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                                                                     Exhibit 4.3

                              CENTURY BANCORP, INC.

                                 2004 STOCK PLAN

1.       PURPOSE

         The purpose of the Century Bancorp, Inc. 2004 Stock Plan is to
encourage ownership of Class A common stock of the Company by directors,
officers and employees of the Company and its Affiliates and to provide
additional incentives for them to promote the success of the Company's business
through awards of or relating to shares of the Company's Class A common stock.
The 2004 Stock Plan is intended to be an incentive stock option plan within the
meaning of Section 422 of the Code, but not all Options granted hereunder are
required to be Incentive Options.

2.       DEFINITIONS

         As used in this Plan the following terms shall have the respective
meanings set out below, unless the context clearly requires otherwise:

         2.1.     Affiliate means any corporation, partnership, limited
liability company, business trust, or other entity controlling, controlled by or
under common control with the Company.

         2.2.     Award means any grant of Options, grant of Stock Appreciation
Rights or award of Restricted Stock pursuant to the Plan.

         2.3.     Award Agreement means an agreement between the Company and the
recipient of an Award, setting forth the terms and conditions of the Award.

         2.4.     Board means the Company's Board of Directors.

         2.5.     Change of Control means the occurrence of any of the
following:

                  (a)      a merger or consolidation of the Company with or into
another person or the sale, transfer or other disposition of all or
substantially all the Company's assets to one or more persons in a single
transaction or a series of related transactions, unless securities possessing
more than 50% of the total combined voting power of the survivor's or acquiror's
outstanding securities (or the securities of any parent thereof) are held by a
person or persons who held securities possessing more than 50% of the total
combined voting power of the Company's outstanding securities immediately prior
to that transaction, or

                  (b)      any person or group of persons (within the meaning of
Section 13(d)(3) of the Securities Exchange Act of 1934, as amended and in
effect from time to time), directly or indirectly acquires beneficial ownership
(determined pursuant to Securities and Exchange Commission Rule 13d-3) of
securities possessing more than 20% of the total combined voting power of the
Company's outstanding securities pursuant to a tender or exchange offer made
directly to the Company's stockholders that the Board does not recommend the
stockholders accept, other than (i) the Company or an Affiliate, (ii) an
employee benefit plan of the Company or any of its Affiliates, (iii) a trustee
or other fiduciary holding securities under an employee benefit

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plan of the Company or any of its Affiliates, or (iv) an underwriter
temporarily holding securities pursuant to an offering of such securities, or

                  (c)      over a period of 36 consecutive months or less, there
is a change in the composition of the Board such that a majority of the Board
members (rounded up to the next whole number, if a fraction) ceases, by reason
of one or more proxy contests for the election of Board members, to be composed
of individuals who either (i) have been Board members continuously since the
beginning of that period, or (ii) have been elected or nominated for election as
Board members during such period by at least a majority of the Board members
described in the preceding clause (i) who were still in office at the time that
election or nomination was approved by the Board; or

                  (d)      a majority of the Board votes in favor of a decision
that a Change in Control has occurred.

         2.5.     Class A Common Stock means Class A common stock, par value
$1.00 per share, of the Company.

         2.6.     Code means the Internal Revenue Code of 1986, as amended from
time to time, or any statute successor thereto, and any regulations issued from
time to time thereunder.

         2.7.     Company means Century Bancorp, Inc., a corporation organized
under the laws of the Commonwealth of Massachusetts.

         2.8.     Compensation Committee means the Compensation Committee of the
Board or any other committee of the Board to which the Board has delegated
responsibility for the administration of the Plan.

         2.9.     Grant Date means the date as of which an Award is granted.

         2.10.    Incentive Option means an Option which by its terms is to be
treated as an "incentive stock option" within the meaning of Section 422 of the
Code.

         2.11.    Market Value means the value of a share of Class A Common
Stock on any date as determined by the Compensation Committee.

         2.12.    Nonstatutory Option means any Option that is not an Incentive
Option.

         2.13.    Option means an option to purchase shares of Class A Common
Stock.

         2.14.    Optionee means a Participant to whom an Option shall have been
granted under the Plan.

         2.15.    Participant means any holder of an outstanding Award under the
Plan.

         2.16.    Plan means this 2004 Stock Plan of the Company, as amended
from time to time.

         2.17.    Restricted Stock means a grant or sale of shares of Class A
Common Stock to a Participant subject to a Risk of Forfeiture.

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         2.18.    Restriction Period means the period of time, established by
the Compensation Committee in connection with an Award of Restricted Stock,
during which the shares of Restricted Stock are subject to a Risk of Forfeiture
described in the applicable Award Agreement.

         2.19.    Risk of Forfeiture means a limitation on the right of the
Participant to retain Restricted Stock, including a right in the Company to
reacquire shares of Restricted Stock at less than their then Market Value,
arising because of the occurrence or non-occurrence of specified events or
conditions.

         2.20.    Stock Appreciation Right means a right to receive any excess
in the Market Value of shares of Class A Common Stock over a specified exercise
price.

         2.21.    Ten Percent Owner means a person who owns, or is deemed within
the meaning of Section 422(b)(6) of the Code to own, stock possessing more than
10% of the total combined voting power of all classes of stock of the Company
(or any Affiliate). Whether a person is a Ten Percent Owner shall be determined
with respect to each Option based on the facts existing immediately prior to the
Grant Date of that Option.

3.       TERM OF THE PLAN

         Unless the Plan shall have been earlier terminated by the Board, Awards
may be granted hereunder at any time in the period commencing on the approval of
the Plan by the Company's Class B stockholders and ending immediately prior to
the tenth anniversary of the earlier of the adoption of the Plan by the Board or
approval of the Plan by the Company's Class B stockholders. Awards granted
pursuant to the Plan within such period shall not expire solely by reason of the
termination of the Plan.

4.       STOCK SUBJECT TO THE PLAN

         At no time shall the number of shares of Class A Common Stock issued
pursuant to or subject to outstanding Awards granted under the Plan exceed
150,000 shares of Class A Common Stock, subject, however, to the provisions of
Section 10 of the Plan. For purposes of applying the foregoing limitation, if
any Option or Stock Appreciation Right expires, terminates or is cancelled for
any reason without having been exercised in full, the shares as to which the
Option or Stock Appreciation Right was not exercised shall again be available
for Awards thereafter to be granted under the Plan, and if any Restricted Stock
is forfeited, the shares so forfeited shall again be available for Awards
thereafter to be granted under the Plan. Shares of Class A Common Stock issued
pursuant to the Plan may be either authorized but unissued shares or shares held
by the Company in its treasury.

5.       ADMINISTRATION

         The Plan shall be administered by the Compensation Committee. Subject
to the provisions of the Plan, the Compensation Committee shall have complete
authority, in its discretion, to make or to select the manner of making all
necessary determinations with respect to each Award to be granted by the Company
under the Plan in addition to any other determination allowed the Compensation
Committee under the Plan including the director, employee or officer to receive
the Award. In making such determinations, the Compensation Committee may take
into account the nature of the services rendered by the respective employees,
officers, and directors, their present and potential contributions to the
success of the Company and its subsidiaries, and such other

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factors as the Compensation Committee in its discretion shall deem relevant.
Subject to the provisions of the Plan, the Compensation Committee shall also
have complete authority to interpret the Plan, to prescribe, amend and rescind
rules and regulations relating to it, to determine the terms and provisions of
the respective Award Agreements (which need not be identical), and to make all
other determinations necessary or advisable for the administration of the Plan.
The Compensation Committee's determinations made in good faith on matters
referred to in this Plan shall be conclusive. Without in any way limiting the
foregoing, the Compensation Committee shall at the time each Option is granted
designate such Option as either an Incentive Option or a Nonstatutory Option.

6.       ELIGIBILITY; TERMS; TERMINATION OF EMPLOYMENT; TRANSFERABILITY

         6.1.     Eligibility. Pursuant and subject to the terms of this Plan,
the Compensation Committee may grant such Awards as the Compensation Committee
shall in its discretion determine to any non-employee member of the Board or of
any board of directors (or similar governing authority) of any Affiliate or any
employee of or officer of one or more of the Company and its Affiliates.
However, only employees of the Company and of the parent or subsidiary
corporations of the Company, as defined in Sections 424(e) and (f),
respectively, of the Code, shall be eligible for the grant of Incentive Options.
In no event shall the number of shares of Class A Common Stock covered by Awards
granted to any one person in any one calendar year exceed 25,000 shares.

         6.2.     Terms. Each grant of an Award shall be subject to all
applicable terms and conditions of the Plan, and such other terms and
conditions, not inconsistent with the terms of the Plan, as the Compensation
Committee may prescribe. No prospective Participant shall have any rights with
respect to an Award unless and until the Participant has executed an agreement
evidencing the Award, delivered a fully executed copy thereof to the Company,
and otherwise complied with the applicable terms and conditions of the Award.

         6.3.     Termination of Employment or Association. Unless the
Compensation Committee shall provide otherwise with respect to any Award, if the
Participant's employment or other association with the Company and its
Affiliates ends for any reason, including because of the Participant's employer
ceasing to be an Affiliate, (a) any outstanding Option or Stock Appreciation
Right of the Participant shall cease to be exercisable in any respect not later
than three months following that event and, for the period it remains
exercisable following that event, shall be exercisable only to the extent
exercisable at the date of that event, and (b) any other outstanding Award of
the Participant shall immediately be forfeited or otherwise be subject to return
to or repurchase by the Company on the terms specified in the applicable Award
Agreement. Military or sick leave or other bona fide leave shall not be deemed a
termination of employment or other association, provided that it does not exceed
the longer of three months or the period during which the absent Participant's
reemployment rights, if any, are guaranteed by statute or by contract.

         6.4.     Limited Transferability of Awards. Except as otherwise
provided in this Section 6.4, Awards shall not be transferable, and no Award or
interest therein may be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by will or by the laws of descent and
distribution. All of a Participant's rights in any Award may be exercised during
the life of the Participant only by the Participant or the Participant's legal
representative. However, the Compensation Committee may, at or after the grant
of an Award of a Nonstatutory Option or shares of Restricted Stock, provide that
such Award may be transferred by the recipient to a family

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member; provided, however, that any such transfer is without payment of any
consideration whatever and that no transfer shall be valid unless first approved
by the Compensation Committee, acting in its sole discretion. For this purpose,
"family member" means any child, stepchild, grandchild, parent, stepparent,
spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including
adoptive relationships, any person sharing the employee's household (other than
a tenant or employee), a trust in which the foregoing persons have more than
fifty percent of the beneficial interests, a foundation in which the foregoing
persons (or the Participant) control the management of assets, and any other
entity in which these persons (or the Participant) own more than fifty percent
of the voting interests.

7.       SPECIFIC TERMS OF OPTIONS

         7.1.     Date of Grant. The granting of an Option shall take place at
the time specified in the Award Agreement.

         7.2.     Exercise Price. The price at which shares may be acquired
under each Incentive Option and each Nonstatutory Option shall be not less than
100% of the Market Value of Class A Common Stock on the Grant Date, and the
price under each Incentive Option granted to a Ten Percent Owner shall be not
less than 110% of the Market Value of Class A Common Stock on the Grant Date

         7.3.     Option Period. No Incentive Option may be exercised on or
after the tenth anniversary of the Grant Date, or on or after the fifth
anniversary of the Grant Date if the Optionee is a Ten Percent Owner. The Option
period under each Nonstatutory Option shall not be so limited solely by reason
of this Section.

         7.4.     Exercisability. An Option may be immediately exercisable or
become exercisable in such installments, cumulative or non-cumulative, as the
Compensation Committee may determine. In the case of an Option not otherwise
immediately exercisable in full, the Compensation Committee may accelerate the
exercisability of such Option in whole or in part at any time, provided the
acceleration of the exercisability of any Incentive Option would not cause the
Option to fail to comply with the provisions of Section 422 of the Code.

         7.5.     Exercise of Option. An Option may be exercised by the Optionee
giving written notice to the Company, specifying the number of shares with
respect to which the Option is then being exercised. The notice shall be
accompanied by payment in the form of cash or certified or bank check payable to
the order of the Company in an amount equal to the exercise price of the shares
to be purchased or, subject to such conditions, if any, as the Compensation
Committee may deem necessary to avoid adverse accounting effects to the Company,
by delivery of that number of shares of Class A Common Stock having a Market
Value equal to the exercise price of the shares to be purchased. Receipt by the
Company of such notice and payment shall constitute the exercise of the Option.
Within 30 days thereafter but subject to the remaining provisions of the Plan,
the Company shall deliver or cause to be delivered to the Optionee or his agent
a certificate or certificates for the number of shares then being purchased.
Such shares shall be fully paid and nonassessable. Nothing herein shall be
construed to preclude the Company from participating in a so-called "cashless
exercise", provided the Optionee or other person exercising the Option and each
other party involved in any such exercise shall comply with such procedures, and
enter into such agreements, of indemnity or otherwise, as the Company shall
specify.

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         7.6.     Limit on Incentive Option Characterization. An Incentive
Option shall be considered to be an Incentive Option only to the extent that the
number of shares of Class A Common Stock for which the Option first becomes
exercisable in a calendar year do not have an aggregate Market Value (as of the
date of the grant of the Option) in excess of the "current limit". The current
limit for any Optionee for any calendar year shall be $100,000 minus the
aggregate Market Value at the date of grant of the number of shares of Class A
Common Stock available for purchase for the first time in the same year under
each other Incentive Option previously granted to the Optionee under the Plan
and under each other incentive stock option granted to the Optionee under any
other incentive stock option plan of the Company and its Affiliates. Any shares
of Class A Common Stock which would cause the foregoing limit to be violated
shall be deemed to have been granted under a separate Nonstatutory Option,
otherwise identical in its terms to those of the Incentive Option.

         7.7.     Notification of Disposition. Each person exercising any
Incentive Option granted under the Plan shall be deemed to have covenanted with
the Company to report to the Company any disposition of such shares prior to the
expiration of the holding periods specified by Section 422(a)(1) of the Code
and, if and to the extent that the realization of income in such a disposition
imposes upon the Company federal, state, local or other withholding tax
requirements, or any such withholding is required to secure for the Company an
otherwise available tax deduction, to remit to the Company an amount in cash
sufficient to satisfy those requirements.

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8.       STOCK APPRECIATION RIGHTS

         8.1.     Tandem or Stand-Alone. Stock Appreciation Rights may be
granted in tandem with an Option (at or, in the case of a Nonstatutory Option,
after the award of the Option) or alone and unrelated to an Option. Stock
Appreciation Rights in tandem with an Option shall terminate to the extent that
the related Option is exercised, and the related Option shall terminate to the
extent that the tandem Stock Appreciation Rights are exercised.

         8.2.     Exercise Price. Stock Appreciation Rights shall have an
exercise price of not less than the Market Value of the Stock on the date of
award, or in the case of Stock Appreciation Rights in tandem with Options, the
exercise price of the related Option.

9.       RESTRICTED STOCK.

         9.1.     Purchase Price. Shares of Restricted Stock shall be issued
under the Plan for such consideration, if any, in cash, property or services (or
any combination thereof) as determined by the Compensation Committee.

         9.2.     Issuance of Certificates. Each Participant receiving a
Restricted Stock Award, subject to Section 9.3, shall be issued a stock
certificate in respect of such shares of Restricted Stock. The certificate shall
be registered in the name of the Participant and, if applicable, shall bear an
appropriate legend referring to the terms, conditions, and restrictions
applicable to such Award.

         9.3.     Escrow of Shares. The Compensation Committee may require that
the stock certificates evidencing shares of Restricted Stock be held in custody
by a designated escrow agent (which may but need not be the Company) until the
restrictions thereon shall have lapsed, and that the Participant deliver a stock
power, endorsed in blank, relating to the Stock covered by the Award.

         9.4.     Restrictions and Restriction Period. During the Restriction
Period applicable to shares of Restricted Stock, such shares shall be subject to
limitations on transferability and a Risk of Forfeiture arising on the basis of
such conditions related to the performance of services, Company or Affiliate
performance or otherwise as the Compensation Committee may determine and provide
for in the applicable Award Agreement. Any such Risk of Forfeiture may be waived
or terminated, or the Restriction Period shortened, at any time by the
Compensation Committee on such basis as it deems appropriate.

         9.5.     Rights Pending Lapse of Risk of Forfeiture or Forfeiture of
Award. Except as otherwise provided in the Plan or the applicable Award
Agreement, at all times prior to lapse of any Risk of Forfeiture applicable to,
or forfeiture of, an Award of Restricted Stock, the Participant shall have all
of the rights of a stockholder of the Company, including the right to vote, and
the right to receive any dividends with respect to, the shares of Restricted
Stock. The Compensation Committee, as determined at the time of Award, may
permit or require the payment of cash dividends to be deferred and, if the
Compensation Committee so determines, reinvested in additional Restricted Stock
to the extent shares are available under Section 4.

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         9.6.     Lapse of Restrictions. If and when the Restriction Period
expires without a prior forfeiture of the Restricted Stock, the certificates for
such shares shall be delivered to the Participant promptly if not theretofore so
delivered.

10.      ADJUSTMENTS FOR CORPORATE TRANSACTIONS

         10.1.    Stock Dividend, Etc. In the event of any dividend on Class A
Common Stock payable in Class A Common Stock or any split-up or contraction in
the number of shares of Class A Common Stock after the date of an Award
Agreement, the remaining number of shares of Class A Common Stock subject to
that Award and the price to be paid for each share subject to the Award shall be
proportionately adjusted.

         10.2.    Stock Reclassification. In the event of any reclassification
or change of outstanding shares of Class A Common Stock, immediately thereafter
(and subject to further adjustment for subsequent events) any outstanding Award
shall thereafter relate to shares of stock or other securities equivalent in
kind and value to those shares which the Participant would have received if he
or she had held of record the full remaining number of shares of Class A Common
Stock subject to the Award immediately prior to such reclassification or change.

         10.3.    Consolidation or Merger. In case of any consolidation or
merger of the Company with or into another company or in case of any sale or
conveyance to another company or entity of the property of the Company as a
whole, (a) each outstanding Option and Stock Appreciation Right shall terminate
and, to the extent that the value of the shares of stock, other securities or
cash which a stockholder is entitled to receive for one share of Class A Common
Stock in connection with such transaction exceeds the exercise price, the
Participant shall be entitled to receive either cash or shares of stock or other
securities equivalent in kind to the cash, shares or other securities which a
holder would have received if he or she had fully exercised the Option or Stock
Appreciation Right and held the number of shares of the Class A Common Stock
issued upon such exercise, immediately prior to such consolidation, merger, sale
or conveyance, with a value equal to such excess amount multiplied by the number
of shares he or she would have received if he or she so exercised the Option or
Stock Appreciation Right at that time, and (b) the Risk of Forfeiture on shares
of Restricted Stock then subject to outstanding Awards shall lapse.

         10.4.    Change in Control. In the event of any Change in Control, each
outstanding Option and Stock Appreciation Right shall become immediately
exercisable and the Risk of Forfeiture on each share of Restricted Stock shall
lapse.

         10.5.    Related Matters. Any adjustment required by this Section 10
shall be determined and made by the Compensation Committee. No fraction of a
share shall be purchasable or deliverable upon exercise, but in the event any
adjustment hereunder of the number of shares covered by an Award shall cause
such number to include a fraction of a share, such number of shares shall be
adjusted to the nearest smaller whole number of shares. In the event of changes
in the outstanding Class A Common Stock by reason of any stock dividend,
split-up, contraction, reclassification, or change of outstanding shares of
Class A Common Stock of the nature contemplated by this Section 10, the number
of shares of Class A Common Stock available for the purposes of the Plan as
stated in Section 4 and the maximum size of Awards for any Participant as stated
in Section 6.1 shall be correspondingly adjusted.

11.      SETTLEMENT OF AWARDS

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         11.1.    Investment Representation. The Company shall be under no
obligation to issue any shares covered by any Award unless the shares to be
issued pursuant to Awards granted under the Plan have been effectively
registered under the Securities Act of 1933, as amended, or the Participant
shall have given a written representation to the Company which is satisfactory
in form and substance to its counsel and upon which the Company may reasonably
rely, that he or she is acquiring the shares for his or her own account for the
purpose of investment and not with a view to, or for sale in connection with,
the distribution of any such shares.

         11.2.    Registration. If the Company shall deem it necessary or
desirable to register under the Securities Act of 1933, as amended or other
applicable statutes any shares of Class A Common Stock issued or to be issued
pursuant to Awards granted under the Plan, or to qualify any such shares of
Class A Common Stock for exemption from the Securities Act of 1933, as amended
or other applicable statutes, then the Company shall take such action at its own
expense.

         11.3.    Certificate Legend. Each certificate for a share of Class A
Common Stock to be issued pursuant to Awards granted under the Plan may, in
addition to any other applicable restriction, bear a legend referring to the
investment representation made in accordance with Section 11.1 and to the fact
that no registration statement has been filed with the Securities and Exchange
Commission with respect to the shares of Class A Common Stock evidenced by the
certificate.

         11.4.    Tax Withholding. Whenever shares of Class A Common Stock are
issued or to be issued pursuant to Awards granted under the Plan, the Company
shall have the right to require the recipient to remit to the Company an amount
sufficient to satisfy federal, state, local or other withholding tax
requirements if, when, and to the extent required by law (whether so required to
secure for the Company an otherwise available tax deduction or otherwise) prior
to the delivery of any certificate or certificates for such shares. However, in
such cases, Participants may elect, subject to the approval of the Compensation
Committee, to satisfy the withholding requirement, in whole or in part, by
having the Company withhold shares to satisfy their tax obligations.
Participants may only elect to have Shares withheld having a Market Value on the
date the tax is to be determined equal to the minimum statutory total tax which
could be imposed on the transaction. All elections shall be irrevocable, made in
writing, signed by the Participant, and shall be subject to any restrictions or
limitations that the Compensation Committee, deems appropriate. The obligations
of the Company under the Plan shall be conditional on satisfaction of all such
withholding obligations and the Company shall, to the extent permitted by law,
have the right to deduct any such taxes from any payment of any kind otherwise
due to the recipient of an Award.

12.      LIMITATION OF RIGHTS IN STOCK; NO SPECIAL SERVICE RIGHTS

         A Participant shall not be deemed for any purpose to be a stockholder
of the Company with respect to any of the shares of Class A Common Stock
issuable pursuant to an Award, except to the extent that the Award shall have
been exercised with respect thereto and, in addition, a certificate shall have
been issued therefor and delivered to the Participant or his agent. Nothing
contained in the Plan or in any Award Agreement shall confer upon any recipient
of an Award any right with respect to the continuation of his or her employment
or other association with the Company (or any Affiliate), or interfere in any
way with the right of the Company (or any Affiliate), at any time to terminate
such employment agreement or to increase or decrease, or otherwise adjust, the
other terms and conditions of the recipient's employment or other association
with the Company and its Affiliates.

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13.      TERMINATION AND AMENDMENT OF THE PLAN

         The Board may at any time terminate the Plan or make such modifications
of the Plan as it shall deem advisable. No termination or amendment of the Plan
may, without the consent of any recipient of an Award granted hereunder,
adversely affect the rights of such recipient under that Award. The Compensation
Committee may amend the terms of any Award theretofore granted, prospectively or
retroactively, provided as amended the Award is consistent with the terms of the
Plan, but no such amendment shall impair the rights of the recipient of the
Award without his or her consent.

14.      GOVERNING LAW

         The Plan and all Award Agreements and actions taken thereunder shall be
governed, interpreted and enforced in accordance with the laws of the
Commonwealth of Massachusetts, without regard to the conflict of laws principles
thereof.

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                                                                   Exhibit 10.20

                               Retention Agreement

     THIS AGREEMENT by and between Applix, Inc., a Massachusetts corporation
(the "Company"), and Michael A. Morrison (the "Employee") is made as of June 1,
2004 (the "Effective Date").

     WHEREAS, the Company recognizes that, as is the case with many
publicly-held corporations, the possibility of a change in control of the
Company exists and that such possibility, and the uncertainty and questions
which it may raise, may result in the departure or distraction of the Employee
to the detriment of the Company and its stockholders, and

     WHEREAS, the Company recognizes that the possibility of a termination
without cause or for good reason may also result in the departure or distraction
of the Employee to the detriment of the Company and its stockholders, and

     WHEREAS, the Company has determined that appropriate steps should be taken
to reinforce and encourage the continued employment and dedication of the
Employee without distraction from the possibility of a termination upon change
in control of the Company and related events and circumstances, or a termination
without cause or for good reason.

     NOW, THEREFORE, as an inducement for and in consideration of the Employee
remaining in its employ, the Company agrees that the Employee shall receive the
severance benefits set forth in this Agreement in the event the Employee's
employment with the Company is terminated under the circumstances described
below:

     1.   Key Definitions.

     As used herein, the following terms shall have the following respective
meanings:

          1.1  "Change in Control" means an event or occurrence set forth in any
one or more of subsections (a) through (d) below (including an event or
occurrence that constitutes a Change in Control under one of such subsections
but is specifically exempted from another such subsection):

               (a)  the acquisition by an individual, entity or group (within
the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
1934, as amended (the "Exchange Act")) (a "Person") of beneficial ownership of
any capital stock of the Company if, after such acquisition, such Person
beneficially owns (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) 50% or more of either (i) the then-outstanding shares of common
stock of the Company (the "Outstanding Company Common Stock") or (ii) the
combined voting power of the then-outstanding securities of the Company entitled
to vote generally in the election of directors (the "Outstanding Company Voting
Securities"); provided, however, that for purposes of this subsection (a), the
following acquisitions shall not constitute a Change in Control: (i) any
acquisition directly from the Company (excluding an acquisition pursuant to the
exercise, conversion or exchange of any security exercisable for, convertible
into or exchangeable for common stock or voting securities of the Company,
unless the Person exercising, converting or exchanging such security acquired
such security directly from the

<PAGE>

Company or an underwriter or agent of the Company), (ii) any acquisition by the
Company, (iii) any acquisition by any employee benefit plan (or related trust)
sponsored or maintained by the Company or any corporation controlled by the
Company, or (iv) any acquisition by any corporation pursuant to a transaction
which complies with clauses (i) and (ii) of subsection (c) of this Section 1.1;
or

               (b)  such time as the Continuing Directors (as defined below) do
not constitute a majority of the Board of Directors of the Company (the "Board")
(or, if applicable, the Board of Directors of a successor corporation to the
Company), where the term "Continuing Director" means at any date a member of the
Board (i) who was a member of the Board on the date of the execution of this
Agreement or (ii) who was nominated or elected subsequent to such date by at
least a majority of the directors who were Continuing Directors at the time of
such nomination or election or whose election to the Board was recommended or
endorsed by at least a majority of the directors who were Continuing Directors
at the time of such nomination or election; provided, however, that there shall
be excluded from this clause (ii) any individual whose initial assumption of
office occurred as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents, by or on behalf of a person other than the
Board; or

               (c)  the consummation of a merger, consolidation, reorganization,
recapitalization or statutory share exchange involving the Company or a sale or
other disposition of all or substantially all of the assets of the Company in
one or a series of transactions (a "Business Combination"), unless, immediately
following such Business Combination, each of the following two conditions is
satisfied: (i) all or substantially all of the individuals and entities who were
the beneficial owners of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 50% of the then-outstanding
shares of common stock and the combined voting power of the then-outstanding
securities entitled to vote generally in the election of directors,
respectively, of the resulting or acquiring corporation in such Business
Combination (which shall include, without limitation, a corporation which as a
result of such transaction owns the Company or substantially all of the
Company's assets either directly or through one or more subsidiaries) (such
resulting or acquiring corporation is referred to herein as the "Acquiring
Corporation") in substantially the same proportions as their ownership,
immediately prior to such Business Combination, of the Outstanding Company
Common Stock and Outstanding Company Voting Securities, respectively; and (ii)
no Person (excluding the Acquiring Corporation or any employee benefit plan (or
related trust) maintained or sponsored by the Company or by the Acquiring
Corporation) beneficially owns, directly or indirectly, 30% or more of the then
outstanding shares of common stock of the Acquiring Corporation, or of the
combined voting power of the then-outstanding securities of such corporation
entitled to vote generally in the election of directors (except to the extent
that such ownership existed prior to the Business Combination); or

               (d)  approval by the stockholders of the Company of a complete
liquidation or dissolution of the Company.

          1.2  "Change in Control Date" means the first date during the Term (as
defined in Section 2) on which a Change in Control occurs. Anything in this
Agreement to the contrary

                                       2
<PAGE>

notwithstanding, if (a) a Change in Control occurs, (b) the Employee's
employment with the Company is terminated prior to the date on which the Change
in Control occurs, and (c) it is reasonably demonstrated by the Employee that
such termination of employment (i) was at the request of a third party who has
taken steps reasonably calculated to effect a Change in Control or (ii)
otherwise arose in connection with or in anticipation of a Change in Control,
then for all purposes of this Agreement the "Change in Control Date" shall mean
the date immediately prior to the date of such termination of employment.

          1.3  "Cause" means:

               (a)  the Employee's willful and continued failure to
substantially perform his reasonable assigned duties as an employee of the
Company (other than any such failure resulting from incapacity due to physical
or mental illness or any failure after the Employee gives notice of termination
for Good Reason), which failure is not cured within 30 days after a written
demand for substantial performance is received by the Employee from the Company
which specifically identifies the manner in which the Company believes the
Employee has not substantially performed the Employee's duties; or

               (b)  the Employee's willful engagement in illegal conduct or
gross misconduct which is materially and demonstrably injurious to the Company.

     For purposes of this Section 1.3, no act or failure to act by the Employee
shall be considered "willful" unless it is done, or omitted to be done, in bad
faith and without reasonable belief that the Employee's action or omission was
in the best interests of the Company.

          1.4  "Good Reason" means the occurrence, without the Employee's
written consent, of any of the events or circumstances set forth in clauses (a)
through (g) below. Notwithstanding the occurrence of any such event or
circumstance, such occurrence shall not be deemed to constitute Good Reason if,
prior to the Date of Termination specified in the Notice of Termination (each as
defined in Section 3.2(a)) given by the Employee in respect thereof, such event
or circumstance has been fully corrected and the Employee has been reasonably
compensated for any losses or damages resulting therefrom (provided that such
right of correction by the Company shall only apply to the first Notice of
Termination for Good Reason given by the Employee).

               (a)  the assignment to the Employee of duties inconsistent in any
material respect with the Employee's position (including status, offices, titles
and reporting requirements), authority or responsibilities in effect, in the
case of termination pursuant to Section 4.1 below, immediately prior to the
earliest to occur of (i) the Change in Control Date, (ii) the date of the
execution by the Company of the initial written agreement or instrument
providing for the Change in Control or (iii) the date of the adoption by the
Board of Directors of a resolution providing for the Change in Control, or, in
the case of termination pursuant to Section 4.2 below, six months prior to the
Date of Termination (in each case, the earliest to occur of such dates referred
to herein as the "Measurement Date"), or any other action or omission by the
Company which results in a material diminution in such position, authority or
responsibilities; provided, however, that if the Employee terminates his
employment for Good Reason pursuant to this paragraph, he must provide to the
Company or the acquiring entity (if

                                       3
<PAGE>

applicable), during the three month period following the Change in Control Date,
or, in the case of termination pursuant to Section 4.2 below, the Date of
Termination, such cooperation as the Company or acquiring entity (if applicable)
may reasonably request with respect to transition matters, which cooperation
shall not entail a commitment by the Employee of more than 20 hours per month;

               (b)  a reduction in the Employee's annual base salary as in
effect on the Change in Control Date, or, in the case of termination pursuant to
Section 4.2 below, a reduction of more than 10% in the Employee's annual base
salary as in effect on the date six months prior to the Date of Termination, or,
in either case, as the same was or may be increased thereafter from time to
time;

               (c)  the failure by the Company to (i) continue in effect any
material compensation or benefit plan or program (including without limitation
any life insurance, medical, health and accident or disability plan and any
vacation or automobile program or policy) (a "Benefit Plan") in which the
Employee participates or which is applicable to the Employee immediately prior
to the Measurement Date, unless an equitable arrangement (embodied in an ongoing
substitute or alternative plan) has been made with respect to such plan or
program, (ii) continue the Employee's participation therein (or in such
substitute or alternative plan) on a basis not materially less favorable, both
in terms of the amount of benefits provided and the level of the Employee's
participation relative to other participants, than the basis existing
immediately prior to the Measurement Date or (iii) award cash bonuses to the
Employee in amounts and in a manner substantially consistent with past practice
in light of the Company's financial performance;

               (d)  a change by the Company in the location at which the
Employee performs his principal duties for the Company to a new location that is
both (i) outside a radius of 35 miles from the Employee's principal residence
immediately prior to the Measurement Date and (ii) more than 20 miles from the
location at which the Employee performed his principal duties for the Company
immediately prior to the Measurement Date; or a requirement by the Company that
the Employee travel on Company business to a substantially greater extent than
required immediately prior to the Measurement Date;

               (e)  the failure of the Company to obtain the agreement from any
successor to the Company to assume and agree to perform this Agreement, as
required by Section 6.1;

               (f)  any failure of the Company to pay or provide to the Employee
any portion of the Employee's compensation or benefits due under any Benefit
Plan within seven days of the date such compensation or benefits are due, or any
material breach by the Company of this Agreement or any employment agreement
with the Employee.

     For purposes of this Agreement, any good faith determination of "Good
Reason" made by the Employee following a Change in Control shall be conclusive,
binding and final. The Employee's right to terminate his employment for Good
Reason shall not be affected by his incapacity due to physical or mental
illness.

                                       4
<PAGE>

          1.5  "Disability" means the Employee's absence from the full-time
performance of the Employee's duties with the Company for 180 consecutive
calendar days as a result of incapacity due to mental or physical illness which
is determined to be total and permanent by a physician selected by the Company
or its insurers and acceptable to the Employee or the Employee's legal
representative.

     2.   Term of Agreement. This Agreement, and all rights and obligations of
the parties hereunder, shall take effect upon the Effective Date and shall
expire upon the first to occur of (a) the expiration of the Term (as defined
below) if a Change in Control has not occurred during the Term or (b) the
fulfillment by the Company of all of its obligations under Sections 4 and 5.2 if
the Employee's employment with the Company terminates during the Term or within
12 months following the Change in Control Date. "Term" shall mean the period
commencing as of the Effective Date and continuing in effect through December
31, 2004; provided, however, that commencing on January 1, 2005 and each January
1 thereafter, the Term shall be automatically extended for one additional year
unless, not later than 90 days prior to the scheduled expiration of the Term (or
any extension thereof), the Company shall have given the Employee written notice
that the Term will not be extended.

     3.   Employment Status; Notice of Termination of Employment.

          3.1  Not an Employment Contract. The Employee acknowledges that this
Agreement does not constitute a contract of employment or impose on the Company
any obligation to retain the Employee as an employee and that this Agreement
does not prevent the Employee from terminating employment at any time.

          3.2  Notice of Termination of Employment.

               (a)  Any termination of the Employee's employment by the Company
or by the Employee (other than due to the death of the Employee) shall be
communicated by a written notice to the other party hereto (the "Notice of
Termination"), given in accordance with Section 7. Any Notice of Termination
shall: (i) indicate the specific termination provision (if any) of this
Agreement relied upon by the party giving such notice, (ii) to the extent
applicable, set forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of the Employee's employment under the
provision so indicated and (iii) specify the Date of Termination (as defined
below). The effective date of an employment termination (the "Date of
Termination") shall be the close of business on the date specified in the Notice
of Termination (which date may not be less than 15 days or more than 120 days
after the date of delivery of such Notice of Termination), in the case of a
termination other than one due to the Employee's death, or the date of the
Employee's death, as the case may be.

               (b)  The failure by the Employee or the Company to set forth in
the Notice of Termination any fact or circumstance which contributes to a
showing of Good Reason or Cause shall not waive any right of the Employee or the
Company, respectively, hereunder or preclude the Employee or the Company,
respectively, from asserting any such fact or circumstance in enforcing the
Employee's or the Company's rights hereunder.

                                       5
<PAGE>

               (c)  Any Notice of Termination for Cause given by the Company
must be given within 90 days of the occurrence of the event(s) or
circumstance(s) which constitute(s) Cause.

     4.   Benefits to Employee.

          4.1  Compensation upon Termination after a Change in Control. If a
Change in Control Date occurs during the Term and the Employee's employment with
the Company is terminated by the Company (other than for Cause, Disability or
death) or by the Employee for Good Reason within 12 months following the Change
in Control Date, then the Employee shall be entitled to the following benefits:

               (a)  the Company shall pay to the Employee in a lump sum in cash
within 30 days after the Date of Termination the sum of (i) the Employee's base
salary through the Date of Termination, (ii) any accrued bonus which the
Employee is entitled to receive as of the Date of Termination, (iii) the amount
of any compensation previously deferred by the Employee (together with any
accrued interest or earnings thereon) and any accrued vacation pay, in each case
to the extent not previously paid (the sum of the amounts described in clauses
(i), (ii), and (iii) shall be hereinafter referred to as the "Accrued
Obligations");

               (b)  for six months after the Date of Termination, the Company
shall continue to pay to the Employee his highest annual base salary during the
three-year period prior to the Date of Termination; and

               (c)  for six months after the Date of Termination, the Company
shall continue to provide to the Employee medical, health and accident or
disability benefits on substantially the same terms as were provided to the
Employee on the Date of Termination.

          4.2  Compensation upon Termination other than after a Change in
Control. Except as set forth in Section 4.1 above, in which case the terms of
Section 4.1 shall apply, if the Employee's employment with the Company is
terminated by the Company (other than for Cause, Disability or death) or by the
Employee for Good Reason, then the Employee shall be entitled to the following
benefits:

               (a)  the Company shall pay to the Employee in a lump sum in cash
within 30 days after the Date of Termination the Accrued Obligations;

               (b)  for six months after the Date of Termination, the Company
shall continue to pay to the Employee his highest annual base salary during the
three-year period prior to the Date of Termination; and

               (c)  for six months after the Date of Termination, the Company
shall continue to provide to the Employee medical and dental benefits on
substantially the same terms as were provided to the Employee on the Date of
Termination.

          4.3  Resignation without Good Reason; Termination for Cause or for
Death or Disability. If, at any time, the Employee voluntarily terminates his
employment with the Company, excluding a termination for Good Reason, or the
Employee's employment with the

                                       6
<PAGE>

Company is terminated by the Company for Cause or by reason of the Employee's
death or Disability, then the Company shall pay the Employee (or his estate, if
applicable), in a lump sum in cash within 30 days after the Date of Termination,
the Accrued Obligations.

          4.4  Treatment of Stock Options.

               (a)  Upon a Change of Control. If a Change in Control Date occurs
during the Term, then, effective upon the Change in Control Date, each
outstanding option to purchase shares of Common Stock of the Company held by the
Employee shall become immediately exercisable in full and will no longer be
subject to a right of repurchase by the Company.

               (b)  Upon Termination without Cause or for Good Reason. Except as
set forth in Section 4.4(a) above, in which case the terms of Section 4.4(a)
shall apply, if the Employee's employment is terminated during the Term by the
Company without Cause or by the Employee for Good Reason, then, with respect to
each outstanding option to purchase shares of Common Stock of the Company held
by the Employee on the Date of Termination, (i) the vested portion of such
option shall remain exercisable during the six month period following the Date
of Termination, (ii) the unvested portion of such option shall continue to vest
in accordance with the vesting schedule of such option during the one year
period following the Date of Termination, and (iii) such option shall expire on
the date that is six months after the Date of Termination.

     5.   Disputes.

          5.1  Settlement of Disputes; Arbitration. All claims by the Employee
for benefits under this Agreement shall be directed to and determined by the
Board of Directors of the Company and shall be in writing. Any denial by the
Board of Directors of a claim for benefits under this Agreement shall be
delivered to the Employee in writing and shall set forth the specific reasons
for the denial and the specific provisions of this Agreement relied upon. The
Board of Directors shall afford a reasonable opportunity to the Employee for a
review of the decision denying a claim. Any further dispute or controversy
arising under or in connection with this Agreement shall be settled exclusively
by arbitration in Boston, Massachusetts, in accordance with the rules of the
American Arbitration Association then in effect. Judgment may be entered on the
arbitrator's award in any court having jurisdiction.

          5.2  Expenses. The Company agrees to pay as incurred, to the full
extent permitted by law, all legal, accounting and other fees and expenses which
the Employee may reasonably incur as a result of any claim or contest
(regardless of the outcome thereof) by the Company, the Employee or others
regarding the validity or enforceability of, or liability under, any provision
of this Agreement or any guarantee of performance thereof (including as a result
of any contest by the Employee regarding the amount of any payment or benefits
pursuant to this Agreement), plus in each case interest on any delayed payment
at the applicable Federal rate provided for in Section 7872(f)(2)(A) of the
Code.

     6.   Successors.

                                       7
<PAGE>

          6.1  Successor to Company. The Company shall require any person or
entity that purchases all or substantially all of the assets of the Company
expressly to assume and agree to perform this Agreement to the same extent that
the Company would be required to perform it if no such purchase had taken place.
As used in this Agreement, "Company" shall mean the Company as defined above and
any successor to its business or assets as aforesaid which assumes and agrees to
perform this Agreement, by operation of law or otherwise.

          6.2  Successor to Employee. This Agreement shall inure to the benefit
of and be enforceable by the Employee's personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees. If the Employee should die while any amount would still be payable to
the Employee or his family hereunder if the Employee had continued to live, all
such amounts, unless otherwise provided herein, shall be paid in accordance with
the terms of this Agreement to the executors, personal representatives or
administrators of the Employee's estate.

     7.   Notice. All notices, instructions and other communications given
hereunder or in connection herewith shall be in writing. Any such notice,
instruction or communication shall be sent either (i) by registered or certified
mail, return receipt requested, postage prepaid, or (ii) prepaid via a reputable
nationwide overnight courier service, in each case addressed to the Company, at
289 Turnpike Road, Westboro, Massachusetts 01581, and to the Employee at the
address set forth below his name on the signature page hereto (or to such other
address as either the Company or the Employee may have furnished to the other in
writing in accordance herewith). Any such notice, instruction or communication
shall be deemed to have been delivered five business days after it is sent by
registered or certified mail, return receipt requested, postage prepaid, or one
business day after it is sent via a reputable nationwide overnight courier
service. Either party may give any notice, instruction or other communication
hereunder using any other means, but no such notice, instruction or other
communication shall be deemed to have been duly delivered unless and until it
actually is received by the party for whom it is intended.

     8.   Miscellaneous.

          8.1  Employment by Subsidiary. For purposes of this Agreement, the
Employee's employment with the Company shall not be deemed to have terminated
solely as a result of the Employee continuing to be employed by a wholly-owned
subsidiary of the Company.

          8.2  Severability. The invalidity or unenforceability of any provision
of this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

          8.3  Injunctive Relief. The Company and the Employee agree that any
breach of this Agreement by the Company is likely to cause the Employee
substantial and irrevocable damage and therefore, in the event of any such
breach, in addition to such other remedies which may be available, the Employee
shall have the right to specific performance and injunctive relief.

                                       8
<PAGE>

          8.4  Governing Law. The validity, interpretation, construction and
performance of this Agreement shall be governed by the internal laws of the
Commonwealth of Massachusetts, without regard to conflicts of law principles.

          8.5  Waivers. No waiver by the Employee at any time of any breach of,
or compliance with, any provision of this Agreement to be performed by the
Company shall be deemed a waiver of that or any other provision at any
subsequent time.

          8.6  Counterparts. This Agreement may be executed in counterparts,
each of which shall be deemed to be an original but both of which together shall
constitute one and the same instrument.

          8.7  Tax Withholding. Any payments provided for hereunder shall be
paid net of any applicable tax withholding required under federal, state or
local law.

          8.8  Entire Agreement. This Agreement sets forth the entire agreement
of the parties hereto in respect of the subject matter contained herein and
supersedes all prior agreements (including but not limited to any stock option
acceleration agreement between the Company and the Employee), promises,
covenants, arrangements, communications, representations or warranties, whether
oral or written, by any officer, employee or representative of any party hereto
in respect of the subject matter contained herein; and any prior agreement of
the parties hereto in respect of the subject matter contained herein is hereby
terminated and cancelled. Notwithstanding the foregoing, in the event that this
Agreement is terminated as a result of (a) the expiration of the Term prior to
the occurrence of a Change in Control or (b) the termination of the Employee's
employment by the Company prior to the Change in Control Date, any such stock
option acceleration agreement shall not be superseded and shall continue in full
force and effect in accordance with its terms.

          8.9  Amendments. This Agreement may be amended or modified only by a
written instrument executed by both the Company and the Employee.

                  [Remainder of page intentionally left blank.]

                                       9
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first set forth above.

                                        Applix, Inc.

                                        By:  /s/ David C. Mahoney
                                           ---------------------------------
                                                 David C. Mahoney
                                                 President and CEO

/s/ Michael A. Morrison
------------------------------------
Michael A. Morrison
Address: 7 Overlook Drive
         Groton, MA 01450

                                       10

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