Document:

exv10w1

EXHIBIT 10.1

NOTE: Portions of this Exhibit are the subject of a Confidential Treatment Request by the
Registrant to the Securities and Exchange Commission (the “Commission”). Such portions have been
redacted and are marked with a “[***]” in the place of the redacted language. The redacted
information has been filed separately with the Commission.

Asset Purchase Agreement

by and between

Absolute Software Corporation, Purchaser

and

Phoenix Technologies Ltd., Seller

Dated as of April 7, 2010

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE 1. THE TRANSACTION
	 	 	1	 
	 
	 	 	 	 
	1.1 Purchased Assets
	 	 	1	 
	1.2 Excluded Assets
	 	 	2	 
	1.3 Assumed Liabilities
	 	 	2	 
	1.4 Excluded Liabilities
	 	 	3	 
	 
	 	 	 	 
	ARTICLE 2. CONSIDERATION FOR TRANSFER
	 	 	4	 
	 
	 	 	 	 
	2.1 Purchase Price
	 	 	4	 
	 
	 	 	 	 
	ARTICLE 3. CLOSING AND CLOSING DELIVERIES
	 	 	5	 
	 
	 	 	 	 
	3.1 Closing; Time and Place
	 	 	5	 
	3.2 Deliveries by Seller
	 	 	5	 
	3.3 Deliveries by Purchaser
	 	 	6	 
	3.4 Delivery by Purchaser and Seller
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 4. REPRESENTATIONS AND WARRANTIES OF SELLER
	 	 	6	 
	 
	 	 	 	 
	4.1 Organization, Good Standing, Qualification
	 	 	6	 
	4.2 Authority; Binding Nature of Agreements; Required Consents
	 	 	7	 
	4.3 Absence of Conflicts
	 	 	7	 
	4.4 Subsidiaries
	 	 	8	 
	4.5 Absence of Undisclosed Liabilities
	 	 	8	 
	4.6 Absence of Changes
	 	 	8	 
	4.7 Restrictions on Business Activities
	 	 	10	 
	4.8 Material Contracts
	 	 	10	 
	4.9 Title; Sufficiency
	 	 	11	 
	4.10 Intellectual Property
	 	 	11	 
	4.11 Governmental Approvals
	 	 	17	 
	4.12 Product Warranties; Defects; Liabilities; Services
	 	 	17	 
	4.13 Compliance with Laws
	 	 	18	 
	4.14 Proceedings and Orders
	 	 	18	 
	4.15 Taxes
	 	 	18	 
	4.16 Brokers
	 	 	19	 
	4.17 Solvency
	 	 	19	 
	4.18 No Other Agreement
	 	 	19	 
	4.19 Foreign Corrupt Practices Act
	 	 	20	 
	4.20 Export Controls
	 	 	20	 
	4.21 WARN Act
	 	 	20	 
	4.22 Material Misstatements or Omissions
	 	 	20	 
	 
	 	 	 	 
	ARTICLE 5. REPRESENTATIONS AND WARRANTIES OF PURCHASER
	 	 	20	 
	 
	 	 	 	 
	5.1 Organization and Good Standing
	 	 	20	 
	5.2 Authority; Binding Nature of Agreements
	 	 	20	 
	5.3 No Conflicts; Required Consents
	 	 	21	 
	5.4 Brokers
	 	 	21	 
	5.5 Financing
	 	 	21	 
	5.6 Independent Investigation
	 	 	21	 
	 
	 	 	 	 
	ARTICLE 6. POST-CLOSING COVENANTS
	 	 	22	 
	 
	 	 	 	 
	6.1 Transferred Intellectual Property
	 	 	22	 
	6.2 Cooperation
	 	 	22	 

i 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	6.3 Return of Purchased Assets
	 	 	22	 
	6.4 Records and Documents
	 	 	23	 
	6.5 Trademarks and Domain Names
	 	 	23	 
	6.6 Bulk Sales Laws
	 	 	23	 
	6.7 Non-Competition
	 	 	23	 
	6.8 Nondisclosure
	 	 	26	 
	6.9 No Contest of Validity
	 	 	27	 
	6.10 Intentionally Omitted
	 	 	27	 
	6.11 Notices of Termination and Licenses for Seller Contracts
	 	 	27	 
	6.12 Employee Benefit Plans
	 	 	28	 
	6.13 Software Licenses
	 	 	28	 
	6.14 Software Code License to Seller
	 	 	29	 
	 
	 	 	 	 
	ARTICLE 7. CONDITIONS TO CLOSING
	 	 	29	 
	 
	 	 	 	 
	7.1 Conditions to Purchaser’s Obligation to Close
	 	 	29	 
	7.2 Conditions to Seller’s Obligation to Close
	 	 	30	 
	 
	 	 	 	 
	ARTICLE 8. INDEMNIFICATION
	 	 	30	 
	 
	 	 	 	 
	8.1 Survival of Representations and Warranties
	 	 	30	 
	8.2 Indemnification
	 	 	30	 
	8.3 Exclusive Remedy
	 	 	31	 
	8.4 Procedure for Indemnification
	 	 	31	 
	8.5 Purchase Price Adjustment
	 	 	34	 
	8.6 Limitations on Indemnification
	 	 	34	 
	 
	 	 	 	 
	ARTICLE 9. TAX MATTERS
	 	 	34	 
	 
	 	 	 	 
	ARTICLE 10. MISCELLANEOUS PROVISIONS
	 	 	36	 
	 
	 	 	 	 
	10.1 Expenses
	 	 	36	 
	10.2 Interpretation
	 	 	37	 
	10.3 Further Assurances
	 	 	37	 
	10.4 Entire Agreement
	 	 	37	 
	10.5 Amendment, Waivers and Consents
	 	 	37	 
	10.6 Successors and Assigns
	 	 	37	 
	10.7 Specific Performance
	 	 	37	 
	10.8 Governing Law
	 	 	37	 
	10.9 Jurisdiction; Waiver of Jury Trial
	 	 	38	 
	10.10 Rules of Construction
	 	 	38	 
	10.11 Severability
	 	 	38	 
	10.12 Exhibits
	 	 	38	 
	10.13 Notices
	 	 	38	 
	10.14 Rights of Parties
	 	 	39	 
	10.15 Counterparts
	 	 	39	 
	10.16 Public Announcements
	 	 	39	 
	10.17 Purchaser Liability
	 	 	40	 

ii 

 

EXHIBITS AND SCHEDULES

Exhibits

	 	 	 

	Exhibit A

	 	Certain Definitions
	Exhibit B

	 	Licensed Code Under Section 6.13
	Exhibit C

	 	Licensed Code Under Section 6.14
	Exhibit 3.2(a)

	 	General Assignment and Bill of Sale
	Exhibit 3.2(b)

	 	Support Services Agreement
	Exhibit 3.2(c)

	 	Assignment and Assumption Agreement
	Exhibit 3.2(d)

	 	Patent Assignment
	Exhibit 3.2(h)

	 	Patent License
	Exhibit 3.2(i)

	 	CSS and Tools License
	Exhibit 3.2(k)

	 	Government Contract License

iii

 

 

ASSET PURCHASE AGREEMENT

     THIS ASSET PURCHASE AGREEMENT (the “Agreement”) is made and entered into this
7th day of April, 2010, by and between Absolute Software Corporation, a British Columbia
corporation (“Purchaser”), and Phoenix Technologies Ltd., a Delaware corporation
(“Seller”). Certain capitalized terms used in this Agreement are defined on Exhibit
A hereto.

RECITALS

     WHEREAS, Seller is engaged in the business of producing, developing, licensing and selling the
current FailSafeTM and Phoenix FreezeTM products and services (“Seller Products and
Services”), developer’s tools and related documentation (the “Business”);

     WHEREAS, Purchaser desires to purchase from Seller and Seller desires to sell to Purchaser
certain of the assets, properties and rights of, the Business, and Purchaser is willing to assume
certain liabilities and obligations associated with such assets on the terms and conditions set
forth herein; and

     NOW, THEREFORE, in consideration of the foregoing recitals and the mutual representations,
warranties, covenants and promises contained herein, the adequacy and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

AGREEMENT

ARTICLE 1. THE TRANSACTION

     1.1 Purchased Assets. Subject to the terms and conditions of this Agreement, at the Closing,
Seller shall and shall cause any Subsidiaries of Seller to sell, transfer, convey, assign and
deliver to Purchaser (or an Affiliate of Purchaser designated by Purchaser (the “Purchaser
Affiliate”)), and Purchaser (or the Purchaser Affiliate) shall purchase from Seller, free and
clear of all Encumbrances, all of Seller’s right, title and interest in the following properties
and assets and rights of any kind, whether tangible or intangible, real or personal, wherever
located, whether or not carried on the books of Seller, other than the Excluded Assets
(collectively, the “Purchased Assets”):

          (a) Transferred Intellectual Property. All Intellectual Property that is primarily
used in or necessary to exploit the Seller Products and Services as currently exploited by Seller,
including without limitation, the Intellectual Property listed on Schedule 1.1(a)
(collectively, the “Transferred Intellectual Property”);

          (b) Books and Records. Copies of documentation and specifications on whatever
existing medium (including paper and electronic media), including any Tax Returns and other
documents relating to Taxes and documentation thereof, to the extent primarily related to the
Purchased Assets and Assumed Liabilities, and originals of Patent Documentation for the Purchased
Assets (the “Books and Records”); and

1

 

          (c) Tax Refunds and Credits. All refunds, credits and claims for refunds or credits
relating to Property Taxes paid with respect to the Purchased Assets and allocable to any
Post-Closing Period.

     1.2 Excluded Assets. Notwithstanding Section 1.1, the following assets of Seller (the
“Excluded Assets”) shall not be included in the Purchased Assets:

          (a) Cash. Cash, cash equivalents and marketable securities;

          (b) Certain Debt. Any intercompany or intra-company receivable cash balances between
Seller and any of its Affiliates or between any of its Affiliates;

          (c) Corporate Documents. Corporate seals, certificates of incorporation, minute
books, stock transfer records, or other records related to the corporate organization of Seller;

          (d) Employee Benefit Plans. All Employee Benefit Plans;

          (e) Records. All personnel records and other records that Seller is required by law
to retain in its possession;

          (f) Taxes. All refunds, credits and rights to refunds or credits of (i) Property
Taxes in respect of the Purchased Assets allocable to any Pre-Closing Period and (ii) income Taxes
of Seller;

          (g) Real Property. Any interest in real property or leases, subleases or licenses for
the occupancy of real property;

          (h) Receivables. All accounts and notes receivable (whether current or noncurrent),
refunds, deposits, prepayments or prepaid expenses (including without limitation any prepaid
insurance premiums) of the Business (“Receivables”);

          (i) Rights Under Certain Agreements. All rights of Seller under any Transaction
Agreement; and

          (j) Excluded Intellectual Property. All Intellectual Property that is both licensed
to Purchaser and listed on Schedule 1.2(j).

     1.3 Assumed Liabilities. Subject to the terms and conditions of this Agreement, at the
Closing, Seller shall assign, and Purchaser (or the Purchaser Affiliate) shall assume only the
Assumed Liabilities. Thereafter, Purchaser (or the Purchaser Affiliate) shall pay and discharge
all such Assumed Liabilities as and when such Assumed Liabilities become due and owing. For the
purposes of this Agreement, the “Assumed Liabilities” shall mean any Liability incurred or
accruing after the Closing Date attributable exclusively to the operation or use after the Closing
Date of any Purchased Asset by Purchaser.

2

 

     1.4 Excluded Liabilities. Except for the Assumed Liabilities, Purchaser (and the Purchaser
Affiliate) shall not assume and shall not be liable or responsible for any Liability of Seller, any
direct or indirect Subsidiary of Seller or any other Affiliate of Seller (collectively, the
“Excluded Liabilities”). Without limiting the foregoing, Purchaser (and the Purchaser
Affiliate) shall not be obligated to assume, and does not assume, and hereby disclaims any of the
following Liabilities of Seller, its Subsidiaries or its Affiliates:

          (a) Any Liability attributable to any assets, properties or Contracts not included in the
Purchased Assets;

          (b) Any Liability attributable to any Contract of Seller, including any product warranties or
guarantees;

          (c) Any Liability for accounts payable of Seller;

          (d) Except as otherwise specifically provided in Section 9, any Liability for Taxes
attributable to or imposed upon Seller or any of its Affiliates (including any Liability of Seller
for the Taxes of any Person under Treas. Regs. Section 1.1502-6 (or any similar provision of state,
local or foreign Law), as a transferee or successor, by Contract, or otherwise), or attributable to
or imposed upon the Business or the Purchased Assets for any Pre-Closing Period;

          (e) Any Liability for or with respect to any loan, or other indebtedness for borrowed money,
including any such Liabilities owed to Affiliates of Seller;

          (f) Any Liability arising from accidents, occurrences, misconduct, negligence, breach of
fiduciary duty or statements made or omitted to be made (including libelous or defamatory
statements) on or prior to the Closing Date, whether or not covered by workers’ compensation or
other forms of insurance;

          (g) Any Liability arising as a result of any legal or equitable action or judicial or
administrative proceeding initiated at any time, to the extent attributable to any action or
omission on or prior to the Closing Date, including any Liability for (i) infringement or
misappropriation of any Intellectual Property or any other rights of any Person (including any
right of privacy or publicity) prior to the Closing Date; (ii) breach of product warranties (which
shall not include repairs, fixes or replacements in the ordinary course of business) prior to the
Closing Date; (iii) injury, death, property damage or other losses arising with respect to or
caused by Seller Products or the manufacturer or design thereof prior to the Closing Date; or (iv)
violations of any Legal Requirements (including federal and state securities laws);

          (h) Any Liability of Seller or any ERISA Affiliate attributable to any current or former
Employee or other service provider of Seller or any ERISA Affiliate, including, without limitation,
any Liability arising under applicable law;

          (i) Any Liability of Seller or any ERISA Affiliate, arising out of any Employee Benefit Plan,
including, without limitation, any Liability with respect to any Seller’s

3

 

or any ERISA Affiliate’s withdrawal or partial withdrawal from or termination of any Employee
Plan;

          (j) Any Liability under any Contract with an Employee or Consultant of Seller;

          (k) Any Liability for making payments of any kind to Employees (including as a result of the
Transaction, the termination of an employee by Seller, wages, stock options, accrued vacation or
sick pay, or other claims arising out of the terms of employment with Seller), or with respect to
payroll taxes;

          (l) Except as otherwise set forth in this Agreement, any Liability (i) incurred in connection
with the making or performance of this Agreement and the Transaction or (ii) related to or arising
from the acquisition of the Purchased Assets by Purchaser;

          (m) Any costs or expenses incurred in connection with shutting down, de-installing and
removing equipment not purchased by Purchaser and any costs or expenses associated with any
Contracts not assumed by Purchaser hereunder;

          (n) Except as otherwise set forth in this Agreement, any Liability for expenses and fees
incurred by Seller incidental to the preparation of the Transaction Agreements, preparation or
delivery of materials or information requested by Purchaser, and the consummation of the
Transaction, including all broker, counsel and accounting fees;

          (o) Any Legal Requirement applicable to Seller, the Purchased Assets or the Assumed
Liabilities on or prior to the Closing Date, or any Liability of Seller for a violation of such a
Legal Requirement that occurred on or prior to the Closing;

          (p) Any Liability to any stockholder of Seller;

          (q) Any other Liability arising out of the operation of the Business or the ownership of the
Purchased Assets prior to the Closing other than the Assumed Liabilities; and

          (r) Any Liability of Seller or any Subsidiary of Seller other than the Assumed Liabilities.

ARTICLE 2. CONSIDERATION FOR TRANSFER

     2.1 Purchase Price. Subject to the terms and conditions of this Agreement, as full
consideration for the sale, assignment, transfer and delivery of the Purchased Assets and the
execution and delivery of the Transaction Agreements by Seller to Purchaser, Purchaser shall
deliver to Seller, Six Million Eight Hundred and Seventy-Five Thousand U.S. Dollars ($6,875,000) in
cash, (the “Purchase Price”), payable by wire transfer of immediately available U.S. funds
and an executed Assignment and Assumption Agreement.

4

 

ARTICLE 3. CLOSING AND CLOSING DELIVERIES

     3.1 Closing; Time and Place. The closing of the purchase and sale provided for in this
Agreement (the “Closing”) shall occur at the offices of Latham & Watkins located at 355
South Grand Avenue, Los Angeles CA 90071, on the date hereof or at such other date, time or place
as the parties may agree (the “Closing Date”).

     3.2 Deliveries by Seller. At the Closing, Seller shall (i) subject to the terms and
conditions of this Agreement, take all steps necessary to permit Purchaser or a Purchaser Affiliate
to take actual possession and control of the Purchased Assets and (ii) deliver the following items,
duly executed by Seller as applicable, all of which shall be in a form and substance reasonably
acceptable to Purchaser and Purchaser’s counsel:

          (a) General Assignment and Bill of Sale. General Assignment and Bill of Sale covering
all of the applicable Purchased Assets, substantially in the form attached hereto as Exhibit
3.2(a) (the “General Assignment and Bill of Sale”);

          (b) Support Services Agreement. Support Services Agreement under which Seller will
provide Purchaser with support and engineering services from time to time in the form attached
hereto as Exhibit 3.2(b) (the “Support Services Agreement”).

          (c) Assignment and Assumption Agreement. Assignment and Assumption Agreement covering
all of the Assumed Liabilities substantially in the form attached hereto as Exhibit 3.2(c)
(the “Assignment and Assumption Agreement”);

          (d) Intellectual Property Assignment and Recordation. A patent assignment (the
“Patent Assignment”) substantially in the form of Exhibit 3.2(d) hereto, for all of
such Patents that are Transferred Intellectual Property and such other documentation required to
assign and transfer title to such Patents and record such transfer and assignment;

          (e) Other Conveyance Instruments. Such other specific instruments of sale, transfer,
conveyance and assignment as Purchaser may reasonably request to permit Purchaser to take actual
possession and operating control of the Purchased Assets;

          (f) Seller Products and Services. The Seller Products and Services in good and
marketable condition that is substantially equivalent to the manner as they are being operated in
the Business on the date of this Agreement, including all related Source Code and Source Code
history, Object Code, build instructions and test plans;

          (g) Books and Records. The Books and Records, including originals of Patent
Documentation for the Purchased Assets;

          (h) Patent License. A license providing Purchaser with certain rights to the Patents
owned by Seller and set forth in Schedule 3.2(h), and providing Seller with certain rights
to the Patents transferred to Purchaser and set forth in Schedule 1.1(a) in the form
attached hereto as Exhibit 3.2(h) (the “Patent License”);

5

 

          (i) CSS and Tools License. A license providing Purchaser with certain rights to CSS
Source Code owned by Seller in the form attached hereto as Exhibit 3.2(i) (the “CSS and
Tools License”);

          (j) FIRPTA Certificate. A certification in the form prescribed by Treas. Regs.
Section 1.1445-2(b)(2) from Seller (and from each other seller, if any, of any of the Purchased
Assets) stating, under penalties of perjury, such Person’s taxpayer identification number and that
such Person is not a foreign person; and

          (k) Government Contract License. A license providing Seller with certain rights to
Seller Products and Services to fulfill Seller’s obligations under the Government Contracts in the
form attached hereto as Exhibit 3.2(k) (the “Government Contract License”).

     3.3 Deliveries by Purchaser. At the Closing, Purchaser shall deliver the following items,
duly executed by Purchaser as applicable, all of which shall be in a form and substance reasonably
acceptable to Seller and Seller’s counsel:

          (a) Wire Transfers. A wire transfer of immediately available funds to Wells Fargo for
credit to Seller’s account in the amount of the Purchase Price.

     3.4 Delivery by Purchaser and Seller. At the Closing, Purchaser and Seller shall deliver the
following items, duly executed by the appropriate parties, all of which shall be in a form and
substance reasonably acceptable to the non-delivering party and its counsel:

          (a) Other Documentation. Such other certificates, instruments or documents required
pursuant to the provisions of this Agreement or otherwise necessary to transfer the Purchased
Assets and Assumed Liabilities in accordance with the terms hereof and consummate the Transaction,
including such certificates, instruments and documents to be executed or delivered by Seller
pursuant to Article 3 hereof.

ARTICLE 4. REPRESENTATIONS AND WARRANTIES OF SELLER

     Except as set forth on Schedule 4 (the “Seller Disclosure Schedule”) attached
to this Agreement (the parts of which are numbered to correspond to the individual Section numbers
of this Article 4 and as to which Purchaser acknowledges and agrees that any matter
disclosed pursuant to a Section of the Seller Disclosure Schedule shall be deemed disclosed for all
other purposes of the Seller Disclosure Schedule as and to the extent the content or context of
such disclosure makes it reasonably apparent, if read in the context of such other Section of the
Seller Disclosure Schedule, that such disclosure is applicable to such other Section of the Seller
Disclosure Schedule), Seller hereby represents and warrants as of the date hereof to Purchaser as
follows:

     4.1 Organization, Good Standing, Qualification.

          (a) Seller is an entity duly organized, validly existing and in good standing under the Legal
Requirements of the State of Delaware with all requisite power and authority to own, lease and
operate its properties and to carry on its business as now being conducted. Seller

6

 

is duly qualified or licensed to do business and is in good standing as a foreign corporation
in each jurisdiction in which the conduct or nature of the Business, the operation of the Purchased
Assets makes such qualification necessary, other than in such jurisdictions where the failure to be
so qualified or licensed or to be in good standing would not reasonably be expected to have a
Material Adverse Effect on the Purchased Assets.

          (b) Schedule 4.1(b) lists every state or foreign jurisdiction in which Seller has
facilities, maintains an office or has an Employee, to the extent necessary for the operation of
the Business. With respect to the Purchased Assets, neither Seller nor any of its predecessors has
conducted any business under, or otherwise used for any purpose in any jurisdiction, any fictitious
name, assumed name, trade name or other name, except as set forth on Schedule 4.1(b).

     4.2 Authority; Binding Nature of Agreements; Required Consents.

          (a) Seller has all requisite power and authority to execute and deliver this Agreement and all
other Transaction Agreements to which it is a party and to carry out the provisions of this
Agreement and the other Transaction Agreements. The execution, delivery and performance by Seller
of this Agreement and the other Transaction Agreements have been approved by all requisite action
on the part of Seller. The approval of the stockholders of Seller is not required for Seller to
enter into this Agreement or consummate the Transaction or any part thereof. This Agreement has
been duly and validly executed and delivered by Seller. Each of this Agreement and the other
Transaction Agreements constitutes, or upon execution and delivery, will constitute, the legal,
valid and binding obligation of Seller, enforceable against Seller in accordance with its terms,
except as may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar
laws and equitable principles related to or limiting creditors’ rights generally and by general
principles of equity.

          (b) Schedule 4.2(b) contains a complete and accurate list of all consents, waivers,
approvals, orders and authorizations of, and registrations, declarations or filings with, and
notices to any Governmental Authority required by, or with respect to, Seller in connection with
the execution and delivery of this Agreement or any other Transaction Agreement or the consummation
of the Transaction or any part thereof (each, a “Governmental Consent”), other than such
consents, waivers, approvals, orders, authorizations, registrations, declarations, filings or
notices, the failure of which to have or make would not reasonably be expected to have a Material
Adverse Effect on Purchaser’s ability to own and operate the Purchased Assets as presently owned
and operated by Seller.

          (c) Schedule 4.2(c) contains a complete and accurate list of all consents and waivers
required from a third party in order to assign or transfer the Purchased Assets pursuant to this
Agreement (“Assignment Consents”).

     4.3 Absence of Conflicts. The execution, delivery and performance of this Agreement or any
other Transaction Agreement by Seller do not and will not (with or without notice or lapse of
time):

          (a) conflict with, violate or result in any breach of (i) any of the provisions of

7

 

any Seller’s or any Subsidiary of Seller’s Certificate of Incorporation or bylaws; (ii) any
resolutions of the stockholders, board, or any committee thereof; (iii) any of the terms or
requirements of any Governmental Approval held by Seller or any Subsidiary of Seller that relates
to any of the Purchased Assets or Assumed Liabilities; or (iv) any provision of a Contract to which
Seller (and if applicable, any Affiliate of Seller) is a party;

          (b) give any Governmental Authority or other Person the right to (i) challenge the
Transaction; (ii) exercise any remedy or obtain any relief under any Legal Requirement or any Order
to which any of the Purchased Assets or Assumed Liabilities, is subject; or (iii) revoke, suspend
or modify any Governmental Approval necessary for the transfer of the Purchased Assets;

          (c) result in the imposition or creation of any Encumbrance upon or with respect to any of the
Purchased Assets; or

          (d) require Seller to obtain any Consent or make or deliver any material filing or notice with
or to a Governmental Authority necessary for the transfer of the Purchased Assets.

     4.4 Subsidiaries. Other than as set forth on Schedule 4.4, Seller does not own,
directly or indirectly, any capital stock of or any other equity interest in, or control, directly
or indirectly, any other Person (other than Employees), and Seller is not or has not been, directly
or indirectly, a party to, member of or participant in any partnership, limited liability company,
joint venture or similar business entity, in each of the foregoing cases, which (i) is or has owned
any of the Purchased Assets or (ii) is or has been involved in the Business in any material
respect.

     4.5 Absence of Undisclosed Liabilities.

          (a) Neither Seller nor any Subsidiary of Seller has any Liabilities of any kind that will be
transferred to Purchaser upon transfer of the Purchased Assets to Purchaser (or the Purchaser
Affiliate);

          (b) Neither Seller nor any Subsidiary of Seller has, at any time, (i) made a general
assignment for the benefit of creditors, (ii) filed, or had filed against it, any bankruptcy
petition or similar filing, (iii) suffered the attachment or other judicial seizure of all or a
substantial portion of its assets, or (iv) admitted in writing its inability to pay its debts as
they become due, or (v) been convicted of, or pleaded guilty or no contest to, any felony.

          (c) Neither Seller nor any Subsidiary of Seller is, or has been, a party to any agreement
whereby it has guaranteed or otherwise agreed to cause, insure or become liable for, or pledged any
of the Purchased Assets to secure, the performance or payment of, any material obligation or other
material liability of any Person.

     4.6 Absence of Changes. Since December 31, 2009 and through the date hereof, (i) Seller and
the Subsidiaries of Seller have conducted the Business in the ordinary course of business; (ii) no
event or circumstance has occurred that would reasonably be expected to have a

8

 

Material Adverse Effect on the Purchased Assets; and (iii) except as set forth in Schedule
4.6, there has not been any:

          (a) transaction by Seller or any Subsidiary of Seller (with respect to the Purchased Assets),
except in the ordinary course of business and consistent with past practices;

          (b) capital expenditure or capital commitment by Seller or any Subsidiary of Seller (with
respect to the Purchased Assets) in any amount in excess of $[***] in any individual case or $[***]
in the aggregate;

          (c) destruction of, material damage to or material loss of any Purchased Assets (whether or
not covered by insurance);

          (d) material revaluation by Seller or any of its Subsidiaries of any of the Purchased Assets,
including the writing down of the value of inventory or writing off of notes or accounts
receivable;

          (e) sale, lease, license or other disposition of any of the Purchased Assets, or creation of
any Encumbrance on the Purchased Assets, except in the ordinary course of business and consistent
with past practices;

          (f) waiver or release of any material right or claim of Seller or any Subsidiary of Seller
primarily related to the Purchased Assets, except in the ordinary course of business and consistent
with past practices;

          (g) to Seller’s Knowledge, commencement, or written notice or threat of commencement, of any
lawsuit or proceeding against, or investigation of Seller or any Subsidiary of Seller, related to
the Purchased Assets or commencement or settlement of any litigation by Seller related to the
Purchased Assets;

          (h) transfer or sale by Seller or any Subsidiary of Seller of any rights to any material
Purchased Assets or the entering into of any license agreement (other than non-exclusive end-user
license agreements entered into by Seller in the ordinary course of business consistent with past
practices that do not include any rights with respect to Source Code), distribution agreement,
reseller agreement, security agreement, assignment or other conveyance or option for any of the
foregoing;

          (i) agreement, or modification to any agreement, pursuant to which any Person was granted
marketing, distribution, development, manufacturing or similar rights of any type or scope with
respect to the Purchased Assets, except in the ordinary course of business;

          (j) to Seller’s Knowledge, agreement by Seller, any Subsidiary of Seller or any officer or
employees thereof, to do any of the things described in the preceding clauses (a) through (j)
(other than negotiations with Purchaser and its Representatives regarding the Transaction).

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

9

 

     4.7 Restrictions on Business Activities. Except as set forth on Schedule 4.7, there
is no Contract or judgment, injunction, order or decree to which Seller or any Subsidiary of Seller
is a party or specifically subject, that has the effect of prohibiting or impairing or otherwise
limiting the freedom of Purchaser to own the Purchased Assets after the Closing.

     4.8 Material Contracts.

          (a) Schedule 4.8(a) sets forth as of the date hereof an accurate, correct and complete
list of all Contracts to which any of the descriptions set forth below apply (the “Material
Contracts”):

               (i) Any joint venture, partnership, cooperative arrangement or any other Contract involving a
sharing of profits primarily relating to any of the Purchased Assets;

               (ii) Any Contract with any Governmental Authority that directly applies to any of the
Purchased Assets;

               (iii) Any Contract relating to any license or royalty arrangement that directly applies to the
Purchased Assets;

               (iv) Any power of attorney, proxy or similar instrument that applies directly to the Purchased
Assets;

               (v) Any Contract for the manufacture, service or maintenance of any Seller Products and
Services not scheduled pursuant to Schedule 4.10(e);

               (vi) Any Contract containing covenants not to compete in any line of business or with any
Person in any geographical area primarily relating to any of the Purchased Assets or which would be
binding on Purchaser after the Closing;

               (vii) Any other Contract primarily relating to the Purchased Assets (including current
Contracts with customers of the Business), which (i) provides for payment, performance of services
or delivery of goods or materials by either party thereto having an aggregate value of [***] or
more; (ii) is not terminable without payment or penalty on thirty (30) days (or less) notice; or
(iii) is between, inter alia, an Affiliate and Seller; and

               (viii) Any other Contract primarily relating to the Transferred Intellectual Property not
scheduled pursuant to Schedule 4.10(e);

          (b) Seller has provided to Purchaser accurate, correct and complete copies of all Material
Contracts, including all material amendments, supplements, modifications and waivers thereof.

          (c) Each Material Contract is currently valid and in full force and effect, and to Seller’s
Knowledge, is enforceable by Seller or any Subsidiary of Seller, as the case may be, in accordance
with its terms, except as may be limited by bankruptcy, insolvency,

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

10

 

reorganization, moratorium and other similar laws and equitable principles related to or
limiting creditors’ rights generally and by general principles of equity.

          (d) Neither Seller nor any Subsidiary of Seller has waived any material rights under any
Material Contract.

          (e) To the Knowledge of Seller, the performance of the Material Contracts will not result in
any violation of, or failure by Seller or any Subsidiary of Seller to comply, in any material
respect, with any Legal Requirement that will have a Material Adverse Effect on the Purchased
Assets.

          (f) Except as set forth in Schedule 4.8(f), all Contracts with any customer or any
party to which Seller or any Subsidiary of Seller provides products or services related to the
Purchased Assets are terminable by Seller within no more than 180 days prior notice without any
penalty or adverse consequences.

     4.9 Title; Sufficiency.

          (a) Seller has good and valid title to and has the right to sell, assign and deliver the
Purchased Assets to Purchaser. The Purchased Assets are free and clear of all Encumbrances of any
kind or nature.

          (b) The Purchased Assets include all of the Intellectual Property owned by Seller that is
primarily used in or necessary to exploit the Seller Products and Services as currently exploited
by Seller, other than the Excluded Assets.

     4.10 Intellectual Property.

          (a) Schedule 1.1(a) lists all Transferred Intellectual Property with respect to the
Business. The Seller Products and Services are all of the products and services that are currently
licensed, sold, published, offered, or under development by Seller in connection with the Business.
With respect to each United States Patent set forth on Schedules 1.1(a) and 3.2(h), the
corresponding foreign counterpart Patents to such United States Patent are accurately set forth.
There are no Patents filed by Seller or any Subsidiary related to any Anti-Theft Products and
Services or Proximity-based Anti-Theft Products and Services which are unpublished patent
applications and are not set forth on Schedules 1.1(a) and 3.2(h).

          (b) Seller has no Knowledge of any prior art references or prior public uses, sales, offers
for sale or disclosures which could reasonably be expected to invalidate any Transferred
Intellectual Property, or any claim thereof, or of any conduct the result of which could reasonably
be expected to render any Transferred Intellectual Property or any claim thereof invalid or
unenforceable. To the Knowledge of Seller, the original, first and joint inventors of the subject
matter claimed in the patents and patent applications included in the Transferred Intellectual
Property are properly represented in such patents and patent applications. Neither Seller nor any
of its Subsidiaries have knowingly misrepresented, or knowingly failed to disclose, any facts or
circumstances in any application for any Seller Registered Intellectual

11

 

Property that would constitute fraud or a misrepresentation with respect to such application
or that would otherwise affect the enforceability of any Seller Registered Intellectual Property.
The Transferred Patents are assignable to Purchaser at the Closing.

          (c) To the Seller’s Knowledge, all Seller Registered Intellectual Property is valid,
subsisting, in full force and effect (except with respect to applications), and has not expired or
been cancelled or abandoned. All necessary registration, maintenance and renewal fees have been
paid, and all necessary documents and certificates in connection with such Seller Registered
Intellectual Property have been filed with the relevant patent, copyright, trademark or other
equivalent authorities in the United States or foreign jurisdictions, as the case may be, for the
purposes of perfecting, prosecuting and maintaining such Seller Registered Intellectual Property.
There are no actions that must be taken by Purchaser or by Seller or their respective Subsidiaries
within one hundred and eighty (180) days of the Closing Date, including, with respect to each item
of Seller Registered Intellectual Property and the Transferred Patents, the payment of any
registration, maintenance or renewal fees or the filing of any documents, applications or
certificates for the purposes of maintaining, perfecting or preserving or renewing any such
Intellectual Property.

          (d) Seller is the sole and exclusive beneficial and record owner of all Transferred
Intellectual Property and Licensed Intellectual Property free and clear of any Encumbrances,
including all works of authorship and all associated copyrights that are used or embodied in, such
Intellectual Property, and except under an Out-License (as defined below), no other Person has any
other rights thereto. Seller has the requisite power and authority to grant to Purchaser the
licenses to the Licensed Intellectual Property that are expressly set forth in this Agreement;
provided, however, that without limiting other provisions of this Agreement, this sentence is not
intended to be and shall not be construed as any form of covenant, representation or warranty as to
infringement of any third party’s Intellectual Property by the Licensed Intellectual Property. To
the Knowledge of Seller, Seller is not obligated to provide any consideration (whether financial or
otherwise) to any third party, nor is any third party otherwise entitled to any consideration, with
respect to any exercise of rights by Seller in Transferred Intellectual Property. The Transferred
Intellectual Property along with the Licensed Intellectual Property that is licensed to Purchaser
pursuant to this Transaction constitutes all the Intellectual Property owned by or licensed to
Seller that is primarily used in or necessary to conduct the Business as it is currently conducted,
other than non-exclusive licenses to commercially available off-the-shelf software entered into in
the ordinary course. Schedule 4.10(d) lists all Contracts pursuant to which a third party
has licensed Intellectual Property to Seller that are necessary to the Seller Products and
Services, other than non-exclusive licenses to commercially available off-the-shelf software
entered into in the ordinary course (“In-Licenses”).

          (e) Schedule 4.10(e) lists (i) all Contracts pursuant to which Seller has granted a
third party a license to or covenant not to sue with respect to any Transferred Intellectual
Property (other than non-exclusive licenses, granted to end user customers in the ordinary course
in connection with the sale or licensing of the Seller Products and Services, that do not
materially differ in substance from the Seller’s standard forms of end-user licenses (copies of
which have been provided to Purchaser)) and (ii) all Contracts pursuant to which a third party has
been granted any ownership rights (including any exclusive license rights) in any portion of
software

12

 

that is or has been incorporated in or bundled with the Seller Products and Services
(subsections (i) and (ii) of this Section 4.10(e), collectively, the
“Out-Licenses,” and together with the In-Licenses, the “IP Licenses”). Seller is
in material compliance with and has not materially breached, violated or defaulted under, or
received notice that it has materially breached, violated or defaulted under, any of the terms or
conditions of any IP License, nor does Seller have Knowledge of any event or occurrence that could
reasonably be expected to constitute such a material breach, violation or default (with or without
the lapse of time, giving of notice or both). To Seller’s Knowledge, each such IP License is in
full force and effect and Seller is not in material default thereunder, nor to the Knowledge of
Seller is any party obligated to Seller pursuant to any such agreement in material default
thereunder. Following the Closing Date, subject to receipt of any Assignment Consents, to Seller’s
Knowledge, Purchaser will be permitted to exercise all of Seller’s rights under such IP Licenses to
the same extent Seller would have been able to had the Transaction not occurred and without the
payment of any additional amounts or consideration other than fees, royalties or payments which
Seller would otherwise have been required to pay had the Transaction not occurred.

          (f) There is no pending nor has Seller received written notice of any threatened (and at no
time within the two (2) years prior to the date of this Agreement has there been pending any)
Proceeding before any court, government agency or arbitral tribunal in any jurisdiction challenging
the use, ownership, validity, enforceability or registerability of any Transferred Intellectual
Property or Licensed Intellectual Property. Seller is not a party to any settlements, covenants
not to sue, consents, decrees, stipulations, judgments or orders resulting from Proceedings which
permit third parties to use any Transferred Intellectual Property or Licensed Intellectual
Property.

          (g) To Seller’s Knowledge, Seller owns, or has valid rights to use all of the Intellectual
Property used or held for use in, or necessary to conduct the Business as currently conducted.

          (h) To Seller’s Knowledge, the Transferred Intellectual Property and Licensed Intellectual
Property do not infringe, dilute, misappropriate, or otherwise violate any Intellectual Property or
other proprietary right owned by any third party, or constitute unfair competition or trade
practices under the laws of any jurisdiction.

          (i) There is no pending nor has Seller received written notice of any threatened (and at no
time within the two (2) years prior to the date of this Agreement has there been pending or
threatened any) action, suit, claim or proceeding alleging that any of the Transferred Intellectual
Property or Licensed Intellectual Property infringes, dilutes, misappropriates, or otherwise
violates or constitutes the unauthorized use of, or will infringe, dilute, misappropriate, or
otherwise violate or constitute the unauthorized use of the Intellectual Property of any third
party (nor does the Seller have Knowledge of any basis therefor). Neither the Seller nor any of
its Subsidiaries is a party to any settlement, covenant not to sue, consent, decree, stipulation,
judgment, or order resulting from any Proceeding which (i) restricts the rights of the Seller or
any of its Subsidiaries to use any Transferred Intellectual Property, (ii) impairs the Transferred
Intellectual Property or Licensed Intellectual Property in order to accommodate a third party’s
Intellectual Property or (iii) requires any future payment by the Seller or any of its

13

 

Subsidiaries for use of the Transferred Intellectual Property. Seller has not received any
written communication from any third party offering to license to Seller any Intellectual Property
for use in the Business, other than as contained in advertisements to license generally
commercially available software. There are no Contracts between Seller or any of its Subsidiaries
and any third party with respect to the Transferred Intellectual Property or Licensed Intellectual
Property under which there is any material dispute regarding the scope of such Contract or
performance under such Contract, including with respect to any payments to be made or received by
Seller and its Subsidiaries thereunder.

          (j) To Seller’s Knowledge, no third party, Employee or former Employee is infringing,
diluting, misappropriating, or otherwise violating or engaged in the unauthorized use of any
Transferred Intellectual Property, and no actions, suits, claims or proceedings have been brought
against any third party by Seller alleging that a third party is infringing, diluting,
misappropriating, or otherwise violating or engaged in the unauthorized use of any Transferred
Intellectual Property.

          (k) Seller and each of its Subsidiaries has taken commercially reasonable steps to obtain,
maintain and protect the Transferred Intellectual Property, including requiring each current and
former employee who has made material contributions to the development of any Transferred
Intellectual Property to execute a legally enforceable and binding intellectual property rights
assignment and nondisclosure agreement (in each case, which agreement does not materially differ in
form or substance from Seller’s standard form which has been provided by Seller to Purchaser)
under which such employee has not retained and does not have any rights or licenses with respect to
the Transferred Intellectual Property. Other than under an appropriate confidentiality or
nondisclosure agreement or contractual provision relating to confidentiality and nondisclosure,
there has been no disclosure to any third party of material confidential information or Trade
Secrets of Seller that is used in the Transferred Intellectual Property. All consultants and
independent contractors who have made contributions to the development of any Transferred
Intellectual Property (including all consultants and independent contractors who have designed,
written, tested or worked on any software code contained in any Seller Products and Services) have
entered into a work-made-for-hire agreement or have otherwise assigned to Seller (or a third party
that previously conducted any business currently conducted by Seller and that has assigned its
rights in such Transferred Intellectual Property to Seller) all of their right, title and interest
(other than moral rights, if any) in and to the portions of such Transferred Intellectual Property
developed by them in the course of their work for Seller. Assignments to Seller of the patents,
patent applications, copyrights and copyright applications listed in Schedules 1.1(a) and
3.2(h) have been duly executed and filed with the United States Patent and Trademark Office or
Copyright Office, or any equivalent foreign authority, as applicable.

          (l) Except as set forth on Schedule 4.10(l), neither Seller nor any of its
Subsidiaries has granted nor is Seller or any of its Subsidiaries obligated to grant access or a
license to any of the Source Code of the portions of the Seller Products and Services included in
the Transferred Assets (including in any such case any conditional right to access or under which
Seller has established any escrow arrangement for the storage and conditional release of any of its
Source Code). The execution of this Agreement and the consummation of the transactions
contemplated by this Agreement will not result in a release of any of the Seller Products and

14

 

Services Source Code. The Source Code for all Seller Products and Services that include
software has been documented in a professional manner that is both: (i) consistent with customary
code annotation conventions and best practices in the software industry; and (ii) sufficient to
independently enable a programmer of reasonable skill and competence to understand, analyze, and
interpret program logic, correct errors and improve, enhance, modify and support the Seller
Products and Services.

          (m) Schedule 4.10(m) accurately identifies (i) each item of Open Source Software that
is contained in any of the Seller Products and Services or from which any part of any of the Seller
Products and Services are derived, (ii) the applicable license for each such item of Open Source
Software, (iii) the Seller Products and Services to which each such item of Open Source Software
relates, and (iv) a high level description of the manner in which such Open Source Software is
used. None of the Seller Products and Services are subject to the provisions of any Open Source
Software license or similar Contract which requires or conditions the use or distribution of such
Seller Products and Services on (A) any requirement to license such Seller Products and Services or
any portion thereof for the purpose of making modifications or derivative works, (B) any
requirement to distribute such Seller Products and Services or any portion thereof without charge,
(C) the disclosure, licensing or distribution of any Source Code of any Seller Products and
Services, or (D) except as specifically permitted by law, permitting any Person to decompile,
disassemble, or otherwise reverse-engineer any Seller Products and Services.

          (n) Neither Seller nor any of its Subsidiaries is a party to any Contract under which a third
party would have or would be entitled to receive a license or any other right to any Intellectual
Property of Purchaser or any Purchaser Affiliates as a result of the execution of this Agreement or
the consummation of the transactions contemplated by this Agreement nor would the consummation of
such transactions result in the amendment or alteration of any such license or other right which
exists on the date of this Agreement.

          (o) None of Seller’s professional services agreements with its customers, agreements with
merchants, agreements with outside consultants for the performance of professional services on the
behalf of Seller, the Subsidiaries or any of their respective customers, nor any agreement or
license with any end user or reseller of Seller Products and Services confers upon any Person other
than Seller any ownership right with respect to any Transferred Intellectual Property or Licensed
Intellectual Property developed in connection with such agreement or license.

          (p) Seller and its Subsidiaries have not (i) transferred ownership of any Transferred
Intellectual Property to any Person, except to Purchaser as part of this Transaction; or (ii)
granted any exclusive license with respect to any Transferred Intellectual Property or Licensed
Intellectual Property.

          (q) Seller has provided to Purchaser a complete and accurate list that, to the Knowledge of
Seller, lists all known bugs, defects, and errors in the current version of the Seller Products and
Services. The Seller Products and Services do not contain any bugs, defects errors

15

 

or problems that could have a Material Adverse Effect on the operation of such Seller Products
and Services.

          (r) To Seller’s Knowledge, Seller has not included in any of the Seller Products and Services
any undisclosed computer code designed to disrupt, disable or harm in any manner the operation of
any of the Seller Products and Services. To Seller’s Knowledge, all of the Seller Products and
Services are free of: (i) any defects that could have a Material Adverse Effect on the operation of
the Seller Products and Services, and (ii) any disabling codes or instructions and any “back door,”
“time bomb,” “Trojan horse,” “worm,” “drop dead device,” “virus” or other software routines or
hardware components that permit unauthorized access or the unauthorized disruption, impairment,
disablement or erasure of such Seller Products and Services or data or other software of users.

          (s) Neither Seller nor any of its Subsidiaries has received or requested an opinion letter
from counsel that any Transferred Intellectual Property infringes or misappropriates, or would
infringe or misappropriate, the Intellectual Property of any third party.

          (t) No person other than the Seller has ownership rights or license rights to an improvement
made by or for the Seller or any of its Subsidiaries in any Transferred Intellectual Property. All
Transferred Intellectual Property will be fully transferable, alienable or licensable by Purchaser
or the Seller without restriction and without payment of any kind to any third party.

          (u) The Seller and its Subsidiaries have not authorized joint ownership of any Transferred
Intellectual Property to any other Person.

          (v) Other than non-exclusive licenses and related agreements with respect thereto of the
Seller Products and Services to end-users pursuant to written agreements that have been entered
into in the ordinary course of business that do not materially differ in substance from the
Seller’s standard form(s) of end-user license including attachments (copies of which have been
provided to Purchaser), Schedule 4.10(v) lists all Contracts between the Seller or any of
its Subsidiaries, on the one hand, and any other person, on the other hand, with respect to the
Business, wherein or whereby the Seller or any of its Subsidiaries have agreed to, or assumed, any
obligation or duty to warrant, indemnify, reimburse, hold harmless, guaranty or otherwise assume or
incur any obligation or liability or provide a right of rescission with respect to the infringement
or misappropriation by the Seller or any of its Subsidiaries or such other person of the
Intellectual Property of any person other than the Seller or its Subsidiary.

          (w) The Seller and each of its Subsidiaries has complied with all applicable Legal
Requirements with respect to the Business relating to privacy, data protection, and the collection
and use of personally identifiable information, and the Seller and each of its Subsidiaries has
complied with its respective internal privacy policies and guidelines, if any, relating to privacy,
data protection, and the processing, sharing, collection, storage or use of personally identifiable
information in the operation of the Business. The Seller and each of its Subsidiaries takes
reasonable measures to ensure that such information is protected against unauthorized access, use,
modification, and other misuse. The execution, delivery and

16

 

performance of this Agreement comply with all applicable laws relating to privacy and the
privacy policies of the Seller and each of its Subsidiaries.

          (x) No government funding, facilities of a university, college, other educational institution
or research center was used in the development of any Transferred Intellectual Property or Licensed
Intellectual Property. No current or former employee, consultant or independent contractor of
Seller or any of its Subsidiaries, who was involved in, or who contributed to, the creation or
development of any Transferred Intellectual Property, has performed services for the government,
university, college, or other educational institution or research center during a period of time
during which such employee, consultant or independent contractor was also involved in, or
contributed to, the creation or development of any Transferred Intellectual Property.

          (y) Seller has not participated in any standards setting activities or joined any standards
setting organizations that would affect the proprietary nature of any Transferred Intellectual
Property, or restrict the ability of Seller to enforce, license, or exclude others from using the
Transferred Intellectual Property.

     4.11 Governmental Approvals.

          (a) Seller has all Governmental Approvals that are necessary in connection with Seller’s and
any Subsidiary of Seller’s ownership and use of its properties or assets in connection with the
Business (including the Purchased Assets) or Seller’s or any Subsidiary of Seller’s operation of
the Business. Schedule 4.11(a) contains an accurate, correct and complete list of each
Governmental Approval necessary for the use of the Purchased Assets. Each such Governmental
Approval is valid and in full force and effect, and there is not pending or, to the Knowledge of
Seller, threatened, any Proceeding which would result in the suspension, termination, revocation,
cancellation, limitation or impairment of any such Governmental Approval.

     4.12 Product Warranties; Defects; Liabilities; Services.

          (a) All forms of agreement pursuant to which Seller or any Subsidiary of Seller currently
sells or distributes Seller Products and Services have been provided to Purchaser. The product
warranty experience for the [***] ended January 31, 2010, and the interim period through the date
hereof is set forth in Schedule 4.12(a). No Seller Products and Services are subject to
any guaranty, warranty or other indemnity beyond the applicable terms and conditions of sale,
license or lease or beyond that implied or imposed by applicable Legal Requirements.

          (b) To Seller’s Knowledge, no Seller Product and Services sold or licensed, as the case may
be, by Seller or any Subsidiary of Seller prior to the Closing failed to conform to applicable
specifications in a manner that would give rise to a warranty claim by the purchaser or licensee
thereof against Purchaser.

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

17

 

          (c) Seller maintains no product warranty reserves on the Seller Financial Statements with
respect to the Seller Products and Services.

     4.13 Compliance with Laws. Since [***], Seller and each Subsidiary of Seller has operated the
Purchased Assets in compliance with each Legal Requirement that is applicable to the Purchased
Assets. Since [***], Seller and each Subsidiary of Seller has not received any written notice from
any third party regarding any actual, alleged or potential violation of any Legal Requirement by
Seller or any Subsidiary of Seller with respect to the Purchased Assets.

     4.14 Proceedings and Orders.

          (a) As of the date hereof, there is no Proceeding pending or, to the Knowledge of Seller,
threatened against or affecting Seller or any Subsidiary of Seller in connection with the Purchased
Assets, or Seller’s or a Subsidiary of Seller’s rights relating thereto. To the extent permitted
under applicable Legal Requirements or any Contract to which Seller is a party, (i) Seller has
provided to Purchaser true, accurate, correct and complete copies of all material pleadings,
correspondence and other documents relating to any such Proceeding, and (ii) Seller has provided to
Purchaser a reasonable description of any pleadings, correspondence and other documents relating to
such Proceeding which Seller is not permitted to provide to Purchaser.

          (b) None of the Purchased Assets nor Seller’s or any Subsidiary of Seller’s rights relating to
any of Purchased Assets, is subject to any Order or, to the Knowledge of Seller, any proposed
Order.

     4.15 Taxes.

          (a) Seller and each of its Subsidiaries and Affiliates have prepared and timely filed all
material Tax Returns relating to any and all Taxes concerning or attributable to Seller’s (or its
Subsidiaries’ or Affiliates’) ownership of the Purchased Assets and such Tax Returns are true,
complete and correct in all material respects and have been completed in
accordance with applicable laws. None of Seller, its Subsidiaries and Affiliates is currently the
beneficiary of any extension of time within which to file any Tax Return. To the Knowledge of
Seller, no claim has ever been made by a Governmental Authority in a jurisdiction in which Seller
or any of its Subsidiaries or Affiliates does not file Tax Returns that such entity is or may be
subject to taxation by that jurisdiction.

          (b) Seller and each of its Subsidiaries and Affiliates have paid all Taxes that each is
required to pay attributable to or imposed with respect to the ownership of the Purchased Assets.

          (c) There are (and immediately following the Closing there will be) no liens on any of the
Purchased Assets relating to or attributable to Taxes (other than liens for Taxes not yet due and
payable).

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

18

 

          (d) None of Seller, its Subsidiaries nor Affiliates has received written notice of any
pending or threatened audits, investigations, disputes, notices of deficiency, claims or other
actions for or relating to any Liability for Taxes of Seller or any of its Subsidiaries or
Affiliates. Neither Seller nor any of its Subsidiaries or Affiliates has waived any statute of
limitations in respect of Taxes or agreed to any extension of time with respect to a Tax assessment
or deficiency.

          (e) Neither Seller nor any of its Subsidiaries or Affiliates is a party to or bound by any Tax
indemnity agreement, Tax sharing agreement or similar Contract that would become binding upon the
Purchaser (or Purchaser Affiliate) upon completion of the Transaction. Neither Seller nor any of
its Subsidiaries or Affiliates is a party to any joint venture, partnership, or other arrangement
or Contract that would become binding upon the Purchaser (or Purchaser Affiliate) upon completion
of the Transaction that could be treated as a partnership or “disregarded entity” for United States
federal income Tax purposes. Neither Seller nor any of its Subsidiaries or Affiliates has been a
member of an affiliated group (other than a group the common parent of which was Seller) or has any
Liability for the Taxes of any Person under Treas. Regs. Section 1.1502-6 (or any similar provision
of state, local or foreign law), as a transferee or successor, by Contract or otherwise.

          (f) Seller has treated itself as owner of each of the Purchased Assets for Tax purposes. None
of the Purchased Assets is the subject of a “safe harbor lease” or is required to be treated as
owned by another Person pursuant to the provisions of former Section 168(f)(8) of the Internal
Revenue Code of 1954, as in effect prior to amendment by the Tax Equity and Fiscal Responsibility
Act of 1982. None of the Purchased Assets directly or indirectly secures any debt the interest on
which is tax exempt under Section 103(a) of the Code. None of the Purchased Assets is “tax exempt
use property” within the meaning of Section 168(h) of the Code or “tax-exempt bond financed
property” within the meaning of Section 168(g) of the Code.

          (g) Seller is a “United States person” within the meaning of Section 7701(a)(30) of the Code.

     4.16 Brokers. Except as set forth in Schedule 4.16, neither Seller nor any Subsidiary
of Seller has retained any broker or finder or incurred any liability or obligation for any
brokerage fees, commissions or finders fees with respect to this Agreement or the Transaction.

     4.17 Solvency. Seller is not entering into the Transaction with the intent to hinder, delay
or defraud any Person to which it is indebted. As of the date hereof, Seller’s assets, at a fair
valuation, exceed its liabilities, and Seller is able, and would reasonably be expected to continue
to be able immediately after the Closing of the Transaction, to meet its debts as they mature and
will not become insolvent as a result of the Transaction. Immediately after the Closing of the
Transaction, Seller will have sufficient capital and property remaining to conduct the business in
which it will thereafter be engaged.

     4.18 No Other Agreement. Other than for sales or licenses of assets in the ordinary course of
business, neither Seller nor any Subsidiary of Seller has entered into any Contract with respect to
the sale or other disposition of any of the Purchased Assets, except as set forth in this Agreement.

19

 

     4.19 Foreign Corrupt Practices Act. Neither Seller nor any Subsidiary of Seller (with respect
to the Purchased Assets), including any of its officers or directors, has taken any action which
would cause it to be in violation of the Foreign Corrupt Practices Act of 1977, as amended, or any
rules or regulations thereunder.

     4.20 Export Controls. Neither Seller nor any Subsidiary of Seller (with respect to the
Purchased Assets) has violated in any material respect any Legal Requirements relating to export
control and trade embargoes, including the anti-boycott prohibitions contained in 50 U.S.C. § 2401
et seq., or taken any action that can be penalized under Section 999 of the Code. During the last
five (5) years, Seller and any Subsidiary of Seller (with respect to the Purchased Assets) has not
been a party to, been a beneficiary under or has performed any service or sold any product under
any Contract under which a product has been sold to customers in Bahrain, Iran, Iraq, Jordan,
Kuwait, Lebanon, Libya, Oman, Qatar, Saudi Arabia, Sudan, Syria, United Arab Emirates or the
Republic of Yemen.

     4.21 WARN Act. Seller is not planning or contemplating, and has not made or taken, any
decisions or actions concerning the Purchased Assets that would require the service of notice under
the Worker Adjustment and Retraining Act of 1988 or any similar regulations.

     4.22 Material Misstatements or Omissions. No representations or warranties by Seller in this
Agreement, including without limitation the Seller Disclosure Schedule, contains or will contain
any untrue statement of a material fact, or omits or will omit to state any material fact necessary
to make the statements or facts contained therein not misleading.

ARTICLE 5. REPRESENTATIONS AND WARRANTIES OF PURCHASER

     Purchaser hereby represents and warrants as of the date hereof to Seller as follows:

     5.1 Organization and Good Standing. Purchaser (and if applicable, the Purchaser Affiliate) is
a corporation duly organized, validly existing and in good standing under the laws of its
jurisdiction of organization.

     5.2 Authority; Binding Nature of Agreements. Purchaser (and if applicable, the Purchaser
Affiliate) has all requisite corporate power and authority to execute and deliver this Agreement
and all other Transaction Agreements to which it is a party and to carry out the provisions of this
Agreement and the other Transaction Agreements. The execution, delivery and performance by
Purchaser (and if applicable, the Purchaser Affiliate) of this Agreement and the other Transaction
Agreements have been approved by all requisite action on the part of Purchaser (and if applicable,
the Purchaser Affiliate). This Agreement has been duly and validly executed and delivered by
Purchaser (and if applicable, the Purchaser Affiliate). Each of this Agreement and the other
Transaction Agreements constitutes, or upon execution and delivery, will constitute, the legal,
valid and binding obligation of Purchaser (and if applicable, the Purchaser Affiliate), enforceable
against Purchaser (and if applicable, the Purchaser Affiliate) in accordance with its terms, except
as may be limited by bankruptcy, insolvency, reorganization,

20

 

moratorium and other similar laws and equitable principles related to or limiting creditors’
rights generally and by general principles of equity.

     5.3 No Conflicts; Required Consents. The execution, delivery and performance of this
Agreement or any other Transaction Agreement by Purchaser (and if applicable, the Purchaser
Affiliate) do not and will not (with or without notice or lapse of time):

          (a) conflict with, violate or result in any breach of (i) any of the provisions of Purchaser’s
(and if applicable, the Purchaser Affiliate’s) Certificate of Incorporation or bylaws; (ii) any
resolutions adopted by Purchaser’s (and if applicable, the Purchaser Affiliate’s) stockholders, or
its board of directors or committees thereof; (iii) any of the terms or requirements of any
Governmental Approval held by Purchaser (and if applicable, the Purchaser Affiliate); or (iv) any
provision of a Contract to which Purchaser (and if applicable, the Purchaser Affiliate) is a party;

          (b) except as would not be reasonably be expected to have a Material Adverse Effect on
Purchaser, give any Governmental Authority or other Person the right to (i) challenge the
Transaction; (ii) exercise any remedy or obtain any relief under any Legal Requirement or any Order
to which Purchaser (and if applicable, the Purchaser Affiliate) or any of its assets is subject; or
(iii) declare a default of, exercise any remedy under, accelerate the performance of, cancel,
terminate or modify any Contract to which Purchaser (and if applicable, the Purchaser Affiliate) is
a party; or

          (c) require Purchaser (and if applicable, the Purchaser Affiliate) to obtain any Consent or
make or deliver any filing or notice to a Governmental Authority.

     5.4 Brokers. Purchaser has not retained any broker or finder or incurred any liability or
obligation for any brokerage fees, commissions or finders fees with respect to this Agreement or
the Transaction.

     5.5 Financing. Purchaser has (i) sufficient funds available to pay the Purchase Price and any
expenses incurred by Purchaser in connection with the Transaction, (ii) the resources and
capabilities (financial or otherwise) to perform its obligations hereunder and under the
Transaction Agreements, and (iii) not incurred, and is not aware of any basis upon which it would
be reasonably likely to incur, any obligation, commitment, restriction or liability of any kind,
absolute or contingent, which would be reasonably likely to impair or adversely affect its ability
to pay the Purchase Price or any other amounts payable pursuant to the Transaction Agreements as
they become due and payable.

     5.6 Independent Investigation. Purchaser has such knowledge and experience in financial and
business matters that it is capable of evaluating the merits and risks of its participation in the
transactions contemplated by this Agreement and the other Transaction Agreements. Purchaser
confirms that Seller has made available to Purchaser and its representatives the opportunity to ask
questions of the personnel of the Business, as well as access to the offices, properties and books
and records of the Business, and Purchaser confirms that it or its representatives has made an
independent investigation, analysis and evaluation of the Purchased Assets and Assumed Liabilities.

21

 

ARTICLE 6. POST-CLOSING COVENANTS

     6.1 Transferred Intellectual Property.

          (a) Seller’s rights to any Transferred Intellectual Property shall be governed by the Patent
License, the Government Contract License and the licenses in Section 6.11. If Seller or
any assignee of Seller owns or has any right or interest in any Transferred Intellectual Property
that cannot be, or for any reason is not, assigned to Purchaser at the Closing, Seller (i) shall
provide Purchaser with a reasonably detailed list of all such Transferred Intellectual Property;
(ii) shall use its reasonable efforts to cause the assignment as promptly as practicable after the
Closing and (iii) hereby grants to Purchaser, at the Closing, a worldwide, royalty-free, fully paid
up, perpetual, irrevocable, transferable, sub-licensable and exclusive license to exercise all
rights in and to such Transferred Intellectual Property.

          (b) If Purchaser is unable to enforce the Transferred Intellectual Property transferred to it
hereunder against a third party as a result of any Legal Requirement that prohibits enforcement of
such rights by a transferee of such rights, Seller agrees to assign, to the extent legally
practicable, to Purchaser such rights as may be required by Purchaser to enforce its Intellectual
Property rights in its own name.

     6.2 Cooperation. After the Closing, upon the request of Purchaser, Seller shall use
reasonable best efforts to (a) execute and deliver any and all further materials, documents and
instruments of conveyance, transfer or assignment as may reasonably be requested by Purchaser to
effect, record or verify the transfer to, and vesting in Purchaser, of Seller’s right, title and
interest in and to the Purchased Assets, free and clear of all Encumbrances, in accordance with the
terms of this Agreement; (b) deliver any and all further materials necessary for Purchaser to own
and use the Purchased Assets in the manner in which the Purchased Assets have been used prior to
the Closing; (c) subject to Seller’s reasonable business judgment with respect to Seller’s business
interests, cooperate, to the extent necessary, with Purchaser to contest or defend against any
Proceeding relating to the Transaction or to the operation and ownership of the Purchased Assets
before the Closing Date; and (d) cooperate fully with Purchaser in the application for and
prosecution of any Patent applications included in the Transferred Intellectual Property, and to
the extent within Seller’s control, cause any inventors listed on such Patent applications to
similarly cooperate in such application and prosecution. Neither Seller nor any of its
Representatives shall take any action that is intended and designed to diminish the value of the
Purchased Assets after the Closing or to interfere with Purchaser’s ownership and operation of the
Purchased Assets after the Closing, including disparaging to customers the name or business of
Purchaser.

     6.3 Return of Purchased Assets. If, for any reason after the Closing, any of the Purchased
Assets or Assumed Liabilities are ultimately determined to be Excluded Assets or Excluded
Liabilities, respectively, (a) Purchaser shall transfer and convey (without further consideration)
to Seller, and Seller shall accept, such Purchased Assets, (b) Seller shall assume, and agree to
pay, perform, fulfill and discharge (without further consideration) such Assumed

22

 

Liabilities, and (c) Purchaser and Seller shall execute such documents or instruments of
conveyance or assumption and take such further acts which are reasonably necessary or desirable to
effect the transfer of such Purchased Assets back to Seller and the re-assumption of such Assumed
Liabilities by Seller.

     6.4 Records and Documents. For a period of [***] after the Closing, from time to time and at
Purchaser’s reasonable request and sole expense, Seller shall provide Purchaser and its
representatives with reasonable access to and the right to make copies of those records and
documents (including, without limitation, Tax Returns and other documents relating to Taxes)
related to the Purchased Assets, possession of which is retained by Seller, as is reasonably
necessary. If during such period Seller elects to dispose of any such records and documents, Seller
shall give Purchaser sixty (60) days’ prior written notice, during which period Purchaser shall
have the right to take such records and documents without further consideration, provided such is
permitted by Legal Requirements and that Seller will incur no Liability in connection therewith.

     6.5 Trademarks and Domain Names. Except as necessary to fulfill Seller’s obligations under
the Government Contract and Seller Contracts (but only for the duration of such Contracts), from
and after the Closing, Seller shall not use and shall cause its Subsidiaries not to use, any of the
names listed on Schedule 6.5 in connection with the advertising, marketing, sale, licensing
or other distribution of any products or services of Seller or its Subsidiaries. Seller shall also
shutdown all websites exclusively used to advertise, market, sell, license or otherwise distribute
Seller Products and Services; provided, however, that Seller shall transfer to Purchaser all rights
in www.failsafe.com and www.phoenixfreeze.com as a Purchased Asset pursuant to Section
1.1(a). Seller shall remove all Trademarks, trade names, references, links and logos of the
Seller Products and Services on Seller’s websites now in existence or hereafter created, including
but not limited to www.phoenix.com. Seller irrevocably and perpetually covenants not to
sue Purchaser or any Purchaser Affiliate for any use of any of the names listed on Schedule
6.5 in connection with the advertising, marketing, sale, licensing or other distribution of any
products or services of Purchaser or a Purchaser Affiliate.

     6.6 Bulk Sales Laws. Purchaser and Seller hereby waive compliance by Purchaser and Seller
with the Bulk Sales Laws and any other similar Legal Requirement in any applicable jurisdiction in
respect of the transactions contemplated by this Agreement and the other Transaction Agreements;
provided, however, that Seller shall pay and discharge when due all claims of creditors asserted
against Purchaser or the Purchased Assets by reason of such noncompliance and shall take promptly
all necessary actions required to remove any Lien which may be placed upon any of the Purchased
Assets by reason of such noncompliance.

     6.7 Non-Competition.

          (a) For and in consideration of the Transaction contemplated herein, during the period commencing
with the Closing Date and ending on the [***] anniversary of the Closing Date (the “Non-Compete
Period”) and except as expressly set forth in this Section 6.7,
Seller shall not directly or indirectly (including through any Subsidiary) engage in any
Competitive Activity anywhere in the world.

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

23

 

          (b) The term “Competitive Activity” shall mean (i) engaging in any development,
marketing, selling, licensing or distribution that is directly competitive with any Anti-Theft
Products and Services or with any Proximity-based Anti-Theft Products and Services; (ii) engaging
in [***] including, but not limited to, [***]; (iii) enabling or otherwise using [***] or provide
or develop [***], during the Non-Compete Period; provided however, that, notwithstanding anything
to the contrary in this Section 6.7, Seller may during the Non-Compete Period, in
connection with and in the ordinary course of its [***]; (iv) diverting or attempting to divert
from Purchaser or any Subsidiary of Purchaser any business of any kind in which they are engaged in
connection with the Seller Products and Services or other Anti-Theft Products and Services,
including the solicitation of or interference with any suppliers, contractors, or customers; or (v)
having a financial interest in any Anti-Theft Products and Services that directly compete with the
Seller Products and Services, except as expressly permitted in this Section 6.7.

          (c) Without limiting the provisions of Section 6.7(b), during the Non-Compete Period,
Seller shall not [***]. If Seller [***],

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

24

 

Seller shall promptly [***] (including, but not limited to, [***]); provided, however, in no
event will Seller [***].

          (d) Notwithstanding the foregoing, the parties agree that the Non-Compete Period will
automatically terminate upon the earlier to occur of (A) the [***] anniversary of the Closing Date,
and (B) [***] months after Seller is acquired by a third party (the “Seller Acquirer”).
Notwithstanding anything to the contrary in this Agreement, the parties also agree that (i) the
foregoing non-competition restriction in (b)(v) above shall not apply to any Seller Acquirer; and
(ii) the foregoing non-competition restrictions and the Non-Compete Period shall not in any way
apply to any license agreements between Seller Acquirer and a third party that exist prior to such
acquisition, nor to any Anti-Theft Products and Services of Seller Acquirer that are commercially
available or under development prior to such acquisition; provided, that, prior to the termination
of the Non-Compete Period, any such development does not rely on or use any Intellectual Property
(excluding Patents) developed by or on behalf of Seller that is embodied or used in Seller Products
and Services (or any portion thereof). For purposes of this Section 6.7(d), Seller is
acquired by a third party if any transaction, or series of related transactions, occurs involving
the direct or indirect (a) transfer of at least 51% of the outstanding equity securities of Seller
(excluding open market transfers by or to holders of less than 10% of the outstanding equity
securities of Seller); (b) acquisition of 51% or more of the outstanding equity securities of
Seller by an individual (or legal representative), corporation, a trust, a partnership or an
unincorporated association, syndicate or organization, and their affiliates, or (c) transfer of a
controlling interest in all or substantially all of the intellectual property, assets or business
of Seller and the Subsidiaries of Seller taken as a whole (each, a “Seller Sale”).

          (e) Nothing contained herein shall limit Seller or its Subsidiaries (A) from acquiring
(including through a merger) or investing in any Person whose business activities do not constitute
a Competitive Activity in substantial part, provided that in the case of any acquisition
consummated [***] or more months prior to the expiration of the Non-Compete Period, any Competitive
Activity is divested by Seller as promptly as practicable and in any event within [***],
or (B) from, directly or indirectly, holding or making investments in securities of any business
listed on a national securities exchange, admitted to trading in an automated quotations market, or
traded generally on the over-the-counter market, so long as Seller’s direct or indirect holdings do
not exceed 5% of the outstanding equity securities thereof.

          (f) It is the understanding of the parties that the scope of the covenants contained in this
Section 6.7 is necessary to protect the rights of Purchaser and the Purchaser’s rights in
and to the Purchased Assets. It is the parties’ intention that these covenants be enforced to the
greatest extent (but to no greater extent) in time, area, and degree of participation as is
permitted by applicable law. The prohibitions in each of paragraphs (a)-(d) above shall be deemed,
and shall be construed as separate and independent agreements between Purchaser on the one hand,
and Seller on the other. If any such agreement or any part of such agreement is

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

25

 

held invalid, void or unenforceable by any court of competent jurisdiction, such
invalidity, voidness, or unenforceability shall in no way render invalid, void, or unenforceable
any other part of them or any separate agreement not declared invalid, void or unenforceable; and
this Agreement shall in such case be construed as if the invalid, void, or unenforceable provisions
were omitted.

          (g) The parties agree that, in the event of breach or threatened breach of Seller’s covenants
in this Section 6.7, the damage or imminent damage to the value and the goodwill of
Purchaser and the Purchased Assets may be irreparable and extremely difficult to estimate, making
any remedy at law or in damages inadequate. Accordingly, the parties agree that Purchaser shall be
entitled to seek injunctive relief against Seller in the event of any breach or threatened breach
of any of such covenants by Seller, in addition to any other relief (including damages) available
to Purchaser under this Agreement or under applicable law.

          (h) The parties agree that the covenants of Seller not to compete contained in this
Section 6.7 may be assigned by Purchaser to any Person to whom may be transferred the
Seller Products and Services by the sale or transfer of the Purchased Assets of Seller (as acquired
by Purchaser under this Agreement) or otherwise, other than [***]. It is the parties’ intention
that these covenants of Seller shall inure to the benefit of any Person that may succeed to the
Purchased Assets of Seller (as acquired by Purchaser under this Agreement), other than [***], with
the same force and effect as if these covenants were made directly with such successor.

          (i) Notwithstanding the foregoing, the parties agree that the covenants of Seller not to
compete contained in this Section 6.7 shall not apply to Seller’s activities with respect
to the Government Contract under the Government Contract License.

     6.8 Nondisclosure.

          (a) After the Closing Date, except as may be required for tax purposes or other regulatory
purposes or as may be required to fulfill Seller’s obligations under the Government Contract, any
Support and Maintenance Services and the Seller Contracts as contemplated by the Government
Contract License and Section 6.11, (i) neither Seller nor any Subsidiary of Seller or any
of their successors and assigns shall use, publish or disclose to any others any confidential or
proprietary information (including Trade Secrets) contained or embodied in the Transferred
Intellectual Property or the Books and Records, and (ii) Seller and its Subsidiaries will take
commercially reasonable efforts to destroy any such confidential or proprietary information
(including Trade Secrets) that is retained by them in any form or any medium. Notwithstanding
anything to the contrary set forth in this Section 6.8(a), neither Seller nor any
Subsidiary of Seller shall have any obligations with respect to the confidential or proprietary
information referenced in this Section 6.8(a) that (a) is or becomes generally known to the
public without fault of Seller or its Subsidiaries, (b) is independently developed by Seller or its
Subsidiaries without use of such confidential or proprietary information and in compliance with
Section 6.7, or (c) is rightfully obtained by Seller or its Subsidiaries from a third party
without any obligation of confidentiality to Purchaser.

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

26

 

          (b) The terms of the Confidentiality Agreement are hereby incorporated herein by reference and
shall continue in full force and effect after the Closing; provided, however, that the
Confidentiality Agreement shall terminate with respect to Purchaser’s obligations only in respect
of that portion of the Confidential Information (as defined in the Confidentiality Agreement)
exclusively relating to the Business and the Purchased Assets (the ownership of which will have
been transferred to Purchaser). Each of Purchaser and Seller shall protect and treat the
confidential and proprietary information (including Trade Secrets) of the other party with at least
the same care, and to such extent, as it does with respect to its own confidential and proprietary
information (including Trade Secrets) of like nature.

     6.9 No Contest of Validity. Seller irrevocably covenants that it will not, in any forum,
contest or assist in the contest of the validity or enforceability of, or Purchaser’s rights to,
any of the Transferred Intellectual Property or the Licensed Intellectual Property; provided,
however, that (a) in the case of Transferred Intellectual Property, such covenant is limited to the
term of protection afforded under applicable law, (b) in the case of Licensed Intellectual
Property, such covenant is limited to the term of the applicable license, and (c) such covenant
shall not apply to the extent Purchaser (or any other party that obtains rights to the Transferred
Intellectual Property) asserts an infringement action against Seller based on any of the foregoing
Transferred Intellectual Property.

     6.10 Intentionally Omitted.

     6.11 Notices of Termination and Licenses for Seller Contracts. Within [***] after the Closing,
Seller shall deliver to each counterparty to a Contract of Seller that involves the sale, license
or other provision of Seller Products and Services, including any Out-Licenses (each a “Seller
Contract”), and as listed on Schedule 6.11, any notice required under such Seller
Contracts to terminate any terms, amendments, addendums or other agreements therein to provide
Seller Products and Services to such counterparty or their customers (“Termination
Notices”). Without limiting the foregoing, Seller shall ensure that [***] they are no longer
in effect after [***] days following the delivery of the Termination Notices. The Termination
Notices shall be in a form mutually agreeable to the parties. Seller shall generally be
responsible for all administrative and legal costs, fees and expenses connected with the
Termination Notices and any amendment of its existing Seller Contracts to accommodate the
requirements of this Section 6.11, other than costs, fees and expenses of Purchaser and its
counsel to review the Termination Notices. Purchaser hereby grants to Seller a limited,
non-exclusive, non-assignable, worldwide license (without rights to sublicense) to exploit the
Seller Products and Services solely to fulfill Seller’s obligations under the Seller Contracts for
[***] days following the delivery of the Termination Notices. Seller agrees to retain a copy of
the Source Code and Object Code for the Seller Products and Services (subject to all of the
confidentiality and non-disclosure restrictions herein) for such [***] day period for the purpose
of Purchaser confirming the delivery of all such Source Code and Object Code pursuant to this
Agreement and as further stated in Section 6.2. After such period (but in no event more
than [***] days after the Closing), Seller agrees to promptly destroy the Seller Products and
Services for such Contracts, including all Source Code and Object Code and related

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

27

 

documentation that is Transferred Intellectual Property, and certify such destruction in a writing
promptly delivered to Purchaser.

     6.12 Employee Benefit Plans. Seller shall be solely responsible for all obligations and
liabilities arising under or with respect to all Employee Benefit Plans. Purchaser shall not
assume any of the Employee Benefit Plans or any obligation or liability thereunder. Without
limiting the generality of the foregoing, Seller shall be solely responsible for all severance and
similar obligations under any Employee Benefit Plan that become payable as a result of the
termination of employment of any Employee or other service provider in connection with the
transactions contemplated by this Agreement.

     6.13 Software Code Licenses to Purchaser.

          (a) Source Code License. Seller hereby grants to Purchaser a non-exclusive,
non-transferable (except solely in connection with a sale of all or substantially all of
Purchasers’ assets that relate to the Transferred Intellectual Property), irrevocable, perpetual,
worldwide, royalty-free, fully paid-up, non-sublicensable, internal-use-only license to reproduce,
adapt, distribute, perform, and display the Source Code of the software programs set forth on
Exhibit B (the “Licensed Source Code”), but only for purposes of (1) modifying such
Licensed Source Code to create derivative works; (2) creating and compiling such derivative works
for internal testing and evaluation; and (3) correcting defects in such derivative works.
Purchaser agrees that it shall not, nor allow any third party to, (x) sublicense, sell, or
otherwise distribute the Licensed Source Code or any derivative work of the Licensed Source Code,
in whole or in part, under any circumstances, except as otherwise authorized by Seller in writing,
(y) access and use the Licensed Source Code at a facility that is not a Purchaser-owned or leased
facility, or (z) alter or remove the copyright notice contained in any Licensed Source Code.

               (i) Any modifications or derivative works to the Licensed Source Code created by Purchaser
will be the property of Purchaser, subject to Seller’s and its supplier’s intellectual property
rights in the underlying Licensed Source Code (including any modifications or derivative works
created by or on behalf of Seller).

          (b) Object Code License. Seller hereby grants to Purchaser a non-exclusive,
worldwide, royalty free, fully paid up, non-terminable, irrevocable, perpetual, assignable (but
solely in connection with a sale of all or substantially all of Purchaser’s assets that relate to
the Transferred Intellectual Property), sublicenseable license to all Object Code compiled from the
Licensed Source Code set forth on Exhibit B (“Licensed Object Code”) for purposes
of reproducing, having reproduced, performing, modifying, displaying and distributing all such
Object Code. Purchaser agrees that, at such time as such Object Code is distributed with
Purchaser’s products and services, Purchaser agrees to include in the applicable license agreement
a notice that certain portions of such products and services may include intellectual property from
Seller.

          (c) Independent Contractor Access. For avoidance of doubt, Purchaser’s independent
contractors are permitted to exercise Purchaser’s rights under this Section 6.13 provided
they are bound by confidentiality obligations substantially similar to those imposed in Section 6.8 herein.

28

 

     6.14 Software Code License to Seller.

          (a) Source Code License. Purchaser hereby grants to Seller a non-exclusive,
non-transferable (except solely in connection with a sale of all or substantially all of Sellers’
assets), irrevocable, perpetual, worldwide, royalty-free, fully paid-up, non-sublicensable,
internal-use-only license to reproduce, adapt, distribute, perform, and display the Source Code set
forth on Exhibit C (the “Licensed-Back Source Code”), but only for purposes of (1)
modifying such Licensed-Back Source Code to create derivative works; (2) creating and compiling
such derivative works for internal testing and evaluation; and (3) correcting defects in such
derivative works. Seller agrees that it shall not, nor allow any third party to, (x) sublicense,
sell, or otherwise distribute the Licensed-Back Source Code or any derivative work of the
Licensed-Back Source Code, in whole or in part, under any circumstances, except as otherwise
authorized by Purchaser in writing, (y) access and use the Licensed-Back Source Code at a facility
that is not a Seller-owned or leased facility, or (z) alter or remove the copyright notice
contained in any Licensed-Back Source Code.

               (i) Any modifications or derivative works to the Licensed-Back Source Code created by Seller
will be the property of Seller, subject to Purchaser’s and its supplier’s intellectual property
rights in the underlying Licensed-Back Source Code (including any modifications or derivative works
created by or on behalf of Purchaser).

          (b) Object Code License. Purchaser hereby grants to Seller a non-exclusive,
worldwide, royalty free, fully paid up, non-terminable, irrevocable, perpetual, assignable (but
solely in connection with a sale of all or substantially all of Seller’s assets), sublicenseable
license to all Object Code set forth on Exhibit C (the “Licensed-Back Object Code”)
for purposes of reproducing, having reproduced, performing, modifying, displaying and distributing
all such Licensed-Back Object Code. Seller agrees that, at such time as such Licensed-Back Object
Code is distributed with Seller’s products and services, Seller agrees to include in the applicable
license agreement a notice that certain portions of such products and services may include
intellectual property from Purchaser.

          (c) Independent Contractor Access. For avoidance of doubt, Seller’s independent
contractors are permitted to exercise Seller’s rights under this Section 6.14 provided they
are bound by confidentiality obligations substantially similar to those imposed in Section
6.8 herein.

ARTICLE 7. CONDITIONS TO CLOSING

     7.1 Conditions to Purchaser’s Obligation to Close. The obligations of Purchaser to consummate
the Transaction shall be subject to the satisfaction, on or prior to the Closing Date, of each of
the following conditions, any of which may be waived by Purchaser in writing:

          (a) Documents. Seller shall have delivered to Purchaser all of the documents and
agreements as set forth in Sections 3.2 and Section 3.4 and all such documents and
agreements shall be in full force and effect.

29

 

     7.2 Conditions to Seller’s Obligation to Close. The obligations of Seller to consummate the
Transaction shall be subject to the satisfaction, on or prior to the Closing Date, of each of the
following conditions, any of which may be waived by Seller in writing:

          (a) Deliveries. Purchaser shall have delivered to Seller the Purchase Price and all
of the documents and agreements as set forth in Sections 3.3 and 3.4.

ARTICLE 8. INDEMNIFICATION

     8.1 Survival of Representations and Warranties.

          (a) All representations and warranties contained in this Agreement shall survive the Closing
until the eighteen (18) month anniversary of the Closing Date (the “Survival Date”);
provided, however, that (i) the representations and warranties of Seller contained in [***] (the
“Surviving Reps”) shall survive indefinitely, (ii) the representations and warranties of
Seller contained in [***] of this Agreement (together with the Surviving Reps, the “Seller
Fundamental Reps”) and the representations and warranties of Purchaser in Section 5.1
and 5.2 of this Agreement (the “Purchaser Fundamental Reps”) shall survive until
sixty (60) days after the expiration of the applicable statutes of limitation (including any
extensions thereof) with respect thereto (each such applicable date, the “Expiration
Date”); and (iii) any good faith claim for indemnification based upon a breach of any such
representation or warranty and asserted prior to the Survival Date or Expiration Date, as
applicable, by written notice in accordance with Section 8.4 shall survive until final
resolution of such claim. The representations and warranties contained in this Agreement (and any
right to indemnification for breach thereof) shall not be affected by any investigation,
verification or examination by any party hereto or by any Representative of any such party or by
any such party’s Knowledge of any facts with respect to the accuracy or inaccuracy of any such
representation or warranty.

          (b) The respective covenants, agreements and obligations of Seller and Purchaser set forth in
this Agreement shall survive the execution and delivery of this Agreement, any investigation by or
on behalf of any party hereto, and the Closing Date in accordance with their respective terms.

     8.2 Indemnification.

          (a) Indemnification by Seller. Subject to the limitations set forth in this
Article 8, Seller shall indemnify, defend and hold harmless Purchaser and its
Representatives (the “Purchaser Indemnified Parties”) from and against any and all Damages,
whether or not involving a third-party claim, including attorneys’ fees, to the extent arising out
of, relating to or resulting from:

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

30

 

               (i) the failure of any representation or warranty of Seller contained in Article
4 (including the Seller Disclosure Schedule) to be true and correct (disregarding for purposes
of this Section 8.2(a)(i) any “materiality”, “in all material respects”, “Material Adverse
Effect”, “Knowledge” or similar qualification contained therein or with respect thereto for
purposes of calculating the amount of Damages);

               (ii) any failure by Seller to fully perform, fulfill or comply with any covenant as set forth
in this Agreement;

               (iii) any Liability arising out of the ownership or operation by Seller of the Purchased
Assets prior to the Closing; or

               (iv) any of the Excluded Assets or Excluded Liabilities.

          (b) Indemnification by Purchaser. Subject to the limitations set forth in this
Article 8, Purchaser shall indemnify, defend and hold harmless Seller and its
Representatives (the “Seller Indemnified Parties”) from and against any and all Damages,
whether or not involving a third-party claim, including attorneys’ fees, to the extent arising out
of, relating to or resulting from:

               (i) the failure of any representation or warranty of Purchaser contained in Article 5
to be true and correct (disregarding for purposes of this Section 8.2(b)(i) any
“materiality”, “in all material respects”, “Material Adverse Effect”, “Knowledge” or similar
qualification contained therein or with respect thereto for purposes of calculating the amount of
Damages);

               (ii) any failure by Purchaser to fully perform, fulfill or comply with any covenant as set
forth in this Agreement;

               (iii) any Liability arising out of the ownership or operation by Purchaser of the Purchased
Assets after the Closing other than Liabilities arising from infringement claims based upon
Purchaser’s use of the software or code as used by Seller and delivered to Purchaser and not
modified by Purchaser; or

               (iv) any of the Assumed Liabilities.

     8.3 Exclusive Remedy. The indemnities provided in this Article VIII shall be the sole
and exclusive remedy of the Purchaser Indemnified Parties and Seller Indemnified Parties for all
Damages for which they are entitled to be indemnified pursuant to Section 8.2(a)(i) or
Section 8.2(b)(i); provided that for purposes of clarity, recoveries under
8.2(a)(ii), 8.2(a)(iii), 8.2(a)(iv), 8.2(b)(ii),
8.2(b)(iii) and 8.2(b)(iv) shall not be so limited.

     8.4 Procedure for Indemnification.

          (a) Claims. Promptly after becoming aware of any Damages for which they are entitled
to be indemnified pursuant to Section 8.2, such party (an “Indemnified Party”)
shall deliver to the party obligated to provide such indemnification (the “Indemnifying
Party”), a

31

 

certificate signed by an appropriately authorized officer thereof (a “Claim
Certificate”), (i) stating the aggregate amount of Damages or an estimate thereof, in each case
to the extent known or determinable at such time and (ii) specifying in reasonable detail the
individual items of such Damages included in the amount so stated, the date each such item was paid
or properly accrued or arose, and the nature of the misrepresentation, breach or claim and the
section under this Agreement pursuant to which such item is related; provided, however, that no
delay on the part of the Indemnified Party in notifying the Indemnifying Party shall relieve the
Indemnifying Party of any liability or obligations hereunder, except to the extent that the
Indemnifying Party has been prejudiced thereby, and then only to such extent. In the absence of
any objections to such Claim Certificate as provided in Section 8.4(b) by the date set
forth in Section 8.4(b), the Indemnified Party shall, subject to the other provisions of
this Agreement, be entitled to recover from the Indemnifying Party the amount of such Damages in
satisfaction of the Indemnifying Party’s indemnification obligations.

          (b) Objection to Claim Certificate.

               (i) The Indemnifying Party shall have thirty (30) days after delivery to it of a Claim
Certificate to deliver to the Indemnified Party a written response to such Claim Certificate (a
“Claim Response”). If after such thirty (30) day period the Indemnifying Party has not
delivered a Claim Response to the Indemnified Party or it has delivered a Claim Response which does
not dispute any portion of the claims contained in the Claim Certificate, the Indemnifying Party’s
indemnification obligations in the amount specified in the Claim Certificate shall become final.
If the Claim Response disputes any claims contained in the Claim Certificate, the Indemnifying
Party and the Indemnified Party shall attempt in good faith for an additional thirty (30) days to
agree upon the rights of the respective parties with respect to each of such claims. If the
Indemnifying Party and the Indemnified Party should so agree, a certificate setting forth such
agreement shall be prepared and signed by both parties.

               (ii) If no such agreement can be reached after good faith negotiations, either the Indemnified
Party or the Indemnifying Party may, by written notice to the other, demand arbitration of the
matter, and the matter shall be settled by arbitration conducted by three (3) arbitrators. Within
fifteen (15) days after such written notice is sent, the Indemnified Party (on the one hand) and
the Indemnifying Party (on the other hand) shall each select one arbitrator, and the two
arbitrators so selected shall select a third arbitrator. The decision of the arbitrators as to the
validity and amount of any claim in the Claim Certificate shall be binding and conclusive upon the
parties to this Agreement.

               (iii) Judgment upon any award rendered by the arbitrators may be entered in any court having
jurisdiction. Any such arbitration shall be conducted under the commercial rules then in effect of
the American Arbitration Association. Any arbitration shall be held in Seattle, Washington. The
non-prevailing party to an arbitration shall pay its own expenses, the fees of each arbitrator, the
administrative fee of the American Arbitration Association and the expenses, including, without
limitation, the reasonable attorneys’ fees and costs, incurred by the prevailing party to the
arbitration (as determined by the arbitrator).

32

 

          (c) Third-Party Claims. Promptly after the assertion by any third party of any
claim against any Indemnified Party (a “Third-Party Claim”) that, in the judgment of
such Indemnified Party, may result in the incurrence by such Indemnified Party of Damages for which
such Indemnified Party would be entitled to indemnification pursuant to this Agreement, such
Indemnified Party shall deliver to the Indemnifying Party a written notice describing in reasonable
detail such Third-Party Claim; provided, however, that no delay on the part of the Indemnified
Party in notifying the Indemnifying Party shall relieve the Indemnifying Party of any liability or
obligations hereunder, except to the extent that the Indemnifying Party has been prejudiced
thereby, and then only to such extent. The Indemnifying Party shall have the right, but not the
obligation, exercisable in its sole discretion by written notice to the Indemnified Party within
thirty (30) days of receipt of notice from the Indemnified Party of the commencement of or
assertion of any Third-Party Claim, to assume the defense and control the settlement of such
Third-Party Claim. Notwithstanding the foregoing, the Indemnifying Party shall not have the right
to assume control of such defense, and shall pay the reasonably incurred fees and expenses of
counsel retained by the Indemnified Party, if the Third-Party Claim which the Indemnifying Party
seeks to assume control (I) is a criminal allegation against the Indemnified Party by a
Governmental Authority, (II) involves a claim against the Indemnified Party for injunctive or
similar non-monetary relief which, if adversely, determined, would be reasonably expected to
materially and adversely impact the continuing business interests or prospects of the Indemnified
Party, (III) is reasonably likely to result in a judgment or settlement involving Damages in excess
of the remaining amount under the Indemnifying Party’s Indemnification Cap (taking in account any
amounts likely to be paid in satisfaction of any pending but unresolved claims for indemnification
against the Indemnifying Party), (IV) involves a claim which the Indemnified Party has reasonably
determined after consultation with counsel presents a conflict of interest between the Indemnifying
Party and the Indemnified Party that prevents an attorney defending such Third-Party Claim from
representing the Indemnified Party in a defense controlled by the Indemnifying Party or (V) the
Indemnifying Party has failed or is failing to vigorously defend such Third-Party Claim. The
Indemnified Party shall have the right to participate in (but not control), at its own expense, the
defense and settlement of any Third-Party Claim not assumed by the Indemnifying Party. If the
Indemnifying Party does not elect to undertake and conduct the defense of a Third-Party Claim, the
Indemnified Party shall undertake the defense of such Third-Party Claim. In the event the
Indemnifying Party has assumed the defense of any Third-Party Claim, the Indemnifying Party shall
not consent to a settlement of, or the entry of any judgment arising from, any such Third-Party
Claim without the Indemnified Party’s prior written consent (which consent shall not be
unreasonably withheld, conditioned or delayed), unless such settlement or judgment relates solely
to monetary damages and provides for a complete release of the Indemnified Party, in which case, no
such consent shall be required and such monetary damages shall be paid by the Indemnifying Party.
The Indemnified Party shall have the right to settle, or consent to the entry of any judgment
arising from, any Third-Party Claim for which the Indemnifying Party has not assumed the defense;
provided, however, that the Indemnifying Party will not be obligated to indemnify the Indemnified
Party hereunder for any settlement entered into or any judgment that was consented to without the
Indemnifying Party’s prior written consent. Whether or not the Indemnifying Party elects to defend
or prosecute any Third-Party Claim, both parties hereto shall cooperate in the defense or
prosecution thereof and shall furnish such records, information and testimony, and attend such
conferences, discovery proceedings, hearings, trials and appeals, as may be reasonably requested in
connection therewith.

33

 

          (d) Conflicts. To the extent of any conflict or overlap between this Section
8.4 and Section 9.6, Section 9.6 shall be deemed to govern and be controlling
in all circumstances.

     8.5 Purchase Price Adjustment. Seller and Purchaser agree to treat each indemnification
payment pursuant to this Article 8 and any payment pursuant to Section 9.1 as an
adjustment to the Purchase Price for all Tax purposes and shall take no position contrary thereto
unless required to do so by any applicable Legal Requirement or pursuant to a “determination”
within the meaning of Section 1313(a) of the Code or an analogous provision of state, local or
foreign law.

     8.6 Limitations on Indemnification.

          (a) Notwithstanding anything herein to the contrary, with respect to Section 8.2(a)(i)
and Section 8.2(b)(i), Seller shall not be obligated to indemnify Purchaser Indemnified
Parties and Purchaser shall not be obligated to indemnify Seller Indemnified Parties for any
Damages unless and until the aggregate of all Damages incurred by Purchaser Indemnified Parties (or
any of them), or the aggregate of all Damages incurred by Seller Indemnified Parties (or any of
them), in either case, exceeds [***] (the “Basket”), after which the party sustaining,
incurring or suffering such Damages shall be entitled to recover all such Damages including the
Basket; provided, however, that under no circumstances will Purchaser Indemnified Parties or Seller
Indemnified Parties be entitled to be indemnified for any Damages which exceed [***] in the
aggregate (the “Indemnification Cap”); provided, however, further, that the Indemnification
Cap and the Basket shall not apply to (i) any of Seller’s indemnification obligations arising out
of, relating to or resulting from (x) a breach of a Seller Fundamental Rep; (y) fraud or
intentional misrepresentation by Seller; or (z) Section 8.2(a)(ii), 8.2(a)(iii) or
8.2(a)(iv) or (ii) any of Purchaser’s indemnification obligations arising out of, relating
to or resulting from (x) a breach of a Purchaser Fundamental Rep; (y) fraud or intentional
misrepresentation by Purchaser; or (z) Section 8.2(b)(ii), 8.2(b)(iii) or
8.2(b)(iv).

          (b) PURCHASER ACKNOWLEDGES THAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT AND THE
EXHIBITS AND SCHEDULES HERETO, THERE ARE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR
IMPLIED, (I) WITH RESPECT TO SELLER AND ITS SUBSIDIARIES, THEIR RESPECTIVE ASSETS AND LIABILITIES,
THE BUSINESS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR (II) AS TO THE ACCURACY OR COMPLETENESS OF
ANY INFORMATION REGARDING THE BUSINESS FURNISHED OR MADE AVAILABLE TO PURCHASER AND ITS
REPRESENTATIVES. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, EXCEPT AS EXPRESSLY SET FORTH
IN THIS AGREEMENT AND THE EXHIBITS AND SCHEDULES HERETO, THERE ARE NO EXPRESS OR IMPLIED WARRANTIES
OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

ARTICLE 9. TAX MATTERS

     9.1 Transfer Taxes shall be borne by the party responsible for such Transfer Taxes

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

34

 

under applicable law, and such party shall pay any such Transfer Taxes when due, and shall, at
its own expense, file all necessary Tax Returns and other documentation with respect to all such
Transfer Taxes. Each party shall, no later than twenty (20) days after receipt of written notice
from the other party of payment of Transfer Taxes, promptly reimburse such other party for fifty
percent (50%) of the sum of (i) any Transfer Taxes paid by such party and (ii) any expenses
incurred by such party in connection with the preparation and filing of all necessary Tax Returns
and other documentation with respect to such Transfer Taxes. Each party shall promptly provide the
other party with copies of any receipts, invoices or similar documents describing any related
expenses, copies of any Tax Returns for Transfer Taxes, and evidence that such Transfer Taxes and
such expenses have been paid. The parties agree to cooperate in applying for or seeking a refund
or reduction of any Transfer Taxes and in preparing any Tax Returns related to Transfer Taxes. To
the extent practicable, Seller shall deliver and Purchaser or Purchaser Affiliates shall accept all
of the Purchased Assets through electronic delivery or in another manner agreed upon by the parties
hereto so as to minimize or eliminate Transfer Taxes to the extent practicable.

     9.2 Seller shall be responsible for and shall promptly pay when due all Property Taxes levied
with respect to the Purchased Assets attributable to any Pre-Closing Period. All Property Taxes
levied with respect to the Purchased Assets for any Straddle Period shall be apportioned between
Purchaser and Seller based on the number of days of such Straddle Period included in the
Pre-Closing Period and the number of days of such Straddle Period included in the Post-Closing
Period. Seller shall be liable for the proportionate amount of such Property Taxes that is
attributable to the Pre-Closing Period, and Purchaser shall be liable for the proportionate amount
of such Property Taxes that is attributable to the Post-Closing Period. Upon receipt of any bill
for such Property Taxes, Purchaser or Seller, as applicable, shall present a statement to the other
setting forth the amount of reimbursement to which each is entitled under this Section 9.2
together with such supporting evidence as is reasonably necessary to calculate the proration
amount. The proration amount shall be paid by the party owing it to the other within ten (10) days
after delivery of such statement. In the event that Purchaser or Seller makes any payment for
which it is entitled to reimbursement under this Section 9.2, the applicable party shall
make such reimbursement promptly but in no event later than ten (10) days after the presentation of
a statement setting forth the amount of reimbursement to which the presenting party is entitled
along with such supporting evidence as is reasonably necessary to calculate the amount of
reimbursement.

     9.3 Tax refunds (including any interest related thereto) received by Purchaser, its Affiliates
or successors relating to the Purchased Assets operation of the Business, in each case for or to
Seller’s any period (s) or portions thereof ending on or before the Closing Date, shall be for the
account of Seller, and Purchaser shall pay over to Seller any such amount within seven (7) Business
Days of receipt thereof.

     9.4 To the extent relevant to the Purchased Assets, each party shall (a) provide the other
with such assistance as may reasonably be required in connection with seeking a refund or reduction
of Taxes, the preparation of any Tax Return, and the conduct of any audit or other examination by
any taxing authority or in connection with judicial or administrative proceedings relating to any
liability for Taxes and (b) retain and provide the other with all records or other information that
may be relevant to the preparation of any Tax Returns, or the conduct of any
audit or examination, or other proceeding relating to Taxes.

35

 

     9.5 Purchaser shall prepare an allocation of the Purchase Price (plus Assumed Liabilities and
other relevant items to the extent properly taken into account under the IRC and the Treasury
Regulations) among the Purchased Assets, including any non-competition agreement (including without
limitation the covenant not to compete contained in Section 6.7 of this Agreement),
goodwill and other assets, in accordance with Section 1060 of the Code and the U.S. Treasury
regulations thereunder (and any similar provisions of state, local or foreign law, as applicable)
(the “Allocation”). Purchaser shall deliver such Allocation to Seller as soon as
practicable after the Closing Date. Seller shall within thirty (30) days of receipt of the
Allocation notify Purchaser in writing that it is in agreement with the allocation or of any
objections Seller has to the Allocation. Purchaser and Seller shall act in good faith to resolve
any disagreement over the Allocation. In the event that the parties cannot agree on a mutually
satisfactory Allocation within ninety (90) days after the Closing Date, a mutually agreed-upon
independent accounting firm shall, at the joint expense of Purchaser and Seller, determine the
appropriate Allocation. Once Purchaser and Seller have agreed on the Allocation or the Allocation
has been determined pursuant to the preceding sentence, (i) the Allocation shall be binding upon
the parties hereto, (ii) Purchaser and Seller shall complete and file IRS Form 8594 (and any
similar form required by state, local or foreign law) using the Allocation, and (iii) Purchaser and
Seller shall not take any position and shall cause their Affiliates not to take any position
(whether in any audit, on any Tax Return or otherwise) that is inconsistent with the Allocation
unless otherwise required by any applicable Legal Requirement or pursuant to a “determination”
within the meaning of Section 1313(a) of the Code. Not later than thirty (30) days prior to the
filing of their respective IRS Forms 8594 relating to the Transaction, Purchaser and Seller shall
each deliver to the other party a copy of its IRS Form 8594. To the extent required by any
applicable Legal Requirement, the Allocation shall be revised to reflect any adjustment of the
Purchase Price pursuant to this Agreement.

     9.6 Purchaser and its Subsidiaries and Affiliates, on the one hand, and Seller and its
Subsidiaries and Affiliates, on the other hand, shall cooperate fully with each other in the
conduct of any inquiry, claim, assessment, audit, litigation or other proceeding relating to Taxes
involving the Purchased Assets or the Allocation (each, a “Tax Matter”). Purchaser shall
have sole control of the conduct of all Tax Matters, including any settlement or compromise
thereof, provided, however, that Purchaser shall keep Seller reasonably informed of the progress of
any Tax Matter and shall not effect any such settlement or compromise with respect to which Seller
is liable without obtaining Seller’s prior written consent thereto, which shall not be unreasonably
withheld or delayed.

ARTICLE 10. MISCELLANEOUS PROVISIONS

     10.1 Expenses. Except as otherwise expressly provided for herein, whether or not the
Transaction is consummated, each party shall pay it own costs and expenses in connection with this
Agreement and the Transaction (including the fees and expenses of its advisers, accountants and
legal counsel).

36

 

     10.2 Interpretation. Whenever the words “include,” “includes” or “including” are
used in this Agreement, they shall be deemed, as the context indicates, to be followed by the
words “but (is/are) not limited to.”

     10.3 Further Assurances. Each party agrees (a) to furnish upon request to each other party
such further information, (b) to execute and deliver to each other party such other documents, and
(c) to do such other acts and things, all as another party may reasonably request for the purpose
of carrying out the intent of this Agreement and the Transaction.

     10.4 Entire Agreement. Except for the Confidentiality Agreement, which shall survive the
execution of this Agreement in accordance with its terms, this Agreement, including the other
documents and agreements specifically referred to herein, constitutes the entire agreement between
and among the parties hereto with regard to the subject matter hereof, and supersedes all prior
agreements and understandings with regard to such subject matter. There are now no agreements,
representations or warranties between or among the parties other than those set forth in the
Agreement or the documents and agreements contemplated in this Agreement except as set forth in the
Confidentiality Agreement.

     10.5 Amendment, Waivers and Consents. This Agreement shall not be changed or modified, in
whole or in part, except by supplemental agreement signed by the parties. Any party may waive
compliance by any other party with any of the covenants or conditions of this Agreement, but no
waiver shall be binding unless executed in writing by the party making the waiver. No waiver of
any provision of this Agreement shall be deemed, or shall constitute, a waiver of any other
provision, whether or not similar, nor shall any waiver constitute a continuing waiver. Any
consent under this Agreement shall be in writing and shall be effective only to the extent
specifically set forth in such writing.

     10.6 Successors and Assigns. This Agreement shall bind and inure to the benefit of the
parties hereto and their respective successors and permitted assigns, but no party hereto may
assign any right or obligation hereunder without the prior written consent of all other parties
hereto; provided, however, Purchaser and any Purchaser Affiliate shall have the right to assign all
or any portion of the Transaction Agreement (including rights thereunder) to any Subsidiary of
Purchaser and any of its lenders as collateral security without the prior written consent of
Seller. In the event of any sale of all or substantially all of the assets of Seller (“Asset
Sale”), any party that acquires Seller’s assets as part of the Asset Sale, shall assume the
obligations of Seller to indemnify Purchaser under Article 8 hereof.

     10.7 Specific Performance. Purchaser and Seller each agree that irreparable damage would
occur in the event that any of the provisions of this Agreement were not performed by them in
accordance with the terms hereof and that each party shall be entitled to specific performance of
the terms hereof, in addition to any other remedy at law or equity.

     10.8 Governing Law. The rights and obligations of the parties shall be governed by, and this
Agreement shall be interpreted, construed and enforced in accordance with, the laws of the State of
Delaware, excluding its conflict of laws rules to the extent such rules would apply the law of
another jurisdiction.

37

 

     10.9 Jurisdiction; Waiver of Jury Trial.

          (a) Any judicial proceeding brought against any of the parties to this Agreement or any
dispute arising out of this Agreement or related hereto may be brought in the courts of the State
of Washington and, by execution and delivery of this Agreement, each of the parties to this
Agreement accepts the exclusive jurisdiction of such courts, and irrevocably agrees to be bound by
any judgment rendered thereby in connection with this Agreement. The foregoing consents to
jurisdiction shall not constitute general consents to service of process in the State of Washington
for any purpose except as provided above and shall not be deemed to confer rights on any Person
other than the parties to this Agreement. Each of the parties to this Agreement agree that service
of any process, summons, notice or document by certified mail to such party’s address for notice
hereunder shall be effective service of process for any action, suit or proceeding in the State of
Washington with respect to any matters for which it has submitted to jurisdiction pursuant to this
Section 10.9(a).

          (b) To the extent permitted under Legal Requirements, each of the parties hereto hereby
irrevocably waives its right to a jury trial in connection with any action, proceeding or claim
arising out of or relating to this Agreement or any transaction contemplated hereby.

     10.10 Rules of Construction. The parties acknowledge that each party has read and negotiated
the language used in this Agreement. The parties agree that, because all parties participated in
negotiating and drafting this Agreement, no rule of construction shall apply to this Agreement
which construes ambiguous language in favor of or against any party by reason of that party’s role
in drafting this Agreement.

     10.11 Severability. If any provision of this Agreement, as applied to either party or to any
circumstance, is declared by a court of competent jurisdiction to be illegal, unenforceable or
void, this Agreement shall continue in full force and effect without said provision.

     10.12 Exhibits. All Exhibits and Schedules attached hereto shall be deemed to be a part of
this Agreement and are fully incorporated in this Agreement by this reference.

     10.13 Notices. Any notice required or permitted to be given hereunder shall be sufficient if
in writing and (a) delivered in person or by express delivery or courier service, (b) sent by
facsimile, or (c) deposited in the mail registered or certified first class, postage prepaid and
return receipt requested (provided that any notice given pursuant to clause (b) is also confirmed
by the means described in clause (a) or (c)) to such address or facsimile of the party set forth
below or to such other place or places as such party from time to time may designate in writing in
compliance with the terms hereof. Each notice shall be deemed given when so delivered personally,
or sent by facsimile transmission, or, if sent by express delivery or courier service one (1)
Business Day after being sent, or if mailed, five (5) Business Days after the date of deposit in
the mail. A notice of change of address or facsimile number shall be effective only when done in
accordance with this Section 10.13.

38

 

	 	 	 

	To Purchaser:
	 	Absolute Software Corporation
	 
	 	Suite 1600, Four Bentall Centre
	 
	 	1055 Dunsmuir Street
	 
	 	Vancouver, British Columbia, V7X 1K8
	 
	 	Facsimile: (604) 730-2621
	 
	 	Attention: John Livingston
	 
	 	 
	With copies to (which shall
not constitute notice):
	 	Latham &Watkins
	 
	 	355 South Grand Avenue
	 
	 	Los Angeles CA 90071-1560
	 
	 	Facsimile: 213.891.8763
	 
	 	Attention: Bob Steinberg, Esq.
	 
	 	 
	To Seller:
	 	Phoenix Technologies Ltd.
	 
	 	915 Murphy Ranch Road
	 
	 	Milpitas, CA 95035
	 
	 	Facsimile: (408) 570-1001
	 
	 	Attention: Timothy Chu, VP & General Counsel
	 
	 	 
	With copies to (which shall
not constitute notice):
	 	Morgan Lewis & Bockius LLP
	 
	 	2 Palo Alto Square
	 
	 	3000 El Camino Real, Suite 700
	 
	 	Palo Alto, CA 94306-2121
	 
	 	Facsimile: (650) 843-4001
	 
	 	Attention: William A. Myers, Esq.

     10.14 Rights of Parties. Nothing in this Agreement, whether express or implied, is intended
to confer any rights or remedies under or by reason of this Agreement on any persons other than the
parties to it and their respective successors and permitted assigns, nor is anything in this
Agreement intended to relieve or discharge the obligation or liability of any third person to any
party to this Agreement, nor shall any provision give any third person any right of subrogation or
action over or against any party to this Agreement.

     10.15 Counterparts. This Agreement may be signed in any number of counterparts, each of which
shall be an original, with the same effect as if the signatures thereto and hereto were upon the
same instrument.

     10.16 Public Announcements. Except in respect of any announcement required by applicable
Legal Requirements or by obligations pursuant to any listing agreement with or rules of Nasdaq or
the Toronto Stock Exchange (provided that in any event, the parties shall consult with each other
prior to such announcement), no party shall issue any press release or otherwise make any public
announcement regarding the transactions contemplated hereby or any party

39

 

hereto without the consent of such party, which consent shall not be unreasonably withheld,
conditioned or delayed.

     10.17 Purchaser Liability. Notwithstanding anything to the contrary contained in the
Transaction Agreements to the contrary, Purchaser shall not be relieved of any liability to Seller
by virtue of an assumption of any obligation by a Purchaser Affiliate, and all obligations of a
Purchaser Affiliate to Seller shall be guaranteed in full by Purchaser. The foregoing is not
intended to confer any rights or remedies on any persons other than the parties to this Agreement
and their respective successors and permitted assigns.

[Signatures Follow On a Separate Page]

40

 

     IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on its behalf
by their respective officers thereunto duly authorized all as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 

	“Purchaser”	 	 	 	“Seller”	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	ABSOLUTE SOFTWARE CORPORATION	 	 	 	PHOENIX TECHNOLOGIES LTD.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ John Livingston	 	 	 	By:	 	/s/ Thomas Lacey	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	John Livingston
	 	 	 	Name:	 	Thomas Lacey	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Title:

	 	Chief Executive Officer
	 	 	 	Title:	 	President and CEO	 	 
	 

	 	 	 	 	 	 	 	 	 	 

Signature Page

 

 

EXHIBIT A

CERTAIN DEFINITIONS

“Affiliate” of any Person means any Person that controls, is controlled by, or is under
common control with such Person. As used herein, the term “control” (including the terms
“controlling”, “controlled by” and “under common control with”) means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of a
Person, whether through ownership of voting securities or other interests, by contract or
otherwise.

“Agreement” shall mean the Asset Purchase Agreement to which this Exhibit A is
attached (including the Seller Disclosure Schedule and all other schedules and exhibits attached
hereto), as it may be amended from time to time.

“Allocation” shall have the meaning specified in Section 9.5.

“Anti-Theft Products and Services” means products and/or services (including, but not
limited to, products and/or services that [***] that are [***].

“Asset Sale” shall have the meaning specified in Section 10.6.

“Assignment and Assumption Agreement” shall have the meaning specified in Section
3.2(c).

“Assignment Consents” shall have the meaning specified in Section 4.2(c).

“Assumed Liabilities” shall have the meaning specified in Section 1.3.

“Basket” shall have the meaning specified in Section 8.6(a).

“Books and Records” shall have the meaning set fort in Section 1.1(d).

“Business” shall have the meaning set forth in the first Recital.

“Business Day” shall mean any day other than (i) a Saturday or a Sunday or (ii) a day on
which banking and savings and loan institutions are authorized or required by law to be closed.

“Claim Certificate” shall have the meaning specified in Section 8.4(a).

“Claim Response” shall have the meaning specified in Section 8.4(b)(i).

“Closing” shall have the meaning specified in Section 3.1.

“Closing Date” shall have the meaning specified in Section 3.1.

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

Exhibit A

Page 1

 

“Code” shall mean the Internal Revenue Code of 1986, as amended.

“Competitive Activity” shall have the meaning specified in Section 6.7(b).

“Confidentiality Agreement” means that Mutual Non-Disclosure Agreement by and between
Seller and Purchaser dated January 8, 2010.

“Consent” shall mean any approval, consent, ratification, permission, waiver or
authorization (including any Governmental Approval).

“Contract” shall mean any legally binding agreement, contract, consensual obligation,
promise, understanding, arrangement, commitment or undertaking of any nature (whether written or
oral and whether express or implied).

“Copyrights” shall mean all copyrights, including in and to works of authorship and all
other rights corresponding thereto throughout the world, whether published or unpublished,
including rights to prepare, reproduce, perform, display and distribute copyrighted works and
copies, compilations and derivative works thereof.

“Core System Software” or “CSS” means the first software program or set of software
programs started by the central processing hardware of a computing device, which program(s) is/are
responsible for initializing and managing the resources of such device including, but not limited
to coordinating the memory, processors, timers and input/output peripherals of such computing
device, loading an operating system on such device, and assisting such operating system with
auxiliary functions and chipset features.

[***]

“CSS and Tools License” shall have the meaning specified in Section 3.2(i).

“Damages” shall mean and include any loss, damage, injury, decline in value, Liability,
claim, demand, settlement, judgment, award, fine, penalty, Tax, fee (including any legal fee,
accounting fee, expert fee or advisory fee), charge, cost (including any cost of investigation) or
expense of any nature.

“Docket” shall mean Seller’s or its agents’ list or other means of tracking information
relating to the prosecution or maintenance of the Patents throughout the world, including, without
limitation, the names, addresses, email addresses, and phone numbers of prosecution counsel and
agents, and information relating to deadlines, payments, and filings, which list or other means of
tracking information is current as of the Closing Date.

“Employee” shall mean and each current employee of Seller who performs services primarily
related to the Business (collectively, the “Employees” and individually, an
“Employee”) (including any Employee who is on a leave of absence).

“Employee Benefit Plan” shall mean each “employee benefit plan” within the meaning of
Section 3(3) of ERISA and each other plan, program, policy, practice, contract, agreement or

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

Exhibit A

Page 2

 

other arrangement (whether written or oral) providing compensation or other benefits to any current
or former director, officer, employee, consultant or other service provider (or to any dependent or
beneficiary thereof) of Seller or any ERISA Affiliate, which is now, or was at any time, entered
into, maintained, sponsored or contributed to by Seller or any ERISA Affiliate or under which
Seller or any ERISA Affiliate has or may have any obligation or liability, whether actual or
contingent, including, without limitation, all deferred compensation, profit sharing, incentive,
bonus, employment, consulting, retention, severance, termination pay, performance awards, stock or
stock-related awards, fringe benefits, welfare, retirement, pension, savings, vacation, holiday,
medical, disability, life, accident, fringe benefit, welfare or other employee benefit plan,
program, practice, contract agreement, arrangement, or remuneration of any kind, whether formal or
informal, funded or unfunded.

“Encumbrance” shall mean any lien, pledge, hypothecation, charge, mortgage, security
interest, encumbrance, equitable interest, claim, preference, right of possession, lease, tenancy,
license, encroachment, covenant, infringement, interference, Order, proxy, option, right of first
refusal, preemptive right, community property interest, reservation, limitation, impairment,
imperfection of title, condition or restriction of any nature (including any restriction on the
voting of any security, any restriction on the transfer of any security or other asset, any
restriction on the receipt of any income derived from any asset, any restriction on the use of any
asset and any restriction on the possession, exercise or transfer of any other attribute of
ownership of any asset). For the purposes of clarity, it is understood that neither a covenant not
to sue nor a non-exclusive license with respect to Intellectual Property is within the foregoing
definition of Encumbrance.

“Entity” shall mean any corporation (including any non-profit corporation), general
partnership, limited partnership, limited liability partnership, joint venture, estate, trust or
company (including any limited liability company or joint stock company).

“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, and the
regulations promulgated and the rulings thereunder.

“ERISA Affiliate” shall mean any entity which is (or at any relevant time was) a member of
a “controlled group of corporations” with, under “common control” with, a member of an “affiliated
service group” with, or is otherwise required to be treated as a single employer with, Seller under
Section 414(b), (c), (m) or (o) of the Code.

“Excluded Assets” shall have the meaning specified in Section 1.2.

“Excluded Liabilities” shall have the meaning specified in Section 1.4.

“General Assignment and Bill of Sale” shall have the meaning specified in Section
3.2(a).

“Governmental Approval” shall mean any: (a) permit, license, certificate, concession,
approval, consent, ratification, permission, clearance, confirmation, exemption, waiver, franchise,
or authorization issued, granted, given or otherwise made available by or under the authority of
any

Exhibit A

Page 3

 

Governmental Authority or pursuant to any Legal Requirement; or (b) right under any Contract with
any Governmental Authority.

“Governmental Authority” shall mean any: (a) body of government having jurisdiction over a
nation, principality, state, commonwealth, province, territory, county, municipality, district or
other jurisdiction of any nature; (b) federal, state, local, municipal, foreign or other
government; (c) governmental or quasi governmental authority of any nature (including any
governmental division, subdivision, department, agency, bureau, branch, office, commission,
council, board, instrumentality, officer, official, representative, organization, unit, body or
Entity and any court or other tribunal); (d) multinational organization or body; or (e) individual,
Entity or body exercising, or entitled to exercise, any executive, legislative, judicial,
administrative, regulatory, police, military or taxing authority or power of any nature.

“Governmental Consent” shall have the meaning specified in Section 4.2(b).

“Government Contract” means the agreement between Seller and the Government Entity entered
into in July 2008 and scheduled to expire upon Project Completion on July 16, 2010, which agreement
includes terms and conditions for the licensing, support and maintenance and non-recurring
engineering services for a customized product developed by Seller for the Government Entity that
incorporates certain Transferred Intellectual Property with other Seller Intellectual Property.

“Government Contract License” shall have the meaning specified in Section 3.2(k).

“Government Contract Source Code” means the human readable software contained in the
Purchased Assets delivered to Purchaser under this Agreement, and modifications and derivatives
thereof developed by Seller in connection with the Government Contract.

“Government Entity” means the United States government entity that is party to the
Government Contract with Seller.

“Indemnification Cap” shall have the meaning specified in Section 8.6(a).

“Indemnified Party” shall have the meaning specified in Section 8.4(a).

“Indemnifying Party” shall have the meaning specified in Section 8.4(a).

“In-Licenses” shall have the meaning specified in Section 4.10(d).

“Intellectual Property” shall mean all U.S. and foreign (i) patents, patent applications,
patent disclosures, and all related provisionals, continuations, continuations-in-part,
divisionals, renewals, reissues, re-examinations, substitutions, and extensions thereof, (ii)
trademarks, service marks, trade names, domain names, logos, slogans, trade dress, and other
similar designations of source or origin, together with the goodwill symbolized by any of the
foregoing, (iii) copyrights and copyrightable subject matter (iv) rights of publicity, (v) moral
rights and rights of attribution and integrity, (v) computer programs (whether in Source Code,
Object Code, or other form), databases, compilations and data, technology supporting the foregoing,
and all documentation,

Exhibit A

Page 4

 

including user manuals and training materials, related to any of the foregoing, (vi) trade secrets
and all confidential information, know-how, inventions, proprietary processes, formulae, models,
and methodologies (“Trade Secrets”), (vii) Internet domain name registrations, Internet and
World Wide Web URLs or addresses, (viii) all rights in the foregoing and in other similar
intangible assets, (ix) all applications and registrations for the foregoing, and (x) all rights
and remedies against infringement, misappropriation, or other violation thereof.

“IP Licenses” shall have the meaning specified in Section 4.10(e).

“IRS” means the Internal Revenue Service.

“Knowledge” An individual shall be deemed to have “Knowledge” of a particular fact or other
matter if: (i) such individual is actually aware of such fact or other matter or (ii) (except when
Knowledge is stated to be “actual Knowledge”) such individual would be reasonably expected to be
aware of such fact or other matter in the ordinary and usual course of the performance of their
professional and employment responsibilities. Seller and Purchaser shall be deemed to have
“Knowledge” of a particular fact or other matter if any of their respective officers has Knowledge
of such fact or other matter as provided in the foregoing sentence.

“Legal Requirement” shall mean any federal, state, provincial, local, municipal, foreign or
other law, statute, legislation, constitution, principle of common law, resolution, ordinance,
code, Order, edict, decree, proclamation, treaty, convention, rule, regulation, permit, ruling,
directive, pronouncement, requirement (licensing or otherwise), specification, determination,
decision, opinion or interpretation that is, has been or may in the future be issued, enacted,
adopted, passed, approved, promulgated, made, implemented or otherwise put into effect by or under
the authority of any Governmental Authority.

“Liability” shall mean any debt, obligation, duty or liability of any nature (including any
unknown, undisclosed, unmatured, unaccrued, unasserted, contingent, indirect, conditional, implied,
vicarious, derivative, joint, several or secondary liability).

“Licensed-Back Object Code” shall have the meaning specified in Section
6.14(b).

“Licensed-Back Source Code” shall have the meaning specified in Section 6.14(a).

“Licensed Intellectual Property” shall mean all Intellectual Property owned by Seller as of
the Closing Date that is both (i) necessary for the conduct of the Business; and (ii) not
Transferred Intellectual Property, including the software and code licensed to Purchaser under
Section 6.13 and the Patents licensed to Purchaser under the Patent License; provided,
however, in no event will Licensed Intellectual Property be deemed to include the software or other
items licensed to Purchaser under the CSS and Tools License.

“Licensed Object Code” shall have the meaning specified in Section 6.13(b).

“Licensed Source Code” shall have the meaning specified in Section 6.13(a).

Exhibit A

Page 5

 

“Material Adverse Effect” means (i) with respect to Purchaser, any event, change or effect
(each, an “Effect” that, when taken individually or together with all other adverse
Effects, is or is reasonably likely (a) to be materially adverse to the condition (financial or
otherwise), properties, assets, liabilities, business, operations or results of operations of
Purchaser or its subsidiaries, taken as a whole or (b) to prevent or materially delay consummation
of the Transaction or otherwise to prevent Purchaser from performing its obligations in all
material respects under this Agreement; and (ii) any Effect that, when taken individually or
together with all other adverse Effects, is or is reasonably likely (a) to be materially adverse to
the Purchased Assets, taken as a whole, or (b) to prevent or materially delay consummation of the
Transaction or otherwise to prevent Seller from performing its obligations in material respects
under this Agreement; provided, however, that in no event shall any of the following be deemed,
either alone or in combination, to constitute a Material Adverse Effect, nor shall any of the
following be taken into account in determining whether there has been a Material Adverse Effect:
(A) any Effect that is the result of general market or political factors or economic factors
affecting the economy as a whole (so long as the Purchased Assets are not disproportionately
affected thereby), (B) any Effect that is the result of factors generally affecting the industry or
specific markets in which the Business operates (so long as the Purchased Assets are not
disproportionately affected thereby), or (C) any Effect arising out of or resulting from actions
contemplated by the parties hereto in connection with this Agreement or that is attributable to the
announcement, performance of this Agreement or the pendency of the Transaction (including a loss of
customers or employees).

“Material Contracts” shall have the meaning specified in Section 4.8(a).

“Non-Compete Period” shall have the meaning specified in Section 6.7(b).

“Object Code” means the binary, machine-readable and executable form of a software program.

“Open Source Software” means any computer software or software component that is
distributed as “open source software” (software distributed under any license approved by the Open
Source Initiative as set forth in www.opensource.org) or “free software” (as defined by the
Free Software Foundation) or under similar licensing or distribution terms. Open Source Software
includes software code that is licensed under the GNU General Public License (GPL), the GNU
Library/Lesser General Public License (LGPL), the Mozilla Public License (MPL), the Common Public
License (CPL), the Apache License, the BSD License, the Artistic License, the Netscape Public
License, or the Common Development and Distribution License (CDDL).

“Order” shall mean any: (a) temporary, preliminary or permanent order, judgment,
injunction, edict, decree, ruling, pronouncement, determination, decision, opinion, verdict,
sentence, stipulation, subpoena, writ or award that is or has been issued, made, entered, rendered
or otherwise put into effect by or under the authority of any court, administrative agency or other
Governmental Authority or any arbitrator or arbitration panel; or (b) Contract with any
Governmental Authority that is or has been entered into in connection with any Proceeding.

“Out-Licenses” shall have the meaning specified in Section 4.10(e).

“Patent Assignment” shall have the meaning specified in Section 3.2(d).

Exhibit A

Page 6

 

“Patents” shall mean all United States and foreign patents and applications therefor and
all reissues, divisionals, re-examinations, renewals, extensions, provisionals, continuations and
continuations-in-part thereof.

“Patent Documentation” shall mean the following: (i) a copy of the patent application, as
filed; (ii) if unpublished, a copy of the filing receipt and the non-publication requests, if
available; (iii) the original assignment agreement(s) from the inventors and/or prior owners to
Seller or any of its Subsidiaries; (iv) the Docket; (v) all available conception and reduction to
practice materials in Phoenix’s possession (or Phoenix’s patent counsel’s possession); (vi)
evidence of foreign filing license (or denial thereof); (vii) a copy of each relevant Out-License;
and (viii) the Prosecution History Files.

“Patent License” shall have the meaning specified in Section 3.2(h).

“Persistence” or “Persistent” means, with respect to products and services, [***].

“Person” shall mean any individual, Entity or Governmental Authority.

“Post-Closing Period” shall mean any taxable period beginning after the Closing Date and
that portion of any Straddle Period beginning after the Closing Date.

“Pre-Closing Period” shall mean any taxable period ending on or before the Closing Date and
that portion of any Straddle Period ending on the Closing Date.

“Proceeding” shall mean any action, suit, litigation, arbitration, proceeding (including
any civil, criminal, administrative, investigative or appellate proceeding), prosecution, audit or
examination that is or has been commenced, brought, conducted or heard at law or in equity or
before any Governmental Authority or any arbitrator or arbitration panel.

“Project Completion” shall mean Seller completing its project obligations and services
under the Government Contract, and the Government Entity accepting and approving such project
obligations and services.

“Property Taxes” shall mean all real property Taxes, personal property Taxes and similar ad
valorem Taxes.

“Prosecution History Files” shall mean all files, documents and tangible things, as those
terms have been interpreted pursuant to rules and laws governing the production of documents and
things, constituting, comprising or relating to the investigation, evaluation, preparation,
prosecution, maintenance, defense, filing, issuance, registration, assertion or enforcement of the
Patents.

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

Exhibit A

Page 7

 

“Proximity-based Anti-Theft Products and Services” means [***].

“Purchase Price” shall have the meaning specified in Section 2.1.

“Purchased Assets” shall have the meaning specified in Section 1.1.

“Purchaser” shall mean Absolute Software Corporation, a British Columbia corporation.

“Purchaser Affiliate” shall have the meaning specified in Section 1.1.

“Purchaser Fundamental Rep” shall have the meaning specified in Section 8.1(a).

“Purchaser Indemnified Parties” shall have the meaning specified in Section 8.2(a).

“Receivables” shall have the meaning specified in Section 1.2(h).

“Registered Intellectual Property” shall mean all United States, international and foreign:
(i) Patents, including applications therefor; (ii) registered Trademarks, applications to register
Trademarks, including intent-to-use applications, or other registrations or applications related to
Trademarks; (iii) Copyright registrations and applications to register Copyrights; (iv) Mask Work
registrations and applications to register Mask Works; and (v) any other Intellectual Property that
is the subject of an application, certificate, filing, registration or other document issued by,
filed with, or recorded by, any state, government or other public legal authority, in each case (i)
through (v) above, that is at any time used exclusively in the Business.

“Representatives” shall mean officers, directors, employees, attorneys, accountants,
advisors, agents, distributors, licensees, shareholders, subsidiaries and lenders of a party. In
addition, all Affiliates of Seller shall be deemed to be “Representatives” of Seller.

“Seller” shall mean Phoenix Technologies Ltd., a Delaware corporation.

“Seller Contracts” shall have the meaning specified in Section 6.11.

“Seller Disclosure Schedule” shall have the meaning specified in Article 4.

“Seller Fundamental Rep” shall have the meaning specified in Section 8.1(a).

“Seller Indemnified Parties” shall have the meaning specified in Section 8.2(b).

“Seller Products and Services” shall have the meaning specified in the Recitals.

“Seller Registered Intellectual Property” means the Registered Intellectual Property listed
on Schedules 1.1(a) and 3.2(h).

“Seller Sale” shall have the meaning set forth in Section 6.7(d).

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

Exhibit A

Page 8

 

“Source Code” means the human readable form of a software program.

“Straddle Period” shall mean any taxable period beginning before or on and ending
after the Closing Date.

“Subsidiary” shall mean any corporation, partnership, limited liability company or other
entity with respect to which a specified Person (or one or more Subsidiaries thereof) owns a
majority of the common stock, partnership interests or other equity interests, has the power to
vote or direct the voting of sufficient securities to elect a majority of the directors or similar
governing body, or otherwise has the power to direct its business and policies.

“Support and Maintenance Services” means, following the Project Completion and the
expiration of the Government Contract, any ongoing support and maintenance services that are
required to be provided to the Government Entity in connection with the Government Contract.

“Support Services Agreement” shall have the meaning specified in Section 3.2(b).

“Survival Date” shall have the meaning specified in Section 8.1(a).

“Surviving Reps” shall have the meaning specified in Section 8.1(a).

“Tax” (and, with correlative meaning, “Taxes” and “Taxable”) means any net income,
alternative or add-on minimum tax, gross income, gross receipts, sales, use, ad valorem, transfer,
franchise, profits, license, withholding, payroll, employment, excise, severance, stamp,
occupation, premium, property, environmental or windfall profit tax, custom, duty or other tax,
governmental fee or other assessment or charge of any kind whatsoever, together with any interest
or any penalty, addition to tax or additional amount and any interest on such penalty, addition to
tax or additional amount, imposed by any Tax Authority, whether disputed or not.

“Tax Authority” means any Governmental Authority responsible for the imposition, assessment
or collection of any Tax (domestic or foreign).

“Tax Return” shall mean any return, information return, report, claim for refund,
statement, declaration, notice, certificate or other document that is or has been filed with or
submitted to, or required to be filed with or submitted to, any Governmental Authority in
connection with the determination, assessment, collection or payment of any Tax or in connection
with the administration, implementation or enforcement of or compliance with any Legal Requirement
related to any Tax, including any schedule or attachment thereto and including any amendment
thereof.

“Termination Notices” shall have the meaning specified in Section 6.11.

“Third-Party Claim” shall have the meaning specified in Section 8.4(c).

“Trade Secrets” shall mean all trade secrets rights under applicable law and other rights
in know-how and confidential or proprietary information, processing, manufacturing or marketing
information, including new developments, inventions, processes, ideas or other proprietary
information that provide Seller with advantages over competitors who do not know or use it and

Exhibit A

Page 9

 

documentation thereof (including related papers, blueprints, drawings, chemical compositions,
formulae, diaries, notebooks, specifications, designs, methods of manufacture and data processing
software, compilations of information).

“Trademarks” shall mean any and all trademarks, service marks, logos, trade names,
corporate names, Internet domain names and addresses, URLs and general-use e-mail addresses.

“Transaction” shall mean, collectively, the transactions contemplated by this Agreement.

“Transaction Agreements” shall mean this Agreement and the Exhibits.

“Transferred Intellectual Property” shall have the meaning specified in Section
1.1(a).

“Transferred Patents” means the Patents listed on Schedule 1.1(a).

“Transfer Taxes” shall mean all federal, state, local or foreign sales, use, transfer, real
property transfer, mortgage recording, stamp duty, value-added or similar Taxes that may be imposed
in connection with the transfer of Purchased Assets or assumption of Assumed Liabilities, together
with any interest, additions to Tax or penalties with respect thereto and any interest in respect
of such additions to Tax or penalties.

Exhibit A

Page 10

 

Exhibit 3.2(k)exv10w2

EXHIBIT 10.2

NOTE: Portions of this Exhibit are the subject of a Confidential Treatment Request by the
Registrant to the Securities and Exchange Commission (the “Commission”). Such portions have been
redacted and are marked with a “[***]” in the place of the redacted language. The redacted
information has been filed separately with the Commission.

 

ASSET PURCHASE AGREEMENT

between

HEWLETT-PACKARD COMPANY,

as the Buyer

and

PHOENIX TECHNOLOGIES LTD.,

as the Seller

Dated as of June 4, 2010

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	Section 1.1 Certain Defined Terms
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II PURCHASE AND SALE
	 	 	11	 
	 
	 	 	 	 
	Section 2.1 Purchase and Sale of Assets
	 	 	11	 
	Section 2.2 Excluded Assets
	 	 	12	 
	Section 2.3 Assumed Liabilities
	 	 	13	 
	Section 2.4 Excluded Liabilities
	 	 	13	 
	Section 2.5 Consents and Waivers; Further Assurances
	 	 	14	 
	Section 2.6 Consideration
	 	 	14	 
	Section 2.7 Closing
	 	 	15	 
	 
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE SELLER
	 	 	16	 
	 
	 	 	 	 
	Section 3.1 Organization and Qualification
	 	 	17	 
	Section 3.2 Authority
	 	 	17	 
	Section 3.3 No Conflict; Required Filings and Consents
	 	 	17	 
	Section 3.4 Title to Assets; Sufficiency of Assets
	 	 	18	 
	Section 3.5 Absence of Certain Changes or Events
	 	 	18	 
	Section 3.6 Compliance with Law; Permits
	 	 	18	 
	Section 3.7 Litigation
	 	 	19	 
	Section 3.8 Employees
	 	 	19	 
	Section 3.9 Labor and Employment Matters
	 	 	20	 
	Section 3.10 Intellectual Property
	 	 	21	 
	Section 3.11 Taxes
	 	 	25	 
	Section 3.12 Material Contracts
	 	 	26	 
	Section 3.13 Offered Employee Non-Competition Agreements
	 	 	27	 
	Section 3.14 Warranties
	 	 	27	 
	Section 3.15 Conduct of Business
	 	 	27	 
	Section 3.16 Brokers
	 	 	27	 
	Section 3.17
[***]
	 	 	27	 
	Section 3.18 Disclosure
	 	 	28	 
	 
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE BUYER
	 	 	28	 
	 
	 	 	 	 
	Section 4.1 Organization
	 	 	28	 
	Section 4.2 Authority
	 	 	28	 
	Section 4.3 No Conflict; Required Filings and Consents
	 	 	28	 

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

i 

 

	 	 	 	 	 
	 	 	Page
	ARTICLE V COVENANTS
	 	 	29	 
	 
	 	 	 	 
	Section 5.1 Conduct of Business Prior to the Closing
	 	 	29	 
	Section 5.2 Covenants Regarding Information
	 	 	30	 
	Section 5.3 Exclusivity
	 	 	31	 
	Section 5.4 Non-Competition; Non-Solicitation
	 	 	32	 
	Section 5.5 Notification of Certain Matters; Supplements to Disclosure Schedules
	 	 	35	 
	Section 5.6 Payment of Liabilities
	 	 	36	 
	Section 5.7 Employee Matters
	 	 	36	 
	Section 5.8 Confidentiality
	 	 	39	 
	Section 5.9 The Trademark Opposition Settlement Agreement
	 	 	40	 
	Section 5.10 Consents and Filings
	 	 	40	 
	Section 5.11 Public Announcements
	 	 	40	 
	Section 5.12 [***]
	 	 	41	 
	Section 5.13 [***]
	 	 	41	 
	 
	 	 	 	 
	ARTICLE VI TAX MATTERS
	 	 	41	 
	 
	 	 	 	 
	Section 6.1 Transfer Taxes
	 	 	41	 
	Section 6.2 Purchase Price Allocation
	 	 	41	 
	Section 6.3 Prorations
	 	 	42	 
	Section 6.4 Tax Clearance Certificate
	 	 	42	 
	 
	 	 	 	 
	ARTICLE VII CONDITIONS TO CLOSING
	 	 	42	 
	 
	 	 	 	 
	Section 7.1 General Conditions
	 	 	42	 
	Section 7.2 Conditions to Obligations of the Seller
	 	 	43	 
	Section 7.3 Conditions to Obligations of the Buyer
	 	 	43	 
	 
	 	 	 	 
	ARTICLE VIII INDEMNIFICATION
	 	 	45	 
	 
	 	 	 	 
	Section 8.1 Survival of Representations and Warranties
	 	 	45	 
	Section 8.2 Indemnification by the Seller
	 	 	45	 
	Section 8.3 Indemnification by the Buyer
	 	 	46	 
	Section 8.4 Limitations
	 	 	47	 
	Section 8.5 Materiality; Knowledge; No Right of Contribution
	 	 	47	 
	Section 8.6 Knowledge of the Buyer
	 	 	48	 
	Section 8.7 Indemnification Procedure for Third Party Claims
	 	 	48	 
	Section 8.8 Indemnification Procedure for Non Third Party Claims
	 	 	48	 
	Section 8.9 Remedies Not Affected by Investigation, Disclosure or Knowledge
	 	 	49	 
	Section 8.10 Effect on Purchase Price
	 	 	49	 
	Section 8.11 Escrow Fund
	 	 	49	 
	 
	 	 	 	 
	ARTICLE IX TERMINATION
	 	 	49	 
	 
	 	 	 	 
	Section 9.1 Termination
	 	 	49	 

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

ii 

 

	 	 	 	 	 
	 	 	Page
	Section 9.2 Effect of Termination
	 	 	50	 
	 
	 	 	 	 
	ARTICLE X GENERAL PROVISIONS
	 	 	51	 
	 
	 	 	 	 
	Section 10.1 Fees and Expenses
	 	 	51	 
	Section 10.2 Amendment and Modification
	 	 	51	 
	Section 10.3 Waiver
	 	 	51	 
	Section 10.4 Notices
	 	 	51	 
	Section 10.5 Interpretation
	 	 	52	 
	Section 10.6 Entire Agreement
	 	 	52	 
	Section 10.7 No Third-Party Beneficiaries
	 	 	53	 
	Section 10.8 Governing Law
	 	 	53	 
	Section 10.9 Submission to Jurisdiction
	 	 	53	 
	Section 10.10 Assignment; Successors
	 	 	53	 
	Section 10.11 Enforcement
	 	 	54	 
	Section 10.12 Currency
	 	 	54	 
	Section 10.13 Severability
	 	 	54	 
	Section 10.14 Waiver of Jury Trial
	 	 	54	 
	Section 10.15 Counterparts
	 	 	54	 
	Section 10.16 Facsimile Signature
	 	 	54	 
	Section 10.17 Time of Essence
	 	 	54	 
	Section 10.18 No Presumption Against Drafting Party
	 	 	54	 

ANNEXES

	 	 	 

	Annex A

	 	Transferred Software
	Annex B

	 	Excluded Employees
	Annex C

	 	Buyer’s Technical Representatives
	Annex D

	 	Optional Employees

EXHIBITS

	 	 	 

	Exhibit A

	 	Form of Bill of Sale
	Exhibit B

	 	Form of Assignment and Assumption Agreement
	Exhibit C

	 	Form of Buyer License Agreement
	Exhibit D

	 	Form of Seller License Agreement
	Exhibit E

	 	Short Form Patent Assignment Agreement
	Exhibit F

	 	Short Form Trademark Assignment Agreement
	Exhibit G

	 	Form of Escrow Agreement
	Exhibit H

	 	Form of InfoObjects Side Letter
	Exhibit I

	 	[***]

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

iii

 

ASSET PURCHASE AGREEMENT

     ASSET PURCHASE AGREEMENT, dated as of June 4, 2010 (this “Agreement”), between
Hewlett-Packard Company, a Delaware corporation (the “Buyer”), and Phoenix Technologies
Ltd., a Delaware corporation (the “Seller”).

RECITALS

     A. The Seller is engaged in certain software development, marketing, sales, maintenance and
support activities related to the Transferred Software and the provision of related services (the
“Business”).

     B. The Seller wishes to sell to the Buyer, and the Buyer wishes to purchase from the Seller,
the Purchased Assets and in connection therewith the Buyer is willing to assume certain liabilities
and obligations of the Seller relating thereto, all upon the terms and subject to the conditions
set forth herein.

AGREEMENT

     In consideration of the foregoing and the mutual covenants and agreements herein contained,
and intending to be legally bound hereby, the parties agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.1 Certain Defined Terms. For purposes of this Agreement:

          “Accounts Receivables” means all accounts and notes receivable (whether current or
noncurrent), refunds, deposits, prepayments or prepaid expenses of the Business.

          “Action” means any claim, action, suit, inquiry, proceeding, audit or investigation by
or before any Governmental Authority, or any other arbitration, mediation or similar proceeding.

          “Affiliate” means, with respect to any Person, any other Person that directly, or
indirectly through one or more intermediaries, controls, is controlled by, or is under common
control with, such first Person.

          “Ancillary Agreements” means the Bill of Sale, the Assignment and Assumption
Agreement, the Buyer License Agreement, the Seller License Agreement, the Short Form Patent
Assignment Agreement, the Short Form Trademark Assignment Agreement, the Escrow Agreement, the
Employment Agreements and all other agreements, documents and instruments required to be delivered
by any party pursuant to this Agreement, and any other agreements, documents or instruments entered
into at or prior to Closing in connection with this Agreement or the transactions contemplated
hereby.

1

 

          “Benefit Arrangement” means any employment, consulting, severance or other similar
contract, arrangement or policy and each plan, arrangement (written or oral), program, agreement or
commitment providing for insurance coverage (including any self-insured arrangements), workers’
compensation, disability benefits, supplemental unemployment benefits, vacation benefits,
retirement benefits, life, health, disability or accident benefits (including any “voluntary
employees’ beneficiary association” as defined in Section 501(c)(9) of the Code providing for the
same or other benefits) or for deferred compensation, profit-sharing bonuses, stock options, stock
appreciation rights, stock purchases or other forms of incentive compensation or post-retirement
insurance, compensation or benefits that (i) is not a Welfare Plan, Pension Plan or Multiemployer
Plan, (ii) is entered into, maintained, contributed to or required to be contributed to, as the
case may be, by the Seller or any of its ERISA Affiliates or under which the Seller or any of its
ERISA Affiliates may incur any liability and (iii) covers or has covered any employee or former
employee of the Seller or any of its ERISA Affiliates (with respect to their relationship with such
entities).

          “Business Day” means any day that is not a Saturday, a Sunday or other day on which
banks are required or authorized by Law to be closed in the City of New York.

          “Business Employee” means the employees of the Seller primarily engaged as of the date
of this Agreement in work relating to the Business, other than Excluded Employees.

          “Business Records” means all books, records, ledgers and files or other similar
information of the Seller (in any form or medium) related to, used or held for use solely in
connection with the Business or the Purchased Assets, including all client lists, vendor lists,
correspondence, mailing lists, revenue records, invoices, advertising materials, brochures, records
of operation, standard forms of documents, manuals of operations or business procedures,
photographs, blueprints, research files and materials, data books, Intellectual Property
disclosures and information, media materials and plates, accounting records and litigation files
(but excluding the organization documents, minute and stock record books and corporate seal of the
Seller) in each case to the extent such items exist and are in the possession or control of the
Seller.

          “Collateral Materials” means all collateral materials, manuals, promotional materials,
sales materials, display materials and product information materials, and all books and records,
that are, in all material respects, exclusively related to the Transferred Software and that are
listed on Schedule 2.1(a)(1) and any Copyrights in and to the Collateral Materials.

          “Contract” means any contract, agreement, arrangement or understanding, whether
written or oral and whether express or implied.

          “control,” including the terms “controlled by” and “under common control
with,” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the ownership of voting
securities, as trustee or executor, as general partner or managing member, by

2

 

Contract or otherwise, including the ownership, directly or indirectly, of securities having
the power to elect a majority of the board of directors or similar body governing the affairs of
such Person.

          “Employee Plans” means all Benefit Arrangements, Multiemployer Plans, Pension Plans
and Welfare Plans.

          “Encumbrance” means any charge, claim, limitation, condition, equitable interest,
mortgage, lien, option, pledge, security interest, easement, encroachment, right of first refusal,
adverse claim or restriction of any kind, including any restriction on or transfer or other
assignment, as security or otherwise, of or relating to use, quiet enjoyment, voting, transfer,
receipt of income or exercise of any other attribute of ownership. For the purposes of clarity, it
is understood that any Encumbrance in favor of the Buyer is not within the foregoing definition of
Encumbrance.

          “ERISA Affiliate” means any Person that is (or at any relevant time was) a member of a
“controlled group of corporations” with or under “common control” with the Seller as defined in
Section 414(b) or (c) of the Code or that is otherwise (or at any relevant time was) required to be
treated, together with the Seller, or as the case may be, as a single employer under Sections
414(m) or (o) of the Code.

          “Escrow Agent” means a bank or trust company selected by the Buyer and reasonably
acceptable to the Seller to act as the escrow agent in connection with this Agreement and the
Escrow Agreement.

          “Escrow Amount” means Two Million Dollars ($2,000,000).

          “Escrow Period” means the term of the Buyer License Agreement but in no case less than
[***] following the Closing.

          “Employee Offer Letters” means, collectively, the employment offer letters to be
presented by the Buyer to the Offered Employees.

          “Excluded Employees” means those employees of the Seller listed on Annex B.

          “GAAP” means U.S. generally accepted accounting principles in effect on the date on
which they are applied pursuant to this Agreement, applied consistently throughout the relevant
periods.

          “Governmental Authority” means any United States or non-United States federal,
national, supranational, state, provincial, local or similar government, governmental, regulatory
or administrative authority, branch, agency or commission or any court, tribunal, or arbitral or
judicial body (including any grand jury).

          “Inbound Licenses” means all Contracts under which the Seller uses or has the
right to use any Third Party Licensed Intellectual Property, exclusive of any Retained Licenses, as
set forth on Schedule 3.12(a)(ix)(1), and exclusive of any non-exclusive

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

3

 

licenses to commercially available off-the-shelf software entered into in the ordinary course.

          “Intellectual Property” means any or all of the following: (i) proprietary inventions
(whether patentable or not), invention disclosures, industrial designs, improvements, trade
secrets, proprietary information, know how, technology, technical data and customer lists, and all
documentation relating to any of the foregoing; (ii) business, technical and know-how information,
non-public information, and confidential information including databases and data collections and
all rights therein; (iii) works of authorship (including computer programs, source code, object
code, whether embodied in software, firmware or otherwise), architecture, artwork, logo images,
documentation, files, records, schematics, verilog files, netlists, emulation and simulation
reports, test vectors and hardware development tools; (iv) processes, devices, prototypes,
schematics, bread boards, net lists, mask works, test methodologies and hardware development tools;
(v) logos, trade names, trade dress, trademarks, service marks, World Wide Web addresses, uniform
resource locators and domain names, tools, methods and processes; and (vii) any similar or
equivalent property of any of the foregoing (as applicable)

          “Intellectual Property Rights” means any or all of the following and all worldwide
common law and statutory rights in, arising out of, or associated therewith: (i) patents and
applications therefor and all reissues, divisions, renewals, extensions, provisionals,
continuations and continuations-in-part thereof throughout the world (“Patents”); (ii)
copyrights, copyrights registrations and applications therefor, and all other rights corresponding
thereto throughout the world including moral and economic rights of authors and inventors, however
denominated (“Copyrights”); (iii) industrial designs and any registrations and applications
therefor throughout the world; (iv) trade names, logos, common law trademarks and service marks,
trademark and service mark registrations and applications therefor and all goodwill associated
therewith throughout the world (“Trademarks”); (v) trade secrets (including, those trade
secrets defined in the Uniform Trade Secrets Act and under corresponding foreign statutory and
common law), business, technical and know-how information, non-public information, and confidential
information and rights to limit the use or disclosure thereof by any person; including databases
and data collections and all rights therein (“Trade Secrets”); (vi) mask works, mask work
registrations and applications, and all other rights corresponding thereto throughout the world;
and (vii) any similar or equivalent rights to any of the foregoing (as applicable).

          “Inventory” means all inventory, including raw and packing materials,
work-in-progress, finished goods, supplies, parts and similar items related to, used or held for
use in connection with the Business.

          “Knowledge,” with respect to a party, means the knowledge of any officer or director
of such party and such knowledge as would be imputed to such persons after due inquiry consistent
with customary duties of similarly situated officers and directors.

          “Law” means any statute, law, ordinance, regulation, rule, code, executive order,
treaty, convention, standard, injunction, judgment, decree or order of any Governmental Authority.

4

 

          “Made Available” means all documents and information loaded into the data room
maintained by eRoom.net, no later than three (3) days prior to the date of this Agreement.

          “Material Adverse Effect” means any event, change, circumstance, occurrence, effect or
state of facts that individually or in the aggregate (i) is or could reasonably be expected to be
materially adverse to the business, assets, liabilities, condition (financial or otherwise),
results of operations of the Business, taken as a whole, (ii) has materially impaired, or could
reasonably be expected to impair, the value of the Purchased Assets, taken as a whole, or (iii)
materially impairs the ability of the Seller to consummate, or prevents or materially delays, any
of the transactions contemplated by this Agreement or the Ancillary Agreements or could reasonably
be expected to do so; provided, however, that in no event would any change generally affecting any
of the industries in which the Seller and its Subsidiaries operate, or the economy as a whole,
including, without limitation, any change in commodity prices, be deemed to constitute a “Material
Adverse Effect”.

          “Multiemployer Plan” means any “multiemployer plan,” as defined in Section 4001(a)(3)
of ERISA, (i) that the Seller or any of its ERISA Affiliates maintains, administers, contributes to
or is required to contribute to, or, after September 25, 1980, maintained, administered,
contributed to or was required to contribute to, or under which the Seller or any of its ERISA
Affiliates may incur any liability and (ii) that covers or has covered any employee or former
employee of the Seller or any of its ERISA Affiliates (with respect to their relationship with such
entities) or for which the Seller may be responsible.

          “Offered Optional Employees” means any employees listed on Annex D (“Optional
Employees”) that receive offers of employment from Buyer at any time during the period
beginning as of the date hereof and continuing until the Closing.

          “Outbound Licenses” means all Contracts under which the Seller has licensed to others
the right to use or agreed to transfer to others any of the Seller Owned Intellectual Property,
exclusive of any Retained Licenses, as set forth on Schedule 3.12(a)(ix)(2).

          “Pension Plan” means any “employee pension benefit plan” as defined in Section 3(2) of
ERISA (other than a Multiemployer Plan) (i) that the Seller or any of its ERISA Affiliates
maintains, administers, contributes to or is required to contribute to, or, within the five years
prior to the Closing Date, maintained, administered, contributed to or was required to contribute
to, or under which any such entity may incur any liability and (ii) that covers or has covered any
employee or former employee of the Seller or any of its ERISA Affiliates (with respect to their
relationship with such entities) or for which the Seller may be responsible.

          “Permits” means all permits, licenses, franchises, approvals, certificates, consents,
waivers, concessions, exemptions, orders, registrations, notices or other authorizations issued to,
or required to be obtained or maintained by, the Seller by a

5

 

Governmental Authority with respect to the conduct or operation of the Business as currently
conducted or the ownership or use of the Purchased Assets, and all pending applications therefor
and amendments, modifications and renewals thereof.

          “Person” means an individual, corporation, partnership, limited liability company,
limited liability partnership, syndicate, person, trust, association, organization or other entity,
including any Governmental Authority, and including any successor, by merger or otherwise, of any
of the foregoing.

          “Plan Sponsor” has the meaning set forth in Section 3(16)(B) of ERISA.

          “Policy” means each insurance policy and fidelity bond which covers the Business or
the Seller with respect to the Business.

          “Pre-Closing Tax Period” means any Tax period ending on or before the Closing Date and
that portion of any Straddle Period ending on the Closing Date.

          “Related Party,” with respect to any specified Person, means: (i) any Affiliate of
such specified Person, or any director, executive officer, general partner or managing member of
such Affiliate; (ii) any Person who serves as a director, executive officer, partner, member or in
a similar capacity of such specified Person; (iii) any immediate family member of a Person
described in clause (ii); or (iv) any other Person who holds, individually or together with any
Affiliate of such other Person and any member(s) of such Person’s immediate family, more than 5% of
the outstanding equity or ownership interests of such specified Person.

          “Return” means any return, declaration, report, statement, information statement and
other document required to be filed with respect to Taxes.

          “Rights” means all rights under or in respect of any Seller Owned Intellectual
Property, including all rights to sue and recover damages for past, present and future
infringement, dilution, misappropriation, violation, unlawful imitation or breach thereof, and all
rights of priority and protection of interests therein under the laws of any jurisdiction.

          “Seller Contract” means any Contract primarily related to the Business or the
Purchased Assets to which the Seller is a party, under which the Seller may have any rights or by
which the Seller, the Business or any of the Purchased Assets may be bound.

          “Seller Licensed Intellectual Property” means the Intellectual Property and
Intellectual Property Rights licensed by the Seller to the Buyer under the Seller License
Agreement.

          “Seller Owned Intellectual Property” means all Intellectual Property and Intellectual
Property Rights that are owned by the Seller and which, primarily, relates to, or is used or held
for use in connection with the Seller Products or the Business as presently conducted or as
presently contemplated to be conducted by the Seller, exclusive of any Retained Intellectual
Property.

6

 

          “Seller Source Code” means source code for which the Intellectual Property and
Intellectual Property Rights therein are part of the Seller Owned Intellectual Property.

          “Straddle Period” means any Tax period that includes (but does not end on) the Closing
Date.

          “Subsidiary” means, with respect to any Person, any other Person controlled by such
first Person, directly or indirectly, through one or more intermediaries.

          “Tax Arbitrator” means (i) a nationally recognized accounting firm jointly retained by
the Buyer and the Seller or (ii) if no nationally recognized accounting firm will agree to resolve
the dispute, a Person with expertise in the issues related to the dispute jointly retained by the
Buyer and the Seller.

          “Taxes” means: (i) all federal, state, local, foreign and other net income, gross
income, gross receipts, sales, use, ad valorem, transfer, franchise, profits, registration,
license, lease, service, service use, withholding, payroll, employment, excise, severance, stamp,
occupation, premium, property, windfall profits, customs, duties or other taxes, fees, assessments
or charges of any kind whatsoever, together with any interest and any penalties, additions to tax
or additional amounts with respect thereto; (ii) any liability for payment of amounts described in
clause (i) whether as a result of transferee liability, of being a member of an affiliated,
consolidated, combined or unitary group for any period or otherwise through operation of law; and
(iii) any liability for the payment of amounts described in clauses (i) or (ii) as a result of any
tax sharing, tax indemnity or tax allocation agreement or any other express or implied agreement to
indemnify any other Person.

          “Third Party Licensed Intellectual Property” shall mean all Intellectual Property and
Intellectual Property Rights licensed to the Seller by third parties which relates to, or is used
or held for use in connection with the Seller Products or the Business as presently conducted or as
presently contemplated to be conducted by the Seller.

          “Transferred Software” means the software product developed and marketed by the
Seller, as more fully described on Annex A, including the object code and source code form thereof,
and including any existing alpha or beta versions of any upgrade, updates or new releases thereof
and all technical and customer documentation exclusively relating thereto in all material respects.

          “Welfare Plan” means any “employee welfare benefit plan,” as defined in Section 3(1)
of ERISA, (i) that the Seller or any of its ERISA Affiliates maintains, administers, contributes to
or is required to contribute to, or under which any such entity may incur any liability and (ii)
that covers or has covered any employee or former employee of any such entity (with respect to
their relationship with such entities) or for which any such entity may be responsible.

7

 

TABLE OF DEFINED TERMS

	 	 	 	 	 	 	 
	 	 	Cross Reference	 	 
	Term	 	in Agreement	 	Page
	Accounts Receivables 
	 	Section 1.1	 	 	1	 
	Action 
	 	Section 1.1	 	 	1	 
	Affiliate 
	 	Section 1.1	 	 	1	 
	Agreement 
	 	Preamble	 	 	1	 
	Allocation Statement 
	 	Section 6.2	 	 	41	 
	Ancillary Agreements 
	 	Section 1.1	 	 	1	 
	Assignment and Assumption Agreement 
	 	Section 2.7(b)(ii)	 	 	15	 
	Assumed Contracts 
	 	Section 2.1(b)	 	 	11	 
	Assumed Liabilities 
	 	Section 2.3	 	 	13	 
	Benefit Arrangement 
	 	Section 1.1	 	 	2	 
	Bill of Sale 
	 	Section 2.7(b)(i)	 	 	15	 
	Business Day 
	 	Section 1.1	 	 	2	 
	Business Employee 
	 	Section 1.1	 	 	2	 
	Business 
	 	Recitals	 	 	1	 
	Business Records 
	 	Section 1.1	 	 	2	 
	Buyer 401(k) Plan 
	 	Section 5.7(g)	 	 	38	 
	Buyer License Agreement 
	 	Section 2.7(b)(iii)	 	 	15	 
	Buyer 
	 	Preamble	 	 	1	 
	Buyer Prohibited Employee 
	 	Section 5.4(e)(vii)	 	 	34	 
	Buyer Welfare Plans 
	 	Section 5.7(e)	 	 	37	 
	Closing Date 
	 	Section 2.7(a)	 	 	15	 
	Closing 
	 	Section 2.7(a)	 	 	15	 
	COBRA 
	 	Section 5.7(d)	 	 	37	 
	Collateral Materials 
	 	Section 1.1	 	 	2	 
	Competing Business 
	 	Section 5.4(a)(i)	 	 	32	 
	Confidential Information 
	 	Section 5.8(b)	 	 	39	 
	Confidentiality Agreement 
	 	Section 5.8(a)	 	 	39	 
	Contract 
	 	Section 1.1	 	 	2	 
	control 
	 	Section 1.1	 	 	2	 
	controlled by 
	 	Section 1.1	 	 	2	 
	Copyrights 
	 	Section 1.1	 	 	4	 
	Core Representations 
	 	Section 8.1(a)	 	 	45	 
	[***] 
	 	Section 5.4(e)(x)	 	 	34	 
	[***] 
	 	Section 5.4(e)(xi)	 	 	34	 
	Customer 
	 	Section 5.4(a)(iv)	 	 	33	 
	[***] 
	 	Section 3.7	 	 	19	 
	Disclosure Schedules 
	 	Article III	 	 	16	 
	dollars, or $, or US$ 
	 	Section 10.12	 	 	54	 
	Employee Offer Letters 
	 	Section 1.1	 	 	3	 
	Employee Plans 
	 	Section 1.1	 	 	3	 
	Encumbrance 
	 	Section 1.1	 	 	3	 

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

8

 

TABLE OF DEFINED TERMS

	 	 	 	 	 	 	 
	 	 	Cross Reference	 	 
	Term	 	in Agreement	 	Page
	Enhance 
	 	Section 5.4(e)(iv)	 	 	34	 
	ERISA Affiliate 
	 	Section 1.1	 	 	3	 
	Escrow Agent 
	 	Section 1.1	 	 	3	 
	Escrow Agreement 
	 	Section 2.7(b)(viii)	 	 	15	 
	Escrow Amount 
	 	Section 1.1	 	 	3	 
	Escrow Fund 
	 	Section 8.11	 	 	49	 
	Escrow Period 
	 	Section 1.1	 	 	3	 
	Excluded Assets 
	 	Section 2.2	 	 	12	 
	Excluded Contracts 
	 	Section 2.2(d)	 	 	12	 
	Excluded Employees 
	 	Section 1.1	 	 	3	 
	Excluded Liabilities 
	 	Section 2.4	 	 	13	 
	GAAP 
	 	Section 1.1	 	 	3	 
	Governmental Authority 
	 	Section 1.1	 	 	3	 
	Group Health Plan 
	 	Section 5.7(d)	 	 	37	 
	[***] 
	 	Section 5.4(e)(v)	 	 	34	 
	Inbound Licenses 
	 	Section 1.1	 	 	3	 
	Indemnification Cap 
	 	Section 8.4(b)	 	 	47	 
	Indemnitee 
	 	Section 8.7(a)	 	 	48	 
	Indemnitor 
	 	Section 8.7(a)	 	 	48	 
	Intellectual Property Rights 
	 	Section 1.1	 	 	4	 
	Intellectual Property 
	 	Section 1.1	 	 	4	 
	Inventory 
	 	Section 1.1	 	 	4	 
	Knowledge 
	 	Section 1.1	 	 	4	 
	Law 
	 	Section 1.1	 	 	4	 
	Losses 
	 	Section 8.2	 	 	46	 
	Made Available 
	 	Section 1.1	 	 	5	 
	Material Adverse Effect 
	 	Section 1.1	 	 	5	 
	Material Contracts 
	 	Section 3.12(a)	 	 	26	 
	Multiemployer Plan 
	 	Section 1.1	 	 	5	 
	Non-Compete Period 
	 	Section 5.4(a)	 	 	32	 
	[***] 
	 	Section 5.4(e)(i)	 	 	34	 
	[***] 
	 	Section 5.4(e)(ix)	 	 	34	 
	Notice of Claim 
	 	Section 8.7(a)	 	 	48	 
	Offered Employees 
	 	Section 5.7(b)	 	 	37	 
	Open Source Materials 
	 	Section 3.10(j)	 	 	23	 
	Outbound Licenses 
	 	Section 1.1	 	 	5	 
	Patents 
	 	Section 1.1	 	 	4	 
	PC Client Device 
	 	Section 5.4(e)(iii)	 	 	34	 
	Pension Plan 
	 	Section 1.1	 	 	5	 
	Permits 
	 	Section 1.1	 	 	5	 
	Permits 
	 	Section 3.6(b)	 	 	19	 
	Permitted Encumbrances 
	 	Section 3.4(a)	 	 	18	 

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

9

 

TABLE OF DEFINED TERMS

	 	 	 	 	 	 	 
	 	 	Cross Reference	 	 
	Term	 	in Agreement	 	Page
	Person 
	 	Section 1.1	 	 	6	 
	Plan Sponsor 
	 	Section 1.1	 	 	6	 
	Policy 
	 	Section 1.1	 	 	6	 
	Pre-Closing Tax Period 
	 	Section 1.1	 	 	6	 
	Purchase Price 
	 	Section 2.6	 	 	14	 
	Purchased Assets 
	 	Section 2.1	 	 	11	 
	Related Party 
	 	Section 1.1	 	 	6	 
	Representatives 
	 	Section 5.2(a)	 	 	30	 
	[***] 
	 	Section 5.4(e)(viii)	 	 	34	 
	Retained Intellectual Property 
	 	Section 2.2(b)	 	 	12	 
	Retained Licenses 
	 	Section 2.2(c)	 	 	12	 
	Return 
	 	Section 1.1	 	 	6	 
	Rights 
	 	Section 1.1	 	 	6	 
	Schedule 
	 	Article III	 	 	16	 
	Seller 401(k) Plan 
	 	Section 5.7(g)	 	 	38	 
	[***] 
	 	Section 5.4(e)(ii)	 	 	34	 
	Seller Contract 
	 	Section 1.1	 	 	6	 
	Seller Indemnified Parties 
	 	Section 8.3	 	 	46	 
	Seller Indemnified Party 
	 	Section 8.3	 	 	46	 
	Seller License Agreement 
	 	Section 2.7(b)(iv)	 	 	15	 
	Seller Licensed Intellectual Property 
	 	Section 1.1	 	 	6	 
	Seller Owned Intellectual Property 
	 	Section 1.1	 	 	6	 
	Seller 
	 	Preamble	 	 	1	 
	Seller Products 
	 	Section 3.10(a)	 	 	22	 
	Seller Prohibited Employee 
	 	Section 5.4(e)(vi)	 	 	34	 
	Seller Registered Intellectual Property 
	 	Section 3.10(b)	 	 	22	 
	Seller Source Code 
	 	Section 1.1	 	 	6	 
	Short Form Patent Assignment Agreement 
	 	Section 2.7(b)(v)	 	 	15	 
	Short Form Trademark Assignment Agreement 
	 	Section 2.7(b)(vi)	 	 	15	 
	Straddle Period 
	 	Section 1.1	 	 	7	 
	Subsidiary 
	 	Section 1.1	 	 	7	 
	Tax Arbitrator 
	 	Section 1.1	 	 	7	 
	Tax Clearance Certificate 
	 	Section 6.4	 	 	42	 
	Taxes 
	 	Section 1.1	 	 	7	 
	Third Party Claim 
	 	Section 8.7(a)	 	 	48	 
	Third Party Licensed Intellectual Property 
	 	Section 1.1	 	 	7	 
	Tier 1 Development Team 
	 	Section 5.7(b)	 	 	37	 
	Tier 2 Development Team 
	 	Section 5.7(b)	 	 	37	 
	Trade Secrets 
	 	Section 1.1	 	 	4	 
	Trademarks 
	 	Section 1.1	 	 	4	 
	Transfer Tax 
	 	Section 6.1	 	 	41	 
	Transferred Software 
	 	Section 1.1	 	 	7	 

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

10

 

TABLE OF DEFINED TERMS

	 	 	 	 	 	 	 
	 	 	Cross Reference	 	 
	Term	 	in Agreement	 	Page
	Transferring Employees 
	 	Section 5.7(b)	 	 	37	 
	under common control with 
	 	Section 1.1	 	 	2	 
	[***]
	 	Section 3.17	 	 	27	 
	[***] 
	 	Section 5.13	 	 	41	 
	WARN Act 
	 	Section 3.9(e)	 	 	21	 
	Warranty Losses 
	 	Section 8.4(a)	 	 	47	 
	Welfare Plan 
	 	Section 1.1	 	 	7	 

ARTICLE II

PURCHASE AND SALE

     Section 2.1
Purchase and Sale of Assets. Upon the terms and subject to the
conditions of this Agreement, at the Closing, the Seller shall sell, assign, transfer, convey and
deliver to the Buyer, and the Buyer, in reliance on the representations, warranties and covenants
of the Seller contained herein, shall purchase from the Seller, all of the Seller’s right, title
and interest in and to all assets, properties and rights of every nature, kind and description,
whether tangible or intangible, real, personal or mixed, accrued or contingent (including
goodwill), wherever located and whether now existing or hereafter acquired prior to the Closing
Date, exclusively related to, used or held for use in connection with the Business, including all
assets related to the Phoenix ‘Hyperspace’ product, in each case as they shall exist on the Closing
Date, whether or not reflected on or specifically referred to in the Schedules attached hereto,
other than the Excluded Assets (collectively, the “Purchased Assets”), in each case free
and clear of any Encumbrances other than Permitted Encumbrances, including, without limitation:

          (a) the
Seller Owned Intellectual Property, Inbound Licenses, Transferred Software, any
Collateral Materials listed on Schedule 2.1(a)(1), domain names listed on Schedule
2.1(a)(2), Seller Products and any other assets listed on Schedule 2.1(a)(3);

          (b) the Contracts listed on Schedule 2.1(b) (the “Assumed Contracts”);

          (c) all Permits used in the Business and not otherwise required or used by the Seller outside
of the Business and transferable to the Buyer;

          (d) all lists of current customers, suppliers, resellers and material vendors of the Business
and all maintenance, service and support records for such current customers;

          (e) all Rights;

          (f) all confidentiality, nondisclosure and assignment of invention agreements entered into by
the Seller with any Person other than current or former

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

11

 

employees of the Business and exclusively
relating to the Purchased Assets or the Assumed Liabilities;

          (g) all marketing documents, business records, customer maintenance, service and support
records, programmer logs and correspondence, in whatever form (electronic, written or otherwise)
related exclusively to the Business, the Purchased Assets or the Assumed Liabilities; provided that
such books and records shall expressly not include documents, materials or information which are
subject to attorney-client, work product or similar privilege or which were prepared in connection
with the transactions contemplated by this Agreement or the sale of the Business, the Purchased
Assets or the Assumed Liabilities;

          (h) all of the Seller’s goodwill in, and going concern value of, the Business and the
Purchased Assets.

     Section 2.2 Excluded Assets. Notwithstanding anything contained in Section 2.1 to the
contrary, the Seller is not selling, and the Buyer is not purchasing, any of the following assets
of the Seller related to the Business, all of which shall be retained by the Seller (collectively,
the “Excluded Assets”):

          (a) all of the Seller’s cash and cash equivalents;

          (b) the Intellectual Property and software set forth on Schedule 2.2(b) (“Retained
Intellectual Property”);

          (c) the inbound license agreements set forth on Schedule 2.2(c) hereto (“Retained
Licenses”);

          (d) all Contracts, other than the Assumed Contracts, including, but not limited to, the
Contracts set forth on Schedule 2.2(d) (“Excluded Contracts”);

          (e) all rights of the Seller under this Agreement and the Ancillary Agreements;

          (f) Accounts Receivables;

          (g) the corporate seals, certificate of incorporation, bylaws, minute books, stock books, Tax
Returns, books of account or other records having to do with the corporate organization of the
Seller;

          (h) all Policies and all rights and benefits thereunder;

          (i) any refund or credit of the Seller’s and its Affiliates’ Taxes attributable to any
Pre-Closing Tax Period, Excluded Liability or to any other Excluded Asset;

          (j) any and all records prepared in connection with the sale of the Business to the Buyer;

12

 

          (k) any and all Tax records to the extent related to Taxes that constitute Excluded
Liabilities; and

          (l) all other properties, assets, goodwill and rights of the Seller of whatever kind and
nature, real, personal or mixed, tangible or intangible, other than Purchased Assets.

     Section 2.3 Assumed Liabilities. In connection with purchase and sale of the
Purchased Assets pursuant to this Agreement, at the Closing, the Buyer shall assume all liabilities
of the Seller under the Assumed Contracts that are required to be performed on
or after the Closing Date, other than any such liabilities expressly delineated as Excluded
Liabilities in Section 2.4 (the “Assumed Liabilities”).

     Section 2.4 Excluded Liabilities. Notwithstanding the provisions of Section 2.3 or
any other provision of this Agreement, any Schedule or Exhibit hereto or any Ancillary Agreement to
the contrary, and regardless of any disclosure to the Buyer, the Buyer shall not assume or be
obligated to pay, perform or otherwise discharge (and the Seller shall retain, pay, perform or
otherwise discharge without recourse to the Buyer) any liabilities or obligations of the Seller of
any kind, character or description whatsoever, whether direct or indirect, known or unknown,
absolute or contingent, matured or unmatured, and currently existing or hereinafter arising other
than the Assumed Liabilities expressly assumed under Section 2.3 (the “Excluded
Liabilities”), including the following:

          (a) all Taxes arising from or with respect to the Purchased Assets or the operation of the
Business that are incurred in or attributable to any period, or any portion of any period, ending
on or prior to the Closing Date;

          (b) any indebtedness for borrowed money or guarantees thereof outstanding as of the Closing
Date;

          (c) any liability arising from or related to any breach, failure to perform, torts related to
the performance of, violations of Law, infringements or indemnities under, guaranties pursuant to
and overcharges or underpayments under, any Seller Contract prior to the Closing Date;

          (d) any liability arising from or related to any compliance or noncompliance prior to the
Closing Date with any Law applicable to the Seller, the Business or the Purchased Assets;

          (e) any liability arising from or related to any Action against the Seller, the Business or
the Purchased Assets pending as of the Closing Date or based upon any action, event, circumstance
or condition arising prior to the Closing Date;

          (f) any liability incurred by the Seller or any Person other than the Buyer arising out of or
relating to the negotiation and preparation of this Agreement and the Ancillary Agreements
(including fees and expenses payable to all attorneys and accountants, other professional fees and
expenses and bankers’, brokers’ or finders’ fees for persons not engaged by the Buyer);

13

 

          (g) any liability or obligation arising from or relating to the Excluded Contracts; and

          (h) any liability or obligation relating to an Excluded Asset.

     Section 2.5 Consents and Waivers; Further Assurances.

          (a) Nothing in this Agreement or the Ancillary Agreements shall be construed as an agreement
to assign any Assumed Contract, Permit, Right or other
Purchased Asset that by its terms or pursuant to applicable Law is not capable of being sold,
assigned, transferred or delivered without the consent or waiver of a third party or Governmental
Authority unless and until such consent or waiver shall be given. The Seller shall use
commercially reasonable efforts, and the Buyer shall cooperate reasonably with the Seller, to
obtain such consents and waivers and to resolve the impediments to the sale, assignment, transfer
or delivery contemplated by this Agreement or the Ancillary Agreements and to obtain any other
consents and waivers necessary to convey to the Buyer all of the Purchased Assets. In the event
any such consents or waivers are not obtained prior to the Closing Date, (i) the Seller shall
continue to use commercially reasonable efforts to obtain the relevant consents or waivers until
such consents or waivers are obtained, and the Seller will cooperate with the Buyer to provide that
the Buyer shall receive the interest of the Seller in the benefits under any such Assumed Contract,
Permit, Right or other Purchased Asset, including performance by the Seller, if economically
feasible, as agent. Nothing in this Section 2.5(a) shall affect the Buyer’s right to terminate
this Agreement under Section 9.1 in the event that any consent or waiver as described herein is not
obtained.

          (b) From time to time, whether before, at or following the Closing, the Seller and the Buyer
shall execute, acknowledge and deliver all such further conveyances, notices, assumptions and
releases and such other instruments, and shall take such further actions, as may be necessary or
appropriate to assure fully to the Buyer all of the properties, rights, titles, interests, estates,
remedies, powers and privileges intended to be conveyed to the Buyer under this Agreement and the
Ancillary Agreements and to assure fully to the Seller the assumption of the liabilities and
obligations intended to be assumed by the Buyer pursuant to this Agreement and the Ancillary
Agreements, and to otherwise make effective as promptly as practicable the transactions
contemplated hereby and thereby.

     Section 2.6 Consideration. In full consideration for the sale, assignment, transfer,
conveyance and delivery of the Purchased Assets to the Buyer, at the Closing, or as soon as
reasonably practical following the Closing but in no event later than two Business Days, the Buyer
shall (a) pay to the Seller, by wire transfer to a bank account designated in writing by the Seller
to the Buyer at least two Business Days prior to the Closing Date, an amount equal to Twelve
Million Dollars ($12,000,000) (the “Purchase Price”), less the Escrow Amount, in
immediately available funds in United States dollars, (b) deposit the Escrow Amount by wire
transfer of immediately available funds in United States dollar with the Escrow Agent, to be
managed and paid out by the Escrow Agent

14

 

pursuant to the terms of this Agreement and the Escrow
Agreement and (c) assume the Assumed Liabilities.

     Section 2.7 Closing.

          (a) The sale and purchase of the Purchased Assets and the assumption of the Assumed
Liabilities contemplated by this Agreement shall take place at a closing (the “Closing”) to
be held at the offices of Gibson, Dunn & Crutcher LLP, 1881 Page Mill Road, Palo Alto, California
94304, at 10:00 a.m. Pacific Daylight Time on the tenth Business Day following the satisfaction or,
to the extent permitted by applicable Law,
waiver of all conditions to the obligations of the parties set forth in Article VII (other
than such conditions as may, by their terms, only be satisfied at the Closing or on the Closing
Date), or at such other place or at such other time or on such other date as the Seller and the
Buyer mutually may agree in writing. The day on which the Closing takes place is referred to as
the “Closing Date.”

          (b) At the Closing, the Seller shall deliver or cause to be delivered to the Buyer the
following documents:

               (i) a bill of sale for the Purchased Assets, in the form of Exhibit A (the “Bill
of Sale”), duly executed by the Seller;

               (ii) a counterpart of the Assumption Agreement, in the form of Exhibit B (the
“Assignment and Assumption Agreement”), duly executed by the Seller;

               (iii) a counterpart of the license agreement, in the form of Exhibit C (the “Buyer
License Agreement”), duly executed by the Seller;

               (iv) a counterpart of the license agreement, in the form of Exhibit D (the “Seller
License Agreement”), duly executed by the Seller;

               (v) a short form patent assignment agreement, in the form of Exhibit E (the “Short
Form Patent Assignment Agreement”), duly executed by the Seller;

               (vi) a short form trademark assignment agreement, in the form of Exhibit F (the
“Short Form Trademark Assignment Agreement”), duly executed by the Seller;

               (vii) a counterpart of the Escrow Agreement, in the form of Exhibit G (the “Escrow
Agreement”), duly executed by the Seller and the Escrow Agent;

               (viii) a duly executed certificate of an executive officer of the Seller certifying the
fulfillment of the conditions set forth in Section 7.3(a) and (h);

               (ix) a certificate of non-foreign status described in Treasury Regulations section 1.1445
2(b)(2) for the Seller;

               (x) side letter executed by InfoObjects, in the form of Exhibit H;

15

 

               (xi) A copy of the Seller letter [***].

               (xii) A copy of the Certificate of Destruction of Source Code by Samsung, pursuant to Section
E-3 of the Amendment dated October 14, 2009 to the Technology License and Services Agreement
between the Seller and Samsung dated December 1, 2004; and

               (xiii) such other bills of sale, assignments and other instruments of assignment, transfer or
conveyance, in form and substance reasonably satisfactory to the
Buyer, as the Buyer may reasonably request or as may be otherwise necessary or desirable to
evidence and effect the sale, assignment, transfer, conveyance and delivery of the Purchased Assets
to the Buyer and to put the Buyer in actual possession or control of the Purchased Assets, duly
executed by the Seller.

          (c) At the Closing, the Buyer shall deliver or cause to be delivered to the Seller the
following documents:

               (i) a counterpart of the Assignment and Assumption Agreement, duly executed by the Buyer;

               (ii) a counterpart of the Buyer License Agreement, duly executed by the Buyer;

               (iii) a counterpart of the Seller License Agreement, duly executed by the Buyer;

               (iv) a counterpart of the Escrow Agreement, duly executed by the Buyer; and

               (v) such other documents and instruments, in form and substance reasonably satisfactory to the
Seller, as the Seller may reasonably request or as may be otherwise necessary or desirable to
evidence and effect the assumption by the Buyer of the Assumed Liabilities, duly executed by the
Buyer.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

OF THE SELLER

     Except as set forth in the corresponding sections or subsections of the Disclosure
Schedules attached hereto (individually, a “Schedule,” and, collectively, the
“Disclosure Schedules”) (each of which shall be arranged in Sections and subsections
corresponding to the specifically identified Sections or subsections hereof to which such
Disclosure Schedule relates and shall not qualify any other provision of this Agreement or any
Ancillary Agreement), provided that any information disclosed in one Schedule shall be considered
to be made for purposes of another section of the Disclosure Schedules to the extent that the
relevance or applicability of the disclosure is clearly apparent on the face of such disclosure,
the Seller hereby represents and warrants to the Buyer as follows:

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

16

 

     Section 3.1 Organization and Qualification. The Seller is a corporation duly
organized, validly existing and in good standing under the laws of Delaware and has full corporate
power and authority to own, lease and operate the Purchased Assets and to carry on the Business as
it is now being conducted. The Seller is duly qualified or licensed as a foreign corporation to do
business, and is in good standing, in each jurisdiction where the ownership or operation of the
Purchased Assets or the conduct of the Business makes such qualification or licensing necessary,
except where the failure to be so qualified or so licensed or to be in good standing would not
reasonably be expected to result in a Material Adverse Effect.

     Section 3.2 Authority. The Seller has full corporate power and authority to execute
and deliver this Agreement and each of the Ancillary Agreements to which it will be a party, to
perform its obligations hereunder and thereunder and to consummate the transactions contemplated
hereby and thereby. The execution, delivery and performance by the Seller of this Agreement and
each of the Ancillary Agreements to which it will be a party and the consummation by the Seller of
the transactions contemplated hereby and thereby have been duly and validly authorized by all
necessary corporate action. This Agreement has been, and upon their execution each of the
Ancillary Agreements to which the Seller will be a party will have been, duly executed and
delivered by the Seller. This Agreement constitutes, and upon their execution each of the
Ancillary Agreements to which the Seller will be a party will constitute, the legal, valid and
binding obligations of the Seller, enforceable against the Seller in accordance with their
respective terms except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium and other similar laws and equitable principles related to or limiting
creditors’ rights generally and by general principles of equity.

     Section 3.3 No Conflict; Required Filings and Consents.

          (a) The execution, delivery and performance by the Seller of this Agreement and each of the
Ancillary Agreements to which the Seller will be a party, and the consummation of the transactions
contemplated hereby and thereby, do not and will not:

               (i) conflict with or violate the certificate of incorporation or bylaws or equivalent
organizational documents of the Seller;

               (ii) conflict with or violate any Law applicable to the Seller, the Business or any of the
Purchased Assets or by which the Seller, the Business or any of the Purchased Assets are bound or
affected; or

               (iii) result in any breach of, constitute a default (or an event that, with notice or lapse of
time or both, would become a default) under, require any consent of or notice to any Person
pursuant to, give to others any right of termination, amendment, modification, acceleration or
cancellation of, allow the imposition of any fees or penalties, require the offering or making of
any payment or redemption, give rise to any increased, guaranteed, accelerated or additional rights
or entitlements of any Person or otherwise adversely affect any rights of the Seller or the
Business under, or result in the creation of

17

 

any Encumbrance on any of the Purchased Assets
pursuant to, any note, bond, mortgage, indenture, agreement, lease, license, permit, franchise,
instrument, obligation or other Contract to which the Seller is a party or by which the Seller, the
Business or the Purchased Assets are bound or affected.

          (b) The Seller is not required to file, seek or obtain any notice, authorization, approval,
order, permit or consent of or with any Governmental Authority in connection with the execution,
delivery and performance by the Seller of this Agreement and each of the Ancillary Agreements to
which it will be a party or the consummation of the transactions contemplated hereby or thereby or
in order to prevent the termination of
any right, privilege, license or qualification of or affecting the Business or the Purchased
Assets.

     Section 3.4 Title to Assets; Sufficiency of Assets.

          (a) The Seller has good and valid title to or a valid license in all of the Purchased Assets,
free and clear of any Encumbrance, other than (i) liens for Taxes not yet due and payable, (ii)
assessments or governmental charges or landlords’, workers’, carriers’ and mechanics’ or other like
liens with respect to which payment is not due and that do not impair the conduct of the Business
or the present use of the affected property and (iii) liens that are immaterial in character,
amount, and extent and which do not detract from the value or interfere with the present or
proposed use of the properties they affect (collectively, “Permitted Encumbrances”). The
delivery to the Buyer of the Bill of Sale and other instruments of assignment, conveyance and
transfer pursuant to this Agreement and the Ancillary Agreements will transfer to the Buyer good
and valid title to or a valid leasehold interest in all of the Purchased Assets, free and clear of
any Encumbrance other than Permitted Encumbrances.

          (b) The Purchased Assets, together with the Seller Licensed Intellectual Property, constitute
all of the assets, properties and rights necessary and sufficient for the conduct and operation of
the Business as currently conducted or as presently contemplated to be conducted.

     Section 3.5 Absence of Certain Changes or Events. Since December 31, 2009, (a) the
Seller has conducted the Business only in the ordinary course consistent with past practice; (b)
there has not been any change, event or development that, individually or in the aggregate, has had
or could reasonably be expected to have a Material Adverse Effect; and (c) neither the Business nor
the Purchased Assets have suffered any loss, damage, destruction or other casualty affecting any
material properties or assets thereof or included therein, whether or not covered by insurance.
Since March 31, 2010, the Seller has not taken any action that, if taken after the date of this
Agreement, would constitute a breach of any of the covenants set forth in Section 5.1.

     Section 3.6 Compliance with Law; Permits.

          (a) To the Knowledge of the Seller, the Seller is and has been since January 1, 2007, in
compliance in all material respects with all Laws applicable to the

18

 

Seller in connection with the
conduct or operation of the Business and the ownership or use of the Purchased Assets. Neither the
Seller nor any of its executive officers has received, nor to the Knowledge of the Seller is there
any basis for, any notice, order, complaint or other communication from any Governmental Authority
or any other Person that the Seller is not in compliance with any such Laws.

          (b) Schedule 3.6 sets forth a true and complete list of all Permits necessary for the
Seller to own, lease and operate the Purchased Assets and to carry on the Business as currently
conducted (the “Permits”). The Seller is and has been since January 1, 2007, in compliance
in all material respects with all such Permits. No suspension,
cancellation, modification, revocation or nonrenewal of any Permit is pending or, to the
Knowledge of the Seller, threatened.

     Section 3.7 Litigation. As of the date hereof, there is no Action (except for any
Actions commenced by Persons other than Governmental Authorities that would not reasonably be
expected to result in a liability or loss in respect of the Business or the Purchased Assets of
more than [***] individually or in the aggregate) pending or, to the Knowledge of the Seller,
threatened in connection with the Business or the Purchased Assets or the Seller’s ownership or
operation thereof, nor is there any basis for any such Action. There is no Action pending or, to
the Knowledge of the Seller, threatened seeking to prevent, hinder, modify, delay or challenge the
transactions contemplated by this Agreement or the Ancillary Agreements. There is no outstanding
order, writ, judgment, injunction, decree, determination or award of, or pending or, to the
Knowledge of the Seller, threatened investigation by, any Governmental Authority relating to the
Business, the Purchased Assets, the Seller’s ownership or operation thereof or the transactions
contemplated by this Agreement or the Ancillary Agreements. There is no Action by the Seller
pending, or which the Seller has commenced preparations to initiate, against any other Person in
connection with the Business or the Purchased Assets. [***]

     Section 3.8 Employees.

          (a) Schedule 3.8(a) sets forth a complete and accurate list of the names of all
current Business Employees, specifying their position and description of the areas of
responsibility with respect to the Business, and their salary, date of hire, business location,
commission, bonus and incentive entitlements and identifying which Business Employees are currently
receiving long-term or short-term disability benefits or are absent from active employment on
pregnancy, parental adoption or other leave and their anticipated dates of return to active
employment.

          (b) Schedule 3.8(b) sets forth a true and complete list of all Employee Plans that
cover any Business Employee. True and complete copies of each of the following documents have been
delivered or Made Available by the Seller to the Buyer:

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

19

 

               (i) each Welfare Plan, Pension Plan and Multiemployer Plan that covers any Business
Employee (and, if applicable, related trust agreements) and all amendments thereto, all written
summary plan descriptions and summaries of material modifications, as those terms are defined by
ERISA Section 102 which have been distributed to any Business Employee or his or her beneficiaries
in such plan and all annuity contracts or other funding instruments;

               (ii) each Benefit Arrangement that covers any Business Employee, including material written
descriptions thereof and written descriptions thereof which have been distributed to any Business
Employee or his or her beneficiaries in such
Benefit Arrangement and a complete description of any such Benefit Arrangement that is not in
writing; and

               (iii) the most recent determination letter issued by the Internal Revenue Service with respect
to each Pension Plan that covers any Business Employee.

          (c) Except as set forth in Schedule 3.8(c):

               (i) none of the Pension Plans that covers any Business Employee who is a resident of the
United States is a Multiemployer Plan or a Pension Plan that is subject to either Title IV of ERISA
or Section 412 of the Code;

               (ii) each Pension Plan that covers any Business Employee who is a resident of the United
States and each related trust agreement, annuity contract or other funding instrument is qualified
and tax exempt under the provisions of Code Sections 401(a) (or 403(a), as appropriate) and 501(a)
and has been so qualified during the period from its adoption to date;

               (iii) each Welfare Plan that covers any Business Employee who is a resident of the United
States and which is a “group health plan,” as defined in Section 607(1) of ERISA, has been operated
in compliance with the provisions of Part 6 of Title I of ERISA and Sections 162(k) and 4980B of
the Code at all times; and

               (iv) neither the execution, delivery or performance of this Agreement or the Ancillary
Agreements nor the consummation of the transactions contemplated hereby or thereby will result in
the acceleration or creation of any rights of any Business Employee under any Employee Plan
(including the acceleration of the vesting or exercisability of any stock options, the acceleration
of the vesting of any restricted stock, the acceleration of the accrual or vesting of any benefits
under any Pension Plan or the acceleration or creation of any rights under any severance, parachute
or change in control agreement).

     Section 3.9 Labor and Employment Matters.

          (a) The Seller is not a party to any labor or collective bargaining Contract that pertains to
any Business Employees. There are no organizing activities or collective bargaining arrangements
that could affect the Business pending or under discussion with any Business Employees or any labor
organization. There is, and has

20

 

been, no labor dispute, strike, controversy, slowdown, work
stoppage or lockout pending or, to the Knowledge of the Seller, threatened against or affecting the
Business or the Seller in connection with the Business, nor is there any basis for any of the
foregoing. The Seller has not breached or otherwise failed to comply with the provisions of any
collective bargaining or union Contract affecting any Business Employees. There are no pending or,
to the Knowledge of the Seller, threatened union grievances or union representation questions
involving any Business Employees.

          (b) The Seller has not engaged and is not engaging in any unfair labor practice in connection
with the Business. No unfair labor practice or labor charge or
complaint is pending or, to the Knowledge of the Seller, threatened with respect to the
Business or the Seller in connection with the Business before the National Labor Relations Board,
the Equal Employment Opportunity Commission or any other Governmental Authority.

          (c) The Seller has withheld and paid to the appropriate Governmental Authority or is holding
for payment not yet due to such Governmental Authority all amounts required to be withheld from
Business Employees and is not liable for any arrears of wages, Taxes, penalties or other sums for
failure to comply with any applicable Laws relating to the employment of labor in connection with
the Business. The Seller has paid in full to all Business Employees or adequately accrued in
accordance with GAAP for all wages, salaries, commissions, bonuses, benefits and other compensation
due to or on behalf thereof.

          (d) The Seller is not a party to, or otherwise bound by, any consent decree with, or citation
by, any Governmental Authority relating to or affecting Business Employees or employment practices
in connection with the Business. Neither the Seller nor any of its executive officers has received
any notice of intent by any Governmental Authority responsible for the enforcement of labor or
employment laws to conduct an investigation relating to the Business and, to the Knowledge of the
Seller, no such investigation is in progress.

          (e) Since the enactment of the Worker Adjustment and Retraining Notification Act (the
“WARN Act”), 29 U.S.C. §§ 2101 et seq., the Seller has not effectuated (i) a “plant
closing” (as defined in the WARN Act) affecting any site of employment or one or more facilities or
operating units within any site of employment or facility of the Seller related to the Business, or
(ii) a “mass layoff” (as defined in the WARN Act) affecting any site of employment or facility of
the Seller related to the Business, nor has the Seller been affected by any transaction or engaged
in layoffs or employment terminations sufficient in number to trigger application of any similar
state or local law. No Business Employee has suffered an “employment loss” (as defined in the WARN
Act) in the past three years.

     Section 3.10 Intellectual Property.

          (a) Schedule 3.10(a)(i) and Schedule 3.10(a)(ii) contain, respectively, a
complete and accurate list of (i) all products and services, primarily relating to the

21

 

Business,
marketed by the Seller and (ii) all products and service offerings, primarily relating to the
Business, that are in development as of the date hereof (other than updates or upgrades to existing
products) and that the Seller expected or intended to make available commercially in the future in
connection with the Business (such products described in clauses (i) and (ii), collectively, the
“Seller Products”).

          (b) Schedule 3.10(b) contains a complete and accurate list, as of the date hereof, of
the following Seller Owned Intellectual Property: (i) all registered Trademarks and material
unregistered Trademarks; (ii) all Patents and (iii) all registered Copyrights and applications
therefor, in each case listing, as applicable, (A) the name of the
applicant/registrant and current owner, (B) the jurisdiction where the
application/registration is located and (C) the application or registration number (“Seller
Registered Intellectual Property”). No Seller Registered Intellectual Property has been deemed
invalid by a court of competent jurisdiction, and to the Seller’s Knowledge all Seller Registered
Intellectual Property is valid and subsisting. All necessary documents and certificates in
connection with any Seller Registered Intellectual Property have been filed with the relevant
patent, copyright, trademark or other authorities in the United States or elsewhere in the world,
as the case may be, for the purposes of perfecting, prosecuting and maintaining any Seller
Registered Intellectual Property. Except as set forth on Schedule 3.10(b), there are no
actions that must be taken by the Seller within 150 days of the date of this Agreement, including
the payment of any registration, maintenance or renewal fees or the filing of any responses to
Governmental Entity office actions, documents, applications or certificates for the purposes of
obtaining, maintaining, perfecting or preserving or renewing any Seller Registered Intellectual
Property. The Seller has not claimed “small business status,” in the application for or
registration of any Seller Registered Intellectual Property.

          (c) Schedule 3.10(c) contains a complete and accurate list, as of the date hereof, of
the domain name registrations of the Seller that relate to the Business.

          (d) The Seller owns all right, title and interest in the Seller Owned Intellectual Property,
free and clear of all Encumbrances. The Seller has not granted any exclusive license under any
Seller Owned Intellectual Property or any licenses to use any Seller Source Code. All Seller Owned
Intellectual Property was written and created solely by either (i) employees of the Seller acting
within the scope of their employment or (ii) by third parties who have validly and irrevocably
assigned all of their rights therein to the Seller.

          (e) The Seller has taken reasonable and appropriate steps to protect and preserve the
confidentiality of the Trade Secrets that comprise any part of the Seller Owned Intellectual
Property, and to the Knowledge of the Seller, there have not occurred any unauthorized uses,
disclosures or infringements of any such Trade Secrets by any Person. Without limiting the
foregoing, the Seller has a valid confidentiality and assignment agreement, substantially in the
Seller’s standard form previously delivered to 

22

 

the Buyer, in place with each employee and
contractor who has ever created Seller Owned Intellectual Property.

          (f) Each of the Seller Owned Intellectual Property and Seller Products has not infringed upon
or otherwise violated, or is not infringing upon or otherwise violating, in any respect the
Intellectual Property Rights of any third party. To the Knowledge of the Seller as of the date
hereof, no person or any of such person’s products or services or other operation of such person’s
business is infringing upon or otherwise violating any Seller Owned Intellectual Property.

          (g) There is no suit, claim, action, investigation or proceeding made, conducted or brought by
a third party that has been served upon or, to the Knowledge of the Seller, filed or threatened
with respect to, and the Seller have not been notified in writing of, any alleged infringement or
other violation by the Seller or any of its current products or services or other operation of the
Business of the Intellectual Property Rights of such third party. There is no pending or, to the
Knowledge of the Seller, threatened claim challenging the validity or enforceability of, or
contesting the Seller’s rights with respect to, any of the Seller Owned Intellectual Property. The
Seller has not received any opinion of counsel regarding (i) any potential allegation of
infringement, (ii) the application of any Patent to the Seller Products, or (iii) the operation of
the Business with respect to the foregoing. The Seller is not subject to any order of any
Governmental Entity that restricts or impairs the use, transfer or licensing of any Seller Owned
Intellectual Property.

          (h) The execution and delivery of this Agreement and the consummation of the transactions
contemplated hereby will not result in (i) the Seller granting to any third party any rights or
licenses to any Intellectual Property or Intellectual Property Rights, (ii) any right of
termination or cancellation under any Inbound Licenses, (iii) the imposition of any Encumbrance on
any Seller Owned Intellectual Property, or (iv) the requirement to pay any royalties or other
amounts in excess of those that would have, in any event, been payable by the Seller had the
transactions contemplated by this Agreement not occurred.

          (i) As of the date hereof, there are no design or other errors in the Seller Products that
permit unauthorized access to computers or systems of users through those Seller Products. The
Seller has implemented procedures consistent with standard industry practices to ensure that the
Seller Products are free from viruses, disabling codes or other malicious code.

          (j) Schedule 3.10(j) contains a complete and accurate list as of the date hereof of
all software that is distributed as “open source software” or under a similar licensing or
distribution model (including, but not limited to, the GNU General Public License) (collectively,
“Open Source Materials”) used by the Seller in connection with the Business or incorporated
in or used in connection with any Seller Product, including a description of the manner in which
such Open Source Materials are used, including

23

 

whether (and, if so, how) the Open Source Materials
were modified and/or distributed by the Seller. Except as described and set forth in Schedule
3.10(j), the Seller has not (i) incorporated Open Source Materials into, or combined Open
Source Materials with, any Seller Product, (ii) distributed Open Source Materials in conjunction
with any Seller Product, or (iii) used Open Source Materials in a manner that creates obligations
for the Seller or any Subsidiary with respect to Seller Owned Intellectual Property to grant to any
third party, any right or immunity with respect to any Seller Owned Intellectual Property
(including, but not limited to, using any requirement that other software incorporated into,
derived from or distributed with such Open Source Materials be (A) disclosed or distributed in
source code form, (B) licensed for the purpose of making derivative works or (C) redistributable at
no charge).

          (k) The Seller has not experienced any defects in the software and hardware used in relation
to the Business as it is currently conducted that have not been fully resolved, including any error
or omission in the processing of any data.

          (l) None of the Seller Source Code for the Seller Products or Trade Secrets have been
published or disclosed by the Seller, except to its employees or consultants under a non-disclosure
agreement, a form of which has been provided to the Buyer. Schedule 3.10(l) identifies each
Contract pursuant to which the Seller has deposited, or is or may be required to deposit, with an
escrow agent or any other person or entity, any Seller Source Code. The consummation of the
transactions contemplated hereby will not constitute a condition sufficient to entitle the
beneficiary under any escrow arrangement under which the Seller has deposited any Seller Source
Code for any Seller Product or Trade Secret to require release of such Seller Source Code or Trade
Secret.

          (m) The Seller’s collection processing, use, storage, transfer and dissemination of personally
identifiable information of customers, employees, suppliers and other third parties in connection
with their business has been conducted in accordance with applicable privacy policies published or
otherwise adopted by the Seller and any applicable Law.

          (n) No government funding, facilities of a university, college, other educational institution
or research center or funding from third parties was used in the development of any Seller Owned
Intellectual Property. To the Knowledge of the Seller, no employee of the Business who was
involved in, or who contributed to, the creation or development of any Seller Owned Intellectual
Property, has performed services for the government, university, college, or other educational
institution or research center with respect to technology or inventions that have been or may be
incorporated into a Seller Product or related to Seller Owned Intellectual Property during a period
of time during which such employee of the Business was also performing services for the Seller.

          (o) The Seller has no commitment to any standards body to license any Seller Owned
Intellectual Property, to any person or entity by virtue of that person or entity being a member of
a standards body, or to any person or entity by virtue of that

24

 

person or entity having implemented
a standard administered or promulgated by a standards body. The Seller Products are not required
to be compliant with any standards promulgated or administered by, or with any operating systems
offered by, any third party.

          (p) If the Seller has exported the Seller Products, or any technical information or other
technology within its control, it has done so in all respects in compliance with the U.S. export
Laws promulgated and enforced by the Bureau of Export Administration and any other applicable
export/import control Law.

          (q) No Trademark identified on Schedule 3.10(b) has been or is now involved in any
opposition or cancellation proceeding and, to the Knowledge of the Seller, no such proceeding is or
has been threatened with respect to any of such Trademarks. No
Patent identified on Schedule 3.10(b) has been or is now involved in any interference,
reissue or reexamination proceeding and, to the Knowledge of the Seller, no such proceeding is or
has been threatened with respect thereto any of such Patents.

          (r) The Seller has not taken any action or failed to take any action that could reasonably be
expected to result in the abandonment, cancellation, forfeiture, relinquishment, invalidation or
unenforceability of any of the Seller Registered Intellectual Property (including the failure to
pay any filing, examination, issuance, post registration and maintenance fees, annuities and the
like and the failure to disclose any known material prior art in connection with the prosecution of
patent applications).

          (s) Upon the consummation of the Closing, the Buyer shall (i) succeed to all of the Seller’s
rights and interest in or under all Seller Owned Intellectual Property, and all of the Seller’s
rights under all Seller Owned Intellectual Property shall be exercisable by the Buyer to the same
extent as by the Seller prior to the Closing and (ii) have the right to use all software
development tools, library functions or compilers that the Seller used to create, modify, compile,
or support any Seller Product. No loss or expiration of any of the material Seller Owned
Intellectual Property or any other material Intellectual Property used or held for use by the
Seller in connection with the conduct of the Business is threatened, pending or reasonably
foreseeable. The Seller Owned Intellectual Property along with the Seller Licensed Intellectual
Property constitutes all the material Intellectual Property owned by or licensed to the Seller that
is necessary to conduct the Business as it is currently conducted and presently contemplated to be
conducted by the Seller.

     Section 3.11 Taxes.

          (a) To the extent a breach or inaccuracy of any of the following could result in a liability
of the Buyer to any Person in connection with the transactions contemplated by this Agreement or
the Ancillary Agreements, whether as a result of applicable Law, Contract or otherwise: (i) the
Seller has timely paid and will continue to pay all material Taxes when the same have become due,
(ii) the Seller has not received written notice of any outstanding claim, audit or other
examination or proceeding with respect to Taxes, (iii) the Seller knows of no basis for a claim by
any governmental

25

 

authority for Taxes and (iv) the Seller has timely filed all material Returns it
is required to have filed and will continue to file such Returns as they become due and all Returns
filed, or to be filed, by the Seller have been and will be true, correct, and complete in all
material respects. There are no Taxes of the Seller that form or could form the basis for Lien on
any of the Purchased Assets.

          (b) The Seller is not a party to any Contract or plan that has resulted or would result,
individually or in the aggregate, in connection with this Agreement or any change of control of the
Seller, in the payment of any “excess parachute payments” within the meaning of Section 280G of the
Code.

     Section 3.12 Material Contracts.

          (a) Except as set forth in Schedule 3.12(a), there are no Contracts relating to the
Business or the Purchased Assets of the following nature (such Contracts as are required to be set
forth in Schedule 3.12(a) are, collectively, the “Material Contracts”):

               (i) all Seller Contracts other than the Employee Plans;

               (ii) any broker, distributor, dealer, manufacturer’s representative, franchise, agency, sales
promotion, market research, marketing, consulting or advertising Contract;

               (iii) any Contract relating to or evidencing indebtedness of the Seller in connection with
Business, including, but not limited to, mortgages, other grants of security interests, guarantees
or notes with respect to the Purchased Assets;

               (iv) any Contract with any Governmental Authority;

               (v) any Contract with any Related Party of the Seller;

               (vi) any Contract that limits, or purports to limit, the ability of the Seller or the Business
to compete in any line of business or with any Person or in any geographic area or during any
period of time, or that restricts the right of the Seller or the Business to sell to or purchase
from any Person or to hire any Person, or that grants the other party or any third person “most
favored nation” status or any type of special discount rights;

               (vii) any Contract that requires a consent to or otherwise contains a provision relating to an
“assignment” or “deemed assignment,” or that would prohibit or delay the consummation of the
transactions contemplated by this Agreement or the Ancillary Agreements;

               (viii) any Contract providing for indemnification to or from any Person with respect to
liabilities relating to the Seller, the Business or the Purchased Assets;

26

 

               (ix) any (1) Inbound Licenses or (2) Outbound Licenses, in each case specifying the parties to
the agreement, the relevant Intellectual Property and any ongoing royalty payments.

               (x) any Contract relating to settlement of any administrative or judicial proceedings within
the past five years; and

               (xi) any other Contract, whether or not made in the ordinary course of business that (A)
involves a future or potential liability or receivable, as the case may be, in excess of [***] on
an annual basis or in excess of [***] over the current Contract term, (B) has a term greater than
one year and cannot be cancelled by the Seller
without penalty or further payment and without more than 30 days’ notice or (C) is material to
the assets of the Business, taken as a whole.

          (b) Each Material Contract that is an Assumed Contract is a legal, valid, binding and
enforceable agreement and is in full force and effect. Neither the Seller nor, to the Knowledge of
the Seller, any other party is in breach or violation of, or (with or without notice or lapse of
time or both) default under, any Material Contract, nor has the Seller received any claim of any
such breach, violation or default. The Seller has delivered or Made Available to the Buyer true
and complete copies of all Material Contracts, including any amendments thereto.

     Section 3.13 Offered Employee Non-Competition Agreements. There are no non-competition or
other similar agreements or arrangements or any non-competition or similar provisions of any
Contract between each Offered Employee and the Seller.

     Section 3.14 Warranties. The Seller has heretofore delivered to the Buyer true and
correct copies of all written warranties currently in effect covering the respective products and
services of the Business. During the past three years, there were no expenses experienced by the
Seller with respect to such warranties, and the Seller does not have Knowledge or any defect in any
products of the Business that might give rise to a product warranty claim after the Closing Date.

     Section 3.15 Conduct of Business. The Seller has conducted and operated the Business
only through itself, and not through any other entity or organization.

     Section 3.16 Brokers. No broker, finder or investment banker is entitled to any
brokerage, finder’s or other fee or commission in connection with the transactions contemplated
hereby based upon arrangements made by or on behalf of the Seller.

     Section 3.17 [***] The Seller has obtained a [***] all unpublished [***] that relate to the
[***].

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

27

 

     Section 3.18 Disclosure. The Seller does not make nor has made any
representations or warranties relating to the Purchased Assets, the Business or otherwise in
connection with the transactions contemplated hereby other than those expressly set out in this
Agreement or any Ancillary Agreement or schedule or certificates pursuant hereto or thereto. None
of the representations or warranties of the Seller contained in this Agreement or any Ancillary
Agreement or schedule or certificates pursuant hereto or thereto contains any untrue statement of a
material fact or omits to state a material fact necessary to make the statements herein or therein
not misleading.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE BUYER

     The Buyer hereby represents and warrants to the Seller as follows:

     Section 4.1 Organization. The Buyer is a corporation duly organized, validly existing
and in good standing under the laws of Delaware and has full corporate power and authority to own,
lease and operate its properties and to carry on its business as it is now being conducted.

     Section 4.2 Authority. The Buyer has full corporate power and authority to execute
and deliver this Agreement and each of the Ancillary Agreements to which it will be a party, to
perform its obligations hereunder and thereunder and to consummate the transactions contemplated
hereby and thereby. The execution, delivery and performance by the Buyer of this Agreement and
each of the Ancillary Agreements to which it will be a party and the consummation by the Buyer of
the transactions contemplated hereby and thereby have been duly and validly authorized by all
necessary corporate action. This Agreement has been, and upon their execution each of the
Ancillary Agreements to which the Buyer will be a party will have been, duly and validly executed
and delivered by the Buyer. This Agreement constitutes, and upon their execution each of the
Ancillary Agreements to which the Buyer will be a party will constitute, the legal, valid and
binding obligations of the Buyer, enforceable against the Buyer in accordance with their respective
terms.

     Section 4.3 No Conflict; Required Filings and Consents.

          (a) The execution, delivery and performance by the Buyer of this Agreement and each of the
Ancillary Agreements to which the Buyer will be a party, and the consummation of the transactions
contemplated hereby and thereby, do not and will not:

               (i) conflict with or violate the certificate of incorporation or bylaws of the Buyer;

               (ii) conflict with or violate any Law applicable to the Buyer; or

               (iii) result in any breach of, constitute a default (or an event that, with notice or lapse of
time or both, would become a default) under or require any consent

28

 

of any Person pursuant to, any
note, bond, mortgage, indenture, agreement, lease, license, permit, franchise, instrument,
obligation or other Contract to which the Buyer is a party,

except for any such conflicts, violations, breaches, defaults or other occurrences that do not,
individually or in the aggregate, materially impair the ability of the Buyer to consummate, or
prevent or materially delay, any of the transactions contemplated by this Agreement or the
Ancillary Agreements or would reasonably be expected to do so.

          (b) The Buyer is not required to file, seek or obtain any notice, authorization, approval,
order, permit or consent of or with any Governmental Authority in
connection with the execution, delivery and performance by the Buyer of this Agreement and
each of the Ancillary Agreements to which it will be party or the consummation of the transactions
contemplated hereby or thereby.

ARTICLE V

COVENANTS

     Section 5.1 Conduct of Business Prior to the Closing. Between the date of this
Agreement and the Closing Date, unless the Buyer shall otherwise agree in writing, which agreement
shall not be unreasonably withheld or delayed, the Seller shall cause the Business to be conducted
only in the ordinary course consistent with past practice, and shall use commercially reasonable
efforts to preserve substantially intact the operations of the Business, keep available the
services of the current Business Employees of the Business and preserve the current relationships
of the Business with customers, suppliers and other persons with which the Business has business
relations. By way of amplification and not limitation, between the date of this Agreement and the
Closing Date, the Seller shall not do or propose to do, directly or indirectly, any of the
following in connection with the Business or the Purchased Assets without the prior written consent
of the Buyer:

          (a) issue, sell, pledge, dispose of or otherwise subject to any Encumbrance, other than
Permitted Encumbrances, any Purchased Assets;

          (b) incur any indebtedness for borrowed money or issue any debt securities or assume,
guarantee or endorse, or otherwise become responsible for, the obligations of any Person, or make
any loans or advances, in each case affecting the Business or the Purchased Assets, except in the
ordinary course of business consistent with past practice;

          (c) amend, waive, modify or consent to the termination of any Assumed Contract, except in the
ordinary course of business consistent with past practice, or amend, waive, modify or consent to
the termination of the Seller’s rights thereunder, or enter into any Material Contract;

          (d) enter into any Contract with any Related Party of the Seller in connection with or
affecting the Business or the Purchased Assets;

29

 

          (e) pay, discharge or satisfy any claim, liability or obligation (absolute, accrued, asserted
or unasserted, contingent or otherwise) relating to the Business or the Purchased Assets, except in
the ordinary course of business consistent with past practice;

          (f) cancel, compromise, waive or release any right or claim relating to the Business or the
Purchased Assets, other than in the ordinary course of business consistent with past practice;

          (g) permit the lapse of any right relating to Seller Owned Intellectual Property or any other
intangible asset used or held for use in connection with the Business;

          (h) use any assets of the Business to pay any costs or expenses arising out of or relating to
the transactions contemplated by this Agreement or the Ancillary Agreements;

          (i) grant or announce any increase in the salaries, compensation, bonuses or other benefits
payable to any Business Employees, other than (i) as required by Applicable Law;

          (j) commence or settle any Action relating to the Business, the Purchased Assets or the
Assumed Liabilities; provided, however, [***] in accordance with the terms [***];

          (k) take any action, or intentionally fail to take any action, that would cause any
representation or warranty made by the Seller in this Agreement or any Ancillary Agreement to be
untrue or result in a breach of any covenant made by the Seller in this Agreement or any Ancillary
Agreement, or that has or could reasonably be expected to have a Material Adverse Effect;

          (l) announce an intention, enter into any formal or informal agreement, or otherwise make a
commitment to do any of the foregoing; or

          (m) terminate the employment of any Business Employees or take any action that might induce
the termination of any Business Employee, and with respect to any Transferring Employee who is a
foreign national employed in the United States, Seller shall not terminate the employment of any
such employee until the earlier of (1) the date that such employee has clearance to become an
employee of Buyer and (2) the date that is 30 days following the Closing Date.

     Section 5.2 Covenants Regarding Information.

          (a) Subject to the Mutual Nondisclosure Agreement dated February 1, 2010 between the Buyer
and the Seller, and as amended on March 31, 2010 (the “Confidentiality Agreement”), from
the date hereof until the Closing Date, the Seller shall afford the Buyer and its officers,
directors, principals, employees, advisors, auditors, agents, bankers and other representatives
(collectively, “Representatives”) complete access (including for inspection and copying)
during normal business hours, upon reasonable

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

30

 

request and notice to the Purchased Assets and the Seller’s, properties, offices, plants and other
facilities, and books and records relating to the Business and the Purchased Assets and shall
permit them to consult with Seller’s Representatives in the manner mutually agreed by the Buyer and
the Seller, and shall furnish the Buyer with such financial, operating and other data and
information in connection with the Business and the Purchased Assets as the Buyer may reasonably
request.

          (b) On the Closing Date, the Seller will deliver or cause to be delivered to the Buyer all
original agreements (or, copies thereof, to the extent such items are not in the possession or
control of the Seller), documents, books and records and files stored on
computer disks or tapes or any other storage medium in the possession of the Seller
exclusively relating to the Purchased Assets.

          (c) In order to facilitate the resolution of any claims made by or against or incurred by the
Buyer after the Closing or for any other reasonable purpose, for a period of 5 years following the
Closing, the Seller shall: (i) retain all books, documents, information, data, files and other
records of the Seller that relate to the Business, the Purchased Assets or the Assumed Liabilities
for periods prior to the Closing and which shall not otherwise have been delivered to the Buyer;
(ii) upon reasonable notice, afford the Buyer and its Representatives reasonable access (including
for inspection and copying, at the Buyer’s expense), during normal business hours, to such books,
documents, information, data, files and other records, including in connection with claims,
proceedings, actions, investigations, audits and other regulatory or legal proceedings involving or
relating to the Business, the Purchased Assets or the Assumed Liabilities; and (iii) furnish the
Buyer and its Representatives reasonable assistance (at the Buyer’s expense), including access to
personnel, in connection with any such claims and other proceedings; provided, that such
access shall be granted until the later of 5 years following the Closing and the expiration date of
the applicable statute of limitations with respect to tax matters. The Seller shall permit,
promptly upon reasonable request, the Buyer and its Representatives to use original copies of any
such records for purposes of litigation; provided, further, that such records shall
promptly be returned to the Seller following such use. The Seller shall not destroy any such books
and records without providing the Buyer with written notice detailing the contents of such books
and records, and providing the Buyer with the opportunity to obtain such books and records, at
least 90 days prior to the destruction thereof.

     Section 5.3 Exclusivity. The Seller agrees that between the date of this Agreement
and the earlier of the Closing and the termination of this Agreement, the Seller shall not, and
shall take all action necessary to ensure that none of its Affiliates or any of their respective
Representatives shall, in any way that would materially affect the Purchased Assets or the
contemplated transaction:

          (a) solicit, initiate, consider, encourage or accept any other proposals or offers from any
Person relating to any direct or indirect acquisition or purchase of all or any portion of the
Business or the Purchased Assets, whether effected by sale of assets, sale of stock, merger or
otherwise; or

31

 

          (b) participate in any discussions, conversations, negotiations or other communications
regarding, or furnish to any other Person any information with respect to, or otherwise cooperate
in any way, assist or participate in, facilitate or encourage any effort or attempt by any other
Person to seek to do any of the foregoing. The Seller immediately shall cease and cause to be
terminated all existing discussions, conversations, negotiations and other communications with any
Persons conducted heretofore with respect to any of the foregoing.

     The Seller shall notify the Buyer promptly, but in any event within twenty-four hours, orally
and in writing if any such proposal or offer, or any inquiry or other contact
with any Person with respect thereto, is made. Any such notice to the Buyer shall indicate in
reasonable detail the identity of the Person making such proposal, offer, inquiry or other contact
and the terms and conditions of such proposal, offer, inquiry or other contact. The Seller shall
not release any Person from, or waive any provision of, any confidentiality or standstill agreement
to which the Seller is a party, without the prior written consent of the Buyer.

     Section 5.4 Non-Competition; Non-Solicitation.

          (a) For the term of the Buyer License Agreement, but in no event for a period less than [***]
following the Closing Date (the “Non-Compete Period”), the Seller will not, and will cause
its Affiliates not to, directly or indirectly through any Person or contractual arrangement, other
than the activities explicitly permitted pursuant to the Buyer License Agreement or other services
requested by and provided directly to the Buyer:

               (i) whether on its own behalf or on behalf of or for the benefit of a third party (subject to
Section 5.4(b) below) (A) engage in any activities related to the [***] (1) [***] (2) technology
that enables an environment where [***], or (3) any [***] or (B) [***] technology described in (1),
(2) or (3) above, or any component thereof into the [***] (each of 5.4(a)(i)(A) and (B), a
“Competing Business”);

               (ii) have a financial interest in any Competing Business, except as expressly permitted in
Section 5.4(d) below;

               (iii) solicit, recruit or hire (or with regards to Offered Employees, retain) any person who
is a Seller Prohibited Employee (as defined below); provided, that the foregoing shall not
prohibit (A) a general solicitation to the public of general advertising or similar methods of
solicitation by search firms not specifically directed at Seller Prohibited Employees or (B) the
Seller or any of its Affiliates from soliciting, recruiting or hiring any Seller Prohibited
Employee who has ceased to be employed or retained by the Seller, the Buyer or any of their
respective Affiliates for at least 12 months;

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

32

 

provided further that as the restrictions in this Section 5.4(a)(iii) relates to the retention
of Offered Employees, the Buyer may waive, in writing, such restrictions at any time.

               (iv) approach or seek Competing Business from any Customer (as hereinafter defined), refer
Competing Business from any Customer to any Person or be paid commissions based on Competing
Business sales received from any Customer by any Person. For purposes of this Section 5.4,
the term “Customer” means any Person to which the Seller, the Buyer or any of their
respective Affiliates provided products or services during the twelve-month period prior to the
time at which any determination shall be made
that any such Person is a Customer; provided, that the foregoing shall not prohibit
any referral of business by the Seller to the Buyer; or

               (v) disparage the Buyer or any of its Affiliates in any way that could adversely affect the
goodwill, reputation or business relationships of the Business, the Buyer or any of its Affiliates
with the public generally, or with any of their customers, suppliers or employees.

          (b) Notwithstanding anything to the contrary in Section 5.4(a)(i), during the Non-Compete
Period, solely in connection with a [***], Seller may:

               (i) (A) optimize [***] (as defined below), and (B) [***]; and

               (ii) [***] following the Closing Date, [***].

For the avoidance of doubt, the activities in Section 5.4(b)(i) and (ii) are for the sole benefit
of the [***] to 5.4(b)(i) and (ii), and except in connection with 5.4(b)(i) and (ii), [***].

          (c) If during the Non-Compete Period there is a [***] and as a result [***], Seller may
request a [***].

          (d) Nothing contained herein shall limit Seller (i) from acquiring (including through a
merger) or investing in any Person whose business activities do not constitute a Competing Business
in substantial part; or (ii) from, directly or indirectly, holding or making investments in
securities of any business listed on a national securities exchange, admitted to trading in an
automated quotations market, or traded generally on

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

33

 

the over-the-counter market, so long as Seller’s direct or indirect holdings do not exceed 10%
of the outstanding equity securities thereof.

          (e) For purposes of this Section 5.4, the following definitions shall apply:

               (i) [***] means technology that is [***].

               (ii) [***] means Seller’s [***].

               (iii) “PC Client Device” means notebook, laptop, netbook, smartbook, tablet, slate, desktop,
all-in-one, thin client, nettop, handheld, or smartphone.

               (iv) “Enhance” means any addition of features or functionality to a software product or any
improvement upon features or functionality of said software product.

               (v) [***] means any technology which [***].

               (vi) “Seller Prohibited Employee” means any employee, other than Excluded Employees, who works
or is engaged in connection with the Business that (A) was employed by the Seller at any time
during the period beginning thirty (30) days prior to the date hereof and continues until the
Closing, or (B) is or becomes an employee of the Buyer on or after the Closing Date.

               (vii) “Buyer Prohibited Employee” means any employee of the Seller, other than those listed on
Schedules 5.7(b)(i) and (ii), who works or is engaged in connection with the Business on or after
the date hereof.

               (viii) [***] means a [***] vendor customer of the Seller that is [***], and is not in a [***].

               (ix) [***] means a request in writing, initiated by a [***], that is not the result of [***].

               (x) [***] means the source code or object code of the [***] directly related [***] that is not
and has not been [***].

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

34

 

               (xi) [***] means the source code or object code of [***] directly related to [***] that
is not and has not been [***].

          (f) For a period of [***] following the Closing, the Buyer’s Technical Representatives (whose
names are set forth on Annex C) shall not, during their employment with the Buyer, directly or
indirectly through any Person or contractual arrangement, solicit or recruit any person who is a
Buyer Prohibited Employee; provided,
that the foregoing shall not prohibit (i) a general solicitation to the public of general
advertising or similar methods of solicitation by search firms not specifically directed at
Business Group Employees or (ii) soliciting, recruiting or hiring any Buyer Prohibited Employee who
has ceased to be employed or retained by the Buyer, the Seller or any of their respective
Affiliates for at least 12 months.

          (g) The Seller and the Buyer acknowledge that the covenants of the Seller and the Buyer, as
applicable, set forth in this Section 5.4 are an essential element of this Agreement and
that any breach by the Seller or the Buyer, of any applicable provision of this Section 5.4
will result in irreparable injury to the other party. The Seller and the Buyer acknowledges that
in the event of such a breach, in addition to all other remedies available at law, the
non-breaching party shall be entitled to equitable relief, including injunctive relief, and an
equitable accounting of all earnings, profits or other benefits arising therefrom, as well as such
other damages as may be appropriate. The Seller and the Buyer have each independently consulted
with its counsel and after such consultation agree that the covenants set forth in this Section
5.4 are reasonable and proper to protect the legitimate interest of the Buyer and the Seller.

          (h) If a court of competent jurisdiction determines that the character, duration or
geographical scope of the provisions of this Section 5.4 are unreasonable, it is the
intention and the agreement of the parties that these provisions shall be construed by the court in
such a manner as to impose only those restrictions on the Seller’s conduct that are reasonable in
light of the circumstances and as are necessary to assure to the Buyer the benefits of this
Agreement. If, in any judicial proceeding, a court shall refuse to enforce all of the separate
covenants of this Section 5.4 because taken together they are more extensive than necessary
to assure to the Buyer the intended benefits of this Agreement, it is expressly understood and
agreed by the parties that the provisions hereof that, if eliminated, would permit the remaining
separate provisions to be enforced in such proceeding, shall be deemed eliminated, for the purposes
of such proceeding, from this Agreement.

     Section 5.5 Notification of Certain Matters; Supplements to Disclosure Schedules.

          (a) Prior to the Closing Date, the Seller shall give prompt written notice to the Buyer of
(i) the occurrence or non-occurrence of any change, condition or event, to the Knowledge of the
Seller, the occurrence or non-occurrence of which would render any representation or warranty of
the Seller contained in this Agreement or any Ancillary

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

35

 

Agreement, if made on or immediately
following the date of such event, untrue or inaccurate, (ii) the occurrence of any change,
condition or event that has had or is reasonably likely to have a Material Adverse Effect, (iii)
any failure of the Seller or any Affiliate of the Seller to comply with or satisfy any covenant or
agreement to be complied with or satisfied by it hereunder or any event or condition that would
otherwise result in the nonfulfillment of any of the conditions to the Buyer’s obligations
hereunder, (iv) any notice or other communication from any Person alleging that the consent of such
Person is or may be required in connection with the consummation of the transactions contemplated
by this Agreement or the Ancillary Agreements or (v) any Action pending or, to the
Seller’s Knowledge, threatened against a party or the parties relating to the transactions
contemplated by this Agreement or the Ancillary Agreements.

          (b) Prior to the Closing Date, the Seller shall supplement the information set forth on the
Disclosure Schedules with respect to any matter now existing or hereafter arising that, if existing
or occurring at or prior to the date of this Agreement, would have been required to be set forth or
described in the Disclosure Schedules or that is necessary to correct any information in the
Disclosure Schedules or in any representation or warranty of the Seller which has been rendered
inaccurate thereby promptly following discovery thereof. No such supplement shall be deemed to
cure any breach of any representation or warranty made in this Agreement or any Ancillary Agreement
or have any effect for purposes of determining the satisfaction of the conditions set forth in
Section 7.3, the compliance by the Seller with any covenant set forth herein or the Buyer’s rights
to indemnification pursuant to Section 8.2.

     Section 5.6 Payment of Liabilities. The Seller shall pay or otherwise satisfy in the
ordinary course of business, prior to the Closing, all of the liabilities and obligations incurred
in connection with the Business and, after the Closing, the Excluded Liabilities.

     Section 5.7 Employee Matters.

          (a) Except as specifically provided in this Section 5.7: (i) the Buyer shall not, and shall
cause its Affiliates to not, adopt, become a sponsoring employer of, or have any obligations under
or with respect to the Employee Plans, and the Seller shall be solely responsible for any and all
liabilities and obligations that have been incurred or may be incurred under or in connection with
any Employee Plan; (ii) the Seller shall be solely responsible for any and all liabilities arising
out of or relating to the employment of Business Employees who do not become Transferring Employees
(as defined below), whether such liabilities arise before, on or after the Closing Date; and (iii)
the Seller shall be solely responsible for any and all liabilities arising out of or relating to
the employment of any Transferring Employee by the Seller before the date such employee actually
commences work with the Buyer pursuant to Section 5.7(b). For purposes hereof, with respect to the
Welfare Plans, claims under any medical, dental, vision, or prescription drug plan generally will
be deemed to be incurred on the date that the service giving rise to such claim is performed and
not when such claim in made; provided, however, that with respect to claims
relating to hospitalization, the claim will be deemed to be incurred on the first day of such
hospitalization and not on the date that such services are performed. Claims for disability under
any long or short term disability plan will be incurred on the date the

36

 

Business Employee is first
absent from work because of the condition giving rise to such disability and not when the Business
Employee is determined to be eligible for benefits under the applicable Welfare Plan. On or
immediately after the Closing Date, the Seller shall pay to each Transferred Employee, as of the
Closing Date, (i) all accrued but unpaid wages, (ii) a lump sum representing all accrued vacation
benefits and (iii) to the extent applicable, a lump sum equal to the pro-rata portion of each
Transferred Employee’s target bonus for the portion of the most recent bonus period ending on the
Closing Date. In addition, to the extent this Agreement or the transactions contemplated by this
Agreement causes the acceleration of the vesting of any equity securities of the Seller held by any
Transferred Employee, with the Seller shall take such corporate action as is required to
comply with any such acceleration provision. With respect to any stock options held by any
Transferred Employee, the Seller shall provide for at least a 30-day post-termination exercise
period with respect to each such option.

          (b) The Buyer shall, or shall cause one of its Affiliates to, extend offers of employment to
each of the Business Employees listed on Schedule 5.7(b)(1) (the “Tier 1 Development
Team”) and to each of the Business Employees listed on Schedule 5.7(b)(2) (the
“Tier 2 Development Team,” together with the Tier 1 Development Team, and the Offered
Optional Employees, the “Offered Employees”; all such employees who accept the offer of
employment of the Buyer or its Affiliate are referred to as the “Transferring Employees”).
Subject to Section 5.1(m), the Seller shall have received resignations of the Transferred Employees
or shall terminate the employment of all Transferring Employees immediately prior to the Closing
and shall cooperate with and use its reasonable best efforts to assist the Buyer in its efforts to
secure satisfactory employment arrangements with the Offered Employees.

          (c) The Seller shall comply with the requirements of the WARN Act or any similar state,
provincial or local law with respect to any “plant closing” or “mass layoff,” as those terms are
defined in the WARN Act or such other applicable law, which may result from the Seller’s
termination of the employment of any of its employees in connection with the transactions
contemplated hereby through the Closing Date.

          (d) The Seller and its ERISA Affiliates shall comply with the provisions of the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), as set forth in Section
4980B of the Code and Part 6 of Title I of ERISA, with respect to any employee, former employee or
beneficiary of any such Business Employee or former Business Employee who is not a Transferred
Employee and is covered under any group health plan, as defined in Section 5000(b)(1) of the Code
(a “Group Health Plan”), maintained by the Seller and its ERISA Affiliates as of the
Closing Date or whose “qualifying event” within the meaning of Section 4980B(f) of the Code occurs
on or prior to the Closing Date, whether pursuant to the provisions of COBRA or otherwise. The
Buyer shall, or shall cause one of its Affiliates to, comply with the provisions of COBRA with
respect to Transferring Employees who are covered under any Group Health Plan maintained by the
Buyer after the Closing Date.

          (e) Following the Closing Date, the Buyer shall, or shall cause one of its Affiliates to,
pursuant to plans and arrangements established or maintained by the Buyer

37

 

(the “Buyer Welfare
Plans”), provide the Transferring Employees with health and welfare benefits that are
reasonably comparable, on an aggregate basis, to the health and welfare benefits provided to other,
similarly situated employees of the Buyer in that jurisdiction, or otherwise as required by local
law. To the extent permitted by the applicable contract, the Buyer shall, or shall cause one of
its Affiliates to, (i) waive all limitations as to pre-existing conditions, exclusions and waiting
periods with respect to participation and coverage requirements applicable to Transferring
Employees under the Buyer Welfare Plans, other than limitations or waiting periods that are already
in effect with respect to such employees and that have not been satisfied as of the Closing Date
under the corresponding Employee
Plan and (ii) provide each Transferring Employee with credit under the Buyer Welfare Plans for
any co-payments and deductibles paid under the corresponding Employee Plans prior to the Closing
Date in satisfying any applicable deductible or out-of-pocket requirements for the year in which
the Closing Date occurs.

          (f) The Buyer shall, or shall cause one of its Affiliates to, recognize the continuous service
of Transferred Employees with the Seller through the Closing Date for purposes of determining the
level of vacation accrual and service awards, but for no other Buyer plan or policy purpose.

          (g) Effective as of the Closing Date, the Buyer shall, or shall cause one of its Affiliates
to, establish or designate a defined contribution retirement plan eligible for qualification under
Section 401(a) of the Code (the “Buyer 401(k) Plan”). Each Transferring Employee who
satisfies the eligibility requirements of the Buyer 401(k) Plan shall become eligible to
participate in the Buyer 401(k) Plan on the date he or she is hired by the Buyer; each Transferring
Employee shall be credited with vesting service and eligibility service, including service for any
serviced-based employer contributions for all periods of service with the Seller or any other
entity if the Seller has consistently made matching contributions to its defined contribution
retirement plan qualified under Section 401(a) of the Code (the “Seller 401(k) Plan”) in
which any of the Transferring Employees have participated. The Buyer shall, or shall cause one of
its Affiliates to, cause the Buyer 401(k) Plan to accept direct rollovers of distributions
(including loans) to Transferring Employees from the Seller 401(k) Plan. The Seller shall take all
appropriate actions to make distributions under the Seller 401(k) Plan to such Transferred
Employees in accordance with the terms of the Seller 401(k) Plan and the applicable provisions of
the Code.

          (h) Nothing contained in this Agreement shall create any third party beneficiary rights in any
Transferring Employee, any beneficiary or dependents thereof, or any collective bargaining
representative thereof, with respect to the compensation, terms and conditions of employment and
benefits that may be provided to any Transferring Employee by the Buyer or under any benefit plan
that the Buyer may maintain.

          (i) Nothing contained in this Agreement shall confer upon any Transferring Employee any right
with respect to continued employment by the Buyer, nor shall anything herein interfere with the
right of the Buyer to terminate the employment of any Transferring Employee at any time, with or
without cause, following the effective date of his or her employment with the Buyer, or restrict
the Buyer in the exercise of its

38

 

independent business judgment in modifying any of the terms and
conditions of the employment of the Transferring Employees.

     Section 5.8 Confidentiality.

          (a) Each of the parties shall hold, and shall cause its Representatives to hold, in confidence
all documents and information furnished to it by or on behalf of the other party in connection with
the transactions contemplated hereby pursuant to the terms of the Confidentiality Agreement, which
shall continue in full force and effect until the
Closing Date, at which time such Confidentiality Agreement and the obligations of the parties
under this Section 5.8(a) shall terminate. If for any reason this Agreement is terminated prior to
the Closing Date, the Confidentiality Agreement shall nonetheless continue in full force and effect
in accordance with its terms.

          (b) Following the Closing Date, the Seller shall not, and the Seller shall cause its
Affiliates and the respective Representatives of the Seller and its Affiliates not to, use for its
or their own benefit or divulge or convey to any third party, any Confidential Information;
provided, however, that the Seller or its Affiliates may furnish such portion (and
only such portion) of the Confidential Information as the Seller or such Affiliate reasonably
determines it is legally obligated to disclose if: (i) it receives a request to disclose all or
any part of the Confidential Information under the terms of a subpoena, civil investigative demand
or order issued by a Governmental Authority; (ii) to the extent not inconsistent with such request,
it notifies the Buyer of the existence, terms and circumstances surrounding such request and
consults with the Buyer on the advisability of taking steps available under applicable Law to
resist or narrow such request; (iii) it exercises its commercially reasonable efforts to obtain an
order or other reliable assurance that confidential treatment will be accorded to the disclosed
Confidential Information; and (iv) disclosure of such Confidential Information is required to
prevent the Seller or such Affiliate from being held in contempt or becoming subject to any other
penalty under applicable Law. For purposes of this Agreement, “Confidential Information”
consists of all information and data primarily relating to the Business (including Intellectual
Property, customer and supplier lists, pricing information, marketing plans, market studies, client
development plans, business acquisition plans and all other information or data), the Purchased
Assets (including Intellectual Property, customer and supplier lists, pricing information,
marketing plans, market studies, client development plans, business acquisition plans and all other
information or data) or the transactions contemplated hereby, except for data or information that
is or becomes available to the public other than as a result of a breach of this Section 5.8.
Notwithstanding anything to the contrary set forth herein, Confidential Information shall not
include any information that (i) is or becomes generally known to the public without fault of the
Seller; (ii) is independently developed by the Seller or its Affiliates without use of Confidential
Information; or (iii) is rightfully obtained by the Seller or its Affiliates from a third party
without any obligation of confidentiality to the Buyer.

          (c) Effective as of the Closing, the Seller hereby assigns to the Buyer all of the Seller’s
right, title and interest in and to any confidentiality agreements entered into by the Seller (or
its Affiliates or Representatives) and each Person (other than the Buyer

39

 

and its Affiliates and
Representatives) who entered into any such agreement or to whom Confidential Information was
provided in connection with any transaction involving the acquisition or purchase of all or any
portion of the Business or the Purchased Assets. From and after the Closing, the Seller will take
all actions reasonably requested by the Buyer in order to assist in enforcing the rights so
assigned. The Seller shall request that any such Person return to the Seller any documents, files,
data or other materials constituting Confidential Information that was provided to such Person in
connection with the consideration of any such transaction.

          (d) Effective as of the Closing, the Seller agrees to use reasonable efforts, at the Buyer’s
sole cost, to enforce the confidentiality covenants in any retained confidentiality agreement that
relates to the Purchased Assets, if reasonably requested by the Buyer to do so in connection with
an actual or threatened breach of the confidentiality covenants by the other party to the agreement
that relates to the trade secrets or other confidential information transferred to the Buyer.

     Section 5.9 The Trademark Opposition Settlement Agreement. The Seller shall use
commercially reasonable efforts to be in full compliance with the terms of the Trademark Opposition
Settlement Agreement on the Closing Date.

     Section 5.10 Consents and Filings. The Seller and the Buyer shall use all
commercially reasonable efforts to take, or cause to be taken, all appropriate action to do, or
cause to be done, all things necessary, proper or advisable under applicable Law or otherwise to
consummate and make effective the transactions contemplated by this Agreement and the Ancillary
Agreements as promptly as practicable, including to (a) obtain from Governmental Authorities and
other Persons all consents, approvals, authorizations, qualifications and orders as are necessary
for the consummation of the transactions contemplated by this Agreement and the Ancillary
Agreements, including, but not limited to, the consents from third party licensors with respect to
the Inbound Licenses and (b) have vacated, lifted, reversed or overturned any order, decree,
ruling, judgment, injunction or other action (whether temporary, preliminary or permanent) that is
then in effect and that enjoins, restrains, conditions, makes illegal or otherwise restricts or
prohibits the consummation of the transactions contemplated by this Agreement and the Ancillary
Agreements. In furtherance and not in limitation of the foregoing, the Seller shall permit the
Buyer reasonably to participate in the defense and settlement of any claim, suit or cause of action
relating to this Agreement or the transactions contemplated hereby, and the Seller shall not settle
or compromise any such claim, suit or cause of action without the Buyer’s written consent.
Notwithstanding anything herein to the contrary, the Buyer shall not be required by this Section
5.10 to take or agree to undertake any action, including entering into any consent decree, hold
separate order or other arrangement, that would (i) require the divestiture of any assets of the
Buyer or any of its Affiliates or any portion of the Business or the Purchased Assets or (ii) limit
the Buyer’s freedom of action with respect to, or its ability to consolidate and control, the
Business or the Purchased Assets or any of the Buyer’s or its Affiliates’ other assets or
businesses.

     Section 5.11 Public Announcements. On and after the date hereof and through the
Closing Date, the parties shall consult with each other before issuing any press release

40

 

or
otherwise making any public statements with respect to this Agreement or the transactions
contemplated hereby, and neither party shall issue any press release or make any public statement
prior to obtaining the other party’s written approval, which approval shall not be unreasonably
withheld, except that no such approval shall be necessary to the extent disclosure may be required
by applicable Law or any listing agreement of any party hereto. Notwithstanding the foregoing, the
Seller agrees to cooperate with the Buyer and provide the Buyer reasonable time and opportunity to
review and comment on any information relating to this Agreement or the transactions contemplated
hereby which is
disclosed pursuant to (i) public filings requirements and (ii) any request made by the Seller
for confidential treatment of information required to be disclosed in public filings.

     Section 5.12 [***] Simultaneous with the Closing, Seller shall [***].

     Section 5.13 [***] Between the date of this Agreement and the Closing Date, but completed no
later than [***], the Seller shall, [***]; provided, however, that [***].

ARTICLE VI

TAX MATTERS

     Section 6.1 Transfer Taxes. The Seller shall be liable for and shall pay all Transfer
Taxes resulting from the transactions contemplated by this Agreement. “Transfer Tax” means
any Tax imposed directly or indirectly on the transferor or transferee of property by any taxing
jurisdiction by reason of the transfer, or any Tax that becomes a lien on the property transferred
by reason of the transfer, including without limitation any stamp duty, sales, use or excise Tax,
real estate transfer Taxes or Taxes of a similar nature, including any interest, penalties or
additions to Tax that become payable with respect to such Tax.

     Section 6.2 Purchase Price Allocation. The Buyer shall prepare, or cause to be
prepared, a statement (the “Allocation Statement”) allocating the consideration (including
the Purchase Price and the amount of the Assumed Liabilities) and any other items that are treated
as additional purchase price for Tax purposes, among the Purchased Assets in accordance with Code §
1060 and applicable Treasury Regulations thereunder (and any similar provision of state, local, or
non-U.S. law, as appropriate). The Buyer shall deliver the Allocation Statement to the Seller
within forty-five (45) days after the Closing Date. Within fifteen (15) days of delivery of the
Allocation Statement, the Seller shall notify the Buyer of any proposed changes to the Allocation
Statement. The parties shall attempt in good faith to agree to the Allocation Statement, but if
the parties cannot agree on the Allocation Statement within thirty (30) days after such Seller
notification, the dispute shall be resolved by a Tax Arbitrator within forty-five (45) days. The
finally determined

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

41

 

Allocation Statement shall be binding upon the Seller and the Buyer. In the case of any
adjustments to the consideration, the Allocation Statement will be adjusted accordingly.

     Section 6.3 Prorations. The Seller shall bear all property and ad valorem tax
liability with respect to the Purchased Assets if the lien or assessment date arises prior to the
Closing Date irrespective of the reporting and payment dates of such taxes. All other real
property taxes, personal property taxes, or ad valorem obligations and similar recurring taxes and
fees on the Purchased Assets for taxable periods beginning before, and ending after, the Closing
Date, shall be prorated between the Buyer and the Seller as of the
Closing Date. The Seller shall be responsible for all such taxes and fees on the Purchased
Assets accruing during any period up to and including the Closing Date. The Buyer shall be
responsible for all such taxes and fees on the Purchased Assets accruing during any period after
the Closing Date. With respect to Taxes described in this Section 6.3, the Seller shall timely
file all Tax Returns due before the Closing Date with respect to such Taxes and the Buyer shall
prepare and timely file all Tax Returns due after the Closing Date with respect to such Taxes. If
one party remits to the appropriate Governmental Authority payment for Taxes, which are subject to
proration under this Section 6.3 and such payment includes the other party’s share of such Taxes,
such other party shall promptly reimburse the remitting party for its share of such Taxes.

     Section 6.4 Tax Clearance Certificate. At the Buyer’s request, the Seller shall
notify all of the Governmental Authorities for the jurisdictions with respect to which the Seller
has a duty to file Tax Returns of the transactions contemplated by this Agreement in the form and
manner required by such Governmental Authorities, if the failure to makes such notifications or
receive any available tax clearance certificate (each, a “Tax Clearance Certificate”) could
subject the Buyer to any Taxes of the Seller. If, in respect to any application for a Tax
Clearance Certificate, and Governmental Authority asserts that the Seller is liable for any Tax,
the Seller shall promptly pay any and all such amounts and shall provide evidence to the Buyer that
such liabilities have been paid in full or otherwise satisfied.

ARTICLE VII

CONDITIONS TO CLOSING

     Section 7.1 General Conditions. The respective obligations of the Buyer and the
Seller to consummate the transactions contemplated by this Agreement shall be subject to the
fulfillment, at or prior to the Closing, of each of the following conditions, any of which may, to
the extent permitted by applicable Law, be waived in writing by either party in its sole discretion
(provided, that such waiver shall only be effective as to the obligations of such party):

          (a) No Injunction or Prohibition. No Governmental Authority shall have enacted,
issued, promulgated, enforced or entered any Law (whether temporary, preliminary or permanent) that
is then in effect and that enjoins, restrains, conditions, makes illegal or otherwise prohibits the
consummation of the transactions contemplated by this Agreement or the Ancillary Agreements.

42

 

     Section 7.2 Conditions to Obligations of the Seller. The obligations of the Seller to
consummate the transactions contemplated by this Agreement shall be subject to the fulfillment, at
or prior to the Closing, of each of the following conditions, any of which may be waived in writing
by the Seller in its sole discretion:

          (a) Representations, Warranties and Covenants. The representations and warranties of
the Buyer contained in this Agreement or any Ancillary Agreement or any schedule, certificate or
other document delivered pursuant hereto or thereto or in connection with the transactions
contemplated hereby or thereby that are qualified by
materiality shall be true and correct both when made and as of the Closing Date, or in the
case of representations and warranties that are made as of a specified date, such representations
and warranties shall be true and correct as of such specified date and the representations and
warranties of the Buyer contained in this Agreement or any Ancillary Agreement or any schedule,
certificate or other document delivered pursuant hereto or thereto or in connection with the
transactions contemplated hereby or thereby that are not so qualified shall be true and correct in
all material respects both when made and as of the Closing Date, or in the case of representations
and warranties that are made as of a specified date, such representations and warranties shall be
true and correct in all material respects as of such specified date. The Buyer shall have
materially performed all obligations and agreements and materially complied with all covenants and
conditions
required by this Agreement or any Ancillary Agreement to be performed or complied with
by it prior to or at the Closing.

          (b) Deliveries. The Seller shall have received an executed copy of each of the
documents listed in Section 2.7(c).

     Section 7.3 Conditions to Obligations of the Buyer. The obligations of the Buyer to
consummate the transactions contemplated by this Agreement shall be subject to the fulfillment, at
or prior to the Closing, of each of the following conditions, any of which may be waived in writing
by the Buyer in its sole discretion:

          (a) Representations, Warranties and Covenants. The representations and warranties of
the Seller contained in this Agreement or any Ancillary Agreement or any schedule, certificate or
other document delivered pursuant hereto or thereto or in connection with the transactions
contemplated hereby or thereby that are qualified by materiality shall be true and correct both
when made and as of the Closing Date, or in the case of representations and warranties that are
made as of a specified date, such representations and warranties shall be true and correct as of
such specified date and the representations and warranties of the Seller contained in this
Agreement or any Ancillary Agreement or any schedule, certificate or other document delivered
pursuant hereto or thereto or in connection with the transactions contemplated hereby or thereby
that are not so qualified shall be true and correct in all material respects both when made and as
of the Closing Date, or in the case of representations and warranties that are made as of a
specified date, such representations and warranties shall be true and correct in all material
respects as of such specified date. The Seller shall have materially performed all obligations and
agreements and materially complied with all covenants and conditions

43

 

required by this Agreement or
any Ancillary Agreement to be performed or complied with by it prior to or at the Closing.

          (b) Consents and Approvals. All authorizations, consents, orders and approvals of all
Governmental Authorities and officials and all third party consents that are set forth on
Schedule 7.3(b) shall have been received and shall be satisfactory in form and substance to
the Buyer in its sole discretion.

          (c) No Litigation. No Action shall have been commenced or, to the Knowledge of
Seller, threatened that, in the reasonable, good faith determination of the
Buyer, is reasonably likely to (i) require divestiture of any assets of the Buyer as a result
of the transactions contemplated by this Agreement or the divestiture of any Purchased Assets, (ii)
prohibit or impose limitations on the Buyer’s ownership or operation of all or a material portion
of the Business or the Purchased Assets or any of its other businesses or assets (or those of any
of its Subsidiaries or Affiliates) or (iii) impose limitations on the ability of the Buyer or its
Affiliates, or render the Buyer or its Affiliates unable, effectively to control the Business or
the Purchased Assets in any material respect.

          (d) [***] The Buyer and the Seller shall have entered into a [***] upon mutually agreeable
terms whereby (i) [***] and (ii) the Seller shall provide the Buyer with [***].

          (e) Trademark Opposition Settlement Agreement. The Seller shall be in full compliance
with the terms of the Trademark Opposition Settlement Agreement as of the Closing Date.

          (f) Employee Matters. Employment offer letters, as well as any standard Buyer
non-competition, non-solicitation and invention assignment agreements, shall have been accepted and
executed by each individual [***] and delivered to the Buyer. Employment offer letters, as well as
any standard Buyer non-competition, non-solicitation and invention assignment agreements, shall
have been accepted and executed by not less than [***] of the individuals [***] and delivered to
the Buyer.

          (g) Deliveries. The Buyer shall have received an executed copy of each of the
documents listed in Section 2.7(b).

          (h) No Material Adverse Effect. There shall not have occurred any change, event or
development or prospective change, event or development that,

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

44

 

individually or in the aggregate, has had or could reasonably be expected to have a Material
Adverse Effect.

          (i) [***] The Seller shall send [***], to the Buyer’s satisfaction, that the Seller has
[***].

          (j) Offered Employee Non-Competition Agreements. To the reasonable satisfaction of
Buyer, each of the Offered Employee Non-Competition Agreements shall have been terminated by the
Seller or the relevant provisions of such agreement shall have been waived by the Seller.

          (k) [***] shall be [***].

ARTICLE VIII

INDEMNIFICATION

     Section 8.1 Survival of Representations and Warranties. The representations and
warranties of the Seller and the Buyer contained in this Agreement and the Ancillary Agreements and
any schedule, certificate or other document delivered pursuant hereto or thereto or in connection
with the transactions contemplated hereby or thereby shall survive the Closing until the third
anniversary of the Closing Date; provided, however, that:

          (a) the representations and warranties set forth in Sections 3.1 and 4.1 relating to
organization and existence, Sections 3.2 and 4.2 relating to authority, Section 3.4 relating to the
Purchased Assets (Sections 3.1, 3.2, 3.4, 4.1 and 4.2 are collectively referred to herein as the
“Core Representations”), and any representation in the case of fraud, intentional
misrepresentation or intentional breach, shall survive indefinitely;

          (b) the representations and warranties set forth in Section 3.11 relating to Taxes shall
survive until the close of business on the 120th day following the expiration of the applicable
statute of limitations with respect to the Tax liabilities in question (giving effect to any
waiver, mitigation or extension thereof); and

          (c) the survival of the representation and warranties in the Buyer License Agreement shall be
governed by the terms of that agreement.

Neither the Seller nor the Buyer shall have any liability whatsoever with respect to any such
representations and warranties unless a claim is made hereunder prior to the expiration of the
survival period for such representation and warranty, in which case such representation and
warranty shall survive as to such claim until such claim has been finally resolved.

     Section 8.2 Indemnification by the Seller. The Seller shall save, defend, indemnify
and hold harmless the Buyer and its Affiliates and the respective

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

45

 

Representatives, successors and assigns of each of the foregoing (each, a “Buyer
Indemnified Party”, and collectively, the “Buyer Indemnified Parties”) from and against
any and all losses, damages, liabilities, deficiencies, claims, diminution of value, interest,
awards, judgments, penalties, costs and expenses (including attorneys’ fees, costs and other
out-of-pocket expenses incurred in investigating, preparing or defending the foregoing)
(hereinafter collectively, “Losses”), asserted against, incurred, sustained or suffered by
any of the foregoing as a result of, arising out of or relating to:

          (a) any breach of any representation or warranty made by the Seller contained in this
Agreement or any Ancillary Agreement or any schedule, certificate or other document delivered
pursuant hereto or thereto or in connection with the transactions contemplated hereby or thereby;

          (b) any breach of any covenant or agreement by the Seller contained in this Agreement or any
Ancillary Agreement;

          (c) any of the Excluded Liabilities;

          (d) any and all Taxes (including any interest, additions and penalties with respect thereto)
imposed on the Buyer in connection with the Business or the Purchased Assets, or for which the
Buyer is liable, with respect to all periods ending on or before the Closing Date or that are
imposed on the transactions pursuant to this Agreement, or a pro rata portion (based on an interim
closing of the books) of any such Taxes for any period that ends after but includes the Closing
Date, and any costs or expenses with respect to tax indemnification arising hereunder;

          (e) the Seller’s failure to comply with the terms and conditions of any bulk sales or bulk
transfer or similar laws of any jurisdiction that may be applicable to the sale or transfer of any
or all of the Purchased Assets to the Buyer;

          (f) each of the Contracts set forth on Schedule 2.2(d), such right to indemnification of the
Buyer pursuant to this Section 8.2(f) shall survive the Closing and shall survive until the date
two years after the date of the expiration or termination of each such Contract or amendment
thereto; and

          (g) any of the matters set forth on Schedule 8.2(g); provided that no Buyer Indemnified Party
shall be entitled to make a claim for indemnification pursuant to this Section 8.2(g) following the
date thirty (30) days after the termination of the Escrow Period.

     Section 8.3 Indemnification by the Buyer. The Buyer shall save, defend, indemnify and
hold harmless the Seller and its Affiliates and the respective Representatives, successors and
assigns of each of the foregoing (each, a “Seller Indemnified Party”, and collectively, the
“Seller Indemnified Parties”) from and against any and all Losses asserted against,
incurred, sustained or suffered by any of the foregoing as a result of, arising out of or relating
to:

46

 

          (a) any breach of any representation or warranty made by the Buyer contained in this Agreement
or any Ancillary Agreement or any schedule, certificate or other document delivered pursuant hereto
or thereto or in connection with the transactions contemplated hereby or thereby (without giving
effect to any limitations or qualifications as to materiality, Material Adverse Effect, knowledge
or other exception set forth therein);

          (b) any of the Assumed Liabilities; and

          (c) any breach of any covenant or agreement by the Buyer contained in this Agreement or any
Ancillary Agreement or any schedule, certificate or other document delivered pursuant hereto or
thereto or in connection with the transactions contemplated hereby or thereby.

     Section 8.4 Limitations.

          (a) An indemnifying party shall not be liable for any Loss or Losses pursuant to Sections
8.2(a) or 8.3(a) (“Warranty Losses”) unless and until the aggregate amount of all Losses
incurred by the party seeking indemnification exceeds [***], in which event the indemnifying party
shall be liable for all Warranty Losses [***]; except, however, that no minimum dollar amount is
required for Losses relating to or arising from a breach of the Core Representations.

          (b) Neither the Seller or the Buyer shall be required to indemnify any Person under Sections
8.2(a) or 8.3(a) for an aggregate amount of Warranty Losses exceeding [***] (the
“Indemnification Cap”); provided, however, that (i) the Indemnification Cap for Seller
shall be reduced by the dollar amount equal to any amounts paid to Buyer Indemnified Parties out of
the Escrow Fund, (ii) the Indemnification Cap shall not apply to [***], and (iii) nothing contained
in this Section shall be deemed to limit or restrict in any manner any rights or remedies which an
indemnified party has, or might have, at Law, in equity or otherwise, based on fraud or intentional
misrepresentation.

          (c) The indemnified parties acknowledge and agree that, should the Closing occur, the sole and
exclusive remedy with respect to any and all Losses arising out of, relating to or connected with
this Agreement and the transactions contemplated hereby, (other than claims of, or causes of action
arising from, fraud) shall be pursuant to the indemnification provisions set forth in this Article
VIII; provided that nothing in this Section 8.4(c) shall limit or restrict the ability of any party
hereto to seek injunctive or other equitable relief for any breach or alleged breach of this
Agreement or any provision hereof.

          (d) Buyer Indemnified Parties shall first satisfy their claims for indemnification for any
Loss or Losses arising pursuant to Section 8.2(g) in full from the Escrow Fund before seeking
indemnification under this Agreement directly from the Company.

     Section 8.5 Materiality; Knowledge; No Right of Contribution. For the purpose of quantifying an indemnified party’s Warranty Losses under this
ARTICLE VIII only,

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

47

 

any representation or warranty given or made by the Seller that is qualified in scope as to
materiality (including a Material Adverse Effect) or as to Knowledge shall be deemed to be made or
given without such qualification. There shall be no right of contribution from the Buyer with
respect to any Loss claimed by an indemnified party.

     Section 8.6 Knowledge of the Buyer. Any due diligence review, audit or other
investigation or inquiry undertaken or performed by or on behalf of the Buyer shall not limit,
qualify, modify or amend the representations, warranties or covenants of, or indemnities by the
Seller made or undertaken pursuant to this Agreement, irrespective of the knowledge and information
received (or which should have been received) therefrom by the Buyer.

     Section 8.7 Indemnification Procedure for Third Party Claims.

          (a) In the event that an indemnified party (the “Indemnitee”) becomes aware of any
claim or demand, or other circumstance or state of facts which could reasonably give rise to any
claim or demand, for which a party may become obligated under Section 8.2 or 8.3, as applicable,
(such party, the “Indemnitor”) to indemnify the Indemnitee (a “Third Party Claim”),
the Indemnitee shall as soon as practicable notify the Indemnitor in writing of such Third Party
Claim (“Notice of Claim”). Delay or failure in so notifying the Indemnitor shall relieve
the Indemnitor of its obligations under this Article VIII only to the extent, if at all, that the
Indemnitor is prejudiced by reason of such delay or failure.

          (b) The Indemnitor will have 20 days from the date on which the Indemnitor received the Notice
of Claim to notify the Indemnitee that the Indemnitor desires to assume the defense or prosecution
of such Third Party Claim and any litigation resulting therefrom with counsel of its choice and at
its sole cost and expense (a “Third Party Defense”). If the Indemnitor fails to assume the
defense of any such Third Party Claim within 20 days of the delivery of the Notice of Claim, the
Indemnitee may assume control of the defense of the claim. In all cases, the party without the
right to control the defense may retain separate co-counsel at its sole cost and expense and
participate in the defense of the Third Party Claim. Notwithstanding anything to the contrary
contained herein, neither the Indemnitee nor the Indemnitor will file any papers or consent to the
entry of any judgment or enter into any settlement with respect to a Third Party Claim without the
prior written consent of the other party. The parties will use commercially reasonable efforts to
minimize Losses from Third Party Claims and will act in good faith in responding to, defending
against, settling or otherwise dealing with such claims. The parties will also cooperate in any
such defense and give each other reasonable access to all information relevant thereto.

     Section 8.8 Indemnification Procedure for Non Third Party Claims. The Indemnitee will
notify the Indemnitor in writing promptly of its discovery of any matter that does not involve a
Third Party Claim, such notice to contain the information set forth in the following sentence. In
the event that the Indemnitor does not notify the Indemnitee that it disputes such claim within 20
days from receipt of such Notice of Claim, the claim

48

 

specified therein shall be deemed a liability
of the Indemnitor hereunder (subject to the Indemnity Cap and the other limitations set forth in
Section 8.4, as applicable).

     Section 8.9 Remedies Not Affected by Investigation, Disclosure or Knowledge. If the
transactions contemplated hereby are consummated, the Buyer expressly reserves the right to seek
indemnity or other remedy for any Losses arising out of or relating to any breach of any
representation, warranty, or covenant contained herein, notwithstanding any investigation by,
disclosure to or knowledge of such party in respect of any facts or circumstances that reveal the
occurrence of any such breach, whether before or after the execution and delivery hereof.

     Section 8.10 Effect on Purchase Price. The Buyer and the Seller agree that any
indemnification payment made pursuant to this Agreement shall be treated for Tax purposes as an
adjustment to the Purchase Price, unless otherwise required by Applicable Law.

     Section 8.11 Escrow Fund. On the Closing Date, the Buyer, the Escrow Agent, and the
Seller shall execute and deliver the Escrow Agreement, and, as promptly as practicable thereafter,
the Buyer shall deposit the Escrow Amount with the Escrow Agent to be held as a trust fund (the
“Escrow Fund”) for the purpose of securing the indemnification obligations of the Seller
set forth in Section 8.2(g) of this Agreement. The Escrow Fund shall be held by the Escrow Agent
under the Escrow Agreement pursuant to the terms thereof. The Escrow Fund shall be held as a trust
fund and shall not be subject to any lien, attachment, trustee process or any other judicial
process of any creditor of any party, and shall be held and disbursed solely for the purposes and
in accordance with the terms of the Escrow Agreement. The Buyer and the Seller shall deliver to the
Escrow Agent written notice of the final resolution of any claim for indemnification arising under
Section 8.2(g) together with instructions on the distribution of amounts payable to a Buyer
Indemnified Party, if any, in accordance with such final resolution. No portion of the Escrow Fund
shall be released without the written consent of the Buyer, which consent shall not be unreasonably
withheld in the event that the Buyer has not made any claim for indemnification during the Escrow
Period.

ARTICLE IX

TERMINATION

     Section 9.1 Termination. This Agreement may be terminated at any time prior to the
Closing:

          (a) by mutual written consent of the Buyer and the Seller;

          (b) (i) by the Seller, if the Buyer breaches or fails to perform in any respect any of its
representations, warranties or covenants contained in this Agreement or any Ancillary Agreement and
such breach or failure to perform (A) would give rise to the failure of a condition set forth in
Section 7.2, (B) cannot be or has not been cured within [***] days following delivery by the Buyer
of written notice of such breach or failure to perform and (C) has not been waived by the Seller or
(ii) by the Buyer, if the Seller

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

49

 

breaches or fails to perform in any respect any of its
representations, warranties or covenants contained in this Agreement or any Ancillary Agreement and
such breach or failure to perform (A) would give rise to the failure of a condition set forth in
Section 7.3, (B) cannot be or has not been cured within [***] Business Days following delivery by
the Seller or written notice of such breach or failure to perform and (C) has not been waived by
the Buyer;

          (c) (i) by the Seller, if any of the conditions set forth in Section 7.1 or Section 7.2 shall
have become incapable of fulfillment prior to August 31, 2010 or (ii) by the Buyer, if any of the
conditions set forth in Section 7.1 or Section 7.3 shall have become incapable of fulfillment prior
to August 31, 2010; provided, that the right to terminate this Agreement pursuant to this
Section 9.1(c) shall not be available if the failure of the party so requesting termination to
fulfill any obligation under this Agreement shall have been the cause of, or shall have resulted
in, the failure of such condition to be satisfied on or prior to such date;

          (d) by either the Seller or the Buyer if the Closing shall not have occurred by August 31,
2010; provided, that the right to terminate this Agreement under this Section 9.1(d) shall
not be available if the failure of the party so requesting termination to fulfill any obligation
under this Agreement shall have been the cause of, or shall have resulted in, the failure of the
Closing to occur on or prior to such date;

          (e) by either the Seller or the Buyer in the event that any Governmental Authority shall have
issued an order, decree or ruling or taken any other action restraining, enjoining or otherwise
prohibiting the transactions contemplated by this Agreement and such order, decree, ruling or other
action shall have become final and nonappealable; provided, that the party so requesting
termination shall have used its commercially reasonable efforts to have such order, decree, ruling
or other action vacated; or

          (f) by the Buyer, if between the date hereof and the Closing, an event or condition occurs
that has had or is reasonably likely to have a Material Adverse Effect.

The party seeking to terminate this Agreement pursuant to this Section 9.1 (other than Section
9.1(a)) shall give prompt written notice of such termination to the other party.

     Section 9.2 Effect of Termination . In the event of termination of this Agreement as provided in Section 9.1, this
Agreement shall forthwith become void and there shall be no liability on the part of either party
except (a) for the provisions of Section 5.8 relating to confidentiality, Section 5.11 relating to
public announcements, Section 10.1 relating to fees and expenses, Section 10.4 relating to notices,
Section 10.7 relating to third-party beneficiaries, Section 10.8 relating to governing law, Section
10.9 relating to submission to jurisdiction and this Section 9.2 and (b) that nothing herein shall
relieve either party from liability for any willful breach of this Agreement or any agreement made
as of the date hereof or subsequent thereto pursuant to this Agreement.

*** CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION

50

 

ARTICLE X

GENERAL PROVISIONS

     Section 10.1 Fees and Expenses. Except as otherwise provided herein, all fees and
expenses incurred in connection with or related to this Agreement and the Ancillary Agreements and
the transactions contemplated hereby and thereby shall be paid by the party incurring such fees or
expenses, whether or not such transactions are consummated; provided, that no such fees and
expenses payable by the Seller shall be paid from any assets otherwise transferable to the Buyer
pursuant hereto. In the event of termination of this Agreement, the obligation of each party to
pay its own expenses will be subject to any rights of such party arising from a breach of this
Agreement by the other.

     Section 10.2 Amendment and Modification. This Agreement may not be amended, modified
or supplemented in any manner, whether by course of conduct or otherwise, except by an instrument
in writing specifically designated as an amendment hereto, signed on behalf of each party.

     Section 10.3 Waiver. No failure or delay of either party in exercising any right or
remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise
of any such right or power, or any abandonment or discontinuance of steps to enforce such
right or power, or any course of conduct, preclude any other or further exercise thereof or the
exercise of any other right or power. The rights and remedies of the parties hereunder are
cumulative and are not exclusive of any rights or remedies which they would otherwise have
hereunder. Any agreement on the part of either party to any such waiver shall be valid only if set
forth in a written instrument executed and delivered by a duly authorized officer on behalf of such
party.

     Section 10.4 Notices. All notices and other communications hereunder shall be in
writing and shall be deemed duly given (a) on the date of delivery if delivered personally, or if
by facsimile, upon written confirmation of receipt by facsimile, (b) on the first Business Day
following the date of dispatch if delivered utilizing a next-day service by a recognized next-day
courier or (c) on the earlier of confirmed receipt or the fifth Business Day following the date of
mailing if delivered by registered or certified mail, return receipt requested, postage prepaid.
All notices hereunder shall be delivered to the addresses set forth below, or pursuant to such
other instructions as may be designated in writing by the party to receive such notice:

	 	(i)	 	if to the Seller, to:
	 
	 	 	 	Phoenix Technologies Ltd.

915 Murphy Ranch Road

Milpitas, CA 95035

Attention: Timothy Chu, VP and General Counsel

Facsimile: (408) 570-1001

51

 

	 	 	 	with a copy (which shall not constitute notice) to:
	 
	 	 	 	Morgan Lewis & Bockius LLP

2 Palo Alto Square

3000 El Camino Real, Suite 700

Palo Alto, CA 94306-2121

Attention: William A. Myers

Facsimile: (650) 843-4001
	 
	 	(ii)	 	if to the Buyer, to:
	 
	 	 	 	Hewlett-Packard Company

3000 Hanover Street

Palo Alto, California 94304

Attention: General Counsel

Facsimile: (650) 857-4837
	 
	 	 	 	with a copy (which shall not constitute notice) to:
	 
	 	 	 	Gibson, Dunn & Crutcher LLP

1881 Page Mill Road

Palo Alto, California 94304

Attention: Russell C. Hansen

Facsimile: (650) 849-5083

     Section 10.5 Interpretation. When a reference is made in this Agreement to a Section,
Article or Exhibit such reference shall be to a Section, Article or Exhibit of this Agreement
unless otherwise indicated. The table of contents and headings contained in this Agreement or in
any Exhibit are for convenience of reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement. All words used in this Agreement will be construed to
be of such gender or number as the circumstances require. Any capitalized terms used in any
Exhibit but not otherwise defined therein shall have the meaning as defined in this Agreement. All
Exhibits annexed hereto or referred to herein are hereby incorporated in and made a part of this
Agreement as if set forth herein. The word “including” and words of similar import when used in
this Agreement will mean “including, without limitation,” unless otherwise specified.

     Section 10.6 Entire Agreement. This Agreement (including the Exhibits and Schedules
hereto), the Ancillary Agreements and the Confidentiality Agreement constitute the entire
agreement, and supersede all prior written agreements, arrangements, communications and
understandings and all prior and contemporaneous oral agreements, arrangements, communications and
understandings between the parties with respect to the subject matter hereof and thereof.
Notwithstanding any oral agreement or course of action of the parties or their Representatives to
the contrary, no party to this Agreement shall be under any legal obligation to enter into or
complete the transactions contemplated hereby unless and until this Agreement shall have been
executed and delivered by each of the parties.

52

 

     Section 10.7 No Third-Party Beneficiaries. Except as provided in Article VIII,
nothing in this Agreement, express or implied, is intended to or shall confer upon any Person other
than the parties and their respective successors and permitted assigns any legal or equitable
right, benefit or remedy of any nature under or by reason of this Agreement.

     Section 10.8 Governing Law. This Agreement and all disputes or controversies arising
out of or relating to this Agreement or the transactions contemplated hereby shall be governed by,
and construed in accordance with, the internal laws of the State of Delaware, without regard to the
laws of any other jurisdiction that might be applied because of the conflicts of laws principles of
the State of Delaware.

     Section 10.9 Submission to Jurisdiction. Each of the parties irrevocably agrees that
any legal action or proceeding arising out of or relating to this Agreement brought by the other
party or its successors or assigns shall be brought and determined in any Delaware or federal court
sitting in the state of State of Delaware, and each of the parties
hereby irrevocably submits to the exclusive jurisdiction of the aforesaid courts for itself
and with respect to its property, generally and unconditionally, with regard to any such action or
proceeding arising out of or relating to this Agreement and the transactions contemplated hereby.
Each of the parties agrees not to commence any action, suit or proceeding relating thereto except
in the courts described above in Delaware, other than actions in any court of competent
jurisdiction to enforce any judgment, decree or award rendered by any such court in Delaware as
described herein. Each of the parties further agrees that notice as provided herein shall
constitute sufficient service of process and the parties further waive any argument that such
service is insufficient. Each of the parties hereby irrevocably and unconditionally waives, and
agrees not to assert, by way of motion or as a defense, counterclaim or otherwise, in any action or
proceeding arising out of or relating to this Agreement or the transactions contemplated hereby,
(a) any claim that it is not personally subject to the jurisdiction of the courts in Delaware as
described herein for any reason, (b) that it or its property is exempt or immune from jurisdiction
of any such court or from any legal process commenced in such courts (whether through service of
notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of
judgment or otherwise) and (c) that (i) the suit, action or proceeding in any such court is brought
in an inconvenient forum, (ii) the venue of such suit, action or proceeding is improper or (iii)
this Agreement, or the subject matter hereof, may not be enforced in or by such courts.

     Section 10.10 Assignment; Successors. Neither this Agreement nor any of the rights,
interests or obligations under this Agreement may be assigned or delegated, in whole or in part, by
operation of law or otherwise, by either party without the prior written consent of the other
party, and any such assignment without such prior written consent shall be null and void;
provided, however, that the Buyer may assign this Agreement to any Affiliate of the
Buyer without the prior consent of the Seller; provided further, that no assignment
shall limit the assignor’s obligations hereunder. Subject to the preceding sentence, this
Agreement will be binding upon, inure to the benefit of, and be enforceable by, the parties and
their respective successors and assigns.

53

 

     Section 10.11 Enforcement. The parties agree that irreparable damage would occur in
the event that any of the provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached. Accordingly, each of the parties shall be entitled to
specific performance of the terms hereof, including an injunction or injunctions to prevent
breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement
in any Delaware State or federal court sitting in the State of Delaware, this being in addition to
any other remedy to which such party is entitled at law or in equity. Each of the parties hereby
further waives (a) any defense in any action for specific performance that a remedy at law would be
adequate and (b) any requirement under any law to post security as a prerequisite to obtaining
equitable relief.

     Section 10.12 Currency. All references to “dollars” or “$” or “US$” in this Agreement
or any Ancillary Agreement refer to United States dollars, which is the currency used for all
purposes in this Agreement and any Ancillary Agreement.

     Section 10.13 Severability. Whenever possible, each provision or portion of any
provision of this Agreement shall be interpreted in such manner as to be effective and valid under
applicable Law, but if any provision or portion of any provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable Law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision
or portion of any provision in such jurisdiction, and this Agreement shall be reformed, construed
and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion
of any provision had never been contained herein.

     Section 10.14 Waiver of Jury Trial. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

     Section 10.15 Counterparts. This Agreement may be executed in two or more
counterparts, all of which shall be considered one and the same instrument and shall become
effective when one or more counterparts have been signed by each of the parties and delivered to
the other party.

     Section 10.16 Facsimile Signature. This Agreement may be executed by facsimile
signature and a facsimile signature shall constitute an original for all purposes.

     Section 10.17 Time of Essence. Time is of the essence with regard to all dates and
time periods set forth or referred to in this Agreement.

     Section 10.18 No Presumption Against Drafting Party. Each of the Buyer and the Seller
acknowledges that each party to this Agreement has been represented by counsel in connection with
this Agreement and the transactions contemplated by this Agreement. Accordingly, any rule of law
or any legal decision that would require interpretation of any claimed ambiguities in this
Agreement against the drafting party has no application and is expressly waived.

54

 

     IN WITNESS WHEREOF, the Buyer and the Seller have caused this Agreement to be executed as of
the date first written above by their respective officers thereunto duly authorized.

	 	 	 	 	 
	 	HEWLETT-PACKARD COMPANY

 	 
	 	By:  	/s/
Ted Clark	 
	 	 	Name:  	Ted Clark	 
	 	 	Title:  	Senior Vice President and General Manager, Note
book Global Business Unit, Personal Systems Group	 
	 
	 	PHOENIX TECHNOLOGIES LTD.

 	 
	 	By:  	/s/
Thomas Lacey	 
	 	 	Name:  	Thomas Lacey	 
	 	 	Title:  	President and CEO	 
	 

Signature Page to Asset Purchase Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]