Document:

EX-10.O.XVI

 

Exhibit 10 (o)(xvi)

AMENDMENT NO. 15 TO TRANSFER AND ADMINISTRATION AGREEMENT

     AMENDMENT NO. 15 TO TRANSFER AND ADMINISTRATION AGREEMENT, dated as of February 12, 2007 (this
“Amendment”), to that certain Transfer and Administration Agreement dated as of March 21,
2001, as amended by Amendment No. 1 to Transfer and Administration Agreement dated as of November
30, 2001, Amendment No. 2 to Transfer and Administration Agreement dated as of December 14, 2001,
Amendment No. 3 to Transfer and Administration Agreement dated as of March 20, 2002, Amendment No.
4 to Transfer and Administration Agreement dated as of March 29, 2002, Amendment No. 5 to Transfer
and Administration Agreement dated as of May 22, 2002, Amendment No. 6 and Limited Waiver to
Transfer and Administration Agreement dated as of September 27, 2002, Amendment No. 7 to Transfer
and Administration Agreement dated as of February 19, 2003, Amendment No. 8 to Transfer and
Administration Agreement dated as of April 14, 2003, Amendment No. 9 to Transfer and Administration
Agreement dated as of August 13, 2003, Amendment No. 10 to Transfer and Administration Agreement
dated as of February 18, 2004, Amendment No. 11 to Transfer and Administration Agreement dated as
of August 13, 2004, Amendment No. 12 to Transfer and Administration Agreement dated as of February
14, 2005, Amendment No. 13 to Transfer and Administration Agreementd dated as of February 13, 2006
and Amendment No. 14 to Transfer and Administration Agreement dated as of October 31, 2006 (as so
amended and in effect, the “TAA”), by and among Arrow Electronics Funding Corporation, a
Delaware corporation (the “SPV”), Arrow Electronics, Inc., a New York corporation,
individually (“Arrow”) and as the initial Master Servicer, the several commercial paper
conduits identified on Schedule A to the TAA and their respective permitted successors and assigns
(the “Conduit Investors”; each individually, a “Conduit Investor”), the agent bank
set forth opposite the name of each Conduit Investor on such Schedule A and its permitted
successors and assigns (each a “Funding Agent”) with respect to such Conduit Investor, and
Bank of America, National Association, a national banking association, as the administrative agent
for the Investors (the “Administrative Agent”), and the financial institutions from time to
time parties thereto as Alternate Investors. Capitalized terms used and not otherwise defined
herein have the meanings assigned to such terms in the TAA.

PRELIMINARY STATEMENTS:

     WHEREAS, the SPV, Arrow, the Conduit Investors, the Funding Agents, the Alternate Investors
and the Administrative Agent have entered into the TAA;

     WHEREAS, the SPV and Arrow have requested that the Conduit Investors, the Funding Agents, the
Alternate Investors and the Administrative Agent agree to make certain changes and amendments to
the TAA;

 

 

 - 2 -

     WHEREAS, subject to the terms and conditions set forth herein, the Conduit Investors, the
Alternate Investors, the Funding Agents and the Administrative Agent are willing to make such
changes and amendments to the TAA; and

     NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

     SECTION 1. Amendments to the TAA. Effective as of the date hereof and subject to the
satisfaction of the conditions precedent set forth in Section 3 hereof, the TAA is hereby amended
as follows:

          Section 1.1. Section 1.1 is amended by amending and restating the definition of “Commitment
Termination Date,” such definition to read in its entirety as follows:

“Commitment Termination Date” means the earliest to occur of (a) February
19, 2008, (b) the date the commitment of any Program Support Provider terminates
under any Program Support Agreement, and (c) the date of termination of any Program
Support Agreement; provided, that in any event the Commitment Termination
Date shall not occur prior to May 11, 2007 (or such later date as to which the SPV,
Arrow, each Conduit Investor, Funding Agent and Alternate Investor affected thereby
and the Administrative Agent may agree in writing).

     SECTION 2. Representations and Warranties of the SPV and Arrow. To induce the Conduit
Investors, Alternate Investors, the Funding Agents and the Administrative Agent to enter into this
Amendment, the SPV and Arrow each makes the following representations and warranties (which
representations and warranties shall survive the execution and delivery of this Amendment) as of
the date hereof, after giving effect to the amendments set forth herein:

          Section 2.1. Authority. The SPV and Arrow each has the requisite corporate power,
authority and legal right to execute and deliver this Amendment and to perform its obligations
hereunder and under the Transaction Documents, including the TAA (as modified hereby). The
execution, delivery and performance by the SPV and Arrow of this Amendment and their performance of
the Transaction Documents, including the TAA (as modified hereby), have been duly approved by all
necessary corporate action and no other corporate proceedings are necessary to consummate such
transactions.

          Section 2.2. Enforceability. This Amendment has been duly executed and delivered by
the SPV and Arrow. This Amendment is the legal, valid and binding obligation of the SPV and Arrow,
enforceable against the SPV and Arrow in accordance with its terms, subject to applicable
bankruptcy, insolvency, moratorium or other similar laws affecting the rights of creditors
generally and the application of general principles of equity (regardless of whether considered in
a proceeding at law or in equity). The making and delivery of this Amendment and the performance
of the Agreement, as amended by this Amendment, do not

 

 

 - 3 -

violate any provision of law or any regulation (except to the extent that the violation
thereof could not, in the aggregate, be expected to have a Material Adverse Effect or a material
adverse effect on the condition (financial or otherwise), business or properties of Arrow and the
other Originators, taken as a whole), or its charter or by-laws, or result in the breach of or
constitute a default under or require any consent under any indenture or other agreement or
instrument to which it is a party or by which it or any of its properties may be bound or affected.

          Section 2.3. Representations and Warranties. The representations and warranties
contained in the Transaction Documents are true and correct on and as of the date hereof as though
made on and as of the date hereof after giving effect to this Amendment.

          Section 2.4. No Termination Event. After giving effect to this Amendment, no event
has occurred and is continuing that constitutes a Termination Event or a Potential Termination
Event.

     SECTION 3. Conditions Precedent. This Amendment shall become effective, as of the
date hereof, on the date on which the following conditions precedent shall have been fulfilled:

          Section 3.1. This Amendment. The Administrative Agent shall have received counterparts
of this Amendment, duly executed by each of the parties hereto.

          Section 3.2. Additional Documents. The Administrative Agent shall have received all
additional approvals, certificates, documents, instruments and items of information as the
Administrative Agent may reasonably request and all of the foregoing shall be in form and substance
reasonably satisfactory to the Administrative Agent and each Funding Agent.

     SECTION 4. References to and Effect on the Transaction Documents.

          Section 4.1. Except as specifically amended and modified hereby, each Transaction Document is
and shall continue to be in full force and effect and is hereby in all respects ratified and
confirmed.

          Section 4.2. The execution, delivery and effectiveness of this Amendment shall not operate as
a waiver of any right, power or remedy of any Investor, Funding Agent or the Administrative Agent
under any Transaction Document, nor constitute a waiver, amendment or modification of any provision
of any Transaction Document, except as expressly provided in Section 1 hereof.

          Section 4.3. This Amendment contains the final and complete integration of all prior
expressions by the parties hereto with respect to the subject matter hereof and shall constitute
the entire agreement among the parties hereto with respect to the subject matter hereof superseding
all prior oral or written understandings.

 

 

 - 4 -

          Section 4.4. Each reference in the TAA to “this Agreement”, “hereunder”, “hereof” or words of
like import, and each reference in any other Transaction Document to “the Transfer and
Administration Agreement”, “thereunder”, “thereof” or words of like import, referring to the
Agreement, shall mean and be a reference to the Agreement as amended hereby.

     SECTION 5. Execution in Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which taken together shall
constitute but one and the same agreement. Delivery of an executed counterpart of a signature page
to this Amendment by telefacsimile shall be effective as delivery of a manually executed
counterpart of this Amendment.

     SECTION 6. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     SECTION 7. WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY WAIVES ANY RIGHT
TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR
OTHERWISE, AMONG ANY OF THEM ARISING OUT OF, CONNECTED WITH, RELATING TO OR INCIDENTAL TO THE
RELATIONSHIP BETWEEN THEM IN CONNECTION WITH THIS AMENDMENT OR ANY OTHER TRANSACTION DOCUMENT.

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their
respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 
	 	Arrow Electronics Funding Corporation,

as SPV

 	 
	 	By:  	/s/ Ira Birns
 	 
	 	 	Name:  	Ira Birns                           	 
	 	 	Title:  	President 	 
	 
	 	Arrow Electronics, Inc.,

individually and as Master Servicer

 	 
	 	By:  	/s/ Ira Birns
 	 
	 	 	Name:  	Ira Birns                           	 
	 	 	Title:  	Vice President & Treasurer 	 
	 
	 	Kitty Hawk Funding Corporation,

as a Conduit Investor

 	 
	 	By:  	/s/ Amy S. Keeth
 	 
	 	 	Name:  	Amy S. Keeth                           	 
	 	 	Title:  	Vice President 	 
	 
	 	Bank of America, National Association,

as a Funding Agent, as Administrative Agent, and as an Alternate Investor

 	 
	 	By:  	/s/ Jeremy Grubb
 	 
	 	 	Name:  	Jeremy Grubb                           	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to

Amendment No. 15 to

Arrow Electronics

Transfer and Administration Agreement

 

 

	 	 	 	 	 
	 	 	Park Avenue Receivables Company LLC,
	 	 	as a Conduit Investor
	 
	 	 	 	 
	 	 	By: JPMorgan Chase Bank, N.A. (formerly known as JPMorgan Chase Bank), its attorney-in-fact
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Mark Connor
	 

	 	 	 	 
	 

	 	 	 	Name: Mark Connor
	 

	 	 	 	Title:   Vice President
	 
	 	 	 	 
	 	 	JPMorgan Chase Bank, N.A.,
	 	 	(formerly known as JPMorgan Chase Bank) as a Funding Agent and as an Alternate Investor
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Mark Connor
	 

	 	 	 	 
	 

	 	 	 	Name: Mark Connor
	 

	 	 	 	Title:   Vice President

Signature Page to

Amendment No. 15 to

Arrow Electronics

Transfer and Administration Agreement

 

 

	 	 	 	 	 	 	 
	 	 	Alpine Securitization Corp., 
	 	 	as a Conduit Investor
	 
	 	 	 	 	 	 
	 	 	By: Credit Suisse, New York Branch,

its attorney-in-fact
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Mark Lengel
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Mark Lengel
	 

	 	 	 	 	 	Title:   Director
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Joseph Soave
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Joseph Soave
	 

	 	 	 	 	 	Title:   Director

	 	 	 	 	 
	 	 	Credit Suisse, New York Branch
	 	 	as a Funding Agent and as an Alternate Investor
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Josh Borg
	 

	 	 	 	 
	 

	 	 	 	Name: Josh Borg
	 

	 	 	 	Title:   Director
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Scott Spiegel
	 

	 	 	 	 
	 

	 	 	 	Name: Scott Spiegel
	 

	 	 	 	Title:   Director

Signature Page to

Amendment No. 15 to

Arrow Electronics

Transfer and Administration Agreement

 

 

	 	 	 	 	 
	 	Liberty Street Funding Corp., 

as a Conduit Investor

 	 
	 	By:  	/s/ Jill A. Gordon
 	 
	 	 	Name:  	Jill A. Gordon 	 
	 	 	Title:  	Vice President 	 
	 
	 	The Bank of Nova Scotia, 

as a Funding Agent and as an Alternate Investor

 	 
	 	By:  	/s/ Michael Eden
 	 
	 	 	Name:  	Michael Eden 	 
	 	 	Title:  	Director 	 
	 

Signature Page to

Amendment No. 15 to

Arrow Electronics

Transfer and Administration Agreement

 

 

	 	 	 	 	 
	 	Gotham Funding Corporation, 

as a Conduit Investor

 	 
	 	By:  	/s/ Franklin P. Collazo
 	 
	 	 	Name:  	Franklin P. Collazo 	 
	 	 	Title:  	Secretary 	 
	 
	 	The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch, 

(formerly known as The Bank of Tokyo-Mitsubishi, Ltd., New York Branch) as a Funding Agent

 	 
	 	By:  	/s/ Aditya Reddy
 	 
	 	 	Name:  	Aditya Reddy 	 
	 	 	Title:  	Vice President 	 
	 
	 	The Bank of Tokyo-Mitsubishi UFJ, Ltd., New York Branch ,

(formerly known as The Bank of Tokyo-Mitsubishi, Ltd., New York Branch) as an Alternate Investor

 	 
	 	By:  	/s/ Chi-Cheng Chen
 	 
	 	 	Name:  	Chi-Cheng Chen 	 
	 	 	Title:  	Authorized Signatory 	 
	 

Signature Page to

Amendment No. 15 to

Arrow Electronics

Transfer and Administration Agreement

 

 

	 	 	 	 	 	 	 
	 	 	Old Line Funding, LLC, 
	 	 	as a Conduit Investor
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Janine D. Marsini
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Janine D. Marsini
	 

	 	 	 	 	 	Title:   Authorized Signatory

	 	 	 	 	 
	 	 	Royal Bank of Canada
	 	 	as a Funding Agent and as an Alternate Investor
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Robert S. Jones
	 

	 	 	 	 
	 

	 	 	 	Name: Robert S. Jones
	 

	 	 	 	Title:   Authorized Signatory
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Veronica L. Gallagher
	 

	 	 	 	 
	 

	 	 	 	Name: Veronica L. Gallagher
	 

	 	 	 	Title:   Authorized Signatory

Signature Page to

Amendment No. 15 to

Arrow Electronics

Transfer and Administration Agreement

 

 

	 	 	 	 	 
	 	 	Variable Funding Capital Company Llc
	 	 	as a Conduit Investor
	 
	 	 	 	 
	 	 	By: Wachovia Capital Markets, LLC, as attorney-in-fact
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Douglas R. Wilson, Sr.
	 

	 	 	 	 
	 

	 	 	 	Name: Douglas R. Wilson, Sr.
	 

	 	 	 	Title:   Vice President
	 
	 	 	 	 
	 	 	Wachovia Bank, National Association, 
	 	 	as a Funding Agent and as an Alternate Investor
	 
	 	 	 	 
	 

	 	By:
	 	/s/ William P. Rutkowski
	 

	 	 	 	 
	 

	 	 	 	Name: William P. Rutkowski
	 

	 	 	 	Title:   Vice President

Signature Page to

Amendment No. 15 to

Arrow Electronics

Transfer and Administration AgreementEX-10.8

 

Exhibit 10.8

EMPLOYMENT AGREEMENT

THIS AGREEMENT is made as of the September 12, 2005

BETWEEN:

COREL INC.

(the “Corporation”)

- and -

Patrick Morley

(the “Executive”)

RECITAL:

     The Corporation and the Executive wish to enter into this Agreement to set out the rights and
obligations of each of them respecting the Executive’s
employment with the Corporation.

     NOW THEREFORE in consideration of the mutual covenants and agreements contained in this
Agreement and other good and valuable consideration (the receipt and sufficiency of which are
hereby acknowledged), the Corporation and the Executive agree as follows:

	1	 	Definitions

In this Agreement,

	1.1	 	“Agreement” means this agreement as it may be amended from time to time;
	 
	1.2	 	“Affiliate” has the meaning attributed to such term in the Business Corporations
Act (Ontario) as the same may be amended from time to time and any successor
legislation thereto, and includes an Associate;
	 
	1.3	 	“Associate” has the meaning attributed to such term in the Business Corporations
Act (Ontario) as the same may be amended from time to time and any successor
legislation thereto;
	 
	1.4	 	“Benefits” has the meaning set out in section 6;
	 
	1.5	 	“Board” means the Board of Directors of Corel Corporation

 

 

	1.6	 	“Business” means the development, marketing or sale of computer software for
office productivity, graphics, or digital imaging, or any other software which the
Corporation may be involved in developing, marketing, or selling during the term
of this Agreement;
	 
	1.7	 	“Change of Control”

	 	a)	 	means any transaction or series of transactions, whether by way of
consolidation, amalgamation, merger, reorganization or plan of
amalgamation involving Corel Corporation, with or into any other person
(other than Vector);
	 
	 	b)	 	any transfer, conveyance, sale, lease, exchange or otherwise of all
or substantially all of the assets of Corel Corporation, to any other person
(other than Vector); and
	 
	 	c)	 	the lawful acquisition by any person, or by a group of persons acting
jointly or in concert, of that number of voting shares of Corel Corporation,
which is 35% or more of the total voting shares issued and outstanding
immediately after such acquisition, unless Vector continues to hold a
number of voting shares which represents a greater percentage than the
first-mentioned person or group of persons.

Provided that shares of Corel Corporation acquired through an initial or follow on public offering
shall be deemed to not result in a Change of Control.

	1.8	 	“Commencement Date” means September 29, 2005;
	 
	1.9	 	“Confidential Information” means all information, intellectual property
(including trade secrets) and facts relating to and used or proposed to be used in the
Business of the Corporation and its Affiliates, acquired by the Executive during any
period in which the Executive was affiliated with the Corporation in the capacity of
an employee, director or shareholder which is confidential based upon its nature or
the circumstances surrounding its disclosure, and includes, without limiting the
generality of the foregoing, information:

	 	a)	 	relating to the Corporation’s or an Affiliate’s products and services
or to the Corporation’s or a Affiliate’s research and
development projects or plans;
	 
	 	b)	 	relating to the Corporation’s or an Affiliate’s trade secrets,
technology, patentable and unpatentable inventions, discoveries, processes, test
procedures and results, records, specifications, data, formulations,
know-how, samples, specimens, manufacturing processes and regulatory information;

 

 

	 	c)	 	relating to the Corporation’s or an Affiliate’s business policies, strategies,
operations, finances, plans or opportunities, including the identity of, or
particulars about, the Corporation’s or an Affiliate’s clients or suppliers;

	1.10	 	“Date of Termination” has the meaning set out in section 7.1 of this Agreement;
	 
	1.11	 	“Disability” means the mental or physical state of the Executive such that:

	 	a)	 	subject to applicable human rights legislation, due to illness,
disease, mental or physical disability or similar cause, the Executive cannot
substantially perform his duties as an employee, officer or director of the
Corporation or any of its Subsidiaries, as applicable;
	 
	 	b)	 	a court of competent jurisdiction has declared the Executive to be
mentally incompetent or incompetent to manage his affairs;
	 
	 	c)	 	the Executive is eligible for, has applied for, and has been accepted
for long-term disability benefits under the Corporation’s long-term disability
plan; or
	 
	 	d)	 	an attorney pursuant to a continuing power of attorney for personal
care or similar instrument is appointed to manage the affairs of the individual due
to the Executive’s mental incompetence;

	1.12	 	“Just Cause” means:

	 	a)	 	theft, fraud, dishonesty or willful misconduct by the Executive in
connection with the executive’s duties or involving the
property, business or affairs of the Corporation, or the carrying out of the
Executive’s duties;
	 
	 	b)	 	the breach by the Executive in any material respect of the
Executive’s employment agreement; or.
	 
	 	c)	 	any other conduct that would be determined by the courts of Ontario
to constitute just cause.

	1.13	 	“Good Reason” means any of the following, unless consented to by the Executive:

	 	a)	 	any material reduction in the Executive’s annual base salary,
benefits or perquisites;
	 
	 	b)	 	any material reduction in the Executive’s ability to earn incentive
compensation which shall exclude a reduction caused by the failure of the
Corporation or the Executive to meet incentive compensation targets or
goals; or
	 
	 	c)	 	any material reduction or material adverse change in the nature or
scope of the authorities, powers, functions, responsibilities or duties of the
executive; or

 

 

	 	d)	 	any breach by the Corporation of any of it’s obligations under this agreement.

	1.14	 	“Salary” has the meaning set out in section 3(a).
	 
	1.15	 	“Vector” means any entity or fund Affiliated with, or managed directly or
indirectly by, Vector Capital Corporation or its Affiliates, or any other entity
controlled, directly or indirectly, by such entities or funds.

	2	 	Employment of the Executive

	2.1	 	The Corporation shall employ the Executive in the position of Executive Vice
President, Sales and Marketing, Americas, of the Corporation for the Term of this
Agreement subject to termination pursuant to section 7;
	 
	2.2	 	While employed by the Corporation:

	 	i.	 	The Executive shall report to the Chief Executive Officer of Corel
Corporation and shall perform such duties, have such responsibilities and exercise
such powers and authorities as are assigned to him by the Chief Executive Officer
from time to time; and
	 
	 	ii.	 	The Executive shall devote substantially all of his business time,
attention and ability to the Business;
	 
	 	iii.	 	The Executive shall work on a remote basis from Boston, Massachusetts
however Executive acknowledges that he will be required to spend at least 50% of his
business time traveling to attend to running the business.

	3	 	Remuneration

     Commencing
and effective as of the Commencement Date, the remuneration of the
Executive for services hereunder shall be as follows:

	 	3.1	 	The Executive shall receive an annual gross salary (before
deduction for income taxes and other required deductions) of USD $300,000, which
shall be reviewed periodically and which may be increased (but not
decreased without the prior written consent of the Executive) at the
discretion of the Board (the “Salary”), payable in accordance with the
policy of the Corporation for payments of salary to senior management.
	 
	 	3.2	 	The Executive shall also be eligible for an incentive bonus component of
USD $300,000, (subject to statutory withholdings and deductions). The
incentive bonus shall be paid based upon the successful realization of
targets set on a periodic basis by the Corporation after consultation with

 

 

	 	 	 	the executive. All payments will be made by bank credit transfer. Payment of the
incentive bonus for fiscal year 2005 will be paid, on a pro rata basis
commensurate with an assumed 100% achievement level.
	 
	 	3.3	 	The Executive shall be eligible to participate in the stock option plan.
The Executive hereby acknowledges that the granting of options is made only
to full time employees; solely at Employer’s discretion and that any such
options shall be subject to the terms and conditions of any grant and of
Employer’s stock option plan in effect, from time to time. Without
limiting the foregoing, nothing in this Agreement shall in any way alter
the terms and conditions of any grant or of the plan. The Corporation
agrees to grant 1,000,000 options to the Executive commensurate with
Executive’s first day of employment with the Corporation as described in
the attached Notice of Grant.
	 
	 	3.4	 	The Executive shall be entitled to participate in benefits as are enjoyed
from time to time generally by employees in accordance with the
established practices and policies of the Corporation as the Corporation
may in its absolute discretion create from time to time. In this regard, the
Executive acknowledges having received a description of the benefits in
force as of the date hereof.

	4	 	Expenses

     The Corporation shall reimburse the Executive for all reasonable out-of-pocket expenses
incurred by the Executive while employed by the Corporation in the performance of his duties under
this Agreement (including attendance at industry, financing and other conferences relevant to the
Executive’s performance of his duties hereunder), in accordance with the Corporation’s policy for
reimbursement of expenses, upon presentation of receipts or such other supporting documentation as
the Corporation may reasonably require.

	5	 	Vacation

     The Executive shall be entitled while employed by the Corporation to 4 weeks vacation with
pay per year, in accordance with its normal practices. Vacation shall be taken by the Executive at
such time as may be reasonably acceptable to the Corporation having regard to its operations.

	6	 	Benefits

     While the Executive is employed by the Corporation, the Corporation shall provide to the
Executive the benefits made generally available to its employees (the “Benefits”). The Benefits
shall be provided in accordance with and subject to the terms and conditions of the applicable
fund, plan or arrangement relating thereto in effect from time to time.

 

 

	7	 	Termination

	 	7.1	 	The employment of the Executive shall terminate or be terminable:

	 	a)	 	by retirement or resignation on not less than 1 months written
notice, of the Executive;
	 
	 	b)	 	by the Corporation at any time on written notice to the Executive for
Just Cause;
	 
	 	c)	 	by the Corporation or the Executive at any time on written notice
because of the occurrence of Disability;
	 
	 	d)	 	automatically upon the death of the Executive;
	 
	 	e)	 	by the Corporation at any time on written notice without Just Cause;
	 
	 	f)	 	by the Executive on written notice for Good Reason; or
	 
	 	g)	 	by the Executive within 3 months following a Change of Control, and
by the Executive providing the Corporation with 3 months written notice.

	8	 	Payments on Termination of Employment

	 	8.1	 	If the employment of the Executive is terminated for retirement or resignation,
pursuant to section 7.1 (a), the Executive will receive payment for Salary, incentive bonus,
and accrued but unused vacation owing on the Date of Termination.
	 
	 	8.2	 	If the employment of the Executive is terminated for Just Cause, pursuant to
section 7.1 (b), the Executive will receive payment for Salary and accrued, but unused
vacation owing on the Date of Termination.
	 
	 	8.3	 	If the employment of the Executive is terminated at any time by the Corporation
for Disability pursuant to section 7.1 (c), by the death of the Executive pursuant to section
7.1(d), by the Executive without Just Cause pursuant to section 7.1(e), by the Executive for
Good Reason pursuant to section 7. l(f), or by the Executive on notice following a Change of
Control pursuant to 7.1 (g), the following provisions shall apply conditional on the Executive
(or the Executive’s legal representative in the case of termination by reason of death)
providing a full and final release to the Corporation in the form attached hereto as
Schedule A:

	 	a)	 	The Corporation shall pay to the Executive, immediately following
the Date of Termination, if not already paid, the Executive’s Salary owing at the
Date of Termination;

 

 

	 	b)	 	The Corporation shall pay to the Executive forthwith following the Date
of Termination, a lump sum payment equivalent (less deduction for
income taxes and other required deductions) to nine (9) month’s Salary.
	 
	 	c)	 	The Executive shall continue to receive health benefits for a period
of nine (9) months following the Date of Termination, to the extent the
Corporation is permitted by the terms of the relevant benefit plan(s) to
provide such health benefits and, to the extent the Corporation is not so
permitted, the Corporation shall make a payment equal to the cost to the
Corporation of such benefits for said period;
	 
	 	d)	 	The Corporation shall reimburse expenses incurred by the Executive on
or prior to the Date of Termination for which the Executive would be entitled
to reimbursement but for the termination of his employment hereunder;
and
	 
	 	e)	 	The Executive is not obligated to mitigate his damages or to seek
alternative employment. The payments refereed to in section 8.2 (b) shall
not be reduced if the Executive obtains alternate employment following
termination.

	8.4	 	In the event the Executive is terminated by the Corporation without Just
Cause within twelve (12) months following a Change of Control or the Executive terminates his
employment for Good Reason within twelve (12) months following a Change of Control, then in
either case, in addition to receiving the payments and benefits referred to in section 8.3,
conditional on the Executive providing a full and final release to the Corporation in the form
attached hereto as Schedule A, the vesting of the Executive’s stock options shall accelerate,
to the extent required, such that effective upon the Date of Termination at least 50% of the
options previously granted to the Executive shall become fully vested.
	 
	8.5	 	The Executive acknowledges and agrees that the provisions of this section 8 are in
satisfaction of and substitution for any and all statutory and common law rights, including
without limitation, any right to reasonable notice of termination.

	9	 	Resignation as a Director and Officer

     On the Executive ceasing to be an employee of the Corporation for any reason, the Executive
shall forthwith resign as a director and officer of the Corporation and all of its Affiliates
(unless such position is established through a shareholder agreement or other contractual right).

	10	 	Non-Competition and Non-Solicitation
	 
	10.1	 	The Executive shall not, during his employment and for the period ending twelve (12) months
after the Date of Termination, directly or indirectly in any manner

 

 

	 	 	whatsoever including either individually, or in partnership, jointly or in conjunction with
any other person, or as principal, agent, owner, consultant, contractor, executive, officer,
director, advisor or shareholder:

	 	a)	 	be engaged in any Competing Entity (as defined in section 10.4 below);
	 
	 	b)	 	have any financial or other interest (including an interest by way of royalty
or compensation arrangements) in or in respect of the business of any Competing
Entity; or
	 
	 	c)	 	advise, render or provide services to, lend money to or guarantee the debts or
obligations of any Competing Entity

in any province of Canada or any state of the United States,

	10.2	 	The Executive shall not, during his employment and for the period ending twelve
(12) months after the Date of Termination, directly or indirectly induce or solicit or
attempt to induce any employee of the Corporation or any of its Affiliates as of the
date of Termination to leave his or her employment;
	 
	10.3	 	Nothing in this Agreement shall prevent the Executive from owning not more than
5% of any class of securities of an entity, the securities of which are listed on a
recognized stock exchange or traded in the over the counter market in Canada,
which carries on a business which is the same as or which competes with the
business of the Corporation or any of its Affiliates;
	 
	10.4	 	For the purposes of this Agreement, a Competing Entity are defined as Microsoft,
the Star Office Division of Sun Microsystems, Adobe, Macromedia, Quark,
Intervideo, Pinnacle Systems, Sonic Solutions, Autodesk, the Lotus Division of
IBM, ULEAD, Sigmaflow, or ACD Systems or any of their successors, and, on
notice to the Executive, other entities that the Corporation may add to this
definition, from time to time before termination of the Executive’s employment,
acting in good faith after consultation with the Executive, whose business consists
of developing or marketing word processing, spreadsheet, presentation, process
management, flowcharting, digital imaging or graphics software which the
Corporation determines is in competition with its business.

	11	 	Confidentiality
	 
	11.1	 	The Executive agrees that all Confidential Information is the property of the Corporation or
its Affiliates and that he shall keep the Confidential Information secret and confidential
and shall not use (other than in connection with his employment with the Corporation or any
of its Affiliates) or disclose to any person, directly or indirectly, any Confidential
Information at any time hereafter, provided, however, that nothing in this section shall
preclude the Executive from disclosing or using Confidential Information if:

 

 

	 	a)	 	the Confidential Information is available to the public or in the public
domain at the time of such disclosure or use, without breach of this
Agreement;
	 
	 	b)	 	disclosure is required to be made by any law, regulation,
governmental body, or authority or by court order; or
	 
	 	c)	 	disclosure is made to a court or other governmental regulatory or
arbitral body which is determining the rights of the parties under this Agreement;

	11.2	 	The Executive acknowledges and agrees to return to the Corporation or destroy
upon the Corporation’s request, upon the termination of his employment under this
Agreement, all records, books, samples, paper, notes or other documents or assets
belonging to the Corporation or any Affiliate or relating to their business and to
return or destroy upon the Corporation’s request, any written Confidential
Information;
	 
	11.3	 	The Executive further acknowledges and agrees that the obligations under this
section 11 shall exist and continue in full force and effect notwithstanding any
breach or repudiation, or alleged breach or repudiation, of or termination of this
Agreement by the Corporation;
	 
	11.4	 	For greater certainty, the Corporation acknowledges that this section 11 is not
intended to apply to the skill, expertise, know-how and experience of the Executive
gained in the performance of his employment or with respect to any skill, expertise,
know-how and experience the Executive obtained prior to or outside his
employment or directorship duties with the Corporation.
	 
	12	 	Intellectual Property

     The Executive hereby assigns the Corporation his entire right, title and interest in any
invention, work or formula, whether patentable or not or copyrightable or not, which is conceived
or made solely by the Executive or jointly by the Executive and any other person or persons during
the Executive’s employment and which relates in any manner to the Business, research or other
activities of the Corporation or which results from any task assigned to or performed by the
Executive on behalf of the Corporation. The Executive covenants and agrees that (i) he shall
promptly disclose to the Corporation any invention or work covered by this paragraph, (ii) if
requested by the Corporation, he shall promptly execute a specific assignment of title to the
Corporation for such invention or work, and (iii) he shall take all reasonable actions necessary to
assist the Corporation, at the Corporation’s expense, to secure patent or copyright protection in
the United States, Canada and in foreign countries.

	13	 	Remedies

     The Executive acknowledges that a breach or threatened breach by the Executive of any
provision of any of sections 10, 11 or 12 of this Agreement shall result in the Corporation and/or
its Affiliates suffering irreparable harm which cannot be

 

 

calculated or fully or adequately compensated by the recovery of damages alone. Accordingly, the
Executive agrees that the Corporation and/or its Affiliates shall be entitled to (and the
Executive shall not argue or take a position that the Corporation or any Affiliate shall not
suffer irreparable harm) interim, interlocutory and permanent injunctive relief, specific
performance and other equitable remedies, in addition to any other relief to which the Corporation
and/or its Affiliates may become entitled.

	14	 	Notice

     Any notice or other communication required or permitted to be given hereunder shall be in
writing and shall be given by facsimile or other means of electronic communication or by delivery
by hand as hereinafter provided. Any such notice or other communication, if mailed by registered
mail, shall be deemed to have been received on the day such mail is delivered by the post office,
or if sent by facsimile or other means of electronic communication, shall be deemed to have been
received on the business day following the sending, or if delivered by hand shall be deemed to have
been received at the time it is delivered to the applicable address noted below either to the
individual designated below or to an individual at such address having apparent authority to accept
deliveries on behalf of the addressee. Notice of change of address shall also be governed by this
section. In the event of a general discontinuance of postal service due to strike, lock-out or
otherwise, notices or other communications shall be delivered by hand or sent by facsimile or other
means of electronic communication and shall be deemed to have been received in accordance with this
section. Notices and other communications shall be addressed as follows:

if to the Executive:

Patrick Morley

80 Lexington Road

Lincoln, MA 01773

if to the Corporation:

Corel Inc. c/o Corel Corporation

1600 Carling Avenue

Ottawa, Ontario K1Z 8R7

Attention: General Counsel

Telecopier No: (613) 725-2691

	15	 	Assignment

     This Agreement shall be assignable by the Corporation but shall not be assignable by the
Executive.

	16	 	Invalidity of Provisions

     Each of the provisions contained in this Agreement is distinct and severable and a
declaration of invalidity or unenforceability of any such provision by a

 

 

court of competent jurisdiction shall not affect the validity or enforceability of any other
provision hereof.

	17	 	Entire Agreement

     This Agreement constitutes the entire agreement between the parties pertaining to the subject
matter of this Agreement. There are no warranties, representations or agreements between the
parties in connection with the subject matter of this Agreement except as specifically set forth
or referred to in this Agreement. No reliance is placed on any representation, opinion, advice or
assertion of fact made by the Corporation or its directors, officers and agents to the Executive,
except to the extent that the same has been reduced to writing and included as a term of this
Agreement. Accordingly, there shall be no liability, either in tort or in contract, assessed in
relation to any such representation, opinion, advice or assertion of fact, except to the extent
aforesaid.

	18	 	Waiver, Amendment

     Except as expressly provided in this Agreement, no amendment or waiver of this Agreement shall
be binding unless executed in writing by the party to be bound thereby. No waiver of any provision
of this Agreement shall constitute a waiver of any other provision nor shall any waiver of any
provision of this Agreement constitute a continuing waiver unless otherwise expressly provided.

	19	 	Currency

     Except as expressly provided in this Agreement, all amounts in this Agreement are stated and
shall be paid in United States currency.

	20	 	Governing Law

     This Agreement shall be governed by and construed in accordance with the laws of Ontario.

	21	 	Severability and Judicial Modification

     If any provision of this Agreement is held by a court or arbitration panel of competent
jurisdiction to be enforceable only if modified, such holding shall not affect the validity of the
remainder of this Agreement, the balance of which shall continue to be binding upon the parties
hereto with any such modification to become a part hereof and treated as though originally set
forth in this Agreement. The parties further agree that any such court or arbitration panel is
expressly authorized to modify any such unenforceable provision of this Agreement in lieu of
severing such unenforceable provision from this Agreement in its entirety, whether by rewriting
the offending provision, deleting any or all of the offending provision, adding additional
language to this Agreement, or by making such other modifications as it deems warranted to carry
out the intent and agreement of the parties as embodied herein to the maximum extent permitted by
law. The parties expressly agree that this Agreement as so modified by the court or arbitration

 

 

panel shall be binding upon and enforceable against each of them. In any event, should one or more
of the provisions of this Agreement be held to be invalid, illegal or unenforceable in any respect,
such invalidity, illegality or unenforceability shall not affect any other provisions hereof, and
if such provision or provisions are not modified as provided above, this Agreement shall be
construed as if such invalid, illegal or unenforceable provisions had never been set forth herein.

	22	 	Counterparts

     This Agreement may be signed in counterparts and each of such counterparts shall constitute
an original document and such counterparts, taken together, shall constitute one and the same
instrument. Counterpart signature pages may be delivered by facsimile.

	23	 	Acknowledgement

Each of the Corporation and the Executive acknowledges that:

	 	a)	 	he or it has had sufficient time to review and consider this
Agreement thoroughly;
	 
	 	b)	 	he or it has read and understands the terms of this Agreement
and his or its obligations hereunder;
	 
	 	c)	 	he or it was afforded the opportunity to retain independent
legal advice concerning the interpretation and effect of this Agreement; and
	 
	 	d)	 	this Agreement is entered into voluntarily and without any pressure.

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

	 	 	 	 	 	 	 
	SIGNED, SEALED & DELIVERED

	 	 	)	 	 	For: Corel Inc.
	 
	 	 	 	 	 	 
	in the presence of

	 	 	)	 	 	
	 

	 	 	)	 	 	David Dobson
	 
	 	 	 	 	 	 
	
	 	 	 	 	 	 
	Witness

	 	 	)	 	 	For: Executive
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	
	 

	 	 	)	 	 	Patrick Morley
	Chris DiFrancesco
	 	 	 	 	 	 
	Witness Name (Printed)

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