Document:

exv10w1

 

Exhibit 10.1

October 17, 2006

Mr. Brian E. Agle

265 Sargent Road

Boxborough, MA 01719

Dear Brian:

On behalf of Activant Solutions, Inc., I am pleased to confirm the following offer of employment to
you as Senior Vice President and Chief Financial Officer. The following should summarize the
salient points of our offer.

Position: Senior Vice President and Chief Financial Officer, reporting directly to Pervez
Qureshi. Your offer of employment will be contingent upon successful completion of the
pre-employment background investigation, finalization of reference checking and completion of the
requirements of the final paragraph in this letter. A start date upon completion of the above will
be mutually determined, but will be no later than November 16, 2006. The position is located at
the Company’s headquarters in Livermore, California and we anticipate you will work at the
headquarters facility approximately four days a week (other than when traveling on business) until
your relocation is complete, at which time you will be expected to work at the headquarters
facility on a full time basis.

Salary: Your salary will be $12,038.46 paid bi-weekly, which is the equivalent
to $313,000 annually. This is an exempt position.

Incentive Bonus: You will be eligible to participate in the Activant Incentive Bonus Plan,
commencing the first full quarter after your start date. Your target incentive bonus under the plan
will be $187,000.

Stock Options: Effective as of your date of hire, you will be granted 500,000 stock
options subject to the approval of the Board of Directors and execution of the Company’s form of
stock option agreement.

Sign-On Bonus: The Company will pay to you a gross (taxable) bonus of $100,000 within 10
days after your starting date of employment. In the event you voluntarily terminate your
employment with Activant prior to your relocation, you will reimburse this bonus to Activant in
full. In the event a Fiscal Year 2006 bonus is received from a former employer, that amount would
be subtracted from the $100,000 received from Activant.

 

 

	 	 	 
	Brian Agle

Page 2

	 	October 17, 2006
	 
	 	 

Secondly, Activant will pay to you an additional gross (taxable) bonus of $150,000 within 10 days
after your starting date of employment. In the event you voluntarily terminate your employment
with Activant prior to 24 months from your starting date, you will reimburse Activant this portion
of the signing bonus on a pro-rata basis, based on the period of time from when the voluntary
termination occurs and your starting date. This portion of the signing bonus is being paid in lieu
of the outstanding loan balance with your former employer. If for any reason repayment of the loan
to your former employer is not required to be made, the amount not required to be paid due to loan
forgiveness will be subtracted from the second portion of the signing bonus.

Relocation: Activant will pay for the closing costs for both the selling of your home in
Massachusetts and the purchase of a home in Northern California. Activant will reimburse you for
up to two house hunting trips to Northern California with one family member. We will reimburse you
for the moving of your household items and any temporary storage that may be necessary in
conjunction with your relocation. Activant will pay for temporary housing for up to six months.
We will need to discuss the type of temporary housing that will work best for you and your family,
if needed. Lastly, Activant will gross-up any taxable relocation expenses.

All relocation costs must be approved ahead of time by Beth Taylor, Sr. VP of HR. In the event you
voluntarily terminate your employment with Activant prior to six months from your relocation date,
you will reimburse Activant in full for all relocation costs.

This relocation benefit is available with the understanding that you will make every effort to
complete your relocation to Northern California by September 1, 2007. If for any unforeseen reason
this target date needs to change beyond this date, you agree to mutually determine a new target
date with Pervez as soon as possible.

Executive Severance: Activant will provide for severance in the your event is
involuntarily terminated by Activant for any reason other than for “Cause” (as defined in the plan)
or, if you voluntarily terminate your employment with the Company for “Good Reason” (as defined in
the Plan). The Plan will provide for severance of (i) 9-months of your then base salary, (ii)
9-months target of your IB bonus and (iii) 9-months of COBRA payments.

Benefits: As a full-time employee, you will be eligible to participate in the Company’s
comprehensive group medical, dental, vision, disability, deferred compensation and life insurance
programs. Health coverage becomes effective the first day of employment. Activant has several
additional benefit programs such as a 401(k) plan, Educational Assistance Program and a Flexible
Spending Program. Your vacation accrual will equal 20 days (160 hours) per year.

Employment At Will: In consideration of employment, you agree to conform to the policies of
the Company and acknowledge that employment can be terminated for any reason, with or without
cause, at any time with or without notice at the option of Activant or the employee. Failure to
comply with company policies will necessitate disciplinary action, which may include termination of
employment.

 

 

	 	 	 
	Brian Agle

Page 3

	 	October 17, 2006
	 
	 	 

Activant has begun a very exciting time in its corporate life. We believe we can provide you with
a challenging and rewarding career and look forward to your joining the Activant staff and both
participating in and contributing to the success of the Company. We hope to have you as part of
the Activant Team, and we eagerly await your confirmation to our offer.

Brian, as we have discussed this offer is valid until October 17th, 2006. To indicate
your acceptance of the offer, please sign, date and return one copy of the original offer letter to
Austin Houck via the enclosed envelope. In addition to the conditions set forth above, this offer
is contingent upon the completion of and the return of the Form I-9, W-4 and our standard
agreements regarding Employee Confidentiality, Non-Disclosure, Intellectual Property and
Non-Solicitation (see enclosures) and your agreement to the Activant Code of Conduct. You must
provide proof of employment authorization within the first three days of your start date. Please
refer to the back of the form I-9 to assist you in determining which documents you must bring with
you on your first day of employment.

Sincerely,

Pervez Qureshi

President and CEO

I agree to the terms as outlined in this letter.

	 	 	 	 	 
	 
	 

Brian Agle

	 	 

Dateexv10w37

 

EXHIBIT 10.37

Tandy Brands Accessories, Inc.—2006 Performance Unit Award Agreement

This award agreement (“Award Agreement”) sets forth the terms and conditions of the 2006
Performance Unit Program (the “Program”) which is governed by the Tandy Brands Accessories, Inc.
2002 Omnibus Plan (the “Plan”). This Award Agreement, together with the Plan, govern the rights
under the Program with respect to the performance-based units (the “Performance Unit”) Awards
granted under this Award Agreement, and set forth all of the conditions and limitations affecting
such rights. Terms used in this Award Agreement that are defined in the Plan shall have the
meanings ascribed to them in the Plan. If there is any inconsistency between the terms of this
Award Agreement and the terms of the Plan, the Plan’s terms shall supersede and replace the
conflicting terms of this Award Agreement. For purposes of this Award Agreement, “Tandy Brands”
means the Company, its affiliates, and/or its subsidiaries.

Overview of Awards and Program Provisions

	1.	 	Performance Units Granted: [number of units] granted to [name of participant] (the
“Participant”)
	 
	2.	 	Date of Grant: November 1, 2006
	 
	3.	 	Performance Cycle. The Performance Cycle commences on July 1, 2006, and ends on June 30,
2009.
	 
	4.	 	Performance Unit. Each Performance Unit shall be payable in shares of Common Stock of the
Company. On any day, the value of a Performance Unit shall equal the Fair Market Value of the
            shares of Common Stock of the Company underlying the Performance Unit. As of the date of
grant, the Award Value of the Performance Units is zero.
	 
	5.	 	Performance Measure — Return on Non-Cash Assets. Return on Non-Cash Assets, or “RONCA,” shall
be determined by dividing Net Income After Taxes by Non-Cash Assets. “Net Income After Taxes”
shall equal the average of the net income or net loss after taxes for each twelve-month period
(or relevant portion thereof), which shall begin each July 1 and end on the following June 30,
in the Performance Cycle. “Non-Cash Assets” shall mean the average of the total assets minus
cash and cash equivalents, goodwill and related amortization, and intangibles and related
amortization measured as of (i) the last business day preceding the date the Performance Cycle
commences, and (ii) as of the last business day of each twelve-month (or relevant portion)
period of the Performance Cycle. “Intangibles” are those assets for which the accounting is
specified by Statement of Financial Accounting Standards No. 142, “Goodwill and Other
Intangible Assets.” All amounts necessary to calculate RONCA shall be determined in
accordance with generally accepted accounting principles in the United States and, to the
extent possible, based on disclosures in the Company’s consolidated financial statements.

 

 

	 	 	With respect to the calculation of Net Income, the Company’s consolidated financial statements
shall be adjusted to exclude, as applicable, the following possible actions or effects: (i) the
cumulative effect(s) of changes in accounting principles during the relevant periods; (ii)
extraordinary items; and (iii) realized capital gains or losses. With respect to the calculation
of Non-Cash Assets, the Committee shall determine if the Company’s consolidated financial
statements shall be adjusted for the possible actions or effects enumerated in the preceding
sentence and, if they are to be adjusted, the manner in which the adjustment is to be calculated.
	 
	6.	 	Amount of Performance Unit Award Earned: If not previously forfeited, on June 30, 2009, the
Participant shall vest in and have a nonforfeitable right to that percentage of the
Performance Units, as described above, corresponding to the RONCA Target achieved, as set
forth in the table below, rounded up to the next whole share in each such case.

	 	 	 	 	 
	RONCA Target Achieved

	 	Performance
Units 
Which Shall Vest

	 
	 	 	 	 
	RONCA is ___% or greater

	 	 		150%
	 
	 	 	 	 
	RONCA is ___%

	 	 		125%
	 
	 	 	 	 
	RONCA is ___%

	 	 		100%
	 
	 	 	 	 
	RONCA is ___%

	 	 	 	75%
	 
	 	 	 	 
	RONCA is ___%

	 	 	 	50%
	 
	 	 	 	 
	RONCA is less than ___%

	 	 	 	0%

	 	 	The percentage of the Performance Units which shall vest if the Company achieves a (i) RONCA of
more than ___% but less than ___%, (ii) RONCA of more than ___% but less than ___%, (iii)
RONCA of more than ___% but less than ___%, or (iv) RONCA of more than ___% but less than
___% shall be determined by the Committee using a straight line connecting ___% and ___%,
another straight line connecting ___% and ___%, another straight line connecting ___% and
___%, and another straight line connecting ___% and ___%, so that the Performance Units which
will vest is interpolated to the actual RONCA achieved.
	 
	7.	 	Settlement of Award: The Company shall issue to the Participant the shares of Common Stock
underlying the Performance Units which vest pursuant to Section 6 of this Award Agreement,
subject to adjustment in accordance with Section 14 of this Award Agreement, as provided in
Section 9 of this Award Agreement. Evidence of the issuance of the shares of Common Stock
pursuant to this Award Agreement may be accomplished in such manner as the Company or its
authorized representatives shall deem appropriate including, without limitation, electronic
registration, book-entry registration or issuance of a certificate or certificates in the name
of the Participant or in the name of such other party or parties as the Company and its
authorized representatives shall deem appropriate.
	 
	 	 	In the event the shares of Common Stock issued pursuant to this Award Agreement remain subject
to any additional restrictions, the Company and its authorized representatives shall ensure
that the Participant is prohibited from entering into any transaction, which would violate any
such restrictions, until such restrictions lapse.

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	8.	 	Eligibility for Earned Performance Units: A Participant will vest in Performance Units
pursuant to Section 6 of this Award Agreement only if:

	 	(a)	 	The Participant was nominated and approved as a participant for the Performance Cycle;
and
	 
	 	(b)	 	(i) The Participant:

(A) continues to be employed by the Company or a subsidiary through the end of the
Performance Cycle; or

(B) experiences a Termination of Service during the Performance Cycle due to death,
Total and Permanent Disability or Retirement (for the purposes of this Agreement,
“Retirement” shall mean any Termination of Service solely due to retirement upon
attainment of age 65, or permitted Early Retirement as determined by the Committee.
Early Retirement shall mean a person’s Termination of Service with the Company: (i)
after attainment of age 55, but before attainment of age 65; and (ii) after
completion of 15 years of service); or

(C) experiences a Termination of Service by the Company without Cause or by the
Participant for Good Reason. For the purposes of this Agreement, Good Reason shall
mean, Good Reason (i) as that term may be defined in any written employment
agreement between the Participant and the Company or a subsidiary which may at any
time be in effect, or (ii) in the absence of such a definition in a then-effective
written employment agreement (in the determination of the Committee), any material
breach of this Award Agreement by the Company or any successor thereto. For the
purposes of this Agreement, Cause shall mean (i) cause as that term may be defined
in any written employment agreement between the Participant and the Company or a
subsidiary which may at any time be in effect, (ii) in the absence of such a
definition in a then-effective written employment agreement (in the determination of
the Committee), that the Participant committed: (X) an intentional act of fraud,
embezzlement or theft in connection with the Participant’s duties or in the course
of their employment with the Company or a subsidiary; (Y) intentional wrongful
damage to property of the Company; or (Z) intentional wrongful disclosure of
confidential information of the Company or a subsidiary. For purposes of this
Agreement, no act, or failure to act, on their part shall be deemed “intentional” if
it was due primarily to an error in judgment, but shall be deemed “intentional” only
if done, or omitted to be done, by the Participant not in good faith and without
reasonable belief that the Participant’s action or omission was in the best interest
of the Company. Notwithstanding the foregoing, the Participant shall not be deemed
to have been terminated for “Cause” hereunder unless and until there shall have been
delivered to the Participant a copy of a resolution duly adopted by the affirmative
vote of not less than three-quarters (3/4) of the Board then in office at a meeting
of the Board called; or

	 	 	 	(ii) There is a Change of Control of the Company during the Performance Cycle.

	 	 	If the Participant experiences a Termination of Service due to death, Total and Permanent
Disability, Retirement or Early Retirement during the Performance Cycle, the Participant shall
be eligible to vest in a fraction of the number of Performance Units in which he/she may have

3

 

otherwise vested under Section 6 of this Award Agreement for the Performance Cycle had he/she
remained employed until the end of the Performance Cycle. The fraction of the number of
Performance Units in which the Participant will vest in connection with the Participant’s
Termination of Service due to death, Total and Permanent Disability, Retirement or Early
Retirement will be determined using a numerator which equals the number of complete calendar
months that have elapsed since the beginning of the Performance Cycle through the month of the
Participant’s Termination of Service, as determined below, and a denominator which is equal to
the number of months in the Performance Cycle. The month of the Participant’s Termination of
Service will be considered a complete month for purposes of inclusion in the numerator if the
Participant’s Termination of Service as a result of the Participant’s death, Total and Permanent
Disability or Retirement or Early Retirement occurs on or after the 15th day of such month. If
the Participant’s Termination of Service as a result of the Participant’s death, Total and
Permanent Disability or Retirement or Early Retirement occurs before the 15th day of such month,
the month in which the Participant’s Termination of Service occurs will not be considered a
complete month for purposes of the numerator. In the event such pro-ration results in the
Participant vesting in a fractional number of Performance Units, the number of Performance Units
in which the Participant will vest will be rounded up to the nearest whole number. Except as
otherwise provided in this Award Agreement, all Performance Units that are not vested in
connection with an Participant’s experiencing a Termination of Service as a result of the
Participant’s death, Total and Permanent Disability, Retirement or Early Retirement shall be
forfeited to the Company. In the event of an Participant’s death, the Participant’s beneficiary
or estate shall be entitled to the Performance Units to which the Participant otherwise would
have been entitled under the same conditions as would have been applicable to the Participant.

If, during the Performance Cycle, the Participant experiences a Termination of Service as a
result of a termination by the Company without Cause or as a result of the Participant’s
terminating employment for Good Reason, or if there is a Change of Control of the Company during
the Performance Cycle, the Participant shall vest in and have a nonforfeitable right to 100% of
the Performance Units as provided in Section 6.

All Performance Units earned under this Section 8 shall be settled pursuant to the terms of
Section 7 at the time provided in Section 9.

	9.	 	Time of Payment: Distribution of the shares of Common Stock corresponding to the Performance
Units which vested pursuant to Section 6 of this Award Agreement, will be made:

	 	(a)	 	To a Participant who (i) experiences a Termination of Service as a result of the
Participant’s death, Total and Permanent Disability, Retirement or Early Retirement during
the Performance Cycle, or (ii) remains employed with the Company or a subsidiary for the
entire Performance Cycle, as soon as administratively practicable following the end of the
Performance Cycle, but not later than two and one half months (21/2) after the end of the
Performance Cycle.
	 
	 	(b)	 	In connection with a Change of Control during the Performance Cycle, at the time of the
Change of Control.
	 
	 	(c)	 	To a Participant who experiences a Termination of Service by the Company without Cause
or by the Participant for Good Reason, as soon as administratively practicable upon the end
of the Performance Cycle, but not later than two and one half months (21/2) after the end of
the

4

 

Performance Cycle, provided, however, that if required by Code Section 409A, the
distribution will be as soon as administratively practicable upon the
end of the Performance Cycle, but not earlier than the date six (6) months following the Participant’s
date of “Separation from Service” (as such term is defined
under Code Section 409A).

	10.	 	Termination of Service for Other Reasons: In the event a Participant experiences a
Termination of Service during the Performance Cycle by the Company for Cause or by the
Participant for any reason other than those reasons set forth in Section 8, this entire Award
shall forfeit and no payment shall be made to the Participant under this Award Agreement.
	 
	11.	 	Nontransferability: During the Performance Cycle, Performance Units awarded pursuant to this
Award Agreement may not be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated (“Transfer”), other than by will or by the laws of descent and distribution,
except as provided in the Plan. If any Transfer, whether voluntary or involuntary, of
Performance Units is made, or if any attachment, execution, garnishment, or lien shall be
issued against or placed upon the Performance Units, the individual’s right to such
Performance Units shall be immediately forfeited to the Company, and this Award Agreement
shall lapse.
	 
	12.	 	Community Interest of Spouse: The community interest, if any, of any spouse of a Participant
in any of the Performance Units shall be subject to all of the terms, conditions and
restrictions of this Award Agreement and the Plan, and shall be forfeited and surrendered to
the Company upon the occurrence of any of the events requiring the Participant’s interest in
such Performance Units to be so forfeited and surrendered pursuant to this Award Agreement.
	 
	13.	 	Rights: A Performance Unit represents an unsecured promise of the Company to issue shares of
Common Stock of the Company as otherwise provided in this Award Agreement. Other than the
rights provided in this Award Agreement, the Participant shall have no rights of a stockholder
of the Company until such Performance Units have vested and the related shares of Common Stock
of the Company have been issued pursuant to the terms of this Award Agreement.
	 
	14.	 	Adjustments: In the event that the outstanding shares of Common Stock are changed into or
exchanged for a different number or kind of capital stock or other securities of the Company
or its successor by reason of merger, consolidation, recapitalization, reclassification, stock
split-up, stock dividend or combination of shares of Common Stock, the Committee or the Board,
subject to the provisions of the Plan and this Award Agreement, shall make an appropriate and
equitable adjustment in accordance with the provisions of the Plan in the number and kind of
Performance Units under this Award Agreement so that after such event each Participant’s
proportionate interest shall be maintained as before the occurrence of such event. Any such
adjustment made by the Committee or the Board shall be final and binding upon the Participant,
the Company and all other interested persons.
	 
	15.	 	Requirements of Law: The granting of Performance Units under the Program and Plan shall be
subject to all applicable laws, rules, and regulations, and to such approvals by any
governmental agencies or national securities exchanges as may be required.
	 
	16.	 	Inability to Obtain Authorization: The inability of the Company to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be
necessary to the lawful issuance and sale of any shares of Common Stock hereunder, shall
relieve

5

 

	 	 	the Company of any liability with respect to the failure to issue or sell such shares
as to which such requisite authority shall not have been obtained.
	 
	17.	 	Tax Withholding: The Company shall have the power and the right to deduct or withhold, or
require the Participant or their beneficiary to remit to the Company, an amount sufficient to
satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to
be withheld with respect to any taxable event arising as a result of this Award Agreement.
	 
	18.	 	Share Withholding: With respect to withholding required upon any taxable event arising under
this Award Agreement, by execution of this Award Agreement or any related acknowledgement, the
Participant shall be deemed to have authorized the Company to withhold from the shares of
Common Stock issued as a result of the Participant’s vesting in the Performance Units, the
            shares of Common Stock necessary to satisfy the Participant’s minimum required withholding, if
any. The amount of the minimum required withholding and the number of shares of Common Stock
required to satisfy Participant’s minimum required withholding, if any, as well as the amount
reflected on tax reports filed by the Company, shall be based on the closing price of the
Common Stock on the day the Performance Units vest, for tax purposes, pursuant to this Award
Agreement. Notwithstanding the foregoing, the Company may require that the Participant
satisfy any required withholding by any other means the Company, in its sole discretion,
considers reasonable. The obligations of the Company under this Award Agreement shall be
conditioned on the Participant’s satisfaction of any required withholding.
	 
	19.	 	Administration: This Award Agreement and the rights hereunder are subject to all the terms
and conditions of the Plan, as the same may be amended from time to time, as well as to such
rules and regulations as the Committee may adopt for administration of the Plan. It is
expressly understood that the Committee is authorized to administer, construe, and make all
determinations necessary or appropriate to the administration of the Plan and the Award
Agreement, all of which shall be binding upon the Participant.
	 
	20.	 	No Right to Future Grants; No Right of Employment or Continued Employment; Extraordinary
Item: In accepting the grant, the Participant acknowledges that: (a) the Plan and this Program
is established voluntarily by the Company, it is discretionary in nature and it may be
modified, suspended or terminated by the Company at any time, as provided in the Plan and this
Award Agreement; (b) the grant is voluntary and occasional and does not create any contractual
or other right to receive future grants; (c) all decisions with respect to future grants, if
any, will be at the sole discretion of the Company; (d) the Participant’s participation in the
Program and Plan is voluntary; (e) the grant is an extraordinary item that does not constitute
compensation of any kind for services of any kind rendered to the Company or a subsidiary and
which is outside the scope of an employment contract, if any; (f) the grant is not part of
normal or expected compensation or salary for any purposes, including, but not limited to,
calculating any severance, resignation, termination, redundancy, end of service payments,
bonuses, long-service awards, pension or retirement benefits or similar payments; (g) in the
event that a Participant is an employee of an affiliate or subsidiary of the Company, the
grant will not be interpreted to form an employment contract or relationship with the Company;
and furthermore, the grant will not be interpreted to form an employment contract with the
affiliate or subsidiary
that is the employer; (h) this grant shall not confer upon an individual any right to
continuation of employment by the Company or a subsidiary, nor shall this grant interfere in any
way with the Participant’s or the Company’s right to terminate employment at any time; (i) the
future value of the underlying shares of Common Stock is unknown and cannot be predicted with
certainty;

6

 

(j) notwithstanding any terms or conditions of the Plan to the contrary, in the event
of the termination of a Participant’s employment by the Company or a subsidiary for Cause, the
right to receive shares of Common Stock under this Award Agreement, if any, will terminate
effective as of the date that the Participant is no longer actively employed and will not be
extended by any notice period mandated under any federal, state, provincial, or local law
(including but not limited to the Worker Adjustment and Retraining Notification Act).

	21.	 	Amendment to the Plan: The Committee may terminate, amend, or modify the Plan and this
Program; provided, however, that no such termination, amendment, or modification of the Plan
or this Program may in any way adversely affect a Participant’s rights under this Award
Agreement, without the consent of the Participant or his designated beneficiary.
	 
	22.	 	Successor: All obligations of the Company under the Plan and this Award Agreement, with
respect to the Performance Units, shall be binding on any successor to the Company, whether
the existence of such successor is the result of a direct or indirect purchase, merger,
consolidation, or otherwise, of all or substantially all of the business and/or assets of the
Company.
	 
	23.	 	Applicable Laws and Consent to Jurisdiction: The validity, construction, interpretation, and
enforceability of this Award Agreement shall be determined and governed by the laws of the
State of Texas without giving effect to the principles of conflicts of law. For the purpose of
litigating any dispute that arises under this Award Agreement, the parties hereby consent to
exclusive jurisdiction and agree that such litigation shall be conducted in the federal or
state courts of the State of Texas.
	 
	24.	 	Severability: The provisions of this Award Agreement are severable and if any one or more
provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the
remaining provisions shall nevertheless be binding and enforceable.

	 	 	 	 	 	 	 
	 	 	TANDY BRANDS ACCESSORIES, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

7

 

Tandy Brands Accessories, Inc.

2006 Performance Unit Award Acknowledgement

**If this Acknowledgement is not dated, signed and returned as requested below, the award of

Performance Units pursuant to the Award Agreement attached will be null and void and there will be

no substitute award of Performance Units.**

Please acknowledge your agreement to participate in the Plan, receive Performance Based
Units (“Performance Units”) under the 2006 Performance Based Unit Award Agreement (“Award
Agreement”), attached, and to abide by all of the governing terms and provisions, by signing the
following acknowledgement and agreement (“Acknowledgement”) and returning it to the Chief Financial
Officer of the Company at 690 East Lamar Boulevard, Suite 200, Arlington, Texas 76011 within thirty
days of receipt.

Agreement to Participate

By signing this Acknowledgement and returning it to the Chief Financial Officer of the Company, I
acknowledge that I have read the Plan and the Award Agreement dated November 1, 2006, and that I
fully understand all of my rights under the Plan and the Award Agreement, as well as all of the
terms and conditions which may limit my eligibility to retain or receive the Performance Units or
shares of Common Stock issued to me pursuant to the Plan and the Award Agreement.

I further acknowledge and agree that the Performance Units subject to the Award Agreement shall
vest and the restrictions resulting in the forfeiture of the Performance Units shall lapse, if at
all, only during the period of my service to the Company or a subsidiary or as otherwise provided
in the Award Agreement (not through the act of being granted the Performance Units).

I further acknowledge and agree that nothing in the Award Agreement or the Plan shall confer on me
any right with respect to future awards or continuation of my service to the Company or a
subsidiary.

I acknowledge receipt of a copy of the Plan, represent that I am familiar with the terms and
provisions thereof, and hereby accept the Award subject to all of the terms and provisions hereof
and thereof. I have reviewed the Award Agreement and the Plan in their entirety, have had an
opportunity to obtain the advice of counsel prior to executing this Acknowledgement, and fully
understand all provisions of this Acknowledgement, the Award Agreement and the Plan.

I further acknowledge that the tax consequences associated with the Award under the Award Agreement
are complex and that the Company has urged me to review the federal, state, and local tax
consequences of the award of Performance Units under the Award Agreement with my own tax advisors.
I am relying solely on such advisors and not on any statements or representations of the Company or
any of its agents. I understand that I, and not the Company, shall be responsible for my own tax
liability that may arise as a result of the Award Agreement.

	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	[name of participant]

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