Document:

Exhibit 10.2

Exhibit 10.2

Supply and Licensing Agreement Between

Quatech, Inc. and

Socket Mobile, Inc.

This Agreement, effective as of September 30, 2009 (“Effective Date”), is made and entered into by
and between QuaTech, Inc., (“QUATECH”), an Ohio Corporation with its principal place of business at
5675 Hudson Industrial Parkway, Hudson, Ohio 44236 and Socket Mobile, Inc. (“SOCKET”), a Delaware
Corporation, having its principal place of business at 39700 Eureka Drive, Newark, California
94560, collectively hereafter referred to as the “Parties”. QUATECH is a wholly owned subsidiary
of DPAC Technologies Corp., a California Corporation, located at 5675 Hudson Industrial Parkway,
Hudson, Ohio 44236.

WHEREAS SOCKET is selling to QUATECH the designs, engineering specifications and related
documentation, software drivers and exclusive marketing rights for its serial products under an
Asset Purchase Agreement dated September 30, 2009 (“Purchase Agreement”);

WHEREAS the sale of the serial products to QUATECH includes the right for QUATECH to manufacture or
have manufactured the serial products. In connection with this right, QUATECH and SOCKET have
agreed for QUATECH to purchase SOCKET’s HIS3 chip from SOCKET under this Agreement;

WHEREAS the serial products being sold to QUATECH include SOCKET’S Cordless Serial Adapter (“CSA”),
QUATECH and SOCKET have agreed the purchase of the CSA only includes the design implementation
currently being marketed and sold along with SOCKET’s serial products and SOCKET shall license to
QUATECH hereunder SOCKET’S firmware implemented within the CSA that provides Bluetooth
functionality along with the CSA’s Configuration Utilities.

NOW THEREFORE in consideration for the mutual covenants and obligations set forth herein, the
parties hereby agree as follows:

	1.	 	TERM
	 
	 	 	The term of this Agreement shall commence on the Effective Date and shall terminate ten (10)
years after such date, unless otherwise terminated or canceled by either party as provided
herein. This Agreement shall automatically renew for additional one (1) year terms unless one
of the Parties notifies the other in writing that it does not desire to renew the Agreement at
least sixty (60) days prior to the expiration date.

QUATECH and SOCKET Supply Agreement

 

 

 

	2.	 	PRODUCTS
	 
	 	 	HIS3 Chip The HIS3 chip is an interface chip owned and manufactured by SOCKET and
used in SOCKET products including its serial products as more fully described in Appendix A.
This Agreement enables QUATECH to purchase the HIS3 Chip from Socket for use in all QUATECH
products (including but not limited to the CSA)(“QUATECH Products”).
	 
	 	 	Socket Bluetooth BlueLab Application Code and Configurator Utilities (“Software”). The
Bluetooth BlueLab Application Code is the Bluetooth firmware that runs embedded within the CSA.
The Configurator Utilities are used on a desktop or notebook computer to configure the BlueLab
Application Code firmware when the CSA is plugged into a desktop or notebook. The Software is
described in more detail in Appendix B. This Agreement licenses QUATECH to distribute this
Software with the CSA purchased under the Purchase Agreement.
	 
	 	 	CSA Product. A limited quantity of the Cordless Serial Adapter product is available due
to the end of life status of the BC02 Bluetooth chip designed into this product. SOCKET has
manufactured and holds in its inventory approximately 1,700 CSA units. SOCKET agrees to hold
these units for purchase by QUATECH, and QUATECH agrees to purchase these units no later than
March 31, 2010 at SOCKET’s cost of $35.24 per unit. In addition, SOCKET has in its inventory
approximately 2,100 BC02 modules at a cost of $15.65 per unit which have been removed from
SOCKET’s price lists as an end of life product. These modules represent the likely last
available supply that could be used to build additional CSA products. QUATECH agrees to advise
SOCKET no later than November 30, 2009 whether QUATECH will commit to a) purchase some or all of
these modules or b) instruct SOCKET to build additional CSA products with these modules that
QUATECH will commit to purchase and which SOCKET agrees to build if so ordered by QUATECH.
After November 30, 2009 or upon being advised by QUATECH that some or all of the BCO2 modules
are not needed, SOCKET has the right to dispose of any BC02 modules not needed by QUATECH.
	 
	3.	 	SOFTWARE AND TEMPORARY LICENSE OF SOCKET MOBILE I/P
	 
	 	 	License and Distribution Rights. QUATECH is granted a worldwide perpetual royalty free
license to use, display and distribute the Software and related technical and user documentation
in object code format with the CSA product acquired under the Purchase Agreement. SOCKET shall
supply QUATECH with master copies of the Software (including source code of the Configurator
Utilities ) along with all technical and user documentation that describes the use of the
Software. QUATECH is also granted a source code license for the Configurator Utilities and the
right to create derivative works of this product and its documentation and to use, modify,
display and distribute all such derivative works. QUATECH shall provide SOCKET with a source
code copy and related documentation of all derivative works to enable SOCKET to provide second
level support for the CSA.
	 
	 	 	Software Support and Warranty.  The Software is supplied “as is”. Bug fixes that
correct conditions that keep the Software from operating in accordance with its specifications
shall be made by Socket upon request at no charge to QUATECH. All other modifications if any
requested by QUATECH shall be made by SOCKET at SOCKET’S discretion at a non-recurring
engineering fee to be mutually agreed at the time of such request based on fees common to the
industry for software development. SOCKET shall also provide QUATECH with second level technical
support in answering technical questions regarding the Software.
	 
	 	 	Socket Mobile Intellectual Property (I/P). Socket Mobile I/P used by SOCKET on its
serial products consists of the name ‘Socket Mobile’ and the logo ‘Socket’. These marks have
been used on labels, data sheets, manuals, product packaging and on driver software. Certain
products being purchased by QUATECH may initially contain Socket Mobile I/P. It is the intent
of the parties
that QUATECH will update and remove Socket Mobile I/P and replace it with Quatech I/P on data
sheets, manuals, packaging and driver software and will begin to affix a sticker to product
labels or create new labels no later than December 31, 2009. QUATECH is granted a royalty-free
license through December 31, 2009 to manufacture and distribute purchased products containing
Socket Mobile I/P.

QUATECH and SOCKET Supply Agreement

 

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	4.	 	HIS3 CHIP
	 
	 	 	Right to incorporate the chip into QUATECH Products. QUATECH is granted the right to use
the HIS3 chip in all QUATECH Products. The HIS3 chip may not be sold as a stand-alone chip
without the express written permission of SOCKET.
	 
	 	 	Technical Support. QUATECH shall provide first level support to its customers for its
serial products containing the HIS3 chip. SOCKET shall provide second level support and training
services to QUATECH for the HIS3 chip Monday through Friday during SOCKET’s normal business
hours.
	 
	 	 	Escrow of HIS3 Engineering specification documentation. SOCKET shall arrange to place
and keep current the most recent engineering drawings and specifications for its HIS3 chip as
defined in the Escrow Service Agreement to be mutually agreed between the parties. The escrow
shall be established under a Master Beneficiary Three-Party Escrow Service Agreement between
QUATECH, SOCKET and Iron Mountain Intellectual Property Management, Inc. , a copy of which is
attached hereto as Appendix C (hereafter referred to as the “Escrow Agreement”). The Escrow
Agreement shall provide for the release of the engineering drawings and specifications with a
license to manufacture and sell the HIS3 chip for use in QUATECH Products in the event that
SOCKET becomes insolvent or otherwise declares bankruptcy, in the event SOCKET breaches this
Agreement or in the event SOCKET fails to function as a going concern or to operate in the
ordinary course, each as more fully described in the Escrow Agreement.
	 
	 	 	Warranty of the HIS3 Chip. SOCKET shall warrant the HIS3 chip to perform in accordance
with its specifications for a period of fifteen months from date of receipt by QUATECH in
accordance with its normal warranty policy as specified in Appendix D.
	 
	 	 	Sale to Government. If QUATECH sells its QUATECH Products containing the HIS3 chip to
the United States Federal Government either directly or indirectly, or through the General
Services Administration (“GSA”), California Multiple Award Schedule (“CMAS”), or other
government multiple award schedule contracts, SOCKET agrees to provide any representations or
certifications to QUATECH or any of QUATECH’S U.S. Federal Government end-users as may be
required, including but not limited to a Letter of Supply required to add the QUATECH Products
to QUATECH’s GSA Schedule. SOCKET agrees to furnish the HIS3 chips needed by QUATECH to fulfill
any GSA, CMAS, or other government multiple award schedule contracts or similar contract
obligations under any schedule contract, and to accept any government flow-down provisions,
including but not limited to, the United States Government Federal Acquisition Regulations
(“FARs”) and its supplements, Defense FARs, or NASA FARs, whether for resale or internal use.

QUATECH and SOCKET Supply Agreement

 

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	5.	 	HIS3 CHIP ORDERS/RESCHEDULE RIGHTS
	 
	 	 	QUATECH shall order HIS3 chips by issuing and delivering to SOCKET written purchase orders
(“Purchase Orders”). QUATECH shall order a minimum of 1,000 HIS3 chips per quarter for delivery
during the six (6) quarters commencing with the quarter ending December 31, 2009. Delivery dates
specified in the Purchase Orders shall be consistent with minimum lead time guidelines supplied
by SOCKET from time to time, unless otherwise agreed between the parties. SOCKET shall have
three (3) business days within which to either accept or reject a submitted Purchase Order and
shall submit an order confirmation to QUATECH . Purchase Orders that are not rejected shall be
deemed accepted by SOCKET. Subject to the Purchase Order Reschedule Table referred to below,
Purchase Orders are firm and may not be cancelled after acceptance by SOCKET.
	 
	 	 	Purchase Order Reschedule Table:
	 
	•	 	Purchase Orders for delivery dates due within 30 days shall be firm
	 
	•	 	Purchase Orders for delivery dates due within 31 days to 60 days may be up to 50%
rescheduled
	 
	•	 	Purchase Orders for delivery dates due in greater than 60 days may be up to 100%
rescheduled
	 
	 	 	No Purchase Orders may be rescheduled more than three times and for no more than six months in
total from the original due date.
	 
	6.	 	NON-BINDING FORECASTS FOR SUPPLY OF THE HIS3 CHIP
	 
	 	 	QUATECH shall provide SOCKET at least quarterly a rolling six month non-binding forecast of its
requirements for the HIS3 chip to aid SOCKET in planning its manufacturing schedules and
inventory levels.
	 
	7.	 	PRICING
	 
	 	 	The purchase price for the HIS3 chip will be $19.75 per chip until a
cumulative total of 75,000 chips have been purchased by QUATECH under
this Agreement. QUATECH may, at its option, place an order with
SOCKET for delivery of all 75,000 chips less quantities previously
ordered at a price of $15.75 per chip. Delivery dates for this order
must be specified within a six month period from the date of order.
All HIS3 chips will be shipped FOB Socket’s plant. The price of the
HIS3 chip includes the cost of freight. Subsequent to the purchase by
QUATECH of the initial 75,000 chips, the purchase price will be
reduced to $3.75 per chip.
	 
	8.	 	SPECIFICATIONS/CHANGES/END OF LIFE
	 
	 	 	SOCKET shall not make any modifications, improvements, alterations or
changes (hereinafter collectively referred to as “Changes”) to the
HIS3 chips as listed in the attached Appendix A during the term of
this Agreement that affect or may tend to affect form, fit, function,
appearance, reliability, or interchangeability without prior
notification to QUATECH in writing and only due to changes outside of
the control of SOCKET such as technical obsolescence of components of
the HIS3 chip. In the event Changes are required, SOCKET shall give
QUATECH a minimum of three months written notification of Changes
prior to proceeding and shall enable QUATECH to place a last buy order
for the current HIS3 chip.
	 
	 	 	QUATECH may, at its option, request that a test be performed on any
Changes to ensure the HIS3 chips as changed comply with
Specifications.

QUATECH and SOCKET Supply Agreement

 

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	9.	 	PACKAGING
	 
	 	 	SOCKET shall be responsible to provide packaging for the HIS3 chips of
the necessary quality, construction and strength to prevent damage in
transit. SOCKET shall bear all costs related to packaging, and to the
cartoning and packing, including drayage and palleting, if applicable.
	 
	10.	 	TRADEMARKS, LOGOS, LABELING
	 
	 	 	During the term of this Agreement, QUATECH is hereby granted a non-exclusive license to use at
its option the trademarks, service marks, trade names, product names, logos, designs, and other
designations or brands (the “Marks”) owned by SOCKET relating to the HIS3 chip in connection
with identifying that the QUATECH Products contain an HIS3 chip from SOCKET. QUATECH shall not
remove or deface any Marks appearing on the HIS3 chips or on any documentation provided by
SOCKET hereunder. QUATECH may indicate its relationship to SOCKET and refer to the HIS3 chip
and any marks relating thereto provided that such references are truthful and not misleading and
SOCKET is designated the owner of the Marks.
	 
	 	 	QUATECH is not granted any right, title or interest in the SOCKET Marks except as provided for
herein and in the Purchase Agreement, and acknowledges SOCKET’s right in and to the Marks and
agrees that any and all use of the Marks by QUATECH shall inure to the sole benefit of SOCKET.
QUATECH agrees that it shall not take any action inconsistent with the ownership of the Marks
and agrees not to challenge SOCKET’s rights in or attempt to register any of the Marks or any
mark confusingly similar thereto.
	 
	 	 	Nothing in this Agreement grants SOCKET any right to use, or right, title or interest in any
Marks owned by QUATECH or its affiliates and subsidiaries.
	 
	11.	 	PAYMENTS
	 
	 	 	All prices are in U.S. currency. SOCKET shall bill QUATECH at the time that HIS3 chips are
shipped. Payments are due forty-five (45) days after QUATECH’s receipt of invoice. In the case
of deliveries made in installments, each shipment shall be paid for when delivered and invoiced
without regard to the other scheduled deliveries. SOCKET shall not be required to ship
additional HIS3 chip to QUATECH while undisputed payments are delinquent (all disputes by
QUATECH must be in good faith).

QUATECH and SOCKET Supply Agreement

 

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	12.	 	REPRESENTATIONS AND WARRANTIES
	 
	 	 	SOCKET makes the following representations and warranties to QUATECH,
each of which is true and correct on the date hereof and shall
continue to be true and correct at all times during the term of this
Agreement, and hereby covenants as follows:

	 	(i)	 	SOCKET has all requisite corporate power and authority to execute, deliver and
perform this Agreement and any other agreements contemplated hereby and to consummate
the transactions contemplated hereby.
	 
	 	(ii)	 	The HIS3 chips are new and shall be free and clear of all liens and
encumbrances.
	 
	 	(iii)	 	The HIS3 chips will be covered by the fifteen month warranty set out in
Appendix D.
	 
	 	(iv)	 	The HIS3 chip are suitable for manufacture and incorporation into the QUATECH
Products as contemplated by this Agreement, and fully comply with all applicable codes,
standards, specifications, laws and regulations and have all required approvals,
certifications and licensing (collectively “Certifications”) in each region/country
where the HIS3 chips have been obtained and will be sold. As appropriate, SOCKET
shall provide evidence to such effect including all Certifications as required by
QUATECH.
	 
	 	(v)	 	All HIS3 chips meet the latest requirements of the European environmental
directives 2002/95/EC on the restriction of the use of certain hazardous substances in
electric and electronic equipment (RoHS) and 2002/96/EC on waste electrical and
electronic equipment (WEEE). Upon request SOCKET shall certify its compliance by
signing a ‘Supplier Declaration of Conformity’.
	 
	 	(vi)	 	The HIS3 chips and their use do not infringe upon any copyright, patent,
trademark, trade secret or other proprietary or intellectual property right of any
third party and as of the Effective Date of this Agreement, SOCKET has no knowledge of
any suits or proceedings, pending or threatened, alleging any such infringement.
	 
	 	(vii)	 	All documents and statements provided by SOCKET under this Agreement,
including, but not limited to, the Country of Origin of the HIS3 chips, Export Control
Classification Numbers (“ECCN”), Supplier Declaration of Conformity and Certificate of
Insurance are true and correct and may be relied upon by QUATECH.

	 	 	SOCKET warrants the HIS3 chips against defects in material and workmanship, and warrants that
they will function substantially in conformance with their published specification, under normal
use and service for the time periods and in accordance with the terms and conditions specified
in Appendix B.
	 
	 	 	EXCEPT FOR (I) ANY BREACH OF SECTION 18 OR (II) SOCKET’S INDEMNIFICATION OBLIGATIONS IN SECTION
14, SOCKET IS NOT RESPONSIBLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES RESULTING FROM BREACH OF
ANY EXPRESS OR IMPLIED WARRANTY, INCLUDING DAMAGE TO PROPERTY AND, TO THE EXTENT PERMITTED BY
LAW, DAMAGES FOR PERSONAL INJURY. THIS WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES INCLUDING
IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
	 
	 	 	Some states do not allow limitation of implied warranties, or the exclusion or limitation of
incidental or consequential damages, so that the above limitations or exclusions may not apply
to QUATECH . This warranty gives QUATECH specific legal rights and QUATECH may also have other
rights which vary from state to state.

QUATECH and SOCKET Supply Agreement

 

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	13.	 	QUALITY CONTROL
	 
	 	 	SOCKET’s Responsibilities for specification conformance:
	 
	 	 	SOCKET maintains a quality control system which is designed to assure that all materials and
services conform to the specifications as described in the data sheets. SOCKET performs all
inspections and tests required to substantiate material conformance to specifications.
	 
	 	 	SOCKET Corrective Action:
	 
	 	 	SOCKET shall take prompt action to isolate and correct conditions which result in material
non-conformance to specifications.
	 
	14.	 	INTELLECTUAL PROPERTY/PATENT INDEMNIFICATION
	 
	 	 	Indemnification by SOCKET: SOCKET will defend, indemnify and hold
QUATECH, its parent, affiliates and subsidiaries and their officers,
directors and employees harmless from and against any and all claims,
damages, costs, expenses (including but not limited to, reasonable
attorneys’ fees and costs) or liabilities which may result, in whole
or in part, from any warranty or product liability claim or any
property damage or personal injury (including death) brought against
QUATECH to the extent the claims result solely from the HIS3 chips or
Software supplied by SOCKET to QUATECH hereunder, or any claim that
the sale or use or distribution of the HIS3 chips or Software
infringes any patent, copyright, trademark, trade secret, or other
proprietary or intellectual property right of any third party
(hereinafter, “ Claim”) brought against QUATECH and SOCKET will pay
all claims, damages, costs, expenses (including but not limited to
reasonable attorneys’ fees and costs) or liabilities which result from
any of the above, provided that SOCKET is promptly informed in writing
and furnished a copy of each communication, notice, or other action
relating to the above and is given the authority, information, and
assistance necessary to defend or settle such Claim, provided that
SOCKET may not settle any Claim without QUATECH’s prior written
consent, such consent not to be unreasonably withheld. QUATECH shall
have the right, at its expense, but not the obligation to participate
in any such Claim.
	 
	 	 	The above indemnification shall not apply to the extent awards,
judgments, decrees and settlements result from modification, misuse,
abuse, or misrepair of HIS3 chips or Software by or on behalf of or
authorized by QUATECH or QUATECH’s customer or the user of the HIS3
chips or Software or by defects in the design, manufacture, or
operation of HIS3 chips or Software when such defects are attributable
solely to use in conjunction with QUATECH products.
	 
	 	 	Should the HIS3 chips or Software delivered by SOCKET hereunder be
adjudged infringing, or in SOCKET’s opinion be likely to be adjudged
infringing any Patent (defined below), then SOCKET shall, at its
expense and option either (i) procure for QUATECH the right to use
such HIS3 chips or Software free of any liability or infringement, or
(ii) replace such HIS3 chips or Software with non-infringing
substitutes or modify such HIS3 chips or Software to be
non-infringing. If neither alternative (i) or (ii) can be
accomplished, then SOCKET shall refund QUATECH’s full purchase price
and accept return of such HIS3 chips or Software.
	 
	 	 	Indemnification by QUATECH : QUATECH will defend, indemnify and hold
SOCKET harmless from any patent, copyright, trademark, or other
intellectual property right (hereinafter, “Patent”) action brought
against SOCKET to the extent that it is based solely on a claim that
QUATECH Products manufactured or developed and supplied by QUATECH to
its customers (excluding SOCKET products, HIS3 chips or Software)
hereunder constitute an infringement of any Patent
right and QUATECH will pay all damages and costs awarded against SOCKET in such action which are
attributable to such claim, provided that QUATECH is promptly informed in writing and furnished
a copy of each communication, notice, or other action relating to the alleged infringement and
is given the authority, information, and assistance necessary to defend or settle such claim.
SOCKET shall have the right, at its expense, to participate in any such claim or action.

QUATECH and SOCKET Supply Agreement

 

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	15.	 	LIMITATION OF LIABILITY
	 
	 	 	EXCEPT FOR (I) ANY BREACH OF SECTION 12, (II) EITHER PARTY’S
INDEMNIFICATION OBLIGATIONS IN SECTION 14 OR (III) ANY BREACH OF
SECTION 18, EITHER PARTY’S ENTIRE LIABILITY ARISING OUT OF THIS
AGREEMENT AND/OR SALE, DISTRIBUTION, USE OR PERFORMANCE OF ANY PRODUCT
OR ANY BREACH THEREOF SHALL BE LIMITED TO THE GREATER OF (1) THE TOTAL
AMOUNT PAID BY QUATECH FOR PURCHASES OF HIS3 CHIPS DURING THE TWENTY
FOUR (24) MONTH PERIOD PRECEDING THE DATE THE INITIAL CLAIM IS MADE
AGAINST A PARTY UNDER OR WITH RESPECT TO THIS AGREEMENT, OR (2) THE
TOTAL VALUE OF THE HIS3 CHIPS THAT ARE THE SUBJECT OF THE CLAIM.
	 
	 	 	EXCEPT FOR (I) ANY BREACH OF SECTION 18 OR (II) EITHER PARTY’S INDEMNIFICATION OBLIGATIONS IN
SECTION 14, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR LOSS OF USE, DATA OR PROFITS, OR ANY
SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES, ARISING OUT OF OR IN CONNECTION WITH
THIS AGREEMENT OR THE USE, SALE, LICENSE, DISTRIBUTION OR PERFORMANCE OF PRODUCTS OR ANY BREACH
THEREOF, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY, WHETHER IN AN ACTION FOR CONTRACT OR
TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, AND WHETHER OR NOT EITHER PARTY HAS BEEN ADVISED OF
THE POSSIBILITY OF SUCH DAMAGES.
	 
	16.	 	COMPLIANCE WITH LAWS
	 
	 	 	Both Parties shall in the performance of this Agreement comply with
all applicable laws, executive orders, regulations, ordinances,
proclamations, demands and requisitions of national governments, or of
any state or local governmental authority which may now or hereafter
govern performance hereunder including laws dealing with the
certification and qualification of products and with the export of
products.
	 
	17.	 	GOVERNING LAW
	 
	 	 	This Agreement and any questions concerning its validity,
construction, or performance shall be governed by the laws of the
State of Ohio, United States of America.
	 
	18.	 	NON-DISCLOSURE AGREEMENT
	 
	 	 	Except as required by law, neither party will disclose the terms and
conditions of this Agreement to any third party without the prior
written consent of the other party. The Mutual Non-Disclosure
Agreement between SOCKET and DPAC Technologies on behalf of Quatech dated July 10, 2008 applies
to and is incorporated into this Agreement.

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	19.	 	FORCE MAJEURE
	 
	 	 	Neither party shall be responsible for any failures or delays under
this Agreement due to causes beyond its reasonable control and without
its fault or negligence, including, without limitation, civil
insurrection, riot, labor or transportation strikes, fire, storm,
flood, earthquake, volcanic eruption, explosion, war, embargoes, acts
of God, acts of government or any agency thereof, or judicial action.
Upon the giving of prompt notice of any such cause to the other party,
the time of performance by the party so affected shall be extended to
the extent and for the period that its performance of said obligations
is prevented by such causes provided, however, that if such causes
delay performance by more than ninety (90) days, either party shall
have the right to terminate this Agreement without further obligation
hereunder.
	 
	20.	 	TAXES AND DUTIES
	 
	 	 	Neither party shall be responsible for taxes and duties of the other
party. QUATECH shall provide to SOCKET a valid exemption certificate
or other document acceptable to taxing or custom authorities.
	 
	21.	 	ASSIGNMENT
	 
	 	 	Neither party shall assign this Agreement nor any obligations or
rights hereunder without the prior written consent of the other party.
Written consent will not unreasonably be withheld, delayed or
conditioned.
	 
	22.	 	RELATIONSHIP
	 
	 	 	It is expressly agreed that SOCKET and QUATECH are acting hereunder as independent contractors
and under no circumstances shall any of employees of one party be deemed the employees of the
other for any purpose. This Agreement shall not be construed as authority for either party to
act for the other party in any agency or other capacity, or to make commitments of any kind for
the account of or on behalf of the other.
	 
	23.	 	NOTICES
	 
	 	 	Any notice required or permitted to be given hereunder shall be in
writing and shall be sent by registered or certified mail, return
receipt requested, or else hand-delivered, addressed as follows:

	 	 	 
	To QUATECH:

	 	QUATECH Inc.
	 

	 	Attention: Steve Runkel, President and CEO
	 

	 	5875 Hudson Industrial Parkway
	 

	 	Hudson, Ohio 44236
	 
	 	 
	To SOCKET:

	 	SOCKET Mobile, Inc.
	 

	 	Attention: Micheal Gifford, Executive VP
	 

	 	39700 Eureka Drive
	 

	 	Newark, CA 94560

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	24.	 	 SEVERABILITY OF PROVISIONS
	 
	 	 	In the event that any provision of this Agreement shall be held to be
invalid or unenforceable, the same shall not affect in any respect
whatsoever the validity or enforceability of the remainder of this
Agreement.
	 
	25.	 	 WAIVER
	 
	 	 	The failure of either party to enforce, in any one or more instances,
any of the terms or conditions of this Agreement shall not be
construed as a waiver of the future performance of any such term or
condition.
	 
	26.	 	TERMINATION
	 
	 	 	Either party may terminate this Agreement at any time for the other party’s uncured default
provided that the terminating party has given to the other party thirty (30) days prior written
notice of such default and its intention to terminate. After giving such notice, a party may
suspend its own performance under this Agreement until such default is cured. Termination shall
not constitute a party’s sole remedy for default. Default shall include, but is not limited to:

	 	a)	 	Failure of QUATECH to pay undisputed invoices (all disputes must be in good faith) when
due and this is not rectified within thirty (30) days of notice from SOCKET;
	 
	 	b)	 	Insolvency — Either party may terminate this Agreement effective immediately and
without liability upon written notice to the other party if the other party (i) becomes
insolvent, (ii) declares bankruptcy, (iii) becomes the subject of any proceedings seeking
relief, reorganization, or rearrangement under any laws relating to insolvency, (iv) makes
an assignment for the benefit of creditors, or (v) commences the liquidation, dissolution,
or winding up of its business.

	27.	 	 ENTIRE AGREEMENT
	 
	 	 	This contract contains the entire agreement between the Parties, and no modifications
or waiver of any of the provisions, or any future representation, promise, or
addition shall be binding upon the parties unless agreed to in writing. All purchase
orders/order acknowledgements shall be subject only to the terms and conditions of
this Agreement. If any of the provisions of SOCKET’s acknowledgments or other
writings are in addition to or in conflict with the terms and conditions of this
Agreement or are ambiguous, those additional, conflicting or ambiguous terms and
conditions are expressly rejected and the terms and conditions of this Agreement
shall govern.

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	SOCKET MOBILE, INC.
	 	QUATECH, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Kevin J. Mills
	 	By:
	 	/s/ Steven D. Runkel	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name: Kevin J. Mills
	 	 	 	Name: Steven D. Runkel	 	 
	 

	 	Title:   President and CEO
	 	 	 	Title:   President	 	 
	 

	 	Date:   September 30, 2009
	 	 
	 	Date:   September 30, 2009	 	 

QUATECH and SOCKET Supply Agreement

 

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APPENDIX A

SOFTWARE SPECIFICATIONS

The following software programs constitute the Software for the CSA:

Socket Bluetooth BlueLab Application Code (Binary code only)

Virtual Machine Code implemented as firmware within the CSA

Configurator Utilities (Binary Code and Source Code)

Windows XP — Socket Cordless Serial Adapter Configuration Utility

ScktSdApp.exe — configuration program

Inpout32.dll — utility DLL

QUATECH and SOCKET Supply Agreement

 

 

 

APPENDIX B

HIS3 CHIP DATA SHEET

FEATURES

	•	 	Supports PC Card and CompactFlash® (CF) bus interfaces
	 
	•	 	512-byte FIFOs in enhanced mode
	 
	•	 	Fully software compatible with industry standard 16C550 UARTs, supports Additional
advanced features found in the 16C950
	 
	•	 	Maximum baud rate 6.0 Mbps
	 
	•	 	Readable FIFO levels
	 
	•	 	Flexible clock prescaler can divide by any number between 1 and 31. Allows the use of 7.3728 MHz,
14.7456 MHz or 18.432 MHz crystals to achieve standard baud rates
	 
	•	 	Detection of bad data in the receiver FIFO
	 
	•	 	Readable out-of-band flow control status
	 
	•	 	Automated out-of-band flow control using CTS#/RTS# and DSR#/DTR#
	 
	•	 	Transmitter idle interrupt (shift register and FIFO empty)
	 
	•	 	Software reset
	 
	•	 	Arbitrary trigger levels for receiver and transmitter FIFO interrupts
	 
	•	 	Sleep mode (low operating current)
	 
	•	 	System clock 3 to 24 MHz
	 
	•	 	3.3 V or 5 V operation
	 
	•	 	80-pin TQFP package (10x10x1 mm) recommended for new designs
	 
	•	 	Operating temperature range of -20 to +100° Celsius
	 
	•	 	Broad host/client compatibility
	 
	•	 	Device drivers available for Windows CE/9x/Me/2000/XP/Vista
	 
	•	 	Production test sofware available
	 
	•	 	Module Mode feature allows the mDP to function as 2 independent UARTs
	 
	•	 	8 General Purpose I/O pins
	 
	•	 	Virtual parallel UART

(Appendix B continued on next page)

QUATECH and SOCKET Supply Agreement

 

 

 

APPENDIX B (Continued)

HIS3 CHIP DATA SHEET

Dual Serial Ports Interfaced to CF/PC Card Bus

The mobilityIC Dual Port or HIS3 is a single chip implementation of two serial ports interfaced to
the PC Card or CF buses. A complete PC Card or CF dual serial port peripheral can be built with a
mobilityIC dual port, a crystal, an EEPROM and two serial transceiver chips. Such a design
offers PC Card/CF compliance, high performance, low power consumption and minimum component count.
The HIS3 is designed to provide all the functions necessary for a universal receiver transmitter
subsystem interface, such as for WAN cards (GPRS, CDMA, EDGE, UMTS) and GPS. The HIS3 uses a 16C550
compliant core with an expanded 512-byte deep receiver
first-in-first-out (FIFO) memory and 512-byte deep transmitter FIFO memory. The deep FIFOs reduce
the CPU overhead and allow higher data rates. The HIS3 contains two high performance UARTs offering
data rates up to 6.0 Mbps each. The HIS3 connects directly to a serial EEPROM to store nonvolatile
information which consists of the PC Card/CF tuples and initial configuration information.
Attribute memory consists of a 248-byte Card Information Structure (CIS), a 16-
byte initialization area, and 15 Configuration Registers.

The HIS3 keeps power consumption to a minimum by providing features such as fully programmable
clock division and sleep modes when a function is not being used. The HIS3 can operate at either
3.3 or 5 volts and does not require external regulation to operate in low or high voltage
environments. Technology examples include standard or high speed serial ports, bar code
scanners, high-speed radios (GPRS, CDMA, EDGE, UMTS), RFID readers, blood analyzers, etc.

The HIS3 design is extremely flexible and can be incorporated into:

	•	 	Standard serial ports
	 
	•	 	Bar code scanners
	 
	•	 	High-speed radios
	 
	•	 	RFID readers
	 
	•	 	Blood analyzers
	 
	•	 	Other industrial applications

QUATECH and SOCKET Supply Agreement

 

 

 

APPENDIX C

FORM OF ESCROW AGREEMENT

(To be attached)

QUATECH and SOCKET Supply Agreement

 

 

 

APPENDIX D

Limited Hardware Warranty

Socket Mobile, Inc. warrants the HIS3 chip against defects in material and workmanship, under
normal use and service, for 15 months from the date of purchase. The warranty does not extend to
damage caused by a manufacturing process of soldering chips to an electronic board.

Incompatibility is not a defect covered by Socket’s warranty. During the warranty period, Socket
will, at its option, repair or replace defective chips at no charge.

Socket will replace or repair the product with new parts and the returned product becomes Socket’s
property. Socket warrants the repaired or replaced products to be free from defects in material or
workmanship for ninety (90) days after the return shipping date, or for the duration of the
original warranty period, whichever is greater.

This warranty does not cover the replacement of products damaged by abuse, accident, misuse or
misapplication, nor as a result of service or modification other than by Socket.

SOCKET IS NOT RESPONSIBLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES RESULTING FROM BREACH OF ANY
EXPRESS OR IMPLIED WARRANTY, INCLUDING DAMAGE TO PROPERTY AND, TO THE EXTENT PERMITTED BY LAW,
DAMAGES FOR PERSONAL INJURY. THIS WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES INCLUDING IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

Some states do not allow limitation of implied warranties, or the exclusion or limitation of
incidental or consequential damages, so the above limitations or exclusions may not apply to you.
This warranty gives you specific legal rights, and you may also have other rights that vary from
state to state. This product may contain fully tested, recycled parts, warranted as if new. For
warranty information, call +1 (510) 744-2700.

	 	 	 
	PRODUCT DISPOSAL: The HIS3 chips should not be placed in municipal waste. Please
check local regulations for disposal of electronic products.exv10w1

Exhibit 10.1

3COM CORPORATION

2003 STOCK PLAN, AS AMENDED

FORM OF PERFORMANCE-BASED RESTRICTED STOCK UNIT

GRANT AWARD AGREEMENT

     THIS PERFORMANCE-BASED RESTRICTED STOCK UNIT GRANT AWARD AGREEMENT is made on
<<date>>, (the “Grant Date”), by and between 3Com Corporation (the “Company”), and
<<recipient>> (the “Participant”).

     The Company desires to issue and the Participant desires to acquire Restricted Stock Units as
herein described, pursuant to the Company’s 2003 Stock Plan, as amended (the “Plan”), on the terms
and conditions set forth in this Performance-Based Restricted Stock Unit Grant Award Agreement,
including any country-specific terms and conditions set forth in any addendum hereto (collectively,
the “Award Agreement”), and the Plan, the terms and conditions of which are incorporated herein by
reference. Unless otherwise defined herein, capitalized terms shall have the meaning given to them
in the Plan.

     IT IS AGREED between the parties as follows:

     1. Issuance of Restricted Stock Units. On the Grant Date, the Company shall issue to
the Participant, subject to the provisions hereof and the Plan, <<insert number>>
Restricted Stock Units (the “RSUs”). Each RSU shall be the equivalent of one share of Common
Stock. No Shares shall be issued upon execution of this Award Agreement. Unless and until the
RSUs have been earned and vested in accordance with this Award Agreement, the Participant shall
have no right to receive any Shares.

     2. Administration. All questions of interpretation concerning this Award Agreement
shall be determined by the Administrator in its sole discretion. All determinations by the
Administrator shall be final and binding upon all persons having an interest in this Award
Agreement.

     3. Earning, Vesting, and Conversion of RSUs.

          (a) Earning and Vesting. Subject to the terms and conditions of this Award Agreement
and the Plan, the total number of Earned RSUs, as that term is defined in Exhibit A hereto, shall
vest in accordance with the vesting schedule set forth in Exhibit A. The RSUs that become earned
and vested, as provided herein, shall be converted into an equivalent number of Shares of Common
Stock that will be distributed to the Participant upon vesting. In the event that any vesting
occurs on a weekend, holiday or other non-trading day on the applicable NASDAQ market, the
applicable RSUs shall become vested on the first trading day thereafter.

          (b) Issuance of Common Stock. Upon vesting of the Earned RSUs, except as set forth in
this Award Agreement or the Plan, the Company shall issue one or more certificates registered in
the name of the Participant for the appropriate number of Shares or use other appropriate means of
distributing the vested Shares of Common Stock, at its discretion, free of any restrictions on
transferability or forfeiture except for restrictions required by applicable laws and/or
regulations. Such Shares will be issued to the Participant as soon as practicable after the
vesting of the RSUs, but in any event, within the period ending on the later to occur of the date
that is 2 1/2 months from the end of (i) the Participant’s tax year that includes the applicable

			
	 	 	 
	Performance-Based RSU Agreement
	 	9/22/09

-1-

 

vesting date, or (ii) the Company’s tax year that includes the applicable vesting date (which
payment schedule is intended to comply with the “short-term deferral” exemption from the
application of Section 409A of the U.S. Internal Revenue Code (“Section 409A”). As a condition to
the issuance and delivery of the Shares, the Company may require the Participant to satisfy any
qualifications that may be necessary or appropriate, in the Company’s sole discretion, to evidence
compliance with any applicable law or regulation and to make any representation or warranty with
respect thereto as may be requested by the Company.

     4. Rights as a Stockholder. The Participant shall have no rights as a stockholder
with respect to the Shares until such time the Shares are issued to the Participant. Except as
provided in Section 14(a) of the Plan, no adjustment shall be made for dividends or distributions
or other rights for which the record date is prior to the date such Shares are issued.

     5. No Right of Continued Employment. The Participant understands and agrees that
neither the award of the RSUs nor any provision of the Plan or this Award Agreement shall confer
upon the Participant any right to continue as a Service Provider or interfere in any way with the
right of the Company, the Participant’s actual employer (the “Employer”) or the Participant to
terminate the Participant’s Service Provider relationship at any time.

     6. Termination of Award Agreement. In the event that the Participant’s Service
Provider relationship with the Company or the Employer is terminated for any reason, with or
without cause, the Participant’s rights under this Award Agreement or the Plan in any unvested RSUs
shall immediately and irrevocably terminate and the Participant shall immediately and irrevocably
forfeit all RSUs that are unvested as of the date of termination of the Participant’s active status
as a Service Provider. Further, if the Participant’s Service Provider relationship with the
Company or the Employer is terminated (whether or not in breach of any applicable law), the
Participant’s right to receive RSUs and vest under the Plan, if any, will terminate effective as of
the date that the Participant is no longer actively providing service and will not be extended by
any notice period mandated under applicable law (e.g., active service would not include a period of
“garden leave” or similar period pursuant to any applicable local law); the Administrator shall
have the exclusive discretion to determine when the Participant is no longer actively providing
service for purposes of the Plan and the RSUs granted pursuant to this Award Agreement.

     7. Withholding. Regardless of any action the Company or the Employer takes with
respect to any and all income tax (including U.S. federal, state or local taxes or non-U.S. taxes),
social insurance contributions, payroll tax, payment on account or other tax-related items related
to the Participant’s participation in the Plan and legally applicable to the Participant
(“Tax-Related Items”), the Participant acknowledges that the ultimate liability for all Tax-Related
Items is and remains the Participant’s responsibility and may exceed the amount actually withheld
by the Company and/or the Employer. The Participant further acknowledges that the Company and/or
the Employer (i) make no representations or undertakings regarding any Tax-Related Items in
connection with any aspect of the RSUs, including the grant of the RSUs, the vesting of RSUs, the
issuance of Shares upon vesting, the subsequent sale of any Shares acquired at vesting and/or the
receipt of any dividends; and (ii) do not commit to and are under no obligation to structure the
terms of the Award or any aspect of the RSUs to reduce or eliminate the Participant’s liability for
Tax-Related Items or to achieve any particular tax result. Furthermore, if the Participant has
become subject to tax in more than one jurisdiction between the Grant Date and the date of any
relevant taxable event, the Participant acknowledges that the Company and/or
the Employer (or former employer, as applicable) may be required to withhold or account for
Tax-Related Items in more than one jurisdiction.

			
	 	 	 
	Performance-Based RSU Agreement
	 	9/22/09

-2-

 

     Prior to any relevant taxable or tax withholding event, as applicable, the Participant will
pay or make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all
Tax-Related Items. In this regard, the Participant authorizes the Company and/or the Employer, or
their respective agents, at their discretion, to satisfy the obligation with respect to all
Tax-Related Items by one or a combination of the following: (a) withholding from the Participant’s
wages or other cash compensation paid by the Company and/or the Employer; or (b) withholding from
proceeds of the sale of Shares acquired upon vesting of the RSUs, either through a voluntary sale
or through a mandatory sale arranged by the Company (on the Participant’s behalf pursuant to this
authorization); or (c) withholding in Shares to be issued upon vesting of the RSUs.

     To avoid negative accounting treatment, the Company may withhold or account for Tax-Related
Items by considering applicable minimum statutory withholding amounts or other applicable
withholding rates. If the obligation for Tax-Related Items is satisfied by withholding in Shares,
the Participant is deemed, for tax purposes, to have been issued the full number of Shares subject
to the vested RSUs, notwithstanding that a number of the Shares is held back solely for the purpose
of paying the Tax-Related Items due as a result of any aspect of the Participant’s participation in
the Plan.

     Finally, the Participant shall pay to the Company or the Employer any amount of Tax-Related
Items that the Company or the Employer may be required to withhold or account for as a result of
the Participant’s participation in the Plan that cannot be satisfied by the means previously
described. The Company may refuse to issue or deliver the Shares, or the proceeds of the sale of
the Shares, if the Participant fails to comply with his or her obligations in connection with the
Tax-Related Items.

     8. Non-Transferability of RSUs. The Participant’s right and interest in the RSUs
awarded under this Award Agreement may not be sold, pledged, assigned, transferred or disposed of
in any manner, prior to the distribution of Common Stock in respect of vested RSUs.

     9. No Compensation Deferral. Neither the Plan nor this Agreement is intended to
provide for a deferral of compensation that would be subject to Section 409A. Instead, as stated
above, it is the intent of this Agreement to satisfy the “short-term deferral” exemption described
in U.S. Treasury Regulation §1.409A-1(b)(4). The Company reserves the right, to the extent the
Company deems necessary or advisable in its sole discretion, to unilaterally amend or modify the
Plan and/or this Agreement to ensure that no Awards (including, without limitation, the RSUs)
become subject to the requirements of Section 409A, provided however that the Company makes no
representation that the RSUs are not subject to Section 409A nor makes any undertaking to preclude
Section 409A from applying to the RSUs.

     10. Broker. The Shares acquired by the Participant under the Plan will be deposited
directly into the Participant’s brokerage account with the Company’s approved broker when vested
and the applicable obligations for Tax-Related Items have been satisfied.

     11. Nature of the Grant. In accepting the grant of RSUs, the Participant acknowledges
that:

          (a) the Plan is established voluntarily by the Company, is discretionary in nature and may be
modified, amended, suspended or terminated by the Company at any time;

			
	 	 	 
	Performance-Based RSU Agreement
	 	9/22/09

-3-

 

          (b) the grant of RSUs is voluntary and occasional and does not create any contractual or other
right to receive future awards of RSUs, or benefits in lieu of RSUs even if RSUs have been awarded
repeatedly in the past;

          (c) all decisions with respect to future grants of RSUs, if any, will be at the sole
discretion of the Company;

          (d) the Participant’s participation in the Plan is voluntary;

          (e) RSUs and the Shares subject to the RSUs are an extraordinary item that do not constitute
regular compensation for services of any kind rendered to the Company or to the Employer, and RSUs
are outside the scope of the Participant’s employment contract, if any;

          (f) RSUs and the Shares subject to the RSUs are not intended to replace any pension rights or
compensation;

          (g) RSUs and the Shares subject to the RSUs are not part of normal or expected compensation or
salary for any purpose, including, but not limited to, calculation of any severance, resignation,
termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension
or retirement benefits or similar payments and in no event should be considered as compensation
for, or relating in any way to, past services for the Company, the Employer or any Subsidiary;

          (h) the award of RSUs and the Participant’s participation in the Plan will not be interpreted
to form an employment contract or relationship with the Company or any Subsidiary;

          (i) the future value of the Shares is unknown and cannot be predicted with certainty;

          (j) in consideration of the grant of RSUs, no claim or entitlement to compensation or damages
arises from forfeiture of the RSUs and/or Earned RSUs resulting from termination of the
Participant’s employment or other service-providing relationship with the Company or the Employer
(for any reason whatsoever and whether or not in breach of any applicable law) and the Participant
irrevocably releases the Company and the Employer from any such claim that may arise; if,
notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have
arisen, the Participant shall be deemed irrevocably to have waived his/her entitlement to pursue
such claim; and

          (k) RSUs and the benefits under the Plan, if any, will not automatically transfer to another
company in the case of a merger, takeover or transfer of liability.

     12. No Advice Regarding Award. The Company is not providing any tax, legal or
financial advice, nor is the Company making any recommendations regarding the Participant’s
participation in the Plan, or the Participant’s acquisition or sale of the Shares. The Participant
is hereby advised to consult his or her own personal tax, legal and financial advisors regarding
his or her participation in the Plan before taking any action related to the Plan.

     13. Registration. Any Shares acquired pursuant to this Award Agreement shall be
registered and/or deposited in the name of the Participant.

			
	 	 	 
	Performance-Based RSU Agreement
	 	9/22/09

-4-

 

     14. Imposition of Other Requirements. The Company reserves the right to impose other
requirements on the Participant’s participation in the Plan, on the RSUs and on any Shares acquired
under the Plan, to the extent the Company determines it is necessary or advisable in order to
comply with local law or facilitate the administration of the Plan. Furthermore, the parties
hereto agree to execute such further instruments and to take such further action as may reasonably
be necessary to carry out the intent of this Award Agreement.

     15. Notice. Any notice required or permitted hereunder shall be given in writing and
shall be deemed effectively given upon personal delivery or upon electronic delivery, or upon
delivery by certified mail, addressed to the Company at the address below and addressed to the
Participant at his/her home address on file with the Company or at such other address as either
party may designate by ten (10) days’ advance written notice to the other party.

Restricted Stock Administrator

3Com Corporation

350 Campus Drive

Marlborough, MA 01752, U.S.A.

Stock_Administration@3Com.com

     16. Binding Effect. This Award Agreement shall inure to the benefit of the successors
and assigns of the Company and, subject to the restrictions on transfer herein set forth, be
binding upon the Participant and the Participant’s heirs, executors, administrators, successors and
assigns.

     17. Integrated Agreement. This Award Agreement and the Plan, including any sub-plan
to the Plan, constitute the entire understanding and agreement of the Participant and the Company
with respect to the subject matter contained herein, and there are no agreements, understandings,
restrictions, representations, or warranties among the Participant and the Company other than those
set forth or provided for herein or therein. The terms of this Award Agreement shall be subject to
the terms of the Plan, and this Award Agreement is subject to all Plan interpretations, amendments,
and rules approved by the Company.

     18. Severability. The provisions of this Award Agreement are severable and if one or
more provisions of this Award Agreement are held invalid, illegal and/or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions shall not in any way
be affected or impaired thereby and the invalid, illegal or unenforceable provision(s) shall be
deemed null and void; provided, however, to the extent permissible under applicable law, that any
such provision(s) shall be first construed, interpreted and/or revised to permit this Award
Agreement to be construed so as to foster the intent of this Award Agreement and the Plan.

     19. Governing Law. This Award Agreement is governed by the laws of the Commonwealth
of Massachusetts, without reference to conflicts of law provisions. The parties hereby understand
and agree that any action to enforce or interpret or otherwise regarding this Award Agreement shall
be filed in the state or federal courts in the Commonwealth of Massachusetts, and no other courts,
where this grant is made and/or to be performed.

     20. Data Privacy. The Participant hereby explicitly and unambiguously consents to the
collection, use and transfer, in electronic or other form, of his/her personal data as described in
this Award Agreement by and among, as applicable, the Employer, the Company and its Subsidiaries
for the exclusive purpose of implementing, administering and managing the Participant’s
participation in the Plan.

			
	 	 	 
	Performance-Based RSU Agreement
	 	9/22/09

-5-

 

     The Participant understands that the Employer, the Company and its Subsidiaries hold certain
personal information about the Participant including, but not limited to, the Participant’s name,
home address and telephone number, date of birth, social security number or equivalent tax
identification number, salary, nationality, job title, residency status, any shares of stock or
directorships held in the Company, details of all Shares or other entitlements to Shares awarded,
cancelled, exercised, vested, unvested or outstanding in the Participant’s favor, for the purpose
of managing and administering the Plan (“Data”).

     The Participant further understands that the Data will be transferred to E*Trade Financial
Services, Inc., or such other stock plan service provider as may be selected by the Company in the
future, which is assisting the Company with the implementation, administration and management of
the Plan. The Participant understands that the recipients of the Data may be located in the United
States or elsewhere, and that the recipient’s country (e.g., the United States) may have different
data privacy laws and protections than the Participant’s country. The Participant understands that
he or she may request a list of the names and addresses of any potential recipients of the Data by
contacting the Company’s Stock Administration Department. The Participant authorizes the Company,
E*Trade Financial Services, Inc. and any other possible recipients which may assist the Company
(presently or in the future) with implementing, administering and managing the Plan to receive,
possess, use, retain and transfer the Data, in electronic or other form, for the purposes of
implementing, administering and managing the Participant’s participation in the Plan. The
Participants understands that he or she may, at any time, view Data, request additional information
about the storage and processing of Data, require any necessary amendments to Data or refuse or
withdraw the consents herein, in any case without cost, by contacting in writing the Company’s
Stock Administration Department. The Participant understands, however, that refusing or
withdrawing consent may affect his or her ability to participate in the Plan. For more information
on the consequences of the Participant’s refusal to consent or withdrawal of consent, the
Participant understands that he or she may contact the Company’s Stock Administration Department.

     21. Language. If the Participant has received this Award Agreement or any other
document related to the Plan translated into a language other than English and the meaning of the
translated version differs from the English version, the English version will control.

     22. Electronic Delivery. The Company may, in its sole discretion, decide to deliver
any documents related to current or future participation in the Plan by electronic means. The
Participant hereby consents to receive such documents by electronic delivery and agrees to
participate in the Plan through an on-line or electronic system established and maintained by the
Company or a third party designated by the Company.

     23. Addendum. Notwithstanding any provision in this Award Agreement, the RSUs and the
Shares acquired under the Plan shall be subject to any country-specific terms and conditions set
forth in the addendum to this Agreement, if any. Moreover, if the Participant relocates his or her
residence to one of the countries included in such addendum, the terms and conditions for such
country will apply to the Participant, to the extent the Company determines that the application of
such terms and conditions is necessary or advisable in order to comply with local law or facilitate
the administration of the Plan. The addendum constitutes part of this Award Agreement.

     24. Amendment or Termination. The Company reserves the right to impose other
requirements on the Participant’s participation in the Plan or on this Award, to the extent the
Company determines it is necessary or advisable in order to comply with local law or facilitate

			
	 	 	 
	Performance-Based RSU Agreement
	 	9/22/09

-6-

 

the administration of the Plan. Furthermore, the parties hereto agree to execute such further
instruments and to take such further action as may reasonably be necessary to carry out the intent
of this Award Agreement. Finally, the Administrator may at any time amend or terminate the Plan
and/or the Award provided, however, that no such amendment or termination may adversely affect the
Award without the consent of the Participant.

     IN WITNESS WHEREOF, the parties hereto have executed this Award Agreement effective as of
the Grant Date. By electronically accepting this Award Agreement, signing below, or signing the
Notice of Grant, as applicable, the Participant acknowledges that he/she has read, understood and
accepted all of the terms, conditions and restrictions of this Award Agreement and the Plan.

			
	 	 	 
	Performance-Based RSU Agreement
	 	9/22/09

-7-

 

EXHIBIT A

PERFORMANCE CRITERIA FOR

EARNING RSUs AND VESTING SCHEDULE

			
	 	 	 
	Performance-Based RSU Agreement
	 	9/22/09

-8-

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