Document:

Exhibit 10.14

PHOENIX
TECHNOLOGIES LTD.

SEVERANCE
AND CHANGE OF CONTROL AGREEMENT

This Severance and
Change of Control Agreement (the “Agreement”)
was originally entered into by and between Ira Scharfglass (“Executive”) and Phoenix Technologies Ltd. (the
“Company”), effective as of June
28, 2006 (the “Effective Date”). 
Effective as of July 25, 2006, this Agreement is amended and restated as
set forth below.

RECITALS

1.             It is possible that the Company
could terminate Executive’s employment with the Company.  The Board of Directors of the Company (the “Board”) recognizes that such consideration
can be a distraction to Executive and can cause Executive to consider
alternative employment opportunities. 
The Compensation Committee of the Board (pursuant to its delegated
authority) has determined that it is in the best interests of the Company and
its stockholders to assure that the Company will have the continued dedication
and objectivity of Executive, notwithstanding the possibility, threat or
occurrence of such a termination.

2.             The Compensation Committee of the Board
believes that it is in the best interests of the Company and its stockholders
to provide Executive with an incentive to continue his employment and to
motivate Executive to maximize the value of the Company for the benefit of its
stockholders.

3.             The Compensation Committee of the Board
believes that it is imperative to provide Executive with certain severance
benefits upon certain terminations of Executive’s employment with the
Company.  These benefits will provide
Executive with enhanced financial security and incentive and encouragement to
remain with the Company.

4.             Certain capitalized terms used in
the Agreement are defined in Section 6 below.

AGREEMENT

NOW, THEREFORE, in
consideration of the mutual covenants contained herein, the parties hereto
agree as follows:

1.             Term of Agreement.  This Agreement will have an initial term of three (3) years commencing
on the Effective Date.  Notwithstanding
the previous sentence, in the event of a Change of Control within three years
of the Effective Date, the term of this Agreement will extend through the
one-year anniversary of such Change of Control.

2.             At-Will Employment.  The Company and Executive acknowledge that
Executive’s employment is and will continue to be at-will, as defined under
applicable law.  If Executive’s
employment terminates for any reason, Executive will not be entitled to any
payments, benefits, damages, awards or compensation other than as provided by
this Agreement.

 

3.             Severance Benefits.

(a)           Termination
other than for Cause.  If the Company
(or any parent or subsidiary of the Company) terminates Executive’s employment
with the Company (or any parent or subsidiary of the Company) for a reason
other than Cause, Executive’s Disability or Executive’s death, then, subject to
Section 4, Executive will receive the following severance benefits from the
Company:

(i)            Accrued
Compensation.  Executive will be
entitled to receive all accrued vacation, expense reimbursements and any other
benefits due to Executive through the date of termination of employment in
accordance with the Company’s then existing employee benefit plans, policies
and arrangements.

(ii)           Severance
Payments.  Executive will be paid
continuing payments of severance pay for six (6) months from the date of such
termination at a monthly rate equal to Executive’s monthly base salary rate, as
then in effect.  Such payments shall be
paid periodically in accordance with the Company’s normal payroll policies.

(iii)          Continued
Benefits.  Executive will receive
Company-paid coverage during the first six (6) months following such
termination for Executive and Executive’s eligible dependents under the Company’s
Benefit Plans.

(iv)          Option Exercisability.  The vested portion of any stock options held
by Executive as of the termination date will remain exercisable until the
earlier of (i) the term of the applicable option or (ii) the date six (6)
months from the termination date.

(v)           Payments or Benefits Required by
Law.  Executive will receive such
other compensation or benefits from the Company as may be required by law.

(b)           Certain
Terminations in Connection with a Change of Control.  If Executive terminates his employment with
the Company (or any parent or subsidiary of the Company) for Good Reason or the
Company (or any parent or subsidiary of the Company employing Executive)
terminates Executive’s employment with the Company (or any parent or subsidiary
of the Company) for a reason other than Cause, Executive’s Disability or
Executive’s death within two (2) months prior to or twelve (12) months
following a Change of Control, then (i) Executive shall receive the severance
and other benefits set forth in Sections 3(a)(i)-(v), and (ii) 50% of the
unvested shares subject to all of Executive’s outstanding rights to purchase or receive shares of
the Company’s common stock (including, without limitation, through awards of
stock options, stock appreciation rights, restricted stock units or similar
awards) whether acquired by Executive before or after the date of this
Agreement and 50% of any of Executive’s shares of Company common stock subject
to a Company right of repurchase or forfeiture upon Executive’s termination of
employment for any reason (whether acquired by Executive before or after the
date of this Agreement), will immediately vest and, if applicable, become
exercisable upon such termination.  Notwithstanding
the foregoing, if any termination of employment occurs during the period
beginning on July 25, 2006 and ending on July 24, 2007, pursuant to
which the Executive would otherwise qualify to receive severance benefits under
this Section 3(b), then any amount or benefit determined by reference to
Sections 3(a)(ii) and (iii) above shall be determined by substituting “twelve
(12) months” for “six (6) 

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months.”  In
addition, if the plan document or agreement governing any equity award would
provide greater vesting rights than those provided under this Section 3(b),
then the provisions of the plan, or agreement, as applicable, shall
govern.  In all other respects, such
awards will continue to be subject to the terms and conditions of the plans, if
any, under which they were granted and any applicable agreements between the
Company and Executive.

(c)           Other Terminations.  If
Executive voluntarily terminates Executive’s employment with the Company or any
parent or subsidiary of the Company (other than for Good Reason within
two (2) months prior to or twelve (12) months following a Change of Control) or if the Company (or any parent or
subsidiary of the Company) terminates Executive’s employment with the Company
(or any parent or subsidiary of the Company) due to Executive’s death,
Disability or for Cause, then Executive will (i) receive his earned but
unpaid base salary through the date of termination of employment,
(ii) receive all accrued vacation, expense reimbursements and any other
benefits due to Executive through the date of termination of employment in
accordance with established Company plans, policies and arrangements, and
(iii) not be entitled to any other compensation or benefits (including, by
way of example but not limitation, accelerated vesting of any equity awards)
from the Company except to the extent provided under agreement(s) relating to
any equity awards or as may be required by law (for example, “COBRA” coverage
under Section 4980B of the Internal Revenue Code of 1986, as
amended (the “Code”)).

(d)           Exclusive
Remedy.  In the event of a
termination of Executive’s employment with the Company (or any parent or subsidiary
of the Company), and whether separate or in connection with a Change of
Control, the provisions of this Section 3 are intended to be and are exclusive
and in lieu of any other rights or remedies to which Executive may otherwise be
entitled, whether at law, tort or contract, in equity, or under this
Agreement.  Executive will be entitled to
no benefits, compensation or other payments or rights upon termination of
employment other than those benefits expressly set forth in this Section 3.

4.             Conditions to Receipt of
Severance.

(a)           Separation
Agreement and Release of Claims.  The
receipt of any severance pursuant to Section 3 will be subject to Executive
signing and not revoking a separation agreement and release of claims in a form
acceptable to the Company.  No severance
pursuant to Section 3 will be paid or provided until the separation
agreement and release of claims becomes effective.

(b)           Noncompetition;
Nonsolicitation.  The receipt of any
severance benefits pursuant to Section 3 will be subject to Executive not violating
the provisions of Section 7.  In the
event Executive breaches the provisions of Section 7, all continuing payments
and benefits to which Executive would have been entitled pursuant to Section 3
will immediately cease.

(c)           Section 409A.  Any
cash severance to be paid pursuant to Section 3 will not be paid during the
six-month period following Executive’s termination of employment, unless the
Company reasonably determines that paying such amounts immediately following
Executive’s termination of employment would not result in the imposition of
additional tax under Section 409A of the Code (“Section 409A”), in which case
such amounts shall be paid in accordance with normal payroll practices.  If no cash severance is paid to Executive upon
termination of his employment as a result of the previous sentence, on the
first day following such six-month period, the Company will 

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pay
Executive a lump-sum amount equal to the cumulative amounts that would have
otherwise been paid to Executive pursuant to Section 3.  Thereafter, Executive will receive his cash
severance payments pursuant to Section 3 in accordance with the Company’s
normal payroll practices.

5.             Limitation on Payments.

(a)           In
the event that the severance and other benefits provided for in this Agreement
or otherwise payable to Executive (i) constitute “parachute payments”
within the meaning of Section 280G of the Code and (ii) but for this
Section 5, would be subject to the excise tax imposed by Section 4999 of the
Code, then Executive’s severance benefits under this Agreement shall be payable
either

(i)            in full, or

(b)           as
to such lesser amount which would result in no portion of such severance
benefits being subject to excise tax under Section 4999 of the Code, whichever
of the foregoing amounts, taking into account the applicable federal, state and
local income taxes and the excise tax imposed by Section 4999, results in the
receipt by Executive on an after-tax basis, of the greatest amount of severance
benefits under this Agreement, notwithstanding that all or some portion of such
severance benefits may be taxable under Section 4999 of the Code.  Unless the Company and Executive otherwise
agree in writing, any determination required under this Section 5 shall be made
in writing by the Company’s independent public accountants (the “Accountants”), whose determination shall be
conclusive and binding upon the Executive and the Company for all
purposes.  For purposes of making the
calculations required by this Section 5, the Accountants may make reasonable
assumptions and approximations concerning applicable taxes and may rely on
reasonable, good faith interpretations concerning the application of Sections
280G and 4999 of the Code.  The Company
and Executive shall furnish to the Accountants such information and documents
as the Accountants may reasonably request in order to make a determination
under this Section 5.  The Company shall
bear all costs the Accountants may reasonably incur in connection with any
calculations contemplated by this Section 5.

6.             Definition of Terms.  The following terms referred to in this
Agreement will have the following meanings:

(a)           Benefit
Plans.  “Benefit Plans” means plans, policies or arrangements that
the Company sponsors (or participates in) and that immediately prior to
Executive’s termination of employment provide Executive and/or Executive’s
eligible dependents with medical, dental, and/or vision benefits.  Benefit Plans do not include any other type
of benefit (including, but not by way of limitation, disability, life insurance
or retirement benefits). A requirement that the Company provide Executive and
Executive’s eligible dependents with coverage under the Benefit Plans will not
be satisfied unless the coverage is no less favorable than that provided to
Executive and Executive’s eligible dependents immediately prior to Executive’s
termination of employment. 
Notwithstanding any contrary provision of this Section 6(a), but subject
to the immediately preceding sentence, the Company may, at its option, satisfy
any requirement that the Company provide coverage under any Benefit Plan by (i) reimbursing Executive’s premiums under
COBRA after Executive has properly elected continuation coverage under COBRA
(in which case Executive will be solely responsible for electing such coverage
for Executive and Executive’s eligible dependents), or (ii) instead
providing 

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coverage under a separate plan or plans providing coverage that is no
less favorable or by paying Executive a lump sum payment sufficient to provide
Executive and Executive’s eligible dependents with equivalent coverage under a
third party plan that is reasonably available to Executive and Executive’s
eligible dependents.

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

(c)           Change
of Control.  “Change of Control” means the occurrence of any of the following:

(i)            the sale, lease,
conveyance or other disposition of all or substantially all of the Company’s
assets to any “person” (as such term is used in Section 13(d) of the Securities
Exchange Act of 1934, as amended), entity or group of persons acting in
concert;

(ii)           any person or group
of persons becoming the “beneficial owner” (as defined in Rule 13d-3 under said
Act), directly or indirectly, of securities of the Company representing 50% or
more of the total voting power represented by the Company’s then outstanding
voting securities;

(iii)          a merger or
consolidation of the Company with any other corporation, other than a merger or
consolidation that would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity or its controlling entity) more than 50% of the total voting
power represented by the voting securities of the Company or such surviving
entity (or its controlling entity) outstanding immediately after such merger or
consolidation; or

(iv)          a contest for
the election or removal of members of the Board that results in the removal
from the Board of at least 50% of the incumbent members of the Board.

(d)           Disability.  “Disability”
means that Executive has been unable to perform the principal functions of his
duties due to a physical or mental impairment, but only if such inability has 

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lasted or is reasonably expected to last for at least six (6)
months.  Whether Executive has a
Disability will be determined by the Board based on evidence provided by one or
more physicians selected or approved by the Board.

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

7.             Restrictive
Covenants.

(a)           Noncompete.  For a period beginning on the Effective Date
and ending twelve (12) months after Executive ceases to be employed by the
Company (or any parent or subsidiary of the Company), Executive agrees to not,
directly or indirectly, engage in (whether as an employee, consultant, agent,
proprietor, principal, partner, stockholder, corporate officer, director or
otherwise), nor have any ownership interest in or participate in the financing,
operation, management or control of, any person, firm, corporation or business
that competes with Company (or any parent or subsidiary of the Company).

(b)           Nonsolicit.  For a period beginning on the Effective Date
and ending twelve (12) months after Executive ceases to be employed by the
Company (or any parent or subsidiary of the Company), Executive, directly or indirectly,
whether as employee, owner, sole proprietor, partner, director, member,
consultant, agent, founder, co-venturer or otherwise, will not:  (i) solicit, induce or influence any
person to leave employment with the Company (or any parent or subsidiary of the
Company); or (ii) directly or indirectly solicit business from any of the
Company’s customers and users on behalf of any business that directly competes
with the principal business of the Company (or any parent or subsidiary of the
Company).

(c)           Understanding
of Covenants.  Executive represents
that he (i) is familiar with the foregoing covenants not to compete and
not to solicit, and (ii) is fully aware of his obligations hereunder,
including, without limitation, the reasonableness of the length of time, scope
and geographic coverage of these covenants.

8.             Litigation.  Executive agrees to cooperate with the
Company beginning on the Effective Date and thereafter (including following
Executive’s termination of employment for any reason), by making himself
reasonably available to testify on behalf of the Company or any of its
affiliates in any action, suit, or proceeding, whether civil, criminal,
administrative, or investigative, and to assist the Company, or any affiliate,
in any such action, suit, or proceeding, by providing information and meeting
and consulting with the Board or its representatives or counsel, or
representatives or counsel to the Company, or any affiliate as reasonably
requested.  The Company 

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agrees to reimburse
Executive for all expenses actually incurred in connection with his provision
of testimony or assistance.

9.             Successors.

(a)           The
Company’s Successors.  Any successor
to the Company (whether direct or indirect and whether by purchase, merger,
consolidation, liquidation or otherwise) to all or substantially all of the
Company’s business and/or assets will assume the obligations under this
Agreement and agree expressly to perform the obligations under this Agreement
in the same manner and to the same extent as the Company would be required to
perform such obligations in the absence of a succession.  For all purposes under this Agreement, the
term “Company” will
include any successor to the Company’s business and/or assets which executes
and delivers the assumption agreement described in this Section 9(a) or which
becomes bound by the terms of this Agreement by operation of law.

(b)           The
Executive’s Successors.  The terms of
this Agreement and all rights of Executive hereunder will inure to the benefit
of, and be enforceable by, Executive’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees.

10.           Notice.

(a)           General.  Notices and all other communications
contemplated by this Agreement will be in writing and will be deemed to have
been duly given when personally delivered or when mailed by U.S. registered or
certified mail, return receipt requested and postage prepaid.  In the case of Executive, mailed notices will
be addressed to him at the home address which he most recently communicated to
the Company in writing.  In the case of
the Company, mailed notices will be addressed to its corporate headquarters,
and all notices will be directed to the attention of its General Counsel.

(b)           Notice
of Termination.  Any termination by
the Company for Cause or by Executive for Good Reason or as a result of a
voluntary resignation will be communicated by a notice of termination to the
other party hereto given in accordance with Section 10(a) of this
Agreement.  Such notice will indicate the
specific termination provision in this Agreement relied upon, will set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination under the provision so indicated, and will specify the termination
date (which will be not more than thirty (30) days after the giving of such
notice).

11.           Miscellaneous Provisions.

(a)           No
Duty to Mitigate.  Executive will not
be required to mitigate the amount of any payment contemplated by this
Agreement, nor will any such payment be reduced by any earnings that Executive
may receive from any other source.

(b)           Resignation
as Director.  Upon the Company’s
written request, Executive agrees to promptly resign as a member of the Company’s
Board of Directors following any termination of his employment with the Company
(or any parent or subsidiary of the Company).

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(c)           Waiver.  No provision of this Agreement will be
modified, waived or discharged unless the modification, waiver or discharge is
agreed to in writing and signed by Executive and by an authorized officer of
the Company (other than Executive).  No
waiver by either party of any breach of, or of compliance with, any condition
or provision of this Agreement by the other party will be considered a waiver
of any other condition or provision or of the same condition or provision at
another time.

(d)           Headings.  All captions and section headings used in
this Agreement are for convenient reference only and do not form a part of this
Agreement.

(e)           Entire
Agreement.  This Agreement constitutes
the entire agreement of the parties hereto and supersedes in their entirety all
prior representations, understandings, undertakings or agreements (whether oral
or written and whether expressed or implied) of the parties with respect to the
subject matter hereof, including without limitation, any formal offer letter or
employment agreement by and between the Company and Executive.  No future agreements between the Company and
Executive may supersede this Agreement, unless they are in writing and specifically
mention this Agreement.

(f)            Choice
of Law.  The laws of the State of
California (without reference to its choice of laws provisions) will govern the
validity, interpretation, construction and performance of this Agreement.

(g)           Severability.  The invalidity or unenforceability of any
provision or provisions of this Agreement will not affect the validity or
enforceability of any other provision hereof, which will remain in full force
and effect.

(h)           Withholding.  All payments made pursuant to this Agreement
will be subject to withholding of applicable income and employment taxes.

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

[Remainder of Page Intentionally Left Blank]

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

	
  COMPANY

  	
  PHOENIX TECHNOLOGIES LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott Taylor

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice
  President and General Counsel 

  
	
   

  	
   

  
	
   

  	
   

  
	
  EXECUTIVE

  	
  IRA SCHARFGLASS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ira Scharfglass

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  SVP and GM, Worldwide Engineering Operations

  
				

 

 9Exhibit 10.21

PHOENIX
TECHNOLOGIES LTD.

SEVERANCE
AND CHANGE OF CONTROL AGREEMENT

This Severance and Change of Control Agreement (the “Agreement”) is made and entered into by and
between Gaurav Banga (“Executive”)
and Phoenix Technologies Ltd. (the “Company”),
effective as of October 9, 2006 (the “Effective Date”).

RECITALS

1.             It is possible that the Company
could terminate Executive’s employment with the Company.  The Board of Directors of the Company (the “Board”) recognizes that such consideration
can be a distraction to Executive and can cause Executive to consider
alternative employment opportunities. 
The Compensation Committee of the Board (pursuant to its delegated
authority) has determined that it is in the best interests of the Company and
its stockholders to assure that the Company will have the continued dedication
and objectivity of Executive, notwithstanding the possibility, threat or
occurrence of such a termination.

2.             The Compensation Committee of the Board
believes that it is in the best interests of the Company and its stockholders
to provide Executive with an incentive to continue his employment and to
motivate Executive to maximize the value of the Company for the benefit of its
stockholders.

3.             The Compensation Committee of the Board
believes that it is imperative to provide Executive with certain severance
benefits upon certain terminations of Executive’s employment with the
Company.  These benefits will provide
Executive with enhanced financial security and incentive and encouragement to
remain with the Company.

4.             Certain capitalized terms used in
the Agreement are defined in Section 6 below.

AGREEMENT

NOW, THEREFORE, in
consideration of the mutual covenants contained herein, the parties hereto
agree as follows:

1.             Term of Agreement.  This Agreement will have an initial term of three (3) years commencing
on the Effective Date.  Notwithstanding
the previous sentence, in the event of a Change of Control within three years
of the Effective Date, the term of this Agreement will extend through the
one-year anniversary of such Change of Control.

2.             At-Will Employment.  The Company and Executive acknowledge that
Executive’s employment is and will continue to be at-will, as defined under
applicable law.  If Executive’s
employment terminates for any reason, Executive will not be entitled to any
payments, benefits, damages, awards or compensation other than as provided by
this Agreement.

3.             Severance Benefits.

(a)           Termination
other than for Cause.  If the Company
(or any parent or subsidiary of the Company employing Executive) terminates
Executive’s employment with the Company (or any parent or subsidiary of the
Company) for a reason other than Cause, Executive’s Disability or Executive’s
death, then, subject to Section 4, Executive will receive the following
severance benefits from the Company:

(i)            Accrued
Compensation.  Executive will be
entitled to receive all accrued vacation, expense reimbursements and any other
benefits due to Executive through the date of termination of employment in
accordance with the Company’s then existing employee benefit plans, policies
and arrangements.

(ii)           Severance
Payments.  Executive will be paid
continuing payments of severance pay for six (6) months from the date of such
termination at a monthly rate equal to Executive’s monthly base salary rate, as
then in effect.  Such payments shall be
paid periodically in accordance with the Company’s normal payroll policies.

(iii)          Continued
Benefits.  Executive will receive
Company-paid coverage during the first six (6) months following such
termination for Executive and Executive’s eligible dependents under the Company’s
Benefit Plans.

(iv)          Option Exercisability.  The vested portion of any stock options held
by Executive as of the termination date will remain exercisable until the
earlier of (i) the term of the applicable option or (ii) the date six
(6) months from the termination date.

(v)           Payments or Benefits Required by
Law.  Executive will receive such
other compensation or benefits from the Company as may be required by law.

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

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(c)           Other Terminations.  If
Executive voluntarily terminates Executive’s employment with the Company or any
parent or subsidiary of the Company (other than for Good Reason within
two (2) months prior to or twelve (12) months following a Change of Control) or if the Company (or any parent or
subsidiary of the Company employing Executive) terminates Executive’s
employment with the Company (or any parent or subsidiary of the Company) due to
Executive’s death, Disability or for Cause, then Executive will (i) receive
his earned but unpaid base salary through the date of termination of
employment, (ii) receive all accrued vacation, expense reimbursements and
any other benefits due to Executive through the date of termination of
employment in accordance with established Company plans, policies and
arrangements, and (iii) not be entitled to any other compensation or
benefits (including, by way of example but not limitation, accelerated vesting
of any equity awards) from the Company except to the extent provided under
agreement(s) relating to any equity awards or as may be required by law (for
example, “COBRA” coverage under Section 4980B of the Internal
Revenue Code of 1986, as amended (the “Code”)).

(d)           Exclusive
Remedy.  In the event of a
termination of Executive’s employment with the Company (or any parent or
subsidiary of the Company), and whether separate or in connection with a Change
of Control, the provisions of this Section 3 are intended to be and are
exclusive and in lieu of any other rights or remedies to which Executive may otherwise
be entitled, whether at law, tort or contract, in equity, or under this
Agreement.  Executive will be entitled to
no benefits, compensation or other payments or rights upon termination of
employment other than those benefits expressly set forth in this Section 3.

4.             Conditions to Receipt of
Severance.

(a)           Separation
Agreement and Release of Claims.  The
receipt of any severance pursuant to Section 3 will be subject to
Executive signing and not revoking a separation agreement and release of claims
in a form acceptable to the Company.  No
severance pursuant to Section 3 will be paid or provided until the
separation agreement and release of claims becomes effective.

(b)           Noncompetition;
Nonsolicitation.  The receipt of any
severance benefits pursuant to Section 3 will be subject to Executive not
violating the provisions of Section 7. 
In the event Executive breaches the provisions of Section 7, all
continuing payments and benefits to which Executive would have been entitled
pursuant to Section 3 will immediately cease.

(c)           Section 409A.  Any
cash severance to be paid pursuant to Section 3 will not be paid during
the six-month period following Executive’s termination of employment, unless
the Company reasonably determines that paying such amounts immediately
following Executive’s termination of employment would not result in the
imposition of additional tax under Section 409A of the Code (“Section 409A”),
in which case such amounts shall be paid in accordance with normal payroll
practices.  If no cash severance is paid
to Executive upon termination of his employment as a result of the previous
sentence, on the first day following such six-month period, the Company will
pay Executive a lump-sum amount equal to the cumulative amounts that would have
otherwise been paid to Executive pursuant to Section 3.  Thereafter, Executive will receive his cash
severance payments pursuant to Section 3 in accordance with the Company’s
normal payroll practices.

 3
 

5.             Limitation on Payments.

(a)           In
the event that the severance and other benefits provided for in this Agreement
or otherwise payable to Executive (i) constitute “parachute payments”
within the meaning of Section 280G of the Code and (ii) but for this Section 5,
would be subject to the excise tax imposed by Section 4999 of the Code,
then Executive’s severance benefits under this Agreement shall be payable
either

(i)            in full, or

(b)           as
to such lesser amount which would result in no portion of such severance
benefits being subject to excise tax under Section 4999 of the Code,
whichever of the foregoing amounts, taking into account the applicable federal,
state and local income taxes and the excise tax imposed by Section 4999,
results in the receipt by Executive on an after-tax basis, of the greatest
amount of severance benefits under this Agreement, notwithstanding that all or
some portion of such severance benefits may be taxable under Section 4999
of the Code.  Unless the Company and
Executive otherwise agree in writing, any determination required under this Section 5
shall be made in writing by the Company’s independent public accountants (the “Accountants”), whose determination shall be
conclusive and binding upon the Executive and the Company for all
purposes.  For purposes of making the
calculations required by this Section 5, the Accountants may make
reasonable assumptions and approximations concerning applicable taxes and may
rely on reasonable, good faith interpretations concerning the application of
Sections 280G and 4999 of the Code.  The
Company and Executive shall furnish to the Accountants such information and
documents as the Accountants may reasonably request in order to make a
determination under this Section 5. 
The Company shall bear all costs the Accountants may reasonably incur in
connection with any calculations contemplated by this Section 5.

6.             Definition of Terms.  The following terms referred to in this
Agreement will have the following meanings:

(a)           Benefit
Plans.  “Benefit Plans” means plans, policies or arrangements that
the Company sponsors (or participates in) and that immediately prior to
Executive’s termination of employment provide Executive and/or Executive’s
eligible dependents with medical, dental, and/or vision benefits.  Benefit Plans do not include any other type
of benefit (including, but not by way of limitation, disability, life insurance
or retirement benefits). A requirement that the Company provide Executive and
Executive’s eligible dependents with coverage under the Benefit Plans will not
be satisfied unless the coverage is no less favorable than that provided to
Executive and Executive’s eligible dependents immediately prior to Executive’s
termination of employment. 
Notwithstanding any contrary provision of this Section 6(a), but
subject to the immediately preceding sentence, the Company may, at its option,
satisfy any requirement that the Company provide coverage under any Benefit
Plan by (i) reimbursing Executive’s
premiums under COBRA after Executive has properly elected continuation coverage
under COBRA (in which case Executive will be solely responsible for electing
such coverage for Executive and Executive’s eligible dependents), or (ii) instead
providing coverage under a separate plan or plans providing coverage that is no
less favorable or by paying Executive a lump sum payment sufficient to provide
Executive and Executive’s eligible dependents with equivalent coverage under a
third party plan that is reasonably available to Executive and Executive’s
eligible dependents.

 4
 

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

(c)           Change of
Control.  “Change of Control” means the occurrence of any of the following:

(i)            the sale, lease,
conveyance or other disposition of all or substantially all of the Company’s
assets to any “person” (as such term is used in Section 13(d) of the
Securities Exchange Act of 1934, as amended), entity or group of persons acting
in concert;

(ii)           any person or group
of persons becoming the “beneficial owner” (as defined in Rule 13d-3 under said
Act), directly or indirectly, of securities of the Company representing 50% or
more of the total voting power represented by the Company’s then outstanding
voting securities;

(iii)          a merger or
consolidation of the Company with any other corporation, other than a merger or
consolidation that would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity or its controlling entity) more than 50% of the total voting
power represented by the voting securities of the Company or such surviving
entity (or its controlling entity) outstanding immediately after such merger or
consolidation; or

(iv)          a contest for
the election or removal of members of the Board that results in the removal from
the Board of at least 50% of the incumbent members of the Board.

(d)           Disability.  “Disability”
means that Executive has been unable to perform the principal functions of his
duties due to a physical or mental impairment, but only if such inability has
lasted or is reasonably expected to last for at least six (6) months.  Whether Executive has a Disability will be
determined by the Board based on evidence provided by one or more physicians
selected or approved by the Board.

 5
 

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

7.             Restrictive Covenants.

(a)           Noncompete.  For a period beginning on the Effective Date
and ending twelve (12) months after Executive ceases to be employed by the
Company (or any parent or subsidiary of the Company), Executive agrees to not,
directly or indirectly, engage in (whether as an employee, consultant, agent,
proprietor, principal, partner, stockholder, corporate officer, director or
otherwise), nor have any ownership interest in or participate in the financing,
operation, management or control of, any person, firm, corporation or business
that competes with Company (or any parent or subsidiary of the Company).

(b)           Nonsolicit.  For a period beginning on the Effective Date
and ending twelve (12) months after Executive ceases to be employed by the
Company (or any parent or subsidiary of the Company), Executive, directly or
indirectly, whether as employee, owner, sole proprietor, partner, director,
member, consultant, agent, founder, co-venturer or otherwise, will not: (i) solicit,
induce or influence any person to leave employment with the Company (or any
parent or subsidiary of the Company); or (ii) directly or indirectly
solicit business from any of the Company’s customers and users on behalf of any
business that directly competes with the principal business of the Company (or
any parent or subsidiary of the Company).

(c)           Understanding of Covenants.  Executive represents that he (i) is
familiar with the foregoing covenants not to compete and not to solicit, and (ii) is
fully aware of his obligations hereunder, including, without limitation, the
reasonableness of the length of time, scope and geographic coverage of these
covenants.

8.             Litigation.  Executive agrees to cooperate with the
Company beginning on the Effective Date and thereafter (including following
Executive’s termination of employment for any reason), by making himself
reasonably available to testify on behalf of the Company or any of its
affiliates in any action, suit, or proceeding, whether civil, criminal,
administrative, or investigative, and to assist the Company, or any affiliate,
in any such action, suit, or proceeding, by providing information and meeting
and consulting with the Board or its representatives or counsel, or
representatives or counsel to the Company, or any affiliate as reasonably
requested.  The Company agrees to reimburse
Executive for all expenses actually incurred in connection with his provision
of testimony or assistance.

 6
 

9.             Successors.

(a)           The
Company’s Successors.  Any successor
to the Company (whether direct or indirect and whether by purchase, merger,
consolidation, liquidation or otherwise) to all or substantially all of the
Company’s business and/or assets will assume the obligations under this
Agreement and agree expressly to perform the obligations under this Agreement
in the same manner and to the same extent as the Company would be required to
perform such obligations in the absence of a succession.  For all purposes under this Agreement, the
term “Company” will
include any successor to the Company’s business and/or assets which executes
and delivers the assumption agreement described in this Section 9(a) or
which becomes bound by the terms of this Agreement by operation of law.

(b)           The
Executive’s Successors.  The terms of
this Agreement and all rights of Executive hereunder will inure to the benefit
of, and be enforceable by, Executive’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees.

10.           Notice.

(a)           General.  Notices and all other communications
contemplated by this Agreement will be in writing and will be deemed to have
been duly given when personally delivered or when mailed by U.S. registered or
certified mail, return receipt requested and postage prepaid.  In the case of Executive, mailed notices will
be addressed to him at the home address which he most recently communicated to
the Company in writing.  In the case of
the Company, mailed notices will be addressed to its corporate headquarters,
and all notices will be directed to the attention of its General Counsel.

(b)           Notice
of Termination.  Any termination by
the Company for Cause or by Executive for Good Reason or as a result of a
voluntary resignation will be communicated by a notice of termination to the
other party hereto given in accordance with Section 10(a) of this
Agreement.  Such notice will indicate the
specific termination provision in this Agreement relied upon, will set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination under the provision so indicated, and will specify the termination
date (which will be not more than thirty (30) days after the giving of such
notice).

11.           Miscellaneous Provisions.

(a)           No
Duty to Mitigate.  Executive will not
be required to mitigate the amount of any payment contemplated by this
Agreement, nor will any such payment be reduced by any earnings that Executive
may receive from any other source.

(b)           Resignation
as Director.  Upon the Company’s
written request, Executive agrees to promptly resign as a member of the Company’s
Board of Directors following any termination of his employment with the Company
(or any parent or subsidiary of the Company).

(c)           Waiver.  No provision of this Agreement will be
modified, waived or discharged unless the modification, waiver or discharge is
agreed to in writing and signed by Executive and by an authorized officer of
the Company (other than Executive).  No
waiver by either party of any breach of, or of compliance with, any condition
or provision of this Agreement by the other party will be considered a waiver
of any other condition or provision or of the same condition or provision at
another time.

 7
 

(d)           Headings.  All captions and Section headings used
in this Agreement are for convenient reference only and do not form a part of
this Agreement.

(e)           Entire
Agreement.  This Agreement
constitutes the entire agreement of the parties hereto and supersedes in their
entirety all prior representations, understandings, undertakings or agreements
(whether oral or written and whether expressed or implied) of the parties with
respect to the subject matter hereof, including without limitation, any formal offer
letter or employment agreement by and between the Company and Executive.  No future agreements between the Company and
Executive may supersede this Agreement, unless they are in writing and specifically
mention this Agreement.

(f)            Choice
of Law.  The laws of the State of
California (without reference to its choice of laws provisions) will govern the
validity, interpretation, construction and performance of this Agreement.

(g)           Severability.  The invalidity or unenforceability of any
provision or provisions of this Agreement will not affect the validity or
enforceability of any other provision hereof, which will remain in full force
and effect.

(h)           Withholding.  All payments made pursuant to this Agreement
will be subject to withholding of applicable income and employment taxes.

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

[Remainder of Page Intentionally Left Blank]

 8
 

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

	
  COMPANY

  	
  PHOENIX TECHNOLOGIES LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Scott Taylor

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  SVP and General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXECUTIVE

  	
  GAURAV BANGA

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gaurav Banga

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  CTO and SVP

  

 

 9

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