Document:

exv4w15

Exhibit 4.15

Private & Confidential

February 22, 2002

Mr. Marcos A. Riano

1786
Radway Terrace

Ottawa, ON

K1C 5K2

Dear Mr. Riano:

This letter will confirm the offer by Offshore Charts Ltd. (the “Company”) of employment to you
for the position of Manager of Offshore Charts Ltd. This offer will remain open for your
acceptance until one minute before midnight on Wednesday, February 27, 2002. The terms are as
follows:

	1.	 	Start Date: Your start date will be Monday, March 25, 2002 or a date that is
acceptable to both parties.
	 
	2.	 	Office: You will be employed in the position noted above, located in North
Vancouver, British Columbia, Canada, reporting to the Vice President of Operations
of the Company. You shall devote the whole of your working time, attention and
ability to the business of the Company. You shall not, without written consent of the
Company, accept other employment, including part time employment. Your
employment as noted above, subject to the Termination Clause listed below, will
continue at the discretion of the Company.
	 
	3.	 	Responsibilities: Your prime responsibilities will be to fulfill the duties of Manager
of Offshore Charts Ltd. as set forth by your supervisor. There may be other duties and
special projects as deemed necessary from time to time.
	 
	4.	 	Salary: You will be paid a gross annual salary of $75,000 per year. Your
compensation will be reviewed from time to time by your supervisor.
	 
	5.	 	Sales Commission: You will be paid a commission equal to 2% on all sales that you
have completed for Offshore Charts Ltd. This payment will be consistent with the
approved commission policy of the Company.
	 
	6.	 	Relocation: You will be eligible for a relocation allowance up to $25,000.
Reimbursement will be made upon receipt of invoices. The condition for this
allowance is continuous employment with the Company for a period of two years.

Electronic Chart Data & Services

Page 1 of 10

 

	 	 	Should you part with the Company within this period, a prorated amount, based on
six-month increments, must be reimbursed to the Company.
	 
	7.	 	Hours of Work: The generally recognize “normal” business hours of 40 hours per
week, a minimum of 8 hours per day, Monday to Friday inclusive. You can expect,
however, that while we have designated “normal” office hours, this position will
entail the need to work additional hours from time to time to meet the objectives of
the position and overtime will not be paid.
	 
	8.	 	Option Plan: You may receive an option to purchase shares in the capital stock of
Offshore Systems International Ltd. (“OSI”) in such amounts as set out in the
Employees Stock Option Plan and at such prices as OSI’s Board of Directors
determines at their sole and absolute discretion. The options shall be subject to the
applicable rules and policies of the Employee Stock Option Plan and the relevant
Stock Exchanges.
	 
	9.	 	Benefits: Participation in our Employee Benefits Plan is a condition of employment.
The three-month waiting period will be waived, conditional to acceptance from our
benefit carriers.
	 
	10.	 	Vacation: You will be entitled to three weeks of paid vacation per year after one
year of employment to be taken at a time or times acceptable to the Company, acting
reasonably, having regard to its operational requirements.
	 
	11.	 	Expenses: You will be reimbursed for all authorized traveling and out-of-pocket
expenses actually, exclusively and necessarily incurred in the course of your duties on
the provision of appropriate receipts.
	 
	12.	 	Termination: If your employment is terminated for reasons other than cause, you
will receive notice or pay in lieu of notice for the “Notice Period”. The term “cause”
in the preceding sentence shall include: any breach of fiduciary duty by you:
persistent inability or unwillingness to fulfill material job requirements: unauthorized
disclosure or use of the Company’s confidential information which has the potential
to be material in its consequences to the Company: any dishonesty: serious
insubordination: or repeated failure to follow responsible directives from the
Company. Also, the Company will, during the Notice Period, continue employer
contributions for those benefit plans for which the benefits insurer will allow benefit
continuation after termination of employment. The Notice Period is eight weeks
during the first year following commencement of this employment contract and one
additional week per year of service. The Company may pay severance in lieu of
Notice.
	 
	13.	 	Proprietary Rights: As a condition of your employment you agree to be bound by
and execute the form of Proprietary Rights Agreement set out in Schedule A.

Electronic Chart Data & Services

Page 2
of 10 

 

 

	14.	 	Governing law and jurisdiction. This agreement shall be governed by and construed in
accordance with the law of the Province of British Columbia and the laws of Canada therein.

If you are in agreement with the terms of this offer, please sign and date one copy and return it
to me.

	 	 	 	 	 
	Yours very truly 

Offshore Charts Ltd.

 	 
	/s/ Kenneth Kirkpatrick
 	 
	Ken Kirkpatrick  	 
	Vice President of Operations 	 
	 

I accept employment on the terms and conditions outlined in this letter.

	 	 	 	 	 	 	 
	/s/ Marcos Riano
 

Employee signature

	 	 
	 	FEB 27, 2002
 

Date
	 	 

Please sign one of the options below:

	 	 	 
	I verify that I met with

__________________________________ on

	 	I have read this agreement and its
attachments, and I hereby waive
independent legal advice.
	 
	 	 
	                    , 2002 and provided
independent legal advice with
respect to the
terms of the
above-noted Employment
Agreement, including all attached
schedules as noted in the
agreement thereof.

	 	/s/ Marcos Riano
 

Employee’s signature
	 
	 	 
	 

Solicitor’s signature
	 	 
	 
	 	 
	 

(name — printed)
	 	 
	 
	 	 
	 

(name of firm — printed)
	 	 

Electronic Chart Data & Services

Page 3
of 10 

 

 

Schedule A

PROPRIETARY RIGHTS AGREEMENT

Whereas I, Marcos Riano, recognize that OFFSHORE SYSTEMS INTERNATIONAL LTD. and its affiliates
including without limitation Offshore Systems International Inc., Offshore Systems Ltd., Offshore
Charts Ltd. (collectively, the “Company”) is engaged in a continuous program of software research
and development and the marketing of software products and computer systems, and that the Company
also provides technical support, consultation, and training services. I also recognize the
importance of protecting the Company’s trade secrets, confidential information, partner and
customer relationships and other proprietary information and related rights acquired through the
Company’s expenditure of time, effort and money.

Therefore, because I wish to be employed by the Company in a capacity in which I will receive
and/or contribute to the Company’s Confidential Information, and in consideration of the salary or
wages I will receive from the Company and for my employment by the Company, I agree to be bound by
the following terms and conditions:

	1.	 	Definitions
	 
	 	 	For the purpose of this Agreement:

	 	(a)	 	“Confidential Information” includes any of the following:

	 	(i)	 	any and all versions of the software and related documentation owned
or marketed by the Company, as well as the software and documentation owned by the
Company’s suppliers and used internally by the Company, including all related
algorithms, concepts, data, designs, flowcharts, ideas, programming techniques,
specifications and source code listings;
	 
	 	(ii)	 	all developments (as defined below):
	 
	 	(iii)	 	information regarding the Company’s business operations, methods and
practices, including marketing strategies, product pricing, margins and hourly rates
for staff, and information regarding the financial affairs of the Company;
	 
	 	(iv)	 	the names of the Company’s clients and the names of the Company’s
business partners and suppliers of computer services and software to the Company, and
the nature of the Company’s relationships with these clients, partners and suppliers.

Electronic Chart Data & Services

Page 4 of 10 

 

 

	 	(v)	 	technical and business information of or regarding the clients of the
Company obtained in order for the Company to provide such clients with training
services and software products and services, including information regarding the
data processing requirements and the business operations, methods and practices
and product and training plan of such clients; an
	 
	 	(vi)	 	any other trade secrets or confidential or proprietary information in
the possession or control of the Company, but Confidential Information does not
include information which is or becomes generally available to the public without
my fault or which I can establish, through written records, was in my possession
prior to its disclosure to me as a result of my work for the Company.

	 	(b)	 	“Developments”: include all

	 	(i)	 	software, documentation, data, designs, reports, flowcharts,
training kits and other training materials, trade-marks, specifications and source
code listings, and any related works, including any enhancements, modifications,
or additions to the software products owned, marketed or used by the Company, and
	 
	 	(ii)	 	inventions, devices, discoveries, concepts, ideas, algorithms,
formulae, know-how, processes, techniques, systems and improvements, whether
patentable or not developed, created, generated or reduced to practice by me, alone
or jointly with others, during my employment with the Company or which result from
tasks assigned to me by the Company or which result from the use of the premises or
property (including equipment, supplies or Confidential Information) owned, leased or
licensed by the Company.

	2.	 	Non-Disclosure of Confidential Information
	 
	 	 	At all times during and subsequent to the termination of my employment with the Company, I
shall keep in strictest confidence and trust the Confidential Information. I shall take all
necessary precautions against unauthorized disclosure of the Confidential Information, and I
shall not directly or indirectly disclose, allow access to, transmit or transfer the
Confidential Information to a third party, nor shall I copy or reproduce the Confidential
Information except as may be reasonably required for me to perform my duties for the Company.
	 
	3.	 	Restricted Use of Confidential Information

	 	(a)	 	At all times during and subsequent to the termination of my employment with
the Company, I shall not use the Confidential Information in any

Electronic Chart Data & Services

Page 5 of 10 

 

 

	 	 	 	manner except as reasonably required for me to perform my duties for
the Company.
	 
	 	(b)	 	Without limiting my obligations under subsection 3(a), I agree that at all
times during and subsequent to the termination of my employment with the
Company, I shall not use or take advantage of the Confidential Information
for creating, maintaining or marketing, or aiding in the creation, maintenance
or marketing, of any software which is competitive with any software owned
or marketed by the Company.
	 
	 	(c)	 	Upon the request of the Company, and in any event upon the termination
of
my employment with the Company, I shall immediately return to the
Company all materials, including all copies in whatever form, containing the
Confidential Information which are in my possession or under my control.

	4.	 	Ownership of Confidential Information

	 	(a)	 	I acknowledge and agree that I shall not acquire any right, title or
interest in
or to the Confidential Information.
	 
	 	(b)	 	I agree to make full disclosure to the Company of each Development
promptly after its creation. I hereby assign and transfer to the Company, and
agree that the Company shall be the exclusive owner of, all of my right, title
and interest to each Development throughout the world, including all trade
secrets, patent rights, copyrights and all other intellectual property rights
therein. I further agree to cooperate fully at all times during and subsequent
to my employment with respect to signing further documents and doing such
acts and other things reasonably requested by the Company to confirm such
transfer of ownership of rights, including intellectual property rights,
effective at or after the time the Development is created and to obtain patents
or copyrights or the like covering the Developments. I agree that the
obligations in this clause (b) shall continue beyond the termination of my
employment with the Company with respect to Developments created during
my employment with the Company.
	 
	 	(c)	 	I agree that the Company, its assignees and their licensees are not
required to
designate me as the author of any Developments. I hereby waive in whole all
moral rights which I may have in the Developments, including the right to
the integrity of the Developments, the right to be associated with the
Developments, the right to restrain or claim damages for any distortion,
mutilation or other modification of the Developments, and the right to
restrain use or reproduction of the Developments in any context and in
connection with any service, cause or institution.

Electronic Chart Data & Services

Page 6 of 10 

 

 

	 	(d)	 	Listed in Appendix I to this Agreement are those works and inventions
created by me, alone or jointly with others, prior to my employment by the Company,
which are exempt from the operation of this Agreement. If nothing is listed in
Appendix I, I represent that I have made no such works or inventions as of the date of
this Agreement.

	5.	 	Protection of Computer Systems and Software
	 
	 	 	I agree to take all necessary precautions to protect the computer systems and software
of the Company and of the suppliers and clients of the Company.
	 
	6.	 	Non-Competition
	 
	 	 	I agree that while I am employed by the Company, and for twelve months following the
termination of my employment with the company, without the prior written approval of the
Board of Directors of the Company, I will not become engaged, directly or indirectly as an
employee, consultant, partner, principal, agent, proprietor, shareholder (other than a
holding of shares listed on a stock exchange that does not exceed 2% of the outstanding
shares so listed) or advisor, in a business anywhere in the world where the Company marketed
its products or services during the period of my employment with the Company; that develops
or markets software competitive with the software owned or marketed by the Company, or
provides consulting, maintenance, support or training services that are competitive with the
consulting, maintenance, support or training services provided by the Company.
	 
	7.	 	Non-Solicitation of Clients
	 
	 	 	I agree that while I am employed by the Company, and for twelve months immediately following
the termination of my employment with the company, I shall not, directly or indirectly,
contact or solicit any Clients of the Company for the purpose of selling or supplying to these
Clients or the Company any products or services which are competitive with the products or
services sold or supplied by the Company at the time of my termination. The term “Client of
the Company” in the preceding sentence means any business or organization that:
	 
	 	 	(a) was a client of the Company at the time of the termination of my employment
with the Company; or
	 
	 	 	(b) became a client of the Company within six months after the termination of my
employment with the Company if I was involved with the marketing effort in
respect of such client prior to the termination of my employment with the
Company.

Electronic Chart Data & Services

Page 7 of 10 

 

 

	8.	 	Non-Solicitation of Employees
	 
	 	 	I agree that while I am employed by the Company, and for 12 months after the termination of
my employment with the Company, I shall not directly or indirectly hire any employees of or
consultants or contractors to the Company nor shall I solicit or induce or attempt to induce
any persons who were employees of or consultants to the Company at the time of such
termination or during the 90 days immediately preceding such termination, to terminate their
employment or consulting agreement with the Company, without the prior consent of the
Company.
	 
	9.	 	Confidentiality
	 
	 	 	Upon ceasing to be employed by the Company for whatever reason, I will immediately return to
the Company all client lists, records and other material containing confidential information
relating to the business and products of the Company.
	 
	 	 	I acknowledge and agree that such material is for the benefit of the Company and I agree to
keep it confidential both during and at any and all times after my employment with the
Company, all such information or property which related to the Company’s business and
products.
	 
	10.	 	Reasonableness of Non-Competition and Non-Solicitation Obligations
	 
	 	 	I confirm that the obligations in Sections 6, 7 and 8 are fair and reasonable given that,
among other reasons,
	 
	 	 	(i) the sustained contact I will have with the clients of the Company will expose me to
Confidential Information regarding the particular requirements of these clients and the
Company’s unique methods of satisfying the needs of these clients, all of which I agree not to
act upon to the detriment of the Company; and/or
	 
	 	 	(ii) I will be performing important development work on the software owned or marketed by
the Company, and I agree that the obligations in Sections 6, 7 and 8, together with my other
obligations under this Agreement, are reasonably necessary for the protection of the Company’s
proprietary interests. I further confirm that the geographic scope of the obligation in
Section 6 is reasonable given the international nature of the market for the products and
services of the Company. I also agree that the obligations in Sections 6, 7 and 8 are in
addition to the non-disclosure and other obligations provided elsewhere in this Agreement. I
also acknowledge that my obligations contained in this Agreement will not preclude me from
becoming gainfully directly employed in the computer software industry or applicable product
training following a termination of my employment with the Company given my general knowledge
and experience in the computer industry.

Electronic Chart Data & Services

Page 8 of 10 

 

 

	11.	 	Non-Conflicting Obligations
	 
	 	 	(a) I acknowledge and represent to the Company that my performance as an
employee of the Company shall not breach any agreement or other obligation to
keep confidential the proprietary information of any prior employer of mine or any
other third party. I further acknowledge and represent that I am not bound by any
agreement or obligation with any third party which conflicts with any of my
obligations under this Agreement.
	 
	 	 	(b) I represent and agree that I will not bring to the Company, and shall not use
in the performance of my work with the Company, any trade secrets, confidential
information and other proprietary information of any prior employer of mine or any
other third party. I represent and agree that in my work creating Developments I
will not knowingly infringe the intellectual property rights, including copyright, of
any third party.
	 
	 	 	(c) I agree that during the time that I am employed by the Company I shall
devote my full working time and attention to the affairs of the Company and I shall
not be employed by, or perform services for, or otherwise be engaged in any
business with, any other entity without the prior written consent of the Company.
	 
	12.	 	Enforcement
	 
	 	 	I acknowledge and agree that damages may not be an adequate remedy to compensate the Company
for any breach of my obligations contained in this Agreement, and accordingly I agree that in
addition to any and all other remedies available, the Company shall be entitled to obtain
relief by way of a temporary or permanent injunction to enforce the obligations contained in
this Agreement.
	 
	13.	 	General
	 
	 	 	(a) This Agreement shall be governed by the laws in force in the Province of
British Columbia. If any provision of this Agreement is wholly or partially
unenforceable for any reason, such unenforceable provision or part thereof shall be
deemed to be omitted from this Agreement without in any way invalidating or
impairing the other provisions of this Agreement. In this Agreement any reference
to a termination of employment shall include termination for any reason whatsoever
and with or without cause.
	 
	 	 	(b) The rights and obligations under this Agreement shall survive the termination
of my service to the Company and shall inure to the benefit of and shall be binding
upon (i) my heirs and personal representatives and (ii) the successors and assigns of
the Company.

Electronic Chart Data & Services

Page 9 of 10 

 

 

I HAVE READ THIS AGREEMENT. I UNDERSTAND IT, AND I HAVE HAD THE OPPORTUNITY TO OBTAIN
INDEPENDENT LEGAL ADVISE IN RESPECT OF IT, AND I AGREE TO ITS TERMS.

	 	 	 	 	 	 	 	 	 
	I acknowledge having received a fully
executed copy of this Agreement.	 	 	 	On behalf of the Company:
	 
	 	 	 	 	 	 	 	 
	Employee:	 	OFFSHORE SYSTEMS INTERNATIONAL LTD.
	 
	 	 	 	 	 	 	 	 
	Marcos Riano	 	 	 	President & CEO
	Name (printed)	 	 	 	Title (Printed)
	 
	 	 	 	 	 	 	 	 
	/s/ Marcos Riano	 	 	 	Per:	/s/ Kenneth Kirkpatrick
	Employee Signature	 	 	 	Signature
	 
	 	 	 	 	 	 	 	 
	Date:

	 	February 27, 2002
	 	 	 	Date:
	 	 
	 
	 	 	 	 	 	 	 	 
	Witness to the Employee’s signature:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name (printed)	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Witness’s Signature	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	 	 	 

Electronic Chart Data & Services

Page 10 of 10 

 

 

Private & Confidential

November 14, 2002

Marcos Riano

OSL Geomatics

Dear Marcos:

This letter will confirm your promotion from Manager of Operation to Director of Operations with
OSI Geomatics, effective December 1, 2002. Your annual salary will be increased from $75,000 to
$85,000 and all other conditions of your employment will remain the same.

If you are in agreement with the terms of this offer, please sign and date one copy of this letter
and return it to me.

Marcos, I would like to take this opportunity to thank you for your contributions to the company
and to wish you the very best in your role.

	 	 	 	 	 
	Yours very truly

OSL Geomatics

 	 	 
	/s/ Kenneth Kirkpatrick
 	 	 
	Ken Kirkpatrick 	 	 
	Vice President & General Manager 	 	 

I accept the terms and conditions of employment as outlined in this letter.

	 	 	 
	/s/ Marcos Riano

	 	November 18, 2002
	 

	 	 
	Employee signature

	 	Date

 

 

February 27, 2007

Marcos Riano

c/o Mapcon Mapping Ltd.

#107-930 West 1st Street

North Vancouver, BC V7P 3N4

Dear Marcos,

The 2006 annual performance and salary reviews have been completed. This letter will confirm a
change in your salary.

As of December 1, 2006, your annual salary will increase from $85,000 to $100,000 per annum.

I am also pleased to inform you that you have been awarded a bonus for fiscal year 2006 in the
amount of $5,000.00.

Your salary change will be reflected on your March 2 pay (including retro payment).

For fiscal year 2007, the RRSP matching contribution amount will be a maximum of 4% of your base
earnings.

In addition, for fiscal year 2007, you will be eligible for a potential bonus amount of up to 20%
of your base salary. 10% of your bonus is contingent upon the meeting of divisional financial goals
and 10% is contingent upon the meeting of your own personal non-financial objectives.

I would like to take this opportunity to thank you for your support and contribution to the success
of the Company.

	 	 	 	 	 
	Sincerely,

Mapcon Mapping Ltd.

 	 	 
	/s/ Gary Manzer
 	 	 
	Gary Manzer 	 	 
	GM Mapcon Mapping 	 	 

LT

 

 

November 22, 2007

Marcos Riano

356 Seaforth Crescent

Coquitlam, BC

V3K 2M4

Dear Marcos,

This letter is to confirm that, effective today, you have been promoted from your role as Director,
Operations of the Mapcon Mapping Division to Vice President and General Manager (VP & GM), Mapcon
Mapping reporting to myself.

In addition to your current reporting structure, the Director of Business Development, the Sales
Managers and the Divisional Controller will report to yourself.

As part of this promotion, your salary will increase from $100,000 per annum to $125,000 per annum
retroactive to Friday, November 9, 2007.

In addition, for fiscal year 2008, you will be eligible for a potential bonus amount of up to 30%
of your base salary for meeting financial and non-financial objectives which will be defined during
the upcoming performance review process.

Congratulations, Marcos, and thank you for your continued support and contribution to the success
of Mapcon Mapping.

	 	 	 	 	 
	Sincerely,

OSI Geospatial Inc.

 	 	 
	/s/ Kenneth Kirkpatrick
 	 	 
	Ken Kirkpatrick 	 	 
	President & CEO 	 	 

JJS

 

 

April 10, 2008

Marcos Riano

356 Seaforth Crescent

Coquitlam, BC

V3K 2M4

Re: Addendum to Employment Agreement Dated Feb 22, 2002

Dear Marcos,

This letter is to update the termination clause from your original employment letter dated February
22, 2002 and replace it with the following paragraphs:

“The Company may terminate your employment without cause either upon payment of a sum equivalent to
12 months’ base salary less statutory deductions, or by continuation of payment of your Base Salary
for a period of 12 months following termination.

In addition, the Company will continue to pay the allowable employer’s portion of premiums under
the Company’s employee benefits plan then in effect for you and your eligible dependants for a
period of 12 months from the date of termination or until you are covered under another employer’s
employee benefits plan, whichever occurs first. If you do become covered under another employer’s
benefits plan within that 12 month period, you shall promptly notify the Company of that fact.”

Thank you, Marcos, for your continued support and contribution to the success of Mapcon Mapping.

	 	 	 	 	 
	Sincerely,

Mapcon Mapping

 	 	 
	/s/ Kenneth Kirkpatrick
 	 	 
	Ken Kirkpatrick 	 	 
	President & CEO 	 	 

JJSexv4w17

Exhibit 4.17

EMPLOYMENT AGREEMENT

AMENDED AND RESTATED

     This Employment Agreement is made as of the 6th day of March, 2007, between CHI
Systems, Inc. (the “Company”) and James G. Liddy (the “Employee”).

     NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth,
the Company and the Employee agree as follows:

          1. Term of Employment. The term of the Employee’s employment hereunder shall begin on
Monday, March 12, 2007 (the “Effective Date).

          2. Position and Duties. Subject to the approval of the Board of Directors of the
Company, the Employee shall be employed in the position of VP, Layered Security Solutions, and in
such position shall report to the President, of the Company. Pending such approval, the Employee
shall be employed in the position of Sr. Director. The Employee shall faithfully and diligently
perform such duties and exercise such powers as are consistent with his position, perform such
other related duties and responsibilities and serve in such other positions as may be assigned to
him from time to time by the President, of the Company. The Employee shall devote substantially
all of his business time, attention and skill to his duties to the Company and shall not engage in,
participate in, render any service to, or undertake any employment, either directly or indirectly,
with respect to any other business or for any other entity, without the prior written consent of
the Company.

          3. Place of Employment. The Employee’s principal office and place of employment shall
be at 406 Oronoco Street, Alexandria, Virginia, 22314. The Employee acknowledges that he may be required to travel from time to time at the
request of the Company to discharge his duties to the Company and agrees to such travel
obligations.

          4. Compensation and Benefits.

               (a) Base Salary and Commission. The Employee’s annual base salary (“Base Salary”)
shall be U.S. $165,000, payable in accordance with the Company’s payroll practices as in effect
from time to time. The Employee’s Base Salary shall be subject to review and possible adjustment
in accordance with the Company’s normal practices, but in no event shall Employee’s Base Salary be
less than the amount specified in the first sentence of this Section 4(a). In addition, the
Employee will be eligible to receive commissions consistent with the Company’s normal policies, and
commission structure for his position, as may be in effect at the time.

 

-2-

               (b) Stock Options. The Employee shall be eligible for participation in the Company’s
stock option plans or share incentive plans which are now in place or may hereafter be established
for the benefit of employees of the Company. The Employee acknowledges that any grant of stock
options or other share incentives to himself are at the discretion of the Board of Directors (“the
Board”) of OSI Geospatial Inc. (“OSI”), subject to Section 4(f) hereof. Any stock options or other
share incentives so granted shall be subject to the terms and conditions stipulated by the Board of
OSI at the time of the grant, and shall otherwise be governed by and administered in accordance
with the terms and conditions of the plan or plans under which they were granted.

               (c) Benefits. The Employee (and, to the extent eligible, his dependents) shall be
entitled to participate in the Company’s employee benefit plans (including but not limited to
health insurance and short and long-term disability insurance), and in any other such plans that
are generally made available to employees of the Company. The Employee shall be subject to the
same leave time policies as set forth in the Company’s Employee Handbook (revised June 2004). The
Company shall have the right to amend any such plans and policies from time to time.

               (d) Expenses. The Company shall pay or reimburse the Employee for all reasonable
business expenses incurred by him in the performance of his duties under this Agreement in
accordance with the Company’s policies and practices in effect from time to time following receipt
from the Employee of written substantiation of such charges which is acceptable to the Company.

               (e) Vacation. The Employee shall be entitled to three weeks vacation per year, in
accordance with the policies regarding vacation as set forth in the Company’s Employee Handbook
(revised June 2004).

               (f) Compensation Committee Approval. The foregoing compensation and benefits shall be
subject to the approval of the Compensation Committee of the Board of Directors of the Company
pursuant to and in accordance with the Special Security agreement dated as of April 20, 2007 by and
among the Company, OSI and the U.S. Department of Defense (the “SSA”).

          5. Termination of Employment. The Employee’s employment may be terminated in
accordance with the following:

               (a) Voluntary Termination. The Employee may terminate his employment for any reason
or no reason upon providing the Company thirty (30) days written notice of termination.

               (b) Cause. The Company may terminate the Employee’s employment at any time, effective
immediately, for Cause. “Cause” shall mean any of the following: (i) actions by the Employee
which materially damage the Company’s or an affiliate’s business or reputation; (ii) the
Employee’s violation of any material policy, standard, rule, or practice of the Company, if such
violation in fact causes material damage to the Company’s or an affiliate’s business or reputation;
(iii) the Employee’s continued failure or neglect to substantially perform his duties

 

-3-

hereunder; (iv) a breach of any material provision of this Agreement; (v) the Employee’s
conviction of, or plea of nolo contendere to, a felony, or (vi) the revocation of the Employee’s
current level of security clearance from the U.S. government; provided, however, that the Company
may terminate Employee’s employment for Cause only if it provides written notice to the Employee of
an intent to terminate for Cause, which notice specifies the grounds allegedly constituting Cause,
and the Employee fails to reasonably cure or eliminate such grounds within thirty (30) days of his
receipt of such notice; and provided further, that as used in this Agreement (including in section
7 & 8), the term “affiliate” means a company in which OSI or a subsidiary thereof has a majority
ownership interest, and does not include joint ventures with the Company or with OSI or any of its
subsidiaries, or any other entities with which OSI may have a business relationship but not a
majority ownership interest.

          6. Obligations of the Company Upon Termination.

               (a) Upon termination of employment by either the Employee or the Company for any reason, the
Employee shall be entitled to be paid (i) any earned but unpaid Base Salary, (ii) reimbursement for
any expenses incurred by him but unpaid as of the date of termination, and (iii) any earned but
unused vacation due under the Company’s Employee Handbook (revised June 2004), subject to the
provisions of that Handbook. These amounts shall be payable in cash within 30 days of such
termination date.

               (b) Upon the Company’s termination of the Employee’s employment for any reason other than
Cause in accordance with section 5(b) and in consideration for the Confidentiality and
Non-Disclosure, Non-Competition and Non-Solicitation provisions hereof, the Employee will be
entitled to the payment set forth in paragraph 6(a) above and, in addition, to the continuation of
his Base Salary for a period of six (6) months following such termination, payable as and when his
Base Salary otherwise would have been payable. In the event payments are payable to Employee
pursuant to this Section 6(b), no severance benefits shall be payable to the Employee under any
severance plan maintained by the Company.

               (c) Employee’s entitlement to any compensation under this Section also is subject to the
Employee’s execution of a release of all claims against the Company, provided, however, that (i)
such release does not impose any new obligations or restrictions on the Employee not encompassed
within this Agreement and (ii) such release is reciprocal, containing a release of all claims that
the Company may have against the Employee.

          7. Confidentiality and Non-Disclosure. The Employee shall not divulge or communicate
to any person (except in performing his duties under this Agreement) or use for his own purposes or
for the benefit, purposes or account of the Employee or any other person, trade secrets,
confidential commercial information, or any other information, knowledge, or data of the Company or
of any of its affiliates which is not generally known to the public, and shall use his best efforts
to prevent the publication or disclosure by any other person of any such secrets, information,
knowledge, or data. Confidential information includes, without limitation, information relating to
the Company’s business plans, financial matters, customers, employees, contracts, and all other
secrets and information of a confidential or proprietary nature. The confidentiality and
non-disclosure obligations imposed by this Section 7 will cease if such confidential or proprietary
information becomes, through no fault of the Employee, generally

 

-4-

known to the public or the Employee is required by law to make disclosure (after giving the
Company notice and an opportunity to contest such requirement).

          8. Non-Competition. The Employee agrees that for a period of six (6) months following
the termination of this Agreement for any reason, he shall not directly or indirectly, with or
without compensation, be engaged in any work or activity (as an employee, independent contractor,
partner, or sole proprietor) in competition with, or which may materially compete with the Business
of the Company (or with the Business of any affiliate for which the Employee performed substantial
services hereunder) within any country, state, region, or locality in which the Company or such
affiliate is then doing business or marketing its products, as the business of the Company or such
affiliate may then be constituted. For purposes of this Agreement, the Business of the Company and
of any affiliate means (i) the provision of research and development services and tools to Federal,
Ste and Local Government agencies responsible for national defense, homeland defense, and
healthcare clinical information management — specifically, in areas relating to training systems,
cognitive engineering, decision support systems, and (ii) any other business in which the Company
is engaged as of the date of termination of this Agreement. Also, for purposes of this Agreement,
the Employee shall be deemed to be engaged in such a Business if he is a principal, agent,
consultant, employee, officer, director, or partner, of any person, partnership, corporation, trust
or other entity which is engaged in such a Business, and he shall be deemed to have a financial
interest in such an entity if he has an equity interest, or interest convertible into equity, in
any entity engaging in the Business; provided, however, that the foregoing shall not prohibit the
Employee from owning, for the purpose of passive investment, less than two percent (2%) of any
class of securities of a publicly held corporation.

          9.  Non-Solicitation.

               (a) The Employee agrees that for a period of six (6) months after the termination of his
employment for any reason, he will not, on behalf of himself or any person, firm, partnership,
joint venture, corporation or other business organization directly or indirectly induce, solicit,
or participate in the inducement or solicitation, either directly or through a third party, of any
person who is an officer, director, employee, principal or agent of the Company or any affiliate to
leave his or her employment, agency, directorship or office with the Company or any affiliate, or
to induce or solicit any person to not commence an employment or business relationship with the
Company or any affiliate.

               (b) The Employee agrees that for a period of six (6) months after the termination of him
employment for any reason, he will not, on behalf of himself or any person, firm, partnership,
joint venture, corporation or other business organization directly or indirectly take any of the
following actions in competition with the Business of the Company: (i) solicit or accept the
business of any customer or potential customer of the Company, or (ii) take any other action with
the intent or likely effect of diverting the business of such customer or potential customer from
the Company to himself or to any other person or entity or otherwise interfering with the existing
or prospective business relations between the Company and such existing or potential customer. As
used herein, the term “customer” means any agency described in subparagraph 8(i) above to which,
any time during the one year period immediately prior to the termination of the Employee’s
employment, the Company provided any services or tools of the

 

-5-

type described in that subparagraph, and the term “potential customer” means any agency
described in subparagraph 8(i) above to which, any time during the six (6) month period immediately
prior to the termination of the Employee’s employment, the Company made a written proposal for the
provision of such services or tools.

          10. Company Ownership. Except to the extent required by any applicable governmental
contract, statute, regulation or rule, the Employee hereby agrees that any and all improvements,
inventions, patents, patent applications, software, research, data reports, copyrightable works of
authorship, concepts, discoveries, formulae, processes, methods, know-how, confidential data, trade
secrets and other proprietary information (collectively, “Work Product”) within the scope of any
business of the Company or any affiliate which the Employee may conceive or make, or have conceived
or made, during his employment with the Company shall be and are the sole and exclusive property of
the Company or any such affiliate. The Employee shall, whenever requested to do so by the Company
or any affiliate, and without any obligation on the part of the Company or such affiliate to pay
any royalty or other compensation to the Employee, at the Company’s or affiliate’s expense, execute
and sign any and all applications, assignments or other instruments and do all other things which
the Company or its affiliate may deem necessary or appropriate (i) in order to apply for, obtain,
maintain, enforce or defend letters patent in the United States or in any foreign country for any
Work Product, and/or (ii) in order to assign, transfer, convey or otherwise make available to the
Company or such affiliate the sole and exclusive right, title, and interest in and to any Work
Product. The term “Work Product” shall not, in general, include any writings, copyrighted or not
copyrighted, registered as a trademark or service marked or not so registered, classified or
unclassified, or the content thereof, authored by Employee prior to the execution of this Agreement
and, specifically, shall not include any portion of the book, published by St. Martin’s Press, New
York, co-authored by Employee and entitled, FIGHT BACK, Fighting Terrorism Liddy Style.

          11. Injunctive Relief. The Employee acknowledges and agrees that the remedy at law
available to the Company for breach of any of his obligations under Sections 7 through 10 would be
inadequate and that damages flowing from such breach may not readily be susceptible to being
measured in monetary terms. Accordingly, the Employee acknowledges and agrees that, in addition to
any other rights or remedies which the Company may have at law, in equity or under this Agreement,
upon adequate proof of his violation of any such provision of this Agreement, the Company will be
entitled to immediate injunctive relief, and may obtain a temporary order restraining any
threatened or further breach, without the necessity of proof of actual damage. Any such action may
only be filed in a court of competent jurisdiction in the State of Delaware, and the Employee
consents to the personal jurisdiction and venue of such courts.

          12. Security Clearances: SSA. The Employee acknowledges and agrees that maintaining
his existing personnel security clearances with various agencies and departments of the Government
of the United States of America will be a continuing condition of his employment with the Company.
The Employee agrees to co-operate with the Company and such agencies and authorities and to provide
such information as they may reasonably require to maintain such personnel security clearances and
to seek to obtain any increased level of security clearance that may be appropriate. The Employee
hereby consents to the disclosure by the Company to such authorities of such personal information
as has been provided by the Employee

 

-6-

to the Company in connection with his employment with the Company. The Employee further
agrees to comply with the terms and conditions of the SSA and all policies and procedures adopted
by the Company thereunder. Without limiting the generality of the foregoing, the Employee
acknowledges that he is a Cleared Officer of the Company as defined in the SSA and agrees to comply
with Section 7.12 thereof relating to the obligations and certifications of Cleared Officers.

          13. Confidential Disclosure and Insider Trading. The Employee acknowledges that:

               (a) OSI’s common shares are publicly traded;

               (b) he will become privy from time to time to material information about OSI or material
changes in affairs of OSI which have not been generally disclosed to the public; and

               (c) that he is a “person in a special relationship” with OSI and an “insider” of OSI, as those
terms are defined under applicable Canadian securities regulations and may be an “insider” of OSI
under applicable U.S. securities regulations. The Employee further acknowledges that he has been
provided with a copy of OSI’s Policy Respecting Confidentiality, Disclosure and Trading by
Restricted Persons and Employees, attached as Schedule A, which sets out OSI’s policies concerning,
among other things, the maintenance of confidentiality with respect to OSI’s information and
restrictions and prohibitions on trading in OSI’s securities. The Employee agrees to comply with
such policies and acknowledges that a material breach of such policies will constitute a material
breach of this Agreement. The Employee further acknowledges that it is his obligation to comply
with all applicable laws and regulations respecting trading in securities of OSI.

          14. Code of Ethics. As a condition of employment, the Employee agrees to be bound
by and execute any Code of Ethics, and any amendments thereto approved by the Government Security
Committee and Board of Directors of the Company from time to time, acting reasonably. Such Code of
Ethics shall include any provisions reasonably recommended by OSI in order to comply with Canadian
securities regulations, to the extent not inconsistent with the Company’s obligations under the
SSA.

          15. Notice. All notices or other communications hereunder shall be in writing and
shall be deemed to have been duly given (a) when delivered personally, (b) upon confirmation of
receipt when such notice or other communication is sent by facsimile, (c) one day after delivery to
an overnight delivery courier or (d) three days after it has been sent by registered or certified
mail, return receipt requested postage prepaid, addressed to the addresses set forth below, or to
such other address as either party may have furnished to the other in writing in accordance
herewith.

 

-7-

If to the Company:

CHI Systems Inc. (Headquarters)

1035 Virginia Drive, Suite 300

Fort Washington, PA 19034

Attention: President, CHI Systems Inc.

If to the Employee:

James G. Liddy

406 Oronoco Street

Alexandria, Virginia

22314

or to such other address as either party may designate by notice to the other, and shall be
deemed to have been given upon receipt.

          16. Miscellaneous.

               (a) Survival. The termination of the Employee’s employment will not impair the rights
or obligations of a party that accrue prior to such termination, except to the extent specifically
stated herein. In addition, the Employee’s covenants contained in Sections 7, 8, 9 and 10 and the
Company’s obligations under Section 6 will survive the termination of the Employee’s employment.

               (b) Amendments and Waiver. Only an instrument in writing signed by the parties may
amend this Agreement, and any provision hereof may be waived only by an instrument in writing
signed by the party against whom enforcement of such waiver is sought. The failure of either party
at any time to require the performance by the other party of any provision hereof shall in no way
affect the full right to require such performance at any time thereafter, nor shall the waiver by
either party of a breach of a provision hereof be taken or held to be a waiver of any succeeding
breach of such provision or a waiver of the provision itself or a waiver of any other provision of
this Agreement. The Agreement may not be amended without the approval of the Government Security
Committee, the Compensation Committee, and the Board of Directors of the Company.

               (c) Withholding. Employee agrees that the Company may withhold from any and all
payments required to be made to Employee in accordance with this Agreement all federal, state,
local, and other taxes that the Company determines are required to be withheld in accordance with
applicable statutes and regulations in effect from time to time.

               (d) Severability of Provisions. If any provision of this Agreement, or portion
thereof, is so broad in scope or duration so as to be unenforceable, such provision or portion

 

-8-

thereof shall be interpreted to be only so broad as is enforceable. If any one or more
provisions contained in this Agreement shall be invalid, illegal or unenforceable in any respect,
the validity, legality, and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby and this Agreement shall be interpreted as if such invalid, illegal,
or unenforceable provision was not contained therein.

               (e) Headings. The headings used in this Agreement are intended for convenience and
reference only and will not in any manner amplify, limit, modify or otherwise be used in the
construction or interpretation of any provision of this Agreement. All section references are to
sections of this Agreement, unless otherwise noted.

               (f) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the Commonwealth of Pennsylvania, without giving effect to conflict of laws
provisions.

               (g) Counterparts. This Agreement may be executed in several counterparts, each of
which shall be deemed an original, but all of which shall constitute one and the same instrument.

               (h) Entire Agreement. This Agreement constitutes the entire agreement between the
parties hereto with respect to the Employee’s employment by the Company, and supersedes, and is in
full substitution of, any and all prior understandings, representations, or agreements with respect
to the Employee’s employment unless otherwise indicated herein.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated below.

	 	 	 	 	 	 	 
	Employee

	 	 	 	CHI Systems Inc.	 	 
	 
	 	 	 	 	 	 
	/s/ James Liddy
 

	 	 	 	/s/ Wayne Zachary
 

	 	 

 

SCHEDULE A

POLICY RESPECTING CONFIDENTIALITY, DISCLOSURE AND TRADING BY 

RESTRICTED PERSONS AND EMPLOYEES

PART I CONFIDENTIALITY

	1.	 	Purpose
	 
	1.0	 	The purpose of Part I of this Policy is to ensure that all employees and directors of OSI
Geospatial Inc. and its subsidiaries (the “Company”), regardless of country of residence,
treat confidential information in a consistent manner and in accordance with Canadian
securities laws.
	 
	2.	 	Confidential Information
	 
	2.0	 	Information respecting the Company is considered confidential information if its knowledge
would reasonably be expected to result in a significant change in the market price or value of
the Company securities, and such information has not been publicly disclosed (throughout this
Policy, “Confidential Information”).
	 
	2.1	 	Confidential Information includes information concerning the business operations or capital
of the Company.
	 
	2.2	 	It is to be recognized that information may be Confidential Information within the meaning of
this Policy at an earlier stage than the Company is required by applicable securities laws to
publicly disclose such information (for example at an earlier stage in the process of making a
major acquisition or negotiating a significant contract).
	 
	2.3	 	Where information is disseminated by the Company through a press release, that information is
not considered to be publicly disclosed until at least the close of one (1) complete business
day after the press release, and in circumstances where the information is not readily
accessible through the news media, that information may not be considered to be publicly
disclosed until up to a week.
	 
	3.	 	Safeguarding Confidentiality
	 
	3.0	 	The Company personnel may not discuss Confidential Information with any other persons
(whether or not Company personnel), except in the necessary course of business.
	 
	3.1	 	In addition, information disclosed by a customer, supplier or business associate to the
Company personnel, and identified as private or confidential, shall be protected from
disclosure to the same extent as would Confidential Information.
	 
	3.2	 	To protect Confidential Information from disclosure, the Company personnel:

 

 

SA2

	 	i)	 	should not discuss Confidential Information in public places
where Confidential Information may be overheard (e.g., elevators, restaurants,
airplanes, taxicabs);
	 
	 	ii)	 	should not carry, read or discard Confidential Information in
an exposed manner in public places;
	 
	 	iii)	 	should not discuss Confidential Information with personal
friends or relatives; and
	 
	 	iv)	 	should not participate in discussions with other persons
respecting investments in the Company.

	3.3	 	Before any meeting with other persons where Confidential Information may be disclosed, the
Company personnel shall advise the other persons that they must not divulge the Confidential
Information other than in the necessary course of business, or trade in the Company securities
until the Confidential Information is generally disclosed.
	 
	3.4	 	When so required by a supervisor, the Company personnel will take such additional steps as
may be necessary to protect Confidential Information from disclosure, including keeping filing
cabinets locked, referring to specified matters only by a code name and limiting access to the
word processing system.
	 
	3.5	 	All inquiries from the media shall be referred to the Chief Executive Officer (CEO) (or such
other person as may be designated from time to time to perform the role of such officer under
this Policy by the CEO) for response by designated spokespersons.
	 
	3.6	 	All inquiries from securities analysts or institutional investors shall be referred to the
CEO (or such other person as may be designated from time to time to perform the role of such
officer under this Policy by the CEO) for response by designated spokespersons.
	 
	4.	 	Sanctions
	 
	4.0	 	Failure to comply with the terms of this Part of the Policy will result in disciplinary
action, possibly including termination of employment.
	 
	4.1	 	Certain regulatory sanctions including fines, imprisonment and civil actions may be imposed
on individuals improperly disseminating Confidential Information.

 

 

SA3

PART II DISCLOSURE

	1.	 	Purpose
	 
	1.0	 	The purpose of Part II of this Policy is to ensure that all disclosure by the Company of
Confidential Information is conducted in a consistent manner and in accordance with Canadian
securities laws.
	 
	2.	 	Procedures for Determining Whether Information is Confidential Information
	 
	2.0	 	The CEO shall be responsible for ensuring that the determination of which information
constitutes Confidential Information shall be carried out in accordance with a consistent
procedure and in accordance with Canadian securities laws. To the extent the CEO deems
appropriate, such officer shall consult with outside legal advisers in discharging his
responsibilities under this Policy.
	 
	3.	 	Public Statements
	 
	3.0	 	The CEO shall be responsible for ensuring that disclosure of all information respecting the
Company, including Confidential Information required to be disclosed under Canadian securities
laws, shall be carried out in accordance with a consistent procedure and in accordance with
such laws.
	 
	3.1	 	Procedures governing the disclosure of Confidential Information required to be disclosed
shall provide that such disclosure shall be effected in accordance with the following
principles:

	 	i)	 	Confidential Information should not be disclosed selectively;
	 
	 	ii)	 	information previously disclosed by the Company should be
updated if it has become misleading as a result of subsequent events; and
	 
	 	iii)	 	where Confidential Information is to be announced at a meeting
of analysts, the media or shareholders, or at a press conference, a
simultaneous general announcement respecting the Confidential Information must
be made by press release.

	3.2	 	Public statements of policy will be made only by the Chief Executive Officer (CEO). All
press releases shall be pre-cleared with the CEO or, failing that, the Chairman of the Board.
	 
	3.3	 	Notice of a press release announcing Confidential Information shall be provided to the Market
Surveillance Branch of the Toronto Stock Exchange (the “TSX”)

 

 

SA4

	 	 	prior to its release (if press release to be issued during TSX trading hours) or
before trading begins (if issued outside TSX trading hours).
	 
	3.4	 	The CEO shall be responsible for maintaining a file containing all disclosure documents
prepared by the Company, including press releases, publicly released by the Company or other
documents filed with the securities regulatory authorities.
	 
	4.	 	Dealing with Analysts and the Media
	 
	4.0	 	All inquiries from securities analysts shall be referred to the CEO for response only by
designated spokespersons.
	 
	4.1	 	Disclosure at meetings with analysts or the media shall be limited to an explanation or
clarification of publicly available information and generally shall not refer to forecasts of
future financial results or events. A record should be kept of all matters discussed and
information disclosed at the meeting. To the greatest extent practicable, more than one
spokesperson from the Company should be present at each meeting with analysts or the media.
After such a meeting, if the spokespersons have any concerns regarding the information
disclosed, they should discuss the matter with the CEO.
	 
	4.2	 	It will continue to be a policy of the Company to review financial models and drafts of
analysts’ research reports for factual content only.
	 
	5.	 	Inadvertent Disclosure
	 
	5.0	 	In the event that any Confidential Information is inadvertently disclosed, general disclosure
of such Confidential Information shall be made immediately and such disclosure shall be
coordinated by the CEO or, failing that, the Chairman of the Board.
	 
	6.	 	Forward-looking Statements
	 
	6.0	 	It is the Company’s policy generally not to provide forward-looking information to the
investment community. To the extent that such information is provided in Company disclosure
documents, all statements are to be accompanied by appropriate contingency and cautionary
language which has been approved by the CEO.
	 
	7.	 	Sanctions
	 
	7.0	 	Failure to comply with the terms of this Part of this Policy will result in disciplinary
action, possibly including termination of employment.

 

 

SA5

	7.1	 	Certain regulatory sanctions including fines, imprisonment and civil actions may be imposed
on individuals contravening laws respecting the disclosure of Confidential Information.

PART III TRADING BY RESTRICTED PERSONS AND EMPLOYEES

	1.	 	Purpose
	 
	1.0	 	The purpose of Part III of this Policy is to ensure that all employees and directors of the
Company, regardless of country or residence, comply with Canadian securities laws.
	 
	2.	 	Definition of “Restricted Person”
	 
	2.0	 	A restricted person is generally defined, without regard to the individual’s country of
residence, as including all directors, officers and other employees of the Company who are
regularly in possession of Confidential Information (“Restricted Person”).
	 
	2.1	 	The CEO shall be responsible for maintaining a list of all individuals who are Restricted
Persons and ensuring that each person who is a Restricted Person has been advised that he or
she is a Restricted Person for the purposes of this Policy.
	 
	3.	 	Prohibition on Trading by Employees with Confidential Information or Other Undisclosed
Material Information
	 
	3.0	 	The Company personnel, including Restricted Persons, may not, if that individual possesses
Confidential Information, directly or indirectly (e.g., via private holding company,
registered retirement savings plans or otherwise):

	 	i)	 	buy or sell the Company securities;
	 
	 	ii)	 	buy or sell securities whose price or value may reasonably be
expected to be affected by changes in price of the Company securities;
	 
	 	iii)	 	grant or exercise the Company stock options, or, if applicable,
phantom stock plans or similar employee compensation mechanisms; or
	 
	 	iv)	 	buy or sell securities of another company in which the Company
proposes to invest or where the individual, in the course of employment with
the Company, becomes aware of undisclosed material information concerning that
other company.

	3.1	 	In addition, the Company personnel are prohibited from engaging in any other action to take
advantage of, or pass on to others, such Confidential Information or

 

 

SA6

	 	 	undisclosed material information respecting another company, including buying or
selling, or recommending the buying or selling of, any assets of that company, in
reliance on such Confidential Information or undisclosed material information.
	 
	3.2	 	This prohibition also applies to trading by individuals who learn of Confidential Information
or undisclosed material information respecting another company from the Company personnel
(e.g., spouses, friends, relatives), who for the purposes of this Policy are responsible for
the trading by such individuals. It being understood that trading by such individuals would
also likely constitute a violation by them of applicable securities law relating to insider
trading.
	 
	4.	 	Prohibiting “Restricted Persons” from Trading During “Black Out” Periods and Other
Restrictions on Trading by Restricted Persons
	 
	4.0	 	To guard against trading by Restricted Persons before public release of quarterly financial
results or when the Company may be involved in a material undisclosed transaction (e.g.,
acquisition, public offering, significant contract negotiation) not known to the Restricted
Person, trading by Restricted Persons is prohibited during the following “Black Out” periods;

	 	i)	 	Two weeks prior to the end of the first fiscal quarter (i.e. 14
February) until two (2) business days following the release of the first
quarter results;
	 
	 	ii)	 	Two weeks prior to the end of the second fiscal quarter (i.e.
16 May) until two (2) business days following the release of the second quarter
results;
	 
	 	iii)	 	Two weeks prior to the end of the third fiscal quarter (i.e. 17
August] until two (2) business days following the release of the third quarter
results; and
	 
	 	iv)	 	Two weeks prior to the fiscal year end (i.e. 16 November] until
two (2) business days after the audited annual statements for the year end have
been generally reviewed; and
	 
	 	v)	 	The start of the day on which a press release or other
disclosure is issued with respect to an item of Confidential Information until
one (1) complete business day following the date of the press release or other
disclosure.

	4.1	 	Restricted Persons, their spouses and any relatives living with them are also prohibited
during the “Black Out” period, from:

	 	i)	 	purchasing or selling publicly traded options or securities of
the Company; and
	 
	 	ii)	 	selling the Company securities that the individual does not own
(short selling).

 

 

SA7

	4.2	 	If the Company becomes aware of a material undisclosed transaction, all Restricted Persons
who have pre-cleared transactions that have not been completed will be asked to withdraw their
trading instructions.
	 
	5.	 	Company Contact Person
	 
	5.0	 	The Company personnel who are unsure whether they may trade in a given circumstance shall
contact the CEO for specific guidance. The Company personnel are encouraged to consult with
such officer prior to any trading in securities of the Company.
	 
	6.	 	Regulatory Requirements — Reporting
	 
	6.0	 	To comply with Canadian securities laws applicable to certain Restricted Persons, all
Restricted Persons who are directors or officers of the Company or its subsidiaries
(“Insiders”) must file an “Insider Report” in the form available from the Corporate Controller
within 10 days following:

	 	i)	 	the day the individual first becomes an Insider (if on that day
the individual does not own or control the Company securities no Insider Report
need be filed); and
	 
	 	ii)	 	the day on which the Insider purchases or sells the Company
securities (this is the date of agreement to purchase or sell, not the
settlement date of the transaction).

	6.1	 	Each Insider is required to file the Insider Report with each of the Canadian provincial
securities regulators. Instructions regarding completion are included on the back of the
Insider form.
	 
	6.2	 	All Insiders are responsible for filing their own Insider Reports. Two copies of the Insider
Report, one of which to be manually signed, must be filed in all jurisdictions.
	 
	6.3	 	At the same time as the Insider Report is filed with the regulators, a copy of the Insider
Report must be provided to the Company to the attention of the CEO.
	 
	6.4	 	Copies of blank Insider Reports may be obtained from the office of OSI Geospatial Inc’s
Corporate Controller.
	 
	6.5	 	Restricted Persons (whether or not they are Insiders) are required to report to the CEO
annually (by the end of January each year) with respect to all trades in the preceding 12
months and to certify compliance during the period with the terms of this Policy.

 

 

SA8

	7.	 	Sanctions
	 
	7.0	 	Failure to comply with this Part of the Policy will result in disciplinary action, possibly
including termination of employment.
	 
	7.1	 	Canadian securities laws provide that a breach of the general trading prohibition contained
in this Part of the Policy may result in a fine of up to the greater $1 million and three
times the profit obtained by reason of the contravention, and imprisonment for up to two
years.
	 
	7.2	 	The Company personnel may also be found civilly liable if a spouse, friend of relative
profited from the trading of the Company securities at a time when in possession of
Confidential Information provided by that individual.
	 
	7.3	 	Penalties may also be levied against an Insider for not complying with the regulatory
reporting requirements.

I HAVE READ THIS POLICY. I UNDERSTAND IT, AND I HAVE HAD THE OPPORTUNITY TO OBTAIN INDEPENDENT
LEGAL ADVICE IN RESPECT OF IT, AND I AGREE TO ITS TERMS.

	 	 	 
	 
	/s/ James G. Liddy

	 	April 4, 2007
	 

Employee Signature

	 	Date
	 
	 	 
	Pat Giles
	 	 
	
 

Name of Witness

	 	 
	 
	 	 
	/s/ Pat Giles

	 	April 4, 2007
	 

Witness Signature

	 	Date

 

 

SCHEDULE B

OSI GEOSPATIAL INC.

CODE OF ETHICS

FOR FULL-TIME AND PART-TIME EMPLOYEES

OSI Geospatial Inc. and its subsidiaries and affiliates (collectively referred to in this document
as the “Company” or “we”) are committed to conducting business in accordance with all the highest
standards of business ethics including complying with applicable laws, rules, regulations and stock
exchange policies. We are committed to full and accurate financial disclosure in compliance with
applicable laws. This Code of Ethics is applicable to all employees of the Company and sets forth
specific policies to guide you in the performance of your duties. The Company is responsible for
setting the standards of conduct contained in this Code of Ethics and for updating these standards
as appropriate to reflect legal and regulatory developments.

BACKGROUND

Ethical lapses can damage the Company, and damage done by one individual hurts all of the Company’s
employees, shareholders and our customers. Collapses like “ENRON” and others make it clear that
the actions of a few employees can have severe and far-reaching consequences. With this as
background, this Code of Ethics serves three purposes:

	 	•	 	it highlights some of the important ethical issues in business so that all employees are
aware of them;
	 
	 	•	 	it provides guidance so that employees do their part to ensure that the Company operates
in an ethical way; 
	 
	 	•	 	it provides protection for whistle-blowers, so those lapses that occur, regardless of
whether they are intentional or inadvertent, can be reported without fear of reprisal.

As an employee of the Company, you have a duty to not only comply with applicable laws, but also to
conduct yourself in an honest and ethical manner and to help us foster a culture of high ethical
standards and commitment to compliance with this Code of Ethics. The Company does not seek
competitive advantage through illegal or unethical business practices. Each employee should
endeavour to deal honestly with the Company’s customers, suppliers, competitors and fellow
employees. No employee should take advantage of anyone through abuse of privileged information,
misrepresentation of material facts, manipulation or concealment.

As a guide to proper behaviour, the Company recommends that employees not do anything that they
would not like to see reported to their friends and family in the newspaper. Unethical or illegal
acts often receive precisely this treatment.

We expect every employee to read and understand this Code of Ethics and its application to the
performance of his or her business responsibilities, and we will hold you accountable for adherence
to it.

 

 

SB2

RELATED DOCUMENTS AND POLICIES

This Code of Ethics acts in conjunction with any policies and procedures related to business
conduct and ethics that the Company has already adopted.

You are responsible for reading Company policies and procedures as well as periodically reviewing
them. You will also be bound by the requirements and standards set forth in any code of business
conduct and ethics that may be adopted by the Company, as well as those set forth in this Code of
Ethics.

PROPER BUSINESS PRACTICES

As representatives of the Company, employees will engage in business activities that emphasize the
quality, service and competitive features of our products and services. Employees must confine
their activities to using only legal, proper and ethical means to maintain markets and they must
not be involved in any practices that could embarrass or damage the Company, its employees, its
customers or its potential customers. Examples of such practices include, but are not limited to:

	 	•	 	making deceptive or misleading statements about the Company’s products or services
	 
	 	•	 	violating any law or regulation, either domestically or in a foreign jurisdiction, with
particular attention being paid to the U. S. Foreign Corrupt Practices Act and its
international counterparts. Refer to
http://www.usdoj.gov/criminal/fraud/fcpa/dojdocb.htm
for further details about this Act, which applies to us because we’re registered with the
SEC.
	 
	 	•	 	attempting to convince or coerce individuals to place their personal interests above the
interests of the Company or the organization they represent
	 
	 	•	 	attempting to restrict competition in contravention of the Competition Act or its
counter- part in other countries. For further details, refer to
http://laws.justice.gc.ca/en/C-34
	 
	 	•	 	engaging in any activity that could negatively reflect on the reputation of the Company.

CONFLICTS OF INTEREST

Your obligation to conduct Company business in an honest and ethical manner includes the ethical
handling of conflicts between personal and Company interests. A conflict of interest occurs when
an individual’s private interest interferes or appears to interfere with the interests of

the Company. Such conflicts of interest may make it difficult to perform work objectively and
effectively. Service to the Company should never be subordinated to personal gain and advantage.

A conflict of interest may exist when it appears to a reasonable and objective observer that you
receive a personal private benefit as a consequence of a business decision or business
relationship. Before making any investment, accepting any position or benefits, participating in
any transaction or business arrangement or otherwise acting in a manner that creates or

 

 

SB3

reasonably appears to create a conflict between your interests and the interests of the Company, or
if you are unsure whether an action you may take might be considered a conflict of interest, you
must make full disclosure of all facts and circumstances to your manager. Full disclosure
includes:

	 	•	 	a description of the proposed outside activities as well as your level of involvement
and the relationship, if any, to your job or duties
	 
	 	•	 	the nature of the conflict or any potential conflict
	 
	 	•	 	the potential risk to the employer
	 
	 	•	 	when the conflict of interest first arose or may first arise
	 
	 	•	 	who else may be involved, e.g. a supplier or another employee, and how

For your own protection, this disclosure should be in writing. After reviewing the circumstances
and making appropriate enquiries, the Company will determine what if any response or course of
action is warranted and will communicate this determination to the employee as soon as possible.

RELATIONSHIPS WITH SUPPLIERS AND PRESENT OR POTENTIAL CUSTOMERS

We will treat all suppliers fairly and respectfully, purchasing products based on price, quality,
consistency, reliability, and availability rather than on any personal relationship an employee, or
his or her family member or acquaintance, may have with a supplier.

To avoid perceptions of favouritism, employees, members of employees’ families and acquaintances of
employees must not accept or offer business courtesies (as defined below) greater than $100.00 in
value or a personal discount that is not made available to the general public. If you are unsure
of whether to accept a business courtesy, contact your manager who will then contact senior
management for direction. If you feel that you were offered a gift to influence your objectivity
with respect to a business decision, you must report the matter to your manager.

A “business courtesy” is a gift, gratuity, hospitality or favour from companies or persons with
whom the Company maintains or may establish a business relationship. A business courtesy
may be a tangible or intangible benefit and is typically received by an employee at a cost below
fair market value. The benefits can include, but are not limited to, gifts, meals, drinks,
entertainment (including tickets and passes), recreation (including golf course, tennis and other
participation fees), door prizes, honoraria, discounts, vouchers, promotional items, or the use of
a donor’s time, materials, facilities or equipment.

Socializing with current or prospective customers or suppliers must be done in a professional
manner. Accordingly, employees must ensure that their manager is aware of such activity. With
respect to a business relationship with customers, limited business-related entertainment, favours
or gifts may be offered to customers if all the following criteria are met:

	 	•	 	the items offered are legal

 

 

SB4

	 	•	 	the value of the item would not be viewed as improper by the Company or the recipient
	 
	 	•	 	such favours would not be embarrassing to the Company or the recipient
	 
	 	•	 	favours or gifts are approved by the appropriate manager
	 
	 	•	 	the offer of the item must be made so as to honour any of the customer’s guidelines
(e.g. government employees and enlisted personnel have guidelines for acceptance that they
must abide by).

Employees must not place themselves in a position of being under obligation to a supplier or
customer. This includes allowing suppliers or customers to use their influence on an employee’s
behalf or in a manner that will benefit an employee.

CORPORATE BUSINESS OPPORTUNITIES

Employees owe a duty to the Company to advance the Company’s business interests first when
opportunities to do so arise. If a business opportunity, discovered through the use of corporate
information, property or position, has been offered to the Company and it has turned it down in
writing, then and only then may an employee take advantage of the opportunity or enable a third
party to take advantage of the opportunity.

COMPLIANCE WITH LAWS, RULES AND REGULATIONS

You are required to comply with the laws, rules and regulations that govern the conduct of our
business, both within the United States, Canada and in any other country where we conduct business.
You must report to management any suspected violations in accordance with the section below
entitled ‘Compliance with the Code of Ethics’.

DISCLOSURE IN REPORTS AND DOCUMENTS

It is our policy to make full, fair, accurate, timely and comprehensible disclosure, in compliance
with all applicable laws, rules and regulations, in all reports and documents that we file with, or
submit to, the U.S. Securities and Exchange Commission and the securities commission of each
province or territory in Canada to which we report, and in all other public communications made by
us. All employees are to be familiar with and abide by our standards, policies and procedures
designed to promote compliance with this policy to the extent relevant to his or her area of
responsibility.

Each person with direct or supervisory authority on securities filings or the Company’s other
public communications must consult with the Company’s officers or other employees and take
other steps to make all disclosures full, fair, accurate, timely and understandable. In addition,
each employee who is involved in the Company’s disclosure process must:

	 	•	 	familiarize himself or herself with the disclosure requirements applicable to the
Company as well as the business and financial operations of the Company,

 

 

SB5

	 	•	 	not knowingly misrepresent, or cause others to misrepresent, facts about the Company to
others, whether within or outside the Company, including to the Company’s independent
auditors, governmental regulators and self-regulatory organizations, and
	 
	 	•	 	properly review and critically analyze proposed disclosure for accuracy and completeness
(or, where appropriate, delegate this task to others).

COMPLIANCE WITH THE CODE OF ETHICS

If you know of or suspect a violation of applicable laws, rules, or regulations of this Code of
Ethics, you must immediately report the information to an appropriate party, be that your manager,
the President & CEO, or the Chair of the Board of Directors. They may, in turn, refer complaints
to the Board of Directors or the appropriate committee of the Board of Directors. Failure to
report a violation is in itself a violation of the Code of Ethics. Refer to the Employee
Whistleblower policy for further details.

If you wish to discuss a concern or issue that is not financial or regulatory based, there are
several avenues available to you. You may talk to your supervisor, Human Resources, or the
management of the Company. If you wish to remain anonymous and/or wish to talk to an outside
entity, you may contact the Company’s neutral third-party confidential Ethics Hotline. The Ethics
Hotline is manned through Crawford Adjustors Canada and their toll free number is 1-866-725-0641.

No employee will be subject to retaliation by the Company if he or she makes a good faith report of
a suspected violation. Any other retaliation by employees will result in disciplinary action, up
to and including termination of employment or a consulting relationship.

The Company will investigate any alleged or suspected violation of this Code of Ethics within a
reasonable time following receipt of information suggesting a violation. The Company, in its sole
discretion, will determine an appropriate person or persons to conduct the investigation. The
Company will take action, as it deems appropriate, to respond to any violation of this Code of
Ethics, including, where appropriate, disciplinary action up to and including termination of
employment.

EMPLOYEE ACKNOWLEDGEMENT

I have read and understood this Code of Ethics, and agree to comply with it. I am aware that this
Code of Ethics may be amended, modified or waived by the Company. I am aware that a copy of the
signed Code of Ethics will be placed in my employee file.

	 	 	 	 
	Name & Signature:

	 	/s/ James Liddy	 
	Current Position:

	 	VP, Layered Security Solutions	 
	Date:

	 	April 4, 2007

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00144-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00144-of-00352.parquet"}]]