Document:

Long Term Incentive Plan

 Exhibit 10.1 
  
 MERCURY COMPUTER SYSTEMS, INC. 
 LONG TERM INCENTIVE PLAN 
  
 1.
Purpose. This Plan is intended to create incentives for certain executive officers and key employees of the Company to allow the Company to attract and retain in its employ persons who will contribute to the future success of the Company. It
is further the intent of the Company that Awards made under this Plan be used to achieve the twin goals of (i) aligning executive incentive compensation with increases in stockholder value over the long term, and (ii) using equity compensation as a
tool to retain key employees. In furtherance of the second goal, it is the intention of the Company that fifty percent (50%) of each Award made under this Plan will be made in the form of either restricted stock or restricted stock units, with
time-based vesting over a period to be determined by the Committee. 
  
 2.
Definitions. Capitalized terms not otherwise defined herein shall have the meanings set forth below: 
  
 2.1 “Annual Bonus Target Award” shall mean, for any Participant, that award made under the Company’s Annual Bonus Plan. 

 
 2.2 “Annual Bonus Plan” shall mean the Mercury Computer
Systems, Inc. Annual Bonus Plan. 
  
 2.3 “Award”
shall mean, for any Participant, actual payment in cash or restricted equity at the end of the Performance Period. 
  
 2.4 “Committee” shall mean those members of the Compensation Committee of the Board of Directors of the Company who are
“non-employee directors” as such term is defined under Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as amended. 
  
 2.5 “Company” shall mean Mercury Computer Systems, Inc. 
  
 2.6 “Effective Date” shall mean July 1, 2004. 
  
 2.7 “Fiscal Year” shall mean the fiscal year of the Company, which is the 12-month period ending June 30 of
each year. 
  
 2.8 “Participant” shall mean any
executive officer or any key employee recommended by the Chief Executive Officer and approved by the Committee pursuant to Section 4 to participate herein with respect to a Performance Period. 
  
 2.9 “Performance Measure” for any Performance Period shall
mean (i) operating income as a percentage of sales revenue and (ii) revenue growth year over year. 
  
 2.10 “Performance Period” shall mean each Fiscal Year of the Company. The initial Performance Period ends on June 30, 2005. 

 
 2.11 “Plan” shall mean the Mercury Computer Systems, Inc.
Long Term Incentive Plan, as amended from time to time. 
  
 2.12
“Share” shall mean a share of the common stock, par value $.01 per share, of the Company. 
  
 2.13 “Stock Option Plan” shall mean the Mercury Computer Systems, Inc. 1997 Stock Option Plan, as amended and restated. 
  
 2.14 “Target Award” shall mean, for any Participant, a
percentage of his or her base salary at the beginning of a Performance Period. The percentage shall be identical to the Participant’s Annual Bonus Target percentage. 
  
 3. Administration. The Committee shall have sole discretionary power to interpret the provisions of this Plan, to administer and make
all decisions and exercise all rights of the Company with respect to this Plan. The Committee shall have final authority to apply the provisions of the Plan and determine, in its sole discretion, the amount of the Awards to be paid or allocated to
Participants hereunder and shall also have the exclusive discretionary authority to make all other determinations (including, without limitation, the 

 interpretation and construction of the Plan and the determination of relevant facts) regarding the entitlement to
benefits hereunder and the amount of benefits to be paid from the Plan. The Committee’s exercise of this discretionary authority shall at all times be in accordance with the terms of the Plan and shall be entitled to deference upon review by
any court, agency or other entity empowered to review its decision, and shall be enforced provided that it is not arbitrary, capricious or fraudulent. 
  
 4. Eligibility. For each Performance Period, those executive officers and key employees recommended by the Chief Executive Officer and approved by the Committee
shall be Participants. The selection of an individual to be a Participant in any one Performance Period does not entitle the individual to be a Participant in any other Performance Period. A newly hired executive may be eligible to be selected as a
Participant if he or she is hired prior to January 1 of a Performance Period. Any Participant who is not a Participant for the entire Performance Period, including a newly hired or promoted Participant, shall receive a pro rated Target Award based
on his or her period of participation. 
  
 5. Performance Measure and
Awards 
  
 5.1 Performance Measure. Within the first
90 days of a Performance Period, the Committee shall establish the threshold and target amounts of the Performance Measure for the Performance Period. Such amounts shall be set forth in an exhibit to the Plan. 
  
 5.2 Granting of Awards. Each Participant shall receive a Target Award
for a Performance Period. 
  
 5.3 Nature of Awards. The
Target Awards granted under this Plan shall be used solely as a device for the measurement and determination of certain compensation to be paid to each Participant as provided herein. Awards shall not constitute or be treated as property or as a
trust fund of any kind or as capital stock of the Company, stock options or other form of equity or security until they are paid out in the form of cash or restricted stock or restricted stock units. 
  
 6. Payments. 
  
 6.1 Committee Certification. No annual payments shall be made if the operating income as a percent of sales aspect of
the Performance Measure has not been met for a Performance Period. If the operating income as a percent of sale aspect of the Performance Measure and at least the threshold level of the revenue growth aspect of the Performance Measure have been met
for a Performance Period, the amount of the annual Award will be made pursuant to the provisions of Section 6.2. Notwithstanding the foregoing, the Committee retains the discretion to increase Awards and to provide for payment of Awards even if the
Performance Measure has not been met for a Performance Period. 
  
 6.2 Annual Awards to Participants. The annual Awards to Participants at the end of each Performance Period will vary depending upon the achievement of the revenue growth target for such Performance Period as set forth below:

  

				
	 	  	Percentage of Target Award

	 
	 If Revenue Growth does not meet the Threshold Level:
	  	0	%
	 If Revenue Growth meets the Threshold Level:
	  	75	%
	 If Revenue Growth meets the Target Level:
	  	100	%

  
 For revenue growth between the
Threshold and the Target Levels, the Award will be increased above the threshold level for additional growth in revenue as follows: 
  
 At 96%, 80% of Target Award 
 At 97%, 85% of Target Award 
 At 98%, 90% of Target Award 
 At 99%, 95% of Target Award 
  
 For revenue growth above Target Level, the Award will be increased by 3.75 percent for each one percentage point improvement in revenue growth, up to a maximum of 20
percentage points above Target Level. Actual results will be rounded up or down to the nearest whole percentage point. By way of example only, if revenue growth is at 97 percent of Target, the Award will be 85 percent of the Target Award, and if
revenue growth is at 15 percentage points above Target, the Award will be 156.25 percent of the Target Award. 

 Fifty percent of the annual Award to each Participant will be paid to such Participant in cash within 60 days after the
end of the Performance Period. The remaining 50 percent of the annual Award will be made in the form of restricted stock or restricted stock units settled in Shares as determined by the Committee, with vesting over time as set forth in the award
agreement. The conversion of dollar amounts of the 50 percent of the annual Award to determine the number of restricted stock or restricted stock units will be based on the fair market value of a Share on the date of grant. Shares will be issued
from the Stock Option Plan. 
  
 7. Forfeiture. 
  
 (a) Unless otherwise determined by the Committee, a Participant whose
employment with the Company terminates for any reason prior to fulfilling the vesting requirements for his or her restricted stock or restricted stock units hereunder shall forfeit all rights to his or her restricted stock or restricted stock units
that remain unvested on his or her termination date. A Participant who becomes ineligible to participate in the Plan during a Performance Period as a result of a change in position will continue to vest in any restricted stock or restricted stock
unit previously awarded. 
  
 (b) If during a Performance Period a
Participant is terminated for cause, is in breach of his or her employment agreement or voluntarily terminates his or her employment, he or she will lose any right to receive any Awards not yet paid. If during a Performance Period a Participant
dies, becomes disabled (within the meaning of Section 22(e)(3) of the Code), retires after attaining the minimum age, completing the minimum years of service and satisfying all other conditions specified for retirement status under the
Company’s Retirement Policy Statement, becomes ineligible to participate in the Plan as a result of a change in position or is involuntarily terminated by the Company, he or she shall receive a pro rata portion of his or her annual Award
payable in cash under Section 6.2 based upon his or her actual length of participation period, but he or she shall have no right to receive any annual Award payable in Shares. 
  
 8. Amendment or Termination of Plan. The Compensation Committee may amend or terminate this Plan at any time or from time to time;
provided, however, that no such amendment or termination shall, without the written consent of the Participants, in any material adverse way affect the rights of a Participant with respect to benefits earned prior to the date of amendment or
termination. 
  
 9. Limitation of Company’s Liability. Subject to its
obligation to make payments as provided for hereunder, neither the Company nor any person acting on behalf of the Company shall be liable for any act performed or the failure to perform any act with respect to this Plan, except in the event that
there has been a judicial determination of willful misconduct on the part of the Company or such person. The Company is under no obligation to fund any of the payments required to be made hereunder in advance of their actual payment or to establish
any reserves with respect to this Plan. Any benefits which become payable hereunder shall be paid from the general assets of the Company. No Participant, or his or her beneficiary or beneficiaries, shall have any right, other than the right of an
unsecured general creditor, against the Company in respect of the benefits to be paid hereunder. 
  
 10. Withholding of Tax. Anything to the contrary notwithstanding, all payments required to be made by the Company hereunder shall be subject to the withholding of such amounts as the Company reasonably may
determine that it is required to withhold pursuant to applicable federal, state or local law or regulation. Withholding can be made in the form of Shares up to the minimum withholding amount. 
  
 11. Assignability. Except as otherwise provided by law, no benefit hereunder shall be
assignable, or subject to alienation, garnishment, execution or levy of any kind, and any attempt to cause any benefit to be so subject shall be void. 
  
 12. No Contract for Continuing Services. This Plan shall not be construed as creating any contract for continued services between the Company and any Participant
and nothing herein contained shall give any Participant the right to be retained as an employee of the Company. 
  
 13. Governing Law. This Plan shall be construed, administered, and enforced in accordance with the laws of the Commonwealth of Massachusetts. 
  
 14. Non-Exclusivity. The Plan does not limit the authority of the Company, the
Committee, or any subsidiary of the Company, to grant Awards or authorize any other compensation under any other plan or authority, including, without limitation, Awards or other compensation based on the same Performance Measure used under the
Plan. In addition, executives not selected to participate in the Plan may participate in other plans of the Company.Escrow Agreement, dated 21 December 2004

 Exhibit 10.1 
  
 Final 
  
 ESCROW AGREEMENT 
  
 THIS AGREEMENT dated as of the 21st day of December 2004. 
  
 BETWEEN: 
  
 The parties listed in Schedule A 
  
 (the “Warrantors”.) 
  
 - and - 
  
 Activcard Corp. 
 (a corporation registered in the State of Delaware, USA 
 whose registered address is at 6623, Dumbarton Circle, Fremont, California 94555, USA) 
  
 (the “Purchaser”) 
  
 - and - 
  
 Osborne Clarke 
 a partnership, of One London Wall, London EC2Y 5EB

  
 (the “Escrow Agent”) 
  
 RECITALS 
  
 1. The Purchaser proposes to acquire all the issued and to be issued Ordinary shares of £0.01 each in the share capital of the Company
(the “Ordinary Shares”) and all the issued and to be issued “A” Shares of £0.01 each in the share capital of the Company (“A Shares” and, together with the Ordinary Shares, the
“Shares”) in the share capital of Aspace Solutions Limited (the “Company”) not already owned by it under the terms of an agreement (the “Acquisition Agreement”) dated December 2004 among (1) the
Vendors and (2) the Purchaser. 
  
 2. The Purchaser has agreed to purchase the
Shares in reliance upon the Warranties and Indemnities given by the Warrantors set out in the Acquisition Agreement. 
  
 3. Terms defined in the Acquisition Agreement shall have the same meaning, unless the context requires otherwise, in this Agreement. 

 4. Pursuant to the Acquisition Agreement, the Purchaser will issue inter alia, to the Warrantors, certain amounts of its
common stock of par value $0.001, (the “Consideration Shares”), in partial consideration for the Shares. Schedule A sets out against each Warrantor’s name the number of Consideration Shares receivable by that Warrantor and the
number of Deposited Securities (as defined below) to be held on behalf of that Warrantor subject to the escrow arrangements set out in this Agreement. As to the remainder of the consideration payable for the Shares, the Purchaser will (subject to
the terms and conditions of the Acquisition Agreement) pay the Cash Consideration to the Vendors and Schedule A sets out the amount of the Cash Consideration receivable (subject to the terms and conditions of the Acquisition Agreement) by each
Warrantor and the amount of the Deposited Cash (as defined below) to be held on behalf of that Warrantor subject to the escrow arrangements set out in this Agreement. 
  
 5. Within ten (10) Business Days after the respective dates on and to the extent to which the Purchaser becomes obliged to issue and allot
the Consideration Shares to the Warrantors pursuant to and in accordance with Clauses 3.1 and 3.2 of the Acquisition Agreement, certificates representing those Consideration Shares which must be deposited with the Escrow Agent pursuant to clause 3.3
of the Acquisition Agreement will be deposited by the Purchaser on behalf of the Warrantors with the Escrow Agent (the “Deposited Securities”). Additionally, within the same period after the date of this Agreement, each of the
Warrantors shall deliver to the Escrow Agent a duly executed form of stock transfer or stock power with respect to the Deposited Securities, in such form as the Escrow Agent or the Purchaser may reasonably request so as to enable the Escrow Agent to
deal with and satisfy claims (if any) for a partial release only of Deposited Securities pursuant to and in accordance with Part 3 of this Agreement. The Escrow Agent shall not be obliged to make any partial release of any Deposited Securities to a
Warrantor who has failed to provide such duly executed stock power or transfer form. The Escrow Agent shall hold all such stock power or transfer forms as stakeholder pursuant to the terms of this Agreement. 
  
 6. On the respective dates on and to the extent to which the Purchaser becomes obliged to pay
the Cash Consideration to the Vendors pursuant to and in accordance with Clauses 3.1 and 3.2 of the Acquisition Agreement, the Purchaser shall pay to and deposit with the Escrow Agent on behalf of the Warrantors pursuant to and in accordance with
Clause 3.3 of the Acquisition Agreement the amounts of Cash Consideration becoming due to the Warrantors (the “Deposited Cash”). 
  
 7. The parties have entered into this Agreement to provide for the escrow of the Deposited Securities and the Deposited Cash. 
  
 8. The foregoing recitals are made by the Warrantors and the Purchaser and not by the Escrow
Agent. 

 For good and valuable consideration, the receipt and sufficiency of which each party acknowledges, the parties covenant
and agree as follows: 
  
 PART 1 - APPOINTMENT 

 
 1.01 Appointment of Escrow Agent. The Warrantors and the Purchaser hereby appoint
the Escrow Agent, and the Escrow Agent hereby agrees to act as Escrow Agent to hold the property and rights herein mentioned as stakeholder, in accordance with the terms and conditions of this Agreement. 
  
 PART 2 - ESCROW OF DEPOSITED SECURITIES AND DEPOSITED CASH 

 
 2.01 Escrow of Deposited Securities. On receipt of the certificates representing
the same, the Escrow Agent will hold the Deposited Securities in escrow and undelivered to the Purchaser and the Warrantors and, subject to the provisions of Part 3 herein, the Escrow Agent is hereby irrevocably authorized and directed to release
and deliver the Deposited Securities to the Warrantors in the proportions to which they are entitled to them pursuant to Clause 3.2 of the Acquisition Agreement on or as soon as reasonably practicable following March 31, 2006 (hereinafter referred
to as the “Release Date”). 
  
 2.02 No Transfer of Deposited
Securities. So long as any Deposited Securities remain subject to escrow in accordance with the provisions of this Agreement, each of the Warrantors hereby agrees not to sell, transfer, assign, pledge, mortgage, charge or otherwise dispose of or
grant any security interest over his Deposited Securities or any interest therein in whole or in part or enter into any arrangement or agreement, or otherwise purport, to do so. 
  
 2.03 Rights of Ownership of Deposited Securities. Any income, additional securities and rights or proceeds (other than by way of
cash) received by the Escrow Agent with respect to the Deposited Securities, while such Deposited Securities are held in escrow under this Agreement, (the “Additional Escrow Property”) shall be deemed to have been received by the
Warrantors and deposited into escrow by such Warrantors and shall be held in escrow in the same manner as the Deposited Securities relating thereto, and shall be considered as part of the Deposited Securities for purposes of administration of the
escrow. 
  
 2.04 Escrow of Deposited Cash. On receipt of funds representing
the same, the Escrow Agent will procure that the Deposited Cash is credited to an interest-bearing deposit account with its bank (the “Cash Account”) and will hold the same in escrow and undelivered to the Purchaser and the
Warrantors and, subject to the provisions of Part 3 herein, the Escrow Agent is hereby irrevocably authorised and directed to release and pay the Deposited Cash to the Warrantors in the proportions to which they are entitled to it pursuant to clause
3.2 of the Acquisition Agreement on or as soon as reasonably practicable following the Release Date. 
  
 2.05 No Transfer of Deposited Cash. So long as any Deposited Cash remains subject to escrow in accordance with the provisions of this Agreement, each of the Warrantors hereby agrees not to sell, transfer,
assign, pledge, mortgage, change or otherwise dispose of or grant any security interest over his Deposited Cash in whole or in part or enter into any arrangement or agreement, or otherwise purport, to do so. 
  

 - 3 - 

 2.06 Rights of Ownership of Deposited Cash. Any interest, additional income and other rights and proceeds by way
of cash received by the Escrow Agent with respect to the Deposited Securities or the Deposited Cash, while such Deposited Cash is held in escrow under this Agreement (the “Additional Escrow Cash”) shall be deemed to have been
received by the Warrantors and deposited into escrow by such Warrantors and shall be held in escrow in the same manner as the Deposited Cash relating thereto and shall be considered as part of the Deposited Cash for the purposes of administration of
the escrow. 
  
 2.07 Voting Rights. The Warrantors shall be entitled to
direct the Escrow Agent (at their expense) to exercise or, as may be required, concur in the exercise of, all voting and other rights attaching to the Deposited Securities and the Additional Escrow Property from time to time and at all times while
such Deposited Securities and the Additional Escrow Property are still held in escrow pursuant to this Agreement. 
  
 PART 3 – SATISFACTION OF CLAIMS 
  
 3.01 Without prejudice to the other clauses in this Part 3, prior to the Release Date, the Purchaser shall, pursuant to Clause 14.12 of the Acquisition Agreement, have the right to satisfy the amount of any Claim or
other claim under the Acquisition Agreement against a Warrantor (whether in his capacity as a Warrantor or otherwise) by set-off or otherwise, as appropriate, in such manner as the Purchaser may elect as permitted by law, against the Deposited Cash
and/or the Deposited Securities held by the Escrow Agent in respect of that Warrantor (an “Escrow Claim”). Accordingly, no Deposited Cash or Deposited Securities shall be released to that Warrantor prior to the Release Date unless
the Purchaser shall give its prior written consent in its absolute discretion. The Deposited Cash and the Deposited Securities, together with all Additional Escrow Property and Additional Escrow Cash (the aggregate thereby being the
“Deposited Funds”), shall be held by the Escrow Agent in respect of that Warrantor until either: 
  
 (a) the amount of the liability of the relevant Warrantor with respect to any Escrow Claim made by the Purchaser on or before the Release Date, such amount either having
been agreed upon by the Purchaser and the relevant Warrantor in writing or having been finally determined in accordance with clause 3.05 (the “Specified Amount”), when the terms of clause 3.02 or 3.03 shall apply (as the case may
be); or 
  
 (b) the Release Date when, subject to the provisions of clause 3.04,
the Escrow Agent is hereby irrevocably instructed to release the Deposited Funds (or so much of them as remains after the operation of the provisions of this Agreement) held in respect of a Warrantor, to the relevant Warrantor. 
  

 - 4 - 

 3.02 If the Escrow Agent receives prior to the Release Date a disbursement certificate in substantially the form attached
hereto as Exhibit A (a “Disbursement Certificate”), executed by a Warrantor or the Warrantors’ Representative in respect of more than one Warrantor and a duly authorized representative of the Purchaser notifying a Specified
Amount in respect of the relevant Warrantor(s) and such Specified Amount is equal to or greater than the Deposited Funds held in respect of the relevant Warrantor(s), then the Escrow Agent is hereby irrevocably instructed to release the Deposited
Funds held in respect of the relevant Warrantor(s) to the Purchaser. 
  
 3.03 If
the Escrow Agent receives prior to the Release Date a Disbursement Certificate, executed by the Warrantors or the Warrantors’ Representative in respect of more than one Warrantor and a duly authorized representative of the Purchaser notifying a
Specified Amount in respect of the relevant Warrantor(s) and such Specified Amount is less than the amount of the Deposited Funds held in respect of the relevant Warrantor(s), then the Escrow Agent is hereby irrevocably instructed to release such
part of the Deposited Cash and (if so required by reason of the quantum of the Specified Amount) the Deposited Securities (in each case, held in respect of the relevant Warrantor(s)) as is equal to such Specified Amount to the Purchaser, together
with such proportion of the Additional Escrow Cash and Additional Escrow Property as proportionately relates to such principal Specified Amount. All such releases shall be of Deposited Funds in accordance with Clause 3.10. The remainder of the
Deposited Funds shall be re-lodged or continue to be held in escrow by the Escrow Agent pursuant to the provisions of this Part 3 until either another Escrow Claim is duly made or the Release Date, whichever shall occur earlier, and the terms of
this Part 3 shall apply thereto. 
  
 3.04 If any bona fide Escrow Claim made by
the Purchaser on or before the Release Date has not been agreed in writing or finally determined as at the Release Date, then (subject to Clause 3.07) the Deposited Funds held in respect of the relevant Warrantor(s) shall not be released by the
Escrow Agent until the relevant Warrantors’ liability (if any) for the Escrow Claim and the Specified Amount of such Escrow Claim has been agreed by the Purchaser and the relevant Warrantor(s) in writing or finally determined, whereupon:

  
 (a) if the Specified Amount so agreed is equal to or greater than the
Deposited Funds held in respect of the relevant Warrantor(s), then the Escrow Agent is hereby irrevocably instructed to release the Deposited Funds held in respect of the relevant Warrantor(s) to the Purchaser; or 
  
 (b) if the Specified Amount so agreed or determined is less than the Deposited Funds held in
respect of the relevant Warrantor(s), then the Escrow Agent is hereby irrevocably instructed to release to the Purchaser such amount as shall be equal to the Specified Amount and to release the balance of the Deposited Funds held in respect of the
relevant Warrantor(s) to the relevant Warrantor(s). 
  
 3.05 For the purposes of
this Part 3, an Escrow Claim shall be deemed to be finally determined: 
  
 (a) in
the case of a Non-Tax Claim, if and when judgment has been given by a court of competent jurisdiction from which there is no right of appeal or the time limit for appeal has expired without the relevant Warrantor or Purchaser appealing; or

  

 - 5 - 

 (b) in the case of a Tax Claim, if and when determined by the General Commissioners of Inland Revenue, the Special
Commissioners of Inland Revenue or Value Added Tax Tribunal or any equivalent forum in the United Kingdom or any other relevant jurisdiction unless no appeal to any such body from the decision of the Taxation Authority or court of first instance has
been made by the relevant Warrantor or the Purchaser or the Group Company on their instructions (as the case may be) within the period in which any appeal may properly be brought, when the determination of the Taxation Authority or court of first
instance is deemed to be the final determination of the claim. 
  
 3.06 Upon any
such Escrow Claim as is referred to in Clause 3.04 being agreed or finally determined in accordance with Clause 3.05, the relevant Warrantor or Warrantors’ Representative (in respect of more than one Warrantor) and a duly authorized
representative of the Purchaser shall immediately deliver to the Escrow Agent a Disbursement Certificate, duly executed by them and on receipt of the same the provisions of clause 3.03 shall apply thereto. 
  
 3.07 If at any time after a payment from escrow has been deferred beyond the Release Date
pursuant to Clause 3.04, the Purchaser decides to withdraw in whole or in part the Escrow Claim which gave rise to such deferral, payment of the relevant amount no longer claimed shall be made as soon as practicable to the relevant Warrantor and the
Escrow Agent is hereby irrevocably instructed and authorised accordingly. 
  
 3.08
The Escrow Agent shall also release the Deposited Funds, or relevant portions thereof, to the appropriate party: 
  
 (a) upon receipt by the Escrow Agent of a certified copy or original of an order, direction, decree or judgment of any Court of competent jurisdiction requiring or
authorizing the Escrow Agent so to do (whether pursuant to a Claim or otherwise); or 
  
 (b) if the Escrow Agent is otherwise required by any applicable law or regulation to do so. 
  
 3.09 Any fraction of a Deposited Security shall be ignored in calculating those Deposited Securities that shall remain in or be released from escrow. For the purposes of this Agreement the Deposited Securities shall
have the same value as attributed to the Consideration Shares for the purposes of the Acquisition Agreement. In assessing the value in United States Dollars an Escrow Claim, the Escrow Agent shall translate Pounds Sterling into United States Dollars
at the Exchange Rate. 
  
 3.10 The rights granted to the Purchaser in this Part 3
are, as in relation to the Vendors and the Warrantors, in addition to and not in substitution for any other rights, remedies and powers available to the Purchaser with respect to any Escrow Claim which it may have against the 
  

 - 6 - 

 Vendors and/or Warrantors provided, however, that Purchaser shall first make an Escrow Claim and exhaust first the
Deposited Cash and Additional Escrow Cash and secondly the Deposited Securities and Additional Escrow Property prior to seeking remedies directly against any of the Warrantors. 
  
 3.11 The Escrow Agent shall bear no responsibility for any release of Deposited Securities occurring after an Escrow Claim arises if it has
not received notice of a bona fide Escrow Claim (a “Notice”) prior to the Release Date. The Escrow Agent shall further not be required to undertake any enquiries of any nature or use its own discretion to determine if any Escrow
Claim is bona fide or has been made in good faith and for no improper purpose, but shall be permitted to rely solely on a Notice from the Purchaser (or absence thereof) as described herein. No Notice shall be effective unless actually received by
the Escrow Agent. 
  
 3.12 Upon the release to the Purchaser of any Deposited
Funds, the Warrantor who deposited such Deposited Funds shall cease to have any ownership interest of any nature in them and the Warrantor shall do such acts and things and execute such documents as the Purchaser may require in order to extinguish
such Warrantor’s beneficial or other ownership interest in them (including, without limitation, executing such instruments of transfer as the Purchaser may require to register such securities in the name of any person the Purchaser may wish).
If any Warrantor shall fail to do or execute any such requisite things, each Warrantor hereby irrevocably appoints the Purchaser as its due and lawful attorney and agent with all powers available at law to do so on his behalf (including but without
limit the ability to give a receipt and good discharge to any third party, who shall not be obliged to enquire any further into title to the relevant Deposited Funds). Without prejudice to the foregoing, the Purchaser may, subject to applicable law,
buy back, cancel, redeem or surrender any such securities for nil or nominal consideration or subject to such terms as the Purchaser may require or hold them in treasury. 
  
 PART 4 - GENERAL 
  
 4.01 Fees and Expenses. The fees and expenses of the Escrow Agent incurred in the course of performing its responsibilities hereunder will be paid by the Purchaser
upon receipt of a written invoice by the Escrow Agent. Each of the Purchaser and the Warrantors shall bear their own costs and expenses incurred in connection with any dispute over the distribution of the Deposited Funds or the validity of an Escrow
Claim. 
  
 4.02 Rights, Duties and Liabilities of Escrow Agent. The
acceptance by the Escrow Agent of its duties and obligations under this Agreement is subject to the following terms and conditions, which the parties to this Agreement hereby agree are reasonable in the circumstances and will govern the rights,
duties and liabilities of the Escrow Agent: 
  

	(a)	the Escrow Agent will not be responsible or liable in any manner whatever for the correctness, sufficiency, genuineness, or validity of any security deposited with it or
enforceability of any rights in relation thereto; 

  

 - 7 - 

	(b)	the Escrow Agent will not be responsible or liable in any manner whatsoever for acting upon any Notice or other written notice, request, waiver, consent, receipt, statutory
declaration, or other paper or document furnished to it and signed by the Purchaser and/or any Warrantor and/or the Warrantors’ Representative pursuant to the Acquisition Agreement, not only as to the due execution of such document and the
validity and effectiveness of its provisions, but also as to the truth and acceptability of any information contained in it, which the Escrow Agent in good faith believes to be valid, and the Escrow Agent shall have no obligation to make any
determination as to the validity of any such document; 

  

	(c)	except for acts of proven (that is, admitted or adjudicated by a court or tribunal of competent jurisdiction) negligence or willful misconduct, the Escrow Agent shall not be liable
for any act done or step taken or omitted by it, or for any mistake of fact or law; and 

  

	(d)	the Escrow Agent shall have no duties except those which are expressly set forth herein, and it shall not be bound by any notice of a claim or demand with respect thereto, or any
waiver, modification, amendment, termination or rescission of this Agreement unless received by it in writing and signed by the Purchaser and the Warrantors, and it shall have given its prior written consent thereto. 

  
 4.03 Deposit. The Escrow Agent shall have the right at any time to deposit the
Deposited Securities with a custodian authorised under the Financial Services and Markets Act 2000 or with any other person approved by the Court, all of which shall be at the expense of the Purchaser. The Escrow Agent shall give written notice of
any such deposit to the other parties as soon as reasonably practicable after such deposit is made. 
  
 4.04 No Agency or Conflict. Each of the Warrantors and the Purchaser acknowledge that the Escrow Agent is acting solely as a stakeholder at their request and for their convenience and the Escrow Agent shall not
be and shall not be deemed to be the agent of the Warrantors or the Purchaser or the Warrantors’ Representative in respect of the escrow herein referred to. The Escrow Agent shall not be liable to the Warrantors or the Purchaser or the
Warrantors’ Representative for any error in judgment or for any act or omission on its part in respect of the escrow arrangements herein referred to unless such error in judgment, act or omission involves proven negligence or willful
misconduct. Without prejudice to the generality of the foregoing, the Warrantors acknowledge that the Escrow Agent is a legal adviser to the Purchaser and each of them hereby irrevocably consents to the Escrow Agent acting for the Purchaser in
relation to any Claim or other claim under the Acquisition Agreement and otherwise in connection with any dispute arising out of the Acquisition Agreement or any matters arising in connection with the same (including, without limitation, against the
Warrantors) should the Purchaser so require. 
  
 4.05 Indemnity. Each of
the Warrantors jointly and severally and separately the Purchaser agrees to indemnify and hold the Escrow Agent, as well as its respective partners, officers, 
  

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 employees and agents harmless from and against all costs, claims, demands, actions, suits, proceedings, liabilities,
losses (including (but without limitation) those from third parties) and expenses of whatsoever nature, including (but without limitation) solicitor’s fees and disbursements incurred in connection with or arising from the performance of the
Escrow Agent’s duties or rights hereunder; provided that this indemnity shall not extend to actions or omissions taken or suffered by the Escrow Agent involving proven negligence or willful misconduct on the part of the Escrow Agent. This
indemnity shall survive the termination of this Agreement or the resignation or removal of the Escrow Agent. 
  
 4.06 Fees. The Escrow Agent’s fees shall be paid by the Purchaser within 30 days of receipt of an invoice therefor in respect of all the Escrow Agent’s proper accounts for time, disbursements and
applicable goods and taxes relating to the performance by the Escrow Agent of its duties or rights hereunder or other work incidental to or contemplated pursuant to the terms of this Agreement. 
  
 4.07 Limitation on Duties. It is understood and agreed that the Escrow Agent’s
only duties and obligations in respect of the Deposited Funds are expressly set out in this Agreement. The Escrow Agent shall have the right to consult with separate legal advisors of its own choosing (if it reasonably deems such consultation
advisable) and the costs of doing so shall be paid in accordance with clauses 4.01 and 4.06 above and shall not be liable for any action taken, suffered or omitted to be taken by it if the Escrow Agent acts in accordance with the advice of such
counsel. The Escrow Agent shall be protected if it acts upon any written or oral communication, Notice, other notice, certificate or other instrument or document believed by the Escrow Agent to be genuine and to be properly given or executed without
the necessity of verifying the truth or accuracy of the same or the authority of the person giving or executing the same. 
  
 4.08 Resignation of the Escrow Agent. The Escrow Agent may, at any time, resign its obligations under this Agreement and be discharged from all further duties and
liabilities hereunder by giving the other parties hereto at least 14 days’ notice in writing of its intention to resign or such shorter notice as the Warrantors’ Representative and the Purchaser may accept as sufficient. The Warrantors and
the Purchaser agree that they shall forthwith upon receipt of such notice appoint a new stakeholder to act in the place and instead of the Escrow Agent and, if they fail to agree on such appointment, the Warrantors’ Representative, the
Purchaser or the Escrow Agent may apply to the Court for the appointment of a new stakeholder. Upon any new appointment, the new stakeholder will be vested with the same powers, rights, duties and obligations as if it had been originally named
herein as Escrow Agent and such new stakeholder shall enter into an agreement with the Warrantors and the Purchaser agreeing to be bound by all of the provisions of this Agreement. 
  
 4.09 Discharge from Duties. Upon receiving or disposing of the Deposited Securities in accordance with the provisions of this
Agreement, the Escrow Agent shall be relieved and discharged from all claims and liabilities relating to the Deposited Securities (without prejudice to any subsisting claims for proven negligence or willful misconduct) and the Escrow Agent shall not
be subject to any claims made by or on behalf of any party hereto. 
  

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 4.10 Termination of Agreement. This Agreement and the obligations of the Escrow Agent will terminate upon the
delivery of any remaining Deposited Funds by the Escrow Agent either to the Warrantors’ Representative on behalf of the Warrantors or to the Purchaser in accordance with the provisions of this Agreement.  
  
 4.11 Amendment or Cancellation. This Agreement may only be amended or modified by an
agreement in writing signed by all of the parties hereto. 
  
 4.12 Notices.
All notices requests demands and other communications under this Agreement will be in writing and will be deemed to have been duly given if delivered by hand or sent by facsimile transmission to the following address or facsimile numbers, as the
case may be: 
  

					
	 To the Warrantors/Warrantors’ Representative:
	  	 c/o Maclay Murray & Spens

			
	 	  	 Attention:
	  	 “Urgent

	 	  	 	  	 For the attention of Jonathan Brooks”

			
	 	  	 Fax:
	  	 020 7600 00992

			
	 To The Purchaser:
	  	 	  	 Activcard Corp.

	 	  	 Attention:
	  	 “Urgent

	 	  	 	  	 For the attention of R. Bhargava, CFO”

			
	 	  	 Fax:
	  	 001 510 574 0139

			
	 To the Escrow Agent:
	  	 Osborne Clarke
	  	 
	 	  	 One London Wall

	 	  	 London EC2Y 5EB

		
	 	  	 Attention: Head of Corporate Group

		
	 	  	 Fax: 020 7105 7001

  
 or to such other address or facsimile
number as may be given in writing by the parties. Any such notice will be deemed to have been received, if delivered by hand, on the date of delivery and, if sent by facsimile transmission, on the day following transmission save that any such notice
to the Escrow Agent will not be deemed to have been received until actually received. 
  
 4.13 Binding Agreement. This Agreement will bind and benefit each of the parties and their respective heirs, legal personal representatives, successors and assigns. 
  

 - 10 - 

 4.14 Further Assurances. The parties will execute such further assurances and other documents and instruments and
do such further and other things as may be necessary to implement and carry out the intent of this Agreement, including any adjustment to the number of Deposited Securities by reason of any subdivision, consolidation, reclassification or other
change made to the Consideration Shares. 
  
 4.15 Entire Agreement. The
provisions of this Agreement and the Acquisition Agreement constitute the entire agreement among the parties with respect to the subject matter of this Agreement and supersede all previous expectations, understandings, communications, warranties,
representations and agreements, whether verbal or written, among the parties with respect to the subject matter of this Agreement. 
  
 4.16 Severability. If any one or more of the provisions contained in this Agreement is held to be invalid, illegal or unenforceable in any respect in any
jurisdiction, the validity, legality and enforceability of such provision or provisions will not in any way be affected or impaired by such invalidity, illegality, or unenforceability in any other jurisdiction, and the validity, legality and
enforceability of the remaining provisions contained in this Agreement will not in any way be affected or impaired by such holding. 
  
 4.17 Headings. The headings of the Parts and clauses of this Agreement are inserted for convenience only and will not affect the construction of this Agreement.

  
 4.18 References to clauses. Unless otherwise stated, a reference in
this Agreement to a numbered or lettered clause refers to the clause bearing that number or letter in this Agreement. 
  

	4.19	Time of the Essence. Time will be of the essence of this Agreement. 

  
 4.20 Counterparts. This Agreement may be executed in any number of Counterparts signed by one or more of the parties. 
  
 4.21 Contracts (Rights of Third Parties) Act 1999. Unless expressly provided in this
Agreement, no term of this Agreement is enforceable pursuant to the Contracts (Rights of Third Parties) Act 1999 by any person who is not a party to it. 
  
 4.22 Separation of Assets. The Escrow Agent undertakes to the Warrantors and the Purchaser that the Deposited Funds shall be segregated from the other assets of
the Escrow Agent. 
  
 4.23 Governing Law. This Agreement will be governed
by and interpreted in accordance with the laws of England and Wales and all parties hereby irrevocably submit to the exclusive jurisdiction of the Courts of England and Wales. 
  

 - 11 - 

 IN WITNESS of which each of the parties has duly executed and delivered this Agreement as a Deed. 
  

							
	
	 	 	 	 
	 Executed as a Deed by            
	 	 	 	 
	on behalf of Activcard Corp.	    	 	 	 	 	 
	in the presence of:	    	 	 	 	 	 
				
	 Duly executed as a Deed by
	    	)	 	 	 	 
	 Steven Keohane
	    	)	 	 	 	 
	 in the presence of:
	    	)	 	 	 	_______________________________________
				
	 Duly executed as a Deed by
	    	)	 	 	 	 
	 Paul Ryder
	    	)	 	 	 	 
	 in the presence of:
	    	)	 	 	 	_______________________________________
				
	 Duly executed as a Deed by
	    	)	 	 	 	 
	 Julian Lovelock
	    	)	 	 	 	 
	 in the presence of:
	    	)	 	 	 	_______________________________________
				
	 Duly executed as a Deed by
	    	)	 	 	 	 
	 William Tompkins
	    	)	 	 	 	 
	 in the presence of:
	    	)	 	 	 	_______________________________________
				
	 Duly executed as a Deed by
	    	)	 	 	 	 
	 Colin Fisher
	    	)	 	 	 	 
	 in the presence of:
	    	)	 	 	 	_______________________________________

  

	
	

	Partner, for and on behalf of Osborne Clarke

  

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 [NOTE: Pursuant to Item 601(b)(2) of Regulation S-K, the registrant has omitted Exhibit A and Schedule A to this
Agreement, which are referred to elsewhere in this Agreement. Upon the request of the Securities and Exchange Commission (the “Commission”), the registrant will supplementally furnish the Commission with a copy of either such schedule or
exhibit.] 
  

 - 13 -

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