Document:

Exhibit 10.11

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 Kort van Bronkhorst (“Executive”)
and Phoenix Technologies Ltd. (the “Company”),
effective as of February 17, 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

  	
  KORT VAN BRONKHORST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kort Van Bronkhorst

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice President Marketing

  	
   

  

 

 9Exhibit 10.12

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 David Eichler (“Executive”)
and Phoenix Technologies Ltd. (the “Company”),
effective as of April 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) 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) 100% 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 100% 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
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 pay Executive a lump-sum amount equal
to the cumulative amounts that would have otherwise been 

 3
 

 

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 coverage under a separate plan or plans providing coverage that is no
less favorable or by paying 

 4
 

 

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
lasted or is reasonably expected to last for at least six (6) months.  Whether Executive has a 

 5
 

 

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 

 6
 

 

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).

 7
 

 

 

(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]

 8
 

 

 

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

  	
  DAVID EICHLER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Eichler

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Chief Financial Officer 

  	
   

  

 

 9

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