Document:

Exhibit
10(o)

BECTON, DICKINSON AND COMPANY

2004 EMPLOYEE AND DIRECTOR EQUITY-BASED

COMPENSATION PLAN

 

As Amended and Restated as of November 25, 2008

 

Section 1. Purpose.

The purpose of the Becton, Dickinson and Company 2004 Employee and Director Equity-Based Compensation Plan is to provide an incentive to employees of the Company and its subsidiaries to achieve long-range goals, to aid in attracting and retaining employees and directors of outstanding ability and to closely align their interests with those of shareholders.

Section 2. Definition.

As used in the Plan, the following terms shall have the meanings set forth below:

(a)      “Affiliate” shall mean (i) any entity that, directly or indirectly, is controlled by the Company and (ii) any entity in which the Company has a significant equity interest, in either case as determined by the Committee.

(b)      “Award” shall mean any Option, Stock Appreciation Right, award of Restricted Stock, Restricted Stock Unit, Performance Unit or Other Stock-Based Award granted under the Plan.

(c)      “Award Agreement” shall mean any written agreement, contract or other instrument or document evidencing any Award granted under the Plan, which may, but need not, be executed or acknowledged by a Participant.

(d)    “Board” shall
mean the board of directors of the Company.

(e)      “Cause” shall mean (i) the willful and continued failure of a Participant to perform substantially the Participant’s duties with the Company or any Affiliate (other than any such failure resulting from incapacity due to physical or mental illness), or (ii) the willful engaging by the Participant in illegal conduct or gross misconduct that is materially and demonstrably injurious to the Company. No act, or failure to act, on the part of the Participant shall be considered “willful” unless it is done, or omitted to be done, by the Participant in bad faith or without the reasonable belief that the Participant’s action or omission was in the best interest of the Company.

(f)     “Change
in Control” means

(i) the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 25% or more of either (A) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (B) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that, for purposes of this
Section 2(f), the following acquisitions shall not constitute a Change in Control: (i) any acquisition directly from the Company; (ii) any acquisition by the Company, or (iii) any acquisition by any employee 

 

	
             
 	
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benefit plan (or related trust) sponsored or maintained by the Company or any affiliated company, (iv) any acquisition by any corporation pursuant to a transaction that complies with Section 2(f)(iii)(A), Section 2(f)(iii)(B) and Section 2(f)(iii)(C), or (v) any acquisition that the Board determines, in good faith, was inadvertent, if the acquiring Person divests as promptly as practicable a sufficient amount of the Outstanding Company Common Stock and/or the Outstanding Company Voting Securities, as applicable, to reverse such acquisition of 25% or more thereof;

(ii) individuals who, as of the day after the effective time of this Plan, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to such time whose election, or nomination for election as a director by the Company’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consent by or on
behalf of a Person other than the Board;

(iii) consummation of a reorganization, merger, consolidation or sale or other disposition of all or subsequently all of the assets of the Company (a “Business Combination”), in each case, unless, following such Business Combination, (A) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 60% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation that,
as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common Stock and the Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 25% or more of, respectively, the then-outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such corporation, except to the extent that such ownership existed prior to the Business Combination, and (C) at least a majority of the members of the board of directors
of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination; or 

(iv) approval by the shareholders of the Company of a complete liquidation or dissolution of the Company.  

(g)      “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

 

 

	
             
 	
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(h)      “Committee” shall mean the Compensation and Benefits Committee of the Board or such other committee as may be designated by the Board.

(i)     “Company” shall
mean Becton, Dickinson and Company.

 

(j)        “Disability” shall mean a Participant’s total disability as defined below and determined in a manner consistent with Code Section 409A and the regulations thereunder:

 

The Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months.

 

A Participant will be deemed to have suffered a Disability if determined to be totally disabled by the Social Security Administration.  In addition, the Participant will be deemed to have suffered a Disability if determined to be disabled in accordance with a disability insurance program maintained by the Company, provided that the definition of disability applied under such disability insurance program complies with the requirements of Code Section 409A and the regulations thereunder.

(k)      “Earnings Per Share” shall mean earnings per share calculated in accordance with U.S. Generally Accepted Accounting Principles.

(l)       “Executive Group” shall mean every person who is expected by the Committee to be both (i) a “covered employee” as defined in Section 162(m) of the Code as of the end of the taxable year in which payment of the Award may be deducted by the Company, and (ii) the recipient of compensation of more than $1,000,000 for that taxable year.

(m)     “Fair Market Value” shall mean, with respect to any property (including, without limitation, any Shares or other securities) the fair market value of such property determined by such methods or procedures as shall be established from time to time by the Committee.

(n)      “Incentive Stock Option” shall mean an option representing the right to purchase Shares from the Company, granted under and in accordance with the terms of Section 6, that meets the requirements of Section 422 of the Code, or any successor provision thereto.

(o)      “Market Share” shall mean the percent of sales of the total available market in an industry, product line or product attained by the Company or one of its business units during a time period.

(p)      “Net Income” shall mean net income calculated in accordance with U.S. Generally Accepted Accounting Principles.

(q)      “Net Revenue Per Employee” in a period shall mean net revenue divided by the average number of employees of the Company, with average defined as the sum of the number of employees at the beginning and ending of the period divided by two.

(r)       “Non-Qualified Stock Option” shall mean an option representing the right to purchase Shares from the Company, granted under and in accordance with the terms of Section 6, that is not an Incentive Stock Option.

(s)     “Option” shall
mean an Incentive Stock Option or a Non-Qualified Stock Option.

(t)     “Other
        Stock-Based Award” shall mean any right
granted under Section 9.

 

 

	
             
 	
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(u)    “Participant” shall
mean an individual granted an Award under the Plan.

(v)    “Performance
        Unit” shall mean any right granted under
Section 8.

(w)   “Restricted
  Stock” shall mean any Share granted under
    Section 7.

(x)      “Restricted Stock Unit” shall mean a contractual right granted under Section 7 that is denominated in Shares. Each Unit represents a right to receive the value of one Share (or a percentage of such value, which percentage may be higher than 100%) upon the terms and conditions set forth in the Plan and the applicable Award Agreement. Awards of Restricted Stock Units may include, without limitation, the right to receive dividend equivalents.

(y)      “Retirement” shall mean a Separation from Service after attainment of retirement as specified in the applicable terms of an Award.

(z)      “Return On Common Equity” for a period shall mean net income less preferred stock dividends divided by total shareholders’ equity, less amounts, if any, attributable to preferred stock.

(aa)    “Return on Invested Capital” for a period shall mean earnings before interest, taxes, depreciation and amortization divided by the difference of total assets less non-interest bearing current liabilities.

(bb)    “Return On Net Assets” for a period shall mean net income less preferred stock dividends divided by the difference of average total assets less average non-debt liabilities, with average defined as the sum of assets or liabilities at the beginning and ending of the period divided by two.

(cc)    “Revenue Growth” shall mean the percentage change in revenue (as defined in Statement of Financial Accounting Concepts No. 6, published by the Financial Accounting Standards Board) from one period to another.

(dd)    “Plan” shall mean this Becton, Dickinson and Company 2004 Employee and Director Equity-Based Compensation Plan.

(ee)    “Separation from Service” shall mean a termination of employment or other separation from service from the Company, as described in Code Section 409A and the regulations thereunder, including, but not limited to a termination by reason of Retirement or involuntary termination without Cause, but excluding any such termination where there is a simultaneous re-employment by the Company.

(ff)    “Shares” shall
mean shares of the common stock of the Company, $1.00 par value.

(gg)    “Specified Employee” shall mean a Participant who is deemed to be a specified employee in accordance with procedures adopted by the Company that reflect the requirements of Code Section 409A(2)(B)(i) and the guidance thereunder.

(hh)    “Stock Appreciation Right” shall mean a right to receive a payment, in cash and/or Shares, as determined by the Committee, equal in value to the excess of the Fair Market Value of a Share at the time the Stock Appreciation Right is exercised over the exercise price of the Stock Appreciation Right.

 

 

	
             
 	
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(ii)      “Substitute Awards” shall mean Awards granted in assumption of, or in substitution for, outstanding awards previously granted by a company acquired by the Company or with which the Company combines.

(jj)      “Total Shareholder Return” shall mean the sum of the appreciation in the Company’s stock price and dividends paid on the common stock of the Company over a given period of time.

Section 3. Eligibility.

(a) Any individual who is employed by (including any officer), or who serves as a member of the board of directors of, the Company or any Affiliate shall be eligible to be selected to receive an Award under the Plan.

(b) An individual who has agreed to accept employment by the Company or an Affiliate shall be deemed to be eligible for Awards hereunder as of the date of such agreement.

(c) Holders of options and other types of Awards granted by a company acquired by the Company or with which the Company combines are eligible for grant of Substitute Awards hereunder.

Section 4. Administration.

(a) The Plan shall be administered by the Committee. The Committee shall be appointed by the Board and shall consist of not less than three directors, each of whom shall be independent, within the meaning of and to the extent required by applicable rulings and interpretations of the New York Stock Exchange and the Securities and Exchange Commission, and each of whom shall be a “Non-Employee Director”, as defined from time to time for purposes of Section 16 of the Securities Exchange Act of 1934 and the rules promulgated thereunder. The Board may designate one or more directors as alternate members of the Committee who may replace any absent or disqualified member at any meeting of the Committee. The Committee may issue rules and regulations for administration of the Plan. It shall meet at such times and places as it may determine. A
majority of the members of the Committee shall constitute a quorum.

(b) Subject to the terms of the Plan and applicable law, the Committee shall have full power and authority to: (i) designate Participants; (ii) determine the type or types of Awards (including Substitute Awards) to be granted to each Participant under the Plan; (iii) determine the number of Shares to be covered by (or with respect to which payments, rights, or other matters are to be calculated in connection with) Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to what extent, and under what circumstances Awards may be settled or exercised in cash, Shares, other securities, other Awards, or other property, or canceled, forfeited or suspended, and the method or methods by which Awards may be settled, exercised, canceled, forfeited or suspended; (vi) determine whether, to what extent, and under what circumstances cash, Shares, other securities, other
Awards, other property, and other amounts payable with respect to an Award under the Plan shall be deferred either automatically or at the election of the holder thereof or of the Committee; (vii) interpret and administer the Plan and any instrument or agreement relating to, or Award made under, the Plan; (viii) establish, amend, suspend or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; (ix) determine whether and to what extent Awards should comply or continue to comply with any requirement of statute or regulation; and (x) make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan.  Notwithstanding the foregoing, the Plan will be interpreted and 

 

	
             
 	
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administered by the Committee in a manner that is consistent with the requirements of Code Section 409A to allow for tax deferral thereunder, and the Committee shall take no action hereunder that would result in a violation of Code Section 409A.

(c) All decisions of the Committee shall be final, conclusive and binding upon all parties, including the Company, the stockholders and the Participants.

Section 5. Shares Available For Awards.

(a) The number of Shares available for issuance under the Plan is 18,000,000 shares, subject to adjustment as provided below.  Notwithstanding the foregoing and subject to adjustment as provided in Section 5(e), (i) no Participant may receive Options and Stock Appreciation Rights under the Plan in any calendar year that relate to more than 250,000 Shares, (ii) the maximum number of Shares with respect to which unrestricted Awards (either as to vesting, performance or otherwise) may be made to employees under the Plan is 450,000 Shares, and (iii) the maximum number of Shares that may be issued with respect to any Awards granted on or after February 3, 2008, other than Awards of Options or Stock Appreciation Rights, shall be 2,000,000.

(b) If, after the effective date of the Plan, any Shares covered by an Award other than a Substitute Award, or to which such an Award relates, are forfeited, or if such an Award otherwise terminates without the delivery of Shares or of other consideration, then the Shares covered by such Award, or to which such Award relates, to the extent of any such forfeiture or termination, shall again be, or shall become, available for issuance under the Plan, except as otherwise provided in Section 5(f).

(c) In the event that any Option or other Award granted hereunder (other than a Substitute Award) is exercised through the delivery of Shares, or in the event that withholding tax liabilities arising from such Option or Award are satisfied by the withholding of Shares by the Company, the number of Shares available for Awards under the Plan shall be increased by the number of Shares so surrendered or withheld.  Notwithstanding the foregoing, this Section 5(c) will not apply to any such surrender or withholding of Shares occurring on or after November 21, 2006.

(d) Any Shares delivered pursuant to an Award may consist, in whole or in part, of authorized and unissued Shares or of treasury Shares.

(e) In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company, or other similar corporate transaction or event affects the Shares such that an adjustment is required in order to preserve the value of issued and outstanding Awards and to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type of Shares (or other securities or property) which thereafter may be made the
subject of Awards, including the aggregate and individual limits specified in Section 5(a), (ii) the number and type of Shares (or other securities or property) subject to outstanding Awards, and (iii) the grant, purchase, or exercise price with respect to any Award or, if deemed appropriate, make provision for a cash payment to the holder of an outstanding Award; provided, however, that the number of Shares subject to any Award denominated in Shares shall always be a whole number.

 

 

	
             
 	
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(f) Shares underlying Substitute Awards shall not reduce the number of Shares remaining available for issuance under the Plan.

(g) Upon the exercise of any Stock Appreciation Rights, the greater of (i) the number of shares subject to the Stock Appreciation Rights so exercised, and (ii) the number of Shares, if any, that are issued in connection with such exercise, shall be deducted from the number of Shares available for issuance under the Plan.

Section 6. Options and Stock Appreciation Rights.

The Committee is hereby authorized to grant Options and Stock Appreciation Rights to Participants with the following terms and conditions and with such additional terms and conditions, in either case not inconsistent with the provisions of the Plan, as the Committee shall determine:

(a) The exercise price per Share under an Option or Stock Appreciation Right shall be determined by the Committee; provided, however, that, except in the case of Substitute Awards, such exercise price shall not be less than the Fair Market Value of a Share on the date of grant of such Option or Stock Appreciation Right.  The exercise price of a Substitute Award may be less than the Fair Market Value of a Share on the date of grant to the extent necessary for the value of Substitute Award to be substantially equivalent to the value of the award with respect to which the Substitute Award is issued, as determined by the Committee.  

(b) The term of each Option and Stock Appreciation Right shall be fixed by the Committee but shall not exceed 10 years from the date of grant thereof.

(c) The Committee shall determine the time or times at which an Option or Stock Appreciation Right may be exercised in whole or in part, and, with respect to Options, the method or methods by which, and the form or forms, including, without limitation, cash, Shares, other Awards, or other property, or any combination thereof, having a Fair Market Value on the exercise date equal to the relevant exercise price, in which, payment of the exercise price with respect thereto may be made or deemed to have been made.

(d) The terms of any Incentive Stock Option granted under the Plan shall comply in all respects with the provisions of Section 422 of the Code, or any successor provision thereto, and any regulations promulgated thereunder.

(e) Section 10 sets forth certain additional provisions that shall apply to Options and Stock Appreciation Rights.

Section 7. Restricted Stock And Restricted Stock Units.

(a) The Committee is hereby authorized to grant Awards of Restricted Stock and Restricted Stock Units to Participants.

(b) Shares of Restricted Stock and Restricted Stock Units shall be subject to such restrictions as the Committee may impose (including, without limitation, any limitation on the right to vote a Share of Restricted Stock or the right to receive any dividend or other right or property), which restrictions may lapse separately or in combination at such time or times, in such installments or otherwise, as the Committee may deem appropriate; provided, that if the vesting conditions applicable to an Award of Restricted Stock or Restricted Stock Units to an employee of the Company relate exclusively to the passage of time and continued employment, such time period shall consist of not less than thirty-six (36) months.  In the event the vesting of 

 

	
             
 	
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any Award of Restricted Stock is subject to the achievement of performance goals, the performance period relating to such Award shall be at least twelve (12) months.  Any Award of Restricted Stock Units for which vesting is conditioned upon the achievement of performance goals shall be considered an award of Performance Units under Section 8.

(c) Any share of Restricted Stock granted under the Plan may be evidenced in such manner as the Committee may deem appropriate including, without limitation, book-entry registration or issuance of a stock certificate or certificates. In the event any stock certificate is issued in respect of shares of Restricted Stock granted under the Plan, such certificate shall be registered in the name of the Participant and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock.

(d) Upon a Participant’s (i) Separation from Service on account of Retirement, death, Disability or involuntary termination without Cause, any and all remaining restrictions with respect to Shares of Restricted Stock granted to the Participant shall lapse, and (ii) voluntary termination or involuntary termination with Cause, all Shares of Restricted Stock held by the Participant shall be forfeited as of the date of termination.    

(e)  Notwithstanding anything contained herein to the contrary, upon a Participant’s:

            (i) Separation from Service on account of Retirement, involuntary termination without Cause, or Disability any and all remaining restrictions with respect to Restricted Stock Units granted to the Participant shall lapse and the Participant shall receive any amounts otherwise payable with respect to such Restricted Stock Units as soon as administratively practicable thereafter, except that, for amounts subject to Code Section 409A, in the case of a Participant who is a Specified Employee, the payment of such amounts that are made on account of the Specified Employee’s Separation from Service shall be made upon the earlier of (a) the first day of the seventh month following the Participant’s Separation from Service (without regard to whether the Participant is reemployed on that date) or (B) death; 

            (ii) death, any and all remaining restrictions with respect to Restricted Stock Units granted to the Participant shall lapse and the Participant’s beneficiary shall receive any amounts otherwise payable with respect to such Restricted Stock Units as soon as administratively practicable thereafter; and 

            (iii) voluntary termination or involuntary termination with Cause, all Restricted Stock Units held by the Participant shall be forfeited as of the date of termination.  

Section 8. Performance Units.

(a) The Committee is hereby authorized to grant Performance Units to Participants.

(b) Subject to the terms of the Plan, a Performance Unit granted under the Plan (i) may be denominated or payable in cash, Shares (including, without limitation, Restricted Stock), other securities, other Awards, or other property and (ii) shall confer on the holder thereof rights valued as determined by the Committee and payable to, or exercisable by, the holder of the Performance Unit, in whole or in part, upon the achievement of such performance goals during such performance periods as the Committee shall establish. Subject to the terms of the Plan, the performance goals to be achieved during any performance period, the length of any performance period, the amount of any Performance Unit granted and the amount of any payment or transfer to be made pursuant to any Performance Unit shall be determined by the Committee; provided, 

 

	
             
 	
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that the performance period relating to any Award of Performance Units shall be at least twelve (12) months.

(c) Notwithstanding anything contained herein to the contrary, upon a Participant’s:

(i) Separation from Service on account of Retirement or involuntary termination without Cause prior to the expiration of any performance period applicable to a Performance Unit granted to the Participant, the Participant shall be entitled to receive, following the expiration of such performance period, a pro-rata portion of any amounts otherwise payable with respect to, or a pro-rata right to exercise, the Performance Unit; 

(ii) death or Disability prior to the expiration of any performance period applicable to a Performance Unit granted to the Participant, the Participant or the Participant’s beneficiary shall receive upon such event a partial payment with respect to, or a partial right to exercise, such Performance Unit as determined by the Committee in its discretion; and 

(iii) voluntary termination or involuntary termination with Cause, all Performance Units held by the Participant shall be canceled as of the date of termination.  

Section 9. Other Stock-Based Awards.

The Committee is hereby authorized to grant to Participants such other Awards (including, without limitation, rights to dividends and dividend equivalents) that are denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to, Shares (including, without limitation, securities convertible into Shares) as are deemed by the Committee to be consistent with the purposes of the Plan (provided that no rights to dividends and dividend equivalents shall be granted in tandem with an Award of Options or Stock Appreciation Rights).  Subject to the terms of the Plan, the Committee shall determine the terms and conditions of such Awards.  Shares or other securities delivered pursuant to a purchase right granted under this Section 9 shall be purchased for such consideration, which may be paid by such method or methods and in such form or forms, including,
without limitation, cash, Shares, other securities, other Awards, or other property, or any combination thereof, as the Committee shall determine, the value of which consideration, as established by the Committee, shall, except in the case of Substitute Awards, not be less than the Fair Market Value of such Shares or other securities as of the date such purchase right is granted.  Additional terms applicable to certain Other Stock-Based Awards are set forth in Section 10.  To the extent that any Other Stock-Based Awards granted by the Committee are subject to Code Section 409A as nonqualified deferred compensation, such Other Stock-Based Awards shall be subject to terms and conditions that comply with the requirements of Code Section 409A to avoid adverse tax consequences under Code Section 409A.

Section 10. Effect Of Termination On Certain Awards.

Except as otherwise provided by the Committee at the time an Option or Stock Appreciation Right is granted or in any amendment thereto, if a Participant ceases to be employed by, or serve as a non-employee director of, the Company or any Affiliate, then:

(a) if termination is for Cause, all Options and Stock Appreciation Rights held by the Participant shall be canceled as of the date of termination;

(b) if termination is voluntary or involuntary without Cause, the Participant may exercise each Option or Stock Appreciation Right held by the Participant within three months after such termination (but not after the expiration date of such Award) to the extent such Award was 

 

	
             
 	
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exercisable pursuant to its terms at the date of termination; provided, however, if the Participant should die within three months after such termination, each Option or Stock Appreciation Right held by the Participant may be exercised by the Participant’s estate, or by any person who acquires the right to exercise by reason of the Participant’s death, at any time within a period of one year after death (but not after the expiration date of the Award) to the extent such Award was exercisable pursuant to its terms at the date of termination;

(c) if termination is (i) by reason of retirement at a time when the Participant is entitled to the current receipt of benefits under any retirement plan maintained by the Company or any Affiliate (or alternatively, in the case of a non-employee director, at a time when the Participant has served for five full years or more and has attained the age of sixty), or (ii) by reason of disability, each Option or Stock Appreciation Right held by the Participant shall, at the date or retirement or disability, become exercisable to the extent of the total number of shares subject to the Option or Stock Appreciation Right, irrespective of the extent to which such Award would otherwise have been exercisable pursuant to the terms of the Award at the date of retirement or disability, and shall otherwise remain in full force and effect in accordance with its terms; 

(d) if termination is by reason of the death of the Participant, each Option or Stock Appreciation Right held by the Participant may be exercised by the Participant’s estate, or by any person who acquires the right to exercise such Award by reason of the Participant’s death, to the extent of the total number of shares subject to the Award, irrespective of the extent to which such Award would have otherwise been exercisable pursuant to the terms of the Award at the date of death, and such Award shall otherwise remain in full force and effect in accordance with its terms.

Section 11. General Provisions Applicable To Awards.

(a) Awards shall be granted for no cash consideration or for such minimal cash consideration as may be required by applicable law. 

(b) Awards may, in the discretion of the Committee, be granted either alone or in addition to or in tandem with any other Award. Awards granted in addition to or in tandem with other Awards may be granted either at the same time as or at a different time from the grant of such other Awards or awards. 

(c) Subject to the terms of the Plan, payments or transfers to be made by the Company upon the grant, exercise or payment of an Award may be made in such form or forms as the Committee shall determine including, without limitation, cash, Shares, other securities, other Awards, or other property, or any combination thereof, and may be made in a single payment or transfer, in installments, or on a deferred basis, in each case in accordance with rules and procedures established by the Committee. Such rules and procedures may include, without limitation, provisions for the payment or crediting of reasonable interest on installment or deferred payments or the grant or crediting of dividend equivalents in respect of installment or deferred payments. Notwithstanding the foregoing, in no event shall the Company extend any loan to any Participant in connection with the exercise of an Award;
provided, however, that nothing contained herein shall prohibit the Company from maintaining or establishing any broker-assisted cashless exercise program.  

(d)  Unless the Committee shall otherwise determine, no Award and no right under any Award shall be assignable, alienable, saleable or transferable by a Participant otherwise than by will or by the laws of descent and distribution.  In no event may an Award be transferred by a 

 

	
             
 	
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Participant for value.  Each Award, and each right under any Award, shall be exercisable during the Participant’s lifetime only by the Participant or, if permissible under applicable law, by the Participant’s guardian or legal representative. The provisions of this paragraph shall not apply to any Award which has been fully exercised, earned or paid, as the case may be, and shall not preclude forfeiture of an Award in accordance with the terms thereof. 

(e) All certificates for Shares or other securities delivered under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such Shares or other securities are then listed, and any applicable Federal or state securities laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 

(f) Every Award (other than an Option or Stock Appreciation Right) to a member of the Executive Group shall, if the Committee intends that such Award should constitute “qualified performance-based compensation” for purposes of Section 162(m) of the Code, include a pre-established formula, such that payment, retention or vesting of the Award is subject to the achievement during a performance period or periods, as determined by the Committee, of a level or levels, as determined by the Committee, of one or more of the following performance measures: (i) Return on Net Assets, (ii) Revenue Growth, (iii) Return on Common Equity, (iv) Total Shareholder Return, (v) Earnings Per Share, (vi) Net Revenue Per Employee (vii) Market Share, (viii) Return on Invested Capital, or (ix) Net Income. For any Award subject to any such pre-established formula, no more than 150,000 Shares can be paid
in satisfaction of such Award to any Participant, subject to adjustment as provided in Section 5(e). Notwithstanding any provision of this Plan to the contrary, the Committee shall not be authorized to increase the amount payable under any Award to which this Section 11(f) applies upon attainment of such pre-established formula. 

(g) Unless specifically provided to the contrary in any Award Agreement, upon a Change in Control, all Awards shall become fully vested and exercisable, and any restrictions applicable to any Award shall automatically lapse.  Notwithstanding the foregoing, any Awards that are otherwise subject to Code Section 409A shall not be distributed or payable upon a Change in Control unless the Change in Control otherwise meets the requirements for a change in the ownership or effective control of the Company or in the ownership of a substantial portion of the assets of the Company within the meaning of Code Section 409A and the regulations and other guidance promulgated thereunder; instead such Awards shall be distributed or payable in accordance with the Award’s applicable terms.  

(h) Non-employee Directors of the Company shall be entitled to defer the receipt of any Shares that may become issuable to them under any Award in accordance with the terms of the 1996 Directors’ Deferral Plan, as the same may be hereinafter amended, or any other plan that may be established by the Company that provides for the deferred receipt of such Shares.

(i) Employees of the Company shall be entitled to defer the receipt of any Shares that may become issuable to them under any Award in accordance with the terms of the Deferred Compensation and Retirement Benefit Restoration Plan, as the same may be hereinafter amended, or any other plan that may be established by the Company that provides for the deferred receipt of such Shares.

Section 12. Amendments And Termination. 

 

 

	
             
 	
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(a) Except to the extent prohibited by applicable law and unless otherwise expressly provided in an Award Agreement or in the Plan, the Board may amend, alter, suspend, discontinue, or terminate the Plan or any portion thereof at any time; provided, however, that no such amendment, alteration, suspension, discontinuation or termination shall be made without (i) shareholder approval (A) if the effect thereof is to increase the number of Shares available for issuance under the Plan or to expand the class of persons eligible to participate in the Plan or (B) if such approval is necessary to comply with any tax or regulatory requirement for which or with which the Board deems it necessary or desirable to qualify or comply or (ii) the consent of the affected Participant, if such action would adversely affect the rights of such Participant under
any outstanding Award. Notwithstanding anything to the contrary herein, the Committee may amend the Plan in such manner as may be necessary to enable the Plan to achieve its stated purposes in any jurisdiction outside the United States in a tax-efficient manner and in compliance with local rules and regulations.  In all events, no termination or amendment shall be made in a manner that is inconsistent with the requirements under Code Section 409A to allow for tax deferral.  

(b) The Committee may waive any conditions or rights under, amend any terms of, or amend, alter, suspend, discontinue or terminate, any Award theretofore granted, prospectively or retroactively, without the consent of any relevant Participant or holder or beneficiary of an Award, provided, however, that no such action shall impair the rights of any affected Participant or holder or beneficiary under any Award theretofore granted under the Plan; and provided further that, except as provided in Section 5(e), no such action shall reduce the exercise price, grant price or purchase price of any Award established at the time of grant thereof and provided further, that the Committee’s authority under this Section 12(b) is limited in the case of Awards
subject to Section 11(f), as set forth in Section 11(f) and provided further, that the Committee may not act under this Section 12(b) in a way that is inconsistent with the requirements under Code Section 409A to allow for tax deferral.  In no event shall an outstanding Option or Stock Appreciation Right be cancelled and replaced with a new Option or Stock Appreciation Right with a lower exercise price, without approval of the Company’s shareholders, except as provided in Section 5(e).

(c) Except as noted in Section 11(f), the Committee shall be authorized to make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of events (including, without limitation, the events described in Section 5(e)) affecting the Company, or the financial statements of the Company, or of changes in applicable laws, regulations or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan. 

(d) Any provision of the Plan or any Award Agreement to the contrary notwithstanding, in connection with a Business Combination, the Committee may cause any Award granted hereunder to be canceled in consideration of a cash payment or alternative Award made to the holder of such canceled Award equal in value to the Fair Market Value of such canceled Award. 

(e) The Committee may correct any defect, supply any omission, or reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall deem desirable to carry the Plan into effect or to otherwise comply with the requirements of Code Section 409A so as to avoid adverse tax consequences under Code Section 409A.

Section 13. Miscellaneous. 

 

 

	
             
 	
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(a) No employee, Participant or other person shall have any claim to be granted any Award under the Plan, and there is no obligation for uniformity of treatment of employees, Participants, or holders or beneficiaries of Awards under the Plan. The terms and conditions of Awards need not be the same with respect to each recipient. 

(b) The Committee may delegate to one or more officers or managers of the Company, or a committee of such officers or managers, the authority, subject to such terms and limitations as the Committee shall determine, to grant Awards to, or to cancel, modify, waive rights with respect to, alter, discontinue, suspend or terminate Awards held by, employees who are not officers or directors of the Company for purposes of Section 16 of the Securities Exchange Act of 1934, as amended; provided, however, that any delegation to management shall conform with the requirements of the corporate law of New Jersey and with the requirements, if any, of the New York Stock Exchange, in either case as in effect from time to time. 

(c) The Company shall be authorized to withhold from any Award granted or any payment due or transfer made under any Award or under the Plan or from any compensation or other amount owing to a Participant the amount (in cash, Shares, other securities, other Awards, or other property) of withholding taxes due in respect of an Award, its exercise, or any payment or transfer under such Award or under the Plan and to take such other action (including, without limitation, providing for elective payment of such amounts in cash, Shares, other securities, other Awards or other property by the Participant) as may be necessary in the opinion of the Company to satisfy all obligations for the payment of such taxes. 

(d) Nothing contained in the Plan shall prevent the Company from adopting or continuing in effect other or additional compensation arrangements, and such arrangements may be either generally applicable or applicable only in specific cases. 

(e) The grant of an Award shall not be construed as giving a Participant the right to be retained in the employ of the Company or any Affiliate. Further, the Company or the applicable Affiliate may at any time dismiss a Participant from employment, free from any liability, or any claim under the Plan, unless otherwise expressly provided in the Plan or in any Award Agreement or in any other agreement binding the parties. The receipt of any Award under the Plan is not intended to confer any rights on the receiving Participant except as set forth in such Award. 

(f) If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal, or unenforceable in any jurisdiction, or as to any person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, person or Award, and the remainder of the Plan and any such Award shall remain in full force and effect. 

(g) Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company and a Participant or any other person. To the extent that any person acquires a right to receive payments from the Company pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company. 

(h) No fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine whether cash, other securities or other property shall be paid or 

 

	
             
 	
            - 13 -
 

 

 

 

transferred in lieu of any fractional Shares, or whether such fractional Shares or any rights thereto shall be canceled, terminated or otherwise eliminated. 

Section 14. Effective Date Of Plan. 

The Plan shall be effective as of the date of its approval by the stockholders of the Company. 

Section 15. Term Of The Plan. 

No Award shall be granted under the Plan after the tenth anniversary of the effective date. However, unless otherwise expressly provided in the Plan or in an applicable Award Agreement, any Award theretofore granted may extend beyond such date, and the authority of the Committee to amend, alter, adjust, suspend, discontinue, or terminate any such Award, or to waive any conditions or rights under any such Award, and the authority of the Board to amend the Plan, shall extend beyond such date.

 

 

 

	
             
 	
            - 14 -EX-10.6

Exhibit 10.6

EXECUTIVE EMPLOYMENT AGREEMENT

Effective May 8 , 2008

(this “Agreement”)

B E T W E E N:

Corel Inc.

(the “Corporation”)

 - and -

Kris Hagerman

(the “Executive”)

     WHEREAS the Corporation wishes to employ the Executive and the Executive wishes to become an
employee of the Corporation;

     AND WHEREAS the Corporation and the Executive agree that it is desirable to enter into this
Agreement to specify the terms and conditions of 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 sufficiency of which is hereby
acknowledged, the Corporation and the Executive agree as follows.

	1.	 	Interpretation

	1.1	 	Definitions. In this Agreement, the following capitalized terms have the following meanings:

	 	(a)	 	“Affiliate” means an affiliated entity and as defined in Ontario Securities
Commission Rule 45-501 and “controlled” has the meaning given in that Rule, as amended
or replaced from time to time, and “affiliated” has a corresponding meaning.
	 
	 	(b)	 	“Base Grant” has the meaning set out in Section 3.4.
	 
	 	(c)	 	“Board” means the board of directors of Corel Corporation.
	 
	 	(d)	 	“EBITDA” has the meaning set out in Section 3.2.
	 
	 	(e)	 	“Plan” means the 2006 Corel Corporation Equity Plan as amended from time to
time.
	 
	 	(f)	 	“Salary” has the meaning set out in Section 3.1.
	 
	 	(g)	 	“Shares” means Class A common shares of the Corporation.
	 
	 	(h)	 	“Term” means the period from the Start Date to the Termination Date.
	 
	 	(i)	 	“Termination Date” means the date set out in Section 2.1 and is the Executive’s
last day of active employment and does not include any period of statutory or
reasonable

 

 

			
	Corel Corporation Executive Employment Agreement
	 	Page 2 of 9

	 	 	 	notice or any period of deemed employment and “terminate” and “terminated”
have corresponding meanings.

	1.2	 	Headings, Sections and Plural. The inclusion of headings in this Agreement is for
convenience of reference only and shall not affect its construction or interpretation.
Throughout this Agreement, whenever required by context, words importing the singular include
the plural and vice versa. In this Agreement, references to “Sections” or to “Schedules” are
references to sections in or schedules to this Agreement, unless expressly stated otherwise.
	 
	1.3	 	Deductions and Withholdings. The payments to the Executive set out in this Agreement are
subject to applicable deductions and withholdings.
	 
	1.4	 	Benefit Contributions and Participation. The Corporation’s contributions to, the Executive’s
participation in, and any conversion of, the group benefit plans as set out in this Agreement
are subject to the terms and conditions of the benefit plans, and changes to or cancellations
of such plans over time, as may be made with such notice to the Executive as is practical in
the circumstances, and in the sole discretion of the Corporation.
	 
	1.5	 	Currency. Unless otherwise indicated, all dollar amounts referred to in this Agreement are
in United States currency.
	 
	1.6	 	Prevailing Agreement. In the event of any inconsistencies between this Agreement and the
Plan, the provisions in this Agreement supersede the Plan to the extent of such
inconsistencies.
	 
	2.	 	Term and Duties
	 
	2.1	 	Start Date and Term. The Corporation agrees to employ the Executive and the Executive agrees
to become employed with the Corporation on the terms and conditions set out in this Agreement
commencing on May 8, 2008 (the “Start Date”). The Executive’s employment ends on the earliest
of: (i) the date his employment is terminated pursuant to this Agreement; (ii) the first
anniversary of the Start Date (unless the parties enter into a written agreement to extend
this date); or (iii) the date a new Chief Executive Officer of the Corporation commences
employment (the “Termination Date”).
	 
	2.2	 	Position. The Executive will serve in an executive capacity as the Interim Chief Executive
Officer of Corel Corporation and in such other capacities as may be agreed upon by the
Corporation and the Executive from time to time.
	 
	2.3	 	Duties. The Executive will perform the duties customarily performed in his position
including, without limitation, regularly reporting his activities and the results thereof to
the Board. The Executive agrees to serve as a director of the Corporation and its Affiliates
if an as requested by the Corporation in good faith and without compensation other than as set
out in Section 3.
	 
	2.4	 	Good Faith. The Executive shall devote his full business time and attention to the affairs
of the Corporation and will use his best efforts, skills and abilities to honestly,
faithfully, diligently and in good faith promote the Corporation’s best interests, and he
shall not have any interests that conflict with those of the Corporation. The Executive shall observe and
abide by the policies of the Corporation in effect from time to time.

 

 

			
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	2.5	 	Third Party Obligations. The Executive represents and warrants that he honestly and
reasonably believes after proper enquiry, that his obligations under this Agreement will not
breach any obligations the Executive owes to third parties, including any of the Executive’s
former employers and the Executive represents and warrants that he has provided to the
Corporation all documents, agreements and correspondence relating to any such obligations and
that at the date hereof, he is not aware of any claims or threatened claims that he has
breached any such obligations in connection with his obligations under this Agreement.
	 
	3.	 	Compensation
	 
	3.1	 	Base Salary. The Corporation agrees to pay the Executive an annual base salary of US
$600,000.00, payable in accordance with the Corporation’s payroll practices in effect from
time to time, subject to annual review and to increase as determined by the Board (“Salary”).
	 
	3.2	 	Discretionary Bonus. The Executive will be eligible to participate in the Corporation’s
annual bonus plan with a target bonus of $400,000 of Salary for the achievement of all
targets. Any bonus payment is subject to achievement by the Executive of the performance
targets established by the Board. The Executive’s bonus targets, linearity and acceleration
will be consistent with those established for other executives of the Corporation. Currently,
the performance targets are based on a combination of revenue targets and target earnings
before interest, tax, depreciation and amortization (“EBITDA”). To be eligible for the bonus
payment, the Executive must have been actively employed throughout the fiscal year in respect
of which his performance was assessed, unless provided otherwise in this Agreement.
Notwithstanding the above, the Executive’s bonus for the period from the Start Date to August
31, 2008 will be paid out at the 100% payout level.
	 
	3.3	 	Share Based Compensation Plan Participation. The Executive will be eligible to participate
in the Plan and such other share based incentive plans or similar plans as may be established
for senior executives by the Corporation. All options granted to the Executive are governed
by the terms and conditions of the Plan, including any restrictions on exercise of options and
any requirements to agree to conditions, restrictions or agreements set out in the Plan,
except as expressly provided otherwise in this Agreement.
	 
	3.4	 	Grant of Options. On the Start Date, the Corporation will grant to the Executive options to
acquire 326,760 Shares (equivalent to 1.25% of the Company) of Corel Corporation (the “Base
Grant”), subject to the terms and conditions set out in this Agreement and the Plan. The Base
Grant of options will have an exercise price of equal to fair market value as at the Start
Date. The Base Grant of options will be exercisable as to 8.33% on and after the end of each
month after the Start Date.
	 
	3.5	 	Payments for Distributions on Base Grant of Options. If dividends or other distributions are
paid on Shares of the Corporation at a time when the Executive holds unexercised options under
the Base Grant of options, the Corporation will provide the Executive with a payment
equivalent to distributions the Executive would have been eligible to receive had the Base
Grant of options been exercised.
	 
	4.	 	Expenses, Benefits and Vacation
	 
	4.1	 	General Expenses. The Corporation will reimburse the Executive for his reasonable and
approved business expenses, including travel expenses, incurred by him in connection with the
performance of his duties under this Agreement, upon providing appropriate receipts

 

 

			
	Corel Corporation Executive Employment Agreement
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	 	 	satisfactory to the Corporation and in accordance with the Corporation’s policies in effect
from time to time.
	 
	4.2	 	Benefit Plans. The Executive will be eligible to participate in the group benefit plans
available to employees of the Corporation from time to time, subject to Section 1.4. To the
extent permitted by the insurers, the Corporation will request the waiver of the waiting
periods for participating in the benefit plans, subject to the Executive’s pre-existing
conditions.
	 
	4.3	 	Vacation. The Executive will be entitled to four weeks of vacation time per year to be taken
at times that are consistent with the business interests of the Corporation, and in accordance
with the Corporation’s vacation policies. The Executive may not carry forward vacation time
to subsequent vacation years except to the extent required by law.
	 
	5.	 	Termination
	 
	5.1	 	Termination by Executive. The Executive may terminate his employment with the Corporation at
any time by providing the Corporation with one month’s notice in writing. If, upon receipt of
the Executive’s resignation, the Corporation terminates the Executive’s employment before the
date the resignation was to be effective, the Corporation will, in full satisfaction of its
obligations to the Executive: (a) pay the Executive’s Salary and vacation pay accrued until
the date the resignation was to be effective; (b) reimburse the outstanding expenses properly
incurred by the Executive until the date his employment ceases; (c) continue its contributions
to the group benefit plans until the date the resignation was to be effective, subject to
Section 1.4; and (d) pay the Executive a bonus pro-rated to the date his employment ceases (in
the event that employment ceases other than at the end of a fiscal quarter or year end, any
bonus component that is dependent on a target achievement measured at a fiscal quarter or year
end shall be calculated at the 100% payout level pro-rated for the applicable period).
	 
	5.2	 	Termination by Corporation for Cause. The Corporation may terminate the Executive’s
employment at any time with cause and without prior notice or any further obligations by the
Corporation, and the Executive will be ineligible for any bonus or pro-rated bonus payment.
On the termination of the Executive’s employment for cause, the Corporation will, in full
satisfaction of its obligations to the Executive, pay the Executive’s Salary and vacation pay
accrued until the Termination Date, and reimburse the outstanding expenses properly incurred
by the Executive until the Termination Date.
	 
	5.3	 	Termination by Corporation without Cause or at the End of the Term. The Corporation may
terminate the Executive’s employment at any time, without cause on providing written
notification; the Executive’s employment will terminate automatically on the first anniversary
of the Start Date; and the Executive’s employment will terminate automatically on the
appointment of a Chief Executive Officer. In any such case the Corporation will: (a) pay the
Executive’s Salary and vacation pay accrued until the Termination Date; (b) reimburse
outstanding expenses properly incurred by the Executive until the Termination Date; and (c)
pay the Executive a bonus pro-rated to the date his employment ceases (in the event that
employment ceases other than at the end of a fiscal quarter or year end, any bonus component
that is dependent on a target achievement measured at a fiscal quarter or year end shall be
calculated at the 100% payout level pro-rated for the applicable period). All vested stock
options as at the Termination Date shall expire six (6) months following the Termination
Date. All unvested stock options as at the Termination Date shall expire at the close of
business on the Termination Date.

 

 

			
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	5.4	 	Death of the Executive. Upon the death of the Executive, this Agreement automatically
terminates without notice or any further obligations by the Corporation. Upon the death of
the Executive, the Corporation will, in full satisfaction of its obligations: (a) pay the
outstanding accrued salary and vacation pay accrued until the date of the Executive’s death;
(b) reimburse the expenses properly incurred by the Executive up to the date of his death; (c)
pay a bonus pro-rated to the date of the Executive’s death (in the event that such occurs
other than at the end of a fiscal quarter or year end, any bonus component that is dependent
on a target achievement measured at a fiscal quarter or year end shall be calculated at the
100% payout level pro-rated for the applicable period); and (d) the share based compensation
awarded to the Executive shall, to the extent not otherwise vested, vest so that 50% of all
such vested share based compensation shall be vested and such vested share based compensation
shall be exercisable for a period of 90 days following the Executive’s death.
	 
	5.5	 	Consequences of Termination. The termination of the Executive’s employment for any reason,
including resignation and termination with cause and without cause, terminates any officer
positions the Executive may hold with the Corporation or any of its Affiliates and the
Executive agrees to immediately resign as a director of the Corporation and any of its
Affiliates and to sign any documentation necessary to give effect to this Section 5.5.
	 
	5.6	 	Conversion of Benefits on Termination. On the earlier of the termination of Executive’s
participation in the group benefit plans or the cessation of his employment for any reason,
the Executive may be eligible to convert the group insured benefits to private coverage within
30 days, without evidence of insurability. The Executive is responsible for promptly
arranging for any conversion options he may have or obtaining alternate benefits if he chooses
to do so.
	 
	5.7	 	Compliance with Laws. The Executive’s entitlements under this Section 5 are provided in full
satisfaction of the Executive’s entitlements to notice of termination, pay in lieu of notice,
and severance pay, if any, under any applicable laws.
	 
	6.	 	Confidential Information and Return of Property
	 
	6.1	 	Confidentiality Obligation. The Executive covenants and agrees that he shall not, at any
time during his employment with the Corporation or any time thereafter, without the prior
written consent of the Corporation, directly or indirectly, communicate, reveal or disclose,
in any manner, to anyone, or use for any purpose other than in carrying out his duties under
this Agreement in furtherance of the Corporation’s business interests, any confidential or
proprietary information concerning, or learned as a result of his employment with, the
Corporation or its predecessors, successors, Affiliates or related companies including,
without limitation, information concerning their assets, businesses, affairs, pricing, costs,
technical information, financial information, plans or opportunities, manufacturing,
processes, sales and distribution, marketing, research and development, customers, suppliers
or employees.
	 
	6.2	 	Return of Property. Upon ceasing to be employed by the Corporation or upon request of the
Corporation at any time, the Executive shall return to the Corporation all property belonging
to the Corporation or its predecessors, successors, Affiliates or related companies including,
without limitation, all documents in any format whatsoever including electronic format, that
is in his possession or control, and the Executive agrees not to retain any copies of such
property in any format whatsoever including electronic format.

 

 

			
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	7.	 	Non-Solicitation
	 
	7.1	 	Employee and Contractor Non-Solicitation. The Executive covenants and agrees that, while
employed with the Corporation and for 12 months thereafter, the Executive shall not induce or
solicit or attempt to induce or solicit, or assist any person to induce or solicit any
employee of the Corporation or its Affiliates or any contractor who regularly provides
services to the Corporation or its Affiliates, or assist or encourage any employee of the
Corporation or its Affiliates or any contractor who regular who regularly provides services to
the Corporation or its Affiliates to accept employment or engagement elsewhere that competes
with the business of the Corporation or its Affiliates.
	 
	8.	 	Proprietary and Moral Rights
	 
	8.1	 	Proprietary Rights. The Executive recognizes the Corporation’s proprietary rights in the
tangible and intangible property of the Corporation and acknowledges that Executive has not
obtained or acquired and shall not obtain or acquire any rights, title or interest, in any of
the property of the Corporation or its predecessors, successors, Affiliates or related
companies including, without limitation, any writing, communications, manuals, documents,
instruments, contracts, agreements, files, literature, data, technical information, know-how,
secrets, formulas, products, methods, procedures, processes, devices, apparatuses, trademarks,
trade names, trade styles, service marks, logos, copyrights, patents, inventions, discoveries,
whether or not protected by patent or copyright, which the Executive may have conceived or
made, or may conceive or make, either alone or in conjunction with others, and related to the
business of the Corporation or its predecessors, successors, Affiliates or related companies
(collectively, the “Materials”). The Executive agrees that during his employment with the
Corporation and any time afterwards all Materials shall be the sole and exclusive property of
the Corporation.
	 
	8.2	 	Waiver of Moral Rights. The Executive irrevocably waives to the greatest extent permitted by
law, for the benefit of and in favour of the Corporation, all the Executive’s moral rights
whatsoever in the Materials including, without limitation, any right to the integrity of any
Materials, any right to be associated with any Materials and any right to restrict or prevent
the modification or use of any Materials in any way whatsoever. The Executive irrevocably
transfers to the Corporation all rights to restrict any violations of moral rights in any of
the Materials including, without limitation, any distortion, mutilation or other modification.
	 
	8.3	 	Assignment of Rights. If the Executive has acquired or does acquire, however, any right,
title or interest in any of the Materials or in any intellectual property rights relating to
the Materials, the Executive irrevocably assigns all such right, title and interest throughout
the world exclusively to the Corporation including, without limitation, any renewals,
extensions or reversions relating thereto and any right to bring an action or to collect
compensation for past infringements.
	 
	8.4	 	Registrations. The Corporation will have the exclusive right to obtain copyright
registrations, letters patent, industrial design registrations, trade-mark registrations or
any other protection in respect of the Materials and the intellectual property rights relating
to the Materials anywhere in the world. At the expense and request of the Corporation, the
Executive shall, both during and after the Executive’s employment with the Corporation, execute all documents and do all
other acts necessary in order to enable the Corporation to protect its rights in any of the
Materials and the intellectual property rights relating to the Materials.

 

 

			
	Corel Corporation Executive Employment Agreement
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	9.	 	Remedies
	 
	9.1	 	Defences. The Executive agrees that all restrictions in Sections 6, 7 and 8 are necessary
and fundamental to the protection of the business carried on by the Corporation and that all
such restrictions are reasonable and valid, and, to the extent permitted by applicable law,
the Executive waives all defences of the Executive to the strict enforcement thereof by the
Corporation.
	 
	9.2	 	Injunctive Relief. The Executive acknowledges that a breach by the Executive of any of his
obligations in Sections 6, 7 and 8 will result in the Corporation suffering irreparable harm,
which cannot be calculated or fully or adequately compensated by recovery of damages alone.
Accordingly, the Executive agrees that the Corporation shall be entitled to interim and
permanent injunctive relief without proof of actual damages, specific performance and other
equitable remedies, in addition to any other relief to which the Corporation may become
entitled.
	 
	10.	 	Obligations Not Exhaustive
	 
	10.1	 	Fiduciary. The Executive acknowledges that the obligations contained in Sections 6, and 7
are in addition to any obligations that the Executive may now or hereafter owe to the
Corporation, at law, in equity or otherwise. Nothing contained in this Agreement is a waiver,
release or reduction of any fiduciary obligations that the Executive owes to the Corporation.
	 
	11.	 	General
	 
	11.1	 	Survival. Sections 6, 7, 8, and 9, and this Section 11.1 survive the termination of this
Agreement and the Executive’s employment for any reason whatsoever.
	 
	11.2	 	Severability. If any provision of this Agreement is declared void or unenforceable, such
provision shall be deemed severed from this Agreement to the extent of the particular
circumstances giving rise to such declaration, and such provision as it applies to other
persons and circumstances and the remaining terms and conditions of this Agreement shall
remain in full force and effect.
	 
	11.3	 	Entire Agreement. This Agreement, including the attached Schedules and the documents
referenced therein, constitutes the entire agreement between the Corporation and the Executive
on the subject-matter herein and it supersedes all prior agreements and understandings,
whether written or oral. There are no representations, warranties or collateral agreements on
the subject-matter herein that exist outside of this Agreement.
	 
	11.4	 	Amendments. This Agreement may only be amended by written agreement executed by the
Corporation and the Executive. However, changes to the Executive’s position, duties,
vacation, benefits and compensation, over the course of time, do not affect the validity or
enforceability of Sections 5, 6, and 7.
	 
	11.5	 	Governing Law. This Agreement shall be governed by, and construed and interpreted in
accordance with the laws of the State of California. The Corporation and the Executive each
irrevocably attorns to the exclusive jurisdiction of the courts of California and the courts
of California shall have the sole and exclusive jurisdiction to entertain any action arising
under this Agreement.

 

 

			
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	11.6	 	Assignment. The Corporation may assign this Agreement, and it enures to the benefit of the
Corporation, its successors or assigns.
	 
	11.7	 	Independent Legal Advice. The Executive acknowledges that he has been encouraged to obtain
independent legal regarding the execution of this Agreement, and that he has either obtained
such advice or voluntarily chosen not to do so, and hereby waives any objections or claims he
may make resulting from any failure on his part to obtain such advice.
	 
	11.8	 	Waiver. No waiver of any of the provisions of this Agreement shall be effective or binding,
unless made in writing and signed by the party purporting to give the same. No waiver of any
of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provisions, whether or not similar, nor shall such waiver constitute a continuing waiver,
unless expressly stated otherwise.

 

 

			
	Corel Corporation Executive Employment Agreement
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	11.9	 	Effective Date. This Agreement is effective the date it is made.

     IN WITNESS WHEREOF this executive employment agreement has been executed by the Corporation
and the Executive on the dates below.

COREL INC.

Per: /s/ Christopher Difrancesco                                              

Title: Secretary

/s/ Kris Hagerman                                                       

Kris Hagerman

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00152-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00152-of-00352.parquet"}]]