Document:

Amendment 2007-1 to Severance Agreement

 Exhibit 10.6 
 AMENDMENT 2007-1 TO THE 
 SEVERANCE AGREEMENT 
 THIS AMENDMENT 2007-1, dated as of May 2, 2007, is entered into by and between Novell, Inc., a Delaware corporation (the “Company”)
and John Dragoon (the “Executive”). 
 RECITALS 
 WHEREAS, the Executive previously entered into a severance agreement with the Company, dated February 8, 2007, (the “Severance
Agreement”), that sets forth certain compensation and benefits for the Executive in the event the Executive’s service with the Company is terminated; 
 WHEREAS, due to a scrivener’s error, the definition of “Cause” does not fully reflect the mutual agreement between the parties; 
 WHEREAS, the Company and the Executive mutually desire to amend the Severance Agreement to correct the definition of “Cause;” and

 WHEREAS, Section 19 of the Severance Agreement provides that the Company and the Executive may amend the Severance Agreement
by written agreement. 
 NOW, THEREFORE, the Company and the Executive hereby agree that the Severance Agreement shall be amended as
follows: 
 1. The definition of “Cause” under Section 1 of the Severance Agreement is hereby deleted in its entirety and
replaced with the following complete definition: 
 “Cause:’ 
 (i) For purposes of Involuntary Termination Prior to a Change in Control, means a determination by the Company’s Chief Executive
Officer or Senior Vice President-People, in either case with legal advice and consultation of the Company’s Senior Vice President – General Counsel, acting in his authority as the Company’s general counsel, that the Executive has
committed any of the following acts: 
 (A) continued violations of the Executive’s obligations which are demonstrably
willful or deliberate on the Executive’s part after there has been delivered to the Executive a written demand for performance from the Company which describes the basis for the Company’s belief that the Executive has willfully or
deliberately violated his obligations to the Company; 
 (B) engaging in willful misconduct which is injurious to the Company
or any Subsidiary; 

 (C) committing a felony, an act of fraud against or the misappropriation of property
belonging to the Company or any Subsidiary: 
 (D) breaching, in any material respect, terms of any confidentiality or
proprietary information agreement between the Executive and the Company; or 
 (E) committing a material violation of the
Company’s Code of Business Ethics or Employee Conduct and Standards Policy, as either or both are in effect from time to time by the Company. 
 (ii) For purposes of Involuntary Termination Associated With a Change in Control, means a determination by the Board that the Executive has committed any of the following acts: 
 (A) the Executive has been convicted of a criminal violation involving fraud, embezzlement or theft in connection with his duties or in
the course of his employment with the Company or any Subsidiary; or 
 (B) the Executive has committed intentional wrongful
disclosure of secret processes or confidential information of the Company or any Subsidiary; and any such act has been demonstrably and materially harmful to the Company. For purposes of this subparagraph (B), no act on the part of the Executive
will be deemed “intentional” if it was due primarily to an error in judgment or negligence, but will be deemed “intentional” if done by the Executive not in good faith and without reasonable belief that the Executive’s
action was in the best interest of the Company. 
 Notwithstanding the foregoing, the Executive will not be deemed to have
been terminated for “Cause” under this clause (ii) unless and until there has been delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of not less than three-quarters of the members of the Board then
in office at a meeting of the Board, finding that, in the good faith opinion of the Board, the Executive has committed an act constituting “Cause,” as herein defined, and specifying the particulars thereof in detail. Prior to any such
determination, the Executive shall be provided with reasonable notice of such pending determination and the Executive, together with his counsel (if the Executive chooses to have counsel present at such meeting), shall be provided with the
opportunity to be heard before the Board makes any such determination. Nothing herein will limit the right of the Executive or his beneficiaries to contest the validity or propriety of any such determination.” 
 2. In all respects not modified by this Amendment 2007-1, the Severance Agreement is hereby ratified and confirmed. 
  

 2 

 IN WITNESS WHEREOF, the Company and the Executive agree to the terms of the foregoing Amendment
2007-1, effective as of May 2, 2007. 
  

			
	NOVELL, INC.
		
	By:	 	/s/ Ronald W. Hovsepian
	Name:	 	Ronald W. Hovsepian
	Title:	 	President and Chief Executive Officer

  

	
	EXECUTIVE
	
	/s/ John Dragoon
	John Dragoon
	Senior Vice President and Chief Marketing Officer

  

 3Amendment to Severance Agreement

 Exhibit 10.7 
 Page 1 
  

			
	To:	  	John Dragoon
	From:	  	Alan Friedman
	Date:	  	September 15, 2008
	Re:	  	Personal and Confidential: Effect of IRC §409A and S105(h) on Your Severance Agreement

 Background – 409A in general and potential penalties: 
 As you have heard, Section 409A of the Internal Revenue Code prescribes detailed rules that focus on when “deferred compensation” can be paid.
“Deferred Compensation” is defined by the Tax Code to include any contractual promise made in one year to make a payment in a later year, such as any payments you are eligible to receive under your Severance Agreement. Section 409A
was added to the Tax Code in 2004 but will become fully effective as of January 1, 2009, so we are taking steps to align Novell’s plans and agreements that are subject to section 409A with the Tax Code requirements. 
 The Tax Code imposes a 20% federal tax penalty for violations of 409A, in addition to imposing federal income tax at the regular rate (which together can lead to a
combined rate as high as 55%), plus potential penalty and interest charges. Certain states also impose penalties for failing to comply with 409A (e.g., California), which are in addition to the increased taxable income subject to state and local
taxation that results from noncompliance under federal law. 
 Effect on your Severance Agreement: 
 Several exceptions under 409A protect the various payments you are eligible to receive during your employment, but in order for your Severance Agreement to comply with
409A, you will need to choose Option One, which modifies its terms by imposing a six-month delay on most of the cash severance payments you are eligible to receive following termination. 
 If you choose not to modify your agreement by selecting Option Two, the severance payments you are eligible to receive bear a significant risk of subjecting you
to the adverse tax consequences described above. While this option is present to give you the flexibility to leave your Agreement as is and take on the risk of a 20%+ tax penalty, this option is not recommended and you will be required to indemnify
Novell for any consequential liability or losses to which it may be subjected. 
 Impact on Health Insurance Coverage: 
 Please also understand that Section 105(h) of the Tax Code requires that, because Novell’s plan is self-insured, continued health coverage following termination
will result in significantly adverse tax consequences to highly-compensated employees, unless paid for with after-tax dollars. Therefore, to make your continued health coverage provisions compliant with both Sections 409A and 105(h), we have also
specified a modified process for providing the health benefits coverage under your Severance Agreement. This change does not impact the extent or duration of your continued health benefits coverage. 
 As you review this, feel free to consult with your financial advisor(s) or me for more information about 409A or these changes. In order for us to meet a deadline
imposed by the Tax Code, we need you to select on option on the next page, initial each page, sign this document and return it to me by no later than December 15, 2008. 
   JD   
 Initial 

 Page 2 
 [Selected] Option 1 <  Should any event occur that triggers my right to any payment or benefit described in my Severance with Novell, Inc. dated 02/08/2007, as amended effective 05/02/2007 (the
“Agreement”), I elect to have all cash payments described in the Agreement deferred for 6 months following the date I am eligible to receive such payments to the extent that such delay is required under Section 409A. My right to
continued health insurance following the termination of my employment, as set forth in the Agreement, will be modified so as to require that I will pay for the cost of such coverage using after-tax dollars, and will be reimbursed for such payment by
Novell. I understand and acknowledge that these revisions are being included in order to bring the Agreement into compliance with Internal Revenue Code Sections 409A and 105(h). 
 Option 2 < I do not agree to any modifications to my Severance Agreement with Novell, Inc. dated 02/08/2007, as amended effective 05/02/2007 (the “Agreement”) that will bring
it into compliance with Internal Revenue Code Section 409A and 105(h). I agree to accept all responsibility and consequences associated with a determination that the payments I am eligible to receive pursuant to my severance agreement are
subject to the 20% tax penalty imposed by Section 409A and other applicable tax penalty. I further agree to indemnify the Company for any liability or loss associated with my selection of this option. 
 The option I have selected above shall be an amendment to and become part of the Agreement. Except as specified above, the remaining terms, conditions and provisions of
such agreement will remain unchanged. 
  

	
	
	/s/ John Dragoon
	Signature
	John Dragoon
	
	9/15/08
	Date

   JD   
 Initial

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