaries and that money damages
will not provide an adequate remedy therefor. Such injunction shall be available
without the posting of any bond or other security, and the Executive hereby
consents to the issuance of such injunction.

      

              (c)
The Executive shall not receive any compensation or benefits under this
Agreement on account of his voluntary termination or termination for Cause. The
Executive's rights under the Company's benefit plans upon such a termination
shall be determined under the provisions of those plans.

      

           7.
Termination without Cause and Involuntary Termination. If the Executive's
employment with the Company is involuntarily terminated by the Company other
than for Cause or by the Executive for Good Reason (an "Involuntary Termination
Event"), Sections 7(a) and 7(b) below shall apply. For purposes of this
Agreement, the term "Good Reason" shall mean (i) without the Executive's express
written consent, the assignment to the Executive of any duties, or the removal
from or reduction or limitation of the Executive's duties or responsibilities,
which in either case is a significant change in the Executive's position, title,
organization level, duties, responsibilities, compensation and status with the
Company; 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (ii)
without the Executive's express written consent, a substantial reduction of the
facilities and perquisites (including office space and location) available to
the Executive immediately prior to such reduction; (iii) without the Executive's
express written consent, a reduction by the Company in the base salary of the
Executive as in effect immediately prior to such reduction; (iv) without the
Executive's express written consent, a reduction by the Company in the kind or
level of employee benefits to which the Executive is entitled immediately prior
to such reduction with the result that the Executive's overall benefits package
is significantly reduced; (v) without the Executive's express written consent,
the relocation of the Executive to a facility or a location more than twenty
(20) miles from the Executive's then-present work location; (vi) any purported
termination of the Executive by the Company other than for Cause or by reason of
the Executive's death or Disability; (vii) the failure of the Company to obtain
the assumption of this Agreement by any successor as required by Section 12
below; or (viii) any material breach by the Company of any term of this
Agreement.

      

               (a)
Severance. The Company shall, in addition to paying the Executive all amounts
accrued by the Executive on or prior to the date of the Involuntary Termination
Event, make a lump sum payment to him equal to his then base salary plus the
then maximum performance bonus for a period of one (1) year.

      

               (b)
Stock Options. Notwithstanding that above Sections 6(a) and 6(b) will otherwise
not apply to the Executive as a result of the Involuntary Termination Event, the
Executive may elect to be bound by above Sections 6(a) and 6(b) in exchange for
continued vesting of the stock options granted to him by the Company for the
period during which such Sections 6(a) and (b) apply (i.e., one year following
the Involuntary Termination Event); provided, however, that the Executive has to
notify the Company of said election within thirty (30) days of such termination.
Otherwise, the Executive's stock options will discontinue to vest immediately
upon termination of employment.

      

           8.  Death.
In the event of the Executive's death, except for obligations accrued at such
time, the Company shall have no obligation to pay or provide any compensation or
benefits under this Agreement. The Executive's rights under the Company's
benefit plans in the event of the Executive's death shall be determined under
the provisions of those plans.

      

           9.  Disability.
The Company may terminate the Executive's employment for Disability by giving
the Executive thirty (30) days' advance notice in writing. In the event that the
Executive resumes the performance of substantially all of his duties hereunder
before the termination of his employment under this Section 9 becomes effective,
the notice of termination shall automatically be deemed to have been revoked.
Except for such obligations that have accrued prior to the Executive's
Disability, no compensation or benefits will be paid or provided to the
Executive under this Agreement on account of termination for Disability. The
Executive's rights under the Company's benefit plans shall be determined under
the provisions of those plans. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      For all
purposes under this Agreement, "Disability" shall mean that the Executive, at
the time notice is given, has been unable to substantially perform his duties
under this Agreement for a period of not less than six (6) consecutive months as
the result of his incapacity due to physical or mental illness.

      

           10.
Tax Provisions. In the event that all or any part of the benefits provided for
in the Agreement, when aggregated with any other payments or benefits received
by the Executive, would (i) constitute "parachute payments" within the meaning
of Section 280G of the Internal Revenue Code of 1986, as amended (the "Code"),
and (ii) would be subject to the excise tax imposed by Section 4999 of the Code
(the "Excise Tax"), then the amount of the Executive's benefits to be paid or
delivered hereunder shall be either

      

               (a)
the full amount of such benefits determined without regard to this Section 10,
or

      

               (b)
such lesser amount which would result in no portion of such benefits being
subject to the Excise Tax, whichever of the foregoing amounts, taking into
account the applicable federal, state and local income taxes and the Excise Tax,
results in the receipt by the Executive on an after-tax basis, of the greatest
amount of benefits, notwithstanding that all or some portion of such benefits
may be taxable under Section 4999 of the Code. Unless the Company and the
Executive otherwise agree in writing, any determination required under this
paragraph shall be made in writing by the Company's independent public
accountants (the "Accountants") whose determination shall be conclusive and
binding upon the Executive and the Company for all purposes. For purposes of
making the calculations required by this paragraph, the Accountants may make
reasonable assumptions and approximations concerning applicable taxes and may
rely on reasonable, good faith interpretations concerning the application of
Sections 280G and 4999 of the Code. The Company and the Executive shall furnish
to the Accountants such information and documents as the Accountants may
reasonably request in order to make a determination under this paragraph. The
Company shall bear all costs the Accountants may reasonably incur in connection
with any calculations contemplated by this paragraph.

      

           11.
Proprietary Information Agreement. In connection with commencement of the
Executive's employment with the Company, the Executive will sign the Company's
standard executive proprietary information agreement, provided that its
provisions, if any, concerning non-solicitation and non-competition shall be
deleted in favor of the provisions herein.

      

           12.
Successors. The Company shall require any successor or assignee, in connection
with any sale, transfer or other disposition of all or substantially all of the
assets or business of SmartForce PLC, whether by purchase, merger, consolidation
or otherwise, expressly to assume and agree to perform the Company's obligations
under this Agreement in the same manner and to the same extent that the Company
would be required to perform if no such succession or assignment had taken
place. In such event, the term SmartForce PLC as used in this Agreement, shall
mean SmartForce PLC as defined above and any successor or assignee to the
business and assets which by reason hereof becomes bound by the terms and
provisions of this Agreement.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

          13.
Confidentiality. Except as required by applicable laws, neither party shall
disclose the contents of this Agreement without first obtaining the prior
written consent of the other party, provided, however, that (i) the Executive
may disclose this Agreement to his attorney, financial planner and tax advisor
if such persons agree to keep the terms hereof confidential and (ii) the Company
may disclose this Agreement if its counsel advises that it is required to do so
under applicable law.

      

           14.
Arbitration. Any claim, dispute or controversy arising out of this Agreement,
the interpretation, validity or enforceability of this Agreement or the alleged
breach thereof shall be submitted by the parties to binding arbitration before
the American Arbitration Association in Nashua, New Hampshire; provided,
however, that this arbitration provision shall not preclude either party from
seeking injunctive relief from any court having jurisdiction with respect to any
disputes or claims relating to or arising out of this Agreement or Executive's
conduct as an officer, director or employee of the Company. All costs and
expenses of arbitration, excluding attorneys' fees, shall be paid by the
Company. The arbitrator shall have the power to award attorneys' fees where
provided by statute or rule. The arbitrator shall be neutral, and shall issue
all decisions in writing. Judgment may be entered on the award of the
arbitration in any court having jurisdiction.

      

           15.
Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New Hampshire applicable to agreements made and to
be performed entirely within such state.

      

           16.
Integration. This Agreement, any written agreements or other documents
evidencing matters referred to herein and any written Company existing plans
that are referenced herein represent the entire agreement and understanding
between the parties as to the subject matter hereof and thereof and supersede
all prior or contemporaneous agreements as to the subject matter hereof and
thereof, whether written or oral. No waiver, alteration, or modification, if
any, of the provisions of this Agreement shall be binding unless in writing and
signed by duly authorized representatives of the parties hereto.

      

           17.
Notices. Notices and all other communications contemplated by this Agreement
shall be in writing and shall be deemed to have been duly given when personally
delivered or when mailed by U.S. registered or certified mail, return receipt
requested and postage prepaid. In the case of the Executive, mailed notices
shall be addressed to him at the home address that he most recently communicated
to the Company in writing. In the case of the Company, mailed notices shall be
addressed to its corporate headquarters, and all notices shall be directed to
the attention of its Secretary.

      

           18.
No Mitigation. In the event the Executive's employment with the Company
terminates, the Executive shall not be required to mitigate damages or the
amount of any payment provided under this Agreement by seeking other employment
or otherwise, nor shall the amount of any payment provided under this Agreement
be reduced by any compensation earned by the Executive as a result of employment
by another employer or by retirement benefits after such termination, or
otherwise.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

           19.
Waiver. If either party should waive any breach of any provisions of this
Agreement, he or it shall not thereby be deemed to have waived any preceding or
succeeding breach of the same or any other provision of this
Agreement.

      

           20.
Counterparts. This Agreement may be executed in counterparts, which together
will constitute one instrument.

      

                        [Remainder
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      EXECUTIVE                                      SMARTFORCE
PLC

      

      By: /s/
Jerald A.
Nine                         By:
/s/ Gregory M. Priest

          -------------------------------                -----------------------------

          Jerald
A.
Nine                             Name:
Gregory M. Priest

                                                     Title:
President & CEO

      

      

                                                     SMARTFORCE

      

                                                     By:
/s/ Gregory M. Priest

                                                         -----------------------------

                                                     Name:
Gregory M. Priest

                                                     Title:
President & CEO

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      December
23, 2008

       

      Jerry
Nine

       

      SkillSoft
Corporation

       

      107
Northeastern Boulevard

       

      Nashua,
NH  03062

       

      Dear
Jerry:

      

      To ensure
compliance with Section 409A of the Internal Revenue Code of 1986, as amended,
SkillSoft Public Limited Company, incorporated in the Republic of Ireland (the
“Company”), and you hereby agree to amend the employment agreement dated as of
June 10, 2002 by and between SmartForce PLC (as a predecessor to the Company),
SmartForce (as predecessor to SkillSoft Corporation, its subsidiary), and you
(the “Employment Agreement”) as follows:

      

      
        	
                1.  

              	
                Section
      3 is amended by inserting at the end the
  following:

              

      

       

      “The
Company will pay any bonus due to the Executive between January 1 and June 30 of
the year following the year in which the services were rendered, unless the
bonus program specifically provides for a different payment schedule that
complies with Section 409A.”

      

      
        	
                2.  

              	
                Section
      5 is amended by inserting at the end the
  following:

              

      

       

      “To
receive reimbursement or have expenses paid, the Executive must submit all
required substantiation no later than the 30th day following the later of the
date the Executive incurred the expense or the date such documentation related
to the expense was first available to the Executive.  The Company will
reimburse the Executive for expenses that fit its policy no later than the end
of the month following the month in which it receives such
substantiation.”

       

      
        	
                3.  

              	
                Section
      7(a) is amended by inserting at the end the
  following:

              

      

       

      “Payment
of any accrued amounts shall not be accelerated in a manner that would subject
them to extra taxation under Section 409A(a)(2) of the Code but shall instead be
paid in accordance with their terms.  The lump sum severance shall be
paid as provided in Section 21.”

       

      
        	
                4.  

              	
                Section
      9 is amended by inserting after the third sentence the
      following:

              

      

       

      “Payment
of any accrued amounts shall not be accelerated in a manner that would subject
them to extra taxation under Section 409A(a)(2) of the Code but shall instead be
paid in accordance with their terms.”

       

      
        	
                5.  

              	
                Section
      10 is amended by inserting after the first sentence the
      following:

              

      

       

      “If
necessary to carry out the preceding sentence, amounts payable under this
Agreement will be reduced or eliminated as follows, as determined by
the

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Company,
in the following order:  (i) nonacceleration of any stock options
whose exercise price is at or above the fair market value of the stock as
determined in the discretion of the Board’s Compensation Committee (taking into
account, as appropriate, the proceeds that would be received in connection with
the event covered by Section 4999) (“Underwater Options”), (ii) the payments due
under Section 7(a) above, (iii) nonacceleration of any stock options other
than Underwater Options, and (iv) any vesting or distribution of restricted
stock or restricted stock units.  Within each category described in
clauses (i), (iii), and (iv), reductions or eliminations shall be made in
reverse order beginning with vesting or distributions that are to be paid the
farthest in time from the date of event covered by Section 4999.”

       

      
        	
                6.  

              	
                Section
      21 is added to read as follows:

              

      

       

      “Tax
Considerations.  Any payments due under this Agreement shall be
reduced by any amounts that the Company is required to withhold under applicable
law.  The Executive acknowledges that this Agreement is intended to
comply, to the extent applicable, with the provisions of Section 409A of the
Internal Revenue Code of 1986, as amended (“Section 409A”) and shall, to the
extent practicable, be construed in accordance with such
section.  Terms defined in this Agreement have the meanings given such
terms under Section 409A if and to the extent required to comply with Section
409A.  If and to the extent any portion of any payment, compensation
or other benefit provided to the Executive in connection with the Executive’s
separation from service (as defined in Section 409A) is determined to
constitute “nonqualified deferred compensation” within the meaning of Section
409A and the Executive is a “specified employee” as defined in Section
409A(a)(2)(B)(i), as determined by the Company in accordance with its procedures
and Treasury Regulation 1.409A-1(i)(6)(i), by which determination the Executive
hereby agrees to be bound, such portion of the payment, compensation or other
benefit shall not be paid before the earlier of (i) the day that is six months
plus one day after the date of separation from service or (ii) ten (10) days
after the Executive’s date of death (either, the “New Payment
Date”).  The aggregate of any payments that would otherwise have been
paid to the Executive during the period between the date of separation from
service and the New Payment Date shall be paid to the Executive in a lump sum on
such New Payment Date, and any remaining payments will be paid on their original
schedule.  For purposes of this Agreement, each amount to be paid or
benefit to be provided will be construed as a separate identified payment for
purposes of Section 409A, and any payments that are due within the “short term
deferral period” as defined in Section 409A will not be treated as deferred
compensation unless applicable law requires otherwise.  Neither the
Company nor the Executive has the right to accelerate or defer the delivery of
any such payments or benefits except to the extent Section 409A specifically
permits or requires such acceleration or deferral.  Notwithstanding
the foregoing, to the extent that this Agreement or any payment or benefit
hereunder is determined not to comply with Section 409A, then neither the
Company, its Board, nor any of its designees, agents, or employees will be
liable to the Executive or any other person for any

       

      
        
          
            --

            

          

           

        

        
           

          
            

          

        

        
           

        

      

      actions,
decisions, or determinations made under the Agreement or for any resulting
adverse tax consequences.”

       

      Except as
modified by this letter or by other intervening amendments, all other terms and
conditions of the Agreement shall remain in full force and
effect.  This letter may be executed in counterparts, each of which
shall be deemed to be an original, and all of which shall constitute one and the
same document.

       

      
      

    

    
      
        
          	 	SKILLSOFT PUBLIC LIMITED
      COMPANY	 
	 	 	 	 
	
                   

                	
                  By:
      

                	/s/ Charles
      E. Moran	 
	 	 	Charles
      E. Moran	 
	 	 	President
      and Chief Executive Officer and Director	 
	 	 	 (Principal
      Executive Officer)	 
	 	 	 	 

        

      

    

    
       

      
        
          
            	 	SKILLSOFT CORPORATION (FORMERLY
      SMARTFORCE)	 
	 	 	 	 
	
                     

                  	
                    By:
      

                  	/s/ Charles
      E. Moran	 
	 	 	Charles
      E. Moran	 
	 	 	President
      and Chief Executive Officer and Director	 
	 	 	 (Principal
      Executive Officer)	 
	 	 	 	 

          

        

      

       

    

    
    

    
 

    
      
        
          
            	Acknowledged
      and agreed:	 
	 	 	 
	
                    By:
      

                  	/s/ Jerald
      A. Nine	 
	 	Jerald
      A. Nine	 
	 	 	 
	 Date	December
      23, 2008ex10-14.htm

    
      
        
          EXHIBIT
10.14

          
EMPLOYMENT
AGREEMENT

          

             THIS
AGREEMENT, is entered into as of January 12, 1998, between SkillSoft
Corporation, a Delaware corporation (the "Company"), and Mark Townsend
("Employee").

          

                                           R
E C I T A L S

          

             Company
desires to obtain the services of Employee, on its own behalf and on behalf of
all existing and future Affiliated Companies (defined to mean any corporation or
other business entity or entities that directly or indirectly controls, is
controlled by, or is under common control with the Company), and Employee
desires to secure employment from the Company upon the following terms and
conditions.

          

                                              AGREEMENT

          

          ACCORDINGLY,
THE PARTIES AGREE AS FOLLOWS:

          

                1.
Position, Period of Employment.

          

                   (a)
Period of Employment. The Company hereby employs Employee to render services to
the Company in the position and with the duties and responsibilities described
in Section 1(b) for the period (the "Period of Employment") commencing on the
date of this Agreement and ending upon the date this Agreement is terminated in
accordance with Section 3 below. Except as provided in Section 3 below, the
Company shall pay Employee the compensation to which he is entitled under
Section 2(a) through the end of the Period of Employment, and thereafter
Company's obligations hereunder to pay or otherwise provide compensation and
benefits to Employee shall end.

          

                   (b)
Position. Employee hereby accepts employment with the Company as Vice
President-Product Development. Employee shall devote his best efforts and his
full time and attention to the performance of the services customarily incident
to such office and to such other services as may be reasonably requested by the
Board of Directors of the Company (the "Board"). During the Period of
Employment, Employee will not accept any other employment of any nature,
excluding personal business carried on outside regular business hours that does
not materially interfere with the services required by this Agreement. The
Company shall retain full direction and control of the means and methods by
which Employee performs the above services and, subject to the terms of this
Section 1(b), of the place(s) at which such services are to be rendered. During
the term of this agreement, employee's principal location shall be in New
Hampshire.

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

               

              (c)
Non-Compete/Conflict of Interest. Employee, during the Period of Employment (as
defined below), will not engage, directly or indirectly as an employee,
director, consultant, shareholder, partner or independent contractor or in
any other
capacity, in any other business activity (whether or not pursued for pecuniary
advantage) that is competitive with, or that might place him in a competing
position to that of the Company or any other corporation or entity that directly
or indirectly is controlled by the Company (an "Affiliated Company"); provided,
however, that Employee may make passive personal investments (not exceeding
ownership of more than one (1) percent of the equity interest in any company) in
publicly-held companies that may compete with the Company or any Affiliated
Company.

          

             2.
Compensation, Benefits, Expenses.

          

                (a)
Compensation. In consideration of the services to be rendered hereunder,
including, without limitation, services to any Affiliated Company, Employee
shall be paid an amount equal to $6,042 (six thousand forty-two dollars) twice
per month, payable at the times and pursuant to the procedures regularly
established, and as they may be amended, by the Company during the course of
this Agreement. This rate shall be reviewed annually, in accordance with the
Company's salary review practices, and increased, in the Company's sole
discretion, to reflect increases in the cost of living and such other increases
as are awarded in accordance with the Company's regular salary review
practices.

          

                (b)
Restricted Stock. The Company shall sell Employee and Employee shall purchase
from the Company 600,000 shares of the Company's Common Stock upon the terms and
conditions set forth in that certain Restricted Stock Purchase Agreement in the
form attached hereto as Exhibit A, which the Company shall execute and deliver
to Employee concurrently with the signing by both parties of this
Agreement.

          

                (c)
Bonus. Employee shall be eligible to participate in such bonus plans as the
Company may from time to time adopt for the benefit of similarly situated
employees of the Company. Employee's right to receive any such bonus shall be
subject to the terms of any Company bonus plan for which he may become a
participant and the terms determined by the Board or a Committee thereof
designating him as a participant or granting him an award
thereunder.

          

                (d)
Vacation. Employee shall be entitled to vacation in accordance with the
Company's vacation policies for similarly situated employees, as such policies
may be amended from time to time.

          

                (e)
Benefits. As he becomes eligible therefor, the Company shall provide Employee
with the right to participate in and to receive benefits from all present and
future life, accident, disability, medical, pension, and savings plans and all
similar benefits made available generally to executives similarly situated
employees of the Company. The amount and extent of benefits to which Employee
is

           entitled
shall be governed by the specific benefit plan, as it may be amended from time
to time.

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

             

             (f)
Expenses. The Company shall reimburse Employee for reasonable travel and other
business expenses incurred by Employee in the performance of his duties
hereunder in accordance with the Company's general policies, as they may be
amended from time to time during the course of this Agreement.

          

             3.
Termination of Employment.

          

                (a)
By Death. The Period of Employment shall terminate automatically upon the death
of the Employee. The Company shall pay to the Employee's beneficiaries or
estate, as appropriate, the compensation to which he is entitled pursuant to
Section 2(a) through the end of the month in which death occurs. Thereafter, the
Company's obligations hereunder shall terminate. Nothing in this Section shall
affect any entitlement of the Employee's heirs to the benefits of any life
insurance plan.

          

                (b)
By Disability. If, in the sole opinion of the Company's Board of Directors (the
"Board"), the Employee shall be prevented from properly performing his duties
hereunder by reason of any physical or mental incapacity for a period of more
than one hundred and twenty (120) consecutive days in any twelve-month period,
then, to the extent permitted by law, the Period of Employment shall terminate
on and the compensation to which Employee is entitled pursuant to Section 2(a)
shall be paid up through the last day of the month in which the one hundred and
twentieth day of incapacity occurs, and thereafter the Company's obligations
hereunder shall terminate. Nothing in this Section shall affect Employee's
rights under any disability plan in which he is a participant.

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

               (c)
By Company For Cause. The Company may terminate, without liability, the Period
of Employment for Cause (as defined below) at any time with no advance notice to
Employee. The Company shall pay Employee the compensation to which he is
entitled pursuant to Section 2(a) prorated through the date of termination.
Termination shall be for Cause if: (i) because of any intentional act or failure
to act by Employee which, in the reasonable opinion of the Board, is in bad
faith and to the detriment of the Company or any Affiliated Company; (ii) in the
reasonable opinion of the Board, Employee refuses or fails to act in accordance
with any direction or order of the Board; (iii) in the reasonable opinion of the
Board, Employee shall fail in any material respect and on a continuing basis to
perform his duties pursuant to Section 1 hereof (other than as a result of
disability as provided for in Section 3(b)) and shall not have cured such
failure following thirty (30) days notice from a majority of the members of the
Board; (iv) Employee is convicted of a crime relating to his employment by the
Company or that has a material adverse 

           effect on the
Company or, in the reasonable opinion of the Board, Employee's ability to
perform services hereunder; or (v) because Employee, in the reasonable opinion
of the Board, breaches any material term of this Agreement, provided the breach
continues for a period of five (5) days after Employee receives written notice
of that breach from the Board. Employee hereby agrees that the Company may
terminate his employment with the Company under this Section 3(c) without regard
(1) to any general or specific policies (whether written or oral) of the Company
relating to the employment or termination of its employees, or (2) to any
statements made to Employee, whether made orally or contained in any document
(other than this Agreement), pertaining to Employee's relationship with the
Company.

          

                (d)
By Employee For Good Reason. Employee may terminate, without liability, the
Period of Employment for Good Reason (as defined below) upon twenty (20) days'
advance written notice to the Company. The Company shall pay Employee the
compensation to which he is entitled pursuant to Section 2(a) through the end of
the notice period plus the Severance Benefits (as defined in Section 3(f) below)
and thereafter all obligations of the Company hereunder shall terminate. Good
Reason shall exist if (i) there is an assignment to the Employee of any duties
materially inconsistent with or which constitute a material change in the
Employee's position, duties, responsibilities, or status with the Company, or a
material change in the Employee's reporting responsibilities, title, or offices;
or removal of the Employee from any of such positions, except in connection with
the termination of the Period of Employment for Cause, or due to disability,
early or normal retirement as defined by the Company's pension plan, death, or
termination of the Period of Employment by the Employee other than for Good
Reason (provided that removal and/or failure to re-elect Employee to the Board
in accordance with Section 1(c) shall not be deemed Good Reason for purposes of
this Section 3(d)); (ii) there is a reduction by the Company in the Employee's
annual salary then in effect other than a reduction similar in percentage to a
reduction generally applicable to similarly situated employees of the Company;
or (iii) the Company acts in any way that would adversely affect the Employee's
participation in or materially reduce the Employee's benefit under any benefit
plan of the Company in which the Employee is participating or deprive the
Employee of any material fringe benefit enjoyed by the Employee except those
changes generally affecting similarly situated employees of the
Company.

          

                (e)
At Will. At any time, either the Company or the Employee may terminate, without
liability, the Period of Employment for any reason, with or without cause, on
written notice to the other party. In the event Employee elects to terminate the
Period of Employment pursuant to this Section 3(e), Employee shall give the
Company not less than two (2) months' notice of such termination. If the
Employee terminates his employment pursuant to this Section 3(e), the Company
shall have the option, in its sole discretion, to terminate Employee immediately
without the running of the notice period. If the Employee terminates
his

           employment
pursuant to this Section 3(e), the Company shall pay Employee the compensation
to which he is entitled pursuant to Section 2(a) through the end of the notice
period or through the day upon which any early termination is elected by the
Company pursuant to the foregoing sentence, and thereafter all obligations of
the Company shall terminate. In the event the Company elects to terminate the
Period of Employment pursuant to this Section 3(e), the Company shall give
Employee not less than three months notice of such termination. Employee hereby
agrees that the Company may dismiss him under this Section 3(e) without regard
(i) to any general or specific policies (whether written or oral) of the Company
relating to the employment or termination of its employees, or (ii) to any
statements made to Employee, whether made orally or contained in any document,
pertaining to Employee's relationship with the Company.

          

                (f)
Severance Benefits.

          

                   (1)
Employee shall only be entitled to Severance Benefits hereunder in the event
that the Period of Employment shall be terminated (i) by Employee in accordance
with Section 3(d) and subject to the terms of said Section 3(d) or (ii) by the
Company in accordance with Section 3(e) and subject to the terms of said Section
3(e). Upon full payment of and upon providing of such Severance Benefits,
Employee shall be deemed to have released the Company and each of its officers,
directors and agents from any and all claims, liabilities or causes of action in
favor of the Employee arising in connection with his prior employment by the
Company.

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

                   (2)
For purposes of this Agreement, "Severance Benefits" shall mean a continuation
by the Company for a period of six (6) months of: (i) Employee's salary payable
in accordance with the Company's payroll procedures pursuant to Section 2(a)
following termination; (ii) those benefits to which Employee is entitled
pursuant to Section 2(f) hereof, including but not limited to medical benefits
substantially similar to those provided Employee prior to termination of
employment; and (iii) the vesting and right to exercise any stock options held
by Employee at the time of termination. As a condition precedent to the
continued vesting and exercisability of Employee's stock options during said six
(6) month period, Employee agrees to perform, on request from the Company, up to
ten (10) hours of consulting service per month during said six (6) month period.
Subject to Employee fulfilling his consulting obligations to the Company as
provided in this Section 3(f)(2) during the Severance Period (as defined below),
Employee shall be deemed to continue as employee of the Company during the
Severance Period for the purpose of such stock options, and such stock options
shall thereafter terminate in accordance with their terms following expiration
of the Severance Period. No additional compensation shall be payable by the
Company for such consulting services beyond the Severance Benefits. The period
in which Employee shall be entitled to Severance Benefits shall hereinafter be
referred to as the "Severance 

           Period."
Notwithstanding any other provision herein, if Employee accepts employment at
any entity or engages in any business activity that is or may be competitive
with the Company (or any affiliate thereof) prior to the end of such six (6)
month period, Employee shall then immediately inform the Company of such
employment and immediately cease to be eligible for any continuing Severance
Benefits, including any continued salary payments, medical, benefits and option
or share vesting.

          

                (g)
Termination Obligations.

          

                   (1)
Employee hereby acknowledges and agrees that all personal property, including,
without limitation, all books, manuals, records, reports, notes, contracts,
lists, blueprints, and other documents, or materials, or copies thereof, and
equipment furnished to or prepared by Employee in the course of or incident to
his employment, belong to the Company and shall be promptly returned to the
Company upon termination of the Period of Employment. Following termination, the
Employee will not retain any written or other tangible material containing any
proprietary information of the Company.

          

                   (2)
Upon termination of the Period of Employment, the Employee shall be deemed to
have resigned from all offices and directorships then held with the Company or
any Affiliated Company.

          

             4.
Proprietary Information Agreement. As a condition to his employment with the
Company, Employee shall execute and deliver a copy of the Company's standard
form Employee Proprietary Information and Inventions Agreement. Any breach by
Employee of such agreement shall be deemed a breach of this Agreement for
purposes of Section 3(c) hereof. Employee's obligations under such Employee
Proprietary Information and Inventions Agreement shall survive any termination
of the Period of Employment.

          

             5.
Assignment; Successors and Assigns. Employee agrees that he will not assign,
sell, transfer, delegate or otherwise dispose of, whether voluntarily or
involuntarily, or by operation of law, any rights or obligations under this
Agreement, nor shall Employee's rights be subject to encumbrance or the claims
of creditors. Any purported assignment, transfer, or delegation shall be null
and void. Nothing in this Agreement shall prevent the consolidation of the
Company with, or its merger into, any other corporation, or the sale by the
Company of all or substantially all of its properties or assets, or the
assignment by the Company of this Agreement and the performance of its
obligations hereunder to any successor in interest or any Affiliated Company.
Subject to the foregoing, this Agreement shall be binding upon and shall inure
to the benefit of the parties and their respective heirs, legal representatives,
successors, and permitted assigns, and shall not benefit any person or entity
other than those enumerated above.

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

           

          6.
Notices. All notices or other communications required or permitted hereunder
shall be made in writing and shall be deemed to have been duly given if
delivered by hand or mailed, postage prepaid, by certified or registered mail,
return receipt requested, and addressed to the Company at: 9 Chickadee Court,
Bedford, New Hampshire 03110 or to the Employee at: 8 Major Hale Drive,
Framingham, MA 01701.

          

          Notice of
change of address shall be effective only when done in accordance with this
Section.

          

             7.
Entire Agreement. The terms of this Agreement are intended by the parties to be
the final expression of their agreement with respect to the employment of
Employee by the Company and may not be contradicted by evidence of any prior or
contemporaneous agreement. The parties further intend that this Agreement shall
constitute the complete and exclusive statement of its terms and that no
extrinsic evidence whatsoever may be introduced in any judicial, administrative,
or other legal proceeding involving this Agreement.

          

             8.
Amendments; Waivers. This Agreement may not be modified, amended, or terminated
except by an instrument in writing, signed by the Employee and by a duly
authorized representative of the Company other than Employee. By an instrument
in writing similarly executed, either party may waive compliance by the other
party with any provision of this Agreement that such other party was or is
obligated to comply with or perform, provided, however, that such waiver shall
not operate as a waiver of, or estoppel with respect to, any other or subsequent
failure. No failure to exercise and no delay in exercising any right, remedy, or
power hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any right, remedy, or power hereunder preclude any other or
further exercise thereof or the exercise of any other right, remedy, or power
provided herein or by law or in equity.

          

             9.
Severability; Enforcement. If any provision of this Agreement, or the
application thereof to any person, place, or circumstance, shall be held by a
court of competent jurisdiction to be invalid, unenforceable, or void, the
remainder of this Agreement and such provisions as applied to other persons,
places, and circumstances shall remain in full force and effect. It is the
intention of the parties that the covenants contained in Section 1(d) shall be
enforced to the greatest extent (but to no greater extent) in times area, and
degree of participation as is permitted by the law of that jurisdiction whose
law is found to be applicable to any acts allegedly in breach of these
covenants. It being the purpose of this Agreement to govern competition by
Employee anywhere throughout the world, these covenants shall be governed by and
construed according to that law (from among those jurisdictions 

           arguably
applicable to this Agreement and those in which a breach of this Agreement is
alleged to have occurred or to be threatened) which best gives them
effect.

          

             10.
Governing Law. Subject to Section 9 hereof, the validity, interpretation,
enforceability, and performance of this Agreement shall be governed by and
construed in accordance with the law of the State of New Hampshire.

          

             11.
Employee Acknowledgment. Employee acknowledges (i) that he has consulted with or
has had the opportunity to consult with independent counsel of his own choice
concerning this Agreement and has been advised to do so by the Company, and (ii)
that he has read and understands the Agreement, is fully aware of its legal
effect, and has entered into it freely based on his own judgment.

          

             12.
Exclusive. Both parties agree that this Agreement shall provide the exclusive
remedies for any breach by the Company of its terms.

          

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

             The
parties have duly executed this Agreement as of the date first written
above.

          

          COMPANY:                                                EMPLOYEE:

          

          SkillSoft
Corporation

          

          By:     /s/
Charles E.
Moran                            /s/  Mark
Townsend

                 ------------------------------------            -------------------------

          Title:  President
& Chief Executive Officer

                 ------------------------------------

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

          
             

            December
29, 2008

             

            Mark
Townsend

             

            SkillSoft
Corporation

             

            107
Northeastern Boulevard

             

            Nashua,
NH  03062

             

            Dear
Mark:

            

            To ensure
compliance with Section 409A of the Internal Revenue Code of 1986, as amended,
SkillSoft Public Limited Company, incorporated in the Republic of Ireland (the
“Company”), and you hereby agree to amend the employment agreement dated as of
January 12, 1998 by and between SkillSoft Corporation and you (the “Employment
Agreement”) as follows:

            

            
              	
                      1.  

                    	
                      Section
      2(c) is amended by inserting at the end the
  following:

                    

            

             

            “The
Company will pay any bonus due to the Employee between January 1 and June 30 of
the year following the year in which the services were rendered, unless the
bonus program specifically provides for a different payment schedule that
complies with Section 409A.”

            

            
              	
                      2.  

                    	
                      Section
      2(f) is amended by inserting at the end the
  following:

                    

            

             

            “To
receive reimbursement or have expenses paid, the Employee must submit all
required substantiation no later than the 30th day following the later of the
date the Employee incurred the expense or the date such documentation related to
the expense was first available to the Employee.  The Company will
reimburse the Employee for expenses that fit its policy no later than the end of
the month following the month in which it receives such
substantiation.”

             

            
              	
                      3.  

                    	
                      Section
      3(f)(2) is amended by inserting at the end the
  following:

                    

            

             

            “Payment
of any Severance Benefits shall be made as provided in Section
13.  Employee’s continuation in any benefit plan is subject to that
plan’s terms.”

             

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

             

            
              	
                      4.  

                    	
                      Section
      13 is added to read as follows:

                    

            

             

            “Tax
Considerations.  Any payments due under this Agreement shall be
reduced by any amounts that the Company is required to withhold under applicable
law.  The Employee acknowledges that this Agreement is intended to
comply, to the extent applicable, with the provisions of Section 409A of the
Internal Revenue Code of 1986, as amended (“Section 409A”) and shall, to the
extent practicable, be construed in accordance with such
section.  Terms defined in this Agreement have the meanings given such
terms under Section 409A if and to the extent required to comply with Section
409A.  If and to the extent any portion of any payment, compensation
or other benefit provided to the Employee in connection with the Employee’s
separation from service (as defined in Section 409A) is determined to
constitute “nonqualified deferred compensation” within the meaning of Section
409A and the Employee is a “specified employee” as defined in Section
409A(a)(2)(B)(i), as determined by the Company in accordance with its procedures
and Treasury Regulation 1.409A-1(i)(6)(i), by which determination the Employee
hereby agrees to be bound, such portion of the payment, compensation or other
benefit shall not be paid before the earlier of (i) the day that is six months
plus one day after the date of separation from service or (ii) ten (10) days
after the Employee’s date of death (either, the “New Payment
Date”).  The aggregate of any payments that would otherwise have been
paid to the Employee during the period between the date of separation from
service and the New Payment Date shall be paid to the Employee in a lump sum on
such New Payment Date, and any remaining payments will be paid on their original
schedule.  For purposes of this Agreement, each amount to be paid or
benefit to be provided will be construed as a separate identified payment for
purposes of Section 409A, and any payments that are due within the “short term
deferral period” as defined in Section 409A will not be treated as deferred
compensation unless applicable law requires otherwise.  Neither the
Company nor the Employee has the right to accelerate or defer the delivery of
any such payments or benefits except to the extent Section 409A specifically
permits or requires such acceleration or deferral.  Notwithstanding
the foregoing, to the extent that this Agreement or any payment or benefit
hereunder is determined not to comply with Section 409A, then neither the
Company, its Board, nor any of its designees, agents, or employees will be
liable to the Employee or any other person for any actions, decisions, or
determinations made under the Agreement or for any resulting adverse tax
consequences.”

             

            
              
                
                

              

              
                
                

                
                  

                

              

              
                
                

              

            

             

            Except as
modified by this letter or by other intervening amendments, all other terms and
conditions of the Agreement shall remain in full force and
effect.  This letter may be executed in counterparts, each of which
shall be deemed to be an original, and all of which shall constitute one and the
same document.

             

          

        

        
        

        
          
            
              	 	SKILLSOFT PUBLIC LIMITED
      COMPANY	 
	 	 	 	 
	
                       

                    	
                      By:
      

                    	/s/ Charles
      E. Moran	 
	 	 	Charles
      E. Moran	 
	 	 	President
      and Chief Executive Officer and Director	 
	 	 	 (Principal
      Executive Officer)	 
	 	 	 	 

            

          

        

        
           

          
            
              
                	 	SKILLSOFT CORPORATION (FORMERLY
      SMARTFORCE)	 
	 	 	 	 
	
                         

                      	
                        By:
      

                      	/s/ Charles
      E. Moran	 
	 	 	Charles
      E. Moran	 
	 	 	President
      and Chief Executive Officer and Director	 
	 	 	 (Principal
      Executive Officer)	 
	 	 	 	 

              

            

          

           

        

        
        

        
 

        
          
            
              
                	Acknowledged
      and agreed:	 
	 	 	 
	
                        By:
      

                      	/s/ Mark
      Townsend	 
	 	Mark
      Townsend	 
	 	 	 
	 Date	December
      29, 2008

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