Document:

Exhibit 10.2

 

CONSULTING
AGREEMENT

 

Effective December 6,
2008, Arthur Campbell, One Marigold Lane, San Carlos, CA 94070 (“Consultant”)
and Theravance, Inc., 901 Gateway Boulevard, South San Francisco CA 94080
(“Theravance” or the “Company”) agree as follows:

 

1.             Services and
Payment. Consultant agrees to consult with and advise Theravance from time
to time, at Theravance’s request (“Services”) for three and one-half (3.5) days
per week on site at Theravance or traveling as necessary to perform the
Services.  Services to be provided
hereunder are set forth in Exhibit A attached hereto.  As full payment for the Services, Consultant
will (i) receive a consulting fee of $21,422 per month payable monthly
within thirty (30) days of Theravance’s receipt of reasonably detailed invoices
therefor, and (ii) continue to vest in any currently outstanding (a) options
to purchase the Company’s Common Stock and (b) time-based restricted stock
unit award (RSU) during the term of this Agreement in accordance with the terms
of such options and the RSU. Consultant shall also be entitled to reimbursement
for expenses for which Consultant has received prior approval from Theravance
within thirty (30) days of Consultant’s submission of receipts thereof.

 

2.             Ownership of
Inventions.  Theravance shall own all
right, title and interest (including patent rights, copyrights, trade secret
rights, trademark rights and all other rights of any sort throughout the world)
relating to any and all inventions (whether or not patentable), including
without limitation, discoveries, compositions of matter, pharmaceutical
formulations, methods of use, methods of making, techniques, processes,
formulas, improvements, works of authorship, designations, designs, know-how,
ideas and information made or conceived or reduced to practice, in whole or in
part, by Consultant (solely or jointly with others) during the term of this
Agreement that arise out of or relate to the Services or any Proprietary
Information (as defined below) (collectively, “Inventions”).  Consultant will promptly disclose, provide
and assign all Inventions to Theravance. 
Consultant shall further assist Theravance, at Theravance’s expense, to
further evidence, record and perfect such assignments, and to perfect, obtain,
maintain, enforce, and defend any rights assigned throughout the world. Such
assistance may include, but is not limited to, execution of documents and
assistance or cooperation in legal proceedings. 
Consultant hereby irrevocably designates and appoints Theravance as his agent
and attorney-in-fact to act for and on Consultant’s behalf to execute and file
any document and to do all other lawfully permitted acts to further the
foregoing with the same legal force and effect as if executed by
Consultant.  When requested by Theravance,
Consultant will make available to Theravance all notes, data and other
information relating to any Invention.

 

3.             Proprietary
Information.  Consultant agrees that
all Inventions and other business, technical and financial information
concerning Theravance (including, without limitation, the identity of and
information relating to Theravance’s employees, vendors and service providers) that
Consultant develops, learns or obtains during the term of this Agreement or
while he is providing Services constitute “Proprietary Information.”  Consultant will hold in confidence and not
disclose or make available to third parties or make use of any Proprietary

 

 

Information except with
the prior written consent of Theravance or to the extent necessary in performing
Services for Theravance.  However,
Consultant shall not be obligated under this paragraph with respect to
information Consultant can document (i) is or becomes readily publicly
available without restriction through no fault of Consultant, or (ii) that
Consultant knew without restriction prior to its disclosure by Theravance.  Upon termination of this Agreement or as
otherwise requested by Theravance, Consultant will promptly return to
Theravance all documents, materials and copies containing or embodying
Proprietary Information, except that Consultant may keep a personal copy of (i) compensation
records relating to the Services and (ii) this Agreement.

 

4.             Solicitation.  As additional protection for Proprietary
Information, Consultant agrees that during the term of this Agreement and for
one year thereafter, Consultant will not encourage or solicit any employee of
or consultant to Theravance to leave Theravance for any reason.

 

5.             Term and
Termination.  This Agreement shall
become effective on December 6, 2008 and remain in force until the earlier
of December 31, 2009 or when  terminated by either party.
Consultant may terminate this Agreement at any time, for any reason, by giving
the Company 10 days’ written notice.  The
Company may terminate this Agreement prior to December 31, 2009 only as
provided in Section 8.2 hereof or for cause, which for purposes hereof
shall mean:  (i) the unauthorized
use or disclosure of the confidential information or trade secrets of the
Company; (ii) conviction of a felony under the laws of the United States
or any state thereof; (iii) negligence or misconduct; (iv) failure to
perform lawful assigned services for ten days after receiving written
notification from the Company; (v) providing services to another company
or entity that has a product or program that is competitive with the Company’s
products or programs without the prior written consent of the Company; (vi) Consultant’s
revocation of the separation agreement dated December 5, 2008 between
Consultant and Theravance; or (vii) Consultant’s acceptance of new
employment. All provisions of this Agreement and any remedies for breach of
this Agreement shall survive any termination or expiration.

 

6.             Relationship of
the Parties.  Notwithstanding any
provision hereof, for all purposes of this Agreement each party shall be and
act as an independent contractor and not as a partner, joint venturer, or agent
of the other and shall not bind nor attempt to bind the other to any
contract.  Consultant is an independent
contractor and is solely responsible for all taxes, withholdings, and other
statutory or contractual obligations of any sort, including, but not limited
to, Workers’ Compensation Insurance. Consultant recognizes and agrees that
Consultant has no expectation of privacy with respect to Theravance’s
telecommunications, networking or information processing systems (including,
without limitation, computer files, email messages and attachments, and voice
messages) and that Consultant’s activity, and any files or messages, on or using
any of those systems may be monitored at any time without notice.

 

7.             Assignment.  This Agreement and the Services performed
hereunder are personal to Consultant and Consultant shall not have the right or
ability to assign, transfer, or subcontract any obligations under this
Agreement without the written consent of Theravance.  

 

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Any attempt to do so
shall be void.  Theravance shall be free
to assign or transfer this Agreement to a third party.

 

8.             Representations.

 

8.1            Consultant
represents and warrants that he has never been: (1) debarred, excluded or convicted of a crime
for which a person can be debarred under 21 U.S.C. § 335a; (2) excluded
by the OIG or other government entity as listed on http://exclusions.oig.hhs.gov
or http://epls.arnet.gov; or (3) threatened to be debarred, excluded or
indicted for a crime or otherwise engaged in conduct for which a person can be
debarred, excluded or indicted.  Consultant
agrees to notify Theravance immediately in the event of any such debarment,
exclusion, conviction, threat or indictment occurring during the term of this
Agreement, or the three (3) year period following the termination or
expiration of this Agreement.

 

8.2           If at any time during the term of
this Agreement, Consultant becomes the subject of any proceedings for
disqualification, debarment, delisting, exclusion, or denial or revocation of
licensure, as described above, Theravance shall have the right to terminate
this Agreement effective upon the date of such notice by Consultant.

 

8.3           Consultant represents and warrants
that (i) his performance hereunder will not breach any agreement or
obligation to keep in confidence proprietary information acquired by Consultant
in confidence or trust prior to or during Consultant’s engagement with
Theravance, and (ii) all work under this Agreement will be Consultant’s
original work and none of the Services or Inventions or any development, use,
production, distribution or exploitation thereof will infringe, misappropriate
or violate any intellectual property or other right of any person or
entity.  Consultant represents and
warrants that he has not entered into, and agrees that he will not enter into,
any agreement whether written or oral in conflict with this Agreement or with his
obligations as a consultant to Theravance. In this regard, during the term of
this Agreement, Consultant agrees to (i) notify the Company in advance of
accepting any employment or additional consulting assignments, and (ii) refrain
from working on any product or program that is competitive with a Company
product or program without the prior written consent of the Company.

 

9.             Company Policies.  Consultant represents that he has read the
Theravance Insider Trading Policy, the Theravance Travel Policy and the
Theravance Code of Business Conduct located at
http://ir.theravance.com/conduct.cfm, and agrees to abide by each such policy
during the term of this Agreement.

 

10.           Remedies.  Any breach of Section 2, 3, 4, 8 or 9
will cause irreparable harm to Theravance for which damages would not be an
adequate remedy, and, therefore, Theravance will be entitled to injunctive
relief with respect thereto in addition to any other remedies.  The failure of either party to enforce its
rights under this Agreement at any time for any period shall not be construed
as a waiver of such rights.

 

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11.           Entire Agreement.  This Agreement supersedes all prior
agreements between the parties and constitutes the entire agreement between the
parties as to the subject matter hereof, except that if the Consultant has
signed Theravance’s Nondisclosure Agreement, it shall remain in full force and
effect.

 

12.           Notices.  All notices, requests and other
communications called for by this Agreement shall be deemed to have been given
if made in writing and mailed, postage prepaid, to the address of each party
set forth above, or to such other addresses as either party shall specify to
the other.

 

13.           Amendments.  No changes or modifications or waivers to
this Agreement will be effective unless in writing and signed by both parties.

 

14.           Severability.  In the event that any provision of this
Agreement shall be determined to be illegal or unenforceable, that provision
will be limited or eliminated to the minimum extent necessary so that this
Agreement shall otherwise remain in full force and effect and enforceable.

 

15.           Arbitration.  Subject to the exceptions set forth below,
Consultant understands and agrees that any disagreement regarding this
Agreement will be determined by submission to arbitration as provided by Section 1280
et  seq. of the California Code of Civil Procedure, and not by a
lawsuit or resort to court process proceedings. 
The only claims or disputes not covered by this paragraph are claims or
disputes related to issues affecting the validity, infringement or
enforceability of any trade secret or patent rights held or sought by
Theravance or which Theravance could otherwise seek; in which case such claims
or disputes shall not be subject to arbitration and will be resolved pursuant
to applicable law.

 

16.           Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of California without regard
to conflicts of law provisions thereof. 
In any action or proceeding to enforce rights under this Agreement, the
prevailing party shall be entitled to recover costs and attorneys fees.

 

 

	
  Consultant

  	
   

  	
  Theravance, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Arthur L. Campbell

  	
   

  	
  By:

  	
  /s/ Rick E
  Winningham

  
	
  (signature)

  	
   

  	
  (signature)

  
	
   

  	
   

  	
  Name: Rick E
  Winningham

  
	
   

  	
   

  	
  Title:   Chief Executive Officer

  

 

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EXHIBIT A

 

Description of Services

 

Consultant
may be asked to perform some or all of the services described below:

 

1.               Support the Technology Development
Laboratory, in particular the Company’s efforts to utilize the facility for
third party process development and manufacturing activities.

 

2.               As requested, provide insight and direction
on process chemistry, formulation and manufacturing issues.

 

3.               As requested, provide insight into Quality
Assurance activities.

 

4.               As requested, and with the mutual agreement
of Consultant and the Company, provide insight and direction into other aspects
of the Company’s business

 

5.               Meetings related to any of the above.

 

Invoices
shall include a description of the Services performed and the number of hours
spent, specify the product candidate to which each segment of work was
dedicated, specify the Purchase Order number related to the Services (to be
supplied by Theravance following execution of this agreement), and be sent to:

 

 

Theravance, Inc.

901
Gateway Boulevard

South
San Francisco, CA 94080

Attention:  Accounts Payable (Tom Catalano)

 

5Exhibit 10.11

 

ACTIVIDENTITY
CORPORATION

EMPLOYMENT
AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”)
is made and entered into as of December 7, 2008 (the “Effective
Date”), by and between ActivIdentity Corporation, a Delaware
corporation (the “Company”), and Michael
Sotnick (“you”).

 

1.                                       Position.  You will serve as the Executive Vice
President, Worldwide Sales and Field Operations of the Company.  You will have the duties and responsibilities
customarily associated with such position. 
Your office will be located at the Company’s headquarters at 6623
Dumbarton Circle, Fremont, California. 
You will report to the Company’s Chief Executive Officer.  You will be employed on an at-will basis,
which means that you may resign and the Company may terminate your employment
or change your job title and duties at any time for any reason or for no
reason.

 

You agree to the best of
your ability and experience that you will at all times loyally and
conscientiously perform all of the duties and obligations required of you
pursuant to the terms of this Agreement. 
During the term of your employment, you further agree that you will
devote all of your business time and attention to the business of the Company.  You will not render commercial or
professional services of any nature to any person or organization, whether or
not for compensation, without the prior written consent of the Company.  You will not directly or indirectly engage or
participate in any business that is competitive in any manner with the business
of the Company.  Nothing in this
Agreement will prevent you from accepting speaking or presentation engagements
in exchange for honoraria or from serving on boards of charitable
organizations, or from owning no more than one percent (1%) of the outstanding
equity securities of a corporation whose stock is listed on a national stock
exchange.

 

2.                                       Compensation.

 

a.                                       Salary.  You will be paid a monthly salary of
$20,833.33, which is equivalent to $250,000 on an annualized basis.  Your salary will be payable twice each month
pursuant to the Company’s regular payroll practices (or in the same manner as
other employees of the Company), and shall be subject to the usual, required
withholding of income and employment taxes. 
Your annual salary of $250,000, together with any increases thereto,
shall be referred to as your “Base Salary.”  Base Salary will be subject to annual review
by the Compensation Committee (the “Compensation Committee”)
of the Company’s Board of Directors (the “Board of Directors”).

 

b.                                      Bonus.  You will be eligible for a target bonus (“Target Bonus”) equivalent to a
certain percentage of the Base Salary, which unless has been otherwise agreed,
has been set at the rate of one hundred percent (100%) of the Base Salary, with
the potential for payment of up to two (2X) times the amount of the Target
Bonus attributed to factors related to the Company’s financial plan (and not
amounts related to Management by Objective (MBO) factors) in a given year for
extraordinary performance (the actual bonus amount for fiscal 2009 is expected
to be prorated at eighty-three and three tenths percent (83.3%) for a partial
year).  Your Target Bonus percentage, the
performance goals and objectives that your Target Bonus will be based upon and
ultimate determination of the Target Bonus payment you receive will be
determined by the Compensation Committee. 
The Target Bonus, or any portion thereof, will be paid as soon as
practicable after the 

 

 

Compensation Committee determines that the Target
Bonus has been earned, but in no event shall the Target Bonus be paid after the
later of (i) March 15 following the calendar year in which such
Target Bonus is earned or (ii) the 15th day of the 3rd month following the
close of the Company’s fiscal year in which such Target Bonus is earned.

 

c.                                       Equity
Awards.

 

(i)                           On your
first day of employment with the Company, subject to approval by the Board of
Directors or a committee thereof, you will be awarded a stock option to
purchase up to 600,000 shares of the Company’s common stock (the “First Option”).  The First Option will be exercisable at a
price per share equal to the closing price of the Company’s common stock on the
grant date, as reported on the Nasdaq Global Market, and the First Option will
be granted outside of the Company’s stockholder-approved equity compensation
plans as an “inducement award,” but will be subject to the terms and conditions
of the Company’s 2004 Equity Incentive Plan as if granted thereunder.  Subject to your continuing service with the
Company, the First Option will vest with respect to one-quarter of the
underlying shares on the first anniversary of the grant date and then with
respect to the remaining shares monthly thereafter equally over the next three
years so that he is fully vested on the fourth anniversary of the grant
date.  The First Option will have a
seven-year term and will be treated as non-qualified under the Internal Revenue
Code.

 

(ii)                        You shall
be eligible to receive a stock option to purchase up to 350,000 shares of the
Company’s common stock (the “Second Option”)
upon the Company exceeding its revenue goal for the nine month period running
from January 1, 2009, through September 30, 2009, as established in
the Company’s Fiscal Year 2009 Business Plan (the “Business
Plan”).  To the extent
there is any uncertainty as to whether the Company’s revenue goal is exceeded
from the amounts established in the Business Plan, the Compensation Committee,
in its reasonable discretion and good faith, shall make the final
determination.  The Second Option shall be
granted by the Board of Directors or a committee thereof as soon as
administratively feasible after the satisfaction of the revenue goal, subject
to your continued employment on such grant date.  The Second Option will be exercisable at a
price per share equal to the closing price of the Company’s common stock on the
grant date, as reported on the Nasdaq Global Market, and the Second Option will
be granted under the Company’s 2004 Equity Incentive Plan.  Subject to your continuing service with the
Company, the Second Option will vest with respect to one-quarter of the
underlying shares on the grant date and then with respect to the remaining
shares monthly thereafter equally over the next three years so that he is fully
vested on the third anniversary of the grant date.  The Second Option will have a seven-year term
and, to the extent possible, will be treated as an incentive stock option under
the Internal Revenue Code.

 

3.                                       Employee
Benefits.  You will be eligible to
participate in the employee benefits plan currently and hereafter maintained by
the Company of general applicability to other senior executives of the Company,
including the Company group health insurance, dental insurance and 401(k) plans.  The Company reserves the right to cancel or
change the employee benefit plans and programs it offers to its employees at
any time.  You will be given a copy of,
and must abide by, the Company’s employee handbook and employee benefit plan
documents which will describe more fully these and other benefits of your
employment, as well as the personal policies and procedures which apply to
employment with the Company.  In all
policies of officer liability insurance, you 

 

2

 

shall be named as an insured in such a manner as to
provide you the same rights and benefits as are accorded to the Company’s other
officers.

 

4.                                       Expense
Reimbursement.  You will be entitled
to reimbursement of all reasonable and properly documented expenses incurred by
you in the performance of your duties, in accordance with the Company’s
policies and procedures.

 

5.                                       Severance.  In the absence of a Change of Control, if
your employment with the Company is terminated by the Company without “Cause” (as defined below) or if you
resign your employment for “Good Reason”
(as defined below), then you shall be entitled to receive the following
severance benefits:

 

a.                                       Twelve
(12) months’ Base Salary, less applicable withholding taxes (the “Severance Payment”).

 

b.                                      The
same level of health (i.e. medical and dental) coverage and benefits as in
effect for you and your immediate family on the day immediately preceding the
day of termination of employment; provided however, that (i) you
constitute a qualified beneficiary, as defined in Section 4980B(g)(1) of
the Internal Revenue Code of 1986, as amended (the “Code”);
and (ii) you elect continuation coverage pursuant to the Consolidated
Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”),
within the time period prescribed pursuant to COBRA.  The Company shall continue to provide you
with such health coverage until the earlier of (i) the date you are no
longer eligible to receive continuation coverage pursuant to COBRA, or (ii) 12
months from termination date.

 

The Severance Payment
will be paid as a single lump sum upon termination.  The receipt of the Severance Payment pursuant
to this Agreement is subject to your signing and not revoking a separation and
release of claims agreement in a form reasonably and mutually acceptable to the
Company and Employee (the “Release”),
which must become effective no later than the 60th day following your
termination of employment (the “Release Deadline”),
and if not, you will forfeit any right to severance under this Agreement.  To become effective, the Release must be
executed by you and any revocation periods (as required by statute, regulation,
or otherwise) must have expired without you having revoked the Release.  In addition, the Severance Payment will not
be paid or provided until the Release actually becomes effective.  In the event your termination of employment
occurs at a time during the calendar year where the Release Deadline could
occur in the calendar year following the calendar year in which your
termination occurs, then the Severance Payments under this Agreement that would
be considered deferred compensation pursuant to Section 409A of the Code
(as described in Section 12(a)) will be paid on the first payroll date to
occur during the calendar year following the calendar year in which such
termination occurs, or such later time (i) as required by the payment
schedule applicable to each payment or benefit as set forth in Section 5, (ii) the
date the Release becomes effective or (iii) as required by Section 12(a).

 

6.                                       Change
of Control Termination.  If there is
a “Change of Control” (as defined
below) and within one year following the Change of Control, the Company or
successor corporation terminates your employment without “Cause”
(as defined below) or you resign your employment for “Good
Reason” (as defined below), then you shall be entitled to
receive the following severance benefits:

 

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a.                                       Twelve
(12) months’ Base Salary, less applicable withholding taxes (the “Change of Control Severance Payment”).

 

b.                                      The
same level of health (i.e. medical and dental) coverage and benefits as in
effect for you and your immediate family on the day immediately preceding the
day of termination of employment; provided however, that (i) you
constitute a qualified beneficiary, as defined in Section 4980B(g)(1) of
the Code; and (ii) you elect continuation coverage pursuant to COBRA,
within the time period prescribed pursuant to COBRA.  The Company shall continue to provide you
with such health coverage until the earlier of (i) the date you are no
longer eligible to receive continuation coverage pursuant to COBRA, or (ii) 12
months from termination date.

 

c.                                       Accelerated
vesting of the First Option and the Second Option, to the extent that it is
granted, such that they are fully vested and immediately exercisable upon
termination.

 

The Change of Control
Severance Payment will be paid as a single lump sum upon termination.    The receipt of the Change of Control
Severance Payment pursuant to this Agreement is subject to your signing and not
revoking the Release, in the manner prescribed by Section 5b above, which
must become effective no later than the Release Deadline, and if not, you will
forfeit any right to severance under this Agreement.  To become effective, the Release must be executed
by you and any revocation periods (as required by statute, regulation, or
otherwise) must have expired without you having revoked the Release.  In addition, the Severance Payment will not
be paid or provided until the Release actually becomes effective.  In the event your termination of employment
occurs at a time during the calendar year where the Release Deadline could
occur in the calendar year following the calendar year in which your
termination occurs, then the Change of Control Severance Payment under this
Agreement that would be considered deferred compensation pursuant to Section 409A
of the Code (as described in Section 12(a)) will be paid on the first
payroll date to occur during the calendar year following the calendar year in
which such termination occurs, or such later time (i) as required by the
payment schedule applicable to each payment or benefit as set forth in Section 6,
(ii) the date the Release becomes effective or (iii) as required by Section 12(a).

 

7.                                       Confidential
Information and Invention Assignment Agreement.  This Agreement  and commencement of employment with the
Company is contingent upon the execution, and delivery to an officer of the
Company, of the Company’s Proprietary Information and Inventions Agreement (the
“Confidentiality Agreement”) a copy
of which has been provided previously 
for your review and execution.

 

8.                                       Certain
Definitions.

 

a.                                       “Good Reason.”  As used
in this Agreement, a resignation for “Good Reason”
will occur if you comply with the Good Reason Process and resign your
employment as a result of (a) a material reduction without Cause in your
title or primary duties and responsibilities as Executive Vice President,
Worldwide Sales and Field Operations, or (b) a reduction without Cause by
more than fifteen percent (15%) in your starting Base Salary, or (c) a
relocation to an office or location that is more than 50 miles from the office
you were originally hired to work for the Company, or (d) the Company
materially breaches this Agreement or any other material written agreement
between you and the Company or the Company materially breaches or violates any
lawful material employment policy of the Company applicable to you.  “Good Reason Process”
shall mean 

 

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that (1) you reasonably determine in good faith
that a “Good Reason” condition has occurred; (2) you notify the Company in
writing of the occurrence of the Good Reason condition within 60 days of the
occurrence of such condition; (3) you cooperate in good faith with the
Company’s efforts, for a period not less than 30 days following such notice
(the “Cure Period”), to remedy the
condition; (4) notwithstanding such efforts, the Good Reason condition
continues to exist; and (5) you terminate your employment within 60 days
after the end of the Cure Period.  If the
Company cures the Good Reason condition during the Cure Period, Good Reason
shall be deemed not to have occurred.

 

b.                                      “Cause.”  As used in
this Agreement, “Cause” shall mean any of the
following:

 

(i)                           Failure to Perform Duties. 
You continue to fail to perform your duties for the Company after a
written demand for performance has been delivered to you by the Company that
identifies with reasonable specificity how you have failed to perform;

 

(ii)                        Adverse Conduct.  You
are convicted of, plea “guilty” or “no contest” to a felony offense or any
unlawful act which would be materially detrimental to the reputation of the
Company, or commit a material act of dishonesty, fraud, embezzlement,
misappropriation or financial dishonesty against the Company; or

 

(iii)                     Breach Agreement or Policy. 
You materially breach this Agreement, the Confidentiality Agreement, or
any other material written agreement between you and the Company or you
materially breach or violate any lawful material employment policy of the
Company, including those prohibiting harassment of another employee.

 

c.                                       “Change of Control.” 
As used in this Agreement, “Change of Control”
shall mean (i) the sale of all or substantially all of the assets of the
Company to a non-affiliate, (ii) any merger or consolidation of the
Company with or into another corporation or other transaction in each case in
which the holders of more than 50% of the shares of capital stock of the
Company outstanding immediately prior to such transaction do not continue to
hold (either by the voting securities remaining outstanding or by their being
converted into voting securities of the surviving entity) 50% or more of the
total voting power represented by the voting securities of the surviving entity
outstanding immediately after such transaction or (iii) as a result of, or
in connection with, a contested election of directors of Board of Directors of
the Company, the persons who were directors of the Company immediately prior to
the election cease to constitute a majority of the Board of Directors.  For further clarification, a reorganization
or similar transaction among the Company and/or its affiliates shall not be
deemed to constitute a Change of Control.

 

9.                                       Applicable
Law; Severability.  This Agreement
shall be governed by the laws of the State of California, without reference to rules relating
to conflicts of law.  In the event that
any provision of this Agreement becomes or is declared by a court of competent
jurisdiction or arbitrator to be illegal, unenforceable, or void, this
Agreement shall continue in full force and effect without said provision.

 

10.                                 Successors
and Assigns.  This Agreement shall be
binding upon the Company’s successors and assigns and upon your heirs, executors,
administrators, estate, successors and assigns. 

 

5

 

For all purposes under this Agreement, the term “Company”
shall include any affiliates of the Company and any successor to the Company’s
business, stock and/or assets, which becomes bound by this Agreement.  You may not assign this Agreement.

 

11.                                 No
Inconsistent Obligations.  By signing
this Agreement and accepting this offer of employment, you represent and
warrant to the Company that you are under no obligations or commitments,
whether contractual or otherwise, that are inconsistent with your obligations
set forth in this Agreement.  You also
represent and warrant that you will not use or disclose, in connection with
your employment by the Company, any trade secrets or other proprietary
information or intellectual property in which you or any other person has any
right, title, or interest and that your employment by the Company as
contemplated by this Agreement will not infringe upon or violate the rights of
any other person or entity.  You
represent and warrant to the Company that you have returned all property and
confidential information belonging to any prior employers.

 

12.                                 Section 409A.

 

a.                                       Anything
in this Agreement to the contrary notwithstanding, if at the time of your
separation from service within the meaning of Section 409A of the Code,
the Company determines that you are a “specified employee” within the meaning
of Section 409A(a)(2)(B)(i) of the Code, then to the extent any
payment or benefit that you become entitled to under this Agreement would be
considered deferred compensation subject to the 20 percent additional tax
imposed pursuant to Section 409A(a) of the Code as a result of the
application of Section 409A(a)(2)(B)(i) of the Code, such payment
shall not be payable and such benefit shall not be provided until the date that
is the earlier of (A) six months and one day after your separation from
service, or (B) your death.  The
determination of whether and when a separation from service has occurred shall
be made in accordance with the presumptions set forth in Treasury Regulation Section 1.409A-1(h).

 

b.                                      You
and the Company intend that this Agreement will be administered in accordance
with Section 409A of the Code.  To
the extent that any provision of this Agreement is ambiguous as to its
compliance with Section 409A of the Code, the provision shall be read in
such a manner so that all payments hereunder comply with Section 409A of
the Code.  You and the Company agree that
this Agreement may be amended, as reasonably requested by either party, and as
may be necessary to fully comply with Section 409A of the Code and all
related rules and regulations in order to preserve the payments and
benefits provided hereunder without additional cost to either party.

 

c.                                       The
Company makes no representation or warranty and shall have no liability to you
or any other person if any provisions of this Agreement are determined to
constitute deferred compensation subject to Section 409A of the Code but
do not satisfy an exemption from, or the conditions of, such Section.

 

13.                                 Entire
Agreement.  This Agreement together
with the Confidentiality Agreement, sets forth the full and complete agreement
between the Company and you regarding the subject matter hereof and supersedes
any and all prior representations or agreements between you and the Company, if
any, whether written or oral.  This
Agreement may not be modified or amended except by a written agreement, signed by
you and an officer of the Company.  No
failure on the part of the 

 

6

 

Company or you to exercise any power, right or
privilege or remedy under this Agreement, and no delay on the part of the
Company or you in such exercise shall operate as a waiver of such power, right,
privilege or remedy; and no single or partial exercise of any such power,
right, privilege or remedy shall preclude any other further exercise thereof or
any other power, right, privilege or remedy. 
Any waiver must be in writing and executed by the parties.  The captions contained in this Agreement are
for convenience only and shall not be considered part of this Agreement.

 

	
  DATED: December 4, 2008

  	
   

  	
  ActivIdentity Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Grant Evans

  
	
   

  	
   

  	
  Name:

  	
  Grant Evans

  
	
   

  	
   

  	
  Title:

  	
  CEO

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  DATED: December 4, 2008

  	
   

  	
  Michael Sotnick

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
           /s/ Michael
  Sotnick

  
	
   

  	
   

  	
  (Signature)

  

 

7

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