Document:

Exhibit 10.7

 Exhibit 10.7 
 JER INVESTORS TRUST INC. 
 JER Investors Trust Inc. Nonqualified Stock Option and Incentive Award
Plan 
 Form of Stock Option Agreement 
 This STOCK OPTION AGREEMENT (this “Agreement”), dated as of the          day of
                ,             , is entered into by and between JER Investors Trust Inc., a
Maryland corporation (the “Company”), and [                ] (the “Optionee” and, together with the Company, the “Parties”).

 RECITALS 
 The Company
is granting to the Optionee an Option to acquire shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”) under the Company’s Nonqualified Stock Option and Incentive Award Plan (the “Plan”)
on the terms and conditions set forth herein. 
 Any capitalized terms not defined herein shall have their respective meanings set forth in
the Plan. 
 NOW, THEREFORE, the Parties hereto agree as follows: 
 The Optionee should carefully review these documents, and consult with his or her personal tax and legal advisors, in order to fully understand the
implications of this Award, including the tax alternatives and their consequences. By executing this Agreement, the Optionee agrees to be bound by all of the Plan’s terms and conditions. 
  

			
	Name of Optionee:	  	  
	Social Security No.:	  	  
	Address:	  	  
		  	  
		  	  
	Shares Subject to Option:	  	  
	(Subject to Adjustment)	  	
	Exercise Price Per Share:	  	  
	Date of Grant:	  	  
	Expiration Date:	  	  
	(Unless Earlier Terminated)	  	

 1. Number of Shares. The Company hereby grants to Optionee an option (this
“Option”) to purchase the total number of shares of Common Stock set forth above as Shares Subject to Option (the “Option Shares”) at the Exercise 

  

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Price Per Share set forth above, subject to the terms and conditions of this Agreement and the Plan. 
 2. Option Term. The term of the Option and of this Agreement (the “Option Term”) shall commence on the Date of Grant, as set forth above
and, unless the Option is previously terminated pursuant to the Plan or this Agreement, shall terminate upon the expiration of ten (10) years from the Date of Grant. Upon expiration of the Option Term, all rights of the Optionee hereunder shall
terminate. 
 3. Conditions of Exercise. 
 (a) The Option shall only be exercisable to the extent it is vested and non-forfeitable as provided under Section 4 below. 
 (b) As a further condition to exercising this Option, the spouse of the Optionee, if any, shall have executed and delivered to the Company the Consent of Spouse attached hereto as Exhibit A-1. 
 (c) Except as otherwise provided herein, the right of the Optionee to purchase Option Shares with respect to which this Option has become exercisable may
be exercised in whole or in part at any time or from time to time prior to expiration of the Option Term; provided, however, that the Option may not be exercised in respect of a number of Options having an aggregate exercise price less
than $1,000.00 unless such exercise is in respect of all remaining Options granted pursuant to this Agreement. Notwithstanding the foregoing, this Option may not be exercised for a fraction of a share. 
 4. Vesting Provisions. Subject to the Optionee performing services to the Company through each vesting date, the Option shall vest and become
exercisable as to [insert vesting schedule]. 
 5. Adjustments. In the event of any merger, reorganization, consolidation,
recapitalization, stock dividend, stock split or similar change affecting the Common Stock, a substitution or proportionate adjustment shall be made in the kind, number and option price of Shares of Common Stock subject to the unexercised portion of
the Option, as may be determined by the Committee in its sole discretion. 
 6. Nontransferability of Option and Option Agreement.
Except by will or under the laws of descent and distribution, the Option and this Agreement shall not be transferable and, during the lifetime of Optionee, the Option may be exercised only by Optionee. Without limiting the generality of the
foregoing, except as otherwise provided herein, the Option may not be assigned, transferred, pledged or hypothecated in any way, shall not be assignable by operation of law, and shall not be subject to execution, attachment or similar process. Any
attempted 

  

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assignment, transfer, pledge, hypothecation or other disposition of the Option contrary to the provisions hereof, and the levy of any execution, attachment
or similar process upon the Option shall be null and void and without effect. 
 7. Method of Exercise of Option. The Option may be
exercised by means of written notice of exercise to the Company, in a form prescribed by the Committee, specifying the number of Option Shares to be purchased (the “Exercised Shares”) and the Consent of Spouse, unless otherwise previously
delivered to the Company, and payment in full of the aggregate Exercise Price for the Exercised Shares and the applicable withholding taxes due thereon in cash or by check. At the discretion of the Committee, payment in whole or in part may also be
made (i) by means of a cashless exercise procedure either through a broker or through withholding of Option Shares otherwise issuable upon exercise of the Option in an amount sufficient to pay the aggregate Exercise Price of the Exercised
Shares and/or the minimum statutory withholding taxes with respect thereto, (ii) in the form of unrestricted shares of Common Stock already owned by the Optionee which have been owned by the Optionee for more than six months on the date of
surrender and have an aggregate Fair Market Value on the date of surrender equal to the aggregate Exercise Price of the Exercised Shares and/or the minimum statutory withholding taxes with respect thereto or (iii) by any other means of exercise
authorized from time to time in the Plan and/or by the Committee. 
 8. Effect of Termination of Employment. 
 (a) Upon the termination of the Optionee’s employment with the Company or Manager, as applicable, for any reason, any portion of the Option that has
not vested prior to such termination, shall immediately expire as of the date of such termination (the “Termination Date”). 
 (b)
In the event the Optionee’s employment with the Company or Manager, as applicable, is terminated for any reason other than for Cause, the vested portion of the Option shall be exercisable in whole or in part subject to the terms of the Plan and
this Agreement for a period of thirty (30) days following such termination date. Upon expiration of such period described in the foregoing, any unexercised portion of the Option (whether vested or unvested) shall terminate in full.
Notwithstanding the foregoing, this Option shall not be exercisable after the Expiration Date. 
 (c) If the Optionee’s employment with
the Company or Manager, as applicable, is terminated for Cause, the entire Option (whether vested or unvested) shall be forfeited as of the Termination Date. 
 9. Rights as a Stockholder. Neither the Optionee nor any of the Optionee’s successors in interest shall have any rights as a stockholder of the 

  

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Company with respect to any shares of Common Stock subject to the Option until the date of issuance of a stock certificate for such shares of Common Stock.

 10. Investment Representation. The Optionee represents and warrants to the Company that (a) the Optionee is acquiring and
(b) upon exercise of the Option, the Optionee will be purchasing shares of Common Stock, in each case, for the Optionee’s own account and not with a view to or for sale in connection with any distribution of the shares of Common Stock.

 11. Tax Representations. The Optionee acknowledges that he or she is relying solely on his or her own tax advisors and not on any
statements or representations of the Company or any of its agents. The Optionee understands that he or she (and not the Company) shall be responsible for any tax liability that may arise as a result of this investment or the transactions
contemplated by this Agreement. 
 12. Notices. For the purpose of this Agreement, notices and all other communications provided for
in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth herein, or to such
other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt: 
 If to the Company, to: 
 JER Investors Trust
Inc. 
 1650 Tysons Blvd., Suite 1600 
 McLean, VA 22102 
 Attn: Board of Directors and General Counsel 
 Telephone: (703) 714-8000 
 Facsimile:
(703) 714-8100 
 with a copy (which shall not constitute notice) to: 
 Skadden, Arps, Slate, Meagher & Flom LLP 
 4 Times Square 
 New York, New York 10036-6522 
 Attention: David J. Goldschmidt, Esq. 
 Telephone: (212) 735-3000 
 Facsimile: (212) 735-2000 
 If to the
Optionee: 
  

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 the most recent address included in the personnel records of the Company or Manager, as applicable.

 13. Securities Laws Requirements. The Option shall not be exercisable to any extent, and the Company shall not be obligated to
transfer any Option Shares to the Optionee upon exercise of such Option, if such exercise, in the opinion of counsel for the Company, would violate the Securities Act (or any other federal or state statutes having similar requirements as may be in
effect at that time) or any other applicable laws. 
 14. Protections Against Violations of Agreement. No purported sale, assignment,
mortgage, hypothecation, transfer, pledge, encumbrance, gift, transfer in trust (voting or other) or other disposition of, or creation of a security interest in or lien on, any of the Option Shares by any holder thereof in violation of the
provisions of this Agreement or the Certificate of Incorporation or the Bylaws of the Company, will be valid, and the Company will not transfer any of said Option Shares on its books nor will any of said Option Shares be entitled to vote, nor will
any dividends be paid thereon, unless and until there has been full compliance with said provisions to the satisfaction of the Company. The foregoing restrictions are in addition to and not in lieu of any other remedies, legal or equitable,
available to enforce said provisions. 
 15. Withholding Requirements. The Company’s obligations under this Agreement shall be
subject to all applicable tax and other withholding requirements, and the Company shall, to the extent permitted by law, have the right to deduct any withholding amounts from any payment or transfer of any kind otherwise due to the Optionee.

 16. Failure to Enforce Not a Waiver. The failure of the Company to enforce at any time any provision of this Agreement shall in no
way be construed to be a waiver of such provision or of any other provision hereof. 
 17. Governing Law; Jurisdiction. 
 (a) This Agreement shall be governed by and construed in accordance with the laws of the State of Virginia without regard to conflicts of laws principles
thereof. 
 (b) Each of the Optionee and the Company irrevocably and unconditionally submits, for itself and its property, to the exclusive
jurisdiction of any Virginia State Court or Federal Court sitting in Virginia, and any court having jurisdiction over appeals or matters heard in such courts, in any action or proceeding arising out of, connected with, related to or incidental to
the relationship established between them in connection with this Agreement, whether arising in contract, tort, equity or otherwise, or for recognition or enforcement of any judgment, and each of 

  

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the parties hereto irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding shall be heard and determined in such
state court or, to the extent permitted by law, in such federal court. Each of the Optionee and the Company (at the Company’s expense) irrevocably designates and appoints CT Corporation System, 4701 Cox Road, Suite 301, Glen Allen, Virginia
23060, as its agent (the “Process Agent”) for service of all process in any such proceeding in any such court, such service being hereby acknowledged to be effective and binding service in every respect. Each of the Optionee and the
Company agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Each of the Optionee and the Company waives in all
disputes any objection that it may have to the location of the court considering the dispute. 
 (c) Each of the Optionee and the Company
irrevocably consents to the service of process of any of the aforementioned courts in any such action or proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to the Process Agent or their respective notice
addresses specified herein, such service to become effective five (5) days after such mailing. Each of the Optionee and the Company irrevocably waives any objection (including, without limitation, any objection of the laying of venue or based
on the grounds of Forum non Conveniens) which it may now or hereafter have to be bringing of any such action or proceeding with respect to the Agreement in any jurisdiction set forth above. Nothing herein shall affect the right to serve process in
any other manner permitted by law. 
 (d) Waiver of Jury Trial. Each of the Optionee and the Company irrevocably waives trial by jury
in any action or proceeding with respect to this Agreement. 
 (e) Legal Costs and Expenses. In the event of a legal dispute between
the Optionee and the Company regarding their respective rights and obligations under this Agreement, the losing party to such dispute shall be required to promptly reimburse the prevailing party for all reasonable costs and expenses (including fees
and disbursements of counsel) incurred by the prevailing party in such dispute. 
 18. Incorporation of Plan. The Plan is hereby
incorporated by reference and made a part hereof, and the Option and this Agreement (including all the attachments hereto) shall be subject to all terms and conditions of the Plan. 
 19. Amendments. Except as otherwise set forth in the Plan, this Agreement may be amended or modified at any time only by an instrument in writing
signed by each of the parties hereto. 
  

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 20. Authority of the Committee. The Committee shall have full authority to interpret and construe
the terms of the Plan and this Agreement. The determination of the Committee as to any such matter of interpretation or construction shall be final, binding and conclusive. 
 21. Market Stand-Off. In connection with any underwritten public offering by the Company of its equity securities pursuant to an effective
registration statement filed under the Securities Act for such period as the Company or its underwriters may request (such period not to exceed 365 days following the date of the applicable offering), the Optionee shall not, directly or indirectly,
sell, make any short sale of, loan, hypothecate, pledge, offer, grant or sell any option or other contract for the purchase of, purchase any option or other contract for the sale of, or otherwise dispose of or transfer, or agree to engage in any of
the foregoing transactions with respect to, any Option Shares acquired under this Agreement without the prior written consent of the Company and the underwriters of such public offering. 
 22. Survival of Terms. This Agreement shall apply to and bind the Optionee and the Company and their respective permitted assignees and
transferees, heirs, legatees, executors, Committees and legal successors. 
 23. Captions. The captions and headings of the sections
and subsections of this Agreement are included for convenience only and are not to be considered in construing or interpreting this Agreement. 
 24. Counterparts. This Agreement may be executed in counterparts, each of which when signed by the Company or the Optionee will be deemed an original and all of which together will be deemed the same agreement. 
 25. Assignment. The Company may assign its rights and delegate its duties under this Agreement. If any such assignment or delegation requires
consent of any state securities authorities, the parties agree to cooperate in requesting such consent. This Agreement shall inure to the benefit of the successors and assigns of the Company and, subject to the restrictions on transfer herein set
forth, be binding upon the Optionee, his heirs, executors, administrators, successors and assigns. 
 26. Severability. This Agreement
will be severable, and the invalidity or unenforceability of any term or provision hereof will not affect the validity or enforceability of this Agreement or of any other term or provision hereof. Furthermore, in lieu of any invalid or unenforceable
term or provision, the Parties intend that there be added as a part of this Agreement a valid and enforceable provision as similar in terms to such invalid or unenforceable provision as may be possible. 
  

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 IN WITNESS WHEREOF, the Parties have executed this Agreement on the day and year first above written.

  

			
	 JER INVESTORS TRUST INC.

		
	By	 	  
		 	 Name: Joseph E. Robert, Jr.
 Title: Chief Executive Officer

 The undersigned hereby accepts and agrees to all the terms and provisions of the
foregoing Agreement. 
  

	
	  
	 [Name of Optionee]

  

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 EXHIBIT A-1 
 CONSENT OF SPOUSE 
 I,
                                , spouse of
[                                ], have read and hereby approve the Stock Option
Agreement by and between [                            ] and JER Investors Trust Inc. (the
“Company”), dated                         ,
             (the “Agreement”). In consideration of the granting of the right to my spouse to receive a nonqualified option to acquire certain shares of Company common
stock, par value $0.01 per share (“Common Stock”), as set forth in the Agreement, I hereby appoint my spouse as my attorney-in-fact with respect to the exercise of any rights under the Agreement and agree to be bound by the provisions of
the Agreement insofar as I may have any rights in said Agreement or any shares of Common Stock issued pursuant thereto under the community property laws or similar laws relating to marital property in effect in the state of our residence as of the
date of the signing of the foregoing Agreement. 
  

							
	Dated:	 	  	 	Signature:	  	  

  

 9Severance and Change of Control Agreement

 Exhibit 10.1 
 PHOENIX TECHNOLOGIES LTD. 
 SEVERANCE AND CHANGE OF CONTROL AGREEMENT 
 This Severance and Change of Control Agreement (the “Agreement”) is made and entered into by and between Ira Scharfglass
(“Executive”) and Phoenix Technologies Ltd. (the “Company”), effective as of June 28, 2006 (the “Effective Date”). 
 RECITALS 
 1. It is possible that the Company could terminate
Executive’s employment with the Company. The Board of Directors of the Company (the “Board”) recognizes that such consideration can be a distraction to Executive and can cause Executive to consider alternative employment
opportunities. The Compensation Committee of the Board (pursuant to its delegated authority) has determined that it is in the best interests of the Company and its stockholders to assure that the Company will have the continued dedication and
objectivity of Executive, notwithstanding the possibility, threat or occurrence of such a termination. 
 2. The Compensation Committee of
the Board believes that it is in the best interests of the Company and its stockholders to provide Executive with an incentive to continue his employment and to motivate Executive to maximize the value of the Company for the benefit of its
stockholders. 
 3. The Compensation Committee of the Board believes that it is imperative to provide Executive with certain severance
benefits upon certain terminations of Executive’s employment with the Company. These benefits will provide Executive with enhanced financial security and incentive and encouragement to remain with the Company. 
 4. Certain capitalized terms used in the Agreement are defined in Section 6 below. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the mutual covenants
contained herein, the parties hereto agree as follows: 
 1. Term of Agreement. This Agreement will have an initial term of three
(3) years commencing on the Effective Date. Notwithstanding the previous sentence, in the event of a Change of Control within three years of the Effective Date, the term of this Agreement will extend through the one-year anniversary of such
Change of Control. 
 2. At-Will Employment. The Company and Executive acknowledge that Executive’s employment is and will
continue to be at-will, as defined under applicable law. If Executive’s employment terminates for any reason, Executive will not be entitled to any payments, benefits, damages, awards or compensation other than as provided by this Agreement.

 3. Severance Benefits. 
 (a) Termination other than for Cause. If the Company (or any parent or subsidiary of the Company employing Executive) terminates Executive’s
employment with the Company (or any parent or subsidiary of the Company) for a reason other than Cause, Executive’s Disability or Executive’s death, then, subject to Section 4, Executive will receive the following severance benefits
from the Company: 
 (i) Accrued Compensation. Executive will be entitled to receive all accrued vacation, expense reimbursements and
any other benefits due to Executive through the date of termination of employment in accordance with the Company’s then existing employee benefit plans, policies and arrangements. 
 (ii) Severance Payments. Executive will be paid continuing payments of severance pay for six (6) months from the date of such termination at
a monthly rate equal to Executive’s monthly base salary rate, as then in effect. Such payments shall be paid periodically in accordance with the Company’s normal payroll policies. 
 (iii) Continued Benefits. Executive will receive Company-paid coverage during the first six (6) months following such termination for
Executive and Executive’s eligible dependents under the Company’s Benefit Plans. 
 (iv) Option Exercisability. The vested
portion of any stock options held by Executive as of the termination date will remain exercisable until the earlier of (i) the term of the applicable option or (ii) the date six (6) months from the termination date. 
 (v) Payments or Benefits Required by Law. Executive will receive such other compensation or benefits from the Company as may be required by law.

 (b) Certain Terminations in Connection with a Change of Control. If Executive terminates his employment with the Company (or any
parent or subsidiary of the Company) for Good Reason or the Company (or any parent or subsidiary of the Company employing Executive) terminates Executive’s employment with the Company (or any parent or subsidiary of the Company) for a reason
other than Cause, Executive’s Disability or Executive’s death within two (2) months prior to or twelve (12) months following a Change of Control, then (i) Executive shall receive the severance and other benefits set forth in
Section 3(a)(i)-(v), and (ii) 50% of the unvested shares subject to all of Executive’s outstanding rights to purchase or receive shares of the Company’s common stock (including, without limitation, through awards of stock
options, stock appreciation rights, restricted stock units or similar awards) whether acquired by Executive before or after the date of this Agreement and 50% of any of Executive’s shares of Company common stock subject to a Company right of
repurchase or forfeiture upon Executive’s termination of employment for any reason (whether acquired by Executive before or after the date of this Agreement), will immediately vest and, if applicable, become exercisable upon such termination.
In all other respects, such awards will continue to be subject to the terms and conditions of the plans, if any, under which they were granted and any applicable agreements between the Company and Executive. 
  

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 (c) Other Terminations. If Executive voluntarily terminates Executive’s employment with the
Company or any parent or subsidiary of the Company (other than for Good Reason within two (2) months prior to or twelve (12) months following a Change of Control) or if the Company (or any parent or subsidiary of the Company employing
Executive) terminates Executive’s employment with the Company (or any parent or subsidiary of the Company) due to Executive’s death, Disability or for Cause, then Executive will (i) receive his earned but unpaid base salary through
the date of termination of employment, (ii) receive all accrued vacation, expense reimbursements and any other benefits due to Executive through the date of termination of employment in accordance with established Company plans, policies and
arrangements, and (iii) not be entitled to any other compensation or benefits (including, by way of example but not limitation, accelerated vesting of any equity awards) from the Company except to the extent provided under agreement(s) relating
to any equity awards or as may be required by law (for example, “COBRA” coverage under Section 4980B of the Internal Revenue Code of 1986, as amended (the “Code”)). 
 (d) Exclusive Remedy. In the event of a termination of Executive’s employment with the Company (or any parent or subsidiary of the Company),
and whether separate or in connection with a Change of Control, the provisions of this Section 3 are intended to be and are exclusive and in lieu of any other rights or remedies to which Executive may otherwise be entitled, whether at law, tort
or contract, in equity, or under this Agreement. Executive will be entitled to no benefits, compensation or other payments or rights upon termination of employment other than those benefits expressly set forth in this Section 3. 
 4. Conditions to Receipt of Severance. 
 (a) Separation Agreement and Release of Claims. The receipt of any severance pursuant to Section 3 will be subject to Executive signing and not revoking a separation agreement and release of claims in a form acceptable to the
Company. No severance pursuant to Section 3 will be paid or provided until the separation agreement and release of claims becomes effective. 
 (b) Noncompetition; Nonsolicitation. The receipt of any severance benefits pursuant to Section 3 will be subject to Executive not violating the provisions of Section 7. In the event Executive breaches the provisions of
Section 7, all continuing payments and benefits to which Executive would have been entitled pursuant to Section 3 will immediately cease. 
 (c) Section 409A. Any cash severance to be paid pursuant to Section 3 will not be paid during the six-month period following Executive’s termination of employment, unless the Company reasonably determines that paying
such amounts immediately following Executive’s termination of employment would not result in the imposition of additional tax under Section 409A of the Code (“Section 409A”), in which case such amounts shall be paid in accordance
with normal payroll practices. If no cash severance is paid to Executive upon termination of his employment as a result of the previous sentence, on the first day following such six-month period, the Company will pay Executive a lump-sum amount
equal to the cumulative amounts that would have otherwise been paid to Executive pursuant to Section 3. Thereafter, Executive will receive his cash severance payments pursuant to Section 3 in accordance with the Company’s normal
payroll practices. 
  

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 5. Limitation on Payments. 
 (a) In the event that the severance and other benefits provided for in this Agreement or otherwise payable to Executive (i) constitute
“parachute payments” within the meaning of Section 280G of the Code and (ii) but for this Section 5, would be subject to the excise tax imposed by Section 4999 of the Code, then Executive’s severance benefits under
this Agreement shall be payable either 
 (i) in full, or 
 (b) as to such lesser amount which would result in no portion of such severance benefits being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the
applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by Executive on an after-tax basis, of the greatest amount of severance benefits under this Agreement, notwithstanding that all
or some portion of such severance benefits may be taxable under Section 4999 of the Code. Unless the Company and Executive otherwise agree in writing, any determination required under this Section 5 shall be made in writing by the
Company’s independent public accountants (the “Accountants”), whose determination shall be conclusive and binding upon the Executive and the Company for all purposes. For purposes of making the calculations required by this
Section 5, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and
Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section 5. The Company shall bear all costs the Accountants may reasonably incur in
connection with any calculations contemplated by this Section 5. 
 6. Definition of Terms. The following terms referred to in
this Agreement will have the following meanings: 
 (a) Benefit Plans. “Benefit Plans” means plans, policies or
arrangements that the Company sponsors (or participates in) and that immediately prior to Executive’s termination of employment provide Executive and/or Executive’s eligible dependents with medical, dental, and/or vision benefits. Benefit
Plans do not include any other type of benefit (including, but not by way of limitation, disability, life insurance or retirement benefits). A requirement that the Company provide Executive and Executive’s eligible dependents with coverage
under the Benefit Plans will not be satisfied unless the coverage is no less favorable than that provided to Executive and Executive’s eligible dependents immediately prior to Executive’s termination of employment. Notwithstanding any
contrary provision of this Section 6(a), but subject to the immediately preceding sentence, the Company may, at its option, satisfy any requirement that the Company provide coverage under any Benefit Plan by (i) reimbursing
Executive’s premiums under COBRA after Executive has properly elected continuation coverage under COBRA (in which case Executive will be solely responsible for electing such coverage for Executive and Executive’s eligible dependents), or
(ii) instead providing coverage under a separate plan or plans providing coverage that is no less favorable or by paying Executive a lump sum payment sufficient to provide Executive and Executive’s eligible dependents with equivalent
coverage under a third party plan that is reasonably available to Executive and Executive’s eligible dependents. 
  

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 (b) Cause. “Cause” means a failure by Executive to substantially perform
Executive’s duties as an employee, other than a failure resulting from the Executive’s complete or partial incapacity due to physical or mental illness or impairment, (ii) a willful act by Executive that constitutes misconduct,
(iii) circumstances where Executive intentionally or negligently imparts material confidential information relating to the Company or its business to competitors or to other third parties other than in the course of carrying out
Executive’s duties, (iv) a material violation by Executive of a federal or state law or regulation applicable to the business of the Company, (v) a willful violation of a material Company employment policy or the Company’s
insider trading policy, (vi) any act or omission by Executive constituting dishonesty (other than a good faith expense account dispute) or fraud, with respect to the Company or any of its affiliates, which is injurious to the financial
condition of the Company or any of its affiliates or is injurious to the business reputation of the Company or any of its affiliates, (vii) Executive’s failure to cooperate with the Company in connection with any actions, suits, claims,
disputes or grievances against the Company or any of its officers, directors, employees, stockholders, affiliates, divisions, subsidiaries, predecessor and successor corporations, and assigns, whether or not such cooperation would be adverse to
Executive’s own interest, or (viii) Executive’s conviction or plea of guilty or no contest to a felony. 
 (c) Change of
Control. “Change of Control” means the occurrence of any of the following: 
 (i) the sale, lease, conveyance or other
disposition of all or substantially all of the Company’s assets to any “person” (as such term is used in Section 13(d) of the Securities Exchange Act of 1934, as amended), entity or group of persons acting in concert; 

(ii) any person or group of persons becoming the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of
securities of the Company representing 50% or more of the total voting power represented by the Company’s then outstanding voting securities; 
 (iii) a merger or consolidation of the Company with any other corporation, other than a merger or consolidation that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of the surviving entity or its controlling entity) more than 50% of the total voting power represented by the voting securities of the Company or such surviving entity (or its
controlling entity) outstanding immediately after such merger or consolidation; or 
 (iv) a contest for the election or removal of members
of the Board that results in the removal from the Board of at least 50% of the incumbent members of the Board. 
 (d) Disability.
“Disability” means that Executive has been unable to perform the principal functions of his duties due to a physical or mental impairment, but only if such inability has lasted or is reasonably expected to last for at least six
(6) months. Whether Executive has a Disability will be determined by the Board based on evidence provided by one or more physicians selected or approved by the Board. 
  

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 (e) Good Reason. “Good Reason” means (without Executive’s consent)
(i) a material reduction in Executive’s title, authority, status, or responsibilities, unless the Executive is provided with a comparable position (i.e., a position of equal or greater organizational level, duties, authority, compensation
and status); provided, however, that a reduction in duties, position or responsibilities solely by virtue of the Company being acquired and made part of a larger entity (as, for example, when the Chief Executive Officer of the Company remains as
such following a Change of Control but is not made the Chief Executive Officer of the acquiring corporation) shall not constitute an “Involuntary Termination”; (ii) the reduction of Executive’s aggregate base salary and target
bonus opportunity as in effect immediately prior to such reduction (other than a reduction applicable to executives generally); or (iii) a relocation of Executive’s principal place of employment by more than fifty (50) miles.

 7. Restrictive Covenants. 
 (a) Noncompete. For a period beginning on the Effective Date and ending twelve (12) months after Executive ceases to be employed by the Company (or any parent or subsidiary of the Company), Executive agrees to not, directly or
indirectly, engage in (whether as an employee, consultant, agent, proprietor, principal, partner, stockholder, corporate officer, director or otherwise), nor have any ownership interest in or participate in the financing, operation, management or
control of, any person, firm, corporation or business that competes with Company (or any parent or subsidiary of the Company). 
 (b)
Nonsolicit. For a period beginning on the Effective Date and ending twelve (12) months after Executive ceases to be employed by the Company (or any parent or subsidiary of the Company), Executive, directly or indirectly, whether as
employee, owner, sole proprietor, partner, director, member, consultant, agent, founder, co-venturer or otherwise, will not: (i) solicit, induce or influence any person to leave employment with the Company (or any parent or subsidiary of the
Company); or (ii) directly or indirectly solicit business from any of the Company’s customers and users on behalf of any business that directly competes with the principal business of the Company (or any parent or subsidiary of the
Company). 
 (c) Understanding of Covenants. Executive represents that he (i) is familiar with the foregoing covenants not to
compete and not to solicit, and (ii) is fully aware of his obligations hereunder, including, without limitation, the reasonableness of the length of time, scope and geographic coverage of these covenants. 
 8. Litigation. Executive agrees to cooperate with the Company beginning on the Effective Date and thereafter (including following Executive’s
termination of employment for any reason), by making himself reasonably available to testify on behalf of the Company or any of its affiliates in any action, suit, or proceeding, whether civil, criminal, administrative, or investigative, and to
assist the Company, or any affiliate, in any such action, suit, or proceeding, by providing information and meeting and consulting with the Board or its representatives or counsel, or representatives or counsel to the Company, or any affiliate as
reasonably requested. The Company agrees to reimburse Executive for all expenses actually incurred in connection with his provision of testimony or assistance. 
  

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 9. Successors. 
 (a) The Company’s Successors. Any successor to the Company (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise) to all or substantially all of the
Company’s business and/or assets will assume the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such
obligations in the absence of a succession. For all purposes under this Agreement, the term “Company” will include any successor to the Company’s business and/or assets which executes and delivers the assumption agreement
described in this Section 9(a) or which becomes bound by the terms of this Agreement by operation of law. 
 (b) The Executive’s
Successors. The terms of this Agreement and all rights of Executive hereunder will inure to the benefit of, and be enforceable by, Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees. 
 10. Notice. 
 (a) General. Notices and all other communications contemplated by this Agreement will be in writing and will be deemed to have been duly given when personally delivered or when mailed by U.S. registered or
certified mail, return receipt requested and postage prepaid. In the case of Executive, mailed notices will be addressed to him at the home address which he most recently communicated to the Company in writing. In the case of the Company, mailed
notices will be addressed to its corporate headquarters, and all notices will be directed to the attention of its General Counsel. 
 (b)
Notice of Termination. Any termination by the Company for Cause or by Executive for Good Reason or as a result of a voluntary resignation will be communicated by a notice of termination to the other party hereto given in accordance with
Section 10(a) of this Agreement. Such notice will indicate the specific termination provision in this Agreement relied upon, will set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination under the
provision so indicated, and will specify the termination date (which will be not more than thirty (30) days after the giving of such notice). 
 11. Miscellaneous Provisions. 
 (a) No Duty to Mitigate. Executive will not be required to mitigate the amount of any
payment contemplated by this Agreement, nor will any such payment be reduced by any earnings that Executive may receive from any other source. 
 (b) Resignation as Director. Upon the Company’s written request, Executive agrees to promptly resign as a member of the Company’s Board of Directors following any termination of his employment with the Company (or any
parent or subsidiary of the Company). 
 (c) Waiver. No provision of this Agreement will be modified, waived or discharged unless the
modification, waiver or discharge is agreed to in writing and signed by Executive and by an authorized officer of the Company (other than Executive). No waiver by either party of any breach of, or of compliance with, any condition or provision of
this Agreement by the other party will be considered a waiver of any other condition or provision or of the same condition or provision at another time. 
  

 -7- 

 (d) Headings. All captions and section headings used in this Agreement are for convenient
reference only and do not form a part of this Agreement. 
 (e) Entire Agreement. This Agreement constitutes the entire agreement of
the parties hereto and supersedes in their entirety all prior representations, understandings, undertakings or agreements (whether oral or written and whether expressed or implied) of the parties with respect to the subject matter hereof, including
without limitation, any formal offer letter or employment agreement by and between the Company and Executive. No future agreements between the Company and Executive may supersede this Agreement, unless they are in writing and specifically mention
this Agreement. 
 (f) Choice of Law. The laws of the State of California (without reference to its choice of laws provisions) will
govern the validity, interpretation, construction and performance of this Agreement. 
 (g) Severability. The invalidity or
unenforceability of any provision or provisions of this Agreement will not affect the validity or enforceability of any other provision hereof, which will remain in full force and effect. 
 (h) Withholding. All payments made pursuant to this Agreement will be subject to withholding of applicable income and employment taxes.

 (i) Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same instrument. 
 [Remainder of Page Intentionally Left Blank] 
  

 -8- 

 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its
duly authorized officer, as of the day and year set forth below. 
  

					
	COMPANY	 	 PHOENIX TECHNOLOGIES LTD.

			
		 	By:	 	 /s/ SCOTT C. TAYLOR

		 	Title:	 	Senior Vice President and General Counsel
		
	EXECUTIVE	 	 IRA SCHARFGLASS

			
		 	By:	 	 /s/ IRA C. SCHARFGLASS

		 	Title:	 	 Senior Vice President and General Manager of
 Worldwide Engineering Operations

  

 -9-

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