Document:

exv10w15

Exhibit 10.15

QLOGIC CORPORATION

CHANGE IN CONTROL SEVERANCE AGREEMENT

     THIS CHANGE IN CONTROL SEVERANCE AGREEMENT (this “Agreement”) is made and entered into
as of [________, 20__] by and between QLogic Corporation, a Delaware corporation (the
“Company”), and [________] (the “Executive”).

RECITALS

     A. The Board of Directors of the Company has approved the Company entering into a severance
agreement with the Executive.

     B. The Executive is a key executive of the Company.

     C. Should the possibility of a Change in Control of the Company arise, the Board believes it
is imperative that the Company and the Board be able to rely upon the Executive to continue in his
or her position, and that the Company should be able to receive and rely upon the Executive’s
advice, if requested, as to the best interests of the Company and its stockholders without concern
that the Executive might be distracted by the personal uncertainties and risks created by the
possibility of a Change in Control.

     D. Should the possibility of a Change in Control arise, in addition to his or her regular
duties, the Executive may be called upon to assist in the assessment of such possible Change in
Control, advise management and the Board as to whether such Change in Control would be in the best
interests of the Company and its stockholders, and to take such other actions as the Board might
determine to be appropriate.

     E. This Agreement provides the benefits the Executive will be entitled to receive upon certain
terminations of employment in connection with a Change in Control from and after the Effective Date
and supersedes and negates all previous agreements with respect to such benefits.

     NOW THEREFORE, to help assure the Company that it will have the continued dedication of the
Executive and the availability of his or her advice and counsel notwithstanding the possibility,
threat, or occurrence of a Change in Control of the Company, and to induce the Executive to remain
in the employ of the Company in the face of these circumstances and for other good and valuable
consideration, the Company and the Executive agree as follows:

Article 1. Term

     This Agreement shall be effective as of [________, 20__] (the “Effective Date”). This
Agreement will continue in effect through [________, 20__]. However, as of [________, 20__] and
each year thereafter, the term of this Agreement shall be extended automatically for one (1)
additional year (such that on [________, 20__] the term of this Agreement shall be extended through
[________, 20__] and so on), unless the Committee delivers written notice prior to such [________]
to the Executive that this Agreement will not be extended or further extended, as the case may be,
and if such notice is given this Agreement will terminate at the end of the term then in progress.

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     Notwithstanding the foregoing, in the event a Change in Control occurs during the original or
any extended term of this Agreement, this Agreement will remain in effect for the longer of: (i)
twenty-four (24) months beyond the month in which such Change in Control occurred; or (ii) until
all obligations of the Company hereunder have been fulfilled, and until all benefits required
hereunder have been paid to the Executive. For purposes of clarity, subject to Section 3.1,
benefits shall be payable to the Executive under this Agreement only with respect to a single
Change in Control of the Company. Accordingly, no Change in Control after the first Change in
Control shall be considered for purposes of this Agreement.

Article 2. Definitions

     Whenever used in this Agreement, the following terms shall have the meanings set forth below:

	 	(a)	 	“Accrued Obligations” means:

	 	(i)	 	any Base Salary that had accrued but had not been paid
(including accrued and unpaid vacation time) prior to the Severance Date; and
	 
	 	(ii)	 	any Annual Bonus earned as of the Severance Date with respect
to the fiscal year preceding the year in which the Severance Date occurs (if
the Executive was employed by the Company on the last day of that fiscal year)
that had not previously been paid.

	 	(b)	 	“Agreement” means this Change in Control Severance Agreement.
	 
	 	(c)	 	“Annual Bonus” means the Executive’s annual incentive cash bonus
opportunity.
	 
	 	(d)	 	“Base Salary” means the salary of record paid to the Executive by the
Company as annual salary (whether or not deferred), but excludes amounts received under
incentive or other bonus plans.
	 
	 	(e)	 	“Beneficiary” means the persons or entities designated or deemed
designated by the Executive pursuant to Section 8.2.
	 
	 	(f)	 	“Board” means the Board of Directors of the Company.
	 
	 	(g)	 	“Cause” means the occurrence of any of the following:

	 	(i)	 	the Executive is convicted of, or has pled guilty or nolo
contendere to, a felony (other than traffic related offenses or as a result of
vicarious liability); or
	 
	 	(ii)	 	the Executive has engaged in acts of fraud, material dishonesty
or other acts of willful misconduct in the course of his or her duties to the
Company; or

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	 	(iii)	 	the Executive willfully and repeatedly fails to perform or
uphold his or her duties to the Company; or
	 
	 	(iv)	 	the Executive willfully fails to comply with reasonable
directives of the Board which are communicated to him or her in writing;

	 	 	 	provided, however, that no act or omission by the Executive shall be deemed to be
“willful” if the Executive reasonably believed in good faith that such acts or
omissions were in the best interests of the Company.
	 
	 	(h)	 	“Change in Control” means any of the following:

	 	(i)	 	The acquisition by any individual, entity or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act (a
“Person”)) of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 30% or more of either (1) the
then-outstanding shares of common stock of the Company (the “Outstanding
Company Common Stock”) or (2) the combined voting power of the
then-outstanding voting securities of the Company entitled to vote generally in
the election of directors (the “Outstanding Company Voting
Securities”); provided, however, that, for purposes of this clause (i), the
following acquisitions shall not constitute a Change in Control; (A) any
acquisition directly from the Company, (B) any acquisition by the Company, (C)
any acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any affiliate of the Company or a successor, (D)
any acquisition by any entity pursuant to a transaction that complies with
clauses (iii)(1), (2) and (3) below, and (E) any acquisition by a Person who
owned more than 30% of either the Outstanding Company Common Stock or the
Outstanding Company Voting Securities as of the Effective Date or an Affiliate
of any such Person;
	 
	 	(ii)	 	A change in the Board or its members such that individuals who,
as of the later of the Effective Date or the date that is two years
prior to such change (the later of such two dates is referred to as the
“Measurement Date”), constitute the Board (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the
Board; provided, however, that any individual becoming a director subsequent to
the Measurement Date whose election, or nomination for election by the
Company’s stockholders, was approved by a vote of at least two-thirds of the
directors then comprising the Incumbent Board (including for these purposes,
the new members whose election or nomination was so approved, without counting
the member and his or her predecessor twice) shall be considered as though such
individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened

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	 	 	 	solicitation of proxies or consents by or on behalf of a Person other than
the Board;
	 
	 	(iii)	 	Consummation of a reorganization, merger, statutory share
exchange or consolidation or similar corporate transaction involving the
Company or any of its Subsidiaries, a sale or other disposition of all or
substantially all of the assets of the Company, or the acquisition of assets or
stock of another entity by the Company or any of its Subsidiaries (each, a
“Business Combination”), in each case unless, following such Business
Combination, (1) all or substantially all of the individuals and entities that
were the beneficial owners of the Outstanding Company Common Stock and the
Outstanding Company Voting Securities immediately prior to such Business
Combination beneficially own, directly or indirectly, more than 50% of the
then-outstanding shares of common stock and the combined voting power of the
then-outstanding voting securities entitled to vote generally in the election
of directors, as the case may be, of the entity resulting from such Business
Combination (including, without limitation, an entity that, as a result of such
transaction, owns the Company or all or substantially all of the Company’s
assets directly or through one or more subsidiaries (a “Parent”)) in
substantially the same proportions as their ownership immediately prior to such
Business Combination of the Outstanding Company Common Stock and the
Outstanding Company Voting Securities, as the case may be, (2) no Person
(excluding any entity resulting from such Business Combination or a Parent or
any employee benefit plan (or related trust) of the Company or such entity
resulting from such Business Combination or Parent) beneficially owns, directly
or indirectly, 30% or more of, respectively, the then-outstanding shares of
common stock of the entity resulting from such Business Combination or the
combined voting power of the then-outstanding voting securities of such entity,
except to the extent that the ownership in excess of 30% existed prior to the
Business Combination, and (3) at least a majority of the members of the board
of directors or trustees of the entity resulting from such Business Combination
or a Parent were members of the Incumbent Board (determined pursuant to clause
(ii) above using the date that is the later of the Effective Date or
the date that is two years prior to the Business Combination as the Measurement
Date) at the time of the execution of the initial agreement or of the action of
the Board providing for such Business Combination; or
	 
	 	(iv)	 	Approval by the stockholders of the Company of a complete
liquidation or dissolution of the Company other than in the context of a
transaction that does not constitute a Change in Control under clause (iii)
above.

	 	 	 	Notwithstanding the foregoing, in no event shall a transaction or other event that
occurred prior to the Effective Date constitute a Change in Control.
	 
	 	(i)	 	“Code” means the United States Internal Revenue Code of 1986, as
amended.

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	 	(j)	 	“Committee” means the Compensation Committee of the Board.
	 
	 	(k)	 	“Company” means QLogic Corporation, a Delaware corporation, or any
successor thereto as provided in Article 7.
	 
	 	(l)	 	“Disability” means disability as defined in the Company’s long-term
disability plan in which the Executive participates at the relevant time or, if the
Executive does not participate in a Company long-term disability plan at the relevant
time, such term shall mean a “permanent and total disability” within the meaning of
Section 22(e)(3) of the Code.
	 
	 	(m)	 	“Effective Date” has the meaning given to such term in Article 1
hereof.
	 
	 	(n)	 	“Exchange Act” means the United States Securities Exchange Act of 1934,
as amended.
	 
	 	(o)	 	“Executive” means the individual identified in the first sentence, and
on the signature page, of this Agreement.
	 
	 	(p)	 	“Good Reason” means, without the Executive’s express written consent,
the occurrence of any one or more of the following:

	 	(i)	 	A material reduction in the nature or status of the Executive’s
authorities, duties, and/or responsibilities (when such authorities, duties,
and/or responsibilities are viewed in the aggregate) from their level in effect
on the day immediately prior to the start of the Protected Period, other than
an insubstantial and inadvertent act that is remedied by the Company promptly
after receipt of notice thereof given by the Executive. The change in status
of the Company from a publicly-traded company to a company the securities of
which are not publicly-traded (including any related termination of the
Company’s reporting obligations under the Exchange Act) shall not, in and of
itself, constitute Good Reason or a material reduction in the nature or status
of the Executive’s authorities, duties, and/or responsibilities.
	 
	 	(ii)	 	A reduction by the Company in either the Executive’s Base
Salary or the Executive’s Annual Bonus opportunity as in effect immediately
prior to the start of the Protected Period or as the same shall be increased
from time to time.
	 
	 	(iii)	 	A material reduction in the Executive’s relative level of
coverage and accruals under the Company’s employee benefit and/or retirement
plans, policies, practices, or arrangements in which the Executive participates
immediately prior to the start of the Protected Period, both in terms of the
amount of benefits provided, and amounts accrued. For this purpose, the
Company may eliminate and/or modify existing programs and coverage levels;
provided, however, that the Executive’s level of coverage under
all

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	 	 	 	such programs must be at least as great as is provided to other senior
executives of the Company.
	 
	 	(iv)	 	The failure of the Company to obtain a satisfactory agreement
from any successor to the Company to assume and agree to perform this
Agreement, as contemplated in Article 7.
	 
	 	(v)	 	The Executive is informed by the Company that his or her
principal place of employment for the Company will be relocated to a location
that is more than fifty (50) miles from his or her principal place of
employment for the Company at the start of the corresponding Protected Period.
	 
	 	(vi)	 	A repudiation or breach by the Company or any successor company
of any of the provisions of this Agreement.

	 	 	 	The Executive’s right to terminate employment for Good Reason shall not be affected
by the Executive’s incapacity due to physical or mental illness. The Executive’s
continued employment shall not constitute a consent to, or a waiver of rights with
respect to, any circumstances constituting Good Reason herein; provided,
however, that if the Executive does not terminate employment and claim Good
Reason for such termination within ninety (90) days after the Executive has
knowledge of an event or circumstance that would constitute Good Reason, then the
Executive shall be deemed to have waived his or her right to claim Good Reason as to
that specific fact or circumstance (except that the event or circumstance may be
considered for purposes of determining whether any subsequent, separate, event or
circumstance constitutes Good Reason; for example, and without limitation, a
reduction in the Executive’s authorities that is deemed waived by operation of this
clause may be considered for purposes of determining whether any subsequent
reduction in the Executive’s authorities (when taken into consideration with the
first reduction) constitutes a “material reduction” in the nature or status of the
Executive’s authorities from their level in effect on the day immediately prior to
the start of the Protected Period).
	 
	 	(q)	 	“Protected Period” with respect to a Change in Control of the Company
shall mean the period commencing on the date that is six (6) months prior to the date
of such Change in Control and ending on the date of such Change in Control.
	 
	 	(r)	 	“Qualifying Termination” has the meaning given to such term in Section
3.2(a).
	 
	 	(s)	 	As used herein, a “Separation from Service” occurs when the Executive
dies, retires, or otherwise has a termination of employment with the Company that
constitutes a “separation from service” within the meaning of Treasury Regulation
Section 1.409A-1(h)(1), without regard to the optional alternative definitions
available thereunder.
	 
	 	(t)	 	“Severance Benefits” means the payments and/or benefits provided in
Section 3.3.

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	 	(u)	 	“Severance Date” means the date on which the Executive’s employment
with the Company and its subsidiaries terminates for any reason (whether or not as a
result of a Qualifying Termination).
	 
	 	(v)	 	“Subsidiary” means any corporation or other entity a majority of whose
outstanding voting stock or voting power is beneficially owned directly or indirectly
by the Company.

Article 3. Severance Benefits

     3.1. Right to Severance Benefits. The Executive shall be entitled to receive from the Company
the Severance Benefits described in Section 3.3 if the Executive has incurred a Qualifying
Termination and satisfies the release requirements set forth in Section 3.7.

     The Executive shall not be entitled to receive Severance Benefits if his or her employment
terminates (regardless of the reason) before the Protected Period corresponding to a Change in
Control of the Company or more than twenty-four (24) months after the date of a Change in Control
of the Company.

     3.2. Qualifying Termination.

	 	(a)	 	Subject to Sections 3.2(c), 3.4, and 3.5, the occurrence of any one or more of
the following events within the Protected Period corresponding to a Change in Control
of the Company, or within twenty-four (24) calendar months following the date of a
Change in Control of the Company shall constitute a “Qualifying Termination”:

	 	(i)	 	An involuntary termination of the Executive’s employment by the
Company for reasons other than Cause; or
	 
	 	(ii)	 	A voluntary termination of employment by the Executive for Good
Reason.

	 	(b)	 	Notwithstanding anything else contained herein to the contrary, the Executive’s
termination of employment on account of reaching mandatory retirement age, as such age
may be defined from time to time in policies adopted by the Company prior to the
commencement of the Protected Period, and consistent with applicable law, shall not be
a Qualifying Termination.
	 
	 	(c)	 	Notwithstanding anything else contained herein to the contrary, the Executive’s
Severance Benefits under this Agreement shall be reduced by the severance benefits
(including, without limitation, any other change-in-control severance benefits and any
other severance benefits generally) that the Executive may be entitled to under any
other plan, program, agreement or other arrangement with the Company (including,
without limitation, any such benefits provided for by an employment agreement). For
purposes of the foregoing, any cash severance benefits payable to the Executive under
any other plan, program, agreement or other arrangement with the Company shall offset
the cash severance benefits

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	 	 	 	otherwise payable to the Executive under this Agreement on a dollar-for-dollar
basis. For purposes of the foregoing, non-cash severance benefits to be provided to
the Executive under any other plan, program, agreement or other arrangement with the
Company shall offset any corresponding benefits otherwise to be provided to the
Executive under this Agreement or, if there are no corresponding benefits otherwise
to be provided to the Executive under this Agreement, the value of such benefits
shall offset the cash severance benefits otherwise payable to the Executive under
this Agreement on a dollar-for-dollar basis. If the amount of other benefits to be
offset against the cash severance benefits otherwise payable to the Executive under
this Agreement in accordance with the preceding two sentences exceeds the amount of
cash severance benefits otherwise payable to the Executive under this Agreement,
then the excess may be used to offset other non-cash severance benefits otherwise to
be provided to the Executive under this Agreement on a dollar-for-dollar basis. For
purposes of this paragraph, the Committee shall reasonably determine the value of
any non-cash benefits.

     3.3. Description of Severance Benefits. In the event that the Executive becomes entitled to
receive Severance Benefits, as provided in Sections 3.1, 3.2 and 3.8, the Company shall pay and
provide to the Executive (in addition to the Accrued Obligations) the following:

	 	(a)	 	The Company will pay to the Executive an amount equal to [____] times the sum
of (i) the Executive’s Base Salary and (ii) the Executive’s Annual Bonus. For purposes
of this Section 3.3(a), the Executive’s “Base Salary” shall be deemed to be the
Executive’s highest annualized rate of Base Salary in effect at any time after the
commencement of the Protected Period and on or before the Executive’s Severance Date,
and the Executive’s “Annual Bonus” shall be the greater of (x) the Executive’s
maximum Annual Bonus opportunity for the fiscal year in which the Executive’s Severance
Date occurs, and (y) the highest aggregate bonus(es) paid by the Company to the
Executive for any one of the three (3) full fiscal years of the Company immediately
preceding the Executive’s Severance Date. Notwithstanding the foregoing provisions, if
the Executive would be entitled to a greater cash severance payment in the
circumstances under the terms of any employment agreement then in effect than the
amount determined under the first sentence of this Section 3.3(a), the Executive shall
be entitled to such greater cash severance payment only and no additional payment shall
be made under this Section 3.3(a).
	 
	 	(b)	 	The Company will pay or reimburse the Executive for his or her premiums charged
to continue medical coverage pursuant to the Consolidated Omnibus Budget Reconciliation
Act (“COBRA”), at the same or reasonably equivalent medical coverage for the
Executive (and, if applicable, the Executive’s eligible dependents) as in effect
immediately prior to the Severance Date, to the extent that the Executive elects such
continued coverage; provided that the Company’s obligation to make any payment or
reimbursement pursuant to this clause (ii) shall cease upon the first to occur of (a)
the [___] anniversary of the Severance Date; (b) the Executive’s death; (c) the date
the Executive becomes eligible for coverage under the health plan of a future employer;
or (d) the date the Company

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	 	 	 	or its affiliates ceases to offer any group medical coverage to its active executive
employees or the Company is otherwise under no obligation to offer COBRA
continuation coverage to the Executive. To the extent that the payment of any COBRA
premiums pursuant to this Section 3.3(b) is taxable to the Executive, such payment
shall be made on or before the last day of the Executive’s taxable year following
the taxable year in which the related expense was incurred. The Executive’s right
to payment of such premiums is not subject to liquidation or exchange for another
benefit and the amount of such benefits that the Executive receives in one taxable
year shall not affect the amount of such benefits that the Executive receives in any
other taxable year.
	 
	 	(c)	 	Notwithstanding any other provision herein or in any other document, any stock
option or other equity-based award granted by the Company to the Executive, to the
extent such award is outstanding and has not vested as of the Executive’s Severance
Date, shall automatically become fully vested as of the Severance Date. In the event
that the Executive has a Qualifying Termination during the Protected Period related to
a Change in Control, any stock option or other equity-based award granted by the
Company to the Executive, to the extent such award had not vested and was cancelled or
otherwise terminated upon or prior to the date of the related Change in Control solely
as a result of such Qualifying Termination, shall be reinstated and shall automatically
become fully vested, and, in the case of stock options or similar awards, the Executive
shall be given a reasonable opportunity to exercise such accelerated portion of the
option or other award before it terminates.

     3.4. Termination Due to Disability or Death. Termination of the Executive’s employment due to
the Executive’s death or Disability is not a Qualifying Termination, and upon any such termination,
the Executive shall be entitled to payment only of the Accrued Obligations.

     3.5. Termination for Cause or by the Executive Other Than for Good Reason Termination of the
Executive’s employment by the Company for Cause or by the Executive other than for Good Reason does
not constitute a Qualifying Termination. Upon any such termination, the Executive shall be
entitled to payment only of the Accrued Obligations.

     3.6. Notice of Termination. Any termination of the Executive’s employment by the Company for
Cause or by the Executive for Good Reason shall be communicated by a Notice of Termination. For
purposes of this Agreement, a “Notice of Termination” shall mean a written notice which
shall indicate the specific termination provision in this Agreement relied upon, and shall set
forth in reasonable detail the facts and circumstances claimed to provide a basis for termination
of the Executive’s employment under the provision so indicated.

     3.7. Release. This Section 3.7 shall apply notwithstanding anything else contained in this
Agreement to the contrary. As a condition precedent to any Company obligation to the Executive
pursuant to Section 3.3, the Executive (or, in the event of the Executive’s death following a
Qualifying Termination, the Executive’s estate) shall, upon or promptly following (and in all
events within forty-five (45) days following) the Executive’s Severance Date (or, if

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later, the date of the relevant Change in Control of the Company), provide the Company with a
valid, executed, written release of claims (in the form attached hereto as Exhibit A or
such similar form as the Company may reasonably require in the circumstances) (the
“Release”), and such Release shall have not been revoked by the Executive (or the
Executive’s estate, as applicable) pursuant to any revocation rights afforded by applicable law.
The Company shall have no obligation to make any payment or provide any benefit to the Executive
pursuant to Section 3.3 unless and until the Release contemplated by this Section 3.7 becomes
irrevocable by the Executive (or the Executive’s estate, as applicable) in accordance with all
applicable laws, rules and regulations.

     3.8. Exclusive Remedy. The Executive agrees that the payments and benefits contemplated by
Section 3.3 shall, if the Release contemplated by Section 3.7 is signed and the amounts paid,
constitute the exclusive and sole remedy for any termination of his or her employment and in such
case the Executive covenants not to assert or pursue any other remedies, at law or in equity, with
respect to any termination of employment. The Company and the Executive acknowledge and agree that
there is no duty of the Executive to mitigate damages under this Agreement, and there shall be no
offset against any amounts due to the Executive under this Agreement on account of any remuneration
attributable to any subsequent employment that the Executive may obtain.

Article 4. Form and Timing of Severance Benefits; Tax Withholding

     4.1. Form and Timing of Severance Benefits. Subject to Section 3.7, the Severance Benefits
described in Section 3.3(a) shall be paid in cash to the Executive in a single lump sum as soon as
practicable following (and in all events within sixty (60) days following) the later of (i) the
Executive’s Separation from Service or (ii) in the case of a Separation from Service during the
Protected Period, the date of the corresponding Change in Control; provided, however, that such
payment shall be subject to the provisions of Section 8.14(a).

     4.2. Withholding of Taxes. Notwithstanding anything else herein to the contrary, the Company
may withhold (or cause there to be withheld, as the case may be) from any amounts otherwise due or
payable under or pursuant to this Agreement such federal, state and local income, employment, or
other taxes as may be required to be withheld pursuant to any applicable law or regulation.

Article 5. Section 280G. Notwithstanding any other provision herein, the Executive shall be
covered by the provisions set forth in Exhibit B hereto, incorporated herein by this
reference.

Article 6. The Company’s Payment Obligation

     6.1. Payment of Obligations Absolute. Except as provided in Sections 3.7, 4.2 and in Article
5, the Company’s obligation to make the payments and the arrangements provided for herein shall be
absolute and unconditional, and shall not be affected by any circumstances, including, without
limitation, any offset, counterclaim, recoupment, defense, or other right which the Company may
have against the Executive or anyone else. All amounts payable by the Company hereunder shall be
paid without notice or demand. Each and every payment made hereunder by the Company shall be
final, and the Company shall not seek to recover all or any

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part of such payment from the Executive or from whoever may be entitled thereto, for any
reasons whatsoever, except as otherwise provided in Article 5; provided that the Executive does not
revoke the Release or otherwise take action to render the Release unenforceable.

     6.2. Contractual Right to Benefits. This Agreement establishes and vests in the Executive a
contractual right to the benefits to which he or she is entitled hereunder. The Company expressly
waives any ability, if possible, to deny liability for any breach of its contractual commitment
hereunder upon the grounds of lack of consideration, accord and satisfaction or any other defense.
In any dispute arising after a Change in Control as to whether the Executive is entitled to
benefits under this Agreement, there shall be a presumption that the Executive is entitled to such
benefits and the burden of proving otherwise shall be on the Company. However, nothing herein
contained shall require or be deemed to require, or prohibit or be deemed to prohibit, the Company
to segregate, earmark, or otherwise set aside any funds or other assets, in trust or otherwise, to
provide for any payments to be made or required hereunder.

     6.3. Pension Plans; Duplicate Benefits. All payments, benefits and amounts provided under
this Agreement shall be in addition to and not in substitution for any pension rights under the
Company’s tax-qualified pension plans, supplemental retirement plans, nonqualified deferred
compensation plans, bonus plans, and any disability, workers’ compensation or other Company benefit
plan distribution that the Executive is entitled to as of his or her Severance Date.
Notwithstanding the foregoing, this Agreement shall not create an inference that any duplicate
payments shall be required. No payments made pursuant to this Agreement shall be considered
compensation for purposes of any such benefit plan.

Article 7. Successors and Assignment

     7.1. Successors to the Company. The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation, or otherwise) of all or substantially all of the
business and/or assets of the Company or of any division or subsidiary thereof (the business and/or
assets of which constitute at least fifty percent (50%) of the total business and/or assets of the
Company) to expressly assume and agree to perform the Company’s obligations under this Agreement in
the same manner and to the same extent that the Company would be required to perform them if such
succession had not taken place.

     7.2. Assignment by the Executive. This Agreement shall inure to the benefit of and be
enforceable by the Executive’s personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees, and legatees.

Article 8. Miscellaneous

     8.1. Employment Status. Except as may be provided under any other written agreement between
the Executive and the Company, the employment of the Executive by the Company is “at will,” and,
prior to the effective date of a Change in Control, may be terminated by either the Executive or
the Company at any time, subject to applicable law.

     8.2. Beneficiaries. The Executive may designate one or more persons or entities as the
primary and/or contingent Beneficiaries of any Severance Benefits owing to the Executive under this
Agreement. If the Executive dies while any amount would still be payable to him or

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her hereunder had he or she continued to live, all such amounts, unless otherwise provided
herein, shall be paid to the Executive’s Beneficiary in accordance with the terms of this
Agreement. If the Executive has not named a Beneficiary, then such amounts shall be paid to the
Executive’s devisee, legatee, or other designee, or if there is no such designee, to the
Executive’s estate. The Executive may make or change such designation at any time, provided that
any designation or change thereto must be in the form of a signed writing acceptable to and
received by the Committee.

     8.3. Gender and Number. Where the context requires herein, the singular shall include the
plural, the plural shall include the singular, and any gender shall include all other genders.

     8.4. Section Headings. The section headings of, and titles of paragraphs and subparagraphs
contained in, this Agreement are for the purpose of convenience only, and they neither form a part
of this Agreement nor are they to be used in the construction or interpretation thereof.

     8.5. Severability. If any provision of this Agreement or the application thereof is held
invalid, the invalidity shall not affect other provisions or applications of this Agreement which
can be given effect without the invalid provisions or applications and to this end the provisions
of this Agreement are declared to be severable.

     8.6. Entire Agreement. This Agreement, together with any employment agreement and any written
agreement evidencing any stock option or other equity-based incentive award previously granted by
the Company, embodies the entire agreement of the parties hereto respecting the matters within its
scope. As of the date hereof, this Agreement shall supersede all other agreements of the parties
hereto that are prior to or contemporaneous with such date and that directly or indirectly bear
upon the subject matter hereof, other than any prior agreement relating to any right to
indemnification the Executive may have from the Company or the Executive’s right to be covered
under any applicable insurance policy, with respect to any liability the Executive incurred or may
incur as an employee, officer or director of the Company or its affiliates. Any negotiations,
correspondence, agreements, proposals or understandings prior to the date of this Agreement
relating to the subject matter hereof shall be deemed to have been merged into this Agreement, and
to the extent inconsistent herewith, such negotiations, correspondence, agreements, proposals, or
understandings shall be deemed to be of no force or effect. There are no representations,
warranties, or agreements, whether express or implied, or oral or written, with respect to the
subject matter hereof, except as expressly set forth herein. This Agreement is an integrated
agreement.

     8.7. Modification. This Agreement may not be amended, modified or changed (in whole or in
part), except by a formal, definitive written agreement expressly referring to this Agreement,
which agreement is executed by both of the parties hereto.

     8.8. Waiver. Neither the failure nor any delay on the part of a party to exercise any right,
remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, remedy, power or privilege preclude any other or further
exercise of the same or of any right, remedy, power or privilege, nor shall any waiver of

12

 

any right, remedy, power or privilege with respect to any occurrence be construed as a waiver
of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be
effective unless it is in writing and is signed by the party asserted to have granted such waiver.

     8.9. Arbitration. Any controversy arising out of or relating to this Agreement, its
enforcement or interpretation, or because of an alleged breach, default, or misrepresentation in
connection with any of its provisions, or any other controversy arising out of the Executive’s
employment, including, but not limited to, any state or federal statutory claims, shall be
submitted to arbitration in Orange County, California, before a sole arbitrator selected from
Judicial Arbitration and Mediation Services, Inc., Orange, California, or its successor
(“JAMS”), or if JAMS is no longer able to supply the arbitrator, such arbitrator shall be
selected from the American Arbitration Association, and shall be conducted in accordance with the
provisions of California Code of Civil Procedure §§ 1280 et seq. as the exclusive forum for
the resolution of such dispute; provided, however, that provisional injunctive relief may, but need
not, be sought by either party to this Agreement in a court of law while arbitration proceedings
are pending, and any provisional injunctive relief granted by such court shall remain effective
until the matter is finally determined by the Arbitrator. Final resolution of any dispute through
arbitration may include any remedy or relief which the Arbitrator deems just and equitable,
including any and all remedies provided by applicable state or federal statutes. At the conclusion
of the arbitration, the Arbitrator shall issue a written decision that sets forth the essential
findings and conclusions upon which the Arbitrator’s award or decision is based. Any award or
relief granted by the Arbitrator hereunder shall be final and binding on the parties hereto and may
be enforced by any court of competent jurisdiction. The parties hereto acknowledge and agree that
they are hereby waiving any rights to trial by jury in any action, proceeding or counterclaim
brought by either of the parties hereto against the other in connection with any matter whatsoever
arising out of or in any way connected with this Agreement or the Executive’s employment. The
parties agree hereto that the Company shall be responsible for payment of the forum costs of any
arbitration hereunder, including the Arbitrator’s fee. The Executive and the Company further agree
that in any proceeding to enforce the terms of this Agreement, the prevailing party shall be
entitled to its or his or her reasonable attorneys’ fees and costs (other than forum costs
associated with the arbitration) incurred by it or him or her in connection with resolution of the
dispute in addition to any other relief granted. Notwithstanding this provision, the parties
hereto may mutually agree to mediate any dispute prior to or following submission to arbitration.

     8.10. Notices.

	 	(a)	 	All notices, requests, demands and other communications required or permitted
under this Agreement shall be in writing and shall be deemed to have been duly given
and made if (i) delivered by hand, (ii) otherwise delivered against receipt therefor,
or (iii) sent by registered or certified mail, postage prepaid, return receipt
requested. Any notice shall be duly addressed to the parties hereto as follows:

13

 

	 	(i)	 	if to the Company:

QLogic Corporation

26650 Aliso Viejo Parkway

Aliso Viejo, California 92656

Attn: General Counsel

with a copy to:

O’Melveny & Myers LLP

610 Newport Center Drive, Suite 1700

Newport Beach, California 92660

Attn: Gary Singer, Esq.

     (ii) if to the Executive, at the last address of the Executive on the books of
the Company.

	 	(b)	 	Any party may alter the address to which communications or copies are to be
sent by giving notice of such change of address in conformity with the provisions of
this Section 8.10 for the giving of notice. Any communication shall be effective when
delivered by hand, when otherwise delivered against receipt therefor, or five (5)
business days after being mailed in accordance with the foregoing.

     8.11. Legal Counsel; Mutual Drafting. Each party recognizes that this is a legally binding
contract and acknowledges and agrees that they have had the opportunity to consult with legal
counsel of their choice. Each party has cooperated in the drafting, negotiation and preparation of
this Agreement. Hence, in any construction to be made of this Agreement, the same shall not be
construed against either party on the basis of that party being the drafter of such language. The
Executive agrees and acknowledges that he or she has read and understands this Agreement
completely, is entering into it freely and voluntarily, and has been advised to seek counsel prior
to entering into this Agreement and has had ample opportunity to do so.

     8.12. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original as against any party whose signature appears thereon, and all of
which together shall constitute one and the same instrument. This Agreement shall become binding
when one or more counterparts hereof, individually or taken together, shall bear the signatures of
all of the parties hereto reflected hereon as the signatories. Photographic copies of such signed
counterparts may be used in lieu of the originals for any purpose.

     8.13. Governing Law. This Agreement, and all questions relating to its validity,
interpretation, performance and enforcement, as well as the legal relations hereby created between
the parties hereto, shall be governed by and construed under, and interpreted and enforced in
accordance with, the laws of the State of California, notwithstanding any California or other
conflict of law provision to the contrary.

     8.14. Section 409A.

	 	(a)	 	Notwithstanding any provision of this Agreement to the contrary, if the
Executive is a “specified employee” within the meaning of Treasury Regulation Section

14

 

	 	 	 	1.409A-1(i) as of the date of the Executive’s Separation from Service, the Executive
shall not be entitled to any payment pursuant to Section 3.3 until the earlier of
(i) the date which is six (6) months after the Executive’s Separation from Service
for any reason other than death, or (ii) the date of the Executive’s death. Any
amounts otherwise payable to the Executive upon or in the six (6) month period
following the Executive’s Separation from Service that are not so paid by reason of
this Section 8.14(a) shall be paid (without interest) as soon as practicable (and in
all events within thirty (30) days) after the date that is six (6) months after the
Executive’s Separation from Service (or, if earlier, as soon as practicable, and in
all events within thirty (30) days, after the date of the Executive’s death). The
provisions of this Section 8.14(a) shall only apply if, and to the extent, required
to avoid the imputation of any tax, penalty or interest pursuant to Section 409A of
the Code.
	 
	 	(b)	 	It is intended that any amounts payable under this Agreement shall either be
exempt from or comply with Section 409A of the Code (including the Treasury regulations
and other published guidance relating thereto) so as not to subject the Executive to
payment of any additional tax, penalty or interest imposed under Code Section 409A.
The provisions of this Agreement shall be construed and interpreted to avoid the
imputation of any such additional tax, penalty or interest under Code Section 409A yet
preserve (to the nearest extent reasonably possible) the intended benefit payable to
the Executive.

     8.15. Clawback Rules and Policy. Notwithstanding anything else contained in this Agreement to
the contrary, this Agreement and all forms of compensation referred to in this Agreement are
subject to the Company’s clawback policy, as well as the “clawback” provisions of applicable law,
rules and regulations, as each may be adopted and in effect from time to time (collectively, the
“Clawback Policy”). Pursuant to the Clawback Policy, the Company may recoup payments under
this Agreement to the extent that any such payments were based on incorrect financial results that
require a restatement of the Company’s financial statements from senior level employees whose fraud
or misconduct was a material contributing factor to the financial restatement. The provisions of
the Clawback Policy are in addition to (and not in lieu of) any rights to repayment the Company may
have under Section 304 of the Sarbanes-Oxley Act of 2002 and other applicable laws.

[Remainder of page intentionally left blank]

15

 

     IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the
Effective Date.

	 	 	 	 	 	 	 

	 	 	“COMPANY”	 	 
	 
	 	 	 	 	 	 
	 	 	QLogic Corporation,	 	 
	 	 	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Print Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	“EXECUTIVE”	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	[Name]	 	 

16

 

EXHIBIT A

GENERAL RELEASE AGREEMENT

          1. Release. [Name] (“Executive”), on his or her own behalf and on behalf of
his or her descendants, dependents, heirs, executors, administrators, assigns and successors, and
each of them, hereby acknowledges full and complete satisfaction of and releases and discharges and
covenants not to sue QLogic Corporation (the “Company”), its divisions, subsidiaries,
parents, or affiliated corporations, past and present, and each of them, as well as its and their
assignees, successors, directors, officers, shareholders, partners, representatives, attorneys,
agents or employees, past or present, or any of them (individually and collectively,
“Releasees”), from and with respect to any and all claims, agreements, obligations, demands
and causes of action, known or unknown, suspected or unsuspected, arising out of or in any way
connected with Executive’s employment or any other relationship with or interest in the Company or
the termination thereof, including without limiting the generality of the foregoing, any claim for
severance pay, profit sharing, bonus or similar benefit, equity-based awards and/or dividend
equivalents thereon, pension, retirement, life insurance, health or medical insurance or any other
fringe benefit, or disability, or any other claims, agreements, obligations, demands and causes of
action, known or unknown, suspected or unsuspected resulting from any act or omission by or on the
part of Releasees committed or omitted prior to the date of this Agreement, including, without
limiting the generality of the foregoing, any claim under Title VII of the Civil Rights Act of
1964, the Americans with Disabilities Act, the California Fair Employment and Housing Act, or the
California Family Rights Act, or any other federal, state or local law, regulation or ordinance
(collectively, the “Claims”); provided, however, that the foregoing release does not apply
to any obligation of the Company to Executive pursuant to any of the following: (1) Section 3 of
the Change in Control Severance Agreement dated as of [_________, 20__] by and between the Company
and Executive (the “Change in Control Agreement”), or (2) any equity-based awards
previously granted by the Company to Executive (as amended by the Change in Control Agreement). In
addition, this release does not cover any Claim that cannot be so released as a matter of
applicable law. Executive acknowledges and agrees that he or she has received any and all leave
and other benefits that he or she has been and is entitled to pursuant to the Family and Medical
Leave Act of 1993.

          2. Acknowledgement of Payment of Wages. Executive acknowledges that he or she has
received all amounts owed for his or her regular and usual salary (including, but not limited to,
any bonus or other wages), and usual benefits through the date of this Agreement.

          3. Waiver of Civil Code Section 1542. This Agreement is intended to be effective as a
general release of and bar to each and every Claim hereinabove specified. Accordingly, Executive
hereby expressly waives any rights and benefits conferred by Section 1542 of the California Civil
Code as to the Claims. Section 1542 of the California Civil Code provides:

“A GENERAL RELEASE DOES NOT EXTEND TO A CLAIM WHICH THE CREDITOR DOES NOT
KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE
RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR
HER SETTLEMENT WITH THE DEBTOR.”

A-1

 

Executive acknowledges that he or she later may discover claims, demands, causes of action or facts
in addition to or different from those which Executive now knows or believes to exist with respect
to the subject matter of this Agreement and which, if known or suspected at the time of executing
this Agreement, may have materially affected its terms. Nevertheless, Executive hereby waives, as
to the Claims, any claims, demands, and causes of action that might arise as a result of such
different or additional claims, demands, causes of action or facts.

          4. ADEA Waiver. Executive expressly acknowledges and agrees that by entering into
this Agreement, he or she is waiving any and all rights or claims that he or she may have arising
under the Age Discrimination in Employment Act of 1967, as amended (“ADEA”), which have
arisen on or before the date of execution of this Agreement. Executive further expressly
acknowledges and agrees that:

          (a) In return for this Agreement, he or she will receive consideration beyond that which he or
she was already entitled to receive before entering into this Agreement;

          (b) He or she is hereby advised in writing by this Agreement to consult with an attorney
before signing this Agreement;

          (c) He or she was given a copy of this Agreement on [____________, 20__] and informed that he
or she had twenty-one (21) days within which to consider the Agreement and that if he or she wished
to execute this Agreement prior to expiration of such 21-day period, he or she should execute the
Acknowledgement and Waiver attached hereto as Exhibit A-1;

          (d) Nothing in this Agreement prevents or precludes Executive from challenging or seeking a
determination in good faith of the validity of this waiver under the ADEA, nor does it impose any
condition precedent, penalties or costs from doing so, unless specifically authorized by federal
law; and

          (e) He or she was informed that he or she has seven (7) days following the date of execution
of this Agreement in which to revoke this Agreement, and this Agreement will become null and void
if Executive elects revocation during that time. Any revocation must be in writing and must be
received by the Company during the seven-day revocation period. In the event that Executive
exercises his or her right of revocation, neither the Company nor Executive will have any
obligations under this Agreement.

          5. No Transferred Claims. Executive represents and warrants to the Company that he or
she has not heretofore assigned or transferred to any person not a party to this Agreement any
released matter or any part or portion thereof.

          6. Miscellaneous. The following provisions shall apply for purposes of this
Agreement:

          (a) Number and Gender. Where the context requires, the singular shall include the
plural, the plural shall include the singular, and any gender shall include all other genders.

A-2

 

          (b) Section Headings. The section headings of, and titles of paragraphs and
subparagraphs contained in, this Agreement are for the purpose of convenience only, and they
neither form a part of this Agreement nor are they to be used in the construction or interpretation
thereof.

          (c) Governing Law. This Agreement, and all questions relating to its validity,
interpretation, performance and enforcement, as well as the legal relations hereby created between
the parties hereto, shall be governed by and construed under, and interpreted and enforced in
accordance with, the laws of the State of California, notwithstanding any California or other
conflict of law provision to the contrary.

          (d) Severability. If any provision of this Agreement or the application thereof is
held invalid, the invalidity shall not affect other provisions or applications of this Agreement
which can be given effect without the invalid provisions or applications and to this end the
provisions of this Agreement are declared to be severable.

          (e) Modifications. This Agreement may not be amended, modified or changed (in whole
or in part), except by a formal, definitive written agreement expressly referring to this
Agreement, which agreement is executed by both of the parties hereto.

          (f) Waiver. Neither the failure nor any delay on the part of a party to exercise any
right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall
any single or partial exercise of any right, remedy, power or privilege preclude any other or
further exercise of the same or of any right, remedy, power or privilege, nor shall any waiver of
any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of
such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be
effective unless it is in writing and is signed by the party asserted to have granted such waiver.

          (g) Arbitration. Any controversy arising out of or relating to this Agreement shall
be submitted to arbitration in accordance with the arbitration provisions of the Change in Control
Agreement.

          (h) Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original as against any party whose signature appears thereon, and all
of which together shall constitute one and the same instrument. This Agreement shall become
binding when one or more counterparts hereof, individually or taken together, shall bear the
signatures of all of the parties reflected hereon as the signatories. Photographic copies of such
signed counterparts may be used in lieu of the originals for any purpose.

[Remainder of page intentionally left blank]

A-3

 

          The undersigned have read and understand the consequences of this Agreement and voluntarily
sign it. The undersigned declare under penalty of perjury under the laws of the State of
California that the foregoing is true and correct.

     EXECUTED this ________ day of ________ 20__, at ______________________ County, _________.

	 	 	 	 	 	 	 

	 	 	“Executive”	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	[NAME]	 	 
	 
	 	 	 	 	 	 
	 	 	QLOGIC CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

[NAME]
	 	 
	 

	 	 	 	[TITLE]	 	 

A-4

 

EXHIBIT A-1

ACKNOWLEDGMENT AND WAIVER

     I, [Name], hereby acknowledge that I was given 21 days to consider the foregoing Agreement and
voluntarily chose to sign the Agreement prior to the expiration of the 21-day period.

     I declare under penalty of perjury under the laws of the State of California that the
foregoing is true and correct.

     EXECUTED this ___ day of ____________ 20__, at ___________ County, ________.

	 	 	 	 	 

	 

	 	 

[Name]
	 	 

A-5

 

EXHIBIT B

SECTION 280G PROVISIONS

	1.1	 	Limitation on Payments. If upon or following a Change of Control the tax imposed by
Section 4999 of the Code, or any similar or successor tax (the “Excise Tax”) would
apply absent this Section 1.1, because of the Change of Control, to any payments, benefits
and/or amounts received by Executive as severance benefits or otherwise, including, without
limitation, any amounts received or deemed received, within the meaning of any provision of
the Code, by Executive as a result of (and not by way of limitation) any automatic vesting,
lapse of restrictions and/or accelerated target or performance achievement provisions, or
otherwise, applicable to outstanding grants or awards to Executive under any of the Company’s
equity incentive plans or agreements (collectively, the “Total Payments”), then
Executive’s benefits under this Agreement shall be either (a) delivered in full, or (b)
delivered as to such lesser extent which would result in no portion of such benefits being
subject to the Excise Tax, whichever of the foregoing amounts, taking into account the
applicable federal, state and local income taxes and the Excise Tax, results in the receipt by
Executive on an after-tax basis, of the greatest amount of benefits, notwithstanding that all
or some portion of such benefits may be taxable under Section 4999 of the Code. The Company
shall reduce or eliminate the Total Payments by first reducing or eliminating any cash
severance benefits, then by reducing or eliminating any accelerated vesting of stock options,
then by reducing or eliminating any accelerated vesting of other equity-based awards, then by
reducing or eliminating any other remaining Total Payments.
	 
	1.2	 	Determination. Any determination required under this section shall be made in
writing by PwC (or another national public accounting firm mutually acceptable to the parties)
(the “Accountants”), whose determination shall be conclusive and binding upon the
Executive and the Company for all purposes. For purposes of making the calculations required
by this section, the Accountants may make reasonable assumptions and approximations concerning
applicable taxes and may rely on reasonable, good faith interpretations concerning the
application of Sections 280G and 4999 of the Code. The Company and the Executive shall
furnish to the Accountants such information and documents as the Accountants may reasonably
request in order to make a determination under this section. The Company shall bear all costs
the Accountants may reasonably incur in connection with any calculations contemplated by this
section.

B-1exv10w1

Exhibit 10.1

S1 Corporation

2011 Management Incentive Plan

The S1 Corporation 2011 Management Incentive Plan (the “Plan”) is designed as an incentive to
participants to perform at their most effective level, as a reward for strong performance, and as a
way of sharing in the success of S1 Corporation (the “Company”).

Eligibility for Participation

Designated employees are eligible for inclusion in the Plan for the 2011 calendar year.
Participation in the Plan is at the discretion of the Company. Employees considered for
participation include management level employees and individual contributors in functions that meet
established criteria as defined by the Company. Eligibility and participation is not automatic and
will be reviewed annually. Participation for new hires designated as eligible to participate in
the Plan will be pro-rated based on full months of employment during the plan year.

Operation of the Plan

For each participant, a target cash incentive amount will be specified for purposes of
participation in the Plan. Payments under the Plan will be based on the achievement of specified
financial metrics and other non-financial performance metrics as approved by the Compensation
Committee of the Board of Directors (the “Compensation Committee”) of the Company.

Participants in the Plan will be provided with a copy of their incentive plan worksheet (the
“Worksheet”) and the terms and conditions of the Plan. Each participant must sign and return their
Worksheet to the Human Resources Department along with an acknowledgement that they have reviewed
and understood the terms and conditions of the Plan and their Worksheet.

 

 

 

Performance against financial and non-financial performance metrics will be assessed at the end of
each quarter once the Company’s financial results have been prepared and approved. Based on the
achievement of these metrics, incentive payments will be made on a quarterly basis as set forth
below. Payments for the second through fourth quarters are net of any payments in prior quarters.
As an example, if a participant has an on-target incentive opportunity of $10,000 and all financial
and non-financial performance metrics are 100% on-target throughout the year, incentive payments
would be as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Q1	 	 	Q2	 	 	Q3	 	 	Q4	 	 	Total	 
	% of Annual On-Target Incentive
	 	 	25	%	 	 	25	%	 	 	25	%	 	 	25	%	 	 	100	%
	$ Amount of Quarterly Incentive
	 	$	2,500	 	 	$	2,500	 	 	$	2,500	 	 	$	2,500	 	 	$	10,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cumulative % of Annual On-Target Incentive
	 	 	25	%	 	 	50	%	 	 	75	%	 	 	100	%	 	 	 	 
	Cumulative $
of Annual On-Target Incentive
	 	$	2,500	 	 	$	5,000	 	 	$	7,500	 	 	$	10,000	 	 	 	 	 

Any payment, in whole or in part, shall be made through the Company’s normal payroll processes and
will be net of any appropriate income tax, social security contributions or other relevant
deductions. Payments will be made to each participant provided that the participant
remains an active employee in good standing at the time of payout. The Plan is intended to be
exempt from section 409A of the Internal Revenue Code of 1986, as amended.

Financial and Non-Financial Performance Metrics

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization excluding stock
based compensation expense) and Revenue will be the key metrics used to determine the incentive
pool and the actual incentive available to be paid (67% of the target cash incentive amount will be
based on Adjusted EBITDA and 33% will be based on Revenue). Non-financial performance metrics may
also be established for individual participants in the Plan, and the achievement of such
non-financial performance metrics will also be a factor in determining the amount of incentive to
be paid. The Compensation Committee will have the discretion to reduce any employee’s incentive
payout based on its subjective assessment of the employee’s achievement of such non-financial
performance metrics and the employee’s individual performance throughout the year. Additionally,
subject to the approval of the Compensation Committee, metrics may be adjusted to reflect the
occurrence of business events that could impact the numbers either positively or negatively.

			
	 	 	 
	2
	 	

 

 

 

Overachievement

Overachievement incentive opportunity is based on exceeding Adjusted EBITDA and/or Revenue targets.
Overachievement incentive is capped at 100% of the annual on-target incentive amount and will be
assessed following the close of operating year once the Company’s final annual results have been
prepared and approved

Clawback of Amounts

In the event that any amount paid to a participant under this Plan is shown to be directly
attributable to errors in the financial statements of the Company, the computation of Adjusted
EBITDA and/or Revenue under this Plan, or the determinations related to the achievement of any
non-financial performance metrics (all as determined in the sole discretion of the Compensation
Committee) and such amount has been paid to the participant in the prior two (2) years, such
amounts shall be subject to repayment by the participant at the request of the Company within
forty-five (45) days of such request. If an overpayment occurs under this Plan that is not
returned to the Company, the Company shall have the discretion to consider the overpayment in
awarding future incentive compensation under this Plan or otherwise.

No Contract

Participation in the Plan does not create or infer a contract of employment.

Validity

The Plan is valid only for the calendar year January 1, 2011 — December 31, 2011.

			
	 	 	 
	3

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