Document:

Prepared by R.R. Donnelley Financial -- Management Retention Agreement-David Nagel

 Exhibit 10.26 
  
 

 
  
 PALMSOURCE, INC. 

 
 MANAGEMENT RETENTION AGREEMENT 
  
 This Management Retention Agreement (the “Agreement”) is made and
entered into by and between David Nagel (the “Employee”) and PalmSource, Inc. (the “Company”), effective as of the latest date set forth by the signatures of the parties hereto below (the “Effective Date”). 

 
 RECITALS 
  
 A. It is expected that the Company from time to time may consider a Change of
Control (as defined below). The Board of Directors of the Company (the “Board”) recognizes that such consideration can be a distraction to the Employee and can cause the Employee to consider alternative employment opportunities. The Board
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 the Employee, notwithstanding the possibility, threat or occurrence of a Change of
Control of the Company. 
  
 B. The Board believes that it is in
the best interests of the Company and its stockholders to provide the Employee with an incentive to continue his employment and to motivate the Employee to maximize the value of the Company upon a Change of Control for the benefit of its
stockholders. 
  
 C. The Board believes that it is imperative to
provide the Employee with severance benefits upon Employee’s termination of employment following a Change of Control which provides the Employee with enhanced financial security and incentive and encouragement to remain with the Company
notwithstanding the possibility of a Change of Control. 
  
 D.
Certain capitalized terms used in this Agreement are defined in Section 5 below. 
  
 The parties hereto agree as follows: 
  
 1. Term of Agreement. This Agreement shall terminate upon the date that all obligations of the parties hereto with respect to this Agreement have been satisfied. 
  
 2. At-Will Employment. The Company and the Employee acknowledge that the Employee’s employment is and shall
continue to be at-will, as defined under applicable law, and may be terminated by either party at any time, with or without cause or notice. If the Employee’s employment terminates for any reason, including (without limitation) any termination
prior to a Change of Control, the Employee shall not be entitled to any payments, benefits, damages, awards or compensation other than as provided by this Agreement, or as may otherwise be available in accordance with the Company’s established
employee plans or pursuant to other written agreements with the Company. 

 3. Change of Control Severance Benefits. 
  
 (a) Involuntary Termination other than for Cause, Death or Disability or
Voluntary Termination for Good Reason Following A Change of Control. If, within twelve (12) months following a Change of Control, Employee’s employment with the Company (or any subsidiary thereof) is terminated (i) involuntarily by the
Company (or any subsidiary thereof) other than for Cause, death or Disability or (ii) by the Employee pursuant to a Voluntary Termination for Good Reason, then, subject to Employee entering into a standard form of mutual release of claims with the
Company, the Company shall provide Employee with the following benefits upon such termination: 
  
 (i) Severance Payment. A lump-sum cash payment in an amount equal to one hundred percent (100%) of the Employee’s Annual Compensation;

  
 (ii) Continued Employee Benefits. Company-paid health,
dental, vision, long-term disability and life insurance coverage at the same level of coverage as was provided to such Employee immediately prior to the Change of Control and at the same ratio of Company premium payment to Employee premium payment
as was in effect immediately prior to the Change of Control (the “Company-Paid Coverage”). If such coverage included the Employee’s dependents immediately prior to the Change of Control, such dependents shall also be covered at
Company expense. Company-Paid Coverage shall continue until the earlier of (A) two years from the date of termination, or (B) the date upon which the Employee and his dependents become covered under another employer’s group health, dental,
vision, long-term disability or life insurance plans that provide Employee and his dependents with comparable benefits and levels of coverage. For purposes of Title X of the Consolidated Budget Reconciliation Act of 1985 (“COBRA”), the
date of the “qualifying event” for Employee and his or her dependents shall be the date upon which the Company-Paid Coverage commences, and each month of Company-Paid Coverage provided hereunder shall offset a month of continuation
coverage otherwise due under COBRA. 
  
 (iii) Pro-Rated Bonus
Payment. A lump-sum cash payment equal to one hundred percent (100%) of the higher of (A) Employee’s target bonus as in effect for the fiscal year in which the Change of Control occurs or (B) Employee’s target bonus as in effect for
the fiscal year in which Employee’s termination occurs, pro-rated by multiplying such bonus amount in clause (A) or (B), as applicable, by a fraction, the numerator of which shall be the number of days prior to Employee’s termination
during such fiscal year, and the denominator of which shall be three hundred and sixty-five. 
  
 (iv) Equity Compensation Accelerated Vesting. One Hundred percent (100%) of the unvested portion of any stock option, restricted stock or other Company equity compensation held by the Employee shall be
automatically accelerated in full so as to become completely vested. 
  
 Notwithstanding the foregoing, in the event the Employee is employed by the Company at the time of a Spin-Off of the Company, then the Employee shall not be deemed to have been terminated for Cause nor shall Employee be permitted to
terminate his or her employment pursuant to a Voluntary Termination for Good Reason and receive the benefits provided for in this Section 3(a) as a result of such Spin-Off. 
  
 (b) Voluntary Resignation; Termination For Cause. If the Employee’s employment terminates by reason of the
Employee’s voluntary resignation (and is not a Voluntary Termination for Good Reason), or if the Employee is terminated for Cause, then the Employee shall not be entitled to receive severance or other benefits except for those (if any) as may
then be established under the Company’s (or any subsidiary’s) then existing severance and benefits plans or pursuant to other written agreements with the Company (or any subsidiary thereof). 
  
 (c) Disability; Death. If the Employee’s employment with the
Company (or any subsidiary thereof) terminates as a result of the Employee’s Disability, or if Employee’s employment is terminated due to the death of the Employee, then the Employee shall not be entitled to receive severance or other
benefits except for those (if any) as may then be established under the Company’s (or any subsidiary’s) then existing severance and benefits plans or pursuant to other written agreements with the Company (or any subsidiary thereof).

  

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 (d) Termination Apart from Change of Control. In the event the Employee’s employment is
terminated for any reason, either prior to the occurrence of a Change of Control or after the twelve (12) month period following a Change of Control, then the Employee shall be entitled to receive severance and any other benefits only as may then be
established under the Company’s (or any subsidiary’s) then existing severance and benefits plans or pursuant to other written agreements with the Company. 
  
 (e) Severance Agreement Offset. Notwithstanding the preceding, if your termination of employment would qualify you
for payments and benefits under your Severance Agreement with the Company dated August 14, 2003, you will receive neither the payments nor the benefits described in this Section 3, except for payments pursuant to Section 3(a)(iv) (regarding equity
compensation accelerated vesting). Instead, you will receive the payments and benefits to which you are entitled under your Severance Agreement. 
  
 4. Golden Parachute Excise Tax. 
  
 (a) In the event that the benefits provided for in this Agreement or otherwise provided by the Company (or any subsidiary thereof) to the Employee
(including, but not by way of limitation, any accelerated vesting on stock options) (the “Total Payments”) would subject the Employee to an excise tax (the “Excise Tax”) imposed under Section 4999 of the Internal Revenue Code of
1986, as amended (the “Code”), then the Company (or any subsidiary thereof that employs the Employee at such time) will pay the Employee (i) an amount sufficient to pay the excise tax, and (ii) an additional amount sufficient to pay the
Excise Tax and federal, state and local income and employment taxes arising from the payments made by the Company (or any subsidiary thereof that employs the Employee at such time) pursuant to this sentence. Any amount required to paid to the
Employee pursuant to the preceding sentence shall be referred to as the “Gross-Up Payment.” 
  
 (b) The determination of the Employee’s Excise Tax liability and the amount, if any, required to be paid under this Section 4 will be made in writing
by the Company’s independent auditors (the “Accountants”). For purposes of making the calculations required by this Section 4, the Employee shall be deemed to pay federal, state and local income taxes at the highest marginal rate in
effect in the calendar year in which the Gross-Up Payment will be made, based on the Employee’s residence. 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 (or any subsidiary thereof that employs the Employee at such time) and the Employee shall furnish to the Accountants such information and documents as the
Accountants may reasonably request in order to make a determination under this Section 4. The Company will pay all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 4. 
  
 (c) The Accountants shall determine the Gross-Up Payment as soon as
practicable after the Employee’s termination of employment (but in no event later than 15 days after the termination). In addition, the Accountants shall make a determination of any Gross-Up Payment prior to termination of employment upon
written request of the Employee and assuming the Employee has a reasonable basis for believing that the or she may be entitled to a Gross-Up Payment prior to termination of employment. The Gross-Up Payment shall be paid to the Employee within five
days after the Accountants’ determination. In the event that the initial Gross-Up Payment made to the Employee is finally determined to be too large or small, the following rules shall apply. If the initial Gross-Up Payment was too small, the
Company (or any subsidiary thereof that employs the Employee at such time) shall promptly made an additional payment to the Employee equal to the shortfall (plus any interest, penalties or additional payable by executive with respect to such
excess). If the initial Gross-Up Payment is too large, then the Employee shall repay the amount o£ the excess to the Company (or any subsidiary that has made such payment to the Employee), plus interest on the amount of such repayment at 120%
of the applicable federal rate provided in section 1274 of the Code, but only to the extent that such repayment by the Employee would result in a dollar-for-dollar reduction in the Executive’s taxable income and wages for purposes of federal,
state and local income and employment taxes). The Executive and the Company (or any subsidiary thereof that employs the Employee at such time) shall each reasonably cooperate, with the other in connection with any administrative or judicial
proceedings concerning the existence or amount of the Excise Tax with respect to the Total Payments (and associated income taxes, penalties and interest). 
  

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 5. Definition of Terms. The following terms referred to in this Agreement shall have the following
meanings: 
  
 (a) Annual Compensation. “Annual
Compensation” shall mean an amount equal to the sum of (i) the Employee’s annual base salary, and (ii) 100% of the Employee’s Target Bonus, as in effect on the date of the Change of Control or Employee’s termination, in each
case, whichever is higher. 
  
 (b) Target Bonus.
“Target Bonus” shall mean Employee’s annual bonus, assuming 100% “on target” satisfaction of any objective or subjective performance milestones. 
  
 (c) Cause. “Cause” shall mean (i) an act of personal dishonesty taken by the Employee in connection with
his responsibilities as an employee and intended to result in substantial personal enrichment of the Employee, (ii) Employee being convicted of a felony, (iii) a willful act by the Employee which constitutes gross misconduct and which is injurious
to the Company (or any subsidiary thereof that employs the Employee at such time), (iv) following delivery to the Employee of a written demand for performance from the Company (or any subsidiary thereof that employs the Employee at such time) which
describes the basis for the Company’s (or any subsidiary’s) reasonable belief that the Employee has not substantially performed his duties, continued violations by the Employee of the Employee’s obligations to the Company (or any
subsidiary thereof that employs the Employee at such time) which are demonstrably willful and deliberate on the Employee’s part. 
  
 (d) Change of Control. “Change of Control” means the occurrence of any of the following events: 
  
 (i) Any “person” (as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended) becomes the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total
voting power represented by the Company’s then outstanding voting securities who is not already such as of the Effective Date of this Agreement; or 
  
 (ii) The consummation of the sale or disposition by the Company of all or substantially all the Company’s assets; or 
  
 (iii) The consummation of a merger or consolidation of the Company with any
other corporation, other than a merger or consolidation which 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 parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or
consolidation; or 
  
 (iv) A change in the composition of the
Board occurring within a two-year period, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean directors who either (A) are directors of the Company as of the date upon which
this Agreement was entered into, or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of those directors whose election or nomination was not in connection with any transaction described in
subsections (i), (ii), or (iii) above, or in connection with an actual or threatened proxy contest relating to the election of directors to the Company; or 
  
 (e) Disability. “Disability” shall mean that the Employee has been unable to perform his duties as an employee of the Company (or any
subsidiary thereof that employs the Employee at such time) as the result of his incapacity due to physical or mental illness, and such inability, at least 26 weeks after its commencement, is determined to be total and permanent by a physician
selected by the Company or its insurers and acceptable to the Employee or the Employee’s legal representative (such Agreement as to acceptability not to be unreasonably withheld). Termination resulting from Disability may only be effected after
at least 30 days’ written notice by the Company (or any subsidiary thereof that employs the Employee at such time) of its intention to terminate the Employee’s employment. In the event 
  

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that the Employee resumes the performance of substantially all of his duties hereunder before the termination of his employment becomes effective, the notice
of intent to terminate shall automatically be deemed to have been revoked. 
  
 (f) Spin-Off. “Spin-Off” shall mean the distribution of the securities of the Company to the stockholders of Palm, Inc. at a time when Palm, Inc. owns at least 80% of the Company’s securities.

  
 (g) Voluntary Termination for Good Reason.
“Voluntary Termination for Good Reason” shall mean the Employee voluntarily resigns after the occurrence of any of the following (i) without the Employee’s express written consent, a material reduction of the Employee’s duties,
title, authority or responsibilities, relative to the Employee’s duties, title, authority or responsibilities as in effect immediately prior to such reduction, or the assignment to Employee of such reduced duties, title, authority or
responsibilities; provided, however, that a reduction in duties, title, authority or responsibilities solely by virtue of the Company being acquired and made part of a larger entity (as, for example, when the Senior Vice-President of a business unit
of the Company remains as such following a Change of Control) shall not by itself constitute grounds for a “Voluntary Termination for Good Reason;” (ii) without the Employee’s express written consent, a material reduction, without
good business reasons, of the facilities and perquisites (including office space and location) available to the Employee immediately prior to such reduction; (iii) a reduction by the Company in the base salary of the Employee as in effect
immediately prior to such reduction; (iv) a material reduction by the Company in the aggregate level of employee benefits, including bonuses, to which the Employee was entitled immediately prior to such reduction with the result that the
Employee’s aggregate benefits package is materially reduced (other than a reduction that generally applies to Company employees); (v) the relocation of the Employee to a facility or a location more than thirty-five (35) miles, from the
Employee’s then present location, without the Employee’s express written consent; (vi) the failure of the Company to obtain the assumption of this agreement by any successors contemplated in Section 7(a) below; or (vii) any act or set of
facts or circumstances which would, under California case law or statute constitute a constructive termination of the Employee. 
  
 6. Non-Solicitation. In consideration for the severance benefits Employee is to receive herein, if any, Employee agrees that he or she will not, at
any time during the one year following his or her termination date, directly or indirectly solicit any individuals to leave the Company’s (or any of its subsidiaries) employ for any reason or interfere in any other manner with the employment
relationships at the time existing between the Company (or any of its subsidiaries) and its current or prospective employees. 
  
 7. Assignment. 
  
 (a) Company’s Successors / Former Subsidiary. Any successor to the Company (whether direct or indirect and whether by purchase, merger,
consolidation, liquidation or otherwise) shall 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” shall include any such successor to the Company’s business and/or assets which executes and delivers the assumption agreement
described in this Section 7(a) or which becomes bound by the terms of this Agreement by operation of law. 
  
 (b) Employee’s Successors. The terms of this Agreement and all rights of the Employee hereunder shall inure to the benefit of, and be
enforceable by, the Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributes, devisees and legatees. 
  
 8. Notice. 
  
 (a) General. Notices and all other communications contemplated by this Agreement shall be in writing and shall be deemed to have been duly given
when personally delivered or one day following mailing via Federal Express or similar overnight courier service. In the case of the Employee, mailed notices shall 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 shall be addressed to its corporate headquarters, and all notices shall be directed to the attention of its Secretary. 
  

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 (b) Notice of Termination. Any termination of the Employee by the Company (or any subsidiary
thereof that employs the Employee at such time) for Cause or by the Employee pursuant to a Voluntary Termination for Good Reason as contemplated by Section 3(a) shall be communicated by a notice of termination to the other party hereto given in
accordance with Section 8(a) of this Agreement. Such notice shall indicate the specific termination provision in this Agreement relied upon, shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination
under the provision so indicated, and shall specify the termination date (which shall be not more than 30 days after the giving of such notice). The failure by the Employee to include in the notice any factor” circumstance which contributes to
a showing of Voluntary Termination for Good Reason shall not waive any right of the Employee hereunder or preclude the Employee from asserting such fact or circumstance in enforcing his rights hereunder. 
  
 9. Miscellaneous Provisions. 
  
 (a) No Duty to Mitigate. The Employee shall not be required to
mitigate the value of any benefits contemplated by this Agreement, nor shall any such benefits be reduced by any earnings or benefits that the Employee may receive from any other source. 
  
 (b) Waiver. No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or
discharge is agreed to in writing and signed by the Employee and by two authorized officers of the Company (other than the Employee). No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by
the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time. 
  
 (c) Whole Agreement. No agreements, representations or understandings (whether oral or written and whether express or implied) which are not
expressly set forth in this Agreement have been made or entered into by either party with respect to the subject matter hereof. This Agreement represents the entire understanding of the parties hereto with respect to the subject matter hereof and
supersedes all prior arrangements and understandings regarding same. 
  
 (d) Choice of Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California. 
  
 (e) Severability. The invalidity or unenforceability of any provision or provisions of this Agreement shall not
affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect. 
  
 (f) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will
constitute one and the same instrument. 
  
 [Remainder of
Page Intentionally Left Blank] 
  

 6 

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

	PALMSOURCE, INC.
		
	 By:
	 	 /s/    Doreen S. Yochum

		
	 Title:
	 	 Chief Administrative Officer and Secretary

		
	 Date:
	 	 August 14, 2003

	
	David Nagel
	
	  
 /s/    David Nagel

		
	 Date:
	 	 August 14, 2003Prepared by R.R. Donnelley Financial -- Consulting Agreement-Satjiv Chahil

 EXHIBIT 10.37 
  

	

	 	CONSULTING AGREEMENT

  

 This consulting agreement (the “Agreement”) is entered into by Satjiv Chahil
(“Consultant”) having a place of business at 961 Los Altos Avenue, Los Altos, CA 95035 and PalmSource, Inc. (“PalmSource”) having its principal place of business at 1240 Crossman Avenue, Sunnyvale, CA 94089-1116. 
  

	1.0	 	Services.    Consultant shall provide PalmSource consulting services four (4) days per month as generally outlined by PalmSource’s Chief
Executive Officer (the “Services”). Initially Consultant will assist PalmSource in: (i) developing a business in India; (ii) developing its current market in Japan, including, but not by limitation, obtaining additional business from Sony
and introductions to Toshiba, Sharp and other key Japanese companies; and (iii) penetrating the entertainment business and make a market for Palm Powered® devices and software. 

  

	2.0	 	Compensation and Reporting.    Consultant shall be compensated at his standard rate of two thousand eight hundred dollars ($2,800) per day.
Consultant shall be paid eleven thousand two hundred dollars ($11,200) monthly, for the Services. Consultant shall invoice PalmSource on the first day of each month and payments will be made by the fifteenth (15th) of the each month. Prior to the fifteenth (15th) of each month, Consultant shall submit to PalmSource’s Chief Executive Officer a summary report detailing the activities of the last thirty (30) days; anticipated activities over the next thirty
(30) days along with appropriate advice and quidance. In addition, at the reasonable request of PalmSource’s Chief Executive Officer, Consultant shall supply additional reports, provided they can reasonably be completed as part of the Services.

  

	3.0	 	Confidential Information 

  

	3.1	 	“Confidential Information” means all confidential and proprietary information, whether written and oral, and in any form or on any media, including, without
limitation, engineering documents, research and development, manuals, reports, designs, drawings, plans, flowcharts, software (in source or object code), program listings, data file printouts, printed circuit boards, processes, component part
listings and prices, product information, new product plans, sales and marketing plans and/or programs, pricing information, customer lists and other customer information, financial information and employee files or other employee information
relating to either PalmSource’s business or technology which is disclosed by PalmSource to Consultant either directly or indirectly. 

  

	3.2	 	Consultant agrees it shall use the same degree of care and means that it utilizes to protect its own Confidential Information, but in any event not less than reasonable care
and means, to prevent the unauthorized use or the disclosure of the Confidential Information to third parties. The Confidential Information may be disclosed only on a “need-to-now” basis as required to complete the Services and then only
if the recipient is instructed and agrees not to disclose the Confidential Information and not to use the Information for any purpose, permitted herein. A recipient may not alter, decompile, disassemble, reverse engineer, or otherwise modify any
Confidential Information received hereunder and the mingling of the Confidential Information with information of the recipient shall not affect the confidential nature or ownership of the same as stated hereunder. 

  

	3.2.1	 	This Agreement shall impose no obligation of confidentiality upon Consultant with respect to any portion of the Confidential Information received hereunder which is: (i) now
or hereafter, through no unauthorized act or failure to act on Consultant’s part, in the public domain; (ii) known to the Consultant without an obligation of confidentiality or trust at the time Consultant receives the same from the PalmSource
or its customers or agents, as evidenced by written records; (iii) hereafter furnished to Consultant by a third party as a matter of right and without restriction on disclosure; (iv) furnished to others by the PalmSource without restriction on
disclosure; or (v) independently developed by Consultant without use of Confidential Information. Nothing in this Agreement shall prevent Consultant from disclosing Confidential Information to the extent he is legally compelled to do so by any
governmental investigative or judicial agency pursuant to proceedings over which such agency has jurisdiction; provided, however, that prior to any such disclosure, Consultant shall: (a) assert the confidential nature of the Confidential Information
to the agency; (b) immediately notify PalmSource in writing of the agency’s order or request to disclose; and (c) cooperate fully with PalmSource in protecting against any such disclosure and/or obtaining a protective order narrowing the scope
of the compelled disclosure and protecting its confidentiality. 

  

	4.0	 	Independent Consultant; No Authority to Bind.    Consultant’s relationship to PalmSource hereunder shall be that of a vendor of services.
Consultant, when acting in its role as Consultant, shall have no right or authority, expressed or implied, to commit or otherwise obligate PalmSource or any of its affiliates to any third party in any manner. Consultant agrees that PalmSource shall
not be obligated to third parties with whom Consultant may make agreements or to whom Consultant may direct payments without PalmSource’s prior written consent. 

  

	5.0	 	Term and Termination.    The term of this Agreement shall commence on August 1, 2003, and shall continue until July 31, 2004. Either party hereto
may terminate this Agreement by giving the other party thirty (30) days prior written notice. 

  

	6.0	 	No Use of Name.    Consultant will not directly or indirectly refer to PalmSource or any of its affiliates in any printed, audio-visual or other
advertising or promotional material prepared or distributed by or for Consultant without PalmSource’s specific advance review and written approval. The provisions of this section shall survive any termination of this Agreement.

  

	7.0	 	Ownership of Documents. 

  

	7.1	 	Consultant agrees that all documents prepared at the request of or on behalf of PalmSource in connection with Services hereunder shall be and remain the sole property of
PalmSource, and Consultant shall deliver all such documents to PalmSource upon its request. For purposes of this section, the term “documents” shall include, without limitation, all reports, proposals, lists and sources of customers,
plans, specifications, code, studies, tapes or other electronic recordings, drawings, models, sketches and renderings (“Company Information”). 

  

 PalmSource Confidential 
 Page 1 of 2 

	

	 	CONSULTING AGREEMENT

  

	7.2	 	Consultant specifically agrees that all copyrightable material generated or developed under this Agreement shall be considered works made for hire and that such material
shall, upon creation, be owned exclusively by PalmSource. To the extent that any such material, under applicable law, may not be considered works made for hire, Consultant hereby assigns to PalmSource the ownership of copyright in such materials,
without the necessity of any further consideration, and PalmSource shall be entitled to obtain and hold in its own name all copyrights in respect of such materials. On or before termination of work, Consultant, shall return to PalmSource all
originals and copies of all or any part of Company Information. 

  

	7.3	 	If and to the extent Consultant may, under applicable law, be entitled to claim any ownership interest in the Company Information, Consultant hereby transfers, grants,
conveys, assigns, and relinquishes exclusively all of Consultant’s right, title, and interest in and to such materials, under patent, copyright, trade secret, and trademark law, in perpetuity or for the longest period otherwise permitted by
law. 

  

	7.4	 	Consultant shall perform any acts that may be deemed necessary or desirable by PalmSource to evidence more fully transfer of ownership of all materials designated under this
section 7.0 to PalmSource to the fullest extent possible, including but not limited to the making of further written assignments in a form determined by PalmSource. 

  

	7.5	 	To the extent that any pre-existing rights are embodied or reflected in the Company Information, Consultant, hereby grants to PalmSource the irrevocable perpetual,
non-exclusive, worldwide, royalty-free right and license to: (i) use, execute, reproduce, display, perform, distribute copies of, and prepare derivative works based upon such pre-existing rights and any derivative works thereof and (ii) authorize
others to do any or all of the foregoing. 

  

	8.0	 	Non-solicitation of Clients.    It is understood that Consultant, will learn trade secrets, confidential and proprietary information as referred to
in this Agreement. Use of such trade secrets, confidential and proprietary information will provide them with an unfair advantage over PalmSource, as compared to a normally competitive situation. Consultant agrees that if Consultant solicits
business from PalmSource’s clients and prospective client, Consultant will of necessity use such trade secrets, proprietary and confidential information, and such solicitation would be unfair. In recognition of this, Consultant agrees that upon
termination of this Agreement, Consultant, will not engage in the conduct described below: 

  

	8.1	 	Consultant shall not solicit any clients of PalmSource (i.e., clients where at least a project has been conducted in the last two (2) years), or attempt to take away any
business of PalmSource that is either under way or about to begin at the termination of this Agreement. 

  

	8.2	 	For a period of one (1) year following termination of this Agreement, Consultant shall not interfere or compete in any way with any proposal or other efforts of
PalmSource’s, already in progress (that is, a proposal sent to or being then currently developed for a specific existing or prospective client or clients, or contemplated to be submitted to a specific existing or prospective client or clients
by PalmSource within one (1) year) at the termination of this Agreement. 

  

	9.0	 	Non solicitation of Employees.    Consultant agrees that he will not, either during the term of this Agreement or at any time thereafter,
hire nor attempt to solicit or influence any of PalmSource’s employees to: (i) become employees of, or render services to, any other employer or business; (ii) engage in any activity, business or undertaking not sponsored by PalmSource; or
(iii) engage in any activity contrary to or conflicting with the interests of PalmSource, while the employee is employed at PalmSource. 

  

	10.0	 	Governing Law.    This Agreement shall be governed by the laws of the State of California. The parties hereby submit to the jurisdiction of the
Superior Court of Santa Clara County, State of California, and the United States District Court for the Northern District of California 

  

	11.0	 	Severability.    In the event any provision of this Agreement is found to be invalid, illegal or unenforceable, the validity, legality and
enforceability of any of the remaining provisions shall not in any way be affected or impaired. 

  

	12.0	 	Entire Agreement.    This Agreement consists of two (2) pages and represents the entire agreement and understanding of the parties with respect to
the subject matter hereof and supersede all prior representations, understandings and agreements, whether oral or written, with respect to such subject matter. This Agreement may be modified only by a writing executed by both parties.

  
 Further, This Agreement may be executed in two
(2) or more counterparts, each of which shall be deemed an original, but both of which together shall constitute one and the same instrument. If this Agreement is executed in counterparts, no signatory hereto shall be bound until both the parties
named below have duly executed or caused to be duly executed a counterpart of this Agreement. 
  

	PalmSource, Inc.
		
	By:	  	 /s/ David C. Nagel

	Name:	  	 David C. Nagel

	Title:	  	 President & CEO

	Date:	  	 8/12/03

	
	Consultant
		
	By:	  	 /s/ Satjiv S. Chahil

	Name:	  	 Satjiv S. Chahil

	Title:	  	  

	Date:	  	 8/13/03

  

 PalmSource Confidential 
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