Document:

Form of Freescale Holdings 2006 Management Incentive Plan-existing stock options

 EXHIBIT 10.2 
 FREESCALE SEMICONDUCTOR HOLDINGS 
 NONQUALIFIED STOCK OPTION AGREEMENT 
 THIS AGREEMENT (the “Agreement”), is made effective as of the date indicated in the grant summary in the Freescale equity recordkeeping system
(the “Date of Grant”), between Freescale Semiconductor Holdings I, Ltd., a Bermuda limited company (the “Company”), and the recipient of the grant (the “Participant”): 
 R E C I T A L S: 
 WHEREAS, the
Company has adopted the Freescale Holdings 2006 Management Incentive Plan (the “Plan”), which Plan is incorporated herein by reference and made a part of this Agreement. Capitalized terms not otherwise defined herein shall have the same
meanings as in the Plan; and 
 WHEREAS, the Committee has determined that it would be in the best interests of the Company and its
shareholders to grant the Stock Option provided for herein to the Participant pursuant to the Plan and the terms set forth herein in exchange for the option held by the Participant to acquire shares of the Company pursuant to a previous award under
the Plan (the “Prior Option”). 
 NOW THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties agree
as follows: 
 1. Grant of the Option. The Company hereby grants (subject to the Participant’s execution of the
Investors Agreement) to the Participant the right and option (the “Option”) to purchase, on the terms and conditions hereinafter set forth, all or any part of an aggregate number of shares of Common Stock (each a “Share” and
collectively, the “Shares”) as indicated in the grant summary in the Freescale equity recordkeeping system. The purchase price of the Shares subject to the Option shall be $1.24 per Share (the “Option Price”). The Option is
intended to be a non-qualified stock option, and is not intended to be treated as an option that complies with Section 422 of the Code. The Option is granted to the Participant in substitution for the Prior Option (which Prior Option is hereby
cancelled). 
 2. Vesting. 

 (a) Subject to the Participant’s continued Employment with the Company, or except as
otherwise provided below, the Option shall vest and become exercisable with respect to twenty-five percent (25%) of the Shares initially covered by the Option on each of the first, second, third and fourth anniversaries of the Date of Grant. At
any time, the portion of the Option which has become vested and exercisable as described above (or pursuant to Sections 2(b) or 4 below) is hereinafter referred to as the “Vested Portion”. 
 (b) Notwithstanding any other provisions of this Agreement to the contrary, in the event of a Change of Control, the unvested portion of
the Option shall become vested and exercisable for an additional number of Shares where that additional number of Shares equals the remaining unvested Shares multiplied by the Change of Control Cash Consideration Fraction. For purposes of this
Agreement, “Change of Control Cash Consideration Fraction” shall mean, with respect to a Change of Control, the portion of the per Share consideration which is paid in the form of cash, provided that if the Change of Control Cash
Consideration Fraction is .75 or higher, it shall be deemed to be 1. Notwithstanding the above, in the event the Participant’s Employment is terminated by the Company or any successor thereto without Cause or by the Participant for Good Reason,
in each case following a Change of Control, the Option shall immediately become fully vested and exercisable. 
 3.
Exercise of Option. 
 (a) Period of Exercise. Subject to the provisions of the Plan and this Agreement, the
Participant may exercise all or any part of the Vested Portion of the Option at any time prior to the earliest to occur of: 
 (i) the tenth anniversary of the Date of Grant; 
 (ii) one (1) year following the date of the
Participant’s termination of Employment due to death or Disability; 
 (iii) ninety (90) days following the date of
the Participant’s termination of Employment for any reason other than due to the Participant’s death or Disability; and 
 (iv) the date of the Participant’s termination of Employment for Cause. 
 (b) Method of Exercise.

 (i) Each election to exercise the Vested Portion shall be subject to the terms and conditions of the Plan and shall be in
writing, signed by the Participant or by his or her executor, administrator, or permitted transferee (subject to any restrictions provided under the Plan and the Investors Agreement), made pursuant to and in accordance with the terms and conditions
set forth in the Plan and received by the Company at its principal offices, accompanied by payment in full as provided in the Plan. 
  

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 (ii) The Option Price may be paid by delivery of cash or check acceptable to the
Committee, or by means of withholding of Shares subject to the Vested Portion with an aggregate Fair Market Value equal to (A) the aggregate exercise price and (B) unless the Committee determines otherwise under Section 11 of this
Agreement or the Company is precluded or restricted from doing so under debt covenants, minimum statutory withholding taxes with respect to such exercise, or by such other method provided under the Plan and explicitly approved by the Committee. In
the event that the Vested Portion is exercised by a person other than the Participant, the Company shall ascertain the authority of the Option holder to exercise the Vested Portion and shall deliver the Shares hereunder to the Option holder after it
is satisfied as to such authority. 
 (iii) Notwithstanding any other provision of the Plan or this Agreement to the contrary,
the Vested Portion may not be exercised prior to the completion of any registration or qualification of the Option or the Shares under applicable state and federal securities or other laws, or under any ruling or regulation of any governmental body
or national securities exchange that the Committee shall in its sole discretion determine to be necessary or advisable. The Committee shall use its best efforts to cause any registration or qualification of the Option or the Shares to be completed.

 (iv) Upon the Company’s determination that the Vested Portion of the Option has been validly exercised as to any of
the Shares, the Company shall issue certificates in the Participant’s name for such Shares. However, the Company shall not be liable to the Participant for damages relating to any reasonable delays in issuing the certificates to such
Participant, any loss of the certificates, or any mistakes or errors in the issuance of the certificates or in the certificates themselves which it promptly undertakes to correct. 
 (v) In the event of the Participant’s death, the Option shall remain exercisable by the Participant’s executor or administrator,
or the person or persons to whom the Participant’s rights under this Agreement shall pass by will or by the laws of descent and distribution as the case may be, to the extent set forth in Section 3(a). Any heir or legatee of the
Participant shall take rights herein granted subject to the terms and conditions hereof. 
 (vi) In no event may a Participant
or any other holder of an Option who has not executed the Investors Agreement exercise any part of the Vested Portion. 
 4.
Termination of Employment. 
  

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 (a) General. If the Participant’s Employment is terminated for any reason,
the Option shall, to the extent not then vested (after giving effect to the provisions of Section 2(b) and this Section 4), terminate upon such termination of Employment and the Vested Portion of the Option shall remain exercisable for the
period set forth in Section 3(a) and shall thereafter terminate. 
 (b) For Cause. The Option (including any
Vested Portion thereof) shall terminate upon the Participant’s termination of Employment for Cause. 
 (c) Without
Cause or for Good Reason. Upon the Participant’s termination of Employment without Cause or by the Participant for Good Reason, the Option shall become vested and exercisable for an additional number of Shares equal to the number of Shares
subject to the Option (if any) that would have vested on the next anniversary of the Date of Grant if the Participant had remained employed until such date (the “Subsequent Tranche”), multiplied by a fraction, the numerator of which equals
the number of days elapsed from the vesting date immediately preceding termination of the Participant’s Employment through the Participant’s termination of Employment and the denominator of which equals 365 plus, if so determined in the
sole discretion of the Chief Executive Officer of the Company, the Subsequent Tranche; subject in all circumstances to the maximum of the total number of Shares subject to the Option as of the date of such termination of Employment. Any portion of
the Option that is not exercisable after giving effect to the above provisions of this Section 4(c) shall terminate immediately effective as of the termination of the Participant’s Employment. 
 (d) Death. Upon the Participant’s termination of Employment due to death, the Option shall become fully vested and
exercisable. 
 (e) Disability. Upon the Participant’s termination of Employment due to Disability, the Option
shall become fully vested and exercisable. 
 (f) Retirement. Upon the Participant’s termination of Employment due
to Retirement and solely to the extent so determined by the Company’s Chief Executive Officer, the Option shall become vested and exercisable for an additional number of Shares equal to the Subsequent Tranche multiplied by a fraction, the
numerator of which equals the number of days elapsed from the vesting date immediately preceding termination of Participant’s Employment through the Participant’s termination of Employment and the denominator of which equals 365; subject
in all circumstances to the maximum of the total number of Shares subject to the Option as of the date of such termination of Employment. Any portion of the Option that is not exercisable after giving effect to the above provisions of this
Section 4(f) shall terminate immediately effective as of the termination of the Participant’s Employment. 
 (g)
By the Participant other than due to Disability or Good Reason. If the Participant’s Employment is terminated on account of a termination of the Participant’s Employment initiated by the Participant other than due to Disability or
Good Reason, then the unvested portion of the Option then held by the Participant shall be automatically forfeited. 
  

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 (h) Forfeiture. Notwithstanding anything herein to the contrary, if the
Participant breaches any Restrictive Covenants applicable to the Participant (including, without limitation, the Restrictive Covenants set forth in Exhibit A hereto) following termination of the Participant’s Employment by the Participant other
than due to Disability or Good Reason, then (x) any portion of the Option that vested during the twelve-month period immediately preceding the date of termination (the “Preceding Tranche”) shall be automatically forfeited,
(y) any Shares acquired pursuant to the exercise of an Option in the Preceding Tranche shall be subject to the call option set forth in Section 6 of the Investors Agreement and (z) any proceeds from the sale of Shares described in
preceding clause (y), shall be immediately repaid to the Company. 
 5. Certain Covenants. The Participant hereby
agrees and covenants to perform all of his obligations set forth in Exhibit A hereto (which is incorporated by reference hereby) and acknowledges that the Participant’s obligations set forth in Exhibit A constitute a material inducement for the
Company’s grant of Options to the Participant. 
 6. Share Restrictions, etc. Except as expressly provided herein,
the Participant’s rights hereunder and with respect to Shares received upon exercise of the Vested Portion are subject to the restrictions and other provisions contained in the Investors Agreement. 
 7. Distributions, Redemptions, etc. Upon the occurrence of an Adjustment Event, the Option Price shall be reduced by an amount
equal to the per-Share amount paid in connection with the Adjustment Event; provided, however, that any such reduction shall be limited to that portion of such amount which would not cause the Option Price to be reduced below 25% of the per-Share
Fair Market Value, as of the date of such reduction. In the case of a redemption or repurchase, the number of Shares of the class of stock redeemed or repurchased that are subject to the Option will be automatically reduced by an amount
proportionate to the percentage reduction in outstanding shares of the affected class resulting from the redemption or repurchase. 
 8. No Right to Continued Employment. The granting of the Option evidenced hereby and this Agreement shall impose no obligation on the Company or any Affiliate to continue the Employment of the Participant and shall not lessen or
affect the Company’s or its Affiliate’s right to terminate the Employment of such Participant. 
 9. Legend on
Certificates. The certificates representing the Shares purchased by exercise of the Vested Portion shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations,
and other requirements of the Securities and Exchange Commission, any stock exchange upon which such Shares are listed, and any applicable Federal or state laws, and the Committee may cause a legend or legends to be put on any such certificates to
make appropriate reference to such restrictions. 
  

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 10. Transferability. Except as provided in the Investors Agreement, the Option may
not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant otherwise than by will or by the laws of descent and distribution, and any such purported assignment, alienation, pledge, attachment, sale,
transfer or encumbrance shall be void and unenforceable against the Company or any Affiliate; provided that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance. No such
permitted transfer of the Option to heirs or legatees of the Participant shall be effective to bind the Company unless the Committee shall have been furnished with written notice thereof and a copy of such evidence as the Committee may deem
necessary to establish the validity of the transfer and the acceptance by the transferee or transferees of the terms and conditions hereof. During the Participant’s lifetime, the Vested Portion is exercisable only by the Participant or a
permitted transferee (pursuant to the Investors Agreement). 
 11. Withholding. Notwithstanding any other provisions of
this Agreement to the contrary, the Participant may be required to pay to the Company or any Affiliate and the Company shall have the right and is hereby authorized to withhold from any payment due or transfer made under the Option or under the Plan
or from any compensation or other amount owing to a Participant the amount (in cash, Shares, other securities or other property) of any applicable withholding taxes in respect of the Option, its exercise or any payment or transfer under or with
respect to the Option or the Plan and to take such other action as may be necessary in the opinion of the Committee to satisfy all obligations for the payment of such withholding taxes. 
 12. Securities Laws. The issuance of any Shares hereunder shall be subject to the Participant making or entering into such written
representations, warranties and agreements as the Committee may reasonably request in order to comply with applicable securities laws. 
 13. Notices. Any notice necessary under this Agreement shall be addressed to the Company in care of its Secretary at the principal executive office of the Company and to the Participant at the address appearing
in the personnel records of the Company for the Participant or to either party at such other address as either party hereto may hereafter designate in writing to the other. Any such notice shall be deemed effective upon receipt thereof by the
addressee. 
 14. Governing Law. This Agreement and all claims arising out of or based upon this Agreement or relating
to the subject matter hereof shall be governed by and construed in accordance with the domestic substantive laws of the State of Delaware without giving effect to any choice or conflict of laws provision or rule that would cause the application of
the domestic substantive laws of any other jurisdiction. 
  

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 15. Consent to Jurisdiction. All actions arising out of or relating to this
Agreement shall be heard and determined exclusively in any New York state or federal court sitting in the Borough of Manhattan in The City of New York. The parties hereto hereby (a) submit to the exclusive jurisdiction of any state or federal
court sitting in the Borough of Manhattan of The City of New York for the purpose of any action arising out of or relating to this Agreement brought by any party hereto, and (b) irrevocably waive, and agree not to assert by way of motion,
defense, or otherwise, in any such action, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune of from attachment or execution, that the action is brought in an
inconvenient forum, that the venue of the action is improper, or that this Agreement or the transactions contemplated hereby may not be enforced in or by any of the above-named courts. 
 16. WAIVER OF JURY TRIAL. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW WHICH CANNOT BE WAIVED, EACH PARTY HERETO HEREBY WAIVES
AND COVENANTS THAT IT WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY FORUM IN RESPECT OF ANY ISSUE OR ACTION, CLAIM, CAUSE OF ACTION OR SUIT (IN CONTRACT, TORT OR OTHERWISE), INQUIRY, PROCEEDING OR
INVESTIGATION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE SUBJECT MATTER HEREOF OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE TRANSACTIONS CONTEMPLATED HEREBY, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING. EACH PARTY
HERETO ACKNOWLEDGES THAT IT HAS BEEN INFORMED BY THE OTHER PARTIES HERETO THAT THIS SECTION 16 CONSTITUTES A MATERIAL INDUCEMENT UPON WHICH THEY ARE RELYING AND WILL RELY IN ENTERING INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY. ANY
PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION 16 WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY. 
 17. Option Subject to Plan and Investors Agreement. By entering into this Agreement the Participant agrees and acknowledges that
the Participant has received and read a copy of the Plan, the Investors Agreement and the Offering Memorandum for the Plan. The Option is subject to the Plan and the Investors Agreement, each as may be amended from time to time, and the terms and
provisions of the Plan and the Investors Agreement are hereby incorporated herein by reference. By entering into this Agreement, the Participant hereby authorizes the General Counsel of Freescale Semiconductor, Inc. (the “General Counsel”)
as the Participant’s attorney-in-fact and delegates full power and authority to the General Counsel to enter into the Investors Agreement on the Participant’s behalf. 
 18. Section 409A. It is intended that the terms of this Agreement comply with section 409A of the Code. If it is determined
that the terms of this Agreement have been structured in a manner that would result in adverse tax treatment under Section 409A of the Code, the parties agree to cooperate in taking all reasonable measures to restructure the arrangement to
minimize or avoid such adverse tax treatment without materially impairing Participant’s economic rights. 
  

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 19. Acceptance. This Agreement must be accepted by electronic signature of the
Participant in the Freescale equity recordkeeping system. 
  

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 EXHIBIT A 
 Restrictive Covenants. 
  

	(a)	Confidential Information. The Participant shall hold in a fiduciary capacity for the benefit of the Company and its Affiliates (collectively, the “Affiliated
Group”), all secret or confidential information, knowledge or data relating to the Affiliated Group and its businesses (including, without limitation, any proprietary and not publicly available information concerning any processes, methods,
trade secrets, research or secret data, costs, names of users or purchasers of their respective products or services, business methods, operating procedures or programs or methods of promotion and sale) that the Participant obtains during the
Participant’s Employment that is not public knowledge (other than as a result of the Participant’s violation of this Section (a)) (“Confidential Information”). The Participant shall not communicate, divulge or disseminate
Confidential Information at any time during or after the Participant’s Employment, except with the prior written consent of the Company, or as otherwise required by law or legal process or as such disclosure or use may be required in the course
of the Participant performing his duties and responsibilities with the Affiliated Group. Notwithstanding the foregoing provisions, if the Participant is required to disclose any such confidential or proprietary information pursuant to applicable law
or a subpoena or court order, the Participant shall promptly notify the Company in writing of any such requirement so that the Company or the appropriate member of the Affiliated Group may seek an appropriate protective order or other appropriate
remedy or waive compliance with the provisions hereof. The Participant shall reasonably cooperate with the Company or the appropriate member of the Affiliated Group to obtain such a protective order or other remedy. If such order or other remedy is
not obtained prior to the time the Participant is required to make the disclosure, or the Company waives compliance with the provisions hereof, the Participant shall disclose only that portion of the confidential or proprietary information which he
is advised by counsel in writing (either his or the Company’s) that he is legally required to so disclose. Upon his termination of Employment for any reason, the Participant shall promptly return to the Company all records, files, memoranda,
correspondence, notebooks, notes, reports, customer lists, drawings, plans, documents, and other documents and the like relating to the business of the Affiliated Group or containing any trade secrets relating to the Affiliated Group or that the
Participant uses, prepares or comes into contact with during the course of the Participant’s employment with the Affiliated Group, and all keys, credit cards and passes, and such materials shall remain the sole property of the Affiliated Group.
The Participant agrees to execute any standard-form confidentiality agreements with the Company that the Company in the future generally enters into with its senior executives. 

  

	(b)	 Work Product and Inventions. The Affiliated Group and/or its nominees or assigns shall own all right, title and interest in and to any and all inventions, ideas,
trade secrets, technology, devices, discoveries, improvements, processes, developments, designs, 

  

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know how, show-how, data, computer programs, algorithms, formulae, works of authorship, works modifications, trademarks, trade names, documentation,
techniques, designs, methods, trade secrets, technical specifications, technical data, concepts, expressions, patents, patent rights, copyrights, moral rights, and all other intellectual property rights or other developments whatsoever
(collectively, “Developments”), whether or not patentable, reduced to practice or registrable under patent, copyright, trademark or other intellectual property law anywhere in the world, made, authored, discovered, reduced to
practice, conceived, created, developed or otherwise obtained by the Participant (alone or jointly with others) during the Participant’s Employment with the Affiliated Group, and arising from or relating to such employment or the business of
the Affiliated Group (whether during business hours or otherwise, and whether on the premises of using the facilities or materials of the Affiliated Group or otherwise). The Participant shall promptly and fully disclose to the Affiliated Group and
to no one else all Developments, and hereby assigns to the Affiliated Group without further compensation all right, title and interest the Participant has or may have in any Developments, and all patents, copyrights, or other intellectual property
rights relating thereto, and agrees that the Participant has not acquired and shall not acquire any rights during the course of his employment with the Affiliated Group or thereafter with respect to any Developments. 

  

	(c)	Non-Recruitment of Affiliated Group Employees. The Participant shall not, at any time during the Nonsolicitation Restricted Period (as defined below), other than in the ordinary
exercise of his duties, without the prior written consent of the Affiliated Group, directly or indirectly, solicit, recruit, or employ (whether as an employee, officer, agent, consultant or independent contractor) any person who is or was at any
time during the previous 12 months, an employee, representative, officer or director of any member of the Affiliated Group. Further, during the Nonsolicitation Restricted Period, the Participant shall not take any action that could reasonably be
expected to have the effect of directly encouraging or inducing any person to cease their relationship with any member of the Affiliated Group for any reason. A general employment advertisement by an entity of which the Participant is a part will
not constitute solicitation or recruitment. The “Nonsolicitation Restricted Period” shall mean the period from the Date of Grant through the second anniversary of the Participant’s termination of Employment.

  

	(d)	 Non-Competition – Solicitation of Business. During the Noncompetition Restricted Period (as defined below), the Participant shall not, either directly or
indirectly, compete with the business of the Affiliated Group by (i) becoming an officer, agent, employee, partner or director of any other corporation, partnership or other entity, or otherwise render services to or assist or hold an interest
(except as a less than 3-percent shareholder of a publicly traded corporation or as a less than 5-percent shareholder of a corporation that is not publicly traded) in any Competitive Business (as defined below), or (ii) soliciting, servicing,
or accepting the business of (A) any active customer of any member of the Affiliated Group, or (B) any person or entity who is or was at any time during the previous twelve months a customer of any member of the Affiliated Group, 

  

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provided that such business is competitive with any significant business of any member of the Affiliated Group. “Competitive Business” shall
mean any person or entity (including any joint venture, partnership, firm, corporation, or limited liability company) that conducts a business that is competitive with any significant business of the Affiliated Group as of the date of termination
(or any significant business that is being actively pursued as of the date of termination by the Affiliated Group). The “Noncompetition Restricted Period” shall mean the period from the Date of Grant through the second anniversary
of the date of termination of the Participant’s Employment. 

  

	(e)	Assistance. The Participant agrees that during and after his employment by the Affiliated Group, upon request by the Company, the Participant will assist the Affiliated Group in the
defense of any claims, or potential claims that may be made or threatened to be made against any member of the Affiliated Group in any action, suit or proceeding, whether civil, criminal, administrative, investigative or otherwise (a
“Proceeding”), and will assist the Affiliated Group in the prosecution of any claims that may be made by any member of the Affiliated Group in any Proceeding, to the extent that such claims may relate to the Participant’s
Employment or the period of the Participant’s Employment by the Affiliated Group. The Participant agrees, unless precluded by law, to promptly inform the Company if the Participant is asked to participate (or otherwise become involved) in any
Proceeding involving such claims or potential claims. The Participant also agrees, unless precluded by law, to promptly inform the Company if the Participant is asked to assist in any investigation (whether governmental or otherwise) of any member
of the Affiliated Group (or their actions), regardless of whether a lawsuit has then been filed against any member of the Affiliated Group with respect to such investigation. The Company agrees to reimburse the Participant for all of the
Participant’s reasonable out-of-pocket expenses associated with such assistance, including travel expenses and any attorneys’ fees and shall pay a reasonable per diem fee for the Participant’s service. In addition, the Participant
agrees to provide such services as are reasonably requested by the Company to assist any successor to the Participant in the transition of duties and responsibilities to such successor. Any services or assistance contemplated in this Section
(e) shall be at mutually agreed to and convenient times. 

  

	(f)	 Remedies. The Participant acknowledges and agrees that the terms of this Exhibit A: (i) are reasonable in geographic and temporal scope, (ii) are
necessary to protect legitimate proprietary and business interests of the Affiliated Group in, inter alia, near permanent customer relationships and confidential information. The Participant further acknowledges and agrees that the
Participant’s breach of the provisions of this Exhibit A will cause the Affiliated Group irreparable harm, which cannot be adequately compensated by money damages. The Participant consents and agrees that the forfeiture provisions contained in
the Plan, the Agreement and the Investors Agreement, are reasonable remedies in the event the Participant commits any such breach. If any of the provisions of this Exhibit A are determined to be wholly or partially unenforceable, the Participant
hereby 

  

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agrees that Exhibit A or any provision hereof may be reformed so that it is enforceable to the maximum extent permitted by law. If any of the provisions of
this Exhibit A are determined to be wholly or partially unenforceable in any jurisdiction, such determination shall not be a bar to or in any way diminish the Affiliated Group’s right to enforce any such covenant in any other jurisdiction.

  

 12Employment Agreement between the Company and Richard W. Koe

 Exhibit 10.1 
 April 8, 2009 
 Richard W. Koe

 Dear Rick: 
 This letter acknowledges that on
February 26, 2009, TigerLogic Corporation (the “Company”) appointed you as its interim President and Chief Executive Officer. This letter confirms the terms of your offer of employment with the Company as its interim President and
Chief Executive Officer. Such terms are as follows: 
 1. Duties. The Company acknowledges that you will continue to serve as
the President of Astoria Capital Management, as the Managing General Partner of Astoria Capital Partners, L.P., and as a director on the Company’s Board of Directors during your employment relationship with the Company. Astoria Capital
Management is the General Partner of Astoria Capital Partners, L.P., a majority stockholder of the Company. However, you also acknowledge and agree that you will be able to devote sufficient business time, attention and energies to fulfill your
duties as the President and Chief Executive Officer of the Company. 
 2. Base Salary. You acknowledge and agree that from
February 26, 2009 until March 31, 2009, the Company paid you the minimum salary basis for your services, less applicable withholdings. Starting on April 1, 2009, the Company will pay you an annual base salary of $240,000, less
applicable withholdings, in accordance with the Company’s normal payroll procedures. 
 3. Health Benefit Reimbursement
Payments. The Company will reimburse you for the monthly payments that you make for health insurance coverage for you and your spouse and your dependents during the period of your employment with the Company. The Company will make these
reimbursement payments to you consistent with the Company’s normal expense reimbursement policy, provided that you submit documentation to the Company substantiating your payments for health insurance coverage. You shall also be eligible to
participate in the Company’s other, customary, employee benefit plans, including dental, vision, and disability insurance plans. 
 4. Vacation. As an officer of the Company, you shall be designated as an exempt employee. You will not accrue vacation or sick leave time. Reasonable time away from work is at your discretion and should be scheduled so
as not to interfere with critical corporate activities or your obligations to the Company. 
 5. Severance Following Termination
of Employment. In the event that the Board of Directors appoints a new President and Chief Executive Officer for the Company followed by the termination of your employment with the Company, then, subject to the release requirement and
Section 

  

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409A provisions prescribed in Appendix A attached hereto, you shall be entitled to receive a lump sum severance payment in an amount equal to three
(3) months of your base salary, less applicable withholdings, as in effect immediately prior to such termination, provided that you and the Company agree to execute and not revoke a release of claims agreement in a form acceptable to the
Company. 
 6. At-Will Employment. Your employment with the Company constitutes “at-will” employment, and thus
your employment relationship with the Company may be terminated, or you may resign, at any time with or without reason, notice, or cause. If your employment terminates for any reason, you shall not be entitled to any payments, benefits, damages,
awards or compensation other than as provided by this letter agreement, or as may otherwise be established under the Company’s then existing employee benefit plans or policies as of the date of termination. 
 7. Successors. Any successor to the Company (whether direct or indirect and whether by purchase, lease, merger, consolidation,
liquidation or otherwise) to all or substantially all of the Company’s business and/or assets shall assume the Company’s obligations under this letter agreement and agree expressly to perform the Company’s obligations under this
letter 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 letter agreement, the term “Company” shall include any
successor to the Company’s business and/or assets that executes and delivers the assumption agreement described in this paragraph or that becomes bound by the terms of this letter agreement by operation of law. Without the written consent of
the Company, you shall not assign or transfer this letter agreement or any right or obligation under this letter agreement to any other person or entity. Notwithstanding the foregoing, the terms of this letter agreement and all your rights hereunder
shall inure to the benefit of, and be enforceable by, your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 
 8. Immigration Verification. For purposes of federal immigration law, you will be required to provide to the Company documentary
evidence of your identity and eligibility for employment in the United States. Such documentation must be provided to us within three (3) business days of your date of hire, or our employment relationship with you may be terminated. 

9. Confidential Information. As a Company employee, you will be expected to abide by the Company’s rules and regulations, and the
Company will require you to sign an acknowledgment that you have read and understand the Company’s rules of conduct. You also agree to maintain the confidentiality of all confidential, proprietary, and trade secret information of the Company
and agree, as a condition of your employment, to enter into an At Will Employment, Confidential Information, Inventions Assignment and Arbitration Agreement (the “Confidentiality Agreement”). The Agreement provides for arbitration of all
claims and disputes relating to or arising out of your employment relationship with the Company, subject to limitations of any applicable law. 
 10. Integration. This letter (including Appendix A, attached hereto), the documents incorporated herein by reference, and the Confidentiality Agreement represent the entire agreement and understanding between you and
the Company concerning your employment relationship with the Company, and supersede and replace any and all prior agreements and understandings concerning your employment relationship with the Company, whether written or oral. The terms of this
letter may only be amended by a written document that is signed by the Company and you. 
  

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 11. Governing Law. California law governs this letter, without regard to its choice of law
rules. You and the Company hereby agree to personal jurisdiction and venue in the state and federal courts of the state of California. 
 12. Severability. In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable, or void, the remainder of this letter shall continue in full force and effect
without such provision. 
 13. Voluntary Execution. You acknowledge that you have had the opportunity to discuss this matter
with, and obtain advice from, an attorney, have had sufficient time to, and have carefully read and fully understand, all the provisions of this letter, and are knowingly and voluntarily entering into this letter. 
 To indicate your acceptance of the Company’s offer (including Appendix A, attached hereto), please sign and date this letter in the space
provided below and return it to me. A duplicate original is enclosed for your records. 
 We look forward to working with you at TigerLogic Corporation.

  

			
	Sincerely,
		
	By	 	/s/ Gerald F. Chew
		 	Gerald F. Chew
		 	Director
		
	By	 	/s/ Douglas G. Marshall
		 	Douglas G. Marshall
		 	Director

  

	
	ACCEPTED AND AGREED TO this
	8th day of April, 2009
	
	/s/ Richard W. Koe
	Richard W. Koe

 Enclosures: 
 Duplicate Original Letter 
 At-Will Employment, Confidential Information, Inventions Assignment and Arbitration Agreement

  

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 Appendix A 
 To the extent any severance payments will be made under this letter agreement, such severance payments will be delayed as necessary pursuant to (A) the Release Requirement and (B) the provisions of
Section 409A of the Code and the final regulations and any guidance promulgated thereunder (“Section 409A”), each as outlined below. 
 Release Requirement 
 The receipt of any severance pursuant to this letter agreement is subject to you executing and not
revoking a release of claims agreement in a form acceptable to the Company (the “Release”) and provided that such Release is effective and irrevocable within sixty (60) days following your termination of employment or such shorter
period specified in the Release (the “Release Deadline”). If the Release does not become effective and irrevocable by the Release Deadline, you will forfeit any rights to severance or benefits under this letter agreement. In no event will
severance payments or benefits be paid or provided until the Release becomes effective and irrevocable. The Company shall execute and not revoke the Release once it has been executed by you. 
 Section 409A 
 (i)
Notwithstanding anything to the contrary in this letter agreement, no severance pay or benefits to be paid or provided to you, if any, pursuant to this letter agreement that, when considered together with any other severance payments or separation
benefits, are considered deferred compensation under Section 409A (together, the “Deferred Payments”) will be paid or otherwise provided until you have a “separation from service” within the meaning of Section 409A.
Similarly, no severance payable to you, if any, pursuant to this letter agreement that otherwise would be exempt from Section 409A pursuant to Treasury Regulation Section 1.409A-1(b)(9) will be payable until you have a “separation
from service” within the meaning of Section 409A. 
 (ii) Any severance
payments or benefits under this letter agreement that would be considered Deferred Payments will be paid on, or, in the case of installments, will not commence until, the sixtieth (60th) day following your separation from service, or, if later, such time as required by clause (iii) below. Any installment payments that would have been made to you during
the sixty (60) day period immediately following your separation from service but for the preceding sentence will be paid to you on the sixtieth (60th) day following your separation from service and the remaining payments shall be made as
provided in this letter agreement. 
 (iii) Notwithstanding anything to the contrary in this letter agreement, if you are a “specified
employee” within the meaning of Section 409A at the time of your separation from service, then, if required, the Deferred Payments, which are otherwise due to you on or within the six (6) month period following your separation from
service will accrue, to the extent required, during such six (6) month period and will become payable in a lump sum payment on the date six (6) months and one (1) day following the date of your separation from service or the date of
your death, if earlier. All subsequent Deferred Payments, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Each payment and benefit payable under this letter agreement is intended to constitute a
separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations. 
  

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 (iv) Any amount paid under the letter agreement that satisfies the requirements of the “short-term
deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations will not constitute Deferred Payments for purposes of clause (i) above. 
 (v) Any amount paid under this letter agreement that qualifies as a payment made as a result of an involuntary separation from service pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that does
not exceed the “Section 409A Limit” will not constitute Deferred Payments for purposes of clause (i) above. “Section 409A Limit” will mean the lesser of two (2) times: (i) your annualized compensation based upon
the annual rate of pay paid to you during your taxable year preceding your taxable year of your termination of employment as determined under Treasury Regulation Section 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued
with respect thereto; or (ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which your employment is terminated. 
 (vi) The foregoing provisions are intended to comply with the requirements of Section 409A so that none of the severance payments and benefits to be
provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply. You and the Company agree to work together in good faith to consider amendments to this letter
agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to you under Section 409A. 
  

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