Document:

exv4w1

 

Exhibit 4.1

GENERAL MILLS, INC.

OFFICERS’ CERTIFICATE

AND

AUTHENTICATION ORDER

     Pursuant to the Indenture dated as of February 1, 1996 (the “Indenture”) between General
Mills, Inc. (the “Company”) and U.S. Bank National Association (formerly known as First Trust of
Illinois, National Association), as trustee (the “Trustee”), and resolutions adopted by the Board
of Directors of the Company on December 17, 2001 and the Finance Committee of the Board of
Directors of the Company on December 10, 2007, this Officers’ Certificate and Authentication Order
is being delivered to the Trustee to establish the terms of a series of Securities in accordance
with Section 301 of the Indenture, to establish the form of the Securities of such series in
accordance with Section 201 of the Indenture, to request the authentication and delivery of the
Securities of such series pursuant to Section 303 of the Indenture and to comply with the
provisions of Section 102 of the Indenture.

     Capitalized terms used but not defined herein and defined in the Indenture shall have the
respective meanings ascribed to them in the Indenture.

     A. Establishment of Series Pursuant to Section 301 of Indenture. There is hereby established
pursuant to Section 301 of the Indenture a series of Securities which shall have the following
terms (the numbered clauses set forth below correspond to the numbered subsections of Section 301
of the Indenture):

     (1) The series of Securities being authorized shall bear the title “5.200% Notes due
2015” (the “Notes”).

     (2) There shall be no limit upon the aggregate principal amount of the Notes which may
be authenticated and delivered under the Indenture; provided, however, that the aggregate
principal amount of Notes to be authenticated and delivered under the Indenture pursuant to
this Officers’ Certificate and Authentication Order shall be limited to the amount set forth
in Section C below (except for Notes authenticated and delivered upon registration of
transfer of, or in exchange for, or in lieu of, other Notes pursuant to Sections 304, 305,
306, 906 or 1107 of the Indenture and except for any Notes which, pursuant to Section 303 of
the Indenture, are deemed never to have been authenticated and delivered under the
Indenture).

     (3) Interest on each Note will be paid to the Person in whose name the Note is
registered at the close of business on the Regular Record Date (as defined in paragraph 5
below), except that interest due at Maturity will be paid to the Person to whom the
principal of the Note is paid.

     (4) The Notes will mature on March 17, 2015, unless the principal of any Note, or any
installment of principal, becomes due and payable prior to such date. If the date of
Maturity of a Note is not a Business Day, the payment due on such day shall be
made on the next succeeding Business Day and no additional interest shall accrue for
the period from Maturity to that next succeeding Business Day.

 

 

     (5) Each Note will bear interest from and including March 17, 2008 or from and
including the most recent Interest Payment Date (as defined below) as to which interest on
such Note (or any Predecessor Security with respect to such Note) has been paid or made
available for payment at an annual rate of 5.200% until the principal of the Note is paid or
made available for payment. Each payment of interest on a Note will include interest to,
but excluding, as the case may be, the relevant Interest Payment Date or Maturity.

     The “Interest Payment Dates” for the Notes will be March 17 and September 17 of each
year beginning on September 17, 2008 and the Regular Record Dates will be the March 3 or
September 3, respectively, next preceding such Interest Payment Date whether or not a
Business Day. If any Interest Payment Date is not a Business Day, the payment due on such
day shall be made on the next succeeding Business Day and no additional interest shall
accrue for the period from such Interest Payment Date to that next succeeding Business Day.

     Interest (including interest for partial periods) will be calculated on the basis of a
360-day year of twelve 30-day months.

     (6) Payment of principal of and premium (if any) and interest on each Note that is
represented by a Global Security will be made to the Depositary (as specified in paragraph
16 below) or its nominee, as the case may be, as the sole registered owner and the sole
Holder of the Notes represented thereby for all purposes under the Indenture.

     Payment of principal of and premium (if any) and interest on each Note that is not
represented by a Global Security will be made upon presentation and surrender of such Note
at the office or agency maintained by the Company for that purpose in the Borough of
Manhattan, The City of New York (which shall initially be the office of the Trustee).
Registered Holders that wish to receive payment in immediately available funds must provide
appropriate written wire transfer instructions sufficiently in advance of the payment date
and present the Note in time for the party making the payment to make payments in such funds
in accordance with its normal procedures. Any wire transfer instructions received by a
party making payments shall remain in effect until revoked by the registered Holder.
Payment in accordance with written wire transfer instructions from a registered Holder shall
be deemed to constitute full and complete payment of all amounts so paid. The Company may,
at its option, elect to make payments of interest other than at Maturity by check mailed to
the address of the registered Holder thereof as of the close of business on the relevant
Regular Record Date as such address appears in the Security Register.

     The “Place of Payment” with respect to the Notes shall be The City of New York.

     (7) The Company may redeem the Notes, in whole or in part, at its option at any time or
from time to time at a Redemption Price equal to the greater of (i) 100% of the principal
amount of the Notes being redeemed on the Redemption Date and (ii) as determined by the
Quotation Agent (as defined below), the sum of the present values of the remaining scheduled
payments of principal and interest on the Notes being redeemed

 

 

on the Redemption Date (not
including any portion of such payments of interest accrued as of the Redemption Date)
discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting
of twelve 30-day months or in the case of an incomplete month, the number of days elapsed)
at the Adjusted Treasury Rate (as defined below) plus 40 basis points, plus, in the case of
both (i) and (ii) above, accrued and unpaid interest on the Notes to but excluding the
Redemption Date. Notwithstanding the foregoing, installments of interest on Notes that are
due and payable on Interest Payment Dates falling on or prior to a Redemption Date will be
payable on the Interest Payment Date to the Holders as of the close of business on the
relevant Regular Record Date. Notice of redemption will be given to the registered Holders
of the Notes to be redeemed not less than 30 nor more than 60 days prior to the Redemption
Date, which date and the applicable Redemption Price will be specified in the notice. Once
notice of redemption is mailed, the Notes or any portion of the Notes called for redemption
will become due and payable on the Redemption Date and at the applicable Redemption Price,
plus accrued and unpaid interest to, but excluding, the Redemption Date. On and after the
Redemption Date, interest will cease to accrue on the Notes or any portion of the Notes
called for redemption (unless the Company defaults in the payment of the Redemption Price
and accrued interest). On or before the Redemption Date, the Company will deposit with a
Paying Agent (or the Trustee) money sufficient to pay the Redemption Price of and accrued
interest on the Notes or any portion of the Notes to be redeemed on that date. For purposes
of the foregoing: (a) “Adjusted Treasury Rate” means, with respect to any Redemption Date,
the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable
Treasury Issue (as defined below), calculated using a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury
Price (as defined below) for such Redemption Date; the Adjusted Treasury Rate shall be
calculated on the third Business Day preceding the Redemption Date; (b) “Comparable Treasury
Issue” means the United States Treasury security selected by the Quotation Agent as having a
maturity comparable to the remaining term of the Notes that would be utilized, at the time
of selection and in accordance with customary financial practice, in pricing new issues of
corporate debt securities of comparable maturity to the remaining term of the Notes; (c)
“Comparable Treasury Price” means, with respect to any Redemption Date, the average of the
Reference Treasury Dealer Quotations (as defined below) for such Redemption Date; (d)
“Quotation Agent” means the Reference Treasury Dealer (as defined below) appointed by the
Trustee after consultation with the Company; (e) “Reference Treasury Dealer” means any
primary U.S. government securities dealer in the United States selected by the Trustee after
consultation with the Company; (f) “Reference Treasury Dealer Quotations” means, with
respect to each Reference Treasury Dealer and any Redemption Date, the average, as
determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m. in The City of
New York on the third Business Day preceding such Redemption Date.

     (8)
If a Change of Control Triggering Event (as defined in the form of Note attached
hereto as Exhibit A) shall have occurred, holders of the Notes may require the Company to
repurchase all or any part of the Notes in the manner provided and subject to the
limitations set forth in the form of Note attached hereto as Exhibit A.

 

 

     (9) The Notes shall be issuable in denominations of $2,000 and integral multiples of
$1,000 in excess thereof.

     (15) The Notes shall be defeasible, in whole or any specified part, pursuant to Section
1302 or Section 1303 of the Indenture or both such Sections.

     (16) The Notes shall be issuable in whole or in part in the form of one or more Global
Securities registered in the name of the Depositary or its nominee. The Depositary with
respect to such Global Securities shall be The Depository Trust Company. The Global
Securities shall bear the legends set forth on the form of Note attached hereto as Exhibit
A. Such Global Security may not be exchanged in whole or in part for Securities registered,
and no transfer of such Global Security in whole or in part may be registered, in the name
or names of Persons other than the Depositary for such Global Security or a nominee thereof,
unless (a) the Depositary notifies the Company that it is unwilling or unable to continue as
Depositary for such Global Security or if at any time the Depositary ceases to be a clearing
agency registered under the Securities Exchange Act of 1934, as amended, and, in either
case, the Company does not appoint a successor Depositary within 90 days after receiving
that notice or becoming aware that the Depositary is no longer so registered, (b) the
Company executes and delivers to the Trustee a Company Order that such Global Security shall
be so exchangeable or (z) an Event of Default with respect to such Global Security has
occurred and is continuing, and the Depositary requests the issuance of Securities
registered in the name or names of Persons other than the Depositary for such Global
Security or a nominee thereof. So long as the Depositary or its nominee is the registered
holder of any Global Security, the Depositary or its nominee, as the case may be, will be
considered the sole Holder of the Notes represented by such Global Security for all purposes
under the Notes and the Indenture.

     B. Establishment of Form of Securities Pursuant to Section 201 of the Indenture. In
accordance with Section 201 of the Indenture, the form attached hereto as Exhibit A is hereby
established as the form to represent the Notes.

     C. Order for the Authentication and Delivery of Securities Pursuant to Section 303 of the
Indenture. Pursuant to Section 303 of the Indenture, you are hereby requested, as Trustee under
the Indenture, to authenticate, in the manner provided by the Indenture, $750,000,000 aggregate
principal amount of the Notes registered in the name of Cede & Co., which Notes have been
heretofore duly executed by the proper officers of the Company and delivered to you as provided in
the Indenture, and to deliver said authenticated Notes to
Morgan Stanley & Co. Incorporated through the facilities of The Depository Trust Company
against payment therefor on March 17, 2008.

     D. Certification Pursuant to Section 102 of the Indenture. Each of the undersigned has read
the pertinent sections of the Indenture, including Sections 201, 301 and 303 thereof and the
definitions in the Indenture relating thereto, and certain other corporate documents and records.
In the opinion of each of the undersigned, the undersigned has made such examination or
investigation as is necessary to enable the undersigned to express an informed opinion as to
whether or not the conditions precedent to (i) the establishment of (a) a

 

 

series of Securities and
(b) the form of such Securities and (ii) the issuance, authentication and delivery of such series
of Securities contained in the Indenture have been complied with. In the opinion of the
undersigned, all conditions precedent to (x) the establishment of the Notes and the form of the
Notes and (y) the issuance, authentication and delivery of the Notes have been complied with.

     Insofar as this Officers’ Certificate and Authentication Order relates to legal matters, it is
based upon the Opinion of Counsel delivered by the Company to the Trustee contemporaneously
herewith.

[remainder of page left intentionally blank]

 

 

     IN WITNESS WHEREOF, the undersigned have hereunto signed our names on behalf of the Company.

Dated: March 17, 2008

	 	 	 	 	 
	 	GENERAL MILLS, INC.

 	 

	 	 	 	 	 
	 	 	 
	 	By  	/s/ Donal L. Mulligan
 	 
	 	 	Donal L. Mulligan 	 
	 	 	Its Executive Vice President,
Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	 	 
	 	By  	/s/ Daralyn K. Peifer
 	 
	 	 	Daralyn K. Peifer 	 
	 	 	Its Vice President, Treasurer 	 
	 

CERTIFICATION

     I, Christopher A. Rauschl, an Assistant Secretary of the Company, do hereby certify that Donal
L. Mulligan is on the date hereof the duly elected or appointed Executive Vice President, Chief
Financial Officer of the Company and the signature set forth above is his own true signature, and
further certify that Daralyn K. Peifer is on the date hereof the duly elected or appointed Vice
President, Treasurer of the Company and the signature set forth above is her own true signature.

	 	 	 	 	 
	 	 	 
	 	  	/s/ Christopher A. Rauschl
 	 
	 	 	Christopher A. Rauschl 	 
	 	 	Assistant Secretary 	 

 

 

	 	 	 	 	 

Exhibit A

			
	 	 	 
	REGISTERED NO.                     
	 	PRINCIPAL AMOUNT:
	$                                        	 	 

GENERAL MILLS, INC.

5.200% NOTE DUE 2015

					
	 	 	 	 	 
	CUSIP NO. 370334 BF0
	 	ISIN No. US370334BF06
	 	Common Code No. 035383522

     UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION, TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME
AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND
IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED
IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART
MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF,
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

     GENERAL MILLS, INC., a corporation duly organized and existing under the laws of the State of
Delaware (herein called the “Company,” which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to CEDE &CO., or registered
assigns, the principal sum of ___Dollars (U.S. $___) on March 17, 2015 (the “Maturity
Date”), and to pay interest thereon from and including March 17, 2008 or the most recent Interest
Payment Date (as defined below) as to which interest has been paid or made available for payment,
semiannually in arrears on March 17 and September 17 in each year (each an “Interest Payment
Date”), commencing on September 17, 2008, at the rate of 5.200% per annum until the principal
hereof has been paid or duly made available for payment. Interest (including interest for partial
periods) will be calculated on the basis of a 360-day year of twelve 30-day months. Each payment
of interest hereon will include interest to, but excluding, as the case may be, the relevant
Interest Payment Date or Maturity.

     The interest so payable, and punctually paid or made available for payment, on any Interest
Payment Date will, as provided for in the Indenture, be paid to the Person in whose name this Note
(or

 

 

one or more Predecessor Securities with respect hereto) is registered at the close of business on
the Regular Record Date for such Interest Payment Date, which shall be the March 3 or September 3
(whether or not a Business Day), as the case may be, next preceding such Interest Payment Date;
except that interest due at Maturity will be paid to the Person to whom the principal is paid. Any
such interest not so punctually paid or made available for payment will forthwith cease to be
payable to the Person in whose name this Note (or one or more Predecessor Securities with respect
hereto) is registered at the close of business on such Regular Record Date and may either be paid
to the Person in whose name this Note (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed
by the Trustee, notice whereof shall be given to the Holder of this Note not less than 10 days
prior to such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange on which the Notes may be listed, and
upon such notice as may be required by such exchange, all as more fully provided in the Indenture.

	 	 	Payment of principal of and premium (if any) and interest on this Note will be made to The
Depository Trust Company or its nominee, as the case may be, as the sole registered owner and
the sole Holder of the Note represented hereby for all purposes under the Indenture.

     The “Place of Payment” with respect to this Note shall be The City of New York.

     All payments on this Note will be made in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts.

     Any payment on this Note due on a day that is not a Business Day will be made
on the next succeeding Business Day with the same force and effect as if made on the
due date and no additional interest shall accrue for the period from and after such
date.

     Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall have the same effect as though fully set forth in this
place.

     Unless the certificate of authentication hereon has been executed by or on behalf of the
Trustee for the Notes by manual signature, this Note shall not be entitled to any benefit under the
Indenture, or be valid or obligatory for any purpose.

 

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed
and has caused a facsimile of its corporate seal to be affixed hereto or imprinted
hereon.

Dated: March 17, 2008

	 	 	 	 	 	 	 	 	 	 	 
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Securities

of the series designated herein

referred to in the within-mentioned	 	 	 	GENERAL MILLS, INC.
	Indenture.

	 	 	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Daralyn K. Peifer
	 

	 	 	 	 	 	 	 	 	 	Its Vice President, Treasurer
	 
	 	 	 	 	 	 	 	 	 	 
	U. S. BANK NATIONAL ASSOCIATION, as Trustee	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Attest:	 	 
	 

	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	Christopher A. Rauschl
	 

	 	 	 	 	 	 	 	 
	 

	 	Authorized Officer
	 	 	 	 	 	Its Assistant Secretary
	 
	 	 	 	 	 	 	 	 
	OR
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	[SEAL]	 	 
	 	 	 	 	 	 	 
	as Authenticating Agent for the Trustee	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	Authorized Officer	 	 	 	 	 	 

 

 

[REVERSE OF NOTE]

GENERAL MILLS, INC.

5.200% NOTE DUE 2015

     This Note is one of a duly authorized issue of securities of the Company (herein called the
“Securities”), issued and to be issued in one or more series under an Indenture, dated as of
February 1, 1996 (herein called the “Indenture”, which term shall have the meaning assigned to it
in such instrument), between the Company and U.S. Bank National Association (f.k.a. First Trust of
Illinois, National Association), as Trustee (herein called the “Trustee”, which term includes any
successor trustee under the Indenture), and reference is hereby made to the Indenture and all
indentures supplemental thereto for a statement of the respective rights, limitations of rights,
duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities and
of the terms upon which the Securities are, and are to be, authenticated and delivered. By the
terms of the Indenture, additional Securities of other separate series, which may vary as to date,
amount, Stated Maturity, interest rate or method of calculating the interest rate and in other
respects as therein provided, may be issued in an unlimited principal amount. This Note is one of
a series of the Securities designated as 5.200% Notes due 2015 (the “Notes”).

     In case an Event of Default with respect to the Notes shall have occurred and be continuing,
the unpaid principal hereof may be declared, and upon such declaration shall become, due and
payable in the manner, with the effect and subject to the conditions provided in the Indenture.

     The Company may at its option redeem this Note in whole or from time to time in part at the
Make-Whole Price (as defined below). The Company may exercise such option by mailing or causing
the Trustee to mail a notice of such redemption at least 30 but not more than 60 days prior to the
Redemption Date. In the event of redemption of this Note in part only, a new Note or Notes for the
unredeemed portion hereof shall be issued in the name of the Holder hereof upon the cancellation
hereof. If less than all of the Securities with like tenor and terms to this Security are to be
redeemed, the Securities to be redeemed shall be selected by the Trustee by such method as the
Trustee shall deem fair and
appropriate. The Company shall notify the Trustee of the Make-Whole Price with respect to any

 

 

     redemption promptly after the calculation thereof, and the Trustee shall not be responsible for
such calculation.

     “Make-Whole Price” means an amount equal to the greater of (i) 100% of the principal amount of
this Note to be redeemed and (ii) as determined by the Quotation Agent (as defined below), the sum
of the present values of the remaining scheduled payments of principal and interest thereon (not
including any portion of such payments of interest accrued as of the Redemption Date) discounted to
the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day
months or in the case of an incomplete month, the number of days elapsed) at the Adjusted Treasury
Rate (as defined below) plus 0.40%, plus, in the case of both (i) and (ii), accrued and unpaid
interest to the Redemption Date. Unless the Company defaults in payment of the Make-Whole Price,
on and after the Redemption Date, interest will cease to accrue on the principal amount of this
Note to be redeemed.

     “Adjusted Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal
to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue (as defined
below), calculated using a price for the Comparable Treasury Issue (expressed as a percentage of
its principal amount) equal to the Comparable Treasury Price (as defined below) for such Redemption
Date. The Adjusted Treasury Rate shall be calculated on the third Business Day preceding the date
of redemption.

     “Comparable Treasury Issue” means the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the remaining term of this Note that would be
utilized, at the time of selection and in accordance with customary financial practice, in pricing
new issues of corporate debt securities of comparable maturity to the remaining term of this Note.

     “Comparable Treasury Price” means, with respect to any Redemption Date, the average of the
Reference Treasury Dealer Quotations (as defined below) for such Redemption Date.

     “Quotation Agent” means the Reference Treasury Dealer (as defined below) appointed by the
Trustee after consultation with the Company.

     “Reference Treasury Dealer” means any primary U.S. government securities dealer in the United
States selected by the Trustee after consultation with the Company.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference

 

 

Treasury Dealer and any Redemption Date, the average, as determined by the Trustee, of the bid and
asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m.
in The City of New York on the third Business Day preceding such Redemption Date.

     If a Change of Control Triggering Event shall have occurred, the Holder of this Note may
require the Company to repurchase all or any part (equal to an integral multiple of $1,000) of this
Note at a purchase price equal to 101% of the principal amount of, plus accrued and unpaid
interest, if any, to the date of purchase on, the Note (or part thereof) to be purchased (unless
the Company shall have mailed or caused to be mailed a notice of redemption within 30 days after
such Change of Control Triggering Event stating that all of the Notes will be redeemed); provided
that the principal amount of this Note remaining outstanding after a repurchase in part shall be
$2,000 or an integral multiple of $1,000 in excess thereof. Within 30 days after any Change of
Control Triggering Event, the Company shall mail or cause the Trustee to mail a notice describing
the transaction or transactions constituting the Change of Control Triggering Event and offering to
repurchase the Notes. Such repurchase must occur no earlier than 30 days and no later than 60 days
after the date such notice is mailed.

     On the date specified for repurchase of the Notes, the Company shall, to the extent lawful:

	 	•	 	accept for payment all Notes or portions of Notes properly tendered pursuant to the
offer to repurchase the Notes;
	 
	 	•	 	deposit with the Paying Agent the required payment for all Notes or portions of Notes
properly tendered pursuant to the offer to repurchase the Notes; and
	 
	 	•	 	deliver to the Trustee the repurchased Notes, accompanied by an Officers’ Certificate
stating the aggregate principal amount of Notes repurchased pursuant to the offer to
repurchase the Notes.

     The Company shall comply with the requirements of Rule 14e-1 under the Securities Exchange Act
of 1934 and any other securities laws and regulations applicable to the repurchase of the Notes.
To the extent that these securities laws and regulations conflict with the provisions of this Note
requiring repurchase of the Notes upon a Change of Control Triggering Event, the Company shall
comply with

 

 

these securities laws and regulations instead of the repurchase provisions of this
Note, and the Company will not be considered to have breached its obligation to repurchase the
Notes. Additionally, if an Event of Default unrelated to the repurchase provisions of this Note
exists under the Indenture, including Events of Default arising with respect to other issues of
Securities, the Company shall not be required to repurchase the Notes, notwithstanding the
repurchase provisions of this Note.

     The Company shall not be required to comply with obligations relating to repurchase of the
Notes upon a Change of Control Triggering Event if a third party satisfies such obligations.

     “Change of Control” means the occurrence of any of the following: (a) the consummation of any
transaction (including, without limitation, any merger or consolidation) resulting in any “person”
(as that term is used in Section 13(d)(3) of the Securities Exchange Act of 1934) (other than
the Company or one of its subsidiaries) becoming the beneficial owner (as defined in Rules 13d-3
and 13d-5 under the Securities Exchange Act of 1934), directly or indirectly, of more than 50% of
the Company’s Voting Stock or other Voting Stock into which the Company’s Voting Stock is
reclassified, consolidated, exchanged or changed, measured by voting power rather than number of
shares; (b) the direct or indirect sale, transfer, conveyance or other disposition (other than by
way of merger or consolidation), in a transaction or a series of related transactions, of all or
substantially all of the assets of the Company and its subsidiaries, taken as a whole, to one or
more Persons (other than the Company or one of its subsidiaries); or (c) the first day on which a
majority of the members of the Board of Directors of the Company are not Continuing Directors.
Notwithstanding the foregoing, a transaction will not be considered to be a Change of Control if
(a) the Company becomes a direct or indirect wholly-owned subsidiary of a holding company and
(b)(y) immediately following such transaction, the direct or indirect holders of the Voting Stock
of the holding company are substantially the same as the Holders of the Company’s Voting Stock
immediately prior to such transaction or (z) immediately following such transaction no Person is the beneficial
owner, directly or indirectly, of more than 50% of the Voting Stock of the holding company.

     “Change of Control Triggering Event” means the occurrence of both a Change of Control and a
Rating Event.

 

 

     “Continuing Directors” means, as of any date of determination, any member of the Company’s
Board of Directors who (a) was a member of the Board of Directors on March 17, 2008 or (b) was
nominated for election, elected or appointed to the Board of Directors with the approval of a
majority of the Continuing Directors who were members of the Board of Directors at the time of such
nomination, election or appointment (either by a specific vote or by approval of a proxy statement
of the Company in which such member was named as a nominee for election as a director, without
objection to such nomination).

     “Fitch” means Fitch Ratings.

     “Investment Grade Rating” means a rating equal to or higher than BBB– (or the equivalent) by
Fitch, Baa3 (or the equivalent) by Moody’s and BBB– (or the equivalent) by S&P, and the equivalent
investment grade credit rating from any replacement Rating Agency or Rating Agencies selected by
the Company.

     “Moody’s” means Moody’s Investors Service, Inc.

     “Rating Agencies” means (a) each of Fitch, Moody’s and S&P; and (b) if any of Fitch, Moody’s
or S&P ceases to rate the Notes or fails to make a rating of the Notes publicly available for
reasons outside of the Company’s control, a “nationally recognized statistical rating
organization’’ (within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Securities Exchange Act of
1934) selected by the Company as a replacement Rating Agency for a former Rating Agency.

     “Rating Event” means the rating on the Notes is lowered by each of the Rating Agencies and the
Notes are rated below an Investment Grade Rating by each of the Rating Agencies on any day within
the 60-day period (which 60-day period will be extended so long as the rating of the Notes is under
publicly announced consideration for a possible downgrade by any of the Rating Agencies) after the
earlier of (a) the occurrence of a Change of Control and (b) public notice of the occurrence of a
Change of Control or the Company’s intention to effect a Change of Control; provided that a Rating
Event will not be deemed to
have occurred in respect of a particular Change of Control (and thus will not be deemed a
Rating Event for purposes of the definition of Change of Control Triggering Event) if each Rating
Agency making the reduction in rating does not publicly announce or confirm or inform the Trustee
in writing at the request of the Company that the reduction was the result, in whole or in part, of
any event or circumstance

 

 

comprised of or arising as a result of, or in respect of, the Change of
Control (whether or not the applicable Change of Control has occurred at the time of the Rating
Event).

     “S&P” means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc.

     “Voting Stock” means, with respect to any specified person (as that term is used in Section
13(d)(3) of the Securities Exchange Act of 1934) as of any date, the capital stock of such person that is at the time
entitled to vote generally in the election of the board of directors of such person.

     The Company may, without the consent of the Holders of the Notes, issue additional Securities
having the same ranking and the same interest rate, maturity and other terms as the Notes. Any
additional Securities having the same terms, together with these Notes, will constitute a single
series of Notes under the Indenture. No such additional Securities may be issued if an Event of
Default has occurred with respect to these Notes.

     The Indenture contains provisions for defeasance at any time of either the entire principal of
the Notes or of certain covenants and Events of Default with respect to the Notes, in either case
upon compliance by the Company with certain conditions set forth in the Indenture.

     This Global Security is exchangeable for definitive Notes only if (x) the Depositary notifies
the Company that it is unwilling or unable to continue as Depositary for this Global Security or if
at any time the Depositary ceases to be a clearing agency registered under the Securities Exchange
Act of 1934, as amended, and, in either case, the Company does not appoint a successor Depositary
within 90 days after receiving that notice or becoming aware that the Depositary is no longer so
registered, (y) the Company executes and delivers to the Trustee a Company Order that this Global
Security shall be so exchangeable or (z) an Event of Default with respect to the Notes represented
hereby has occurred and is continuing and the Depositary requests the issuance of definitive Notes.
In such case, this Global Security shall be
exchangeable into Notes issuable only in denominations of $2,000 and integral multiples of $1,000
in excess thereof. No Notes shall be issuable in denominations of less than $2,000. If this
Global Security is exchangeable pursuant to the preceding sentences, it shall be exchangeable for
definitive Notes, bearing interest at the same rate, having the same date of issuance, redemption

 

 

provisions, Stated Maturity and other terms in registered form and of differing denominations
aggregating a like amount.

     As provided in the Indenture and subject to the limitations herein and therein set forth, the
transfer of this Note is registrable in the Security Register, upon surrender of this Note for
registration of transfer at the office or agency of the Company in any place where the principal of
and any premium and interest on this Note are payable, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the Security Registrar duly
executed by the Holder hereof or the Holder’s attorney duly authorized in writing, and thereupon
one or more new Notes of authorized denominations and for the same aggregate principal amount will
be issued to the designated transferee or transferees.

     The Notes are issuable only in registered form without coupons in denominations of $2,000 and
integral multiples of $1,000 in excess thereof. No Notes will be issuable in denominations of less
than $2,000. As provided in the Indenture and subject to the limitations herein and therein set
forth, the Notes are exchangeable for a like aggregate principal amount of Notes and of like tenor
in denominations of $2,000 and integral multiples of $1,000 in excess thereof, as requested by the
Holder surrendering the same.

     No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of and interest on this Note at the places, at the respective times and at the rate
herein prescribed.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the
consent of the Holders of not less than a majority in aggregate principal amount of the Securities
at the time Outstanding of each series to be affected. The Indenture also contains provisions
permitting the Holders of specified percentages in aggregate principal amount of the Securities of
each series at the

 

 

time Outstanding, on behalf of the Holders of all Securities of such series, to
waive compliance by the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note
shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of
any Note issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Note.

     As provided in and subject to the provisions of the Indenture, the Holder of this Note shall
not have the right to institute any proceeding with respect to the Indenture or for the appointment
of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have
previously given the Trustee written notice of a continuing Event of Default with respect to the
Notes, the Holders of not less than 25% in principal amount of the Notes at the time Outstanding
shall have made written request to the Trustee to institute proceedings in respect of such Event of
Default as Trustee and offered the Trustee reasonable indemnity, and the Trustee shall not have
received from the Holders of a majority in principal amount of the Notes at the time Outstanding a
direction inconsistent with such request, and shall have failed to institute any such proceeding,
for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not
apply to any suit instituted by the Holder of this Note for the enforcement of any payment of
principal hereof or any premium or interest hereon on or after the respective due dates expressed
herein.

     Prior to due presentment of this Note for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may deem and treat the Person in whose name this Note
is registered as the absolute owner of this Note at such holder’s address as it appears on the
Security Register (whether or not this Note shall be overdue) for the purpose of receiving payment
of or on account hereof and for all other purposes, and neither the Company nor the Trustee nor any
such agent shall be affected by any notice to the contrary. All payments made to or upon the order
of such registered
holder shall, to the extent of the sum or sums paid, effectually satisfy and discharge liability
for moneys payable on this Note.

     No recourse under or upon any obligation, covenant or agreement contained in the Indenture
or in any indenture supplemental thereto or any Note, or because of any indebtedness
evidenced thereby,

 

 

shall be had against any incorporator, or against any past, present or
future stockholder, officer or director, as such, of the Company or of any successor
corporation, either directly or through the Company or any successor corporation, under any
rule of law, statute or constitutional provision or by the enforcement of any assessment or
by any legal or equitable proceeding or otherwise, all such personal liability of every such
incorporator, stockholder, officer and director, as such, being expressly waived and
released by acceptance hereof and as a condition of and as part of the consideration for the
issuance of this Note.

     Capitalized terms used herein which are not defined herein shall have the respective meanings
assigned thereto in the Indenture.

     The Indenture is, and this Note shall be, governed by and construed in
accordance with the laws of the State of New York.

 

 

 

ABBREVIATIONS

          The following abbreviations, when used in the inscription on the face of this instrument,
shall be construed as though they were written out in full according to applicable laws or
regulations:

	 	 	 	 	 
	TEN COM

	 	—as tenants in common
	 	UNIF TRAN MIN ACT—___CUSTODIAN___
	TEN ENT

	 	—as tenants by the entireties
	 	                    (Cust)                    (Minor)
	JT TEN

	 	—as joint tenants with right
	 	Under Uniform Transfers to Minors Act
	 

	 	     of survivorship and not as	 	 
	 

	 	     tenants in common	 	 
	 

	 	 	 	 
	 

	 	 	 	(State)

          Additional abbreviations may also be used though not in the above list.

          FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

Please insert Social Security or

Other identifying Number of Assignee

/               /

 

PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE

 

 

the within Note of GENERAL MILLS, INC. and does hereby irrevocably constitute and appoint                                                              attorney to transfer said Note on the books of the
Company, with full power of substitution in the premises.

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

NOTICE: The signature to this assignment must correspond with the name as written upon the face of
the within instrument in every particular, without alteration or enlargement or any change
whatever.exv10w1

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (“Agreement”) is executed as of this 13th day of March, 2008, by and
between Brian E. Dearing (“Executive”) and ARI Network Services, Inc. (the “Company”).

RECITALS

     The Company desires to continue to employ Executive, and Executive desires to be employed by
the Company, on the terms and conditions set forth herein.

     As a result of Executive’s employment with the Company, Executive will have access to and be
entrusted with valuable information about the Company’s business and customers, including trade
secrets and confidential information; and

     The Parties believe it is in their best interests to make provision for certain aspects of
their relationship during and after the period in which Executive is employed by the Company.

     NOW, THEREFORE, in consideration of the promises and the mutual agreements and covenants
contained herein, and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged by the Company and Executive (collectively, “Parties” and
individually, “Party”), the Parties agree as follows:

ARTICLE I

EMPLOYMENT

     1.1 Position and Duties. Executive is currently employed as Chief Executive Officer
(“CEO”) and will continue in such role for the term of this Agreement, unless subject to earlier
termination as provided for in Article III or in the event that the Company’s Board of Directors
(“Board”) recruits and hires a replacement CEO. In the event that a replacement CEO is recruited
and hired by the Company, Executive shall continue as the executive Chairman of the Board with
those duties and responsibilities, consistent with the role of an executive Chairman of the Board,
reasonably assigned to him from time to time by the Board, including, as needed, any transition of
duties. Executive’s duties and responsibilities as CEO shall include all those customarily
attendant to the position of CEO and as may be assigned from time to time by the Board. Executive
acknowledges and agrees that, if and when Executive’s position changes from CEO to that of
executive Chairman of the Board, such change shall not be treated as Good Reason under this
Agreement or the Executive’s Change Of Control Agreement, dated April 1, 2006 (“COC Agreement”).
At all times, Executive shall devote Executive’s entire business time, attention and energies
exclusively to the business interests of the Company while employed by the Company, except as
otherwise specifically approved in writing by or on behalf of the Board. During the Employment
Term and any Renewal Term, the Board shall nominate Executive as a nominee for director of the
Company and shall use its best efforts to encourage the shareholders to elect Executive as a
director of the Company.

 

 

     1.2 Term of Employment. The Company employs Executive, and Executive accepts
employment by the Company, for a three (3) year term commencing on the date hereof (“Employment
Term”), subject to earlier termination as hereinafter set forth in Article III. Following the
expiration of the Employment Term, this Agreement shall be automatically renewed for successive one
(1) year periods (collectively, “Renewal Terms”; individually, “Renewal Term”) unless, at least
thirty (30) business days prior to the commencement of the third (3rd) year of the
Employment Term or the current Renewal Term, either Party provides the other with a written notice
of intention not to renew, in which case this Agreement shall terminate effective as of the end of
the Employment Term or said Renewal Term, as applicable, or as otherwise agreed upon by Executive
and the Company. If this Agreement is renewed, the terms of this Agreement during such Renewal
Term shall be the same as the terms in effect immediately prior to such renewal, subject to any
such changes or modifications as mutually may be agreed between the Parties as evidenced in a
written instrument signed by both the Company and Executive.

ARTICLE II

COMPENSATION AND OTHER BENEFITS

     2.1 Base Salary. During the Employment Term and any Renewal Term, the Company shall
pay Executive an annual salary of $192,686.78, which is equivalent or greater than the salary
received by Executive prior to the
commencement of this Agreement, payable in accordance with the normal payroll practices and
schedule of the Company.

     2.2 Bonuses. During the Employment Term and any Renewal Term, Executive will continue
to be eligible to participate in the Company’s Management Incentive Bonus Plan on substantially the
same terms as he currently participates or any successor plans for senior executives (“Bonus
Plan”), the specifics of which are determined by the Compensation Committee and approved by the
Board. In the event that the Company terminates or modifies in any material way the long-term
incentive compensation component or any other component of the Company’s Management Incentive Bonus
Plan, Executive shall receive the same treatment as other similarly situated executive employees.

     2.3 Equity. During the Employment Term and any Renewal Term, Executive shall be
eligible to participate in stock option plans and grants, if any, that are offered to senior
executive/officer employees of the Company.

     2.4 Perquisites, Benefits and Other Compensation. During the Employment Term or any
Renewal Term and subject to the express provisions of this Article II, Executive will be entitled
to receive perquisites and benefits provided by the Company to its senior executive employees,
subject to the eligibility criteria related to such perquisites and benefits and to such changes,
additions, or deletions to such perquisites and benefits as the Company may make from time to time,
as well as such other perquisites or benefits as may be specified from time to time at the sole
discretion of the Board.

2

 

ARTICLE III

TERMINATION

     3.1 Termination Not In Connection With A Change In Control.

	 	(a)	 	Termination Without Cause. Subject to Paragraph 3.2,
below, the Company may terminate Executive’s employment and all of the
Company’s obligations under this Agreement at any time without Cause (defined
below).
	 
	 	(b)	 	Termination For Cause. Subject to Paragraph 3.2,
below, the Company may terminate Executive’s employment and all of the
Company’s obligations under this Agreement at any time for Cause (defined
below) by giving written notice to Executive stating the basis for such
termination, effective immediately upon giving such notice or at such other
time thereafter as the Company may designate. “Cause” shall mean any of the
following: (1) Executive has breached this Agreement in a material way or has
breached in a material way the fiduciary duty he owes to the Company or any
other obligation or duty he owes to the Company under this Agreement, which
breach remains uncured, if subject to cure, to the reasonable satisfaction of
the Board for thirty (30) calendar days after Executive receives written notice
thereof from the Board; (2) Executive has committed gross negligence or willful
misconduct in the performance of Executive’s duties for the Company; (3)
Executive has failed in a material way to follow reasonable instructions from
the Board, consistent with this Agreement, concerning the operations or
business of the Company, which failure remains uncured, if subject to cure, to
the reasonable satisfaction of the Board for thirty (30) calendar days after
Executive receives written notice thereof from the Board; (4) Executive has
committed a crime the circumstances of which substantially relate to
Executive’s employment duties with the Company; (5) Executive has
misappropriated or embezzled funds or property of the Company or engaged in any
material act of dishonesty; and (6) Executive has attempted to obtain a
personal profit from any transaction in which the Executive knows or reasonably
should know the Company has an interest, and which constitutes a corporate
opportunity of the Company, or which is adverse to the interests of the
Company, unless the transaction was approved in writing by the Company’s Board
after full disclosure of all details relating to such transaction.
	 
	 	(c)	 	Termination by Death or Disability. Subject to
Paragraph 3.2, below, Executive’s employment and the Company’s obligations
under this Agreement shall terminate automatically, effective immediately and
without any notice being necessary, upon Executive’s death or a determination
of Disability of Executive. For purposes of this Agreement, “Disability” means
the inability of Executive, due to a physical or mental

3

 

	 	 	 	impairment, to perform
the essential functions of Executive’s job with the Company, with or without a
reasonable accommodation, for ninety (90) consecutive business days or one
hundred twenty (120) business days in the aggregate during any 365-day period.
A
determination of Disability shall be made by the Company, which may, at its
sole discretion, consult with a physician or physicians satisfactory to the
Company, and Executive shall cooperate with any efforts to make such
determination. Any such determination shall be conclusive and binding on the
Parties. Any determination of Disability under this Paragraph 3.1(c) is not
intended to alter any benefits any Party may be entitled to receive under any
long-term disability insurance policy carried by either the Company or
Executive with respect to Executive, which benefits shall be governed solely
by the terms of any such insurance policy.
	 
	 	(d)	 	Termination by Retirement. Subject to Paragraph 3.2,
below, Executive’s employment and the Company’s obligations under this
Agreement shall terminate automatically, effective upon Executive’s retirement
in accordance with the Company’s retirement plan or policy should a retirement
plan or policy for senior executives of the Company be adopted.
	 
	 	(e)	 	Termination by Resignation. Subject to Paragraph 3.2,
below, Executive’s employment and the Company’s obligations under this
Agreement shall terminate automatically, effective immediately upon Executive’s
provision of thirty (30) days’ prior written notice to the Company of
resignation from employment with the Company or at such other time as may be
mutually agreed between the Parties following the provision of such notice.
	 
	 	(f)	 	Termination for Good Reason. Subject to Section 3.2,
below, Executive may terminate his employment under this Agreement for Good
Reason (defined below). A termination shall only be for Good Reason if: (1)
within ninety (90) calendar days of the initial existence of Good Reason,
Executive provides written notice of Good Reason to the Company; (2) the
Company does not remedy said Good Reason within thirty (30) calendar days of
its receipt of such notice; and (3) Executive terminates his employment
effective any time after the expiration of such 30-day remedy period prior to
the date that is two (2) years after the initial existence of Good Reason, or
if sooner, during the Employment Term or Renewal Term, as applicable. “Good
Reason” shall mean the occurrence of any of the following without the written
consent of Executive: (a) Company has breached this Agreement in a material
way, which breach remains uncured, if subject to cure, for thirty (30) calendar
days after the Company receives written notice thereof from Executive; (b) a
material diminution in Executive’s Base Salary; (c) a material diminution in
Executive’s authority, duties, or responsibilities; or (d) a material change

4

 

	 	 	 	in the geographic location at which Executive must perform his services, provided
such new location is more than fifty (50) miles from the location where
Executive is required to perform services prior to the change.

     3.2 Rights Upon Termination Not In Connection With A Change In Control.

	 	(a)	 	Paragraph 3.1(a), Paragraph 3.1(c) and Paragraph 3.1(f)
Termination. If Executive’s employment is terminated pursuant to Paragraph
3.1(a), Paragraph 3.1(c), or Paragraph 3.1(f), above, Executive or Executive’s
estate shall have no further rights against the Company hereunder, except for
the right to receive the following: (1) any unpaid Base Salary with respect to
the period prior to the effective date of termination; (2) any earned but
unpaid bonus due to Executive as of the effective date of termination; (3)
Executive’s Base Salary, at the rate in effect at the time of termination,
through the end of the Employment Term or current Renewal Term; (4) a bonus for
the remainder of the Employment Term or current Renewal Term, which bonus shall
be equal to (a) the product of (i) the average of Executive’s bonus received
pursuant to the Company’s Bonus Plan for the three fiscal years of the Company
ending prior to the date of termination, (ii) a fraction, the numerator of
which is the actual number of days Executive was employed by the Company during
the Employment Term or current Renewal Term and the denominator of which is the
total number of days in the Employment Term or current Renewal Term, less (b)
any payment previously made by the Company, if any, with respect to the current
year’s Management Incentive Bonus; and (5) acceleration of all outstanding
unvested options held by Executive as of the date of termination. Payment of
the amounts specified in (3) and (4), above, shall be made in equal monthly
installments based on the remainder of the Employment Term or current Renewal
Term; provided, however, that if the end of the Employment Term or current
Renewal Term is later than September 15 of the calendar year following the
calendar year of the date of termination, all remaining monthly installments
shall be paid to Executive in a lump sum on September 15 of the calendar year
following the calendar year of the date of termination. Notwithstanding the
foregoing, the payment and receipt of the benefits specified in (3), (4) and
(5) are contingent upon Executive’s execution of a written severance agreement
(in a form satisfactory to the Company) containing, among other things, a
general release of claims against the Company, except if this Agreement is
terminated due to the death of Executive.
	 
	 	(b)	 	Paragraph 1.2, Paragraph 3.1(b) and Paragraph 3.1(e)
Terminations. If Executive’s employment is
terminated pursuant to Paragraph 3.1(b), above, Executive resigns pursuant to
Paragraph 3.1(e), above, or if either the Company or Executive fails to renew
this Agreement pursuant to Paragraph 1.2, above, Executive shall have no
further rights against the Company hereunder, except for the right to
receive: (1) any unpaid Base Salary with respect to the period prior to the
effective date of termination; and (2) any

5

 

	 	 	 	earned but unpaid bonus due to
Executive as of the effective date of termination.
	 
	 	(c)	 	Paragraph 3.1(d) Termination. If Executive retires
pursuant to Paragraph 3.1(d), above, Executive shall have no further rights
against the Company hereunder, except for the right to receive: (1) any unpaid
Base Salary with respect to the period prior to the effective date of
termination; (2) any earned but unpaid bonus due to Executive as of the
effective date of termination; and (3) any additional benefits provided for
under the Company’s retirement plan or policy for senior executives, if any.

     3.3 Termination In Connection With A Change In Control. Should Executive’s employment
be terminated upon the occurrence of or within two (2) years of a “Change in Control”, as defined
in Executive’s COC Agreement, the terms of such termination shall be governed exclusively by the
COC Agreement and Executive shall not be entitled to receive any of the benefits provided for under
this Article III.

ARTICLE IV

CONFIDENTIALITY

     4.1 Confidentiality Obligations. Executive will not, during the term of his
employment, directly or indirectly use or disclose any Confidential Information or Trade Secrets
except in the interest and for the benefit of the Company. After the end, for whatever reason, of
Executive’s employment with the Company, Executive will not directly or indirectly use or disclose
any Trade Secrets. For a period of two (2) years following the end, for whatever reason, of
Executive’s employment with the Company, Executive will not directly or indirectly use or disclose
any Confidential Information. Executive further agrees not to use or disclose at any time
information received by the Company from others except in accordance with the Company’s contractual
or other legal obligations; the Company’s Customers are third party beneficiaries of this promise.

     4.2 Definitions.

	 	(a)	 	Trade Secret. The term “Trade Secret” has that meaning
set forth under applicable law. The term includes, but is not limited to, all
computer source code created by or for the Company.
	 
	 	(b)	 	Confidential Information. The term “Confidential
Information” means all non-Trade Secret or proprietary information of the
Company which has value to the Company and which is not known to the public or
the Company’s competitors, generally. Confidential Information includes, but
is not limited to: (i) inventions, product specifications, information about
products under development, research, development or business plans, production
know-how and processes, manufacturing techniques, operational methods,
equipment design and layout, test results, financial information, customer
lists, information about orders and transactions with customers, sales and
marketing strategies, plans and techniques, pricing

6

 

	 	 	 	strategies, information
relating to sources of materials and production costs, purchasing and
accounting information, personnel information and all business records; (ii)
information which is marked or otherwise designated as confidential or
proprietary by the Company; and (iii) information received by the Company from
others which the Company has an obligation to treat as confidential.
	 
	 	(c)	 	Exclusions. Notwithstanding the foregoing, the terms
“Trade Secret” and “Confidential Information” shall not include, and the
obligations set forth in this Agreement shall not apply to, any information
which: (i) can be demonstrated by Executive to have been known by him prior to
his employment by the Company; (ii) is or becomes generally available to the
public through no act or omission of Executive; (iii) is obtained by Executive
in good faith from a third party who discloses such information to Executive on
a non-confidential basis without violating any obligation of confidentiality or
secrecy relating to the information disclosed; or (iv) is independently
developed by Executive outside the scope of his employment without use of
Confidential Information or Trade Secrets.

ARTICLE V

NON-COMPETITION

     5.1 Restrictions on Competition During Employment. During the Employment Term,
Executive shall not directly or indirectly compete against the Company, or directly or indirectly
divert or attempt to divert Customers’ business from the Company anywhere the Company does or is
taking steps to do business.

     5.2 Post-Employment Non-Solicitation of Restricted Customers. For two (2) years
following termination of Executive’s employment with the Company, for whatever reason, Executive
agrees not to directly or indirectly solicit or attempt to solicit any business from any Restricted
Customer in any manner which competes with the services or products offered by the Company in the
twelve (12) months preceding termination of Executive’s employment with the Company, or to directly
or indirectly divert or attempt to divert any Restricted Customer’s business from the Company.

     5.3 Post-Employment Restricted Services Obligation. For two (2) years following
termination of Executive’s employment with the Company, for whatever reason, Executive agrees not
to provide Restricted Services to any Competitor. During such two (2) year period, Executive also
will not provide any Competitor with any advice or counsel concerning the provision of Restricted
Services.

     5.4 Definitions.

	 	(a)	 	Customer. The term “Customer” means any individual or
entity for whom/which the Company has provided services or products or made a
written or formal proposal to perform services or provide products.

7

 

	 	(b)	 	Restricted Customer. The term “Restricted Customer”
means any individual or entity (i) for whom/which the Company provided services
or products and (ii) with whom/which Executive had contact on behalf of the
Company or about whom/which Executive acquired non-public information in
connection with his employment by the Company during the twenty-four (24)
months preceding the end, for whatever reason, of Executive’s employment with
the Company; provided, however, that the term “Restricted Customer” shall not
include any individual or entity whom/which, through no direct or indirect act
or omission of Executive, has terminated its business relationship with the
Company.
	 
	 	(c)	 	Restricted Services. The term “Restricted Services”
means services of any kind or character comparable to those Executive provided
to the Company during the twelve (12) months preceding the termination of
Executive’s employment with the Company relating to: (i) providing electronic
parts catalogs for manufacturers and/or to their dealers and distributors, via
compact discs and/or on-line, related to manufactured equipment and their
components in the following industry segments: outdoor power (i.e., commercial
lawn care); power sports (i.e., motorcycles, snowmobiles, all terrain
vehicles); marine (i.e., boats, personal water crafts); recreation vehicles;
floor maintenance; auto/truck after-care; agriculture and construction; (ii)
providing on-line, direct mail, electronic mail or other marketing services to
equipment manufacturers, distributors and dealers, in the aforementioned
industry segments, aimed at helping them market their equipment and related
products; and (iii) providing F&I (finance and insurance-type products) and
services for dealerships, in the aforementioned industry segments, using an
outsourced center approach, where the center performs the primary selling role
on behalf of and in conjunction with each dealership, directly to their
customers via on-line and telephone interaction.
	 
	 	(d)	 	Competitor. The term “Competitor” shall include the
following businesses: Snap-on Business Solutions; Dominion Enterprises; 50
Below; Channel Blade; and Enigma and such businesses’ affiliates, successors
and assigns, provided that such businesses are engaged in: (i) providing
electronic parts catalogs for manufacturers and/or to their dealers and
distributors, via compact discs and/or on-line, related to manufactured
equipment and their components in the following industry segments: outdoor
power (i.e., commercial lawn care); power sports (i.e., motorcycles,
snowmobiles, all terrain vehicles); marine (i.e., boats, personal water
crafts); recreation vehicles; floor maintenance; auto/truck after-care;
agriculture and construction; (ii) providing on-line, direct mail, electronic
mail or other marketing services to equipment manufacturers, distributors and
dealers, in the aforementioned industry segments, aimed at helping them market
their equipment and related products; and (iii) providing F&I (finance and
insurance-type) products and services for

8

 

	 	 	 	dealerships, in the aforementioned
industry segments, using an outsourced center approach, where the center
performs the primary selling role on behalf of and in conjunction with each
dealership, directly to their customers via on-line and telephone interaction,
at the time of Executive’s termination, for whatever reason.

ARTICLE VI

BUSINESS IDEA RIGHTS

     6.1 Assignment. The Company will own, and Executive hereby assigns to the Company and
agrees to assign to the Company, all rights in all Business Ideas which Executive originates or
develops whether alone or working with others while Executive is employed by the Company. All
Business Ideas which are or form the basis for copyrightable works are hereby assigned to the
Company and/or shall be assigned to the Company or shall be considered “works for hire” as that
term is defined by United States Copyright Law.

     6.2 Definition of Business Ideas. The term “Business Ideas” means all ideas, designs,
modifications, formulations, specifications, concepts, know-how, trade secrets, discoveries,
inventions, data, software, developments and copyrightable works, whether or not patentable or
registrable, which Executive originates or develops, either alone or jointly with others while
Executive is employed by the Company and which are: (i) related to any business known to Executive
to be engaged in or contemplated by the Company; (ii) originated or developed during Executive’s
working hours; or (iii) originated or developed in whole or in substantial part using materials,
labor, facilities or equipment furnished by the Company.

     6.3 Disclosure. While employed by the Company, Executive will promptly disclose all
Business Ideas to the Company.

     6.4 Execution of Documentation. Executive, at any time during or after the term of
his employment with the Company, will promptly execute all documents which the Company may
reasonably require to perfect its patent, copyright and other rights to such Business Ideas
throughout the world.

ARTICLE VII

NON-SOLICITATION OF EMPLOYEES

     During the term of Executive’s employment with the Company and for twelve (12) months
thereafter, Executive shall not directly or indirectly encourage any Company employee to terminate
his/her employment with the Company or solicit such an individual for employment outside the
Company in any manner which would end or diminish that employee’s services to the Company.

9

 

ARTICLE VIII

EXECUTIVE DISCLOSURES AND ACKNOWLEDGMENTS

     8.1 Confidential Information of Others. Executive warrants and represents to the
Company that he is not subject to any employment, consulting or services agreement, or any
restrictive covenants or agreements of any type, which would conflict or prohibit Executive from
fully carrying out his duties as described under the terms of this Agreement. Further, Executive
warrants and represents to the Company that he has not and will not retain or use, for the benefit
of the Company, any confidential information, records, trade secrets, or other property of a former
employer.

     8.2 Scope of Restrictions. Executive acknowledges that during the course of his
employment with the Company, he will gain knowledge of Confidential Information and Trade Secrets
of the Company. Executive acknowledges that the Confidential Information and Trade Secrets of the
Company are necessarily shared with Executive on a routine basis in the course of performing his
job duties and that the Company has a legitimate protectable interest in such Confidential
Information and Trade Secrets, and in the goodwill and business prospects associated therewith.
Accordingly, Executive acknowledges that the scope of the restrictions contained in this Agreement
are appropriate, necessary and reasonable for the protection of the Company’s business, goodwill
and property rights, and that the restrictions imposed will not prevent him from earning a living
in the event of, and after, the end, for whatever reason, of his employment with the Company.

     8.3 Prospective Employers. Executive agrees, during the term of any restriction
contained in Articles IV, V, VI, VII and VIII of this Agreement, to disclose this Agreement to any
entity which offers employment to Executive. Executive further agrees that the Company may send a
copy of this Agreement to, or otherwise make the provisions hereof known to, any of Executive’s
potential employers.

     8.4 Third Party Beneficiaries. Any Company affiliates are third party beneficiaries
with respect to Executive’s performance of his duties under this Agreement and the undertakings and
covenants contained in this Agreement and the Company and any of its affiliates enjoying the
benefits thereof, may enforce this Agreement directly against Executive. The terms Trade Secret
and Confidential Information shall include materials and information of the Company’s affiliates to
which Executive has access.

     8.5 Survival. The covenants set forth in Articles III, IV, V, VI, VII, VIII, and X of
this Agreement shall survive the termination of the Executive’s employment hereunder.

ARTICLE IX

RETURN OF RECORDS

     Upon the end, for whatever reason, of his employment with the Company, or upon request by the
Company at any time, Executive shall immediately return to the Company all documents, records and
materials belonging and/or relating to the Company (except Executive’s own personnel and wage and
benefit materials relating solely to Executive), and all copies of all such materials. Upon the
end, for whatever reason, of Executive’s employment with the

10

 

Company, or upon request of the
Company at any time, Executive further agrees to destroy such records maintained by him on his own
computer equipment.

ARTICLE X

INDEMNITY

     10.1 Indemnification By Company. To the extent permitted by applicable law, the
Company shall indemnify Executive if Executive is, or is threatened to be, made a party to an
action, suit or proceeding (other than by the Company) by reason of the fact that Executive is or
was a director or officer of the Company, unless liability was incurred because Executive breached
or failed to perform a duty that Executive owes to the Company and such breach or failure
constitutes: (1) a willful failure to deal fairly with the Company or its shareholders in
connection with a matter in which Executive has a material conflict of interest; (2) a violation of
the criminal law, unless Executive had reasonable cause to believe that his conduct was lawful and
Executive had no reasonable cause to believe such conduct was unlawful; (3) a transaction from
which Executive derived an improper personal profit; or (4) willful misconduct.

     10.2 Indemnification By Executive. Executive agrees to indemnify and hold harmless
the Company against any and all losses, claims, damages, liabilities, costs, expenses (including
reasonable attorneys’ fees and costs), judgments and settlements of amounts paid in connection with
any threatened, pending or completed action, suit, claim, proceeding or investigation arising out
of or pertaining to: (1) unlawful intentional acts committed by Executive in the conduct of the
Company’s business; (2) any willful gross negligence committed by Executive other than in the
conduct of the Company’s business; and (3) any tax deductions Executive may claim for expenses
incurred or claim to have been incurred in connection with Executive’s duties hereunder.

     10.3 Insurance. Notwithstanding the foregoing, the indemnification provided for in
this Article X shall only apply to any costs or expenses incurred by indemnitees which are not
covered by applicable liability insurance. If this Article X is interpreted to reduce insurance
coverage to which an indemnitee would otherwise be entitled in the absence of this provision, this
provision shall be deemed inoperative and not part of this Agreement. This Article X shall survive
the termination of this Agreement.

ARTICLE XI

MISCELLANEOUS

     11.1 Notice. Any and all notices, consents, documents or communications provided for
in this Agreement shall be given in writing and shall be personally delivered, mailed by registered
or certified mail (return receipt requested), sent by courier (confirmed by receipt), or telefaxed
(confirmed by telefax confirmation) and addressed as follows (or to such other address as the
addressed Party may have substituted by notice pursuant to this Paragraph 11.1):

11

 

	 	 	 	 	 
	 

	 	To the Company:
	 	ARI Network Services, Inc.
	 

	 	 	 	Director of Human Resources
	 

	 	 	 	11425 West Lake Park Drive
	 

	 	 	 	Milwaukee, WI 53224-3025
	 

	 	 	 	Fax: +1 (414) 973-4618
	 
	 	 	 	 
	 

	 	To Executive:
	 	Brian E. Dearing
	 

	 	 	 	4120 West Gazebo Hill Blvd.
	 

	 	 	 	Mequon, WI 53092
	 

	 	 	 	Fax: +1 (262) 238-5357
	 
	 	 	 	 
	 

	 	cc:
	 	Luke Sims
	 

	 	 	 	Foley & Lardner LLP, Suite 3700
	 

	 	 	 	777 East Wisconsin Avenue
	 

	 	 	 	Milwaukee, WI 53202
	 

	 	 	 	Fax: (414) 297-4900

Such notice, consent, document or communication shall be deemed given upon personal delivery or
receipt at the address of the Party stated above or at any other address specified by such Party to
the other Party in writing, except that if delivery is refused or cannot be made for any reason,
then such notice shall be deemed given on the third day after it is sent.

     11.2 Entire Agreement; Amendment; Waiver. This Agreement (including the COC Agreement
and any documents referred to herein) sets forth the entire understanding of the Parties hereto
with respect to the subject matter contemplated hereby. Any and all previous agreements and
understandings between or among the Parties regarding the subject matter hereof, whether written or
oral, are superseded by this Agreement except as provided for in Paragraph 3.3. This Agreement
shall not be amended or modified except by a written instrument duly executed by each of the
Parties hereto. Any extension or waiver by any Party of any provision hereto shall be valid only
if set forth in an instrument in writing signed on behalf of such Party.

     11.3 Headings. The headings of sections and paragraphs of this Agreement are for
convenience of reference only and shall not control or affect the meaning or construction of any of
its provisions.

     11.4 Assignability. This Agreement is personal to the Executive, and the Executive
may not assign or delegate any of the Executive’s rights or obligations hereunder without first
obtaining the written consent of the Company. The Company will require any successor or assign
(whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company, by an assumption agreement in form
and substance satisfactory to the Executive, to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be required to perform
it if no such succession or assignment had taken place. If such succession or assignment does not
take place, and if this Agreement is not otherwise binding on the Executive’s successors

12

 

or assigns
by operation of law, the Executive is entitled to compensation from the Company in the same amount
and on the same terms as provided for in this Agreement. This Agreement shall be binding on and
inure to the benefit of each Party and such Party’s respective heirs, legal representatives,
successors and assigns.

     11.5 Mitigation. The Executive shall not be required to mitigate the amount of any
payment or benefit provided for in this Agreement by seeking other employment or otherwise.

     11.6 Attorneys’ Fees. Executive is entitled to reimbursement for legal expenses
incurred in connection with drafting and negotiating this Agreement up to a cap of Ten Thousand and
No/100 Dollars ($10,000.00). Such reimbursement shall be paid within sixty (60) days of
Executive’s submission of relevant invoices and/or receipts to the Company, provided Executive
submits such documentation to the Company within six (6) months of receiving such invoice.

     11.7 Injunctive Relief. The Parties agree that damages will be an inadequate remedy
for breaches of this Agreement and in addition to damages and any other available relief, a court
shall be empowered to grant injunctive relief.

     11.8 Waiver of Breach. The waiver by either Party of the breach of any provision of
this Agreement shall not operate or be construed as a waiver of any subsequent breach by either
Party.

     11.9 Severability. If any court of competent jurisdiction determines that any
provision of this Agreement is invalid or unenforceable, then such invalidity or unenforceability
shall have no effect on the other provisions hereof, which shall remain valid, binding and
enforceable and in full force and effect, and, to the extent allowed by law, such invalid or
unenforceable provision shall be construed in a manner so as to give the maximum valid and
enforceable effect to the intent of the Parties expressed therein.

     11.10 Consideration. Execution of this Agreement is a condition of Executive’s
employment with the Company and Executive’s employment and other benefits provided for herein by
the Company constitutes the consideration for Executive’s undertakings hereunder.

     11.11 Governing Law. This Agreement shall in all respects be construed according to
the laws of the State of Wisconsin, without regard to its conflict of laws principles.

     11.12 Authority to Bind the Company. The Company represents and warrants that the
undersigned representative of the Company has the authority of the Board to bind the Company to the
terms of this Agreement.

13

 

     IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed as of
the date first written above.

	 	 	 	 	 	 	 
	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Brian E. Dearing
 

	 	 
	 
	 	 	 	 	 	 
	 	 	Date: March 13, 2008	 	 
	 
	 	 	 	 	 	 
	 	 	ARI NETWORK SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Gordon J. Bridge
 

	 	 
	 
	 	 	 	 	 	 
	 	 	Title: Member of the Board of Directors	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:
	 	March 13, 2008	 	 

14

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